| The payment process |  |
| Note Depending on the parameter settings in the CMG Parameters (tfcmg0100s000) session, only authorized users can select invoices for payment and process a payment batch in Cash Management. For details, refer to To set up payment authorization in Cash Management. In the CMG Parameters (tfcmg0100s000) session, you can indicate whether authorized users must approve a payment batch for processing. If you select the Payment Batch Approval and the Direct Debit Batch Approval check boxes, only authorized users can process a payment batch. In the Payment Authorizations (tfcmg1100m000) session, you can define authorized users. You can use the following automatic payment processes: The automatic payment procedure After selection of the invoices, you can verify the results and make adjustments. For example, you can review and change the selected invoices, and you can assign advance payments, unallocated payments, or credit notes to the open entries before you make the payments. The uninterrupted payment process After selection of the invoices, ERP LN carries out the payment process as an uninterrupted payment run. This enables you to run the payment process as a batch job at night. This process does not search for advance and unallocated payments, or credit notes. For details, refer to Automatic or uninterrupted payment process. Search for advance and unallocated payments and credit notes If you select open entries for payment, ERP LN searches for advance and unallocated payments or credit notes, that you can apply to the open entry. ERP LN displays a warning or generates a report of the business partners for which such documents exist. You can display the available advance payments, unallocated payments, or credit notes for the business partner and assign them to the open entries. In a multi financial company structure, ERP LN searches all the financial companies of the group company. The automatic payment procedure To run the automatic payment procedure, use the following sequence of sessions: Standing Orders (tfcmg1510m000) For payments for which no purchase invoice is available, you can create standing orders. For details, refer to Standing orders Select Invoices for Payment (tfcmg1220m000) Use this session to select the invoices which are due for payment in the open entries of the Accounts Payable module, as well as standing orders ERP LN selects the purchase invoices and cost invoices for which the following conditions are fulfilled: The invoice is approved. The Approved for Payment status is Yes or Not Applicable. No hold reason is linked to the invoice. If you select the Select Non Approved Invoices for Payment check box in the CMG Parameters (tfcmg0100s000) session, unapproved invoices can also be selected. Other parameters selected in the CMG Parameters (tfcmg0100s000) can also have an effect on the invoice selection. ERP LN searches for unassigned advance and unallocated payments and credit notes for the business partners, and automatically generates a report of the business partners for which such documents exist. Before you continue the payment process, you can assing the payments and credit notes to the open entries. Based on several selection criteria, a pro-forma payment batch is created which is processed for payment. You can settle sales invoices and credit notes with purchase invoices. Payment Advice (tfcmg1501m000) Review the selection of purchase invoices and standing orders, and make the necessary adjustments. For example, you can make the following changes: Change the bank details, or the payment method. Add a payment to the batch. Delete individual payments Delete the complete payment batch If unassigned advance and unallocated payments or credit notes exist for the business partner of the invoice, ERP LN displays a warning. On the appropriate menu, you can click BP Open Entries to display the available documents. Apply Payment Agreement (tfcmg1230m000) If you use payment agreements, you must apply the payment agreements before you can process the payment batch. For details, refer to To use payment agreements. Process Payments (tfcmg1240m000) Use this session to combine payments into a batch according to the values set up in the CMG Parameters (tfcmg0100s000) session. ERP LN searches for a bank relation for each transaction as described in To assign bank relations. Related sessions Depending on the values of the relevant parameters in the CMG Parameters (tfcmg0100s000) session, after you click Compose in the Process Payments (tfcmg1240m000) session, ERP LN can start the following sessions: Assign Banks to Payments (Manually) (tfcmg1251m000) If ERP LN cannot automatically assign bank relations to the transactions, the Assign Banks to Payments (Manually) (tfcmg1251m000) or the Assign Banks to Direct Debits Manually (tfcmg4251s000) session starts automatically, and you must select a bank relation for the transaction. Audit Payments (tfcmg1255m000) This session validates the payment batch. ERP LN checks and validates the following data: Whether the payable amount exceeds the maximum amounts per pay-to business partner and for free payments for which you are authorized in the Payment Authorizations (tfcmg1100m000) session. Whether all invoices have a valid payment method assigned Whether invoices from subcontractor business partners are paid from a blocked account The business partners bank account and address details The financial business partner groups The posting data of the intermediate steps defined for the payment methods The posting data for stand-alone, and cost standing orders payments The bank relation details ERP LN prints a report of the detected errors. After you solve the problems, run the Process Payments (tfcmg1240m000) session again. If the payable amount exceeds the maximum amounts for which you are authorized, you can make adjustments in the Payment Advice (tfcmg1501m000) session. Print Remittance Letters (tfcmg1270m000) If remittance letters are required for the payment method, the Print Remittance Letters (tfcmg1270m000) session starts automatically. The remittance letter contains details about the invoices and the individual payments. Related topics To assign bank relations Automatic or uninterrupted payment process To process purchase invoices |