Utility payments are a major source of revenue for many companies. However, handling them manually is costly and cumbersome. With increasing volumes of one-time and recurring payments, the demand for a better self-service option has never been higher.
Traditionally, banks have allowed customers to make payments for the services of specific institutions and utility providers against bills issued by them. These are called bill payment transactions and are a contract between the bank, the institution or the utility provider and the customer. Whenever your bank processes such a transaction, it is important to maintain a product for each of the different kinds of utility services that you offer and also specify the accounting details, charges and rates that apply for the particular type of service offered.
A product can be defined for processing a utility payment in the UP Product Definition screen. You can also maintain the specific details about the account or GL for which the banking entry needs to be posted when the product is used to process a payment transaction for a particular utility provider, in the Accounting Rates and Charges Maintenance (ARC) screen.
Historically, there has been little harmonization between countries when it comes to managing the billing process for utility services and this has led to a lack of interoperability in terms of information flows. This is changing as more and more utilities move to implement a new payment system that enables a faster, simpler, and more secure way of handling their payments. utility payment system