Using payment agreements

Invoicing and payments in Japan

To set up paying your suppliers in accordance with Japanese business practice, you can set up Payment agreements.

Payment agreements are often used if you receive a monthly billing invoice from your supplier.

To setup up payment agreementsTo set up payment agreements, use the following sequence of sessions:

1. Group Company Parameters (tfgld0101s000)

   Select the Payment Agreement check box.

2. Payment Agreements (tcmcs2506m000)

   Define the payment agreements. Because multiple financial companies can share the payment agreements, you must define the amounts in the reference currency.

3. Invoice-from Business Partner (tccom4122s000)

   If you have a payment agreement with a supplier, select the payment agreement. LN adds the payment agreement by default to purchase order lines for the business partner.

4. Payment Agreement by Item and Invoice-from BP (tcmcs2108m000) (Optional)

   If you prefer, you can select specific payment agreements for combinations of invoice-from business partner and item or item group, or financial business partner group and item or item group.

5. Priorities to Set Default Payment Agreement (tcmcs2109m000) (Optional)

   If you used the Payment Agreement by Item and Invoice-from BP (tcmcs2108m000) session, you can use this session to define the order of priorities that LN uses to determine the default payment agreement for a purchase order line.