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Working with A/P payment proposals

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The process of creating, maintaining, and printing A/P payment proposals, includes the following:

  • creating payment orders
  • printing and confirming cheques
  • printing remittance advice
  • creating temporary postings
  • updating and deleting payment proposals.

In this routine you create payments to send to a financial institute for payment of supplier transactions, or print and confirm cheques to send to your suppliers. The system provides you with unlimited methods of paying your suppliers. The payment function is controlled by parameters in the Business partner file for each supplier, such as payee number, payment mode, and supplier’s bank. If the supplier uses a factoring company to collect payments the system uses a payee number in the Business partner file to retrieve the payment mode and supplier’s bank.

The supplier’s bank is retrieved from the entered transaction. If Supplier’s bank has been left blank during the transaction entry, the bank is retrieved first from the A/P supplier payment mode/currency table and secondly from the A/P supplier payment mode table.

The system creates one payment document per payment mode, transaction currency, supplier number, supplier’s bank, and payment date.

Several proposals can be active at one time, but a document can only be included in one proposal. You can only maintain one proposal at a time.

You can by choice send zero payments to the financial institute and you can partially settle a document.

Unique payment
You can handle a document as a unique payment (one payment per settled transaction), for example, if you enter additional payment information or a bank reference number. This is controlled by the entry in Unique payment in Work with A/P payment modes.

If a document belongs to a sundry supplier it will always be handled as a unique payment.

Unique mode
You can handle a payment mode as a unique mode in a payment proposal. This is controlled by the entry in Unique mode in Work with A/P payment modes. Payment modes set up for cheque payments should be unique in order to activate the Payment order confirmation handling for the mode, a function that enables you to confirm the numbers for cheques printed to settle a payment’s documents.

Calendar
You can control the payment date(s) on your documents, if they are payable or not. This can be controlled by a pre-defined calendar for the payment mode. For example, if the date is a non-payable date the calendar moves the date to the previous payable date or the next payable date. The entry in Previous payment date in Work with A/P payment modes controls this.

Split model
You are able to automatically split the on accounts/credit notes on one or more payment dates until they are completely settled. If they are not fully settled and there are no more remaining dates to split the on accounts/credit notes to, then the remaining amount is updated on the accounts/credit notes payment day. However, to do this you must enter either a 1 or a 2 in Split model in the A/P control file. 1 represents the split starting from the payment proposal’s first payment date. 2 represents the split starting from the on accounts/credit notes payment date.

Exchange rates
When you are paying documents in a foreign currency, and do not know the exact exchange rates, you can hold the actual accounting in the General Ledger of the payments until you receive notice from the bank on the exact payment amount.

You can always choose to register the payment proposal with temporary postings. This is useful, when you, for example, want to know the effect on the balances in the Supplier’s Ledger and the General Ledger, but still do not know the exact exchange rate or the exact payment amount.

You are able to re-report a payment date that has been sent with bank notification and not been paid.

You can change the exchange rate, or the actual amount, as well as delete the payment date.

Recreate order
You have the possibility to recreate a payment order when you have created a payment order and when you have created temporary postings, or if you have confirmed a cheque used in a payment order as damaged or lost and want to reprint it.

Use of this function is controlled by Recreate payment order in the A/P control file.

Automatic deletion
When you do a final update of a proposal you have the possibility to save the detail documents in a historic file after the proposal has been finally updated. This is controlled by the entry in Automatic deletion in the A/P control file. If you save the documents, as above, you can only print a control list and you must manually delete them, see Delete an A/P payment proposal.

Manual settlement
Instead of handling payment proposals as described here, you can settle A/P documents manually using the Enter financial transactions menu item. See About entering A/P payments manually.

Cheque payments

See Assign numbers to and confirm cheques, successfully printed and Assign numbers to and confirm cheques, not successfully printed for more information.

Setup

Cheque inventory
The Cheque inventory routine enables you to set up, per bank/payment mode, cheque number ranges for your pre-printed cheques. In this routine you can also view information about individual cheques and print selected details from the Cheque inventory file.

See About working with cheque inventory for further information.

Printing
If the payment mode is set up to print cheques, the cheques will be printed when you run the Create payment order function. See Create an A/P payment order. The numbers used on the printed cheques are assigned in two different ways:

  • System-assigned. When printing cheques using blank forms such as Output Manager, the cheque numbers are automatically assigned by the system. The number range used is assigned per bank/payment mode, using the Work with banks, Payment document numbers panels. The Cheque inventory will be updated automatically with used cheque numbers and information.
  • User-assigned. You can assign cheque number ranges per bank/payment mode, for pre-printed cheques using the Work with cheque inventory routine.

Confirming
When you have printed the cheques to settle the proposal’s documents, you are ready to use the Confirm cheque printout function to confirm the results. See Assign numbers to and confirm cheques, not successfully printed and Assign numbers to and confirm cheques, successfully printed.

Enquiries and printouts

  • A/P transactions and balances – contains details and settlement information for all A/P transactions that have been entered.
  • A/P payment proposal control list – (see Create an A/P payment proposal for details on how to select and print).
  • A/P payment proposal automatic split list.

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