Enter Customer Payment Posting Control Information

Explanation

The Enter Customer Payment Posting Control Information activity is used for entering posting control information related to the entry of customer payment transactions.

The following Posting Types and Control Types are used in the Customer Payment process. The information can be used as a guideline when setting up the posting control in a company at system start up. For further information on Posting Control in Financials, see the process Set up Financial Basics.

Existing Posting Types in Customer Payment

Existing Control Types

Allowed Combinations of Posting Type Control Type

Note: for control type AC2, pre-posting is not available for Code part A.

Connection between Posting Types and System Events

• PP1 Description of use: Customer Payment and Supplier Payment and Acknowledge Supplier Payment Orders, create payment and Customer Check, Cash Check. This posting type is thus used for both customer and supplier cash transactions. This posting type is used in order to allocate the right cash account to payment transactions.

Debit or credit posting: When it is a customer payment it will be a debit posting, and credit for suppliers.

• PP3 Description of use: Customer Payment. This posting type allocates the proper account for disbursed discount, when receiving a customer payment.

Debit or credit posting: Since it reduces the amount received, it will be a debit posting.

• PP4 Description of use: Supplier Payment, Acknowledge Supplier Payment Orders, create payment and Customer Payment. When some kind of fee was charged for the payment, either from the bank or any other payment institution, it will be posted to the correct account according to this posting type.

Debit or credit posting: It will be posted as a cost on the debit side, no matter if it is a customer or supplier payment.

• PP6 Description of use: Customer Payment. In case the customer is given discount and the VAT is supposed to be reduced accordingly, this posting type will ensure the proper account.

Debit or credit posting: Since VAT for customer invoices normally is posted as credits, this reduction must be made as a debit.

• PP8 Description of use: Customer Payment. When the customer pays unspecified items or just in advance, that payment on account will be posted according to this posting type.

Debit or credit posting: The claim is reduced, "too much", so that a debt is almost created. These payments are posted as credits.

• PP10 Description of use: Customer Payment. When receiving an unspecified payment, that means both customer and invoice id is unknown, this posting type will post it to the proper account.

Debit or credit posting: Normally a credit posting.

• PP11 Description of use: Mixed Payment and Supplier Payment and Customer Payment. If there is an outstanding amount after having ticked off all customer or supplier payments or other payments if it is a mixed payment, the rest can be posted according to this posting type.

Debit or credit posting: It depends on the rest amount.

• PP12 Description of use: Supplier Payment, Acknowledge Supplier Payment Orders, create payment and Customer Payment. When the currency exchange rate is changed compared with the rate at the time of the invoice entry so that the net result is a currency loss. This posting type sets the proper account for that.

Debit or credit posting: The loss is treated on the debit side.

• PP13 Description of use: Supplier Payment, Acknowledge Supplier Payment Orders, create payment and Customer Payment. When the currency exchange rate is changed compared with the rate at the time of the invoice entry so that the net result is a currency gain. This posting type sets the proper account for that.

Debit or credit posting: The gain is posted on the credit side.

• PP19 Description of use: Customer Payment. When the VAT method in Company is set on "Payment", VAT will only be posted preliminary when doing the invoice entry. At the time for paying, the preliminary posting will be reversed and this posting type will allocate the proper account for VAT.

Debit or credit posting: Normal customer invoices will have a credit posting.

• PP24 Description of use: Customer BoE Transfer Proposals, right mouse button function Create BoE Transfer file and Mixed Payment, Acknowledge Customer BoE Transfer. When creating the transfer file, all postings are made automatically. It is still possible not to affect the primary cash account by using a transit account instead. This transit account will be reversed when the Bills are cashed in the Mixed Payment. Then the cash account will be used.

Debit or credit posting: This account will have as many debit as credit postings. When creating the BoE transfer file, the account is debited. When cashing the Bill, the account is credited to balance the debit of the cash account.

• PP25 Description of use: Customer BoE Transfer Proposals, right mouse button function Create BoE Transfer file, Customer Bills of Exchange right mouse button function Settle BoE and Mixed Payment, Acknowledge Customer BoE Transfer. When creating the transfer file, all postings are made automatically. If "Separate flow when cashing before due date" is specified instead of settling the Bill when the transfer file is created, this Customer BoE, cashed in advance account is used. When the Bill is later settled/cashed, this account is reversed.

Debit or credit posting: This account will have as many debit as credit postings. When creating the BoE Transfer file, the account is credited. When cashing the Bill, the account is debited.

• PP27 Description of use: Customer Bills of Exchange, Customer BoE Transfer Proposals and Mixed Payment, Cash Customer BoE. When the Customer Bill of Exchange is entered and saved, all matched invoices are closed and the new, open Bill is posted to this account which will represent a new, open ledger item instead of the invoices. When the Bill is included in a Customer BoE Transfer proposal, this account is reversed. If however, "Separate flow when cashing before due date" is specified, this account is reversed when the BoE Transfer proposal is acknowledged in Mixed Payments or when the BoE is settled in Customer Bills of Exchange.

Debit or credit posting: This account will have as many debit as credit postings. When entering the Bill, the account is debited. When the BoE Transfer proposal is created or when the BoE is Settled, the account is credited.

• PP28 Description of use: Customer Check and Check Cashing Proposals, right mouse button option Print Check Cashing Report. When the customer Check is entered and saved, all matched invoices are closed and the new, open Check is posted to this account which will represent a new, open ledger item instead of the invoices. When the Check is included in a Check Cashing report, or when the Check is Cashed in Customer Checks, Cash Check, this account is reversed.

Debit or credit posting: This account will have as many debit as credit postings. When entering the Check, the account is debited. When the Check Cashing report is created or when the Check is Cashed, the account is credited.

• PP31 Description of use: Customer Bills of Exchange and Customer Offset. When a customer Bill of Exchange is entered and saved, the remaining unmatched amounts are stored as a payment on account which is posted to this account.

Debit or credit posting: When entering the Bill, the account is credited. When offsetting the payment on account, the account is debited.

• PP32 Description of use: Customer Check and Customer Offset. When a customer Check is entered and saved, the remaining unmatched amounts are stored as a payment on account which is posted to this account.

Debit or credit posting: When entering the Bill, the account is credited. When offsetting the payment on account, the account is debited.

• PP34 Description of use: In all customer payment activities where you can write-off parts of invoices, the write-off amount is separately posted. In some countries, the VAT amount must be reduced correspondingly. This posting type gives the correct account for that.

Debit or credit posting: Since VAT was originally posted on the credit side for customer invoices, it will be reduced as a debit posting.

• PP35 Description of use: Check Cashing Proposals, right mouse button option Print Check Cashing Report and Mixed Payment, Acknowledge Customer Check Cashing. When creating the report, all postings are made automatically. It is still possible to not affect the primary cash account, by using a transit account instead. This transit account will be reversed when the Checks are cashed in the Mixed Payment. Then the cash account will be used.

Debit or credit posting: This account will have as many debit as credits postings. When creating the Check Cashing report, the account is debited. When cashing the Check, the account is credited in order to balance the debit of the cash account.

• PP36 Description of use: Mixed Payment, Customer Payment and Acknowledge Direct Debiting, Enter Acknowledgement. When the customer payment in advance is created, it will be posted according to this posting type.

Debit or credit posting: When the payment in advance is created, this account is credited. When the payment is offset or matched, this account is debited.

• PP38 Description of use: Mixed Payment, Customer Payment and Acknowledge Direct Debiting, Enter Acknowledgement. When the customer payment in advance is created, the specified Tax will be posted according to this posting type.

Debit or credit posting: When the payment in advance is created, this account is credited. When the payment is offset or matched, this account is debited.

• PP40 Description of use: Mixed Payment, Customer Payment and Acknowledge Direct Debiting, Enter Acknowledgement. When the customer payment in advance is created, the specified Tax will be posted according to this posting type. A contra account to PP38.

Debit or credit posting: When the payment in advance is created, this account is debited. When the payment is offset or matched, this account is credited.

• PP42 Description of use: Mixed Payment, Customer Payment and Acknowledge Direct Debiting. When a payment of a customer invoice attached to a deduction group is created, the deduction amount for each deduction rule is posted according to this posting type.

Debit or Credit posting: The deduction is posted on the debit side.

• PP43 Description of use: In all customer payment activities where you create a payment of a customer invoice attached to a deduction group, the deduction amount is separately posted. In some countries, the TAX amount must be reduced correspondingly. This posting type gives the correct account for that.

Debit or credit posting: Since TAX originally was posted on the credit side for customer invoices, it will be reduced as a debit posting.

• PP45 Description of use: Mixed Payment, Direct Cash Payment. When a transaction with Tax Direction "Disbursed" is posted, the TAX account will be affected automatically due to this posting type.

Debit or credit posting: Normally a credit posting.

• PP47 Description of use: Mixed Payment, Direct Cash Payment. When a transaction with Tax Direction "Received" and a Tax Code set up as Tax Type "Calculated" is posted, the TAX account will be affected automatically due to this posting type. This posting type counter-posts PP46.

Debit or credit posting: Normally a credit posting.

• PP60 Description of use: Customer Payment and Acknowledge customer Payment Orders, Mixed Payment.  When the preliminary tax amount is changed at the time of payment, the tax difference will be posted to the account specified in this posting type. This is applicable only for tax codes with the Payment method, where the real tax transaction is created at the time of payment.

• PP61 Description of use: Customer Payment,Customer Offset , Netting, Acknowledge customer Payment Orders, Mixed Payment.  When the tax currency exchange rate is different to the invoice currency exchange rate at the time of payment, such that the net result is a realized currency loss, this posting type will define the correct account to which the loss is posted. This is applicable for tax codes with the Payment method, where the real tax transaction is created at the time of payment.

Debit or credit posting: The loss is posted on the debit side.

• PP62 Description of use: Customer Payment, Customer Offset and Acknowledge customer Payment Orders, Mixed Payment.  When the Tax currency exchange rate is different to the invoice currency exchange rate at the time of the invoice entry, such that the net result is a realized currency gain, the posting type will define the correct account to which the gain is posted. This is applicable for tax codes with the Payment method, where the real tax transaction is created at the time of payment.

Debit or credit posting: The gain is posted on the credit side.

• PP63 Description of use: Customer Payment, Customer Offset, Acknowledge customer Payment Orders, and Mixed Payment. 

PP63 will be used when the customer has withheld tax at payment. The tax that has been withheld will reduce the payment amount on an invoice during customer payment.  

Debit or credit posting: The gain is posted on the credit side.

PP64 Description of use: Customer Payment Proposals, Customer Bills of Exchange. When the customer bill of exchange is endorsed, the endorsed amount will be posted using this posting type.

Debit or credit posting: It is a credit posting when endorsing is done.

PP65 Description of use: Customer Payment Proposals, Customer Bills of Exchange. When the customer bill of exchange is cashed before the due date, any discounting fee applicable will be posted using this posting type.

Debit or credit posting: It is a debit posting when a discount fee is applied. 

Customer Payment

• PP1 Description of use: Customer Payment. This posting type is used in order to allocate the right cash account to payment transactions.

Debit or credit posting: When it is a customer payment it will be a debit posting.

• PP3 Description of use: Customer Payment. This posting type allocates the proper account for disbursed discount, when receiving a customer payment.

Debit or credit posting: Since it reduces the amount received, it will be a debit posting.

• PP4 Description of use: Customer Payment. When some kind of fee was charged for the payment, either from the bank or any other payment institution, it will be posted to the correct account according to this posting type.

Debit or credit posting: It will be posted as a cost on the debit side.

• PP6 Description of use: Customer Payment. In case the customer is given discount and the VAT is supposed to be reduced accordingly, this posting type will ensure the proper account.

Debit or credit posting: Since VAT for customer invoices normally is posted as credits, this reduction must be made as a debit.

• PP8 Description of use: Customer Payment. When the customer pays unspecified items or just in advance, that payment on account will be posted according to this posting type.

Debit or credit posting: The claim is reduced, "too much", so that a debt is almost created. These payments are posted as credits.

• PP10 Description of use: Customer Payment. When receiving an unspecified payment, that means both customer and invoice id is unknown, this posting type will post it to the proper account.

Debit or credit posting: Normally a credit posting.

• PP11 Description of use: Mixed Payment. If there is an outstanding amount after having ticked off all customer payments, the rest can be posted according to this posting type.

Debit or credit posting: It depends on the rest amount. Is it a positive amount, it will be posted as a credit.

• PP12 Description of use: Customer Payment. This occurs when the currency exchange rate is changed compared with the rate at the time of the invoice entry so that the net result is a currency loss. This posting type sets the proper account for that.

Debit or credit posting: The loss is treated on the debit side.

• PP13 Description of use: Customer Payment. This occurs when the currency exchange rate is changed compared with the rate at the time of the invoice entry so that the net result is a currency gain. This posting type sets the proper account for that.

Debit or credit posting: The gain is posted on the credit side.

• PP19 Description of use: Customer Payment. When the VAT method in Enterprise/Company is set on "Payment", VAT will only be posted preliminary when doing the invoice entry. At the time for paying, the preliminary posting will be reversed and this posting type will allocate the proper account for VAT.

Debit or credit posting: Normal customer invoices will have a credit posting.

Prerequisites

This activity requires that a company has been created and that the chart of accounts has been defined.

System Effects

The posting control information entered will be used when processing transactions in IFS/Financials.

Window

Posting Control

Related Window Descriptions

Posting Control
Posting Control Details

Procedure

How to enter Posting control Information is explained in the process Define Financial Basics, Set up Basic Data Accounting Rules, the Modify Rules section.