Payment Predictor and Multicurrency Processing

Payment Predictor applies payments even if the currency for the item and the currency for the payment are different. When more than one currency is involved in a payment, Payment Predictor looks at:

• The payment currency (PAYMENT.PAYMENT_CURRENCY).

• The base currency of the deposit business unit (PAYMENT.CURRENCY_CD).

• The item currency (ITEM.BAL_CURRENCY).

• The base currency of the item business unit (ITEM.CURRENCY_CD).

If the currencies are different, the process places the rows that have different currencies in the Payment Predictor Multicurrency Conversion table (PS_PP_MULTC_TAO). It converts the item amount to the currency for the payment using the exchange rate on the payment date to do the conversion.

Payment balancing is performed in the payment currency. The PAY_AMT field in the PS_PP_ITEM_TAO table contains the item amount in the payment currency. When a step in a payment predictor method generates an item to balance a payment, the Payment Predictor process uses exchange rate information for the payment and creates the item in the payment currency.

Realized Gain and Loss

The system calculates a gain or loss if a difference exists between the item amount in the base currency for the business unit of the item on the accounting and payment dates for the item.

If a discount has a gain or loss amount, the amount is included in the realized gain and loss calculation for the item.

Payment-Level Adjustments

When you use the #REFS algorithm group and one payment in a deposit pays for multiple items, then Payment Predictor creates one adjustment entry at the payment level instead of the item level. For example, if a payment pays for two items, Payment Predictor looks at the sum of both items and the payment amount. It uses this information to determine whether an overpayment or underpayment condition exists and to create one adjustment entry. The adjustment entry is either an on-account or write-off item.

Item-Level Adjustments

Detail reference information always includes the amount of the payment that Payment Predictor applies to an item. If the amount of the payment does not match the amount of the item, Payment Predictor handles it in the following way:

1. Closes the item as paid in full.

2. Calculates any realized gain or loss based on the entire amount, if needed.

3. Creates a new item based on the action to be taken as defined in the Payment Predictor method with the exception of the action, Release the Payment. For example, it could put it on account, write it off, make an adjustment, or make a deduction with an option to create a worksheet for review before posting. The action choice made in the Payment Predictor method for each condition should be tailored to your specific business requirements.

For example, a detail payment method could designate the following actions for handling an unmatched payment:

• When the overpayment exceeds 100.00 EUR or 25 percent, it releases payment for next matching.

  No new item is created on this condition.

• When the underpayment exceeds 5.00 EUR, it creates a deduction item with the unmatched amount as its balance amount.

• When the underpayment is less than 5.00 EUR, it creates an item with the amount and writes it off.

  The new item has the original item ID in the document field as a reference. The process creates two items in this case. For underpayments, it creates a WS-07 item to adjust the underpayment and then a WS-11 item (write-off an underpayment).