Setting Up Pay When Paid Processing

This chapter provides overviews of pay when paid processing, and pay when paid setup, and discusses how to set pay when paid processing options.

Understanding Pay When Paid Processing

Pay when paid is the process of paying your suppliers only after receiving payment from your customers. This is useful if you want to pay your subcontractors after you have been paid by your customers. For example, a subcontractor submits an invoice to you for payment and you enter a voucher at a hold payment status. You create and send an invoice to your customer and when the customer pays the invoice, you then release and pay the voucher to the subcontractor.

While pay when paid processing helps you to manage cash effectively, it can be time-consuming to manually track when an invoice is paid so that you can release a voucher for payment. The Financial Management system automates this process.

Understanding Pay When Paid Setup

Before you can use pay when paid processing, you must complete the setup requirements discussed in this section.

Voucher Payment Status Code Setup

You should set up a unique hold payment status code in UDC table 00/PS specifically for pay when paid vouchers. You specify the code in these processing options:

• Pay Status Code processing option of the Voucher Entry MBF, if you enter pay when paid vouchers in the JD Edwards EnterpriseOne Accounts Payable system.

• Threshold Payment Status Code processing option of the Voucher Match program, if you enter pay when paid vouchers in the Procurement and Subcontract Management system.

Then when you enter pay when paid vouchers, the system assigns the payment status code accordingly.

See Setting Up UDCs for Accounts Payable.

Next Numbers Setup

When you create invoices that correspond to pay when paid vouchers, the system links the invoices to the vouchers by assigning a pay when paid group number. The system assigns the pay when paid group number from line 7 in the Next Numbers program (P0002) for system 04 (Accounts Payable).

See Setting Up Next Numbers for Accounts Payable.

Customer Master Setup

After you create invoices that correspond to pay when paid vouchers, you run the Pay When Paid Automatic Release program (R03B470) to release vouchers for payment. To control the release of vouchers for payment, you specify a threshold percentage in the Minimum Cash Receipt Percentage field on the customer master record to ensure that the system releases vouchers only when the threshold for the invoices in the group is met. For example, if you define a minimum cash receipt percentage of 50 percent and the pay when paid group contains invoices totaling 50,000, the system releases all vouchers in the group for payment only when cash receipts totaling at least 25,000 are applied to invoices in the group.

Note. If you do not specify a minimum cash receipt percentage, the system releases all vouchers in the group for payment when at least one cash receipt, regardless of the cash receipt amount, has been applied to an invoice in the group.

Accounts Payable Constants Setup

When you run the Pay When Paid Automatic Release program, the system assigns the payment status code that you specify in the Accounts Payable Constants program (P0000) to the vouchers that are released for payment. The payment status code that you specify in the Pay When Paid Release Pay Status field on the Account Payable Constants form must be a payment status code that the system selects for payment processing, such as payment status code A (Approved for Payment).

Subcontractor Threshold Setup

Unlike vouchers that are entered in the JD Edwards EnterpriseOne Accounts Payable system, vouchers that are entered in the Procurement and Subcontract Management system must exceed the subcontractor (supplier) threshold amount that you specify in the Subcontractor Threshold program (P4355) to be eligible for pay when paid processing. For example, if you set up a subcontractor threshold amount of 1,000 and then enter a voucher totaling 1,000 or less for the subcontractor, the voucher is not eligible for pay when paid processing and the system does not create the voucher as a pay when paid voucher. If the voucher amount exceeds the subcontractor threshold amount, the voucher is eligible for pay when paid processing and the system assigns the payment status code that you specify in the Threshold Payment Status Code processing option in the Voucher Match program (P4314).

See Processing Progress Payments.

Setting Pay When Paid Processing Options

This section provides an overview of pay when paid processing options and discusses how to:

• Set pay when paid processing options for Voucher Entry MBF.

• Set pay when paid processing options for Standard Voucher Entry.

• Set pay when paid processing options for Voucher Match.

Understanding Pay When Paid Processing Options

You enter pay when paid vouchers using the same methods and steps that you use to enter standard vouchers. However, you must set processing options in the programs that you use to enter pay when paid vouchers to indicate pay when paid processing.

To enter pay when paid vouchers in the JD Edwards EnterpriseOne Accounts Payable system, you need to set up the appropriate processing options in these programs:

• Voucher Entry MBF.

• A/P Standard Voucher Entry.

These versions of the A/P Standard Voucher Entry program are set up specifically for pay when paid processing in the JD Edwards EnterpriseOne Accounts Payable system:

• ZJDE0014: Pay When Paid Voucher.

• ZJDE0015: Multi Voucher Single Supplier with Pay When Paid.

• ZJDE0016: Multi Voucher Multi Supplier with Pay When Paid.

• ZJDE0017: Multi Company Single Supplier with Pay When Paid.

To enter pay when paid vouchers in the Procurement and Subcontract Management system, you need to set the appropriate processing options in the Voucher Match program. The system processes pay when paid vouchers that are entered in the Procurement and Subcontract Management system based on the subcontractor threshold that is defined in the Subcontractor Threshold program. It also assigns the payment status code that is specified in the Threshold Payment Status Code processing option of the Voucher Match program.

After you set up versions of the Voucher Match program to specify pay when paid processing, assign the versions to the programs in which you enter vouchers in the Procurement and Subcontract Management system:

• Match Voucher to Open Receipt.

• Receive & Voucher POs.

Setting Pay When Paid Processing Options for Voucher Entry MBF (P0400047)

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

Defaults

Setting Pay When Paid Processing Options for Standard Voucher Entry (P0411)

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

Versions

Pay When Paid

Setting Pay When Paid Processing Options for Voucher Match (P4314)

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

Process