Internal reconciliation

Internal reconciliation settles a partner's open items against each other, with no money coming in or going out. It is the same screen as in SAP Business One: debits on one side, credits on the other, and the difference must be zero.

Use it to match an invoice with its credit memo, apply the balance of a payment on account to several invoices, settle an invoice against a journal entry, or offset what a customer owes you against what you owe it as a supplier.

Reconcile a partner's items

1. Go to Payments › Internal reconciliation and click Reconcile.
2. In Reconcile keep Business partner and pick the customer or supplier.
3. Nori shows two tables: Debits (invoices, debit memos, payments made on account) and Credits (credit memos, payments received on account, paid down payments not yet applied). Each row has its date, document, original amount and balance.
4. Tick what you want to match. Nori fills To reconcile with the balance; lower it for a partial reconciliation.
5. Below you see the debits, the credits and the Difference. When it is zero, click Reconcile.

Reconcile automatically proposes pairs by reference (a credit memo that relates the invoice, a reference that carries the other document's number) and by amount when there is only one item of that amount on each side. Review the proposal before reconciling.

Nori does not let you reconcile more than an item has open, nor save when both sides do not add up.

What happens to balances

Documents are settled just as with a payment: their balance goes down, they leave the aging report and they free credit. A payment on account is applied to each invoice, as when you apply its balance from the payment screen.

Electronic invoicing (Mexico)

• Invoice against credit memo: no CFDI is issued; the memo is already stamped and relates the invoice (relation 01). If the memo does not relate that invoice, Nori warns you.
• Payment on account against PPD invoices: Nori stamps that payment's payment complement with its date, its form of payment and what was applied to each invoice. If the payment already had its complement stamped, no new one is issued: replace it from the payment screen.
• Invoice against a journal entry: no CFDI is issued. If it is a condonation or a discount, it should be a credit memo; Nori reminds you.
• Down payments: applied as always, with the "Down payment application" credit memo (payment form 30, relation 07). Match them only against invoices.

Offsetting a customer and a supplier

When a customer is also your supplier, you can settle what it owes you against what you owe it.

1. Link both partners: on the customer's record, payment tab, fill Related partner with the supplier. If you do not, Nori pairs them when they share the same tax ID.
2. In Reconcile choose Customer and supplier (offset) and the customer. You will see the items of both.
3. Match its invoices with the supplier's and reconcile.

Nori records an offset payment (payment form 17) that stamps the payment complement of the customer's PPD invoices.

G/L accounts

With accounting on you can reconcile the lines of a clearing account (for example, goods received not invoiced). Mark the account as Reconciliation in the chart of accounts, choose G/L account and match its debits with its credits. Bank accounts are reconciled in Accounting › Banks.

Journal entry

With accounting on:

• Items on the same account (invoice against credit memo): no entry.
• Payment on account: Customer advances against Receivables, and the VAT of what was paid moves from not collected to collected.
• Offset: Payables against Receivables, and the VAT of both invoices moves to collected and paid.
• In a foreign currency, the difference between the items' exchange rates goes to exchange gain or loss.

Cancel a reconciliation

Open the reconciliation and click Cancel reconciliation. The documents owe again what was settled, the payments on account get their balance back and the entry is reversed.

As in SAP, it is not cancelled while something later depends on it: another reconciliation or a payment of the same items, or a payment complement already stamped. Cancel that first. If the offset already stamped its complement, give the SAT cancellation reason.

While an item is reconciled, its payment or document cannot be cancelled.

With SAP Business One or NetSuite

• SAP: if your Service Layer lets Nori create internal reconciliations, Nori sends them to SAP. If not (older version or no permission), the screen says "This reconciliation is made in SAP; Nori will read it on the next sync".
• NetSuite: Nori applies the credit memo or the payment to the invoice. Offsetting a customer against a supplier is done in NetSuite.