Payment procedure

To process payments manually, use these sessions:

• Payment/Receipt Methods (tfcmg0540m000)

  You must set up payment methods. You can link a payment method to an invoice to determine how the invoice is paid.

• Bank Relations (tfcmg0510m000)

  You must set up bank relations. A bank relation is required to process the payments to and from your business partners.

• Data by Bank/Payment Methods (tfcmg0545m000)

  You can use this session to define the combinations of a payment method and a bank relation. These combinations determine how payments with a certain bank are processed in the financial records. You must also define the ledger accounts. In addition, a payment method is linked to each purchase invoice.

• Select Invoices for Payment (tfcmg1220m000)

  You can use the automatic selection program in this session to select purchase invoices that are due for payment. Several options are available to select purchase invoices that are due from the open entries in the Accounts Payable module.

• Payment Advice (tfcmg1609m000)

  A payment advice list is generated that must be audited. You can make changes before the final payment procedure starts.

• Process Payments (tfcmg1240m000)

  • In the final procedure, separate payment lines are created by supplier for purchase invoices that are due.
  • Priorities regarding payments are also assigned to banks. If any errors occur, LN prints an error list that indicates the action to be taken.
  • After you enter the data, LN either prints bank orders or checks or creates an electronic bank file.
  • Anticipated payments are posted to the general ledger accounts as specified by the combination of a payment method and a bank relation. In addition, the open entries in the Accounts Payable module are updated.
  • Anticipated payments are sent to the bank to be deducted. You will receive a bank statement after the payments are processed by the bank.

• Transactions (tfgld1101m000)

  You can use this session to update the data in LN with the information on the bank statements in the Reconciliation of Anticipated Payments/Receipts (tfcmg2102s000) session.

• Bank Transactions (tfcmg2500m000)

  You can use this session to process the bank transactions.

• Reconciliation of Anticipated Payments/Receipts (tfcmg2102s000)

  You can reconcile the anticipated documents that are processed by the bank. The reconciliation is processed with the transaction type set to Cash. LN reverses previous postings that were processed when the payments were carried out. The bank balance that appears in a general ledger account is reduced. In addition, the open entries in the Accounts Payable module are updated and the invoices are paid. Both the cash document that is linked to purchase invoices and the open balance amounts in the invoices are set to zero.

• Finalization Run Numbers (tfgld1519m000)

  You can use this session to finalize the financial transactions. The ledger history and the dimension history are then closed.