Payment process

Depending on the parameter settings in the CMG Parameters (tfcmg0100s000) session, only authorized users can select invoices for payment and process a payment batch in Cash Management.

For details, refer to Payment authorization in Cash Management – setup.

In the CMG Parameters (tfcmg0100s000) session, you can indicate whether authorized users must approve a payment batch for processing. If you select the Payment Batch Approval and the Direct Debit Batch Approval check boxes, only authorized users can process a payment batch. In the Payment Authorizations (tfcmg1100m000) session, you can define authorized users.

You can use the following automatic payment processes:

• The automatic payment procedure

  After selection of the invoices, you can verify the results and make adjustments. For example, you can review and change the selected invoices, and you can assign advance payments, unallocated payments, or credit notes to the open entries before you make the payments. For details, refer to The automatic payment procedure

• The uninterrupted payment process

  After selection of the invoices, LN carries out the payment process as an uninterrupted payment run. This enables you to run the payment process as a batch job at night. This process does not search for advance and unallocated payments, or credit notes. For details, refer to Automatic or uninterrupted payment process.

Search for advance and unallocated payments and credit notes

If you select open entries for payment, LN searches for advance and unallocated payments or credit notes, that you can apply to the open entry. LN displays a warning or generates a report of the business partners for which such documents exist. You can display the available advance payments, unallocated payments, or credit notes for the business partner and assign them to the open entries.

Multi financial company payment

In a multi financial company structure, LN searches all the financial companies of the group company.

In the CMG Parameters (tfcmg0100s000) session, you must set these parameters:

• Payments by Company Group

  If this check box is selected, the group company will make all the payments on behalf of the individual company.

  Example

  • Company A, B, and C belong to a group company D.
  • If this check box is cleared, payments can be created, either separately for company A, B, and C, or for company D.
  • If this check box is selected, payments can be made only by the group company D on behalf of company A, B, and C.
  • Group companies are defined in the Finance Company Parameters (tfgld0503m000) session.

• Multi-Company Selection of Invoices for Payment

  If this parameter is set to Select Invoices or Both, you can select invoices from other companies for payment, provided for the other company the following parameters are set as below:

  • The Payments by Company Group check box is cleared.
  • The Multi-Company Selection of Invoices for Payment parameter is set to Own Invoices Selectable or Both.