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Payment Run and Payment Proposal short guide

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Payment Run – Payables/Receivables

A payment run is used to execute payment proposals for internally initiated payments. It’s a background job that searches for opening payables items (payment run for payables) or open receivables items (payment run for receivables), for example, invoices or credit memos, that system proposes for payment within a single execution of a payment run.  System generates a payment proposal list that has to be checked before the payments are in fact executed.

It consists in basically 3 steps:

  1. Creation of a new payment run on Payables – Payments Runs
  2. Scheduling a Payment Run
  3. Editing and Releasing a Payment Proposal

     

Note that on supplier/customer master data is necessary to maintain a payment method for the supplier under tab Financial Data, in order to allow system to execute the payment run

Payment Run for receivables looks for open items that can be paid either by Credit Card or Direct Debit. Due payment runs for direct debits (receivables clearing) in foreign currencies are not supported by the system

Payment Run for payables looks for open items that can be paid either by Check, Bank Transfer or Wire Transfer.


Business Configuration relevant activities:

- Payment Strategies: defines when a due payment will be picked up by a Payment Run.  You can assign different payment strategies to
different companies/ customers/ suppliers.

- Global Settings for Payment: where you can define payment method prioritization based on amount, bank account and suppliers.


Payment Proposal

After you execute a payment run, a payment proposal will be created with the list of the open items, determined on the basis of the payment strategy that you have defined in configuration and displays the due payments taking payment conditions into account.

This list will be visible on Automatic Payments view under Payables or Receivables work center.  It will show you all outgoing payments initiated by a payment run (not outgoing payments initiated by suppliers, such as by direct debit with mandate) and payments to customer credits (in case of customers with a credit balance). 

You can decide when invoices should be paid so that you ensure that your commitments to suppliers are cleared on time and correctly.   Once
you have checked the payment details and terms of the proposed payments, you can release them.

Once you have executed the payments (by choosing Execute Payment in the Automatic Payments view), the system posts the payment and clears the open items to be paid.

Check also Help Center Documents:

- Quick Guide for Payment Runs (Payables)

- Quick Guide for Payment Runs (Receivables)

- Create and Edit Payment Proposals for Payables

- Approve an Automatic Payment Proposal

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