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Establishing Payment Instrument and GL Account Relationships

Establishing Payment Instrument and GL Account Relationships

Concept

When you assign a payment instrument to a record type or to a record type and a GL bank account, you are setting up rules that enable the system to select which bank account to use during automatic payment processing. The system automatically selects the correct bank account based on the relationships that you set up.

 

To send a payment to one of the bank accounts that you set up for a supplier, set up one of two possible record-type relationship options:

• Set up a relationship between the record type that you created for Bank Type Codes (00/BT) and a payment instrument. In this case, a payment instrument is associated with a specific record type.

For example, if you specify payment instrument T with user-defined record type Z, you process a payment instrument of T for any bank account that you have not specifically defined. The system uses record type Z to retrieve the payee’s bank account information. If bank information for record type Z is not set up for a payee, the system uses the hard-coded record type V as the default value for that payee.

• Set up a relationship between the user-defined record type that you created for Bank Type Codes (00/BT) and a GL bank account and payment instrument. In this case, both a GL bank account and a payment instrument are associated with a specific user-defined record type.

For example, if you specify GL bank account 1.1110 and payment instrument T with user-defined record type Y, you process a payment instrument of T for bank account 1.1110. The system uses record type Y to retrieve the payee’s bank account information. If bank information for record type Y is not set up for a payee, the system uses the hard-coded record type V as the default value for that payee.

Note: You do not need to establish a relationship between a payment instrument and GL account if you are manually activating a user-defined record type account as the vendor (V) type account.

Procedure

In this task, you will establish a payment instrument and GL account relationship.

Step Action
Navigate to the Multiple Vendor Bank Account Types program (P0417M) from the Automatic Payment Setup menu (G04411).

Click the Automatic Payment Setup link.

Click the Multiple Vendor Bank Account Types link.

Use the Work With Multiple Vendor Bank Account Types form to search for payment instrument and GL account relationships.

Step Action
Click the Add button.

Use the Set Up Multiple Vendor Bank Account Types form to assign payment instrument and GL account relationships to record types.

Step Action
Click in the Payment Instrument field.

Use the Payment Instrument field to enter a user-defined code that determines how a payment is issued to a supplier or is received from the customer. Examples of payment instruments include check, electronic funds transfer, lockbox, and EDI.

Enter the desired information into the Payment Instrument field. Enter “T“.

Click in the G/L Bank Account field.

Use the G/L Bank Account field to enter a value that identifies an account in the general ledger. Use one of the these formats to enter account numbers:

• Standard account number (business unit.object.subsidiary or flex format)

• Third G/L number (maximum of 25 digits)

• Account ID number (eight digits)

• Speed code (two-character code that you concatenate to the AAI item SP. You can then enter the code instead of account number)

Enter the desired information into the G/L Bank Account field. Enter “1.1110.BEAR“.

Click in the Record Type field.

Use the Record Type field to enter a value that exists in the Bank Type Code (00/BT) UDC table to distinguish external bank accounts from internal bank accounts.

Enter the desired information into the Record Type field. Enter “Y“.

Step Action
Click the OK button.

Step Action
Click the Cancel button.

Step Action
Click the Close button.

You have successfully established a payment instrument and GL account relationship.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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