Dealing with Payment Methods

You must take the following information into account when dealing with payment methods in the Real Estate component.

Payment method assignment

The payment methods defined in Customizing of Financial Accounting can be assigned in the master data of a lease-out as well as in the master data of a business partner with customer account (tenant, subsidizer, payer).

If payment methods are assigned in lease-outs , the payment method is copied to the document during the debit position posting.

You do not have to the payment method in the customer master record of the business partner as well.

If no payment methods are assigned in lease-outs , the payment method should be maintained in the customer master record of the business partner .

Note Note

Incoming payment methods for lease-out partners are only required for automatic incoming payments (bank collection).

End of the note.

Settling credit memos and receivables

If you want to settle receivables with credit memos, the payment method for receivables (LO payment method ) and for credit memos ( credit memo payment method ) on the lease-out should be:

Both empty
Or both filled with the same payment method

The payment method for the credit memo should only be changed if no more receivables exist for the contract and the remaining credit memos are to be paid by means of another payment method.

Special Features of Collection Authorization

You execute collection authorization (debit memo) using the payment program of Financial Accounting .

You have to make the following settings to avoid incorrect postings:

Customer master record of partner management

Maintain the following in the master record of the master tenant with customer account or subsidizer with customer account:

Bank details

Indicator for Collection authorization

Payment method for collection

Note Note

If any additional lease-outs or business contacts exist for the business partner that cannot be settled by means of collection authorization, it is advisable to maintain the payment method for bank collection in the lease-outs involved, and not in the master records of the business partner.

End of the note.

FI Customizing payment program

The payment method for collection authorization (payment method "E" in the standard delivery) is set so that the " Collection authorization " indicator is checked.

Setting variants and sources of error

We recommend that you always make the above settings for collection authorization when customer incoming payments are settled using the collection payment method.

Different Financial Accounting Customizing settings and entries in RE may lead to posting errors. Check your settings based on this table.

Settings and effects on collection authorization:

LO payment method		Customer master record			Payment method settings for "collection" (FI Customizing)		What happens?
LO pmnt mthd (collect.)	Credit memo (out-going)	"Collect"pmnt mthd	Bank details	Collection authorizat. indicator	Bank details must exist	Check on collection authorizat. indicator
No pmnt mthd maintd	No pmnt mthd maintd	X	X	X	X	X	Procedure recommended by SAP with clearing of credit. Correct treatment of collection authorization; credit memos are cleared with receivables on collection.
No pmnt mthd maintd	Pmnt mthd maintd	X	X	X	X	X	Procedure recommended by SAP without clearing of credit. Correct treatment of collection authorization; credit memos are not cleared with receivables on collection. However credit can be paid out via the outgoing payment method.
" Collect. "pmnt mthd maintd	Pmnt mthd maintd	User-defined settings	X	X	X	X	Correct treatment of collection authorization; credit memos are not cleared with receivables on collection. However, credit can be paid via the outgoing payment method.
" Collect. "pmnt mthd maintd	User-defined settings	User-defined settings	X		X	X	Caution: Potential source of error System cannot carry out bank collection.
No pmnt mthd maintd	" Collect. "pmnt mthd maintd		X		X		Caution: Potential source of error Open items that have no payment method on customer account (e.g. transfer postings) are debited directly from bank account, even although Collection authorization indicator is not set in customer master records and in FI Customizing.

Special features of payer with customer account (alternative payer)

It is not possible at present to set the indicator " Collection authorization " for alternative payers (role of payer with customer account ), since the bank details are indicated in the document.

A new payment method for bank collection is thus required in payment method Customizing (FI) that does not require checking on the indicator.

In this case, this new payment method has to be assigned to all lease-outs with alternative payers (for which bank collection applies), which is contrary to the table above.

If bank collection is carried out, the new payment method has to be indicated in the parameters for the payment run, as well as the original payment method for bank collection .