====== Reconciling Customer Accounts. ======

Customer accounts need to reconciled on a regular basis.  In AutoMagic reconciliation is the process of matching invoices with their corresponding payments and credit notes.  The overriding principal being that //debits and credits must total to zero//

===== How do I reconcile payments and receipts? =====
  - Select ''Customer, Customer Accounts'' from the main menu bar.
  - Double click on the customer entries in the customer accounts list to open the reconcile view.
  - Using the check box on the right hand side of the table, place a tick in all rows that have corresponding entries
  - Check that the ''Reconciled Balance'' is //zero//.
  - Click on the save button to save the batch of entries.

===== How  do I deal with over payments? =====
Open the reconcile view of the customer accounts, see [[#How do I reconcile payments and receipts|this Section]].

  - Tick the rows of invoices and payments as normal.
  - Ensure the ''Reconciled Balance'' is negative, indicating an over payment.
  - Click ''C/Fwd'' on toolbar.
  - Two rows will be created for the over payment amount.  One positive and one negative.  The positive row will be reconciled into the batch making the total of the debits and credits equal //zero//.  The negative row will be left outstanding as an over payment.  
  - Click the refresh button on the toolbar,  the table will now show the over payment amount ready to be included in the next batch of reconciliation.

===== How do I deal with underpayments? =====
The preferred to deal with an underpayment is to leave the items un-reconciled until the payment is received in full or an over payment is received.

If it is not possible to wait for payment in full or an over payment, create a carried forward entry for an underpayment.

  - Open the reconcile view of the customer accounts, see [[#How do I reconcile payments and receipts|this Section]].
  - Tick off the rows of invoices and payments as normal.
  - Ensure the ''Reconciled Balance'' is positive, indicating an under payment.
  - Click ''C/Fwd'' on toolbar.
  - A dialog box will ask for the description for the journal entry.  Be default it will refer to the newest invoice number.
  - Two rows will be created for underpayment.  One positive and one negative.  The negative row will be reconciled into the batch making the total of the debits and credits equal //zero//.  The positive row will be left outstanding as an under payment.  
  - Click the refresh button on the toolbar,  the table will now show the under payment amount.

===== How do I apply a settlement discount? =====
In AutoMagic settlement discounts are applied by creating a credit note.

  - Open the reconcile view of the customer accounts, see [[#How do I reconcile payments and receipts|this Section]].
  - Tick off the rows of invoices and payments as normal.
  - Ensure the ''Reconciled Balance'' is positive, indicating an under payment.
  - Click ''Disc'' on toolbar.
  - A dialog box show the amount of the settlement discount and the apportioned VAT amount.
  - Check the amounts and set the served by if appropriate and click ''Ok''.
  - The new credit note will be reconciled into the same batch, thereby ensuring that the total of the debits and credits add up to //zero//
  - Click the refresh button on the toolbar.

===== How do I check that a customer's account is reconciled correctly? =====
Open the reconcile view of the customer accounts, see [[#How do I reconcile payments and receipts|this Section]].

  - The amount shown in ''Reconciled Balance'' should be //zero//.
  - The amount shown in ''Unreconciled Balance'' should be the same as the ''Total Balance'' at the top right of the pane.
  - Click on ''show all'', and check that the ''Reconciled balance'' is still //zero//.

If any of these checks fail, the account needs to be analysed to determine why the figures are not correct.

===== How to I create adjustment journal entries =====
Adjustment ''Journal Entries'' are used for correcting errors in the customer account that cannot be rectified in any other way.   Some reasons for creating journal entries are:
  * They are only used as a place holder for missing debits or credits.
  * Importing opening balances at the beginning of the software's life. 
  * Writing off bad debts, when a credit note is not appropriate.

A journal entry is created as follows.
  - Open the reconcile view of the customer accounts, see [[#How do I reconcile payments and receipts|this Section]].
  - Tick off the rows of invoices and payments as normal.
  - Check the ''Reconciled Balance'' is correct, it will not be //zero// in this case.
  - Click ''Journal'' on toolbar.
  - In the dialog box set the description (or reason) for the journal entry.
  - Click ''Ok'', the new journal entry will be reconciled with the selected invoices.
  - Click the refresh button on the toolbar.

//If the reconcile button is missing from the accounts reconcile screen, you may not have permission to create a single journal entry//.