The Customer Payment process is used for carrying out automatic customer payments to the customer's account. The process starts with generating a customer payment proposal i.e. a direct debiting proposal or a repayment proposal based on, for example payment date interval, currency, customers to be covered and payment method. It is possible to select specific invoices and include credit invoices and utilize cash discount. Selection can be made using a number of terms. There is also possibility to generate an empty proposal and enter invoices manually. A customer payment proposal is acknowledged and a payment order is created with an output file or using another media type depending on the payment format. If for some reason a payment order must be deleted, this can be handled. Payments are created within the system when acknowledging a customer payment, i.e. when the payments have been implemented adhering to documentation received from the payment institutes.
There are also functions within the process that handles payments in advance, offsets between debit and credit invoices, between payments on account and invoices and against parked payments. The offset process does not cause any cash flows in the cash accounts and the total amount must always be equaling to zero.
Before you start entering information check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Accounts Payable process.