Cash Management

Payment and receipt methods

Several methods are available to pay open purchase invoices and to collect the payments on open sales invoices. For example, you can use bank transfers, checks, trade notes, payment slips, and automatic payments/ direct debits.

Bank distribution

You can use several bank relations and agree on different terms and conditions separately with each bank.

Electronic bank statements

Some banks provide bank statements in electronic form, on disk, tape, or provide statements over the Internet or by modem. This electronic bank statement can be imported to enable automatic processing of bank transactions, including reversal documents. Bank statement lines and open entries can be matched automatically.

Evaluated receipt settlement (ERS)

You can initiate payments based on the deliveries done by the supplier. The payments to be made are recorded in advance in a remittance advice EDI message and are sent to the supplier who will subsequently be able to reconcile the relevant open entries.

Standing orders

You can create standing orders for payments not linked to a purchase invoice, such as cost transactions or advance payments. For example, you can use a standing order to pay rent or vehicle leasing costs every period, without receiving an invoice or if you receive the invoice after the payment due date.

Payment authorization in Cash Management – setup

In Cash Management, you can set up this authorization data for a user:

Maximum amounts which the user can pay to a pay-to business partner.
Maximum amounts or full authorization for non-invoice related free payments such as advance and unallocated payments, standing orders and cash transactions.
Maximum amounts or full authorization for bank cost amounts.
Maximum positive and negative amounts per invoice for which the user can create payment difference transactions.
The kind of user for payments and direct debits.
Authorizations to approve payment batches created by the same user or the batches created by others.
The maximum amount that can be approved by the user for a payment batch.
Default tolerances for payment differences for payment batches and direct debit batches by an authorized user.

Cash forecast

You can generate, view and print a cash forecast based on the following:

Manual invoices and interest invoices (based on due date, expected cash date, or average receipt period)
Sales orders
Project orders (installments that were not yet invoiced)
Sales quotations (based on expected quotation’s success rate)
Purchase invoices (based on payment schedule, due date, expected cash date, or average payment period)
Purchase orders
Standing orders
Budget - To create a cash forecast for a specific purpose, such as salary payments, you must first create the associated budget.

Electronic bank statements - archive & delete

You can now archive and delete electronic bank statement batches that are posted to the ledger accounts.

SEPA - hash codes

Processing SEPA files is only possible by calculating a hash code, according to the SHA-1 algorithm, and subsequently printed on the SEPA specification reports 69 and 70. The other hash-code algorithms, such as SHA-256 and MD5 can also be printed on the report now.

ISO 20022 Payment Standard - Switzerland

In Switzerland it is mandatory from mid-2018 to use the ISO 20022 format for payments (and direct debits). This format is supported by LN now.

Disable Bank Balance Check

When companies process their bank statements, the opening and closing balance of the bank statement is used to check if all transactions on the bank statement are entered with the correct amount. Some customers also enter other types of cash transactions. These transactions do not come with a bank statement that contain an opening and a closing balance. Therefore an additional option is added to the transaction type for Cash; ‘Calculate Closing Balance Automatically’. When this option is selected, the closing balance is automatically calculated based on the opening balance and the entered transactions. This simplifies entering these kind of cash transactions.

Allow Multi Currencies in one Bank Statement

Some customers use the EBS (electronic banking system) conversion data to import not only bank statements, retrieved from actual banks, but also files which hold intercompany settlements. These settlements can be in different currencies. EBS has been enabled to convert non-MT940 files with different currencies on line level.

Add Domestic Bank ID to Payment Advice

The Domestic Bank ID is needed to validate the Business Partner bank relation and the company’s own bank relation in the payment advice and the direct debit advice. Therefore, the ‘Domestic Bank ID’ of Bank Branch is added to the Payment- & Direct Debit Advice Lines sessions.

Repeating Remittance Information Tags

The ISO 20022 standard allows repeating remittance information tags, instead of concatenation of values in one remittance information tag per SEPA guidelines. This is now supported via a Repeat Remittance Information Tag option in the XML Payment/Receipt Layout session. Also, an option Use Separator between Mapped Elements in the XML Payment/Receipt Layout session is added, to have an empty separator (=no separator) instead of a space when the separator field is left blank.

Cash Forecast – Exclude Bank Accounts

The ability to exclude the balance of certain cash accounts linked to a transactions type from being used in the cash forecast. To support this, an option has been added to the transaction type.

Payment Process Selection Criteria

To speed up the payment process, a few changes have been made:

In the Selection of Invoices for Payment session, the financial business partner group has been added as a selection criteria for both purchase and sales invoices.
An additional session has been added to do a global update of payment advices.
Payment Batch and Payment Batch Status is added to several sessions to support the selection of anticipated payments.
A super user for payments is now able to reject a range of selected anticipated payment documents.

Post Withholding Tax to Actual Account for Anticipated Advance

It is now possible to select if Withholding Tax for Anticipated Advance Payments should be posted directly to the actual account during ‘Post Payments’ process. This is required in some countries, amongst which is India.

Daily Cash Report

The ability to print the Daily Cash Report in not only the transaction currency, but also in the local currency.

Currency rate on payment

When assigning payments or receipts to invoices, LN CE could not determine what should be posted as payment differences and currency differences.

To determine the differences, these new features have been implemented:

The Currency/Rate (Bank - Transactions) field has been added to the Bank Transactions (tfcmg2500m000) session. The value of this field is defaulted based on the original rate of the invoice and the rate between the home and the bank currency. The user can override the default rate based on the rate that is displayed on the bank statement. The specified payment amounts are then based on this new rate.
In the Matching Results (tfcmg2500m100) session of the Bank Statement Workbench, the Currency/Rate (Bank - Invoice) field has been added. The rate is retrieved from the original rate.
If advance or unallocated transactions are posted in the Bank Transactions (tfcmg2500m000) session, users can now specify a currency that differs from the bank currency. In that case, users must also specify a rate in the Rate (Bank - Transactions) field.
In the Enter Amounts for Assignment (tfcmg2107s000) and Enter Payment Amounts for Assignment (tfcmg2119s000) sessions, the rate that is displayed in the Amount in Bank Currency field is defaulted with the Rate (Bank - Transaction) of the Advance or Unallocated Receipt. This rate cannot be modified. If users change the Amount to Assign in Bank Currency, the Amount to Assign in Invoice Currency is changed accordingly. This also happens in the reverse situation.

Reconciliation of anticipated payments in foreign bank account

If the anticipated currency and the reconciliation currency differ, and the anticipated payment currency is the reference currency, the reconciliation amount could not be changed. Consequently, an erroneous currency rate was used for the transaction.

This restriction has now been removed for a dependent currency system.

Data by bank/payment method

The usability for setting up data by bank and payment method has been improved.

When you zoom to the details of a line in the Data by Bank/Payment Methods (tfcmg0545m000) session, the new Data by Bank/Payment Method (tfcmg0645m000) session is started. In this session you can, in the same view, also maintain the Posting Data by Bank/Payment Method.

Cancellation of advance/unallocated payment or receipt assignments

You can now cancel the assignment of advance or unallocated payments or receipts.

To support this, the Include Fully Paid command has been added to the View menu of these sessions:

Assign Advance/Unallocated Receipts to Invoices (tfcmg2130s000)
Assign Advance/Unallocated Payments to Invoices (tfcmg2131s000)
Assign Unallocated/Advance Receipts to Invoices (tfcmg2105s000)
Assign Unallocated/Advance Payments to Invoices (tfcmg2106s000)

When you select this new view, also the advance receipts or payments with a Balance Amount of zero are displayed. You can go to the details of such a line and undo the assignment.

Buy-from/sold-to business partner for advance payments/receipts to handle correct tax number

To determine the correct tax number for the business partner in case of advance payments or receipts, the Buy-from/Sold-to BP field has been added (initially hidden) to these sessions:

Bank Transactions (tfcmg2500m000), for advance receipts and advance payments.
Direct Debit Advice (tfcmg4609m000), for advance receipts.
Direct Debit Advice Lines (tfcmg4101m000), for advance receipts.
Payment Advice (tfcmg1609m000), for advance payments.
Payment Advice Lines (tfcmg1101m000), for advance payments.

The Repay Advances (tfcmg6201m000) session has been modified to pass on the correct sold-to business partner to Invoicing.