Payment allocation to charge

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Payment Allocation to a Charge - Functional Specifications


This modification displays a Charge selection button at the bottom of the Payment Allocation form. Charges displayed in the dropdown are able to be controlled by defining Charge Types.

This modification may also have been suggested or performed by others in the past but has not made it into trunk.


Assume an invoice of USD100 is allocated against a Payment of USD103 leaving a USD3 unallocated payment amount. There is no simple way to expense the unapplied payment amount. If this line is selected the “Difference” value box will display the USD3. If a Charge such as Bank Fees or Realised Exchange Gain/Loss is selected from the Charge dropdown and the process is run then a Payment Allocation line will be created that clears the amount and expenses it to the GL account associated with the Charge.





Design Considerations

The addition of a Charge box really makes redundant the “Trade Discount” and “Write off” columns in the “invoices” section of the form and they could probably be dropped but getting agreement to drop existing functionality is difficult to achieve. If anyone has a strong view on this matter they may like to state their opinion.


Sites that do not wish to utilise this functionality will exclude by creating a Charge Type with no entries. Note that the fuctionality only expands on the existing ability to tick “write-off” or select Trade Discount or Writeoff







Functional Requirements

Functional team

  • Volunteers for analyzing:
  • Result of analysis:

User roles & profiles


Business process definition

see Purpose above

User stories

Two users found uses for this function in addition to writing off small amounts: (a) A is a manufacturer/seller of goods. B is A's agent in another country. C is the EndUser in that country. B sells C some goods to be supplied by A for USD100. B will get a commission of USD30. C creates a Letter of Credit in A's favor for USD100. A receives the payment of USD100 in due course. Although it has created a customs invoice in a text editor for USD100 it actally invoices only USD70 as its revenue and raises an invoice for USD70. When the USD70 invoice is allocated against the USD100 payment there is a balance of USD30. This line can be tick-selected and then a Charge of Commission Liability selected to clear the open payment amount.

(b) A is a holding company with two subsidiaries B and C. B invoices a customer for USD100. C invoices the same customer for USD90. The customer pays USD190 to A. A applies the USD100 invoice to the USD190 payment leaving an unapplied balance of USD90. A then tick-selects that line and selects the Charge “Intercompany balance with B”. This clears the open item and increases the intercompany debt to B for the USD90. B now has an open invoice that will not be paid. B can tick the invoice line and select the charge called “Intercompany balance with A” to clear the open item and adjust the intercompany indebtedness.

Functional requirements based on business processes


User Interface Mockups


Technical Requirements

Technical team

  • Volunteers for analyzing:
  • Result of analysis:

Non-Functional Requirements


Open Discussion Items

Closed Discussion Items

A USD145 payment received and applied to an EUR114.42 invoice:


This leaves an unapplied payment amount equivalent of EUR1.67:


The EUR1.67 is ticked and Charge “Bank Charge” selected:


the EUR1.67 is removed from open items:


The Allocation Line 1 shows:


The Allocation Line 2 shows:


The posting shows:


Note that when the Payment Allocations were processed a 1 cent rounding error amount was left as uncleared. These were removed by putting to Bank Charge also. The screen shots of that have been left out of the above.