Financial history

The financial history report is specific to each contact. It can be accessed by going into the contact record and clicking "Financial history" in the "Financials" box on the right-hand side of the page, or through the "Accounting" tab on a contact's mini tab.

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The financial history report lists every single transaction related to a contact's account. In essence, it provides the same information as the general ledger filtered to the accounts receivable or accounts payable code, but for a single contact.

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Understanding how the financial history report displays information is essential when it comes to investigating account balances.

Filtering the financial history report

The available filters are:

Filter Description
Search Search the financial history by amount, invoice reference, order reference and details.
Overdue

Choose between:

  • All invoices
  • Overdue only

Date from

Date to

Select the date range to filter for. This field uses tax date.
Type Choose the journal type.
Created by Filter by staff member.
Cleared Filter for only cleared, only uncleared or all transactions.

The columns on the report are:

Field Description
ID The journal ID of the transaction.
Tax date The tax date of the transaction.
Type The journal type of the transaction.
Contact The name of the contact whose financial history is being viewed.
Invoice ref The transaction's invoice reference. All rows should have an invoice reference.
Details Any additional comments, taken from the 'Details' box on the journal.
Order ID The associated order ID (if applicable).
Currency The transaction's currency.
Invoice The invoice (debit) amount of the transaction.
Payment/credit The payment or credit (credit) amount of the transaction.
Rate The exchange rate of the transaction.
Cleared

Displays either a green tick or a red cross.

A green tick indicates the transaction is cleared, while a red cross indicates it is uncleared.

How to use the financial history report

When trying to interpret the financial history report, consider the following:

  1. In what order did events occur?
    You can’t rely on the tax date to tell you, for two reasons:
    • Transactions may share a tax date
    • Even if they don't, the tax date on a transaction is not necessarily reflective of when it was entered.
    However, you can sort the report by journal ID (oldest to newest), since journal IDs are generated sequentially.
  2. What are the journal types involved?
    The journal types will tell you whether the transaction was an invoice, a payment or a credit.
  3. What amounts are involved?
    An "Invoice" amount will increase the balance while a "Payment/Credit" amount will decrease it.
  4. Are there any linking journals?
    Linking journals are journals created when items are allocated to one another "indirectly" - for example, a payment on account to an invoice or a credit to an invoice. These journals may only affect 1100 or 2100, or, if the amounts of the payment/credit/invoice are different, they may involve a bank too.
    You can identify them because there will be 2 (or more) entries on the financial history linked to one journal.

Example

Take a look at the following report:

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In this case, the journals are already ordered from oldest to newest.

  • You can see that the very first entry is an ‘SI’ journal, invoice reference SI-100214, for £349.99. Therefore you know an invoice was issued.
  • The second entry is an ‘SR’ journal with the same invoice reference and the same amount. Both rows are cleared. So this is straightforward - an invoice was issued and then paid.
  • The third entry is an ‘SC’ journal, invoice ref SC-100215, for £349.99, so a credit for the same amount as the invoice was raised.
    • Therefore it looks like the customer either returned the item or a credit was granted for it for some reason - you can find out more by clicking into the order.
  • The fourth entry is another ‘SI’ journal, invoice ref SI-100216, for £400. Therefore the customer raised another order after being issued a credit.
  • There is only one more journal entry - a linking journal, clearing the credit and SI-100216 off.
    • You can tell this journal entry is a linking journal because it has 2 rows against it, one referencing the invoice and one referencing the credit.

At this stage you know there have been two invoices and one credit.

One invoice was paid directly, and the credit was then allocated to the second invoice.

The credit and the second invoice are:

  • for different values
  • cleared off

... so the remainder must have been paid at the same time. You can validate this by looking at the linking journal.

Using this report will get easier with practice - take your time and remember to go through it methodically.

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