9.2 Processing Escheated Payments
Purpose: Use this document as a reference for how to Process Escheated Payments (Escheatments/unclaimed property) in Accounts Payable or Travel & Expenses in ctcLink.
Audience: Accounts Payable Staff
You must have at least one of these local college managed security roles:
- ZZ Payment Processing
You must also set these User Preference Definitions:
If you need assistance with the above security roles or User Preference Definitions, please contact your local college supervisor or IT Admin to request role access.
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).
It is recommended to establish each user with the specific access associated with their job duties and is not recommended to simply copy one user's access to another user as this could lead to overallocation of access. However, there are situations where a group of staff within a single department all require the same access to perform similar work. In that case, the COPY function provides the ability to apply all Process Group definitions from one user to another without having to search and enter each Source Transaction and Process Group combination.
Please refer to the QRG FSCM Security - Process Groups
Processing Escheatment Payments
Navigation: Accounts Payable > Payments > Cancel/Void Payments > Escheat Payment
- The Payment Escheated page displays. Enter the Bank SetID = WACTC.
- Enter or lookup the appropriate information into the Bank Code field.
- Enter or lookup the appropriate information into the Bank Account field. Example: enter "CHCK".
- Enter the appropriate information into the Payment Reference field.
- Use the drop-down menu arrow to select the correct Payment Method. Example: for this Payment, the method was “System Check”.
- Select the Search button.
- The Payment Escheatment page displays. Select the Escheated Check radio button.
- The Date Escheated will default to current date. You may change this date. Remember the '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".
- Select the Save button.
- To update the payment escheatment status, it requires to run the payment post process. To run this process, please follow QRG Posting Payments.
- 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
After Payment is Escheated and Payment post process run, you can check the payment tab in Voucher. It will say 'Escheated Payment'.
You must have at least one of these local college managed security roles:
- ZD Accounts Payable Inquiry
- ZZ Voucher Approval
- ZZ Voucher Entry
- ZZ_AP_MANAGER
- ZZ_AP_SPECIALIST
If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.
Navigation: Accounts Payable > Vouchers > Add/Update > Regular Entry
Notice the Payment is now listed in the Schedule Payment section as an 'Escheated Payment'.
You may also check the Accounting Entries for Escheatment Process.
By using the Escheatment process, it offsets the existing Liability Accounts/Unclaimed Property. Run a query on GL Account 2001080 and summarize to view the total amount of unclaimed property.
- Section complete.
Video Tutorial
The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.
COMING SOON - Appreciate your patience while we wait until this functionality is available in the Testing Environment.
Video Tutorial Via Panopto
View the external link to Escheatments of AP Voucher Payments. This link will open in a new tab/window.
PREREQUISITES: Must have one or more Expense Report and/or Cash Advance payments successfully Escheated in A/P. Must have Selected Business Unit selected and saved, for assistance please see T&E Expense Processing Prerequisite for steps.
- Once you excheat a travel & expense check in Accounts Payable, a warning message box will display to let you know this payment is a Travel or Expense payment and go back to the T&E Module to reverse the accounting entries by this process.
- Select the OK button.
Navigation: Travel and Expenses > Process Expenses > Expense Processing
- The Expense Transactions search page displays. If you have run this process or report in the past, select the Find an Existing Value tab to enter an existing Run Control ID and select the Search button. If this is the first time running this process or report, select the Add a New Value tab to create a new Run Control ID and select the Add button.
- NOTE: It is important to note that Run Control IDs cannot be deleted. Do not include spaces in your Run Control. We encourage the Run Control ID to have the same process naming convention but unique to the step; because of this, including your institution code and a short process description in the Run Control ID is recommended--e.g., WA020_ESCHEAT (Business Unit, Process).
- The Expense Processing tab displays. You may need to add/verify your college on the Selected Business Units tab page. If the Run Control ID is new, select the Save button and then select the Refresh button to update the transaction counts. If you are using an existing Run Control ID, the transaction counts will update automatically.
- Select the Escheat Payments option. (When you select the Escheat Payments option and run the Application Engine process, the system offsets the existing Liability Accounts/Unclaimed Property and changes the status to "Escheated").
- Select the Save button.
- Select the Refresh button.
- Select the Run button.
- The Process Scheduler Request page displays. Select OK to run the Expense Transaction Processing process (EX_TRAN_PRCS). The Process Scheduler Request page disappears and the updated Expense Processes tab displays.
- Note the Process Instance number. Select Process Monitor. Refer to the QRG Process Scheduler/Process Monitor instructions.
Video Tutorial
The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.
COMING SOON - Appreciate your patience while we wait until this functionality is available in the Testing Environment.
Video Tutorial Via Panopto
View the external link to Escheatments of Travel & Expense Payments. This link will open in a new tab/window.
0 Comments
Add your comment