Payments refers to the processing of payments between companies, customers, suppliers and other payment partners. It encompasses both incoming and outgoing payments and can be made in cash or cashless.
What types of Zahlungsverkehr are there?
Basically, a distinction can be made between cash and cashless Payment transactions.
- Bearers Payment transactions: Payments are made or received immediately in cash.
- Cashless Payment transactions: Amounts of money are transferred, for example, by bank transfer, direct debit or via other electronic payment methods.
Payment transactions and bank transactions – what is the difference?
The Payment transactions describes the actual execution or receipt of a payment. A bank entry on the other hand, denotes the accounting entry of a movement in a bank account.
In short: The Payment transactions moves money – the bank entry reflects the corresponding account movement in Bookkeeping.
What role does cash play?
Cash payments are also part of Payment transactions. Business cash receipts and cash disbursements can be documented via a cash register in accordance with the respective accounting requirements.
A Cash book serves to continuously document corresponding cash movements, provided that a Cash book must be maintained.
How does Payment transactions relate to open items?
Payments can settle existing receivables or liabilities. For example, a customer payment can clear an outstanding receivable, whereas a payment to a supplier settles a liability.
Outstanding Items (OPOS) show which receivables or liabilities have not yet been fully settled.
Payment transactions with customers and suppliers
Customer payments are frequently related to the Debtors ledger. In particular, receivables from customers are managed there.
Payments to suppliers can accordingly be related to liabilities from Accounts payable.
