TMSAP/BNK-PMT1 contains the flow to be used in the payment cycle. Each payment method to be used is defined (CHQ, EFT, EF2, FXP) plus the valid stages and the programs that relate to the stage.
The following stages apply in Account Payable payments process.
- 0 = Not in use – no payment cycle opened.
- 1 = Selection – payment cycle started (due for payment)
- 2 = Cash requirements report
- 3 = Maintain payment cycle
- 4 = Print – cheque/remittance printing
- 5 = Finalise – if setup with with payment acknowledgement step (as part of the workflow) then will generate bank report, update transactions to unapproved status and await bank acceptance else generate bank report & finalise update and close cycle
- 6 = Cancel – cancel cycle before finalise
- 7 = Regenerate bank file
- 8 = Reject any failed transactions (not accepted by the bank)
- 9 = Accept/cancel
The programs to be used at print and finalize stages of the Payment cycle are defined in TMSAP/BNK-PMT2 and then entered against these stages for the applicable Payment types. Also defined are the work stages allowed from the current work stage of the Payment cycle. These are system defined and cannot be changed. For example Stage 4 print is not valid for EFT payments.
| Computer produced cheques |
This process is a five step menu process which must be followed in sequence. The menu options are as per below. Step 1: Select invoices for payment Step 2: Print detailed listing of creditors and invoices selected for payment. Step 3: Maintain invoices and creditors and invoices selected for payment. Step 4: Print Cheques Step 5: Update Cheque numbers into the system. Document type = CHQ |
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| EFT process |
Banks can be nominated to handle the cheque and associated remittance printing for customers who wish to outsource this process. Set up requirements needed for EFT processing involve control files, Creditor masterfile and the Document number file. An output file must also be created to receive the finalised payment transactions. TMSAP/BNK-BKCD stores all the available banks for use by creditors. The banks are defined by code, description and Swift code with the program (system defined) validating that the correct number of digits is entered for a bank account. Each bank/financial institution which will be used on the Creditor masterfile should be added to this control file. A Creditor must have a bank account entered on the Creditor masterfile before they will be selected for EFT payments. Before running EFT it is important to make sure a number sequence has been defined. This will be the number that the system automatically allocates to each EFT payment. These numbers are established in the Number file AP-DOCN and can start at 1 or any specified number. A journal number range is required for EFT payments. TMSAP/DT defines the document type for EFT which ensures that the creditor’s transaction history inquiry is updated with the EFT method and the audit trail separates cheque payments from EFT payments. If a new journal type for EFT payments is specified, for example ‘P’, this must exist in TMSGL/JNLT and have a valid number range and must not be used by any other source. This journal type can be the same for both cheques and EFT. The audit trail can be either set as ‘1’ or ‘I’ for invoices and credits, and payments as ‘2’ or ‘Q’. EFT payments can be processed via the Prompt payment method. TMSAP/APE030 must be set up accordingly. An EFT Prompt Payment is a single payment against multiple invoices for one creditor. For Prompt payments a file will not be produced. A manual entry will have to be made in “the bank” online. The default bank account to be used by the system for EFT payments is set up in TMSAP/BNK-PMTH. This is only a default and can be overridden at the time of payment. Creditor selection for EFT should always be set to yes. This flag is to ensure that the system will select by payment method and creditor bank code whether to pay or not. TMSAP/BNK-PPRG must have the number of the program that determines the Bank File format for EFT payments. TMSBK/EFT-DEF contains the EFT defaults for the direct payments file. It holds information needed when creating the bank upload file, like where the created file will be placed on the network/PC and the name it will be given. This will be where it is loaded for the bank to upload and has a format of folder name and file name. The folder must be created on the IBM Power Systems directory and available to all users who will be uploading the file into the bank application. Object authority on the folder should be public. Users will require access to the network drive. A folder must be set up on the IBM Power Systems network drive. The folder name to be used is the first name entered in the OUTFILE field (that is the network folder NABPayments, for example). Then the entry would be /NABPayments/NAB.ABA. The second name on the entry defines the name of the file when it is created. When the payment run is complete, you should be able to go to Windows Explorer and to the EFT folder on the IBM Power Systems network drive and see a file called payments. The file can be viewed through notepad but be careful not to save it when it has been opened. You should be able to upload the file as is without changing the file layout. Also in TMSBK/EFT-DEF define the Archive File. Field OUTFILE-A defines the file and path for the archived EFT file. Ensure that the path exists on the IBM Power Systems. Archiving allows the AP operator more flexibility in controlling the payment runs, by moving a file and running more than 1 before waiting for the file to be uploaded into the bank. In TMSAP/CHQ-PRT the program to be used to generate the file is required. For cheque payments this would be the remittance advice print program. The EFT payment method requires a program entered here for the generation of a file. The following five steps are for EFT payment process. These menu options must be followed in sequence.
When the update and cheque register is run the program updates the creditor with an EFT payment and a file is produced and copied to the PC using TMSBK/EFT-DEF. This program (APR650) will also produce the remittance advice file. The files must be uploaded into the bank via “the bank” online. This file should be available from the PC. Once uploaded archive, rename or delete the file. EFT payments can be cancelled if required. TMSAP/DT must be set up with both EFT (‘P’) and EFT (‘S’). The following payment file download programs are available.
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| Multi-cycle pay run |
To start the process, navigate to the Payment Cycle menu by selecting the following menu options.
TMSAP/BNK-PMTH contains the valid payment methods, a General Ledger account (to nominate the bank) for these and whether auto banking is required (that is no cheque and cheque/payment number to be automatically nominated). When auto-banking is selected (via the Payment method) then the selection process will be restricted to only creditors with valid bank accounts. Note that all creditors with bank details can also be paid via the cheque run, therefore it is important to always run the EFT cycle first. A couple of important rules established in TMSAP/BNK-PMTH are that the auto number parameter must always be set to MANUAL for cheque payments (0=No) and Creditor Selection for EFT must always be set to Yes to ensure that the correct Payment method and Creditor bank code are used.
Once the selection criteria has been entered, the program selects all applicable creditors and their approved invoices and flags them accordingly.
The total amounts of all selected transactions display for visual verification. The next step in the Payment cycle is printing the Cash Requirements report. This is optional and is only necessary if details of all selected creditors and invoices are to be viewed.
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