Paying Transactions Immediately

There may be times when you need to pay ledger transactions as soon as they are posted to the ledger. For example, if a supplier has presented an invoice in person that needs to be posted and paid immediately while he waits.

You can link the Ledger Entry process to the Payment Run process for selected transactions. This enables you to enter and post the ledger transactions and then pay them immediately.

Linking the Transaction Entry and Payment Processes

You must set up a journal type to identify the transactions that require immediate payment and link the journal type to a payment profile. Journal Types are defined using Journal Types (JNT) and the payment profile is entered in the Payment Profile Code field.

Payment profiles are defined using Payment Profiles (PYP).

Immediate payments are typically made by cheque. In this case, the payment profile used to produce these payments would reference the Payment Method of Cheque.

Note: A supplier is only paid by Payment Run, if the Payment Method that has been set for the supplier on Supplier (SUS) is the same as the Payment Method identified in Payment Profiles (PYP). Therefore, if you want to produce an immediate cheque payment for a supplier that is usually paid by bank transfer, you must temporarily change the supplier's Payment Method on Supplier (SUS).

Entering Transactions and Producing the Immediate Payments

Once you have set up the linked journal type, you can use Ledger Entry to enter the transactions that require immediate payment. The transactions must be entered using the linked journal type.

If the Due Date is calculated automatically using the payment terms and is set to a future date, you may want to override this and enter the current date. If not, you will need to adjust the Base Date for Payment in Payment Run (PYR) to include the transactions for payment.

As soon as the transactions are posted by Ledger Entry, Payment Run (PYR) appears automatically. It automatically displays the Payment Profile Code referenced on the journal type. Only the transactions that have just been posted are considered for payment.

You should enter the payment run details and initiate the payment run in the normal way. Payment Run produces the Payment Listing, generates and posts the payment transactions, and produces the payment file used to produce the physical payments. See 'Understanding Payment Run' for more information on this processing.

Finally, Payment Documents (PYD) appears automatically to allow you to produce the physical payment documents, for example, the remittance advice and cheque.

Once the payment document print process has been initiated, the Ledger Entry function reappears to allow you to enter another journal, if required.