After executing a Payment Run for Suppliers, you notice that Payment Proposals are created for some invoices, even though their Due Date falls after the Run execution.
You expect that that the Run should only select Supplier Invoices with Due Date that fall before the execution of your run.
Reproducing the Issue
Go to the Payables Work Centre.
Go to the Periodic Tasks View.
Open Payment Runs.
Search for and select Run ID XXX (where XXX stands for the Payment Run ID).
Scroll Down to Execution Details.
Open Application Log ID YYY (where YYY represents the Log ID).
Most payments have been excluded based on the following reason: not due according to payment strategy, however you can see that one payment has been created.
Go back to the Payment Run View and click On the Payment Proposals button.
There are several Suplier Invoices selected for payment for Supplier ABC (where ABC stands for the Supplier ID).
Personalize the page to add more criteria such as Net Due Date and Payment Strategy
You can see that the Invoices selected in the Payment Proposal have their Net Due Date set on several days after the run execution: for instance, you executed the Payment Run on June 30 and your Invoices' Due Date falls on July 15.
Therefore you do not undertand why these are included, escpecailly since no Discount or Grace Days are set up.
This is the actual system behaviour and can be explained by the how your system is set up in different Business Configuration Activities.
First, take note of the Payment Terms set up for the invoices included in the Payment Proposal, this can be seen on the Invoices themselves. For example; End of Month of Invoice Date, 45 days.
- Go to the Business Configuration Work centre.
- Select the relevant Implementation Project.
- Click on the Activity List button, navigate to the Fine-Tune tab.
- Search for Payment Strategies and open it.
- Click on Edit payment strategies.
- Only the Global payment strategy is set up.
In Details, Preferred Payment Time is set on: Pay with any available Cash Discount on latest possible date.
- Go back to the Activity List.
- Search for and Open Suppliers.
- Open Define Payment Terms for Procurement.
The Payment Terms defined for the impacted Supplier Invoices is maintained as such: End of Month of Invoice Date, 45 days, maintained with Calculate due date based on = Invoice Date.
Discount Rate 1 Granted is 0%
Number of Days After Invoice Date / Receipt Date (1) = 45. This means that the Maximum Cash Discount Due Date will be applied within 45 days.
The combination of these two parameters means that, even if no discount is actually defined, your invoices are still taken into account for the calculation of a Maximum Cash Discount Due Date 45 days after the Invoice Creation date.
Based on this, if you execute a Supplier Payment Run before the Invoices' Due Date, they are going to be included in a Payment Proposal before the Maximum Cash Discount Due Date is expired to ensure applicaiton of a possible discount on them.
This can be explained as follows:
Supplier Invoice is created on dd.mm.yyyy
Due Date calculated on Payment terms ste up: 45 days after the end of the month of the Invoice Date
Maximum Cash Discount Due Date: Invoice Date + 45 days: dd.mm.yyyy + 45 days maximum.
Supplier Payment Run executed at dd.mm.yyyy + 43 days : Since the Run is executed before the expiration of the Maximum Cash Discount Due Date, the relevant invoices are included in the payemet proposal to ensure possible application of a discount.
If the Payment run had been executed at dd.mm.yyyy + 47 days, then they would be excluded of the Payment proposal and only taken into account after the Invoice Due Date had expired.
The following Help Documents from the Help Center also give more information on this system behavior:
Suppliers — Configuration Guide
Configuration: Payment Strategies
KBA , SRD-FIN-ACP , Payables , How To