Accounts Payable

Financial business partner groups are used to establish the link between the accounts payable and accounts receivable. These groups are also used to establish a link to the General Ledger. For each business partner group, you must define a set of ledger accounts and dimensions to which transactions are posted.

Business practices in Japan, Spain, Italy, and other countries require that different types of receivables and payables are posted to different control accounts. You can use multiple control accounts for financial business partner groups to post real trade transactions and other purchase or sales-related transactions to different control accounts.

You can use the receipts against shipments functionality to generate or enter payment transactions and receipt transactions in Cash Management based on shipment or order information and to maintain the balances by shipment or order.

Trade notes are legally accepted forms of payment such as bank drafts, checks, promissory notes, and bills of exchange. Trade notes can be used instead of cash payments. As trade notes are negotiable they can also be used as a credit instrument, for example, for discounting and endorsing. Trade notes can exist on paper and on magnetic supports, according to local business practices and banking standards.

LN supports factoring of your outstanding receivables and payment of purchase invoices to factors used by your suppliers.

Automatic matching functionality allows users to match purchase invoices to purchase orders or freight orders. Additionally, users can manually match to purchase order, receipt, landed costs, freight orders, or consumption. Multicompany invoice matching is also possible, whereby one company processes purchase invoices for the group company.

For each purchase order header, you can define whether to use self billing.

A payment schedule defines agreements about the amounts to be paid by payment period. You can link a payment schedule to the payment terms. Each line of the payment schedule defines a part of the invoice amount that must be paid within a specific period, the payment method used for the payment, and the discount conditions that apply to the payment.

In Accounts Payable, in addition to approving the invoices for processing, you can separately approve purchase invoices and costs invoices for payment. Audit information regarding approval of invoices is stored.

Price differences occur if the invoice amount differs from the order amount or the receipt amount. LN detects the price differences when the invoice is matched to the purchase orders or to the receipts.

To improve the write off currency difference functionality, the print currency analysis session is extended to print the report by business partner group. Two reports are now created, one Detailed Currency Difference for business partner groups and one without the grouping the business partners. This results in a better currency difference analysis by which balances of invoices can be reevaluated at end of the period.

You can now generate intercompany trade invoices for the selected range of purchase invoices.

In the Czech and Slovak Republic, the companies need to create payment files which can be processed by banks. In these bank files, it is required to report the regular information such as business partner, bank number, currency and amount. Also the following information needs to be reported:

According to the accounting principles in the Czech and Slovak Republic, companies are required to keep the books of accounts using a predefined chart of accounts. In this predefined chart of accounts some ranges of ledger accounts are distinguished based on ‘Type of Purchase’, such as Raw Material, Goods, and Services. It is therefore required to enable the customers in the Czech- and Slovak Republic to map the invoices receipt account to the appropriate ledger accounts according to the type of purchase.