Scope
This article applies to both FirstBIT ERP and FirstBIT Contracting configurations. The described behavior is part of the standard payment status calculation logic implemented in both configurations.
Overview
The payment status indicator displayed in the Invoice list is calculated according to the system's internal algorithm.
The indicator is not based solely on the outstanding Accounts Receivable balance.
Instead, the system compares the values calculated for the Invoice from the following sources:
- Sales register
- Accounts Receivable register
Based on this comparison, the system determines whether the Invoice is displayed as Not Paid, Partially Paid, or Fully Paid.
As a result, reducing the outstanding balance does not always change the payment status indicator.
Calculation Logic
For each Invoice, the system calculates:
- Sales Amount — based on the turnover in the Sales register.
- Accounts Receivable Amount — based on the remaining balance in the Accounts Receivable register.
The payment status indicator is then determined by comparing these calculated values according to the implemented algorithm.
Depending on the relationship between these values, the Invoice is displayed as:
- Not Paid
- Partially Paid
- Fully Paid
The indicator is therefore based on the comparison of register values rather than solely on the remaining outstanding balance.
Credit Notes documents and the Payment Indicator
Situation:
Based on Invoice document Credit Note was created (Inoice Correction or Goods Return) amount of initial document was corrected - but will it be visible with indicator?
Example:
initial Invoice:
Credit Note:
And setting on Settlements tab may have impact to payment indication.
Credit Note without Advance
When a Credit Note is created without the Advance option (on Settlements tab):
- the outstanding Accounts Receivable balance is reduced correctly;
- the remaining amount due is recalculated correctly;
- subsequent Bank Receipt documents will suggest only the remaining outstanding amount for payment.
However, because both the Sales Amount and the Accounts Receivable Amount are reduced proportionally, the values remain equal. According to the implemented payment indicator algorithm, the Invoice continues to display the Not Paid status.
And indication:
This behavior is expected.
Credit Note with Advance
When the Advance option is selected:
- the posting logic differs from a standard Credit Note;
- the calculated values of the Sales and Accounts Receivable registers are no longer equal;
- therefore, the Invoice payment indicator changes to reflect a Partially Paid status.
And indication:
This behavior is also expected.
Important Note
The Invoice payment status indicator should not be interpreted as the customer's outstanding balance.
A Credit Note may reduce the remaining amount due while the payment status indicator remains unchanged, depending on how the document affects the values used in the payment status calculation.
To verify the actual outstanding balance, always refer to the Accounts Receivable information and settlement calculations rather than relying solely on the payment indicator.
Summary
The Invoice payment status indicator is calculated by comparing the values obtained from the Sales and Accounts Receivable registers.
Therefore:
- a standard Credit Note (without Advance) correctly reduces the outstanding balance but may not change the payment indicator;
- a Credit Note with Advance affects the calculation differently and may update the Invoice payment status;
this behavior is standard and is implemented identically in both FirstBIT Software.
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