Reason code for short payment received from Customers

Question

Hello
We are on ECC 6.0 without application of any enhancement package.
Requirement is to capture reasons of short payment received from customer and generate a report based on such reason codes.
Reasons of short payment received could be - Adhoc payment; Excess billed; Tax deducted at source (TDS) on freight / service charges and Bank charges etc.
Let me know relevant configuration required.
Would reason codes be captured during incoming payment entry or customer account clearing?
Thanks.
Vimal, India

Answer 1

Hi Vimal
Following is the configuration for Reason code for customer payments. It can be short payment, over payment or discount not allowed.
First step is to define reason code. You do this in Financial Accounting (New >Accounts Receivable and Accounts Payable>Incoming Payments>Incoming Payments Global Settings>Overpayment/Underpayment>Define Reason Codes
Define reason code , short text, long text and assign it to correspondence type. (please note correspondence type settings needs to be done first).  There is a column c which is Indicator: Charge off difference via separate account set this if you want to post the difference to seperate account during clearing customer open item.
The second step is to define accounts for payment difference.
Financial Accounting (New >Accounts Receivable and Accounts Payable>Incoming Payments>Incoming Payments Global Settings>Overpayment/Underpayment>Define Accounts for Payment Differences
Assign G/L accounts against reason codes.
The third step is Define Reason Code Conversion Version
Financial Accounting (New >Accounts Receivable and Accounts Payable>Incoming Payments>Incoming Payments Global Settings>Overpayment/Underpayment>Define Reason Code Conversion Version
In this step, you make the default settings you need for the manual incoming payment processing via payment advice notes. If differences between the payment advice item and the total of the allocated open items occur after selecting the open items, you can enter a reason code in the payment advice item. This represents the reason for the reduction of the payment amount specified by the paying person.
Create version 001 and name for it.
For correspondence type create or assign relevant form and print program in global settings> correspondence
Once you have these settings you can insert appropriate reason code while clearing customer open item .
You can print correspondence via T-ode F.62 on a monthly basis or wekly basis.
Hope this helps.
Thanks
Sanjeev