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Working with A/R payment proposals

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The creation of a proposal is based on the different ways of claiming debts that your company uses, i.e., different payment modes. You activate the applicable payment modes by entering unique payment information for each debtor. You also define a default payment mode, per debtor. It is possible to manually override the default values at document level. The base version of the system fully supports the payment modes DRAFT, BILL and SEPA Direct Debit.

Detailed information about the payment modes that are pre-defined and pre-loaded at system installation can be found in Loading data in A/R tables and files.

In this routine a proposal of documents to be paid is automatically created by the system, based on your selections. You are allowed to make manual changes to the proposal and a check list may be printed at all stages. It is possible to have many proposals active at the same time, but a document may only be included in one proposal.

SEPA Direct Debit payments

For information about SEPA Direct Debit payments, see the SEPA Direct Debit process document and the Related topics.

Draft/Bill payments

Depending on how you set up the parameters for your payment modes and document types, an update of a proposal may lead to different things:

  1. A document to send to the debtor is printed, e.g., a draft which requires acceptance from the debtor. No postings are created and the balance for the debtor is not affected. Nothing further will happen in the Accounts Receivable until you receive an acceptance.
  2. A payment document, to send to a financial institute, is created in the Accounts Receivable against which the documents in the proposal are settled. The balance on the debtor is updated and General ledger postings are created. The contra accounting to the debtor’s control account may be handled in two different ways:
    1. A posting directly on a bank account.
    2. A posting on a portfolio account which enables further handling by the portfolio routine.
    3. A combination of 1 and 2 where the document you send to the debtor does not require acceptance.

      Tip: A routine exists which handles reminders for unaccepted drafts. This payment order reminder routine is very similar to the regular reminder routine for overdue A/R items. See About working with payment order reminders for more information. See also About working with reminder proposals for a description on how to create, maintain and update reminder proposals. Note the following differences for payment order reminders as opposed to regular reminders:

      • Payment order reminders are issued for A/R payments requiring acceptance that have not been accepted in due time.
      • Reminder issuing is only valid for payments of a payment mode that has the Info to debtor field set to YES.
      • Only payments of a debtor defined payment mode with the Reminder code field set to YES will be included in any proposal.
      • The grace period is calculated from issue date of the A/R payment plus the number of days indicated as reminder grace days in the Business partner file.
      • The reminder text printed on each reminder is controlled per document in the A/R payment proposal. The reminder text is retrieved from the Payment order reminder text file.

    Instead of the automatic settlement by payment proposals, you can settle open A/R documents in a number of ways:

    • Manual payment handling. See About entering A/R payments manually. The manual payment entry routine may also be used to enter drafts and bills with portfolio handling. As no draft document is created this routine should only be used when you already have a draft or bill document in your hand.
    • Group document handling where a number of open documents become settled by grouping them together under a new open document. See About working with A/R group documents.
    • Batch payment from a file containing information for the documents to settle. See About working with automatic A/R payments.

Accounting

Control accounting

The control account posting is based on pseudo accounting, and the system uses the pseudo account defined for the payment document type. The default is XDDEB in combination with the A/R group of the debtor.

The system will create control account adjustments when settling the documents against each other, if you used different control accounts.

Contra accounting

The contra accounting is controlled by the payment document type.

You define one contra account to which the system will automatically post the paid amount.

With portfolio type

If the payment document type is connected to a portfolio type from the Portfolio type table, the contra accounting rules depend on the portfolio type.

Enquiries and printouts

  • A/R transactions and balances contains details and settlement information for all A/R transactions that have been entered.
  • G/L transaction details contains the G/L postings for all A/R transactions in batches that have not been closed.
  • G/L transactions contains the G/L postings for all A/R transactions that have updated the General Ledger. You can use the parameters document type and number for selection.
  • A/R transaction list displays details for all A/R transactions that have been entered. A number of sequence and selection parameters are available, to give you the list that is relevant for your needs.
  • G/L transaction list displays details for the G/L postings of A/R transactions. You can use the parameters document type and number for selection.
  • A/R balance list displays customer balances on different levels.

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