Example: Partial Payment Adjustments

You can use the Update Payment Information program (R04513) to automatically create adjustments in the TX (tax) ledger of the Account Ledger table (F0911) for any unpaid amounts. Alternatively, you can manually enter adjustments by using the Enter Payments Adjustments program (P04510).

Assume that in 2022 you enter a voucher for USD 1500. You pay USD 800 to the supplier. When you run Update Payment Information for 2023, the program updates the F0911 table as follows:

• Enters the payment number and date of the USD 800 payment that you applied to the voucher on the USD 1500 PV in the F0911 table.

• Creates a credit entry for the unpaid USD 700, dated in the current year. The program applies this credit against the USD 1500 PV in the F0911 table so that only USD 800 is reported on the 1099 form.

• Creates a debit entry for the unpaid USD 700, dated one year in the future, for the next year's 1099 processing. The program does not process this entry in 2022 because of the * in the Payment Number field and 2023 in the Reporting Year field.

  This table shows the entries:

  Reporting Year	Payment Number	Amount	Ledger
  2022	1050	1500	AA
  2022	1050	–700	TX
  2023	*	700	TX

In 2023, you pay USD 650 towards the same voucher. When you run the Update Payment Information program for 2024, it determines that you have an unresolved (outstanding) amount from the previous year's payment. The Update Payment Information program then performs these tasks:

• Enters the payment number and date of the USD 650 payment and applies it against the USD 700 debit entry that it made last year.

• Creates a credit entry for the unpaid USD 50, dated in the current year. The program applies this credit against the USD 700 debit entry so that only USD 650 is reported on the 1099 form.

• Creates a debit entry for the unpaid USD 50, dated one year in the future, for the next year's 1099 processing. The program does not process this entry in 2023 because of the * in the Payment Number field and 2024 in the Reporting Year field.

  Note: The Update Payment Information program updates the TX record for the year 2023 only if the processing option for Process Exception Items is set to 1. Otherwise, the record retains the *, which you must manually adjust by using the Enter Payment Adjustments program.

  This table shows the accumulated entries:

  Reporting Year	Payment Number	Amount	Ledger
  2023	1050	500	AA
  2023	1050	–200	TX
  2023	1220	200	TX
  2023	1220	–50	TX
  2024	*	50	TX

In 2024, you pay the remaining USD 50. When you run the Update Payment Information program for 2024, the program determines that you have an unresolved amount from the previous year's payment. The program enters the payment number and date of the USD 50 payment and applies it against the USD 50 debit entry that you made in 2023.

Note: The Update Payment Information program updates the TX record for the year 2023 only if the processing option for process exception items is set to 1. Otherwise, the record retains the *, which you must manually adjust by using the Enter Payment Adjustments program.

This table shows the accumulated entries:

Reporting Year	Amount	Payment Number	Ledger
2023	500	1050	AA
2023	–200	1050	TX
2023	200	1220	TX
2023	–50	1220	TX
2024	50	1385	TX