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Procedure documentationCreating Outgoing Payments Locate this document in the navigation structure

Procedure

  1. From the SAP Business One Main Menu, choose   Banking   Outgoing Payments   Outgoing Payments  .

    The Outgoing Payments window appears.

  2. Select whether to create the outgoing payment for a vendor (default), customer, or account.

  3. Specify the required data. If you selected Vendor, you can create the outgoing payments either by basing them on specific documents or without basing them on any invoice.

  4. On the toolbar, choose Payment Means (Payment Means).

    The Payment Means window opens.

  5. Specify details for the payment means of the outgoing payment and choose OK.

  6. To add the outgoing payment document, choose Add.

Result

An appropriate journal entry is created.

If the means of payment was a check, the relevant check is created and can be:

  • Viewed in the Checks for Payment window (  Banking   Outgoing Payments   Checks for Payment  )

  • Printed from the Checks for Payment window and the Document Printing function (  Banking   Document Printing  )

Note Note

If the outgoing payment was created for a vendor for whom you defined a payment-consolidating business partner (  Business Partners   Business Partner Master Data   Accounting   General  ), the journal entry is recorded to the consolidating business partner.

End of the note.

If the outgoing payment was based on one or more specific invoices that were fully paid, the following is performed:

  • The transaction(s) of the paid invoice(s) and the transaction of the outgoing payment are reconciled automatically.

  • The Amount Due and the Paid/Credited fields in the paid invoice(s) are updated, and the status of the invoice(s) becomes Closed.

  • If the outgoing payment was created for a foreign-currency vendor, a transaction for exchange rate differences is created.

    Example Example

    The following presents the calculation method of tax deduction at source in Israeli companies, when creating an outgoing payment for a foreign-currency (or multi-currency) vendor who is subject to tax deduction at source, with the following exchange rate differences:

    • Exchange rate on day of A/P invoice: 1 FC = 5 LC, total amount of A/P invoice = 100 FC.

    • Exchange rate on day of outgoing payment: 1 FC = 4 LC, total amount of payment = 100 FC.

    • Tax deduction at source percentage = 10%.

    The transaction created as a result of creating the outgoing payment:

    Outgoing Payment Transaction

    G/L Acct/BP Code

    Debit

    Credit

    Vendor

    360 LC

    Cash Register

    360 LC

    Vendor

    40 LC

    Deduction at source of withholding tax

    40 LC

    Vendor

    100 LC

    Exchange Rate (Gain)

    100 LC
    End of the example.

Note Note

The behavior described above applies whether Split BP/Account in Journal Entry (in   Administration   System Initialization   Document Settings   Per Document   Outgoing Payments  ) is selected or not.

End of the note.

More Information

Outgoing Payments

Incoming Payments