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.
For all stock orders, a payment proposal is created automatically. For all other orders, you must create the payment proposal on demand using related option 70='Payment proposal' from either the customer order toolbox or the delivery toolbox.
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. 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. The payment document can include several delivery indexes that belong 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 'Adv invoicing' setting is 3-'Adv invoicing allowed. Prepaym 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 'Adv invoicing' 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 is 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), you can perform these tasks:
- 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 'Adv invoicing' setting is 3-'Adv invoicing allowed. Prepaym calculated', the quantity to be invoiced is populated with the allocated quantity connected to the reference order line. You can adjust this quantity 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, you must change the quantity on the payment proposal. It is not enough to make a partial payment and expect that some of the delivery lines is released.
The quantity to pay also affects 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 shows quantity 3, and the picking list only has quantity 3. When the picking list is released, the remaining quantity moves 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 is deducted on the payment document.
These are the 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, you cannot cancel the payment document and you cannot change, delete, or close the customer order line.
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) field with a new 'Information type' set to 05 and displayed in (OIS350). The payment document 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. You must connect this number series 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 be displayed in 'Cash Payment. Details (OIS216)'.
When payment is made, the outstanding amount on the 'Invoice number' (OINVOH) is updated. 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 is set as default. 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. 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)'. To enable automatic allocation of payments to payment requests or payment documents, define a 'Scenario number' (BSNO) that is linked to this scenario type. Then, under the Allocation of Invoices to Bank Statement lines, set the 'Search path C/S' to 6.
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 'Information type' is 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 is 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).
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, those payments 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 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)', define the 'FAM function' to use during reconciliation.
Changes to existing customer orders with payment proposal
If the payment proposal has status 10-'Created' and you specify 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 you acknowledge the dialog 'Confirm creation of a payment proposal or advance payment proposal', a new aggregated payment proposal is created.
Credit limits
Customer orders in the payment proposal workflow do 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 'Adv invoicing' 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.
Select the 'Payment prop' check box in 'Payment Term. Open' (CRS075) together with the 'Adv invoicing' setting set to 4-'Prepayment required'.
Close payment proposal
'CO Delivery. Close Payment Proposal' (OIS952) is used to perform 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 prevents customer order lines with a planning date later than the closing date from being included in the closing selection. (OIS952) only closes customer order lines with unpaid payment proposals or unpaid advance payment proposals.
The job that (OIS952) submits closes the customer order lines and removes any unpaid payment proposals and advance payment proposals.
Close of a customer order with paid payment documents (only if 'Adv invoicing' setting is 4-'Prepayment required')
When a payment document is printed, no changes that 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 is closed, and you can create a corrective payment document from 'CO Invoice. Correct or credit' (OIS380), which is 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.
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).