Entering Payments

This chapter provides an overview of payments and deposits, lists prerequisites, and discusses how to:

Enter regular deposits.
Enter express deposits.
Create cash control accounting entries.
Journal payments directly to general ledger.
Reconcile payments on a bank statement.

Understanding Payments and Deposits

This section provides an overview of payments and deposits and discusses:

Bilateral netting
Payment status

In Receivables, a deposit consists of all payments that you are processing or that the bank processes. You can apply a payment to multiple items for a single customer or to multiple items for different customers, even across business units.

You can enter payments into Receivables using these methods:

Method	Description
Regular deposit	This is the standard method for online payment entry. Use regular deposit when you have customer information but lack item IDs.
Express deposit	If you have an item ID, use express deposit so that you can enter deposits and apply payments at the same time. You do not need customer information to use express deposit.
Lockbox	Electronic payments that are deposited automatically in the background from a bank file.
Electronic Data Interchange (EDI)	A process that receives payments in both the European and U.S. EDI formats.
Cash drawer receipts	Payments and deposits that you enter as cash drawer receipts for counter sales in Order Management.
Bank statement	Bank statement deposits are a source of payments through the entry of reconciled deposits to the receivables system.
Bilateral netting	Netting deposits are the result of a net of payables and receivables transactions.
Credit card	The PeopleSoft system provides a tool to obtain credit card authorization and to process credit card payments.
(JPN) Electronic Funds Transfer (EFT)	A process receives payments in an EFT file.

Depending on your business, you can use one or more of these methods. The method of payment entry that you use does not limit your cash application options. After you enter payments, you can apply them to items by using either a payment worksheet or the Payment Predictor Application Engine process (ARPREDCT), which automatically applies payments. After you apply the payments, run the Receivable Update Application Engine process (ARUPDATE) to post the payments, create accounting entries, and update the customers' balances.

You journal cash to the general ledger using direct journalling or the cash control accounting method.

Direct journalling bypasses payment application and sends cash directly to the general ledger—a method suited to payments that do not pay accounts receivable items.
The cash control accounting method journals cash to a control account upon receipt or when reconciled on a bank statement, depending on the cash control methods used.

If you do not use cash control, the system updates the cash account after you apply the payment.

Creating Cash Control Accounting Entries

Receiving Payments Electronically

Applying Payments

Processing Credit Cards

Bilateral Netting

Netting deposits are the result of a net of payables and receivables transactions. If your organization uses both Payables and Receivables, you can offset open items in Receivables with open vouchers in Payables by using bilateral netting. This function is useful when some of your customers are also vendors from whom you purchase goods or services.

You need to set up a contractual arrangement with your trading partners who want to participate in the netting process. You specify which vendor IDs and customer IDs participate in each netting selection and the system nets the open vouchers and items for those customers and vendors. You also specify rules for selecting the vouchers and items and for the order in which the system matches the items. For example, you can specify that you want the process to match the smallest items or largest items first.

Note. If you do not want to include an item in the netting process, clear the Available for Netting check box on the View/Update Item Details - Detail 1 page.

The netting process uses a netting bank account, which is a virtual bank, for the exchange of funds. There is no exchange of actual funds, but the process creates a deposit that uses this bank account.

In most cases, when you net transactions, the total of the receivables items and the payables vouchers is not equal. If the receivables are greater than the payables, the process selects the items to net based on the netting rules and then partially nets one item. For example, suppose that you have two items in a netting selection: one for 100.00 and one for 50.00. You have two vouchers in a netting selection: one for 75.00 and one for 50.00. The total of the vouchers is 125.00 and the total of the items is 150.00. Your netting rules specify that you net the largest item first. So the process would net both vouchers, the 100.00 item, and 25.00 of the second item.

When you close the netting selection using Pay Cycle Manager, the system creates a deposit with one payment for the total amount of the net. In this example, the deposit would be for 125.00. The deposit uses the netting reference ID for the payment ID. The closing process creates a payment worksheet for the deposit and sets its posting status to Batch Standard.

Warning! If you change the item selections on the payment worksheet, the accounting entries for the net will be out of balance.

The closing process changes the due date and payment method for all the items in the netting selection that were not paid (including the item that the net partially paid) to the same due date and payment method based on the Receivables receipt settlement instructions. It also assigns the netting reference ID to each item to facilitate payment application.

If the payables are greater than the receivables, the process is essentially the same, except that all items in the netting selection are paid in full by the netting deposit.

See Also

Managing Bilateral Netting

Payment Status

A payment's status changes as the payment moves through the system. The status determines which payment information you can change and which menu options are available to work with the payment.

This table lists payment status and provides a description for each status:

Payment Status	Description
Unidentified	A payment was entered through a regular or express deposit or electronically by lockbox, EDI, bank statement, or a cash drawer receipt. A payment ID was entered but no customer or payment reference information was provided. You can change all payment information.
Identified	Payment reference information or a customer identifier was provided upon entry. This occurs for regular deposits on the Regular Deposit - Payments page or on the Worksheet Selection page. The system identifies electronic payments by magnetic ink character recognition (MICR) ID, a customer ID, or any of the payment references. If you delete a worksheet, the payment status reverts to Identified.
Identified-Express	Item or payment reference information was provided on the Express Deposit - Payments page. The payment is linked to an item or items, but not set to post. You can change all payment information.
Directly Journalled	The payment was entered in a regular deposit and marked for direct journalling. The status changes when you mark accounting entries complete after entering the user-defined line on the Accounting Entries page.
Worksheet	The payment has a saved worksheet that is not set to post. If any payment in a deposit has this status, you cannot change any deposit information, payment amounts, dates, or IDs. If accounting entries have not been created, you can change identifying information for the payment.
Applied	The payment has been applied, and either accounting entries were created online or the payment is set to post on the Worksheet Action page. If any payment in a deposit has this status, you cannot change any deposit or payment information.
Complete	The Receivable Update process has successfully posted the payment. After a payment has been marked Complete, you can only inquire on it. To change it, you must unpost the payment group.

Prerequisites

Before you enter payments, you must:

Select a cash control method for each business unit.
Set up the bank accounts for depositing payments.
Define group types for payments.
Define deposit types.
Set up qualifiers for payment reference information.

See Also

Defining Additional Accounting Options

Setting Up Group Types and Group Origins

Defining Additional Processing Options

Defining External Account Information

Entering Regular Deposits

This section provides an overview of regular deposits and discusses how to:

Enter regular deposit totals.
Enter regular deposit payment information.
(Optional) Enter payment details for items.
Correct balancing errors.
(Optional) Delete a deposit.

Understanding Regular Deposits

Use a regular deposit when you have customer information but lack item IDs. After you create the deposit, you must apply the payments using the payment worksheet or the Payment Predictor process.

You can change deposit information until one of these events occurs:

A payment in the deposit is applied or has a saved worksheet.
Accounting entries for directly journalled payments have been completed.
The Journal Generator Application Engine process (FS_JGEN) has processed cash control accounting entries.

Pages Used to Enter Regular Deposits

Page Name	Object Name	Navigation	Usage
Regular Deposit - Totals	PAYMENT_DATA1	Accounts Receivable, Payments, Online Payments, Regular Deposit, Totals Accounts Receivable, Payments, Online Payments, Regular Deposit Balancing, Totals	Enter information and control totals for a new deposit, or delete a deposit. The Totals page is unavailable if the deposit has been reconciled with a bank statement.
Regular Deposit - Payments	PAYMENT_DATA2	Accounts Receivable, Payments, Online Payments, Regular Deposit, Payments Accounts Receivable, Payments, Online Payments, Regular Deposit Balancing, Payments	Enter details about each payment in a regular deposit.
Detail Reference Information	PAYMENT_REF_DETAIL	Click the Detail References link on the Regular Deposit - Payments.	Enter the items to which you are applying the payment. Also, create deductions, pay or write off all or part of an item, create on-account payments or prepayments.
Regular Deposit Balancing - Action	PAYMENT_DATA3	Accounts Receivable, Payments, Online Payments, Regular Deposit Balancing, Action	Select an action to save the deposit or delete the deposit.
All Deposits	DEPOSIT_STATUS	Accounts Receivable, Payments, Review Payments, All Deposits, All Deposits	View details about one specific deposit ID (including control totals and status) or scan all deposits, one at a time.
Incomplete Deposits	DEPOSIT_INCOMPLETE	Accounts Receivable, Payments, Review Payments, Incomplete Deposits, Incomplete Deposits	View posted and unposted deposits that are not yet completely processed. You can see the payment amount for the deposit that is still in process, summarize out-of-balance deposits (only), or view the list of incomplete deposits by user.

Entering Regular Deposit Totals

Access the Regular Deposit - Totals page.

Accounting Date

Enter the accounting date for each payment and for all pending items created from the payment. You can override the date on the Regular Deposit - Payments page. The system validates the accounting date to make sure it falls within the open period for the business unit and transaction type as defined on the Open Period page for the business unit.

Deposit Type

Displays the default deposit type for the bank account that you defined on the External Accounts - Account Information page. Override the value if needed.

Control Currency

Enter a currency code if the same currency is used for all of the payments.

Note. Specifying a control currency at the deposit level is optional. If you enter currency at this level, all payments in the deposit must then have this same currency. To take advantage of multicurrency processing, leave control currency blank and specify currency at the payment level. The next page in this component, Payments, enables you to enter a different currency for each payment in the deposit.

Format Currency

Select the display currency.

Rate Type and Exchange Rate

If you enter a control currency, you can adjust these fields as needed.

Realized gain and loss calculations are not affected by changing the rate type or exchange rate on the deposit or payment pages. The appropriate way to change the exchange rate for the realized gain and loss calculations is to change the market rate. The exception to this is when the base currencies of the item and payment are the same and when the entry currencies of the item and payment are the same.

Click the Exchange Rate Detail button to access a page where you can view or modify the exchange rate.

Control Total Amount

Enter the control totals for the amount and count of the payments in this deposit. You can have a zero-total deposit if the payment amounts offset each other.

Entered Total Amount and Difference Amount

These fields display the amount and count of the payments that you have entered and the difference between the payments entered and the control totals. If the control and entered totals and count are not the same, you cannot apply any of the payments. Balancing these control totals is a necessary first step in payment application.

Posted Total Amount and Journalled Total Amount

These fields display the amount and count of payments that are applied and posted, or directly journalled.

Received and Entered

Enter the date when either the bank or your company received the payment. Because of normal processing delays, this date may be different from the entered date.

User

Displays the user ID of the individual assigned to the deposit. If you received an electronic deposit, the Payment Loader process (AR_PAYLOAD) assigns the user ID of the individual who created the run control ID for the process. If another user modifies the deposit in the Regular Deposit component (PAYMENT_ENTRY), the system automatically changes the user ID to that person's user ID.

Entering Regular Deposit Payment Information

Access the Regular Deposit - Payments page.

The more information you can provide on this page, the easier it will be to work with the payment worksheet.

Balance

Displays the status for the deposit. When the amount total and number of entered payments equals the control amount and count from the Regular Deposit - Totals page, the status changes from Not Balanced to Balanced. The total amount of all the payments in the deposit must match the control totals on the Regular Deposit - Totals page before you can create a payment worksheet.

Payment Information

You cannot update payment information for a deposit that has been reconciled with a bank statement.

Seq (sequence)	Displays the sequence number for each payment. When you enter a payment ID, the system assigns the next number to the payment so you can track the order in which payments are entered.
Payment ID	Enter the check number or other identifying number.
Accounting Date	Displays the payment date, using the accounting date on the Totals page as the default. The system validates the payment date to make sure that the date falls within the open period for the business unit and transaction type as defined on the Open Periods page for the business unit. The payment date may be different from the deposit date, if you use the postmark date from checks. The payment date affects earned discounts, so it’s important that it is accurate.
Amount	Enter the amount for this payment.
Payment Predictor	Select this check box to use the Payment Predictor process to apply this payment. The bank account governs the default setting for this check box. If a worksheet already exists for this payment, this check box is unavailable. Note. If you receive payments for vendor rebate claims or claimback items interfaced from Purchasing or Order Management, you do not select this option. You must manually apply the payments on the payment worksheet to indicate the base and VAT amounts for each item.
Journal Directly	Select if a payment should be handled as miscellaneous cash received rather than applied to items. Payments to be directly journalled cannot be processed in payment worksheets and do not go through the Receivable Update process.
Range of References	Select to identify an item by a range of numbers. Enter reference values in the Reference Information group box.
Payment Method	Select Check, Electronic Funds Transfer, or Giro - EFT. Use Giro - EFT in the Netherlands if you print invoices, statements, or dunning letters with the acceptgiro attachment and the payment is for one of these bills. The system populates this field as follows: Uses the payment method for the deposit type with the same setID as the deposit business unit. Uses the payment method specified in the Receivables Options - Payables Options page for the setID of the deposit business unit. Uses CHK. If the payment method is Cash, the deposit was entered as a cash drawer receipt for a counter sale. In this case, all payments in the deposit are cash payments, and you cannot change the payment method. Also, you cannot add any payments to the deposit. The only information you can change for cash payments is the reference information. Note. If you enter deposits online, the cash payment method is not available.

Customer Information

Customer information is optional. However, the more information you can provide, the easier it is to use the payment worksheet.

Customer ID and MICR ID (magnetic ink character recognition ID)

Enter a customer ID or a MICR ID to identify a customer. The system then automatically displays other information about the customer.

Note. If you selected the Track Direct Journal Customer check box on the Installation Options - Receivables page, the Cust ID field is available for direct journal payments so that you can associate a customer with the payment. The payment does not update the customer balance. This enables you to use the Direct Journal inquiry page to review all direct journal payments for a customer. The field is available for all normal payments.

SubCustomer 1 and SubCustomer 2

Displays the default subcustomers qualifiers for the customer that you entered on the Miscellaneous General Info page. Override the values if needed. You use the subcustomer qualifiers as filter criteria for payments on some inquiry page. If subcustomer qualifiers are not enabled for the customer, these fields are not available.

Link MICR

Click to access a page where you can link the MICR ID to the remit from customer. If you enter a MICR ID that has not been associated with a customer, no customer information appears.

Reference Information

Enter information that ties this payment to specific items. You can use part of the name plus a wildcard of % as long as you provide the beginning letters or numbers. For example, enter a purchase order (PO) number of 24% here and later use the Like Match option on the Worksheet Selection page. The worksheet will contain all items having PO numbers beginning with 24, but will not include a PO number of x24x.

Qual Code (qualifier code)

Select the type of reference information to use to identify the items, such as document, purchase order, or bills of lading.

Reference (reference value) and To Reference (to reference value)

Enter a reference number to identify an item, or enter a range of reference numbers. To enter a range, select the Range of References check box in the Payment Information scroll area. The To Reference Value field must always be greater than the Reference Value.

Note. The references (#REFS) Payment Predictor algorithm group does not support a range of references. To use a range of references for a particular payment and have the Payment Predictor process apply that payment, create algorithms specifically for your environment or database platform.

Detail References

Click to open the Detail Reference Information page, where you create deductions, pay or write off all or part of an item, and create on-account payments or prepayments. This page functions like a worksheet; it enables you to list the items to which you are applying the payment and enter the appropriate entry type for each item.

Entering Payment Details for Items

Access the Detail Reference Information page.

The Detail Reference Information page for a regular deposit is similar to the Detail Reference Information page for the payment worksheet.

See Also

Enter Item References for the Payment

Correcting Balancing Errors

A deposit is out of balance when the number of entered payments does not match the control number or the total amount of entered payments does not equal the deposit control amount. You can see that a deposit is out of balance because the Not Balanced message appears on the regular deposit entry pages. Another indication of an out-of-balance deposit is that the Worksheet Selection page is unavailable when you try to build a worksheet for a payment in the deposit.

Do the following to correct errors on regular deposits:

Adjust regular deposit totals.
Adjust payment information.
Delete a deposit.

The pages that you use to correct regular deposit balancing errors are identical to those that you use to enter regular deposits. However the navigation is different. You use the Regular Deposit Balancing component (BALANCING) to correct balancing errors.

The pages work the same as when you enter deposits and payments, but only out-of-balance deposits are available for you to select. When you use pages for balancing errors, you can change any of the information associated with a deposit or payment.

Deleting a Deposit

Access the Regular Deposit - Totals page.

Click the Delete Deposit button.

Entering Express Deposits

This section provides an overview of express deposits and discusses how to:

Enter express deposit totals.
Enter and apply payments with express deposit.
Select an express deposit action.
Correct express deposit balancing errors.

Understanding Express Deposits

If you have an item ID, use express deposit so that you can enter deposits and apply payments at the same time. You do not need customer information to use an express deposit.

If you do not have an item ID but have a customer ID, a reference number, an amount, or only a business unit, you must use a payment worksheet to apply the payment.

You can use express deposits to enter deposits and apply payments, as long as these conditions are met:

The item currency and the base currency of the payment must be the same.
You do not need to journal payments directly.
You need only limited handling of discounts.
You will post the deposit in a standard run of the Receivable Update process.

Pages Used to Enter Express Deposits

Page Name	Object Name	Navigation	Usage
Express Deposit - Totals	PAYMENT_EXPRESS1	Accounts Receivable, Payments, Online Payments, Express Deposit, Totals Accounts Receivable, Payments, Online Payments, Express Deposit Balancing, Totals	Enter information and control totals for a new deposit.
Express Deposit - Payments	PAYMENT_EXPRESS2	Accounts Receivable, Payments, Online Payments, Express Deposit, Payments Accounts Receivable, Payments, Online Payments, Express Deposit Balancing, Payments	Enter and apply payments with item IDs in a deposit after you enter the deposit control totals.
Express Deposit - Action	PAYMENT_EXPRESS3	Accounts Receivable, Payments, Online Payments, Express Deposit, Action Accounts Receivable, Payments, Online Payments, Express Deposit Balancing, Action	Post a deposit (provided that you entered and saved payments on the Express Deposit - Payments page), review accounting entries, create worksheets for incompletely applied payments, clear worksheets, or permanently delete the entire deposit so you can start over.
Express Deposit - Accounting Entries	GROUP_ENTRY3	Click the Create/Edit button on the Express Deposit - Action page.	Review and modify accounting entries for payments in an express deposit.

Entering Express Deposit Totals

Access the Express Deposit - Totals page.

This page is identical to the Regular Deposit - Totals page.

See Also

Entering Regular Deposit Totals

Entering and Applying Payments with Express Deposit

Access the Express Deposit - Payments page.

Deposit Balance

Displays the deposit status, when the amount total and number of entered payments equals the control amount and count from the Express Deposit - Totals page, the status changes from No to Yes.

Control Total Amt (control total amount)

Displays the control totals entered on the Express Deposit - Totals page.

Entered Total Amt (entered total amount) and Difference Amount

Displays the amount of the payments that you have entered and the difference between the payments entered and the control totals. If the control and entered totals are not the same, you cannot apply any of the payments. Balancing these control totals is a necessary first step in payment application.

Payment Information

You can update payment information only for deposits that have been reconciled with a bank statement.

Payment Sequence	When you enter a payment ID, the system assigns the next number to the payment so you can track the order in which they were entered.
Payment ID	Enter the check number or other identifying number.
Accounting Date	Displays the payment date using the accounting date on the Totals page as the default. The system validates the payment date to make sure it falls within the open period for the business unit and transaction type as defined on the Open Periods page for the business unit. The payment date may be different from the deposit date if you use the postmark date from checks. The payment date affects earned discounts, so it must be accurate.
Payment Predictor	Select to use the Payment Predictor process to process a payment. This setting may override a default setting at the customer level. If a worksheet already exists for this payment, the check box is clear, and you cannot select it. Note. If you receive payments for vendor rebate claims or claimback items interfaced from Purchasing or Order Management, you do not select this option. You must manually apply the payments on the payment worksheet to indicate the base and VAT amounts for each item.
Amount	Enter the amount for the individual payment.
Payment Method	Select Check or Electronic Funds Transfer. The system uses the default payment method from the deposit type or business unit on the Receivables Options page. You can override the default payment method only for individual payments. If the Payment Method field is left blank, the payment method is assigned as follows: Obtain the payment method for the deposit type using the setID of the deposit business unit. Obtain the payment method specified in the Receivables Options page for the setID of the deposit business unit. If the payment method is not available from Receivables Options page, assign CHK as the deposit type. If the payment method is Cash, the deposit was entered as a cash drawer receipt for a counter sale. In this case, all payments in the deposit are cash payments, and you cannot change the payment method. Also, you cannot add any payments to the deposit. The only information you can change for cash payments is the reference information. Note. If you enter deposits online, the cash payment method is not available.
Selected	Displays the total amount of payments applied to items.
Discount Taken	Displays the total amount of discount taken on the items.
Remaining	Displays the total amount of the payment remaining after applying items to the payment. This amount reflects discounts taken.

Reference Information

Item ID	Enter the ID of the item that you want to pay. When you provide an item ID, the system displays the item's payment amount. You can override this amount to create a partial payment. The system displays a value in the Cust (customer) or Unit fields unless an item ID references more than one item. If the system finds more than one item for the item and item line that you entered, it populates only the item ID.
Discount	Select for an earned discount. The check box is selected by default if the discount is earned. The check box is cleared if the discount is unearned. If you want to take an unearned discount, you must create a payment worksheet.
Disc Avail (discount available)	Displays the amount available for an earned discount.

If you cannot completely apply a payment on this page, use a payment worksheet to apply prepayments, deductions, adjustments, on-account payments, and write-offs as needed.

Selecting an Express Deposit Action

Access the Express Deposit - Action page.

Deposit Balance	Displays the status for the deposit. It must be Balanced before you can set the deposit to post.
Status	Displays the posting action for the deposit. Values are No Action (deposit not ready to post) or Standard (deposit has been set to post).

Posting Actions

Select a posting action for the payments.

Do Not Post	Click to save the changes to the payments. Use this option to change the posting option for payments set to Standard if the payments have not been processed yet.
Batch Standard	Click to run the Receivable Update process the next time that a standard scheduled batch jobs runs. This might occur once a day depending on how often the organization schedules standard jobs.

Note. When you post express deposits, you post individual payments, not a group of all payments in the deposit. A payment group is always one payment when cash application is done in express deposit.

Worksheet Actions

Build

Click to create one worksheet for every payment in the deposit. The system indicates the number of worksheets created.

Note. Instead of using the Build button, you can use the worksheet menu options to create one worksheet at a time.

Delete

Click to delete the payment group that was created without deleting the entire deposit. If you accidentally select the wrong action, select Delete Worksheet on the Worksheet Action page to delete the worksheets, but retain the express deposit information that you entered.

Accounting Entry Actions

Create/Edit

Click to create accounting entries online for all applied payments in the deposit, as long as the deposit is in balance. The system accesses the Accounting Entries page where you can review and modify accounting entries. The payment status is set to Worksheet. You must return to the Action page to set the group to post.

Normally you let the Receivable Update process create accounting entries. You only need to create accounting entries online when you must review them right away.

Deposit Actions

Delete

Click to delete the entire deposit. If you entered and saved payments on the Express Deposit - Payments page, use this option only if you want to permanently delete the entire deposit.

Correcting Express Deposit Balancing Errors

A deposit is out of balance when either the number of entered payments does not match the control number or the total amount of entered payments does not equal the deposit control amount. You may recognize an out-of-balance deposit either by the Not Balanced message on the express deposit entry pages or because the Worksheet Selection page is not available when you try to build a worksheet for one of the payments in a deposit.

Here’s how you correct errors on express deposits:

Adjust express deposit totals.
Adjust payment information.
Delete the deposit as needed.

The pages that you use to correct express deposit balancing errors are identical to the pages that you use to enter express deposits. However, you use a different navigation path to access the pages for balancing errors. You use the Express Deposit Balancing component (EXP_BALANCE).

Creating Cash Control Accounting Entries

This section provides an overview of cash control accounting and discusses how to:

Run the Cash Control Application Engine process (AR_CSH_CNTL).
Review cash control accounting entries.

Understanding Cash Control Accounting

Cash control accounting ensures that the general ledger reflects cash as soon as you receive it or reconcile it on a bank statement; you do not have to apply the cash for it to appear in the general ledger.

You implement cash control accounting at the bank level. The PeopleSoft system provides two options for cash control accounting:

Standard cash clearing.

Use this option to create cash control accounting entries only.
Deposit in transit.

Use this option to create deposit-in-transit and cash control accounting entries if you reconcile your bank statements online.

The deposit-in-transit accounting entries record payments that are not deposited in your bank account and have not been reconciled on a bank statement.

Standard Cash Clearing

To set up standard cash clearing for a bank account, select the Cash Clearing check box on the External Accounts page and enter the ChartField values for the Cash - AR and Dep - AR (cash control) account types.

Also, specify the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page. The options are:

Bank Reconciliation	Creates the cash control entry that debits cash when the payment is reconciled on a bank statement or when you run the Cash Control process. This method requires an additional run of the Bank Stmt Processing (bank statement process) Application Engine process (AR_BNKSTMT) when using automated reconciliation with statements transmitted by EDI.
Payment Entry	Creates the cash control entry that debits cash when the payment is received.

Note. If you select None for the cash control method, the system always debits the Cash account and credits the Receivables account when you apply the payment and does not create cash control lines.

This table shows the accounting entries that the system generates for each event if the cash control method is Bank Reconciliation:

Event	Debit	Credit
Payment entry	Not Applicable	Not Applicable
Bank statement processing or cash control processing	Cash	Deposit - AR (cash control)
Payment application	Deposit - AR (cash control)	Receivables

If the Payment Loader or Bank Stmt Processing (bank statement processing) process did not create cash control accounting entries, you must run the Cash Control process to create them. You normally run this process if you have a duplicate or out of balance deposit or if you did not have a cash control account set up when you ran the Payment Loader or Bank Stmt Processing processes. If the cash control method for the deposit business unit is Bank Reconciliation, the Cash Control process processes only payments that have been reconciled.

This table shows the accounting entries that the system generates for each event if the cash control method is Payment Entry:

Event	Debit	Credit
Payment entry	Cash	Deposit - AR (cash control)
Cash Control process run	Not Applicable	Not Applicable
Payment application	Deposit - AR (cash control)	Receivables

If the cash control method is Payment Entry, the system automatically creates cash control accounting entries when you save a deposit or receive payments electronically from a bank account designated for cash control. All payments except those earmarked to be directly journalled are affected. If you change deposit or payment information, the system updates the accounting entries to reflect your changes.

Deposits in Transit

To set up deposit-in-transit transactions for a bank account, select the Cash Clearing and Dep in Transit (deposit in transit) check boxes on the External Accounts page and enter the ChartField values for the Cash - AR, Dep - AR (cash control), and DIT - AR (deposit in transit) account types.

Also, select Bank Reconciliation for the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page.

The process flow to generate deposit-in-transit accounting entries is:

Enter payments online or electronically.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.
Apply the payment.
Post the payment.

This table shows the accounting entries that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:

Event	Debit	Credit
Payment entry	Deposit in Transit - AR	Deposit - AR (cash control)
Cash control processing	Cash	Deposit in Transit - AR
Payment application	Deposit - AR (cash control)	Receivables

If you set up deposits in transit for a bank account and select Bank Reconciliation for the cash control method for a deposit business unit, the system also generates additional accounting entries for direct journal payments.

The process flow for direct journal payments when you enable the deposit-in-transit option is:

Enter the payment using the Regular Deposit component.
Create the accounting entries for the direct journal payment.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.

This table shows the accounting entries for direct journal payments that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:

Event	Debit	Credit
Create direct journal accounting entries	Deposit in Transit - AR	User-Defined Revenue
Cash control processing	Cash	Deposit in Transit - AR

See Also

Defining Additional Accounting Options

Receiving Payments Electronically

Applying Payments

Defining External Account Information

Receiving and Updating Bank Statements

Reconciling Statements

Pages Used to Create Cash Control Accounting Entries

Page Name	Object Name	Navigation	Usage
Cash Control	CASHCNTL_REQUEST	Accounts Receivable, Payments, Cash Control Entries, Create Accounting Entries, Cash Control	Run the Cash Control process to create cash control accounting entries.
Cash Control Payments	CASH_CNTRL_DST	Accounts Receivable, Payments, Cash Control Entries, Review Accounting Entries, Cash Control Payments	Review cash control accounting entries. Note. If you need to delete the cash control accounting entries for a deposit, you must delete the entire deposit using the Regular Deposit component (PAYMENT_ENTRY) or Express Deposit component (PAYMENT_EXPRESS).

Page Name

Object Name

Navigation

Usage

Cash Control

CASHCNTL_REQUEST

Accounts Receivable, Payments, Cash Control Entries, Create Accounting Entries, Cash Control

Run the Cash Control process to create cash control accounting entries.

Cash Control Payments

CASH_CNTRL_DST

Accounts Receivable, Payments, Cash Control Entries, Review Accounting Entries, Cash Control Payments

Review cash control accounting entries.

Note. If you need to delete the cash control accounting entries for a deposit, you must delete the entire deposit using the Regular Deposit component (PAYMENT_ENTRY) or Express Deposit component (PAYMENT_EXPRESS).

Running the Cash Control Application Engine Process

Access the Cash Control page.

Deposit Unit	Enter the business unit for the payments that you want to deposit.
Deposit ID	Enter a deposit ID to limit the processing to specific deposits.
Payment Sequence	Enter a payment sequence number to limit the processing to specific payments.

If you want to include business units, deposit IDs, and payment sequence numbers that begin or end with the same characters or numbers, use the % wildcard. For example, if you enter 6%, the list includes all deposits that begin with 6, such as 6877 and 6789.

Reviewing Cash Control Accounting Entries

Access the Cash Control Payments page.

Click the tabs to view more details.

CR Amt (credit amount) and DR Amt (debit amount)

If the system displays the debits and credits separately, the Credit Amount and Debit Amount fields display the amounts in the base currency of the business unit.

If you enabled the Display Debit/Credit Amounts in Subsystems option on the User Preferences - Overall Preferences page, the debit amount or the credit amount and currency appear for each accounting line. Otherwise, the Line Amount field appears for each line.

Note. If the system displays separate debits and credits, a negative amount indicates an unpost transaction. Otherwise, negative amounts indicate a credit to the account, and positive amounts indicate a debit to the account.

Journalling Payments Directly to the General Ledger

This section provides an overview of direct journal payments and discusses how to:

Select a payment for direct journalling.
Create or correct accounting entries for the payment.
Review completed payments and mark them to be corrected.
Run the Journal Generator process (FS_JGEN).

See Also

Entering Regular Deposits

Understanding Direct Journal Payments

Payments that do not correspond to items can bypass the cash application process. Such payments are often called miscellaneous cash receipts or non-AR cash. In the PeopleSoft system, they are referred to as directly journalled payments because you can create accounting entries for them without applying them to any item.

If you create a regular deposit and journal the cash directly to the general ledger and need to reverse the journal entry, you can enter a negative payment in the Regular Deposit component (PAYMENT_ENTRY) and then journal that payment to the general ledger.

Common Elements Used in This Section

	Click the Budget Check button to run the Budget Processor Application Engine process (FS_BP).
	Click the Budget Check Options button to bypass a budget-checking error.
	Click the Document Sequencing button to enter document-sequencing information.

Pages Used to Journal Payments Directly to the General Ledger

Page Name	Object Name	Navigation	Usage
Regular Deposit - Payments	PAYMENT_DATA2	Accounts Receivable, Payments, Online Payments, Regular Deposit, Payments	Provide detailed information for each payment in a regular deposit and flag payments for direct journalling.
Accounting Entries	PAYMENT_MISC_DST	Accounts Receivable, Payments, Direct Journal Payments, Create Accounting Entries, Accounting Entries	Create or change accounting entries for payments that are to be journalled directly. If you use the Commitment Control option, use it to run the Budget Processor process. Note. You can view only accounting entries that are not marked as complete.
Directly Journalled Payments	PAYMENT_MISC_DST_I	Accounts Receivable, Payments, Direct Journal Payments, Modify Accounting Entries, Directly Journalled Payments	Review directly journalled payments that have been marked Complete. Also, change the Complete status to Incomplete. You can run the Budget Processor process to budget-check direct journal payments.
Commitment Control	KK_EXCPTN_OVER_SEC	Click the Budget Check Options button on either the Direct Journal Entry - Accounting Entries page or the Directly Journalled Payments page.	Bypass budget checking for the transaction. Also view details about a commitment control transaction, such as the source transaction type and the amount type for the journal.
Journal Generator Request	JRNL_GEN_REQUEST	General Ledger, Journals, Subsystem Journals, Generate Journals, Journal Generator Request	Initiate journal generator processing.

Selecting Payments for Direct Journalling

Access the Regular Deposit - Payments page.

Journal Directly

Select to create direct journal payments only for the payment.

Customer ID

Enter a customer ID to associate the direct journal payment with a customer. If you enter a customer ID, you can inquire on the direct journal payment by using a customer ID.

Note. This field is available only if you selected the Track Direct Journal Customer check box on the Installation Options - Receivables page. The payment does not update the customer balance.

Creating Accounting Entries for Direct Journal Payments

Access the Accounting Entries page.

Click the Create button to create the cash line for a direct journal payment.

Click the Delete button to delete journal lines.

This section discusses how to:

Create accounting entries.
Budget-check the entries.
Resolve any budget-checking errors.

Creating the Accounting Entries

To create accounting entries:

Enter ChartField values for the revenue line.

Note. If you set up speed types for ChartFields, click the Speed Type button and select a speed type code. The system automatically populates the General Ledger ChartField values defined by the speed type.
In the Line Amount field, enter the credit amount for the revenue account.

Note. If you are journalling a negative payment, enter a debit amount.
Click the Create button to create the line that records the cash.

The system populates the ChartField values using either the AR - Cash or DIT - Cash ChartFields that you defined for the bank account on the External Accounts page. It uses the DIT - AR ChartFields only if you selected the Dep in Transit check box for the bank account.

The system calls the Centralized Inter/IntraUnit Application Engine process (IU_PROCESSOR) to create intraunit accounting entries if you enabled ChartField balancing for the ledger group and interunit accounting entries, and if you are journalling the cash to a different business unit than the deposit business unit.

Note. After you create the cash line, you cannot change the ChartField values or amounts. To change this information, click the Delete button. The system deletes the cash line and makes the revenue ChartField values available to edit.
(Optional) If you enabled the Entry Event feature, enter the Entry Event code used to generate supplemental accounting entries.
(Optional) If you enabled the Document-Sequencing feature for the General Ledger business unit, click the Document Sequencing button for each line to enter document-sequencing information.
After you enter all of the accounting lines and they are in balance, click the Complete check box.

Verify the edit status on the ChartFields tab.

The status can be:

Not Edited	You have not saved the entries.
Errors	You saved the entries, but the system did not create them because they are in error.
Complete	You created valid accounting entries.

If the entry has an error, correct the error and click the Complete check box again. If you receive a combination edit error, you must either change the ChartField combination or modify the combination edit rules. If you receive a ChartField configuration editing error message after you mark the entries complete, you must correct the error before you save the direct journal. If you receive a warning message, you can save the direct journal without making corrections.

Note. If you must change the accounting entries after you save them and before you run the Journal Generator process, clear the Complete check box on the Directly Journalled Payments page. Then return to the Accounting Entries page to change the entries.

Budget-Checking the Entries

If you enabled the Commitment Control feature for Receivables and for the business unit, run the Budget Processor process after the accounting entries are complete. The process checks the control budget entries, updates the revenue estimate budget, and creates the commitment control journal lines.

To budget-check the entries:

Click the Budget Check button to run the Budget Processor process.

The system displays a warning message if transactions passed budget checking but receive a warning status.

Note. You can also run the Budget Processor process for direct journal payments from the Directly Journalled Payments page or from the Budget Processor page.

When the Budget Processor process is complete, verify the budget status for the entire payment and also for each line on the Budget tab.

The status can be:

Error	The entry failed to pass budget checking.
Not Chk’d (not checked)	The Budget Processor process has not processed the entry.
Valid	The entry passed budget checking and the process created the journal line in the ledger.
Warning	The Budget Processor process issued a warning, which indicates that the control budget did not have sufficient funds. However, it passed budget checking because the commitment control option for the control budget is set to Tracking w/ Budget (tracking with budget) or Tracking w/o Budget (tracking without budget) on the Control Budget Options page. The control budget might also be over the budget amount, but less than the tolerance amount. This warning applies only to individual lines.

The default budget date is the accounting date for the current transaction. It is possible to change the budget date, but it is recommended that you do not.

Resolving Budget-Checking Errors

Transactions typically fail the budget-checking process because the amount of the source transactions exceeds the amount in the control budget. If this occurs, you have two options:

Increase the revenue estimate budget amount.
Flag the direct payment journal to bypass budget checking.

An entry could also fail because you provided a revenue account that is not in the revenue estimate budget.

To resolve budget-checking errors:

Do one of the following:
- To bypass budget checking for entries in error, click the Budget Check Options button to open the Commitment Control page.
  
  Then select the Override Transaction check box.
  
  You must have authority to override budget checking.
- If you entered an invalid revenue account, delete the accounting entries and enter them again using a different revenue account.
Run the Budget Processor process again.

Enabling Commitment Control for Specific Applications

Entering and Posting Commitment Control Budget Journals

Managing Budget Exceptions

Reviewing Accounting Entries for Direct Journal Payments

Access the Directly Journalled Payments page.

This page is similar to the Accounting Entries page.

If you have not run the Budget Processor process and you have enabled commitment control for Receivables and the business unit, you can run it from this page and review the results.

If a budget entry fails because you provided a revenue account that is not in the revenue estimate budget, you need to delete the accounting entries and enter them again using a different revenue account.

Complete	Clear to delete and change the accounting entries for the payment. Then open the Accounting Entries page to make the changes.
Accounting Line Display	Specify the types of accounting entries that should appear and then click Display. Values are Standard, Supplemental (Entry Event), or Both. Supplemental accounting entries are available only if you entered an entry event code on the Accounting Entries page.
Type	Indicates the type of accounting entries: S: Standard. E: Supplemental
Credit Amount and Debit Amount	If the system displays the debits and credits separately, the Credit Amount and Debit Amount fields display the amounts in the base currency of the business unit. If you selected the Display Separate Debit/Credit in Subsystem check box on the Operator Preferences - Overall page, the debit amount or the credit amount and currency appear for each accounting line. Otherwise, the Line Amount field appears for each line.

Reconciling Payments on a Bank Statement

When you receive a bank statement, you may reconcile payments by matching the amount of each payment or deposit received with the amount that was submitted to the bank. You can reconcile payments manually, or use the Bank Reconciliation Application Engine process (FSPRECON) to reconcile them.

The reconciliation rule that you use varies depending on the information that the bank provides. You should reconcile at the same level that the bank provides on the bank statement. If there is always one payment per deposit, the bank provides the deposit ID. In this case, use the PS_BNK_RCN_DEPOSIT rule. If there are multiple payments in a deposit, the bank provides the payment ID. In this case, use the PS_BNK_RCN_PAYMENT rule.

If you have cash payments received through the Load Cash Drawer Receipts process (CDR_LOADPMT), you must use the PS_BNK_RCN_DEPOSIT rule because all cash payments are sent to Receivables in one deposit and the payment-level detail is not available in the bank statements. In this case, you must set up separate bank accounts: one for cash deposits and one for other payment methods.

Important! If you have already applied the payment using the payment worksheet or the Payment Predictor process and run the Receivable Update process, use the PS_BNK_RCN_PAYMENT reconciliation rule.

See Also

Setting Up Reconciliation

Reconciling Statements

Defining External Account Information

Accounting Date	Enter the accounting date for each payment and for all pending items created from the payment. You can override the date on the Regular Deposit - Payments page. The system validates the accounting date to make sure it falls within the open period for the business unit and transaction type as defined on the Open Period page for the business unit.
Deposit Type	Displays the default deposit type for the bank account that you defined on the External Accounts - Account Information page. Override the value if needed.
Control Currency	Enter a currency code if the same currency is used for all of the payments. Note. Specifying a control currency at the deposit level is optional. If you enter currency at this level, all payments in the deposit must then have this same currency. To take advantage of multicurrency processing, leave control currency blank and specify currency at the payment level. The next page in this component, Payments, enables you to enter a different currency for each payment in the deposit.
Format Currency	Select the display currency.
Rate Type and Exchange Rate	If you enter a control currency, you can adjust these fields as needed. Realized gain and loss calculations are not affected by changing the rate type or exchange rate on the deposit or payment pages. The appropriate way to change the exchange rate for the realized gain and loss calculations is to change the market rate. The exception to this is when the base currencies of the item and payment are the same and when the entry currencies of the item and payment are the same.
	Click the Exchange Rate Detail button to access a page where you can view or modify the exchange rate.
Control Total Amount	Enter the control totals for the amount and count of the payments in this deposit. You can have a zero-total deposit if the payment amounts offset each other.
Entered Total Amount and Difference Amount	These fields display the amount and count of the payments that you have entered and the difference between the payments entered and the control totals. If the control and entered totals and count are not the same, you cannot apply any of the payments. Balancing these control totals is a necessary first step in payment application.
Posted Total Amount and Journalled Total Amount	These fields display the amount and count of payments that are applied and posted, or directly journalled.
Received and Entered	Enter the date when either the bank or your company received the payment. Because of normal processing delays, this date may be different from the entered date.
User	Displays the user ID of the individual assigned to the deposit. If you received an electronic deposit, the Payment Loader process (AR_PAYLOAD) assigns the user ID of the individual who created the run control ID for the process. If another user modifies the deposit in the Regular Deposit component (PAYMENT_ENTRY), the system automatically changes the user ID to that person's user ID.

Deposit Balance	Displays the deposit status, when the amount total and number of entered payments equals the control amount and count from the Express Deposit - Totals page, the status changes from No to Yes.
Control Total Amt (control total amount)	Displays the control totals entered on the Express Deposit - Totals page.
Entered Total Amt (entered total amount) and Difference Amount	Displays the amount of the payments that you have entered and the difference between the payments entered and the control totals. If the control and entered totals are not the same, you cannot apply any of the payments. Balancing these control totals is a necessary first step in payment application.

	Click the Create button to create the cash line for a direct journal payment.
	Click the Delete button to delete journal lines.