Systems Division Support

Entering Deposit and Payment Information

Purpose: This document provides instructions on how to enter deposits and payments and apply them via Direct Journal and Payment Predictor. For application via the Payment Worksheet, see the “Payment Worksheets: Using and Approving” job aid.

Key Topics:

• Topic 1: Deposit Overview
• Topic 2: Creating the Deposit Header
• Topic 3: Payment Overview
• Topic 4: Entering a Direct Journal
• Topic 5: Using Payment Predictor
• Topic 6: Creating Accounting for a Direct Journal

Topic 1: Deposit Overview

Deposit Overview

In SF Financials Receivables, a Deposit consists of all payments that we or the bank process. Each deposit entered into Receivables must be reconciled to a transaction on the bank statement in Cash Management. A Deposit can consist of one or more payments (ex. multiple checks). We can apply a payment to multiple items for a single customer or to multiple items for different customers.

Deposits and payments can be entered into Receivables using the online Regular Deposit page, Deposits Excel Uploader, Bank Statement (TTX), and Deposits Interface (MTA, ASR). This job aid will cover entry via the Regular Deposit page.

Topic 2: Creating the Deposit Header

Step 1: On the Financials homepage, select the Receivables & Deposits tile.

 

 

 

 

 

 

Step 2: The Regular Deposit page will appear. Select the Add a New Value tab.

 

 

 

 

 

 

 

 

 

Step 3: Enter or select the Deposit Unit and leave the Deposit ID as NEXT. Click Add.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 4: Use the Totals tab to enter the Deposit Control information. Each Deposit represents one deposit transaction on the bank statement.

 

The Accounting Date field will default to the current date. Accept the default or enter the accounting date for the payments and all pending items created from the Payment. The date can be overridden for a given payment on the Payments tab. The system validates the accounting date to make sure it falls within the open period for the business unit and transaction type as defined on the Open Period page for the business unit.

 

 

 

 

 

 

Step 5: The Bank Deposit ID is the Bank Reference number that appears on the bank statement. This field is used to help automatic bank reconciliation between the Deposit and the Bank Statement in Cash Management. Enter the Bank Deposit ID.

 

 

 

 

Step 6: Click the Look up Bank Code icon and select the appropriate bank.

 

 

 

 

Step 7: Click the Look up Bank Account icon and select the appropriate account. Note that the Deposit Type will default based on the selected account. If the Deposit Type needs to be change for a specific deposit, click on the Look up Deposit Type icon.

 

 

 

 

Step 8: For this example, we will select Check Deposits.

 

 

 

Step 9: Enter “USD” into the Control Currency field.

 

 

 

 

Step 10: Enter the date the deposit was actually received in the Received field. Because of normal processing delays, this date may be different from the Entered date. This field is used later in the bank reconciliation process.

 

 

 

 

Step 11: The Control Total Amount is used to indicate the total amount for this Deposit as well as to ensure that the sum of the payment amounts entered for the Deposit equals the total deposit amount. Enter the desired amount into the Control Total Amount field.

 

 

 

Step 12: The Control Count is used to specify how many individual payments make up the Deposit. The total number of payments entered must balance to this control total. For this example, two payments will be entered, one flagged as a Direct Journal and one as Payment Predictor. Enter “2” into the Count field then select the Payments tab.

 

Note: If the Control Total Amount and payment Count do not balance, the system will not allow application of any of the payments. Balancing these control totals is a necessary first step in payment application.

 

Topic 3: Payment Overview

Payment Overview

A Deposit can consist of one or multiple payments, depending on how you want to track your payments. For example, a bundle of 50 checks would appear as one transaction on the bank statement. You would enter one deposit with 50 separate payments to indicate each check.

Payments can be applied via Direct Journal, Payment Predictor, or Payment Worksheet:

• Direct Journal allows payments to be posted directly to the General Ledger. Select this option if a payment should be handled as miscellaneous cash received rather than applied to items. Payments to be directly journaled cannot be processed in payment worksheets and do not go through the Receivable Update process.
• Payment Predictor is used to automatically apply payments to AR Open Items. Payment Predictor can only be used for matching Payment and AR Open Item amounts. Payment Predictor will only work if the AR Open Item has only one item line.
• Payment Worksheet is used to manually apply payments to AR Open Items and is discussed in the “Payment Worksheets: Using and Approving” job aid.

Note: The Accounting Date on a Payment will default from the Accounting Date on the Totals tab. The system validates the payment date to make sure that the date falls within the open period for the business unit and transaction type as defined on the Open Periods page. The payment date may be different from the deposit date if you use the postmark date from checks. The payment date affects earned discounts, so be certain that it is accurate.

 

 

 

 

 

 

 

 

 

 

 

Topic 4: Entering a Direct Journal

In this example, the first Payment will be applied as a Direct Journal. Payments are entered as a Direct Journal when there is no Open Item for the Payment to be applied against. Departments will enter the accounting string to post the Payment directly to the General Ledger.

Step 1: The Payment ID is an identifier that is meaningful to the department. For example, this can be a check number if the Deposit is split into multiple payments to help the department identify this payment. Enter the Payment ID and the amount of the first payment into the Amount field.

Step 2: The Department ID is used to identify the department that owns this Payment, which facilitates Unidentified Receipts processing for the Treasurer's Office. Enter or click the Look up Department ID icon to select the department for this Payment.

Step 3: Click the Journal Directly checkbox to flag the payment as a Direct Journal. The accounting information will be entered later on the Create Direct Journal Entry page.

Step 4: As we enter payments, we can click Save at any point to save our work on the Deposit. The system will assign the Deposit ID.

Step 5: Click on the “+” button at the top right corner of the Payment Information section to add the next Payment for this Deposit.

Topic 5: Using Payment Predictor

Step 1: Continuing with the above Deposit, this Payment will be applied to an Open Item via the Payment Predictor. Enter the Payment ID into the Payment ID field.

Step 2: Enter the amount in the Amount field. Remember that the total of all payments should equal the control amount on the Totals tab.

Step 3: Enter or select the Department ID.

Step 4: Check the Payment Predictor checkbox to flag the payment for application via the Payment Predictor process.

Payment Predictor matches payments to Open Items or creates adjustments/write-offs for overpayments and underpayments. The source of payment does not matter when using Payment Predictor. Payment Predictor also allows for handling payments that cannot be automatically applied, such as placing the payment on the customer's account, generating a payment worksheet so that the payment can be manually applied, or releasing the payment. If a worksheet already exists for the payment, this check box will be unavailable.

Step 5: In the Reference Information section, the Qual Code will default to “I”, for Item Reference. 

Step 6: In the Reference field, we will enter or select the AR Open Item to which the payment will be applied. Enter or select the Item to match to in the Reference field.

Note: Because we are providing the Item Identifier, Payment Predictor does not require the Customer ID as it will cross reference the Customer using the Item Identifier to apply the payment.

 

Step 7: Click Save. Note that the Deposit is balanced.

 

Topic 6: Creating Accounting for a Direct Journal

Note: the AR Payment Approver role is required to access the Create Accounting Entries page and to mark the payment as Complete.

Payments that do not correspond to AR Open Items can bypass the cash application process and be posted directly to the General Ledger. Such payments are often called miscellaneous cash receipts or non-AR cash. They are referred to as directly journaled payments because you can create accounting entries for them without applying the payment to any item.

Generally, the accounting entries for a Direct Journal Payment will be a Credit to Revenue and a Debit to Cash. The Credit entry can also be used indicate Refund of Expenditures or other non-revenue situations. The Debit entry for Cash will be generated based on the Bank Account selected for the associated Deposit. Multiple accounting entries can be entered for the payment.

Step 1: Continuing with the above Deposit, select Create Direct Journal Entry and enter the Deposit Unit and Deposit ID. Click Search.

Step 2: Enter the Credit distribution line(s) to which you would like to apply the payment (Line Amount, Account, Fund, Department, Agency Use (optional), Authority, Project, Activity and Analysis Type)

For the Analysis Type field:

• Enter ‘REV’ if the account is a revenue account
• Enter ‘EXP’ if the account is an expense account
• Enter ‘BAL’ for other accounts used.

 

 

Step 3: If needed, under the Distribution Lines section, scroll to the far right and click on the ‘+’ button to add more accounting lines. For this example, we will not add a second distribution line. Click the Create icon (lightning bolt) to generate the Cash distribution line(s). The Cash distribution line will inherit the Account Chartfield from the Bank Account selected for the Deposit. Other Chartfields will inherit from the corresponding Credit entries.

 

 

 

 

Step 4: The Cash line will be generated. Click on the Complete checkbox to set the payment to post, then click Save. Automated batch processes will pick up payments set to Complete throughout the day and post them to the General Ledger. Once the process executes, the Journal ID will be displayed on the Distribution Line.

 

Done! The Deposit is complete.