Bank Payment Journal

Bank Payment Journal is a general journal that is optimized for making payments.
This article describes some features that improve the work with created journal lines, as well as the creation of advance payments and the application of such payments to unposted documents (for example, orders)

Useful functionality in the Bank Payment Journal

1. The Change Payment Order Status feature allows you to quickly change the payment order status for all lines of the journal. Select the journal lines for which you want to change the status, go to Actions > Functions > Change Payment Order Status and select the desired payment order status. The payment order status will be changed for the selected journal lines.
2. The Fill Active Agreement No. feature allows you to quickly fill in the Agreement No. field with an active customer or vendor agreement number in all journal lines. Go to Actions > Functions > Fill Active Agreement No.. If the system finds several active agreements for the vendor or customer, the corresponding message will be displayed and the Agreement No. field will remain blank. If the Default Agreement option is enabled for a customer or venfor agreement, the Agreement No. field will be filled with te number of this agreement.
3. The Renumber Documents feature renumbers journal lines in the order according to the configured series of numbers for Bank Payment Journal Batch. Go to Actions > Functions > Renumber Documents.
4. The Set Amount LCY Posting function on the General Journals page is used to able posting manually calculated exchange rate differences as of the transaction date, within the limits of the transaction amount for bank accounts. This function allows user to prepare a journal record with the Bank Account type, where the Currency Code is filled in, the Amount and Amount in Additional Reporting Currency (ACY) are left blank, but the Amount in Local Currency (LCY) is filled in as well.
5. The Edit in Excel function on the page Bank Payment Journal, allows you to quickly edit the data in the lines of the created journal and add lines of new payments through the Excel add-in.

Note
For the General Journal Batch where the Non editable during the payment process option is enabled, the following functions become unavailable: Renumber Document Numbers, Fill Active Agreement No., Change Description and Edit in Excel. This option allows to set restrictions on editing rows in the bank payment journal with payment order statuses: "For Export", "Exported", "Imported" and "Paid". When this option is active, only the values of dimensions in the rows can be edited. For other payment order statuses, editing is allowed, and the specified functions are not deactivated.

Divide Payments for Customers, Vendors

The system supports three options for split payment when applying to entries and/or documents: Before Post, At Posting, and Blank. To configure the required option, open the General Ledger Setup page, go to the Application FastTab, and set the required payment divide option in the fields Divide Payments for Customers and, or Divide Payments for Vendors.

Before Post When applying a payment, the system immediately splits it in the Bank Payment Journal (BPJ):

• a separate line is created for each application;
• a separate line is created for the unapplied outstanding amount;
• for applications to unposted documents and for unapplied outstanding amount, the Advance Payment flag is automatically set. The Advance Payment flag can be removed manually. If it is active, the amount is posted to the advance account; if it is inactive, it is posted to the receivables/payables account. As a result of posting such lines, the corresponding number of entries will be created in the Customer or Vendor Ledger Entries and in the Bank Account Ledger Entries.

At Posting When applying, the line in the BPJ is not split. The allocation takes place during posting:

• the number of lines in the BPJ does not change;
• during posting, separate entries are created for each application and one entry for the unapplied outstanding amount;
• for unposted documents and outstanding amount, the Advance Payment flag is active, and such amounts are always posted to advance accounts regardless of changes in the journal line. As a result of posting such lines, the number of Customer or Vendor Ledger Entries created will correspond to the number of applications made. In the Bank Account Ledger Entries, one entry will be created for the full payment amount.

Blank Payment allocation is not performed either during application or during posting. The number of entries created in the Customer/Vendor Ledger Entries and in the Bank Account Ledger Entries will correspond to the number of lines in the BPJ.

Creating an Advance Payment

An advance payment is any payment made by a customer before items or services are provided. Accordingly, there is a need to post such payments on separate accounts.

Before you can start working with advance payments, you need to make certain settings.

1. Choose the icon, enter Vendor Posting Groups or Customer Posting Groups, and then choose the related link.
2. For all required vendor or customer posting groups, select an account value in Advance Payment account field. Advance Payment amounts will be reflected on these accounts before application.
3. Choose the icon, enter General Ledger Setup, and then choose the related link.
4. On the Application FastTab, select the option for the Divide Payments for Customers and Divide Payments for Vendors fields.

To create an advance payment, do the following:

1. Choose the icon, enter Bank Payment Journal, and then choose the related link.
2. Fill in all required fields in the journal lines and check the Advance payment checkbox.
3. After posting such payment, its amount will appear on accounts which were set up in Vendor Posting Groups and Customer Posting Groups.

Applying advance payments to unposted documents

An Advance Payment can be applied to unposted documents before posting from Bank Payment Journal or after posting from Vendor or Customer Ledger Entries.

Note
In case of simultaneous application of a payment to both unposted and posted document (entry), the system first applies the payment amount to the entry. After that, when applying the payment to the unposted document, the system calculates the amount available for application taking into account the portion of the payment already applied to the entry. Therefore, for the correct functioning of the feature, it is recommended to first apply the payment to the posted entry and only then to the unposted document.

1. Applying from Bank Payment Journal:

   • select a journal line and choose Actions > Functions > Apply Prepayments;
   • a window with all customer's or vendor's released unposted documents will open. Standing on line with the document to be applied, select Set Application. You can set application for multiple documents all at once. Close the window.
   • after the prepayment is applied, the payment amount in the journal line can be changed, after which the system will automatically update the application amount to the document.
   • click Post to post the payment.

2. Applying from Vendor or Customer Ledger Entries:

   • select a payment line and choose Actions > Functions > Apply Documents;
   • a window with all customer's or vendor's released unposted documents will open. Standing on the line with the document to be applied, select Set Application. You can set application for multiple documents all at once. Close the window.

After posting of the released documents, the system will automatically post the application and create the required entries in General Ledger.

Note
If, after using the Process Automatic Application function in the Bank Payment Journal, some journal lines still remain unapplied, then the Advance Payment flag will be set for such payment transactions, which ensures the use of the advance payment ledger account in accounting. To apply such payment, use step 2 and set the application in the Vendor or Customer Ledger Entries after the payment is posted.

Checking or cancelling application of the documents

Сheck the application of documents To check the application of documents with the statuses Released and Pending prepayment to payment, follow these steps:

1. Open the Vendor Ledger Entries or Customer Ledger Entries page.
2. Select the relevant payment line.
3. Choose Entry > Applied Documents.

Additionally, the total amount of the applied prepayment for a document can be viewed directly in the document in the Applied Amount and Applied Amount (LCY) fields, which are located in the Invoice Details FastTab.

Cancel the application of documents To cancel the application of documents to payment:

1. In the Vendor Ledger Entries or Customer Ledger Entries, select the payment line.
2. Choose Actions > Functions > Unapply applied documents.
3. On the page that opens, click Cancel Application.

The cancellation of applied prepayments can also be performed directly from the document page:

1. Open the document.
2. Go to Invoice > Applied Payments > Unapply Applied Payment.
3. On the page that opens, click Cancel Application.

Payment transfer between batches of the journal

To transfer payments to another batch of the Bank Payments Journal, follow these steps:

1. Using the standard selection mechanism, choose the rows from the Bank Payment Journal to move to another batch of the journal.
2. Go to Actions > Functions > Move To Another Batch.
3. In the displayed window for selecting a journal batch, choose the desired section and click OK.

Note
The transfer of payments between batches of the Bank Payment Journal is possible if the currency is the same and the "Payment Order Status" field is empty.

Financial Line Approval Process

For cases where it is necessary to undergo an approval procedure for the entries in the Bank Payments Journal, a working process for approving the financial journal lines is used.

Creation and Configuration of the Approval Workflow

To create and configure the approval workflow, follow these steps:

1. Click the button to open the Search function and enter Workflows, then click the corresponding link.
2. Use the New workflow from template function to create the Financial Journal Line Approval Workflow.
3. On the workflow page, under the Workflow Steps tab, if necessary, edit the conditions and notifications of the workflow. For more details, refer to Setting Up Approval Workflows.
4. Click Enabled to activate the workflow.

Note
For the financial journal section where the approval workflow is enabled, the setting in the Not editable during approval process field must be configured. If the setting is enabled, the lines with Awaiting Approval and Approved statuses are non-editable.

Submitting a Line for Approval

To submit one or multiple lines for approval, follow these steps:

1. In the Bank Payments Journal, select one or multiple lines and click Request Approval > Send Approval Request > Selected Journal Lines.
2. The sent lines will have the Awaiting Approval status in the Approval Status field.
3. The corresponding approval entries will also be created, which can be reviewed by clicking the Approval Entries button.
4. If necessary, the approval request can be canceled by clicking Cancel Approval Request > Selected Journal Lines. The status of the journal lines will change to Open.
5. Once the line is approved by all responsible individuals, its status will be changed to Approved.