Create payment type

Use this procedure to create a payment type. A payment type is a user-defined subcategory of a specific payment class.

Outcome

A variance of a payment class is defined for a specific type of payment. In its basic form it consists of a name and the payment class to which it is connected. The payment types can be reviewed in 'Payment Type. Open' (CRS078).

Use the payment types for these purposes:

Accounts Receivable

Create payment methods for accounts receivable in 'AR Payment Method. Open' (CRS076)
Specify customer checks for direct or later allocation to invoice in 'Payment Document. Enter' (ARS105).
Select supplier invoice records to be paid in 'Suppl Payment Proposal. Create' (APS131) or 'Suppl Payment Proposal. Select' (APS635).
Select payment documents or invoices to be remitted to the bank or a factoring company in 'Bank Remittance. Create Proposal' (ARS301) or 'Remit Direct Debit and Factoring. Select' (ARS415).
Print lists of checks or drafts in 'AR Portfolio. Print Specification' (ARS560).
Identify remitted payment documents or invoices in 'Bank Remittance. Reconcile Payment' (ARS350) and 'Bank Remitt. Reconcile Payt per Due Date' (ARS355).
Identify remitted payment proposals in (ARS410) in status 90-Confirmed and 95-Completed.
Create bank quotas for defining the banks to which customer checks/drafts should be sent for redemption in 'Bank Quotas. Open' (ARS955).

Accounts Payable

Create payment methods for accounts payable in 'AP Payment Method. Open' (CRS071).
Create a supplier payment proposal in 'Suppl Payment Proposal. Open' (APS130) or 'Suppl Payment Proposal. Open' (APS630).
Review the accounts payable portfolio in 'AP Portfolio. Print Specification' (APS560).

The parameter file (CSYTAB) is updated.

Before you start

The company must have well-defined routines for processing invoices and payments.

Parameters to set


Used for Payment Class	Field	Description
0–6	Payment class	The field indicates a predefined, overall category of payments.
0-4	Payment receipt	The field indicates whether payment receipts should be created when manual payments are specified in (ARS105) or (ARS110).
1, 2, 4	Remittance method	The field indicates the remittance method used for checks and bills of exchange (drafts). These are the valid alternatives, checks: 0 = Remittance to bank is not used 1 = Checks are remitted to bank to be cashed. Valid Alternatives – Bills of Exchange 1 = Collection on the due date 2 = Discounted before the due date 3 = Both 1 and 2 are valid.
1, 2	Postdated check	The field indicates whether the payment type is reserved for postdated checks. A postdated check is basically a check with a due date. The check is entered preliminarily in 'Payment Document. Enter' (ARS105) or 'Payment Received. Record' (ARS110). However, the account entries are not created until you update the proposal for account entry generation in around due date in 'Postdated Check. Create Account Entries' (ARS320). This is based on the FAM function used for entering the check. Note: The 'Calculation of accounting method for postdated check' field for the payment method to which the payment type is connected controls the accounting date to be set when the proposal is updated. After this, the check is processed as a regular check.
1, 2	Cancel customer risk	The field indicates when the customer risk for postdated checks in the AR balance file is canceled. These are the valid alternatives: 0 = At bank remittance 1 = At preliminary entry of the checks in (ARS105) or (ARS110) 2 = When account entries are created in (ARS320).
5	Agreement type	The field indicates whether the direct debiting statement must be based on a valid customer agreement registered in 'Direct Debiting Agreement. Open' (ARS450).
5	Electronic confirmation	The field indicates whether account entries are created when confirming the bank remittance containing direct debiting payments in (ARS300) or (ARS410). If you do not select the check box, these happen: The customer invoices are recorded as paid, with the offsetting account entry based on accounting rule AR75–193 (Direct debiting - remitted). The bank remittance receives status 9 (Confirmed) in (ARS300) or status 90-'Confirmed' in (ARS410). The bank remittance can be reconciled in (ARS350) or in (ARS410). When reconciling the bank remittance in (ARS350) or in (ARS410), the bank account is debited and offset by an account entry based on accounting rule AR75–193. The bank remittance then receives status 11 (Reconciled) in (ARS350) or status 95-'Completed' in (ARS410). Select the check box to perform these actions: The bank remittance receives status 11='Reconciled' in (ARS350) or 95-'Compeleted' in (ARS410). Thus, the bank remittance is not available for reconciliation in (ARS350) or in (ARS410). No account entries are created when confirming the bank remittance. However, all invoices included in the bank remittance receives block code 9 (field RMBL), as displayed in (ARS201). Consequently, they are blocked from being included in another bank remittance proposal. The bank file is sent to the bank through Infor Enterprise Collaborator, if used. The payment records are received through Infor Enterprise Collaborator or another tool in the form of a bank file. The bank file is downloaded into (ABS100). When the payment records are approved in (ABS100), the customer invoices are recorded as paid, and the bank account is debited. See Reconcile customer payments through direct debiting or factoring in (ARS410) for the electronic confirmation in (ARS410) details.
6	Factoring company	The field indicates the external factoring company to which the company's customer invoices are sold. To enable factoring, the payment type must be included in a payment method that is connected to the affected customers in 'Customer. Open' (CRS610).
6	Fixed factoring charge	The field indicates the amount that the factoring company charges for each remitted invoice. The amount is specified in local currency and automatically converted to the invoice currency at remittance. The charge is displayed per invoice in the remittance proposal created in 'Bank Remittance. Open' (ARS300)or 'Remit Direct Debit and Factoring. Open' (ARS410). When the final remittance statement is created, the charge is posted according to accounting rule AR75-192. The remitted amount minus the charges is displayed in (ARS350) or (ARS410) when reconciling the payments. Note: Even though it is technically possible to enter a remittance charge both as an amount and as a percentage, this is seldom recommended. In such a case both values would be used to calculate the charges.
6	Factoring charge in percent	The field indicates the percentage of the invoice amount of each remitted customer invoice that the factoring company charges.
4	Bank confirmation type	The field indicates whether bank confirmation per remittance number or per due date is used. These are the valid alternatives: 1 = Bank confirmation per remittance number is handled in (ARS350). 2 = Bank confirmation per due date is handled in (ARS355). Note: You must set the remittance method to 2 when the bank confirmation type 2 is selected.

Follow these steps

Start 'Payment Type. Open' (CRS078).
Specify a two-position alphanumeric ID for the type. Click New.
On the E-panel, specify the relevant values according to the table above. Press Enter.