Creating Payments Based on Cash Flow Ledger Entries

The SMART Cash Flow solution provides users with the ability to simplify the process of creating bank payments to vendors. Based on the Cash Flow Ledger Entries, the user can make a payment to the vendor. To do this:

• Go to , which opens the Search function and enter Cash Flow Ledger Entries, thenfollow the appropriate link.
• Select the appropriate entry of the Cash Flow Ledger Entries that you want to pay. You can select a few ones.
• Click Create Payment.
• Select the appropriate batch of the payment journal for payment; click OK.
• Payment journal lines are generated, the necessary line fields are filled automatically.
• Check and post the generated lines.

Applying payments created from Cash Flow Ledger Entries

After the payment is created in the payment journal, on the Cash Flow Journal page, the value of the Exists in the payment journal field changes to YES. When the payment journal line is posted, the Paid indication will become active on the same page. The posted payments will be automatically applied to the vendor's documents or entries.

Note
Payment is linked to a cash flow transaction only if Cash flow entry number is filled in the payment journal line.
If no entry number is specified, the "Exists in the payment journal" and "Paid" characteristics remain blank.

To restrict posting of payment journal lines without the Cash flow entry number field, enable the Cash flow entry number required characteristic on the General journal templates page. This will prohibit the posting of a payment journal with an empty Cash Flow Entry Number field.

Partial payment

If the payment is not posted for the full amount of the cash flow transaction, this transaction can be divided into several separate entries. To do this:

• Select the cash flow ledger entry to split.
• Click Split line.
• In the window that opens, fill in the necessary fields: New Cash Flow Date - Determines the cash flow date of the new transaction record, New amount - Specifies the amount of the new transaction record.
• Click OK.

When splitting the currency transaction of the cash flow ledger, the amount in the local currency will be automatically converted in accordance with the exchange rate effective on Cash flow date for each entry.

Note
You can only split transactions that are not marked as Paid and for which no lines have been created in the payment journal.

Generation of Payment Assignment in a payment created from Cash Flow Ledger Entries

When you create a payment, the system transfers the vendor data, amount, Agreement number (if there is) to the Bank Payment Journal lines from the Cash Flow Ledger Entries page and populates the Payment Assignment field. The value of this field is filled in according to the following logic:

• Firstly, the system is searchig for the existence of a Vendor Agreement under which the payment transaction is carried out and, having found the value in the Payment Assignment field of the corresponding Vendor Agreement card, transfers this value to the payment journal line.
• If the transaction is carried out without any Vendor Agreement, the system will find and fill in the corresponding field of the payment journal the value contained in the Payment Assignment field on the Vendor card.
• If the system does not find any value in the Payment Assignment field neither on the Vendor Card nor on the Vendor Agreement card, then in the journal line in the corresponding field the standard entry will appear the value of the Description field of the Cash Flow Ledger Entries page ("Posted Purchase Invoice (or Purchase Order) - dd.mm.yy (date of the Invoice or Purchase Order) + Vendor Name").

The Payment Assignment field in the payment journal line is editable, so the fixed part of the Payment Assignment from the Vendor Agreement card or Vendor card can be manually supplemented with a variable part, such as an order number, an invoice number, or another payment specification.

Employee Payments through the Cash Flow Ledger Entries

In addition to creating vendor payments, solution SMART Cash Flow provides users with the ability to create employee payments.
Based on the transactions of the Cash Flow Ledger Entries, the user can make a payment to an employee based on the recorded entries in the Employee Ledger Entries. To do this:

• first you need that the opened employee transaction of the Employee Ledger Entries (to which one there was no application for the full amount, and therefore by which field Open = Yes) have been formed and registered in the Cash Flow Ledger Entries. Read more Register Cash Flow Ledger Entries
• from the Cash Flow Ledger Entries, you can create and account for full or partial payment of a selected employee transaction.
• using the Create Payment button, the system creates lines in the Bank Payment Journal for the selected transactions in the selected journal batch. It is necessary to make a preliminary application of such payments.
• if you regenerate lines through the Suggest Worksheet Lines task in the Cash Flow Worksheet, the system will offer lines with amounts corresponding to the values from the Remaining Amount field in the Employee Ledger Entries for such paid (applied) entries.
• the final step is to register such a line in the Cash Flow Ledger Entries for further payment.

Useful links

Cash Flow Setup
Create Cash Flow Ledger Entries
Cash flow overview