Using #DETAIL and #DTL_TLR for Partial Payments and Deductions
This section provides tips for using the #DETAIL or #DTL_TLR algorithm group. You must select one of these algorithm groups to process detail reference information that includes the amount of the item, as well as an item ID.
Typically, you use the #DETAIL algorithm group for payment-level adjustments and the #DTL_TLR group for partial payments and discounts.
The #DETAIL algorithm group handles exceptions as either an overpayment adjustment (AO) or an underpayment adjustment (AU), unless a create a deduction (WS-08) transaction or a write-off an item (WS-09) transaction is entered on the Detail Reference Information page for the payment (PAYMENT_ID_ITEM record). The #DETAIL algorithm group can assign only AO or AU entry types. Because the entry types assigned by the #DETAIL algorithm group are predefined by the system, you do not need to define more steps when using this algorithm group to create a payment method.
The #DTL_TLR algorithm group enables you to specify the desired entry type and entry reason for handling exceptions. When you are using the #DTL_TLR algorithm group, the action that Payment Predictor takes for underpayments, overpayments, and discounts is based on the options specified on the Receivables Options - Predictor Detail Options page. Because you specify the adjustments assigned by the #DTL_TLR algorithm group, you do not need to define more steps when using this algorithm group to create a payment method.
Detail reference information for a particular payment is stored in the following fields of the PS_PAYMENT_ID_ITEM table:
| Field | Description |
|---|---|
|
ITEM_AMT |
The gross amount of the item selected to be paid. |
|
PAY_AMT |
The net amount of the item selected to be paid. |
|
DISC_TAKEN |
The discount amount applied to the item. |
Either PAY_AMT or else both ITEM_AMT and DISC_TAKEN must be positive numbers. If all these amounts are provided, Payment Predictor uses only PAY_AMT.
Using #DETAIL for Deductions
The #DETAIL algorithm group enables you to take deductions. For a deduction to occur, in the PAYMENT_ID_ITEM record, the ENTRY_USE_ID must be WS-08 (create a deduction). The record should also contain item reference information, including the business unit, customer ID, and item ID. For existing items, the deduction must be for the open item that is selected for the current payment. In addition, the sum of the payment amount and the deduction amount must equal the item balance. For example, if your customer wants to take a deduction for 50 USD on an item balance of 1,000 USD, then the payment amount must be 950 USD.
Using #DETAIL for Write-offs
The #DETAIL algorithm group enables you to deduct a write-off at the item level. For a write-off to occur, the ENTRY_USE_ID must be WS-09 (Write-Off) in the PAYMENT_ID_ITEM record. The record should also contain item reference information, including the business unit, customer ID, and item ID. To process a write-off using #DETAIL, you must also have a payment (PY) transaction for the same item in the PAYMENT_ID_ITEM record, and you must select the Partial Payment Switch field on the Bill To Options page for the customer. In addition, the detail references must equal the item amount. For example, if you have an item for 1,000 USD and you want to eliminate a 50 USD write-off from that balance, then the payment amount must be 950 USD. In this example, the Pay Amt field in the PAYMENT_ID_ITEM record must also be 950 USD.
Using #DTL_TLR for Partial Payments and Discounts
If Payment Predictor runs a payment predictor method that contains the #DTL_TLR algorithm group, the processing of partial payments differs depending on how you set up the tolerances on the Receivables Options - Predictor Detail Options page and whether you selected the Partial Payment Switch field on the Bill To Options page for the customer.
If you select the Partial Payment Switch check box, the process performs one of the following actions:
-
If the payment amount is less than the open balance amount minus the earned discount amount, the process performs one of the following actions:
-
If the remaining amount is within the tolerances on the Receivables Options - Predictor Details Options page, it closes the item and creates a write-off or adjustment based on the setup.
-
If the remaining amount is greater than the tolerances on the Receivables Options - Predictor Details Options page, it makes a partial payment and leaves the remaining amount open on the item.
-
-
If the payment amount is greater than the open balance amount minus the earned discount amount, the process pays the item in full and uses the values that you entered on the Receivables Options - Predictor Details Options page to determine whether to eliminate as a write-off or adjust an overpayment.
If you deselect the Partial Payment Switch check box, the process uses the values that you entered on the Receivables Options - Predictor Details page to determine whether to eliminate as a write-off or adjust an underpayment or overpayment.
For example, suppose that the tolerance amount is set at 50.00 USD and the percentage is set at 10 percent. If a payment of 90.00 USD is received after the payment term for the discount has expired for a 100.00 USD item, the payment will be within tolerance because the 10.00 USD short pay is less than the fixed tolerance amount of 50.00 USD and the calculated amount of 10 percent using 100 × 0.10. Therefore, the 10.00 USD of the short pay amount is adjusted or eliminated as a write-off based on what is specified using the Payment Predictor detail options.
A condition exceeds tolerance if it either exceeds the fixed tolerance amount or exceeds the tolerance percentage. In that case, you can set up Payment Predictor to take a different action for overpayments and underpayments.
Note:
If an item does not qualify for an earned discount but the Disc (discount) field is selected for the item on the Detail Reference Information page and a discount amount is entered, the process takes the unearned discount. The process takes the unearned discount regardless of the setting of the Partial Payment Switch field.
To set up your system to use tolerances for partial payments and discounts, you must perform the following tasks:
-
Assign the #DTL_TLR algorithm group to payment predictor methods.
-
Select or deselect the Partial Payment Switch check box for customers for whom you want to apply payments using the #DTL_TLR algorithm group on the Bill To Options page.
-
Assign a payment predictor method that runs the #DTL_TLR algorithm group to customers on the Bill To Options page or to business units on the Receivables Options - Payment Options page.
-
Assign the entry types and reasons for the #DTL_TLR algorithm group to the appropriate automatic entry types on the Automatic Entry Type - Selection page.
-
Select the Disc (discount) check box and enter a discount amount on the Detail Reference Information page.
-
Define the discount tolerances and write-off limits for underpayments and overpayments on the Receivable Options - Predictor Detail Options page.
-
(Optional) Override the default system function to use for underpayments and overpayments and unearned discounts on the Receivables Options - Predictor Detail Options page.
This table represents various scenarios and how Payment Predictor handles payments, earned discounts, and unearned discounts. All amounts are in USD.
| Scenario | Original Balance Amount | Payment Amount | Entered Discount | Discount Check Box Selected | Calculated Earned Discount | Calculated Unearned Discount |
|---|---|---|---|---|---|---|
|
1 |
1000 |
980 |
0 |
Y |
20 |
0 |
|
2 |
1000 |
1000 |
0 |
N |
0 |
0 |
|
3 |
1000 |
990 |
10 |
Y |
0 |
10 |
|
4 |
1000 |
960 |
40 |
Y |
0 |
40 |
|
5 |
1000 |
960 |
40 |
Y |
0 |
40 |
|
6 |
1000 |
980 |
10 |
Y |
0 |
10 |
|
7 |
1000 |
1010 |
0 |
N |
0 |
0 |
|
8 |
1000 |
1010 |
0 |
Y |
20 |
0 |
|
9 |
1000 |
490 |
10 |
Y |
0 |
10 |
|
10 |
1000 |
490 |
10 |
Y |
0 |
10 |
The Results column shows the results after running Payment Predictor and the Receivables Update process.
| Scenario | Action Item | Partial Payment Allowed | Results ª | Item Status | Closing Balance |
|---|---|---|---|---|---|
|
1 |
0 |
Yes or No |
20 USD earned discount is taken. |
Closed |
0 |
|
2 |
0 |
Yes or No |
Apply payment in full and close the item. |
Closed |
0 |
|
3 |
0 |
Yes or No |
10 USD unearned discount is taken (within the tolerance specified). |
Closed |
0 |
|
4 |
0 |
No |
40 USD deduction item is created (the discount is not within the tolerance amount, a partial payment is not allowed, and the underpayment is not within the specified tolerance). |
Closed |
0 |
|
5 |
0 |
Yes |
Process a partial payment (the discount is not within the specified tolerance amount). |
Open |
40 |
|
6 |
10 (WAU) |
Yes or No |
10 USD underpayment is written off (the discount is within the specified tolerance amount and the underpayment is within the specified invoice tolerance percent or amount). |
Closed |
0 |
|
7 |
10 (WAO) |
Yes or No |
10 USD overpayment is written off (the overpayment is within the specified invoice tolerance percent or amount). |
Closed |
0 |
|
8 |
30 (OA) |
Yes or No |
New on-account item is created (the overpayment is above the specified invoice tolerance percent or amount). |
Closed |
0 |
|
9 |
0 |
Yes |
Process the partial payment (the discount is not within the specified tolerance percentage). |
Open |
510 |
|
10 |
0 |
No |
510 USD deduction item is created (the discount is not within the specified tolerance amount and a partial payment is not allowed). |
Closed |
0 |
Note:
ª The Results column shows the results after running Payment Predictor and the Receivables Update process.