Shipment Receivable and Payable

Requirements

Note

  • Account numbers in this guide are based on Vietnamese accounting standards. When implementing in practice, we need to use appropriate account numbers for each country.

Introduction

In the freight forwarding industry, businesses often act as intermediaries, collecting money from customers and then transferring it to third parties, or paying on behalf of customers and collecting it back later.

Collection on behalf: Collect money from customers but must transfer it back to other partners. Accounted to Account 3388 - Other Payables.

Disbursement on behalf: Advance payment to partners on behalf of customers, then collect it back. Accounted to Account 1388 - Other Receivables.

Real-world example:

Exporting goods to the USA for customer A. Total collection: 30,000,000 VND

  • Sea freight: 20,000,000 VND - company revenue

  • Export customs fee: 5,000,000 VND - collect on behalf for HCM City Customs Department

  • Port warehouse fee: 5,000,000 VND - collect on behalf for Tan Cang Port

The company collects 30 million from the customer, must transfer 10 million to two partners, actual revenue is only 20 million.

Important

  • Collection on behalf is not revenue - not recorded in Account 511, recorded in Account 3388

  • Disbursement on behalf is not cost - not recorded in Account 632, recorded in Account 1388

  • Collection/disbursement on behalf does not affect shipment profit

Module Installation

  1. Access Apps → Remove Apps filter → Search for “viin_sale_onbehalf” → Install

  2. Continue searching for “viin_freight_sale_onbehalf” → Install

Note

The viin_freight_sale_onbehalf module will automatically install viin_sale_onbehalf and viin_account_onbehalf_payment if not yet available.

Collection on Behalf from Customer Workflow

Step 1: Mark collection on behalf services

  1. Access Sales > Orders > Create

  2. Fill in customer information and services

  3. For service lines that need collection on behalf:

    • Check Mark On-Behalf checkbox

    • Select Collection Partner - the partner to collect on behalf for

  4. For service lines that are company revenue: Do not mark

Configuration example:

Service

Amount (VND)

Mark On-Behalf

Collection Partner

Sea freight

20,000,000

No

Export customs fee

5,000,000

Yes

HCM City Customs Department

Port warehouse fee

5,000,000

Yes

Tan Cang Port

Tip

Marking from the beginning helps the system automatically exclude from invoices, automatically allocate when customers pay, and automatically track payables to partners.

Step 2: Confirm sales order

  1. Click Confirm

  2. System automatically creates shipment linked to the order

Step 3: Issue customer invoice

  1. Click Create Invoice → Select Regular invoice → Create and View Invoice

  2. Invoice only contains lines without Mark On-Behalf

  3. In the above example: Invoice only has 20,000,000 VND - no collection on behalf lines

  4. Click Confirm → Invoice in Not Paid status

Step 4: Record payment from customer

Customer transfers entire 30,000,000 VND to company account.

  1. Access Accounting > Customers > Payments

  2. Click Create to create new payment

  3. Fill in information:

    • Payment Type: Inbound

    • Partner: Select customer

    • Amount: 30,000,000 VND

    • Payment Date: Date received money

    • Journal: Select bank journal

  4. Select Sale Order: Click on Sale Orders field and select the order just created

  5. System automatically:

    • Checks On-Behalf Payment checkbox

    • Creates On-behalf Payment Distribution tab with list of partners and amounts:

      Partner

      Percentage

      Amount (VND)

      HCM City Customs Department

      16.67%

      5,000,000

      Tan Cang Port

      16.67%

      5,000,000

    • Displays total collection on behalf: 10,000,000 VND

    • Amount for reconciliation: 20,000,000 VND

  6. Check and click Confirm

Automatic journal entry:

Debit Account 1121 - Bank deposits:     30,000,000 VND
    Credit Account 131 - Accounts receivable:  20,000,000 VND
    Credit Account 3388 - Other payables:  10,000,000 VND

Note

Explanation:

  • Account 1121: Money into bank account

  • Account 131: Reduce accounts receivable from customer - only revenue portion

  • Account 3388: Record collection on behalf amount for partners - not revenue

Step 5: Reconcile payment with invoice

  1. Return to invoice created in Step 3

  2. System automatically displays Outstanding Credits section

  3. Click Add button to reconcile

  4. Invoice changes to Paid status

Result:

  • Collected from customer: 30,000,000 VND

  • Revenue invoice: 20,000,000 VND - Paid

  • Payables to partners: 10,000,000 VND - Recorded but not yet paid

Payment to Collection on Behalf Partners

After collecting money from customer, need to transfer money to partners.

Warning

Distinguish collection on behalf and costs:

This amount is collection/disbursement on behalf, not company costs. Therefore:

  • Do not create Vendor Bill

  • Do not allocate to Analytic Account

  • Only create Payment to transfer money

  • Journal entry: Debit Account 3388 / Credit Account 1121

Payment workflow

  1. Access Accounting > Vendors > Payments

  2. Click Create to create new payment

  3. Fill in information:

    • Payment Type: Outbound

    • Partner: Select partner to pay - example: HCM City Customs Department

    • Amount: 5,000,000 VND

    • Payment Date: Transfer date

    • Journal: Bank journal

    • Memo: Note - example: “Payment collection on behalf customs fee SO001”

  4. Destination Account field will automatically select Account 3388

  5. Click Confirm

Automatic journal entry:

Debit Account 3388 - Other payables:    5,000,000 VND
    Credit Account 1121 - Bank deposits:  5,000,000 VND

  1. Repeat above steps for second partner - Tan Cang Port with amount 5,000,000 VND

Final result:

  • Transferred money to Customs: 5,000,000 VND

  • Transferred money to Tan Cang Port: 5,000,000 VND

  • Account 3388 payables: 0 VND

  • No impact on shipment profit

Distinguishing Collection on Behalf and Actual Costs

Comparison table

Criteria

Pure collection on behalf

Actual costs

Nature

Intermediary collection/disbursement

Company costs

Create Vendor Bill

No

Yes - mandatory

Account

Account 3388 - Other payables

Account 632 - Costs

Analytic Account

No allocation

Yes - mandatory

Impact on profit

No

Yes

Pure collection on behalf example

Situation: Customer must pay 5 million customs fee. Instead of paying themselves, they ask company to collect on behalf and pay for them.

How to handle:

  1. Create sales order with “Customs Fee” line marked Mark On-Behalf, select Collection Partner = Customs Department

  2. Issue invoice - invoice does not have this line

  3. Customer pays - system automatically allocates to Account 3388

  4. Pay to Customs - only create Payment, do not create Vendor Bill

Actual cost example

Situation: Company hires trucking for 10 million to transport goods from warehouse to port.

How to handle:

  1. Create Vendor Bill for trucking supplier

  2. Select account: Account 632 - Purchased service costs

  3. Allocate Analytic Distribution: SO001

  4. Confirm bill: Debit Account 632 / Credit Account 331

  5. Payment: Debit Account 331 / Credit Account 1121

  6. Affects shipment profit

Tip

Quick recognition:

  • If there’s “Mark On-Behalf” line on sales order → Collection on behalf → Don’t create Vendor Bill

  • If company decides to hire service → Cost → Need to create Vendor Bill

Disbursement on Behalf for Customer Workflow

Step 1: Advance disbursement on behalf

Imagine a case where customer’s shipment gets red lane inspection, must pay additional fees. Forwarder company must pay customs fee on behalf of customer to avoid long storage, which would incur significant additional fees.

  1. Access Accounting > Vendors > Payments

  2. Click Create to create new payment

  3. Fill in information:

    • Payment Type: Outbound

    • Partner: HCM City Customs Department

    • Amount: 3,000,000 VND

  4. Mark disbursement on behalf:

    • Check On-Behalf Payment checkbox

    • Switch to On-behalf Payment Distribution tab

    • Click Add a line

    • Partner: Select customer - person receiving disbursement on behalf

    • Percentage: 100%

    • Amount: 3,000,000 VND

    • Account 1388: Select Account 1388 - Other receivables

  5. Click Confirm

Journal entry:

Debit Account 1388 - Other receivables:      3,000,000 VND
    Credit Account 1121 - Bank deposits:  3,000,000 VND

Important

Outbound On-Behalf payment must manually allocate account to Account 1388 because there’s no linked Sale Order. Different from Inbound On-Behalf Payment, when selecting Sale Order, system will automatically allocate correctly to Account 3388.

Step 2: Collect back from customer

After disbursing on behalf and recording receivables in Account 1388, collecting back from customer must clear this receivable.

  1. Access Accounting > Customers > Payments

  2. Click Create to create new payment

  3. Fill in information:

    • Payment Type: Inbound

    • Partner: Select customer

    • Amount: 3,000,000 VND

    • Payment Date: Date received money

    • Journal: Bank journal

    • Account 1388: Select Account 1388 - Other receivables for partner

  4. Click Confirm

Journal entry:

Debit Account 1121 - Bank deposits:  3,000,000 VND
    Credit Account 1388 - Other receivables:    3,000,000 VND

Result:

  • Disbursed on behalf to Customs: 3,000,000 VND

  • Collected back from customer: 3,000,000 VND

  • Account 1388 = 0 VND

  • No impact on revenue

Warning

Disbursement on behalf amount is not revenue, so do not issue invoice. Collection back must be recorded in Account 1388 to clear other receivables. If issuing invoice will cause wrong revenue and wrong tax.

Tracking Collection and Disbursement on Behalf

View on shipment

  1. Access Freight Forwarder > Operations > Shipments

  2. Switch to Kanban mode

  3. Click Overview button on shipment card

  4. View On-behalf Payments section:

    • Collection/disbursement on behalf amounts.

    • Amount to collect.

    • Amount collected.

    • Amount remaining.

Frequently Asked Questions

Why need to mark collection on behalf separately?

To avoid calculating wrong revenue and profit. If not marked, system will count everything as revenue, distorting financial reports.

Can mark collection on behalf after confirming sales order?

Yes, but more complicated. Should mark when creating sales order. If already confirmed and issued invoice, must cancel old invoice and create new one.

What if customer pays insufficient?

  • If insufficient revenue portion: Record accounts receivable in Account 131 as normal

  • If insufficient collection on behalf portion: Need to renegotiate with customer or company advances disbursement on behalf

Does collection on behalf affect profit reports?

No. Collection on behalf is not counted as revenue so doesn’t affect profit. Only affects cash flow.

How to know if collected enough money from customer?

View On-behalf Payments section on shipment in kanban mode. System displays amount collected and amount remaining.

See also

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