Payment Escheatment

Occasionally, an organization issues a check to a supplier, but the supplier does not deposit it. Perhaps the supplier goes out of business. Whatever the reason, the check becomes stale-dated. In rare cases, a stale-dated check must revert to the state if no legal heirs or claimants exist.

When you identify a check as stale dated, it is informational only. When you decide to escheat a stale-dated check, you use the Payment Escheatment component (PYMNT_ESCHEATED) to escheat an individual payment:

PeopleSoft Payables enables you to reclassify the stale-dated check to an escheat liability account by debiting cash and crediting escheatment liability. When users escheat payments, they enter an escheatment date. The system uses the escheatment date to control the accounting for the escheatment entry.

Note:

The system uses the escheatment date to compare to the effective date of the Accounting Entry template and then selects the active template.

Payment posting treats an escheated payment like a voided payment except that there is no option to close or restate the voucher liability.

When you escheat a payment, you can select on-demand processing options to run just the Payment Posting process, or both the Payment Posting process and Journal Generator process.

• Running only the Payment Posting process creates accounting entries that reverse the cash entries to an escheatment liability account, which users predefine on the Accounting Entry template.

  The system records the escheatment liability account to the vouchering GL business unit and the cash entry to the bank's cash GL business unit. If they are different business units, the system generates InterUnit entries.

  Note:

  Use the Accounting Entry Template page to modify the accounts and effective dates if you use separate accounts for different periods. For example, you report California escheated payment transactions on November 1, 2006. You use a different escheatment account for the following year's transactions. Enter a new effective row dated November 1, 2006 and modify the account. This ensures the system uses the new account for the following year's escheated payment transactions.

• Running both processes does the accounting entry work (discussed in the first bullet point) and also creates the General Ledger journals.

Note:

Escheatment liability entries will reverse all chartfields from the expense entry, except ACCOUNT and ALTACCT. Intra Unit entries will not be generated as chartfield values will be inherited from cash entries. Inter Unit entries will be created accordingly.