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EAR 9.2: Payment Predictor Is Not Taking Into Consideration Earned Discount nor Tolerance When Applying Second Payment Against Item’s Remaining Balance Amount (Doc ID 2832763.1)

Last updated on JANUARY 10, 2022

Applies to:

PeopleSoft Enterprise FIN Receivables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms


The Business is trying to use Payment Predictor functionality to generate Payment Worksheets that match existing Payments with outstanding Invoices from customers, and as such, the Payment Predictor Method is defined with Algorithm #DTL_TLR. On top of that, the below additional configuration settings have been enabled:

    1) At the Customer's Billing Options set up level, the 'Partial Payment Switch' check-box has been enabled.
    2) The Payment Terms of the Customer's Invoices are set to ensure that the Due Date will be in 30 days after the transaction's date, with a 2% earned Discount on the original amount if the payment is received in full within the first 10 days.
    3) At the Predictor Detail Options set up level, the Invoice and Discount Tolerance Amounts have been set at 1 USD

A problem though has been detected when the Payment Predictor is trying to apply a Payment with the remaining balance of an existing Item. Even though the Payment is received within the first 10 days, and hence the Earned Discount is still applicable, as well as the Tolerance defined at the Predictor Detail Options set up page, the resulting Payment Worksheet does not apply neither of those amounts, leaving behind an un-desired result.

REPLICATION STEPS:

    1.- Log into the FSCM Online Application as a Receivables User
    2.- Define a Customer with Payments Terms stating that the Invoices are due after 30 days, but if paid within the first 10 days, a discount of 2% would be applied (Payment Terms = 21030), and ensure the Partial Payment Switch is selected
    3.- Define a Payment Predictor Method using Algorithms #REFS and #DTL_TLR
    4.- Set up that Payment Predictor Method at the Receivables Business Unit Options, as well as configure the Predictor Detail Options to have:
           a) Invoice Tolerance Amount of 1.00 USD
           b) Invoice Tolerance Percent = 1%
           c) Discount Tolerance Amount of 1.00 USD
           d) Discount Tolerance Percent = 1%
    5.- Create a Pending Group for the Customer, and define 1 Item, for an amount of 100.00 USD, and set it to Post Action Batch Standard
    6.- Run AR Update for the Business Unit value used, and Pending Items flag selected
    7.- Ensure that the Item has been posted against the Customer's Account, and calculated a Discount of 2.00 USD
    8.- Create a first new Regular Deposit, with one Payment for an amount of 95.00 USD, and link it to the Customer ID, Business Unit, and Item in question, while ensuring the Payment Predictor flag is selected
    9.- Launch the Payment Predictor process for the Business Unit at hand
    10.- Confirm that the system has created a balanced Payment Worksheet, with a Post Action of Batch Standard
    11.- Run AR Update for the Business Unit value used, and Payments flag selected
    12.- Upon reviewing the Item's Activity, it is confirmed that a Partial Payment has been registered, leaving the Item in Open Status, and a Remaining Balance of 5.00 USD
    13.- Create a second Regular Deposit, with one Payment for an amount of 2.00 USD, and link it to the Customer ID, Business Unit, and Item in question, while ensuring the Payment Predictor flag is selected
    14.- Launch the Payment Predictor process for the Business Unit at hand
    15.- Confirm that the system has created a balanced Payment Worksheet, with a Post Action of Batch Standard (However, Earned Discount, and Tolerance Amounts do not seem to reflect in the transaction)
    16.- Run AR Update for the Business Unit value used, and Payments flag selected
    17.- Upon reviewing the Item's Activity, it is confirmed that another Partial Payment has been registered, leaving the Item still in Open Status, and a Remaining Balance of 3.00 USD

To gather more information concerning this scenario and its related problem, refer to the available Replication Steps PDF Document here linked containing the complete configuration and the replication steps necessary to reproduce the issue.

The Payment Predictor process is not taking into account the Earned Discount and Tolerance Amount of a given Item if a second Payment is being applied. It leaves incorrect balances as outstanding for the affected Customer, while the Discount is still valid. As a result, Users need to manually fix the resulting Item through Maintenance Worksheets.

The expectation is that Payment Predictor should create the new Payment Worksheets with balanced amounts, applying the Earned Discount if received within the first 10 days, and should the remaining balance be within the defined Tolerance, make the proper adjustment to write it off. As a result, the Item should be fully closed.

NOTE: In the images/screenshots/examples mentioned and/or the attached document, user details / company name / address / email / telephone number represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance).  Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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