When you collect or pay an invoice, you can reconcile the corresponding bank transaction with the invoice registered in Holded. This reconciliation helps you keep your accounting up to date and see which invoices are outstanding and which are not.
In this article, you will learn how to reconcile different cases.
1. Reconcile the entire collection or payment of an invoice
When the amount of the bank transaction matches the total of an invoice, you can reconcile it directly. The process varies slightly depending on whether the invoice is already marked as paid in Holded or if it is still pending.
A. If the invoice is pending payment or collection.
To reconcile an invoice that has not yet been recorded as paid:
Access Treasury > Accounts, select the account, and click Reconcile.
In the transaction list (left), check the box of the transaction you want to reconcile.
In the document list (right), filter by “Sales Invoice” or “Purchase Invoice” as appropriate. Search for the invoice corresponding to the transaction, either by amount, date, or invoice number.
Once located, highlight it and click Reconcile.
The invoice will change to “Paid” status, and the payment or collection transaction will be automatically generated along with its accounting entry.
B. If the invoice is already paid or charged in Holded.
In this case, you do not need to register the payment again. You just need to link the bank transaction to the existing transaction:
Access Treasury > Accounts, select the account, and click Reconcile.
In the transaction list (left), check the box of the transaction you want to reconcile.
In the document list (right), filter by “Payments” or “Receivables”, depending on whether it is a purchase or sales invoice.
Check the corresponding payment or collection and click Reconcile.
This process will not generate any new collection or accounting entry, it simply links the bank transaction with the payment or collection already registered in Holded.
☝🏼 If you select a bank transaction and do not find the invoice, it is most likely already marked as paid. In that case, change the filter and look for the corresponding payment or collection.
2. Reconcile the collection or partial payment of an invoice
In some cases, you may receive a part of the total amount of an invoice, either because the customer has paid the first due date or because they have made a partial payment for another reason. In these cases, you can reconcile that part and record that there is still an outstanding balance:
Access Treasury > Accounts, select the account, and click Reconcile.
In the list of transactions (left), filter by “Sales invoice” (or purchase invoice, if it is a partial payment you have made).
Select and mark the transaction on the left (e.g. +350€).
On the right side, locate the sales invoice (in this example, +500€), and mark it as well.
Holded will automatically show you that, after this reconciliation, there will be an outstanding amount of 150€.
If the amount is correct, click on Reconcile.
The system will record the partial payment and keep the invoice in “pending” status, clearly indicating the remaining amount to be paid or collected.
☝🏼 You can check the reconciled partial payment of the invoice by accessing the invoice from Sales or Purchasing and scrolling to the “Payments” section on the right side, where you will see the payment recorded (+350€) and the message “Pending payment: 150€”.
3. Reconcile advances or payments on account
When you make an advance payment to a supplier, or receive an advance payment from a customer, you can record that transaction as a payment on account. Later, you will be able to associate it with the corresponding invoice as soon as you receive or issue it.
A. Record the collection or advance payment
Go to Treasury > Accounts, select the account and click on Reconcile.
In the list of transactions (left), filter by “Pending” and sort by date if needed.
Locate the transaction corresponding to the advance (e.g. -500 € for a supplier) and check the box.
Click on Transfer in the lower right corner of the screen.
In the pop-up window, select the Payment (if it is a supplier) or Collection (if it is a customer) option.
Review and complete the payment information: date, description, contact (supplier or customer), and amount.
Click Create and reconcile.
The system will record the transaction as a payment (or collection) on account, and it will be available to be linked to an invoice at a later date.
B. Link the advance payment to the invoice
Once you receive (or issue) the invoice corresponding to the down payment:
Go to Purchases > Invoices (or Sales > Invoices).
Click on the invoice in the list to open it.
In the right side menu, find the “Payments” section and click Add payment.
In the pop-up window, click on the “Relate to an existing payment” magnifying glass icon at the bottom.
A new window will open with all unlinked payments assigned to the invoice contact. Select the correct payment and click Confirm.
The invoice is now linked to the previously registered payment on account.