How To Set Up and Process Positive Pay (R04586, P007101)

Purpose

Overview

To prevent fraudulent check activity Positive Pay can provide this protection for companies by allowing them to create a file of check information that their banking institutions can use when determining whether to issue payment for checks. When you use positive pay, you create a file for your bank that includes information for each check that you printed during the day, such as check number, date, amount, and account number. The bank compares the information on the checks that they receive with the information in this file, and if the information for any of the checks does not match the file, the system does not pay the checks.

To use Positive Pay process within JD Edwards EnterpriseOne Accounts Payable you run the Generate Positive Pay Text File program (R04586) to create the text file that you send to the bank. After you run this program, you use the Text File Processor program (P007101) to copy the text file to a specified location on your PC. After the text file has been copied to your PC, you can save it in the format required by the bank. Before you run this UBE make sure to do the following prerequisites:

• Verify that you have updated all payment groups.
• Verify that you have entered all manual payments.
• Verify that you have voided all necessary payments.
• Verify that you have entered a bank account number and a transit number for each bank account for which you want to use positive pay.

Scope

This document is intended for users who are setting up or using the Positive Pay functionality.

Details

Confirm Payment Bank Account (P0030G)

This is on G04411 and should already be created if you are creating payments. This bank account will show as Record Type G "Internal G/L Bank Account" in the F0030. See FAQ number 4 below for full details.

How To Create a Positive Pay Text File (R04586)

At the end of each day, run the Generate Positive Pay Text File program (R04586) to create the positive pay text file to submit to your bank.

When you run this program, the system selects payment records from the Accounts Payable Matching Document table (F0413) and populates the Text Processor Header table (F007101) and the Text Processor Detail table (F007111) with information from these payment records. When selecting records from the Accounts Payable Matching Document table (F0413), the system selects only records that meet the following criteria:

• The Payment Date (data dictionary item DMTJ) is prior to or equal to the date specified Processing Option 1: Through Date of the Generate Positive Pay Text File (R04586) program.
• The value in the Positive Pay Flag field (data dictionary item GFL7) is blank (for payments that have not been voided). If the system includes the payment in the text file, the Positive Pay Flag (GFL7) is set to 1 to avoid it from being included in subsequent runs of the Generate Positive Pay Text File program (R04586).
• The value in the Positive Pay Flag (GFL7) is set to 2 to indicate a voided payment. A value of 2 indicates that the payment was voided after being included in a positive pay text file. The system includes this payment in the text file as a stop payment. This will avoid it from being included a subsequent Generate Positive Pay Text File program (R04586).

The system creates one header record in the Text Processor Header table (F007101) for each bank's positive pay text file and includes:

• Record Type Code - This code indicates whether the record is a header, detail, or trailer record. A value of 1 indicates that the record is a header record, a value of 2 indicates that it is a detail record, and a value of 3 indicates that it is a trailer record.
• Bank Transit/Routing Number.
• Company Name- The system uses the value specified in the Company Name processing option for the Generate Positive Pay Text File program.
• Creation Date.
• Creation Time.

The system creates one detail record in the Text Processor Detail table (F007111) for each payment in a positive pay text file and includes:

• Record Type Code.
• Bank Account Number.
• Check Number.
• Payee Name - The system uses the value specified for the Payee Name processing option for the Generate Positive Pay Text File program.
• Check Amount.
• Currency Code.
• Check Date.
• Void Date.
• Status.

The system also prints a report listing the information that was created in the Text Processor Header (F007101) and Text Processor Detail (F007111) tables. This report can be used as a key when reviewing the data in the positive pay text file.

Processing Options for R04586

Process Tab

• Processing Option 1: Through Date - Use this processing option to specify the through date for positive pay processing. The system processes all payments dated through this date that have not been previously included in a Positive Pay file. If you leave this processing option blank, the system uses today's date.
• Processing Option 2: Company Name - Use this processing option to specify the name that is used as the company name in the Positive Pay text file. Valid values are:
• Blank - Use the name for the company specified in the Company Constants table (F0010).
• 1 - Use the value specified in the Alpha Name field in the address book record for the
  company.
• 2 - Use the value specified in the Mailing Name field in the address book record for the
  company.
• Processing Option 3: Payee Name - Use this processing option to specify the name that is used as the payee name in the Positive Pay text file. Valid values are:
• Blank - Use the value specified in the Alpha Name field in the address book record for the payee.
• 1 - Use the value specified in the Mailing Name field in the address book record for the payee.

Data Selection

This has a default setting of Document Type - Matching (F0413) Is Equal To PK, PN.

Data Sequencing

The data sequencing is pre-set within the below values and should not be changed.

Report Example

After R04586 is completed notice how the GFL7 field has been updated:

Copying Positive Pay Text Files (P007101)

After running the Generate Positive Pay Text File program (R04586), use the Text File Processor (P007101) to copy the text file to a specified location. After the text file has been copied, it can be saved in the required format and transmitted to the bank. To copy positive pay text files:

1. From the Automatic Payment Processing menu (G0413), choose Text File Processor or from the Manual Payment Processing menu (G0412), choose Text File Processor.
2. On Work With Text Batches, click Find to display all text files, or enter information in the following fields to narrow your search, and click Find:
• User ID
• Batch Number
• Transaction Number
3. Choose the text file that you want to copy.
4. Select Row Exit
5. Select Process Batch
6. Select Copy Text option
7. On the Copy Text To Text File (W007101B) form, select one of the following:
• New file/Override existing file
• Append to existing file
8. Enter a file path and file name for your text file in the following field:
• Destination Text File Path and Name:
• See frequently asked questions knowledge FAQ - Frequently Asked Questions Regarding Text File Processor (P007101).
9. Click OK to complete the process.

Text File Processor Processing Option

Use this processing option to override the location of the Microsoft Word template to be used during creation of the text file. The ActiveX copy text creates a Microsoft Word document based on the normal.dot template, which is normally located in c:\Program Files\Microsoft Office\Templates\normal.dot. If your Microsoft Office objects have been installed in a different path, you need to enter the correct path for the location of the normal.dot template.

This processing option is only used when running positive pay locally. As of release 9.0, the process is typically run on the server.

Frequently Asked Questions

Question 1: Invalid Characters inserted in Positive Pay Text File, why?

Answer 1: Update the P93081 by adding the P007101. Text File Processor and ran the application. The file looks correct now.

Question 2: When Copying the the Text to Text File the resulting file is not readable or it has spaces after each character, why?

Answer 2: Starting with release 8.9 the default the text encoding for JDE is UNICODE. UNICODE characters are encoded on two bytes. One byte is zero and the other is the ASCII code of the character. Some text editors do not know how to show UNICODE characters and that is causing them to show blanks or invalid characters. Alternately the normal encoding for AS400 is EBCDIC which is not readable on Windows or Unix platforms. To solve such issues the Flat File Encoding Configuration (P93081) was introduced through which it is possible to specify the desired encoding for specific programs/users/roles. The normal encoding for Windows/ Unix for English language is CP1252. See more on how this can be achieved in E1: TC: Flat File Encoding Configuration P93081 starting with EnterpriseOne 8.9.Knowledge Flat File Encoding Configuration P93081 starting with EnterpriseOne 8.9.

Question 3: If pre-note is selected in the Supplier Master, will checks be included in the Positive Pay file?

Answer 3: When pre-note is checked on the Supplier Master, the system creates a check and a test EFT file if using an EFT/ACH print program. The Generate Positive Pay Text File (R04586) UBE reads data from the F0030G (GL Bank Account) and F0413 (Payment Header) tables and populates the Text Processor Header table (F007101) and the Text Processor Detail table (F007111) with information from these payment records. There is no difference between a check that is created in this way, or a check that is created during a ‘true’ check payment run. Therefore, a check created because of the prenote flag is included in a Positive Pay file.

Question 4: What could cause the Positive Pay Report (R04586) to print "No Data Selected" and not process correctly?

Answer 4: This could be caused by a variety of issues, including the data selection used. If your data selection is correct, please ensure the following:

1. Verify that you have updated all payment groups.
2. Verify that you have entered all manual payments.
3. Verify that you have voided all necessary payments.
4. Verify that you have entered a bank account number and a transit number for each bank account for Record Type "G" for which you want to use positive pay.

Please do the following in order to add Record Type "G" for the Bank Information:

1. Open Work With G/L Bank Accounts P0030G application.
2. Click on Add.
3. Enter account details and click ok to save. A record will be created in F0030 table at this point of time for Record Type G.
4. In P0030G inquiry, inquire upon the recently added account record.
5. Select the record, Row-exit --> Bank Info.
6. Specify the requisite details and click to save.