ProcessClearing

 

The Automatic Clearing programs group and sort the invoice items and payment items according to the settings on the selection screen and in Customizing. They then generate the appropriate accounting documents to clear the invoices and payments. The exact process is described below.

Process

  1. The program selects the open items from the database in accordance with the selection screen options.

  2. It groups the selected line items.

    It groups together the items according to your Customizing settings – for example, it groups the items that belong to the same business area, and have the same document reference number.

  3. It sorts and reselects the line items as follows:

    1. It sorts each group of items according to whether they are customer or vendor documents, and whether they are invoices or payments.

    2. It selects a vendor invoice from the group and then selects any one item that it can clear it against (any item other than another vendor invoice).

      In addition, if you selected Invoice Reference Required on the selection screen, it selects any items that have the appropriate invoice reference number.

    The program has now selected the line items that can be cleared.

  4. It attempts to post an accounting document as follows:

    • If the selected items are all debits or all credits, the program cannot clear anything.

    • If the balance of the selected items’ debits and credits is zero, the program clears the invoice and payment in full.

    • If the balance is not zero, the program clears the items using the residual item method or the partial payment method, depending on what you selected on the selection screen.

    Note Note

    If you select Invoice Reference Required on the selection screen, the program always uses the partial payment method to clear open items that share the same invoice reference number.

    End of the note.