Hi,
I may be misinterpreting a comment - it is possible to enter a customer payment of €10,000 for an invoice of €1,000 without any restriction.
The tolerance process does not stop a payment to be entered.
The tolerance process can create a write off, to set the invoice as paid in full. Assume tolerance of 10 with a 100 invoice and a 95 payment. The tolerance will automatically create a write off for 5 so that the invoice results in paid in full.
Assume similar, but payment is only 80. IFS will not stop a payment, nor will it (in this example) create a tolerance write off. That invoice will be partially paid with 20 remaining as open for future payments.
If I misunderstood the question, my bad.
Best regards,
Thomas
Hi Thomas,
My customer message might be a little confusing, I should make it clearer.
Basically, my customer would like to know how to configure properly the tolerance because when they did it in the company records under the payment tab that didn’t work.
Therefore is there additional configuration required to limit these payment discrepancies, or do we need to set it up for each customer record? Also, what is the purpose of the tolerance setting in the company record?
Thanks.
Best regards
Aïssata
Hi,
No other set up needed - assuming you're trying to use tolerance correctly.
The reason for tolerance at company is - assume a company policy of 10 allowed tolerance. You would enter that at the company.
Also assume customer XYZ is special, they have tolerance of 5. Then for all other customers the tolerance is 10, but XYZ is special as they have a tolerance entered at the customer. Customer tolerance (if entered) wins.
In your example, IFS will not allow the 10,000 payment on the 1000 invoice (normally). But if your tolerance was set like 10,000 then that 10,000 - 1,000 (9,000) would have an automated write off due to tolerance.
In other words, IFS will not allow an over payment to be applied to an invoice (100 invoice 120 applied - with no write off). Short pay - 100 invoice 60 pay, no problem.
Hello,
I have a follow-up question from my customer :
“we have set up a 10% tolerance in the company, but despite this, we can enter payments that are higher than the customer invoices beyond this tolerance. How should we cancel this higher variance? What posting?”
Thanks for your help.
