Batch Payment Entry/Online Entry

Drafts can be applied in both the Batch Payment Entry and the Online Entry Programs.  The payment number entered is the draft number.  For bill of exchange payments, the draft status must be 'submitted to acceptance'.  Upon successful completion of the payment, this status will automatically be set to 'accepted'.

The figure below illustrates the Payment and Application screen (AR120S01).  For bill of exchange payment, upon entering the customer, payment type, payment number, payment company, and payment location, the online program will automatically default in the payment due date, payment amount, and bank remittance information for the draft.  In  addition, for a draft created through Draft Consolidation, the limit to statement number is defaulted; otherwise, the Apply To Specific fields are defaulted with the open item that is associated with the draft.  For a manually created draft, you must decide which open items that you want the draft to be applied to.   

 WILLIAMS                PAYMENT ENTRY AND APPLICATION                   5/01/95

 DSP01                            PAYMENT HEADER                         HEADER

                                                                                

 Customer         ACME        001 BRU         Pay Date         010695          

 Payment          CK  00000056                Acct Date        010895          

 Bank Code        B1  001 BRU                 Due Date                         

                                              New Acct Date                    

 Payment Amount              100,00           Currency Code   BEF              

 Batch                                        Exch To Bank       1,00000       

 Book Code        AR                          Exch To A/R        1,00000       

 Corporate List      N      Limit to Ship-to                                   

 Limit to Pmt Cur    N      Doc Cur Code                                       

 Open Item List      Y      Limit To Co/Loc   N            Statement           

 Apply To Specific   N      First Co/Loc/Doc                            Pay    

 Place on Account    N      On Account Cust                                    

 Apply to Oldest     N      Bank Name                                           

 Mass Entry          N      Bank Address                                       

 List Open Only      Y      Bank Number                                        

 Sort Sequence       D      Bank Account                                       

 Remittance Type            Customer Ref                                       

                                                                               

                                         F4=Prompt                              

                                                                               

Bills of exchange can be applied to any open item, not just the one created with the draft.  To apply a draft to a specific open item, you must enter a 'Y' in the Apply to Specific field.  If you want to view a list of open items to see where you want to apply the draft, you must enter a 'Y' in the Open Item List field.  If you want to apply the draft to the oldest open item, enter a 'Y' in the Apply to Oldest field. The payment or a portion of the payment may be placed on account.  A payment at gross applies payment to the total open item amount.  A payment at net grants the customer a discount for early payment and a payment at detail allows a partial payment against an open item. 

Upon successful application of the payment, for draft payments and non-draft payment with a bank remittance procedure, a remittance record is created.  This record is used to track the payment through the remittance process.  At the same time, the drafts receivable/payment awaiting remittance is debited and the accounts receivable account is credited.  In addition, for bill of exchange payments, the Draft Master File is updated with any changes made to the due date and the payment amount.

Draft payments can be voided by zeroing out the payment entry amount.  By doing so, for bill of exchange payments, the amount of the draft is also reduced accordingly on the Draft Master File (DMDRFP).