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Payments and follow-ups

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8 min readUpdated

Payments record liquidity movements received from or sent to a customer or vendor. Follow-ups organise actions for customers whose invoices are overdue. Use Payments to record and confirm a payment, and use the Follow-Ups destinations to define collection actions, review overdue customers, send letters or emails, and analyse follow-up activity.

If you need to…Go to
Record or review a paymentRecord a payment and work overdue follow-ups
Define overdue-payment actionsRecord a payment and work overdue follow-ups
Review customers with overdue amountsRecord a payment and work overdue follow-ups
Send follow-up letters or emailsHandle payment and follow-up variations
Continue with customer and invoice recordsCustomers, products, and invoices
Continue with journal and bank activityAccounting journals and bank activity
Review wider accounting reportsReports and audit work

Before you start

Prerequisites

Have this readyWhy it matters
The customer or vendor connected to the paymentThe payment form displays Customer for customer payments and Vendor for vendor payments.
The journal and payment methodJournal and Payment Method are part of the payment details.
The follow-up plan and its actionsThe plan supplies the actions used for overdue invoices.
Access to the required accounting groupSome payment and follow-up controls are restricted to accounting groups.
A draft payment when confirming a paymentConfirm appears while the payment is in draft.
An overdue amount when working a customer follow-upPrint Overdue Payments and Send Overdue Email appear when the amount due is greater than zero.

Find and open a payment or follow-up destination

Payments and follow-ups are the accounting destinations for recording receipts and payments, organising overdue-payment work, and reviewing follow-up activity.

  1. Open Accounting.

  2. Choose the destination that matches your task.

    If you need to…Choose
    Record customer paymentsCustomers > Payments
    Review follow-up activityFollow-Ups > Follow-ups Analysis
    Define follow-up levelsFollow-up Levels
    Work customers with overdue amountsFollow-Ups > Do Manual Follow-Ups
    Send follow-up letters and emailsFollow-Ups > Send Letters and Emails

Result: The selected Accounting destination is the surface for the task you chose.

Understand the payment and follow-up screens

A follow-up level is a set of actions triggered after an invoice passes its due date; when a customer has several overdue invoices, the actions for the most overdue invoice are used.

Payment details

Field labelArea
DatePayment list
NamePayment list
JournalPayment list and payment form
Payment MethodPayment list and payment form
CustomerPayment list and customer payment form
Amount in CurrencyPayment list
Payment CurrencyPayment list
AmountPayment list and payment form
StatusPayment list
VendorVendor payment form
DatePayment form
MemoPayment form
Bank detailsCustomer Bank Account, Vendor Bank Account, Company Bank Account, and Destination Journal when their conditions apply.
Form actionsConfirm, Reset To Draft, Cancel, Request Cancel, Mark as Sent, Unmark as Sent, and Refund.

The payment list is read-only. Its header provides Confirm. The payment form uses the payment state to decide which actions appear: Confirm is for draft payments, while the other actions depend on the payment state, cancellation settings, and payment method.

Follow-up levels and actions

Use the level's delay and actions to match the response to how severely a customer's invoice is overdue.

AreaFields and controls
LevelThe level name, Company, and Follow-up Steps.
Step timingThe number of Days overdue before the step runs.
Manual actionManual Action, Assign a Responsible, and Manual action note.
Email actionSend an Email and Email Template.
Letter or email actionSend a Letter or Email and the letter or email introduction.

The Manual Action group appears when Manual Action is selected. The Send an Email group appears when Send an Email is selected. The Send a Letter or Email group appears when either email or letter sending is selected.

Manual follow-ups

The manual follow-up list is read-only for creation and deletion. It shows the customer, next-action information, responsibility, due dates, follow-up level, and amounts due.

AreaFields and controls
Customer rowCustomer, Earliest due date, Latest follow-up level, Amount overdue, and Amount due.
Next actionResponsible, the next-action date, and Next action.
Notes and historyPayment note and the transaction history.
ActionsPrint Overdue Payments, Send Overdue Email, and ⇾ Mark as Done.

Follow-up analysis and sending

Follow-ups Analysis uses Follow-up Level, Latest Follow-up Month, and Balance for its analysis. Send Letters and Emails has a send date and a follow-up level where those fields are available, plus Send emails and generate letters and Cancel.

Record a payment and work overdue follow-ups

Confirm a draft payment

Prerequisites

  • You have a draft payment open.
  • The customer or vendor, amount, date, journal, payment method, and memo are correct.

Steps

  1. Review Customer or Vendor.
  2. Review Amount.
  3. Review Date.
  4. Review Memo.
  5. Review Journal.
  6. Review Payment Method.
  7. Select Confirm.

Result: The payment leaves the draft path and the payment form shows the actions available for its resulting state.

Maintain a follow-up level

Prerequisites

  • You have opened Follow-up Levels.
  • You know the number of overdue days and the action the level must assign.

Steps

  1. Open a follow-up level.

  2. Review the level name.

  3. Review Company when working in a multi-company setup.

  4. Set the follow-up step's Days overdue value.

  5. Select the action that matches the follow-up situation.

    SituationSelect
    A person must actManual Action
    The step must send an emailSend an Email
    The step must prepare a letter or email introductionSend a Letter or Email
  6. Complete the fields that appear for the selected action.

Result: The selected follow-up actions and their conditional fields appear in the follow-up level form.

Record the next action for an overdue customer

Prerequisites

  • You have opened Do Manual Follow-Ups.
  • The customer has an amount due greater than zero.

Steps

  1. Open the customer row.
  2. Review Earliest due date, Latest follow-up level, Amount overdue, and Amount due.
  3. Select a Responsible person.
  4. Enter the next-action date.
  5. Enter the action in Next action.
  6. Enter context in Payment note.
  7. Select ⇾ Mark as Done after the action is complete.

Result: The action is complete.

Handle payment and follow-up variations

Use the branch that matches the record and the action you need to perform.

Your situationWhat to use
The payment is from a customerUse Customer and the customer bank-account conditions.
The payment is for a vendorUse Vendor and the vendor bank-account conditions.
The payment moves money between journalsSelect the internal-transfer option and complete Destination Journal.
A bank account is requiredComplete the applicable bank-account field before confirming.
You need to assign a personSelect Manual Action, then complete Assign a Responsible and Manual action note.
You need to send an emailSelect Send an Email, then choose Email Template.
You need to prepare a letter or emailSelect Send a Letter or Email, then complete the introduction.
The customer's email address is missingThe system displays Email not sent because of email address of partner not filled in.
  1. Open Send Letters and Emails when the follow-up level actions are ready.
  2. Review the follow-up level and date fields shown in the dialog.
  3. Select Send emails and generate letters.

Result: Follow-up emails are sent, letters are generated, and manual actions are set per customer according to the defined follow-up levels.

Resolve payment and follow-up errors

What you seeWhat it meansWhat to do
Your description is invalid, use the right legend or %% if you want to use the percent character.The follow-up description contains an invalid legend or percent character.Correct the description's legends or use %% for a percent character.
The partner does not have any accounting entries to print in the overdue report for the current company.The customer has no accounting entries eligible for the overdue report in the current company.Review the customer's accounting entries and current-company context.
There is no followup plan defined for the current company.No follow-up plan exists for the current company.Define a follow-up level and its actions before printing the overdue report.
The followup plan defined for the current company does not have any followup action.The current company's follow-up plan has no follow-up action.Add a follow-up action to the plan.
Email not sent because of email address of partner not filled inThe customer's email address is missing.Complete the customer's email address, then use Send Overdue Email again.
Printed overdue payments reportThe overdue payments report was printed.Continue with the follow-up work for the customer.

Out of scope

These messages belong to the Send Letters and Emails flow:

MessageOwning page
Follow-up letter ofSend Letters and Emails
will be sentSend Letters and Emails
email(s) sentSend Letters and Emails
letter(s) in reportSend Letters and Emails

Know what happens next

After you select Confirm, the payment leaves draft state. The form then exposes the actions that apply to the resulting payment state, including Reset To Draft, Cancel, Request Cancel, Mark as Sent, Unmark as Sent, and Refund when their conditions apply.

After you select Send emails and generate letters, the follow-up process sends emails, generates letters, and sets manual actions according to the follow-up levels.

Use Customers, products, and invoices for the customer and invoice records that supply overdue-payment work. Use Accounting journals and bank activity for the journal and bank continuation. Use Reports and audit work for broader accounting reporting.

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Payments and follow-ups — SherketyERP