Payables Vs Receivables – History Transactions



I have been trying to know the basic reason behind why GP has this difference in the Payables and Receivables process.


In Payables, an Invoice will be moved to History as soon as it is posted and fully applied. But in Receivables, an Invoice will be moved to History only when we do a Paid Transaction Removal process.


WHY NOT Receivables also have the same process, wherein once we post and fully apply the document, it gets moved to History?

OR

WHY NOT Payables also have a “Paid Transaction Removal” process for its own documents that moves the Documents to History explicitly instead of what it does currently?

I would be grateful to know from various Consultants about WHY such a big process difference between these two modules? Is there any Accounting Based Reason for this? Or is it just the GP that contains this difference?

Any inputs would be great.

VAIDY
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5 thoughts on “Payables Vs Receivables – History Transactions

  1. /* On Behalf of Victoria Yudin */Vaidy, The only reason I could ever think of is this: for Payables, you control how and what to pay, so while there may be times when you want to unapply and re-apply, they are very rare. In Receivables, since many times you are 'guessing' at what the customer intended, there may be many more situations where you want to unapply and reapply. Since historical transactions cannot be unapplied and re-applied, receivables transactions have to stay 'open' until they are manually moved to history. It would be great to know the actual reasoning behind this. It would be even better to have the same process for both and to be able to void partially applied transactions and unapply/reapply as needed in both payables and receivables. -Victoria

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  2. The actual reason is simple:In rececivables most customers like to see their last check on the statement, and where it got applied. So, paid transaction removal is typically run after the statements are printed.But vendors usually don't get statements, they get checks. And once a check is paid you don't want to see the check on the aged trial balance. So the rule is immediate paid transaction removal during the check run itself.

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  3. Thanks Victoria, Japheth & Bruce, for sharing your views on this.I also thank Sajeesh, who explained the same reason once I posted this article.Vaidy

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