Methods of Producing Customer Statements:

• Balance Forward Basis
• Outstanding Item Basis 

The difference between both methods of Producing Customer Statements relates to the presentation of the statement through the degree of detail given to the customer. Neither basis changes the end closing balance figure.

Balance Forward Basis Explained

1. If the Statement is showing an Opening Balance and a Closing Balance and only lists the invoices for the current month then the user has indicated the Balance Forward Basis.
2. To use the Balance Forward Basis, tick the box Show opening balance followed by the transactions for the month within Setup> Company Details
3. If the customer account has transactions relating to Jan, Feb & Mar, as follows:
   

   01/01/2022	Invoice	1,000
   15/01/2022	Invoice	250
   18/01/2022	Receipt	(700)
   20/02/2022	Invoice	500
   10/03/2022	Invoice	300
   12/03/2022	Receipt	(300)
   15/03/2022	Invoice	150

4. With the Balance Forward Basis, the statement as of a balance date of 31st March will show:
   
   • All transactions before the current month are shown as an opening balance 
   • Transactions for the current month listed 
   • Closing balance reflected                                                        

Example- Statement To 31st March 2022

Outstanding Item Basis Explained

If the statement reflects all unsettled invoices and/or unmatched receipts, regardless of the date of the transaction, then the user has indicated the Outstanding Item Basis presentation of the customer statement.
To use the Outstanding Item Basis, tick the box Show all Unpaid Invoices (i.e. invoices which have not been matched with a payment) within Setup> Company Details
If the customer account has transactions relating to Jan, Feb & Mar, as follows:

With the Outstanding Item Basis, the statement as of a balance date of 31st March will show:

• All invoices before the current month which remain unpaid listed 
• All invoices for the current month which remain unpaid listed 
• All receipts which have not been Matched or Allocated to an invoice are listed (regardless of date) 
• Closing balance reflected 

Under the Outstanding Item Basis, all transactions will be listed regardless of their date. The purpose of this method of preparing customer statements is that more control is given to the user to determine which invoice a receipt is settling when it is received. This is an added management tool for customer accounts.

To determine the invoice being settled, the user must Match or Allocate the receipt to the invoice. To do this a function is made available to the user under Tools> Allocations> Customer Receipts.

Choose the customer account. To match the receipt, simply double-click on the receipt and then double-click on the invoice to which it relates. Click Update.

The above transactions may be matched/allocated as follows:

Therefore, after the user has completed the matching/ allocating process, based on the above transactions, the customer statement will be presented as follows:

Statement To 31st March 2022

Once the statement is prepared under this method it will only show the invoices which are unpaid, and if some invoices are partially paid then the statement will reflect the part outstanding for payment.

Note: It is not necessary to Match/Allocate Receipts to Invoices under the BALANCE FORWARD BASIS - therefore the option to allocate is hidden from the user when this method of presenting the customer statements is chosen.