Payment advice in SAP Business One (2024)

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 covers everything you need to know about these documents.

What is a payment advice note?

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

What is a payment advice used for?

A payment advice note is used to confirm that a payment has or has not been received. This can be a one-off payment or a regularly recurring payment. 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 the payment notifications 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 notification 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 debtor. It is advisable to provide the document with a clear reason for payment so that it can be assigned more easily at a later date. A signature from 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.

Do I have to send my suppliers a payment notice when I pay their invoices?

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 notices?

As proof that a payment has been made, it is important that the payment notifications are stored securely. It is recommended that they are stored electronically or archived in paper form. It is also advisable to label them with the purpose of the payment so that they can be assigned more easily in the future.

Payment advice in SAP Business One

The standard version of SAP Business One does not include an explicit function for generating payment advice notes. With the add-on Versino Financial Suite however, allows you to create a payment notification quickly and easily. Immediately after a payment run, you can generate and send the payment notification with all the necessary information directly from SAP Business One.