Registering A Payment that Combines Multiple Invoices for 2 Separate Clients

There are some situations where creating a Branch for a customer does not provide the required functionality to be able to invoice the client under one client account. An example of such a situation is when the client, in this case Widgets Ltd, is present in different countries using different currencies. Widgets Ltd is based in Malta (currency: Euro) and has an office in the UK (currency: Pound Sterling GBP).  In this case, two customer accounts must be generated (see figures below).

Widgets (Malta) Ltd
Widgets (UK) Ltd

On October 1st, an Invoice was issued to Widgets (UK) Ltd to the value of £75.

Widgets (UK) Invoice

Note that the above invoice was issued in Pounds Sterling and the rate of exchange was 1.4000 which makes it equivalent to €105.

On October 8th, an Invoice to Widgets (Malta) Ltd was issued with a value of €100.

A few days later, Widgets (Malta) Ltd effected a bank transfer of €205 to settle both invoices.

This poses a problem because although in reality both clients are the same entity, they are registered as different clients in our system. The solution is to use the Deposit function found under the Banking and General Ledger tab.

In our example, the money was deposited in our Merchants Bank Savings account. We will split the payments and declare one payment of €105 for the Widgets (UK) Ltd invoice and €100 of the Widgets (Malta) Ltd invoice. Here is how the deposits were registered:

The final step required to complete the transaction is to allocate the amounts to the relevant invoices.  Click on Allocate Customer Payments or Credit Notes under the Sales tab and from the drop-down list select each company in turn. Click on the allocate symbol at the end of the entry and follow the allocation process as usual.

Checking the Customer transactions for both clients will confirm that the bank transfer has been properly registered.

And the Bank Deposit Record …

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