Customer Payments—Basic Data and Requirements Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own customer to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data must be isolated in your own company.

Main Exercises


Enterprise—Company

Company Basic Data

Purpose: The purpose of this exercise is to show you how to use the parameters at the company level that control the customer 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. Make sure that the parameters are set correctly.  The correct settings depend on how you want the system to act when processing payment transactions for this company.  Following are the parameters to verify.
Discount Management Supplier Payment Proposal Parameters Posting Parameters
Check Boxes Based on Required Processes Check Boxes Based on Required Processes Net
  1. Checking the box for Suggest Discounts for Partial Payments will enable discounts when customer payments are partially paid.
  2. Checking the boxes for Supplier Payment Proposal Parameters will cause the parameters to become the default parameters when creating an automatic check run, bill of exchange, or supplier payment on file.  The defaults can be changed when creating an Automatic Supplier Payment Proposal.
  3. The Posting Parameter drop down box is used to determine the postings for currency differences, write-offs, discounts, and deductions.  When Net is selected for example, payments of foreign currency invoices are posted with the currency rate and the amounts as they were at the posting of the invoice.  Any currency rate difference is written off to a difference account.  It is impossible to see the true payment amount on the supplier account in the accounting currency.  If Gross is selected, the payment of foreign currency invoices are made using the currency rate as of the payment date so that both the foreign and accounting currency amounts can be seen on the supplier account.  Any currency rate difference is posted to both the supplier account and to the difference account.
  4. Enter Tolerance information following the example data below and save.
Percent Tolerance Amount Tolerance Tolerance Currency
5 10 Your own accounting currency is displayed
  1. Save the information.


Enterprise—Customer

Customer Basic Data

Purpose: The purpose of this exercise is to show you how 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 one tab for each installed component. To send reports to customers it is required to set up AR customer contact information in the Payment tab in the Customer window.

Windows:
Customer

  1. Open the Customer window and populate or query for your customer.
  2. Click the Comm. Method tab. Enter a name in the Name Field, select Email in the Comm Method field and enter an email address in the Value field
  3. Click the Payment tab. Make sure that the parameters are set as shown in the table below. In the Company field, your own company should appear. If not, create a new record, and enter the values shown below.
Percent Tolerance Amount Tolerance Tolerance Currency
10 20 Your own accounting currency is displayed.

Note: Customer tolerance limits have a higher priority than company values. The smallest percentage or amount will be the limit.

  1. Enter AR customer contact details by selecting name of the AR customer contact from the List of Values. Select output media Email.
  2. Save the information.
  3. Select any line in the Payment Methods table, and create a new record. Use the List of Values to select the payment method shown in the table below.
    Way of Payment Description Default
    EZEUR Description for EZEUR will be displayed Unchecked
  4. Save your entry.
  5. Hightlight the payment menthod you just entered, right-click and then click Electronic Payment Addresses. In the window that appears, create a new record, and enter the information shown in the table below.
    Payment Method Address Id Description Payee Bank Account Default Payee Bank Code
    EZEUR (displayed) 1 Dir Deb EZ addr 1 1234567 Checked 78055050
  6. Save your entry.

Note: Your customer is now set up and ready for Direct Debiting.


Accounting Rules

Posting Control

Purpose: The purpose of this exercise is to view the posting types used by the customer payment process.

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 are displayed. The posting types shown in the table below are the ones used for customer payments.
Posting Type Description Code Part Name Control Type
PP1 Cash Transaction Account PC2, Cash Account
PP4 Payment Fee Account AC1, Fixed Value
PP3 Cash Discount Disbursed Account AC1 Fixed Value
PP6 Tax Reduction for Disbursed Cash Discount Account AC1 Fixed Value
PP8 Customer Claims, Pre-Payment Account IC2 Customer Group
PP10 Parked Payment Account AC1 Fixed Value
PP11 Additional Payment Account AC1 Fixed Value
PP12/PP13 Currency Loss/Profit Account AC1 Fixed Value
PP17 Write-Off, Customer Claims Account PC4 Write-Off Code
PP34 Tax Reduction for Write-Off Account PC4 Write-Off Code
PP19 Tax Disbursed, Paid Account AC7 Tax Code
PP23 Intercompany Due From Account AC1 Fixed Value
PP22 Intercompany Due To Account AC1 Fixed Value
PP28 Open Customer Checks Account AC1 Fixed Value
PP32 Unmatched Customer Checks Account IC2 Customer Group
PP35 Customer Check, Interim Cash Account AC1 Fixed Value
PP27 Open Customer Bill of Exchange Account AC1 Fixed Value
PP31 Unmatched Customer BoE Account IC2 Customer Group
PP24 Customer BoE, Interim Cash Account AC1 Fixed Value
PP25 Customer BoE, Cashed in Advance Account AC1 Fixed Value
PP36 Customer Claims, Payment in Advance Account AC1 Fixed Value
PP38 Output Tax, Payment in Advance Account AC1 Fixed Value
PP40 Contra Account, Output Tax, Payment in Advance Account AC1 Fixed Value
PP42 Deduction Rule Account AC1 Fixed Value
PP43 Tax Reduction Disbursed, Deduction Account AC1 Fixed Value
PP64 Endorse Customer BoE Account AC1 Fixed Value
PP65 Customer BoE Early Settlement, Discounted Fee Account AC1 Fixed Value

Tax Codes

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

Windows:
Tax Codes

  1. Open the Tax Codes window.
  2. Populate the window. All existing tax codes will appear.
  3. If your company uses VAT, enter a new tax code with the information shown in the table below.
Tax Code Description Percentage Valid From Valid To Tax Type Tax Method Tax Received Tax Method Tax Disbursed Deductible %
Enter a code Enter a description 4 Beginning of the year End of the year Tax Invoice Entry Invoice Entry 100

    Alternatively, if your company uses U.S. sales and use tax, enter a new tax code with the information shown in the table below.

Tax Code Description Percentage Valid From Valid To Tax Type Tax Method Tax Received Tax Method Tax Disbursed Deductible %
Enter a code Enter a description 6 Beginning of the year End of the year Sales Tax Invoice Entry Invoice Entry 100

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.