Draft Bank Reconciliation and Approval
You perform draft reconciliation and approval prior to the bank paying the draft. If exceptions exist, the bank does not pay the draft until you resolve the exception. The bank reconciliation process occurs after the bank pays the supplier and issues you a bank statement. When you receive your bank statements, reconciling draft payments is no different from reconciling any other payment type within PeopleSoft Payables. During bank reconciliation, you reconcile the payment information with the actual bank remittance.
If you have arranged with your bank to receive an electronic bank file containing the details relating to scheduled draft payments, you can use the Draft Recon and Approval (draft reconciliation and approval) component (PYMNT_APPR_RECON) to review and approve those draft payments that are coming due. If your bank does not send you a bank file containing draft details, approve your drafts manually. When the draft is due, review it on the Draft Approval page and manually change the draft status to Approved by selecting the Approve check box.
Automatic draft reconciliation and approval occurs when your bank transmits an electronic bank file to you that contains the draft detail. You import the bank file by selecting The Draft Reconciliation and Approval process performs matching against the bank file by selecting each draft payment. It then updates the status for all accepted drafts with the Approved status so that the Payment Posting process can generate accounting entries. The Draft Reconciliation and Approval process automatically matches drafts with the following equivalent parameters:
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The draft number on the payment in PeopleSoft Payables must exactly match the draft number in the bank file.
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The due date in PeopleSoft Payables can be less than or equal to the due date in the bank file.
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The amount of the payment in PeopleSoft Payables must exactly match the draft amount in the bank file.
The Matching Application Engine process (AP_MATCH) populates the Draft Reconciliation page with draft data, and it selects the drafts that do not match, citing a reason code. If the draft number and amount match, and the due date is later or equal to the due date in PeopleSoft Payables, then the draft is marked as Approved.
Note:
The system requires a reject code for drafts that are not matched or that are rejected.
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