Receipt Reconciliation

Overview

The Receipt Reconciliation feature in DIGITZ ERP allows users to settle previously received payments — such as On Account receipts or Advance payments (against Sales Orders) — with the corresponding Sales Invoices once they are generated.
This ensures that all received amounts are properly allocated to their related invoices, maintaining accurate customer balances and clear financial records.

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Purpose

To provide an easy and reliable way to adjust unallocated receipts or advances against outstanding invoices, reducing manual tracking and ensuring that customer accounts reflect the true payment status.

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How It Works

• When payments are recorded On Account or against a Sales Order, they initially remain unallocated in the customer ledger as advance credits.
• Once Sales Invoices are created, users can open the Receipt Reconciliation screen to allocate these receipts against one or more invoices.
• The system displays all available unadjusted receipts and open invoices for the selected customer.
• The user selects the applicable receipt(s) and the invoice(s) to be reconciled.
• Upon submission, DIGITZ ERP automatically adjusts the customer ledger, transferring the amount from the Customer Advance or On Account balance to Accounts Receivable.

This process ensures that every payment is properly matched with its respective invoice, maintaining accuracy in both customer statements and financial reports.

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Steps to Perform Receipt Reconciliation

1. Go to Accounts → Receipt Reconciliation → New.
2. Select the Customer whose receipts and invoices need reconciliation.
3. The system lists all unallocated receipts and open invoices for that customer.
4. Choose the receipts and invoices to be settled.
5. Enter the amounts to be adjusted (full or partial).
6. Save and Submit the reconciliation.

After submission, the system automatically updates the balances, marking the receipts as adjusted and reducing the outstanding invoice amounts accordingly.

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Posting Behaviour

• On reconciliation:
  • The system transfers the credited amount from the Customer Advance Account or On Account balance to Accounts Receivable.
  • Customer’s outstanding amount is reduced by the reconciled amount.
• No additional cash or bank movement occurs, as this is purely an accounting adjustment between receivable balances.

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Integration

The Receipt Reconciliation feature integrates with:

• Receipt Entry – Fetches unadjusted On Account or Advance receipts.
• Sales Invoice – Lists outstanding invoices eligible for settlement.
• Customer Ledger – Updates and reflects adjusted and pending balances in real time.
• Accounting Reports – Ensures accurate reflection of adjusted and outstanding amounts in Accounts Receivable and Customer Statements.

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Conclusion

The Receipt Reconciliation feature in DIGITZ ERP provides a simple and controlled way to match advance or unallocated payments with invoices.
By ensuring that every receipt is properly settled, it maintains clean customer ledgers, minimizes manual reconciliation work, and delivers complete accuracy in financial reporting.