Payment Proposal vs Invoice Settlement

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The two process are confusing aside from minor form feature and extra column from the other. Are there specific rules when to use what?

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Ludwig Reinhard Microsoft Employee on at

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Hi Jonathan,

the payment proposal that you can create in a vendor payment journal simply selects those invoices that you want to have paid - based on the search criteria that you entered when creating the proposal such as for example, due date, currency, etc.

When you create a payment proposal, the invoices that are selected for payment are marked for settlement.

You can check which invoices were selected for payment and settlement by opening the settlement form simply by selecting function-settlement functionality and saying that the selected settled transactions shall not be removed. The 'mark' checkbox indicates which invoices are selected for settlement.

If you want to do the settlement manually you can also do that later on. Simply create a manual vendor payment. Later on when the payment is made you can then do the settlement manually from the vendor record by making use of the open vendor transaction form. If you select the invoice and the payment made and select 'update', then Settlement occurs, which can of course also be reversed if required.

Hope this helps,

Ludwig

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Hi Ludwig,

Thank you for the response, the process breakdown could be more clearer.

My take is, the payment proposal provide a space to review and cancel a payment when company default. However in a practice when a) payment made immediately b) there is fund visibility, then recording of payment can be done directly as settlement?

'If you want to do the settlement manually you can also do that later on. Simply create a manual vendor payment. Later on when the payment is made you can then do the settlement manually from the vendor record by making use of the open vendor transaction form. If you select the invoice and the payment made and select 'update', then Settlement occurs, which can of course also be reversed if required.'

After posting a payment proposal I'm not able to locate open vendor transaction.

MS Guide:

Click Accounts payable > Common > Vendors > All vendors. Select a vendor account. On the Action Pane, click Transactions, and then click Open.

Cheers,

Jonathan

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Ludwig Reinhard Microsoft Employee on at

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Hello Jonathan,

Reviewing and cancelling a payment might sometimes be necessary for example if your bank does not accept the payment for whatever reason. In this case you need to be able making adjustments without reversing the full payment run. Whether those adjustment are allowed and what adjustments can be done depend, however, on a couple of things, such as the method of payment and their parameter setup, journal restrictions, your role, etc.

Payments and settled invoices can - once posted - be identified in the tranaction list by referrring to the last settlement voucher field that I would always personalize to the overview grid. This field shows you - for simple payments - what invoice has been settled with which invoice. Please note that this does not work for cases where an invoice is settled with a lot of partial payments. In the latter case you can use for example make use of the history tab, which shows you the invoice information for a payment that has been made.

Hope this helps,

Ludwig

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Ashok Bishnoi 185 on at

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Dear Jonathan,

As Ludwig already explained nicely, I'll just add one point i.e. payment proposal reduces time for entering the payment. Users can easily define a criteria in the payment proposal form and system will auto mark the invoices for payment. For example, if users wants to pay all the open invoices due as on today, then system will auto create the payment vouchers in the payment journal for all the open invoices. This is handy when invoices to be paid are in numbers as you don't have to select the vendor and go to functions>>settlement and mark the invoices to be paid.

Thanks and regards,

Ashok Bishnoi

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Ashok Bishnoi 185 on at

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Hi Jonathan,

You can view open or unsettled transactions as mentioned below:

Click Accounts payable > Common > Vendors > All vendors > Invoice. Select a vendor account. On the Action Pane, go to the Invoice tab and then Click Settle Open transaction

and,also, you can view settled transactions as mentioned below:

Click Accounts payable > Common > Vendors > All vendors . Select a vendor account. On the Action Pane, go to the Invoice tab and then Click Closed transactions editing

Thanks and regards,

Ashok Bishnoi

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Community Member on at

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Jonathan -

The way we have broken it down in our organization is as follows:

Invoice Settlement method - When you know the vendor you are paying or have a handful of Invoices to pay.

Payment Proposal when you don't know who you are going to pay - but rather build the payment journal based on Invoice criteria (due date, payment method, Vendor group, etc.)

Hope this helps -

Tom.

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Hi Tom,

Appreciate the added details.

Cheers,

Jonathan

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