Prepayments

These processing options specify how the program processes prepayments. Use prepayments to pay for goods or services before you receive an invoice.

1. G/L Offset Account

Specify the set up of AAIs (item PCxxxx) to predefine classes of automatic offset accounts for accounts.

For example, you can assign general ledger offsets as:

Blank: Trade Accounts Payable

4110: Trade Accounts Payable

RETN: Retainage Payable

4120: Retainage Payable

OTHR: Other Accounts Payable

4230: Other Accounts Payable

PREP: Prepayment A/P Trade Account

4111: Prepayment A/P Trade 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 enable automatic creation of prepayment pay items. If you leave this processing option blank (default), the system uses the Standard Voucher Entry program.

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).

Note: Use this processing option only if you enter a value in the General Ledger Offset Account processing option.

3. Pay Status Code

Specify the default pay status code for prepayments.

The pay status code is a UDC (00/PS) that indicates the current payment status of a voucher. Valid codes 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 payment is being withheld.

Note: The JD Edwards EnterpriseOne Accounts Payable system does not print payments for any codes other than the codes provided in this valid codes list.

Note: Use this processing option only if you enter a value in the general ledger Offset Account processing option.

4. Number of Days

Specify the number of days to add to the due date of the negative prepayment pay items.

5. Tax Area

Specify whether the program displays 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 several positive pay items exist, 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 that you specify on the Prepayment Tax form to all negative pay items. Values are:

Blank: Do not display

1: Display

Note: Use this processing option only if you enter a value in the general ledger Offset Account processing option.

6. Prepayment Tax Area Code

Specify 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 Tax Rate/Area table (F4008).

Typically, U.S. sales and use taxes require multiple tax authorities per tax rate/area, whereas VAT requires only one tax.

Note: Use this processing option only if you enter 1 for 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.

Note: Use this processing option only if you enter 1 for the Tax Area processing option.