Payment Selection – Invoice Selection Business Scenarios

Introduction

Payment Selection in iDempiere offers multiple filtering options on the Create From process to control which vendor invoices are pulled into a payment run. It is used by retail finance teams to prioritize specific suppliers, respect due dates, capture early payment discounts, target vendor categories, enforce procurement matching, and restrict processing to a chosen document type.

The filter combination chosen directly affects which invoices appear as Payment Selection Lines and how accurately cash outflow is planned.

Retail Scenarios

The following scenarios reflect common retail procurement situations supported by the standard Payment Selection functionality in iDempiere.

  • Vendor-Specific Payment Processing
  • Due-Date Based Payment Processing
  • Early Payment Discount Processing
  • Business Partner Group Based Payment Processing
  • Match Requirement Based Payment Processing
  • Document Type Based Payment Processing

Vendor-Specific Payment Processing

Overview

Used to prioritize payments for one supplier to maintain supply continuity or meet agreed payment commitments.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Business PartnerHAVELLS INDIA MARTRestricts invoice selection to one vendor
Only DueUncheckedLeaves due-date filtering open for this run
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Payment Selection and click Create From.
  • Set Business Partner to the required vendor.
  • Leave other filters at default unless additional restriction is needed.
  • Click OK to retrieve eligible invoices for that vendor.

System Behavior

  • Retrieves invoices belonging only to the selected vendor.
  • Creates Payment Selection Lines for each eligible invoice.
  • Excludes invoices from all other vendors from this run.

Retail Example

The finance team settles all pending invoices for HAVELLS INDIA MART to release a pending purchase order.

Outcome

  • Supplier payments can be prioritized without affecting other vendor balances.
  • Supply continuity is maintained with the prioritized vendor.

Due-Date Based Payment Processing

Overview

Used to release payments only as invoices become due, preserving cash flow and avoiding early payments.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Only DueCheckedRestricts selection to invoices currently due
Due Date30-Jun-2026Filters invoices due on or before this date
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Create From and enable Only Due.
  • Enter the Due Date up to which invoices should be included.
  • Click OK to retrieve invoices due on or before that date.

System Behavior

  • Retrieves invoices with a due date on or before the entered date.
  • Creates Payment Selection Lines for each eligible invoice.
  • Leaves invoices due after the specified date out of this run.

Retail Example

The finance team settles all supplier invoices due on or before 30-Jun-2026.

Outcome

  • Payments are released on time without early disbursement.
  • Working capital is managed more predictably.

Early Payment Discount Processing

Overview

Used to capture supplier discounts available when invoices are settled within a defined discount period.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Only DiscountCheckedRestricts selection to discount-eligible invoices
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Create From and enable Only Discount.
  • Leave other filters as needed for the run.
  • Click OK to retrieve invoices currently eligible for a discount.

System Behavior

  • Retrieves invoices that qualify for a supplier discount within the active period.
  • Creates Payment Selection Lines for each eligible invoice.
  • Calculates the Discount Amount on the resulting Payment Selection Line.

Retail Example

A supplier offers a 2% discount if payment is completed within 10 days of the invoice date.

Outcome

  • Procurement costs are reduced by capturing available discounts.
  • Early settlement decisions are driven by system-identified eligibility.

Business Partner Group Based Payment Processing

Overview

Used to process payments for a defined vendor category instead of all suppliers at once.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Business Partner GroupRegistered VendorRestricts selection to vendors in this group
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Create From and set Business Partner Group to the required category.
  • Leave Business Partner blank to include all vendors in the group.
  • Click OK to retrieve eligible invoices for the group.

System Behavior

  • Retrieves invoices belonging to vendors within the selected group.
  • Creates Payment Selection Lines for each eligible invoice.
  • Excludes vendors outside the selected group from this run.

Retail Example

Business Partner Group is set to Registered Vendor to process payments only for approved suppliers.

Outcome

  • Payments are processed for a specific vendor category without disruption to others.
  • Vendor categorization supports structured payment planning.

Match Requirement Based Payment Processing

Overview

Used to ensure procurement documents are matched before releasing supplier payments.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Match RequirementPurchase Order and ReceiptDefines the validation required before payment
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Create From and set Match Requirement to the required validation type.
  • Leave other filters as needed for the run.
  • Click OK to retrieve invoices meeting the matching requirement.

System Behavior

  • Retrieves invoices matching the selected validation requirement.
  • Supports PO Match, Receipt Match, or both, depending on the setting.
  • Excludes invoices that have not met the matching requirement.

Retail Example

Match Requirement is set to Purchase Order and Receipt before releasing payment to a supplier.

Outcome

  • Payments are released only after procurement transactions are properly validated.
  • Risk of paying for unverified or incomplete deliveries is reduced.

Document Type Based Payment Processing

Overview

Used to restrict payment processing to a specific document category, such as AP Invoice.

Key Setup / Inputs

Field in iDempiereSample ValuePurpose
Document TypeAP InvoiceRestricts selection to the chosen document category
Payment RuleCheckFilters invoices by payment method

Process Flow

  • Open Create From and set Document Type to the required category.
  • Leave other filters as needed for the run.
  • Click OK to retrieve documents matching the selected type.

System Behavior

  • Retrieves documents matching the selected document type.
  • Creates Payment Selection Lines for each eligible record.
  • Excludes documents of other types from this run.

Retail Example

Document Type is set to AP Invoice to process only standard vendor invoices in this run.

Outcome

Other document types remain unaffected and available for separate processing.

Payment processing is restricted to the required document category.