Contents
Payment Methods and Codes
Updated
by Caroline Buckland
Overview
For the Payment Processing subsystem to function it is necessary to define the possible methods of payment that can be made to Supplier, Employee and Sundry accounts, the company bank accounts used for making and receiving payments and when payments will be made.
Payment Methods
Payment Methods are part of the standard configuration, however there may be a time that new codes need to be created to segregate payments runs, or you start trading in foreign currency. Follow the steps below to understand the setup involved.
Payment Method codes are used to define the various media of payment (e.g. cheque, BACS etc.) which may be used and are attached to individual supplier records.
A payment method should already be defined for Cheque Suppliers and BACS Suppliers, and any other payment method your company users.
If new codes are needed follow the steps below.
Access the following menus:
Main Menu>Systems Admin>Module Controls>Accounts Payable Controls>Supplier Controls>Payment Methods
Use the insert action or copy an existing code.
Make an entry in the following fields.
Payment Code: two-character code of your choice
Description: description of your choice
Currency Code: enter a specific currency or *** for multi-currency
Payment Medium: Either select Bacstel or Cheque
Payment Rate: only used for currency payments, this calculates exchange rates and must include the currency code you are using for this payment method
Indicator: select Invoice
Split Print: leave blank – not a valid setting anymore
Save once complete.
Bank/Payment Methods
The payment method you have created can now be linked to a bank.
This table allows you to define which payment methods can be paid from which bank accounts.
Multiple payment methods can be attached to individual bank accounts.
A subtype also needs to be entered, the default sub-type is '00' which represents cash, therefore the legend 'Cash' will appear against payments in supplier transaction enquiries, select the most appropriate one for your code. To make payment postings more meaningful you can create sub-types to identify different payment methods.
Access the following menus:
Main Menu>Systems Admin>Module Controls>Accounts Payable Controls>Supplier Controls>Bank/Payment Methods
Use the insert action or copy an existing code.
Make an entry in the following fields.
Bank Code: the bank you wish to make the payments from
Payment Method: enter the payment method you created earlier
Payment Sub-Type: prompt for a suitable code, this is displayed in the Account’s Payable enquiry screens
Save once complete.
Payment Codes
Payment Codes are used to group suppliers for payment and so effectively control when a supplier is paid. Payment codes also amalgamate all the required payment criteria for a specific supplier.
You can decide whether to pay on settlement due date, or settlement due date and discount date.
Access the following menus:
Main Menu>Systems Admin>Module Controls>Accounts Payable Controls>Supplier Controls>Payment Codes
Use the insert action or copy an existing code.
Make an entry in the following fields.
Payment Code: two characters code of your choice
Description: description of your choice
Discount Date Scheduling:
· Settlement Due Date: payment scheduling is made by settlement due date.
· Settlement Due Date and Discount Date: payment scheduling is made by settlement due date and discount due date.
Currency Code: enter a specific code or use *** for multi-currency
Payment Method: the code you created earlier
Bank: press enter for this to default from the payment method
Auto-Payment: leave this blank, if set all due transactions are paid with no user intervention
Currency/Pymt-mthd Description: just leave this blank
Schedule Destination: set as STD to send the reports to the spool
Payment Destination: set as STD to send the reports to the spool
Split Pmt Destination: just leave blank as no longer applicable
Element: only used for ICA (inter company accounting), this will create separate pay runs for the element entered
Element Group code: only used for ICA - this allows elements to be grouped together on one payment schedule
Split Pmt Destination: no longer valid, leave blank
Auto Bank: this relates so your bureau number and protocol id with the bank. This should already exist, unless you have a new bank then a new code will need to be created.
Calendar: only used for fully automatic processing so leave blank
Transaction Selection: This indicator will be used to determine the order of retrieval of the transactions when the payment process is running to pick up transactions that are valid for the payment run
Payment Limit: sets a payment limit for transaction when filling a schedule for Payment. This optional.
Save once complete.
Lastly, amended any suppliers that require the new payment code and payment method.
Access the following menus: Accounts Payable>AP Processes>Suppliers>Maintain Suppliers
Locate the supplier and use the Amend action.
Access the AP Controls format and add in the new payment method and code.
