Payment Cancellation

PeopleSoft Payables provides two methods for cancelling payments:

  1. The Cancel Payment component (PYMNT_CANCEL) enables you to cancel individual payment.

  2. The Mass Payment Cancellation component (AP_PMT_MASS_CNL) enables you to cancel multiple payments.

    The Mass Payment Cancellation component provides you the ability to cancel a selected population of payments. For example, an interface from payroll may have been processed in error and all payments for that source may need to be cancelled. You can also cancel an entire pay cycle or single or multiple ranges of payment references within a pay cycle.

With PeopleSoft Payables, you can record:

  • Stop payments: Checks that you have already sent out for which you have asked the bank to stop the payment.

  • Void payments: Payments that you decide to cancel before you send them out.

    The system automatically reconciles a voided payment.

PeopleSoft Payables backs out all payment information for the vouchers affected by a canceled payment. You can optionally reopen or close those vouchers the next time that you run voucher and payment posting. If you reopen vouchers for payment, you can specify whether to pay the same amount or to recalculate the payment amount.

You can only cancel reconciled payments if you have the Federal Payments feature enabled. If you do not have this feature enabled, the system only returns unreconciled payments.

Important:

You cannot cancel prepayments, nor can you cancel a payment if it is for a regular voucher that you have applied to a prepayment.

When you cancel a payment, select one of two processing options to create the necessary accounting entries information:

  • For canceled payments marked with the Do Not Reissue/Close Liability option, run both the Payment Posting Application Engine process (AP_PSTPYMNT) and the Voucher Posting Application Engine process (AP_PSTVCHR), which creates accounting entries from both payment-related transactions and vouchers.

  • For all other canceled payments, run the Payment Posting process, which creates accounting entries from payment-related transactions.

Note:

You must run the Journal Generator Application Engine process (FS_JGEN) to generate General Ledger journals for these accounting entries.

Payment Cancellation and PeopleSoft Financial Gateway

When you cancel payments that are settled through PeopleSoft Financial Gateway, the system creates and sends a cancel payment message to PeopleSoft Financial Gateway. This message can contain an individual cancel payment or multiple cancel payments depending on if you use the Cancel Payment component or the Mass Payment Cancellation component, respectively.

To cancel payments settled through PeopleSoft Financial Gateway, the payment's settlement status must have a value of Error, Hold, or Loaded.

The system handles PeopleSoft Financial Gateway payment cancellation in one of two ways, depending on if the payment is processed or not. Assuming that a payment is pending processing—meaning, it has a Loaded status in the PeopleSoft Financial Gateway staging tables—one of the following two scenarios happens:

  1. If PeopleSoft Financial Gateway receives the cancellation message in time, it removes the payment from the staging table and sends it back to the PeopleSoft Payables system. PeopleSoft Payables then updates the payment's status to Canceled.

  2. If PeopleSoft Financial Gateway does not receive the cancellation message in time—meaning, PeopleSoft Financial Gateway is currently processing the payment—the system prevents payment cancellation, even though payment displays only a Loaded status. In this scenario, PeopleSoft Financial Gateway sends an error acknowledgement message to PeopleSoft Payables. Until PeopleSoft Payables receives another message and updates the payment status to Paid, you cannot cancel the payment.

PeopleSoft Financial Gateway payments can also be out of synchronization ("out of sync") between PeopleSoft Financial Gateway and Payables. This occurs when you attempt to reverse (or undo) a canceled payment, as no message is sent to PeopleSoft Financial Gateway to keep the systems synchronized. The system displays a warning message when you try to save these types of reversed canceled payments.

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