6 Processing Advance Payments

This chapter contains the following topics:

6.1 Understanding Advance Payments

This diagram illustrates the advance payments process:

Figure 6-1 Advance Payments Process

Description of Figure 6-1 follows
Description of "Figure 6-1 Advance Payments Process"

You might have an agreement with a grower that you issue an advance payment before interim and final payments. For example, you might issue an advance payment when the grower delivers 30 percent of the estimated harvest yield. Or you might issue a specific monetary amount to the grower on a certain date.

The amount for an advance payment is based on:

  • The due date rule that is assigned to the installment payment term that is associated with the payment schedule record.

  • The distribution percent on the payment schedule record.

  • The current estimate amount on the harvest record.

To be eligible for an advance payment, these conditions must exist:

  • The contract must be active.

  • The due date rule, which is assigned to the payment term on the payee payment schedule, must have the advance payment check box selected and be based on the current estimate (CE or blank).

  • If the payment term is based on a percent of the product received, the due date rule must include a delivery percent amount.

  • The harvest record, on which the payment is based, must have a current estimate amount.

    The record cannot be for a continuous harvest. The system retrieves the current estimate amounts from the grower harvest record.

  • A GL distribution account must be assigned to the corresponding prepayment processing option for Standard Voucher Entry (P0411).

  • If you set up multi-currency processing, the payee record must have an assigned currency code.

When you issue an advance payment, the system creates a voucher record in the Accounts Payable Ledger table (F0411) with the contract code, block code, harvest period, and harvest suffix. This information is necessary for the system to deduct the advance payment from the final payment when you process the final settlement for a contract. The system does not link advance payments with receipts for voucher match until the final settlement.

Throughout the harvest cycle, you can print the Advance Payment Report (R40G4100R) to review advance payments that are due.


Note:

If a payee requests a payment during the harvest cycle and an advance or interim payment was not specified in the payment schedule, you can create a manual voucher in the JD Edwards EnterpriseOne Accounts Payable system. You must identify the contract on the voucher to deduct the corresponding payment from the final payment during the final settlement process. Using the Prepayment Voucher Entry program (P0411), specify the contract code, block code, harvest period, and harvest suffix on the Enter Voucher - Payment Information form. This information links the voucher and, later, the payment to the specific contract block; and ensures payment deduction from the final settlement amount.

6.2 Reviewing Transactions for Advance Payments

This section provides an overview of transactions for advance payments and discusses how to:

  • Set processing options for Advance Payment (P40G100).

  • Review payees who are eligible for advance payments.

  • Run the Advance Payment Report.

  • Set Processing Options for Advance Payment Report (R40G100R).

6.2.1 Understanding Transactions for Advance Payments

You can review contracts requiring advance payments either online or in report format. The Advance Payment Search form and the Advance Payment Report (R40G100R) show transactions that are eligible for advance payment and for which a voucher has not yet been generated or paid. The system shows transactions for active contracts and the current harvest year and includes detail such as the contract price, due date, harvest estimate, quantity received, and so on.

You can set a processing option for both the program and the report to show only those contracts that have reached their delivery percent and are eligible for advance payments. Otherwise, the system shows all advance payments, regardless of the delivery percent. For the Advance Payment Report, you can also print a report that shows all payment schedules, instead of schedules for advance payments only.

From the Advance Payment Search form, you can access the Advance Voucher Review form where you can revise a transaction and generate a voucher for an advance payment. To generate a voucher, the system uses the Prepayment Voucher Entry program (P0411).

6.2.1.1 Alternate Tax Rate/Area Assignment Functionality for Advance Payment Vouchers (Release 9.1 Update)

When you generate vouchers, the system will retrieve the alternate tax rate/area assignment if the company of the transaction is set up to do so.

See "Setting Up Alternate Tax Rate/Area Assignment Functionality" and "Grower Management" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.

6.2.2 Forms Used to Review Transactions for Advance Payments

Form Name Form ID Navigation Usage
Advance Payment Search W40G100B Periodic Settlement Processing (G40G221), Advance Payment Review a list of all payees who are eligible for advance payments, or limit your search to certain payees.
Advance Voucher Review W40G100A On the Advance Payment Search form, select one or more transactions and click Voucher Review. Review transactions that are eligible for advance payment. You can also revise transactions and generate vouchers from the Advance Voucher Review form.

6.2.3 Setting Processing Options for Advance Payment (P40G100)

Processing options enable you to specify default values for programs.

6.2.3.1 Display

The processing options on this tab control the default values that appear in fields on the Advance Payment Search form and specify whether the user can revise certain fields or generate vouchers on the Advance Voucher Review form.

1. Geographic ID

Enter a code that specifies a geographic area for growers.

2. Delivery Percent

Specify whether the system displays only contracts for advance amounts that have reached the delivery percent. Values are:

Blank: Display all contracts.

1: Display only contracts that have reached the delivery percent.

3. Change Advance Amount

Specify whether the user is allowed to change the advance amount. Values are:

Blank: Allowed.

1: Not allowed.

4. Over Pay

Specify whether the system enables the user pay more than the harvest estimate. Values are:

Blank: Allowed.

1: Not allowed.

5. Active Contract Status

Enter a code from UDC table 43C/CS that specifies the status of an active contract.

6. Advance Voucher Mode

Specify whether a user can view contracts that are eligible for advance payment or revise and generate vouchers for advance payment. Values are:

Blank: User can review contracts and generate vouchers for advance payments on the Advance Voucher Review form.

1: User can only view contracts on the Advance Payment Search form.

7. Harvest Period

Enter the harvest period in which you want to review and generate vouchers for advance payments.

6.2.3.2 Versions

1. Accounts Payable MBF Version (P0400047) and 2. General Ledger MBF Version (P0900049)

Specify the versions that the system uses for these programs. If you leave these processing options blank, the system uses version ZJDE0001.

3. Pre-payment Voucher Version (P0411)

Enter the version of the Standard Voucher Entry program (P0411) that you use for prepayments.

When you generate vouchers using the Advance Payment program, the system uses the GL distribution account that you assign to the corresponding prepayment processing options for P0411. The system does not use AAIs for these accounts, so ensure that the version that you enter for this processing option has the correct accounts.

6.2.4 Reviewing Payees Who Are Eligible for Advance Payments

Access the Advance Payment Search form.

Figure 6-2 Advance Payment Search form

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Description of "Figure 6-2 Advance Payment Search form"

The Preview Review button appears on the Advance Payment Search form only if the Advance Voucher Mode processing option for the Advance Payment program is set accordingly. Otherwise, the button does not appear and you cannot access the Advance Voucher Review form to review, revise, or generate vouchers.

Advance Amount and Advance Percent

Displays the scheduled amount of the advance payment, which is based on the due date rule that is assigned to the installment payment term, the distribution percent on the contract payment schedule, and the current estimate amount on the harvest record.

Displays the advance amount as a percentage of the current estimate amount.

Delivery Percent

Displays the delivery percent you must receive in order for a payee to become eligible for an advance payment. This amount is from the due date rule, which is assigned to the payment term.

You can set a processing option to display only those contracts that have reached a certain delivery percent.

Price

Shows the unit price for the product.

Received Quantity

Shows the total amount of actual receipt records.

Received Percent

Shows the percentage received of actual receipt records, which uses this formula:

Quantity Received ÷ Harvest Estimate à 100

Estimated Amount and Percent Pay Due

Shows the harvest estimate and the payee percentage due from the contract harvest record.

6.2.5 Running the Advance Payment Report

Select Periodic Settlement Processing Reports (G40G2211), Advance Payment Report.

6.2.6 Set Processing Options for Advance Payment Report (R40G100R)

Processing options enable you to specify the default processing for reports.

6.2.6.1 Display

1. Delivery Percent

Specify whether the system prints only contracts that have reached the delivery percent for advance payments. Values are:

Blank: Print all contracts. This report prints all eligible contracts for advance payments, regardless of the advance payment delivery percent.

1: Print only contracts that have reached the delivery percent.

2. Show All Payments

Specify whether the system prints only advance payments. Values are:

Blank: Print only the advance payment schedule.

1: Print the entire payment schedule.

6.3 Revising Transactions Before Generating Vouchers

This section discusses how to revise transactions before generating vouchers for advance payments.

6.3.1 Form Used to Revise Transactions Before Generating Vouchers

Form Name Form ID Navigation Usage
Advance Payment Search W40G100B Periodic Settlement Processing (G40G221), Advance Payment Review a list of all payees who are eligible for advance payments, or limit your search to certain payees.
Advance Voucher Review W40G100A On the Advance Payment Search form, select a record and click Voucher Review. Revise a transaction before generating a voucher for an advance payment. You can also create a voucher for a transaction from the Advance Voucher Review form.

See Generating a Voucher for an Advance Payment.

6.3.2 Revising Transactions Before Generating a Voucher for an Advance Payment

Access the Advance Voucher Review form.

Figure 6-3 Advance Voucher Review form

Description of Figure 6-3 follows
Description of "Figure 6-3 Advance Voucher Review form"

You can access this form only if the Advance Voucher Mode processing option for the Advance Payment program (P40G100) is set accordingly.

You can revise certain fields on the Advance Voucher Review form before you create a voucher for an advance payment.

Select

Clear the Select check box for a payee record if you do not want to generate a voucher for an advance payment now. The payee record continues to appear on the Advance Payment Search form and the Advance Payment Report, until paid.

Advance Amount

Enter a new amount for the advance payment if you do not want to pay the full amount scheduled.

The Change Advance Amount processing option for the Advance Payment program determines whether the system allows changes to the value in this field.

Due Date

Displays the due date for the voucher that the system calculates based on the payment terms. You can change the due date, if necessary.

Reason for Change

Enter an explanation that describes why you changed the amount or due date.

Hold Status

Change the value in this field to H (Held/Pending Approval) to place the advance payment for the payee on hold.

6.4 Generating Vouchers for Advance Payments

This section provides an overview of voucher generation for advance payments and discusses how to:

  • Generate a voucher for an advance payment.

  • Review vouchers for advance payments.

6.4.1 Understanding Voucher Creation for Advance Payments

When you generate vouchers from the Advance Voucher Review form, the system uses the version of the Prepayment Voucher Entry program (P0411) that you specify in a processing option for the Advance Payment program. After you generate a voucher for the advance payment, the system links the voucher to the contract so that future inquiries reflect the voucher amount and, when applicable, the payment.

If you generate a voucher for the full advance amount, the system marks the payee schedule record as advance paid.

6.4.2 Forms Used to Generate Vouchers for Advance Payments

Form Name Form ID Navigation Usage
Advance Payment Search W40G100B Periodic Settlement Processing (G40G221), Advance Payment Review a list of all payees who are eligible for advance payments, or limit your search to certain payees.
Advance Voucher Review W40G100A On the Advance Payment Search form, select a record and click Voucher Review. On the Advance Voucher Review form, select the record and click Create Voucher. Generate vouchers that are eligible for advance payments.
Supplier Ledger Inquiry W0411G Periodic Settlement Processing (G40G221), AP Voucher Review

Ensure that the Prepay check box is selected on the Supplier Ledger Inquiry form.

 Review vouchers that are eligible for advance payments.

6.4.3 Generating a Voucher for an Advance Payment

Access the Advance Voucher Review form.

A processing option for the Advance Payment program (P40G100) controls whether a user is allowed to access this form and revise transactions or generate vouchers.

Generate Voucher

Select one or more transactions and click the Create Voucher button to create vouchers in the Accounts Payable Ledger table (F0411) for advance payments.

6.4.4 Reviewing Vouchers for Advance Payments

Access the Supplier Ledger Inquiry form.

Figure 6-4 Supplier Ledger Inquiry form

Description of Figure 6-4 follows
Description of "Figure 6-4 Supplier Ledger Inquiry form"

This form displays several fields that are used specifically for grower contracts. The fields, which are in the detail area of the Supplier Ledger Inquiry form, are Contract Code, Block Code, Harvest Period, Harvest Suffix, Contract ID, and Harvest ID. You can use any of these fields to inquire on specific vouchers for advance payments. For example, to review all generated vouchers for advance payment for a specific contract, enter a value in the Contract Code field.

6.5 Creating Advance Payments

This section provides an overview of advance payments and discusses how to create an advance payment.

6.5.1 Understanding Advance Payments

After you generate vouchers for contracts that are eligible for advance payments and review and approve the vouchers, you can create the advance payments. To create advance payments, you can use either the manual payment program (P0413M) or the automatic payment program (R04570). These are the same programs that you use to process other types of payments. No special processing is required for advance payments.

6.5.2 Form Used to Create Advance Payments

Form Name Form ID Navigation Usage
Work with Payments W0413MB Periodic Settlement Processing (G40G221), Work with Payments Create an advance payment manually.

6.5.3 Creating an Advance Payment

Access one of the following:

These programs include these fields that are used specifically for contracts: Contract Code, Block Code, Harvest Period, Harvest Suffix, Contract ID, and Harvest ID.