Setting Up Automatic Maintenance Processing

This chapter provides an overview of the Automatic Maintenance Application Engine process (AR_AUTOMNT) and discusses how to:

• Set up automatic maintenance methods.

• Define automatic maintenance algorithm groups.

Note. This chapter is required. You must complete the tasks discussed in this chapter to implement automatic maintenance processing.

Understanding the Automatic Maintenance Process

The Automatic Maintenance process is a PeopleSoft Enterprise Application Engine process that matches debit items to credit items. The process is useful when you want to automatically match items with the same amounts or when you want to automatically close deductions and disputed items.

The process places the items that meet your matching criteria in match groups unless they are already selected in a worksheet, such as the payment or maintenance worksheet. A match group must contain at least one debit item and one credit item, but it can contain multiple debit and credit items.

You create automatic maintenance methods that define the rules for matching the items, and specify which method to use for each business unit or when you run the process.

The process:

• Executes the steps in the automatic maintenance method that you assign to the business unit, unless you override it for all business units on the run control page.

  As the process executes each step, it creates a row in a temporary table for each item that it tries to match. The process also stores the appropriate action for each step in a temporary table.

• Writes off the remaining balance for match groups, if the balance meets the write off tolerances.

  If the match group contains only one debit and one credit, it creates either a MT-02 (write off a credit) or MT-03 (write off a debit) item. If the group contains multiple debits or credits, it creates either a MT-06 (write off remaining credit) or MT-07 (write off remaining debit) item.

• Creates a maintenance group for each corporate customer, which has match groups for conditions where the step does not create a worksheet.

  The process sets the group to post. When you post the group, the Receivable Update process (ARUPDATE) creates distribution lines for the items, using the accounting template for the appropriate automatic entry template.

• Creates a maintenance worksheet for each corporate customer, which has match groups for conditions where the step creates a worksheet.

  You must review the worksheet and set the group to post.

• Creates an item maintenance activity for each item.

  Enters the same value in the match group ID field in the item maintenance activity for each item in the group.

• Uses the anchor business unit on the run control as the anchor business unit for each maintenance group or worksheet.

  The Receivable Update process uses the anchor business unit to generate interunit accounting entries when items are matched across business units.

• Converts the item amounts to a common currency to handle items in different currencies.

  The process uses the general ledger base currency for the anchor business unit that you entered on the run control for the common currency. If you do not enter an anchor business unit on the run control page, the process uses the general ledger base currency for the business unit with the lowest value in the grid that appears on the run control page.

See Also

Understanding Multicurrency Processing

Reviewing Item Activity for a Match Group

Write-Off Tolerances

Setting Up Automatic Maintenance Methods

To set up automatic maintenance methods, use the Automatic Maintenance Method component (AUTOMNT_METHOD) .

This section provides an overview of automatic maintenance methods and discusses how to:

• Identify automatic maintenance methods.

• Define automatic maintenance method details.

• View a sample automatic maintenance method.

Understanding Automatic Maintenance Methods

Automatic maintenance methods define rules for matching debits and credits and for handling remaining balances for each match group. The Automatic Maintenance process uses the method that you assign to the business unit for processing unless you override the method for all business units on the Automatic Maintenance run control page.

Each method contains a series of steps that the process executes sequentially. For each step, you specify:

• One matching instruction.

• As many conditions and actions as necessary.

• Whether to exclude certain types of items, such as deductions.

You select one of these matching instructions for each step:

• Have the process match a value in a field in the debit items to a value in a field in the credit items.

  If an automatic maintenance method indicates that the process should exactly match items by their open amount and the One to One option is selected in the method, the items must be unique. For example, if you have two 1,000.00 EUR credits and one 1,000.00 EUR debit, the process does not place any of the items in a match group.

• Have the process execute the #OLDEST or user-defined algorithm group.

  The #OLDEST algorithm group matches open items by due date—matching the items with the oldest due dates first—until either all the available credits or all the available debits are matched. It uses the directions that you provide for the step to determine how to handle the remaining balance.

• Have the process write off items with a specific entry type and reason that were not matched in previous steps.

  The write-off amount must meet the write-off tolerances defined for the entry reason assigned to the automatic entry types associated with the Write-off a Credit (MT-02), Write-off a Debit (MT-03), Write-off Remaining Credit (MT-06), and Write-off Remaining Debit (MT-07) system functions.

For the first two instructions, you define the action that the process takes based on the remaining balance for the match group. The system populates the actions for the last instruction and you cannot change them. You also define whether to put the match group or write-off on a maintenance worksheet.

Designing Methods Based on Reference Values

It is essential that you have a thorough understanding of how your organization tracks reference information on credit items when you create your automatic maintenance methods.

Ideally, the methods that you define enable the Automatic Maintenance process to match the majority of your debits and credits and to write off the remaining balances, leaving only the exceptions to be matched or written off using the maintenance worksheet. The trick is to fit your methods to the way that your business processes populate reference information.

Place the steps that produce the greatest number of matches at the beginning of the automatic maintenance method. For example, if you are creating a method to resolve deductions, and the majority of your customers provide the claim number in the Claim Number field when they take the deduction, and you also enter it in the Claim Number field when you create the credit memo, use the Claim Number field in the first step.

As you work with methods during implementation, you will probably change them until you find the most efficient way to match items.

Pages Used to Set Up Automatic Maintenance Methods

Identifying Automatic Maintenance Methods

Access the Method Summary page. (Select Set Up Financials/Supply Chain, Product Related, Receivables, Credit/Collections, Automatic Maintenance Methods, Method Summary.)

Method

Displays the unique code that identifies the automatic maintenance method.

Steps

The Steps grid displays a list of all the steps in the automatic maintenance method. When you first add a new method, the list is blank.

Defining Automatic Maintenance Method Details

Access the Method Detail page. (Set Up Financials/Supply Chain, Product Related, Receivables, Credit/Collections, Automatic Maintenance Methods, Method Detail.)

Steps

When the Automatic Maintenance process runs, it examines each debit item and performs the steps in the method in sequential order. The system automatically assigns the Step number.

Select one of these options for each step:

If you selected Match References, specify the criteria for creating a match.

Step Order

The buttons in the Step Order group box move a step up or down in the method. Place the steps that produce the greatest number of matches at the beginning of the method.

Conditions and Actions

If you select Match References or Execute Algorithm, you must select an action for each condition. Each step includes five remaining balance conditions.

If you select No Match Write-off, the system defines the conditions and actions, and you cannot change them. However, you can specify whether you want to place the write-off items on a worksheet.

Viewing a Sample Automatic Maintenance Method

We provide several sample methods in the sample database for you to review before you design your own methods. The following sections provide an example of a automatic maintenance method. The example:

• Matches all items except deduction and disputed items that have matching unique open amounts.

• Matches values in the Document field in the Item table for deduction items with the values in the Document field in the Item table for credit items.

The example has four steps. Each step considers the remaining balance for the match group and provides an action based on the balance.

Note. You may want to have several steps that exactly or partially match different references, because not all of your customers supply the same reference information.

Step 1 - Exact Match on the Open Amount

Step 1 provides instructions on creating a match group for each set of debit and credit items that have a unique open amount as well as instructions on resolving each group. For example, the open amount for a debit is 999.00 CAN and the open amount for a credit is –999.00 CAN. Each match group is set to post. You want to match items—except exception items—for all customers associated with the remit from customer.

To create these instructions:

1. Select Match References and enter the following matching criteria:

   Debit Field	Select Item Balance.
   Operator	Select =.
   Credit Field	Select Item Balance.
   Customer Level	Select R.
   Match Type	Select One to One.

2. Select Exclude Deduction Items and Exclude Dispute Items.

3. Select an action for each condition.

   You must select Resolve when the remaining balance = 0. You can select any action for the other conditions, because the remaining balance is always zero for this matching criteria and none of the other conditions apply.

4. Deselect the Worksheet check box.

Step 2 - Exact Match of a Reference Value

Step 2 provides instructions for the Automatic Maintenance process to take if the value in the Document field for the deduction item is exactly the same as the value in the Document field for a credit item. The process matches items for all customers associated with the remit from customer.

To create these instructions:

1. Select Match References and enter the following matching criteria:

   Debit Field	Select Document ID.
   Operator	Select =.
   Credit Field	Select Document ID.
   Customer Level	Select R.
   Match Type	Select All.

2. Select Exclude Dispute Items and Exclude Other Debit Items.

3. Enter the parameters for each condition as shown in this table:

   Remaining Balance	Action	Worksheet
   = 0	Resolve	Clear to post the match group.
   > 0, within tolerance	Resolve, write off balance	Clear to post the match group.
   > 0, over tolerance	Resolve, leave balance open	Select to review the match group on a maintenance worksheet.
   < 0, within tolerance	Resolve, write off balance	Clear to post the match group.
   < 0, over tolerance	Resolve, leave balance open	Select to review the match group on a maintenance worksheet.

Step 3 - Partial Match of a Reference Value

Step 3 provides instructions to take if the value in the Document field for a deduction partially matches the value in the Document field for a credit item. The process matches items for all customers associated with the remit from customer.

To create these instructions:

1. Select Match References and enter the following matching criteria:

   Debit Field	Select Document ID.
   Operator	Select Like.
   Credit Field	Select Document ID.
   Customer Level	Select R.
   Match Type	Select All.

2. Select Exclude Dispute Items and Exclude Other Debit Items.

3. Enter the parameters for each condition as shown in this table:

   Remaining Balance	Action	Worksheet
   = 0	Resolve	Clear to post the match group.
   > 0, within tolerance	Resolve, write off balance	Select to review the match group on a maintenance worksheet.
   > 0, over tolerance	Resolve, leave balance open	Select to review the match group on a maintenance worksheet.
   < 0, within tolerance	Resolve, write off balance	Select to review the match group on a maintenance worksheet.
   < 0, over tolerance	Resolve, leave balance open	Select to review the match group on a maintenance worksheet.

Step 4 - No Match Write-Off

Step 4 provides instructions to take if the value in the Document field for a deduction does not match the value in the Document field for any credit items, when the entry reason for the deduction is SMALL. The write-offs will not be placed on a worksheet. Use this instruction when an item amount is too low to make investigating the open balance worthwhile.

To create these instructions:

1. Select No Match Write-Off.

2. Select Exclude Dispute Items and Exclude Other Debit Items.

3. Enter the entry type code for deductions, such as DED, in the Entry Type field.

4. Enter SMALL in the Reason field.

Defining Automatic Maintenance Algorithm Groups

This section provides an overview of automatic maintenance algorithm groups and discusses how to add a new algorithm group.

Understanding Automatic Maintenance Algorithm Groups

The Automatic Maintenance process uses algorithm groups to match debit items to credit items. When you implement the Automatic Maintenance process, you must create custom algorithm groups from scratch, if you need to use them. For example, you might include a step in your automatic maintenance method that matches the values in two debit item fields to the values in two credit item fields, because you want to match debit items to credit items by matching the invoice number and the purchase order number in both items.

An algorithm group is a section in a Application Engine program. You need to be familiar with Structured Query Language (SQL) and with creating Application Engine processes to write a custom algorithm group.

We provide a sample algorithm group, called #SAMPLE1, in the sample database. The algorithm group matches a debit item to a credit item when the invoice number and the purchase order number are the same in both the debit and the credit item. The algorithm group contains two steps, and each step contains one SQL statement. The sample provides an example of an exact match. However, you can also design your algorithms to create a partial or LIKE match.

This text is the SQL statement for the DEBITS step in the #SAMPLE1 section:

%InsertSelect(MT_ITEM_TAO, MT_ITMOPN_TAO, CORPORATE_SETID = SETID, 
CORPORATE_CUST_ID = CUST_ID, MATCH_GROUP_ID = %BIND(AUTOMNT_METHOD) 
%CONCAT %NumToChar(%BIND(STEP_NUM)) %Concat %Upper(INVOICE) %CONCAT %Upper(PO_⇒
REF), 
AUTOMNT_METHOD = %Bind(AUTOMNT_METHOD), STEP_NUM = %Bind(STEP_NUM), 
DR_AMT = BAL_AMT, CR_AMT = 0, DR_CNT = 1, CR_CNT = 0, ITEM_AMT = BAL_AMT, 
ITEM_AMT_BASE = BAL_AMT_BASE, ENTRY_USE_ID = 'MT-01') 
FROM %Table(MT_ITMOPN_TAO) 
WHERE PROCESS_INSTANCE = %ProcessInstance 
AND BAL_AMT > 0 
AND INVOICE <> ' ' 
AND PO_REF <> ' ' %Bind(AE_WHERE, NOQUOTES)

This text is the SQL statement for the CREDITS step in the #SAMPLE1 section:

%InsertSelect(MT_ITEM_TAO, MT_ITMOPN_TAO, CORPORATE_SETID = SETID, 
CORPORATE_CUST_ID = CUST_ID, MATCH_GROUP_ID = %BIND(AUTOMNT_METHOD) 
%CONCAT %NumToChar(%BIND(STEP_NUM)) %Concat %Upper(INVOICE) %CONCAT %Upper(PO_⇒
REF), 
AUTOMNT_METHOD = %Bind(AUTOMNT_METHOD), STEP_NUM = %Bind(STEP_NUM), 
DR_AMT = 0, CR_AMT = BAL_AMT, DR_CNT = 0, CR_CNT = 1, ITEM_AMT = BAL_AMT, 
ITEM_AMT_BASE = BAL_AMT_BASE, ENTRY_USE_ID = 'MT-01') 
FROM %Table(MT_ITMOPN_TAO) 
WHERE PROCESS_INSTANCE = %ProcessInstance 
AND BAL_AMT < 0 
AND INVOICE <> ' ' 
AND PO_REF <> ' ' %Bind(AE_WHERE, NOQUOTES)

You can copy the SQL that we provide in the DEBITS and CREDITS steps to the steps in your algorithm groups, but you must change the WHERE statement as needed. You must also change the values for INVOICE and PO_REF in the SELECT statement to the appropriate field values that you want to match.

If you are creating an algorithm group to write off items not matched in previous steps, create algorithm groups by copying the SQL in the DEBITS and CREDITS steps in the WRITEOFF section and modifying the WHERE statements.

Adding a New Algorithm Group

Use PeopleSoft Enterprise Application Designer to add a new algorithm group to the Automatic Maintenance process. All custom sections must begin with #, such as #CUSTOM.

There are two ways to add a new algorithm group:

• Copy an existing algorithm group (does not work on all platforms).

• Create an algorithm group from scratch.

We recommend copying whenever possible, because it saves you time.

See Also

Enterprise PeopleTools PeopleBook: PeopleSoft Application Engine