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Question

Payment Method and Payment Format

  • May 11, 2026
  • 3 replies
  • 33 views
T
Sidekick (Customer)
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HI,

I’m currently trying to add a new payment method under Supplier → Payment → Payment Method.

While creating the new payment method, I also added a new payment format. I would like to understand the relationship between the Payment Method and the Payment Format & effect to finance and GL.

In this particular case, the supplier payment is not made via cash, cheque, or any other standard payment method. Instead, the settlement is done through goods.

Therefore, I would appreciate clarification on how this scenario should be configured and handled in the system.

Regards,

TharakaN

3 replies

S
Do Gooder (Partner)
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  • Sandeep Kumar
  • Do Gooder (Partner)
  • May 11, 2026

Hi Tharaka,

 

If possible, could you please explain your scenario in a bit more detail?

Based on your explanation, it appears that you are purchasing the goods instead of doing the payment to customer you are selling the goods to. In such a case, you may need to perform AP/AR netting, provided the customer is also maintained in the system.

For this, you can create a separate payment method for AP/AR netting with an empty payment format, so that no payment file will be generated during the process. If your business case is different kindly provide the case detail.

T
Sidekick (Customer)
Forum|alt.badge.img+5

Hi Tharaka,

 

If possible, could you please explain your scenario in a bit more detail?

Based on your explanation, it appears that you are purchasing the goods instead of doing the payment to customer you are selling the goods to. In such a case, you may need to perform AP/AR netting, provided the customer is also maintained in the system.

For this, you can create a separate payment method for AP/AR netting with an empty payment format, so that no payment file will be generated during the process. If your business case is different kindly provide the case detail.

Hi ,

y business case is slightly different from the standard supplier payment process. In our organization, there is a material lend/borrow process, which is currently managed manually through Excel. I have introduced a more systematic approach in IFS to handle this operation.

Material Lend Process

I have mapped the MRN process in IFS with the relevant posting controls. Once the MRN is raised and the material is issued to the relevant party, the transaction is updated to a separate sub-ledger account created specifically for this scenario.

The same approach will be applied when materials are transferred for settlement purposes.

Material Borrow Process

For the material borrow process, I mapped the normal PO process with a separate supplier group. Once the GRN is completed, the transaction will not post to the normal RNI account; instead, it will post to the dedicated sub-ledger account.

Clarification Required

For supplier payment handling, I created a new payment method named “LOANSETTLEMENT.” Once the supplier debit invoice is updated, the transaction is transferred to the GL through the sub-ledger account.

We are using payment method such as cash on delivery/Cheque or any other payment method. Only returning materials once the stocks arrived. This is the reason to apply this kind of process.

My concern is regarding the configuration of this new payment method:

  • What should be defined as the Payment Format?
  • Should there be any client/account mapping maintained for this scenario?
  • Or can the Payment Format and related mappings remain blank since this is not a standard cash/cheque/bank payment process?

I would appreciate your clarification on the best practice for handling this configuration.

 

Regards,

TharakaN

T
Sidekick (Customer)
Forum|alt.badge.img+5

Hi Tharaka,

 

If possible, could you please explain your scenario in a bit more detail?

Based on your explanation, it appears that you are purchasing the goods instead of doing the payment to customer you are selling the goods to. In such a case, you may need to perform AP/AR netting, provided the customer is also maintained in the system.

For this, you can create a separate payment method for AP/AR netting with an empty payment format, so that no payment file will be generated during the process. If your business case is different kindly provide the case detail.

Hi ,

y business case is slightly different from the standard supplier payment process. In our organization, there is a material lend/borrow process, which is currently managed manually through Excel. I have introduced a more systematic approach in IFS to handle this operation.

Material Lend Process

I have mapped the MRN process in IFS with the relevant posting controls. Once the MRN is raised and the material is issued to the relevant party, the transaction is updated to a separate sub-ledger account created specifically for this scenario.

The same approach will be applied when materials are transferred for settlement purposes.

Material Borrow Process

For the material borrow process, I mapped the normal PO process with a separate supplier group. Once the GRN is completed, the transaction will not post to the normal RNI account; instead, it will post to the dedicated sub-ledger account.

Clarification Required

For supplier payment handling, I created a new payment method named “LOANSETTLEMENT.” Once the supplier debit invoice is updated, the transaction is transferred to the GL through the sub-ledger account.

We are using payment method such as cash on delivery/Cheque or any other payment method. Only returning materials once the stocks arrived. This is the reason to apply this kind of process.

My concern is regarding the configuration of this new payment method:

  • What should be defined as the Payment Format?
  • Should there be any client/account mapping maintained for this scenario?
  • Or can the Payment Format and related mappings remain blank since this is not a standard cash/cheque/bank payment process?

I would appreciate your clarification on the best practice for handling this configuration.

 

Regards,

TharakaN

Hi ​@Sandeep Kumar  This is my explanation on this. Please advise.

Regards,

TharakaN

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