Workflow for payment documents

For customer orders, the delivery header is locked with status 03 to prevent the goods from being delivered prior to the payment of the payment document. The lock is released when the payment proposal is assigned status 30. A payment proposal is either created automatically (which is the case for all stock orders) or created on demand using related option 70='Payment proposal' from either the customer order toolbox or the delivery toolbox (for all other orders). A payment proposal in M3 is a record in the customer order delivery tables ODHEAD and ODLINE. When the payment proposal is created, the status is 10. When the payment document is printed, the status is raised to 20. When a partial payment is made, the status is raised to 25 and when the payment document is paid in full, the payment proposal is raised to status 30.

The difference between a payment document and an invoice is that the payment document is not transferred to accounts receivable. Instead, the payment is booked as an on-account payment that is later automatically reconciled when the invoice is transferred to FAM. The payment document looks like a preliminary invoice. It can have several delivery indexes all belonging to the same customer order number.

The payment document can be paid in 'Cash Payment. Open' (OIS215) or 'Payment Received. Record' (ARS110). The payment is regarded as an on-account payment with reference to the payment document. The payment document number is stored as additional information number 249 in FSLEDX.

Manage payment proposals

Payment proposals are managed in 'CO Delivery. Payment Proposal' (OIS152). If the advance invoice setting is 3 ('Prepayment calculated') and the CO lines are allocated and have a requested delivery date of today, this program is automatically launched when the salesperson leaves the customer order and confirms this pop-up message: 'Confirm creation of a payment proposal or advance payment proposal.' The payment proposal proposes the lines and quantity that are allocated and to be delivered today.

If the advance invoice setting on the order type is 4 (Prepayment required), a payment proposal is created on all the customer order lines regardless of how the order lines are sourced or when the order lines are planned to be delivered.

You can create and print the payment document automatically without starting (OIS152) when leaving customer order entry. The functionality to automatically print payment documents is activated by the 'Print document' setting on 'CO Type. Connect Documents' (OIS011/E). If the check box 'Print document' is enabled for document number 360, the document will be automatically printed. If the customer order is created from an external source, the payment document is created and printed automatically when the customer order is confirmed through the API. The payment document is only printed automatically upon order creation. If changes are made later on, a new document has to be printed manually.

The salesperson can also start (OIS152) on demand by using related option 70='Payment proposal' in the customer order toolbox or in the delivery toolbox.

In (OIS152), these tasks can be performed:

  • Print payment document
  • Change the quantity to pay and get an online update of the new line amount
  • Go to cash desk
  • Reverse all unpaid payment proposals
  • Scroll between all payment proposals connected to the customer order number using the filtering fields

When (OIS152) is started and the advance invoice setting is 3 (Prepayment calculated), the quantity to be invoiced is populated with the allocated quantity connected to the reference order line. This quantity may be adjusted both upwards and downwards for the cashier to control what must be paid immediately. Therefore, in order to change the amount to pay in M3 Cash Desk, the quantity on the payment proposal must be changed. It is not enough to make a partial payment and expect that some of the delivery lines will be released.

The quantity to pay will also affect the amount printed on the picking list. If the allocated quantity on an order line is 4 but the customer wants to pay for 3 today and the remaining 1 tomorrow, the salesperson changes the quantity to pay from 4 to 3 and prints the payment document. The payment document will then show quantity 3, and the picking list will only have the quantity 3. When the picking list is released, the remaining quantity will be moved to a new delivery index with status 3 and the salesperson must use related option 70='Payment proposal' again when the customer returns on the second day to pay and pick up the remaining piece.

If any advance payments exist, the paid amount will be deducted on the payment document.

Payment document statuses (ODHEAD):

  • 10 - Payment proposal created
  • 17 - Printing in progress
  • 20 - Payment document printed
  • 25 - Payment document partly paid
  • 30 - Payment document paid

If a payment document is partly or fully paid, the payment document cannot be cancelled and the customer order line cannot be changed, deleted, or closed.

Note: If the advance invoice setting is 4 (Prepayment required), as soon as a payment document is printed, no changes are allowed that will affect the total amount to pay. Example: adding or deleting order lines, changing quantities, prices, discounts, and charges. To make changes, the payment document must be deleted in (OIS152).

If a payment document is cancelled in (OIS152), the record in 'Invoice. Display' (OIS350) and 'Invoice. Display Lines' (OIS351) is also deleted.

The payment document is updated in 'Invoice number' (OINVOH) with a new information type (IVTP =05) and displayed in (OIS350). It is also updated to the OINVOL table and displayed in (OIS351).

The statistics and account entries are not updated.

One invoice can only have one payment document.

One payment document can be printed several times.

Several payments can be made against the same payment document.

Payment of payment documents

  • In cash desk

    On 'Cash Desk. Open (OIS210/F)' a new number series called 'C3' is available in 'Number Series. Open (CRS165)' and is used for on-account payments in the cash desk. This number series must be connected to the cash desk on 'Cash Desk. Open (OIS210/F)'.

    The payment document can be paid in 'Cash Payment. Open' (OIS215). The payment is regarded as an on-account payment with a reference to the payment document. The payment document number is stored in additional information number 249 in FSLEDX (after transfer to FAM) and can also be displayed in 'Cash Payment. Details (OIS216)'.

    When payment is made, the outstanding amount on the invoice number (OINVOH) is updated and if the remain-to-pay amount is zero, the status of the payment document is updated to 30 (ODHEAD). The status in the delivery table MHDISH is then set to 1, which means that the picking list can be released.

    If the payment document is partially paid, the status of the payment document is 25 (ODHEAD) and the picking list cannot be released.

  • In (ARS110)

    Payment documents and advance payment documents can be paid in 'Payment Received. Record' (ARS110).

    Related option 19='Payment request/document' is used to open the (ARS110/I) panel, where the payment document number is specified.

    If the prepayment process is activated in 'Settings - Customer Order Invoicing (CRS722)' then document type 1 (Payment request) or, if type 1 is missing, document type 2 (Payment document) will be defaulted. The document type is changeable and it determines which fields are displayed in the panel.

    The payment document paid is added and the outstanding amount and currency of the payment document is retrieved. Several stops have been implemented to ensure, for example, that the currency added on (ARS110/B) is the same as the currency of the payment document and that the paid amount does not exceed the outstanding amount.

    The payment is updated as an on-account payment with information about the payment document number paid in the additional information number 249.

    Accounts receivable is accounted on accounting event AR30 and accounting type 110.

    When payment is made, the outstanding amount on the invoice number file (OINVOH) is updated and if the amount remaining to be paid is zero then the status of the payment document is updated to 30 (ODHEAD).The status in the delivery table MHDISH is then set to 1, meaning that the picking list can be released.

    If the payment document is partially paid, the status of the payment document is 25 (ODHEAD) and the picking list can be released.

    If the payment regards an advanced payment document and the document is fully paid, the planned PO is released and the advanced invoice is printed.

  • In Automatic Bank Statement (ABS)

    Scenario type 8 (AR prepayments) is available in 'Scenario Number. Open (ABS911)'. A scenario number connected to this scenario type must be defined to be able to automatically allocate payments to the payment documents.

    You can use the invoice number from the bank statement line, information from the additional information file, or an amount search as the search path for the invoice. The on-account number series (C3) to use must be connected to the scenario number.

    When a bank statement line is received containing information about the payment document number and when the scenario number for payment documents is used, a check is done for the payment document number in the invoice number file (OINVOH), where IVTP = 05 or 06.

    If the payment document is allocated, then the on-account payment invoice number is displayed in 'Bank Statement. Open Line Details (ABS102)' and the payment document number is shown as additional information number 249.

    When the general ledger is updated, the payment is updated as an on-account payment containing information about the payment document number paid in the additional information number 249.

    The status of the payment document, picking lists, and the outstanding amount in the invoice number file is updated as if it was paid using the cash desk or 'Payment Received. Record (ARS110)'.

    If the payment document is not automatically allocated, you can access (ARS110) using option 'AR payments' in (ABS102).

    Note: The limitation payment of payment requests cannot be performed from a full screen processing view (sorting orders 11-16) in (ARS110).

Reconciliation of payment document payments against invoice

When the invoice is transferred to financials, a check is done on whether any payments of the payment document (stored as additional info number 249 in FSLEDX) exist in accounts receivable. If so, they will be automatically reconciled against the invoice, and payment transactions (trcd 20 in FSLEDG) are updated to the on-account payment record and to the invoice.

If the invoice/on-account payment is fully paid, the reconciliation code (RECO) in 'Accounts Receivable Table: FSLEDG' is set to 9.

Similarly, the advance invoice is reconciled against the on-account payment of the advance payment document.

The same check and reconciliation is done when the payments are transferred to accounts receivable.

In 'Settings - Customer Order Invoicing (CRS722)' the FAM function (reconciliation function) to use during reconciliation must be defined.

Changes to existing customer orders with payment proposal

If the payment proposal has status 10 - Created and the user specifies new order lines, the existing payment proposal is deleted and the delivery is unlocked if the delivery data on the specified line allows delivery aggregation. Therefore, when the user acknowledges the dialog Confirm creation of a payment proposal or advance payment proposal, a new aggregated payment proposal will be created.

Credit limits

Customer orders in the payment proposal workflow will not generate a customer order stop. The purpose is to be able to complete orders even if the customer has no credit.

Application message

When the release is scheduled, an application message is sent to the planner. The planner can then access the planned order from the application message. Message type 984 is used for the application message informing the planner.

Advance payment document on a complete customer order

If the advance invoice setting on the order type is 4 (Prepayment required), a payment proposal is created on all the customer order lines regardless of how the order lines are sourced or when the order lines are planned to be delivered. Therefore, no advance invoice is created when running this process since everything is paid for in advance.

The payment proposal check box in 'Payment Term. Open' (CRS075) must be selected together with the setting Advance invoicing = 4 (Prepayment required).

Close payment proposal

'CO Delivery. Close Payment Proposal' (OIS952) is used to execute a batch run that closes customer order lines during the payment proposal process. The check box 'Lost sales' is selected together with a transaction reason to update the closed customer order lines as lost sales. The closing date will prevent customer order lines with a planning date later than the closing date to be included in the closing selection. (OIS952) will only close customer order lines with unpaid payment proposals or unpaid advance payment proposals.

The job that (OIS952) submits will close the customer order lines and remove any unpaid payment proposals and advance payment proposals.

Close of a customer order with paid payment documents (only if advance invoice setting is 4=Prepayment required)

When a payment document has been printed, no changes that will affect the total amount to pay are allowed. This includes adding or deleting order lines, changing quantities, prices, discounts, and charges. You can close order lines and credit the customer for what is not delivered.

A warning message is displayed if a customer order or a customer order line with paid payment document is closed. If this message is confirmed, the customer order or customer order line will be closed, and you cannot create a corrective payment document from 'CO Invoice. Correct or credit' (OIS380) (called from 'Invoice. Display' (OIS350)).

In (OIS380), the closed lines are displayed, showing the closed order lines and their 'To credit' amount. Affected header and line charges are also displayed. When the job is submitted, a corrective payment document is created to refund the customer.

Note: Charges defined as amounts, that is header and line charges with 'Calculation method' 0 = 'Fixed amount' and service charges, are not credited.

The payment document corrected is updated as the original invoice number on the corrective payment document.

The payment of the corrective payment document is automatically reconciled against the payment of the original payment document when the payment of the corrective payment document is updated to the Accounts receivable.

When the payment of the corrective payment document is transferred to M3 Finance, the original payment document number is updated as additional number 249 (Payment document number) and the Corrective payment document number is updated as additional number 250 (Corrective payment document).

Payment of a corrective payment document is not implemented in 'Payment received. Record' (ARS110).

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