Payment Processing

The process

The key payment processing activity, schedule processing makes regular, automated payments to suppliers.

These payment runs are performed automatically by background processes, Accounts Payable and General Ledger being updated and a BACS file produced.

The system can also automatically select which transactions are included within this payment run or, conversely, as much user control and flexibility as is required can be built into the process.  Schedule Processing revolves around the payment schedule.  A payment schedule consists of a list of invoices to be paid; basically, the schedule can be thought of as a vehicle onto which invoices are loaded and driven through the payment cycle.

1. Create Payment Schedule

To access the Payment Schedule screen: Accounts Payable – AP Processes – Payment Processing – Create Payment Schedules.

CLDAPPY1

Bank Account Details Update – Checks for changed Bank Details for a Supplier.

AP Further Match – Tran/GRNs/Invoice/Credit Notes – Checks for Invoices Held, attempts re-matching.

AP Suspend/Release – Checks for any Suspended Invoices that are due for release.

AP Schedule Deletion – Previous Payment Schedule is deleted.

AP Schedule Creation – Current Schedule created.

Schedule Fill – Current Schedule is filled with the payments.

GH4 holds the Look Ahead Days, if this needs to be edited, it can be changed here.

Click on Submit at the bottom of the page.

Click on Submit again to Confirm.

At this point, wait, do not open Schedule Maintenance immediately. Check that all processes have been completed in Task Queue Controller.

Open up the Spool, a Payment Processing Report will be sat there for review. Double click to open or open by clicking on the Paperclip icon. Note: you can view all reports from the View Payment Run Reports option.

2. Schedule Maintenance

To access the Schedule Maintenance screen: Accounts Payable – AP Processes – Payment Processing – Schedule Maintenance

Click on OK to retrieve the list.

The schedule has now been built and the status will be set as ‘Awaiting Update’.

To view a Summary of the contents of the Schedule

Right Click on the Schedule and choose Edit – View. Use the EXIT icon to get back to the schedule list.

To review a list of the Suppliers and Payments included in the Schedule

Highlight the Schedule and click on the Suppliers button at the bottom of the page.

The grid will be blank, so click on Retrieve at the bottom of the page, the following will then pop up. 

Click on Retrieve again to load everything that is part of the Schedule.

To pay all of the suppliers on the schedule you can click on the Pay Print button.

To pay one supplier and all transactions use the Pay button.

Removing a Supplier from the Schedule

Right-click on the supplier and choose Pay – No Pay

Removing an Invoice/Invoices for a Supplier from the Schedule

Highlight the entry that hold multiple Invoices and choose Edit – Amend.

Right click on the transaction that needs to be removed and choose Trans – No Pay.

Changing the value of an Invoice to be paid from the Schedule

Edit the Gross Payment field to be the value that should be paid. Once changed, right-click and choose Trans – Amend and Pay.

Once changes have been made, click on Update at the bottom of the page.

Adding a Supplier into the Schedule

Click on the Insert icon from Schedule Suppliers Maintenance screen (MGGC)

Enter the Supplier code and either select the ALL button - this bring on all transactions valid to paid whether due or not. Or, select DUE button to only retrieve due transactions on the supplier account.

Pay the transactions on the supplier account by any action explained above.

After all changes have been made to the Schedule, click on Update at the bottom of the page, you can add in another supplier or click on the Exit icon followed by Exit again to return to the list.

If all suppliers are updated click on the EXIT icon, the Schedule Status will now show as ‘Update Complete’.

3. Payment Request

This is the final stage of the payment run.

Within Schedule Maintenance, click on Request at the bottom of the page.

The Bank Details will now be displayed as well as the Payment Date and Proposed Value, ensure that this is all correct.

Once checked, click on Update at the bottom of the page.

The payment schedule will have a new status of Unapproved. (note approvals may not be in use for your company, if this is the case go to step 4)

A task is then sent to the approver(s) Example is in Task Manager, this could be email or diary message in Financials.

Approval

To approve the schedule, access the Schedule list screen.

Menu access:

Accounts Payable>AP Processes>Payment Processing>Schedule Maintenance, click on OK to retrieve the schedule.

Click on the Approval button.  The approver can view the details of the schedule and see which supplies have been PAID, NO PAY or DETAIL PAID.

Click on the Amend button to view details of each supplier.

Clicking the Details button will take you the AP enquiry screen where you view the invoice image. Use the Exit icon until you return to the summary list screen.

When you are ready to Approve, click on the Approve button on the summary screen.

The status of the schedule is now Payment Requested.

The Payment Run can now be submitted by selecting the Update Ledger & Create Pay Files menu option.

Reject

Access the schedule list as described in the approval section.

Click on the Approval button.

After reviewing the detail, you decide to reject the payment run.  Select the Reject button.

Add rejection comments and then click on Update.

The status will then be rejected, and a Business Event message will be sent to the user who requested the Payment Request action.

Rejection comments can also be viewed from the Schedule list screen.

You can amend the payment schedule and resubmit the payment request (which will then go through the approval step).

The Schedule Status will now show as ‘Payment Requested’.

4. Update Ledger & Create Pay Files

This step will update the Supplier account and pay the transactions and enter a payment on to the supplier account, along with the valid GL postings. The remittance advices will also be created and automatically emailed where applicable. The BACS file will also be created.

To access the Update Ledger & Create Pay Files screen: Accounts Payable – AP Processes – Payment Processing – Update Ledger & Create Pay Files

Click on Submit at the bottom of the page.

Click on Submit again on Confirm Submit.

CLDAPPY2

AP Schedule Payment – Makes the Payments and sets the Payment Date.

AP Payment Production – Sends BACS File to Cloud Files and creates Remittances.

GL Summarised – GL Postings & Bank Rec Cash Entries made.

If you go back to Schedule Maintenance, the Schedule Status will now show as ‘Complete Awaiting Deletion’.

Cheque schedules only - go to step 5 if your payment run is BACS

If your payment run was for cheques the schedule status would be Payment Production Complete.

The cheque print will be available from the Files Management area.

Once the cheques have been printed you can update the system with the real cheque numbers.

From the Schedule Maintenance screen, select the Cheques Amend option

The number of cheques are displayed, the last cheque number updated will default into the Cheque Number From field, also displayed is the Number of Cheques printed. From and To ranges can be entered if necessary.

Once complete select Update.

The schedule will then have a status of Cheque Number Update Requested.

From the Payment Processing menu, now select Update Cheques & Payment Register. Submit this process to update the system with the real cheque numbers and produce the final payment report that can be found on the spool.

5. Files Management

Retrieve the BACS File from Files Management, this can then be imported into the bank. The file can be downloaded from here.

6. Cancel an AP Payment Schedule

If you run a payment schedule and decide not to process it through to completion, it can disabled and deleted. This must be disabled before you request payment (step 3) Use the right click action on the schedule and select Edit followed by Disable. Click on Update.

Select the Delete Payment Schedules option from the menu and select SUBMIT followed by SUMBIT again. The schedule will be removed from the list.

7. Locate the Remittance Advice

A copy of the remittance advice can be found on the Supplier file.

Access the following menus: Accounts Payable-AP Processes-Suppliers-Maintain Suppliers

Click the Paperclip icon. The remittance will be listed, click each one and select the VIEW button to open.

8. Cancel a full BACS payment

If the whole of the BACS run needs to be cancelled, rather than cancelling the payment on each supplier account you can cancel the BACS payment. The BACS payment and allocation is setup on a specific supplier account. This will have been setup by your consultant.

Locate the BACS Supplier, access the following menu options: Accounts Payable-AP Enquiries-Transactions by Supplier

Search for the BACS supplier and click on OK.

A list of all BACS payments are shown. To cancel the payment access the following menus.

Accounts Payable-AP Processes-Payment Processing-Manual Payments

Locating the Payment

You can enter either the Supplier number/Payment Reference, and optionally with an Entry Date From and To, to locate the payment.  Then click on OK.

Cancel the Payment

A list of payments that meet your search criteria will be displayed, highlight the payment you want to cancel and right click and then select Edit followed by Cancel.

You will be taken to a summary screen. Click on Update to cancel the Payment.

This will cancel the payment on all of the supplier accounts for that schedule and return the transactions statuses to DUE/OVER DUE. It will also reverse any general ledger postings.