Running the Payment Program

The payment run parameters determine the accounts and documents that are included in the payment run. You are required to set these parameters before starting the payment process.

• Run date
• Program identification (to differentiate between program runs on the same run date)
• Posting date of the payment documents
• Entry date up to which invoices are to be selected
• Relevant company codes
• Relevant payment methods
• Next date of payment run
• Relevant customer/supplier accounts
• Additional freely selectable criteria based on invoice document or master record (optional)
• Exchange rate type (optional)

Open Item Selection

The system selects the appropriate open items to be paid based on at least the following parameters:

• Which documents are to be paid?

  All invoices or open items entered up to the Docs entered up to date are included in the payment run. The Docs entered up to field is automatically set to the run date. The Posting Date, which is the date on which the general ledger is updated with the postings, is also automatically set to the run date. It is possible to change the Docs entered up to and Posting Date fields to a date in the future, which is useful if payments are not posted daily. 

• Which company codes are to be included in the payment run?

  Only company codes in the same country can be included in a payment run.

• Which payment methods are to be used?

  You are required to define the payment method(s) that can be used in each country. When starting a payment run, you choose the payment method(s) to use from the list of available methods.

Note

Remember that if you use more than one payment method in the payment run, the order you enter the payment methods is important. The first method entered has first priority; the second method entered has second priority, and so on. The system makes the payment using the payment method with the highest priority possible after the check.

Once you have entered the payment run parameters, it is possible to schedule the proposal run.

1. The invoices or open items to be paid are selected, based on the payment run parameters entered.
2. The system groups the invoices or open items into payments and assigns the payment methods and bank details to be used.
3. If the system cannot find a valid payment method or valid bank details, it adds these items to the exception list.
4. The system generates the proposal and exception lists, which can be exported or reviewed online.

Proposal List

The proposal list shows the business partners (customers and vendors) and the amounts each owes or is owed. Depending on the line layout you choose, the associated document numbers and cash discounts can be displayed.

Any exceptions are also listed here. You can drill down to view and change the details of the individual payment items.

Exception List

The exception list displays the FI documents that match the specified payment parameters, but cannot be paid for some reason.

To find out why the invoice or item cannot be paid, you can check the additional log.

Payment Blocks

There are several ways to set a payment block:

Setting Payment Blocks

Condition	Payment Block
If a problem arises during the invoice verification process, the invoice is usually blocked for payment.	You can configure this type of block in such a way that the block can only be removed during the invoice verification process.
If there is a reason why a vendor must not be paid, you can create a payment block in the master record.	The block created in the master record prevents any invoices from the vendor from being paid. You can also configure the block so that it has to be removed manually in the master data record before the system can process a payment.
When you enter an accounts payable (AP) invoice, that invoice may be blocked for payment.	The type of payment block determines whether it can be removed while editing the payment proposal.

You can define additional payment blocks in the system. You can also specify whether the payment block can be removed when payments are processed.

When you run the debit balance check after the payment proposal run, the system automatically blocks all the debit balances included in the actual payment run.

After you create the payment proposal, accounting clerks will check and, if needed, edit it.

Editing the Payments

When editing the payment proposal, the first screen displays a list of all the payments proposed.

You can perform the following tasks:

• Display a list of all the open items due for payment.
• Change the payment block and cash discount for each line item.
• Assign the item to a different pre-existing payment.
• Create a new payment by choosing a payment method and a house bank.

After you edit the payment proposal, the system uses it as a basis for the actual payments.

What happens during the payment run?

• Payment documents are created or posted.
• Open items are cleared.
• Postings are made to the General Ledger and subledgers.

• Modify payment run parameters to select accounts and documents for payment.
• Create payment proposal, analyze exceptions, and edit payment details.
• Payment run posts payment documents, clears open items, and updates ledgers.
• Payment blocks prevent payments for specific invoices or accounts.