Create payment advice in SAP Business One

Create and automatically send payment advices in SAP Business One

The most important points in brief

A payment advice notice announces a payment or confirms that it has been made.
SAP Business One does not include a dedicated function for automatic advice notification generation as standard.
The payment assistant carries out payment runs; the payment advice is then generated manually or via an add-on.
An add-on can automatically generate payment advices, send them via email, and archive them.
A payment advice notice is not mandatory, but it is useful for group payments, large amounts, and international transfers.
Recipients don't need to do anything initially: The notification serves to inform and facilitates the allocation of outstanding items.

The Payment advice in SAP Business One Payment notification plays a practically important, yet often underestimated, role in payment transactions. It informs the recipient that a payment has been made or is imminent, and facilitates the allocation of payments to outstanding invoices.

This guide explains, what content a payment advice notice requires, how shipping and receiving work and what options SAP Business One offers in its standard form as well as with an add-on.

What is a payment advice notice?

A Payment advice A payment advice note – also known as a payment notification, payment announcement, or payment advice note – is a document that informs the payee about a completed or upcoming payment. It contains the essential payment details and assists the payee with accounting.

A payment advice is no booking confirmation and has no direct legal effect. It is a helpful, but non-binding, informational communication.

Distinction from the payment itself

The payment advice accompanies a transfer or payment run, but does not replace it. The actual posting takes place in SAP Business One via the Payment assistants or as a manual outgoing payment.

Content and structure of a payment advice notice

To ensure the recipient can clearly allocate the payment, a meaningful payment advice The following information is included:

Field	Meaning
Sender	Name and address of the paying company
Recipient	Name and address of the payee or supplier
Payment date	Date on which the transfer was or will be executed
Payment amount	Total amount of payment, possibly in foreign currency
Invoice reference	Invoice number(s) that are being paid
Intended use / Reference	Unique reference for assignment at the recipient
IBAN / Bank details	Target account to which the payment will be made
Discount / Deductions	Discounts or other deductions taken, with justification

Clear intended use

The clearer the reference, the easier it is for the recipient to allocate the payment to their outstanding invoices. Collective payments with multiple invoices The payment advice is particularly valuable.

Fig.: Structure of a payment advice notice

Types of payment advices

Three main forms of payment advice are encountered in business transactions. They differ according to..., who issues the document and when it is sent.

Art	Exhibitor	time	Contents
Payment notification	Counter	Before payment	Announces when and how much will be paid.
Payment confirmation	Counter	After payment	Confirmed that the transfer has been executed.
Bank confirmation	Payer's bank	After execution	Official booking confirmation from the bank

In practice with SAP Business One, the Payment confirmation after the payment run The most common form. After execution via the payment assistant, the affected suppliers receive the notification.

Sending and receiving payment advice – what needs to be done?

Send payment advice

Shipping is not a legal obligation for paying companies, but it is a commercially sensible favor. It is particularly recommended:

in the case of collective payments that bundle several invoices,
for large sums of money where the supplier needs clarity quickly,
for international transfers with longer processing times,
if a discount has been deducted and the difference needs to be traceable,
in case of unusual payment terms or differing conditions.

Received payment advice

Suppliers who receive a payment advice notice are initially under no obligation to take any action. The following process supports the clean reconciliation of outstanding items:

Step	Description
1. Acknowledge the notice	Note down the announced payment amount and date, or record it in the ERP system.
2. Wait for payment to be received.	Please allow a few business days for the payment to arrive in your account. International transfers can take three to five business days.
3. Reconcile with open items	Reconcile the amount with the aforementioned invoice numbers and settle the corresponding open items in SAP Business One.
4. Resolve differences	Any discrepancies, such as those caused by discounts, should be clarified in the accounting records, and the payer should be contacted if necessary.

No compensation

A payment advice never replaces the actual receipt of payment. As long as the amount has not been credited to the account, The demand remains open..

Automatically create and send payment advices in SAP Business One

How to set up a payment advice process in SAP Business One?

Whether it's a payment assistant, add-on advice or automatic notification sending via email – we help with implementation.

Request a free initial consultation

Payment advice in SAP Business One – native standard

The standard version of SAP Business One is No dedicated function for automatically generating payment advices. The payment process is handled via the payment assistant under Banking → Payment Assistant. It processes transfers for outstanding liabilities in batches.

What the payment assistant does

Outstanding liabilities can be filtered by supplier, due date, amount, and payment method and compiled into a list. Payment run In summary, after execution, SAP Business One creates the corresponding journal entries and balances the open items.

Fig.: Payment advice creation

Payment advice in the standard format: Workaround options

Without an add-on, there are two common ways to... SAP payment advice to create:

method	Proceed	Expense
Crystal Reports printout	Create a custom print layout based on the payment receipt, containing the advice fields and exportable as a PDF.	Resources, one-time setup
Manual Excel template	Export payment data from the payment run and prepare it as an advice note in an Excel template.	High, with every payment run

Crystal Reports as an interim solution

Those who only occasionally need payment advices can work with a customized Crystal Reports layout. For the regular automated shipping A dedicated add-on is recommended.

Automatically create and send payment advices via add-on

For companies that regularly send payment advices to suppliers, an add-on offers a fully integrated process. Immediately after the payment run, an advice note is generated for each supplier and sent via email.

Typical process with add-on

Step	Description
1. Execute payment run	Select the outstanding liabilities and start the payment run. SAP Business One posts the payments and creates the journal entries.
2. Automatically generate notifications	The add-on recognizes the completed run and creates a document for each supplier with invoice items, discounts, and payment references.
3. Delivery via email	The notification will be sent to the email address stored in the supplier master data without manual intervention.
4. Archiving	The sent document is archived in the system and remains searchable at any time.

Advantages and practical tips

A consistently implemented payment advice process improves the Voting on both sides of payment transactions.

Advantage	For the payer	For the recipient
transparency	Verifiable documentation of every payment	Quick allocation to open items
Error reduction	Fewer inquiries from suppliers	Fewer reconciliation errors in accounts receivable
Discount Clarity	The deduction is documented and traceable.	Any differences are immediately explained.
Archiving	Proof of examinations	Booking history support

Maintain email address in supplier database

For automatic delivery, a valid email address must be stored in the supplier master data. This can be checked at Business partner → Supplier → Communication.

Frequently Asked Questions

Does SAP Business One have a native payment advice function?

No. The payment assistant executes payment runs, but does not generate any payments. no separate notification document. This requires a customized Crystal Reports layout or an add-on.

How can a discount be shown in the payment advice?

An add-on can specify the discount percentage, the amount deducted, and the resulting amount. Automatically display net payment amount. The Crystal Reports workaround requires the fields to be included in the layout.

Can a payment advice be generated for payments in foreign currency?

Yes. SAP Business One supports foreign currency payments via the Payment Assistant. A suitable add-on can... Foreign currency, exchange rate and equivalent in local currency to be displayed in the notification.

How to automate payment advice in SAP Business One?

Whether it's add-on selection, automatic notification sending or optimization of the payment process – we accompany the implementation from start to finish.

Request a free initial consultation

How to set up a payment advice process in SAP Business One?

How to automate payment advice in SAP Business One?

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