Payment Profiles Setup (PPS) is used to define the criteria by which transactions are selected for payment in Payment Run (PAY), or for collection in Payment Collection Run (PAYC).

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If your requirements are very straightforward, you may only require a single payment profile for your payment runs, and another single profile for your payment collection runs. These profiles might simply select all transactions due up to a selected date, for all your creditor/payables, debtor/receivables and client accounts.

However, in practice, you will probably develop several different payment profiles that select transactions using more complex selection criteria. There are a large number of parameters and selection criteria available on a payment profile to allow you to select exactly the accounts and transactions you want to pay. This enables you to manage and maximize your cash flow.

For example, you might create a profile that includes a number of currencies, all of which are paid from, or into, the same bank or bank account. Another example might be to create a set of profiles that selects transactions according to the account priority to select high, medium or low priority suppliers or customers in different payment runs.

Another advantage of defining various payment profiles is that when Payment Run or Payment Collection Run is used for a particular profile, the resulting payments file acquires a code which is unique to the profile. See What is the Payment File?

When you define a payment profile you can pick up to five selection criteria to be used as run time criteria. For example, you may want to enter the range of accounts to be considered for payment at run time, rather than setting a predefined range in the profiles.

Payment profiles are defined using Payment Profiles Setup. The same form is used to define the profiles for a Payment Run and a Payment Collection Run. However, one of the profile options identifies whether the profile is to be used for a payment run or a payment collection run.

Tip: You can reference a payment profile on a journal type, if you always want to pay the transactions for this journal type immediately after the journal is posted.

Payment Profiles Setup (PPS) is used to define the criteria by which transactions are selected for payment in Payment Run (PAY) or for settlement in Payment Collection Run (PAYC). When you run Payment Run or Payment Collection Run, you select the payment profile you want to use.

You must use different profiles for each type of run. So, at the very least you must define two payment profiles, one for your payment runs and another for your payment collection runs.

A payment profile contains a large number of selection criteria and parameters that allow you to pick particular transactions for payment. As a result, you might define many different payment profiles to meet your payment or payment collection requirements. For example, you might define payment profiles to select transactions by currency or bank, or to select particular groups of accounts.

Prerequisites:

1. I have posted an invoice on a supplier account of 100 on a date 13/01/2006

2. The supplier has the payment terms - 30 days from the date of the transaction

3. The payment methode is bank

First we are going to setup a Payment Profile that will pickup due invoices, pays them and creates a bank transfer file.