Generate Payments {FPRN-5}

The generation of payments is a process that can be performed only once per calculation number.  No rollback or re-run of this process is possible.  This function is controlled by the Generate Payments (“Q”) record of the Run Cycle Control File {FPRM-2}; “Q” record will be inserted by the system into the Event Log File {FPRM-3} when the option is executed.

Pre-requisites to using this option:

One Cashbook linked to the Payroll Sub system

• Before the first generation of payments is attempted, the user must make sure that the Cash Book Definition {FCSC-5}, for the Payroll System is complete, including the maximum amount for which a cheque payment may be issued. The  GLA linked here (Cost centre and Account) will be used as the Credit GLA.
• The following five transaction types must be defined in Maintain Transaction Type Definitions {FCSO-7} of the Financial Code Structure Sub-system. These are to be linked to the five events that have a bearing on salary calculations, thereby allowing the generating program to take the actions as indicated below.

• (Note: whereas code 993 must be used as indicated, the other codes are the user's choice: the codes used here, therefore, serve merely as examples): 
  
• Event RS = PR - Salary Calculation.
• Transaction Type 994,
• A credit GLA must be supplied.
• Debits will be to the normal Expense GLAs. 
• Credits will be deductions, and the nett credit will be to the Salary Control GLA.
  

• Event RQ = PR - Cheque Payments:
• Transaction Type 993
• A debit GLA must be supplied.
• Debit will be to Salary Control GLA.
• The credit leg of the transaction will be to Bank GLA, as specified in the Cash Book Definition.
• When cheques are generated, the necessary inserts are done to the two payment files.  No Cash Book journal need therefore be created by the generating program.
  
• Event RC = PR - Payroll Cash Payments:
• Transaction Type 995
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to Cash Control GLA.

• The user has two options regarding cash payments, viz.:
1. The cash withdrawal can be made directly from the bank, with an instruction that the amount be debited directly to the bank account; in this case the user must pass a Cash Book journal to credit Bank and debit Cash Control.
2. Alternatively, a covering cheque could be sent with the cash request, in which case the ITS Counter System will have created the necessary transactions.
• Since the method chosen by the user is not known, the generating program can create no Cash Book Journal.

• Event RD = PR - Bank Transfers:
• Transaction Type 996
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to Transfer Control GLA.
• The nett amount will be debited directly and will appear on the bank statement; the generating program will create a Cash Book journal to debit Transfer Control and credit Bank.
  
• Event RA = PR - ACB Payments:
• Transaction Type 997
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to ACB Control Control GLA.
• The net amount will be directly debited and will appear on the bank statement; the generating program will create a Cash Book journal to debit ACB Control Control and credit Bank.
• The same Transaction Type is used for Bond Payments via ACB it will result in a Cash Book journal to debit Bond Control and credit Bank.

Multiple Cashbooks linked to the Payroll Sub system

• The purpose of this development will be that different Payroll Calc numbers may be paid from different bank accounts which results in multiple cashbooks for the Payroll sub system. a Specific calculation  number may only be linked to one cashbook, however multiple payroll calculation numbers may be linked to one Cashbook as with the existing functionality.
• This will be local software development as the Creation of the ACB File option has to be adjusted  to work with multiple Cashbooks and a new option must be created where a specific calc number can be linked to a specific cashbook and transaction type.   Please contact Adapt IT should you want to use this kind of functionality.
• Before the first generation of payments is attempted, the user must make sure that the Cash Book Definition {FCSC-5}, for the Payroll System is complete, including the maximum amount for which a cheque payment may be issued. All cashbooks to be  used must be created here. The GLA linked here (Cost centre and Account) will be used as the Credit GLA. 
• The following five transaction types must be defined in Maintain Transaction Type Definitions {FCSO-7}of the Financial Code Structure Sub-system. These are to be linked to the five events that have a bearing on salary calculations, thereby allowing the generating program to take the actions as indicated below. The transaction types must be created here which  be available on the new local software program as an option to link the cashbook to a specific transaction type and Calc number e.g. 993 - Cheque Generation
• New Local software program to link a specific Payroll calculation number to a specific cashbook and Transaction type.                                                                                                                     Please note: The Debit GLA (Cost Centre and Account) linked to the specific transaction type will be used for the Debit GLA. 

• (Note: whereas code 993 must be used as indicated, the other codes are the user's choice: the codes used here, therefore, serve merely as examples): 
  
• Event RS = PR - Salary Calculation.
• Transaction Type 994,
• A credit GLA must be supplied.
• Debits will be to the normal Expense GLAs. 
• Credits will be deductions, and the nett credit will be to the Salary Control GLA.
  

• Event RQ = PR - Cheque Payments:
• Transaction Type 993
• A debit GLA must be supplied.
• Debit will be to Salary Control GLA.
• The credit leg of the transaction will be to Bank GLA, as specified in the Cash Book Definition.
• When cheques are generated, the necessary inserts are done to the two payment files.  No Cash Book journal need therefore be created by the generating program.
  
• Event RC = PR - Payroll Cash Payments:
• Transaction Type 995
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to Cash Control GLA.

• The user has two options regarding cash payments, viz.:
1. The cash withdrawal can be made directly from the bank, with an instruction that the amount be debited directly to the bank account; in this case the user must pass a Cash Book journal to credit Bank and debit Cash Control.
2. Alternatively, a covering cheque could be sent with the cash request, in which case the ITS Counter System will have created the necessary transactions.
• Since the method chosen by the user is not known, the generating program can create no Cash Book Journal.

• Event RD = PR - Bank Transfers:
• Transaction Type 996
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to Transfer Control GLA.
• The nett amount will be debited directly and will appear on the bank statement; the generating program will create a Cash Book journal to debit Transfer Control and credit Bank.
  
• Event RA = PR - ACB Payments:
• Transaction Type 997
• Debit- and Credit GLAs must be supplied.
• Debit will be to Salary Control GLA.
• Credit will be to ACB Control Control GLA.
• The net amount will be directly debited and will appear on the bank statement; the generating program will create a Cash Book journal to debit ACB Control Control and credit Bank.
• The same Transaction Type is used for Bond Payments via ACB it will result in a Cash Book journal to debit Bond Control and credit Bank.

1. The generation program will verify that Transaction Types have been linked to the events as above. If not, the program will terminate with the message: “TTs are not linked to events or TTs incorrectly specified”.  In this case payments will not be generated, nor will a “Q” record be created.
2. When the option is executed: 
• Payments will first be generated by pay point within pay date, as per the sort sequence entered in Institution Details {FPRM-1}.  A record will be generated in the Counter Sub-system for each person with payment method che(Q)ue, with the print indicator set to null, this indicates that this cheque has not yet been printed via Print Cheques {FPRN-6}.
• After payments have been generated, the appropriate Cash Book and GL journals will be created.
• A control list of generated payments per pay date is produced (with sub-totals per pay date and report totals), as well as a control report for the generated Cash Book and GL journals.
3. The control report provides sub-totals per Transaction Type, allowing the following comparisons:
• The total of Transaction Types 993, 995, 996 and 997 will equal the amount posted to the Salary Control GLA under Transaction Type 994 for the current pay cycle.
• The payments issued via the ITS Counter System will contra the amounts posted to the Cash Control account.
• The Cash Book journals will contra the amounts posted to the Transfer and ACB Control accounts.
  

Please note:  The ITS Financial System has one central table in which sequential payment numbers are generated automatically.  The Payroll, Counter and Accounts Payable Subsystems share this table.  When a sub-system accesses this table, it “locks”  the table until the particular program has finished with the table, thereby denying access to either of the other two sub-systems.

Bearing in mind that Payroll and Accounts Payable payment runs could be lengthy, it becomes essential that the generation of payments must be scheduled between the users of these three sub-systems; this is in order to avoid unexpected, extremely long response times, particularly for on-line users of the Counter Subsystem.

• That Transaction Types have been linked to the events as above. If not, the program will terminate with the message:
• “TTs are not linked to events or TTs incorrectly specified”.
   
•     That all payments that are generated have amounts less or equal to the Maximum Cheque Value as entered in the Cashbook Definition {FCSC-5}