NOTE: In order for users to submit the Cash Control document, the ENABLE_BANK_SPECIFICATION_IND parameter must be set to Y and the DEFAULT_BANK_BY_DOCUMENT_TYPE parameter must be completed. Even if your institution is not planning to use the Bank Offset feature in Kuali Financials, the DEFAULT_BANK_BY_DOCUMENT_TYPE parameter must be completed if your users plan to use the Cash Control document. Bank offsets will not be created if the Bank Offset feature has not been configured.
A Cash Control is created when payments need to be applied to customer invoices. Authorized users open the Cash Control and add a line for each customer payment received for the same medium type. Different entries are created depending on the medium selected. Refer to the Payment Medium article for details.
As customer payments are added, a Payment Application is created and saved for that customer. Once all customer payments have been added, each Payment Application is opened and payments are applied to invoices, posted to non-AR accounts or to customer accounts as unapplied payments for later processing.
Once all payment applications have been submitted, the Cash Control is submitted and routes to the Accounts Receivable Lockbox Manager. The approver will see a Generate button in the General Info tab when a payment medium other than Cash is selected. The approver clicks this button to generate entries and can then approve the document. The Payment Application clears the receivable and posts entries into a clearing account defined in the System Information table. The Cash Control clears those entries and creates bank offsets if bank offsets functionality is turned on.
Step 1 - Create a Cash Control
Enter or lookup a bank code and select a Medium Code. Refer to the Payment Medium article for more details. If Medium Cash is selected, a Reference Document Number field is added. Enter the document number of the document used to deposit the cash. This will typically be a Cash Receipt or Advance Deposit.
Add a line for each customer that needs to have payment applied. Payments will need to be grouped by Payment Medium, multiple customers can be listed for each payment medium. When a customer is added a Payment Application document is created and is referenced in the Application Doc # field. Pay Apps are in SAVED status. The Medium ID, Date and Description are optional fields to provide further detail about the payment.
NOTE: If you need to change a customer number, you can change the customer number on the Cash Control, however, it will not update the Pay App that has already been created. Load the new customer and associated invoices when you process the Pay App.
Clicking the Cancel button next to a customer will cancel the Pay App, changing the status to CANCELED, make the line read only and the amount 0.00.
Once you've added all the customers, you're ready to complete the Pay Apps that have been created.
Step 2 - Complete the Payment Applications
The Document Overview of the Payment Application contains a pre-filled description and can be changed. Additionally the Cash Control is entered in the Organization Document Number field.
The Control Information tab lists the Cash Control number, the Customer, the amount that needs to be applied (Control Total) and the Amount remaining to be applied (Open Amount). Payment # is the Medium ID added to the Cash Control for this customer.
Summary of Applied Funds compares the Cash Control Amount to the Open Amount and the Applied Amount. The Payment Application cannot be submitted until the Open Amount is 0.00.
There are two ways to apply payment to invoices. The first is with the Quick Apply to Invoice tab, invoices and their open amounts are listed. If the full amount can be applied, you can check the appropriate lines and click Apply.
OR you can use the Apply to Invoice Detail tab if the amount to be applied is different than the full amount. Select the invoice from the drop down if the invoice displaying is not the correct one and click Load. Details about the invoice display, including the Header Text entered on the Customer Invoice document. Enter the amount to Apply and click Apply.
After payment has been applied the Amount Applied to Invoice is updated with the applied amount. The Open Amount / Total is not updated until the Payment Application and Cash Control are Final.
The Summary of Applied Fund tab is updated with Invoice to which payment was applied. The Open Amount in the Unapplied Funds section is 0.00 and Applied Amount = Cash Control. The Payment Application can be submitted.
The Non-AR tab can be used to post receipts that are not associated with an invoice to the General Ledger.
And Payments can also be associated with a Customer to be applied at a later date, when an invoice is identified for payment.
When an unapplied payment is made, the Summary of Applied Funds updates as follows. To apply this payment at a later date, you will initiate a Payment Application without a Cash Control. See the section below: Applying Unapplied Payments.
Payment Applications do not route unless an ad hoc route is added.
General Ledger Pending Entries are created on the Payment Application to post entries to a clearing account until the cash control is complete; to reduce the receivable, to post the non-are entries and to post entries into the organizations clearing account when unapplied entries are made.
Step 3 - Complete the Cash Control
Return to the Cash Control. Click the Reload button to refresh the Cash Control. All lines with FINAL or ENROUTE Payment Applications are read only. Additional customer payments can be added until the Cash Control is submitted.
Cash Controls route to the Lockbox Manager role for approval.
Step 4 - Approve the Cash Control
As the Cash Control Approver, when payment mediums other than Cash are selected, you will need to Generate General Ledger Pending Entries. The entries created, clear entries from the clearing account and create bank offset entries if the bank offset functionality is turned on. After the entries are generated, you can approve the document.
Applying Unapplied Payments
Open the Application document from the dashboard. Enter the Customer Number that needs to have a payment applied. Click Load. If there are any unapplied payments associated with this customer they will be listed in the Control Information tab.
The Control Information tab lists the Application document numbers where unapplied payments were made for this customer that are still outstanding.
Applying payments to invoices is described above. Additionally, the Unapplied section is not available because the Payment Application was not initiated from a Cash Control.