AP Payment Processing - Payment Schedules

• Methods of Payment Scheduling
• Automatic Payment Scheduling
• Semi-Automatic Payment Scheduling

The system uses payment schedules to pay invoices. There are four stages in the payment scheduling process:

Methods of Payment Scheduling

There are three methods of payment scheduling, each varies in the amount of manual user action versus automatic system action necessary to perform each of the four stages in the payment scheduling process. The three methods are automatic, semi-automatic and manual.

If you use the automatic method, only stage 4 requires manual action. If you use the semi-automatic method, stages 2 and 4 require manual action. If you use the manual method, all stages require manual action.

Your entry at Auto Payment on the Payment Code screen MGAL specifies either the automatic or semi-automatic method. Click the check box at Auto Payment to specify the automatic method. Leave Auto Payment blank to specify the semi-automatic method.

You can use the manual method by following the required steps, whether you select the automatic or semi-automatic payment method on the Payment Code screen MGAL. See Manual Payment Scheduling MGGB for the required steps.

All three methods let you create system-generated payments or a payment run.

You can create these payments in base and foreign currency. You can also cancel a payment run request if you are using the semi-automatic approach.

When using ICA processing the creation and management of a Payment Schedule can be controlled by the use of a BTZ element. It is also possible to group ICA Elements and enter the group code on the payment schedule so that any due transactions are scheduled where their element is present within the group.

Both automatic and manual payment processing make use of the ICA element grouping capability.

User Defined Payment Schedules

Using a payment schedule, you can define a schedule header that creates an empty schedule. You can process the schedule overnight and the system retrieves transactions based upon their due date. If you elect to update the schedule manually, you can select which suppliers and transactions that you want to pay.

Automatic Payment Scheduling

You can only use the automatic payment scheduling method for suppliers set up for the automatic method. Enter Payment Code on the Supplier AP Controls screen MPBE.

Set Auto Payment to checked on the Payment Code MGAL to automatically schedule payments.

• Set up an optional non-fiscal calendar.
• Create an activity for the days on which you want payment runs, such as every Thursday.
• Apply the activity to the calendar.

4. Create a schedule, enter the optional calendar name in Calendar and enter the following processes on the Schedule screen MANN:

5. Identify the cheque numbers using the Cheque Numbers Update screen MGGF.

See Background Processing for more information about steps 4 and 5.

If you generate payments daily, you can incorporate all processes into one schedule.

Semi-automatic Payment Scheduling

You can only use the semi-automatic payment scheduling method for suppliers set up for the semi-automatic method. Enter the payment method in Payment Code on the Payment format of the Supplier AP Controls screen MPBE. You must leave Auto Payment blank on the Payment Code screen MGAL to use semi-automatic payment scheduling.

The semi-automatic payment method allows for more flexibility for maintaining cash flow. The system automatically produces a list of transactions to be paid. However, you must manually specify which transactions to pay and which transactions not to pay. You can specify for the system to pay all transactions by clicking Trans | Rest Printed on the Schedule Supplier Transactions screen MGGD. Once you have designated each transaction, the status of the payment schedule changes to update complete. You must manually request payment of the schedule by clicking the Due button for the system to execute the various processes. You can submit processes GHC and GIA manually or by using a schedule. The system must allocate cheque numbers before you can submit processes GHO and GHS.

• Set up an optional non-fiscal calendar.
• Create an activity for the days on which you want payment runs.
• Apply the activity to the calendar.
• Create a schedule, enter the calendar name in Calendar and enter the following processes on the Schedule screen MANN:

5. Change the transaction amount to be paid or deselect the transaction from payment using the Schedule Supplier Transactions screen MGGD.
6. Delete or add suppliers to the schedule if necessary using the Schedule Supplier screen MGGC.
7. Request the payment run using the Request Payment Run screen MGGG.
8. Submit process GHC on the command line to create payment transactions. Use the Multi Company Parameters screen MPA2 to create the payment transactions.
9. Submit process GIA or GIB on the command line to create payments. The system assigns a sequential audit number to each payment.
10. Identify the printed cheque numbers. If paying by cheque, use the Cheque Numbers Update screen MGGF.
11. Submit process GHO on the command line to replace the internal audit numbers with the cheque numbers.
12. Submit process GHS on the command line to produce a payment register report.

You can create a schedule for processes GIA and GHO and attach it to a calendar to automate the cycle. However, doing so could extend the schedule process time if this schedule is part of your nightly processing.

Resetting Payment Schedule Status

If it is necessary to recreate cheques and payments when submitting process GIA/GIB the payment status of the cheque or payment must be reset to Payment Processing Complete. If the status of the cheque is Payment Production Complete or Complete Awaiting Deletion, use the Payment | Reset function from the Schedule List screen MGGA.

See also

AP Payment Processing