Processing Escheated Payments - 10h
Purpose: Use this document as a reference for how to Process Escheated Payments in ctcLink.
Audience: Accounts Payable Staff
This topic demonstrates how to process escheated payments. Occasionally, an organization issues a check to a vendor, but the vendor does not deposit it. Perhaps the vendor goes out of business. Whatever the reason, the check becomes stale-dated.
When users identify a check as stale dated, it is informational only. When users decide to escheat a stale-dated check, they must return to the Payment Escheatment page and select Escheated instead of Stale Dated Payment.
Stale date should be done when a check is first selected to be worked. In order to escheat a check, the school must first make an effort to contact the person the check was written to. This usually happens sometime between 12-18 months from the date of the check. Stale dating a check does not create any GL entries and is reversible.
Payables enables you to reclassify the stale-dated check to an escheat liability account by debiting cash and crediting escheatment liability. When users escheat payments, they enter an escheatment date. The system uses the date to control the accounting date for the escheatment entry.
Payment posting treats an escheated payment like a voided payment except that there is no option to close or restate the voucher liability.
Escheating happens when the check is going to be remitted to the state. So, first you escheat the check and second you create a new voucher for that payment to be sent to the state. The new voucher would be coded the same as the escheatment, but in reverse as it clears out this account. Escheating a check creates GL entries and is not reversible.
When you escheat a payment, you then select options to run just the Payment Posting process (AP_PSTPYMNT), or both the Payment Posting and Journal Generator process (FS_JGEN).
Navigation: Main Menu > Accounts Payable > Payments > Cancel/Void Payments > Escheat Payments
- On the Payment Escheated page enter appropriate Bank SetID.
- Enter the appropriate information into the Bank Code field. Example Enter "BOFA" for Spokane.
- Enter the appropriate information into the Bank Account field. Example Enter "CHCK".
- Enter the appropriate information into the Payment Reference field. Example Enter "0000005004".
- Select correct Payment Method from list item for that Payment. Example: for this Payment, the method was “System Check”.
- Click the Search button.
- The Payment Escheatment page enables you to escheat payments.
- Click the Escheated Check option. Date Escheated will default to Current date. You may change this Date. Remember Date Escheated is the Accounting Date for Escheatment Process.
- Enter the appropriate information into the Description field. Enter "Verified with bank contact that this check has not been cashed".
- Click the Save button.
- You have just completed the Processing Escheated Payments topic. Below is a summary of the key concepts of this topic:
- Escheated payment processing gives users the ability to reclassify stale- dated payments.
- Escheating payments transfers the payment from a cash account to an Escheated liability account.
- Payment posting treats an escheated payment like a voided payment except that there is no option to close or restate the voucher liability.
Validation and Verification
Once Payment is Escheated and Payment post process run, you can check the payment tab in Voucher. It will says Payment Escheated.
You may also check the Accounting Entries for Escheatment Process.