Receivables/Payables Concepts

← About Receivables and Payables

payment_app_intro JustOn Cash Management is a Salesforce app that integrates Salesforce CRM with European banks and payment service providers. The app allows you to trigger payments and track payment information related to your business with customers.

You will be able to prepare and execute payment operations based on your orders, invoices or other statements that involve payments or payouts, be it SEPA orders via banks or payments via payment providers. Furthermore, you will be able to retrieve information on processed payments and to associate it with the corresponding receivables or payables – the basis for automatically handling overdue payments.

Broadly speaking, JustOn Cash Management helps reconcile accounts.

Understanding Receivables and Payables

Businesses sell and purchase products and services. These operations involve payments or payouts – documented in orders, invoices, credit notes or other statements. From an accounting perspective, they represent your accounts receivable (AR) and accounts payable (AP).

pay_app_entries

Receivables and Payables in JustOn Cash Management

JustOn Cash Management summarizes receivables and payables as entries – think of an "open entry" in your accounting system. Basically, the business operations are centered around these records – you manage entries, trigger payments based on entries, settle entries, etc.

Entries

JustOn Cash Management is centered around entries. They represent an amount of money owed to or requested from a business partner and hold all relevant information, based on statements that justify the corresponding request.

Descriptive Information

To allow for a unique identification of the relevant receivable or payable when communicating with customers, entries "wrap" relevant statement information in specific fields that are exposed to customers:

Field	Description
Title	A descriptive name, including the statement type and number. Is used, for example, to identify the entry on the payment page.
Payment Reference	A both human-readable and effectively parsable identification of the related statement. Is used, for example, as the `Reference` information in SEPA payment orders, describing the purpose of the transaction.

Entry Types

Depending on their business semantics, entries can be of two types:

Debit

Entries of the type Debit represent receivables – usually, a request for payment to a customer based on an invoice, sales order, etc. Debit entries relate to payments of the type Payment, which stand for incoming money.

Be aware that from a banking perspective, incoming money is a credit. So a bank statement item whose amount indication is Credit will offset a debit entry.

Credit

Entries of the type Credit represent payables – money owed to a customer, typically, following a credit note, refund, etc. Credit entries, consequently, relate to payments of the type Payout, which stand for outgoing money.

Again, be aware of the opposite banking perspective: outgoing money is a debit, So a bank statement item with the amount indication Debit will offset your credit entry.

Amount Values and Statuses

Upon creation, entries have an open amount, which represents the original amount payable or receivable. With an open amount, entries are in the status Open.

Registering payments reduces the open amount. Entries become Balanced once they are completely settled, that is, when the assigned amount balances out the open amount, like

Open Amount = Assigned Amount * (-1)

With this respect, the following amount values are important:

pay_app_entry_amounts

Amount Type	Description
Open Amount (Request →)	From the request perspective, shows the original amount receivable or payable, corresponds to the `Open Amount` of the payment. Positive values represent receivables and produce debit payments, negative values represent payables and produce credit transfers.
Outstanding Amount (Request →)	From the request perspective, shows the currently outstanding amount, that is, the difference between the `Open Amount` and the `Assigned Amount`. Positive values represent debit payments (receivables), negative values represent credit transfers (payables). With entries in the status `Balanced`, this value must be `0`.
Payable Amount (Request →)	From the request perspective, shows the amount still to pay, that is, the difference between the `Outstanding Amount` and the `Expected Amount`. Positive values represent debit payments (receivables), negative values represent credit transfers (payables).
Expected Amount (← Payment)	Shows the currently expected amount of all pending (requested but not collected) payments (see Payment Lifecycle). A negative value represents money to be received (payment type `Payment`, like a customer payment made to settle an invoice), a positive value represents money to be paid out (payment type `Payout`, like a payout made by a merchant to settle a credit to a customer). Technically, this is a roll-up summary over the `Expected Amount` values of all associated entry items.
Assigned Amount (← Payment)	Shows the amount already assigned to settle the entry from the payment perspective. A negative value represents received money (payment type `Payment`, like a customer payment made to settle an invoice), a positive value represents paid out money (payment type `Payout`, like a payout made by a merchant to settle a credit to a customer). Technically, this is a roll-up summary over the `Assgined Amount` values of all associated entry items.

Entry and Payment Lifecycle gives an outline view of how these values change as payment and settlement progress.

Payment Processing Data

Entries can define specific information to control how subsequent payment processes are to be executed.

Field	Description
Requested Bank Account	Restricts the payment process to the current bank account for SEPA transactions.
Requested Payment Instrument	Restricts the payment process to the current payment instrument.
Requested Payment Method	Indicates the expected payment method, which is not mandatory for the payer but can control downstream processes. The picklist values include `SEPA`, `Online Payment` and `Bank Transfer`.
Requested Payment Provider	Restricts the payment process to the current payment provider.

Entry Origin

The way you create or retrieve entries depends on the integration of JustOn Cash Management with your Salesforce org. A proven way is, for example, the integration with JustOn Billing & Invoice Management.

Integration with JustOn Billing & Invoice Management: Concepts

The payment functionality shipped with JustOn Cash Management is centered around entries (see Receivables/Payables Concepts). These records hold all information with respect to an amount of money owed to or requested by a business partner, based on statements that justify the corresponding request.

In JustOn Billing & Invoice Management, the produced invoices or – if set up and used – installments represent payment requests. Now integrating JustOn Billing & Invoice Management with JustOn Cash Management provides for both

the creation of the relevant entry records directly after the invoice finalization or installment creation/modification, and
the creation of the relevant balance records for a registered money flow (where the field Origin is set to JPAY1).

Canceling an invoice in JustOn Billing & Invoice Management will cancel the related entry in JustOn Cash Management.

jpay_jo_integration
Creating entries on invoice finalization or installment creation, creating balances for payments

Cancellation

As a result of certain business use cases, some payment requests may no longer be justified – like, for example, when canceling an invoice or changing a payment plan. Consequently, the corresponding entries must be canceled.

Depending on the integration of JustOn Cash Management with your Salesforce org, the way to cancel entries may differ. A tight integration may provide for an automatic cancellation, or users can cancel entries manually.

When canceling an entry, JustOn Cash Management will

set the Open Amount of the canceled entry to 0
reverse any settlements, voiding existing payment assignments – adjusting the relevant amount values on the related entry item (decrease the Assigned Amount) and the related payment (decrease the Assigned Amount, increase the Available Amount), see Cancel Entry | Entry and Payment Lifecycle
apply the defined credit balance strategy to the related payments (Future Settlement by default, see Cancel Entry | Entry and Payment Lifecycle)
exclude the canceled entry from any downstream business processes (including settlements, SEPA transactions, payment page-based payments, payment run, further cancellations)

Statements

A statement is a stand-in for a legally binding document or declaration that produces a payment request – represented as an entry. Statements can be, for example, invoices, installments, orders, credit notes, etc.