Item Receipt Reconciliation: Generating Liabilities To Bill
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Item Receipt Reconciliation is the process of adding the additional cost of shipping, freight, customs/duty to the final bill amount. You can either reconcile an item receipt or a bill.
You will find the option to "Reconcile" in the Item Receipt Details section. Click on this to begin the reconciliation process.
Upon selecting this option, you will be navigated to the "Reconcile Item Receipt" module. Select the item(s) you want to reconcile and click "Next".
On the "Add Items" screen, you can add the item to be used for reconciliation. You can select a "Service" or "Labor" item for reconciling the additional cost.
Select the item type, number, quantity, and rate, and click on "ADD". The item will be listed in the section below. Click "Next" to proceed to the next step in the process.
In the next screen, you can calculate the Landed Cost by selecting the method of reconciliation and the items to be reconciled. Then click on "Calculate" to land the final cost. The final cost can be calculated based on any of these four parameters:
Unit Cost
Quantity
Amount
CBM
After the landed cost is calculated and the item is successfully reconciled, click "Next" to proceed to the next step.
In the next screen, you can click on the reconciled item to see the details of the landed cost. After verifying the details, click on "Next" to move to the next step.
Now, you want to decide whether you want to add this additional cost to the vendor bill, create a separate expense bill, or generate a liability to bill.
If you want to add the reconciled amount in the account payable for the vendor, you can add this to the vendor bill. To do that, check the "Add to Vendor Bill" option and click on "Finish.
If the “Add to Vendor Bill” option is unchecked, the reconciled amount will not be added to the Vendor Bill.
In this case, when you uncheck the vendor bill option and click on "Finish", you will be navigated to the "Select Accrual Account & Vendor" screen. From here, you can then either create a separate Expense Bill or a liability.
If the “Create Expense Bill?” option is checked, then a separate Expense Bill will be created for the reconciled amount in the Bill Centre, which can then be paid like normal. Select the Vendor and Accrual Account and click on "Accept" to create an expense bill.
If the “Create Expense Bill?” option is also unchecked, then a separate Liability to Bill is created. The liability will get recorded in the Liabilities To Bill module. The Liabilities can further be converted to Bill.
A "Liability To Bill" is a liability that is generated in the system (for instance, when you reconcile the cost of freight into a Product), which can be later converted to a Bill and paid off. This allows you an option to hold back this amount from being added to the AP. With this option, you also have the ability to combine multiple payments to a Vendor into a single Bill as per convenience.
You will find them in the "Liabilities To Bill" module. To convert them into a bill, select the liabilities, click on “Convert To Bill”, and follow the instructions to generate a Bill.
We have also added an option to “Combine Bills for same Vendors”. If this option is checked, then if you have a Vendor for which multiple liabilities are created based on the Account, then the liabilities of that Vendor are converted into a single Bill.
XoroERP streamlines the reconciliation process by enabling users to perform multi-item reconciliations. This functionality allows users to add multiple reconciliations to an item receipt, ensuring flexible and accurate tracking of item movements while improving overall efficiency.
To add multi-item reconciliation, complete the initial reconciliation process, then click on the down arrow next to the "Undo Reconciliation" button and select the "Add New Reconciliation" option. This will initiate a new reconciliation process, enabling users to add another item reconciliation.
Quickly access reconciliation information by clicking the "R" icon under the "Reconcile Action" column at the item detail level.
If a reconciliation needs to be reverted, users can delete the reconcile item line by clicking the "Bin" icon under the "Reconcile Action" column at the item detail level.
