Defining Bank Transaction Codes

A transation code represents a type of payment, such as a check or bill of exchange, or a bank service, such as a deposit or service charge. Define transaction codes for each type of payment and bank service you plan to use.

Use the following guidelines to enter field values:

Transaction Category

Select a transaction category:

• Cash Payments are used in the Accounts Payable and Accounts Receivable applications. Click the Cash Payment button to define transaction codes for the cash payment documents and payment tapes.

  – or –

• Bill of Exchange (BOE) Payments are used in the Accounts Payable and Accounts Receivable applications. Click the BOE Payment button to define transaction codes for the bill of exchange payment documents.

  – or –

• Bank Services are used in the Accounts Receivable and Cash Management applications. Click the Bank Service button to define transaction codes for the banking transactions that debit or credit your bank accounts.

  Note: Accounts Receivable requires one cash payment for either cash or BOE and three bank service transactions including return to maker, deposit, and bank charges.

Status

Select (A) Active or (I) Inactive.

Depending on which transaction categories you set up will dictate which forms you will use to further define the transaction codes.

Transaction Origin

This determines the origin of a payment that this payment code represents. The transaction origin will generally be Accounts Payable. Select Accounts Receivable only for Electronic Fund Transfer (EFT) payments that are triggered by the application.

Output Option

Select an output option:

Select Printed Document for payments created using Payment Forms Creation (AP155) or Laser Payment Creation (AP157).

Select Tape or Electronic File for payment records created using Payment Tape Creation (AP160) or Electronic Payment Creation (AP161).

Select No Output if you create payments manually.

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 must be reserved in Manual Forms Reservation (AP81.1).

Automatic Reconciliation

Select Yes if cash payments for the transaction code will be considered reconciled when they reach the Cash Management application.

Select No if you want to reconcile cash payments for the transaction code in the Cash Management application.

Payment Summarization

If you selected Tape or Electronic File in the Output Option field, select Summarize Payments or Payment Detail. This determines the cash ledger summarization breaks for payments.

Prenotification

If you select Tape File Record in the Output Option field, this field indicates whether the processing bank must be prenotified with bank account information before an accounts payable ACH payment can be created for a vendor. If you select Yes, you must select an alternate cash payment transaction code.

Alternate Transaction Code

If you select Yes in the Prenotification field, select a valid cash payment transaction code. Used to create an alternate cash payment for a vendor until the processing bank has been prenotified.

– or –

Transaction Origin

This determines the origin of a payment that this payment code represents. The transaction origin will generally be Accounts Payable. Select Accounts Receivable only for Electronic Fund Transfer (EFT) payments that are triggered by the application.

Output Option

Select an output option:

Select Printed Document for payments to be printed using Bill of Exchange Printing (AP156) or Bill of Exchange Print - Tape Create (DT155).

Select Tape Record if payment records will be created on tape.

Select No Output if you will create payments manually.

Automatic Reconciliation

Select Yes if BOE payments for the transaction code will be considered reconciled when they reach the Cash Management application.

Select No if you want to reconcile cash payments for the transaction code in the Cash Management application.

Acceptance

Select Yes if bill of exchange payments for this transaction code require acceptance in the Accounts Receivable application.

If you select No, bills of exchange are considered accepted upon entry or creation.

Acceptance Accounting

Select Yes if the Accounts Receivable application posts the bill of exchange amount to the bill of exchange acceptance account.

If you select No, accounting for the bill of exchange remains in the accounts receivable account upon acceptance.

Accounts Payable: Acceptance

Select whether BOE payments require acceptance in the Accounts Payable application.

If you select No, bills of exchange are considered accepted upon entry or creation.

If you select Yes, bills of exchange must be accepted in Bill of Exchange Acceptance (AP28).

Accounts Receivable: Acceptance

Select whether BOE payments require acceptance in the Accounts Receivable applications.

If you select No, bills of exchange are considered accepted upon entry or creation.

If you select Yes, bills of exchange must be accepted in Bill of Exchange Acceptance (DT30).

Accounts Receivable: Acceptance Accounting

Select whether the system posts the BOE amount to the acceptance account upon acceptance.

If you select No, accounting for the bill of exchange remains in the accounts receivable account upon acceptance.

If you select Yes, accounting transfers from the accounts receivable account to the bill of exchange receivable account upon acceptance.

– or –

Banking Transaction Type

Select a banking transaction type:

Select Bank Debit for transactions that credit the general ledger, such as a withdrawal.

Select Bank Credit for transactions that debit the general ledger, such as a bank charge.

Automatic Reconciliation

Select Yes if banking transactions for the transaction code will be considered reconciled when they reach the Cash Management application.

Select No if you want to reconcile cash payments for the transaction code in the Cash Management application.