Making Payments on Service Purchase Items

Use the Payment Worksheet Application page (PAYMENT_WS_IC) to apply payments to selected items.

Navigation:

Accounts Receivable > Payments > Apply Payments > Update Worksheet > Payment Worksheet Application

See Applying Payments Using Payment Worksheets.

Most of the open items for this customer will have the Service Purchase ID field populated because most of these items will be created from Pension messages. However, the customer can have On Accounts/Prepayments items or items that originated from the Overdue Charge process. In that case, the SP_ID field will be empty for those items.

One customer may have more than one service purchase transaction at the same time, resulting in different SP_IDs. Credits created for a specific SP_ID should not be matched to debit items with a different SP_ID. However, you can apply one payment toward two debit items with different SP_IDs.

After the user builds the Payment Worksheet and all the lines are retrieved, the system populates Service Purchase ID, Tax Type, and Item Message Code for each item contained in the Payment Worksheet.

When the user posts the Payment Worksheet with service purchase items selected, Receivables Update sends a message through Integration Broker (IB) to Pension Administration communicating that the payment was successfully made and the amount paid. One message is sent for each service purchase item paid.

The payment can be unposted later. In this case, a Reversal of Payment message will be sent to Pension Administration when Receivables Update is run for this unpost transaction.

When the payment of the last item is complete, Receivables Update will send a Goal Balance Attained (GBA) message in addition to the regular PAY message. The GBA message indicates that the employee has paid all the installments of the Service Purchase transaction. It does not include any Overdue Charge Item that might have been created for this customer.

Even after GBA is reached, you can still unpost one of the payments. But when the open item is paid again, a new GBA will be sent to Pension Administration together with the PAY message.

You can use any of the transactions available in the Payment Worksheet for Service Purchase items, but keep in mind the following:

• New credits and debits created as result of WS-06 (Adjust Remaining Overpayment) and WS-07 (Adjust Remaining Underpayment) will not have an SP_ID value and will not be part of the Service Purchase transaction. Therefore, subsequent activities for these new credits and debits will not generate IB messages to send to Pension Administration.

• Write-off actions for SP Items will not be communicated to Pension Administration, even though write-offs are allowed for SP Items. The Receivables user thus takes the responsibility for possible out-of-synch scenarios as a result of write-offs. However, used with discretion, write-offs can potentially be a good tool to solve out-of-synch scenarios in which HCM makes manual adjustments on the Pension side.

Partial payments are allowed. When an item is partially paid, the action creates a new line with the same Item ID as in the worksheet. Because the new line has the same Item ID, it is automatically populated with the same Tax Type and SP_ID as shown in the original line. The PAY message will always communicate the amount that has been paid.

Use the Credit Card Worksheet Application page (PAYMENT_WS_IC) to select items for payment by credit card.

Navigation:

Accounts Receivable > Credit Cards > Update Credit Card Worksheet > Credit Card Worksheet Application

See Creating Credit Card Payments Using the Credit Card Worksheet.

The same information for paying service purchase items in a Payment Worksheet also applies to payments made using a Credit Card Worksheet.

See Paying Service Purchase Items in a Payment Worksheet.

Use the Create Direct Debits page (DD_REQUEST) to run the Create Direct Debits process.

Navigation:

Accounts Receivable > Direct Debits > Administer Direct Debits > Create Direct Debits > Create Direct Debits

See Creating and Working with Direct Debits.

Credit for Cancellation and Credit for Refund will not be added to the DD Worksheet. They should be handled in a Maintenance Worksheet.

Then use the Update Direct Debits – Worksheet page (DD_WORKLIST) to approve, hold, or reject direct debits.

Navigation:

Accounts Receivable > Direct Debits > Administer Direct Debits > Update Direct Debits > Worksheet

See Remitting Direct Debits to the Bank.

Worksheet lines will display Tax Type and Service Purchase ID.

As soon as items on the Direct Debit Worksheet are remitted to the bank, the items are closed. However, if an error is generated, the direct debit item is canceled, the item is reopened, and Pension Administration receives a REV (Reversal of Payment) message.

The following summary outlines the transactions created by DD and the corresponding message that is sent to HCM:

• When items are remitted to Bank, Receivables Update will send PAY messages to Pension Administration during posting. This occurs for the following Entry Use IDs:

  DD-01 – Direct Debit Remit with Cash Clearing

  DD-02 – Direct Debit Remit without Cash Clearing

• If bank errors occur and direct debits are canceled, Receivables Update will send REV (Reversal of Payment) messages to Pension Administration during posting. This occurs for the following Entry Use IDs:

  • DD-03 - Direct Debit Cancel with Cash Clearing

  • DD-04 - Direct Debit Cancel without Cash Clearing

  • DD-07 - Direct Debit Cancel - Clearing (with VAT)

  • DD-08 - Direct Debit Cancel - Cash (with VAT)

The following Entry Use IDs should not produce any messages to send to Pension Administration:

• DD-05 - Direct Debit Cash Clearing - method = B (bank recon)

• DD-06 - Direct Debit Cash Clearing - method = D (due date)

• DD-09 - VAT at Due Date