AR Payment Run

Accounts Receivable > Transaction Processing > AR Payment Run

AR Payment Run

You use this program to capture payments for multiple customers in one payment run.

Payment runs can be created by:

AR invoice release
Collector run
Post dated checks

Toolbar and menu

Field	Description
Options
Posting Period	Indicate the month to which you want to post transactions.
New	Add a new transaction.
Transaction by
AR invoice release	Post payments against customers' outstanding invoices.
Collector run	Post payments against customer invoices collected by a collector. These payments have been captured in the Collector Run Maintenance program.
Post dated checks	Allocate post dated checks to a payment in the payment run. Use the AR Post Dated Checks program to create and maintain post dated check information for the customer.
Payment run	Enter the payment run number if the Manual payment run numbering method is selected (Accounts Receivable Setup). If the Automatic payment run numbering method is selected, the payment run number will be created automatically.
Save	Save any changes made to the payment run.
Create	Add a new payment run using the filter by customer invoice, collector run or post dated checks. The window relevant to the transaction type will be displayed: AR Invoice Release - select the customers, salespersons and areas required Collector Run - enter an existing collector run number Post Dated Checks - select the customers for whom post dated checks need to be processed. Only checks with a check date that is on or before the payment run date will be displayed.
Authorize	Authorize payments before posting. Ensure that the Accounts Receivable Setup option is selected.
Cancel	Cancel the payment run and release the invoices. The payment run status is set to Cancelled.
Post	Post the transaction based on the Transaction by option. Only once the undistributed amount is zero, will this option become available.

Payment Options

Field

Description

Transaction options

Post to Cash Book in detail

Create payment transactions in the cash book.

This option is enabled under the following conditions:

The Cash Book module is installed
Integration to Cash Book is defined as Posted by cash journal (Accounts Receivable Setup)
The operator is allowed to override the integration level (i.e. from Posted by cash journal to Posted in detail) at the time of capturing payments (Accounts Receivable Setup).

Reset credit status

Reset the customer's credit status (AR Customer Maintenance) once you post the current payment.

Create discount notes

Create a discount credit or debit note for the settlement discount processed as part of the payment transaction.


	When you process a negative payment, a discount debit note is created.

This applies when the setup option: Print credit/debit notes for settlement discount is set to As required (Accounts Receivable Setup).

You cannot access this option if the activity: AR Option to write settlement discount notes is denied against your operator code (Operator Maintenance).

Collector run details

The collector run details are displayed in these fields when adding a collector run transaction.

Payment run details

Enter the relevant details if adding a payment run by AR Invoice Release or Post Dated Checks.

Bank

Indicates the bank into which the payment was received or will be deposited.

Currency

You can only enter a foreign currency if you selected the Foreign currency sales required option (Accounts Receivable Setup).

The bank's currency must match the customer's currency.

Total receipts

The total payment amount received from the multiple customers.

Payment date

Defaults to current system date but can be changed.

Reference

This reference is printed on the AR Cash Journal Report and is used against the Cash book Transaction when integration is set to detail and Payment type is Check or Line level.

Payment narration

Optionally enter a payment narration to print on the AR Cash journal.

Journal notation

Optionally enter a narration to print on the AR Cash journal.

Exchange rate details

Exchange rate method

This only applies when processing a payment for a foreign currency customer.

The exchange rate against a currency can only be changed if it is not fixed (Currencies).

Field

Description

Default rate for entire run

Define a default exchange rate for the entire payment.

You enter the exchange rate to use in the Exchange rate field below.

When you select this option, you can still change the rate for individual invoices in the Transactions to Pay pane if you are processing the payment manually.

When you apply an unapplied payment to an invoice, the system calculates the exchange variance between the invoice(s) and the payment and posts the variance gain/loss to the exchange variance account.

Original invoice rate

Process the payment at the same exchange rate that was used when the invoice was raised.

You typically select this option when there is no difference in the invoice and payment exchange rate (i.e. you do not expect an exchange rate gain/loss to occur). This can be changed against individual invoices in the Transactions to Pay pane.

When you apply an unapplied payment to an invoice and there is a variance between the invoice and payment exchange rates, the difference is posted to the bank control account. This is because the system is not expecting an exchange variance. You therefore need to transfer the amount to the appropriate ledger account manually.

Exchange rate

Enter the exchange rate to use for this payment.

This defaults to the rate defined for the currency in the currency table (Currencies).

Although the rate can be defined here, it can also be defined when you process the payment manually against each invoice.

If you do not change the rate against the invoice in the Transactions to Pay listview when processing the payment, then the rate entered in this field is used for the entire payment.

This field only applies when you select Default rate for entire run.

Exchange rate variance

Enter the General Ledger code to which exchange variances must be posted for the payment.

This defaults to the exchange rate variance account in your General Ledger Integration options (General Ledger Integration). If this is not defined, then the Currency variance account defined in the AR Currency Variance GL Interface program for the customer's branch is displayed.

The exchange rate variance is calculated as:

(Payment amount x Payment rate) - (Payment amount x Original Invoice rate).

The payment rate is either the rate defined on the Payment Options pane or the rate defined against the individual invoice selected for payment in the Transactions to Pay listview. The Original invoice rate is the rate used when the invoice was originally raised and is displayed in the Invoice Details pane.

This field only applies when processing a payment for a foreign currency customer.

Bank Deposit Details

This pane enables you to enter the details that will be printed on the bank deposit slip for customer payments.

These details only apply if you indicated that a bank deposit slip is required (Accounts Receivable Setup).

Field

Description

Bank deposit slip details

Bank

Indicate the bank into which the payment was received.

This defaults to the bank selected against the payment run details in the Payment Options pane and is not editable.

Account description

This indicates the description of the Bank entered.

Account number

This indicates the account number defined against the Bank entered.

Payment type

Indicate the payment method used.

Check

Indicate that the payment was made by check.

If you select this option then you can enter details of the drawer's name, bank and branch.

Cash

Indicate that the payment was received in cash.

Other

Indicate that the payment was made by a means other than cash or check (e.g. Bank draft).

Payment transactions made for Payment type: Other are not printed on the Bank deposit section of the AR Bank Deposit Slip.

This is because it is assumed that these payment types are non-monetary and are therefore not deposited into the bank. The transactions are, however, printed on the Office copy section of the AR Bank Deposit Slip to enable you to balance back to the AR Cash Journal Report.

Line level

Allocate different payment types at invoice level in the Transactions to Pay listview.

This will be the default payment type when creating a transaction type by Collector run.

Drawer's name

Enter the name of the drawer on the check.

This field only applies when the Payment type is Check.

Drawer's bank

Enter the bank on which the check was drawn.

This field only applies when the Payment type is Check.

Drawer's branch

Enter the bank branch on which the check was drawn.

This field only applies when the Payment type is Check.

Bank currency

The currency code of the Bank entered.

Bank charges amount

The amount of bank charges associated with the deposit.


	This amount can only be entered in the currency of the Bank.

This field is only enabled if the option: Enter bank charges in AR payments is selected against the selected Bank (Banks).

Bank exchange rate

The exchange rate to use for the bank charges.

This only applies when entering a Payment for a foreign currency customer and the rate for the currency is not set to fixed (Currencies).

Information

Payment information

This pane displays information relating to the transactions processed.

Field	Description
Payment run information
Status	The payment run status is displayed. The statuses include: New Open Authorized Posted.
Sum credits	Displays the accumulated credit invoice balance on the customer's account. This is added to the total received amount and distributed amount.
PD Checks amount	Sum of all the available PD checks allocated against the Payment run. This amount is added to the Total Received amount and Undistributed amount. The Post button will only be available once the undistributed amount is zero and the distributed amount equals the total receipts.

Customer Information

This pane displays information relating to the customer being processed.

This pane will dynamically change when selecting a customer in the Customer to Pay pane.

Field	Description
Customer details
Balance	The current balance.
Currency	Multiple currencies are not allowed against a payment run as this program is limited to a single exchange variance.
TPM	When processing a payment for a TPM customer, the outstanding invoice balance will be returned against the gross amount irrespective of the payment amount entered.

Invoice Filter

These options enable you to indicate which invoices you want to display in the Transactions to Pay listview.

This pane will only be editable when creating a payment run (status = new). You can include a customer invoice when in the payment run is in a status of open by using the Include function in the Transactions to Pay listview.

By default, all invoices excepting zero balance retained invoices are displayed in the Transactions to Pay listview. You can use the Filter Rows (CTRL+F) listview functionality to reduce the number of invoices displayed in the Transactions to Pay listview.

Field	Description
Include options
Include invoices	Indicate the invoices to display in the listview.
All invoices	Display all invoices, irrespective of ages or balances. When you select this option, you can use the Filter Rows (CTRL+F) listview functionality to further reduce the number of invoices loaded in the Transactions to Pay listview.
Selected invoices	Select this to indicate the invoices you want to display in the listview, based on age or balance.
Invoice age selection	This enables you to indicate the invoices you want to display based on their ages. This applies when you select the Selected invoices option.
Invoice balance selection
Zero balance invoices	Display invoices that became zero in or before the posting month.
Zero balance retained	Display retained invoices that have been zero for more than one month.

Transactions to Pay

Customers to Pay

The customers selected against the AR Invoice Release filter are displayed in this pane.

Field	Description
Recalc Total	Recalculate the total receipts amount to match the total payment amount in the Customers to Pay pane.
Payment amount	Enter the payment amount received from the customer.
Distributed amount	This amount dynamically changes when selecting invoices in the Transactions to Pay listview. The Post function is enabled when the payment amount against all customers is equal to the distributed amount and balances back to the Total receipts.

Field

Description

Recalc Total

Recalculate the total receipts amount to match the total payment amount in the Customers to Pay pane.

Payment amount

Enter the payment amount received from the customer.

Distributed amount

This amount dynamically changes when selecting invoices in the Transactions to Pay listview.

The Post function is enabled when the payment amount against all customers is equal to the distributed amount and balances back to the Total receipts.

Documents for customer

This pane enables you to allocate the payment to the appropriate invoices. You can do this manually by selecting the checkbox for the invoice and entering the gross amount, or you can select Automatic to pay all outstanding invoices for the customer automatically.

Only the invoices you selected to display in the Invoice Filter pane are displayed in the listview.

Field

Description

Automatic

Pay all outstanding invoices for the customer automatically (in the displayed sequence), until the Undistributed amount in the Information pane falls to zero.

Credit balance invoices are ignored.

Sum Credits

Accumulate all credit invoice balances on the customer's account and add them to the total payment amount to be distributed.

Re-establish

Re-enter details of an invoice that is no longer held on file. The necessary payments can then be entered against the invoice.

Unapplied Payment

Post a payment to the customer's account without allocating it to any invoices.

You would use this option if a customer has made a payment without indicating the invoices being paid, but you want to reflect the payment on the customer's account.

Unapplied payments can be manually allocated to invoices at a later stage.

Post Dated Check

Allocate a post dated check to the payment amount.

Undo Payments

Clear all invoices selected and payment information entered in the Transactions to Pay listview. This enables you to unapply all payments simultaneously. This function does not undo any re-established invoices or unapplied payments processed.

Recalc Amount

Recalculate the total net amount paid on invoices processed in the Transactions to Pay listview and automatically enter this amount in the Payment amount field on the Customers to Pay pane.

Include

Add invoices that were not included on the Transactions to Pay listview.

Column 1

You use the checkbox in this column to select the invoice to which you want to apply a payment amount.

This enables the relevant input fields for the line so you can manually enter the payment details for the invoice.

Removing the tick in this checkbox, undoes any information you entered for the line (i.e. it unapplies the payment).

Invoice

This indicates the invoice against which the payment must be processed.

Current balance

This indicates the current balance of the invoice. The Current balance and the original invoice value cannot both be zero.

Outstanding

This indicates the outstanding balance of the invoice. This is the difference between the Current balance and any settlement discount which applies to the invoice.

Gross amount

Enter the gross amount of the payment you want to apply to this invoice.

This amount must include settlement discount, trade promotions and withholding tax.

When you change the Gross amount, the Discount amount and the Tax amount (if applicable) are automatically recalculated.

For TPM customers, the gross amount is populated automatically.

Discount amount

This indicates the settlement discount amount applicable to the invoice.

This calculated automatically when paying the full invoice amount and the payment falls within the terms discount. No discount is calculated if the payment amount falls outside of the terms discount. In this case, the discount must be manually entered.

For non-TPM customers, the discount is only calculated if the total Payment amount/undistributed amount is greater than the Outstanding balance of the invoice.

For TPM customers, the Outstanding balance of the invoice is distributed regardless of the entered Payment amount/undistributed amount and the discount is therefore always calculated.

The Discount amount is calculated according to the AR Invoice Terms code (AR Invoice Terms) defined against the transaction and the options selected against the Calculation of terms discount option (Accounts Receivable Setup - Terms Discount tab).

The discount is based on the Gross payment amount, providing this is not greater than the Current balance (i.e. the customer is not overpaying the invoice). If the Gross payment is greater than the Current balance, then the discount is based on the Current balance amount.

When processing a partial payment, you must enter the discount amount manually and use the Calculate button at the Discount amount field to recalculate the Tax amount.


	When you change the Discount amount, the Tax amount is automatically recalculated if tax is applicable.

The discount amount is posted to the Discounts ledger account (General Ledger Integration - Receivables tab - see AR Payments Ledger Interface).

Tax amount

This is the tax portion of the settlement discount or the withholding tax amount. Use the tool tip to see what the tax amount column refers to.

Tax portion of discount

This only applies if the Request tax portion for invoice adjustments/discounts option (Accounts Receivable Setup - Tax tab) is enabled and there is a value in the Discount amount field.

If the Request tax portion for invoice adjustments/discounts option is not selected, then no tax on settlement discount can be apportioned.

The tax portion of the discount is calculated from the Default tax code (Accounts Receivable Setup - Tax tab) if this is not set to {none}.


	When processing a full payment, the Tax amount is automatically recalculated when you change the Gross amount or the Discount amount. No other fields are recalculated when you change the Tax amount. Withholding tax is not recalculated automatically.

If you set the Default tax code (Accounts Receivable Setup - Tax tab) to {none} then you need to manually enter the tax on settlement discount if required.

The Tax amount cannot be greater than the Discount amount.

Withholding tax

If you are using Withholding tax (Tax Options), you can enter the amount of withholding tax deducted by the customer.

If there is settlement discount on the invoice, then the program automatically calculates the discount amount for you. However, the system assumes that you will enter the withholding tax amount from the customer's remittance advice, so if you want to check the tax withheld by your customer, you need to calculate it manually.

The payment amount that you enter against the invoice must be equal to the invoice balance if the customer pays the invoice in full, otherwise it must be equal to the payment made against the invoice plus the withholding tax portion on that amount.

Reference/Notation

Optionally enter a reference or notation for the payment.

Exchange rate

This indicates the exchange rate to apply for the payment of the invoice and only applies to foreign currency customers.

You can change this rate if you selected the option: Default rate for entire run in the Payment Options pane and the rate is not fixed against the currency.

The exchange rate for each invoice is not displayed by default. It is only displayed once you select the invoice for payment. To display the exchange rate automatically, the program would have to calculate and reload each entry in the listview depending on the Exchange rate method you selected. This would affect performance when a large number of entries exist on file.

The exchange rates for an invoice are displayed in the Invoice Details pane.

Customer PO

This is the customer's purchase order number.

Invoice date

This is the date on which the invoice became due for payment.

Net amount

This is the net payment amount allocated to the invoice. This is the Gross amount less the Discount amount.

Balance amount

This indicates what the new invoice balance will be when the payment is posted.

Type

This indicates the invoice type.

Invoice Details

This displays details of the line currently highlighted in the Transactions to Pay listview.

Field	Description
Invoice	The original invoice number.
Original amount	The original amount of the invoice.
Date	The original date of the invoice.
Original terms	The original terms of the invoice.
Original discount	The original discount given for the invoice.
Customer PO	The customer's purchase order number.
Original invoice rate	The exchange rate at which the invoice was originally processed. This only applies to foreign currency customers.
Current currency rate	The currency rate being used against the company currency table.

Available Post Dated Checks

The post dated checks available for payment are displayed.

Once you have selected the check, the check amount will be added to the post dated checks amount. The post dated check is then moved to the Reserved Post Dated Checks pane within the Review pane and will no longer be available in the Available Post Dated Checks pane.

If the Allocate invoices to PD checks option has been selected in the Accounts Receivable Setup program, then the invoices selected at the time of adding the post dated check in the AR Post Dated Checks program will be selected for payment.

Reviews

A review of the transactions processed during the current run of the program is displayed.

Notes and warnings

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the Electronic Signatures program.

eSignature Transaction	Description
AR Payment posted	Controls access for posting customer payments in the Payments and Adjustments, AR Payments Import and AR Payment Run programs.
AR Adjustment posted	Controls access for adding adjustments in the Payments and Adjustments and AR Payment Run programs.
AR Miscellaneous receipt posted	Controls access for adding miscellaneous receipts in the Payments and Adjustments and AR Payment Run programs.

Duplicate payment runs

You can capture payment runs with the same invoices selected provided they have no payment allocated to them.

For example, invoices that have payments allocated to them in payment run 1 will not be available against payment run 2. If a payment is deselected against an invoice in payment run 1, it will become available in payment run 2.

Cash Book transactions

This applies to the Post to Cashbook in detail option in the Payment Options pane.

Payment entries are posted to Cash Book according to how you have configured the Accounts Receivable link to Cash Book (Accounts Receivable Setup) together with the payment type processed. AR Payments are created as deposits in the Cash Book, but AR Bank charges are created as withdrawals. This table indicates how the transactions are created.

Integration method	Local currency payment to local bank	Foreign currency payment to foreign or local bank
Posted in detail	Check transactions - a separate deposit transaction is created for each check payment	Same as for local.
	Cash transactions - a single deposit transaction is created for the total of the cash payments	Same as for local.
	Other transactions - a single deposit transaction is created for the total of the other payments	Other transactions - a separate deposit transaction is created for each other payment
	Bank charges - a separate withdrawal is created for each bank charge	Same as for local.
Posted by bank	Check transactions and Cash transactions - a single deposit transaction is created for the total of check + cash payments	Same as for local.
	Other transactions - a separate deposit transaction is created for each other payment	Same as for local.
	Bank charges - a separate withdrawal is created for each bank charge	Same as for local.
Posted by cash jnl (operator Allow overwrite branch not selected in Payments and Adjustments)	Check transactions and Cash transactions - a single deposit transaction is created for the total of check + cash payments	Same as for local.
	Other transactions - a single deposit transaction is created for other payments	Same as for local.
	Bank charges - a separate withdrawal is created for each bank charge	Same as for local.
Posted by cash jnl (operator Allow overwrite branch selected in Payments and Adjustments)	Check transactions - a separate deposit transaction is created for each check payment	Same as for local.
	Cash transactions - a single deposit transaction is created for the total of the cash payments	Same as for local.
	Other transactions - a single deposit transaction is created for the total of the other payments	Other transactions - a separate deposit transaction is created for each other payment
	Bank charges - a separate withdrawal is created for each bank charge	Same as for local.

Tax GL integration

If the setup option: Request tax portion for invoice adjustments/discounts is selected (Accounts Receivable Setup), and discount applies to a taxable invoice, then the tax portion of the discount is calculated according to the default tax code (Accounts Receivable Setup).
If the setup option: Request tax portion for invoice adjustments/discounts is selected (Accounts Receivable Setup) and Sales tax integration to general ledger is set to Branch level, then the tax portion of the discount is posted to the Adjustment value (tax) code (General Ledger Integration).
If the setup option: Request tax portion for invoice adjustments/discounts is selected (Accounts Receivable Setup) and Sales tax integration to general ledger is set to Tax code level (Tax Options), then:
- if the Sales tax ledger code against the tax code is not defined (Browse on Tax Codes), then the tax portion of the discount is posted to the Adjustment value (tax) code (General Ledger Integration).
- if the Sales tax ledger code against the tax code is defined (Browse on Tax Codes) but you did not select the option: Disburse tax portion to G/L code against tax code (Accounts Receivable Setup), then for adjustments, tax is posted to the Adjustment value (tax) code (General Ledger Integration) and for discounts, tax is posted to the GL account defined for Sales tax against the tax code (Browse on Tax Codes).
- if the Sales tax ledger code against the tax code is defined (Browse on Tax Codes) and you selected the option: Disburse tax portion to G/L code against tax code (Accounts Receivable Setup), then for both adjustments and discounts, tax is posted to the GL account defined for Sales tax against the tax code (Browse on Tax Codes).

Settlement discount

The settlement discount amount applicable to the invoice is calculated automatically when paying the full invoice amount and the payment falls within the terms discount. No discount is calculated if the payment amount falls outside of the terms discount. In this case, the discount must be manually entered.

When processing a partial payment, you must enter the discount amount manually and use the Calculate button at the Discount amount field to recalculate the Tax amount.


	When you change the Discount amount, the Tax amount is automatically recalculated if tax is applicable.

The discount amount is posted to the Discounts ledger account (General Ledger Integration).

Tax on discounts

Tax portion of discount

This only applies if the Request tax portion for invoice adjustments/discounts option (Accounts Receivable Setup) is enabled and there is a value in the Discount amount field.

If the Request tax portion for invoice adjustments/discounts option is not selected, then no tax on settlement discount can be apportioned.

The tax portion of the discount is calculated from the Default tax code (Accounts Receivable Setup) if this is not set to {none}.


	When processing a full payment, the Tax amount is automatically recalculated when you change the Gross amount or the Discount amount. No other fields are recalculated when you change the Tax amount. Withholding tax is not recalculated automatically.

If you set the Default tax code (Accounts Receivable Setup) to {none} then you need to manually enter the tax on settlement discount if required.

The Tax amount cannot be greater than the Discount amount.

Withholding tax

If you are using Withholding tax (Tax Options), you can enter the amount of withholding tax deducted by the customer.

If there is settlement discount on the invoice, then the program automatically calculates the discount amount for you. However, the system assumes that you will enter the withholding tax amount from the customer's remittance advice, so if you want to check the tax withheld by your customer, you need to calculate it manually.

The payment amount that you enter against the invoice must be equal to the invoice balance if the customer pays the invoice in full, otherwise it must be equal to the payment made against the invoice plus the withholding tax portion on that amount.