Processing Payment Orders 

Purpose

You can use this business process to process payment orders relating to the debit memo procedure and transfers in Contract Accounts Receivable and Payable (FI-CA). A payment order is created when the payment has been made but the clearing posting should only occur in the system when the payment appears on the account statement of your house bank.

With the creation of payment orders, any items open on the key date are displayed. If the execution date for a payment order is in the future, the open item is only cleared when payment has taken place. 

Prerequisites

There are open items requiring clearing in the customer account. The instruction to create payment orders is stored as a payment method in the customer's master data.

Process Flow

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       1.      Execute payment run

A payment run analyzes open items for customers by checking whether payments are due and whether they can be paid. The payment program creates a payment order and identifies the items to be paid so that payment is not possible by a repeated payment run and other clearing transactions, reversals, dunning, and calculation of interest on arrears cannot be performed on these items.

To postprocess the payment order, you can use the display, change, and reversal functions. Explicit deletion of payment orders is only useful if no forms or data media have been sent, or if they have been recalled.

       2.      Create payment media

In this step, payment media files are created that you then forward to the bank to cash the payment orders.

       3.      Check log files

The payment run creates a log containing the receivables paid together with the relevant details. The log also contains any receivables that were selected based on the payment run criteria but were not paid (exceptions).

       4.      Check payment run exceptions

You analyze any exceptions identified in the log check by drilling down to the detailed data. Depending on the type of exception, you can decide whether you remove the cause of the exception or whether you accept the exception as valid.

If you correct the causes for an exception, you have to restart this process from step 1 to pay the open items.

       5.      Process payment order lot from electronic account statement or bank file

The payment orders reported in the account statement are collected in a payment order lot (comparable to a payment lot). If the related open items were cleared when the payment order lot was posted, the payment order is marked as complete.

Result

The open items in the customer accounts are cleared. Up until the payment is cleared, you receive precise information about the open items on the key date.