Setting Up Draft, Payment, and Voucher Processing

This chapter discusses how to:

• Set up bank transfer charges.

• Set up payment rescheduling.

• Set up aging categories for vendor liability aging reports.

• Set up draft processing.

• Set up multicurrency tables.

• Set up multiple currencies in PeopleSoft Payables control tables.

• Set up the PeopleSoft Payables revaluation process.

• Set up the PeopleSoft Financial Gateway integration.

• Set up inquiry search criteria.

Setting Up Bank Transfer Charges

To set up your bank transfer charges, use the following components:

• Bank Transfer Charge Code (BCH_CHARGE_CD).

• Bank Transfer Charge (BCH_BANK_CHRG).

• External Accounts (BANK_EXTERNAL).

• Vendor Information (VNDR_ID).

This section provides an overview of bank transfer charge setup and discusses how to:

• Enable bank transfer charge processing at the bank level.

• Define bank charge options at the vendor level.

Understanding Bank Transfer Charge Setup

To set up bank transfer charge processing:

1. Create bank transfer charge codes (which are used to create the Bank Transfer Charge table) on the Bank Transfer Charge Code page.

2. Define charge codes according to the interbank and intrabank remittance on the Bank Transfer Charge page.

3. Define the processing options at the external bank account level.

4. Define the processing options at the vendor location level.

Pages Used to Set Up Bank Transfer Charges

Enabling Bank Transfer Charge Processing at the Bank Level

Access the External Accounts page (Banking, Bank Accounts, External Accounts).

To enable bank transfer charge processing:

1. Select the TRF Charge check box in the Account Use group box.

   The system inserts a new row in the Chartfields tab.

2. Bnk Charge (bank charge) appears by default as the account type in the Acct Type (account type) field in the Chartfields tab.

3. Enter the account code for suspense accounting for the bank transfer charge in the Account field in the Chartfields tab.

   During payment posting, the system uses this code to hold the bank transfer charge deducted from the vendor payment.

See Also

Defining External Account Information

Defining Bank Charge Options at the Vendor Level

Access the Vendor Information - Location: Payables Options page (click the Payables link on the Vendor Information - Location page and expand the Electronic File Options section).

Expand the Electronic File Options collapsible section.

Use this page to define the party to whom the bank transfer is charged. Bank transfer charges are based on either the Classified Charge Amount table or a user-specified amount.

Warning! When the bank charge source is User, the bank transfer charge setting is not mandatory because the payment process does not access the Bank Transfer Charge table. However, the system uses the table to output the difference between the assumable charge, which is calculated from the table, and the actual deducted amount of the payment. For reporting purposes, the Bank Transfer Charge table must exist even though the bank charge source is User. Otherwise, the assumable charge amount appears as 0.

Note. Within the pay cycle, the system does not select scheduled payment when the amount of the charge exceeds the amount of the remittance.

See Also

Defining Vendor Bank Accounts

Setting Up Payment Rescheduling

To set up your payments rescheduling, use the Reschedule Payments component (SMT_SPLIT_CDTN_COM).

This section discusses how to:

• Set up the reschedule payments conditions.

• Set up reschedule payments options for vendors.

Pages Used to Set Up Payment Rescheduling

Setting Up the Reschedule Payments Conditions

Access the Reschedule Payments page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Payments, Reschedule Payment Conditions, Reschedule Payments).

Amount	Enter the amount. The system applies the condition in the Maintain Reschedule ID group box, if the total amount of vouchers is less than or equal to this amount. Otherwise, the system applies the conditions in the Reschedule ID Control group box.
Terms SetID	Displays the setID for payment terms.
Sight SetID	Displays the setID for draft sight code. You can only modify this field when any kind of draft, such as BEF (customer-initiated EFT draft), BOO (customer-initiated draft), or DFT (vendor-initiated draft), is specified as payment method that requires draft sight code.
Draft Sight	Select the draft sight code when the payment method is BEF, BOO, or DFT. This field is disabled when the specified payment method is nondraft. It is enabled and also becomes required when any kind of draft (BEF, BOO, or DFT) is specified as payment method.
Payment Method	Select the payment method, such as ACH (automated clearing house), EFT (electronic funds transfer), or Manual.

Using the example in the screen shot, the following conditions apply:

• When the total amount of vouchers in a certain period of time is less than or equal to 10,000,000 JPY, pay the full amount with EFT at the end of month.

• When the total amount of vouchers in a certain period of time is over 10,000,000 JPY and the basis date is between the 1st and the 15th, pay for 60 percent of the total in EFT at the end of the month and pay for 40 percent of the total in customer initiated draft with draft sight three months at the end of the month.

  Notice that in this screen shot, the Reusable check box is selected for the 40 percent line. That means that the system evaluates scheduled payments every time that you run the Reschedule Payments process.

• When the total amount of vouchers in a certain period of time is over 10,000,000 JPY and the basis date is between the 16th and the 31st, pay for 50 percent of the total with a check on the 10th of the next month and pay for 50 percent of the total in customer initiated draft with draft sight 3 months on the 10th of the next month.

Reschedule ID Control

Select the Details tab.

Select the Bank Account tab.

Setting Up Reschedule Options for Vendors

Access the Vendor Information - Location: Payables Options page (click the Payables link on the Vendor Information - Location page and expand the Additional Payables Options section).

Expand the Additional Payables Options collapsible section.

Additional Payment Information

Note. If you select the Withholding check box on the Identifying Information page, the Reschedule Payments process does not process vouchers for the vendor even if you enable reschedule options.

See Also

Maintaining Vendor Information

Setting Up Aging Categories for Vendor Liability Aging Reports

To set up your aging categories for vendor liability aging reports, use the AP Aging Cycle component (AP_AGING_CYCLE).

This section discusses how to set up aging categories for vendor liability aging reports.

Pages Used to Set Up Aging Categories for Vendor Liability Aging Reports

Setting Up Aging Categories for Vendor Liability Aging Reports

Access the AP Aging Cycle page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Payments, Define Aging Categories, AP Aging Cycle).

Category	Enter a category number. Each category number relates to a time period that classifies invoices that are due for payment. An aged liability report includes a column for invoices that are not yet due followed by four columns, which are classified by aging category for overdue amounts. Each of the four overdue columns corresponds to an aging category. For example, define the following three aging categories: Category 1 = 1 to 30 days. Category 2 = 31 to 60 days. Category 3 = 61 to 90 days. When the aged liability report is generated, it includes the following five columns: Invoices not yet due. Invoices overdue from 1 to 30 days. Invoices overdue from 31 to 60 days. Invoices overdue from 61 to 90 days. Invoices overdue more than 90 days.
From	Enter the beginning value for the category aging period. All invoices that are overdue as of the date that is specified in this field are printed in the corresponding aging category column of the aged liability report.
To	Enter an ending value for the category aging period. All invoices that are overdue up to the date specified in this field are printed in the corresponding aging category column of the aged liability report.
Held Items Aging Option	Select to determine how invoices that are on hold for payment appear on the aged liability report. Options are: Categorize: Select to specify where held invoices are printed in the aged liability report. For example, you might print all held invoices in the fourth aging category column. If this option is selected, the Held Items Aging Bucket field becomes active. Enter the aging category that you want to contain held invoice amounts. Exclude: Select to exclude held invoices on the aged liabilities report. Normal: Select to have all invoices on hold classified by aging categories in exactly the same way as invoices that are not on hold. All invoices on hold are printed in the appropriate aging category column in the aged liability report.
Held Items Aging Bucket	Enter the aging category number into which you want held items to appear on the aged liabilities report. This field is available only if you select Categorize in the Held Items Aging Option field.

Setting Up Draft Processing

To set up your draft processing, use the following components:

• Draft Sight Codes (APD_SIGHT_CODE_COM)

• Stamp Tax (APD_STAMP_TAX_COM)

This section lists common elements and discusses how to:

• Create draft sight codes.

• Create stamp tax definition.

• Specify stamp tax minimization rules.

See Also

Understanding Draft Processing

Common Elements Used in This Section

Pages Used to Set Up Draft Processing

Creating Draft Sight Codes

Access the Draft Sight Codes page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Payments, Sight Codes, Draft Sight Codes).

SetID	Displays the bank setID for the vendor's bank account.
Draft Sight Code	Displays a user-defined value that represents the draft payment terms to which you and your vendor agree.
Effective Date	Specify the beginning date that the sight code is in effect.
Status	Specify whether the status of the sight code is active or inactive.

Sight Code Detail

Creating Stamp Tax Definition

Access the Stamp Tax page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Management, Stamp Tax).

Draft Amount From	Displays the beginning of the draft amount range. When you define the stamp tax amounts, the system calculates the value in this field based on the value that you enter in the Draft Amount To field, plus one. The first line displays the draft amount from 1.
Stamp Tax Amount	Enter the amount of the stamp tax that the system applies to drafts in the desired draft amount from and draft amount to range.

Specifying Stamp Tax Minimization Rules

Access the Stamp Tax Rule page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Management, Stamp Tax, Stamp Tax Rule).

Stamp Tax Minimization Rules

During the Draft Staging Application Engine process (AP_DFT_PROC), the values in the Stamp Tax table determine where the draft payment is split.

Setting Up Multicurrency Tables

The pages that define the currency codes, rate types, and exchange rates that are used for currency conversion are common to all financial, manufacturing, and distribution applications. Set up the currency tables once for use by all applications.

To set up your multicurrency tables, use the following components:

• Currency Code (CURRENCY_CD_TABLE).

• Accounting Entry Template (ACCOUNTINGENTRY).

• Accounting Entry Definition (JRNLGEN_DEFN).

This section discusses how to:

• Assign gain or loss ChartFields.

• Specify a journal template.

See Also

Processing Multiple Currencies

Pages Used to Set Up Multicurrency Tables

Assigning Gain or Loss ChartFields

Access the Accounting Entry Template page (Set Up Financials/Supply Chain, Common Definitions, Accounting Entry Templates, Templates, Accounting Entry Template).

Assign ChartFields for realized gain, realized loss, unrealized gain, and unrealized loss to each PeopleSoft Payables business unit.

Unique account numbers enable the PS/AP Revaluation Application Engine process (AP_REVALUE) to post gains and losses to separate accounts.

Note. Because you associate each vendor with a different accounting template, each vendor can have a different set of accounts for posting gains and losses.

See Also

Creating Accounting Entry Templates

Specifying a Journal Template

Access the Accounting Entry Definition page (General Ledger, Journals, Subsystem Journals, Accounting Entry Definition).

Specify the journal template to use when transferring revaluation information to general ledger for each PeopleSoft Payables business unit.

See Also

Defining Accounting Entries

Setting Up Multiple Currencies in PeopleSoft Payables Control Tables

Set up your PeopleSoft Payables control tables before you can process vouchers and payments in multiple currencies. Among other things, the control tables that you establish in PeopleSoft Payables define currency codes, rate types, and exchange rates for multicurrency processing.

To set up your multiple currencies in PeopleSoft Payables control tables, use the following components:

• General Ledger Definition (BUS_UNIT_TBL_GL).

• Payables Options (BU_CTLB).

• Voucher Origin (ORIGIN1).

• External Accounts (BANK_EXTERNAL).

This section discusses how to:

• Define currency options for PeopleSoft General Ledger business units.

• Define currency options for PeopleSoft Payables business units.

• Define currency options for voucher origins.

• Define currency options for control groups.

• Define currency options for vendors.

• Define currency options for banks.

Pages Used to Set Up Multiple Currencies in PeopleSoft Payables Control Tables

Defining Currency Options for PeopleSoft General Ledger Business Units

Access the General Ledger Definition - Definition page (Set Up Financials/Supply Chain, Business Unit Related, General Ledger, General Ledger Definition, Definition).

Assign a base currency to the PeopleSoft General Ledger business units with which your PeopleSoft Payables business units is associated. The base currency for a PeopleSoft Payables business unit is defined by the PeopleSoft General Ledger business unit with which it is associated and cannot be changed.

PeopleSoft Payables processing supports interunit accounting, which enables you to track accounting transactions among PeopleSoft General Ledger business units with different base currencies. You can separate distribution and payment interunit entries.

See Also

Understanding the Accounting Environment Setup

Defining General Ledger Business Units

Defining Currency Options for PeopleSoft Payables Business Units

Access the Payables Options - Vouchering Options 1 page (Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options, Vouchering Options 1).

Designate a default transaction currency and rate type for vouchers. The currency that you select here can be different from the PeopleSoft General Ledger business unit base currency, if necessary.

Note. Currency option rules follow the PeopleSoft Payables control hierarchy. Default values that you enter at the business unit level automatically change to the transaction level, unless you override the defaults with values stored at an intermediate level, such as voucher origin, control group, or vendor.

See Also

Defining the Voucher Approval Rules, Default Currency, and Single Payment Master Vendor

Defining Currency Options for Voucher Origins

Access the Voucher Origin - Vouchering Options 1 page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Vouchers, Voucher Origin, Vouchering Options 1).

Override the business unit default currency and rate type. The control hierarchy is applied during voucher entry. Using this capability, you can define an origin, such as a user in a foreign subsidiary, to enter vouchers in a currency different from the business unit's normal default transaction currency.

You can enter a rate type directly when specifying a voucher currency that is different from the control hierarchy default.

See Also

Specifying Voucher Approval, Matching, Currency, and Document Sequencing Settings

Defining Currency Options for Control Groups

Access the Group Information - Vouchering Options page (Accounts Payable, Control Groups, Group Information, Vouchering Options).

Override the default voucher entry transaction currency code for a group of vouchers. You can use control groups to group together vouchers of like currencies to ensure that the user applies the proper currency code.

You can also use control groups to create groups of vouchers for data entry purposes. The key control elements on the record are the control amount and the control totals. Control amount totals are not sensitive to the transaction currency; you can enter vouchers of different currencies in the same control group. The system tallies the transaction amounts of all vouchers in the control group to determine whether the group is in balance.

Note. The control group total adds amounts only and does not convert currencies.

The Control Group Register report displays currency information for individual vouchers in the control group.

See Also

Establishing Vouchering Options

Defining Currency Options for Vendors

Access the Vendor Information - Location: Procurement Options page (Click the Procurement link on the Vendor Information - Location page and expand the Additional Procurement Options section).

Expand the Additional Procurement Options collapsible section to override the default currency and rate type.

See Also

Specifying High-Level Procurement Processing Options

Defining Currency Options for Banks

Access the External Accounts page (Banking, Bank Accounts, External Accounts).

Each bank code can cover multiple bank accounts, and each bank account can have multiple currencies. All payments from a specific bank account must be made in one of the valid currencies that is set up for that bank account. During payment selection, the system alerts you if you have scheduled payments on a bank account in a currency other than the valid bank account currencies. You'll also receive an error message when you save a voucher online.

See Also

Defining External Account Information

Setting Up the PeopleSoft Payables Revaluation Process

To set up your PeopleSoft Payables revaluation process, use the following components:

• Accounting Entry Template (ACCOUNTINGENTRY).

• Journal Generator Template (JRNLGEN_APPL_ID).

• Procurement Control (BUS_UNIT_INTFC2).

• Payables Definition (BUS_UNIT_TBL_AP).

This section provides an overview of the PS/AP Revaluation process, lists prerequisites, and discusses how to:

• Select a reversal code.

• Specify PeopleSoft Payables journal templates.

• Select a revaluation posting option.

Understanding the PS/AP Revaluation Process

The PS/AP Revaluation process finds all unpaid, posted vouchers for the specified business units as of the specified date whose transaction currency is not the same as the base currency of the general ledger business unit. For each unpaid voucher, it uses the specified exchange rate and calculates a revaluation amount. The accounting entry consists of an unrealized gain or loss entry with a matching offset on the payables account.

Prerequisite

Specify account numbers on the accounting entry template for unrealized gain and loss.

See Also

Assigning Gain or Loss ChartFields

Pages Used to Setup the PeopleSoft Payables Revaluation Process

Selecting a Reversal Code

Access the Journal Generator Template - Defaults page (General Ledger, Journals, Subsystem Journals, Journal Generator Template, Defaults).

Select a reversal code.

PeopleSoft General Ledger uses the Journal Generator template to handle reversals. The PeopleSoft Payables revaluation routing does not reverse entries because of document sequencing. Therefore, you must select one of these PeopleSoft General Ledger reversal codes: Beginning of Next Period, End of Next Period, or Next Day.

You should not select Do Not Generate Reversal, or your revaluation will be overstated.

See Also

Defining Journal Generator Template Defaults

Specify PeopleSoft Payables Journal Templates

Access the Procurement Control - GL Templates page (Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, GL Templates).

Specify the PeopleSoft Payables journal generator templates for the PeopleSoft General Ledger business units. Journal generator templates include accruals, payments, cancels, closes, revaluations, and cash clearings.

See Also

Defining General Ledger Templates

Selecting a Revaluation Posting Option

Access the Payables Definition - Definition page (Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Definition).

Select a revaluation posting option to determine how the transactions that you are revaluing are grouped.

Example: Defining Revaluation Posting Options

This table lists sample data for our example:

Depending on the revaluation option that you select, the system generates the following entries:

1. For the business unit.

   There is one balanced entry per business transaction currency combination. In our example, both vendors have the same currency so there is only one entry. If they had different currencies, there would have been two entries.

   Business Unit	Vendor	Voucher	Loss/Gain	Transaction Currency
   GBR01			75	GBP

2. For the vendor.

   There is one balanced entry per vendor, business unit, currency combination. The summation does not cross business units.

   Business Unit	Vendor	Voucher	Loss/Gain	Transaction Currency
   GBR01	VND1		100	GBP
   GBR01	VND2		(25)	GBP

3. For the voucher.

   Each voucher creates a set of accounting entries; there is no summation.

   Business Unit	Vendor	Voucher	Loss/Gain	Transaction Currency
   GBR01	VND1	VCHR1	100	GBP
   GBR01	VND2	VCHR2	(50)	GBP
   GBR01	VND2	VCHR3	25	GBP

See Also

Linking PeopleSoft Payables Business Units with General Ledger Business Units

Setting Up the PeopleSoft Financial Gateway Integration

To set up your PeopleSoft Financial Gateway integration, use the following components:

• Source Registration (PMT_REGISTRATION).

• User Preferences (OPR_DEFAULT).

• Payment Selection Criteria (PYCYCL_DEFN).

This section provides an overview of the PeopleSoft Financial Gateway integration setup, lists prerequisites, and discusses how to:

• Register PeopleSoft Payables with PeopleSoft Financial Gateway.

• Establish payment errors email notification.

Understanding PeopleSoft Financial Gateway Integration Setup

PeopleSoft Payables integrates with the PeopleSoft Financial Gateway functionality as an alternate electronic payment processing method. PeopleSoft Financial Gateway acts as a broker between PeopleSoft Payables and a financial institution, formatting payments and managing payment messages between the systems.

For PeopleSoft Payables, integration with the PeopleSoft Financial Gateway functionality involves the following steps:

1. Registering PeopleSoft Payables as a source subsystem with PeopleSoft Financial Gateway.

2. (Optional) Defining payment errors email notification defaults.

Source registration is a required implementation step. Once registered as a source subsystem, PeopleSoft Payables uses the existing PeopleSoft Financial Gateway infrastructure during pay cycle processing to settle PeopleSoft Financial Gateway-specific payments.

Registering PeopleSoft Payables also enables PeopleSoft eSettlements to integrate with PeopleSoft Financial Gateway. PeopleSoft eSettlements leverages both the PeopleSoft Financial Gateway and Payables infrastructures to manage PeopleSoft Financial Gateway-specific payments. As PeopleSoft eSettlements uses the existing architecture, it does not need to be registered as an independent source.

We deliver default source registration data, applicable to most organization's needs.

Important! You should carefully analyze the delivered data with your organization's business needs before changing any values. Editing certain registration values might adversely affect payments' settlement through the applications. Also, system administrators should configure the appropriate security for this page, limiting user access to avoid accidental edits.

After registering as a source, you can optionally set up payment errors email notifications. This alerts designated users when payments cannot be settled through PeopleSoft Financial Gateway.

See Also

Pay Cycle Processing Using the PeopleSoft Financial Gateway

Prerequisite

To process payments through the PeopleSoft Financial Gateway, you must correctly configure and activate payments' bank accounts using the External Accounts - Payment Methods page. On the page, you must specify at least one layout that is settled by PeopleSoft Financial Gateway.

See Also

Defining Payment Methods

Pages Used to Set Up the PeopleSoft Financial Gateway Integration

Registering PeopleSoft Payables with PeopleSoft Financial Gateway

Access the Source Registration page (Financial Gateway, Administration, Source Registration).

We deliver PeopleSoft Payables with defined integration values, as shown in the page screenshots. Your organization's integration values may be different, based on your business needs.

You should avoid editing any of the delivered values, except for these:

• Dispatch Status: Add any required payment dispatch statuses.

• Display in Payment Details: Select or deselect check boxes to determine field display on the Review Payment Details page.

• Seq (sequence): If you select a field for display, entering a sequence value determines the display order. You can edit this value.

See Also

Defining Financial Gateway Integration Options

Establishing Payment Errors Email Notification

Access the PayCycle page, and the Payment Selection Criteria - Preferences page (click the Paycycle link on the User Preferences page).

To establish payment error notification emails for user IDs:

1. Define an email address on the User Preferences - PayCycle page.

2. Define a payment error notification user ID on the Payment Selection Criteria - Preferences page.

See Defining Pay Cycle User Preferences.

See Setting Pay Cycle Preferences.

Setting Up Inquiry Search Criteria

This section discusses how to define inquiry search criteria.

Page Used to Set Up Inquiry Search Criteria

Defining Inquiry Search Criteria

Access the Named Search Criteria List page (Accounts Payable, Review Accounts Payable Info, Payables Search Criteria, AP Search Criteria).

Refresh	Select an available field's check box and click this button to move the field to the Selected Fields region. This adds the field to the defined user's search criteria for PeopleSoft Payables inquiry pages.
Move Selected Lines Down	Select fields and click this button to remove fields from the Selected fields region; this removes them from the inquiry search criteria.