This document describes the AP payment cycle process within Iptor IP1. Multiple payment cycles can be set up whereby payment selection can be made by company, creditor type and currency with the option to select all companies, creditor types and currencies.

The payment cycle process can be setup in either of the following methods.

Method A – Generate bank report & finalise payment before bank acceptance 

1. Create payment cycle 
2. Generate cash requirements report either summary or detail
3. Review transactions for payment
4. Maintain any invoices/creditors for payment
5. Generate the bank report and Finalise payment cycle (update)

Method B – Generate bank report & finalise payment after bank acceptance 

Method B provides the option not to finalise the payment cycle until accepted by the bank, with the option to reject any payments and regenerate the bank payment report again before final posting. It also gives the option to cancel the cycle until the final posting.

1. Create payment cycle 
2. Generate cash requirements report either summary or detail
3. Review transactions for payment
4. Maintain any invoices/creditors for payment
5. Generate the bank report without updating AP balance; the payment cycle will be still in progress.
6. Regenerate the bank file
7. Reject any payments as required
8. Finalise or cancel the run

Business rules setup

The following business rules have to be setup to handle  AP payments process. Business rules for AP payments process must be setup with support from Iptor IP1 consultants. It is critical to understand the setting of control files and how it works. Control files must be setup correctly for the system to operate as intended. Any changes to the control files setup should be addressed cautiously and in consultation with Iptor IP1 consultants.

The purpose of this setup is to assist Iptor IP1 consultants and customers setup appropriate business rules at a customer site for the specified process.

Note	This document does not cover customised setup tasks of specific companies. Deviations from this setup should be covered by setup tasks written by individual companies.

Control file/number	Setup
AP-PYRN  Payment run number	Setup/maintain the value for AP payment run number in the control number field AP-PYRN.
********/CONO-GRP  Company group	Setup required company groups if the payment cycle is to be run by company groups (if not already setup).
********/CONO-BAS  Base currencies by company	Set-up the base and reporting currencies for each of the companies. If using company groups nominate the company groups for the companies.
TMSBK/EFT-DEF  EFT defaults for direct payments file	Details for the generation and storage of the output file for creditor payments must be defined in this control file.
TMSAP/BNK-PMTH Payment Cycle payment methods	Set the default GL bank account for the payment methods.
TMSAP/BNK-PMT1 Payment Cycle payment flow control	Setup/maintain the payment flow cycle for each of the payment method
TMSAP/BNK-PMT2 Payment Cycle payment programs	Setup/maintain the valid programs to be used for the printing and updating stages in the payment cycle.
TMSAP/BNK-PPRG Bank payment programs for electronic banking	Add the programs for electronic banking for the various payment methods. The programs determine the bank file format for EFT payments.
TMSAP/BNKA valid bank accounts by company	Enter all the valid General Ledger bank accounts by company.
TMSAP/AP-RESET Authorised user to reset payment cycle	Enter authorised users who can reset the ‘in use’ flag for the payment cycle.
TMSAP/PAYTERMS Creditor payment terms	For discounts on early payment, ensure the discount percentage, the number of days before due and the method (discount or rebate) is setup in this control file.
TMSAP/PAYTERMT Creditor payment terms discount by expense account	For discounts on early payments you can nominate GL expense accounts that can be included or excluded as required. For example if discount does not apply to freight, then exclude the GL account for the freight expense.

Procedure

Method A – Finalise payment before bank acceptance

Task	Steps
Create payments cycle	Create a payment cycle by selecting invoices due for payment.  (Accounts Payable>Payments Cycle>AP Multi-Cycle pay run). For details on creating a payment cycle see Work with Payment Cycle/Select invoices due Note. For EFT payment method ensure TMSBK/EFT-DEF contains the EFT defaults for the direct payments file. When creating a payment cycle you have the option to allow credits to be processed as a payment.
Generate cash requirements report	The report lists all transactions selected in the previous step of the payment cycle, which is due for payment. To generate Cash requirements report see Work with Payment Cycle/Produce cash requirements report Note. Depending on the set up in TMSAP/BNK-PMT1, report will be part of the Cycle Flow and therefore displayed as an option. You have the option to generate either a summary or a detailed report.
Review transactions for payment	Review the generated report (view spool file APW015P1) Check if changes are required. Specific invoices and creditors can be held/stopped from payment, refer to next section.
Maintain any invoices/credits for payment	You can maintain specific creditors and invoices for payment using maintenance option in APW005 Work with Payments Cycle. Select the relevant payment cycle. Select option = Maintenance. Enter the creditor to view the selected invoices. Selected invoices can be marked as Y – Transaction ready to be paid N – Transaction not due H – Transaction is held and cannot be paid until released. Individual creditors can be put on hold and new creditors can be added.
Finalise payment & generate bank report	Select option = Finalise in APW005 Work with Payments Cycle. This will update the payments and generate the bank report. Note If the payment method is cheques then select option = Print to print the remittance and cheques before finalise. Work flow cycle must be setup accordingly in control file TMSAP/BNK-PMT1. Payment cycle can be cancelled any time before finalise option is run.

Method B – Finalise payment after bank acceptance

Task	Steps
Create payments cycle	Create a payment cycle by selecting invoices due for payment.  (Accounts Payable>Payments Cycle>AP Multi-Cycle pay run). For details on creating a payment cycle see Work with Payment Cycle/Select invoices due Note. For EFT payment method ensure TMSBK/EFT-DEF contains the EFT defaults for the direct payments file. When creating a payment cycle you have the option to allow credits to be processed as a payment.
Generate cash requirements report	The report lists all transactions selected in the previous step of the payment cycle, which is due for payment. To generate Cash requirements report see Work with Payment Cycle/Produce cash requirements report Note. Depending on the set up in TMSAP/BNK-PMT1, report will be part of the Cycle Flow and therefore displayed as an option. You have the option to generate either a summary or a detailed report.
Review transactions for payment	Review the generated report (view spool file APW015P1) Check if changes are required. Specific invoices and creditors can be held/stopped from payment, refer to next section.
Maintain any invoices/credits for payment	You can maintain specific creditors and invoices for payment using maintenance option in APW005 Work with Payments Cycle. Select the relevant payment cycle. Select option = Maintenance. Enter the creditor to view the selected invoices. Selected invoices can be marked as Y – Transaction ready to be paid N – Transaction not due H – Transaction is held and cannot be paid until released. Individual creditors can be put on hold and new creditors can be added.
Generate bank report	Select option = Finalise in APW005 Work with Payments Cycle. This will generate the bank report and will update the payment transaction with status U= unapproved. The payment cycle will remain open and the invoices will still be outstanding and locked, so it can not be included in another cycle.
Reject any payment	Any failed transactions (rejected by the bank) can be rejected. On rejection the payment transaction status will be changed from U=approved to R=rejected. The rejected transaction will be removed from the workfile, so its not included in the regenerated bank report.
Regenerate bank report	Bank report can be regenerated after maintaining/rejecting any failed transactions for banks approval.
Finalise or cancel the run	This step is to acknowledge bank’s acceptance and update AP balance, unlock AP invoice to future payment and close the current cycle. Note: Payment cycle can be cancelled any time before finalise option is run.