The External Mixed Payment On File process is used to create payments out of electronic files received from various payment institutes. The external file is a bank statement of account, which includes an opening balance and closing balance. Each electronic file contains information on debit and credit payment transactions for a cash account and currency.
Payments included in payment files, which have an unstructured reference are matched by using identifiers. Various identifiers are available to analyze the content of the external file in order to find the information in IFS/Financials for the payment matching, such as customer invoices, customers and issued checks. Apart from transactions to be matched with information of accounts receivable, direct cash payments are automatically completed with a manual posting based on the identifier setup.
Message Codes are used to define the transaction type, e.g. Direct Cash Transaction, Cash Issued Check and Customer Payment. Depending on the selected transaction type, the message codes are connect with defined identifiers, e.g. invoice number for customer payment, payment document number for cash issued checks, etc. It is also possible to define posting rules per message code, e.g. posting on a defined account for direct cash transactions.
The external file can also include return debit notes for which the customer payment transaction have been already acknowledged earlier. For this return transaction a new difference item will be created in Accounts Receivable to reestablish the claim against the customer and to debit the company's bank account.
When the file is loaded, matching and checking can be performed. One load ID is handled as a whole, and if there is one erroneous transaction, the whole load ID is considered to be erroneous. Any errors encountered must be corrected. If the paid amount covers several installment lines, the installment identity is blank at the level of External Payment Details. However, at the level of External Payments Matching Details, the installment lines matched are shown with the used discounts, deductions and tolerances. The matching details include customer difference items to write off overpayments or underpayments within specified tolerances or of an exact amount.
When the whole load ID is complete, i.e., when every transaction is correct, the next step is to transfer the load ID with its transactions into an existing or new mixed payment. To approve the mixed payment, a separate function is used. The approval creates payments in Accounts Receivable/Payable and a voucher with postings. When the payment is matched, the matched invoice and payment will be assigned with a unique matching ID and a matching date. For unmatched payments, new items will be created for the affected payer/payee or parked payments, if the payment has no reference to a payer/payee.
Each electronic file contains information on debit and credit payment transactions for a specific cash account and currency. The transactions take place as follows:
Note: An approved mixed payment can be cancelled. The cancellation reverses all accounting transactions that were created in connection with the approval.
Before you start entering information, the Basic Data Required (BDR) has to be set up as per instructed in the Define Financials Basics. They are, the Set up Basic Data Accounts Receivable process and the Set up Basic Data Accounts Payable process, Cash Book Basic Data for payment institutes and payment methods and the Basic Data Requirement (BDR) for External Payments.