Using Allocation Markers to Select Transactions for Payment

Each transaction has an allocation marker and you can use this marker to select transactions for payment.

The allocation markers that can be used to retrieve transactions in a payment run are:

  • Force allocation marker identifies transactions to be settled regardless of due date.
  • 0-9 numeric allocation markers can be used to select transactions at different stages of a bill of exchange, and so on.
  • Withhold allocation marker can be used to exclude transactions from a payment run. For example, you might use it for disputed transactions.
Note: You can use Account Allocations (ACA) to amend an allocation marker after a transaction is posted, or Journal Types (JNT) to set the allocation marker on transactions on entry.

The payment profile determines whether or not the allocation marker is to be used as one of the transaction selection criteria, and also how it is to be used.

The Payment Option, set in a payment profile, allows you to select transactions for payment based on the allocation marker alone, or the allocation marker in conjunction with the payment due date. The following options are available:

  • Force only selects transactions with an allocation marker of Force within the other selection criteria.
  • Due Date selects transactions with a due date on or before the Base Date for Payment you enter at run time. Any transactions with an allocation marker of Force are always included. Transactions with a Withhold marker or any numeric markers (0-9) are excluded.
  • Allocation Marker in Payment Run selects transactions with the allocation markers you choose at run time.
  • Allocation Marker and Due Date selects transactions according to the range of allocation markers and due date you select. A transaction must have an allocation marker in the chosen range, and a due date on or before the Base Date for Payment you enter at run time. The range of allocation markers can be preset in the profile and entered at run time.
  • Allocation Marker Only selects transactions by allocation marker, ignoring the due date. The range of allocation markers can be preset in the profile and entered at run time.

If you select either the Allocation Marker and Due Date or Allocation Marker Only payment option, you can enter the range of allocation markers to be used for the profile in the Allocation Marker From/To fields.

If you want the user to be able to choose the allocation markers at run time in Payment Run (PYR), you must select Allocation Marker as one of the run time selection criteria. The range of allocation markers entered at run time overrides the range entered on the profile.

Note:  The Minimum Allocation for Payment field on Ledger Setup (LES) restricts the numeric allocation markers that are selected for payment.

For more information on the allocation markers, see What are Allocation Markers? in the Financials User Guide / Help.