Payment Entry — Overview

Sage 300 ERP

Payment Entry — Overview

This topic contains an overview of the Payment Entry form. It describes the information you enter for each payment, and discusses how to print checks and advices.

You use the Payment Entry form to:

  • Create new batches of payments.
  • Enter payment information for checks you have already issued or for checks you want to print using Accounts Payable.
  • Apply existing documents (such as prepayments) to invoices.
  • Apply payments and partial payments to job-related invoices.
  • Edit system-generated payment batches.
  • Print checks.
  • Enter adjustments to invoices you are paying in the Payment Entry form, instead of using the Adjustment Entry form.

Types of payment entries

In most cases, a payment transaction is the information that Accounts Payable needs to print one check for a vendor and update the vendor account with the check information.

The Payment Entry form lets you enter four types of transactions:

Payment. Records a check to pay outstanding transactions. You can print the check from Payment Entry or enter the number of a previously written check.

The program displays the vendor's outstanding transactions (invoices, credit notes, debit notes, adjustments, and prepayments), and you select the transactions you want to partially or fully pay.

Prepayment. Records a check written as a prepayment. You can print the check from Payment Entry or enter the number of a previously written check.

Prepayments pay for a purchase before you have been invoiced for it. When you receive the invoice, you enter it using the Invoice Entry form, then post it. The prepayment will then be applied against the invoice.

Apply Document. Lets you apply one posted document against another (such as a prepayment against an invoice).

Miscellaneous Payment. Lets you issue a check to a person or company for which you have not set up a vendor record. You enter the distribution details of the purchase on the second tab of the Payment Entry form in the same way as you enter an invoice. The distributions debit the general ledger accounts you specify and credit the bank account.

For each type of transaction (except Apply Document) you can print checks immediately after entry or you can print them when you post the payment batch.

Restrictions on batch entries

The main restrictions on the entries in a single payment batch are these:

All checks in the batch must use the same bank account. (You specify the bank when you create the payment batch.)

All checks in the batch must be in the same currency and use the same rate of exchange between the bank currency and the functional (home) currency (if they are different).

As with the bank, you specify the batch currency and rate when you create the batch. (You can change the bank rate later, but not the check currency.)

Note that the currency you specify for a payment batch is the check currency — not the currency of the vendors paid in the batch. Accounts Payable lets you pay vendors in any currency you choose.

For example, you can have a functional currency of Canadian dollars, but create a payment batch using US dollars to pay vendors in Mexico (whose source currency is the peso).

Information entered with payments

For each batch, you enter:

  • Batch Number (supplied by the program).
  • Batch Date.
  • Batch Description (optional).
  • Bank Code.
  • Currency (of the payment batch in multicurrency ledgers).
  • Rate Date (date for establishing the rate of exchange between the payment currency and the functional currency if you have a multicurrency ledger).
  • Rate Type (such as spot rate, average rate, or weekly rate).
  • Bank Rate (set by the rate date and type, or overridden by the user).

You enter the following general payment information on the Payment Entry form:

  • Entry number (select only if editing; otherwise, Accounts Payable supplies the number).
  • Transaction Type (Payment, Prepayment, Apply Document, or Miscellaneous Payment).
  • Description.
  • Vendor (will not appear for miscellaneous payments).
  • Remit To (a primary remit-to location code will appear by default if the vendor has one; enter the payee name for miscellaneous payments).
  • Check Date (or Apply Date if applying a document).
  • Fiscal Year and Period (to which transaction posted).
  • Print Check (select if you want program to print it).
  • Check Number (if a payment or prepayment, you must enter a number if not printing the check from Accounts Payable).
  • Check Language (unless you are applying a document).
  • Apply Method (for job-related payments).
  • Optional Fields (if you use Transaction Analysis and Optional Field Creator).

You also enter the following detail information:

  • Document(s) to which transaction is applied.
  • If a payment, you select documents using one of two selection modes (Select mode or Direct mode).
  • If a prepayment, you specify a document number, purchase order number, or sales order number.
  • If applying a document, select the document being applied and the document to which it applies.
  • Distribution accounts (miscellaneous payment only).
  • Check amount.
  • If a payment, the total applied to documents.
  • If a prepayment, a single amount.
  • If a miscellaneous payment, the total of all distributions.
  • Activation date for prepayments (usually the date you expect the invoice).

A prepayment is not considered to be a credit to the vendor's account until the activation date. So, if you generate payments using Create Payment Batch before the activation date, the prepayment will not offset vendor invoices or debit notes.

Exchange rates

You enter rate information for the payment on the Exchange Rates tab of the form if either the bank or the vendor currency differs from the functional currency.

There are two sets of rates:

  • Bank rate — the rate of exchange between the check currency and the functional currency.
  • Vendor rate — the rate of exchange between the vendor's source currency and the functional currency.

You can also override the check amount if the bank currency differs from the vendor's. (This will, in turn, change the exchange rate.)

Related Topics