| Using payment agreementsInvoicing and payments in Japan To set up paying your suppliers in accordance with Japanese
business practice, you can set up Payment agreements. Payment agreements are often used if you receive a monthly billing invoice from your supplier. To setup up payment agreements To set up payment agreements, use the following sequence of
sessions: Group Company Parameters (tfgld0101s000) Select the Payment Agreement check box. Define the payment agreements. Because multiple financial
companies can share the payment agreements, you must define the amounts in the
reference currency. Invoice-from Business Partner (tccom4122s000) If you have a payment agreement with a supplier, select the
payment agreement. LN adds the payment agreement by default to purchase order lines for the business
partner. Payment Agreement by Item (Group) and Invoice-from BP (Group) (tcmcs2108m000) (Optional) If you prefer, you can select specific payment agreements for
combinations of invoice-from business partner and item or item group, or
financial business partner group and item or item group. Priorities to Set Default Payment Agreement (tcmcs2109m000) (Optional) If you used the Payment Agreement by Item (Group) and Invoice-from BP (Group) (tcmcs2108m000) session,
you can use this session to define the order of priorities that LN uses to determine
the default payment agreement for a purchase order line.
Note LN searches for the most specific payment agreement. If no specific payment
agreement is found for the invoice-from business partner or business partner
group and item or item group combination, LN uses the default
payment agreement that you specified in the Invoice-from Business Partner (tccom4122s000) session. Applying payment agreements If the Payment Agreement check box is selected in the Group Company Parameters (tfgld0101s000) session and payment agreements exist for at
least one of the payments in a payment batch, you must apply the payment
agreement before you can process the payment batch or generate trade notes payable (TNP). To apply payment agreements to payments that you make, use the
following sequence of sessions: Payment Advices (tfcmg1509m000) or Payment Advice (tfcmg1609m000) From the Actions menu, select Apply Payment Agreement. The Apply Payment Agreement (tfcmg1230m000) session starts. Apply Payment Agreement (tfcmg1230m000) Apply the payment agreements to the payments in the
batch.
If you apply the payment agreement, LN performs the
following actions: Calculate the total invoice amount. The following details must be the same for all the
invoices: - The invoice-from business partner
- The invoice currency
- The payment agreement
Compare the total invoice amount with the payment agreement
limit. - If the total invoice amount is less than or equal to the
payment agreement limit, use the payment agreement.
- If the total invoice amount exceeds the payment agreement
limit, use the next payment agreement.
- Repeat this step as necessary to find the payment agreement
to be used.
Split the payable amount according to the payment agreement
definition. Generate the payment lines. Create separate batches for payment
lines with different payment methods.
Because the payment agreements are defined in the reference
currency, the payment agreements are applied to the invoice amounts in the
reference currency. Note If you use the uninterrupted payment process, LN automatically
applies the payment agreements. Payment advises that contain an invalid payment
agreement are moved to the newly created exception batch. For details, refer to Automatic or uninterrupted payment process If you use self-billing, in the Generate Self-Billing Purchase Invoices (tfacp2290m000) session and the Generate Internal Freight Invoices (tfacp2246m000) session the following rules apply: - If all the selected lines have the same payment agreement, LN uses the payment
agreement for the invoice.
- If the selected lines have various payment agreements, LN uses the payment
agreement you defined for the business partner in the Invoice-from Business Partner (tccom4122s000) session.
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