Payment Instruments

Epicor ERPPayment Instruments Course10.0.700.2

Disclaimer

This document is for informational purposes only and is subject to change without notice. This document and itscontents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of itsdate of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties withregard to the enclosed information and specifically disclaims any applicable implied warranties, such as fitness for aparticular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor software islikely to be unique in their requirements in the use of such software and their business processes, users of this documentare always advised to discuss the content of this document with their Epicor account manager. All information containedherein is subject to change without notice and changes to this document since printing and other important informationabout the software product are made or published in release notes, and you are urged to obtain the current releasenotes for the software product. We welcome user comments and reserve the right to revise this publication and/ormake improvements or changes to the products or programs described in this publication at any time, without notice.The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance ofany consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usageof the solution(s) described in this document with other Epicor software or third party products may require the purchaseof licenses for such other products. Where any software is expressed to be compliant with local laws or requirementsin this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such lawsand requirements. All laws and requirements are subject to varying interpretations as well as to change and accordinglyEpicor cannot guarantee that the software will be compliant and up to date with such changes. All statements ofplatform and product compatibility in this document shall be considered individually in relation to the products referredto in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and alsostated to be compatible with another product, it should not be interpreted that such Epicor software is compatiblewith both of the products running at the same time on the same platform or environment. Additionally platform orproduct compatibility may require the application of Epicor or third-party updates, patches and/or service packs andEpicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packsreleased by third parties after the date of publication of this document. Epicor® is a registered trademark and/ortrademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All othertrademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014.All rights reserved. No part of this publication may be reproduced in any form without the prior written consent ofEpicor Software Corporation.

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Contents

Payment Instruments Course.................................................................................................6Before You Begin....................................................................................................................7

Audience.........................................................................................................................................................7

Prerequisites....................................................................................................................................................7

Environment Setup..........................................................................................................................................8

Workshop Constraints..............................................................................................................................9

Application Setup.................................................................................................................10Maintenance Programs..................................................................................................................................10

Payment Instrument Status Maintenance................................................................................................10

Workshop - Create Payment Instrument Receivable Status Codes....................................................11

Create an Unapproved Status...................................................................................................11

Create a Portfolio Status...........................................................................................................11

Create an Apply to Bank Status................................................................................................12

Create a Settled Status.............................................................................................................12

Create a Cancelled Status.........................................................................................................13

Workshop - Create Payment Instrument Payable Status Codes.........................................................13

Enter a Portfolio Status.............................................................................................................13

Enter a Settled Status...............................................................................................................14

Enter a Cancelled Status...........................................................................................................14

Payment Instrument Type Maintenance...................................................................................................15

Workshop - Create AR Payment Instrument Types...........................................................................15

Workshop - Create an AP Payment Instrument Type........................................................................16

Pay Method Maintenance.......................................................................................................................17

Payment Method Types for Payment Instruments.............................................................................17

Workshop - Create Payment Methods.............................................................................................18

Customer Maintenance..........................................................................................................................18

Credit Detail for Payment Instruments..............................................................................................19

Workshop - Review a Customer Record...........................................................................................19

Customer Credit Manager......................................................................................................................20

Workshop - Review Customer PI Credit............................................................................................20

Bank Account Maintenance....................................................................................................................21

Workshop - Link a Payment Method to the Bank Account...............................................................21

Company Configuration................................................................................................................................22

Payment Instruments..............................................................................................................................22

Workshop - Modify a Company Record..................................................................................................22

Daily Payment Instrument Receivables Processing............................................................24Payment Instrument Receivable Entry.............................................................................................................24

Workshop - Generate a Pre-Authorized Promissory Note.........................................................................25

Enter an Invoice...............................................................................................................................25

Add a Line.......................................................................................................................................26

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ContentsPayment Instruments Course

Generate a Promissory Note............................................................................................................26

Print the Promissory Note................................................................................................................27

Post the Invoice...............................................................................................................................27

Workshop - Receive the Pre-Authorized Promissory Note........................................................................27

Create a Group...............................................................................................................................27

Enter the Promissory Note...............................................................................................................27

Print Preview and Post the Promissory Note......................................................................................28

Workshop - Enter and Post an AR Invoice...............................................................................................28

Enter the Invoice..............................................................................................................................28

Add a Line.......................................................................................................................................29

Post the Invoice...............................................................................................................................29

Workshop - Enter a Promissory Note Against the Invoice.........................................................................29

Create a Group...............................................................................................................................30

Enter a Promissory Note...................................................................................................................30

Apply the Promissory Note to an Invoice..........................................................................................30

Print Preview and Post the Promissory Note......................................................................................31

AR Invoice Tracker.........................................................................................................................................31

Workshop - Review Invoice Details..........................................................................................................32

AR Payment Instrument Tracker.....................................................................................................................32

Workshop - Review Payment Instrument Details......................................................................................33

Workshop - Review Customer Credit......................................................................................................33

Payment Instrument Report............................................................................................................................33

Submission Proposals Report..........................................................................................................................34

Workshop - Review the Payment Instruments Submission Proposals Report.............................................34

Payment Instrument Batch Generation...........................................................................................................35

Workshop - Create a Payment Instrument Batch.....................................................................................35

Enter an AR Invoice.........................................................................................................................35

Enter a Second AR Invoice...............................................................................................................36

Post the Invoices..............................................................................................................................36

Generate a Payment Instrument Batch.............................................................................................36

Payment Instrument Update...........................................................................................................................37

Workshop - Update the Payment Instrument...........................................................................................38

Payment Instruments Status Change..............................................................................................................39

Workshop - Change Payment Instrument Status.....................................................................................40

Review Changes in Payment Instrument Tracker..............................................................................41

Payment Instrument Cancellation...................................................................................................................41

Workshop - Cancel a Payment Instrument...............................................................................................41

Change Payment Instrument Status to Cancelled.............................................................................41

View Invoice Balance in Invoice Tracker............................................................................................42

Daily Payment Instrument Payables Processing.................................................................43Payment Instrument Payable Entry.................................................................................................................43

Workshop - Record and Apply a Payment Instrument Payable.................................................................44

View Open Invoices for a Specific Supplier.......................................................................................44

Enter a Promissory Note...................................................................................................................44

Apply the Payment Instrument to Invoices........................................................................................45

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Payment Instruments CourseContents

Preview AP Payment Instrument Report...........................................................................................45

Post the Payment Instrument Payable...............................................................................................46

Aged Payables Report....................................................................................................................................46

Workshop - Review the Aged Payables Report........................................................................................46

AP Payment Instrument Status Change..........................................................................................................47

AP Payment Instrument Cancellation..............................................................................................................48

Workshop - Cancel an AP Payment Instrument.......................................................................................48

Change the Payment Instrument Status to Cancelled.......................................................................48

Review the Aged Payables Report....................................................................................................48

AP Payment Instrument Write Off..................................................................................................................49

Workshop - Write Off an AP Payment Instrument...................................................................................49

Enter a New Promissory Note...........................................................................................................49

Apply the Promissory Note to Invoices..............................................................................................50

Post the Promissory Note.................................................................................................................50

Write Off the Promissory Note.........................................................................................................50

AP Payment Instrument Tracker.....................................................................................................................51

Workshop - Review Payment Instrument Details......................................................................................51

Specialized Payment Instrument Processing......................................................................52Bank Reconciliation Entry...............................................................................................................................52

AR Payment Instrument Clearing............................................................................................................53

Workshop - Clear an AR Payment Instrument..................................................................................53

Add a Bank Reconciliation Statement.......................................................................................53

Initiate an AR Payment Instrument Clearing..............................................................................54

Post the Statement...................................................................................................................54

AP Payment Instrument Clearing.............................................................................................................55

Conclusion.............................................................................................................................56

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ContentsPayment Instruments Course

Payment Instruments Course

The Payment Instruments Course describes and demonstrates features of the Payment Instruments module, whichis a child module of both Accounts Receivable (AR) and Accounts Payable (AP). Payment instrument is a genericterm that covers different types of negotiable instruments used for payment. At a high level, payment instrumentsare any documents that instruct a bank to make a payment on a future date.

Common use of payment instruments provides extra assurance of settlement since you can request authorizationin advance, and there is no advantage in holding back such authorization. Additionally, use of payment instrumentshelps you avoid cash flow problems caused by last minute pay excuses made by customers.

View payment instruments on the Aged Receivables Report and the Aged Payables Report, as well as in variousfinancial trackers such as the Customer and Supplier Trackers, the Invoice Trackers, and the Payment InstrumentsTrackers.

Upon successful completion of this course, you will be able to:

• Set up payment instrument defaults in Company Configuration.

• Enter and understand the need for different payment instrument statuses and types.

• Identify the pay method types that affect processing payment instruments.

• Generate and receive a pre-authorized promissory note.

• Batch multiple invoices under a single promissory note.

• Update a promissory note.

• Change the promissory note status.

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Payment Instruments CoursePayment Instruments Course

Before You Begin

Read this topic for information you should know in order to successfully complete this course.

Audience

Specific audiences will benefit from this course.

• CFO/Controller

• AP Clerk

• AR Clerk

• Purchasing Staff/Buyer

• Sales Manager

• Account Manager

Prerequisites

To complete the workshops in this course, the necessary modules must be licensed and operating in your trainingenvironment. For more information on the modules available, contact your Epicor Customer Account Managerat [email protected]. It is also important you understand the prerequisite knowledge contained in othervaluable courses.

• Navigation Course - This course introduces navigational aspects of the Epicor application's user interface.Designed for a hands-on environment, general navigation principles and techniques available in two userinterface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes andguide you through each navigational principle introduced.

• General Ledger Course - This course provides a clear perspective of the maintenance programs, concepts,processes, and reporting tools you encounter as you work within the General Ledger (GL) module.

• Accounts Receivable Course - This course reviews the Accounts Receivable (AR) module's concepts andreporting tools. Topics of discussion include maintenance program setup, various AR processes, and how torecognize the impact these processes have on the general ledger (GL). Throughout the course, hands-onworkshops guide you through these topics.

• Accounts Payable Course - This course is designed to review the concepts and reporting tools available inthe Accounts Payable (AP) module. Topics of discussion include maintenance program setup and the creationand payment processes for various invoice types. This course also describes how AP invoices and paymentsimpact the general ledger (GL).

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Before You BeginPayment Instruments Course

Environment Setup

The environment setup steps and potential workshop constraints must be reviewed in order to successfullycomplete the workshops in this course.

Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experienceEpicor functionality in action but does not affect data in your live, production environment.

The following steps must be taken to successfully complete the workshops in this course.

1. Verify the following or ask your system administrator to verify for you:

• Your Epicor training icon (or web address if you are using Epicor Web Access) points to yourEpicor training environment with the Epicor demonstration database installed. Do not completethe course workshops in your live, production environment.

Note It is recommended that multiple Epicor demonstration databases are installed. ContactSupport or Systems Consulting for billable assistance.

• The Epicor demonstration database is at the same service pack and patch as the Epicorapplication. Epicor's education team updates the Epicor demonstration database for each service packand patch. If your system administrator upgrades your Epicor application to a new service pack or patch,he or she must also download the corresponding Epicor demonstration database from EPICweb > Support> Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completingthe course workshops.

• Your system administrator restored (refreshed) the Epicor demonstration database prior tostarting this course. The Epicor demonstration database comes standard with parts, customers, salesorders, and so on, already defined. If the Epicor demonstration database is shared with multiple users(that is, the database is located on a server and users access the same data, much like your live, productionenvironment) and is not periodically refreshed, unexpected results can occur. For example, if a courseworkshop requires you to ship a sales order that came standard in the Epicor demonstration database,but a different user already completed this workshop and the Epicor demonstration database was notrestored (refreshed), then you will not be able to ship the sales order. Epicor's education team has writtenthe course workshops to minimize situations like this from occurring, but Epicor cannot prevent usersfrom manipulating the data in your installation of the Epicor demonstration database.

2. You must license and install the Payment Instruments Module.

3. Log in to the training environment using the credentials manager/manager. If you are already logged into your training environment as a different user, from the Options menu, select Change User.

4. From the Main menu, select the company Epicor Education (EPIC06).

5. From the Main menu, select the Main site.

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Payment Instruments CourseBefore You Begin

Workshop Constraints

Below is a list of workshops in this course that can be performed only once in each instance of a restored (refreshed)database. Where applicable, a detailed explanation of the workshop constraints is documented in the workshopitself.

• Workshop - Link the Payment Method to the Bank Account

• Workshop - Modify a Company Record

• Workshop - Record and Apply a Payment Instrument Payable

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Before You BeginPayment Instruments Course

Application Setup

This section of the course reviews the key company configuration and maintenance program setup factorsapplicable to the Payment Instruments module.

To learn more about programs or fields this course does not discuss in detail, refer to the Application Help.

Maintenance Programs

This section of the course reviews the most significant maintenance programs applicable to the Payment Instrumentsmodule.

Payment Instrument Status Maintenance

Use Payment Instrument Status Maintenance to define the statuses available for each of the paymentinstrument (PI) predefined stages.

Important This program is only available if the Payment Instruments module is licensed.

As a PI progresses, it goes through a number of stages. Within a stage, there can be more than one status. Forexample, during the Accounts Receivable (AR) Portfolio stage, there could be Portfolio Signed and Portfolio Postedstatuses. You can set up multiple statuses for any of the stages as required for your processes.

The predefined stages for Accounts Receivable (AR) are as follows:

• Unapproved - Used after a supplier sends an invoice to a customer and it remains outstanding.

• Portfolio - Used when a signed payment instrument document is received (Signed status), or an AR invoicebalance is reduced by the allocation from the Payment Instrument (Posted status).

• Apply to Bank - Used when the funds are applied to the bank. This stage may generate an Electronic Outputfile.

• Settled - Used when the cash is defined as paid.

• Cancelled - Used when a PI is returned to a customer or cancelled and all accounting movements are reversed.

The predefined stages for Accounts Payable (AP) are as follows:

• Unapproved - Used after a supplier sends an invoice to a customer and it remains outstanding.

• Portfolio - Used when a signed document is received (Signed status), or an AP invoice is reduced by theallocation from the PI (Posted status).

• Settled - Used when the cash is defined as paid.

• Cancelled - Used when a PI is returned or cancelled and all accounting movements are reversed.

Important Before defining your general ledger (GL) control settings, you must first set your paymentinstrument posting parameters in Company Configuration. This includes determining the first generalledger (GL) update stage.

Statuses defined as Posted enable the fields on the GL Control sheet. The following stages with a Posted statusmay involve the entry of GL controls:

• AR Portfolio stage

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Payment Instruments CourseApplication Setup

• AR Apply to Bank stage

• AP Portfolio stage

Menu Path

Navigate to this program from the Main Menu:

• Financial Management > Accounts Payable > Setup > Payment Instrument Status

• Financial Management > Accounts Receivable > Setup > Payment Instrument Status

Workshop - Create Payment Instrument Receivable Status Codes

In this workshop, create payment instrument receivable status codes.

Create an Unapproved Status

Navigate to Payment Instrument Status Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Payment Instrument Status

An Unapproved status is commonly used when suppliers provide a printed document to their customers. This isa similar approach to providing a stamped addressed envelope to encourage payment.

1. From the New menu, select New Status.

2. In the Status field, enter XXXUnapp (where XXX are your initials).

3. In the Description field, enter XXX Unapproved Status for AR (where XXX are your initials).

4. In the Use In field, select AR.

5. In the Stage field, select Unapproved.

6. Click Save and remain in Payment Instrument Status Maintenance.

Create a Portfolio Status

A Portfolio status commonly implies the payment instrument (PI) has posted. The AR invoice balance is reducedby the allocation from the PI and the debt and debit now display against the PI rather than against the invoice.


2. In the Status field, enter XXXPrtAR (where XXX are your initials).

3. In the Description field, enter XXX Portfolio Status for AR (where XXX are your initials).


5. In the Stage field, select Portfolio.

6. Click Save.

7. Navigate to the GL Control > Detail sheet.

8. From the New menu, select New GL Control.

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Application SetupPayment Instruments Course

9. In the Type field, search for and select Payment Instrument Receivable.

10. In the Control field, search for and select Default.


Create an Apply to Bank Status

To enter the Apply to Bank stage, you must define the bank to which you apply the Payment Instruments. PaymentInstruments that have been through this stage are eligible for bank reconciliation.


2. In the Status field, enter XXXAppl (where XXX are your initials).

3. In the Description field, enter XXX Apply to Bank Status AR.


5. In the Stage field, select Apply to Bank.

6. Click Save.






Create a Settled Status

The only way to settle a Payment Instrument (PI) is via Bank Reconciliation. Once a PI reaches the Settled stage,it defines the cash as paid.


2. In the Status field, enter XXXSetAR (where XXX are your initials).

3. In the Description field, enter XXX Settled Status for AR (where XXX are your initials).


5. In the Stage field, select Settled.

6. Click Save.




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Create a Cancelled Status

To void a payment instrument, you must change the status to Cancelled. This will reverse all the accountingmovements.


2. In the Status field, enter XXXCanAR (where XXX are your initials).

3. In the Description field, enter XXX Cancelled Status for AR (where XXX are your initials).


5. In the Stage field, select Cancelled.

6. Click Save.

7. Exit Payment Instrument Status Maintenance.

Workshop - Create Payment Instrument Payable Status Codes

In this workshop, create three payment instrument payable status codes: Portfolio, Settled, and Cancelled.

Enter a Portfolio Status

Navigate to Payment Instrument Status Maintenance.

Menu Path: Financial Management > Accounts Payable > Setup > Payment Instrument Status


2. In the Status field, enter XXXPrtAP (where XXX are your initials).

3. In the Description field, enter XXX Portfolio Status for AP (where XXX are your initials).

4. In the Use In field, verify AP defaults.

5. In the Stage field, select Portfolio.

6. Click Save.



9. In the Type field, search for and select Payment Instruments Payable.


11. Click Save.

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Enter a Settled Status


2. In the Status field, enter XXXSetAP (where XXX are your initials).

3. In the Description field, enter XXX Settled Status for AP (where XXX are your initials).


5. In the Stage field, select Settled.

6. Click Save.



9. In the Type field, search for and select Payment Instruments Payable.


11. Click Save.

Enter a Cancelled Status


2. In the Status field, enter XXXCanAP (where XXX are your initials).

3. In the Description field, enter XXX Cancelled Status for AP (where XXX are your initials).


5. In the Stage field, select Cancelled.

6. Click Save and exit Payment Instrument Status Maintenance.

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Payment Instrument Type Maintenance

Use Payment Instrument Type Maintenance to define payment instrument (PI) types and some availabledefault behavior. Examples of common types include promissory notes and future dated checks.


Payment Instrument Type Maintenance has group panes for both Accounts Receivable (AR) and Accounts Payable(AP). The applicable pane is enabled based on your selection in the Use In field on the Detail sheet.

In the Initiation field, specify whether the type relates to payment instruments generated by your company, orreceived from a customer or supplier. When you enter a payment instrument, the setting in this field determineswhich fields on the entry sheet are enabled.

• Generation - When you print an invoice which has a payment method for generated payment instruments,you can generate a payment instrument within the invoice entry program.

• Received - When you enter a payment instrument for a document you have received from a customer orsupplier, you enter the payment instrument via the Payment Instrument Entry program. You cannot enter apayment instrument in the invoice entry program if the invoice has a payment method for received paymentinstruments.

Menu Path


• Financial Management > Accounts Payable > Setup > Payment Instrument Type

• Financial Management > Accounts Receivable > Setup > Payment Instrument Type

Workshop - Create AR Payment Instrument Types

In this workshop, create two Payment Instrument Receivable types, one for instruments received from customers,the other for instruments you generate.

Navigate to Payment Instrument Type Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Payment Instrument Type

1. Click New and in the Type field, enter XXXGenAR (where XXX are your initials).

2. In the Description field, enter XXX AR Generate (where XXX are your initials).


4. In the Initiation field, select Generation.

5. In the Accounts Receivable pane, select the Customer Bank Required check box.

6. In the Company Bank ID field, select Main Checking Account and click Save.

7. Repeat steps 1 through 6 to enter another payment instrument type. Enter the following information (whereXXX are your initials).

DataField

XXXRecARType

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DataField

XXX AR ReceivedDescription

ARUse In

ReceivedInitiation

selectCustomer Bank Required

Main Checking AccountCompany Bank ID

8. Click Save and exit Payment Instrument Type Maintenance.

Workshop - Create an AP Payment Instrument Type

In this workshop, create a Payment Instrument Payable type.

Navigate to Payment Instrument Type Maintenance.

Menu Path: Financial Management > Accounts Payable > Setup > Payment Instrument Type

1. Click New.

2. In the Type field, enter XXXGenAP (where XXX are your initials).

3. In the Description field, enter XXX AP Generate.


5. In the Initiation field, select Generation.

6. In the Accounts Payable pane, select the Supplier Bank Required check box.

7. In the Initial field, select XXX Portfolio Status for AP (where XXX are your initials).

8. In the Reconciled field, select XXX Settled Status for AP (where XXX are your initials).

9. In the Type field, select Other.

10. Click Save and exit Payment Instrument Type Maintenance.

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Pay Method Maintenance

Use Pay Method Maintenance to define how you will pay various transactions. You can select specific paymentmethods as the default for bank accounts, customers, suppliers, and banks linked to a supplier or a customer.

You can link each payment method to a specific electronic bank interface to pay or receive payments againsttransactions using the internet. You can also set up payment methods for manual payments (cash or check),payments or receipts made in cash, payment instruments, or check printing.

When you select an electronic bank interface for the payment method, the properties defined for the electronicinterface display on the Property sheet. These values update each time you use the electronic bank interface.

When you select Generated Promissory Note (for AR), or Future Payment Instrument Printing (for AP) from thePay Method Type field, the Payment Instrument Options fields enable. You can then select a specific paymentinstrument type (created in Payment Instrument Type Maintenance), a generation method (With Invoice, Batch,or Manual), and whether you want automatic approval set.

You can select payment methods on bank accounts and specify if they are for accounts receivable or accountspayable transactions. Each bank account can have multiple methods defined for each module but only onemethod per module can be set as the default payment method. A default payment method can always beoverridden by selecting a different payment method for a group within AP Payment Entry or Cash Receipts Entry.

Menu Path


• Financial Management > Accounts Payable > Setup > Payment Method

• Financial Management > Accounts Receivable > Setup > Payment Method

• Financial Management > Cash Management > Setup > Payment Method

• Service Management > Expense Management > Setup > Payment Method

• Service Management > Time Management > Setup > Payment Method

Payment Method Types for Payment Instruments

There are four pay method types that directly affect the Payment Instruments (PI) process. To post promissorynotes in both Accounts Receivable (AR) and Accounts Payable (AP), you must define payment methods withspecific pay method types.

The available pay method types (for AR) that affect the PI process are:

• Generated Promissory Note

• Received Payment Instrument

The available pay method types (for AP) that affect the PI process are:

• Future Payment Instrument Printing

• Manual Payment Instrument

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Workshop - Create Payment Methods

In this workshop, create three new payment methods - two for the generated type of promissory note, one forthe received type.

Navigate to Pay Method Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Payment Method

1. Click New.

2. In the Payment Method field, enter XXX-Invoice (where XXX are your initials).

3. In the Scope field, select AR.

4. In the Pay Method Type field, select Generated Payment Instrument.

5. In the Payment Instrument Type field, select XXX AR Generate (where XXX are your initials).

6. In the Generation Method field, select With Invoice.

7. Click Save.

8. Repeat steps 1 through 7 to add two more payment methods.

Enter the following information (where XXX are your initials):

DataDataField

XXX-ReceivedXXX-BatchPayment Method

ARARScope

Received Payment InstrumentGenerated Payment InstrumentPay Method Type

blankXXX AR GeneratePayment Instrument Type

blankBatchGeneration Method

9. Exit Pay Method Maintenance.

Customer Maintenance

Use Customer Maintenance to enter customer records. Customers are businesses to whom you sell productsand services. Customer records are primarily used to create quotes, sales orders, and accounts receivable (AR)invoices. You also use customer records during the Customer Relationship Management (CRM) process.

You can designate a customer as a Suspect, Prospect, or Customer. This allows you to create customer recordsfor companies that may do business with you in the future.

New customers are automatically placed on credit hold. You must clear the Credit Hold check box on the Billing> Credit> Credit Detail sheet to display transactions for this customer.

To set up a customer that has two or more divisions within a large company, use the Parent/Child functionality.Divisions are separate customers that link to the main parent company.

You can also specify a customer’s approved suppliers for materials, parts, and subcontract operations.

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Customer records are crucial for capturing opportunities, creating sales orders, and generating accounts receivableinvoices.

Menu Path


• Financial Management > Accounts Receivable > Setup > Customer

• Financial Management > Deferred Revenue Accounting > Setup > Customer

• Financial Management > Multi-Site > Setup > Customer

• Production Management > Material Requirements Planning > Setup > Customer

• Sales Management > Customer Relationship Management > Setup > Customer

• Sales Management > EDI > Setup > Customer

• Sales Management > Order Management > Setup > Customer

• Sales Management > Quote Management > Setup > Customer

• Service Management > Field Service > Setup > Customer

For CRM users, the Main Menu appears as:

• Customer Relationship Management > Sales and Marketing Management > Setup > Customer

• Customer Relationship Management > EDI > Setup > Customer

• Customer Relationship Management > Order Management > Setup > Customer

• Customer Relationship Management > Quote Management > Setup > Customer

Credit Detail for Payment Instruments

In Customer Maintenance, use the Credit Detail sheet to enter a payment instrument credit limit for thecurrent customer. On this sheet, you can also select the Include Payment Instrument check box if you wantopen payment instruments to affect the customer's main credit limit.

Tip To review the accumulated payment instrument credit amount of a customer, refer to CustomerCredit Manager.

Workshop - Review a Customer Record

In this workshop, review a customer record.

Navigate to Customer Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Customer

1. In the Customer field, search for and select VICTIMBER.

2. Navigate to the Banks > Detail sheet and verify the following information displays:

DataField

BOCBank

Bank of CanadaBank Name

123456789Bank Account

CheckPayment Method

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DataField

Victoria Timber ProductsName

2005 Sooke RdAddress

VictoriaCity

BCState/Prov

V9B 5Y2Postal Code

CanadaCountry

SelectedPrimary Bank

3. Navigate to the Billing > Credit > Credit Detail sheet.

4. In the Customer Credit pane, in the PI Credit Limit field, verify 0 displays.

5. Click Save and exit Customer Maintenance.

Customer Credit Manager

Use Customer Credit Manager to review and update the complete credit information for a customer. Thisprogram displays the customer’s open sales orders, invoices, and payments to help make informed credit decisions.It also displays all the contacts listed for this customer’s company.

If your company uses External System Integration, you can share sales order information across your company’svarious site locations. Customers who purchase products at your different companies are classified as globalcustomers. Customer Credit Manager then displays this customer’s global credit information, calculating invoiceand order amounts from records gathered from all site and company locations.

Customer Credit Manager pulls this information together allowing you to change customer credit information.You can also place all or some of the customer’s open sales orders on credit hold.

Note Credit Hold - A condition where credit from your company is not available for a specific customer.For example, you place customers on credit hold when you are having problems receiving payments fromthem.

Note The credit checking functionality only reviews the credit for Bill To Customers; these are thecustomer locations that make payments on your invoices. Each customer record will either use a defaultBill To location or an alternate Bill To location (a leasing company or a head office) for payment. Tolearn more about these billing features, refer to the Customer Maintenance - Bill To and CustomerMaintenance - Alternate Billing Addresses topics in the Application Help.

Workshop - Review Customer PI Credit

In this workshop, review the accumulated credit amount for Victoria Timber Company.

Navigate to Customer Credit Manager.

Menu Path: Financial Management > Accounts Receivable > General Operations > Customer Credit Manager

1. In the Cust ID field, seach for and select VICTIMBER.

2. In the PI Credit field, review the accumulated credit amount.

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3. Record the amount_____________.

4. Exit Customer Credit Manager.

Bank Account Maintenance

Use Bank Account Maintenance to define bank accounts and select the GL controls that determine the accountsto which bank transactions post. Bank accounts record transactions, such as writing checks and submittingelectronic payments.

Note You must set up at least one bank account. If your company has more than one bank account, youcan define multiple account records to aid in the bank reconciliation process.

Important A user account must be set up as a Security Manager to maintain bank accounts. Users thatare not security managers cannot maintain these accounts and are restricted from accessing the setupoption.

Use the Payment Methods sheet to associate payment methods used for account deposits and withdrawals toyour bank account. You can designate AR and AP payment methods for the account, including an electronicinterface payment method used for Electronic Funds Transfer (EFT) processing.

Menu Path


• Financial Management > Accounts Payable > Setup > Bank Account

• Financial Management > Accounts Receivable > Setup > Bank Account

• Financial Management > Cash Management > Setup > Bank Account

• Financial Management > Payroll > Setup > Bank Account

Workshop - Link a Payment Method to the Bank Account

In this workshop, link a payment method entered in Workshop - Create Payment Methods to the company'sbank account. This is necessary as you will apply a promissory note to the bank using this payment method laterin the course.

Navigate to Bank Account Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Bank Account

1. In the Account field, search for and select Main Checking Account.

2. Navigate to the Payment Methods > AR Payment Methods sheet.

3. From the New menu, select New AR Payment Method.

In the AR Payment Methods grid, a new line displays.

4. In the Payment Method field, select XXX-Received (where XXX are your initials).

5. Click Save.

6. Exit Bank Account Maintenance.

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Company Configuration

Use Company Configuration to define the module options for companies in the Epicor application. Use theseoptions to define how this company will interact with the module licensed for it.

When you install the Epicor application, one company record is created by default. You first use CompanyMaintenance to define overall options like email setup, document attachments, and external BAQ sources. Youthen use Company Configuration to define how the company interacts with the various modules you havelicensed.

Tip You can purchase a Multi-Site license that enables you to set up multiple companies within CompanyConfiguration. To do this, first create the company within the Epicor Administration Console. You can thendisplay the new company in this program and configure it as necessary.

Menu Path


• System Setup > Company/Site Maintenance > Company Configuration

Payment Instruments

Use the Payment Instruments sheet to define payment instrument parameters for your company in both theAccounts Receivable (AR) and Accounts Payable (AP) modules.

Note The fields on this sheet are only available if the Payment Instruments module is licensed.

Set up statuses for payment instrument stages within Payment Instrument Status Maintenance.

Determine the stage at which a payment instrument is first recorded into the general ledger and assign a defaultstatus to that stage in Company Configuration.

Example After selecting Portfolio as the first GL Update stage, you could set a default status for thatstage, for example, XXX Portfolio Status for AR (created in workshop Create Payment Instrument ReceivableStatus Codes).

Important After setting your payment instrument posting parameters, you can go back to PaymentInstrument Status Maintenance and define your GL Control settings.

Workshop - Modify a Company Record

In this workshop, modify a company record with regard to payment instruments.

Navigate to Company Configuration.

Menu Path: System Setup > Company/Site Maintenance > Company Configuration

1. In the Company field, verify EPIC06 defaults.

2. Navigate to the Modules > Finance > Payment Instruments sheet.

3. In the Accounts Receivable pane, in the First GL Update Stage field, verify Portfolio displays.

4. In the Unapproved field, select XXX Unapproved Status for AR (where XXX are your initials).

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5. In the Portfolio field, select XXX Portfolio Status for AR (where XXX are your initials).

6. In the Apply to Bank field, select XXX Apply to Bank Status for AR (where XXX are your initials).

7. In the Settled Status field, select XXX Settled Status for AR (where XXX are your initials).

8. In the Starting Number field, enter 5.

9. In th AP pane, in the First G/L Update Stage field, verify Portfolio displays.

10. In the Starting Number field, enter 4.

11. Navigate to the Modules > Finance > Tax Interface sheet.

12. Clear or verify the Tax Connect Enabled check box is cleared.

13. Click Save and exit Company Configuration.

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Daily Payment Instrument Receivables Processing

This section of the course reviews payment instrument receivables processing that takes place during a typicalwork day. In Accounts Receivable (AR), payment instruments are legally binding documents commonly knownas promissory notes.

A promissory note is a promise to pay a sum of money on a future date. Your company receives payment onthese documents on the due date defined on the note itself.

You have the option to create a variation on a promissory note called a Wishful Promissory Note. Suppliers typicallygenerate wishful promissory notes as complete checks that just need to be approved and signed.

Another available payment instrument (PI) is the Post Dated Check. Use this instrument to create a payment tobe made on the future date specified on the post dated check. In some countries, you can deposit these payments(checks) earlier than the future post date.

The most common flow of a Payment Instrument Receivable is as follows:

• Invoice the customer (AR Invoice Entry).

• Receive an authorized PI from the customer which is due on the invoice due date.

• Portfolio (Payment Instrument Receivable Entry)

• Marks the invoice as paid by a PI.

• Opens a new debt against the PI in place of the invoice.

• Apply to Bank (Payment Instrument Status Change)

• Close to the date the PI payment is due; send details to the bank for collection.

• Bank applies for payment on the due date.

• Settle (Payment Instrument Status Change)

• Receive notification of cash received.

• Flag the PI as paid.

• Clear the AR PI from your bank statement (Bank Reconciliation Entry).

Payment Instrument Receivable Entry

Use Payment Instrument Receivable Entry to track repayment of instruments used to pay customer invoices.This allows tracking and credit control for promissory notes, post-dated checks, and other future-dated paymentinstruments. You can also create new payment instruments in this program.

Entry of payment instruments often occurs in connection with the return of a promissory note by a customer.Receivable instruments result in the deposit of funds allocated to accounts receivable (AR) invoices.

Use the Epicor application to:

• Track resulting movements and value changes for audit and credit control purposes.

• Void an instrument, which re-opens the invoices to which it was applied.

• Change how payments are used. For example, the customer pays one of the invoices covered by a note incash. In this case, you can allocate note payments to other receivables.

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Payment Instruments CourseDaily Payment Instrument Receivables Processing

The Epicor application allows configuration of the process to reflect laws that govern these instruments. Somecountries require the company's cash account to always reflect the true value in the bank. Other countries placethe check amount into a holding account, which increases when the bank statement is reconciled.

In addition, the process allows:

• Configuration of AR invoice generation to allow customer payments with promissory notes or checks.

Note A promissory note can be printed as part of the customer statement.

• Immediate cash receipt generation for invoices that the promissory note pays.

• Check, credit card, purchase card, debit card, or Electronic Funds Transfer (EFT) usage to receive paymentfrom the customer.

Example A company prints, posts, and sends customer invoices for $1,200, $1,300, and $1,000 and apromissory note for $3,500. The posting of the invoices debits the asset accounts and credits the revenueaccounts.

Once the customer returns the note, the company enters and posts the invoices in AR Invoice Entry and thepromissory note in Payment Instrument Receivable Entry. The promissory note specifies the bank accountsused for deposit and withdrawal, defines the payment schedule, and lists the invoices to which the promissorynote is allocated. As a result, the Epicor application does the following:

• Marks the invoices as paid and closes them.

• Opens a new receivable to represent the note. The note is ineligible for payment through cash receipts orother payments. This receivable is reconciled when it is selected as a Cleared Bank on a bank statement inBank Reconciliation.

• Reflects any bank fees collected in connection with the note, on the note itself, and in journals.

• Shows deposits connected with the note as credits to the company's bank account.

• Closes the note when the debt is paid. You cannot change a note after it is closed.

Menu Path


• Financial Management > Accounts Receivable > General Operations > Payment Instrument

Workshop - Generate a Pre-Authorized Promissory Note

Your customer, Victoria Timber Company, has requested an invoice with a promissory note for 100 units of partDCD-300-OR. In this workshop, enter an accounts receivable (AR) invoice for Victoria Timber Company andgenerate a pre-authorized promissory note.

Enter an Invoice

Navigate to AR Invoice Entry.

Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Entry

1. From the New menu, select New Group.

2. In the Group field, enter XXX (where XXX are your initials).

3. Click Save.

4. From the New menu, select New Miscellaneous Invoice.

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Daily Payment Instrument Receivables ProcessingPayment Instruments Course

The Header > Detail sheet displays.

5. In the Sold To Customer field, search for and select VICTIMBER.

6. In the Payment Method field, select XXX-Invoice (where XXX are your initials).

Note This is the payment method which has a Pay Method Type of Generated Payment Instrument.

7. Click Save.

Add a Line

1. From the New menu, select New Line.

The Line > Detail sheet displays.

2. In the Part/Rev field, search for and select part DCD-300-OR.

3. In the Quantity field, enter 100.

4. In the Unit Price field, verify 20.80 displays.

5. In the Total field, verify 2,080.00 displays.

6. Click Save.

Generate a Promissory Note

In this task, generate a payment instrument in AR Invoice Entry. This option is available because the invoicepayment method is associated with the Generated Payment Instrument pay method type.

1. Navigate to the Summary sheet.

In the Invoice field, the newly generated invoice number displays.

2. Record the invoice number__________.

3. Navigate to the Header > Payment Instrument > Header sheet.

4. From the New menu, select New Payment Instrument.

The payment instrument ID number is automatically created.

5. Record the payment instrument (promissory note) ID number__________.

6. In the Description field, enter PI VICTIMBER-XXX (where XXX are your initials).

7. In the Type field, verify XXXGenAR (where XXX are your initials) displays.

This is the PI type associated with the payment method you selected for this invoice.

8. In the Due Date field, enter the date one week from today.

9. Click Save.

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Print the Promissory Note

1. From the Actions menu, select Print Payment Instrument.

The Payment Instrument Report window displays.

2. Click Print Preview to review the promissory note.

3. Close the promissory note.

4. Close the Payment Instrument Report window.

Post the Invoice

1. From the Actions menu, select Group > Post.

The AR Invoice Post Process window displays.

2. Click Submit.

3. Close the AR Invoice Post Process window.

4. Remain in AR Invoice for the next workshop.

Workshop - Receive the Pre-Authorized Promissory Note

The pre-authorized promissory note you generated in Workshop - Generate a Pre-Authorized Promissory Notewas sent to the customer, who signed it and sent it back to you. In this workshop, enter this promissory notesent by Victoria Timber Products for 100 units of part DCD-300-OR, and apply it to the invoice.

Navigate to Payment Instrument Receivable Entry.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument

Create a Group


2. In the Group field, enter PI-XXX (where XXX are your initials).

3. In the PI Status, verify XXX Portfolio Status for AR displays (where XXX are your initials).

4. Click Save.

Enter the Promissory Note


2. In the Type field, select XXX AR Generated (where XXX are your initials).

3. In the ID field, enter the ID number for the payment instrument you created in the previous workshop.

This is the ID on the promissory note which the customer has now returned.

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The Amount and Customer fields populate with details from the payment instrument.

4. Click Save.

Print Preview and Post the Promissory Note

1. Navigate to the Allocate sheet.

2. In the Payment Instrument field, verify the correct payment instrument ID displays.

3. In the Amount field, verify 2,080.00 displays.

This is the amount allocated against the invoice.

4. In the Invoices grid, verify the invoice number entered in Workshop - Generate a Pre-Authorized PromissoryNote displays.

5. From the Actions menu, select Print Edit List.

The Payment Instrument Receivable Edit List window displays.

6. From the Actions menu, click Print Review.

The Payment Instrument Receivable Edit list displays for your review.

7. Close the edit list and the Payment Instrument Receivable Edit List window.

8. From the Actions menu, select Post.

The AR PI Payment Post Process window displays.

9. Click Submit.

10. Close the AR PI Payment Post Process window.

11. Minimize Payment Instrument Receivable Entry.

Workshop - Enter and Post an AR Invoice

Victoria Timber Company calls again to order an additional 150 units of part DCD-300-OR. They request aninvoice for the ordered product. In this workshop, enter and post an AR invoice.

Maximize AR Invoice Entry.

Enter the Invoice


2. In the Group field, enter XXX-Rec (where XXX are your initials).

3. Click Save.



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This payment method is associated with the Received Payment Instrument pay method type.

7. Click Save.

Add a Line







6. Click Save.

7. In the New menu, note that the New Payment Instrument option is not available. This is because the invoice'spayment method is associated with the Received Payment Instrument pay method type.

Post the Invoice


2. Record the invoice number__________.



4. Click Submit.


6. Exit AR Invoice Entry.

Workshop - Enter a Promissory Note Against the Invoice

In the previous workshop, you sent an invoice to Victoria Timber Company for 150 units of part DCD-300-OR.Victoria Timber Company generated its own promissory note based on the received invoice and sent it back toyour company. In this workshop, enter the signed promissory note against the invoice entered in the Workshop- Enter and Post an AR Invoice.

Maximize Payment Instrument Receivable Entry.

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Create a Group


2. In the Group field, enter XXX-Rec (where XXX are your initials).

3. In the PI Status field, verify XXX Portfolio Status for AR displays (where XXX are your initials).

4. Click Save.

Enter a Promissory Note



2. In the Type field, select XXX AR Received (where XXX are your initials).

3. In the ID field, enter XXX-Received (where XXX are your initials).

This is the ID of the promissory note generated by the customer.

4. In the Description field, enter XXX-Received Vic Timber (where XXX are your initials).

5. In the Amount field, enter 3,120.00.

This is the full amount for the invoice you entered in Workshop - Enter and Post an AR Invoice.

6. In the Cust ID field, search for and select VICTIMBER.

7. In the Due Date field, enter the date one week from today.

8. Click Save.

Apply the Promissory Note to an Invoice

1. Navigate to the Invoice Selection sheet.

2. In the Invoices grid, select the invoice you entered in Workshop - Enter and Post an AR Invoice.

There is no Promissory Note ID associated with this invoice, as you did not generate one.

3. Click the Apply button and click Save.


5. In the Payment Instrument field, verify XXX-Received displays (where XXX are your initials).


This is the amount allocated against the invoice.

7. In the Invoices grid, verify the invoice entered in the Workshop - Enter and Post an AR Invoice displays.

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Print Preview and Post the Promissory Note

1. From the Actions menu, select Print Edit List.

The Payment Instrument Receivable Edit List window displays.

2. From the Actions menu, click Print Review.

The Payment Instrument Receivable Edit list displays for your review.

3. Close the edit list and the Payment Instrument Receivable Edit List window.

4. From the Actions menu, select Post.

The AR PI Payment Post Process window displays.

5. Click Submit.

6. Close the AR PI Payment Post Process window.

7. Exit Payment Instrument Receivable Entry.

AR Invoice Tracker

Use the AR Invoice Tracker to drill into selected invoices and get information for an invoice. This includesinformation such as the posted status, shipping information, payment activity, schedules, GL transactions, headerand line item information, as well as any memos linked to the selected invoice. You can also track recurring ARinvoices.

Access to the Sales Order Tracker can also be accessed from within the Invoice Tracker.

This tracker is a display-only version of the primary entry program. Use the tracker to review current informationabout a selected record. You cannot add or edit records in a tracker.

Each tracker can contain sheets from the primary entry program and supplemental sheets unique to the tracker.Information on primary sheets and fields is included in the Application Help for the entry program. Supplementalsheet information is included in the Application Help for the specific tracker.

Menu Path


• Executive Analysis > Trackers > A/R Invoice Tracker

• Financial Management > Accounts Receivable > General Operations > Invoice Tracker

• Financial Management > Deferred Revenue Accounting > General Operations > Invoice Tracker

• Sales Management > Customer Relationship Management > General Operations > Invoice Tracker

• Sales Management > Order Management > General Operations > Invoice Tracker

• Service Management > Field Service > General Operations > Invoice Tracker


• Customer Relationship Management > Sales and Marketing Management > General Operations > InvoiceTracker

• Customer Relationship Management > Order Management > General Operations > Invoice Tracker

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Workshop - Review Invoice Details

In this workshop, review details of the two invoices for Victoria Timber Company created in the previous workshops.

Navigate to the AR Invoice Tracker.

Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Tracker

1. In the Invoice field, search for and select the invoice generated in Workshop - Generate a Pre-AuthorizedPromissory Note.

2. On the Summary sheet, in the Invoice Balance field, verify 0 displays.

3. Navigate to the GL Transactions sheet and click the Retrieve button.

In the GL Journal Detail grid, the journal details display.

4. In line 1, in the Book Debit Amount field, verify 2,080.00 displays.

5. In line 2, in the Book Credit Amount field, verify 2,080.00 displays.

6. Repeat steps 1 through 5 for the invoice entered in the Workshop - Enter and Post an AR Invoice.

The Book Debit Amount and Book Credit Amount fields should display a value of 3,120.00.

7. Exit the Invoice Tracker.

AR Payment Instrument Tracker

The AR Payment Instrument Tracker is a display only version of the primary entry program. Use the tracker toreview current information about a selected record.


Menu Path


• Executive Analysis > Trackers > A/R Invoice Tracker

• Financial Management > Accounts Receivable > General Operations > Invoice Tracker

• Financial Management > Deferred Revenue Accounting > General Operations > Invoice Tracker

• Sales Management > Customer Relationship Management > General Operations > Invoice Tracker

• Sales Management > Order Management > General Operations > Invoice Tracker

• Service Management > Field Service > General Operations > Invoice Tracker


• Customer Relationship Management > Sales and Marketing Management > General Operations > InvoiceTracker

• Customer Relationship Management > Order Management > General Operations > Invoice Tracker

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Workshop - Review Payment Instrument Details

In this workshop, review details of the two payment instruments created in the previous workshops. Note theGL transactions which take place once a payment instrument reaches the Portfolio stage.

Navigate to the AR Payment Instrument Tracker.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument Tracker

1. In the ID field, search for and select the payment instrument ID created in workshop Receive thePre-Authorized Promissory Note, PI-XXX (where XXX are your initials).

2. In the Status field, verify XXX Portfolio Status for AR displays (where XXX are your initials).


4. Navigate to the AR PI Move sheet, click Retrieve, and review the current status and stage of the paymentinstrument.

5. Navigate to the GL Transactions sheet, click Retrieve, and review the accounting transactions associatedwith the payment instrument.

6. Repeat steps 1-5 for the payment instrument you created in Workshop - Enter a Promissory Note Againstthe Invoice, XXX-Received (where XXX are your initials).

7. Exit the Payment Instrument Tracker.

Workshop - Review Customer Credit

Previously you reviewed the customer credit for Victoria Timber Company and recorded the amount. In thisworkshop, verify the customer credit for Victoria Timber Company again to see the accumulated credit amountbased on the posted promissory notes.

Navigate to Customer Credit Manager.

Menu Path: Financial Management > Accounts Receivable > General Operations > Customer Credit Manager

1. In the Cust ID field, search for and select VICTIMBER.

2. In the PI Credit field, review the accumulated credit amount.

The credit amount should increase by 5,200.00, which is the total for both posted promissory notes (2,080.00and 3,120.00). The accumulated credit amount may vary, depending on other users working with VictoriaTimber Company.

3. Exit Customer Credit Manager.

Payment Instrument Report

Use the Payment Instrument Report to create an exception report of all unapproved payment instruments.

You can base your report on either due dates or creation dates.

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Use the Selection sheet to select the report parameters. Use the Filter sheet(s) to select the specific records toinclude on the report. For more information, refer to the Filters Overview topic in the Application Help.

Important For more information on how to review the status of a report you print, preview, or generate,refer to the System Monitor Overview topic in the Application Help.

Menu Path


• Financial Management > Accounts Receivable > Reports > Unapproved Payment Instruments

Submission Proposals Report

Use the Submission Proposals Report to create a report of approved payment instruments ready for submission.

This report contains only Portfolio payment instruments and is based on the due dates you select. You can thenfilter the report by payment instrument type and customer.



Menu Path


• Financial Management > Accounts Receivable > Reports > Payment Instruments Submission Proposals

Workshop - Review the Payment Instruments Submission Proposals Report

In this workshop, use the Payment Instruments Submission Proposals Report to review the promissory notes thatare ready for submission.

Navigate to the Submission Proposal Report.

Menu Path: Financial Management > Accounts Receivable > Reports > Payment Instruments Submission Proposals

1. In the Beginning Due Date field, enter the first day of the current month.

2. In the Ending Due Date field, enter the date 2 months from today.

3. Click Print Preview.

The Submission Proposal Report displays.

4. Review the report.

The two promissory notes entered previously display.

5. Close the report.

6. Exit Submission Proposal Report.

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Payment Instrument Batch Generation

Use Payment Instrument Batch Generation to generate a batch of payment instruments or a single paymentinstrument.


You can create a payment instrument for each customer and invoice due date combination within an entry group.You can also print and post the batch of generated payment instruments.

Menu Path


• Financial Management > Accounts Receivable > General Operations > Payment Instrument Batch Generation

Workshop - Create a Payment Instrument Batch

In this workshop, post two accounts receivable invoices, then generate a payment instrument batch for the twoinvoices.

Enter an AR Invoice

Navigate to AR Invoice Entry.

Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Entry


2. In the Group field, enter XXXBatch (where XXX are your initials).

3. Click Save.




6. In the Payment Method field, select XXX-Batch (where XXX are your initials).

This is one of the payment methods you created in Workshop - Create Payment Methods.







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12. Click Save.


In the Invoice field, the invoice number displays.

14. Record the invoice number_____________.

Enter a Second AR Invoice


Navigate to the Header > Detail sheet.


3. In the Payment Method field, select XXX-Batch (where XXX are your initials).







9. Click Save.


In the Invoice field, the invoice number displays.

11. Record the invoice number_____________.

Post the Invoices



2. Click Submit.


4. Exit AR Invoice Entry.

Generate a Payment Instrument Batch

Navigate to Payment Instrument Batch Generation.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument BatchGeneration

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2. In the Group field, enter XXXBatch (where XXX are your initials).

3. In the PI Status field, verify XXX Unapproved Status for AR displays (where XXX are your initials).

4. Click Save.

5. From the Actions menu, select Batch Generate Payment Instruments.

The Batch Generate Payment Instruments window displays.

6. In the Cut Off Date field, select the date two months from today.

7. In the PI Status field, verify XXX Unapproved Status for AR defaults (where XXX are your initials).

This is the same status as you specified in the PI Status field in the group.

8. Click OK.

The newly generated Promissory Note ID displays in the grid.

9. In the grid, select the newly generated promissory note.


In the Invoices grid, the two invoices you created in this workshop display.

11. Navigate to the Header > Header sheet and review the total amount for both invoices.

The amount should be 6,240.

12. Record the Promissory Note ID number_____________.

13. Click Save and exit Payment Instrument Batch Generation.

Payment Instrument Update

Payment Instrument Update allows you to review individual payment instruments, and maintain certain fields.

Important This program is only available if the Payment Instrument module is licensed.

When you select an individual payment instrument, all the details display within this program, including itsassociated invoices. You can update certain fields on the Header sheet, such as Due Date, Description, andAmount. You can also print individual payment instruments.

Menu Path


• Financial Management > Accounts Receivable > General Operations > Payment Instrument Update

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Workshop - Update the Payment Instrument

In this workshop, change the due date on the payment instrument generated in Workshop - Generate a PaymentInstrument Batch.

Navigate to Payment Instrument Update.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument Update

1. In the ID field, search for and select the Promissory Note ID generated in Workshop - Generate a PaymentInstrument Batch.

2. In the Due Date field, move the date three weeks forward.

3. In the Issue Date field, select or verify today's date displays.

4. Click Save.

5. Exit Payment Instrument Update.

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Payment Instruments Status Change

Use Payment Instruments Status Change to change the status of an AR payment instrument.


Movement between statuses may require a general ledger (GL) journal entry to move the balance if either of theassociated stages has a Posted status and the old and new posting codes are different. As a result, the documenttype may need to change and a legal number may need to be created for the change of status.

There are limitations on the direct status changes that are possible in the system. The following table gives detailsof the permitted status changes.

Note Some status changes can only be performed using other routines.

Destination StagePermitted Source Stage

Apply to BankPortfolio

PortfolioPortfolio, Apply to Bank

CancelledPortfolio, Unapproved

UnapprovedPortfolio

To change status from Portfolio to Apply to Bank, you must also select bank account and payment methodinformation.

Note To change the status from Apply to Bank to Unapproved, you must first change the status toPortfolio. You can then make the further change to Unapproved.

Once a payment instrument reaches the Settled or Cancelled stage, no further changes are possible.

Details of reversals are as follows:

• Apply to Bank to Portfolio - If the company bank is not defined for the payment instrument (PI) type, thenadditionally clear the bank number.

• Portfolio to Unapproved - Verify any flags against the invoice showing portfolio items are reversed.

• Portfolio to Cancelled - Verify all invoice references are also reversed.

The following status changes are made through other routines:

• Unapproved to Portfolio - Enter all accounts receivable (AR) allocations within the Payment Instrument Entryroutine.

• Any status going to a Settled status - Use Bank Reconciliation Entry.

Note For any status going to a Cancelled status, use Payment Instrument Status Change.

Menu Path


• Financial Management > Accounts Receivable > General Operations > Payment Instrument Status Change

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Workshop - Change Payment Instrument Status

In this workshop, change the status of the promissory note you created in Workshop - Enter a Promissory NoteAgainst the Invoice, so it is ready to be applied to the bank. To clear a payment instrument in Bank Reconciliation,its status must be Apply to Bank.

Navigate to Payment Instrument Status Change.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument StatusChange

1. Click New.

2. In the Group ID field, enter XXX (where XXX are your initials).

3. In the Status field, select XXX Apply to Bank Status AR (where XXX are your initials).

This is the status to which you are changing the promissory note.

4. In the Bank Account field, select Main Checking Account.


6. Click Save.

7. From the Actions menu, select Select Payment Instruments.

The Select Payment Instruments window displays.

8. In the From field, select the first day of the current month.

9. In the To field, select the date two months from today.

10. In the Payment Instrument Type field, select XXX AR Received (where XXX are your initials).

11. Click OK.

The Payment Instrument Browse window displays.

12. In the Payment Instruments grid, select the payment instrument you entered in the Workshop - Enter aPromissory Note Against the Invoice, XXX-Received (where XXX are your initials).

13. Click OK.

In the Group sheet, in the Payment Instruments grid, the selected promissory note displays.

14. Click Save.

15. From the Actions menu, select Post Group.The group is posted.

16. Exit Payment Instruments Status Change.

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Review Changes in Payment Instrument Tracker

In this workshop, use the payment instrument tracker to view details of the status change.

Navigate to the AR Payment Instrument Tracker.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument Tracker

1. In the ID field, enter the ID of the payment instrument whose status you changed in the previous workshop,namely XXX-Received (where XXX are your initials).

2. Navigate to the AR PI Move sheet.

3. Click Retrieve.

4. Note the current status in the Status field, and that Bank displays in the Stage field, denoting the changeto Apply to Bank status in the previous workshop.

5. Exit the AR Payment Instrument Tracker.

Payment Instrument Cancellation

Use Payment Instruments Status Change to change the status of a payment instrument to Cancelled in orderto void it and reverse all associated accounting movements.

Note It is not possible to change the payment instrument status to Cancelled if the current status is Applyto Bank. You must first change the status back to Portfolio using Payment Instruments Status Change.

Workshop - Cancel a Payment Instrument

In this workshop, void a payment instrument by setting its status to Cancelled. Then review the new balance ofthe related invoice in the Invoice Tracker.

Change Payment Instrument Status to Cancelled

Navigate to Payment Instrument Status Change.

Menu Path: Financial Management > Accounts Receivable > General Operations > Payment Instrument StatusChange

1. Click New.

2. In the Group ID field, enter XXX-Canc (where XXX are your initials).

3. In the Status field, select XXX Cancelled Status for AR (where XXX are your initials).

4. In the Bank Account field, select Main Checking Account.


6. Click Save.

7. From the Actions menu, select Select Payment Instruments.

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The Select Payment Instruments window displays.

8. In the From Field, select the first day of the current month.

9. In the To field, select the date two months from today.

10. In the Payment Instrument Type field, select XXX AR Received (where XXX are your initials) displays.

11. Click OK.

The Payment Instrument Browse window displays.

12. In the Payment Instrument grid, select the payment instrument entered in the Workshop - Receive thePre-Authorized Promissory Note, namely PI-XXX (where XXX are your initials).

13. Click OK.

In the Group sheet, in the Payment Instruments grid, the selected promissory note displays.

14. Click Save.

15. Navigate to the Allocations sheet.

Review details of the invoice the payment instrument relates to.

16. From the Actions menu, select Post Group.

The AR PI Voiding Post Process window displays.

17. Click Submit.

18. Close the AR PI Voiding Post Process window.

19. Exit Payment Instruments Status Change.

View Invoice Balance in Invoice Tracker

Navigate to the AR Invoice Tracker.

Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Tracker

1. In the Invoice field, search for and select the invoice you created in Workshop - Generate a Pre-AuthorizedPromissory Note.

2. In the Invoice Balance field, verify 2,080.00 now displays.

The invoice balance was zero until you cancelled the payment instrument.

3. Exit AR Invoice Tracker.

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Daily Payment Instrument Payables Processing

This section of the course reviews payment instrument payables processing that takes place during a typical workday. In the Accounts Payable (AP) module, use payment instruments to enter and track printed or completedpayment instruments you receive from suppliers.

You have the option to choose whether or not to use payment instrument payables for tracking purposes. Apayment instrument can be created for an individual invoice or for multiple invoices.

Tip Payment instrument payables are similar to payment instrument receivables - only reversed. Insteadof receiving the instruments from customers, you record payment instrument payables against yourcompany's own purchasing invoices.

Payment Instrument Payable Entry

Use Payment Instrument Payable Entry to track the entry of instruments applied to supplier invoices at a laterdate. This allows you to track and control promissory notes, post-dated checks, and other future-dated paymentinstruments.

Payment instrument entry often occurs in connection with a promissory note received with an accounts payable(AP) invoice. Payable instruments result in the withdrawal of funds needed to pay the debt.

Use this program to do the following:

• Track resulting movements and value changes for audit and credit control purposes.

• Void instruments (which re-opens the invoice(s) to which the payment instrument was applied).

• Change how you use payment instruments. For example, the company pays one of the invoices covered bya promissory note in cash. You can use this program to allocate the note payments to a different payable.

• Reflect on tax consequences. This can include journal generation to reflect the payment of taxes due on afinal settlement or cash movement.

The Epicor application allows you to configure the process to reflect the laws governing these instruments. Somecountries require that the cash account for your company always reflect the value that is truly in the bank. Othercountries place the check amount into a holding account, which is reduced when the bank statement is reconciled.

In addition, the process allows:

• Immediate payment generation for AP invoices paid by promissory notes.

• Negotiation of one payment instrument to other suppliers as payment for other invoices.

• Use of a check, credit card, purchase card, debit card, or Electronic Funds Transfer (EFT) to send payments toa supplier.

Example A company receives three supplier invoices for $1,500, $500, and $2,000, and a promissorynote for $4,000. The company enters and posts the invoices in AP Invoice Entry and the promissory notein Payment Instrument Payable Entry.

The promissory note specifies the bank accounts used for withdrawal and deposit, defines the payment schedule,and lists the invoices to which the promissory note applies. As a result, the Epicor application does the following:

• Marks the invoices as paid when the promissory note is posted. General ledger movement does not reflectbank fees resulting from note entry.

• Treats the promissory note the same as any other payable.

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• Reflects any bank fees owed in connection with the note.

• Displays the note on the Aged Payables Report because it represents future-period payments.

• Displays withdrawals connected with the note as debits to the company bank account.

• Closes the note when the debt is paid. You cannot change a note once it is closed.

Menu Path


• Financial Management > Accounts Payable > General Operations > Payment Instrument

Workshop - Record and Apply a Payment Instrument Payable

In this workshop, enter a payment instrument payable to record a promissory note you receive from a supplier.Then apply it to three previously posted accounts payable (AP) invoices received from the supplier and post thepayment instrument. Review the Aged Payables Report at the beginning and end of the process to verify results.

Important Due to necessary database setup and specific data used to work with payment instrumentpayables, this workshop can only be performed by one person on a shared database.

View Open Invoices for a Specific Supplier

Navigate to the Aged Payables Report.

Menu Path: Financial Management > Accounts Payable > Reports > Aged Payables

1. In the Aged As Of field, select the last day of the current month.

2. Navigate to the Filter > Supplier sheet.

3. Click the Supplier button and search for and select ADELPHI.

4. Click Print Preview and review the report.

Note the three open invoices (10005, 10010, 10020) that total $4,000.00 for Adelphi Aircraft.

5. Close the report and minimize Aged Payables Report.

Enter a Promissory Note

Navigate to Payment Instrument Payable Entry.

Menu Path: Financial Management > Accounts Payable > General Operations > Payment Instrument


2. In the Group field, enter XXX (where XXX are your initials).

3. In the Bank Account field, select Main Checking Account and click Save.


The Payment Instrument Payable > Header sheet displays.

5. Verify the Manual check box is clear.

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The Payment Instrument ID field is disabled and the ID is automatically generated by the Epicor application.

6. In the Description field, enter First PI - Adelphi Aircraft.

7. In the Supplier field, enter ADELPHI and press Tab.

The Supplier's Bank Info pane populates with Adelphi Aircraft's bank account information from its SupplierMaintenance record.

8. In the Type field, select XXX AP Generate (where XXX are your initials).

9. In the Status field, verify XXX Portfolio Status for AP (where XXX are your initials) defaults.

10. Click Save.

Apply the Payment Instrument to Invoices

1. From the New menu, select New Invoice Payment.

The Payment Instrument Payable > Invoice Detail sheet displays.

2. In the Invoice field, enter 10005 and press Tab.

The invoice details populate the fields.

3. In the Gross Value field, verify the invoice value defaults and click Save.

If the invoice value does not default, enter the invoice value manually.

4. Repeat steps 1-3 to apply invoices 10010 and 10020 to the payment instrument payable.

5. Click Save.

6. Navigate to the Payment Instrument Payable > Header sheet.

7. In the Bank Amount field, verify 4,000.00 displays.

Preview AP Payment Instrument Report

1. From the Actions menu, select Print Payment Instrument.

The AP Payment Instrument Report window displays.

2. Click Print and select Client Printer.

The Print window displays.

3. Select a printer and click OK.

For the purposes of this workshop, print to a document writer if possible.

4. Review the report.

5. Close the report and the AP Payment Instrument Report window.

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Post the Payment Instrument Payable


The AP PI Payment Post Process window displays.

2. Click Submit.

3. Close the AP PI Payment Post Process window.

4. Exit Payment Instrument Payable Entry.

Aged Payables Report

Use the Aged Payables report to review all the open invoices for each supplier.

These invoices are displayed in order by the number of days in which they are past due. You can select the invoicesby Apply Date or Invoice Date. You can then age the invoices in the report by Due Date or Invoice Date afterselecting the Age As of Date. If you have selected the Hold Payment option for an invoice in AP Invoice Entry,the invoice displays on the report with an asterisk to the left of the invoice number.

Tip Use this report as a secondary ledger for your AP accounts. This report’s Total should reconcile to theending balance of the Accounts Payable account.



Menu Path


• Financial Management > Accounts Payable > Reports > Aged Payables

Workshop - Review the Aged Payables Report

In this workshop, review the Aged Payables Report. Now that the promissory note is posted, the open invoicesto which you applied the instrument will no longer display.

Maximize the Aged Payables Report window.

Menu Path: Financial Management > Accounts Payable > Reports > Aged Payables

1. Accept all defaults.

The report settings from the last time you ran the Aged Payables Report should still be selected.


The three invoices for Adelphi Aircraft (10005, 10010, and 10020) that were open at the start of thisworkshop are no longer on the Aged Payables report.

3. Close the preview window and minimize the Aged Payables Report.

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AP Payment Instrument Status Change

Use Payment Instrument Payable Status Change to view details and change the status of an AP paymentinstrument.


Movement between statuses may require a general ledger (GL) journal entry to move the balance if either of theassociated stages has a Posted status and the old and new posting codes are different. As a result, the documenttype may need to change and a legal number be created for the change of status.

When you select an individual payment instrument, the details display within this program, including its associatedinvoices. Although most of the fields are for viewing only, you can change the Due Date and the Descriptionfields on the Header sheet. You can also print an individual payment instrument.

There are limitations on the direct status changes that are possible in the system. The following table gives detailsof the permitted status changes.

Note Some status changes can only be performed using other routines.

Destination StagePermitted Source Stage

PortfolioPortfolio

CancelledPortfolio, Unapproved

UnapprovedPortfolio

Once a payment instrument reaches the Settled or Cancelled stage, no further changes are possible.

Details of reversals are as follows:

• Portfolio to Unapproved - Verify any flags against the invoice showing portfolio items are reversed.

• Portfolio to Cancelled - Verify all invoice references are also reversed.

The following status changes are made through other routines:

• Unapproved to Portfolio - Enter all accounts receivable (AR) allocations within the Payment Instrument Entryroutine.

• Any status going to a Settled status - Use Bank Reconciliation Entry.

Note For any status going to a Cancelled status, use Payment Instrument Status Change.

Menu Path


• Financial Management > Accounts Payable > General Operations > PI Status Change

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AP Payment Instrument Cancellation

Use Payment Instrument Payable Status Change to cancel an Accounts Payable (AP) payment instrument.

When you cancel an AP payment instrument, the associated accounting movements are reversed.

Menu Path: Financial Management > Accounts Payable > General Operations > PI Status Change

Workshop - Cancel an AP Payment Instrument

In this workshop, cancel the payment instrument you applied to the three invoices in Workshop - Record andApply a Payment Instrument Payable. Review the Aged Payables Report again at the end of the process to verifyresults.

Important Due to necessary database setup and specific data used to work with payment instrumentpayables, this workshop can only be performed by one person on a shared database.

Change the Payment Instrument Status to Cancelled

Navigate to Payment Instrument Payable Status Change.

Menu Path: Financial Management > Accounts Payable > General Operations > PI Status Change

1. In the ID field, search for and select the payment instrument you entered in the Workshop - Record andApply a Payment Instrument Payable.The details of the payment instrument display.

2. From the Actions menu, select Status Change.The Status Change window displays.

3. In the PI Status field, select XXX Cancelled Status for AP (where XXX are your initials).

4. In the PIType field, verify XXX AP Generate displays (where XXX are your initials).

5. Click OK.

The AP PI Voiding Post Process window displays.

6. Click Submit.

7. Close the AP PI Voiding Post Process window.

8. Click Save.

9. Exit Payment Instrument Payable Status Change.

Review the Aged Payables Report

Now that you have cancelled the promissory note, the invoices to which you had applied the instrument displayin the Aged Payables report.

Maximize the Aged Payables Report window.

1. Accept all defaults.

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The report settings from the last time you ran the Aged Payables Report should still be selected.


The three invoices for Adelphi Aircraft (10005, 10010, and 10020) that you applied to the payment instrumentin the previous workshop now display on the Aged Payables report again.

3. Close the preview window and exit the Aged Payables Report.

AP Payment Instrument Write Off

Use AP Payment Instrument Write Off to write off the entire value of a payment instrument to the generalledger (GL).


The payment instrument to be written off must be in Portfolio status. Once written off, the payment instrumentis considered settled and all associated invoices are fully paid.

Menu Path


• Financial Management > Accounts Payable > General Operations > PI Write Off

Workshop - Write Off an AP Payment Instrument

In this workshop, enter a new promissory note and apply it to an open invoice. You later decide to write off thepromissory note, using AP Payment Instrument Write Off.

Navigate to Payment Instrument Payable Entry.

Menu Path: Financial Management > Accounts Payable > General Operations > Payment Instrument

Enter a New Promissory Note


2. In the Group field, enter XXX2 (where XXX are your initials).

3. n the Bank Account field, select Main Checking Account and click Save.


The Payment Instrument Payable > Header sheet displays.

5. Select the Manual check box.

6. In the Payment Instrument ID field, enter PI0002 ADEL.

7. In the Description field, enter Second PI - Adelphi Aircraft.

8. In the Supplier field, enter ADELPHI and press Tab.

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9. In the Type field, select XXX AP Generate (where XXX are your initials).

10. In the Status field, verify XXX Portfolio Status for AP (where XXX are your initials) defaults.

11. Click Save.

Apply the Promissory Note to Invoices

1. From the New menu, select New Invoice Payment.

The Payment Instrument Payable > Invoice Detail sheet displays.

2. In the Invoice field, enter 10005 and press Tab.

The invoice details populate the fields.

3. In the Gross Value field, verify the invoice value defaults and click Save.

4. Navigate to the Payment Instrument Payable > Header sheet.

5. In the Bank Amount field, verify 1500.00 displays.

Post the Promissory Note


The AP PI Payment Post Process window displays.

2. Click Submit.

3. Close the AP PI Payment Post Process window.

4. Exit Payment Instrument Payable Entry.

Write Off the Promissory Note

Navigate to AP Payment Instrument Write Off.

Menu Path: Financial Management > Accounts Payable > General Operations > PI Write Off

1. In the ID field, search for and select the promissory note you entered in this workshop, PI0002 ADEL.

2. In the PI Status field, select XXX Settled Status for AP (where XXX are your initials).

3. In the Account field, enter 2000-00-00.

This is the account that is credited in the write-off. The debit account is taken from the GL control for theSettled status.

4. Click Save.

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AP Payment Instrument Tracker

The AP Payment Instrument Tracker is a display only version of the primary entry program. Use the tracker toreview current information about a selected record.


Menu Path


• Executive Analysis > Trackers > A/P Payment Instrument Tracker

• Financial Management > Accounts Payable > General Operations > Payment Instrument Tracker

Workshop - Review Payment Instrument Details

In this workshop, review details of the payment instrument you wrote off to the general ledger (GL).

Navigate to the AP Payment Instrument Tracker

Menu Path: Financial Management > Accounts Payable > General Operations > Payment Instrument Tracker

1. In the ID field, search for and select the payment instrument ID created in Workshop - Write Off an APPayment Instrument, PI0002 ADEL.

2. In the Status field, verify XXX Settled Status for AP displays (where XXX are your initials).

3. Navigate to the InvoiceDetail sheet.

4. In the New Balance field, verify 0.00 displays.

5. Navigate to the Audit Trail sheet and click Retrieve.

6. Review the items in the Audit Trail grid.

7. Navigate to the GL Transactions sheet and click Retrieve.

8. Review the accounting transactions associated with the payment instrument write-off.

9. Exit the Payment Instrument Payable Tracker.

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Specialized Payment Instrument Processing

This section of the course deals specifically with the clearing of AP and AR payment instruments using BankReconciliation Entry.

Bank Reconciliation Entry

Bank Reconciliation Entry reconciles bank statements with the cash transactions created through accountspayable (AP) payments, payroll check processing, accounts receivable (AR) cash receipts, payment instruments,and other bank transactions.

Bank Reconciliation Entry only processes and clears cash transactions. To reconcile cash transactions, create andedit bank account statements.

The main functions of Bank Reconciliation Entry include the following:

• Select specific transactions (payments, cash receipts, payment instruments, payroll processing) to clear fromthe bank account.

• Create bank adjustments and enter manual AP payments.

Note To enable settlement discount calculation for debit memos, select the Enable terms on debitmemos check box in the Company Maintenance program (Modules - Finance - Accounts Payable).

• Add deposit, invoice, and miscellaneous cash receipts that have not been entered in the Epicor application.

• Post new transactions to the current bank account and to the general ledger (GL) accounts specified in theGL controls attached to the bank account.

Depending on how you receive bank statements, use Bank Reconciliation Entry monthly or daily. If you reconcilechecks monthly, update your records with the bank statement your financial institution provides on a monthlybasis. If you use this program daily, it becomes more like a journal because you can reconcile bank statementswith each transaction.

Note Use Bank Reconciliation Entry to review open transactions at a selected bank when you need thisinformation.

Settings in Bank Account Maintenance determine when bank account deposits and withdrawals affect cashaccounts in the books. When the Reconciled AR Balance or Reconciled AP Balance check boxes are selected,deposits and cash withdrawals are posted to pending cash accounts and only moved from the correspondingpending accounts to cash when these items are reconciled using Bank Reconciliation Entry.

Menu Path


• Financial Management > Accounts Payable > General Operations > Bank Reconciliation

• Financial Management > Accounts Receivable > General Operations > Bank Reconciliation

• Financial Management > Cash Management > General Operations > Bank Reconciliation

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AR Payment Instrument Clearing

Use the PI Receivable sheet to clear a payment instrument received against the current bank account.

When you create a new accounts receivable (AR) payment instrument clearing, all current payment instrumentreceivables for the selected bank display in the Payment Instruments grid; they are initially listed in numericalorder by promissory note number.

On the Payment Instruments grid, define which payment instruments were successfully processed through thebank. As you select or clear items in the grid, the total amounts display in the fields located in the SelectionTotals pane.

Once you post a bank statement, the status of cleared payment instruments changes to Settled.

For more information on reconciling bank statements, refer to the Application Help.

Workshop - Clear an AR Payment Instrument

Create a bank reconciliation to process an AR payment instrument.

Add a Bank Reconciliation Statement

In Bank Reconciliation Entry, create a new bank statement.

You receive a monthly bank statement for your company which displays payment received for the paymentinstrument whose status you changed in Workshop - Change Payment Instrument Status. This task demonstrateshow to add a bank statement.

Navigate to Bank Reconciliation Entry.

Menu Path: Financial Management > Accounts Payable > General Operations > Bank Reconciliation

Important Due to necessary database setup and specific data used to create a statement, this workshopcan only be performed by one person on a shared database. Contact your system administrator to verifyyour demonstration database is refreshed.

1. In the Bank ID field, search for and select Main Checking Account.

2. From the New menu, select New Statement.

3. In the Apply Date field, select the last day of the current month.

4. In the available Statement field, enter XXX Reconciliation (where XXX are your initials).

5. In the Opening Date field, enter the first day of the current month.

6. In the Closing Date field, enter the last day of the current month.

7. Click Save and remain in Bank Reconciliation Entry.

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Initiate an AR Payment Instrument Clearing

Within Bank Reconciliation Entry, create an AR Payment Instrument Clearing to clear the AR payment instrumentlisted on your bank statement.

1. From the New menu, select New A/R Payment Instrument Clearing.

The Payment Instrument Clearing > PI Receivable sheet displays.

All uncleared AR Payment Instruments with status Apply to Bank display in the Payment Instruments grid.

2. In the Payment Instruments grid, select the payment instrument entered in Workshop - Enter the PromissoryNote Against the Invoice, namely XXX-Received (where XXX are your initials).

3. Click Clear.Verify the Selected field now displays 3120.00 and the Cleared Bank check box is now selected.

4. Click Save and remain in Bank Reconciliation Entry.

Post the Statement

In this workshop task, complete the statement details and post the bank statement.

In order to post a bank statement, there must be no variance. For the purposes of this workshop, it is assumedthat the only item on the bank statement was the payment received for the payment instrument selected forclearing.

Note If your company receives and reconciles bank statements on a monthly basis, there will almostcertainly be numerous items on the statement, rather than the single item assumed in this workshop.

1. Navigate to the Statement sheet.In the Bank Reconciliation Lines grid, verify the AR payment instrument selected in the previous taskdisplays.

2. In the Closing Balance field, next to the Closing Date field, enter a positive equivalent of the value whichcurrently displays in the Variance field.

Note This equates to: Opening Balance + Line Total. In a real world scenario, you would enter theclosing balance as found on the bank statement from your bank.

3. Click Save.

Verify the Variance field now displays 0.00.

4. From the Actions menu, select Post Statement.

5. To the message Are you sure? click Yes.

The Bank Reconciliation Post Process window displays.

6. Click Submit.

7. Close the Bank Reconciliation Post Process window.

8. Exit Bank Reconciliation Entry.

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AP Payment Instrument Clearing

Use the PI Payable sheet to clear a payment instrument paid against the current bank account.

When you create a new payment instrument clearing, all current payment instruments for the selected bankdisplay in the Payment Instruments grid; they are initially listed in numerical order by promissory note number.

On the Payment Instruments grid, define which payment instruments were successfully processed through thebank. As you select or clear items in the grid, the total amounts display in the fields located in the SelectionTotals pane.

Tip For this course, there are no outstanding AP payment instruments that need to be cleared. For moreinformation on reconciling bank statements, refer to the Application Help.

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Conclusion

Congratulations! You have completed the Payment Instruments course.

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Payment Instruments CourseConclusion

Additional information is available at the Education andDocumentation areas of the EPICweb Customer Portal. To access

this site, you need a Site ID and an EPICweb account. To create anaccount, go to http://support.epicor.com.

http://support.epicor.com

Documents

Payment Instruments