Applying Payments

1. Automatic- Payment Predictor (AR_PREDICT) is an automated version of the

payment worksheet, which is used to manually match payments to open items and to
create adjustments or write-offs for overpayments and underpayments. Algorithms (Step
in AE) are SQL statements that match payments with open items according to the criteria
you specify. Algorithm groups (Section) are collections of related algorithms. Methods
are a series of steps that are conditionally executed based on remittance information.
Methods reference one or more algorithm groups.
Each payment must have a Magnetic Ink Character Recognition (MICR ID), customer
ID, or some other type of reference information. The reference information is used to
match payments to customers.
The following table lists the sample algorithm groups that come with PeopleSoft
Receivables. As you review the samples, consider the automatic cash application
capabilities of your current system and your customers' remittance patterns.
Algorithm
Group
(SECTION)

Selects These Open

Items

Use For

Algorithms in Group (STEPS)

#AUTOMNT

Selects matching debits

and credits for each
customer in a business unit
only if the item amounts
are unique.

Processing automatic
maintenance only.
The algorithm group
#AUTOMNT has a very
specific purpose and you
cannot use it for
payment processing.

MATCH
Matches negative and positive items of
the same amount for a customer.
OLDEST
Matches open debits to open credits in
oldest first order by debit due date.
Important! This algorithm group should
have only one of its respective algorithms
enabled at one time.

#BALANCE

Selects all open items for

identified customers, only if
the payment amount
exactly matches the open
items total.

Payments without item

references only and
customer identified.

BALGR
Selects all open items.
BALNET
Selects all open items minus earned
discounts.
UNDISGR
Selects all open items that are not in
dispute.
UNDISNT
Selects all open items that are not in
dispute minus earned discounts.

#COMBOS

Selects items with oldest

due dates first until the
remaining payment amount
is less than the next item.

Payments without item

references only and
customer identified.

DEBITGR
Selects a single unique open item.
DEBITNT
Selects a single unique open item minus
earned discount.
ANY2GR
Selects any two unique open item
balances combined.

#OLDEST1

Selects items with oldest

due dates first until the
remaining payment amount
is less than the next item.

Payments without item

references only and
customer identified.

OLDEST
Selects open items in oldest first order by
due date. Creates a partial payment for
the next item.

#OLDESTC

Adds all items with credit

balances to the payment
amount. Then selects items
with debit balances in
oldest due dates order until
the remaining payment
amount is less than the
next item.

Payments without item

references only and
customer identified.

CREDITS
First adds all credits to the payment
amount. Then selects open items in oldest
first order by due date. Creates a partial
payment for the next item.

#PASTDUE

Selects all past due items

for the customers identified
only if the payment amount
exactly matches the total of
the past due items.

Payments without item

references only and
customer identified.

PASTGR
Selects all past due open items.
PASTNET
Selects all past due open items minus
earned discounts.

#REFS

Selects only open items

that exactly match the
references supplied with a
payment.

Payments with item

summary references
only and customer
identified doesn't matter.

ITEMREF
Selects all open items identified by the
references regardless of customer
identification. Enables you to add a unique
debit or credit item for an underpayment
or overpayment that completes the
application.

#REF_ONE

Selects only open items

that exactly match the
references supplied with a
payment.

Payments with item

summary references
only and customer
identified doesn't matter.

ONECUST
Selects all open items identified by the
references limited to the customer whose
MICR ID or customer ID is supplied with
the payment. Enables you to add a unique
debit or credit item that completes the
application.

#REFS_NG

Uses reference information

that does not exactly match
to select items.

Payments with item

summary references
only and customer
identified doesn't matter.

Note: We include these algorithms as

samples of possible ways for dealing with
bad references. They are platform-specific
and you can take advantage of any
functions your database allows.
FIRST8
Selects all open items identified by the
first eight characters of the references
under the assumption that the reference
qualifier is I (item).
MIDDLE7
Selects all open items identified by the
middle seven characters of the references
under the assumption that the reference
qualifier is I (item).

#DETAIL

Selects only open items

that exactly match the
references supplied with a
payment.

Payments with item

detail references only
and customer identified
doesn't matter.

DETAIL
Selects all open items identified by
matched references. Closes the item but
creates an item level adjustment that
refers back to the original item for any
difference between the item amount and
the reference amount supplied with the
item reference. Also accepts WS-08 and
WS-12 deductions references. Payments
with detail references should balance but
if not, a payment level adjustment can
also be created to balance the payment
as in #REFS.

#DTL_TLR

Selects only open items

that exactly match the
references supplied with a
payment.

Payments with item

detail references only
and customer identified
doesn't matter.

DTL_TLR
Selects all open items identified by
matched references. Closes items that
match the payment amount. If there is an
underpayment, it looks at the bill to
customer to see whether partial payments
are allowed. If allowed, it creates a partial
payment on the item. The actions taken
are based on the selections on the
Predictor Detail Options page.

#STATMNT

Selects items from recent

customer statements.

Payments without item

detail references and
customer identified.

STMTALL
Selects items from the most recent
statement.
STMTDIS
Selects undisputed items from the most
recent statement.

2. Manual-Using Payment Worksheets

Payment worksheets use information about customers and items to apply payments. The
system creates one worksheet for each payment, not one for each deposit.
Navigation: Accounts Receivable, Payments, Apply Payments, Create Worksheet

In Deposit ID type the Deposit ID for the batch that you want to view.
Search

This will bring up the list of all your payments in the batch including the payments that have
already been applied to the correct accounts through payment. Under Payment Status it will
either show APPLIED, WORKSHEET, IDENT or UNIDENT. All payments that show as applied are
the ones that have been posted by Payment Predictor and no further action is required on these.
Any that show as IDENT, UNIDENT or WORKSHEET needs to be posted manually by following
the below procedure:
Click on the first entry to be applied
Click on Build
This will bring up the following screen

Payment status translates values:

Identified

Payments from a lockbox or EDI may come with a MICR ID, a

customer ID or other payment references. Once a payment has
either customer ID or payment references (purchase order
number, bill of lading, document number, sales order number,
item ID) it is Identified.

Unidentified

Payments arrive in the system in deposits, either through a

lockbox interface, EDI, bank statement processing or online as a
regular or express deposit. Payments without customer or
reference information are Unidentified.

A (Applied)

When you set a worksheet to Post Now or Post Later, the

payment status is Applied (A) and the Receivable Update
process (AR_UPDATE) will process it the next time it runs.

W (Worksheet)

When you save a worksheet without setting it to post and without

creating the accounting entries, the payment status is Worksheet
(W). The worksheet remains accessible, so you can add or
change information or leave it available for supervisor review.

C (Complete)

Once the payment is completely applied and the worksheet has

been reviewed and approved, you can create and review the
resulting accounting entries online, or you can post the
worksheet and let the Receivable Update process create the
accounting entries. You can also delete the worksheet and begin
again. When the system posts the payment, the payment status
changes to Complete (C) and the system deletes the worksheet.

This screen shows all open items in the customers account.

One of the following procedures will now be used:

Over/Under Payment
Tick all of the items that are being paid by checking the box next to the invoice ID. If there is then
an under or overpayment, you will need to create either an OA (On Account) item or DED
(Deduction) item. This is done as follows:

Click on the (+) ADD button on the last row of the item list a dialogue box will
then appear where you can select how many rows you want to add (see below)
enter the amount of rows required and then click ok.

A new row is then created, see below.

Pay amount ~ Enter the amount of the over or under payment (if an
underpayment, ensure there is a minus in front of it, -138.06.)
Type ~ Click on the magnify glass and choose the type of payment OA on
account, PR for prepayment or DED for deduction.
Reason ~ Click on the magnify glass and choose the reason why the money is to
be put on account or as an underpayment.
Save

Part Payment
Check the relevant invoice
Enter the payment amount in the Pay Amount column
Save
When you activate the SAVE button, the systems automatically produces another line showing
the remaining amount of the invoice outstanding.

Payment with a write off

Please Note

Payment worksheet level write offs are the following:

ARA/AREs = 5.00

As shown above the system will indicate in the balance box whether the item has been under or
over paid, in the above case it has been underpaid.
To write this off follow the procedure below:
Click on the (+) ADD button at the end of the item line

Click OK

Enter the amount to be written off

Choose the type of write off, in this case WAU ~ Write off An Underpayment

Then choose the reason, in this case HSE ~ Housekeeping

Save

This will then give the write off an Item ID, see above

Worksheet Action Page

Access the Worksheet Action page.
Delete Worksheet

Delete the entire worksheet, plus any accounting entries created

for the worksheet.

Delete Payment Group

Delete the accounting entries you created, but leave the

worksheet intact.

Do Not Post

Save the worksheet without posting.

Post Now

A way to identify groups that need to be processed sooner rather

than later. Essentially, it is priority processing. When you initiate
the Receivable Update process, you're indicating that Receivable
Update should select only groups set for Post Now for the
specified business units on your Receivable Update request.

Post Later

Posts the worksheet the next time Receivable Update runs and
creates accounting entries. POST LATER refers to the
Receivable Update process that will generally run only once a
dayperhaps at the end of the work day or later in the evening
after all pending items have been entered. When you set a
pending item to Post Later during the pending item entry
process, you're separating it from those in need of immediate
processing.

Create/Review Entries

Create or review accounting entries. Use this option only if you

need to review the accounting entries. Otherwise, use Post Now
or Post Later.

Posting Payments
AR_UPDATE
The posting process in PeopleSoft Receivables is known as Receivable Update.
Receivable Update occurs throughout the system as you post pending items.
Although Receivable Update appears to run as one process, it really consists of four
separate processes (or steps).
Step 1

The AR_POSTING process takes groups from all worksheets set

to post and creates the GROUP_CONTROL and
PENDING_ITEM components.
(For pending item groups entered online or interfaced from a
billing system, the GROUP_CONTROL and PENDING_ITEM
components already exist.)

Step 2

The Pending Group Generator (AR_PGG_SERV) process

creates accounting entries and VAT lines for any groups set to
post. This includes the output from Step 1, as well as any billing
groups for which accounting entries are not already created. VAT
lines are created only for certain types of system-generated
groups.

Step 3

The AR_POSTING process runs again.

Step 4

The Entry Events Generator processes (FS_EVENTGEN) entry

events. Entry events allow PeopleSoft Receivables to
automatically create standard accounting entries based on
accounting lines generated by Receivables document posting.
This process runs only if you have the options for processing
entry events selected at the installation level and on the posting
request page.

Unposting Payments
You cannot unpost groups unless they have been successfully processed by the Receivable
Update process. Unposting creates a new group that is the exact opposite of the original group.
Unposting a group, in this context, means reversing a completed action that posted items within
PeopleSoft Receivables. If Receivable Update hasn't run yet, groups are set to Post Now or Post
Later but aren't really posted. In that case, click the Do Not Post button on the Group Action page
so that the group will not post.
This procedure can be used to unpost payments that have been incorrectly allocated.
Navigation: Accounts Receivable, Receivable Updates, Unpost Groups
In this menu there are 3 types of unpostings, Payment Group, Maintenance Group and Transfer
Group. In this example we will be working through how to unpost a deposit batch so Payment
Group should be used, however the procedure is similar for each.

Enter the deposit ID for the batch that is to be unposted.

Click on search

This will list all the payments in the deposit batch.

Search for the relevant payment by the payment ID.

If when in the above screen this is not the payment that is to be unposted, click on return to
search and have a look again to see if there are any other payments with the same payment ID. If
this is the correct payment, click on the options tab.

Choose an unpost reason, i.e. misplaced amount.

Please Note

The accounting date does not need to be changed unless the period the original payment was
applied in is close (ie is dated in a month prior to the current month). If this is the case tick the
Edit Accounting date box and in Accounting Date enter todays date.
Click Save
Click on the Action Tab

In Pending Action, choose Batch Standard.

Click OK
And Save
Before continuing the AR Update will need to be run so that the Deposit Batch is released to be
re-allocated.
If the payment was posted in a month before the current month, the accounting date against the
original payment will need to be amended. (Ensure any worksheets are deleted against the
payment before following the below procedure):
Navigation: Accounts Receivable, Payments, Online Payments, Regular Deposit
Enter the deposit ID of your payment and then click on the payments tab and find the relevant
payment. Once this has been located you will need to change the accounting date as shown
below:

Then hit save and the payment is now ready to be re-applied:

Navigation: Accounts Receivable, Payments, Apply Payments, Update Worksheet

Enter the Deposit ID and click on Search

Because only 1 payment was unposted the system takes you straight into the worksheet, if more
than one payment was unposted a list would be shown.
Then re-apply the payment correctly

Save
And select Worksheet Action

In Pending Action choose Batch Standard.

Click OK
And Save
This will now appear on the correct account once the AR Update has been run.

Reports
1. Dunning letter process can generate letters for many customers or produce a single letter
for one customer. (AR_DUNNING) you specify the scope at any of the following levels:

Unit level generates a letter for each correspondence customer in the business unit.

Correspondence customer level generates a single letter containing all past due items for
all customers in the correspondence group.

Customer level generates a single letter for the specified customer's correspondence
customer. Using customer level, you can also generate letters based on specified,
sequential levels and waiting periods (or intervals) between the levels for past due items.
You do this by using the Dunning by Level method.

Every customer within Peoplesoft is allocated a Dunning ID. This Dunning ID dictates
how we will chase the customer, via letter, for overdue invoices.
Letter Code

Use to represent the types of dunning letters that you send to

customers.

Dunning ID

Assign a default dunning ID to each business unit. Dunning IDs

determine when to exclude items from dunning letters and when
to put letters on hold. Override the default by assigning a
dunning ID to a customer. When you run the process that
generates dunning letters, the system looks for a dunning ID at
the customer level and uses the business unit default if the
customer doesn't have one.

Defining Dunning IDs

Dunning Method page

Defining Dunning Levels

Dunning Id - 01
Letter 1
Letter 2 Letter 3 (GD)-

1-30 days overdue

31-60 days overdue
61+ days overdue

Dunning ID - 02
Letter 2 Letter 3 (GD)-

1-30 days overdue

31+ days overdue

02 Medium Risk
03 High Risk
04 Ex Legal Account
Dunning ID - 03
Letter 1
Letter 2 Letter 4 -

1-30 days overdue

31-60 days overdue
61+ days overdue

There is also the functionality within PS for named users to put accounts on Dunning Hold, as
there will be some customers that should not be sent Dunning Letters.
PS 8.8 will automatically calculate, within each group, which letter should be sent, according to
the rules set out above. It will calculate on the oldest invoice, but will include all overdue invoices
within the balance outlined on the letter. Copy invoices will no longer be sent with the Dunning
Letter.

Credit Balances: Dunning Letters are not produced for accounts that have a credit balance.
Credit Items: Dunning Letters include any credit items, although pre-payments are omitted.
Disputed Items: Any items that are marked as disputed are not included in Dunning Letters.
Threshold: Dunning Letters will not be printed for accounts with a balance of 5.00 or less.
Running this process produces the Dunning Letters.
Navigation: Accounts Receivable, Customer Interaction, Dunning letters, Extract Dunning letter
info.
Access the Dunning Letters Parameters page.
Select the AR Dunning (AR_DUNNING) process to retrieve customer data and populate a
temporary table. The PeopleSoft Application Engine extract process retrieves information from
the database and stores it in the PS_AR33000_TMP table. The Application Engine also performs
the following tasks:

Extract process stores the characteristics of each letter in separate database tables so
you can later refer back to any dunning letter's contents on a page in the Collect
Receivables menu.

When the Dunning extract process begins, it assigns a process instance number to all
items it is processing.

Select a Dunning Level (or report) from the following list.

AR33000

The all-levels dunning letter includes all past due items in the age
bracket associated with the dunning level and the text associated with
the oldest or newest item in the letter (depending on the run
parameters that you specify).

AR33001

The level 1 dunning letter includes only items assigned to dunning

level 1.

AR33002

The level 2 dunning letter includes only items assigned to dunning

level 2.

AR33003

The level 3 dunning letter includes only items assigned to dunning

level 3.
Each Crystal Reports report corresponds to a dunning level and letter
code. If you select only the level 3 dunning letter, Crystal Reports
prints letters only for customers who have past due items in dunning
level 3.

AR33005

The Dunning Control report shows all the dunning letters that you
printed from all dunning runs.

AR33006

The Dunning Preview report lists the dunning letters that will print.
Run this report before you print the letters.

2. Aging process (AR_AGING) Generates reports that show which customers have
outstanding receivable balances. Management and collection departments rely on aging
to identify delinquent accounts and to assess possible cash flow issues.
When the Aging process runs, it marks the customers it is processing as being In Use, by
updating the process instance on the CUST_DATA table with the process instance of the current
job.
Aging ID

Defines the aging categories into which you want transactions

broken down. Also defines how the system ages disputed items.
Lexis Nexis ages items in the following way:

Instalment
Prepayments
Current
1-30 days overdue
31-60 days overdue
61-90 days overdue
91-120 days overdue
121-180 days overdue
181-365 days overdue
365+ days overdue

Select an Aging report from the following list:

Object Name

Navigation

Usage

RUN_AR30003

Accounts Receivable,
Collections, Aging Reports,
Aging Detail by Unit

Define the run parameters for the Aging Detail by Unit

report (AR30003). Use the report to see aged open
balances for all items in a business unit in either the base
currency or the entry currency. .

RUN_AR30001

Accounts Receivable,
Collections, Aging Reports,
Aging Detail by Tree

Define the run parameters for the Aging Detail by Tree

report (AR30001). Use the report to see aged open
balances for all items associated with a tree structure in
the base currency of the business unit..

RUN_AR30004

Accounts Receivable,
Collections, Aging Reports,
Aging Summary by Unit

Define the run parameters for the Aging Summary by Unit

report (AR30004). Use the report to see aged open
balances for every customer in a business unit in either
the base currency or the entry currency of the unit..

RUN_AR30002

Accounts Receivable,
Collections, Aging Reports,
Aging Summary by Tree

Define the run parameters for the Aging Summary by Tree

report (AR30002). Use the report to see aged open
balances for every customer associated with a tree
structure in the base currency of the business unit..

RUN_AR30005

Accounts Receivable,
Collections,
Balances/Cash Reports,
Cash Forecast

Define the run parameters for the Cash Forecast report

(AR30005). Use the report to see open balances on an as
of date by customer in the base currency. It also displays
the amount of cash you can expect to receive in userdefined periods. The system determines which period the
cash will be received using the average days late figure for

a customer..