How To Create Automatic Payment Control Groups (R04570)

Purpose

Overview

You use automatic payments to group vouchers and produce multiple payments in a single payment run.

Automatic payment processing enables you to manage your payments efficiently and take advantage of favorable discount terms whenever possible. Use automatic payment processing to pay vouchers during your usual payment cycle.

After you process your vouchers, you can prepare to write your payments. Before you write payments, you must create payment groups to organize vouchers that can be paid together. For example, you can organize vouchers by bank account and payment instrument in separate groups. Then, the vouchers can be paid with the proper check stock. You use the payment groups when you review and write payments.

The Create Payment Control Groups program is a batch process that you run once for each payment cycle.

When you create payment groups, the system populates these temporary tables:

• A/P Payment Control Group (F04571).
• A/P Payment Header (F04572).
• A/P Payment Detail (F04573).

Because the system stores the payment group information in temporary work tables, you can revise payment groups, split payments, revise value dates, and undo payment groups without affecting the Accounts Payable Matching Document (F0413) table and the Accounts Payable Matching Document Detail (F0414) table.

Scope

This document is intended for users who are creating payments through the Automatic Payment Process.

Details

Automatic Payment Processing

Automatic payments are used to group vouchers and produce multiple payments in a single payment run. Automatic payment processing enables you to manage your payments efficiently and take advantage of favorable discount terms whenever possible. Use automatic payment processing to pay vouchers during your usual payment cycle.

This graphic shows the process for automatic payment processing:

During automatic payment processing, the system works with these document types:

• Voucher document type:
• PV (voucher)
• PR (recurring voucher)
• PL (voucher logging)
• PD (debit memo)
• PM(voucher without match)
• XX (user-defined voucher type)
• Payment document type
• PK (automatic payment)

During automatic payment processing, the system works with this batch type:

• Batch type K (automatic payment)

This graphic shows the programs you use to process payments:

Prerequisite Set Up for Automatic Payment Groups

For information on the prerequisite set up for using Automatic Payment Processing, please see Overview Of Automatic Payment Processing Within EnterpriseOne Accounts Payable.

Understanding Create Payment Control Groups (R04570)

The Create Payment Groups (R04570) program selects open vouchers to be paid. Only vouchers with a Pay Status (data dictionary item PST) of A (Approved) are selected. the Speed Status Change (P0411S) application can be used to update a voucher's Pay Status (PST) from H (Held) to A (Approved).  The processing options and data selection of the Create Payment Control Groups (R04570) should be used to limit the selection of vouchers to be paid. After a voucher is selected for a payment control group, its Pay Status (PST) is changed from A (Approved) to # (Payment in Process).  The Create Payment Control Groups UBE (R04570) updates three temporary work files.

• A/P Payment Control Group File (F04571) This file contains a single group record for each payment control group. After the Create Payment Control Groups (R04570) executes successfully, a record is added to the AP Payment Control Group table (F04571). Each record is assigned a unique Payment Group Control Number (data dictionary item HDC).  The Number of Payments at Update Status field (data dictionary item UPYT) keeps track of how many payments are ready to be completed by going through the update status. When payment groups are at a Write (WRT) status, this field is set to 00000. After payments are written, this field holds the number of payments in an Update (UPD) status.
• A/P Payment Header File (F04572)  This file stores a record per payment in the payment control group. It is likely that one record in AP Payment Control Group (F04571) has several corresponding records in the AP Payment Header File (F04572).The Pay Status (data dictionary item PST) field in this table correlates to it's status in the automatic payment process.   When a payment group is at a WRT status, this field is set to #. After a payment group is written, the Pay Status is changed to *.
• A/P Payment Detail File (F04573) This file contains individual payment detail records based on Document Number (data dictionary item DOC). Data in this file remains unchanged regardless of the payment group status (WRT or UPD).  After a payment control group is updated, the data from the temporary worktables is used to create payment information in the Accounts Payable Matching Document (F0413) and Accounts Payable Matching Document Detail (F0414) tables. The system subsequently removes the data from the temporary worktables for this payment group. 

Key Factors For Including Voucher(s) In a Payment Group

• Processing Options and Data Selection:
  
  • Verify Bank Account setting in Processing Option 3: GL Bank Account on the Printing tab.
  • Verify Company Number is correct in the data selection.
  • Verify GL Posted Code (POST) equal to D has been included in the data selection to prevent unposted vouchers from being included.
  • Verify On the Dates tab, Processing Option 1: Pay Thru Date is equal to or greater than the voucher due date.
  • Verify Pay Status (PST) equal to A stays on the Data Selection, the UBE is dependent on this setting.
• Verify if Payee Control record exists for the voucher (P0450) and approve before creating the payment group.
• Verify if the batch status for this voucher is 'In Use' status, even if the voucher meets the selection criteria, it will not be selected for payment.

Setting Data Sequence for Create Payment Control Groups (R04570)

The Create Payment Control Groups (R04570) program sequences payments within payment groups using a default sequence and the settings in the processing options. It is recommended that you not change the Data Sequence for the Create Payment Control Groups (R04570) UBE.

The system creates a new payment group when it encounters a change in any of the following values as it reads the records:

• Payment Instrument (PYIN)
• G/L Bank Account (GLBA) (optional) - The system uses the G/L Bank Account field unless you have entered a G/L Bank Account override on the Printing tab of the processing options.
• Business Unit (MCU) (optional) - The system uses the Business Unit field only if you have completed the Business Unit processing option on the Process By tab of the processing options.
• Currency Code (CRCD)

Within the payment groups, the system creates a new payment when it encounters a change in any of these values as it reads the records:

• Payment Handling Code (CRC)
• Payee Number (PYE)
• Company (CO) (optional) - The system uses the Company (CO) field only Processing Option 1: By Company on the Process By tab is set to 1.
• Statement/Control Number (CTL) (optional) - The system uses the Statement/Control Number (CTL) field only if either or both of the following situations are met:
• Processing Option 2: Print Contract Number on the Report tab is set to 1 and the Payment Creation option on the payee's Supplier Master (F0401) record is set to By Contract (C).
• Processing Option 3: Print Job Number on the Report tab is set to 1, the Payment Creation Option on the payee's Suppler Master (F0401) record is set to By Contract (C), and the Business Unit Type (STYL) of the business unit on the voucher is Job Cost (JB).
• Purchase Order Number (PKCO) (optional) - The system uses the Purchase Order Number (PKCO) field only if the Processing Option 2: Print Contract Number on the Report tab is set to 1 and the Payment Creation option on the payee's Supplier Master (F0401) record is set to By Contract (C).
• Address Number (AN8).
• Due Date (DDJ) (optional) - The system uses the Due Date (DDJ) field only if Processing Option 2: Due Date on the Process By tab is set to 1. 

The system also creates payments within payment groups based on the Payment Creation (SCK) option on the payee's Supplier Master (F0401) record. For example, if The Payment Creation (SCK) field is set to N (By Supplier) and that supplier is listed on vouchers for three different suppliers in the payment group, the system generates three payments for that payee.

Important: The sequence for creating payment groups and payments is separate from the sequence for printing payments using the Write process. The sequence for printing payments using the Write process is determined by Processing Option 1: Sequence ID on the Printing tab of the Create Payment Control Groups (R04570)program. This processing option does not affect the sequence of creating payment groups.

Number of Payment Groups

One payment group is generated when vouchers have the same:

• Special Handling Code (CRC): The Special Handling Code is recorded when the voucher is created. Speed Status Change (P0411S) can be used to change this value.
• Payment Instrument (PYIN): The Payment instrument defaults from the Supplier Master at time of voucher entry and can also be changed in Speed Status Change (P0411S).
• GL Bank Account (GLBA): The G/L Bank Account is either entered manually on the voucher or defaulted from Automatic Accounting Instruction ( AAI) PBxxx or PByyyy. The bank account can be changed in Speed Status Change (P0411S) or overridden by the G/L Bank Account processing option on the Printing tab of R04570.
• Voucher Currency Code (CRCD): The voucher Currency Code is held on the Accounts Payable Ledger (F0411) record and is captured on entry by default of the Supplier Master (F0401) or overridden at entry time and cannot be revised.
• Company (CO): Used if the Company processing option on the Process By tab is activated.
• Business Unit (MCU): Used if the Business Unit processing option on the Process By tab is activated.

The voucher's Currency Code (CRCD) is stored in the Accounts Payable Ledger (F0411) record and is populated during voucher entry and cannot be revised.

Factor/Special Payee Payment Processing

Checks are remitted to the Address Book number as indicated in the voucher (F0411) Payee field (data dictionary item PYE). The Payee field is populated when the voucher is created.  The system either populates this field with the supplier number (data dictionary item AN8) or with the Alternate Payee number as set up in the Supplier Master (P04012). Processing Option 5: Alternate/Payee on the Defaults tab in the Voucher Entry Master Business Function (P0400047) determines how the field is populated during voucher creation as follows:

• Blank - Enter the supplier number into the Alternate/Payee field
• 1 - Enter the Factor/Special Payee address into the Alternate/Payee field

The Payee field can be updated on existing vouchers through the Speed Release application (P0411S).

Understanding Create Payment Control Group with Multi Currency

Processing Option 4: Payment Currency on the Printing tab of Create Payment Control Groups ( R04570) determines which currency is used for multi-currency payments. One of the following methods can be selected:

• Blank: Bank Account Monetary Unit
• 1: Voucher Domestic Currency
• 2: Voucher Foreign Currency
• 3: Voucher Current Domestic Amount
• 4: Alternate Currency Payment

 An explanation of each option and examples of the functionality are included below.

Bank Account Monetary Unit

When Processing Option 4: Payment Currency  is Blank, the payment is determined by the the GL Bank Account (GLBA) of the voucher in the Accounts Payable Ledger (F0411). If the bank account is a non-monetary account, the payment is made in the currency assigned to the company. If the bank account is a monetary account, the payment is made in the currency assigned to the bank account.

If there is a difference in the exchange rate for the date the voucher was created and the date it is paid, a gain or loss is calculated.

Voucher Domestic Currency

If the Processing Option 4: Payment Currency  is 1 (pay in the Voucher Domestic Currency), the payment is made in the domestic currency of the voucher.

*Because it is not possible to make a USD payment out of a GBP bank account, a payment is not created.

No gain or loss is generated because the exchange rate of the payment is the same as the exchange rate of the voucher.

Voucher Foreign Currency

When the Processing Option 4: Payment Currency is 2 (pay in the Voucher Foreign Currency), the payment will be made in the foreign currency of the voucher.

If there is a difference in the exchange rate for the date the voucher was created and the date it is paid, a gain or loss is calculated.

Voucher Current Domestic Amount

If Processing Option 4: Payment Currency is 3, the payment is made in the domestic currency of the voucher using today's exchange rate as defined in the Currency Exchange Rates table (F0015).

If there is a difference in the exchange rate for the date the voucher was created and the date it is paid, a gain or loss is calculated.

Alternate Currency Payment

If Processing Option 4: Payment Currency is 4, the payment is not made in the domestic or foreign currency, but in a third (alternate) currency.

In Examples 3 and 6, Processing Option 5: Currency Disagreement on the Currency tab of the Voucher Entry Master Business Function (P0400047) should be set to 1  to allow the voucher to be created using a Euro monetary account. If Currency Disagreement is not allowed, a Bank Currency Code Incorrect error is issued when entering either of these vouchers. Alternatively, Processing Option 3: GL Bank Account on the Printing tab of Create Payment Group (R04570) can be used to override the vouchers' original GL Bank Account with the Euro monetary account. 

If there is a difference in the exchange rate for the date the voucher was created and the date it is paid, a gain or loss is calculated.

BACS and EFT Create Payment Control Group Set Up

When creating payment groups using either Electronic Funds Transfer (EFT) or Bank Automated Clearing System (BACS) formats, consider the following processing options on the Bank Tape tab of Create Payment Control Groups (R04570):

• A value of 1 in Processing Option 1: Print Bank Tape Information has the bank tape information printed on the PDF report.
• A value of 1 in Processing Option 2: Payee Bank Account Error prevents a supplier from being included in a payment group if no bank account is defined. In this scenario, an error is printed on the PDF of the Create Payment Control Groups (R04570).
• A value of 1 in Processing Option 3: Bank Account X12 Information Error prevents the creation of a payment group if the GL Bank Account has no X12 information. In this scenario, an error is also printed on the PDF of the Create Payment Control Groups (R04570).

How to Use Different or Separate GL Accounts to Track EFT Payments

Follow these steps below:

1. In the P0417(Work with Payment Instrument Defaults) set the GL Bank Account as the desired account.
2. Set the same account in P0030G(Work with GL Bank Accounts).
3. Proceed to create a  Payment Group.
4. In PO of R04570- Enter the required GL Bank account ID in item no 3. G/L Bank Account for the Printing Tab.
5. Write and Update the Payment.
6. Post the Payment Batch.Make sure that the entries are pointing to the new account.

Understanding Payment Groups for Vouchers with Discounts

The Create Payment Control Groups program (R04570) has several processing options used to control how the system selects vouchers and processes discounts:

• Processing Option 1: Pay Through Date - Use this processing option to specify a due date through which you want to create a group of vouchers for payment. For example, if you want to create a payment group consisting of vouchers with due dates through March 15, 2005, enter 03/15/05. The system creates a payment group consisting of vouchers with due dates on or before March 15, 2005. Enter the date in this processing option, or leave the processing option blank to select vouchers by Displacement Days.
• Processing Option 2: Displacement Days - Use this processing option to specify the number of days from today's date through which you want to create a group of vouchers for payment. For example, if today's date is March 10, and you specify three displacement days, the system includes vouchers with due dates through March 13 in the payment group.
• Processing Option 3: Discount Cutoff Date - Use this processing option to enter the absolutely last day that the system should allow discounts to be taken. Pay items with a due date prior to the date entered are not eligible for discounts. If this processing option is blank, the program takes all discounts available regardless of the due date.
• Processing Option 4: Prohibit Payment Before Due Date - Use this processing option to specify whether the system should include vouchers for payment if the discount due date of the voucher has passed but not the net due date. Valid values are:
• Blank: Include vouchers for processing even if the value in Processing Option 1: Pay Through Date is after the voucher's net due date.
• 1: Do not include vouchers for processing if the value in Processing Option 1: Pay Through Date is after the voucher's net due date.

It is not possible to adjust or add a discount during the Create Payment Control Groups process (R04570). Discount adjustments to a payment must be done on the voucher prior to creating a payment. If the voucher has already been included in a payment control group, remove the voucher from the payment group using the 'Undo' function from the Row Exit menu in Work with Payment Groups application (P04571).

• To add a discount to a voucher:
• Inquire on the voucher in Standard Voucher Entry application (P0411).
• Revise the payment terms to a payment term which includes discounts. If previously populated, clear the discount amount and discount due date fields. The new discount amount and discount due date values will be calculated based on the newly entered payment term.
• To reduce the amount of a discount:
• Open the Speed Release/Speed Status Change application (P0411S).
• Inquire on the voucher and adjust the discount amount. Discounts cannot be increased using this application.

The following image shows an example for using Processing Option 3: Discount Cutoff Date:

Examples of Discount Processing

Example 1: Take discounts only up to the discount due date

1. Determine the number of days it takes to complete the payment process and send payments (+ payment transit days based on company policy).
2. Processing Option 3: Discount Cutoff Date should be set to the day of the payment control group run plus the number of days determined in step 1.
   • If assumption is that the discounts can be taken as of the date of the batch run, the cutoff date would be set to the date of the run (not left blank).

Results

Only those discounts where the payment is sent and/or received by the supplier by the due date will be taken (discount due date after or equal to the value in Processing Option 3: Discount Cutoff Date). All other vouchers where the discount due date is before this value are paid in full (no discount).

Example 2: Take discounts up to n days after the discount due date

1. Determine the number of days it takes to complete the payment process and send payments (+ payment transit days based on company policy).
2. Processing Option 3: Discount Cutoff Date should be set to the day of the payment control group run plus the number of days above minus n days

Results

Only those discounts where the payment will be sent and/or received by the supplier by n days after the due date will be taken (discount due date after or equal to the value in Processing Option 3: Discount Cutoff Date). All other vouchers where the discount due date is before this value are paid in full (no discount).

Example 3: Take all discounts regardless of the due date

• Processing Option 3: Discount Cutoff Date is blank.

Results

All discounts are taken for all vouchers in the run.

Understanding Next Numbers for Create Payment Control Groups

When running the Create Payment Control Groups (R04570) program, the system assigns the payment group a unique number to identify the payment group in the three worktables that are used in the payment process (F04571, F04572, and F04573). This number prevents payments in one payment group from being combined with payments in different payment groups.

The JD Edwards EnterpriseOne Accounts Payable system uses the Next Numbers (F0002) table to assign these payment group numbers. The Next Numbers (F0002) table is locked when a number is being assigned to one payment group and is released after a payment group has been assigned its identifying number. The Next Numbers (F0002) table increments until it reaches its maximum (a number greater than 99 million) and resets the next number for payment control groups to 1.

Printing Payment Attachment (R04573)

Accounts Payable (A/P) check attachments are generated automatically if the following two conditions are met:

1. Processing Option 2: Print Attachments on the Printing tab of Create Payment Control Groups (R04570) is set to 1.
2. The number of detail lines on the payment stub exceeds the value indicated in the Bank Account Information (P0030G).

In the pristine versions of the check print programs, each pay stub can print a maximum of 10 detail lines. A total of 99 pay stubs can print per payment. When Processing Option 2: Print Attachments on the Printing tab of Create Payment Control Groups (R04570) is set to 1, a single payment prints with one pay stub referring to the attachments. The attachment prints all pay items.  To print attachments, an attachment program must be assigned to the Payment Instrument (PYIN) being used. In the Payment Instrument Defaults application (P0417), select a payment instrument. Indicate a program number in the Attachment Print Program (PGMA) field. The default attachment program is R04573.  If Processing Option 2: Print Attachments on the Printing tab is Blank, detail lines that do not fit on the first check stub are printed on subsequent check stubs until the total number of detail lines are printed. The final check reflects the check total. Prior checks are recorded as void payments.

Use Different Attachment Version

It would be required to specify the desired version for R04573 report for the correct Payment Instrument and GL Bank Account setup in P0417 application. In order to override the version for existing Payment Control Groups, consider the following:

1. Open the Work with Payment Control Group (P04571) application.
2. Select the Payment Control Group and Row-Exit --> Controls.
3. Specify the desired version for R04573 report and click ok to save changes.

Summarize Printing Payments

There are two processing options in the Create Payment Control Groups UBE (R04570) that determine if pay items are summarized during printing:

• Summarized Pay Item - Use this processing option to specify whether to summarize pay items within a document on the pay stub or attachment. When you set the processing option to summarize pay items, the Due Date processing option on the Process By tab must have a value of '1'. Valid values are:
• Blank - Do not summarize pay items
• 1 - Summarize pay items
• Summary Description - Use this processing option to specify the information that appears in the Description field on the pay stub. Valid values are:
• Blank - The generic description 'Invoice Summary' appears on the pay stub
• 1 - The remark from the first pay item appears on the pay stub.

Frequently Asked Questions

Question 1:  Why are the outputs from the Create Payment Control Groups report (R04570) and the Cash Requirements report (R04431) different?

Answer 1:  The two reports yield different results when the data selection does not match exactly. Another possible cause is that a processing option for one of the reports excludes vouchers based on specific criteria, while the other does not. Ensure the data selection and processing options on both reports are set to retrieve the same data and re-run the reports.

Question 2:  Can the data sequence be modified in the Create Payment Control Groups UBE R04570?

Answer 2:  Changing the data sequencing on this UBE can cause unpredictable results. It is not recommended that the standard data sequencing be changed.

Question 3:  Does the Sequence Review (P0415) determine the print sequence of the Create Payment Control Groups report (R04570) output?

Answer 3:  The Sequence Review (P0415) is only used to determine the print sequence of checks. The Create Payment Control Groups report (R04570) has its own data sequencing that will determine how the output is printed.

Question 4:  How does the Create Payment Control Groups report (R04570) distinguish prepayment vouchers from debit notes?

Answer 4:  When creating a prepayment voucher, the Miscellaneous Code - A/R and A/P (RP1) field in the Supplier Ledger table (F0411) is populated with a value of 1. The Prepayment Selection application (P0411P) uses the value in the Miscellaneous Code field to determine how to process each prepayment record.

Question 5: Why are debit memos not netting with positive vouchers?

Answer 5:   Verify the following information and set up to ensure that vouchers (document type PV) and debit memos (document type PD) net correctly:

• Each voucher and debit memo for the supplier contains the same key information. For example: GL bank account, payment instrument, currency code, payee, etc.
• The due dates for the vouchers and the debit memos fall within the date specified in Processing Option 1: Pay Through Date on the Dates tab of the Create Payment Control Group (R04570).
• In the Supplier Master (P04012) under the Payment Creation section, the selection By Supplier radio button (data dictionary item SCK) must be checked. The value stored in the Supplier Master table by this action will be F0401.A6SCK = ‘N’. With this setting, all debit memos and vouchers for that supplier will be put into the same payment.
• The Create Payment Control Group (R04570) data sequencing has not been modified.
• The Create Payment Control Group (R04570) data selection is not set to BC Amount - Gross (F0411) is greater than <zero> to prevent the selection of debit memos.
• If the Due Date processing option is set to blank, separate payments will not be created for the a PD(Debit Memo) and a PV(Voucher).   One payment will be created.