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 Promises to Pay

Definition

Documents a customer’s agreement to pay an invoice. Each promise to pay is assigned to exactly one invoice and there can only be one promise to pay for each invoice that is not confirmed.

If you configure your collection strategy accordingly, you can use the promise to pay as a criterion for creating the worklist.

Structure

The promise to pay has, for example, the following attributes:

Currency

The currency of the promise to pay is the currency of the invoice.

State

The state documents whether the customer has kept their promise by paying the outstanding amount by the agreed date. The state is the result of the Valuation of the Promise to Pay .

Level

The level documents the number of the promises not kept for an invoice.

Example Example

Example 1: There is a promise to pay with level 1 for an invoice. The promise has the state Open , Partially Kept, or Broken . A new promise is submitted for this invoice. The old promise is confirmed and the new promise receives level 2.

Example 2: There is a promise to pay with level 1 with state Open for an invoice. The customer withdraws their promise. He later submits another promise to pay for the invoice. The new promise has level 2.

Example 3: There is a promise to pay with level 1 for an invoice. The promise was given for a partial amount of the invoice and has state Kept . The customer submits a promise to pay for the residual amount. The new promise has level 1.

End of the example.

Status

If a promise to pay has the system status Open or In Process , processes in accounting that affect the invoice are updated in the promise to pay (see also Process Integration with Accounts Receivable Accounting ). The system confirms the promise to pay in the following cases:

  • The promise to pay is withdrawn.

  • A new promise to pay is issued for the invoice.

  • Program FDM_P2P_AUTO_CONFIRM confirms the evaluated promise if the invoice is cleared and the clearing has taken place by the number of days you specified (see also Confirming Promises to Pay Automatically ).