Automatically Selecting Supplier Invoices to Pay

Outcome

One verified and corrected payment proposal is created per payment method, including records matching the user-defined selection criteria. Any invoice records that should not be included are either removed or blocked.

Use the proposal as the basis for creating payment documents and updating the financial system. See Executing Supplier Payments Based on Payment Proposal.

No transactions are created. The proposal is saved in the payment proposal header table (FPSUGH) and the corresponding details table (FPSUGD).

Each invoice included in the proposal is assigned payment status (PYST) 1 in the accounts payable file (FPLEDG) and is blocked from being processed in other programs or proposals.

Before you start

• The company must have answered these questions:
  • What types of payment can be made (for example, suppliers, expenses for employees, inter-company netting, bonus or commission payments to customers or agents)?
  • What payment methods will be processed?
  • What criteria will be used to select invoices for payment?
  • Will bank quotas be used?
  • Which functionality is required for paying by check, draft, or bank transfer (for example, remittance, numbering, with or without feedback)?

• These FAM functions with detail records must be defined in 'FAM Function. Open' (CRS405): AP30 (check), AP31 (electronic bank transfer), AP32 (manual bank transfer), AP33 (bill of exchange/draft), and AP35 (direct debiting).
• Supplier invoices must be specified in accounts payable and approved.
• Bank accounts for administering the payments must be specified in 'Bank Account. Open' (CRS692).
• If you wish to apply bank quotas for distributing drafts between different banks, such quotas must be defined in 'Bank Quota. Open' (APS030).
• If you wish to retrieve your bank account automatically instead of specifying it manually when creating the proposal, one bank account number per currency and/or payment method or a general bank account number must be defined in 'Bank Account Connection. Open' (APS090).
• You can group invoices per trade code by using the combination of payment method and bank account ID defined in 'Payment Document Break Level. Open' (APS091). When a payment proposal is created, other fields such as payee, payment date, cash discount, company bank account, and supplier bank account of the invoice are also considered for grouping the invoices per payment document. The trade code break level selected in (APS091) must be considered. If the combination cannot be found in (APS091), the ordinary grouping is used.
• If the parameter for payment proposal approval is selected in (APS905), the payment proposal must be approved before the payment can be made in (APS130). See Supplier Payment Proposal Approval
• If suppliers are to be selected according to their respective priority when creating a payment proposal, priority codes must be specified for the respective supplier in 'Supplier. Define Purchase & Financial' (CRS624/F).
• You have defined in 'Settings – Accounts Payable' (APS905/F) whether a payment proposal is to be deleted automatically after having been confirmed with option 9 in 'Suppl Payment Proposal. Open' (APS130/B).
• You have defined in (APS905/F) whether credit notes will be automatically matched in the payment proposal.

Follow these steps

1. Create supplier payment proposal

   Select the invoices to pay in 'Suppl Payment Proposal. Open' (APS130).

   When you have specified the selection criteria, one or several payment proposals are created, one for each payment method and currency selected.

2. Verify payment proposal

   Check the proposal(s) to verify that the correct invoice records are included before continuing.

   If an error report was printed, check whether any of the records listed in the report should be adjusted and included in the proposal.

3. Adjust proposal

   If you discovered any incorrect information such as wrong bank or payment method, adjust those values in (APS130) with sub-programs. These changes only affect the proposal, not the accounts payable file.

4. Print preview of payment documents

   Before creating the final payment documents and updating the financial system, you can print a preview in (APS130). This means that simulated payment documents are printed for a last check.

5. Correct invoices in accounts payable

   There are some errors which you may have to correct directly in the accounts payable file. This can be the case when you need to change the payee. Do this in 'Supplier Invoice. Display Separate' (APS215). After that, you can create a new proposal to include the corrected invoices.