Prepayments
These processing options enable you to specify how the program processes prepayments. Use prepayments to pay for goods or services before you receive an invoice.
- 1. G/L Offset Account
Enter the code for the general ledger offset account that the system uses to create prepayment pay items. You must enter a value to allow automatic creation of prepayment pay items. If you leave this processing option blank (default), the system uses the Standard Voucher Entry program.
Use this processing option to set up AAIs (AAI item PCxxxx) to predefine classes of automatic offset accounts for accounts.
For example, you can assign general ledger offsets as follows:
Blank or 4110 - Trade Accounts Payable.
RETN or 4120 - Retainage Payable.
OTHR or 4230 - Other Accounts Payable (see accounts payable class code - APC).
PREP or 4111 - Prepayment A/P Trade Account.
- 2. G/L Distribution Account
Specify the general ledger distribution account that the system uses for creating prepayment pay items.
You can use one of these formats for account numbers:
Structured account (business unit.object.subsidiary).
25-digit unstructured number.
8-digit short account ID number.
Speed code.
The first character of the account indicates the format of the account number.
You define the account format in the General Accounting Constants program (P000909).
Use this processing option only if you enter a value in the G/L Offset Account processing option.
- 3. Pay Status Code
Enter the default pay status code for prepayments. The pay status code is a user-defined code (UDC) (00/PS) that indicates the current payment status of a voucher. Values are:
P: The voucher is paid in full.
A: The voucher is approved for payment, but not yet paid. This applies to vouchers and automatic cash applications.
H: The voucher is on hold pending approval.
R: Retainage.
%: Withholding applies to the voucher.
?: Other codes. All other codes indicate reasons that the payment is being withheld.
The JD Edwards EnterpriseOne Accounts Payable system does not print payments for any codes other than the codes provided in this valid codes list.
Use this processing option only if you enter a value in the G/L Offset Account processing option.
- 4. Number of Days
Enter the number of days to add to the due date of the negative prepayment pay items.
- 5. Tax Area
Specify whether to display the Prepayment Tax form for prepayments. You use the Prepayment Tax form to assign tax codes to negative pay items that are different from the tax codes for the corresponding positive pay items. This is necessary, for example, when tax laws treat positive pay items and negative pay items differently. Otherwise, the system automatically generates a negative pay item for each positive pay item, assigning each negative pay item the same tax area code and tax explanation code as its corresponding positive pay item.
If you specify a tax area code and tax explanation code on the Prepayment Tax form, the new codes appear on all negative pay items, overriding the original tax area codes and tax explanation codes on the positive pay items. For example, if there are several positive pay items, each of which specify a different tax area code and tax explanation code, but you specify a particular tax area code and tax explanation code on the Prepayment Tax form, the system assigns the tax area code and tax explanation code you specify on the Prepayment Tax form to all negative pay items. Values are:
Blank: Do not display the Prepayment Tax form.
1: Display the Prepayment Tax form.
Use this processing option only if you enter a value in the G/L Offset Account processing option.
- 6. Prepayment Tax Area Code
Enter a default code that identifies a tax or geographic area that has common tax rates and tax distribution. The system uses this code to properly calculate the tax amount. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province), and their rates. To be valid, a code must be set up in the F4008 table.
Typically, U.S. sales and use taxes require multiple tax authorities per tax rate/area, whereas value-added tax (VAT) requires only one tax.
Use this processing option only if you enter 1 in the Tax Area processing option.
- 7. Prepayment Tax Explanation Code
Specify a default tax explanation code for transactions with a certain supplier. This tax explanation code is a UDC (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts.
Use this processing option only if you enter 1 in the Tax Area processing option.