Bank Guarantee Management
Record and follow up the payment using bank guarantee for customer invoice and vendor bill
STORY BEHIND THE FEATURES
ODOO BEHAVIOR
Customer invoices/Vendor bills payment means are normally Cash or Bank transfer.
CLUEDOO BEHAVIOR
Cluedoo propose an extra mean to manage your payment: by financial products. When you use financial tools like factoring, bank guarantee, letter of credit,..., once you receive the proof of document, you 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 all your invoice for Customer X. So, all the invoices of Customer X are paid - nothing is no more due - and you have a bank guarantee to be recovered.
CLUEDOO RECOMMENDATION
Installation : Companies using financial products.
Recommendation/ Best practice : It's important to record the payment by financial products because the Account receivable/Account payable both include the cash delay (ie due date management) and the risk of non-payment when the financial products only includes the cash flow delay (ex: the due date) but 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 Transfer
To record all bank guarantees
Follow up the due date of bank guarantees
To record payment in a proper way
HOW TO USE THIS MODULE ?
Dependencies
Batch Payment Wizard from Invoices
1
On Accounting → Journals → on journal with type Bank, Payment Configuration tab, we have payment method types option Bank Provision
2
Click on an open invoice, and register payment. on payment wizard, we can select payment method type as Bank Provision and fill the info related to the bank provision payment, then validate.
The invoice status will be paid and payments will be posted
3
On Accounting, we have Bank Provision menu. In this menu we can see the list of uncashed payment and we can cash it when it’s the due date.
4
After bank provision is cashed, we have posted journal entries for that
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 |