MEMORANDUM SA 99-04
|TO:||Fiscal Officers All State Agencies'|
|FROM:||F. Howard Karlton CPA, Director|
|SUBJECT:||Year End Liquidation of Accounts Payable/Credit Memos at 8/14/98|
The CLEARPAY process will be run the night of 8/14/98 to liquidate or reverse outstanding accepted FY98 payment vouchers/credit memos. The CLEARPAY process will either generate a check or reverse the payment voucher/credit memo with a P2 transaction. The criterion which determines how the payment vouchers/credit memos are cleared from AFS is listed below.1. A payment voucher/credit memo not previously liquidated will generate a check on 8/17/98, if held for:
A. Insufficient cash balances (MOF and cash account) or
B. Future scheduled payment dates (i.e., the scheduled payment date is greater than 8/14/98).
The scheduled payment date on the AFS OPVH table will be changed to 8/14/98 for documents meeting the criteria listed in B above.
2. A payment voucher/credit memo held for the following reasons will be reversed with a P2 transaction:
A. Payment voucher/credit memos to nonactive vendor codes,
B. Payment voucher/credit memos placed on hold at the agencies' request by OSRAP, if the agency has not requested the document be released or
C. Payment voucher/credit memo being held because credits exceed debits.
If the credit balance is greater than the payables in ISIS, the agency will have to request a check from the vendor for the difference due and deposit the check upon receipt to either income not available or the agency's means of financing, as appropriate. Agencies will be responsible for maintaining a manual receivable ledger for outstanding credit memos.
If a CFMS payment voucher/credit memo is reversed on a FY98 single year contract, the agency should enter a KAMD ADJ to adjust the prior year contract balance to show the net amount reversed. If the contract is a multi-year contract, the agency will adjust the FY99 encumbrance. For example, the agency had a credit of $200 and payables of $150 to the same vendor on the same contract and both were reversed by CLEARPAY. The vendor still owes the agency $50. The agency enters a KAMD type INC increasing the FY99 encumbrance by $50. For more information request CFMS procedures 321 and 322 from the ISIS Help Desk at (504)342-2677.
Agencies are strongly urged to review the 1G07B Unscheduled Payment Turnaround report for transactions which will be affected by the CLEARPAY process. If the agency has reentered a payment voucher/credit memo which generated a check to replace one listed on 1G07B because of insufficient cash, future scheduled payment dates and invalid accounting distribution information, the agency should:
1. Modify the original voucher to zero for AFS created documents,
2. Change the status code to 697 on OPAY for AGPS created documents or
3. Change the status code to CXP on KINV for CFMS created documents.
Manual reversals must be done by 8/11/98 on encumbrance related payments/credits or 8/14/98 for direct payments/credits to avoid issuing a duplicate check. If the agency has a voucher listed on 1G07B and the voucher will be reversed by the CLEARPAY process, the agency should verify that a check is no longer needed. If the check is still needed, the agency should take the necessary actions to have a check cut to the vendor. If the original voucher was not flagged to issue a single check, the checks issued from the CLEARPAY process will issue on consolidated checks.
The 4G13 Liquidation of Accounts Payable and Credit Memos report is generated from the CLEARPAY process and will be placed in BUNDL by August 17, 1998. The report will list payment vouchers/credit memos which have been reversed. Payment vouchers/credit memos which generated a check, will not be listed on this report, they will be listed on the 1G06B Scheduled Payment Turnaround report.
If you have any questions, please contact the OSRAP Help Desk at (504)342-1097.
|POST OFFICE BOX 94095||STATE CAPITOL ANNEX||BATON ROUGE, LA 70804-9095|
|(504) 342-0708||FAX (504) 342-1053|
|AN EQUAL OPPORTUNITY EMPLOYER|