Collection Documents Matching Considerations
Here are the matching considerations that the application follows when the collection documents are manually entered or imported.
Automatic Association of Collection Documents to Unpaid Installments
When the collection documents are manually entered or imported, the application attempts to automatically find and associated invoice installments as per this criteria:
- The Enable Collection Documents Processing check box must be enabled at all levels.
- The payables invoice must be validated.
- The corresponding installments must be on-hold, unpaid, and unmatched to any other collection document.
- The automatic matching functionality is triggered based on the previous criteria when you import the installments.
- The Match Installments Automatically option must be selected to manually enter the collections documents.
Manual Association of Collection Documents to Unpaid Installments
When collections documents are entered manually in the Associated Installments region, you can manually enter the associated installments to collection documents and select the desired installments manually until the values achieve the predefined matching tolerances.
Note: The same criteria outlined for the automatic association is applicable to the manual association.
Withholding Taxes Impact on Matching
When collection documents should be matched net of the withholding amount, select Net Payable Amount for the Collection Document Match Amount Type field at the supplier level.
In Brazil, the collection documents are usually issued with the gross amount. Some suppliers might issue the collection documents net of the withholding amount. In both cases, the application can be configured accordingly by setting the Collection Document Match Amount Type field at the supplier level to either gross amount or net payable amount.
Withholding Taxes at Invoice Validation Time
Consider an invoice of R$1000,00 and a withholding tax such as the National Social Security Tax (INSS) at 10% calculated at invoice validation time.
| Amount type | Value |
|---|---|
| Invoice Amount | 1.000,00 |
| Withholding Amount | –100,00 |
| Payment amount to Supplier | 900,00 |
Considering the collection document match amount type was set to net amount, the company receives a collection document from the supplier bank of R$ 900,00 at a later date.
If the collection document payable amount received from the supplier bank and the installment payment amount match, and are within the tolerance limit, the association occurs automatically.
Withholding Taxes at Payment Time
For example, consider an invoice of R$ 1.000,00 and a withholding tax such as the National Revenue Income Tax (IRRF) at 10% calculated at payment time.
| Amount Type | Value |
|---|---|
| Invoice Amount | 1.000,00 |
| Withholding Amount Invoice Time INSS | -100,00 |
| Withholding Amount Payment Time IRRF | -90,00 |
| Payment amount to Supplier | 810,00 |
In the example, the invoice has two withholding taxes, INSS at invoice time and IRRF at payment time. The base amount for the second one was configured to net of taxes. Therefore, it is the invoice gross amount minus any withholding taxes previously calculated.
The payment time withholding tax is triggered before the Collection Document Association process. In such case, the taxable base amount for IRRF is R$ 900,00 (1000,00 minus 100,00 INSS tax), and the payment amount is R$ 810,00.
If the collection document payable amount received from the supplier bank and the installment payment amount match, and are within the tolerances, the association occurs automatically.
Discount and Abatement Impact on Matching
Similar to the matching treatment for withholding taxes, select Net Payable Amount for the Collection Document Match Amount Type field at the supplier level to match collection documents net of discounts and abatements.
When you select Net Payable Amount, the amount considered for installment is the gross amount, minus the discount, minus the withholding tax. The application attempts to match the amount against the collection document payable amount automatically.
Using the previous example, the calculations are given in this table:
| Amount Type | Value |
|---|---|
| Invoice Amount | 1.000,00 |
| Discount 5% for anticipated payment | -50,00 |
| Payment amount to Supplier | 950,00 |
The company receives a collection document of R$ 1000,00 with discount instructions from the supplier bank. The collection document is matched to the installment. During the payment, if the payment meets the discount conditions, then the payment to the collection document is the gross amount minus the discount amount.
Interest and Penalties Impact on Matching
The interest and penalty charges on the collection document have no impact to the Installment Association process.
Instructions related to the interest and penalties are in separate fields and are not as a part of the overall collection document amount. They are assessed at the time of payment by the application based on the predefined configuration. They impact the overall payment amount of the matched installment to the collection document, but do not have an impact on the matching process.