Setup. SunGard Disbursement System

2 Setup

DISBURSEMENTS 82

2.1 Accounts Payable Setup

2.1.1 Basics

System Setup

Overview

The open hold system has been designed to accommodate the characteristics of each installation. To utilize this flexibility and to take advantage of the many features of the open hold system, read this section of the section to understand the options available. The discussion in this section will describe how to set up and maintain the required codes and definitions upon installation of the open hold system. In addition, this section outlines user security for those people utilizing the open hold approval process. This security for approvals utilizes the user ID as defined in Nucleus. If no user security exists for a user through open hold, the system will analyze the Nucleus database for user access, and if that person has Nucleus access for Accounts Payable then processing can continue. It should be noted that the current Accounts Payable user definition screen applies only to the approval loop.

It is useful to conceive of the Accounts Payable approval process as a loop within the system flow. The user could take the straight route of true Accounts Payable processing (i.e., creating sets, proofing, distribution, storage of O/H data, reporting, selection for payment, and payment postings.). Or the user may opt to take a slightly different course with approval security (i.e., creating sets, proofing, distributing to approvals, auditing/rejecting, approving, proofing, distributing to open hold, reporting, and payment). Security definitions only apply to the approval process. Approvals in open hold are entirely optional. Approvals allow for the opportunity to create a data auditing loop within the payable process: a chance for administrators to review potential disbursements, approve, reject, create text explanations, and otherwise keep a handle on disbursement funds. If the approval system is set up, it still is not a requirement to use. Data processing may or may not pass through approvals. The user is always free to send something straight through the Accounts Payable system, or set something aside for further examination.

The Accounts Payable General Information Screen

Open hold and immediate pay have two options for data entry; single-line and multi-line. The single-line form is the default method and is discussed in more detail in the sections titled “Immediate Pay Accounts Payable” and “Open Hold Accounts Payable”. The single-line screen form has all the possible fields available and is system defined. The multi-line form is user defined, utilizing only those fields necessary for

DISBURSEMENTS 83

“quick” data entry. Both forms are available at data entry time within a single set by moving from one to the other. If the user elects to use only the single-line form, no additional set-up is necessary. The single-line form is available, as are the capabilities to look-up and add PE ID's.

If the multi-line form is to be used, some additional steps must be taken to fully define the procedure. Please note that if the multi-line form is being used, and any default fields need to be changed. Those changes must be made in browse mode on the single-line screen. In addition, if new entries are to be added to the set, the necessary changes must also be changed on the Set Default Screen.

The Accounts Payable GENERAL INFORMATION screen is useful for the client that likes the flexibility to alter system installed functions.

There are two parts to the screen: The first part defines 'Global Switches' which effect things such as how aging is done, or the way in which

A/P relates to Purchasing and Receiving; the second part is used to customize the data which is modeled on the multi-line screen. When the system is initially installed, it has these selections defined. This form may be used at any time to make changes; however, most clients only change these specifications when the system is initially installed. Since this screen can be used to change significant features, such as how the system ages A/P, it is suggested that very few people be given security to access this screen. This screen is NOT required for data entry in open hold; if it is not defined, the system will run according to system defaults.

To access the GENERAL INFORMATION screen, enter APOHUPGN and press RETURN. Refer to the online help attached to the screen for more information about this screen.

Security Roles

The Manage Security Roles screen (NUUPSR) and the Security Codes screen (APOHUPSC) are used to define open hold User Approval capabilities. If the user will not be using any Security Codes, NUUPSR is the only screen required. Security Roles are required for regular

Accounts Payable processing and to access the Approval module. If Security Codes are to be used, the APOHUPCD screen must be filled out first and the Security Codes added to the user's Security Role Filter clause.

Enter Menu Mask NUUPSR and press RETURN. You will arrive at the Manage Security Roles definition screen.

Security Roles are documented in the Security Guide. Please refer to this guide for more information.

DISBURSEMENTS 84

In implementing/defining the approval process, it is desirable to closely examine the Organizational Structure in use at the site. The

Organizational Structure would indicate what is necessary for each person to be responsible for, be it Dollar amounts, Account Code auditing, or Budget balance control.

2.1.2 Security Code Definitions

Security Codes may be added to the system to restrict Vendor invoices from becoming Payments if the proper authorization is not given.

To access the Security Code Definitions screen, enter APOHUPCD and press RETURN. The following screen is shown as an example.

Fields

Security Code: A four-character user-definable code indicating the desired Security Code. It is advisable to create this code to be visually recognizable. For example, the Accounting Department Security Code could be "ACCT".

Description: A user-definable description of the Security Code being entered. For example, Accounting Department Code.

Terms and Definitions

Under Construction

Concepts

Under Construction

DISBURSEMENTS 85

2.1.3 Disbursements Process Flow Diagrams

Under Construction

2.1.4 Intermediate

Immediate Pay Accounts Payable

Overview

The Immediate Pay subsystem of the Accounts Payable system is used to enter and pay invoices at the same time. In this subsystem, the user places the invoiced amounts into a set file and then commands the system to write checks for all invoices in the set file. If checks have been handwritten, please refer to the Void, Typed, and Reversed section (4).

To access the Immediate Pay subsystem from the Accounts Payable main menu, type in IP and press return. The following question and menu will be displayed:

Which Immediate Pay AP function is desired?

UT Utility

In order to access one of the displayed functions, enter the two-character code and press return. The following provides a more complete description of each of the Immediate Pay Accounts Payable functions:

AP

This function is used for processing the approval functions of the Immediate Pay Subsystem. Approvals are used in the Immediate Pay subsystem as a means to review transactions for their accuracy and veracity, giving the administrator(s) overseeing the transaction database the

DISBURSEMENTS 86

ability to approve or reject transactions before they are distributed and paid. Further consideration of Approvals at this point conflicts with the real flow of the Accounts Payable process. To see the Approval Processing options, type AP and press RETURN.

AP Approve Invoices

RP Report of Approved Invoices

DP Dist. & Pay Approved Invoices

U

N

Report of Unapproved

Invoices

AP This function accesses one form of the Approval process. After prompting for a Security Code, this function will list all the transactions awaiting approval in an INQUIRY format, but with added functionality to interactively approve the transactions.

DP This function creates a set file of approved transactions and distributes (posts) that file to the General Ledger database and, optionally, to the Accounts Payable Open Hold database. It also includes the actual printing of the checks and the recording of check information in the

Check Management database. If applicable, this function will also update the Encumbrance and/or Purchasing database. The user should refer to the General Ledger section for a complete explanation of posting to the GL.

RP This function allows the user to request a Set Proof report of all approved transactions.

UN This function allows the user to request a report of all unapproved transactions.

BT

This function allows the user access to all set processing activities. The purpose of these functions is to create an expense in the

General Ledger and immediately issue a check. To view all set processing options, enter the two character code, BT, and press return.

BP Set Proof Listing

BT Set Proof to Screen Only DA Distribute Set for Approval

DP Dist. & Pay (CK,GL & maybe OH) UB Create/Update Set File

BP Prints a Set Proof Listing of a previously created set of Immediate Pay Accounts Payable transactions. The user should request the

Listing prior to distribution and payment of set to verify the accuracy of the input and to be sure that all of the invoices in the set should be paid.

BT Prints the Set Proof Listing to the screen in a short format, only showing exceptions and totals.

DISBURSEMENTS 87

DA This function distributes entries from the set file to the Approval module for further examination before being distributed (posted) to the

General Ledger. At this point, the Set file, as it was created, ceases to exist. The transactions now exist in the Approval module as individual entities and are subject to individual approval. For clients utilizing the Suspend File Process, transactions that contain data exceptions will be placed into a suspend file while the satisfactory invoices move into the Approval module. Non-approved Invoices are subject to internal control procedures for processing. They could be adjusted, re-approved or purged. If nothing is done with these invoices they will remain indefinitely in the Approval module.

DP This function distributes (posts) the entries from the set file to the General Ledger database and, optionally, to the Accounts Payable

Open Hold database. It also includes the actual printing of the checks and the recordof check information in the Check Management database.

If applicable, this function will also update the Encumbrance and/or Purchasing database. The user should refer to the General Ledger section for a complete explanation of posting to the GL.

UB This function is used to create the Immediate Pay Accounts Payable set file. The process of entering invoiced amounts and assigning them to particular vendors and General Ledger Accounts is performed with this function.

CS

Holds processes that have been specially written for certain clients. If your site has any specific enhancements written for the Accounts

Payable Immediate Pay subsystem they will be located here.

UT

Contains two utilities that may be performed. These are the Flat File Interface (FI), and Reprint Checks (RP) from last run.

Set File Creation

To create a set of transactions in the Immediate Pay Accounts Payable module, from the Immediate Pay subsystem menu, type in BTUB and press return. The following screen will appear on your terminal:

The user has two options at this point. A new IP set can be created, or an existing set may be accessed. To create a new set, simply key in the new set name and press ENTER. The system will say, “File does not exist; press ENTER to create.” If the name is keyed correctly, press

ENTER once more to create the new file. The user will then be taken to the IP set screen.

Additional search criteria may be used to narrow down the type of set to be browsed. Placing a value in the Fileset field (e.g. IP@) directs the system to search for all set files that are indicated (i.e. files that begin with “IP”). The Group field may also be used to search all set files in the

DATA or POSTED group. Enter “DATA” or “POSTED” to indicate the group to be searched.

Note: For MPE systems, the create date is the date that the set was originally created. For Unix systems, the create date is actually the date last edited.

The PE ID, Invoice Date, Division, Trans Format, Check Stock ID, set ID, Tape Total, and Prep ID are only required to be entered on the first record of the Single-Line set screen. These fields will be echoed on each subsequent record of the set until the user-defined Tape Total equals

DISBURSEMENTS

the set Total. The user may alter the information at any time. One may cause other fields to echo on the Single-Line screen, as well as the

Multi-Line screen. Please refer to the Secon System Set-up in this manual.

88

Free-form text may be associated with PE ID and Invoice number combinations. This text will be printed on the check stub when the check is printed for a specific PE ID/Invoice Number combination.

When entering an invoice for a Purchase Order that already exists in the Purchasing database the user has two options. The first option is to enter the Purchase Order Number in the PO # field. If the PO # is valid, meaning it has been printed, and is not disencumbered or fully paid, the system will create records in the set file via a PO extraction process. When the Receiving portion of the Purchasing System is being used, the records created will be taken from those items recently received. For example, if one has a PO12345 with five items, and three of those items have receiving activity, while the other two are dormant through the current payment period, then the Receiving Extraction screen will only allow those active items to be received.

In regard to the three items mentioned, only the amounts received will be available for extraction, but the User may opt to alter that information during the extraction process: i.e. each item has received 1, 2, and 3 quantities, respectively; when paying an invoice for this PO one could extract 1 quantity of item 0001, 2 of item 0002, and/or 3 of item 0003, or 1 item 0002, and 1 item of 0003, or any combination therein. Only the exact quantities received may be extracted, but one still may choose the items to be selected and alter them in numerous ways. If the

Receiving portion of Purchasing is not being used, the system will create records in the set file based on extraction of the whole of each item on the Purchase Order. Once again, the user has full control over selection of items to be extracted for payment, along with the quantities, @ amounts, account number, etc.

The second option allows the user to override existing Purchase Order information. The user enters all information for the transaction including Amount, PO #, and Type. The system will validate the Amount and/or PE ID and warn the user of differences. The system will also validate the change of account numbers based upon a Disencumbrance Hierarchy (Common Code APEN APPLYPAY). Quite simply, a

Background Part (“FUND” is a common example of a BackPart) from the account entered in I/P must match a Background Part from the account encumbered on the PO, and the amount entered in I/P cannot exceed the total amount encumbered on the PO. Over payments of POs must be made to the account originally encumbered on the PO. The only exception to the previous statement is a PO with a Type field (this field is found on screen 1, menu mask “POUPPR”) “B” for Blanket. Blanket POs are forced to ignore the Disencumbrance Hierarchy altogether.

For more information on the Disencumbrance Hierarchy, refer to that section of the Encumbrances section.

All transactions placed into a set will post to the General Ledger on the same posting date. If for reporting purposes, period sensitivity is important, separate sets must be created for each period. The system does not post to the GL based on invoice or reference date.

Immediate Pay Set Single -Line Data-Entry Screen

DISBURSEMENTS 89

To access the A/P Immediate Pay Set Single-Line data entry screen, type in APIPBTUB and press RETURN. Enter a set file name on the Get

File screen to create a new set file. Refer to the online help, attached to the software, for more information about this screen.

PE Lookup Screen

The Person/Entity Lookup screen is used to locate Persons or Entities in the Person/Entity datacommonly called the “PEDB.” This screen supports lookup by Person/Entity ID, by Person/Entity Name, or by Social Security Number. For Person/Entity Name searches, names may be partially or fully spelled. The system supports SOUNDEX retrieval, so the name may be misspelled and a match may still occur. After ID's and Names have been retrieved and shown on the screen, a lookup on selected addresses stored for a given Person/Entity may be performed.

This screen is used to support a number of different applications. Lookup functionality is dependent on the structure of the external database; not all external databases are supported.

The Person/Entity Lookup screen allows the user to search for a PE ID or name during data entry time without needing to exit from the

Immediate Pay Set screen. Refer to the online help for more information about this screen.

Adding an ID/Address Code

At times it will be necessary to add a new PE ID, or an additional address code for an existing PE ID, during data entry. In order to enter this information, it is necessary to access the Person/Entity Name and Address Screen. To do so, enter "ADD" for permanent IDs. To access the

Person/Entity Name and Address Screen from the Person/Entity Lookup screen, press the UPDATE butin the upper left-hand corner of the screen.

This will bring the Name and Address Screen up for the user to enter the new information. To add a new PE ID fill in all necessary information; to add an additional address type, enter the existing PE ID, the new address and its corresponding address type.

Set Proof Listing

After a set of Immediate Pay transactions have been entered into a set file, it is useful and highly suggested to obtain a listing of all entered transactions before they are distributed and paid. This listing, called a set proof listing, will print an error message if discrepancies exist within the set. For example, a warning message will be printed if the user-computed tape total does not match the system-computed set total. The system may also perform a check of the dollar amount paid on an item to the dollar amount stated on the PO. If override file specified, that text is printed regardless of OHTEXT default in APBP TEXT Common Code. If override is not specified, the default text is printed. If neither default nor override is specified, no text is printed. This last option is activated through the use of the Common Code APPO, PAYTOT. For information on how to define this Common Code, see Appendix B. The set proof listing may be printed at any time and as many times as necessary prior to distribution of the set.

DISBURSEMENTS 90

To obtain a set proof listing from the Immediate Pay subsystem, enter BTBP and press RETURN. The system will prompt for the name of the set file from which the listing is to be produced. It will ask if the short or long format is desired; the short format contains only Account/Job

Ledger Account, Vendor ID, Date, Invoice Number, Description, P.O., Amount, Record Number. The system will inquire if exceptions only should be printed; this means that only items with data exceptions like “PEID not the PEID encumbered on the PO” or warnings for overbudget conditions will appear, with the assumption that if there is no exception, then the entry is ready to distribute and pay. If “exceptions only” is not selected, the system will ask if totals only should be printed; this option only shows totals, and any errors in the set. This is helpful for a quick check of data entry accuracy, but should not be used in replace of the standard set proof. It is very important to verify the entire set for accuracy.

The above procedure results in the printing of a Set Proof Listing of the Immediate Pay transactions in the named set file. At the time of data entry, the system checks for logical errors such as, an active GL and/or JL account, budget checking, transaction trapping, etc. These error checks are repeated when the Set Proof Listing is requested. Thus, if anything has changed since the transactions were first entered (e.g., an account was deleted from the GL), the errors will be detected by the Set Proof Listing program. The user must verify that correct accounts and amounts have been entered, the invoice really should be paid now, etc.

If errors are noted on the set proof, the user needs to make changes to the set file. Once inside the set, press F7 to browse, use the “Find Rec” field, change the record to reflect the desired information, and press the ENTER key for the system to accept the change. Run another set proof, verify changes, and continue.

A shorter, on-line version of the set proof is also available by entering APIPBTBT from the main menu. This option only shows totals, and any errors in the set. This is helpful for a quick check of data entry accuracy, but should not be used in replace of the standard set proof. It is very important to verify the entire set for accuracy.

Matching Utility

This utility is used to match the PE IDs and names held in the Open Hold database with the PE IDs and names held in the Person/Entity database. This utility, APOHUTMA, should be run anytime that names have been changed. If the PE IDs and names do not match, the system assumes that the information in the Person/Entity database is the most current and moves that information to the Open Hold database. It is suggested this utility be accessed every time the user has changed PE ID information.

Distributing and Paying the Set

After a set file of Immediate Pay Accounts Payable transactions has been created, it must be distributed (posted) to the General Ledger database and the checks paying the invoices must be printed. The user should refer to the Check Management User Guide for a complete explanation of the check printing process. This process assumes a console printer is being utilized, unless the “interactive” mode is specified.

The interactive mode is triggered at the Job Echo prompt of the Job Control Mask (i.e., the "YR08" prompt is changed to “YI08”, or “_I08”.)

This will cause the control prompts to appear during the APIPBTDP job. Under this directive, no console or System Administrator is needed for printing checks. For Sites operating with a Unix operating system, printing checks must be performed interactively.

DISBURSEMENTS 91

Note: If an error occurs during posting, an Open Hold UNDO Utility may be used to “undo” the distribution (posting) so that the problem may be fixed and the set may be reposted. Refer to the Utilities section of this guide for information regarding the UNDO utilities.

From the Immediate Pay Accounts Payable subsystem menu, enter APDP if the optional Approval process is being used or BTDP if not and press RETURN. The system will prompt for the following:

Please enter the name of your IP Set File: RETURN=

Enter the name of the set file which is to be used to hold the transactions which are to be paid by the system.

Enter the General Ledger Posting Date; RETURN = 10/15/98:

Enter the date, in MM/DD/YY form, which is to be used as the posting date for transactions which are posted to the General Ledger database.

All transactions in the set file, plus all automatically generated entries will be posted with the given date.

Enter the Check Date; RETURN = 10/15/98:

Enter the date, in MM/DD/YY form, which is to appear on the checks as the “date written” date. This date is also used for all postings to the

General Ledger database which directly relate to the Check Register.

Enter the A/P Check Stock ID:

The check stock ID is used to indicate the check stock to be loaded when issuing checks. The check stock ID will also indicate the cash account to be credited through the use of Common Code = CKID. Transactions that exist with a and a different CKID, will not be included in the report and/or check run.

Line printer prompt request showing the printer specifications for the user's reports.

Forms printer prompt request showing the printer specifications for the user's checks.

Enter the codes for the options below; RETURN=00

00 Use ALL Defaults 01 Hit OH Question (Y)

Hierarchy Check Sorting (NM)

04 Print Labels (NO) 05 Summarize GL by Set ID (Y)

DISBURSEMENTS 92

Enter “00” to use all the defaults for the five questions shown. To specifically alter the answer to one or more of the questions, answer 0X,0X, etc. Each question has its own internal question to prompt. 01 Hit OH Question prompts thus:

Would you like these transactions to be entered in OH? Y:

Enter “Y” to cause the transactions in the Set to be entered as Paid (Type = “PD”) in Open Hold A/P. Enter “N” if you would not like the transactions in the Set stored in Open Hold A/P. The system will only post to the CKDB and the GLDB. An answer of “N” will not update vendor hisinformation. It is suggested you store this information to aid in maintaining vendor history.

02 Address Hierarchy prompts this question:

Enter the Address Hierarchy; RETURN = BLPRHOLC

The Address Hierarchy is an ordered list of PE Address codes indicating which address it will look for first, then second, and so on.

BLPRHOLC for example, tells the system to first check to see if there is Billing Address, then a Primary Address, then a Home Address, then

Local. The above hierarchy is the standard answer supplied by SunGard Bi-Tech LLC's installation software. If your hierarchy is not reflected in the standard hierarchy one may choose to enter the correct one, or alter the default in the Job Control Ledger (Menu Mask NUUPJB.)

How would you like the checks sorted? (RETURN=NM):

IFAS will attempt to print checks in one of six options. The most logical choice is to have the checks print in alphabetical order, by name.

Some users, due to internal procedures, chose one of the other options:

BE Set will combine all transactions with the same set ID and the chosen check ID then will print checks based on set record order.

BT Set will combine all transactions with the chosen CKID into groups depending on the Set ID. Within each Set ID the system will alphabetize the set and produce a check for each PE Name transaction within a set. If a PE Name exists in two sets, the PE Name will receive two checks. This is for sites which file by alphabetic order within each Set.

DV Division Order will combine all transactions with the chosen CKID into groups depending on the division entered on the transaction. If a

PE Name has transactions in two divisions, the PE Name will receive two checks.

FN GL Fund Order will combine all transactions with each Fund and produce a check in alphabetic order by PE name within each Fund referenced.

ID Person/Entity Order will combine all transactions with the chosen CKID and print these transactions in order based on Person/Entity ID.

DISBURSEMENTS

NM Person/Entity Name will combine all transactions with the chosen CKID and produce those transactions in alphabetic order based on

Person/Entity Name.

93

Would you like Address Labels printed? (RETURN=N):

If window envelopes are not used and address labels are desired, enter “Y” to have address labels printed based on the address label definition chosen. All address label formats must have been previously defined in the ADDRESS LABEL DEFINITION screen (PEUPAD).

Summarize GL entries by Set ID? (Y/N):

If a “Yes” is entered here then all entries to the GL will be summarized by Set ID except TransLevel and Grand Total Level entries.

Some of the prompts discussed previously will be displayed as optional. This allows the user to take the default on those questions which typically do not change from one distribution to another.

The previous procedure results in the following actions being taken:

ƒ A Set Proof Listing of the set file is printed.

ƒ The Checks are written.

ƒ A Check Register is printed.

ƒ An Invoices Paid report is printed.

ƒ An Immediate Pay Distribution report is printed.

ƒ An Immediate Pay Posting report of entries to the GL is printed.

ƒ An Immediate Pay Audit report of entries to the GL is printed.

ƒ The set file is moved from the “data” group to the “posted” group to prevent duplicate postings.

ƒ If “Hit OH?” is “Y”, a Report of Entries is printed.

Distribute to Open Hold Only

This function, APIPBTDO, allows the user to post to the Open Hold database only. The standard process in Immediate Pay is to post to the

General Ledger and optionally to Open Hold. This function however, is useful for users who may have previously chosen to post only to the

General Ledger but now want to have transaction history in Open Hold. The user would have answered N to “Hit OH” during the APIPBTDP function. The system will prompt the user for a set file name to post. Those transactions will enter the Open Hold with a status of PD.