Most businesses receive their customer payments from their banking system. This can be done through a batch interface routine which operates on either telecommunications (on-line with the aid of a modem) or a bank tape method. Once your transactions reside in the interface file a facility exists in DC1 Financials enabling you to process the payments through the batch payments interface. This also allows you to handle automatic allocation of individual invoices.
Note: The interface file is SROKBP. For more information regarding the generation of this file, see About DC1 Financials interface environment.
In this routine you update the A/R and G/L with A/R payments transferred in batch. The system prints an A/R payment journal, showing details of the updated transactions. All amounts are shown both in transaction and system currency.
One payment is created per debtor number, payment date and transaction currency, and the document number is retrieved from the document number series defined for the document type. The system handles cash discount, exchange rate variances, and part settlements automatically.
On account payments are created if:
- the paid amount exceeds the documents to settle
- only the customer number is referred to
- the document number to settle cannot be found
After the update you can settle the open document manually.
If any payments are in error, they will be printed on an error journal and this journal will be moved to the routine Journal maintenance. Incorrect payments will stop the entire journal, and you will have to resume the update from the Journal maintenance routine, after corrections. For additional information, see About maintaining journals in error.
Apart from settling invoices automatically by using the automatic payments routine you can settle invoices manually. For additional information, see About entering A/R invoices and credit notes manually.
The debit advice procedure
Note: Only applicable if you are running the German application.
The debit advice procedure indicates the method of payment authorization that is used by banks to allow vendors to collect their payments directly from the customer’s account. Both methods imply that an agreement has been made between the customer and the supplier. The two methods are:
| Method | Description | Fixed system value |
|---|---|---|
| Debit advice mandate | The customer authorizes the bank to let the supplier collect money directly from the customer’s account. In this case, the customer’s money is non-refundable. | 04 |
| Collection authorization | The customer authorizes the bank to let the supplier collect money from the customer’s account, but in this case, the supplier is allowed to get a refund within sex weeks should the supplier have any concerns regarding the transaction. | 05 |
When a payment order is created in the A/R payment proposal routine, a work file is generated where the value in the Debit advice proc field on the A/R payment mode draft panel in the Business partner file indicates the type of payment method that should be used. The system retrieves the fixed values during the bank file creation.
If the bank file does not contain neither of the two fixed system values (04 or 05), then the file is rejected by the bank and the payment is not processed.
Note: The bank already holds the information from its account holders as to who shall be authorized to collect money from their account. The method information included in the bank file is only for verifying the authority type.
Accounting
Control accounting
The control account postings are always posted automatically by the system. They are based on pseudo accounting and the system will use the pseudo account defined for the document type. The default is XDDEB in combination with the A/R group of the debtor, which you enter on the A/R batch payments update panel.
Contra accounting
The contra account postings are done automatically by the system. The income part of the contra accounting is controlled by the document type, which you enter on the A/R batch payments update panel (see Receive an automatic A/R payment). The system will use a pseudo account defined for the document type. The variance element of the contra accounting, i.e., cash discounts or exchange rates are controlled by the document types; CAD, HID, and EXR.
Enquiries and printouts
- A/R transactions and balances – contain details and settlement information for the A/R transactions entered.
- G/L transaction detail – contains the G/L postings for all A/R transactions in batches that have not been closed.
- G/L transaction – contains the G/L postings for all A/R transactions that have updated the General Ledger. You can use the parameters document type and number for selection.
- A/R payment journal
- A/R transaction list – displays details for all A/R transactions that have been entered. A number of sequence and selection parameters are available, to give you that is relevant for your needs.
- G/L transaction list – displays details for the G/L posting of the A/R transactions. You can use the parameters document type and number for selection.
- A/R balance list – displays customer balances on different levels.