To set up and process trade notes receivable

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

  1. CMG Parameters (tfcmg0100s000)

    On the Trade Notes tab, enter the following data:

    • Select the Trade Notes 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 Accounting Office for Trade Notes check box.
  2. Pay-by Business Partner (tccom4114s000)
    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 Accounting Office 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 did not select the Trade Notes 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-by BP (tfcmg0517m000)
    If you want to split trade notes receivable 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 transaction type and number series for each step. For the step Document Discounted, you must also define the discount and commission amounts and accounts.
  5. Trade Note Types (tfcmg0516m000)

    Define the series and terms of payment. Select Stamp Tax Country/Code, if applicable. Additionally, select Replace Invoice by Trade Note check box to replace invoice with the trade note and select Posting Scheme by BP Group to indicate that the posting scheme is defined by business partner group is applicable for the trade note.

  6. Payment/Receipt Method (tfcmg0140s000)
    Define the receipt methods for trade notes receivable.
    • In the Kind of Payment/Receipt list box, select Trade Note. Select the trade note type defined in the previous step.
    • On the Steps tab, select the mandatory and optional trade note steps for the receipt method.
    • On the appropriate menu, select Generate Trade Note Posting Scheme to generate the posting data for the receipt method according to the predefined scheme, else 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 the selected receipt method.
  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 receivable

To process trade notes receivable, use the following sessions:

  1. Direct Debit Advice (tfcmg4609m000)
    Create a new direct debit batch in the Direct Debit Advices (tfcmg4509m000) session, which initiates the Direct Debit Advice (tfcmg4609m000) session. Set the Type of Advice field and specify the invoice number in the Document field. The amounts details are defaulted. On the Bank Details tab of the Direct Debit Advice Lines (tfcmg4101m000) (satellite) session, select the payment /receipt method. Save changes and approve the batch.
  2. Generate Trade Notes Receivable (tfcmg4225m000)
    Specify the batch number created in the Direct Debit Advice (tfcmg4609m000) session and click Generate to generate the trade note receivable.
  3. Trade Notes Receivable (tfcmg4525m000)
    Review the trade note receivable number generated in the TNR Number field and the TNR Status is set to Open. Select Post TNR 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 Receivable (tfcmg4525m000) session, the TNR Status is updated with the status Received.
  5. Process Trade Notes Receivable (tfcmg4226m000)
    Select receipt method and set the Old Step (the step which is already processed) and the next trade note step in the Next Step field and select Process to process the trade notes.
  6. Selected Trade Notes Receivable for Processing (tfcmg4526m000)
    Review the trade notes receivables ready for processing. Select the Update Status check box and on the appropriate menu, select Process to process the trade note receivable selected.
  7. Posting Data (tfcmg1258m000)
    Click Post to create postings for the trade note step executed. In the Trade Notes Receivable (tfcmg4525m000) session, the TNR Status is updated with the current status selected. For example, the status changes to Sent to Bank for Discounting.
  8. Repeat the above 5th, 6th and 7th steps until the TNR Status in the Trade Notes Receivable (tfcmg4525m000) is set to Settled.
  9. Remove Settled Trade Notes Receivable (tfcmg4225m001)
    Select Remove to remove the selected range of trade notes. The trade notes with the TNR Status set to Settled, Cancelled, Dishonored, or Void are removed and also the documents linked to these trade notes are removed.