Advance Payments and Returns
I am having an issue designing the process for payments and processing payment returns. The organisational structure that the company operates is such that there are units that have been represented as cost centres in the FICO configuration. These units are paid a certain amount monthly and at the end of the month they specify how the money was spent.
Based on the return that was sent, transactions are posted to the different overhead GL accounts (cost elements) for each of the cost centres. My major issues are
1. How will I reflect the payment that has been made to the cost centre knowing that the actual expenditure is only incurred later on and is only confirmed when the returns are submitted.
2. How will the expenditures (recorded during returns) be posted to the appropriate GL account when returns are made?