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. Go to Actions > Functions > Change Payment Order Status and select the desired payment order status.
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", 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.

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 Prepayments for Customers and Divide Prepayments for Vendors fields:
   • Before Post - this option splits the payment directly in the Bank Payment Journal before posting. That is, when a payment is applied to several unposted documents, the system splits the journal lines according to the number and amounts of the applied documents. If an unapplied balance occurs, a journal line will also be created for the balance amount. As a result of posting such lines, the corresponding number of entries will be created in the Customer Ledger Entries or Vendor Ledger Entries and Bank Account Ledger Entries;
   • At Posting - this option splits one payment into several payments during posting according to the application. That is, if the payment was applied to two unposted documents, then after posting, the system will divide the payment according to the amounts of the applied documents. If there is an unapplied balance during the application, a payment will be created for the amount of the balance. Posting for such lines will create as many customer or vendor ledger entries as there are applications. One entry for the full amount of the advance payment will be created in the Bank Account Ledger Entries.

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.

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.
   • 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.

Checking or Cancelling application of the documents

To check the application of documents to the payment, standing on the posted payment line in Customer or Vendor Ledger Entries, select Related > Entry > Applied Documents.

To cancel the application to unposted documents, standing on posted payment line in Customer or Vendor Ledger Entries, select Actions > Functions > Unapply Applying Documents.

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.