Default amounts for bank transactions

When you enter a payment in the Bank Transactions (tfcmg2500m000) session, LN determines the following default amounts based on the data recorded for the invoice to which the payment is related:

The amount payable, if the payment concerns a purchase invoice
The amount receivable, if the payment concerns a sales invoice
The discount amount
The late-payment surcharge amount

The existence of a payment/receipt schedule for an invoice affects the way default amounts are calculated. However, default discount amounts and late payment surcharge amounts are calculated based on different data. The default tolerated payment difference can also be calculated.

Related topics

Payment/receipt schedule
Discount/late payment surcharge
Tolerated payment differences

Payment/receipt schedule

You can link a payment/receipt schedule to an invoice when you register an invoice in one of these sessions:

Sales Invoices (tfacr1110s000)
Purchase Invoice Entry (tfacp2600m000)

To link a payment/receipt schedule to an invoice, choose the corresponding command on the appropriate menu. A payment/receipt schedule is defined for one invoice in one of these sessions:

Receipt Schedule (tfacr1103m000)
Payment Schedule (tfacp1103m000)

If a payment/receipt schedule is present for the invoice for which you are creating a payment, LN determines the default amount payable on the basis of the payment date or receipt date.

Example

The total amount payable on a purchase invoice is USD 1,200.

Payment schedule:

Amount	Payment due date
USD 700	2017-02-15
USD 300	2017-03-01
USD 200	2017-03-15

If the first payment is made on 2017-02-18, the displayed default amount payable is USD 700.

If the first payment is made on 2017-03-04, the displayed default amount payable is USD 1,000 (700 + 300).

If the first payment is made on 2017-02-10, the displayed default amount payable is USD 700. If no payable amounts are found before the creation date of the payment, LN enters the amount specified for the next payment date. Therefore, the payment date 2017-02-10 results in a default amount of USD 700.

Discount/late payment surcharge

When no payment/receipt schedule is present for the invoice for which you are creating a payment, LN determines the default amount payable/receivable based on:

The payment/receipt document date.
The open invoice amount.
The discount dates recorded for the invoice.

The LPS/Discount for Partial Payments parameter in the CMG Parameters (tfcmg0100s000) session determines how discounts on partial payments are calculated. If this parameter is set to None, no default discount amounts are given.

If the LPS/Discount for Partial Payments parameter is set to Proportionally, the default discount amount is calculated as shown in the following example:

Example 1

The payable purchase invoice amount is USD 100. The allowed discount amount is USD 8.

The default amounts of the first payment will be: Amount paid = USD 92. The discount calculated = USD 8.

If the partial amount payable is USD 20, the default discount is USD 1.74 (20 * 100/92 * 8/100).

The default amount of the second payment will then be: Amount payable = USD 72.

Default discount: 72 * 100/92 * 8/100 = USD 6.26

If the LPS/Discount for Partial Payments parameter is set to Fully, the default discount amount is calculated as shown in the following example:

Example 2

The payable purchase invoice amount is USD 1,000. The following discount data exist for this invoice:

Discount amount 1:	20	Discount date:	2017-01-01
Discount amount 2:	15	Discount date:	2017-02-01
Discount amount 3:	5	Discount date:	2017-03-01

The paid amount entered for the first payment is USD 800, and the discount amount is USD 18.

The next partial payment of USD 200 is made on 2017-01-15. The default discount amount is zero. Based on the payment's document date, LN determines the discount allowed at that time: USD 15. If this amount is smaller than the discount that was already taken at the first payment (which was USD 18), the default value given is zero.

Note

The default amount payable is first calculated in the invoice currency. If the receipt/payment currency is not equal to the invoice currency, the amount is calculated in the invoice currency based on the currency exchange rates of both currencies. If the invoice currency has a fixed exchange rate, this rate is used.

Tolerated payment differences

The allowed payment difference tolerances depend on the payment difference limits defined for specific users in the Payment Authorizations (tfcmg1100m000) session or as default values in the CMG Parameters (tfcmg0100s000) session.

LN determines the default tolerated payment difference for an invoice based on:

The open amount.
The invoice amount.
The defined payment difference tolerances.

Example 1

The amount on the invoice is USD 1,000. The following tolerances are defined for payment differences:

Percentage of invoice lower than expected:	10%
Invoice amount lower than expected:	50 (in reference currency)

The default payment difference is 50.

The default payment difference must meet both conditions. In this case, the first condition dictates that the payment difference must be less than 100 (10% * 1,000 = 100). However, the second condition dictates that the payment difference must be less than 50. Therefore, the default payment difference is 50.

Example 2

The amount on the invoice is USD 1,000. The following tolerances are defined for payment differences:

Percentage of invoice lower than expected:	3%
Invoice amount lower than expected:	50

The default payment difference is 30 (3%*1,000).

Note

If the payment difference for an actual payment is greater than the allowed default payment difference, the displayed default payment difference shown is zero.