Confirming an In-Transit Payment
When you receive a statement or transaction data from the vendor’s bank, you can update the status of an in-transit payment. You can mark it that the payment was confirmed or declined by the bank.
When your bank verifies that funds have been disbursed to make a payment, mark the bill payment as Confirmed. When you confirm the in-transit payment, you can identify the date bank processing occurred. You can verify or update data accurate as of that date, including exchange rate, posting date, and posting period.
If a payment is declined by the vendor’s bank, mark the in-transit payment as Declined. For more information, see Declining an In-Transit Payment.
To confirm an in-transit bill payment:
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View the bill payment record.
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Click Confirm.
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In the Confirm Information window, do the following:
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Enter or verify the Date shown to indicate the date the bank deposited the payment. This defaults to show the current date.
Based on the date you enter, the associated exchange rate and posting period may be updated.
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Enter or verify the Posting Period. This defaults to the current period.
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Enter or verify the Exchange Rate. This defaults to the current rate. For example, if the payment was made in another currency, enter the rate here.
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Check the Clear Payment box to mark the payment as Cleared for reconciliation. This defaults to be checked.
Clear this box if you do not want the payment marked as Cleared.
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Click OK.
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Now, the payment posts as an Accounts Payable transaction and the status shows as Confirmed. A reversal posts to clear the payment amount from the Cash-In-Transit (CIT) account.
Any Realized Gain/Loss amount posts. Realized Gain/Loss results if an exchange rate changes between the time you create an in-transit payment and the payment is deposited in the vendor’s bank.
If no outstanding balance remains on the originating vendor bill, the status of the vendor bill is updated to Paid in Full.