AUTOMATIC PAYMENT PROGRAM

Using the automatic payment program we can configure the system

To print the checks, payment advices and payment summery for the

due invoices of the due vendors.

1000 vendors

200 vendors have become due as on the date of executing the program

Xyz vendor . For this vendor 25 invoices due

Only 10 invoices due

In this case the system prints checks only for these ten invoices only

We can configure the different payment methods like check, bank transfer, wire

Transfer etc.
 Paying company codes and sending company codes

Company code Making the payment to the vendors of company code2

Sending company code

Paying company code

The system clears the line items

Of the vendors in this company
Code.
In the above case the inter company transactions are generated as follows
In the sending company code: paying company code a/c dr
to bank

In the paying company code: vendors a/c a/c dr

to sending company code
 Phases in the execution of automatic payment program

There are four phases in the execution of automatic payment program.

1. Parameters

1. proposal

1. program

1. Print
1. parameters: in this phase the user enters the selection criteria such as

company codes, payment methods, next payment run date

and vendor number range to considered in the payment run

2. Proposal : based on the parameters entered, the system identifies the

vendors who have become due as on the date of executing

the program and for every vendor, if identifies only those invoices

which have become due. This is called proposal. We can edit

the proposal and we can display the proposal. In the editing

function we can change the payment method, house banks

and account id etc. we can block a invoice for payment also

3. program: once the proposal is verified and authorized, the user executes the

the payment program. As result, the following accounting functions

are effected.
a. All the vendor due line items for which the checks have printed are
cleared
b. The vendor reconciliation accounts are updated
c. The bank accounts are update
d. the check register is updated
e. the vendor account balances are updated
f. the payment documents are generated( the accounting entries are posted

4. print: in this phase the system prints the checks, payment advices and payment
summery