Cash Management: To Modify a Payment Method

In this activity, you will learn how to set up a payment method for use in accounts receivable and accounts payable.

Story

Suppose the SweetLife company uses checks to pay for its vendor bills and to receive payments for customer invoices. Acting as an administrator, you will modify the CHECK payment method (which is predefined in the system) so that it can be used in accounts receivable and accounts payable.

Process Overview

In this activity, on the Payment Methods (CA204000) form, you will update the settings of the CHECK payment method.

System Preparation

Before you start modifying any existing payment method, make sure that the following tasks have been performed in the system:

  1. The company and its actual ledger have been created, as described in Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
  2. The cash management preference settings have been defined, as described in Cash Management: To Specify Cash Management Preferences.
  3. The cash accounts related to the payment method have been linked (in the cash account settings) to the payment method, as described in Cash Management: To Create Cash Accounts.

Step: Setting up the CHECK Payment Method for Use in AP and AR

To make the needed changes to the CHECK payment method, which will be used in accounts payable and accounts receivable, do the following:

  1. Sign in to the company you have prepared with the admin username.
  2. Open the Payment Methods (CA2040PL) list of records, and select the CHECK payment method. The system opens the payment method on the Payment Methods (CA204000) form.
  3. In the Summary area, select the Use in AR check box.
  4. Make sure that the Use in AP check box is selected.
  5. On the Allowed Cash Accounts tab, for the 10200 cash account, select the AP Default, Use in AR, and AR Default check boxes.

    Payment methods are linked to cash accounts, and you have selected the 10200 cash account as the default one for the payment method used in accounts payable and in accounts receivable.

  6. On the form toolbar, click Save.