From 8e731d87e15cee3e7a85e391f0cc3f616ef66d8b Mon Sep 17 00:00:00 2001 From: eileen <emcnaughton@wikimedia.org> Date: Sun, 27 Oct 2019 12:44:45 +1300 Subject: [PATCH] Further clafition of financial items --- docs/financial/financialentities.md | 33 ++++++++++++++++++++++------- 1 file changed, 25 insertions(+), 8 deletions(-) diff --git a/docs/financial/financialentities.md b/docs/financial/financialentities.md index ac6ecd5e..377942ac 100644 --- a/docs/financial/financialentities.md +++ b/docs/financial/financialentities.md @@ -62,20 +62,37 @@ Negative payments (or refunds) will have the bank or processor account on the ** Financial items exist to track how much has been paid against the various line items within an order / contribution. In an accounting system this might be called credit-matching. -Each line item will have one or more financial items denoting payments made against it. On creation of the order there -will be a financial item for each line item and an additional item for every fee amount. Where the preferred flow is used -this item will have a status of 'Unpaid'. +Each line item will have one financial item denoting payments made against it or a transaction transferring the money to +accounts receivable. On creation of the order there +will be a financial item for each line item and an additional item for every fee amount. + +!!! The created financial item should have a status of 'Unpaid' but it seems that may not always be the case and it may be +partially paid instead - further auditing needed as this seems to be linked to use of an old method to create partial payments. +Financial item statuses are potentially used for reporting but are not used in any functional calculations. !!! note - For historical reasons this may not always be true but [it's the goal](https://github.com/civicrm/civicrm-dev-docs/issues/712). + For historical reasons this may not always be true but [it's the goal](https://github.com/civicrm/civicrm-dev-docs/issues/712). Financial items + may not always be present in practice for Pending contributions. -When a payment is made it might either pay off the line items, or a specific line item, in full. In that case the line item -status is updated to Paid and an `EntityFinancialTrxn` record is created in the `civicrm_entity_financial_trxn` table linking -the line item to the payment and specifying the amount paid. +When a payment is made it might either pay off all the line items, some of each of the line items, specific line items, in part or in full. +Where a line item is now fully paid the status of the related financial item is updated o Paid. An `EntityFinancialTrxn` record is created +in the `civicrm_entity_financial_trxn` table linking the payment to any line items it pays towards, specifying the amount paid on that payment. -If the line item is paid in part then the status is not updated and the `EntityFinancialTrxn` record specifies the portion +If the line item is paid in part then the financial item status should be 'Partly Paid' and the `EntityFinancialTrxn` record specifies the portion of the line item that has been paid by that payment. + +For example if we have the scenario that an Order (Contribution) with 2 line items (values $100 & $200) is created then we will get +- the order +- 1 financial trxn record transferring the cost to accounts payable +- 2 financial items (one for each line item for the full amount) +- 2 financial entity transaction records linking the financial items to the accounts receivable transaction + +If we later get a payment for $100 we will see the following changes +- 1 financial trxn record with is_payment. From account is accounts receivable, to account is the payment asset account (e.g Bank account) +- 2 financial entity transaction records linking the financial items payment to the payment transaction. + + If the line items change then the items financial items have to be updated. Generally the rule is to alter the zero out the old line item, reverse the financial items and then create a new line item with new financial items. However, this is not always possible as there are some scenarios where the schema does not permit this. The has led to -- GitLab