Standing ordersYou can create standing orders for payments not linked to a purchase invoice, such as cost transactions or advance payments. For example, you can use a standing order to pay rent or vehicle leasing costs every period, without receiving an invoice or if you receive the invoice after the payment due date. You can create these types of standing orders:
Note A standing order for a single payment is similar to a stand-alone payment, which you can create in the Payment Advice (tfcmg1609m000) session. Standing orders are created and processed in Cash Management. If you want to create an open entry for the periodic payment in Accounts Payable, you must create a recurring purchase invoice rather than a standing order. Posting data of standing orders The posting method of a standing order can be Advance Payment or Costs. For advance payments, LN derives the ledger accounts and dimensions from the financial business partner group of the invoice-from business partner. LN determines the ledger account from the financial business partner group based on the advance payment category. To allow advance payment category, you must select the Allow Advance Payment Category check box in the CMG Parameters (tfcmg0100s000) session. In Germany, you must legally make distinction between advance payments made under these categories. You can select the advance payment category in the Standing Orders (tfcmg1510m000) and Payment Advice Lines (tfcmg1101m000) sessions. If you manually create a standing order for costs, you must supply the posting data such as the ledger account and dimensions, the cash flow reason, and the tax code and tax country. For generated standing orders of the Costs type, for example, to pay tax, LN derives the ledger accounts and dimensions from the setup details. Creating a standing order To manually create a standing order:
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