76 Set Up Payment Instruments

This chapter contains these topics:

76.1 Setting Up Payment Instruments

You must define your payment instruments. Payment instruments can be checks (of different sizes), tapes, drafts, BACS, and so on. Clients outside the U.S. must set up automatic payments for country-specific payment instruments. You determine the format of each payment instrument by choosing the programs that produce its component parts:

  • Payment - This is the printed copy or tape table for the payment.

  • Payment register - This is the printed list of payments.

  • Attachment - This is a printed report that contains the detail information that does not fit on a payment stub.

  • Debit statement - This is a printed list of debit balances. It shows net amounts that are either a credit or that zero out a voucher.

76.1.1 Before You Begin

  • Determine what payment instruments you use

  • Set up a code on the user defined code list (00/PY) for each payment instrument, if necessary

76.2 Verifying and Assigning Programs to a Payment Instrument

Navigation

From Accounts Payable (G04), enter 29

From Accounts Payable Setup (G0441), choose Automatic Payment Setup

From Automatic Payment Setup (G04411), choose Payment Instrument Defaults

You choose the programs that produce each component part of a payment instrument. Typically, you set up the most commonly used payment instrument as the default so you do not have to define a payment instrument for each supplier.

You can limit a payment instrument by assigning a specific bank account to it. For example, you can set up two payment instruments for drafts (payment instrument D) with each drawn on a different bank account.

To verify and assign programs to a payment instrument

On Payment Instrument Defaults

Figure 76-1 Payment Instrument Defaults screen

Description of Figure 76-1 follows
Description of "Figure 76-1 Payment Instrument Defaults screen"

  1. Complete the following optional fields:

    • Bank Account

    • Currency Code (will display when Currency processing is activated)

  2. Verify the following fields:

    • Write Program

    • Register Program

  3. Access the detail area (F4).

    Figure 76-2 Payment Instrument Defaults screen (Details area)

    Description of Figure 76-2 follows
    Description of "Figure 76-2 Payment Instrument Defaults screen (Details area)"

  4. Verify the following fields:

    • Attachment Program

    • Debit Statement Program

    • Specific version to be called for the Write, Register, Attachment and Debit Statement programs. If left blank, the ZJDE0001 version of the respective program will be called.

  5. To change a program, access the field level help for a list of choices.

Field Explanation
Bank Account You may assign a specific bank account to a payment instrument. This creates a unique combination so that you may set up different payment programs/versions to be used depending on the bank account.

For example, you may set up multiple Drafts payment instruments (D) per country-specific bank account. The bank account for the payment will determine which payment instrument is used.
Currency Code You may assign a currency code to a payment instrument. This creates a unique combination so that you may set up different payment programs/versions to be used depending on the currency.

For example, you may set up multiple default payment instruments (where 'blank' is the default) per currency code. The currency for the payment will determine which payment instrument is used.
Write Program A user defined program used to print A/P payments. Only programs set up in user defined codes for 04/PP may be entered.
Register Program A user defined program used to print the A/P payment register. Only programs set up in user defined codes for 04/PR may be entered.
Attachment Program A user defined program used to print attachments in A/P Payment processing. Only programs set up in user defined codes for 04/PA may be entered.
Debit Statement Program A user defined program used to print debit statements in A/P payment processing. Only programs set up in user defined codes for 04/PD may be entered.

76.2.1 What You Should Know About

Topic Description
Setting up BACS There are two additional requirements for setting up a BACS payment instrument:

  • Set a processing option for Work with Payment Groups (P04257) to display the BACS processing date.

  • Set a processing option for Copy Bank Tape File to Tape (P0457) to display the BACS format.
IBAN wire payments Companies making wire payments within the European Union can include the IBAN number on the tape file.

76.3 Defining Formats of Payment Instruments

To access the versions list, enter VL on the command line of any menu.

Each program associated with a payment instrument has processing options that further define the format of each component of a payment instrument. Review these processing options before using each program.

To define the format of a payment instrument

On Versions List

Figure 76-3 Versions List screen

Description of Figure 76-3 follows
Description of "Figure 76-3 Versions List screen"

  1. Complete the following field and press Enter:

    • Form

  2. Choose Change for a version.

    Figure 76-4 DREAM Writer Version Inquiry screen

    Description of Figure 76-4 follows
    Description of "Figure 76-4 DREAM Writer Version Inquiry screen"

  3. On Processing Options Revisions, complete changes to the processing options, if necessary.

76.3.1 What You Should Know About

Topic Description
Written payment amounts The payment numeric amount that is translated to words can be up to two lines or 168 characters of text.

76.4 Assigning Payment Instruments to Suppliers

Navigation

From Accounts Payable (G04), choose Supplier & Voucher Entry

From Supplier & Voucher Entry (G0411), choose Supplier Master Information

When you print payments, the system uses the payment instrument defined in the supplier record. If the payment instrument is not defined, the system uses the default payment instrument.

To assign a payment instrument to a supplier

On Supplier Master Information

Figure 76-5 Supplier Master Information screen

Description of Figure 76-5 follows
Description of "Figure 76-5 Supplier Master Information screen"

  1. Locate the supplier.

  2. Complete the following fields:

    • Payment Instrument

76.5 Setting Up Debit Statements

Navigation

From Accounts Payable (G04), enter 29

From Accounts Payable Setup (G0441), choose Automatic Payment Setup

From Automatic Payment Setup (G04411), choose Payment Instrument Defaults

You can create debit statements to notify your suppliers that you have overpaid them. To handle debit statements, you can:

  • Print a separate debit statement form

  • Include a debit memo amount with a payment

To set up debit statements

On Payment Instrument Defaults

  1. Access the detail area.

  2. Complete the following field with a debit statement program:

    • Debit Statement Program

    • Version (optional)

  3. Choose User Defined Codes.

  4. On User Defined Code Revisions, change the following field to 04:

    • System Code

  5. Change the following field to PD and press Enter.

    • User Defined Codes

  6. To add a debit statement program, complete the following fields:

    • 10 Character Code

    • Description

76.6 Processing Options for Payment Programs

The following payment program processing options are representative of a hard-copy payment (P04572) and an electronic format (P04572T1). There are several specific electronic formats for you to choose from depending on the ACH format or country for which you are creating EFT payments. Inquire on the specific payment program to review the processing options for each program.