Defining a bank transaction

You define codes to show the various bank transactions you will use in accounts payable. You must define a transaction code for each type of payment you plan to use, such as manual checks, system checks, and electronic files. This procedure describes the process for defining bank transactions for your cash payments. See Processing bills of exchange.

To define a bank transaction:

  1. Access Bank Transaction Definition (CB00.4).
  2. Define a Transaction Code and a Description for the code.
  3. Select Cash Payment Transaction in the Transaction Category field.
  4. Select Active in the Status field.
  5. Click the Cash Payment button to define cash payments.
  6. Specify this information on Cash Payments (CB00.7):
    Transaction Origin

    The transaction origin will generally be Accounts Payable. Select Accounts Receivable only for Electronic Fund Transfer (EFT) payments that are triggered by the Accounts Receivable application.

    Output Option

    Select one of three output options for the cash payment code:

    • No Output

    • Printed Document

    • Tape or Electronic File

    Transaction Numbering

    Cash payments are numeric.

    Manual Payment Reservation

    If you selected No Output or Printed Document in the Output Option field, this field indicates whether the payment numbers you assign to manual payments in Invoice Entry (AP20) or Manual Payment (AP155) must be reserved in Manual Forms Reservation (AP81.1). The default value is N.

  7. On the Reconciliation tab, specify this information:
    Automatic Reconciliation

    To have all cash payments for this code be automatically considered reconciled when they reach Cash Management, select Yes. If you select No, you must reconcile those cash payments manually in the Cash Management application.

    Payment Summarization

    If you selected Tape or Electronic File in the Output Option field, select a payment summarization option. Determines the Cash Management summarization breaks for payments.

  8. On the Electronic Payments tab, specify this information:
    Prenotification

    If you select Tape File Record in the Output Option field, this field indicates whether the processing bank must be pre-notified with bank account information before an Accounts Payable ACH payment can be created for a vendor.

    Alternate Transaction Code

    If you select Yes in the Prenotification field, select a valid cash payment transaction code. This field is then used to create an alternate cash payment for a vendor until the processing bank has been pre-notified.

    Payment Format

    This field is the format of the electronic payment.

    Organization Identifier

    This field contains the payer identification information.

    Payment Instructions 1 & 2

    These are comments to be sent to the bank.

    User Fields 1 & 2

    User definable fields can be used to capture any data that the user wants.

  9. On the Global tab, specify this information:
    Payer Account Number

    Specify the payer account number.

    Pay Day

    Specify or select the Payment Date Option.

    PlusGiro Payments With BankGiro

    Select Yes if the Company wants to make payments including vendors with Plusgiro accounts via bank transfer file. Default is No.

    Merge Option

    Select whether to merge bank account and payments. Default is 0 (merge).

Related topics