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:

  1. Payment Advices (tfcmg1509m000) or Payment Advice (tfcmg1609m000)
    From the Actions menu, select Apply Payment Agreement. The Apply Payment Agreement (tfcmg1230m000) session starts.
  2. 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:

  1. 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
  2. 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.
  3. 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.

If you use self-billing, in the Generate Self-Billing Purchase Invoices (tfacp2290m000) 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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