Configure Escheatment Options

You can use Payables to identify and escheat payments that haven’t been cleared over a certain time period. To do that, there are some options that you must configure.

You must configure these options for enabling escheatment feature.

• Unclaimed fund account
• Minimum days to escheat payment

Setting Up an Unclaimed Fund Account

When you escheat and unclaimed check, its payable amount must be stored in an account before it’s transferred to the escheatment authority. Follow these steps to configure this account.

1. Go to Navigator > My Enterprise > Setup and Maintenance.
2. From the Setup and Maintenance work area, go to the Manage Common Options for Payables and Procurement task.
   • Offering: Financials
   • Functional Area: Payables
   • Task: Manage Common Options for Payables and Procurement
3. In the Default Distributions section, enter the Unclaimed Fund field.
4. Click Save.

This account will be used to hold funds till you create an invoice to transfer it to the escheatment authority.

Setting Up Minimum Days to Escheat a Payment

Before you escheat a payment, you must define a minimum time duration for the validity of a check. Till this time has passed, a check can stay in the Negotiable state. Beyond this duration, Payables identifies this check as valid for escheatment.

Here’s how you set this duration.

1. Go to Navigator > My Enterprise > Setup and Maintenance.
2. From the Setup and Maintenance work area, go to the Manage Payment Options task.
   • Offering: Financials
   • Functional Area: Payables
   • Task: Manage Payment Options
3. In the Escheatment section, enter the Minimum days to initiate escheatment field.

4. Click Save.

How You Add Escheatment to a Custom Accounting Method

An accounting event class named "Escheated Payments" with event type "Payment Escheated" is available in Subledger Accounting. If you’re using a configured accounting method, you must include the escheatment event class in the configured accounting method.

Here’s how you do this:

1. Go to Navigator > My Enterprise > Setup and Maintenance.
2. From the Setup and Maintenance work area, go to the Manage Accounting Methods task for Payables.
   • Offering: Financials
   • Functional Area: Payables
   • Task: Manage Accounting Methods
3. Select the custom method that’s assigned to the primary and secondary ledgers.
4. In the Journal Entry Rule Set Assignments section, go to the Payables tab.
5. Click the Add Row icon.
6. Select the following values.
   • Event Class: Escheated Payments
   • Event Type: All
   • Rule Set: Escheated Payments Accrual Basis
7. Click Activate.
8. Save the configuration.
9. Go to Tools > Scheduled Processes > Schedule New Process.
10. Search for Update Subledger Application Option. Select it from the results and click OK.
11. Select the Subledger Application option as Payables and click Submit.

ACCESS REQUIREMENTS

To use the escheatment feature, you must have the Escheat Unclaimed Payments (AP_ESCHEAT_UNCLAIMED_PAYMENT_PRIV) privilege.