Creating Payment Advice for Open Customer Invoices before Due Date

This document explains how to create a payment advice, that is a list of outstanding invoices close to the due dates, for one or several payers/customers.

Payment advices are used to remind the payer of upcoming payments to prevent complications due to late payment. This is for the benefit of both the payer and the company, especially if the invoice amount is very large. In Latin countries using payment advices is a common way of reminding customers to accept and return the drafts they have received within the stipulated time.

Outcome

A payment advice is created and printed, displaying all unpaid accounts receivable invoices that will become due within a certain number of days, per payer or customer and currency.

The following information is included, apart from the opening and closing comments:

Invoice number, invoice date, due date, currency, and outstanding amount. Information on the payer and the sender's credit department reference is also given, retrieved from 'Customer. Open' (CRS610).

The invoices included in the advice can be reviewed in 'Accounts Receivable. Display Additional Information' (ARS250) even after the advice itself is deleted in 'Payment Advice. Open' (ARS180).

You can send the payment advice to the payer(s) as a reminder that these invoices will soon be due.

No new transactions are created. The payment advice is saved in the following statement files: FADVI1 (listing name and status of all statements), FADVI2 (listing payers), and FADVI3 (listing invoices).

The payment advice is automatically allocated information category number 207 and saved under its advice number.

Block Codes Used

When a specific invoice is included in the printed advice, it has status 8=Included in proposal or 9=Included in final payment advice in the accounts receivable file (FSLEDG). This prevents the invoice from being included in another payment advice proposal.

However, if the invoice or payer is blocked or deleted in the proposal, the status for the invoice or the invoices belonging to the payer respectively is set 0='Not blocked' in the accounts receivable file again.

Note: The block code can be changed manually for each invoice in 'Accounts Receivable. Display' (ARS200).

Before you start

  • The starting conditions listed in Managing customer debts must be met.
  • Number series type 50 under number series 3 must be defined for payment advice in 'Number Series. Open' (CRS165).
  • A customer/payer must be recorded in 'Customer. Open' (CRS610).
  • There must be open accounts receivable records for the payer.
  • If you wish to use standard texts for opening and closing comments in the payment advice per language, these must be defined in advance in 'Payment Advice. Enter Text' (ARS035).

Follow These Steps

  1. Create a Payment Advice Proposal

    Create a proposal in 'Payment Advice. Open' (ARS180) by specifying up to eleven different selection criteria.

  2. Adjust the Payment Advice Proposal

    Adjust the proposal by blocking or deleting payers or invoices to prevent them from being included in the final advice. This is done in (ARS185) and (ARS186); the programs are called via (ARS180).

    You can also add or adjust opening and closing comments to be printed on the payment advice in (ARS185), which is called via (ARS180). If standard texts are defined, these are automatically retrieved but can be changed. See Before Starting.

  3. Create the Final Payment Advice

    Create and print the advice in by confirming the proposal in (ARS180). Note that it cannot be changed or reviewed on screen after it has been printed.

  4. Send the Payment Advice to the Payer

    Send the payment advice to the respective payer. Since the advice is saved under an information category number, it can then be deleted in (ARS180) – see Results.

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