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Enter/Inquire/Update Checks, Drafts, Clearing Transactions, Write-offs, Chargebacks, Deductions, and
Enter/Inquire/Update Checks, Drafts, Clearing Transactions, Write-offs, Chargebacks, Deductions, and
The Payment Entry and Application Conversation is used to record customer payments and identify the open items affected by the payments. Customer payments can be checks, drafts, clearing transactions, write-offs, or chargebacks. Checks and drafts can be applied to invoices, debit/credit memos, and finance charges generated from the Invoice and Debit/Credit Memo Entry Program (AR030E). Checks and drafts can also be applied to invoices and debit/credit memos generated from the Order Processing module. This conversation can also be used to record deductions in the same session that a payment has been applied; however, the payment must be applied before recording the deduction.
If installments were generated for an invoice, they are treated like any other open item, and you may make any type of transaction against them. Invoices with installments contain three extra digits at the end of the invoice number to identify the installment number.
If the sequential fiscal numbering option is used, a fiscal number is generated for the transaction if VAT is generated due to the transaction. If a fiscal number is assigned to the transaction, it is generated during the VAT extract process, not when the transaction is entered.
Clearing transactions are used to clear both positive and negative debit/credit memos, and finance charges. Write-offs are used to write off invoices, debit/credit memos, and finance charges. Chargebacks can be created for underpayments or overpayments made by your customers. Chargeback processing can be set-up (on Reference File category 350) to automatically generate the necessary documents (debit/credit memos). The Payment Processing Conversation is also used to update previously applied payments, inquire into previously applied payments, and apply payments from on account.
Each payment consists of one payment header record and one or more application detail records. The header identifies the amount and date of the payment. Each application detail record identifies an open item to which the payment is applied and includes how much of the payment was applied, how much discount was taken, whether a small balance write-off was taken, and whether a chargeback was created.
Deductions can also be recorded through the Payment Entry and Application Conversation. A deduction is generally not against a specific invoice and it does not affect the amount of the specific invoice. The deduction can be recorded on the Deduction Entry screen (AR120S07).
Display the Transaction Screen
Enter the Payment Entry and Application option on the Accounts Receivable Menu. This will display the Payment Header screen (AR120S01). If the user is not authorized to enter new transactions, the Transaction Selection screen (AR120S04) is displayed. From the transaction screen, you may update, inquire, or delete payments. For detailed information, refer to the Key Concept and Procedures on Update, Inquire, or Delete a Payment Application in this section.
Enter and Apply a Check
To enter a check, first enter data in the input fields on the Payment Header screen and press the Enter key. Enterable fields are underlined on the screen.
Four types of data are entered on the screen: key data, control data, indicative data, and processing control data.
Key data fields are used to identify transactions in the system. These fields appear on the top third of the Payment Header screen. Required key data fields are the customer number and payment number.
Control data fields are used to ensure that Payment Header screen amounts and Application Detail screen amounts are kept in balance. The required control data field on the Payment Header screen is the amount field.
Enter specific information about the check in the Indicative data fields. Required indicative data fields are the bank code and payment date.
For some fields, default values are initially displayed on the screen. The operator can override all default values if necessary by keying the new value over the displayed value.
The accounting date is used to determine the period in which the transaction is distributed to the general ledger. If the accounting date is not entered, the payment date is used as its default value.
The bank code is used to determine the bank account into which the payment is deposited. To specify the bank code, do one of the following:
· Enter the bank code.
· Use the customer default value by either blanking out the initially displayed value or leaving the field blank if no value was initially displayed. (This requires that a default value has been specified for the customer on the Customer File.
The processing control fields are displayed on the bottom third of the Payment Header screen. These fields are used to choose the way the payment will be applied and to control the processing flow of each payment application.
Several processing control fields are required. The default values for the following required processing control fields are:
· Corporate List - N
· Apply to specific - N
· Place on-account - N
· Apply to oldest - N
· Open item list - N
· Mass Entry - N
The operator can override these default values to choose any of the six processing control methods.
To validate the Payment Header screen data, press the Enter key. If any field is invalid, the Payment Header screen is redisplayed, the invalid field is highlighted, and an error message is displayed. The processing control field chosen determines which screen follows the header.
Enter and Apply a Check - Corporate List
If the Corporate List option is chosen, the payment can be applied to any of the documents belonging to any of the customers of the corporate customer specified in the Customer field. The payment number must not have been used already for any of the corporate customer's children. The Corporate List option is not valid for Bill of Exchange payments.
Enter and Apply a Check - Apply to Oldest
If the apply to oldest option is chosen, the payment is applied to the oldest item(s) on file. The payment must exactly clear one or more open Items. After the Enter key is pressed, a blank Payment Header screen is displayed for entry of the next payment.
Enter and Apply a Check - Place on Account
If the place on account option is chosen, the payment is credited to the customer's account rather than applied to open items. After the Enter key is pressed, a blank Payment Header screen is displayed for entry of the next payment.
Enter and Apply Check - Apply to Specific
If the apply to specific option is chosen, the payment can be applied in several different ways. In all cases, the first company/location and document number must be entered. If the document contains installments, you must also specify the installment number (last three digits of the document/invoice number). With this option, you do not have to enter the customer number, it will be retrieved from the document if not entered.
The pay code field is also used to determine how the payment is applied. Entry of the pay code is optional. Pay codes are defined by the user on the Reference File category 337.
To apply a payment amount that exactly clears a specific open item, enter a pay code for gross or net and press the Enter key. The payment is applied and a blank Payment Header screen is displayed for entry of the next payment.
To apply a payment amount greater than the amount of a specific open item and place the balance on account, choose place on account along with apply to specific. Then enter a pay code for gross or net, and press the Enter key. The open item is cleared and the balance of the payment is placed on account. Then, a blank Payment Header screen is displayed for entry of the next payment.
To apply a payment amount greater than the amount of a specific open item and apply the balance to other open items, enter a pay code for gross or net and press the Enter key. Information telling the system to clear the open item is stored online by the system and an Application Detail screen (AR120S03) is displayed. This screen prompts for the next open item to be paid. If the limit to company/location document field was entered on the Payment Header screen, only documents for that company/location can be entered on the Application Detail screen.
On the Application Detail screen, the payment amount initially displayed is the same amount entered on the Payment Header screen. The applied amount displayed is the amount applied to the first specific open item. The on-account amount displayed is the amount still to be applied. All three fields are protected. As payments are applied to specific open items, the amount in the on-account field decreases and the amount in the applied field increases by the same amount. To apply part or all of the payment to an open item, enter a pay code for gross or net next to the document field and press the Enter key. The payment amount, on-account, and applied fields are updated automatically.
After the application to this open item is completed, enter the next company/location and document number on this Application Detail screen. Default information for the document is displayed. Continue to apply the payment using the Application Detail screen.
To review a payment application made to a specific open item, enter that open item's company/location and document number on the Application Detail screen. The Application Detail screen is displayed showing the way the application currently affects the open item. (The open item is not actually cleared until the transaction is ended.) If necessary, the payment amount can be changed.
To revise an application to an open item, enter the pay code for reset and press the Enter key. The payment amount, on-account, and applied fields are changed to show that the application was not made.
To revise an application without resetting the Application Detail screen, key new data over the data displayed on the screen.
Once all of the payment amount is applied, end the transaction. The open items are then cleared. (See End Transaction.)
When apply to specific is chosen, if the pay code for detail is entered on the Payment Header screen, the document identified in the company/location and document number fields is displayed on the Application Detail screen. A detailed application can then be made on this screen. If an application was already made to the document, that application can be reviewed on the Application Detail screen. The payment amount can be changed if necessary.
Enter and Apply a Check - Open Item List
Another processing control field available is the Open Item List field. To display the Open Item List screen (AR120S02), enter a Y next to this field on the Payment Header screen and press the Enter key. The Open Item List screen is used to apply payments to open items. Two lines are available for the display of each open item. This screen is initially displayed in the one-line format. To view data on the second line, press F6-Fold/Truncate. To return to the one-line format, press F6 again.
The Open Item List screen initially displays the ten oldest open items by document date. If the limit to company/location field was filled in on the Payment Header screen, all the open items displayed on the Open Item List screen are those of that company/location.
You may apply credit memos directly to other open items from the Open Item List Screen when applying payments.
If installments were generated for any of the open items, each open installment will appear as a line on the open item list like any other open item.
The roll keys are used to page forward (Rollup) and backward (Rolldown) through the open items.
If the open item to which the payment should be applied is not one of the ten oldest, page forward (Rollup) through the list of open items from the oldest to the most recent.
The payment amount initially displayed on the Open Item List screen is the same payment amount entered on the Payment Header screen. Before any of the payment is applied, the amount in the On-Account field is equal to the payment amount. As the payment is applied to specific open items, the amount in the On-Account field decreases and the amount in the Applied field increases by the same amount. The Payment Amount, On-Account, and Applied fields are protected.
Enter pay codes for either gross or net next to the open items that can be paid without viewing the Application Detail screen. After the Enter key is pressed, the Payment Amount, On-account, and Applied fields are updated. To revise an application to an open item, enter the pay code for reset and press the Enter key. The Payment Amount, On-Account, and Applied fields are changed to show that the application was not made. Enter the pay code for detail next to the open item(s) to be paid using the Application Detail screen. Press the Enter key, and the Application Detail screen for the oldest open item is displayed.
The Application Detail screen must be displayed to:
· Apply partial payments.
· Take a partial discount.
· Take a small balance underpayment write-off.
· Create a chargeback transaction and/or document.
· Review detailed information about the open item.
After a payment is applied to the oldest open item with a detail pay code, press the Enter key. The Application Detail screen for the next open item is displayed. As long as open items on the Open Item List screen have detail pay codes, those open items are displayed on successive Application Detail screens. It is not possible to specify the next company/location document on the Application Detail screen in this situation. When no more open items from the Open Item List screen have detail pay codes, the Open Item List screen is redisplayed. To return to the Open Item List screen before all the Application Detail screens are displayed, press F10-Return To List. To review the header screen from the Application Detail screen, press F16-Review Header.
F12-Apply to Oldest, can also be used from the Application Detail screen. After the payment is applied to the oldest open items, the Open Item List screen is redisplayed regardless of whether additional open items were selected for detail.
F21 - Record Deductions, can also be used from the Application Detail screen. This command key will take you to the Deduction Entry screen (AR120S07) which will allow you to enter deductions for a payment that has been applied during the session. For more information, refer to the key concept and procedure for Deductions in this section.
When all payments have been applied on the Application Detail screen or Open Item List screen, if the On-Account field contains zero, press F22-End Transaction. The Application Header screen is redisplayed. If the On-Account field is greater than zero, press F23-End Transaction/On-Account. The remaining payment account is placed on account and the Payment Header screen is redisplayed.
Enter and Apply a Check - Mass Entry/Payment Application
The last processing control field available is the Mass Entry Option field. The Mass Entry/Payment Applications screen (AR120S06) is used to enter a number of pre-determined open items. The payment entered on the Payment Header screen will be applied to the open items entered in the mass entry subfile. The document type, document number, and application amount are required for each open item entry. The company and location will default from the paying company/location on the header if not entered. A Reset field allows an open item line to be removed from a payment application. A command key (F9=Payment Applications) on the Open Item List screen and Deduction Entry screen displays the Mass Entry/Payment Applications screen so that you can see all of the payments that have been applied for the customer during the current session.
Inquire About or Correct a Payment Application
To inquire or correct a payment application, press F7-Transaction Select on the Payment Header screen. The Transaction Selection screen is displayed.
To select a payment, enter the payment number, customer number, and the appropriate transaction code (O, C, I) on the Transaction Selection screen.
When the Enter key is pressed, the Payment Header screen is displayed.
Inquire
If the payment number is left blank, the Payment List screen is displayed. For inquiry, the Payment List screen displays all the payments received from the customer. Select a payment from the Payment List screen and press the Enter key. The Payment Header screen is then displayed with information about the selected payment.
Select the Open Item List processing control field to review the Open Item List screen. To review Application Detail screens for specific open items on the list, assign the detail pay code to those open items.
To cancel the inquiry at any time, press F13 - Cancel Transaction.
Correct a Payment Application or Void a Payment
To correct a payment application or void a payment, press F7-Transaction Select on the Payment Header screen. The Transaction Selection screen is displayed directly from the Accounts Receivable Menu if the user is not authorized to enter new payments.
To select a payment for correction, enter the payment number, customer number, and the transaction code 'C' (change) on the Transaction Selection screen. When the Enter key is pressed, the Payment Header screen is displayed.
If the payment number is left blank, the Payment List screen is displayed. Select a payment from the Payment List screen and press the Enter key. The Payment Header screen is then displayed with information about the selected payment.
Any underlined field on the Payment Header screen can be corrected. Usually, the corrected field is the Payment Amount field (unless the payment has been remitted).
To increase or decrease a previous application to an open item, use the Apply To Specific processing control field. Enter the open item's company, location, document type, and document number in the first company-location-document field. The detail screen will be displayed.
Enter the amount to be corrected in the Apply Document Amount field. For example, if a payment application for CK 100 of $150 is to be backed out, you would enter 150- in the Apply Document Amount field. If the original payment included a discount, enter the net amount in the Apply Document Amount field and enter the discount to be backed out in the Discount field.
If the original payment included a chargeback, you should void the chargeback when you back out the payment. To void a chargeback, enter the amount of the chargeback to be backed out in the Chargeback Amount field and then enter a 'Y' in the Void Chargeback field.
If you enter an 'N' or leave this field blank, the original Chargeback field will be updated with the amount you entered and will not be voided.
The application cannot be increased so much that it overpays the open item amount. Also, an application cannot be decreased by more than its original amount. Likewise, the chargeback adjustment cannot be greater than the original chargeback amount entered.
The Deduction control field can be used to make adjustments to deductions that were recorded during payment entry. Adjustments are made by the Payment Entry clerk and there will be no processing on these changes.
The Open Item List and Apply to Oldest processing control fields cannot be used during correction transactions.
The Place On-Account processing control field can be used. The increase or decrease in the payment amount then increases or decreases the amount on account. However, the Amount On Account cannot be less than zero after a correction transaction.
Press F22 - End Transaction.
When viewing this through the Accounts Receivable Inquiry these checks will be displayed as a positive and a negative check amount and will tie back to the invoice.
Example: CK 100 $150
CK 100 $150-
This payment is now a void payment.
End Transaction
To end any transaction, press F22-End Transaction on the Payment Header, Open Item List, or Application Detail screen. For an enter transaction, the transaction is balanced and, if it is valid, a blank Payment Header screen is redisplayed. For a correction, inquiry, or on account transaction, the transaction is balanced and, if it is valid, the Transaction Selection screen is displayed.
If the transaction is invalid, an error message is displayed. If control amounts do not equal actual amounts or if an error exists, verify that all items for the transaction have been entered correctly. Make any necessary corrections, either by adding, changing or deleting previously entered data.
End Session
To end the session and redisplay the Accounts Receivable Menu, first end or cancel any transactions. Then press F3-Exit, or any command key.