What is the Payment Collection Run?

Payment Collection Run (PYC) is used to settle the debit transactions on your debtors/receivables or client accounts using an automatic bank payment collection facility, such as direct debit. Payment Collection Run can create the bank payment file required to collect the payments electronically. It also generates the ledger transactions required to post the payments to the debtors/receivables accounts, and produces a payments file from which payment related documents can be printed, for example account statements.

The type of output produced by Payment Collection Run and the transactions it selects for payment, are determined by the payment profile you select at run time. See 'What are Payment Profiles?' for more information on payment profiles.

You can use Payment Profiles (PYP) to define any number of profiles. Each profile can contain different selection criteria, including account selection criteria, currency codes, due dates, and so on. See 'How Transactions are Selected for Payment or Collection'.

Before you use Payment Collection Run you should identify or define the payment profile that contains the payment collection run selection criteria. You may also want to preview the payment collections. See 'Preparing for a Payment or Collection Run'.

Note: You must ensure the Payments/Debits field is set to Collection to allow the payment profile to be used by the collection run.

What Does the Payment Collection Run Do?

Payment Collection Run performs the following tasks:

  • it uses the selection criteria to locate the transactions due for collection.
  • it produces a payment collection run details report that lists or summarizes the account transactions selected for collection and shows the total number and amount of the collections being generated.
  • it creates a payment file that contains all of the payment collection details. This file is used to produce any payment documents required to support the payment collections.
  • it generates and posts the ledger transactions required to record each payment collected on the debtor/receivables or client accounts, any settlement discounts taken, and tax adjustments on the discount. See 'What Postings are Generated by Payment Run?' and 'Taking Discounts and Adjusting the Tax'.
  • the payments are allocated against the transactions they are collecting using the allocation marker Paid. This prevents them being reselected for collection and allows them to be archived. An allocation reference, period and date are also entered on both sets of transactions.
  • it optionally produces a bank transfer file, if the payment method is Bank. See 'Controlling the Production of the Bank Transfer File'.

When you run the Payment Collection Run, you can choose to produce the payment run details report only and use this to verify that the correct payments are being collected. See 'Preparing for a Payment Collection Run'.

See 'Initiating a Payment Collection Run' for the steps required to produce payment collections, or 'Using Payment Collection Run' for an explanation of the Payment Collection Run form fields.