Question

Supplier electronic payment


Userlevel 5
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  • Sidekick (Customer)
  • 107 replies

what are the steps for enabling the supplier electronic payment and what are the advantages of using that.


5 replies

Userlevel 7
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Dear @m.arif 

what exactly do you understand by “supplier electronic payment”, do you have an example?

Userlevel 5
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hi @Link  , i just wanted to understand why in some payment methods , electroinc payment address is not enabled.

Userlevel 7
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There are several types of payment methods.
If payment method is going to produce payment file for credit transfer from your company bank account to supplier bank account; file which you bank will process and execute payments - such payment method needs electronic payment address (target bank account and payment routing options). 

If payment method is going to produce check, or simply mark invoice as paid by cash or credit card directly to the supplier - system does not need to store any additional information about payment address - as supplier bank account is simply not used in the payment process - at least for paying party. 

From my European experience, electronic payment is most commonly used, it does not require any material transfer (like cash or check) or interaction, and is executed in fastest possible way. I think payment by cash is not advisable except for very small-value and one-time transactions, and checks are old-fashioned, slow and problematic payment method.

Userlevel 5
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Thanks @Adam Bereda  , good explaination but why it is greyed for some payment methods , how can i enable it if  i want to transfer the payment to supplier as you said through bank.

Userlevel 7
Badge +15

Hello,
Each payment method is connected with payment format, and it is payment format deciding on payment address requirements. Some formats, e.g. CHECK or EMPTY do not require any bank address details, while other may have different requirements. 
It might be possible to change payment format connected to a method, which in turn will result in payment address enabling/disabling, but in general it is not recommended, as no historical transactions are updated in the process. If you want to start using electronic payments in a specific format, you should rather create new payment method, connect this method to your suppliers and define their bank accounts.

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