This chapter includes overviews of bank ID and bank account validation, accounts receivable draft processing, and the create payment control groups process for Japan, and discusses how to:
Work with Kagami statements.
Calculate supplier withholding.
Process hankin hante payments.
Process Accounts Payable drafts.
Process bank information.
A bank identification (ID) number identifies the bank with which you have established an account. The bank ID number is included in the customer information that you remit for processing accounts receivable drafts and EFT payments.
You activate bank ID validation routines by setting up the localization country code in your user profile:
Completing the Localization Country Code field on the User Profile Revisions form causes the system to search for a bank ID validation routine, but the validation routine to use is not specified. For example, if you specify Japan in the Localization Country Code field, you can still validate bank IDs for other countries. When you use the Bank Account Cross-Reference program (P0030A), the system uses the value in the Country field on the Mailing tab on the Address Book Revision form to determine which validation to use for the address book record.
The system validates bank code numbers and bank branch codes when you enter bank IDs into the Bank Account Cross-Reference or the Bank Account Information (P0030G) program. The system identifies the customers whose bank information is invalid with an error message.
You can check for missing bank information for customers by running the Bank Account Exception Report (R00314).
The system validates account and bank identification information throughout the draft process:
Process |
Function |
The system prints an error report that lists customers with missing or invalid bank information. You can review the list to correct or update the bank information before you generate the drafts. |
|
When you remit drafts, the system validates bank information again and includes the drafts for all of the specified customers in the electronic bank file. The system prints an error report that lists the customers with missing or invalid bank information. |
Bank ID Validation Overrides
You can override bank ID validation for a specific country by adding the country code to UDC 70/BI. The system does not run bank ID validation routines for countries listed in this UDC table.
In Japan, banks assign a draft number to all drafts. All queries regarding drafts refer to this bank-assigned draft number. Businesses are required to include the bank-assigned draft number on all draft reporting.
Bank-assigned draft numbers are alphanumeric codes that are not generated by JD Edwards EnterpriseOne software. You can input and revise this number manually. You can also use this number to inquire on drafts in the system.
Use the Reference field to input the draft number. The Reference field is alphanumeric and cannot include any blanks, special characters, or punctuation marks.
The Reference field is included in these programs:
Enter Our Drafts (P03B602)
Enter Customer Drafts (P03B602)
Draft Inquiry (P03B602)
A/R Draft Remittance Magnetic Tape Format program (R03B672T)
To access the Reference field, locate a draft and click Select. Select Additional Information from the Form menu on the Drafts Entry form.
You must set up a unique version of the Create Payment Control Groups program to process accounts payable drafts for Japan. Set up the data selection for the version to specify the payment instrument for drafts or bank transactions. To specify the draft payment instrument, select user-defined code D. To specify the bank transaction payment instrument, select user-defined code Q.
Use the processing options for the new version to specify an override bank account number. The system uses the override account number as the short account ID of the draft payables account to which the drafts will be posted.
Set up the data selection for the version to specify your payment instrument for Japanese drafts and the original bank account number on the voucher records.
Processing Bank Transfers
You must also set up a unique version of the Create Payment Control Groups program to process accounts payable bank transfers for Japan. Set up the data selection for the version to specify the payment instrument for bank transfers.
When you run the Create Payment Control Groups program for bank transfers, the system:
Calculates the appropriate bank charges and consumption tax for each transfer.
Creates a separate pay item for each transfer to represent the bank charge, consumption tax, and adjustment amounts:
Reduces the total payment amount for the transfer by these amounts.
Prints a report listing the bank charges.
Note. If you use accounts payable bank transfers for Japan, the system reserves voucher pay items 997, 998, and 999. You cannot use these voucher pay items in the base JD Edwards EnterpriseOne Accounts Payable system.
When you process accounts payable bank transfers for Japan, the system creates these journal entries for each transfer:
Normal journal
Bank charge journal
Consumption tax journal
Bank charge adjustment journal
To void the bank transfer, you must void all of the associated journals entries.
This section provides an overview of Kagami statements and discusses how to:
Print Kagami statements.
Set processing options for Kagami Invoice Statement - Japan (R03B5001JP).
In Japan, bank transfers are the most commonly used method of payment. Japanese banks charge a fee for each transfer that a business requests. To help customers avoid excessive bank charges, a monthly summarized invoice, or Kagami, is issued as the general billing procedure for Japanese businesses.
Businesses that use monthly summarized invoicing do not issue invoices for every goods delivery. Instead, businesses establish a monthly cutoff date with the customer and issue one invoice that summarizes all of the customer's business transactions for the prior month.
Kagami statements include this information:
Bill to name and address for the customer.
Billing period.
Although billing periods vary by customer, the beginning of the period must be the day after the last cutoff date. The end of the previous period is the cutoff date.
Open amount as of the cutoff date.
The open amount is summarized by sales, cash receipts, adjustments, and so on.
Detailed information, such as invoice number, item number, and price, from each sales order.
Verify that you have a next number set up for the summarized invoice number in the JD Edwards EnterpriseOne Accounts Receivable system. For this verification, use the next number for the Statement No. (statement number) field.
See Setting Up Next Numbers for Accounts Receivable.
To print Kagami statements, follow the A/R statement process, specifying Kagami Invoice Statement Japan (R03B5001JP) in the Print Program processing option of a copy of the XJDE0002 (Statement Refresh with Draft) version of the Statement Print with Draft program (R03B500X).
Processing options enable you to specify the default processing for programs and reports.
Use these processing options to customize defaults for Kagami Invoice Statement Print - Japan (R03B01JP).
1. Aging Information |
Specify whether to print aging information. Values are: Blank: The system does not print aging information. 1: The system prints aging information. |
2. Account Summary |
Specify whether to print the account summary. Values are: Blank: The system prints the account summary. 1: The system does not print the account summary. |
3. Invoice Date |
Specify whether to print the invoice date. Values are: Blank: The system does not print the invoice date. 1: The system prints the invoice date. |
4. Statement Number |
Specify whether to print the statement number. Values are: Blank: The system does not print the statement number. 1: The system prints the statement number. |
5. Remit to Address |
Specify whether to print the remit to address. Values are: Blank: The system does not print the remit to address. 1: The system prints the remit to address |
6. Tax Information |
Specify whether to print tax information on the invoice document level. Values are: Blank: The system does not print the tax information. 1: The system prints the tax information. |
7. Sales Information |
Specify whether to print sales information on the invoice. You can specify that the system prints information from the Sales Order Detail table (F4211) or from the Sales Order History table (F42119). Values are: Blank: The system does not print sales information. 1: The system prints sales information from the F4211 table. 2: The system prints sales information from the F42119 table. 3: The system prints sales information from the F4211 table if it exists. If no data exist in the F4211 table, the system prints sales information from the F42119 table. |
8. Kagami Summary |
Specify whether to print the Kagami summary. Values are: Blank: The system does not print the Kagami summary. 1: The system prints the Kagami summary. |
Process
Use this processing option to customize invoice records when printing the Kagami invoice statement.
1. Invoice Record |
Specify whether to summarize each invoice record. Values are: Blank: The system does not summarize each invoice record. 1: The system summarizes each invoice record. |
This section provides an overview of the withholding process for Japan and discusses how to:
Run the Calculate Withholding - Japan report.
Set processing options for Calculate Withholding - Japan (R7500090).
Set processing options for Country Specific Processing Options - Japan (P04580JP).
The Calculate Withholding - Japan (R7500090) program calculates the withholding for Japan, updates the status of the existing pay item, and creates these additional pay items:
A negative pay item for the withholding amount with the same payee, pay status, and due date as the original voucher pay item.
A positive pay item for the withholding amount using the tax authority in the supplier master record.
You can specify a different tax authority in the Tax Authority for A/P processing option.
If you leave the Withheld Pay Status Code processing option blank, the system assigns a pay status of H (hold) to pay items for tax authorities, thus enabling you to accumulate withholdings and pay them on a periodic basis.
You use the Withholding Tax Basis processing option to specify whether to calculate the withholding amount based on the gross amount or the taxable amount. If you use the taxable amount to calculate the withholding amount, the system returns an error for any pay item that does not have a taxable amount and does not process that pay item.
To calculate the correct withholding amounts for both taxable and non-taxable amounts, you must run the Calculate Withholding - Japan program twice: once, using the gross amount; and again, using the taxable amount. You can use data selection to select only non-taxable transactions when you run the Calculate Withholding - Japan program using the gross amount, and then run the Calculate Withholding - Japan program using the taxable amount for all remaining transactions. Or, you can run the Calculate Withholding - Japan program using the taxable amount, enabling the program to generate errors for all non-taxable transactions; and then run the Calculate Withholding - Japan program using the gross amount to calculate the withholding amount for those transactions.
The system stores the withholding information in the Withholding Tax Detail - Japan (F750411) table.
Additional results to consider are:
If you change the default pay status of the original pay item, the system changes the default pay status for the negative pay item.
The negative pay item offsets the amount of the original pay item when you process the original and negative pay items for payment.
Before you complete the tasks in this section:
Set up your suppliers with a payment instrument and withholding tax authority.
Set the processing options for Country Specific Processing Options - Japan (P04580JP) using the Interactive Versions program.
Set the processing options for Calculate Withholding - Japan (R7500090), including the withheld record due date and the rounding.
Select Japanese Localization (G75J), Calculate Withholding - Japan.
Processing options enable you to specify the default processing for programs and reports.
Process
1. Release Pay Status Code |
Enter a value from the Payment Status Codes (00/PY) UDC to specify the pay status that the system assigns to the voucher to be released for payment. If you leave this processing option blank, the system uses A. |
2. Withheld Pay Status Code |
Enter a value from the Payment Status Codes (00/PY) UDC to specify the pay status that the system assigns to the withheld pay item. If you leave this processing option blank, the system uses H for the default value. |
3. Withheld Record Due Date |
Assign the due date to the withheld pay item. If you leave this processing option blank, the system assigns the voucher's due date. |
4. Rounding |
Specify the method of rounding. Values are: Blank: Round to the nearest integer. 1: Round down. 2: Round up. Examples of rounding down: Amount of 1,500.15 is rounded to 1,500.00. Amount of 1,500.65 is rounded to 1,500.00. Example of rounding up: Amount of 1,500.15 is rounded to 1,501.00. |
5. G/L Offset |
Enter the GL offset AAI PC to assign to the withheld pay item. This offset should represent the withholding account. Note. Do not use code 9999. It is reserved for the post program and indicates that offsets should not be created. |
6. G/L Bank Account |
Assign the GL bank account to the withheld pay item. If you leave this processing option blank, the system assigns the bank account from AAI item PB. |
Taxes
1. Tax Authority for A/P Withholding |
Enter an override tax authority that the system assigns to the Alt Payee (Alternate Payee) field in the withholding entry. If you leave this processing option blank, the system retrieves the tax authority from the address book record of the supplier. |
Processing options enable you to specify the default processing for programs and reports.
Defaults
1. Tax Authority Search Type |
Enter a value from the Search Type (01/ST) UDC table to identifies the type of address book record the system finds when you conduct a search. |
This section provides an overview of processing hankin hante payments for Japan and discusses how to:
Run the Automatic Payment Split - Hankin Hante program.
Set processing options for Automatic Payment Split - Hankin Hante (R75J04PS).
Hankin hante is a Japanese payment method to automatically split Accounts Payable payments. Payments over a designated amount are split into two smaller payments of different payment instruments— typically, a bank transfer and a draft. Splitting payments by using the hankin hante method is a general business practice in Japan because it enables companies to improve cash flow by deferring payment.
The Japanese government imposes a stamp tax on bank drafts. The amount of the stamp tax is determined by the draft amount. As a general practice, Japanese businesses split draft payments into two or more smaller drafts so that they pay less stamp tax.
For example, the stamp tax for a draft of 8,000,000 JPY is 2,000 JPY, the stamp tax for a 5,000,000 JPY draft is 1,000 JPY, and the stamp tax for a draft of 3,000,000 JPY is 600 JPY. Splitting an 8,000,000 JPY draft into two drafts of 5,000,000 JPY and 3,000,000 JPY saves 400 JPY in stamp tax.
To split Accounts Payable payments into payments of different types, complete the following steps:
Set up your system for hankin hante payments:
Define the split amounts for drafts and for bank transfers in the Hankin Hante Split Amounts program (P75J0411).
Assign the same payment instrument to each hankin hante supplier.
Complete the Draft Ratio field on the Address Book Revision Japan form. You complete this form when you enter additional information for suppliers.
Use the Create Payment Control Groups program (R04570) to create preliminary payment control groups.
Run the Automatic Payment Split - Hankin Hante program (R75J04PS) in proof mode to review the hankin hante payment splits.
Run the Automatic Payment Split - Hankin Hante program in final mode.
Run the Create Payment Control Groups program to create payment control groups for the newly split bank transfers and drafts.
Run the Work With Payment Groups program (P04571) to write and update draft and bank transfer payments.
Run the Batches program (P0011) to review draft and bank transfer payments.
Run the General Ledger Post Report program (R09801) to post draft and bank transfer payments to the general ledger.
Run the Automatic Draft Split - Hankin Hante (R75J04DS) program in proof mode to review the split of the hankin hante draft payments.
Run the Automatic Draft Split - Hankin Hante program in final mode.
Run the Bank Draft Number Revision-Japan program (P75301) to update the draft number and change the maturity date.
Run the Manual Draft Split - Hankin Hante program (P75J04DS) to manually split drafts that could not be split automatically.
Run the A/P Draft Payable List program (R75402) to print the draft report.
Run the A/P Drafts Inquiry/Selection program (P04260) to select drafts for settlement.
Run the Post Drafts Payable program (R04803) to post the drafts to the general ledger.
Automatically Splitting Payments in Japan
You run the Automatic Payment Split - Hankin Hante program after you run the Create Payment Control Groups program. When you run the Automatic Payment Split - Hankin Hante program in final mode, the system splits hankin hante payments into bank transfers and drafts. You specify in processing options the payment type for hankin hante payments and the payment types for drafts and bank transfer. The system splits the amount for each supplier into bank transfers and drafts according to the split amounts that you set up in the Hankin Hante Split Amounts program and the draft ratio that you specify when you set up the supplier master information.
When the system splits the payment into a draft and bank transfer:
The vouchers are restored to an unpaid, approved status.
The payment instrument for each voucher changes to either a draft or bank transfer, and if necessary, the system splits the one pay item into two pay items.
You specify the payment instruments for the hankin hante payments that you want to split and the payment instruments for drafts and bank transfers in the processing options. The hankin hante payment instrument determines which payment workfile records the system selects for processing. In final mode, the system assigns the draft and bank transfer payment instruments to the F0411 table records for each payment that is split into drafts and bank transfers. You set up payment instruments in the Payment Instrument (00/PY) UDC.
When you run the Automatic Payment Split - Hankin Hante program, the system processes only the payment control groups that are at a Write status and that are of the payment instrument type that you specify for hankin hante payments.
You can specify in the processing options the version of the Create Payment Control Groups program that the Automatic Payment Split - Hankin Hante batch process runs as the final step when you run the Automatic Payment Split - Hankin Hante program in final mode. If you do not specify a version for the Create Payment Control Groups program in the Automatic Payment Split - Hankin Hante program, you must run the Create Payment Control Groups process manually.
The report for the Automatic Payment Split - Hankin Hante program includes this information in the detail section:
Payee number
Payee name
Payment type
Document number
Company
Original pay item
Original amount
Draft payment
Bank transfer payment
New pay items
If you have not set up the F75J04SA table with the payment split amounts, the report prints an error message and the system does not process any records.
Example of Automatically Splitting Hankin Hante Payments
Suppose that your company has defined the split for hankin hante payments in 1,000,000 JPY increments. Suppose further that you set up and assigned a payment type of H to suppliers for hankin hante payments and that you set up the draft ratio for your suppliers as shown in Table 1.
Table 1 (Draft Ratios)
This table shows the draft ratio for your suppliers:
Supplier |
Payment Instrument |
Draft Ratio |
5001 |
H |
50 percent |
5002 |
H |
75 percent |
5003 |
H |
50 percent |
5004 |
H |
50 percent |
5005 |
H |
0 percent |
You run the Create Payment Control Groups program to create payment workfile records for H-type payment instruments, and then run the Automatic Payment Split - Hankin Hante program to split the H-type payment records into bank transfers and drafts.
The system splits the payment amount that is due to each supplier according to the split amounts in the F75J04SA table and the draft ratio for each supplier. The system first verifies that the payment amount is at least equal to the lowest split amount in the F75J04SA table. If the payment amount is greater than or equal to the lowest amount in the table, the system processes the amount that is due to the supplier according to the supplier's draft ratio. If the payment amount is not at least the amount of the lowest split amount, the system processes the amount that is due as a draft.
Table 2 (Supplier Payments)
This table shows how the system would split hankin hante payments for the suppliers who are listed in Table 1:
Supplier |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
5001 |
4,000,000 |
2,000,000 |
2,000,000 |
5002 |
4,000,000 |
3,000,000 |
1,000,000 |
5003 |
1,500,000 |
750,000 |
750,000 |
5004 |
1,000,000 |
1,000,000 |
|
5005 |
1,000,000 |
1,000,000 |
Table 3 (Supplier 5001 Vouchers)
Suppose supplier 5001 has three vouchers that total 4,000,000 JPY:
Voucher |
Original Payment Amount |
PV 1234 001 |
1,000,000 |
PV 1235 001 |
2,000,000 |
PV 1236 001 |
1,000,000 |
Supplier 5001 has a draft ratio of 50 percent. This situation means that up to 50 percent of the amount due can be sent as a draft. Since 50 percent of the original amount is equal to one of the levels in the F75J04SA table, the payment is split into a draft of 2,000,000 JPY and a bank transfer of 2,000,000 JPY. The system does the following to accomplish the split:
Resets PV 1234 001 from payment instrument H (hankin hante) to payment instrument D (draft).
Splits PV 1235 001 into two pay items.
Pay item 001 is reset to payment instrument of D (draft) and the amount is changed to 1,000,000 JPY. Pay item 002 has a payment instrument of W (bank transfer) and is 1,000,000 JPY.
Resets PV 1236 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer).
Table 4 (Supplier 5001 Splits)
This table shows the results of the payment split for supplier 5001:
Voucher |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
PV 1234 001 |
1,000,000 |
1,000,000 |
NA |
PV 1235 001 |
2,000,000 |
1,000,000 |
NA |
PV 1235 002 |
NA |
NA |
1,000,000 |
PV 1236 001 |
1,000,000 |
NA |
1,000,000 |
The total of the original payment amount is 4,000,000. The total of the draft payment is 2,000,000. The total of the bank transfer is 2,000,000.
Table 5 (Supplier 5002 Vouchers)
Suppose supplier 5002 has three vouchers that total 4,000,000 JPY:
Voucher |
Original Payment Amount |
PV 2234 001 |
1,000,000 |
PV 2235 001 |
2,000,000 |
PV 2236 001 |
1,000,000 |
Supplier 5002 has a draft ratio of 75 percent. This situation means that up to 75 percent of the amount that is due can be sent as a draft. Since 75 percent of the original amount is equal to one of the levels in the in the F75J04SA table, the system splits the original amount into a draft that is equal to 75 percent of the original amount and a wire transfer that is equal to 25 percent of the original amount. The system does the following to accomplish the split:
Resets PV 2234 001 and PV 2235 001 from payment instrument H (hankin hante) to payment instrument D (draft).
Resets PV 2236 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer).
Table 6 (Supplier 5002 Splits)
This table shows the results of the payment split for supplier 5002:
Voucher |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
PV 2234 001 |
1,000,000 |
1,000,000 |
NA |
PV 2235 001 |
2,000,000 |
2,000,000 |
NA |
PV 2236 001 |
1,000,000 |
NA |
1,000,000 |
The total of the original payment amount is 4,000,000. The total of the draft payment is 3,000,000. The total of the bank transfer is 1,000,000.
Suppose supplier 5003 has one voucher of 1,500,000 JPY. Supplier 5003 has a draft ratio of 50 percent. This situation means that up to 50 percent of the amount due can be sent as a draft. Since 50 percent of the original amount is less than the lowest split amount in the F75J04SA table, the system splits the original amount into a draft that is equal to 50 percent of the original amount and a wire transfer that is equal to 50 percent of the original amount. The system splits PV 3235 001 into two pay items to accomplish the split. Pay item 001 is reset to payment instrument D (draft), and the amount is changed to 750,000 JPY. Pay item 002 has a payment instrument of W (bank transfer) and is 750,000 JPY.
Table 7 (Supplier 5003 Splits)
This table shows the results of the payment split for supplier 5003:
Voucher |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
PV 3234 001 |
1,500,000 |
750,000 |
NA |
PV 3234 002 |
NA |
NA |
750,000 |
Suppose supplier 5004 has one voucher of 1,000,000 JPY. Since 1,000,000 is equal to the lowest split amount in the F75J04SA table, the system processes the entire payment as a draft and does not consider the supplier's draft ratio. The system resets PV 4234 001 from payment instrument H (Hankin Hante) to payment instrument D (draft) to process the payment.
Table 8 (Supplier 5004 Splits)
This table shows the result of the R75J04PS process for supplier 5004:
Voucher |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
PV 4234 001 |
1,000,000 |
1,000,000 |
none |
Suppose supplier 5005 has one voucher of 1,000,000 JPY. This supplier has a draft ratio of zero percent, so the system processes the entire amount that is due as a bank transfer. The system resets PV 5234 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer) to process the payment.
Table 9 (Supplier 5005 Splits)
This table shows the result of the R75J04PS process for supplier 5005:
Voucher |
Original Payment Amount |
Draft Payment |
Bank Transfer Payment |
PV 5234 001 |
1,000,000 |
none |
1,000,000 |
Select Japanese Localization menu (G75J), Automatic Payment Split - Hankin Hante.
Process
1. Proof or Final Mode |
Enter 1 to run process in final mode. The system restores the vouchers to an unpaid approved status, updates the F0411 table, and prints the report. If you leave this processing option blank, the system generates and prints a report without performing any updates. |
2. Draft Payment Instrument |
Enter a value that exists in the Payment Instrument UDC table (00/PY) to specify the type of payment instrument that the system assigns to the voucher pay items for the split payment that is paid by the draft. |
3. Bank Transfer Payment Instrument |
Enter a value that exists in the Payment Instrument UDC table (00/PY) to specify the type of payment instrument that the system assigns to the remaining voucher pay items of the split payment to be paid by bank transfer. |
Select
1. Hankin Hante Payment Instrument |
Enter a value that exists in the Payment Instrument UDC table (00/PY) to specify the type of payment instrument that the system splits into draft and bank transfer payments. The system selects for processing only the unwritten payment control groups of the payment instrument type that you specify. |
Versions
1. Create Payment Control Groups (R04570) |
Specify the version that the system uses to create new payment groups. If you enter a version, the system automatically runs the specified version of the Create Payment Control Groups program after splitting the hankin hante payments into draft and bank transfer payments. If you leave this processing option blank, you must run the Create Payment Control Group process manually. |
In addition to the base software processes, processing accounts payable drafts in Japan also involves splitting drafts, printing the Stamp Tax Calculation Report - Japan, and entering bank-assigned draft numbers. You can also create drafts using the Payment with Voucher Match program (P0413M) if you need to remit payment to a supplier immediately.
This section provides overviews of splitting drafts in Japan, the Stamp Tax Calculation Report - Japan, and entering bank-assigned draft numbers and discusses how to:
Manually split drafts.
Run the Automatic Draft Split - Hankin Hante report.
Set processing options for Automatic Draft Split - Hankin Hante (R75J04DS).
Print the Stamp Tax Calculation Report - Japan.
Set processing options for the Stamp Tax Calculation Report - Japan.
Enter bank-assigned draft numbers.
You split drafts to minimize the amount of stamp tax that you must pay. In the processing options for the Automatic Draft Split - Hankin Hante program (R75J04DS), you can specify whether the system splits drafts according to the split amounts that you specify in the Hankin Hante Split Amounts table (F75J04SA) or according to the fixed amount that you specify in the processing options. You set up the amounts in table F75J04SA by using the Hankin Hante Split Amounts program (P75J0411).
If you choose to split the drafts using the amounts in the F75J04SA table, you can also select whether to limit the number of splits. When you limit the number of splits, you limit the number of drafts. For example, if you specify that two splits are allowed, the maximum number of drafts is three (the original draft plus the two drafts that are split from the original).
The system processes only pending drafts that have a document type of P1, a pay status of D, and that are eligible for splitting. Eligible drafts are those that have amounts greater than the fixed amount which is specified, if the fixed-amount split method is selected in the processing options, or that have amounts greater than the lowest table-split amount if that split method is selected.
The report for the Automatic Draft Split - Hankin Hante program includes:
Payee number
Payee name
Payment type
Document number
Company
Original pay item
Original draft amount
Split draft amounts
New pay items
The system produces a report when you run the Automatic Draft Split - Hankin Hante program in proof and final mode. Additionally, when you run the program in final mode, the system:
Splits the original drafts into smaller drafts.
Retains the original pay item for one draft.
Creates new pay items for the new drafts.
Updates the F0411 table with the new draft amount for the original pay item, and the new pay items and amounts for the new drafts.
If you set the Draft Split Method processing option to process splits by using table amounts and you have not set up the table amounts, or you set the processing option to process splits by using a fixed amount and you have not specified an amount in the Fixed Split Amount processing option, the system does not process the splits; the report contains an error message.
Example of Automatic Draft Splits using the Table Amounts Method
Suppose your company has defined split amounts for drafts as shown in this table:
Split Type |
Amount |
Draft |
1,000,000 |
Draft |
2,000,000 |
Draft |
3,000,000 |
Draft |
5,000,000 |
Draft |
10,000,000 |
Suppose further that you set the Draft Split Method processing option to process splits using table amounts and do not specify a maximum number of splits. When you run the Automatic Draft Split - Hankin Hante program, the system splits an 18,500,000 JPY draft into four drafts:
The original draft amount of 18,500,000 JPY is greater than the last (highest) draft split amount of 10,000,000 JPY, so the system changes the amount for that pay item to 10,000,000 JPY.
The remaining 8,500,000 JPY is greater than the fourth split amount of 5,000,000 JPY, so the system creates a second pay item for 5,000,000 JPY.
The remaining 3,500,000 JPY is greater than the third split amount of 3,000,000 JPY, so the system creates a third pay item for 3,000,000 JPY.
The remaining 500,000 JPY is less than the first (lowest) split amount, so the system creates a fourth pay item for 500,000 JPY.
This table shows how the system split the original draft:
Original Draft |
Original Draft Amount |
Split Drafts |
Splits Draft Amounts |
P1 1234 001 |
18,500,000 |
P1 1234 001 |
10,000,000 |
P1 1234 002 |
5,000,000 |
||
P1 1234 003 |
3,000,000 |
||
P1 1234 004 |
500,000 |
If you process the same original draft of 18,500,000 JPY and set the Maximum Number of Splits processing option to 2, the system splits the draft as follows:
The original draft amount of 18,500,000 JPY is greater than the last (highest) draft split amount of 10,000,000 JPY, so the system changes the amount for that pay item to 10,000,000 JPY.
The remaining 8,500,000 JPY is greater than the fourth split amount of 5,000,000 JPY, so the system creates a second pay item for 5,000,000 JPY.
The system creates a third pay item for the remaining 3,500,000 JPY because three is the maximum number of drafts allowed when you set the maximum number of splits to two.
This table shows how the system split the original draft:
Original Draft |
Original Draft Amount |
Split Drafts |
Splits Draft Amounts |
P1 1234 001 |
18,500,000 |
P1 1234 001 |
10,000,000 |
P1 1234 002 |
5,000,000 |
||
P1 1234 003 |
3,500,000 |
Example of Automatic Draft Splits using the Fixed Amounts Method
Suppose that you set the Draft Split Method processing option to process splits using a fixed amount, and you set the Fixed Split Amount processing option to 1,000,000 JPY. When you run the Automatic Draft Split - Hankin Hante program, the system splits a 3,500,000 JPY draft into four drafts:
The original draft amount of 3,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system changes the amount for that pay item to 1,000,000 JPY.
The remaining 2,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system creates a second pay item for 1,000,000 JPY.
The remaining 1,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system creates a third pay item for 1,000,000 JPY.
The remaining 500,000 JPY is less than the specified split amount of 1,000,000 JPY, so the system creates a fourth pay item for 500,000 JPY.
This table shows how the system split the original draft:
Original Draft |
Original Draft Amount |
Split Drafts |
Splits Draft Amounts |
P1 4321 001 |
3,500,000 |
P1 4321 001 |
1,000,000 |
P1 4321 002 |
1,000,000 |
||
P1 4321 003 |
1,000,000 |
||
P1 4321 004 |
500,000 |
When businesses in Japan issue drafts for payment, they are required to pay a stamp tax. The tax amount depends on the amount of the draft. Use the Stamp Tax Calculation report to report and remit a stamp tax for each voucher that is paid with a draft. The system generates this report based on the amount of the draft and the information in the Stamp Tax - Japan table (F75013).
In Japan, banks assign a bank draft number to all draft transactions. Businesses are required to include the bank draft number on all draft reporting.
Bank draft numbers are alphanumeric codes that you can input and revise manually. You can also use the number to review your drafts.
Set up the Stamp Tax - Japan table (F75013).
See Setting Up the Stamp Tax Table.
Form Name |
FormID |
Navigation |
Usage |
Split Drafts Pending |
W75J04DSA |
Japanese Localization (G75J), Bank Draft Number Revision On the Bank Draft Number Revision form, select Split from the Row menu. |
Split drafts. The system displays the unallocated amount in the Remaining Amount field. You must specify one or more drafts for this amount until the amount displayed is 0. The new draft has the same document number, document type, and document company as the original draft. The pay item for the new draft is the next pay item number. The OK button is disabled until the amount in the Remaining Amount field is 0. |
Bank Draft Number Revision |
W75301C |
Japanese Localization (G75J), Bank Draft Number Revision |
Locate specific drafts and enter the bank-assigned draft numbers. |
Access the Split Drafts Pending form.
Select Japanese Localization (G75J), Automatic Draft Split - Hankin Hante.
Processing options enable you to specify the default processing for programs and reports.
Process
1. Proof or Final Mode |
Leave this processing option blank to run the report in proof mode. The system prints an edit report and does not update any records. Enter 1 to run the report in final mode. The system splits the selected drafts, updates the F0411 table, and prints a report. |
2. Draft Split Method |
Specify the method that the system uses to split the selected drafts. If you select the fixed amount method, you must enter an amount in the Fixed Split Amount processing option in the R75J04DS program. Values are: 1: Fixed amount method. The system splits the selected drafts according to the amount that you enter in the Fixed Split Amount processing option. For example, if you enter 1,000,000, the system splits a draft of 3,000,000 into three drafts of 1,000,000 each, and splits a draft of 1,500,000 into one draft of 1,000,000 and one draft of 500,000. 2: Table amounts method. The system splits the selected drafts based on the amounts set up for drafts in the Hankin Hante Split Amounts table (F75J04SA). |
3. Fixed Split Amount |
Specify the amount of the fixed split when you use the fixed amount method to split drafts. You must enter an amount in this processing option if you set the Draft Split Method processing option in this program to 1 (Fixed amount). The system ignores this processing option if you set the Draft Split Method processing option to 2 (Table amount). |
4. Maximum Number of Splits |
Specify the maximum number of times that the system splits selected drafts into smaller drafts when you set the Draft Split Method processing option to 2 (Table amounts). When you set the Draft Split Method processing option to 2 and specify a maximum number of splits in this processing option, the system splits the original drafts into smaller drafts according to the draft split amounts in the Hankin Hante Split Amounts table (F75J04SA), but limits the number of times it splits the original drafts. For example, if the F75J04SA table specifies draft split levels of 1,000,000, 3,000,000, 5,000,000, and 10,000,000, and you enter 2 for this processing option, the system splits an original draft of 19,500,000 two times, which results in three drafts (the original draft and two new drafts). In this example, the draft amounts would be 10,000,000, 5,000,000, and 4,500,000. If you did not specify a maximum number of splits in this processing option, the system would split the original draft into drafts of 10,000,000, 5,000,000, 3,000,000, 1,000,000, and 500,000. If you leave this processing option blank and you set the Draft Split Method processing option for this program to 2 (Table amounts), the system does not limit the number of splits. The system ignores this processing option if you set the Draft Split Method processing option to 1 (Fixed amount). |
Select Japanese Localization (G75J), Stamp Tax Calculation Report - Japan.
Processing options enable you to specify the default processing for programs and reports.
Process
1. Mode |
Enter 1 to process stamp tax calculations in final mode. |
Access the Bank Draft Number Revision form.
Draft Number |
Enter the number that identifies the original document, such as a voucher, invoice, or journal entry. On entry forms, you can assign the document number or let the system assign it using the Next Numbers program (P0002). Matching document numbers (DOCM) identify related documents in the JD Edwards EnterpriseOne Accounts Receivable and JD Edwards EnterpriseOne Accounts Payable systems. |
Bank Draft Number |
Enter the supplier's invoice number that is used for voucher entry. Voucher entry enables only one invoice per voucher number. If multiple invoice numbers exist on a voucher, you must set them up as multiple vouchers or combine the invoices and enter them as one voucher. Depending on how you have your accounts payable constants set, the system can:
Blank values are treated in the same manner as any other invoice number. Two blank invoice numbers are treated as duplicates. To test for duplicate invoice numbers that might have been entered in error, run the Suspected Duplicate Payments report (R04601). The duplicate invoice number validation is not run for vouchers with document type NO. These vouchers are created by the Generate Reimbursements program (R03B610). |
Cleared Date |
Enter the date that the payment amount was debited or credited to the bank account. The value date is not the date the bank reconciled the payment. Automatic payments populate this field automatically. If you are making manual payments and have set a processing option to display the value date field, you can manually enter the value date here. |
This section provides an overview of Japanese bank transfers and discusses how to:
Upload Japanese bank and branch information.
Set processing options for Bank/Branch Table Upload - Japan (R75010A).
Revise Japanese bank and branch information.
Enter Japanese bank charges.
Bank transfers are commonly used in Japan to move funds between bank accounts. The Japanese Bank Association (JBA) has defined detailed standards regarding fund transfers that include:
Bank transfer tape format.
Bank charges applied to transfers.
Consumption taxes assessed on bank charges.
In Japan, businesses can remit payment by electronic or paper bank transfers. To process any bank transfer, banks require:
Requirement |
Explanation |
Bank/branch number |
Every bank and bank branch through which a transfer is processed can be identified by a bank/branch number. Bank/branch numbers are assigned to banks by the JBA. Businesses should validate these numbers to prevent incurring a bank charge for the submission of invalid bank information. |
Payor and payee bank account information |
The bank account information for the payor and the payee consists of an account number and an account type. These account types are possible:
|
Bank transfer payor number |
A bank transfer number is assigned to each payor by the bank. |
Transfer type |
Businesses can select these transfer types:
|
Banks levy a service charge on each transfer that they process. The amount of the service charge is based on:
The actual amount of the transfer (also referred to as the treating amount).
Whether the transfer is an express or letter transfer.
Whether the transfer is an internal or external bank transfer.
Whether the transfer is an internal or external branch transfer.
Either the customer or the supplier agrees to pay the bank charges. The amount of the transfer is the total payment amount minus the bank charges and tax.
In addition, the service charge for each bank transfer is subject to consumption tax. In some cases, the addition of the consumption tax on the amount of the transfer moves the transfer into another treating charge category. When this happens, the transfer becomes subject to a lower service charge, and the business must recognize an adjustment for the transfer.
The bank transfer type is payee-specific and is stored in the F750401 table. You can access the information that is stored in this table by choosing Regional Info from the Form menu of the Supplier Master Information form.
Payor and Payee Bank Account Information
You use the Bank Account Information program (P04130) to set up bank account information for payors and assign a record type of G to the record. You use the Bank Account Cross Reference (P0030) program to set up bank account information for payees and assign a record type of V to the record. The system stores bank account information for payors and payees in the Bank Transit Master (F0030) table.
See Also
Setting Up UDCs for Bank Accounts for Japan
Understanding the Create Payment Control Groups Process for Japan
Form Name |
FormID |
Navigation |
Usage |
Work with Bank - Japan |
W7530JPA |
Japanese Localization (G75J), Bank/Branch/Charge Revision |
Review a list of existing banks. |
Bank Revision - Japan |
W7530JPB |
On the Work with Bank - Japan form, click Add. |
Set up bank and branch information. |
Bank/Branch Revision |
W7530JPC |
On the Work with Bank - Japan form, select Bank/Branch from the Row menu. |
Revise bank and branch information. |
Bank Charge Revision |
W7530JPD |
On the Work with Bank - Japan form, select Bank Charge from the Row menu. |
Enter bank charge information for Japan. |
Select Japanese Localization (G75J), Bank/Branch Table Upload.
In Japan, banks and bank branches are identified by a bank number and a branch number. These numbers are assigned to banks by the JBA
You can upload the latest bank and branch information from the JBA into a table on your system. When you process bank transfers, the system validates the bank numbers and branch numbers for each transfer against values in the table.
The Bank/Branch Table Upload program creates the Bank/Branch Master - Japan table (F75010) and prints a report that lists:
Total number of bank records added.
Total number of branch records added.
Total number of records read.
Use processing options to replace all of the existing records in the F75010 table or to add only those records that do not already exist in the table.
Processing options enable you to specify the default processing for programs and reports.
File
The two processing options on the File tab are for future use.
Update
1. Enter '1' to REPLACE records in file. Default is ADD record to file. Replace or Add. |
Specify whether the system replaces records in the file. Values are: Blank or 0: Add record to file. 1: Replace records in file. |
Access the Bank/Branch Revision form.
Bank Name (Secondary Alpha) |
Enter an alternate name field in the JD Edwards EnterpriseOne Address Book system to accommodate double-byte coding. |
Bank Name (Alpha Name) |
Enter the text that names or describes an address. This 40-character alphabetic field appears on a number of forms and reports. You can enter dashes, commas, and other special characters, but the system cannot search on them when you use this field to search for a name. |
Access the Bank Charge Revision form.