How Transactions are Selected for Payment or Collection

Which Accounts are Selected for Payment by a Payment Profile

A payment profile contains the following criteria that determine the accounts selected for payment:

• Account Code range
• Account Priority Code range
• Amount Threshold range, when it applies to account balance - optional
• Account Analysis codes (1 to 10) - optional
• Payment Method.

The account selection criteria is overridden in the following circumstances:

• accounts that are suspended or closed are always excluded from payment
• any accounts being used for allocation by another operator are excluded. They are noted on the Payments report.

Dealing with Debit Balances

If a creditor/payables account selected for payment has a debit balance, a payment is not generated. However, a payment document can be printed by Payment Documents showing the debit balance, for example you may want to produce a remittance advice. If a cheque is attached to the remittance advice it is voided. For each transaction making up the debit balance, the allocation marker on the ledger transaction is changed to Brought Forward. Payment documents, for example remittance advices, can be printed for Brought Forward transactions by each successive Payment Documents run, until the account balance reverts to a credit balance. Thus the debit balances are carried forward until further credit transactions are posted.

If you set the Ignore Debit Balances option in Ledger Setup (LES), the creditor accounts with debit balances are completely ignored by the payment processing. Payment documents are not produced and the allocation marker on each transaction is not updated to Brought Forward.

Which Transactions are Selected for Payment

A payment profile contains the following selection criteria that determine whether or not a transaction is selected for payment:

• Base or Transaction Currency Code (see Selecting Transactions for Payment by Currency)
• Allocation Marker (see Using Allocation Markers to Select Transactions for Payment)
• Journal Source
• Journal Type
• Transaction Reference
• Ledger Transaction Analysis Codes (1 to 10)
• Amount Threshold, when it applies to transactions
• Payment Due Date, depending on the run time Base Date for Payment
• Discount Due Dates, depending on the run time Base Date for Discount and Next Payment Date.

Some of these criterion can be entered at run-time, see What are the Payment Run Time Selection Criteria?.

The transaction selection criteria is overridden in the following circumstances:

• transactions with a Withheld allocation marker are excluded from all payment runs
• transactions with an allocation marker of Force are always included in the payment run, provided the account is included
• transactions with a numeric allocation marker are only selected if the marker is greater than the number set in the Minimum Allocation for Payment field on Ledger Setup (LES).

The following payment run and payment collection run selection criteria also determine whether or not a transaction is selected for payment:

• Base Date for Payment
• Base Date for Discount (Payment Run only)
• Next Payment Date (Payment Run only).

If the transactions selected for payment on a particular account result in a net debit total due for payment, Payment Run does not forward the transactions for payment. Instead it identifies these transactions on the payment run details report.

Finally, a Payment Limit can be set for a payment run or payment collection run. This is the maximum amount that can be paid or collected in the run. If this limit is exceeded by the payment or payment collection run, the run is abandoned and no accounts are paid or collected.