TERMS OF PAYMENT
01 Payable immediately - Due net
Path : SPRO-Financial accounting –Accounts receivable and accounts payable –Business transactions-Incoming invoices / Credit memos – Maintain terms of payment
Select new entries button
Payment terms :AML1
Select customer check box
Select vendor check box
Default for base line date
No default :No.of purchases during the month base line date at the time of Invoice posting –Blank
For all purchases during the month give month end date.
Document date :Party bill date
Posting date :Goods receipt date
Entry date :Quality approval date
Payment terms :If the payment is made within 10 days -3% cash discount
If the payment is made within 20 days -2% ash discount payable within 30 days
Under default for baseline date: Select posting date radio button
Percentage No.of days
Term 1 3 10
Term2 2 20
Term3 - 30
Press enter
Select save button or Ctrl+S
Press enter to save in your request
Cash Discount Received
Trade discounts are to be adjusted to purchases where as cash discounts are to be shown under other income.
Creation of GL master –Cash discount received other income (FS00)
Give the GL A/c no. :300101
Company code :AML
Select with template button
Give the GL account 300100 exchange gain
Company code :AML
Enter
Change short text and GL account long text to cash discount received.
Save
Assignment of account for automatic postings:
Path :SPRO-Financial accounting-Accounts receivable and Accounts payable-Business transactions-Out going payments-Out going payments global settings –Define accounts for cash discount taken. (Tr Code is OBXU)
Give the Chart of Accounts :AML
Enter
Save
Give the account no.300101 cash discount received
Save
Press enter to save in your request
Purchase invoice posting (F-43)
Document date :25.10.2008
Posting date :01.11.2008
Entry date :Today’s date
Type :KR
Company code :AML
Currency :INR
Posting key :31
Account :4200001
Enter
Amount :100000
Payment terms :Select AML1
Text :Purchase invoice posting
Enter
Ignore the warning message press enter
Posting key :40
Account no. :200120 Inventory raw material
Enter
Amount :*
Business area :AMLH
Text :+
From the menu select document –Simulate and Save
Go and see the vendor account (Transaction code is FBL1N):
Vendor account :4200001
Company code :AML
Select open item radio button
Select normal items check box
Execute
Form the menu select change layout button
Form the hidden fields column
Select current cash discount amount
Select amount in document currency under column-contain
Select left arrow or show selected fields button
Select copy button
Outgoing payment with clearing (F-53)
Document date :Today’s date
Type :KZ
Company code :AML
Clearing text :Out going payment
Account under bank data :200105 SBI current account
Business area :AMLH
Amount :97000
Text :out going payment
Account :Under open item selection 4200001
Select process open items button
Double click on payable amount :100000
From the menu select document Simulate
We get a message correct the marked line items.
Double click on blue font
Text enter :+
Save
Automatic payment program (APP)
System will -Check due dates
-Issue check
-Pass the enter and cleared party account
-Generate payment advance
- update check register
The check lot should be sequential –we are not programmer –system given payment program.
Check format and payment advice format
APP will be used by cash rich companies
They run weekly / for every 10 days /For every 15 days
At the time of APP run, we have to give bankwise ranking with available amounts.
SBI 1 1000000
IDBI 2 500000
ICICI 3 300000
It will issue checks from SBI upto 10 lakhs. Then afterwards it issued form IDBI upto 500000 – Then it goes to ICICI and issued up to 3000000
After run, it gives a proposal – In the proposal it shows for which parties for which bills from which bank it is going to issue to checks.
We can edit proposal By blocking some invoices for payment
Or
By charging bank
Due Party X Party Y
1 1
2 2
3 3
4 4
5 5
Black invoices 4,5 and make the payment for 1,2 and 3 use the fund for party bill payments.
System is issuing form SBI for party X 3 bills –party is having account in ICICI-Change bank from SBI to ICICI.
Setup payment methods for country for payment transactions
Path :SPRO –Financial accounting-Account receivable and account payable –Business transactions-Outgoing payments –Automatic outgoing payments -Payment method /Bank selection for payment program-Setup payment method per country for payment transactions
Select new entries button
Country :IN
Payment method :B
Description :Check
Select outgoing payments radio button
Select check radio button
Document type for payment :KZ
Clearing document type :KZ
Payment medium program :RFFOUS_C
Name of print date set :LIST1S
Save
Press enter to save in your request
Setup payment methods per company code for payment transactions:
Same path
Select new entries button
Paying company code :AML
Payment method :B
Minimum amount :10
Maximum amount :9999999999
Select payment per due day check box
Select from data button
From for the payment medium: F110_PRENUM_CHECK
Drawer on the form : for Aravind Mills Limited
Authorized signatory
Save
Press enter to save in your request
Setup all company codes for payment transactions:
Same path
Select new entries button
Company code :AML
Paying company code :AML
Separate payment per business area check box
Out going payment with cash discount from : Bank interest rate 1.5% per month
18% per annum
Payment term:
If we make the payment within 30 days we get -1% cash discount
Due within 60 days
System will payment 60 days since discount is less than bank interest rate.
Within 30 days :Interest for month 1.5
Within 60 days :Interest for month 1.5+1.5
Payment terms:
If we make the payment within 30 days we get 2% cash discount.
Due with in 60 days
System will within 30 days since discount more than bank interest rate.
Maximum cash discount:
Payment term:
If we make the payment within 30 days we get 1% cash discount. Due within 60 days.
Though we are not entitled, system claims 1% cash discount and make the balance payment only even if it is paid with 60 days.
Special GL transaction to be paid under vendors : Select A (Advances)
Save
Press enter to save in your request
Setup paying company codes for payment transactions:
Same path
Select new entries button
Paying company code :AML
Select forms button
From for the payment advise F110_D_AVIS
Select sender details button
Text ID :Select ST (ST stands for Text)
Letter header :F_0001_HEADER
Footer :F_0001_FOOTER
Sender :F_0001_SENDER
Save and Press enter to save in your request
Creation of sequential check lots (FCHI)
Paying company code :AML
House bank :SBI
Account ID :SBI1
Select change button
Select create button
Lot number :2
Check number :800001
To :801000
Deselect non-sequential check box
Short information :SBI
Purchase date :Today’s
Enter and save
Assign payment methods in vendor master:
Path :Accounting-Financial accounting –Accounts payable-Master records –Maintain centrally-Change (XK02)
Give the vendor no. :4200001
Company code :AML
Select payment transaction check box under company code data
Enter
Payment methods :Select ‘B’
Payment block :If we don’t want to make the payment to this party in this
run, select -Skip account
Alternative payee :We have purchased from Birla Chemicals Limtied –BCL has to make the payment to party XYZ –BCL instructs us to make the payment to XYZ-in alternative payee give XYZ no. when we run APP ,check will be in the name of XYZ and party clearing will be BCL
House bank :BCL in having account in ICICI –It instructs us to issue check from ICICI only – We give house bank ICICI- check we issued only form ICICI.
Individual payment :When we run APP, it will issue one check only for all the bills due –some parties ask us to issue separate check for each bill. Select individual payment check box.
Separate check will be issued for each bill.
Select save button or Ctrl+S
