Supplier 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 supplier 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 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 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.


Enterprise—Supplier

Supplier Basic Data

Purpose: The purpose of this exercise is to show you how to set up payment information for a supplier. Supplier information is specified on several tabs. Some tabs are general and are used by all components, whereas others are component specific. When you open the Supplier window, you will see both the general tabs and one tab for each installed component. To send reports to suppliers it is required to set up AP supplier contact information in the Payment tab in the Supplier window.

Windows:
Supplier

  1. Open the Supplier window.
  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 correctly 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.
Other Payee Payment Advice Payment Priority Netting Allowed Blocked for Payment Payment Method Rule Id
Blanc Depending on the Format 1 Cleared Cleared Blanc
  1. Enter AP supplier contact details by selecting name of the AP supplier contact from the List of Values. Select output media Email.
  2. Save the information.
  3. In the Payment Methods table, create a new record. Use the List of Values to select the payment methods shown below. Create a new record for each item.
    Payment Method Description Default
    BGF Description for BGF is displayed Cleared
    CHK Description for CHK is displayed Cleared
    SUPBOE Description for SUPBOE is displayed Cleared
  4. Save your entries.
  5. Highlight the payment method BGF, right-click and then click Electronic Payment Addresses. In the Domestic Bank Address window, create a new record, and enter the following data.
    Payment Method Address Id Description Receivers Account Default Swift Code
    BGF is displayed 1 Bank Giro Address 1 55555 Selected 1234DE5678 
  6. Remaining field are left blank.
  7. Save your entries.

Note: The other payment methods do not require electronic payment addresses as those are "document" methods, checks and bills of exchange..


Accounting Rules

Posting Control

Purpose: The purpose of this exercise is to show you how to view the posting types used by the supplier 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 will be displayed. The posting types shown below are used for supplier payments. Verify that the following values are displayed if valid for your country.
Posting Type Description Code Part Name Control Type
PP1 Cash Transaction Account PC2, Cash Account
PP4 Payment Fee Account AC1, Fixed Value
PP2 Cash Discount Received Account AC1 Fixed Value
PP5 Tax Reduction for Received Cash Discount Account AC1 Fixed Value
PP7 Supplier Debts, Prepayment Account IC1 Supplier Group
PP9 Parked Payment Account AC1 Fixed Value
PP12/PP13 Currency Loss/Profit Account AC1 Fixed Value
PP16 Write-Off, Supplier Debts Account PC4 Write-Off Code
PP33 Tax Reduction for Write-Off Account PC4 Write-Off Code
PP18 Tax Received, Paid Account AC1 Fixed Value
PP23 Intercompany Due From Account AC1 Fixed Value
PP22 Intercompany Due To Account AC1 Fixed Value
PP21 Open Supplier Checks Account AC1 Fixed Value
PP30 Unmatched Supplier Checks Account IC1 Supplier Group
PP26 Open Supplier Bill of Exchange Account AC1 Fixed Value
PP29 Unmatched Supplier BoE Account IC1 Supplier Group
PP37 Supplier Debts, Payment in Advance Account AC1 Fixed Value
PP39 Input Tax, Payment in Advance Account AC1 Fixed Value
PP41 Contra Account, Input Tax, Payment in Advance Account AC1 Fixed Value
PP58 Stamp Duty Account AC1 Fixed Value
PP59 Stamp  Account AC1 Fixed Value


Tax Codes

Purpose: The purpose of this exercise is to show you how to set up tax codes. The tax code type that you use 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 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

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

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 the 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.