Bank payment fees covered by vendors

In Japan, the bank payment fees are usually covered by vendors (the receiving party). This topic answers some of the frequently asked questions about bank payment fees that are covered by vendors.

When you make payments to a vendor, the bank payment fees can be covered by you or by the vendor. When the vendor covers the bank payment fees, you can set up the process in such a way that bank payment fees are automatically deducted from each payment that the company makes to the vendor. Complete the following tasks to set up and calculate the bank payment fees for a vendor:

  1. Indicate that the vendor covers the bank payment fees.
  2. Create a payment rule to calculate the bank payment fees that are deducted from payments that the company makes to the vendor.
  3. Set up a payment fee by using the payment rule.
  4. Create and post a payment for the vendor who pays the bank payment fees.
  5. Generate the payment file.

Can I specify criteria that I can use to calculate bank payment fees?

Yes. On the Bank rules for payment fee page, you can create a bank rule to set up criteria that you can use to calculate payment fees. After you create the bank rule, you can use it to set up a payment fee on the Payment fee page. For example, you can create the following rules for bank accounts.

Condition for the rule ID Third party bank group Relationship Company bank group
Bank accounts in the same bank Bank_Same Bank code = Bank code
Bank accounts in different branches of the same bank Branch_Different Bank code = Bank code
Branch code <> Branch code
Bank accounts in different banks Bank_Diff Bank code <> Bank code

Can I set up a rule to compare values?

Yes. You can set up a rule to compare the value that you specify in the Value field to the filter value that you select in the Third party bank group field on the Bank rules for payment fee page. For example, to create a bank rule that applies to a bank that has a bank code of 001, select Bank code in the Third party bank group field, select = in the Relationship field, and then enter 001 in the Value field.

Condition for the rule Third party bank group Relationship Value
A bank account that is assigned to a value Bank code = 001

How can I calculate the consumption tax on the bank payment fees?

To calculate the consumption tax on the bank payment fees, set up the following information on the General tab of the Payment fee setup page:

  • Specify whether the payment amounts in the Fee amount field include taxes. To include sales tax in the fee amount, on the Payment journal page, on the Setup tab, select the Amounts include sales tax check box.
  • In the Method of payment field, select the payment method.
  • In the Percentage/Amount field, select Percent.
  • In the Fee amount field, specify the payment fee percentage.
  • In the Minimum and Maximum fields, set the payment threshold.

How can I differentiate bank accounts from the same bank?

To differentiate two different bank accounts within the same bank, you can use the bank group as a filter for the bank rule. On the Bank rules for payment fee page, in the Third party bank group and Company bank group fields, select Bank groups. Then, in the Relationship field, select <>.