Cash Book—Exercises

Main Exercises 

Payment – Cash Book Basic Data

Payment Formats per Company

Purpose: In this window you define which ones of all the predefined payment formats that should be available in your company.

Windows:
Payment Formats per Company

1. Open the Payment Formats per Company window and populate. In the window you see all the predefined payment formats available in the system. You see, for example, in which country a format is used and for which currency. The ones that are checked in the Used in Company column are the ones that are available in your company.
2. Uncheck the Used in Company box for all Payment Formats that you will not be using.
3. Verify that the following Payment Formats are checked as Used in Company. 

Payment Address Presentation

Purpose: Payment address presentation is used to define how electronic payment address data are presented in reports and windows.

Windows:
Payment Formats per Company

1. Open the Payment Formats per Company window.
2. Select the payment format SEPA, right-click and click Payment Formats to open the Payment Format window. The payment format  row will be selected.
3. Right-click and click Payment Address Presentation to open the Payment Address Presentation window. The payment address attributes for payment format SEPA  are displayed here.
4. Change the suggested value from All to Payment Transaction using the Use For list to define the presentation of payment address data for different windows of IFS Applications. 
5. Change the row numbers in the Presentation Row field as needed.
6. Click Save.
7. Check the result displayed in Result file  and change the attribute presentation if the result is not satisfactory.
8. Select Payment Advice using the Use For list to define another presentation for the payment format SEPA.
9. Remove the payment address attributes that you do not want to have printed on the payment advices and select the Print Payment Address Attribute Description check box for the remaining attributes.
10. Save and check the result.

Payment Type Groupings

Purpose: The payment type groups are used to group payment types with similar attributes. They can be then used in the bank reconciliation process.

Windows:
Payment Type Groupings

1. Open the Payment Type Groupings window.
2. Populate the window and view the payment type groupings already created by default.
3. Modify the payment types to be included in a payment type group if needed by editing the table.

Payment Methods

Purpose: In this window you may define your payment methods and connect each method to a payment format. You can also determined for which payment method you want to generate payment file trace information.

Windows:
Payment Methods

1. Open the Payment Methods window and populate. The window shows the payment methods that were defined when you created your company. Each method is connected to a payment format.
2. Click New and enter the following if it does not already exist and save.

Bank Transaction Code

Purpose: This data is used by the bank to identify the transaction type and will help the matching process when you reconcile your cash accounts with the bank file.  Each payment made and received in the system has a code attached. 

Windows:
Bank Transaction Codes

1. Open the Bank Transaction Codes window and populate.
2. Click New and enter the following data and save

Payment Institutes

Purpose: This data is used to define banks or other types of payment institutes that your company has business with. You also define the method of payment used for each institute, and eventually also specific data, like your company's customer ID at the institute, if required by the payment format. In this exercise we will add two banks and connect a Check payment method to each bank.

Windows:
Payment Institutes

1. Open the Payment Institutes window and populate.
2. Click New and enter the following data.

3. Save the information.
4. Highlight both new lines with INTERBANK and EUROBANK, right-click and click Payment Methods per Institute.
5. A new window, Payment Methods per Payment Institute will open populated in the header with the banks you just defined.
6. For each one of your banks, connect all three payment methods, i.e. click New and enter the following data and Save. Note: After entering an output file directory, an output file name is suggested which can be modified (e.g. Use company ID as the suffix). For payment methods connected to payment formats with output type XML neither an output file directory nor an output file name will be defined in payment methods per institute.

7. Highlight the row for Payment Method ISABEL, right-click and select Format Specific Info Per Institute.
8. Enter the following data and save.

9. Close the Format Specific Info Per Institute window.
10. Select the row for Payment Method LCRES , right-click and select Format Specific Info per Institute to open the Format Specific Info per Institute window.
11. Select the following information and save:

9. Close the Format Specific Info Per Institute window.
10. Highlight the row for Payment Method SEPA-CT, right-click and select Format Specific Info Per Institute.
11. Select template CORE using the List of Values (Identification/XML Schema is filled automatically then) and save the following data:

9. Close the Format Specific Info Per Institute and Payment Methods Per Institute windows
10. Select the payment institute row, right-click and select Payment Type Groupings per Payment Institute. You can then specify the payment type groups to be connected for the payment institute. Connect the default payment grouping CHECK to your payment institute EUROBANK.
11. Right-click and select Attributes for Auto Matching to specify attributes per payment group connect to the payment institute. Select the attributes you want to be reconciled when you match the cash book transactions and the bank statement transactions using automatic matching in the bank reconciliation process. Select Ledger Item Id and Bank Transaction Code as the attributes to be used for the payment type grouping for this institute EUROBANK.
12. Highlight the payment institute rows, right-click and select Value Date Calculation if you chose to use value date calculations for the payment institute.
13. Enter the following data and save.

Payment Date Administration

Purpose: The purpose of this exercise is to show you how to avoid that planned payment dates are set to dates when payment institutes are closed. In this exercise we will block next forthcoming New Year's Eve and New Year's Day, as well as all Sundays of the current year.

Windows:
Payment Institutes

1. Open the Payment Institutes window and populate.
2. Highlight the payment institutes, right-click, and select Payment Date Administration from the menu.
3. For each payment institute, enter the information from the table below.

3. Save this entry.
4. Right-click and select Generate Blocked Days in order to block Sundays as payment days for the current year. Enter the information from the table below.

5. Repopulate the window to view new blocked dates.

Note: When payment days for supplier invoices are calculated, new dates will appear based on the above entries.

Cash Account

Purpose: The cash accounts are used to structure financial transactions. This can be bank accounts, cash boxes, internal company bank accounts.  In this exercise you will enter three new bank accounts, one two at International Bank and one at European Bank.

Windows:
Cash Accounts

1. Open the Cash Accounts window and populate.
2. Click New and enter the following data:

Note: For cash accounts that have both an International Bank Account Number (IBAN) and a domestic bank account the  International Bank Account Number (IBAN)  should be entered in the Account Number filed and the domestic account number should be entered in the Account Reference field. 

3. Save the information.
4. Select the WB cash account, right-click, and click Cash Account Text. This would open the Cash Account Text window.
5. Enter a note in the Text field.
6. Repeat step 4 and step 5 for the rest of the cash accounts if applicable.
7. Save the information.

Note: If you add a Cash Account, you might need to add additional information in Posting Control. If Cash Account is used as a control type for the cash postings, you must add a line for the new cash account and connect it to an appropriate GL account.

Payment Instruction Codes

Purpose: The instruction codes are used to define how payments should be handled by the payment institute.  They can be used to validate payment addresses for specific payment format.

Windows:
Payment Instruction Codes

1. Open the Cash Accounts window and populate.
2. View the codes and create more if needed.

Payment – Payment Basic Data

Payment Series

Purpose: To create a new payment series to support other naming standards for series in a company. The new series CUPAY2 will be created in this exercise.

Windows:
Payment Series

1. Open the Payment Series window and populate.
2. Create a new record with the following data.

3. Save the information.

Note: This window displays the system-generated default payments Series made in the system. 

Payment Number Series

Purpose: To create the serial numbering of the new series CUPAY2.

Windows:
Payment Number Series

1. Open the Payment Number Series window and populate.
2. In the Series ID list, select your new series CUPAY2.
3. Highlight any line in the table and click New. Enter the following data:

4. Save the information.

Note: This window displays the system-generated numbering of the transaction series. The numbers can be changed, but due to business or legal requirements, the numbering should be in sequential order.

Payment Types

Purpose: To view the different types of payments that are managed in the system.

Windows:
Payment Types

1. Open the Payment Types window and populate to view system-created payment types.
2. To change the Series ID for payment types, move the cursor to Series ID and use List of Values to select any other payment series. The created CUPAY2 should now be visible in the list. Do not change anything in this window.

Note: This window displays the system generated default data for all types of payments made in the system. For example, the Customer Payments are initially set to have CUPAY series, but can be changed. 

Write-off Codes

Purpose: To create a new write-off code which can be used to post unpaid parts of invoices as expense or income.

Windows:
Write-off Codes

1. Open the Write-off Codes window.
2. Click New and enter the following information:

   Write-off Code	Description	Tax Reduction
   DE	Deductions from Supplier Invoices	Selected (in a VAT regime only)

3. Save the information.
4. Right-click and click Write-off Limit per User.
5. Create a new record for your User ID and enter write-off limit 10000.
6. Save the record.

Difference Codes

Purpose: To create a new difference code which can be used to specify the reason why a new difference item was created. Also to connect the difference code with a difference notice template in order to print a letter to send to the payer.

Windows:
Difference Codes

1. Open the Difference Codes window.
2. Click New and enter the following data:

   Difference Code	Description	Generate Difference Notice	Diff Notice Template
   RD	Return Debit Note	Selected	RD

3. Keeping the focus on the Diff Notice Template field, click Zoom. The Difference Notice Templates window appears.
4. Click New to create a new record.
5. Enter RD in the Template ID field and Return Debit Note in the Description field
6. Enter the following texts:

   Header	Footer
   The amount of <PA> was charged to our bank account on <PD> due to a cancelled direct debiting. We entered the following new item on your account:	Please inform us immediately on how the due amount shall be settled.

7. Save the record and close the Difference Notice Templates window to return to the Difference Codes window.
8. Save the record for the new difference code.

Note: In the printout of the difference notice the substitution variables <PA> and <PD> will be replaced by the payment amount and the payment date. The  main text entered in a difference notice template will only be printed when the payment includes matched items. 

Accounting Rules

Posting Control

Purpose: The purpose of this exercise is to view the posting types used in payment processes and to add posting control for our two new Cash Accounts.

Windows:
Posting Control

1. Open the Posting Control window.
2. Query for all posting types starting with PP%. All posting types used for both customer payments and supplier payments will be displayed.
3. Highlight posting type PP1, right-click and click Details, to see how the use of different Cash Accounts will result in posting to different GL Accounts.
4. Click New and enter the following data:

5. Save the information.
6. Search for posting types PP16 (Write-Off, Supplier Debts) and PP33 (Tax Reduction Received, Write off) and use the control type PC4 (Write off code) from today (or earlier).
7. Select posting type PP16 and Code Part Name Account, right-click and click Details. This opens the Posting Control Details window.
8. Create a new record for the new write-off code DE (Deductions from Supplier Invoices) and enter an account for deductions from supplier invoices (cost or revenue depending on your accounting principles).
9. Save the information.
10. In a VAT regime enter the same posting rule for PP33.
11. Search for posting types IP20 (Supplier Debts, Difference Item) and IP21 (Customer Claims, Difference Item) and ensure that they have the same set-up as IP1 and IP2.

Tax Codes

Purpose: The purpose of this exercise is to set up tax codes. The use of the different tax code types depends on whether the company uses U.S. sales tax or VAT.

Windows:
Tax Codes

1. Open the Tax Codes window.
2. Populate the window (F2). All existing tax codes are displayed.
3. If your company uses VAT, enter a new tax code with the following information.

If your company uses U.S. sales tax, enter a new tax code with the following information:

Note: If you add a tax code, you might need to add additional information in Posting Control. If Tax Code is used as a control type for the tax postings, you must add a line for the new tax code and connect it to an appropriate account.

Enterprise – Company

Company Basic Data

Purpose: The purpose of this exercise is to show how to use the parameters at the company level that control the payment process.

Windows:
Company

1. Open the Company window and query for your company.
2. Click the Payment tab. The parameters shown were created as default values when the company was created.
3. Enter the following limits for Payment Tolerance.

Note: The default invoice types for Customer Difference Item Invoice Type and Supplier Difference Item Invoice Type should be defined for the invoice series ID's connected.

Enterprise – Customer

Customer Basic Data

Purpose: The purpose of this exercise is to set up payment information for a customer. Customer information is specified in several tabs. Some tabs are general and are used by all components, and some are component specific. When you open the Customer window, you will see both the general tabs and the tabs per installed component.

Windows:
Customer

1. Open the Customer window.
2. Click the Payment tab and make sure that the parameters are set as the table below. Your own company should be displayed in the Company column. If not, click New and enter values as shown below.

3. Save the information.
4. In the Payment Methods table, click new and select your customer's default payment method from the list of values.
5. Save and highlight the payment method line.
6. Right-click and select Electronic Payment Addresses if it is available.  This process is only available for payment methods that require the system to know the customer's electronic payment information, such as for Direct Debiting, repayment methods (except repayments by check), BAI and LCRES.
7. Enter the required data and save.
8. If you work in a company with a VAT tax regime click the Invoice tab, here the customer must have a Tax Code defined. This tax code will be suggested when creating new difference items for mixed payments.

Note: Customer tolerance limits have higher priority than company values. Lowest amount of percentage and amount will be the limit.

Enterprise – Supplier

Supplier Basic Data

Purpose: The purpose of this exercise is to set up payment information for a supplier. Supplier information is specified in several tabs. Some tabs are general and are used by all components, and some are component specific. When you open the Supplier window, you will see both the general tabs and the tabs per installed component.

Windows:
Supplier

1. Open the Supplier window.
2. Click the Payment tab and make sure that the parameters are set correctly as the table below. Your own company should be displayed in the Company column. If not, click New and enter values as shown below.

3. Save the information.
4. In the Payment Methods table, click new and select your supplier's default payment method from the list of values.
5. Save and highlight the payment method line.
6. Right-click and select Electronic Payment Addresses if it is available.  This process is only available for payment methods requiring the supplier's electronic payment account information, such as for ISABEL and BGF.
7. Enter the required data and save.
8. If you work in a company with a VAT tax regime click the Invoice tab, click on the Tax Information sub tab, here the your supplier must have a  Tax Code defined. This tax code will be suggested when creating new difference items for mixed payments.