About the reclassification of unknown payments

To enable this functionality, you configure the processing of unknown payments.
Because accounts that temporarily store unknown payments and bank accounts to which you will later reclassify these payments are cash accounts denominated to specific currencies, the processing of unknown payments must be configured separately for each currency involved.
For each currency, complete the following steps to configure processing of unknown payments:

1. To temporarily hold unknown payments in the specific currency, create at least one general ledger account by using the Kontoplan (GL202500).
   We recommend that this be an account of the Liability type with a name that reflects its intended use; for example, the name may include Unknown payments or Unrecognised payments.
2. Create a cash account by using the Cash accounts (CA202000) window linked to the general ledger account created in Step 1.
   
3. In the Entry types (CA203000) window, create separate entry types for the incoming and outgoing unknown payments made in this currency.
   
4. By using the Cash accounts (CA202000) window, bring up each bank account (to which you will later reclassify unknown payments) denominated to the specific currency and (on the Entry types tab) add the entry type created in Step 2 to the list of entry types allowed for the bank account.

Finally, in the Cash management preferences (CA101000) window, in the Unrecognised receipts type field, specify the entry type to be used by default for unknown payments; this default entry type (of the Receipt or Disbursement type) can be the one associated with the currency used most often by your customers.

Once the configuration is finished, you may proceed with the recording and further reclassification of the unknown payments.

When you detect an unknown payment on the bank statement, you process it as follows:

1. In the Transactions (CA304000) or Cash account details (CA303000) window, create a cash transaction and use the appropriate entry type for an unknown payment that appears on this bank account. The transaction records the unknown payment as if it is made from the unknown payment account (the offset account for the entry) to the bank cash account.
2. Once the details of the payment become known, in the Reclassify payments (CA506500) window, specify the appropriate selection criteria to locate the payment.
   Once you locate the payment, specify its details, which at minimum should include the workspace of origin, the actual payer or recipient (that is, customer or supplier), the customer or supplier location, and the applicable payment method and release it. Upon release of the payment, the payment amount will be moved from the unknown payment account to the appropriate supplier ledger or customer ledger account.
   You can view the resulting document by clicking the View resulting document button in the window toolbar.
   
   The system assigns to the resulting document the payment reference number specified in the Document ref. field of the initial unknown payment.

After reclassification, you have the correct transaction between the cash account and the supplier ledger or customer ledger account, which can be reconciled with the bank statement and traced in the customer or supplier documents, and the amount on the temporary account is reversed.

You use the Reclassify payments (CA506500) window to view the released unrecognised payments (reclassified or not).
As you record the unknown payments by using the dedicated entry type, you start your search by selecting the corresponding entry type in the Entry type field of the window.
Then you can further narrow the results by specifying a cash account and date range.
The system displays only released unknown payments that require reclassification and have been recorded by using the selected entry type to the specified account.

If you want to view payments that have been reclassified, you additionally select the Show reclassified check box.
The system displays the list of reclassified payments.
You can view the resulting document by highlighting the needed record and clicking View resulting document in the window toolbar.

If you want to view recorded unknown payments that have not been released yet, you can use the following windows:

• Transactions (CA304000):
  You search for the payment by its reference number.
  You may specify the document reference number and the cash account as the filter criteria in the reference number selection window.
• Cash account details (CA303000):
  You search for the payment by selecting the cash account to which you have recorded it and the possible date range, and selecting the Include unreleased check box.
  You may further narrow the results by filtering the table records by the value of the Document ref. column.
• Release cash transactions (CA502000):
  You search for the payment by filtering the table records by cash account and transaction description.

You can release a balanced unknown payment by using all of the windows listed above.