This chapter provides an overview of payments and deposits, lists prerequisites, and discusses how to:
Enter regular deposits.
Enter express deposits.
Create cash control accounting entries.
Journal payments directly to the general ledger.
Reconcile payments on a bank statement.
This section provides an overview of payments and deposits and discusses:
Bilateral netting
Payment status
In PeopleSoft Receivables, a deposit consists of all payments that you are processing or that the bank processes. You can apply a payment to multiple items for a single customer or to multiple items for different customers, even across business units.
You can enter payments into PeopleSoft Receivables using these methods:
Depending on your business, you can use one or more of these methods. The method of payment entry that you use does not limit your cash application options. After you enter payments, you can apply them to items by using either a payment worksheet or the Payment Predictor Application Engine process (ARPREDCT), which automatically applies payments. After you apply the payments, run the Receivable Update Application Engine process (ARUPDATE) to post the payments, create accounting entries, and update the customers' balances.
You journal cash to the general ledger by using direct journaling or the cash control accounting method.
Direct journaling bypasses payment application and sends cash directly to the general ledger—a method suited to payments that do not pay accounts receivable items.
The cash control accounting method journals cash to a control account upon receipt or when reconciled on a bank statement, depending on the cash control methods used.
If you do not use cash control, the system updates the cash account after you apply the payment.
See Also
Journaling Payments Directly to the General Ledger
Creating Cash Control Accounting Entries
Receiving Payments Electronically
Netting deposits are the result of a net of payable and receivable transactions. If your organization uses both PeopleSoft Payables and PeopleSoft Receivables, you can offset open items in PeopleSoft Receivables with open vouchers in PeopleSoft Payables by using bilateral netting. This function is useful when some of your customers are also vendors from whom you purchase goods or services.
You need to set up a contractual arrangement with your trading partners who want to participate in the netting process. You specify which vendor IDs and customer IDs participate in each netting selection and the system nets the open vouchers and items for those customers and vendors. You also specify rules for selecting the vouchers and items and for the order in which the system matches the items. For example, you can specify that you want the process to match the smallest items or largest items first.
Note. If you do not want to include an item in the netting process, deselect the Available for Netting check box on the View/Update Item Details - Detail 1 page.
The netting process uses a netting bank account, which is a virtual bank, for the exchange of funds. No exchange of actual funds occurs, but the process creates a deposit that uses this bank account.
In some cases, when you net transactions, the total of the receivable items and the payable vouchers is not equal. If the receivables are greater than the payables, the process selects the items to net based on the netting rules and then partially nets one item. For example, suppose that you have two items in a netting selection: one for 100.00 and one for 50.00. You have two vouchers in a netting selection: one for 75.00 and one for 50.00. The total of the vouchers is 125.00 and the total of the items is 150.00. Your netting rules specify that you net the largest item first. So the process would net both vouchers, the 100.00 item, and 25.00 of the second item.
When you close the netting selection using Pay Cycle Manager, the system creates a deposit with one payment for the total amount of the net. In this example, the deposit would be for 125.00. The deposit uses the netting reference ID for the payment ID. The closing process creates a payment worksheet for the deposit and sets its posting status to Batch Standard.
Warning! If you change the item selections on the payment worksheet, the accounting entries for the net will be out of balance.
The closing process changes the due date and payment method for all of the items in the netting selection that were not paid (including the item that the net partially paid) to the same due date and payment method based on the PeopleSoft Receivables receipt settlement instructions. It also assigns the netting reference ID to each item to facilitate payment application.
If the payables are greater than the receivables, the process is essentially the same, except that all items in the netting selection are paid in full by the netting deposit.
See Also
A payment's status changes as the payment moves through the system. The status determines which payment information you can change and which menu options are available to work with the payment.
This table lists payment status and provides a description for each status:
Payment Status |
Description |
Unidentified |
A payment was entered through a regular or express deposit or electronically by lockbox, EDI, bank statement, or a cash drawer receipt. A payment ID was entered but no customer or payment reference information was provided. You can change all payment information. |
Identified |
Payment reference information or a customer identifier was provided upon entry. This occurs for regular deposits on the Regular Deposit - Payments page or on the Worksheet Selection page. The system identifies electronic payments by magnetic ink character recognition (MICR) ID, a customer ID, or any of the payment references. If you delete a worksheet, the payment status reverts to Identified. |
Identified - Express |
Item or payment reference information was provided on the Express Deposit - Payments page. The payment is linked to an item or items, but not set to post. You can change all payment information. |
Directly Journalled |
The payment was entered in a regular deposit and marked for direct journaling. The status changes when you mark accounting entries complete after entering the user-defined line on the Accounting Entries page. |
Worksheet |
The payment has a saved worksheet that is not set to post. If any payment in a deposit has this status, you cannot change any deposit information, payment amounts, dates, or IDs. If accounting entries have not been created, you can change identifying information for the payment. |
Applied |
The payment has been applied, and either accounting entries were created online or the payment is set to post on the Worksheet Action page. If any payment in a deposit has this status, you cannot change any deposit or payment information. |
Complete |
The Receivable Update process has successfully posted the payment. After a payment has been marked Complete, you can only inquire on it. To change it, you must unpost the payment group. |
Before you enter payments, you must:
Select a cash control method for each business unit.
Set up the bank accounts for depositing payments.
Define group types for payments.
Define deposit types.
Set up qualifiers for payment reference information.
See Also
Defining the Accounting Options 2 Page
Setting Up Group Types and Group Origins
Defining Additional Processing Options
Defining External Account Information
This section provides an overview of regular deposits and discusses how to:
Enter regular deposit totals.
Enter regular deposit payment information.
Enter payment details for items.
Correct balancing errors.
Delete a deposit.
Use a regular deposit when you have customer information but lack item IDs. After you create the deposit, you must apply the payments using the payment worksheet or the Payment Predictor process.
You can change deposit information until one of these events occurs:
A payment in the deposit is applied or has a saved worksheet.
Accounting entries for directly journaled payments have been completed.
The Journal Generator Application Engine process (FS_JGEN) has processed cash control accounting entries.
Page Name |
Definition Name |
Navigation |
Usage |
PAYMENT_DATA1 |
|
Enter regular deposit totals, including information and control totals for a new deposit. You can also delete a deposit. The Totals page is unavailable if the deposit has been reconciled with a bank statement. |
|
PAYMENT_DATA2 |
|
Enter details about each payment in a regular deposit. |
|
PAYMENT_REF_DETAIL |
Click the Detail References link on the Regular Deposit - Payments page. |
Enter the items to which you are applying the payment. Also, create deductions, pay or write off all or part of an item, and create on-account payments or prepayments. |
|
Regular Deposit Balancing - Action |
PAYMENT_DATA3 |
Accounts Receivable, Payments, Online Payments, Regular Deposit Balancing, Action |
Select an action to save the deposit or delete the deposit. |
DEPOSIT_STATUS |
Accounts Receivable, Payments, Review Payments, All Deposits, All Deposits |
View details about one specific deposit ID (including control totals and status) or scan all deposits, one at a time. |
|
DEPOSIT_INCOMPLETE |
Accounts Receivable, Payments, Review Payments, Incomplete Deposits, Incomplete Deposits |
View posted and unposted deposits that are not yet completely processed. You can see the payment amount for the deposit that is still in process, summarize out-of-balance deposits (only), or view the list of incomplete deposits by user. |
Access the Regular Deposit - Totals page (Accounts Receivable, Payments, Online Payments, Regular Deposit, Totals).
Access the Regular Deposit - Payments page (Accounts Receivable, Payments, Online Payments, Regular Deposit, Payments).
The more information that you can provide on this page, the easier it will be to work with the payment worksheet.
Payment Information
You cannot update payment information for a deposit that has been reconciled with a bank statement.
Customer Information
Customer information is optional. However, the more information that you can provide, the easier using the payment worksheet is.
Enter information that ties this payment to specific items. You can use part of the name plus a wildcard of % as long as you provide the beginning letters or numbers. For example, enter a purchase order (PO) number of 24% here and later use the Like Match option on the Worksheet Selection page. The worksheet will contain all items having PO numbers beginning with 24, but will not include a PO number of x24x.
Qual Code (qualifier code) |
Select the type of reference information to use to identify the items, such as document, purchase order, or bills of lading. |
Reference (reference value) and To Reference (to reference value) |
Enter a reference number to identify an item, or enter a range of reference numbers. To enter a range, select the Range of References check box in the Payment Information scroll area. The value in the To Reference Value field must always be greater than the value in the Reference field. Note. The references (#REFS) Payment Predictor algorithm group does not support a range of references. To use a range of references for a particular payment and have the Payment Predictor process apply that payment, create algorithms specifically for your environment or database platform. |
Detail References |
Click to open the Detail Reference Information page, where you create deductions, pay or write off all or part of an item, and create on-account payments or prepayments. This page functions like a worksheet; it enables you to list the items to which you are applying the payment and enter the appropriate entry type for each item. |
Add Conversation |
Click this link to access the Conversations page, where you can add a new conversation. The setID, Business Unit, and Customer ID fields are populated based on the selected customer. You can add new conversation entries by clicking the Add Conversation Entry button on the Conversation page. The Add Conversation link appears on the Regular Deposits - Payments page for a single active customer or multiple customers in a payment irrespective of status (active or inactive), whether conversations exist or do not exist. The Add Conversation link does notappear on this page for a single inactive customer. It also does not appear when the payment is defined as a direct journaled payment. |
View/Update Conversations |
Click this link to access the Conversations page, where you can view and update existing conversations for the customer. If there are multiple conversations for the customer, you can select the conversation you want to view or update on the View/Update Conversations search page. You can also add, delete, or edit existing conversation entries on the Conversations page. The View/Update Conversations link appears on this page for a single active customer with existing conversations, and for multiple customers in a payment, irrespective of status (active or inactive) and whether conversations exist or do not exist. The View/Update Conversations link does not appear on this page for a single active customer with no conversations or for a single inactive customer in a payment. It also does not appear when the payment is defined as a direct journaled payment. |
Access the Detail Reference Information page (click the Detail References link on the Regular Deposit - Payments page).
The Detail Reference Information page for a regular deposit is similar to the Detail Reference Information page for the payment worksheet.
See Also
A deposit is out of balance when the number of entered payments does not match the control number, or the total amount of entered payments does not equal the deposit control amount. You can see that a deposit is out of balance because the Not Balanced message appears on the regular deposit entry pages. Another indication of an out-of-balance deposit is that the Worksheet Selection page is unavailable when you try to build a worksheet for a payment in the deposit.
To correct errors on regular deposits:
Adjust regular deposit totals.
Adjust payment information.
Delete a deposit.
The pages that you use to correct regular deposit balancing errors are identical to those that you use to enter regular deposits. However, the navigation is different. You use the Regular Deposit Balancing component (BALANCING) to correct balancing errors.
The pages work the same as when you enter deposits and payments, but only out-of-balance deposits are available for you to select. When you use pages for balancing errors, you can change any of the information associated with a deposit or payment.
Access the Regular Deposit - Totals page (Accounts Receivable, Payments, Online Payments, Regular Deposit, Totals and click the Delete Deposit button).
This section provides an overview of express deposits and discusses how to:
Enter express deposit totals.
Enter and apply payments with express deposit.
Select an express deposit action.
Correct express deposit balancing errors.
If you have an item ID, use express deposit so that you can enter deposits and apply payments at the same time. You do not need customer information to use an express deposit.
If you do not have an item ID but have a customer ID, a reference number, an amount, or only a business unit, you must use a payment worksheet to apply the payment.
You can use express deposits to enter deposits, apply payments, and set payments to post as long as these conditions are met:
The item currency and the base currency of the payment must be the same.
You do not need to journal payments directly.
You need only limited handling of discounts.
You will post the deposit in a standard run of the Receivable Update process.
Page Name |
Definition Name |
Navigation |
Usage |
PAYMENT_EXPRESS1 |
|
Enter information and control totals for a new deposit. |
|
PAYMENT_EXPRESS2 |
|
Enter and apply payments with item IDs in a deposit after you enter the deposit control totals. |
|
PAYMENT_EXPRESS3 |
|
Post a deposit (provided that you entered and saved payments on the Express Deposit - Payments page), review accounting entries, create worksheets for incompletely applied payments, clear worksheets, or permanently delete the entire deposit so that you can start over. |
|
Express Deposit - Accounting Entries |
GROUP_ENTRY3 |
Click the Create/Edit button on the Express Deposit - Action page. |
Review and modify accounting entries for payments in an express deposit. |
Access the Express Deposit - Totals page (Accounts Receivable, Payments, Online Payments, Express Deposit, Totals).
This page is identical to the Regular Deposit - Totals page.
See Also
Entering Regular Deposit Totals
Access the Express Deposit - Payments page (Accounts Receivable, Payments, Online Payments, Express Deposit, Payments).
Deposit Balance |
Displays the deposit status. When the amount total and number of entered payments equals the control amount and count from the Express Deposit - Totals page, the status changes from No to Yes. |
Control Total Amt (control total amount) |
Displays the control totals entered on the Express Deposit - Totals page. |
Entered Total Amt (entered total amount) and Difference Amount |
Displays the amount of the payments that you have entered and the difference between the payments entered and the control totals. If the control and entered totals are not the same, you cannot apply any of the payments. Balancing these control totals is a necessary first step in payment application. |
Payment Information
You can only update payment information for deposits that have not been reconciled with a bank statement.
See Entering Regular Deposit Payment Information.
Item ID |
Enter the ID of the item that you want to pay. When you provide an item ID, the system displays the item's payment amount. You can override this amount to create a partial payment or overpayment. The system displays a value in the Cust (customer) field or the Unit field unless an item ID references more than one item. If the system finds more than one item for the item and item line that you entered, it supplies only the item ID. |
Discount |
Select for an earned discount. The check box is selected by default if the discount is earned. The check box is deselected if the discount is unearned. If you want to take an unearned discount, you must create a payment worksheet. |
Disc Avail (discount available) |
Displays the amount available for an earned discount. |
If you cannot completely apply a payment on this page, use a payment worksheet to apply prepayments, deductions, adjustments, on-account payments, and write-offs as needed.
Access the Express Deposit - Action page (Accounts Receivable, Payments, Online Payments, Express Deposit, Action).
Select a posting action for the payments.
Do Not Post |
The system disables this button by default. You can click this button only if you previously selected Batch Standard for payments. This option will reverse the posting status from Standard to No Action for payments that are either not journaled or not posted. |
Batch Standard |
. Click to set payments to Batch Standard posting status. The next time that a standard scheduled Receivable Update batch job runs, this payment will be processed. Be aware that this run may occur only once each day depending on how often your organization schedules standard jobs. Selecting this button:
|
Note. Express deposits are posted as individual payments rather than in a payment group. However, a payment group consisting of only one payment is used for a cash application.
Build |
Click to create one worksheet for every payment in the deposit. The system indicates the number of worksheets created. Note. Instead of using the Build button, you can use the worksheet menu options to create one worksheet at a time. Important! The system does not build payments without any identifying information into a worksheet. Carefully review these unidentified payments. |
Delete |
Click to delete the payment group that was created without deleting the entire deposit. If you accidentally select the wrong action, select Delete Worksheet on the Worksheet Action page to delete the worksheets, but retain the express deposit information that you entered. |
Create Entries |
Click to create accounting entries online for all applied payments in the deposit, as long as the deposit is in balance. The system accesses the Accounting Entries page where you can review and modify accounting entries. The payment status is set to Worksheet. You must return to the Action page to set the group to post. Typically, you let the Receivable Update process create accounting entries. You need to create accounting entries online only when you must review them immediately. |
A deposit is out of balance when either the number of entered payments does not match the control number or the total amount of entered payments does not equal the deposit control amount. You may recognize an out-of-balance deposit either by the Not Balanced message on the express deposit entry pages or because the Worksheet Selection page is not available when you try to build a worksheet for one of the payments in a deposit.
To correct errors on express deposits:
Adjust express deposit totals.
Adjust payment information.
Delete the deposit as needed.
The pages that you use to correct express deposit balancing errors are identical to the pages that you use to enter express deposits. However, you use a different navigation path to access the pages for balancing errors. You use the Express Deposit Balancing component (EXP_BALANCE).
The pages work the same as when you enter deposits and payments, but only out-of-balance deposits are available for you to select. When you use pages for balancing errors, you can change any of the information associated with a deposit or payment.
This section provides an overview of cash control accounting and discusses how to:
Run the Cash Control Application Engine process (AR_CSH_CNTL).
Review cash control accounting entries.
Cash control accounting ensures that the general ledger reflects cash as soon as you receive it or reconcile it on a bank statement; you do not have to apply the cash for it to appear in the general ledger.
You implement cash control accounting at the bank level. The PeopleSoft system provides two options for cash control accounting:
Standard cash clearing.
Use this option to create cash control accounting entries only.
Deposit in transit.
Use this option to create deposit-in-transit and cash control accounting entries if you reconcile your bank statements online.
The deposit-in-transit accounting entries record payments that are not deposited in your bank account and have not been reconciled on a bank statement.
To set up standard cash clearing for a bank account, select the Cash Clearing check box on the External Accounts page and enter the ChartField values for the Cash - AR and Dep - AR (cash control) account types.
Also, specify the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page. The options are:
Note. If you select None for the cash control method, the system always debits the Cash account and credits the Receivables account when you apply the payment and does not create cash control lines.
This table shows the accounting entries that the system generates for each event if the cash control method is Bank Reconciliation:
Event |
Debit |
Credit |
Payment entry |
Not Applicable |
Not Applicable |
Bank statement processing or cash control processing |
Cash |
Deposit - AR (cash control) |
Payment application |
Deposit - AR (cash control) |
Receivables |
If the Payment Loader or Bank Stmt Processing (bank statement processing) process did not create cash control accounting entries, you must run the Cash Control process to create them. You normally run this process if you have a duplicate or out-of-balance deposit or if you did not have a cash control account set up when you ran the Payment Loader or Bank Stmt Processing processes. If the cash control method for the deposit business unit is Bank Reconciliation, the Cash Control process processes only payments that have been reconciled.
This table shows the accounting entries that the system generates for each event if the cash control method is Payment Entry:
Event |
Debit |
Credit |
Payment entry |
Cash |
Deposit - AR (cash control) |
Cash control process run |
Not Applicable |
Not Applicable |
Payment application |
Deposit - AR (cash control) |
Receivables |
If the cash control method is Payment Entry, the system automatically creates cash control accounting entries when you save a deposit or receive payments electronically from a bank account designated for cash control. All payments except those earmarked to be directly journaled are affected. If you change deposit or payment information, the system updates the accounting entries to reflect your changes.
Deposits in Transit
To set up deposit-in-transit transactions for a bank account, select the Cash Clearing and Dep in Transit (deposit in transit) check boxes on the External Accounts page and enter the ChartField values for the Cash - AR, Dep - AR (cash control), and DIT - AR (deposit in transit) account types.
Also, select Bank Reconciliation for the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page.
The process flow to generate deposit-in-transit accounting entries is:
Enter payments online or electronically.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.
Apply the payment.
Post the payment.
This table shows the accounting entries that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:
Event |
Debit |
Credit |
Payment entry |
Deposit in Transit - AR |
Deposit - AR (cash control) |
Cash control processing |
Cash |
Deposit in Transit - AR |
Payment application |
Deposit - AR (cash control) |
Receivables |
If you set up deposits in transit for a bank account and select Bank Reconciliation for the cash control method for a deposit business unit, the system also generates additional accounting entries for direct journal payments.
The process flow for direct journal payments when you enable the deposit-in-transit option is:
Enter the payment using the Regular Deposit component.
Create the accounting entries for the direct journal payment.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.
This table shows the accounting entries for direct journal payments that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:
Event |
Debit |
Credit |
Create direct journal accounting entries |
Deposit in Transit - AR |
User-Defined Revenue |
Cash control processing |
Cash |
Deposit in Transit - AR |
See Also
Defining the Accounting Options 2 Page
Receiving Payments Electronically
Defining External Account Information
Receiving and Updating Bank Statements
Page Name |
Definition Name |
Navigation |
Usage |
CASHCNTL_REQUEST |
Accounts Receivable, Payments, Cash Control Entries, Create Accounting Entries, Cash Control |
Run the Cash Control process to create cash control accounting entries. |
|
CASH_CNTRL_DST |
Accounts Receivable, Payments, Cash Control Entries, Review Accounting Entries, Cash Control Payments |
Review cash control accounting entries. Note. If you need to delete the cash control accounting entries for a deposit, you must delete the entire deposit using the Regular Deposit component (PAYMENT_ENTRY) or Express Deposit component (PAYMENT_EXPRESS). |
Access the Cash Control page (Accounts Receivable, Payments, Cash Control Entries, Create Accounting Entries, Cash Control).
Deposit Unit |
Enter the business unit for the payments that you want to deposit. |
Deposit ID |
Enter a deposit ID to limit the processing to specific deposits. |
Payment Sequence |
Enter a payment sequence number to limit the processing to specific payments. |
If you want to include business units, deposit IDs, and payment sequence numbers that begin or end with the same characters or numbers, use the % wildcard. For example, if you enter 6%, the list includes all deposits that begin with 6, such as 6877 and 6789.
Access the Cash Control Payments page (Accounts Receivable, Payments, Cash Control Entries, Review Accounting Entries, Cash Control Payments).
Click the tabs to view more details.
CR Amt (credit amount) and DR Amt (debit amount) |
If the system displays the debits and credits separately, the Credit Amount and Debit Amount fields display the amounts in the base currency of the business unit. If you selected the Display Debit/Credit Amounts in Subsystems option on the User Preferences - Overall Preferences page, the debit amount or the credit amount and currency appear for each accounting line. Otherwise, the Line Amount field appears for each line. |
Note. If the system displays separate debits and credits, a negative amount indicates an unpost transaction. Otherwise, negative amounts indicate a credit to the account, and positive amounts indicate a debit to the account.
This section provides an overview of direct journal payments, lists common elements used in this section, and discusses how to:
Select payments for direct journaling.
Create or correct accounting entries for direct journal payments.
Review and modify accounting entries for direct journal payments.
See Also
Payments that do not correspond to items can bypass the cash application process. Such payments are often called miscellaneous cash receipts or non-AR cash. In the PeopleSoft system, they are referred to as directly journaled payments because you can create accounting entries for them without applying them to any item.
If you create a regular deposit and journal the cash directly to the general ledger and need to reverse the journal entry, you can enter a negative payment in the Regular Deposit component (PAYMENT_ENTRY) and then journal that payment to the general ledger.
|
Click the Budget Check button to run the Budget Processor Application Engine process (FS_BP). |
|
Click the Budget Check Options button to bypass a budget-checking error. |
|
Click the Document Sequencing button to enter document-sequencing information. |
Page Name |
Definition Name |
Navigation |
Usage |
Regular Deposit - Payments |
PAYMENT_DATA2 |
Accounts Receivable, Payments, Online Payments, Regular Deposit, Payments |
Provide detailed information for each payment in a regular deposit and flag payments for direct journaling. |
PAYMENT_MISC_DST |
Accounts Receivable, Payments, Direct Journal Payments, Create Accounting Entries, Accounting Entries |
Create or change accounting entries for payments that are to be journaled directly. If you use the Commitment Control option, use it to run the Budget Processor process. Note. You can view only accounting entries that are not marked as complete. |
|
PAYMENT_MISC_DST_I |
Accounts Receivable, Payments, Direct Journal Payments, Modify Accounting Entries, Directly Journalled Payments |
Review directly journaled payments that have been marked Complete. Also, change the Complete status to Incomplete. You can run the Budget Processor process to budget-check direct journal payments. |
|
KK_EXCPTN_OVER_SEC |
Click the Budget Check Options button on either the Accounting Entries page or the Directly Journalled Payments page. |
Bypass budget checking for the transaction. Also view details about a commitment control transaction, such as the source transaction type and the amount type for the journal. |
|
JRNL_GEN_REQUEST |
General Ledger, Journals, Subsystem Journals, Generate Journals, Journal Generator Request |
Initiate journal generator processing. |
Access the Regular Deposit - Payments page (Accounts Receivable, Payments, Online Payments, Regular Deposit, Payments).
Journal Directly |
Select to create direct journal payments only for the payment. |
Customer ID |
Enter a customer ID to associate the direct journal payment with a customer. If you enter a customer ID, you can inquire on the direct journal payment by using a customer ID. Note. This field is available only if you selected the Track Direct Journal Customer check box on the Installation Options - Receivables page. The payment does not update the customer balance. |
Access the Accounting Entries page (Accounts Receivable, Payments, Direct Journal Payments, Create Accounting Entries, Accounting Entries).
|
Click the Create button to create the cash line for a direct journal payment. |
|
Click the Delete button to delete journal lines. |
This section discusses how to:
Create accounting entries.
Budget-check the entries.
Resolve budget-checking errors.
Creating Accounting Entries
To create accounting entries:
Enter ChartField values for the revenue line.
Note. If you set up speed types for ChartFields, click the Speed Type button and select a speed type code. The system automatically supplies the General Ledger ChartField values defined by the speed type.
In the Line Amount field, enter the credit amount for the revenue account.
Note. If you are journaling a negative payment, enter a debit amount.
Click the Create button to create the line that records the cash.
The system supplies the ChartField values using either the AR - Cash or DIT - Cash ChartFields that you defined for the bank account on the External Accounts page. It uses the DIT - AR ChartFields only if you selected the Dep in Transit (deposit in transit) check box for the bank account.
Project ChartFields other than Project Id, such as Business Unit PC, Activity Id, and more, are inherited to the offsetting cash accounting line if the inheritance option for Project Id is set to Always Inherit. If the inheritance option for Project Id is set to Do Not Inherit, then these Project ChartFields will not be inherited.
The system calls the Centralized Inter/IntraUnit Application Engine process (IU_PROCESSOR) to create intraunit accounting entries if you enabled ChartField balancing for the ledger group and interunit accounting entries, and if you are journaling the cash to a different business unit than the deposit business unit.
Note. After you create the cash line, you cannot change the ChartField values or amounts. To change this information, click the Delete button. The system deletes the cash line and makes the revenue ChartField values available to edit.
(Optional) If you enabled the Entry Event feature, enter the Entry Event code used to generate supplemental accounting entries.
(Optional) If you enabled the Document-Sequencing feature for the PeopleSoft General Ledger business unit, click the Document Sequencing button for each line to enter document-sequencing information.
After you enter all of the accounting lines and they are in balance, select the Complete check box.
Verify the edit status on the ChartFields tab.
The status can be:
Not Edited |
You have not saved the entries. |
Errors |
You saved the entries, but the system did not create them because they are in error. |
Complete |
You created valid accounting entries. |
A single error message displays for a direct journal payment if at least one payment distribution line has a ChartField combo edit error. This message instructs the user to refer to the ChartField Combo Error tab for further details about the error.
The ChartField Combo Error tab displays in the Distribution Lines grid. This tab identifies the specific fields and combination group that was used to compare against the distribution line with the error. If there are no errors, this tab does not appear.
Correct the error and select the Complete check box again. If you receive a combination edit error, you must either change the ChartField combination or modify the combination edit rules. If you receive a ChartField configuration editing error message after you mark the entries complete, you must correct the error before you save the direct journal. If you receive a warning message, you can save the direct journal without making corrections.
Note. If you must change the accounting entries after you save them and before you run the Journal Generator process, deselect the Complete check box on the Directly Journalled Payments page. Then return to the Accounting Entries page to change the entries.
If you enabled the Commitment Control feature for PeopleSoft Receivables and for the business unit, run the Budget Processor process after the accounting entries are complete. The process checks the control budget entries, updates the revenue estimate budget, and creates the commitment control journal lines.
The direct journal payments cannot be budget checked until the accounting entries are marked complete and have not received a combo edit error. The Budget Check button on the this page does not display if a combo edit error occurs when the user selects the Complete check box. The Budget Check button is displayed if the entries are marked complete and there are no errors (combo edit errors, entries out of balance errors, and so on). Also, if you encounter a combo edit error and run the budget processor from the Budget Processor page for direct journals, the process does not pick up the transaction until the combo edit error has been corrected.
To budget-check the entries:
Click the Budget Check button to run the Budget Processor process.
The system displays a warning message if transactions passed budget checking but receive a warning status.
Note. You can also run the Budget Processor process for direct journal payments from the Directly Journalled Payments page or from the Budget Processor page.
When the Budget Processor process is complete, verify the budget status for the entire payment and also for each line on the Budget tab.
The status can be:
Error |
The entry failed to pass budget checking. |
Not Chk'd (not checked) |
The Budget Processor process has not processed the entry. |
Valid |
The entry passed budget checking and the process created the journal line in the ledger. |
Warning |
The Budget Processor process issued a warning, which indicates that the control budget did not have sufficient funds. However, it passed budget checking because the commitment control option for the control budget is set to Tracking w/ Budget (tracking with budget) or Tracking w/o Budget (tracking without budget) on the Control Budget Options page. The control budget might also be over the budget amount, but under the tolerance amount. This warning applies only to individual lines. |
The default budget date is the accounting date for the current transaction. You can change the budget date, but Oracle recommends that you do not.
Resolving Budget-Checking Errors
Transactions typically fail the budget-checking process because the amount of the source transactions exceeds the amount in the control budget. If this occurs, you have two options:
Increase the revenue estimate budget amount.
Flag the direct payment journal to bypass budget checking.
An entry could also fail because you provided a revenue account that is not in the revenue estimate budget.
To resolve budget-checking errors:
Do one of the following procedures:
To bypass budget checking for entries in error, click the Budget Check Options button to open the Commitment Control page.
Then select the Override Transaction check box and Save the page.
You must have authority to override budget checking.
If you entered an invalid revenue account, delete the accounting entries and enter them again using a different revenue account.
Run the Budget Processor process again.
Note. Be sure and Save the page before running the Budget Processor process again so that so that Journal Generator will pick up the direct journal.
See Also
Using Commitment Control Processing in PeopleSoft Receivables
Enabling Commitment Control for Specific Applications
Entering and Posting Commitment Control Budget Journals
Access the Directly Journalled Payments page (Accounts Receivable, Payments, Direct Journal Payments, Modify Accounting Entries, Directly Journalled Payments).
This page is similar to the Accounting Entries page.
If you have not run the Budget Processor process and you have enabled commitment control for PeopleSoft Receivables and the business unit, you can run it from this page and review the results.
If a budget entry fails because you provided a revenue account that is not in the revenue estimate budget, you need to delete the accounting entries and enter them again using a different revenue account.
See Also
Creating or Correcting Accounting Entries for Direct Journal Payments
When you receive a bank statement, you can reconcile payments by matching the amount of each payment or deposit received with the amount that was submitted to the bank. You can reconcile payments manually, or use the Bank Reconciliation Application Engine process (FSPRECON) to reconcile them.
The reconciliation rule that you use varies depending on the information that the bank provides. You should reconcile at the same level that the bank provides on the bank statement. If one payment always exists per deposit, the bank provides the deposit ID. In this case, use the PS_BNK_RCN_DEPOSIT rule. If multiple payments are in a deposit, the bank provides the payment ID. In this case, use the PS_BNK_RCN_PAYMENT rule.
If you have cash payments received through the Load Cash Drawer Receipts process (CDR_LOADPMT), you must use the PS_BNK_RCN_DEPOSIT rule because all cash payments are sent to PeopleSoft Receivables in one deposit and the payment-level detail is not available in the bank statements. In this case, you must set up separate bank accounts: one for cash deposits and one for other payment methods.
Important! If you have already applied the payment using the payment worksheet or the Payment Predictor process and run the Receivable Update process, use the PS_BNK_RCN_PAYMENT reconciliation rule.
See Also
Defining External Account Information