| To use payment agreements |  |
| Invoicing and payments in Japan To set up paying your suppliers in accordance with Japanese business practice, you can set up Payment agreements. Payment agreements are often used if you receive a monthly billing invoice from your supplier. To setup up payment agreements To set up payment agreements, use the following sequence of sessions: Group Company Parameters (tfgld0101s000) Select the Payment Agreement check box. Payment Agreements (tcmcs2506m000) Define the payment agreements. Because multiple financial companies can share the payment agreements, you must define the amounts in the reference currency. Invoice-from Business Partners (tccom4122s000) If you have a payment agreement with a supplier, select the payment agreement. ERP LN adds the payment agreement by default to purchase order lines for the business partner. Payment Agreement by Item (Group) and Invoice-from BP (Group) (tcmcs2108m000) (Optional) If you prefer, you can select specific payment agreements for combinations of invoice-from business partner and item or item group, or financial business partner group and item or item group. Priorities to Set Default Payment Agreement (tcmcs2109m000) (Optional) If you used the Payment Agreement by Item (Group) and Invoice-from BP (Group) (tcmcs2108m000) session, you can use this session to define the order of priorities that ERP LN uses to determine the default payment agreement for a purchase order line. Note ERP LN searches for the most specific payment agreement. If no specific payment agreement is found for the invoice-from business partner or business partner group and item or item group combination, ERP LN uses the default payment agreement that you specified in the Invoice-from Business Partners (tccom4122s000) session. To apply payment agreements If the Payment Agreement check box is selected in the Group Company Parameters (tfgld0101s000) session and payment agreements exist for at least one of the payments in a payment batch, you must apply the payment agreement before you can process the payment batch or generate trade notes payable (TNP). To apply payment agreements to payments that you make, use the following sequence of sessions: Payment Advice (tfcmg1501m000) or Batch Numbers for Payment Procedure (tfcmg1521m000) On the Specific menu, click Apply Payment Agreement. The Apply Payment Agreement (tfcmg1230m000) session starts. Apply Payment Agreement (tfcmg1230m000) Apply the payment agreements to the payments in the batch. If you apply the payment agreement, ERP LN performs the following actions: Calculate the total invoice amount. The following details must be the same for all the invoices: The invoice-from business partner The invoice currency The payment agreement Compare the total invoice amount with the payment agreement limit. If the total invoice amount is less than or equal to the payment agreement limit, use the payment agreement. If the total invoice amount exceeds the payment agreement limit, use the next payment agreement. Repeat this step as necessary to find the payment agreement to be used. Split the payable amount according to the payment agreement definition. Generate the payment lines. Create separate batches for payment lines with different payment methods. Because the payment agreements are defined in the reference currency, the payment agreements are applied to the invoice amounts in the reference currency. Note If you use the uninterrupted payment process, ERP LN automatically applies the payment agreements. Payment advises that contain an invalid payment agreement are moved to the newly created exception batch. For details, refer to Automatic or uninterrupted payment process If you use self-billing, in the Generate Self-Billing Purchase Invoices (tfacp2290m000) session and the Generate Internal Freight Invoices (tfacp2246m000) session the following rules apply: If all the selected lines have the same payment agreement, ERP LN uses the payment agreement for the invoice. If the selected lines have various payment agreements, ERP LN uses the payment agreement you defined for the business partner in the Invoice-from Business Partners (tccom4122s000) session. Related topics Examples of payment agreements Monthly billing invoices Bank charges |