Processing Payments

This chapter provides an overview of payments, and discusses how to:

Create payments.
Pay an employee for a partial pay period.

Understanding Payments

After you process pre-payroll, you can process payments. Using the Payroll Workbench, you can create payment advice slips for employees who receive cash payments and for employees whose payments are automatically deposited into a banking institution. You can also create tapes, which the banking institution uses to process automatic deposit payments.

After the pre-payroll step has been completed, the next three steps of the payroll cycle can be completed in any order preferred.

This process flow illustrates the location of the payments step in the payroll cycle:

Payroll cycle: payments

Prerequisites

Before you complete the tasks in this section:

Verify that the system time-out value is set to allow enough time for all payments to print before the workstation times out.

Contact the system administrator for assistance with this task.
Set up any reports that you want to generate during the payments step of the payroll cycle.

See Printing Payroll Cycle Reports.
Set up debit account information for each bank account from which payroll payments are drawn.

See Setting Up Debit Account Information for Automatic Deposits.
Set up all of the payment types that the organization uses.

See Setting Up Payment Information.
Enter any necessary superannuation payment information.

See (AUS) Managing Superannuation Information.
Verify that automatic deposit information has been set up correctly before you process automatic deposit files.

See (NZL) Entering Employee Automatic Deposit Information for New Zealand.
Process pre-payroll.

Creating Payments

This section provides an overview of payment creation and discusses how to:

Create advice slips.
Set processing options for Generic Payment Advice for Australia and New Zealand (R75A0013).
Create the automatic deposit file.
Copy automatic deposit information to a bank tape.
Set processing options for Copy Payroll Direct Credit Pymts to Bank (P75A0006).

Understanding Payment Creation

After you process pre-payroll, you can create payments for the employees who are included in the payroll cycle. You can create payment advices, automatic deposits, or cash payments.

Advice Slips

After you successfully complete pre-payroll processing, you can print advice slips for the employees who are included in the payroll cycle. Advice slips are created for employees who receive cash payments, as well as for those who use automatic deposits.

Note. You create advice slips during the payroll cycle. You can create them at any time after you successfully complete pre-payroll, and before you process the final update step of the cycle.

Additionally, you must define, in the processing options of the R75A0013 program, which method the organization uses to create superannuation payments. If you do not set the appropriate processing option correctly, the system cannot locate superannuation data, and therefore cannot accurately display superannuation data on the payment advice.

The Automatic Deposit File

After you successfully complete pre-payroll processing, you can create the automatic deposit file for employees who are included in the payroll cycle. This file contains all of the necessary information that the banking institution needs to process automatic deposit payments.

Automatic Deposit Information and Bank Tapes

After you create the automatic deposit file, you can transfer the payment information to files on a tape that is formatted for the bank to read. Before you can copy payment information to a bank tape, you must specify the records that you want to process. You can include payment information from several payroll IDs in one bank tape.

JD Edwards EnterpriseOne software supports formatting for these Australian and New Zealand banks:

National Bank of New Zealand
Westpac Bank
Australia & New Zealand Banking Group
Bank of New Zealand
Generic Australian Bank

Note. Each time that you access this program, you must specify the version of the copy program that you want to use. To do so, right-click the menu name and select Prompt for Version. The system includes a specific version for each bank format. Alternatively, you can enter the program and version on the Select Payments for Copy to Bank form for each record that you copy.

You should also review the processing options for this program each time that you copy information to the bank tape, because the system uses the values in the processing options to ensure that the tape is created using the correct format and data.

Forms Used to Create Payments

Form Name	FormID	Navigation	Usage
Work With Pay Cycle Workbench	W07210A	Payroll Workbench (G07BUSP11), Pay Cycle Workbench	Select a payroll ID.
Print Payments	W75A0016A	On the Work With Pay Cycle Workbench form, select a payroll ID for which pre-payroll has already been processed, and then select Payments, Print Payments from the Row menu.	Create advice slips. Create the Automatic Deposit file.
Select Payments for Copy to Bank	W75A0006E	Australia/New Zealand Inquiries (G07BUSP16), Copy Payroll Direct Credit Pymts to Bank	Select records to copy to the bank tape.

Creating Advice Slips

Access the Print Payments form.

The standard advice slip is designed to print on an A4 sheet. The advice slip includes leave balance information that is derived using the Fiscal and Anniversary Year History table (F06147).

Payment Advice	Select to print advice slips for cash payments and automatic deposits.
Beginning Advice Number	Enter the beginning or next available number of the forms on which employees' payment advice is printed. The system does not check for duplicate advice numbers because you might be using multiple bank accounts. You must track advice numbers manually.
Payment Advice Message	Enter a text message here that will print on employees' payment advice slips.

Setting Processing Options for Generic Payment Advice for Australia and New Zealand (R75A0013)

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

Print Options

These processing options enable you to specify the information that the system includes on the payment advice.

1. Print employee mailing address information	Specify whether to print the employee mailing address on the payment advice. Values are: Y: Print. N: Do not print.
2. Enter benefit type 'V' to print available vacation balance	Specify whether to print the available vacation balance on the payment advice. Values are: V: Print. Blank: Do not print.
3. Enter '1' to include accruals to the vacation balance	Specify whether to include accruals to available balance on the payment advice. Values are: 1: Include. Blank: Do not include.
4. Enter benefit type 'R' to print available RDO balance (rostered days off)	Specify whether to print the available RDO balance on the payment advice. Values are: R: Print. Blank: Do not print.
5. Enter '1' to include accruals to the RDO balance	Specify whether to include accruals to available RDO balance on the payment advice. Values are: 1: Include. Blank: Do not include.
6. Enter benefit type 'L' to print available long service leave (LSL) balance (long service leave)	Specify whether to print the available LSL balance on the payment advice. Values are: L: Print. Blank: Do not print.
7. Enter '1 to include accruals to the long service leave (LSL) balance	Specify whether to include accruals to the available LSL balance on the payment advice. Values are: 1: Include. Blank: Do not include.
8. Enter benefit type 'S' to print available sick leave balance	Specify whether to print the available sick balance on the payment advice. Values are: S: Print. Blank: Do not print.
9. Enter '1' to include accruals to the sick balance.	Specify whether to include accruals to available sick balance on the payment advice. Values are: 1: Include. Blank: Do not include.
10. Enter benefit type 'H' to print available holiday balance	Specify whether to print the available holiday balance on the payment advice. Values are: H: Print. Blank: Do not print.
11. Enter '1' to include accruals to the holiday balance	Specify whether to include accruals to the available holiday balance on the payment advice. Values are: 1: Include. Blank: Do not include.
12. Enter benefit type 'O' to print other available balances	Specify whether to print other balances on the payment advice. Values are: 0: Print. Blank: Do not print.
13. Enter '1' to include accruals to other balances	Specify whether to include accruals to the available other balances on the payment advice. Values are: 1: Include. Blank: Do not include.

Selection

This processing option enables you to specify the table from which the system retrieves benefit balances, accrual balances, or both.

1. History Source File

Specify the table from which to retrieve benefit balances, accrual balances, or both. Values are:

1: Use the Fiscal and Anniversary Year History table.

0 or Blank: Use the Employee Transaction History Summary table (F06146) or the Calendar Month DBA Summary History File table (F06145).

2. Superannuation Details Source File

Specify the table from which the system retrieves superannuation data. The system prints this data on the payment advice to notify the employee of the employer-paid and employee-paid contributions that are made to each superannuation fund. The table that you specify depends on the method that you use to create superannuation payments. If you set up fund allocation information and automatically create superannuation payments during the payroll cycle, enter 0 (zero) in this processing option to retrieve data from the F0709 table. If you manually enter superannuation payments, enter 1 in this processing option to retrieve data from the F75A0301 table.

Creating the Automatic Deposit File

Access the Print Payments form.

On Print Payment, select the Auto Deposit File option. This option is disabled if no employees in the payroll cycle have automatic deposit instructions.

Copying Auto Deposit Information to a Bank Tape

To copy auto deposit information to a bank tape:

Access the Select Payments for Copy to Bank form, and click Find.
Select the records for which you want to copy payment information, and select Select for Copy from the Row menu.

When you select a record to copy, the system enters Y in the Select for Copy field. The system processes all records that have Y in the Select for Copy field. To deselect a record, select the record and then click Select for Copy from the Row menu.
Click OK.
From the Australia/New Zealand Inquiries menu, select Copy Payroll Direct Credit Payments to Bank again, and then select Save to Bank File from the Form menu.

The system displays a warning message if you select records that have already been processed.
If you want to recopy the records, click Yes.

Processed records contain values in these fields:
- Total Amount Processed
- Program ID for Copy
- User ID
- Workstation
- Date Copied

Review the information on the Parameters - Copy to Bank form, make any corrections that are necessary, and then click OK.

Note. The values that are displayed on this form are populated using the values that you enter in the processing options. If you want to change any of the values in these fields for this processing run only, you can manually change the value in the field. However, the next time that you run this process, the fields will be populated using the values in the processing options, and the changes will be lost. If you want to change these values so that the new value is displayed the next time that you run this process, you must change the value in the processing options.

Program ID for Copy	Review this field to determine whether the payments were previously copied to a bank tape. During the copy process, the system populates this field with the program ID that was used to copy the payments to the tape. If you try and recopy payments that have already been copied, the system displays a warning.
Date Copied	Review this field to determine whether the payments have been copied to a bank tape. During the copy process, the system populates this field with the system date. If you try and recopy payments that have already been copied, the system displays a warning.
Payment Date	Enter the date on which the funds are to be deposited into employees' bank accounts.
Company Short Name	Review this field to verify that the correct company name appears on the bank tape. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the company short name, you must update the value in the processing options.
Company Registration #(company registration number)	Review this field to verify that the correct registration number appears on the bank tape. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the company registration number, you must update the value in the processing options. Typically, company registration numbers are supplied by the banking institution.
Payment Description	Enter a user-defined description of the payments. For example, enter June Payroll to specify that the payments on the tape are associated with payroll processing for June. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the payment description, you must update the value in the processing options.
Write Company Debit Record?	Select this option if you want to create a debit record on the bank tape. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the debit record option, you must update the value in the processing options.
Application Name for Copy	Review this field to verify that the correct copy program is used to create the bank tape. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the copy application, you must update the value in the processing options.
Target File Name	Review this field to verify that the name of the target file is correct. The system populates this field with the value that is specified in the processing options of the Copy Payroll Direct Credit Pymts to Bank program (P75A0006). If you change the value in this field, the new value is used during this processing run only. To permanently change the target file name, you must update the value in the processing options. Contact the system administrator for information about creating the target file.
Code, Reference, and Particulars	Enter user-defined information.

Setting Processing Options for Copy Payroll Direct Credit Pymts to Bank (P75A0006)

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

Company Details

1. Company Short Name (20 chars)	Specify a short name for the company.
2. Bank Account to be Debited	Specify the bank account to be debited.
3. Payment Description	Specify a payment description.
4. Company Registration #	Specify a company registration number.
5. Write Company Debit Record	Specify whether the system writes a company debit record.

File Copy/Report

6. Application name for Copy	Specify an application name for copy.
7. Version ID for Copy	Specify a version ID for copy.
8. Target File Name (60 chars)	Specify a target file name. This field is limited to 60 characters.
9. Report Type (Summary/Detail)	Specify whether the system displays a summary or detail type report.

Constants

10. Code	Specify the constants code.
11. Particulars	Specify the constants particulars.
12. Reference	Specify the constants reference.

Paying an Employee for a Partial Pay Period

This section provides an overview of partial pay-period payments and discusses how to pay an employee for a partial pay period.

Understanding Partial Pay-Period Payments

An employee's first or last employment period with the organization will likely not be a full pay period. For example, an employee might have commenced work in the middle of a pay period or have been terminated two days after a pay period had started. You must pay the employee for the portion of the pay period that was worked and tax the employee's earnings accordingly.

When you enter regular timecards and process them through a payroll cycle, the system calculates the amount of pay that the employee receives during that payroll cycle, and then calculates the amount of tax to be withheld from the employee's earnings. Therefore, if you were to enter timecards for a partial pay period, but process them through a regular payroll cycle, the system would treat the amount of pay as if it were earnings for a full pay period. Without taking into account the fact that the employee did not work a full pay period, the system would under-withhold taxes from the employee's earnings.

To ensure that employees who work partial pay periods are taxed correctly, you must create interim payments to process earnings for partial pay periods. On the Interim Entry form, you can enter a value in the Tax Factor field that represents the amount of time that the employee worked during the pay period. The values for this field are stored in UDC 75/TO.

For example, if an employee works three of the twelve days in the pay period, you can enter a code in the Tax Factor field that represents .25. The system uses this value to correctly annualize the employee's earnings and to correctly calculate the amount of payroll tax to be withheld.

Similarly, you can enter a value in the DBA Factor field on the Interim Entry form. The value in this field is used to prorate the DBA calculations for the portion of the pay period during which the employee works. For example, if an employee works three of the twelve days in the pay period, you can enter a code in the DBA Factor field that represents .25. The system uses this value to calculate DBA amounts at 25 percent of what they would normally be. The values for this field are also stored in UDC 07/DO.

Note. Values that you enter in the Tax Factor field or the DBA Factor field represent the portion of the pay period for which you are paying the employee, not the actual numeric value. The system uses the value that is stored in the second description column of the UDC table to calculate the tax or DBA amounts for the interim payment.

For example, you might set up code A in UDC 75/TO, name this code Half, and enter .50 in the second description column for that code. When you want to pay an employee for half of a pay period, you enter A in the Tax Factor field, not .50. The system uses .50 to prorate the employee's taxes for the period.

Paying an Employee for a Partial Pay Period

To pay an employee for a partial pay period:

Select an interim payroll ID on Work With Interims Workbench (G07BUSP11) and then select Add Interim from the Row menu.
Complete the Tax Factor and DBA Factor fields with the value that corresponds to the amount of time that the interim payment covers.
Complete the steps for entering an interim payment.