Creation of 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. Creating payments based on Cash Flow Ledger Entries is available only for outgoing payments to vendors, customers, and employees. To create such a payment, follow these steps:

• click the button, which opens the Search function; enter Cash Flow Ledger Entries and follow the appropriate link;
• select the relevant Cash Flow Ledger Entries that you want to pay; you can select several;
• choose one of the following two payment creation methods:

1. Create payments from company bank accounts — use this option if the selected entries contain the Company Bank Account No. field. The system will create payments in the relevant General Journal sections, where the Balancing Account No. on the journal section matches the Company Bank Account No. defined on the selected Cash Flow Ledger Entry. If the selected entries have the same Company Bank Account No., the General Journal page with the created payments opens automatically; otherwise, you must open each General Journal section, review the generated lines, and continue processing the payments.
2. Create payments — use this option if the selected entries do not have Company Bank Account No. filled in (you can fill it in or change it manually if needed), or if you want to choose the General Journal section yourself. When creating payments with this action:
   • select the relevant General Journal section for the payment and click OK;
   • the General Journal lines are generated and the required fields are filled in automatically;
   • review and post the generated lines after applying them, if this did not happen automatically.

Note Creating payments based on a Cash Flow Ledger Entry is unavailable if the source of this entry is a document with the Open status.

Note To control the correctness of selecting the General Journal section based on the payment currency, enable the Check Currency Code from Cash Flow Entries option on the General Journal Batches page. After enabling it, the system will verify during payment creation that the currency of the Cash Flow Ledger Entry matches the currency of the journal batch. If several entries are selected, the payment will be created only for those whose currency matches the currency of the journal batch.

Applying payments created from Cash Flow Ledger Entries

After a payment is created in the payment journal, the value of the Exists in Payment Journal field on the Cash Flow Ledger Entries page changes to Yes. When the payment journal line is posted, the Paid indicator becomes active on the same page. Posted payments are automatically applied to the vendor's documents or entries.

Important! To ensure correct cash flow entries, payments must be applied to the relevant documents or entries, because during each generation the system will take into account the unpaid balance for such documents or entries.

Note The payment is linked to the cash flow entry only if the Cash Flow Entry No. field is filled in on the payment journal line. If no entry number is specified, the Exists in Payment Journal and Paid indicators remain blank.

To restrict posting of payment journal lines without the Cash Flow Entry No. field, enable the Cash Flow Entry No. Required flag on the General Journal Templates page. This will prevent posting of a payment journal line when the Cash Flow Entry No. field is empty.

Note When generating the next operations in the Cash Flow Worksheet, if a previous payment has already been applied to a released Order/Invoice (Source Type = Purchase Payment Plan), and you want the information to be displayed in a collapsed view by the Order/Invoice document to which the payment was applied, enable the Group by Document Type toggle when creating entries using the Suggest Worksheet Lines task. In this way, the system will not display the payables entries that were generated in the Purchase Payment Plan and were paid before the posting of entries for such purchase documents.

Partial payment

If the payment is not posted for the full amount of the cash flow transaction, this transaction can be split 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 required fields:
  • New Cash Flow Date — determines the cash flow date of the new transaction record;
  • New Amount — determines the amount of the new transaction record;
• click OK.

For split entries, the Manually Split flag is set. When splitting a foreign-currency Cash Flow Ledger Entry, the amount in local currency is automatically recalculated according to the exchange rate valid on the Cash Flow Date for each entry.

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

On the Cash Flow Ledger Entries page, built-in filters are available for convenient viewing:

• Unpaid Entries — shows entries with the Paid flag set to No;
• Unsplit Entries — filters entries with the Manually Split flag set to No.

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

When a payment is created, the system transfers the vendor data, amount, agreement number (if present), and also fills the Payment Assignment field in the Bank Payment Journal lines from the Cash Flow Ledger Entries page. The value of this field is populated according to the following logic:

1. First, the system looks for a Vendor Agreement under which the payment transaction is performed. If it finds a value in the Payment Assignment field on the corresponding Vendor Agreement card, it transfers it to the payment journal line.
2. If the transaction is processed without a Vendor Agreement, the system finds and fills in the corresponding field of the payment journal with the value from the Payment Assignment field on the Vendor card.
3. If the system does not find any value in the Payment Assignment field on either the Vendor card or the Vendor Agreement card, the journal line will display the value from 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 you can manually supplement the fixed part of the payment assignment from the Vendor Agreement card or Vendor card with a variable part, such as an order number, invoice number, or another payment specification.

The Recipient Bank Account in the generated journal line is populated from the Default Bank Account specified on the vendor/customer agreement card (if an agreement is indicated in the line). If no agreement is specified, the bank account is taken from the vendor/customer card itself.

Note The payment assignment can be filled in automatically if the Payment Assignment field on the vendor or agreement card contains the appropriate text using formulas. For example, Payment acc. to Agr. %1 dated %2, invoice No. %3 dated %4. Amount UAH %5, %6, where %1 — external vendor agreement number, %2 — agreement start date, %3 — vendor invoice number, %4 — vendor invoice date, %5 — total amount including VAT, %6 — VAT amount and percentage. If the lines of the document on which the payment is created use different VAT percentages, the payment assignment will show only the total VAT amount without the percentage. If the document uses the same VAT rates, the assignment will show the VAT amount along with the percentage rounded to the nearest whole number.

The values of the vendor invoice number, vendor invoice date, the amount, and the VAT percentage are filled in when the payment is applied to a vendor transaction or document.

Employee payments through the Cash Flow Ledger Entries

In addition to creating vendor payments, the SMART Cash Flow solution also allows users to create employee payments. Based on the transactions in 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:

1. First, an open employee transaction in the Employee Ledger Entries (to which no application has been made for the full amount, so the Open field = Yes) must be generated and registered in the Cash Flow Ledger Entries. Read more in Register Cash Flow Ledger Entries.
2. From the Cash Flow Ledger Entries, you can create and post the full or partial payment of the selected employee transaction. By clicking Create Payment or Create payments from company bank accounts (if the Company Bank Account No. is defined for the entry), the system creates lines in the Bank Payment Journal for the selected entries in the chosen journal batch. Such payments must be applied in advance.
3. When the lines are regenerated through the Suggest Worksheet Lines task in the Cash Flow Worksheet, the system will suggest lines with amounts corresponding to the values in the Remaining Amount field in the Employee Ledger Entries for such paid (applied) entries.
4. The final step is to register such a line in the Cash Flow Ledger Entries for further payment.

Useful links

Cash Flow Overview Cash Flow Setup Create Cash Flow Ledger Entries