Module: Accounts Receivable
The final step in the Settlement process on a Development Ledger stock item is processing the receipt against the client invoice that has been raised by the “Process a Sale’ function. This process outlined here represents the ‘standard’ receipt transactions that are usually made up of one or more settlement ‘receipts’ and adjustments as determined by the settlement solicitors. Examples have been provided as a guide.
1. Confirm the client invoice has been processed correctly by checking the client transactions in the Accounts Receivable module.
2. Double click on the Client to display the outstanding invoice transaction
3. The client transaction screen displays as follows. Ensure that there is an outstanding invoice and the amount is equal to the contract price per the ‘Process a Sale’.
4. This value should agree with the Settlement statement values as per the Solicitors advice
5. Process the receipts per bank statement or the “Settlement Statement” from the Solicitors. The settlement statement should contain the settlement adjustments to be applied to the receipt in order to reconcile the outstanding amounts back to the Client invoice
6. There could be any number of receipt transactions that for the settlement, for example
7. Deposit Receipt (from Trust)
8. Settlement Receipt (from Purchaser) as per settlement statement including any adjustments
9. In this example, the above 2 receipts would appear as different transactions in the Bank Statement at settlement and therefore should be processed separately. There is also the situation where the deposit cheque could have been receipted prior to settlement, in which case would need to be ‘matched’ to the invoice created in the Sale process.
10. Note: There is also advanced functionality of maintaining deposits against the Sale record which is not covered in this document.
11. The Settlement statement is usually supplied by the solicitor that contains a breakdown of the settlement receipts as well as adjustments for fees and outgoings.
12. A sample settlement statement would appear with the following details:
