Understanding Advance Payments
This chapter provides an overview of advance payments and discusses how to:
Review transactions for advance payments.
Revise transactions before generating vouchers.
Generate vouchers for advance payments.
Create advance payments.
Understanding Advance Payments
You might have an agreement with a grower that you will 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. Current estimate amounts are retrieved from the grower harvest record.
A GL distribution account must be assigned to the corresponding prepayment processing option for Standard Voucher Entry (P0411).
A currency code must be assigned to the payee record if multicurrency processing is set up.
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 (R40G401) 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 so that the corresponding payment is deducted from the final payment when you process the final settlement. 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 that the payment is deducted from the final settlement amount.
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.
Review transactions that are eligible for advance payments.
Run the Advance Payment Report.
Set Processing Options for Advance Payment Report (R40G100R).
Understanding Transactions for Advance Payments
You can review contracts that are identified as 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 whether they are based on a specific 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).
Forms Used to Review Transactions for Advance Payments
|
Form Name |
FormID |
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. |
Setting Processing Options for Advance Payment (P40G100)
Processing options enable you to specify default values for programs.
Display
The processing options on this tab control the default values that appear in fields on the Advance Payment Search form, as well as 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 user is allowed to 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. |
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. |
Reviewing Payees Who Are Eligible for Advance Payments
Access the Advance Payment Search form.
The Voucher 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 that must be received before a payee is 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 % |
Shows the percentage received of actual receipt records, which uses this formula: Quantity Received ÷ Harvest Estimate × 100 |
|
Estimated Amount and % Pay Due |
Shows the harvest estimate and the payee percentage due from the contract harvest record. |
Reviewing Transactions That Are Eligible for Advance Payments
Access the Advance Voucher Review form.
You can also revise a transaction from the Advance Voucher Review form if a processing option is set accordingly.
See Revising Transactions Before Generating Vouchers.
Running the Advance Payment Report
Select Periodic Settlement Processing Reports (G40G2211), Advance Payment Report.
Set Processing Options for Advance Payment Report (R40G100R)
Processing options enable you to specify the default processing for reports.
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 contracts that are eligible for advance payments, regardless of whether the advance payment is based on a 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. |
Revising Transactions Before Generating Vouchers
This section discusses how to revise transactions before generating vouchers for advance payments.
Form Used to Revise Transactions Before Generating Vouchers
|
Form Name |
FormID |
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. |
Revising Transactions Before Generating a Voucher for an Advance Payment
Access the 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 at this time. The payee record will continue to appear on the Advance Payment Search form, as well as 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 controls whether you are allowed to change the value in this field. |
|
Due Date |
Change the due date, if necessary. |
|
Reason for Change |
Enter an explanation that describes why the amount or due date was changed. |
|
Hold Status |
Change the value in this field to H (Held/Pending Approval) to place the advance payment for the payee on hold. |
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.
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.
Forms Used to Generate Vouchers for Advance Payments
|
Form Name |
FormID |
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. |
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.
|
Create 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. |
Reviewing Vouchers for Advance Payments
Access the Supplier Ledger Inquiry form.
This form has 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 vouchers that have been generated for advance payment for a specific contract, enter a value in the Contract Code field.
Creating Advance Payments
This section provides an overview of advance payments and discusses how to create an advance payment.
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.
Form Used to Create Advance Payments
|
Form Name |
FormID |
Navigation |
Usage |
|
Work with Payments |
W0413MB |
Periodic Settlement Processing (G40G221), Work with Payments |
Create an advance payment manually. |
Creating an Advance Payment
Access one of the following:
Work with Payments form (for manual payments).
Create Payment Control Groups (for automatic payments).
Select Automatic Payment Processing menu (G0413), Create Payment Control Groups.
These programs include these fields, which are specifically used for contracts: Contract Code, Block Code, Harvest Period, Harvest Suffix, Contract ID, and Harvest ID.