The payment program identifies the open items and selects the items to be paid. Items are always paid as late as is possible without losing cash discount. You specify the exact time of payment when configuring the payment program.
The selection of open items is affected by several factors:
· The due date of the itemsis always determined via the baseline date and the terms of payment in the open items. The payment program calculates the cash discount periods and the due date for net payment.
· You can specify company code-specific grace periods for payables. See Company Code Specifications (2).
The grace period is added to the due date calculated. Consequently, the payment can be made at a later date.
· Aminimum cash discount percentage rate can be specified for outgoing payments per company code. See Company Code Specifications, (Outgoing payment with cash discount from).
If you cannot achieve the specified minimum percentage rate, you pay on the due date for net payment. You use the minimum cash discount percentage rate if the net term is more advantageous to you than a possible cash discount. If a minimum rate has not been specified, the program pays with the highest possible cash discount.
· You can define which special G/L transactions are to be taken into account. You do this by entering the special G/L code of the transaction in question when you make the company code specifications. See Company Code Specifications (1).
The payment program can make a down payment in response to a down payment request. The special G/L code for down payment requests must then be entered as the transaction for which payment is to be made. If you want to use the payment program to clear down payments, you will need to enter the codes used for this transaction.
· For each payment run you specify the date of the next payment run. The program uses this date to determine whether an item is to be included in the current or the next payment run.