Pay-out of negative balances to customers

Requirement

There can be many reasons due to returns, reversals, trade, bonus or commission agreements etc. that can result in a negative customer balance on the AR ledger.

Since a negative customer account balance is a liability, the customer might want to be paid, either in cash for credit notes or for the entire negative balance.

M3 solution

The payment proposal is used to select negative customer balances or credit invoices that are to be included in a payment run. The selection of the open items is done based on customer related attributes. For electronic payments, the customer’s bank account is used.

The payout proposal based on customer items is processed in the same way using most of the features as known from processing a supplier payment proposal, for example, cash discount handling, addition of customer invoices and credit notes, payment proposal approval, bank quotas, bank account connections, etc.

On update of the proposal, a detailed electronic payment file or checks can be produced based on the AP payment method used for processing.

For Germany, the SEPA and non-SEPA, including domestic electronic outgoing customer payment messages, are delivered with this country version.

These messages have been adapted, as made available in Infor Localization Services GEMS, ‘Credit Transfer - 100026’:

• DE - Credit Transfer DTAZV (outdated in 2025)
• DE - Credit Transfer pain001 GBIC SEPA (valid optionally from 2021-11 in parallel to XC - credit transfer pain001 SEPA)
• DE - Credit Transfer pain001 GBIC (pain.001.001.09 GBIC SEPA, to be used for cross-border payments optionally from 2022-11, replaces DTAZV from 2025)
• XC - Credit Transfer pain001 SEPA

Configuration guidelines

Program ID	Program name	Description or comment
CRS071	AP Payment Method. Open	Define the AP payment method to be used to process the payout for negative customer balances or credit notes.
CRS405	FAM Function. Open	Configure FAM functions AP3x for processing outgoing customer payments in the new program ( APS330). In (CRS406), specify this information: VAT method - cash discount To recalculate the VAT share per VAT rate, specify3. Split payment transactions We recommend that you specify 3. Split bank transaction For FAM functions AP3x only, we recommend that you specify 1 Per Document.
CRS395	Accounting rule. Set	Ensure the accounting event/types AR30 310 and 111 for cash discount recalculation on customer invoices or credit notes are set correctly.
CRS610/J	Customer. Open	Enable the customer for outgoing payments. Set AP Payout to 1-Yes.
CRS692	Bank Account. Open	Ensure that a valid bank account is set up for the customer (type 2).
APS330	Outgoing Payment Proposal. Open	Create the payment proposal for negative customer balances or credit notes, review and process the payment to the customers.

See the Infor M3 Core Configuration Guide for Infor Localization Services GEMS for the detailed configuration guidelines for the applicable messages.