Openbravo QuickStart 2User Manual

Chapter 10 – SupplierPayment Management

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Introduction ....................................................................................... 1Abstract Business Process .................................................................. 1Roles Involved .................................................................................... 2Configuration ...................................................................................... 2

Payment Method Configuration............................................................. 2Financial Account Configuration ............................................................ 4

Step-by-Step....................................................................................... 5Review Payment Due .......................................................................... 6Payment Proposal............................................................................... 7

Payment against an invoice............................................................... 8Make Payment ...............................................................................10

Payment Transaction ........................................................................ 12Add Transaction ................................................................................13

Accounting........................................................................................ 15Posting of a Payment .........................................................................17

Introduction

In Openbravo ERP, when generating an invoice, the payments details, such as the form ofpayment and payments terms (date and amount) are also created. In this chapter we willexplain the supplier payment management, from the pending purchase invoice review to thefinal payment.

Abstract Business Process

The abstract supplier payment management process is defined by the following diagram:

These are the main sub-processes for it:• Review invoices pending to be paid and its payment details• Decide whether to pay or to renegotiate• Perform the payment depending on the payment method

Roles Involved

The following roles are involved with this process:• Finance - this role authorizes and executes payments

Configuration

Payment Method Configuration

In the new payment flow as many payment methods as required can be defined. Eachpayment method can be configured having different business logic for collections andpayments.

Navigate to Financial Management || Receivables & Payables || Setup || PaymentMethod || Payment Method window.

Here is the explanation of the main fields related to collection:

• Payment out:• Allowed - Indicates whether this payment method is allowed for making

payments against the given financial account. Once a payment method allowspayment out transactions the rest of configuration values are displayed.

• Automatic Payment - When flagged system automatically generates aMake Payment transaction when the Purchase Invoice is processed for thegiven pair of payment method and financial account (taken from vendor tab).

• Automatic Withdrawn - When flagged system automatically generates afinancial account Transaction once a Make Payment document isprocessed, moving its status from Payment Received to PaymentDeposited Not Cleared.

• Execution Type - Drives the way a payment is executed. When Automatic isselected, system displays additional fields to be configured:

◦ Execution Process - Business logic applied to a payment to bemade. Additional modules can be installed to provide additional

business logic for payment execution (Example: Printing of a check ina given format).

◦ Deferred - When flagged, system assumes that the execution eventwill be manually launched. When unchecked system automaticallytriggers the execution process at processing time.

• Upon Payment Use - Account to be used as target account for posting ofMake Payment transactions.

• Upon Withdrawal Use - Account to be used as target account for posting ofFinancial Account Deposit transactions.

• Upon Clearing Use - Account to be used as target account for posting ofFinancial Account Reconciliation transactions.

NOTE: Payment Method configuration will be used as default values when adding thosepayment methods to the corresponding Financial Account. It is needed to assign paymentmethods to financial accounts as this is the only way to allow the usage of paymentmethods against a financial account.

Financial Account Configuration

Using Advance Payables and Receivables Module both Cash Books and Banks can beconfigured through Financial Account window.See Chapter 3 – Financial Account to Reconciliation

To register cash and Bank movements in the Financial Account, accounting configurationshould be done prior to that.

The Company Admin role should be used.

Navigate to Financial management || Accounting || Setup || Accounting schemawindow. Click on the [Defaults] tab.

Configure the following accounts for a Financial Account type Cash• Cash book asset - Where cash movements will be posted.

Configure the following accounts for a Financial Account type Bank• Bank Asset Account - Where Bank movements will be posted.• Bank In Transit Account - Temporary account.• Bank Expense Account - Account used to book bank fees.

• Bank Revaluation Gain Account - Account used to book currency revaluationgains.

• Bank Revaluation Loss Account - Account used to book currency revaluationlosses.

Step-by-Step

The Finance Role should be used.

Before talking about the payment management, its good to remember some importantpoints about invoices.

When creating a purchase invoice, pay attention to the following fields in the [Header]:• Invoice date - the date when an invoice is received• Accounting date - the date that defines to which accounting period this transaction

will be posted to• Payment method - payment method that the company will use to pay this invoice• Payment terms - the payment term that defines the due date of the invoice

When completing an invoice, a payment plan will be created related to the invoice. Revise itinside [Payment Plan]:

These are the relevant fields:• Due date - the deadline by which this payment is supposed to be paid. This date is

calculated depending on the Invoice date and the Payment terms• Payment Method- the form of payment of the invoice• Expected - full amount To be paid in the due date.• Received - Amount already paid.• Outstanding - Amount that remains unpaid.• Last Payment - Date of the last payment received against this payment plan.• Number of payments - Number of payment events against this payment plan.

A brief summary of the payment plan information of each invoice appears in the invoiceheader:

These are the relevant fields:• Total Paid - Amount that has been paid against the invoice.• Outstanding Amount - Amount not yet paid.• Days till Due - Number of days for the debt to due.• Due Amount - Amount planned to be already paid.

Review Payment Due

Payment Due can be reviewed in Purchase Invoice Window (Grid View) using somefiltering criteria through Search Button:

The easiest way to pay existing bills is through Payment Proposal Window. Create a newpayment proposal for a payment method and a financial account and select the duepayments.

A payment proposal can be created to pay one or multiple vendors / suppliers. Whenprocessing the document all payment events will be created at once.

Payment Proposal

Navigate to Financial Management || Receivables & Payables || Transactions ||Payment Proposal || Header window.

These are the relevant fields:• Payment Method - Form of payment to be used such as Bank Transfer, Cash ...• Paying From - Financial Account used to pay the debt.• Payment Date - Day of the payment event.• Due Date - Maximum due date of the payments inside the payment proposal.• Select expected payments - Planned payments selector.• Generate Payments - Button to process payment proposal and generate the

payments.

Click On Select Expected Payments button to select payments planned till Due Date.

Select pending invoices or orders to be paid and modify the amount to be paid if needed.Once selection is complete, click on Process button and then on Generate Paymentsbutton.

Select the Action and click Process for the payments to be created.

The finance staff can see the pending payables with the Payment Report and PaymentAging Balance report.

Payment against an invoice

It is as well possible to make a payment against an existing invoice directly

Navigate to Procurement Management || Transactions || Purchase Invoice window.

Once a purchase invoice is processed, Add Payment button is displayed. Press the buttonto pay the given invoice.

Modify the amount if needed and click on process to pay the selected amount. Additionalpending invoices or orders can be as well selected and paid.

Make Payment

Another way of paying existing bills is using the Financial Management || Receivables &Payables || Transactions || Make Payment window:

Fields to note:• Paying to - Business partner who amount is paid to.• Payment Method - form of payment of this payment.• Business partner - the business partner this payment belongs to, use the original

business partner here as the two new payments must be belong to the same one.• Paying From - Financial account used for paying.• Amount - Amount of this payment.• Payment Date - Date when payment event occurs.• Status - Status of payment document. Existing statuses are:

◦ Awaiting Payment - Before payment document is processed.◦ Awaiting Execution - Before payment is executed. Only used if there is an

execution process related to the pair of payment method and financialaccount for the given payment.

◦ Payment Made - Payment event occurred and document is posted to theledger.

◦ Withdrawn Not Cleared - Payment recognized in OB Financial account asa transaction.

◦ Withdrawn Cleared - Payment has been cleared through a reconciliationprocess.

Mind that amount is not editable as it will be calculated as sum of the details selected. PressAdd Payment Details button.

Fields to note:• Amount - Total amount to be paid.• Transaction type - Select type of details to be added to the payment:

◦ Orders - Outstanding orders within due date.◦ Invoices - Outstanding invoices within due date.◦ Orders or Invoices - Both outstanding orders and invoices within due date.◦ GL Items - For any other payment detail. Relate the amount to a GL Item

when amount paid is not related to any invoice or order.

Multiple GL Items can be added as part of the payment detail. Amount in payment headerwill be automatically populated with the aggregated value.Once all the details are selected or added press Process button.

Fields to note:• Action regarding document

◦ Process received payment(s) - Payment is processed and documents aremarked as paid.

◦ Process received payment(s) and withdraw - Payment is processed,documents are marked as paid, and payment amount is reflected in thefinancial account (bank).

NOTE: Payment amount can be as well reflected in the financial account (bank or cash)automatically when processing Make Payment document in case the payment method isconfigured to do that step automatically.See Payment Method configuration.

Payment Transaction

Navigate to Financial Management || Receivables & Payables || Transactions ||Financial Account || Account window and select a defined Financial Account.Financial Accounts are used in Openbravo to represent accounts at financial institutions suchas bank accounts, credit cards, electronic payment services, as well as cash and petty cashregisters.Go to the Transactions tab to see the transactions associated with this financial account.

Fields to note:• Account: The account number and name of the financial account.• Last reconciliation: The date of the last time this account was reconciled to the

bank statement from the bank. A count of the number of unmatched items is shownfor the date of today.

• Current Balance: The current balance of the account.• Hide reconciled transactions: By default the grid only shows unreconciled

transactions.

Grid:• Date: The transaction date.• Business Partner: The name of the business partner.• Payment No: The reference to the Payment Document (e.g., the cheque number)• Description: The text added to the payment transaction on entry.• Paid Amount: The amount of the payment made.• Received Amount: The amount of the payment received.• Cleared: Whether the transaction has been matched to a transaction on the Bank

Statement.

Add Transaction

The user can add a Transaction (Payment, GL item or Bank Fee) to the account by clickingon the Add Transaction button.

In the grid all the completed payments will appear, select them and press OK button.

At this moment the user can also add a new payment clicking on the Add Payment button.In a new pop-up all the pending payments will be shown for depending on the filteringoptions.

After clicking on Process button the application will return to the previous pop-up and therecently added payment will be shown in the grid.

This is the result of adding all the payments as transactions.

Accounting

Navigate to Financial Management || Receivables & Payables || Transactions ||Financial Account || Account >> Payment Method window.

and associate a Payment Method to the current Financial Account. Once the paymentmethod is selected in the combo-box the default values for this particular Payment Methodwill be filled automatically.

Payment OUT

• Allowed: If checked then the payment method is enabled to make payments.• Automatic Payment: On completion of a Purchase Invoice the payment is

automatically made. You can use for example for cash over the countertransactions.

• Automatic Withdrawal: Checking this option results in a payment made using thispayment method being automatically withdrawn from the Financial Account. You canuse this for example for credit card payments.

• Execution Type◦ Manual: The creation of a payment is a manual event. For example,

payment by cash.◦ Automatic: The system will automate the creation of a payment document

by launching a process to support payment. An example might be a checkprinting utility that automatically prints checks, or a credit card interface tomake payment by credit card.

▪ Execution Process: Select the process to be launched to automatethe payment process.

▪ Deferred: If this execution process should be used to automate theprocess, but it will be triggered at a later point in time (by someonelaunching the execution process manually), then please ensure thisoption is selected. As an example, you may wish to print all checksin a batch run at the end of the day.

• Upon Payment Use: Account to be used upon payment. Would normally be eitherleft blank (if financial transaction is to be created later in the work-flow), an InTransit Payment Account or a Financial Account

• Upon Withdrawal Use: Account to be used upon withdrawal. Would normally beleft blank (if no financial transaction required for the Withdrawal event) or aWithdrawn Payment Account

• Upon Clearing Use: Account to be used upon clearing. Would normally be theFinancial Account, but could be left blank if the receipt has been posted to theFinancial Account earlier in the process (perhaps upon payment or upon withdrawal)

Note: Automatic Payment require a Financial Account to be associate with the BusinessPartner.

Posting of a Payment

The accounts configured on Financial Management || Accounting || Setup ||Accounting Schema >> Defaults will be used when posting a payment

In the example the as the In Transit Payment Account has been configure Upon PaymentUse when posting the payment clicking on Post button on Financial Management ||Receivables & Payables || Transactions || Make Payment || Header

the following journal entry will be created: