We have recently added the ability to clear balances on the Payment on Account transactions. It involves setting up an account code and clearing balances in the Payment on Account screen.
Account Code Set Up:
To post the balances, you must first set the chart of accounts code. Go to Financial Accounting->Chart of Accounts and search for Account Category "Other Income Code" and Account Code "040". In the Action column, click Edit.
By default, the settings will be
Account Code: 040
Account Name: Rounding off Gain and loss
Default VAT: Out of Scope
On the Chart of Accounts screen, you can change the account code, account name, default VAT, and description, then save. If you already have a code but haven't used it, you can disable it and use it for this instead. If you don't want to change anything, you can leave it untouched.
Note: If you have any unused existing account code, you can use that account code, by deactivating the old code and using the old code for this in the Chart of Accounts screen.
Clearing the balances:
The balance clear-down symbol will appear on the Payment on Account screen only if the transaction is partially matched. In the example below, I am partially matching the Gareth transaction dated 30/03/2023 for £400.
We may now see the balance clear-down icon because I partially matched that transaction.
As shown in the preceding example, we can clear the remaining balance of £27 from this transaction. You must choose a clear-down date for account posting. It should be either the transaction date or a date that is later than the transaction date.
When you click the save button, you will get the success message shown below, and the entry will be deleted from the payment on the account because the total amount has now been matched.
This will be posted to the account code you chose to post the balances and then to 701 trade debtors. These details are available in the Trial Balance and General Ledger reports. In the Aged Debtor report, the transaction balance entries will be cleared.
I hope you find the article useful. You can always contact the support team if you have any more questions 😊