11.11. Payment Planning

Debts to Payment

In SocrateCloud, debts to payment represent documents through which payments and receipts that cannot be allocated to invoice can be planned (e.g. payments to the state budget), in order to keep accurate records of the organization's budget.

Payments and receipts can be allocated to debts to payment, which will determine the account and account date used on the resulting accounting transactions.

The Debt to Payment window, located in the Open Items menu, can be used to manage debt to payments. The following fields are available:

• Document No, Description

• Document Type = "Debt to Payment";

• Account date - date used for the accounting transactions resulted when posting payment - debt to payment allocations;

• Business Partner - business partner for which the payment is planned;

• Charge - determines the account used when posting the payment - debt to payment allocation;

• Amount, Currency - the planned amount and the currency used:

  • positive for payments;

  • negative for receipts;

  • Payment terms - payment term used to determine the due date for the debt to payment. The payment term will be ignored if a payment schedule is defined;

  • Generate Rate button - starts the process used to define a payment schedule for the debt to payment. Before running the process you can specify the following parameters:

• • • Start Date - due date for the first rate

    • Period Type, Gap - available time for each rate = Period Type * Gap;

    • Rates No - number of rates generated (the debt to payment amount will be split equally between rates);

Reference section - contains accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

Status section:

• Paid (system maintained) - checked after the debd to payment has been fully allocated to a payment;

• Document Status - indicates the current docuemnt status. The initial status for a payment is "Drafted"

• Document Action button:

  • "Complete" - will process the docuemnt and generate its corresponding system effects;

  • "Void" - will cancel the document effects within the system and any existing payment allocations;

The Allocation tab can be used to view the payments allocated to the debt to payment.

The Payment Schedule tab is used to manage the debt to payment rates defined manually or using the Generate Rates process. For each rate a discount percent and interval can be defined.

• Validate Rate button - is used to check if the total amounts on rates is equal to the debt to payment amount.

Payment Delays

The Payment Delays window, located in the Open Items menu, displays the list of payment delay records. These result from payment tern negotiations between the organization and business partners. The payment delay has no effect on the existing documents (invoices, debt to payments). Their role is to keep records of payment term renegotiations.

The window has the following functionalities:

• • entering payment delays for the following documents:

    • customer invoices, including for specific amounts due;

    • vendor invoice, including for specific amounts due;

    • debts to payment, including for specific amounts due;

  • viewing, editing and deleting records;

Payment delay information can be added through SocrateBI and can be viewed using the "Operational CashFlow" report.

CashFlow Lines

The CashFlow lines, located in the Open Items menu, is used to define the sources used by SocrateBI to generate the "Operational Cashflow" report