Bank distribution

You can use several bank relations and you can agree on different terms and conditions separately with each bank.

For example, you can agree the following conditions:

  • The minimum document amount
  • The maximum document amount
  • The maximum amount per payment/receipt batch
  • The maximum number of composed lines in a batch
  • The bank charges for various services, for example, for handling foreign currencies

Which bank you want to use for a transaction can depend on the terms and conditions, the bank charges, and the transaction currency.

Infor LN FP2

In Infor LN FP2, for automatic payments and receipts, LN selects a bank relation from the pay-to and pay-by business partner details, from your bank relations in their order of priority, or from the CMG Parameters (tfcmg0100s000) session. LN searches for a bank relation of which the bank currency is equal to the transaction currency and of which the home country is equal to the business partner's home country.

Infor LN FP2 does not support selection of a bank based on conditions such as the maximum transaction amount and the number of documents in the batch.

Infor LN FP3

In Infor LN FP3, you can set up the bank distribution logic to select the bank that is most appropriate for a batch, based on the agreed conditions. You can set up the conditions and a priority for each bank.

In Infor LN FP3, during the automatic payment procedure and receipt procedure, LN automatically selects the appropriate bank for each batch. If you do not specify a default bank relation for transactions with the pay-to and pay-by business partner, LN searches for a bank relation using the bank distribution logic.

To support bank distribution, the following changes were made:

  • Payment/Receipt Methods (tfcmg0540m000)

    On the appropriate menu, the following commands were added:

    • Bank Priorities by Payment Method and Currency

      Starts the new Bank Priorities by Payment Method and Currency (tfcmg0121m000) session. Use this session to define the priorities of bank relations for the combination of payment method or receipt method and bank currency in the bank assignment process.

    • Assignment Criteria by Payment Method and Bank Relation

      Starts the new Assignment Criteria by Payment Method and Bank Relation (tfcmg0122m000) session. Use this session to define the criteria LN uses to assign bank relations to a batch based on criteria such as the maximum transaction amount and the number of documents in the batch.

      If the batch meets the assignment criteria of several bank relations, LN assigns the bank relations in their order of priority defined in the Bank Priorities by Payment Method and Currency session.

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