About Payment Limits

Sage 300 ERP

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About Payment Limits

The A/P Control Payments screen lets you set a maximum that you can pay for an invoice when using the Create Payment Batch screen to generate a payment batch.

Accounts Payable applies the payment limit in Payment Entry and when creating payment batches, as follows:

For Payment and Apply Document transactions you enter in Payment Entry, if you apply an invoice for which a payment limit exists, Accounts Payable displays a reduced applied amount that observes the payment limit. It also warns you that a payment limit exists for the invoice. You can enter a larger amount, if you want to override the payment limit.
For Prepayment transactions in Payment Entry, when a payment limit is applied depends on whether you are matching the prepayment to a PO number, order number, or document number:
- If you select Document Number in the Apply By field, Accounts Payable reduces the amount consistent with the payment limit, warns you about the payment limit, and lets you edit the applied amount, as for Payment and Apply Document transactions.
- If you select PO Number or Order Number in the Apply By field, you do not receive a warning when you apply an amount.
  The specified PO number or order number can be billed using more than one invoice, and each invoice can have its own payment limit. Therefore, when you post the prepayment, Accounts Payable applies the payment limits of all invoices that use the PO or order number, and reduces each payment, as necessary.
When generating a batch of payments using the Create Payment Batch screen, Accounts Payable pays the invoice only up to the amount permitted by the payment limit.

If a payment limit causes an invoice to be only partially paid, Accounts Payable uses zero as the discount taken, even if a discount is available, deferring the discount until the invoice is fully paid.

If you want to override the payment amount or the discount amount calculated by Accounts Payable, you can edit the payment batch in Payment Entry, provided you selected the option to allow edit of system batches (on the A/P Options screen).