| Payment and receipt methods |  |
| Several methods are available to pay open purchase invoices and to collect the payments on open sales invoices. For example, you can use checks, trade notes, bank orders, payment slips, automatic direct debits, and so on. Each method requires specific details which you can define in the Payment/Receipt Method (tfcmg0140s000) session. For each payment method or receipt method, the details include: Receipt/Payment Whether the payment/receipt method is used for payments to suppliers or for receipts from customers. A payment to a customer is viewed as a negative receipt and a receipt from a supplier is viewed as a negative payment. Kind of Payment/Receipt Whether the payment/receipt method is used in an automatic payment or direct debit procedure, for trade notes or for manually entered payments or receipts. Session to Create Payments/Receipts The session in which ERP LN must generate the payment document or the receipt document during the automatic payment/direct debit procedure. Different sessions and payment reports can be required for each payment document. The various sessions used to create documents and sequential files for receipts and payments are as following: For supplier payments, use the Transfer Payments (tfcmg1260m000) session. For direct debits, use the Transfer Direct Debits (tfcmg4260s000) session. For direct debits in Germany, use the Create German Bank Order (Debit) for Diskette (tfcmg4261s000) session. For payments use the Create German Bankorder for diskette (tfcmg1261m000) session. XML File Define the XML file path for the payment/receipt method in the Data by Bank/Payment Method (tfcmg0145s000) session. The XML file layouts must be defined in the XML Payment/Receipt Layouts (tfcmg0524m000) session. Payment Report The type of additional reports or ASCII files you must generate while processing payments and direct debits. The bank files are generated when you process the payment batch in the Transfer Payments (tfcmg1260m000) session. Additional Report The type of additional reports or ASCII files ERP LN must generate for diskette payments or electronic payments. See: Report groups. Output Type and Device for Payments/Receipts The way in which you transfer the payment file to the bank. Steps The steps that ERP LN must perform for the payment document or the receipt document. For each step, ERP LN updates the document status and if applicable, creates financial postings in the general ledger. Some steps are mandatory, other steps are optional. You can select the optional steps. See: Intermediate steps. Check master If you use pre-numbered payment documents, including trade notes, the payments can be are made through checks. For each bank/payment method, the available checks and used checks are registered in the check master which you can define in the Check Master (tfcmg2115s000) session. Compose Documents Documents can be generated for individual invoices or for several invoices. See: Document composing for cash transactions. Intermediate steps A payment can go through several stages before the total procedure is completed. Payment steps For payments, the following steps are available: Document Received Document Accepted/Sent Document Paid The Document Paid step is mandatory and is always carried out. Only if a payment must get the Anticipated status, one or both of these actions are taken. In practice, the Document Received step is only used for posting trade notes and similar documents. The Document Accepted/Sent step is used for most of the other ways of payment, such as checks, bank orders, and so on. Receipt steps For receipts, the following steps are available: Document Sent to Business Partner Document Accepted by Business Partner Document Sent to Bank Document Paid The Document Paid step is mandatory and is always carried out. Trade notes steps For trade notes, many intermediate steps are available. Select the steps for the trade note statuses that you want to control. For example, in addition to the steps for payments and receipts, you can select: Document Collateral Document Endorsed Document Discounted Document Matured Document Void Document Settled If you select intermediate steps, ERP LN generates anticipated payments or an anticipated receipts or you can create these manually. For some intermediate steps, you must change the status manually by using the following sessions: Anticipated Payment Status (tfcmg2512m000) Anticipated Payments (Details) (tfcmg2116s000) Anticipated Receipt Status (tfcmg2513m000) Anticipated Receipts (Details) (tfcmg2117s000) Anticipated Receipts (tfcmg2111s000) Anticipated Payments (tfcmg2110s000) If you do not select intermediate steps, ERP LN immediately posts the payment amount or the receipt amount to the control accounts in Accounts Receivable or Accounts Payable. You do not need to carry out a reconciliation for these payments. Prerequisites for financial postings For every step that requires financial postings, ERP LN posts the amounts to the following ledger accounts and dimensions: The control accounts you defined for the business-partner groups in Accounts Receivable or Accounts Payable The ledger accounts and dimensions that you select for the payment method in one of the following sessions: Data by Bank/Payment Method (tfcmg0145s000) Posting Data by Bank/Payment Method (tfcmg0146s000) Trade Note Posting Data by Payment/Receipt Method (tfcmg0514m000) ERP LN creates financial postings for the following transactions: Payments through bank orders and checks. Receipts through direct debits and checks. Trade notes payable Trade notes receivable For more information, refer to Prerequisites for trade notes financial postings Related topics Credit notes To set up and process trade notes payable Prerequisites for trade notes financial postings Example of posting automatic bank transactions Financial postings for payments Financial postings for receipts Prerequisites for trade notes financial postings |