You can assign a system-defined payment type, such as , , or , to any user-defined methods of payment. Payment types are optional, but they are useful when you validate electronic payments, when you must quickly determine which payment type a payment uses, and when you must print reports that do not contain misspelled payment types. You assign payment types to payment methods in the form.
When you select a default payment method for a vendor in the form, a payment type is displayed in the field if a type is associated with a method. However, when you enter transactions, you specify a user-defined method of payment, not a payment type.
Validation of electronic payments
When a payment type of is associated with a payment method, additional validation is performed when you try to post. This is especially important when you are in the process of setting up electronic payments, because vendors or banks might ask you to wait until a specific date before you process transactions to that bank account.
You can specify the active and expiration dates for a vendor bank account to determine when it is active, and then assign a payment type of to a payment method. The additional validation then will be performed. The validation consists of verifying the active date of the vendor's bank account against the transaction date. For example, for a payment in the , when the date in the field in the form is blank, prior to, or equal to the payment transaction date, the payment is generated. If the value is after the transaction date, you must wait to generate the payment until the active date.
This validation does not occur if no payment type is assigned to the payment method that is being used. In this case, the payment always is generated, regardless of the active date. If you post multiple payments, the validation occurs for all payments that have payment types assigned to the payment methods. You can post the payments that do not have errors.
Validation for the type occurs in the following forms:
form – Generate a payment to activate validation.
The bank account that is used in the validation process is specified in the field on the tab in the lines of the form.
form or form – Generate a payment to activate validation.
form – Generate remittance to activate validation.
form – Generate a settlement to activate validation.
No validation to determine whether a bank account is active is performed if you select , , or as the payment type. These payment types are provided to help you clarify the user-defined methods of payment.