RE: [ubl-dev] Modeling multiple possible invoice totals based on payment means

["Stephen Green" <stephen_green@bristol-city.gov.uk>]

Ken

I too was concerned about this when UBL was in the modelling phase
but both Fulton's and Andrew's answers clarify existing practises.

If I see a paper invoice with a conditional discount or surcharge then 
whether or not the allowance/charge(s) appear(s) in the main total
(payable total as UBL puts it) depend on factors such as whether the
conditions which trigger these other amounts are optional. In most cases
they are. Then the way invoice payments handle multiple currencies
would normally be to defer this to the remittance stage (since exchange
rates, for example, may have changed by the time remittance is made)
or if it is part of the invoice (which would be unusual in my opinion, I've
no recollection of ever coming across it in a mainstream invoice) then
it would be classed as one of the optional factors to be dealt with as
not included in the main 'payable' total amount. 

It would be helpful for the reconcilliation of a payment if the remittance
gave information about how the payment amount came about when that
payment amount differs from the payable total, but that isn't always
standard practise so maybe that is why invoices are usually more simple
so the situation you envisage is usually avoided. The complex situation 
you envisiage where you state actual amounts for different currencies
would probably over time result in excessive expensive phonecalls to
enable the bank and books reconcilliation, etc. Usually folk leave it to
the payer or their bank to do the exchange calculation at the time payment
is made (not necessarily perhaps for imports and exports though, I
don't know much about that scenario).

All the best

Stephen Green



>>> "G. Ken Holman" <gkholman@CraneSoftwrights.com> 07/01/07 20:09:49 >>>
Thank you, Andrew, for your response.

At 2007-01-07 20:03 +0000, Andrew Chilcott wrote:
>The adjustment to the payment amount should be dealt with in a Remittance
>Advice which should also be able to handle the different currency options.

Yes, I can see that the payer can use the Remittance Advice to 
indicate which of the payment terms they choose to accept.

>The recipient of the monies can therefore book the invoice amount in the
>invoiced currency
>against what is outstanding on accounts receivable and the difference
>between invoice value and payment amount gets posted to a revenue/cost item.

Right ... which is constantly a mess for us since we don't have any 
Canadian customers.  We are already doing this in our books, and over 
the 10 years it has wavered back and forth from being beneficial to 
deleterious.

But from the perspective of the payee informing the payer of the 
options from which the payer can choose, would you disagree with my 
choice of enumerating the different payment terms and acceptable 
amounts in the invoice as I suggested?

>From: G. Ken Holman [mailto:gkholman@CraneSoftwrights.com] 
>Sent: 06 January 2007 21:53
>To: UBL-Dev
>Subject: RE: [ubl-dev] Modeling multiple possible invoice totals based on
>payment means
>...
>Looking again after learning from your note, I just found "PaymentTerms" in
>which is found associated amounts, etc.
>
>So, perhaps then the invoice has the one total CAD$1000 and three different
>payment terms:  the cheque (no charge), the EFT (charge), and the Internet
>(charge + currency).

Thanks again, Andrew!

. . . . . . . . . Ken



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