Handling Advances for Federal Agencies
PeopleSoft Payables uses prepayment functionality to handle payment advances to employees. U.S. Federal agencies have one specific advance handling requirement which is not otherwise required for prepayments, which is that advances must be tied to existing purchase orders. To that end, when Enable Federal Payments is selected on the Installation Options - Payables page, the Advance Payment Option group box appears on the Invoice Information page for the prepayment voucher style. When you select Use Advance Payment in that group box, the system verifies that there is a purchase order associated with the prepayment.
To pay and record expenses against an advance:
Create a purchase order for the advance.
Create a prepayment voucher.
Enter a voucher style of Prepaid Voucher on the add/search page when accessing the Voucher component.
Select the Use Advance Payment option on the Invoice Information page, and enter the associated purchase order.
Complete the voucher.
Pay the voucher, either through the Pay Cycle process or manually.
Record expenses against the advance by creating a regular voucher in the Voucher component and applying it to the prepayment.
See Applying Final Invoices to Prepayments.
If the expense is more than the advance, the Voucher Posting process automatically schedules a payment for the difference.
For example, if the advance is for 1000 USD and you enter an expense voucher against the advance for 1300 USD, the Voucher Posting process schedules a payment of 300 USD to the employee.
If the expense is less than the advance, then enter two distribution lines on the expense voucher, one for the expense, the other a credit to cash.
For example, if the advance is for 1000 USD and the expense voucher is for 800 USD, enter an expense distribution of 800 USD and a credit to cash distribution of 200 USD.
Enter and collect the receivable using your receivables processes.