Creating a Payment Worksheet
Purpose: This job aid covers the steps to create a Payment Worksheet.
Applying Payments to Open Items via Payment Worksheet
A Payment Worksheet is a tool to apply payments to AR Open Items. Payment worksheets use information about customers and items to apply payments. We can match items with payments and make any necessary adjustments. The system creates one worksheet for each payment that will be applied via Payment Worksheet.
Step 1: On the Financials homepage, select the Receivables & Deposits tile.
Step 2: The Regular Deposit page will appear. Select Apply Payments Worksheet.
Step 3: On the Create Payment Worksheet search page, we’ll enter criteria for Deposit Unit and Deposit ID and click the Search button.
Step 4: We use the Payment Worksheet Selection page to select the items that we want to work with and build the worksheet. If the Customer ID or Reference Criteria were entered on the payment, they will be displayed here. These can also be entered or selected on the Payment Worksheet for filtering. For this example, we will enter Item Reference “DPH0000002345” and click the Build button.
Step 5: The Payment Worksheet generates a list of open items based on the specified Customer and Item Reference Criteria. The Item Action fields specify the type of transaction that is to be performed for the payment. We will leave the Entry Type as Pay an Item.
Step 6: We can sort by the various columns to find the item(s) to apply the payment against. For this example, we had previously specified the Item number in Step 4, so that item should already be selected. We’ll sort the Sel column by clicking on the column header to confirm. You may need to sort the column twice. In the Balance section, we can see that the entire amount has been selected. Click Save.
Payment Handling
Handling Exact Payments
Select open items that match the payment. If a customer has no items in the worksheet, you can still put the payment on account or treat it as a prepayment.
Handling Underpayments
If the open item amount exceeds the payment amount, the full payment amount will be applied, and the open item will reflect the remaining balance. To apply an underpayment, follow one of the following procedures:
- Treat the entire amount as a partial payment against an item, then change the amount for the item to the amount of the payment.
- Pay off the item and create an adjustment or a deduction item for the difference between the item amount and the payment amount by creating a new item and entering a positive amount for the difference.
- Until you know why the customer underpaid, place the entire amount on account (without referencing any items) by creating a new item and entering a negative amount for the amount of the payment.
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Partially pay for an item and write off the remaining item balance by selecting the split item and changing the entry type to WO. The system will issue a message if you try to write off more than the write-off tolerances permit.
Handling Overpayments
If the payment amount exceeds the open item, the excess payment amount will be applied on account to the customer. To apply an overpayment, follow one of the following procedures:
- Pay off the item and create a new on account, adjustment, or prepay item with the remainder by creating a new item and entering a negative amount for the overpayment amount.
- Pay off one or more items entirely and treat the remainder as a partial payment on another item by changing the amount for the item to the remaining amount of the payment.
- Until you know why the customer overpaid, place the entire amount on account (without referencing any items) by creating a new item and entering a negative amount for the amount of the payment.
Step 7: Click on the Worksheet Action link.
Step 8: Click the Create/Review Entries button to generate and review the Accounting Entries. Note that the Payment Worksheet Action page also includes the Posting Action which drives whether this payment worksheet can be posted in Accounts Receivable. The Posting Action will be handled by the Payment Approver.
Step 9: The accounting entries for the payment worksheet are created based on the Item’s accounting. Click the Return to Previous Panel button to return to the Payment Worksheet Action page.
Done! The Payment Worksheet is ready for the Payment Approver to set the Payment Worksheet Posting Action to “Post.” Note: if changes to the Payment Worksheet are needed, the Payment Processor can delete the worksheet in the Worksheet Action section.