Bank Guarantee Management
Record and follow up the payment using bank guarantee for customer invoice and vendor bill
Bank Guarantee Management
Record and follow up the payment using bank guarantee for customer invoice and vendor bill
STORY BEHIND THE FEATURES
ODOO'S FUNCTIONS
Payment options for Customer Invoices and Vendor Bills only include Cash or Bank transfer.
CLUEDOO'S FUNCTIONS
Cluedoo propose an extra feature to manage your payments: by financial products. When you use financial tools like factoring, bank guarantee, letter of credit, etc., once you receive the proof of document, you can reconcile the related invoices and record them as paid by the financial products. Then, you focus now on the financial product recovery.
MODULE+
Customer Invoices/Vendor Bills payment can be paid via financial products.
BUSINESS CASE
You receive a bank guarantee of $100K to pay for all of your invoice for Customer X. So, all the invoices of Customer X are now paid - nothing is now due - and you now have a bank guarantee to recover.
CLUEDOO RECOMMENDATION
Installation : Companies using financial products should install this module on 100% of their database.
Recommendation / Best practice : It's important to record the payment by financial products because both the Account Receivable/Account Payable include cash delay (ie: due date management). The risk of non-payment of financial products only includes the cash flow delay (ex: the due date), but there is no more the risk on unrecovery.
why we need this module
There are many cases that payments are done using bank financial tools and not only Cash or Bank Transfers. This module also helps you:
Record all bank guarantees.
Follow up the due date of bank guarantees.
Record payment in a proper way.
HOW TO USE THIS MODULE
Required Module:
Batch Payment Wizard from Invoices
1
On Accounting → Journals → go to a journal with the type "Bank". Under the Payment Configuration tab, we have the payment method type option "Bank Provision".
2
Click on an open invoice and register the payment. On the Payment Wizard, we can select the payment method type as "Bank Provision" and fill in the info related to the bank provision payment. Afterwards, then validate.
The invoice status will be paid and payments will be posted.
3
On Accounting, we have the Bank Provision menu. In this menu we can see the list of uncashed payments. We can cash a payment when it’s the due date.
4
After the bank provision is cashed, we have posted journal entries for the payment.
Flow of Journal Entries
Customer Invoice
Customer Payment
Debit Credit Invoice No. 123 Bank Provision
Invoice No. 123
Account Receivable
| Debit | Credit | |
| Invoice No. 123 | Bank Provision | |
| Invoice No. 123 | Account Receivable |
Provision become Liquid
Debit Credit LC No. A123 Bank
LC No. A123
Bank Provision
| Debit | Credit | |
| LC No. A123 | Bank | |
| LC No. A123 | Bank Provision |
Vendor Bills
Supplier Payment
Debit Credit Vendor Bills No. 321 Account Payable
Vendor Bills No. 321
Bank Provision
| Debit | Credit | |
| Vendor Bills No. 321 | Account Payable | |
| Vendor Bills No. 321 | Bank Provision |
Provision become Liquid
Debit Credit LC No. S321 Bank Provision
LC No. S321
Bank
| Debit | Credit | |
| LC No. S321 | Bank Provision | |
| LC No. S321 | Bank |