Payment Methods
Receivables uses payment methods to account for your receipt entries and applications. Payment methods also determine a customer's remittance bank information.
You can assign multiple remittance banks to each payment method, but only one bank account can be the primary account for each currency. For each remittance bank branch account assigned to a payment method, you must define all of your receipt accounts. You can then assign your payment methods to your receipt sources to use with your AutoLockbox and manually entered receipts.
The receipt class you assign to each of your payment methods determines the processing steps that Receivables requires for receipts that you create using this payment method. These steps include whether to require confirmation, remittance, and bank clearance for receipts that you create with a specific receipt class. See: Receipt Classes.
Receivables requires that you specify a payment method when you create your automatic receipts through the Receipt Batches window. You also assign payment methods to invoices when you manually enter them in the Transaction window.
Only automatic payment methods can be associated with invoices. If you remit receipts in several currencies for a single payment method, you must enter at least one remittance bank per currency. At least one of these remittance banks must be primary.
Number of Receipts Rules
When defining payment methods with a receipt class whose creation method is Automatic, you can choose from the following receipts rules:
One Per Customer: Create one payment for each customer.
One per customer and Due Date: Create one payment for each customer and due date. This option creates several payments for a customer if a customer's invoices have several due dates.
One per Site: Create one payment for each site.
One per Invoice: Create one payment for each invoice.
One per Site and Due Date: Create one payment for each customer site and due date.
Prerequisites
To define a payment method:
1. Navigate to the Receipt Classes window.
2. Query or enter the receipt class to assign to this payment method. See: Receipt Classes.
3. Enter a unique Name for your payment method, then enter how you want this payment method to be printed on your statements in the Printed Name field. The default Printed Name is the payment method name.
4. If the receipt class associated with this payment method has an Automatic creation method, enter a Number of Receipts Rule and a number of Lead Days. The lead days specify the number of days before the invoice due date that an invoice can be selected for receipt application of automatic receipts using this payment method. See: Creating Automatic Receipts.
5. If the receipt class associated with this payment method has an Automatic creation method, enter a Receipt Maturity Date Rule. Receivables uses this rule to pay invoices that have different due dates with a single receipt using this payment method. Enter Earliest if you want the receipt maturity date to be the earliest due date of all of the invoices that your receipt covers. Enter Latest if you want the maturity date to be the latest due date of all of the invoices that your receipt covers.
6. If the receipt class associated with this payment method has an Automatic creation method, enter the Automatic Print Program for transmissions using this payment method. Receivables provides one standard receipt print program to format the output of your payment selection and creation programs when you physically create the receipt document. If you need a different receipt print program format, you must copy this standard receipt print program, and modify it accordingly.
7. Enter the range of Effective Dates for this payment method. The default start date is the current date, but you can change it. If you do not enter an end date, this payment method will be active indefinitely.
Assigning Remittance Banks
You can define remittance banks and assign them to your payment methods. A remittance bank can be assigned to a payment method only if its institution type is 'Bank.'
You can assign multiple bank accounts to a payment method, but you can only have one primary account for each currency defined for that payment method.
Prerequisites
To assign a remittance bank to a payment method:
1. Navigate to the Receipt Classes window.
2. Query the receipt class or payment method to which you want to assign this remittance bank.
4. Enter general Remittance Bank information, such as Bank, Branch, Account Name, and range of Effective Dates. You can only select active banks and bank branches.
5. If the creation method of the receipt class is Automatic, enter a Minimum Receipt Amount. This is the minimum amount in this currency that must be specified when you create automatic receipts with this payment method.
Note: You can also define a minimum receipt amount at the customer profile level. Receivables uses the larger of the two minimum receipt amounts when creating automatic receipts.
6. If the remittance method for this receipt class is either Factoring or Standard and Factoring, specify the number of Risk Elimination Days for receipts created with this receipt class. When you factor receipts, Receivables creates a short term debt to account for your risk in case of customer default. When you run the Automatic Clearing program to clear or risk eliminate these receipts, the debt is cleared y days after each receipt's maturity date, where y is the number of risk elimination days that you enter here.
7. If the remittance method is not No Remittance, enter the number of Clearing Days for receipts created with this receipt class. Remitted receipts are cleared x days after their maturity date, where x is the number of clearing days that you enter here. Factored receipts are cleared immediately on the remittance date.
8. If you do not want this to be the primary remittance bank account in this currency for this payment method, uncheck the Primary check box. You can only assign one primary remittance account per currency to your payment method. Receivables ensures that at least one remittance account per currency is primary.
9. Enter GL Account information for this remittance bank.
10. If the creation method of the receipt class is Automatic, open the Formatting Programs alternative region, then enter formatting program information. Otherwise, skip to step 15.
11. To use a transmission format when you format batches of remitted receipts for this payment method, enter a Remittance Transmission. When you factor your remittances, Receivables notifies your transmission program so it functions accordingly.
12. To run a printing program when you format remittance batches for receipts remitted to you using this payment method, enter a Remittance Print program. When you factor your remittances, Receivables notifies your print program so that it functions accordingly. You can use this program to create and send remittance advice to customers to whom you assign this payment method.
13. To run a factoring transmission program when you format your batches of remitted receipts created using this payment method, enter a Factoring Transmission program. When you factor your remittances, Receivables notifies your factoring transmission program so that it functions accordingly. You cannot enter a factoring transmission program for this payment method if your bank branch account's factoring creation medium is paper.
14. To run a factoring print program when you format your batches of remitted receipts for this payment method, enter a Factoring Print program. When you factor your remittances, Receivables notifies your factoring print program so that it behaves accordingly. You cannot enter a factoring transmission program for this payment method if your bank branch account's factoring creation medium is magnetic medium.
See Also
Entering Customers
Entering Receipts
About Remittances
Automatic Clearing for Receipts
Define receipt classes