Transactions

The following is a list of all the documents in the Acumen system that create transactions in the Creditors files:

• Supplier Invoice - records of supplier charges made to you on account.

• Supplier Credit - reversal of Supplier Invoices.

• Payment - the making of payments to a supplier (by cheque or other).

• Discount - settlement discounts taken when payment is made.

• Payment allocation - distribution of a payment against supplier invoices, etc.

• Journal - postings direct to supplier accounts (eg. contra entries, etc.)

Transactions are grouped into sets. At the head of each set is the source or Reference transaction. The Reference transaction is the initial transaction to which all other transactions are posted. For example a supplier invoice 'X' for $500 is a Reference transaction, it is both a transaction in the set 'X' and the parent transaction for set 'X'. If a supplier credit 'Y' is given for $50 in reference to supplier invoice 'X' then the credit becomes a part of the transaction set for 'X'. If a payment 'A' for $300 with discount taken of $15 is posted this becomes transaction set 'A'. If $200 of the payment is allocated against invoice 'X' then the following relationship results:

Set 'X' Transactions	Amount	Notes
Supplier Invoice 'X'	+$500	Original transaction and set Reference
Supplier Credit 'Y'	-$50
Payment Allocation 'C'	-$200
	$250	Remaining balance of transaction set (invoice)

Set 'A' Transactions	Amount	Notes
Payment 'A'	-$300	Original amount paid
Discount taken 'B'	-$15
Payment Allocation 'C'	+$200
	-$115	Balance of payment yet to be allocated

The result of the transaction set approach is that transactions that are not fully paid remain intact complete with all of the relevant transactions that have been posted against them. This allows payments to be easily raised for outstanding balances and provides clearer tracking of overdue transactions.

All transactions in a set remain on file until the transaction set equates to zero and the files have been aged for the required number of months (typically zero transaction sets are removed the first time the files are aged ie. zero months are kept). All transaction in a set must have the same age of effect (ie. if the Supplier Invoice is 60 days old then any Supplier Credit, Payment Allocation, etc. must also effect the 60 days balance).

The consequences of such a structure are that it is necessary to ensure that transactions are balanced to zero and that such things as payments and supplier credits are allocated accordingly. The Acumen system provides an automatic allocation facility for Payments and Credits.

The Supplier Transaction List screen can be used to review transactions. This option provides the ability to locate a supplier by code, name or by transaction. It can be used to show all the transactions for a supplier, transaction sets without zero balances or just reference transactions (ie. the supplier invoices and payments but not the allocation transactions). The transaction list shows full transaction details including the balance of the transaction set and the balance of the supplier account.