Payment Methods FICO

What is the purpose of payment methods and where are

they stored?

A: Generally payment methods are one digit  alphanumeric identifiers that indicate the type of payments

made to vendors or received from customers.

There are many standard delivered SAP entries for each

country.

For example for the UK, the following are pre-delivered:-



The payment methods are stored in the vendor/customer master record as well on vendor/customer line items. (The default from master record can be changed during manual postings)

 Payment Methods - Setup 

Definition

The following table describes the fields that appear in the Payment Methods – Setup  window. To open this window from the SAP Business One Main Menu, choose Administration ® Setup® Banking ® Payment Methods.

Payment Methods - Setup

Field	Description/Activity
Payment Method Code, Description	Enter a code and relevant description for the payment method.
Key Code	Enter a key code to be used while the electronic file is produced.
Payment Types	Select whether the payment method refers to outgoing payments (for vendors) or incoming payments (for customers).
Payment Means	The available payment means depend on the selected payment type: ·         Outgoing – you can select check or bank transfer. ·         Incoming – only bank transfer payment mean is available.
House Bank	Choose  to open the Choose Bank window from which you can choose the required house bank. Once you made your choice, the bank details are displayed in the respective fields in the house bank section. Alternatively, you can click  in each field and choose the required value. For example, if you click  in the Country field, and choose the required country, and then choose , the Choose Bankwindow will display only the banks defined for the selected country by default. If you click  in the Bank field and then choose , theChoose Bank window will default to only the accounts defined for the selected bank, and so on.
Transaction Type	Enter a transaction type to be used when the electronic file is produced.
File Format	This field appears only when the Bank Transfer or Bill of Exchangepayment mean is selected. Choose  to open the List of File Formats window from which you can choose the required file format to be used when the electronic file is created for the bank.
Bank Charges	This field appears only when the selected payment mean is Bank Transfer. From the dropdown box, select the required bank charges allocation code. The system saves the selected code in the OPEX file that will be processed by the payment engine. When you create a new payment method, the defaulted code automatically appears in this field.
Group Invoices by Pay To Bank	This option is available only when the selected payment type isOutgoing. Select this checkbox so that the system groups the invoices for vendors with multiple Pay To addresses by Pay to Address.
Post to G/L Interim Account	Select this checkbox to record the transaction created by the payment to the interim account linked to the bank account (Administration ® Setup ® Banking ® House Bank Accounts) and not to the regular G/L account. This option is available only when the selected payment mean is Bank Transfer.
Check Address	Select this option to check whether the Bill to address of the business partner is fully defined (Name, Street/P.O. Box, City, Zip Code, Country). You can view the Bill to address by choosingBusiness Partners ® Business Partner Master Data ® Addressestab.
Check Bank Details	Select this option to check whether the business partner's bank details are entered in full (Bank and Account fields). You can view the bank details in Business Partners ®  Business Partner Master Data® Payment Terms tab.
Check Collection Authorization	Select this option to check whether the Collection Authorizationcheckbox is selected in Business Partners ® Business PartnerMaster Data ® Payment System tab. This checkbox appears only in customer records, and is therefore relevant for incoming payments only.
Foreign Payment Block	Select this option to block this payment method for business partners for whom the Bill to Country is different than the country defined for your company (Administration ® System Initialization ® CompanyDetails ® General tab).
Foreign Bank Block	Select this option to block this payment method for business partners for whom the bank country (Business Partners ® Business PartnerMaster Data ® Payment Terms tab) is different than the country defined for your company (Administration ® System Initialization ®Company Details ® General tab).
Currency Selection	You can restrict a payment method for certain currencies in which you pay or receive payments. Choose  to open the Currency Selection window, from which you can choose the currencies you would like to use in the current payment method. The selected currencies will apply to both the business partner's currency and the offsetting G/L account used in the journal entry created by the Payment Wizard.
Post Office Bank	Select this option to check whether the House Bank account selected in the payment method is defined as Post Office inAdministration ® Setup ® Banking ® Banks – Setup window.
Debit Memo	You can select this checkbox to create a corresponding indication in the OPEX file created by a Payment Wizard, which uses this payment method. The Debit Memo indication is required for the Payment Engine add-on.
Due Date in Checks	This section appears only if the selected payment mean is Check. Select one of the following options: ·         Date of Payment Run – If this option is selected, the due date of the payment will be similar to the posting date set inStep 2 – General Parameters of the Payment Wizard. ·         Due Date of Invoice - If this option is selected, the due date of the payment will be determined by the due date of the invoice in Step 6 – Recommendation Report of the Payment Wizard. If there is more than one invoice chosen in that window, then a weighted average will calculated in order to determine the overall due date of the payment. ·         Payment Term - If this option is selected, the due date of the payment will be determined according to the date of the payment run + a number of additional days according to the payment terms selected in the dropdown box displayed next to this field. The calculation of the payment's due date is done the same way as the due date is calculated in a standard Invoice.
Single Check Restrictions	This section appears only if the selected payment mean is Check: ·         Minimum Amount – You can define a minimum amount per check. This way, the payment wizard will not create checks of amount smaller than the amount defined here. ·         Maximum Amount - You can define a maximum amount per check. This way, the payment wizard will not create checks of amount bigger than the amount defined here. If these fields are blank, the check amount will not be restricted.

Country – Specific Fields

Chile, France, Italy, Spain & Portugal

Field	Description/Activity
Payment Means	For both payment types, Incoming and Outgoing, you can select  the payment mean Bill of Exchange.
Bill of Exchange Options	This section appears only if the selected payment mean is Bill of Exchange: ·         Agent Collection – Select this checkbox if you want only Invoices related to agents to be displayed in the Payment Wizard. This is relevant for incoming payments only. ·         Send for Acceptance – Select this checkbox to determine that all bills of exchange created automatically by the Payment Wizard are in a “Sent” status. This is relevant for incoming payments only ·         Group by Due Date – Select this checkbox if you want to sort the bills of exchange by their due date. ·         Deposit Norm – You can enter the deposit norm number here. This number will not affect the selection criteria and is displayed in the OPEX file only.

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