After the execution of a payment run, you check the application log, and find out that one item is selected unexpectedly, as the payment run execution date is before the net due date of the item.
Reproducing the Issue
- Go to the Payables work center, and choose the Periodic Tasks view.
- Select the Payment Runs subview.
- Search the payment run in question, and check the Execution Details.
- Click on the Application Log ID, and open it up.
- Navigate to the Results tab.
You can see that item of one Payee is selected unexpectedly.
First of all, check the payment strategy in the Fine-tune activity of Payment Strategy, you can see that the Preferred Payment Time of the payment strategy used is pay with any available cash discount on latest possible date, which means, item will be selected for payment when the next payment run execution is after the current cash discount deadline. After that, check the supplier invoice of the payee in question, you can see that the invoice is issued on DD.MM.YYYY, and the payment term is 14 days 3%, 30 days due net, which then makes the current cash discount deadline DD+14.MM.YYYY, so the items will be selected for payment when the next payment run execution is after that date. As the payment run in question is executed on DD+15.MM.YYYY which is after the cash discount deadline, so the item is selected, and payment proposal is created.
If the Preferred Payment time of payment strategy is Pay net amount on latest possible date, which means item will be selected for payment on its net due date, so in that case, the invoice item will only be picked up when the payment run is executed on or after 30 days beyond the invoice date.
You should be aware of the definition of Preferred Payment Time in Payment Strtegy, which specifies when the payment run considers an item as due:
- Pay with any available cash discount on latest possible date
- Item will be selected for payment when the next payment run execution is after the current cash discount deadline
- Pay net amount on latest possible date
- Item will be selected for payment on its net due date
If necessary,you need to change the Preferred Payment Time in the Payment Strategy activity accordingly, after that, void the already created payment proposal, and execute the payment run again.
KBA , payables , payment run , grace days , payment strategy , payment term , preferred payment time , AP-SIP , Supplier Invoice Processing , How To