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Period Option in Method of Payment

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Posted on by Vishal Agarwal

Hi Everyone,

Can anyone please help me in exploring the Period option available in Accounts payable>Payment Setup>Method of Payment>Period Field.

There are various options in it like, Invoice , Total, Date and Week so all are working as expected but while assigning Total option and creating a payment proposal system is not consolidating all the invoices for same vendor.

So can anyone help me how this works? How does Invoice option work in Method of Payment.

Thanks any little help would be highly appreciated.

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Ties Philippi 960 on at

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Hi Vishal,

The total option only consolidates the payments if the identifying parts of the payment are equal.

In general this means that most transactions will be grouped, however if some specific fields differ, like payment ID or payment references (don't remember the exact fields though), then those payment lines can fall out of the grouping.

Best regards,

Ties

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Satish Panwar 14,671 Moderator on at

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Hi Vishal,

Also make sure your invoices have the method of payment that has option setup as "Invoice". If you just create one after the invoices are created, it won't work.

Suggest that you create MOP (Total), then create invoices, use that MOP and then try to pay those invoices via payment proposal.

Thanks,

Satish Panwar

Please help verify answer(s) if they guide you in right direction so other community members can also benefit from your question with verified answer.

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Ludwig Reinhard Microsoft Employee on at

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Hello Vishal,

Most of the time I see people using the total option that summarizes payments for a specific date.

At the end of the day, you have to check with your bank whether they can or cannot process the payment file that is generated with this selection option.

The Invoice option is also something that I have seen a couple of times and from an accounting perspective it seems to be superior to the total option because it can inherit information from the invoice into the payment and the bank settlement. Yet, this is only part of the story because you have to clarify with your bank whether they can process the payments individually on an invoice by invoice basis.

Also ask about extra costs that you bank might charge if you use the one or the other payment file generation option. Some banks make a difference here in regards to the fees that you have to pay them.

Best regards,

Ludwig

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Rakesh Jaybhaye 66 on at

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Use the "Summarized payment date" to consolidate all invoices into one payment line. This option is given in the Advanced parameter section on the Payment proposal screen.

Regards,

Rakesh Jaybahye - Senior Finance Consultant

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saurabh bharti 15,039 Moderator on at

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It depends on few other factors

All invoices should have same method of payments

All invoices should have same vendor bank account, even if it has blank it will create different lines

also it depends what payment date while running proposal is slected, sometimes if due date is having some other data not within payment date, it might create other paymnet line

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