Generate Cash Flow or Payments {FPMOPD-1}

The system provides one option for the Cash Flow or generation of Cheque, ACB, Draft and Journal payments. In the same action the system will also generate the Creditor and Cash Book transaction and the PM Post program {FGLP-3} will post then to GL.

Documentation generation, like cheques, payment advises, bank transfers and the production of the ACB tape, can be done under separate options.

NB. This program cannot run in batch.

The following is a summary of definitions and actions that must exist before the user can process a document in this option.

Access to the option {USERS-2, USERS-3} on level Update. Select users cannot use the option. Cashier ID and Cheque Authorisation Security Cashier ID The user that must generate the creditor payments must have a Cashier Id and Password, defined in option {FCTM-2}, between the powers 20 to 39 or 70 to 79.

The cashier ID can be signed on and off in options {FCTO-1} and {FCTO-2} Cheque Authorisation If cheque and ACB authorisation is applicable on the CT, then it will be applied to the PM subsystem as well. For more details see Manual CTS paragraph 3.3. Document Numbers for: Payments and Journals number must exist in option {FCTM-1}. For Settlement Discount Document Numbers set code SD system PM in option {FCSM-3}. Transaction Types for Creditor Events {FCSO-7} The users have no control over the Transaction type in this option, it is maintained by the program. Transaction Types must be defined in option {FCSO-7} for the following events.

Event Description Type of Document FE PM - Settlement Discount CS FH PM - Cheque Payments PQ FI PM - ACB Payments PA FL PM - International Draft Payments PI FK PM - National Draft Payments PB FM PM - Journal Payments CJ Foreign Currencies {FCSO-21} Set the Type of exchange rate in block 1.for the PM subsystem. Maintain the rates in block 2 and 3. PM Subsystem Cycle. {FCSM-2} A user of this option must ALWAYS validate that the PM current cycle is correct before processing any documents.

The normal situation would be that all creditors are paid during a single monthly "pay run", resulting in a clean reconciliation process at the end of the month. If it should, however, become necessary to pay more frequently, the following two choices are available to the user:

a) Depending on the creditor's payment method, one of options {FPMOPD -1} payment selections can be used (see below for detail).

The system will generate the appropriate payment advice(s), as well as the applicable payment (cheque, draft or journal).

b) Alternatively, a Statement or Cash Flow Forecast can be printed and a cheque issued through the Counter Subsystem for the required amount. This method results in easier reconciliation than method a). But it does not calculate Settlement Discount.

Irrespective of the method used, the amount(s) will be debited to the creditor account(s), resulting in a zero balance. These creditors can then be included in the normal pay run without generating any further payments.

VERY IMPORTANT If the Creditor balance is in Debit or Zero and there are transactions that were not yet included into a Payment Run then this program will include the creditor into the payment process and do the following Calculate the settlement discount if applicable. After the settlement discount transaction and the Balance is in q Credit Then a payment will be generated for the creditor. q Zero Then a zero payment will be generated for the creditor and NO TRANSACTION will exist in the CASH BOOK. q Debit Then a NEGATIVE payment will be generated for the creditor and NO TRANSACTION will exist in the CASH BOOK. This Negative payment will also be REVERSED on the creditor account ONLY AND will be used in the next payment run if new transactions were added to the creditor account.

4.3.5.1.1. Generate Cash Flow or A Payment

The system will prompt the user as follows:

User Selection	Prompt Text ^{* an item between square brackets [ ] is the default answer}	Type & Length	Comments
	Run Program For: [C]ash Flow Forecast, Or (P)ayments Your Selection
	If Cash Flow then (S)ummary or (D)etail If Payments
	Cashier ID
	Cashier Password
	Payment Method to Process: 1 - Cheques 2 - National Drafts (Bank Transfers) 3 - International Drafts 4 - Journals 5 - ACB Your Selection (1-5)
	Start/End Account Type
	First / Last Creditor To Generate For
	Payment Date To Be Printed On (This date must be equal to or greater than system date)
	Selection: 1. All outstanding invoices 2. Invoices payable before a specified date (If 2., date is requested) IMPORTANT: The system will control that the effective pay date is later than payment date.
	Lastly the program will display the following message Creditor (N)umber Or N(A)me

If Cash Flow

1.    Normal

2.    Creditor Go Into Debit

3.    Creditor In Credit

4.    Creditor In Debit
NB All Creditor transaction tables will now be LOCKED That means that nobody can commit data to the system and the system will wait for this program to complete before it will commit the information.

If Payment process

This option will calculate and generate settlement discount transactions, calculate the balance on creditors' accounts, per account type, up to the specified date and generate payment records.

When calculating the payment value, the system will look at the effective payment date and the discount, if any. If the payment qualifies for discount, the system will generate a "Debit Correction" for the discount amount using the transaction type linked to event "FE". If VAT is applicable to this invoice, the system will also generate the correction required for VAT on settlement discount. The system will handle the transactions according to the transaction definition, and the following can serve as an example:

Invoice processed - Dt Expense GLA Cr Creditors Control GLA

Discount calculated - Dt Creditors Control GLA Cr Discount Allowed Revenue GLA from the transaction type

If VAT applicable - Dt Creditors Control GLA

Cr VAT: IN Control GLA

In case of uncertainty, users can refer to the Directive of the RoR, VAT404, paragraph 9.5.

The system generates sequential payment numbers, the starting number being maintained in the Code Structure {FCTM-1} and the Cash Book for this subsystem are maintained in option {FCSC-5}. As each payment is generated, the next number will be allocated.

This option will allow the user to print a payment list after the payments have been generated. The user can then print the generated cheques with option {FPMOPD-27} or {FCTO-22}, or query the cheques with option {FPMOPD-21} or {FCTO-23}. Payment advice can be printed and re-printed in option {FPMOPD-28}.

For further processing of ACB payments please refer to manual ACB.

The bank list for national drafts can be printed using option {FPMOPD -29}. The draft payment journals can be queried in option {FCBO-1}.

If the answer to "Select Payment Method to Process" international drafts the system will also ask the following question: Do you want to print draft applications:

1. If (Y)es the application can be printed under option {FPMOPD-31}
and execution of {FPMOPD-31} will set the print indicator to N.

2. If (N)o only draft payment advices can be printed and print indicator will be set to Y.

ENTER : Y / N

Draft reprint indicator can be re-set using option {FPMO-4b1 & 2} processing type D.

4.3.5.1.2.    The Payment Reports
Payment report not national drafts

Example:

Processing Rules
	No special processing rules.

Date	System Version	By Whom	Job	Description
11-Jun-2008	v01.0.0.0	Magda van der Westhuizen	t149068	New manual format.
14-Jul-2009	v01.0.0.0	Magda van der Westhuizen	t160160	Insert image and links.
22-Jan-2011	v01.0.0.1	Hermien Hartman	t170695	New image to show Withholding Tax info.