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Managing Balances

Invoices, credits, payments, refunds, dunning fees etc. create balance records. Consequently, balances show debits and credits for each account.

Balances are associated to the account in a master-detail relationship.

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For information about balance data, refer to the Balance object reference.

Balance Concepts

JustOn adds up the balance records for invoices and for accounts, thus creating invoice balances and account balances.

  • The account balance is the sum of all balances for a particular account. A positive amount is considered a debit, and a negative amount is considered a credit.
  • The invoice balance is the sum of all balances for a particular invoice. If this sum is 0, the invoice is considered Paid; if the sum is not zero, the invoice is set Open.

The balance aggregation affects the following fields:

Object Affected Field Field Type Description
Account Balance Roll-Up Summary (SUM Balance.Amount) Shows the sum of all balances associated to this account. A positive amount is considered a debit, and a negative amount is considered a credit.
Invoice Balance Currency (16,2) The sum of all balances for this invoice. An invoice is considered paid or settled when the balance is zero.
Status Picklist The main invoice status, is set Open when the balance is not zero, is set Paid when the balance is zero.
Payment Date Date The date on which the payment for this invoice has been received completely. Is cleared when the balance is not zero, is set to the date of the last balance record when the balance is zero.

Balance Example

Think of the following example: A customer has made a pre-payment for an ordered product, and a user registers this, creating a balance record of the type Prepayment. Pre-payments (or any other existing balance records) are considered accordingly upon invoice creation. When the invoice is finalized (its status set Open), JustOn generates a balance record of the type Invoice. The balance record amount equals the grand total amount of the invoice. Then, the user registers the final payment with the invoice, generating a record of the type Payment. The invoice balance records may look like this:

Balance Record Amount Date Description
Prepayment -10 € 2017-03-02 Received a pre-payment of 10 € from the customer
Invoice 25 € 2017-03-27 Set the invoice Open with a grand total of 25 € and a payment due date of 2017-03-27
Payment -15 € 2017-03-31 Received the outstanding 15 € from the customer

▶ The invoice is set Paid (-10 + 25 -15 = 0) with a payment date of 2017-03-31.

Standard Balance Types

Depending on the semantics, there are various types of balances. Some are set by JustOn, others can be selected by users.

System Balance Type Description
Invoice Is created for an invoice on finalization.
Credit Is created for a credit on finalization.
Payment Is created for a registered payment entry.
Clearing Is created for an invoice or credit when it is balanced out (by a corresponding credit or invoice), or for a discount amount when a discounted invoice is paid.
Settlement Is created for an invoice or credit on settlement.
Cash Is created for an invoice with the payment method Cash on finalization.
Dunning Fee Is created for a dunning.

User-selectable balance types include Payment, Refund, Prepayment, Payout and Clearing. Balances are, however, not restricted to these types. You can create new types adding new picklist values to the Type field. In addition, JustOn accepts other type values when importing balances.

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In addition, JustOn supports the specific balance type prepaid balance for automatically registering pre-payments.

Prepaid Balance

JustOn automatically creates a prepaid balance for pre-payments when an invoice that contains specific pre-payment data is finalized. As opposed to other balances, the prepaid balances are deleted and thus removed from the account when the corresponding invoice is canceled.

This simplifies the import of invoices with pre-payments: there is no more need to import the payment entries in an additional step. In case of an error, you can cancel the invoice and import it again without dealing with duplicate pre-payment balances.

The checkbox IsPrepaid marks the balance as a prepaid balance.

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This checkbox is not displayed on the balance layout by default.

Prepaid balances have particular properties:

  • The balance is automatically created when an invoice with specific pre-payment data is finalized.
  • The balance is automatically deleted when the corresponding invoice is canceled.
  • It is not possible to delete the balance manually.
  • The balance is never split, even on overpayment or when additional payment entries are registered with the invoice.

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Deselecting the checkbox IsPrepaid removes the particular treatment of prepaid balances.

For details about setting up the prepaid balance generation, see Setting Up Prepaid Balance Management.

Balance Settlement

In the context of an account, JustOn automatically assigns free balances to invoices upon finalization, thus reducing the final payment amount. Free balances are not associated with an invoice and may result from, for example,

  • registered payments for invoices that are canceled,
  • payment entries that could not be matched to an invoice and therefore have been associated with the account,
  • some manual operation.

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This functionality is independent from the invoice settlement, which can be set up to offset non-related invoices and credits of an account, as described in Managing Settlements.

Balance Overpayment

You can assign balances to draft invoices that exceed the grand total of the invoice, which results in an overpayment. When the invoice is finalized, that is, set Open, JustOn usually splits the overpayment balance along the open invoice amount: one part covers the open invoice amount and is assigned to the invoice, whereas the remainder is unlinked from the invoice.

Event Balance Record Amount Date Description
Invoice finalization Invoice 100,00 2017-11-20 Invoice balance is created when the invoice is set Open.
Payment entry (75,00) Payment -75,00 2017-11-21 Partial payment is registered.
Payment entry (30,00) Payment -25,00 2017-11-24 Second payment entry of 30,00 is registered and split into two balance records of -25,00 and -5,00.
Payment -5,00 2017-11-24 Remainder balance (-5,00) is unassigned from the invoice. It remains assigned to the account and can be used for a future invoice.

▶ The invoice is set Paid (100 - 75 - 25 = 0) on 2017-11-24.

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JustOn assigns any available open balances to invoices on finalization, immediately reducing the open invoice amount. In addition, you can schedule a job in order to have remainder balances automatically assigned to open invoices on a regular basis.

Certain business use cases require overpayments to be kept on invoices. Assume, for example, you receive monthly payments (100,00) for a usage-based service that is invoiced once per year. Now the actual consumption yields a grand total of the yearly invoice that is lower (1150,00) than the sum of the received payments. If you allow an overpayment on the invoice, the difference remains assigned to this invoice, which prevents it to be used for other invoices of this account. You can then refund the overcharged amount (50,00) and manually create an according balance record for the invoice of the type Payout or Refund.

Date Balance Record Amount
2017-01-01 Payment -100,00
... ... ...
2017-12-01 Payment -100,00
2018-01-08 Invoice 1150,00
2018-01-10 Payout 50,00

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Balance overpayment is controlled via the corresponding global setting Allow Overpayments, see Enabling Balance Overpayment.

Balance Write-off

Some business use cases may require to set the invoice status to Paid and the invoice balance to 0 even if an assigned payment does not exactly match the invoice amount. Differences to cover may, for example, result from currency conversions upon payment matching. You can define the difference that you are ready to accept and offset consequently according to your business requirements. To this end, you specify either a (percentage) threshold or an absolute amount.

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You can combine the percentage and the absolute amount. In this case, JustOn limits the calculated threshold to the specified amount.

Assume the following example: There is an invoice (and an according balance record) of 119,00. The customer pays in a different currency, and after converting the payment amount, JustOn registers a payment balance record of -118,00. With a write-off threshold set to 5% (which covers the difference), JustOn automatically creates a write-off balance record of -1, clearing the remaining amount.

Balance Type Amount
Invoice 119,00
Payment -118,00
Write-off -1,00

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Balance write-off is controlled via the corresponding global setting Write-Off Threshold, see Enabling Balance Write-Off.

Manually Creating Balances

Note

Usually, JustOn creates balances automatically with specific operations, for example, finalizing invoices, assigning payment entries, etc.

Certain business use cases, however, may require balances to be created manually, like pre-payments or payouts.

You can create balances in two contexts: either via an account or via an invoice. When starting from an invoice, the new balance is immediately assigned to this invoice.

Creating Balance on Account

To create a balance starting from an account:

  1. Open the account for which you want to create a new balance.
  2. In the Balances section, click New Balance.
  3. Specify the details as necessary.
    The mandatory details include account, date and amount.
    Note that a positive amount is considered a debit, and a negative amount is considered a credit from the account's view.
  4. Click Save.
    ▶ This creates the new balance record, making it available for assignment to any draft or open invoice of the current account.

Disabling Automatic Account Balance Assignment

Usually, JustOn assigns new balances to invoices on finalization if the following conditions are met:

  • The balance does not refer to an invoice
  • The checkbox No Auto Assignment is unselected
  • The amount does not equal zero
  • With respect to the invoice grand total, the amount has a reversed +/- sign

If there is a subscription linked to the balance, the balance is only assigned to invoices of the linked subscription. If there is the field ON_Opportunity__c (Lookup(Opportunity)) on the balance, the balance is only assigned to invoices for the linked opportunity.

You can disable the automatic assignment

  • either selecting the checkbox No Auto Assignment on the balance,
  • or adding and selecting the custom checkbox field ON_NoAutoBalanceAssignment__c on the invoice.

For help about creating fields, see Managing Object Fields.

Creating Balance on Invoice

To create a balance starting from an invoice:

  1. Open the invoice for which you want to create a new balance.
  2. In the Balances section, click New Balance.
  3. Specify the details as necessary.
    Note that the balance amount is pre-filled with the open invoice amount.
  4. Click Create.
    ▶ This creates the new balance record and immediately applies it to the current invoice balance.

Manually Controlling Assignments

You can manually assign existing balances to draft or open invoices, or, in case of incorrectly assigned balances, revoke the assignment.

Manually Assigning Balance to Invoice

  1. Open the Invoices tab.
  2. Click the ID of the invoice you want to modify to open the detail view.
  3. Click Register Payment.
    This shows a list of unassigned balances.
    If there are no balances available, you are presented the dialog for creating a balance.
  4. Select the balance you want to assign to the current invoice, and click Assign.
    ▶ This assigns the selected balance to the current invoice, applying the balance amount and thus reducing the payment amount or, if balanced out completely, setting the invoice Paid.

Manually Unassigning Balance From Invoice

  1. Open the Invoices tab.
  2. Click the ID of the invoice you want to modify to open the detail view.
  3. In the Balances section, click the ID of the balance you want to unassign.
  4. Click Unregister Payment, then click Continue to confirm and complete the operation.
    ▶ This revokes the assignment of the selected balance to the current invoice, removing the balance amount from the invoice balance.

Next steps:

Setting Up Balance Management Options

Return to JustOn Operation.