Q1. How can I add a new payment method type?
You cannot add a new payment method type for payments.
Q2. Can I download the payment advice?
Yes, you can download the payment advice. Refer to Bill Downloads for more information.
Q3. How do I record a payment for a bill?
To record a bill payment, there are a few ways you can do so:
During bill creation
Price must be filled in for at least one line item for this option to be available.
If the bill was saved as a draft, any associated payments will also be in a draft status.
After saving the bill, the payment will be active, and show up in the Purchases > Payments > Active tab.
After bill creation
You can choose to create a partial/full payment for a bill by changing the bill payment amount.
Depending on whether the payment is partial/full the bill status will be updated.
Q4. Can I record a partial payment for a bill?
Yes, you can. When recording a payment for a bill, if the Bill Payment Amount is less than the bill transaction amount, then the bill would be considered to be partially paid.
Q5. What happens if I pay in a different currency than the bill?
If there is a difference between the bill payment amount converted to the organization's base currency and the cash spent amount converted to the organization's base currency, realized gain-loss will take place. This is further explained in When does realized FX gain-loss (RGL) happen, and how is it calculated?
Q6. Where is the payment rate fetched from if the currencies don't match?
If the payment currency does not match the bill currency, there is a possibility of a realized gain/loss due to the fluctuations in the exchange rates.
Jaz fetches a custom rate if available on the date of the payment. If not, the rate is fetched from 3rd party services.
You can also adjust the payment rate if the one fetched by Jaz is not the rate you want to use for the payment.
Q7. When does realized FX gain-loss (RGL) happen, and how is it calculated?
RGL happens when the following conditions are fulfilled:
There is a difference between the bill payment amount converted to the organization's base currency, and the cash spent converted to the organization's base currency.
The following bill payment/cash spent currency combinations take place:
Bill payment currency | Cash spent currency (Actual cash paid out to supplier) | Is there RGL? |
Organization's base currency (e.g. SGD) | Non-base currency (e.g. USD) | Yes |
Non-base currency (e.g. USD) | Organization's base currency (e.g. SGD) | Yes |
Non-base currency (e.g. USD) | Non-base currency (e.g. USD) | Yes |
Non-base currency (e.g. USD) | Non-base currency (e.g. EUR) | Yes |
Organization's base currency (e.g. SGD) | Organization's base currency (e.g. SGD) | No |
RGL is calculated this way for bills:
Realized FX (Gain)/Loss = (Cash spent / Payment rate) - (Bill payment amount / Transaction rate)
Where:
Cash spent: The amount spent (paid out) for the recorded bill payment
The bill payment amount will be equal to the cash spent amount, if the bill and payment account are in the same currency.
Payment rate: The exchange rate for the bill payment (cash spent) (1.00 if the cash spent is in the organization's base currency)
Bill payment amount: The amount recorded as paid for on a bill
This amount may be the entire bill amount, or a partial payment for the bill.
Transaction rate: The exchange rate on the bill (1.00 if the bill is in the base currency)
FX gains are recorded as negative expenses, while losses are recorded as positive expenses to the FX Realized (Gains)/Loss account.
In other words,
FX gains are recorded if the bill payment amount in base currency is greater than the cash spent in base currency at the exchange rate on payment date.
FX losses are recorded if the bill payment amount in base currency is less than the cash spent in base currency at the exchange rate on payment date.
Example 1 - The bill payment is recorded in EUR, cash spent in USD and the organization's base currency is in SGD:
Cash spent: 65.00 USD
Payment rate: 1.00 SGD = 0.74338000 USD
Bill payment amount: 55.00 EUR
Transaction rate: 1.00 SGD = 0.68413000 EUR
Hence, in this case:
Realized Loss - 7.04 SGD = (65.00 / 0.74338000) - (55.00 / 0.68413000)
Example 2 - The bill payment is recorded in USD, cash spent in SGD and the organization's base currency is in SGD:
Cash spent: 70 SGD
Payment rate: 1.00 SGD = 1.00 SGD (Since SGD is the base currency)
Bill payment amount: 55.00 USD
Transaction Rate: 1.00 SGD = 0.74338000 USD
Hence, in this case:
Realized Gain - (3.99 SGD) = (70.00 / 1.00) - (55.00 / 0.74338000)
Q8. What is a Withholding Tax Certificate payment? How is it different from other payments?
The Withholding Tax Certificate payment method refers to a withholding tax payment recorded for a bill.
This refers to the tax that needs to be withheld and paid to the government.
For bills, payments made via this payment method will always be credited to the Withholding Tax Payable payment account.
Q9. How will deleting a tax profile impact my payment records?
Deleting a tax profile will not have impacts on any payments that have already been made and recorded.
However, you will not be able to select the deleted tax profile moving forward on bill creation, which may have effects on pre and post tax calculations.
Q10. How will making an account inactive impact my payment records?
Making an account inactive will not have impacts on any payments that have already been made and recorded.
However, you will not be able to select the inactive account as a payment account (in the case of cash and bank accounts) moving forward, until the account is active again.
Q11. I just made a payment for an active bill, but I don't see the transaction in my Accounts Payable. What happened?
If a payment has been recorded as paid for the bill on the same date as the bill date (i.e. payment date = bill date), the transaction will be recorded on the ledger as a cash transaction.
The transaction will be recorded as a debit from the Cash on Hand account, and a credit to the account used on the bill.