Payment/Receipt Method (tfcmg0140s000)

Use this session to maintain the payment/receipt method for an invoice.

On the Steps tab, you can select the steps LN must perform and create financial postings for.

Some steps are only available for trade notes payable (TNP), and some only for trade notes receivable (TNR). Of some steps, the availability depends on the selection of other steps. For some steps, you can indicate that the step is optional.

For every trade note, LN records the status of a trade note as it is created, accepted, sent to the bank, endorsed, matured, and so on. The trade note's status always indicates the last step performed on the trade note.

 

Payment/Receipt Method

The payment method code. The payment method is used to define the procedure/process for payment/receipt.

Details
Payment Details
Receipt/Payment

This field indicates whether the payment method refers to a Payment or to a Receipt.

Kind of Payment/Receipt

The type of payment or receipt of the payment/receipt method. The type of payment or receipt determines how LN will process the payment or the receipt.

Trade Note Type

If the Kind of Payment/Receipt is Trade Note, this is the trade note type which is defined in the Trade Note Types (tfcmg0516m000) session.

Allow Negative Payment for Credit notes

If this check box is selected, LN allows negative amounts in the payment files.

If the bank can handle payments of negative amounts, select this check box. For example, a payment amount can be negative if you select invoices and credit notes for the payment run and the sum total of the credit notes exceeds the sum total of the invoices.

Some banks offer the service to keep the negative payments in storage for a period of time and to counterbalance it with positive payments from the same customer to the same business partner. After the agreed retention period has expired, the bank transfers any remaining amount to their customer.

Maximum Amount

The company's reference currency.

Maximum Amount

Enter the maximum amount you can pay to a business partner using this payment method.

This amount is expressed in the reference currency.

If the payment amount exceeds this amount, LN uses the payment method you select in the Alt Payment/Receipt Method field.

To access this field, the payment method must be for automatic payments.

Alt Payment/Receipt Method

The alternative payment method is the payment method to be used when the amount to be paid exceeds the maximum amount entered in the Maximum Amount field.

Example

You select payment method B3. This payment method is reserved for payment orders. You enter 15,000 as the maximum amount and select C3 as the alternative payment method. For example, payments in excess of 15,000 are made by check. If an attempt is made to pay a supplier 16,000 by means of method B3, in the automatic payment procedure, LN automatically pays by C3 instead of B3.

The alternative payment methods must also be defined in this session.

Type of Payment

A code that indicates the type of payment.

The bank needs the type of payment indicator to handle the payment order correctly. You define a code for each type of payment in the Type of Payment (tfcmg0504m000) session.

Related topics

Direct Debit Procedure(Norma 19)

The type of direct debit procedure.

Allowed values

  • Not Applicable: Default value.
  • Direct Debit Line: The text entered in the Reference field of the Direct Debit Advice Lines (tfcmg4101m000) session, is included in the report when the Type of Advice field is set to Advance Receipt. If Type of Advice field is set to Sales Invoice, the document numbers are included in the report.
  • Composed Direct Debit Line: The text entered in the Reference field of the Composed Direct Debits (tfcmg4504s000) session must be included in the report.
Note

This field is enabled if the Receipt/Payment field is set to Receipt and the report group is Norma 19.

Related topics

Report Selection
Output Type

Select one of the output types.

If you select File, you must specify a path for the file in the Data by Bank/Payment Method (tfcmg0145s000) session.

Payment/Receipt Formatted by

If you select File, you can indicate that the payment file must be created by LN, or by an external system that can process the CreditTransferBOD.

XML File

If this check box is selected, you can enter an XML file layout code and path in the Data by Bank/Payment Method (tfcmg0145s000) session.

Note
  • Select this check box if you intend to use SEPA functionality.
  • If this check box is selected, the Report Group Payments/Receipts check box is unavailable.
Session to Create Payments/Receipts

Specify the session used to create documents and sequential files for receipts and payments.

To specify the applicable session, zoom to the Sessions for Payment/Receipt Method Reports (tfcmg0530m000) session.

Report Group Payments/Receipts

Use report groups to define the type of additional reports/ASCII files you must print while processing payments/direct debits. The bank files are generated when you process the payment batch in the Transfer Payments (tfcmg1260m000) session.

To specify the report group, zoom to the Payments/Receipts Reports (tfcmg0531m000) session.

If you select a report group that supports payment slips, you must specify a path for the file in the Data by Bank/Payment Method (tfcmg0145s000) session.

Related topics

Additional Report

Enter the additional report group to define the type of additional report or ASCII file you must print while processing payments or direct debits.

To specify the report group, zoom to the Payments/Receipts Reports (tfcmg0531m000) session.

Related topics

Hash Algorithm

The algorithm based on which the hash value is calculated and printed on the SEPA specification reports.

Note

This field is applicable only if the value in the Payment Details or the Additional Report field is set to 69-SEPA Payment Specification Report or 70-SEPA Accompanying Document.

Report Options
Default Report Device

If you selected Paper, enter the default printer number to print the payment document.

If you selected File, specify the type of file.

Device Mandatory

If this check box is selected, the path entered in the Default Report Device field cannot be changed.

This value is mandatory when you are printing to File.

Default Additional Report Device

The number of the default printer on which the payment report is printed.

Direct Debit Procedure

For German bank files, this is the direct debit procedure to be used.

If you select the Create German Bank Order (Debit) for Diskette (tfcmg4261s000) session in the Session to Create Payments/Receipts field as the session in which you want to create the bank file, you can select the type of direct debit method for which you use the receipt method.

The following direct debit methods are available:

  • Mandate
    The direct debiting mandate procedure (German: Abbuchungsverfahren). If this procedure is used, the payer cannot reclaim the money.
  • Preauthorized
    The preauthorized collection procedure (German: Einzugsermächtigungsverfahren). If this procedure is used, the payer can reclaim the paid money within a limited period of time.

The distinction is required to create German bank files in the Create German Bank Order (Debit) for Diskette (tfcmg4261s000) session. The default value is Mandate.

Payment Mode

Indicates how you transfer the payment file to the bank.

Different bank charges can apply to the payment methods. For details, refer to Payment Mode.

Foreign Payment Character

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Options
Document Composing
Composing Option

The method used to compose invoices or payment schedule lines on a payment document.

Composing Limit

The maximum number of invoices or the maximum number of characters in the combined references of the invoices that can be composed on a single payment document.

If you select Remittance in the Composing Option, this field is disabled.

Composing Action

The action LN takes if the number of invoices or the maximum number of characters in the combined references of the invoices found exceeds the composing limit.

Number by

The method for numbering the transactions of the payment document.

Related topics

Number of Documents

The maximum number of transactions that can be included in one payment document.

If you select Number of documents in the Number by field, you can enter a value.

Reason for Payment
Add Reason to Foreign Payments

To add a reason for the payment to the payment details in the bank file, select this check box.

For Nordic bank files, you must add a reason code and an additional reason description to the payment details if you make a payment in a foreign currency.

Related topics

Minimum Amount for Reason

To make payments greater than the amount indicated in this field, you must enter a reason for payment.

Payments less than the minimum amount do not need a reason.

Anticipated Payment/Receipt Steps
Step 1

If this check box is selected, the anticipated payment document has been received.

Step 2

If this check box is selected, the anticipated payment document has been accepted or sent.

Step 3

If this check box is selected, the anticipated receipt document is sent to the bank.

Posting Data Required

If this check box is selected, the posting data by bank/payment method must be maintained in the Data by Bank/Payment Method (tfcmg0145s000) session.

If this check box is cleared, you can process the payment documents without any posting.

If the Kind of Payment/Receipt is Trade Note, this check box is selected and disabled. To define and generate the posting scheme for trade notes payment/receipt methods, on the appropriate menu, click Generate Trade Note Posting Scheme.

Options
Bank Account Required

If this check box is selected, the business partner for which you use the payment method or receipt method must have a bank account.

You can define the bank accounts in the following sessions:

  • Bank Accounts by Pay-by Business Partner (tccom4515m000)
  • Bank Accounts by Pay-to Business Partner (tccom4525m000)

If this check box is selected, LN prints the bank account number on invoices and on the payment reports that you prepare in the following sessions:

  • Transfer Payments (tfcmg1260m000)
  • Create German Bankorder for diskette (tfcmg1261m000)
  • Process International Payment Data (Germany) (tfcmg1262m000)
Note

If this check box is selected, and a bank account is not present, you will receive an audit error in the Audit Payments (tfcmg1255m000) session.

IBAN Account Required

If this check box is selected, LN checks whether a creditor's or debtor's IBAN is available when a payment or direct debit advice is audited.

The audit is one of the first steps of the payment and direct debit process. If an IBAN is missing, a report is printed specifying for which creditor or debtor the IBAN is missing.

Bank Address Required

If this check box is selected, LN prints the business partner's bank address on invoices that you generate in Invoicing. The address must be defined in the Addresses (tccom4530m000) session.

If this check box is selected, and no address is present, this will result in an audit error in the Audit Payments (tfcmg1255m000) session.

Use Check Master

A function in which checks can be prenumbered. The prenumbered checks can be used later on in the payment process.

If this check box is selected, checks are available only for payment transactions.

The checks must be defined in the Check Master (tfcmg2115s000) session.

Planned Payment/Receipt Date is Due Date

If this check box is selected, the planned cash/debit date in the payment/direct debit advice is filled with the due date of the invoice.

This action affects the following sessions:

  • Direct Debit Advice Lines (tfcmg4101m000)
  • Select Invoices for Direct Debit (tfcmg4220m000)
  • Payment Advice (tfcmg1609m000)
  • Select Invoices for Payment (tfcmg1220m000)
Planned Payment/Receipt date is Trade Note Date

If this check box is selected, the planned cash/debit date in the payment/direct debit advice is filled with the payment date of the trade note.

This action affects the following sessions:

  • Direct Debit Advice Lines (tfcmg4101m000)
  • Select Invoices for Direct Debit (tfcmg4220m000)
  • Payment Advice (tfcmg1609m000)
  • Select Invoices for Payment (tfcmg1220m000)
Use Reason for Composing

If this check box is selected, reason for payment is also used as a composing criterion in the Compose Payments Manually (tfcmg1145s000) session.

Use IBAN Account

If this check box is selected, LN uses the bank's international bank account number for payments and direct debits.

If this check box is cleared, LN uses the business partner's bank account number for payments and direct debits.

You can define the international bank account number and/or the business partner's bank account number in the following sessions:

  • Bank Account by Pay-to Business Partner (tccom4125s000)
  • Bank Account by Pay-by Business Partner (tccom4115s000)
Print Remittance Letter (Italy)

If this check box is selected, for payments with this payment method, LN generates a remittance letter during the automatic payment procedure.

The remittance letter contains details about the invoices and the individual payments. The remittance letter is printed with the Print Remittance Letters (tfcmg1270m000) session. The layout of the remittance letter answers the Italian requirements.

Posting Data Required

If this check box is selected, the posting data by bank/payment method must be maintained in the Data by Bank/Payment Method (tfcmg0145s000) session.

If this check box is cleared, you can process the payment documents without any posting.

If the Kind of Payment/Receipt is Trade Note, this check box is selected and disabled. To define and generate the posting scheme for trade notes payment/receipt methods, on the appropriate menu, click Generate Trade Note Posting Scheme.

Use Invoice-from BP for Composing

If this check box is selected, LN enters the invoice-from business partner on the Payment Details tab of the Composed Payments (tfcmg1504s000) session.

Use Invoice Company for Composing

If this check box is selected, LN enters the invoice company on the Payment Details tab of the Composed Payments (tfcmg1504s000) session.

Direct Debit Mandate Required

If this check box is selected, a valid direct debit mandate must be linked to a direct debit advice.

Note

Direct debit mandates are maintained in the Direct Debit Mandate (tfcmg0127m000) session.

Currency/Country Opt
Options
Foreign Countries Allowed

If this check box is selected, the payment/receipt method can be used in combination with foreign bank accounts.

Foreign Currencies Allowed

If this check box is selected, you can process payment/receipt transactions in foreign currencies.

Currency

Select the currency that must be used with this payment method.

Note
  • Do not select the Foreign Currencies Allowed check box to enable this field.
  • When generating bank files, you cannot use the same file to send payments in different currencies.
  • You must define separate payment methods to generate the payments in, different currencies.
  • This payment method can only be used to do payments with the specified currency.

For example, create one payment method to generate payments in British pounds, and another for transactions in euro.

Euro-Related Payment Method

If the invoice currency is an EMU currency, you can select a payment method that uses euros.

The euro-related payment method is then used instead of the payment method defined for the invoice.

Note

This field is available if the currency specified in the Currency field is an EMU currency.

Discounts and Rejections
Discount Percentage

The discount percentage specified for the total sales invoice.

Note

This field is enabled only if the Receipt/Payment field is set to Receipt.

Alt. Receipt Method for Rejection

The code of an alternate receipt method used for the invoices rejected during reconciliation.

Note

This field is enabled only if the Receipt/Payment field is set to Receipt.

Steps
Steps
Document Received

If this check box is selected, the step must be completed before LN can process the next step.

Document Issued

If this check box is selected, the step must be completed before LN can process the next step.

Document sent to Business Partner

If this check box is selected, the step must be completed before LN can process the next step.

Document Accepted/Sent

If this check box is selected, the step must be completed before LN can process the next step.

Document sent to bank

If this check box is selected,

Document Void

If this check box is selected, the step must be completed for the trade note before you can process the next step.

Document Sent to Bank for Discounting

If this check box is selected, the step can be completed for the trade note.

Document Discounted

If this check box is selected, the step must be completed for the trade note before you can process the next step.

Document Endorsed

If this check box is selected, the step can be completed for the trade note.

Document Collateral

If this check box is selected, the step can be completed for the trade note.

Document Matured

If this check box is selected, the step can be completed for the trade note.

Posting Steps
Posting required for Document Sent to BP

If this check box is selected, LN creates financial postings when the Document sent to Business Partner step is completed for the trade note.

Posting required for Document Matured

If this check box is selected, LN creates financial postings when the Document Matured step is completed for the trade note.

Reopen Invoice on Dishonoring

If this check box is selected, LN reopens invoices for trade notes that were rejected.

Update Anticipated Balance on First Step

If this check box is selected, LN updates the BP invoice balances with anticipated receipts after completing step 1.

Update Anticipated Balance upon Reconciliation

If this check box is selected, LN updates the BP invoice balances with anticipated receipts after the receipt file is reconciled.

Note

This option is only available if Document Accepted/Sent or Document Sent to Bank is selected.

Optional steps
Document Sent to BP is optional

If this check box is selected, this step is optional.

Document Accepted by BP is optional

If this check box is selected, this step is optional.

Document Matured is optional

If this check box is selected, this step is optional.

Doc. Sent to bank for Disc. - Optional

If this check box is selected, this step is optional.

 

Generate Trade Note Posting Scheme

For a trade note type for which the Posting Scheme by BP Group check box is selected in the Trade Note Types (tfcmg0516m000) session, this command generates the posting scheme for the payment/receipt method according to the predefined scheme.