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, and automatic payments/direct debits.

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 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 in Germany 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 LN must generate for diskette payments or electronic payments.
  • Output Type and Device for Payments/Receipts
    The way in which you transfer the payment file to the bank.
  • Steps
    The steps that LN must perform for the payment document or the receipt document. For each step, 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.
  • 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.
Intermediate steps

A payment can go through several stages before the total procedure is completed.

Payment steps

  • For payments, these 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, these steps are available:

  • 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, LN generates anticipated payments or anticipated receipts or you can create these manually. For some intermediate steps, you must change the status manually by using these 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, 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, LN posts the amounts to these 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 these sessions:

    • Data by Bank/Payment Method (tfcmg0145s000)
    • Posting Data by Bank/Payment Method (tfcmg0146s000)
    • Trade Note Posting Data by Payment/Receipt Method (tfcmg0514m000)

LN creates financial postings for these transactions:

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