Payment
The Payment is the money going out. One document per payment to one payee. What it pays (open invoices, an advance, a prepayment on a purchase order, tax withheld earlier) is decided by the Transaction Journal. The Payment Through grid says which bank or cash account the money leaves from.
What it is for
The Payment reduces what you owe and records which account paid it. Pick the Transaction Journal first: its kind decides what the screen offers.
| The journal's kind | What the payment does | The Clearings grid holds |
|---|---|---|
Journal Indicator VI | Pays posted invoices | The payee's posted, unpaid invoice instalments up to the posting date, in the payment's currency, and open debit notes as negative lines |
Journal Indicator PP | A prepayment on purchase orders | The payee's purchase orders still open for prepayment |
Journal Indicator VD or VG | An advance (down payment) | One line per amount you type, each with its account |
Journal OAP | An on-account payment | Lines you type with their accounts |
Journal WHP | Pays tax withheld from earlier payments to the authority | The withholding lines to pay, with the authority's CPR number and date |
Journal COP | Pays out against a customer's open credit | The customer's open documents |
The journal also says whom you may pay (a vendor or another kind of payee), its default posting status, and whether payments must start from an approved Payment Request.
The rule people get wrong: the Payment Through lines must add up exactly to the Net Payable Amount, in the payment currency. The save says how much is still to pay or paid in excess.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Transaction no | The payment's number | Given on save |
| Posting Date | The date it posts | Locked once the document is created |
| Transaction Journal | The kind of payment | Changing it clears the payee and the request |
| Posting Status | Park or Posted | From the journal. Park does not post |
| External Reference, Internal Reference | Your references | Free text |
| Journal, Journal Indicator, Financial Year, Financial Period | Filled from the journal and the date | Read only |
| From Payment Request | Ticked when the payment comes from a request | Read only |
| Origin Number | The Payment Request being paid | Open only when the journal works through requests |
| Notes | Text for the payment | With Copy Header Text to Line on Payment in the setting, it fills the line texts of the voucher |
Controlling
| Field | What it means | What to put |
|---|---|---|
| Payee Entity | The kind of payee | Comes from the journal |
| Payee | Who is paid | Opens the right list for the payee entity. Required when the journal does not work through requests |
| Alternative Payee | Another party the money goes to | From the vendor's Alternative Payees. Clearing it makes Payee Name required |
| Payee Name | The name printed on the cheque | Filled from the payee |
Currency Information
Currency, Exchange Date and Exchange Rate of the payment. Only invoices in this currency are offered. Changing the rate recalculates the lines. After create they are locked, except the rate on an advance journal (VD).
Summary
Transaction Clearing Amount, Payment Fee, Adjustment Amount, Payable Amount, the withholding amounts, Rounding Difference and Net Payable Amount. All worked out. On an invoice journal, the auto-pay button asks for one Payment Amount and spreads it over the invoice lines in the order they are listed, settling each in full until the amount runs out.
Clearings grid
| Column | What it means | What to put |
|---|---|---|
| Selected | This line is being paid | Tick it |
| Schedule | The instalment of the invoice | From the payment term |
| Full Settle | Pay the whole balance | Ticking it fills the clearing amount with the balance |
| Origin Amount, Settled Amount, Balance Amount | The instalment, what is already paid, what is left | Read only |
| Transaction Clearing Amount | What this payment clears | Cannot exceed the balance. A debit note line is negative |
| Local Clearing Amount | The same in company currency | Worked out |
| Transaction, Origin | The invoice or memo | Read only |
| Account, Name | The account of the line | Typed on advance and on-account lines |
| Line Text | Text for the line | Shown when the setting requires line text on payments |
Hidden columns hold the invoice's own exchange rate and the Gain & Loss Amount: the difference between the invoice's rate and today's rate, posted as exchange gain or loss.
Adjustments grid
Shown for invoice and advance journals. Each line has an Adjustment Type (which fills the Account), Adjustment Amount, Currency, Exchange Rate, Reason and Line Text. Use it to write off a small difference.
Payment Fee grid
Bank charges on the payment: Payment fee, Currency, Exchange Rate, Fee Amount, Tax Zone, Tax Group, Tax Amount, Fee Amount Including Tax and Line Text. The Account Layer and Account come from the Payment Fee. A fee on the General Ledger layer goes to its account; a fee on the Vendor Ledger layer is charged to the vendor.
Withholdings grid
The tax you deduct and pay to the authority on the vendor's behalf. It fills by itself with the withholding tax codes ticked Default on the payee (or the alternative payee), at the rate valid on the posting date. Columns: Withholding Tax Code, Account, Tax Percentage, Calculated Amount, Withholding Manual, Withholding Amount, Line Text. Tick Withholding Manual to type the amount yourself.
Payment Through grid
| Column | What it means | What to put |
|---|---|---|
| Payment Method | Cash, bank, cheque... | A method of this company. Fills the Account and Bridging Posting from its default account |
| Account, Name | The bank or cash account paid from | Required |
| Bank | The bank | Optional |
| Instrument No, Instrument Date | Cheque number and date | With Bind Instrument Number in the setting, Instrument No opens the unused cheque numbers of the account's Instrument Number Setup when an existing payment is edited |
| Payment Amount | The amount from this account | The lines must total the Net Payable Amount |
| Modify Payee, Payee | Pay this line to another name | Open only when Modify Payee is ticked. The setting decides the default |
| Bridging Posting | The payment goes through a bridge account first | From the payment method |
| Deposit, Deposit Date, Cleared, Cleared Date | Bank clearing status | Locked when the line uses bridging posting |
| Line Text | Text | Free text |
Above the grid, Payment Currency says which currency the through lines are entered in, with Payable Amount, Entered Amount and Balance Amount.
Reverse Information
Reverse Voucher No, Reverse Date, Reverse Reason, Remarks, filled when you press Reverse.
How to configure it
- One payment journal per kind of payment. The journal decides the payee entity, the default posting status and whether payments must come from a request.
- In Account Payable Setting: line text required, copy notes to the lines, Modify Payee by default, Bind Instrument Number.
- On each Payment Method, one account marked Default.
- On each vendor, the withholding tax codes ticked Default.
Scenarios
- A distributor pays three bills of one supplier by one cheque. Invoice journal, pick the supplier: all open instalments appear. Tick the three, Full Settle, add a Payment Through line with the cheque method, account, cheque number and amount. Save as Posted.
- A services company deducts income tax on every vendor payment (section 153 in Pakistan). Tick the withholding tax code as Default on the vendor. Each payment fills the Withholdings grid; the vendor gets the net amount and the tax stays on the withholding account until paid over.
- The same company pays the withheld tax at month end. Use a
WHPjournal. Pick the withholding lines, type the CPR No and CPR Date the bank gives, pay from the bank. - A buyer pays 30 percent in advance on a purchase order. Use the prepayment journal (
PP), pick the purchase order, type the amount. - The bank deducts a charge. Add a Payment Fee line with the bank charge fee.
What it is connected to
- Vendor Invoice and Vendor Invoice Memo: what is cleared.
- Payment Request: the approved request a payment can be raised from.
- Payment Released: records when the cheque was handed over.
- Batch Posting posts parked payments.
- Bank reconciliation and transfers are in Cash and bank: Bank Reconciliation and Bank Transactions.
- What posts in Payables.
- Procure to pay - the purchase process this payment closes.
If something looks wrong
- "No clearings have been found." The payee has no posted, unpaid invoice in this currency dated on or before the posting date. Check the currency and that the invoices are Posted, not Park.
- "Net Payable Amount: ... has to be paid in Payment Through, entered: ..." The Payment Through lines do not add up. The message says how much is still to pay or paid in excess.
- "Net Payable Amount: ... cannot be negative." Debit notes and withholding exceed what is paid. Clear fewer debit notes.
- "Payments for Transaction Journal ... must be created against a Payment Request." This journal works through requests. Pick the request in Origin Number.
- "Clearings - Line ID: ... Clearing Amount: ... cannot exceed Balance Amount: ..." Someone has paid part of it since. Refresh and lower the amount.
- "Clearings - Line ID: ... - ... is already fully paid." Remove that line.
- "Clearings - Line ID: ... Clearing Amount: ... cannot exceed Payment Request Balance Amount: ..." More than the request still allows.
- "Payment Fee - Line ID : ... - Account is not configured on Payment Fee: ..." Put an account on the Payment Fee.
- "Payment Through - Line ID : ... - Payment Through Account cannot be empty" The payment method has no default account. Pick the account on the line.
- "Withholdings - Line ID : ... - Withholding Amount cannot be empty" A withholding line is zero. Remove it or type the amount with Withholding Manual.
- "Payment: ... cannot be reversed. Following Bank Transaction have been raised against it: ..." Reverse the bank transaction first.
- "Payment: ... cannot be reversed. Following Withholding Payment Request have been raised against it: ..." The tax withheld here has been requested for payment. Reverse that first.
- "Reverse Date: ... cannot be less than Posting Date: ..." Pick a later reverse date.