Enter Supplier Payment Posting Control Information

Explanation

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

The following Posting Types and Control Types are used in the Supplier 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 Supplier Payment

Available 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 Supplier Check, Cash Checks. 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.

• PP2 Description of use: Supplier Payment and Acknowledge Supplier Payment Orders, create payment and Supplier Check, Cash Checks. This posting type help allocate the proper account for discounts that are received when paying the supplier.

Debit or credit posting: Since it reduces the amount to pay, it will be a credit posting.

• PP4 Description of use: Supplier Payment and 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.

• PP5 Description of use: Supplier Payment and Acknowledge Supplier Payment Orders, create payment and Supplier Check, Create Payment. In all mentioned cases it is possible to receive a discount. 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 originally was posted on the debit side for supplier invoices, it will be reduced as a credit posting.

• PP7 Description of use: Supplier Payment and Acknowledge Supplier Payment Orders, create payment. When paying the supplier unspecified items or just in advance, that payment on account will be posted according to this posting type.

Debit or credit posting: The debt is reduced "too much" so that an asset is created. These payments are posted as debits.

• PP9 Description of use: Supplier Payment and Acknowledge Supplier Payment Orders, create payment. When paying an unspecified supplier and unspecified invoice, the amount will be posted according to this posting type. It is similar to payment on account, it is added to the payment proposal or the manual payment.

Debit or credit posting: Normally a debit 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 and 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 and 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.

• PP18 Description of use: Supplier Payment and Acknowledge Supplier Payment Orders, create payment. When the VAT method in Enterprise/Company is set on "Payment", VAT will only be posted preliminary when doing the preliminary or direct 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 supplier invoices are debited.

• PP21 Description of use: Supplier Payment Orders, RMB Create Check Payment and Supplier Check, Cash Checks. When printing out the check, all postings are made automatically. It is still possible to not affect the cash account, via using a transit account instead. The transit account will be reversed when the function Cash Check is activated. Then the cash account will be used.

Debit or credit posting: This account will have as much debit postings as credit. When printing the check, the account is credited. When cashing the check, the account is debited in order to balance the credit of the cash account.

• PP26 Description of use: Supplier Bills of Exchange, Payment Orders for supplier and Mixed Payment, Cash Supplier BoE. When the supplier Bill of Exchange is entered and saved, or created from an Automatic Supplier Payment Order, 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 reported as cashed in Mixed Payments, Cash Supplier BoE, this account is reversed.

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

• PP29 Description of use: Supplier Bills of Exchange, Supplier Payment Orders and Supplier Offset. When a supplier Bill of Exchange is entered and saved, or created, the remaining unmatched amount is stored as a payment on account which is posted to this account.

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

• PP30 Description of use: Supplier Check, Payment Orders for supplier and Supplier Offset. When a supplier Check is entered and saved, or created, the remaining unmatched amount is stored as a payment on account which is posted to this account.

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

• PP33 Description of use: In all supplier 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 debit side for supplier invoices, it will be reduced as a credit posting.

• PP37 Description of use: Acknowledge Supplier Payment Orders, Enter Acknowledgement. When the supplier 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 debited. When the payment is offset or matched, this account is credited.

• PP39 Description of use: Acknowledge Supplier Payment Orders, Enter Acknowledgement. When the supplier 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 debited. When the payment is offset or matched, this account is credited.

• PP41 Description of use: Acknowledge Supplier Payment Orders, Enter Acknowledgement. When the supplier 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. A contra account to PP39.

• PP44 Description of use: Mixed Payment, Direct Cash Payment. When a transaction with Tax Direction "Received" is posted, the TAX account will be affected automatically due to this posting type.

Debit or credit posting: Normally a debit posting.

• PP46 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. PP47 is used to counter-post this posting type.

Debit or credit posting: Normally a debit posting.

PP58 Description of use: Supplier Payment Orders, Create Bill of Exchange and Supplier Bills of Exchange. When stamp duty is posted together with the bill of exchange postings, this posting type will be used to post the entry of the stamp duty.

Debit or credit posting: The payment of stamp duty will result in a debit posting.

PP59 Description of use: Supplier Payment Orders, Create Bill of Exchange and Supplier Bills of Exchange. When stamp duty is posted together with the bill of exchange postings, this posting type will be used to post the entry of the stamp duty.

Debit or credit posting: Credit posting. When stamp duty is paid, it decreases the Stamps asset.

PP60 Description of use: Customer Payment and Acknowledge Customer Payment Orders, create payment and  create Check payment, create Bill of Exchange and Mixed Payment. When the preliminary tax amount is changed at the time of payment, the tax difference will be posted to the account specified from 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 create Check payment, 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. This is applicable for the 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, create payment , create Check payment and Payment, 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, this posting type will define the correct account. 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.

Business Events in Payment

Supplier manual payments

• PP1 Description of use: Supplier 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, and credit for suppliers.

• PP2 Description of use: Supplier Payment. This posting type help allocate the proper account for discounts that are received when paying the supplier.

Debit or credit posting: Since it reduces the amount to pay, it will be a credit posting.

• PP4 Description of use: Supplier 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.

• PP5 Description of use: Supplier Payment. In the mentioned cases it is possible to receive a discount. 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 originally was posted on the debit side for supplier invoices, it will be reduced as a credit posting.

• PP7 Description of use: Supplier Payment. When paying the supplier unspecified items or just in advance, that payment on account will be posted according to this posting type.

Debit or credit posting: The debt is reduced "too much" so that an asset is created. These payments are posted as debits.

• PP11 Description of use: Supplier Payment. If there is an outstanding amount after having ticked off all supplier invoices, the rest amount 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 on the debit side.

PP12 Description of use: Supplier Paymentt. 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. 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.

• PP18 Description of use: Supplier Payment. When the VAT method in Enterprise/Company is set on "Payment", VAT will only be posted preliminary when doing the preliminary or direct 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 supplier invoices are debited.

Supplier Automatic Payment

• PP1 Description of use: Acknowledge Supplier Payment Orders, create payment. This posting type is used in order to allocate the right cash account to payment transactions.

Debit or credit posting: Credit postings for suppliers.

• PP2 Description of use: Acknowledge Supplier Payment Orders, create payment. This posting type help allocate the proper account for discounts that are used when paying the supplier.

Debit or credit posting: Since it reduces the amount to pay, it will be a credit posting.

• PP4 Description of use: Acknowledge Supplier Payment Orders, create 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.

• PP5 Description of use: Acknowledge Supplier Payment Orders, create payment. It is possible to use a discount when paying the invoice. 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 originally was posted on the debit side for supplier invoices, it will be reduced as a credit posting.

• PP7 Description of use: Acknowledge Supplier Payment Orders, create payment. When paying the supplier unspecified items or just in advance, that payment on account will be posted according to this posting type.

Debit or credit posting: The debt is reduced "too much" so that an asset is created. These payments are posted as debits.

• PP9 Description of use: Acknowledge Supplier Payment Orders, create payment. When paying an unspecified supplier and unspecified invoice, the amount will be posted according to this posting type. It is similar to payment on account, it is added to the payment proposal.

Debit or credit posting: Normally a debit posting.

• PP12 Description of use: Acknowledge Supplier Payment Orders, create payment. When the currency exchange rate is changed compared with the rate at the time of the invoice entry, the net result could be 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: Acknowledge Supplier Payment Orders, create 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.

• PP18 Description of use: Acknowledge Supplier Payment Orders, create 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 supplier invoices are debited.

Supplier Check Payment

• PP1 Description of use: Supplier Check, Cash Checks. This posting type is used in order to allocate the right cash account to payment transactions.

Debit or credit posting: Credit posting for suppliers.

• PP2 Description of use: Supplier Check, Cash Checks. This posting type help allocate the proper account for discounts that are used when paying the supplier.

Debit or credit posting: Since it reduces the amount to pay, it will be a credit posting.

• PP5 Description of use: Supplier Check, Create Payment. It is possible to receive a discount when paying the supplier. 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 originally was posted on the debit side for supplier invoices, it will be reduced as a credit posting.

• PP18 Description of use: Supplier Check, Create 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 supplier invoices are debited.

• PP21 Description of use: Supplier Payment Orders, RMB Create Check Payment and Supplier Check, Cash Checks. When printing out the check, all postings are made automatically. It is still possible to not affect the cash account, via using a transit account instead. The transit account will be reversed when the function Cash Check is activated. Then the cash account will be used.

Debit or credit posting: This account will have as much debit postings as credit. When printing the check, the account is credited. When cashing the check, the account is debited in order to balance the credit of the cash account.

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 Financials Basics, Set up Basic Data Accounting Rules, the Modify Rules section.