Accounting lettering
Introduction
Accounting Lettering: lettering is an accounting procedure which consists of assigning a common marker - generally a series of letters - to one or more accounting entries in order to associate them and identify more easily which payment entry balances the entry for an invoice. This procedure makes it easier to monitor invoices awaiting payment and to identify any errors in the amount.
It is customary to perform lettering on customer (411) and supplier (401) accounts, but it is sometimes necessary to perform lettering on other types of account, such as tax accounts.
Although lettering is not a legal requirement, it is generally very advisable to do it regularly, as it makes it easy to check the state of the company's accounts and identify any input errors.
Reconciliation: there is no fundamental difference between the principles of lettering and reconciliation, as the two terms can refer to the same procedure. Sometimes the term reconciliation is used specifically for reconciling bank accounts (512) with bank statements.
This is a form of lettering specific to bank statements.
In English version, when you’re using lettering, you will be using the reconciliation function that is based on lettering. In order to be able to use the lettering and to reconcile lines, you will have to activate the “Reconcilable” feature.
In the AOS, you will see the terms “reconciliation” and “lettering” being used in the following way :
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Reconciliation: a link between two entry lines (debit and credit) with an amount charged to this association;
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Lettering: a series of letters associated with one or more reconciliations;
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Bank reconciliation: reconciliation specific to bank accounts.
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Lettering menu : in the Lettering menu, you will find all the lines that have been lettered.
Reconciliation management in AOS
Activate lettering
Lettering: only one configuration is required to enable the lettering of entry lines with the same financial account. To do this, simply activate the “Reconcilable” parameter on the selected account.
Access : Accounting → Configuration → Financial → Financial accounts → Settings tab → activate the “Reconcilable” option
There are two ways of lettering documents in AOS. Either you can letter the documents via the posting lines, or you can use the postings manager.
Reconcile Manager
Access : Accounting → Periodical processing → Reconcile managers
The menu entry is located in the Accounting app. Using several filters in the header, you can select entry lines by financial account, date range and, if required, by third party, and then perform a reconciliation batch, excluding lines with an outstanding amount of zero. You can select as many lines as you like, and AOS will match the lines with the same amounts and dates for reconciliation.
The selection is made using the blue buttons on each line.
Here you can add a reconciliation session in which you can filter the entry lines more globally, by period.
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Date: enter the start and end dates.
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Account: select a financial account.
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Partner: If your entries are linked to a third party, you can indicate this in this field.
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Filter move lines: click on the “Filter move lines” button. The transaction lines that should processed will appear in the ‘Transaction lines to be processed’ table. Here you will find the lines to be processed, as well as the cancelled lines.
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Move lines to process: select the move lines that will be processed.
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Accounting reconcile: once the lines have been selected, click on the “Accounting reconcile” button. AOS will search for matches between debit and credit (the amounts must be equal).
The lines that have been lettered/reconciled, will disappear from the “Move lines to process” table because they have been processed. This table only contains lines to be processed.
Access : Accounting → Periodic processing → Reconciliation
In the Reconciliation menu, you will find all the reconciliation lines.
Access : Accounting → Periodic processing → Lettering
In the Lettering menu, you will find all the lines that have been lettered. You can enter the reference (for example, AADC) to display the correct line. If you click on the line, you will be able to click on the “Cancel” button to cancel the lettering action.
Accounting reconcile
You can letter documents from the entry lines (move lines in AOS) by clicking on the button “Accounting reconcile”.
Access : Accounting → Moves → Moves lines
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Open the list view of move lines.
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Select the move lines you wish to letter.
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Click on the Accounting reconcile button at the top of the page in the toolbar.
As a result, a reconciliation will be added for each debit/credit pair of compatible entry lines and it will be associated with a lettering. The remaining amounts to pay will be updated via reconciliation and, in its turn, it will make it possible to monitor the status of payments.
Lettering: this column allows you to identify entry lines that have already been lettered.
To pay / To use: the amount indicated in this column is equal to the debit. For lines that have been lettered (=paid), this amount will be reconciled.
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Once the line has been lettered, you can open the move line. The amount that has been lettered will be displayed directly. The lettering will be displayed at the top right in large letters (for example, AADA).
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Credit Reconcile List: open the “Credit reconcile list” tab. Here you will find a reconciliation line that has been created after a lettering.
If you have made a mistake during lettering, open the line that can be found in the “Credit reconcile list” table. A new pop-up window will open, where you can click on the Unreconcile button to cancel the reconciliation step.
In other words, the amount that has been lettered will disappear, as will the associated lettering. The Statement will change from “Confirmed” to “Cancelled”.
In AOS, you will automatically generate a move line in order to maintain consistency of the links between different financial accounts.