About charge payoffs

A charge payoff is a group of credit card transactions that you want to pay off. When you create a charge payoff, you create an Accounts Payable AP supplier invoice for the total charges that you then pay on the Pay AP supplier invoices page.

Credit card transactions entered in Cash Management exist as a liability until you create a charge payoff that then transfers the liability to Accounts Payable.

After you enter all your charges on your statement, create a charge payoff for the following transactions:

For multi-entity companies in multiple base currencies, create charge payoffs at the entity level. The charge payoff is recorded in the entity's base currency.

Multiple AP supplier invoices are created if credit card transactions differ in currency and exchange rate.

Payoff charges are not supported if the payment transfer was created before the entity. If the entity is newer than the payment transfer, create a new payment transfer for charge payoffs.

Negative amount charge payoffs

Negative amounts from credit card line items or transactions are passed along as credits to Accounts Payable where you can apply them as you see fit. The following table describes the different scenarios for creating charge payoffs for these negative amounts.

Credit card transaction Line items Example

Negative credit card transaction

You can select a negative credit card transaction and create a payoff, which helps you account for a refund or credit correctly.

You receive a refund or return credit for negative (R500.00). You can now create a negative payoff for the (R500.00), which then automatically creates, an AP supplier invoice on the AP side for negative (R500.00). You can then apply the credit on the AP side as needed.

Partial pay of a negative multi-line transaction

You have a multi-line credit card transaction and each line is for a negative amount, partial payoff is not available. Your charge payoff needs to include the entire amount of the transaction.

An error message appears if you have a credit card transaction that includes three negative lines that total (R700), and you try to create a charge payoff for negative (R300).

Partial payoff of an inline credit in a multi-line transaction

There's validation now in place that prevents payoff of only the negative line item in a multi-line transaction that also includes positive amounts. In this scenario, the entire amount of the credit card transaction needs to be paid off.

An error message appears if you have a credit card transaction with three lines, two of which are positive and one of which is a negative (R500), and you try to create a charge payoff for the (R500) only.

Partial payoff of a positive and negative transaction

You can create a partial payoff for multiple transactions at least one of which includes a negative amount. But the partial payment can be made on the positive amount only.

You have two credit card transactions, one has three line items that total R3,500, and the other has one negative line item for (R500). In this scenario, you can make a partial payment on Transaction 1, but not on Transaction 2.

Credit card transaction Line items

Distribution: R750

Charge payoff amount per line
Transaction 1:
  • Line 1: R500
  • Line 2: R1,000
  • Line 3: R2,000
 (R250)
Transaction 2: (R500) (R500)

Zero amount transactions

You can account for single credit card transactions that net to zero.

You have a credit card transaction that has a positive R1,000.00 charge for salaries, and a negative (R1,000.00) charge for contract labor. You create a payoff for the transaction that nets to zero, which then automatically creates a AP supplier invoice with two lines that net to zero on the Accounts Payable side.

Charges for multiple transactions that net to zero

You can select multiple credit card transactions that net to zero and combine them in one payoff.

You have two separate credit card transactions, one for R2,500.00 and the other for negative (R2,500.00). You select both transactions and create a payoff that nets to zero. Likewise, the auto-created AP supplier invoice on the Accounts Payable side nets to zero and includes both the positive and negative lines.