Accounting for AR invoices

Marking AR invoices as paid
Writing off AR invoices

Marking AR invoices as paid

AR invoices are used, if you allow a guest to pay their invoice at a later stage after their stay. From an accounting perspective, closing a folio with an AR invoice posts the following record in Apaleo:
Accounts Receivable (9999) to Receivables (1200).

To reflect the receipt of the payment of an AR invoice, you have the possibility to mark an AR invoice as paid in apaleo. 

How to mark an invoice as paid?

1. You can find your AR invoices in the invoices overview via Finance > Invoices.
2. Apply the filter to Show only AR invoices, maybe combining with the Payment status filter for Unpaid invoices:
   
   
   
   
3. Now locate the relevant invoice and click the three dots on the right side, to see the following options:
   
   
   
   
4. Double-checking, that you are looking at the options of the correct invoice, which you received a bank transfer for, select the option Mark as paid.
   The AR invoice changes the status to Paid, however no financial record is triggered.
   
   

For now, apaleo only allows to mark "the entire invoice" as paid, meaning the entire amount. Partial payments cannot be entered here.

Your choice: Record "Mark as paid" as a financial record - or not

In addition, if desired by your accounting team, you also have the possibility to turn on an automated creation of an financial record in the general ledger.
Go to Settings - Finance to turn on this function:

After activation of this feature, if you then mark an invoice as paid, e.g. adding the payment method Bank Transfer, the following record will be created:

Bank Transfer (Account 1400) to Accounts Receivables (9999)

For the general ledger this means that the payment on your company's bank account is balanced against the apaleo account Bank Transfer (1400).

The account Accounts Receivables (9999) will be credited in apaleo and Bank Transfer (1400) will be debited.

When trying to reconcile your current open balances, you can use the list of un-paid AR invoices. This list now will reflect only un-paid AR invoices, as paid invoices are reflected accordingly, once they are marked as such.

Writing off AR invoices

It happens unfortunately, that you are unable to collect payments for unpaid (AR) invoices. Typically, you would like to write off such invoices, so they disappear from the list of open invoices.

Now what does this look like in action? How do you initiate writing off an invoice in apaleo?

1. Navigate to the invoice,
   • either within the reservation, on the tab INVOICES
   • or in Finance > Invoices
     Suggested filters: Payment status Unpaid and Accounts receivables > Show only AR invoices.
     
     
2. Click the three dots (aka context menu) for the invoice that needs to be written off.
   
   
3. Select Write off.
   • This is what it looks like within the reservation:
     
     
     
     
   • This is what it looks like in the invoice list in Finance:
     
     

Your choice: Record "Write off" as a financial record - or not.

Same approach as with "Mark as paid": If you want apaleo to record financial transactions for writing off AR invoices, activate the feature in Settings > Finance:

With this feature active, writing off an invoice from a reservation with 80 EUR accomodation (7% VAT) and 20 EUR breakfast (19% VAT) would create the following finance transactions:

• 80 EUR: from Accounts Receivable to Loss of AR (7%)
• 20 EUR: from Accounts Receivable to Loss of AR (19%)