SAP Business One How To: Process Incoming and Outgoing Payments Through Payment Means

Published on 16th October, 2017 in SAP Business One by Andrea Vermurlen

Payment Means Differences in SAP Business One

In this how-to we will explore the payment means function and take a look at the detail on each of the tabs for both incoming and outgoing payments.  Incoming payments are received in from your customers as payment for supplies or services rendered.  Outgoing payments are to send out to vendors for supplies or services that were provided to you, or other payments.

A/R Incoming Payments, Deposits and Credit Card Management

Incoming Payment

Go To > Banking > Incoming Payments
Enter required Information and Click on Payment Means.

SAPB1 Incoming Payments Display full image

Check Tab

Enter required Information.  When recording the Incoming Payment on Check tab the Journal Entry Debits Checking Account Clearing and Credits AR Trade account.   You must then record a Deposit. (More on deposits following)

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Bank Transfer Tab

Enter required Information.  When recording the Incoming Payment on Bank Transfer tab the Journal Entry Debits Cash Account and Credits AR Trade account.  This goes directly to Bank Reconciliation.

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Credit Card Tab

Enter required Information.  When recording the Incoming Payment on Credit Card tab the Journal Entry Debits Credit Card Clearing Account and Credits AR Trade account.   You must then go to Credit Card Management to move it to Cash Account.

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Deposits for Checks

Go To > Banking > Deposits > Deposits.  Enter Required Information and Click Add. When recording the Deposit the Journal Entry Debits Cash and Credits Checking Account Clearing.

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Credit Card Management

Go To > Banking > Incoming Payments > Credit Card Management
Enter Selection Criteria and Click OK.  (Optionally you can Check the Box Display Undeposited Vouchers Only)

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Select Credit Card Payment and Click Endorsement

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Journal Entry Window opens, Enter offsetting GL Accounts. Example Cash and Credit Card Fees. Click Add.

SAP B1 journal entry for credit card incoming payments Display full image

 

A/P Outgoing Payments and Checks for Payment

The main difference between incoming and outgoing payments is the need to define an account for the different payment means. For example if you create an outgoing payment with cash, you must select the outgoing cash account for the transaction. In this case, it can be your house bank account or a petty cash account.

Outgoing Payments

Go To > Banking > Outgoing Payments > Outgoing Payments
Enter required Information and Click on Payment Means.

SAP B1 Outgoing Payments Display full image

Check Tab

Enter required Information.  When recording the Outgoing Payment on Check tab, the Journal Entry Debits AP Trade account and Credits Cash.

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Bank Transfer Tab

Enter required Information.  When recording the Outgoing Payment on Bank Transfer tab the Journal Entry Debits AP Trade account and Credits Cash.  This goes directly to Bank Reconciliation.

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Credit Card Tab

Enter required Information.  When recording the Outgoing Payment on Credit Card tab the Journal Entry Debits AP Trade account and Credits Credit Card Clearing.   When the AP Invoice comes in from the Credit Card company, you will record the AP invoice and on the expense lines, reference the Credit card clearing.

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Thanks to Aether Implementation Consultant, Kimberly Barnes for this article.  If you have questions on SAP Business One operation, check out the Aether Blog

Andrea Vermurlen, Marketing & Sales, Aether Consulting

Andrea handles marketing and sales for Aether Consulting.