The automatic payment procedure

To run the automatic payment procedure, use this sequence of sessions:

• Standing Orders (tfcmg1510m000)

  For payments for which no purchase invoice is available, you can create standing orders. For details, refer to Standing orders

• Select Invoices for Payment (tfcmg1220m000)

  Use this session to select the invoices which are due for payment in the open entries of the Accounts Payable module, as well as standing orders

  LN selects the purchase invoices and cost invoices for which these conditions are fulfilled:

  • The invoice is approved.
  • The Approved for Payment status is Yes or Not Applicable.
  • No hold reason is linked to the invoice.

  If you select the Select Non Approved Invoices for Payment check box in the CMG Parameters (tfcmg0100s000) session, unapproved invoices can also be selected. Conversely, if this check box is cleared, when the Select Invoices for Payment (tfcmg1220m000) session is run, only purchase invoices related to orders with a status of Approved is selected. Other parameters selected in the CMG Parameters (tfcmg0100s000) session can also have an effect on the invoice selection.

  LN searches for unassigned advance and unallocated payments and credit notes for the business partners, and automatically generates a report of the business partners for which such documents exist. Before you continue the payment process, you can assign the payments and credit notes to the open entries.

  Based on several selection criteria, a pro-forma payment batch is created which is processed for payment. You can settle sales invoices and credit notes with purchase invoices.

• Payment Advice (tfcmg1609m000)

  Review the selection of purchase invoices and standing orders, and make any adjustments.

  For example, you can make these changes:

  • Change the bank details, or the payment method.
  • Add a payment to the batch.
  • Delete individual payments.
  • Delete the entire payment batch.

  If unassigned advance and unallocated payments or credit notes exist for the business partner of the invoice, LN displays a warning. On the appropriate menu, you can click Unassigned Open Entries to display the available documents.

• Apply Payment Agreement (tfcmg1230m000)

  If you use payment agreements, you must apply the payment agreements before you can process the payment batch. For details, refer to Using payment agreements.

• Process Payments (tfcmg1240m000)

  Use this session to combine payments into a batch according to the values set up in the CMG Parameters (tfcmg0100s000) session. LN searches for a bank relation for each transaction as described in Assigning bank relations.

Related sessions

Depending on the values of the relevant parameters in the CMG Parameters (tfcmg0100s000) session, after you click Compose in the Process Payments (tfcmg1240m000) session, LN can start these sessions:

• Payment Advices (tfcmg1509m000) > Assign Banks to Payments (Manually) (tfcmg1251m000)

  If LN cannot automatically assign bank relations to the transactions, the Assign Banks to Payments (Manually) (tfcmg1251m000) or the Assign Banks to Direct Debits Manually (tfcmg4251s000) session starts automatically, and you must select a bank relation for the transaction.

• Audit Payments (tfcmg1255m000)

  This session validates the payment batch. LN checks and validates this data:

  • Whether the payable amount exceeds the maximum amounts per pay-to business partner and for free payments for which you are authorized in the Payment Authorizations (tfcmg1100m000) session.
  • Whether all invoices have a valid payment method assigned
  • Whether invoices from subcontractor business partners are paid from a blocked account
  • The business partners bank account and address details
  • The financial business partner groups
  • The posting data of the intermediate steps defined for the payment methods
  • The posting data for stand-alone, and cost standing orders payments
  • The bank relation details
  • The business partner’s IBAN if, in the Payment/Receipt Methods (tfcmg0540m000) session, the IBAN Account Required check box is selected. Then the BIC of the business partner's bank will also be audited assuming, in the XML Payment/Receipt Layouts (tfcmg0524m000) session, the tag representing the BIC is set to mandatory and selected.

  LN prints a report of the detected errors. After you solve the problems, run the Process Payments (tfcmg1240m000) session.

  If the payable amount exceeds the maximum amounts for which you are authorized, you can make adjustments in the Payment Advice (tfcmg1609m000) session.

• Print Remittance Letters (tfcmg1270m000)

  If remittance letters are required for the payment method, the Print Remittance Letters (tfcmg1270m000) session starts automatically. The remittance letter contains details about the invoices and the individual payments.