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Invoice Reconciliation and Outstanding Report Handling in Merciglobal Cloud ERP

Overview

In Merciglobal Cloud ERP, effective handling of sales, purchase, and expense invoices in relation to Outstanding (O/S) Reports is a crucial aspect of financial accuracy and transparency. This document is intended for customers, internal Merciglobal developers, and Merciglobal sales team members to understand and execute best practices for invoice reconciliation and its implications on yearly accounting and reporting.

Mapping of Invoices to Outstanding Reports

Invoices—whether sales, purchases, or expenses—are automatically mapped to the Outstanding Reports in Merciglobal Cloud ERP. These invoices continue to reflect in the O/S reports until the full payment is received and the transaction is settled completely.

Key Points:

  • Invoices remain in the Outstanding Report if not fully paid.
  • This mapping continues year-on-year, rolling over any unpaid balances to the next financial year.

Year-End Handling of Unsettled Invoices

At the end of a financial year, any pending or partially paid invoices are automatically carried forward into the next fiscal year. This allows for continuity in reporting and helps in clear visibility of historical dues.

However, not all invoices should be reflected in the O/S reports forever. When an invoice is no longer required to be shown in the report, a reconciliation process is necessary.

Best Practice: Reconciliation and Balance Transfer

The best approach to remove such an invoice from the Outstanding Report is to reconcile the invoice and its associated payment within the same financial year when the invoice was initially recorded.

Steps to Reconcile and Transfer:

  1. Identify the Invoice:

  2. Locate the invoice that should no longer appear in the O/S Report.

  3. Reconcile in Original Year:

  4. Perform reconciliation for the invoice and its payments in the year the invoice was created.

  5. Balance Transfer to Next Year:

  6. Post-reconciliation, initiate a balance transfer entry.

  7. This ensures the accounting effect carries over correctly to the immediate next financial year.

  8. Repeat Annually:

  9. Continue this balance transfer process annually until all effects are accounted for.

Benefits of This Practice

  • Keeps Outstanding Reports clean and accurate.
  • Ensures better financial reporting and audit preparedness.
  • Simplifies annual account closures.
  • Enhances data reliability for internal and external stakeholders.
  • O/S Report – Outstanding Report
  • Reconciliation – Matching invoice and payment entries
  • Balance Transfer – Carrying over financial effects to the next fiscal year

Reference

For more detailed procedures and system navigation, refer to the official documentation at Merciglobal Docs.

For further assistance, please contact your Merciglobal support representative or internal finance team.