Examples of payment agreements

Payment agreements PA1, PA2, and PA3 are defined as follows:

For invoice-from business partner BP1 you have open entries ACR1 and ACR2.

Applying the payment agreements results in these payment advices:

The payment agreement on the invoices is PA1

PA1 limit = 100,000

The total invoice amount is 20,000 + 30,000 = 50,000. This amount is less than the PA1 limit. Consequently, PA1 is used.

30 percent of the amount (= 15,000) is paid using payment method PM1. This covers the first 15,000 of invoice ACR1.

The remaining 70 percent (= 35,000) is paid using payment method PM2. This covers the remaining 5,000 of invoice ACR1 plus the full amount of 30,000 of invoice ACR2.

For invoice-from business partner BP2 you have open entries ACR3 and ACR4.

This results in these payment advices:

The payment agreement on the invoices is PA1

PA1 limit = 100,000. The next payment agreement is PA2.

The total invoice amount is 110,000 + 40,000 = 150,000. This amount exceeds the PA1 limit. Consequently, PA2 is used.

50,000 is paid using payment method PM3. This covers the first 50,000 of invoice ACR3.

50,000 is paid using payment method PM4. This covers the next 50,000 of invoice ACR3.

The total remaining amount is 150,000 - ( 2 * 50,000) = 50,000.

Of the remaining amount, 40 percent (= 20,000) is paid using payment method PM1. This covers the remaining 10,000 of invoice ACR3 plus the first 10,000 of invoice ACR4.

The remaining 60 percent of 50,000 (= 30,000) is paid using payment method PM2. This covers the remaining 30,000 of invoice ACR4.

For invoice-from business partner BP3 you have open entries ACR5, ACR6, and ACR7. Note that the invoice currency of ACR7 differs from the other invoice currencies, and therefore a different payment agreement must be used.

This results in these payment advices:

The payment agreement on invoices ACR5 and ACR6 is PA1. The payment agreement on invoice ACR7 is PA3.

PA1 limit = 100,000

The total invoice amount for the JPY currency is 3,000 + 2,000 + 5,000 = 10,000. This amount is less than the PA1 limit. Consequently, PA1 is used for the invoices ACR5 and ACR6.

30 percent of the amount (= 3,000) is paid using payment method PM1. This covers the first 3,000 of invoice ACR5.

The remaining 70 percent (= 7,000) is paid using payment method PM2. This covers the remaining 2,000 of invoice ACR5 plus the full amount of 5,000 of invoice ACR6.

The payment agreement on invoice ACP7 = PA3.

PA3 limit = 30,000

The total invoice amount of invoice ACR7 is 20,000. This amount is less than the PA3 limit. Consequently, PA3 is used.

40 percent of the amount (= 8,000) is paid using payment method PM5. This covers the first 8,000 of invoice ACR7.

The remaining 60 percent (= 12,000) is paid using payment method PM6. This covers the remaining 12,000 of invoice ACR7.