The client journal is the third file required for an ERP integration, alongside the buyers and receivables files. It lists all the cleared receivables.
This file is optional and can be provided later, or skipped entirely if your ERP does not support clearing codes or if you choose not to use them.
Understanding Clearing and Clearing Codes
Understanding accounting reconciliation concepts is essential. Here is a breakdown of what clearing (allocation) and clearing codes mean:
What is Clearing (or an allocation)?
Clearing is the accounting process of matching open debit items (such as invoices or debit notes) with corresponding credit items (such as payments, credit memos, or discounts) for a specific customer (buyer). When items are cleared, it means they have been settled or reconciled against each other in the general ledger.
What is a Clearing Code (or Matching code or Lettering code)?
A clearing code is a unique identifier, or matching key, generated by the ERP when items are successfully cleared together. All debit and credit transactions that belong to the same reconciliation group share this exact same code.
Objective
In the Client journal file, the CLEARING_CODE allows our system to trace how invoices were paid or offset, group related transactions together, and automatically verify that accounts balance.
The file must allow us to clearly distinguish between payments received on the factor's bank account versus direct settlements received on any other account. Populate the JOURNAL column with the general ledger code or the offset account.
This information is essential for using our gap features, as it helps explain any discrepancies between the factor's payments and the total amount of cleared items between two cessions.
What to include
All items cleared during the last 2 months, based on the clearing date when available. If no clearing date is available, at least the current and previous fiscal year are recommanded (in the case you need to clear old receivables).
Every item involved in a clearing: invoices, credit notes, payments and other items.
Partially cleared items, with their remaining balance if possible.
Columns specific to the client journal
The client journal uses the same base columns as the receivables file (company, buyer, item type, number, dates, currency, amount). The following columns are specific to it.
JOURNAL (mandatory)
The accounting journal code where the item is recorded, for example a sales journal or a bank journal. Afakto uses it to identify the payments received on the bank account dedicated to the factor. If your journal codes do not allow this, you can use the offset account instead.
CLEARING_CODE (mandatory)
The unique matching code that links one or more invoices to the payments, credit notes or other items that settled them. All items cleared together share the same code.
How to check file completeness with examples
To verify the completeness of a clearing, the total amount of receivables for the same buyer and the same clearing code must equal zero (unless it is a partial clearing).
ITEM_TYPE | ITEM_NUMBER | AMOUNT | CLEARING_CODE | JOURNAL |
INVOICE | INV-2023-003 | 3 000 | AATDD | 701001 |
PAYMENT | CHK-2023-010 | -3 000 | AATDD | 512100 |
| Balance amount | 0 | ✅ |
|
INVOICE | INV-2023-005 | 800 | 478965 | SALES |
CREDIT_NOTE | CN-2022-085 | -800 | 478965 | SALES |
| Balance amount | 0 | ✅ |
|
INVOICE | INV-2023-018 | 1 200 | 14500012 | VTE |
INVOICE | INV-2023-019 | 1 200 | 14500012 | VTE |
OTHER | ADJ-2023-65 | -80 | 14500012 | OD |
PAYMENT | WIR-2023-901 | -600 | 14500012 | BQ1 |
| Balance amount | 1 720 | ❌ |
|
1st example:
Invoice INV-2023-003 (3,000.00 EUR) is paid by payment CHK-2023-010. Both lines carry the clearing code AATDD and a balance of 0. The payment is recorded in journal DK with offset account 512100, which identifies the bank account where the funds were received.
2nd example:
Credit note CN-2022-085 (-800 EUR) clears invoice INV-2023-005 (800 EUR). Both lines share the clearing code 478965.
3rd example:
The sum is +1 720 instead of 0.00. Since the balance amount does not equal zero, the file might be incomplete, which means the analysis cannot be 100% accurate.