Payment Information Setup

This chapter describes how to set up basic payment transactions and requirements in our ERP solution, and how to set up credit limits for specific customers. This chapter is divided into the following sections:

• Setting Up Payment Methods for Customers and Vendors
• Setting Up Payment Terms for Customers and Vendors
• Setting Up Payment Conditions for Customers
• Setting Up Credit Limit Codes
• Setting Up Credit Limits for Customers

Setting Up Payment Methods for Customers and Vendors

Payment methods specify how you are paid by customers and how you pay vendors. You can assign payment methods to customers and vendors which are then used by default in relevant documents. To set up a payment method, proceed as follows:

• Use the quick search (ALT+Q) to find the Payment Methods page.
• To set up a payment method, click New in the menu bar.
• Complete the information according to the following table:

You have successfully set up a new payment method. Repeat the process as needed to add further payment methods.

Setting Up Payment Terms for Customers and Vendors

Payment terms determine how due dates and payment discounts are managed. You can assign payment terms to customers and vendors which are then used by default in relevant documents. However, if needed, you can change the terms in individual documents, e.g., if a customer should pay before the due date specified in the payment terms. This does not affect the default payment term. To define a payment term, proceed as follows:

• Use the quick search (ALT+Q) to find the Payment Terms page.
• To define a new payment term, click New in the menu bar.
• Complete the information according to the following table:

You have successfully set up a new payment term. Repeat the process as needed to add further payment terms.

Setting Up Payment Conditions for Customers

Payment conditions allow you to set up different payment terms and payment methods for a customer depending on the business area (rental, sales, or service). If you then create a document for that customer, the applicable payment condition for the corresponding business area is inserted automatically. To set up a new payment condition for a customer, proceed as follows:

• Use the quick search (ALT+Q) to find the Payment Conditions page.
• To set up a new payment condition, click New in the menu bar.
• Complete the information according to the following table:

You have successfully created a payment condition for a customer. Your changes are applied automatically once you close the Payment Conditions page. Repeat the process as needed to add further payment conditions.

Setting Up Credit Limit Codes

Credit limit codes are used to define different credit limits by business area on the customer card. Proceed as follows to set up a credit limit code:

• Use the quick search (ALT+Q) to find the Credit Limit Codes page.
• To set up a new credit limit code, click New in the menu bar.
• In the General FastTab, enter a unique code for the credit limit code in the Credit Limit Code field.
• Enter a significant description for the credit limit code in the Description field.
• Click Edit Setup Lines in the menu bar.
• Complete the table on the page using the information provided below:

• Click Close to save the setup lines.

You have successfully set up a credit limit code. You can now assign it to a customer on the customer card.

Setting Up Credit Limits for Customers

Credit limits specify the maximum amount a customer can be granted as credit in your company. This reduces the risk of non-payment. When creating or updating a document, the credit limit is automatically checked. If the credit limit of a customer is exceeded, a warning is displayed to the user. To set up a credit limit for a customer, proceed as follows:

Note

Before you set up individual credit limits, you must first make some basic settings in the General FastTab on the Sales & Receivables Setup page:

• In the Credit Warning field, select the cases in which a warning about the credit limit status of the customer should be displayed. Possible options are Credit Limit (order creation), Overdue Balance (invoice creation), Both Warnings, or No Warning.
• Activate the Show Credit Limit Details on Release toggle switch if it should not be possible to release an outgoing document once the credit limit has been reached. If the toggle switch is activated, a notification containing the credit limit details of the customer is displayed instead. In order to release the document, the credit limit of the customer must be adjusted.
• Activate the Exclude Cash Payments from Credit Limit Calculation toggle switch, if orders with cash payment as payment method should not be included in the calculation of the credit limit. If the toggle switch is activated, orders with cash payment can be released regardless of the value in the Block field on the order card.

• Use the quick search (ALT+Q) to find the Customers page.

• Open the customer for whom you want to set up a credit limit.

• If the credit limit should apply globally to the customer, regardless of the business area, enter the desired amount in the Credit Limit (LCY) field on the General FastTab.

• If you want to define different credit limits for individual business areas instead, enable the Extended Credit Limits toggle switch on the General FastTab.

• Then, enter the desired credit limit code in the Credit Limit Code field.
  For more information about creating credit limit codes, see Setting Up Credit Limit Codes.

You have successfully set up the credit limit for a customer. To open an overview of all customers with a configured credit limit, use the quick search (ALT+Q) to open the Credit Limit Overview page.