To set up and process trade notes payable

To set up the handling of trade notes payable, use the following sequence of sessions:

  1. CMG Parameters (tfcmg0100s000)

    On the Trade Notes tab, enter the following data:

    • Select the Trade Note to be implemented check box.
    • Define the minimum amount for which trade notes can be generated, and the number groups to be used for generated and manually entered trade notes payable and trade notes receivable.
    • If you want to generate a report of the trade note balances by business partner by department, select the Financial Department for Trade Notes check box.
  2. Pay-to Business Partners (tccom4124s000)
    On the Paying tab, enter the data required for processing the trade notes. In the Department field you can enter the default accounting department for which the business partner's trade notes must be registered. If you also select the Financial Department for Trade Notes check box in the CMG Parameters (tfcmg0100s000) session, you can generate a report of the trade note balances by business partner by department. Note: If you have not selected the Trade Note to be implemented check box in the CMG Parameters (tfcmg0100s000) session in Step 1, the Trade Notes information fields are not visible.
  3. Trade Note Division by Pay-to BP (tfcmg0518m000)
    If you want to split trade notes payable into trade notes for smaller amounts, enter the division data. Refer to Trade notes division for details.
  4. Trade Note Parameters (tfcmg0512m000)
    For each trade note step, define the trade note parameters.
  5. Trade Note Types (tfcmg0516m000)

    Define the series and some further characteristics for the trade notes of a specific payment method. Additionally, in this session you must indicate whether the trade note posting scheme is defined by business partner group or by payment method.

    In some countries, the trade note number must contain the company's tax number and the last two digits of the year. If the number of digits of the series number is not sufficient for the required information, you can manually enter the actual trade note number in the Trade Note Payable (tfcmg1125s000) session.

  6. Payment/Receipt Method (tfcmg0140s000)
    Define the payment methods for trade notes payable.
    • In the Kind of Payment/Receipt list box, select Trade Note.
    • On the Steps tab, select the mandatory and optional steps for the trade notes of this payment method or receipt method.
    • On the appropriate menu, click Trade Note Posting Data to start the Trade Note Posting Data by Payment/Receipt Method (tfcmg0514m000) session.
  7. Trade Note Posting Data by Payment/Receipt Method (tfcmg0514m000)
    Define and generate the posting data for trade notes. If you cleared the Posting Scheme by BP Group check box for the trade note type in the Trade Note Types (tfcmg0516m000) session, you must enter the ledger accounts and dimensions for trade notes steps for which posting is mandatory. For each step, you must define posting data for the debit entry and for the credit entry.
  8. Payment/Receipt Method (tfcmg0140s000)
    If you selected a trade note type for the payment/receipt method for which the Posting Scheme by BP Group check box is selected, on the appropriate menu of the Payment/Receipt Method (tfcmg0140s000) details session, you can click Generate Trade Note Posting Scheme to generate the posting scheme for the payment/receipt method according to the predefined scheme.
  9. Trade Note Reports by Payment/Receipt Method per step (tfcmg0515m000)
    Define the reports and bank file layouts and output devices for each trade note step. For some steps, you can indicate that reports/files are mandatory.
  10. Reasons (tcmcs0105m000)
    You can define the reason codes to indicate why a trade note was canceled.
  11. If you must pay stamp tax on trade notes, you can set up stamp tax as described in To set up stamp tax.
To process trade notes payable

To process trade notes payable, use the following sessions:

  1. Payment Advice (tfcmg1609m000)
    Create a new payment advice batch. Set the Type of Advice field and specify the invoice number in the Document field, the amounts details are defaulted. In the Payment /Bank Details tab, select the Payment method.
  2. Generate Trade Notes Payable (tfcmg1225m000)
    Specify the batch number created in the Payment Advice (tfcmg1609m000) session and select Generate to generate the trade note payable.
  3. Trade Notes Payable (tfcmg1525m000)
    Review the trade note payable number generated in the TNP Number field and the TNP Status is set to Open. Select Post TNP on the appropriate menu, to create posting for the first trade note step. The Posting Data (tfcmg1258m000) session opens.
  4. Posting Data (tfcmg1258m000)
    Select Post to create posting for the trade note step. In the Trade Notes Payable (tfcmg1525m000) session, the TNP Status is updated with the status Issued.
  5. Process Trade Notes Payable (tfcmg1226m000)
    Select payment method and set the next trade note step in the Next Step field and select Process to process the trade notes.
  6. Selected Trade Notes Payable for Processing (tfcmg1526m000)
    Use this session to view and select trade notes payable for processing. Select the Update Status check box and on the appropriate menu, select the Process to process the trade note payable selected.
  7. Posting Data (tfcmg1258m000)
    If the postings are not generated earlier, select Post to create posting for the trade note step. In the Trade Notes Payable (tfcmg1525m000) session, the TNP Status is updated with the status Issued.
  8. Repeat the above steps until the TNP Status in the Trade Notes Payable (tfcmg1525m000) is set to Paid.
  9. Remove Settled Trade Notes Payable (tfcmg1225m001)
    Select Remove to remove the selected range of trade notes. The trade notes with the TNP Status set to Paid, Cancelled, Dishonored, or Void are removed and also the documents linked to these trade notes are removed.