This chapter contains the topic:
From Accounts Receivable (G03), choose Manual Receipts Entry
From Manual Receipts Entry (G0312), choose Other Receipts Entry Methods
From Other Invoice & Receipts Entry Methods (G03111), choose an option under the Automatic Debiting heading
Businesses in the United Kingdom can automatically debit a customer's bank using electronic funds transfer (EFT). Transfers must adhere to the standards set by the BACS (Bank Automated Clearing System). Businesses can send transfer information to the bank via modem, tape, or diskette.
To process the automatic debit, the BACS processing date and the expiration date of the debit must be actual work days. In addition, it is common business practice to:
Send statement reports to the customers regarding the debit
Sequentially number each debit that is processed
You can use J.D. Edwards standard automatic debit process to meet the requirements of the United Kingdom. When you use the automatic debit process, the system:
Identifies those customers who have agreed to the automatic debit process
Selects the customers' invoices that are due
Validates the processing and expiration dates against a work day calendar
Assigns each debit a sequential number, based on the Accounts Receivable Next Auto Debit number in the Next Auto Debit Number file (F7460)
Generates debit information in the BACS format
Generates statement reports for applicable customers
Updates customers' accounts after collecting the appropriate funds
Set up the work day calendar. See Section 6.1, "Setting Up Workday Calendars for Financials."
On A/R Constants, specify Y in the Automatic Cash field. See Set Up A/R Constants in the JD Edwards World Accounts Receivable Guide.
On Customer Master Information, specify A (Automatic Debits, Accounts Receivable only) in the Payment Instrument field and Y in the Automatic Cash Algorithm field. See Entering Customers in the JD Edwards World Accounts Receivable Guide.
On Customer Master Information, verify the customer G/L bank account information. Your customers must have a bank account type D set up for automatic debits. See Setting Up Customer Bank Information in the JD Edwards World Accounts Receivable Guide.
On G/L Bank Account Information, verify that a Next Auto Debit Number is specified for the bank account to which the automatic debits will be credited. Setting Up Bank Account Information for A/R in the JD Edwards World Accounts Receivable Guide.
Verify that you have specified the Accounts Receivable Automatic Debit Number. See Section 15.1, "Working with Bank Account Information."
Load the appropriate media if you are automatically copying the debit information to diskette or tape. Alternately, you can contact the bank to acquire the software package they use to transfer files electronically and customize the Copy to Tape program (P03579) to transfer the information to a PC document. Then you can use the bank's software to communicate directly with the bank.
Run the Automatic Debiting program to process automatic debits. You can use proof or final mode to select accounts receivable invoices that are subject to payment by direct debiting.
Note:
When you run the Automatic Debiting program to process UK BACS, you must specify program P03575BT in processing option 10. The program generates a bank file that adheres to the BACS banking standards for automatic debits.When you run the program in proof mode, the system:
Verifies that you have specified an existing work day calendar in the processing options. If not, the system issues a warning message stating that no calendar was found.
Verifies that you have entered a valid BACS processing date in the processing options. The system issues a warning message to indicate that the day you entered is not a work day.
Prints a report that identifies the invoices that will be included in the automatic debit process.
Does not update the A/R Ledger file.
When you run the program in final mode, the system:
Validates the BACS processing date against the work day calendar that you specify in the processing options. If the date is not a work day, the system searches for a valid work day based on the work day calendar that you specify in the processing options, incrementing the date by one day until it reaches the next valid work day.
Numbers each debit, based on the bank information for the invoice
Updates the selected invoices as paid
Creates a batch to post receipts to the Account Ledger file (F0911)
Prints statements of the invoices being debited for the customer
Prints a final report of processed invoices
Creates a file (F03575BT) in the accepted BACS format for the United Kingdom
Caution:
If you do not setup and specify a work day calendar, the system uses your BACS processing date without performing the necessary validation.After you process automatic debits in final mode, you can review and approve them before posting them to the general ledger.