Payment Method

A payment method is a way customers pay you, and it names the accounts the money goes to. On a Collection, picking the method fills the account the collection is posted to.

Where

Accounts Receivable › Payment › Payment Method

Who uses it

Finance controller

When

At setup, and when a new bank account is opened

Needs first

The bank and cash accounts in the chart of accounts (General Ledger Account), the banks of Cash and bank (Bank, Bank Accounts)

What it is for

The customer carries a default payment method, which is copied to its invoices. On a collection, each line of the Collection Through tab names a payment method; the method's Default account is filled in as the line's account, and the line posts there.

Every field in plain words

General

Field	What it means	What to put
Payment Method	The method's code	Required. Must be unique in the company
Name	What it is called	Required. "Cheque", "Bank transfer, main bank"
Payment Type	The kind of payment	Stored only. Nothing acts on it
Required Instrument Number		Stored only. The instrument number on a collection is never made mandatory by this tick
Block	The method can no longer be picked	Tick to retire it

Accounts

At least one line is required.

Column	What it means	What to put
Account	The account money received by this method is posted to	Required on every line
Bank	The bank of that account	Picking a bank empties Account, so pick the bank first
Default	The account filled in on a collection	Only one line may be Default
Bridging Posting	The account is a holding account: money waits there until it reaches the bank	Unlocks Offset Account
Offset Account	The bank account the money moves to from the holding account	Used by Bank Transactions in Cash and bank, which picks up collections posted to the holding account and moves them here
Post Dated Cheque		Stored only. Nothing acts on it

Real Estate

Field	What it means
Required Tracking Number In Collection	A collection line with this method cannot be saved without a Tracking Number

How to configure it

• One method per bank account you collect into keeps the bank reconciliation simple.
• For cheques that are deposited and cleared later, tick Bridging Posting on a cheques-in-hand account and set the bank as Offset Account. On the collection, the Deposit and Cleared columns of a bridging line are locked; the move to the bank is made on Bank Transactions.
• Show the Tracking Number column on collections with Required Tracking Number In Collection on Account Receivable Setting; make it mandatory per method here.

Scenarios

• Cash. One line: the cash account, Default.
• Cheques deposited into one of two banks. Line 1: cheques in hand, Bridging Posting, Offset Account bank A, Default. Line 2: cheques in hand, Bridging Posting, Offset Account bank B.
• Instalment collections with receipt books. Tick Required Tracking Number In Collection and set up the receipt numbers on Tracking Number Setup.

What it is connected to

• Customer In Legal Entity and Customer Group carry the default method.
• Collection posts each Collection Through line to the method's account.
• Credit Area uses a method on balance lines.
• Bank Transactions - where collections made through a Bridging Posting line are cleared from the clearing account to the Offset Account.

If something looks wrong

• "Accounts Data cannot be Empty". Add at least one account line.
• "Accounts - Only one Account can be marked as default". Untick Default on all but one line.
• "Accounts - ...: Account cannot be empty". Every line needs an account.
• "Payment Method Cannot be Duplicate". The code exists in this company.
• "Collection Through - Line ID : ... - Collection Through Tracking Number cannot be empty" on a collection. This method requires a tracking number.