Payment advice in SAP Business One

In business, it's important, Payments quickly and efficiently. The payment advice note plays an important role in this. But what exactly is a payment advice note and why is it so important? This article tells you everything you need to know about these documents.

What is a payment advice note?

A payment advice is a document that confirms receipt of payment. It serves as proof of payment and is often issued by the payee. The payment advice usually contains the amount of the payment, the date of the payment and the name of the payer.

What is a payment advice used for?

A payment advice is used to confirm that a payment will or will not arrive. This can be both a one-off payment and regularly recurring payments. A payment advice note can also be used to settle an outstanding debt or as proof for accounting purposes.

What are the different types of remittance advice?

There are different types of remittance advice:

Bank confirmation:
A bank confirmation is a document issued by the payer's bank. It confirms that the payment has been successfully received on the payee's account.
Receipt: A receipt is a document issued by the payee. It confirms the successful receipt of the payment and serves as proof for the payer.
Confirmation of payment: A payment confirmation is similar to a receipt, but is issued by the payer. It serves as proof for the payee.

Why are payment advices important?

Such a payment notice is necessary because it proves that a payment has been made. It gives the payee the certainty that the payment has been received and enables him to keep accurate records. A payment advice note can serve as proof to the payer that a debt has been settled.

advantages

Security:
A payment advice note provides security to the payee as it proves that a payment has been made.
Traceability:
A payment advice enables payments to be tracked and recorded for accounting purposes.
Cost efficiency:
By using payment advices, errors and discrepancies can be avoided, saving time and costs.

How do you create a payment advice?

A payment notice can be easily created by recording the relevant information on a document. This includes the payment amount, the payment date and the name of the payer. It is advisable to provide the document with a clear purpose so that it can be more easily allocated later. A signature of the payee or a confirmation from the bank can increase the credibility of the document.

If a customer sends me a payment advice, what do I have to do?

You are not obliged to do anything. The payment notice only contains information. Wait a few days for the payment to be credited to your account and then compare the payment with the invoice, as is customary in your business.

When I pay my suppliers' invoices, do I have to send them a payment advice?

No. Rather, it is a courtesy, e.g. if the amount owed is very high, the payment terms are unusually long or it is an international transfer. Therefore, a payment proposal is neither directly requested nor required.

What should I bear in mind when dealing with payment advices?

As proof that a payment has been made, it is important that payment notices are kept securely. It is recommended to keep them electronically or to archive them in paper form. It is also advisable to label them with their intended use so that they can be more easily attributed in the future.

Payment advice in SAP Business One

The standard SAP Business One does not include an explicit function for generating payment advices. With the add-on Versino Financial Suite However, a payment notice can be created quickly and easily. Directly after a payment run, the payment notification with all necessary information can be generated and sent directly from SAP Business One.