Selecting Items to be Paid: 

Use

The time at which an item is paid depends on several factors:

·        Whether it is a payable or a receivable

With payables, the items selected are those which:

Taking the grace period into account, achieve a higher cash discount if paid in the current payment run than if paid in the following run. You can limit the selection of items further via the minimum cash discount percentage rate.

Would be overdue in the following payment run (after allowing for the grace period).

A special rule applies for invoice-related credit memos: The item is always due together with the invoice it is linked to.

All other open items are paid in the next payment run.

For receivables, the payment program always pays soon enough to secure the highest possible cash discount. The payment is made with the first payment run that is carried out on or after the due date of the first cash discount term.

·        Which strategy you use to decide between cash discount payments and net payments.

·        Whether you make bill of exchange payments before the due date. Read the topics on bills of exchange.