Description
The payment conversion function has the following effects:

• Cleared invoices from Project Cash Management are evaluated under the
"Payment" value type.

• Partial payments and remaining items which reference invoices are
recorded in Project Cash Management
Cleared invoices
When you enter an invoice, Project Cash Management automaticallygenerates a document with the "Invoice" value type. This value typeremains in place even when the invoice has been cleared. When you thenrun the "Payment conversion" function, the cleared invoices areevaluated in Project Cash Management under the "Payment" value type.Note that this only happens after you start the "Payment conversion"function.
Partial payments and residual items
Partial payments and residual items referencing invoices are notautomatically recorded in Project Cash Management. A pair ofdocuments, with the value types "Invoice" and "Payment" is created, butonly when you run the payment conversion function.
Example
A partial payment of $50 is made in respect of an invoice for $100.When you run the Payment conversion function, the invoicingdocument with value type "Invoice" remains in place. In addition, thesystem uses the partial payment to create a pair of documents with therelevant invoice account assignment - once document, value $50, withvalue type "Invoice" and another of $50 with value type "Payment". Thebalances added together give the correct figures. If the partialpayment document is later cleared, running the payment conversion againwill update the values as appropriate.
Discounts, price reductions and exchange rate differences aredisregarded by the payment conversion process - meaning that, if aninvoices is considered cleared, the full amount of the invoice isevaluated as a payment, not the payment actually made. Theprofit and loss readjustment inprogram SAPF181 subsequently ensures that discounts are taken intoconsideration.
For more information on the profit and loss readjustment, read theprogram documentation for SAPF181.
The program parameters are as follows:
Company code
That is, the company code of the invoices you want to convert
Fiscal year
That is, the fiscal year of the invoices you want to convert
Document number interval
That is, the document numbers of the invoices you want to convert
Test runs
If you choose this, the documents in the database are not changed.
List of transferred documents
The program produces a list of the documents which it has converted to"Payment" status. If you so choose, it also produces a list of thepartial payments and residual items recorded and cleared.
List of open documents
The program produces a list of the documents which it did not convertinto payments - that is, a list of the invoices still open.

Output
Depending on the parameters you choose, the program outputs thefollowing lists:
List of transferred invoices
List of transferred partial payments/residual items
List of cleared partial payments/residual items
List of documents not transferred

Payment conversion example
Post invoice with two vendor items and one expenditure item
70 CR: Vendor1
30 CR: Vendor2
100 DR: Expenditure, commitment item A1 (with financialtransaction 30), WBS element PR1
The expenditure item is split up in CBM which records two items,account assignments A1 and PR1, as an invoice online:
70 - : A1,PR1, invoice
30 - : A1,PR1, invoice
and evaluates them under "Invoices" in the information system.
If the first item is cleared by a payment, this has no online effect onCBM. If you start program RFFMS300 with a document number intervalwhich includes the number of this invoice, the first item is convertedinto a "Payment". The period is postponed to the one determined by thepayment.
70 - : A1,PR1, payment (period from Vendor1)
30 - : A1,PR1, payment (period from due date)
When the second vendor item is paid and you run the program again, thesecond item is also evaluated under "Payments", along with the paymentdate:
70 - : A1,PR1, payment (period from vendor1 payment date)
30 - : A1,PR1, payment (period from vendor2 payment date)
Partial payments and residual items
A simple vendor invoice in Financial Accounting
100 CR: Vendor1
100 DR: Expenditure, commitment item A1 (with financial transaction30, project PR1
is recorded online in CBM.
100 - : A1,PR1, invoice
If a payment of more than $50 is made for this invoice, it can berecorded in Financial Accounting as a partial payment or as a residualitem referencing an invoice.
Partial payment
The following FI document is generated when you post a partial payment:
50 CR: Bank
50 DR: Vendor1; open, referencing invoice
The original invoice is not cleared. The program therefore leaves theexpenditiure item in "Invoice" status.
100 - : A1,PR1, invoice
If you start the program with the invoice document number interval, apair of documents is created from the open vendor item:
50 + : A1,PR1, invoice
50 - : A1,PR1, payment
The account assignments A1 and PR1 mean that there are now balances of$50 each in the "Invoice" and "Payment" statuses. The informationsystem shows $100- and $50 + under "Invoices" and $50 - under"Payments"
Residual items:
When you post a residual item, the following FI document arises:
50 CR: Bank
100 DR: Vendor1; cleared
50 CR: Vendor1; open, referencing document
The original invoice is cleared; the program sets the expenditure lineto status "Payment":
100 - : A1,PR1, payment
At the same time, the program creates a pair of documents from theexpenditure line:
50 - : A1,PR1, invoice
50 + : A1,PR1, payment
The account assignments A1 and PR1 meant that there are now balances of$50 each in with status "Payment" and "Invoice". The informationsystem shows balances of 100 - and 50 + under "Payments" and 50 - under"Invoices".
If there is more than one expenditure item, the invoice is split asappropriate.
If the open vendor item in the partial payment or residual itemdocuments is cleared later (typically by means of a payment withclearing), a later run of this program resets the invoice correctionline of this CBM document to "Payment". There is a hidden parameter,P:PPDEL, which you can use to specify that the partial payment orresidual item document in such cases be deleted.

Note:
You can run this program as often as you wish without any adverseeffect on the result. The system can identify cases where invoiceswhich have already been converted or pairs of documents generated frompartial payments.
For performance reasons, we recommend you run the program in backgroundprocessing where large numbers of documents are involved.