Create an Automated Disbursement with Adjustments

These steps below should be performed to create an Automated Disbursement with the following adjustments:

Perform these steps:

  1. Verify the settings on the System Options table.

  1. Calculate Interest flag is True

  2. Interest Percentage is specified

  3. Intercept flag is True

  1. Verify the settings on the 1099P table.

Backup Withholding flag is True and the percentage is entered. Backup Withholding can be applied for 1099 or 1042-S vendors. Enter fields on 1099P as it applies to your site.

  1. Add a record to the Intercept Request table with a valid TIN and TIN type. Make sure that the record has enough amount to recover from the payment to the Vendor.

  1. Process three Payment Request transactions.

  1. PR 1 - with 3 ALs. One of the AL is for negative amount and make sure that the net amount is positive. Also enter Discount terms at the Commodity line.  Select the Always Discount check box on the first discount term.

  2. PR 2 - process with two ALs. Enter an Object Code that is eligible for back up withholding. Also set the Scheduled Payment Date in such a way that this PR is overdue and eligible for Interest payment.

  3. PR 3 - process this PR with the Vendor with a TIN and TIN Type matches the TIN and TIN type on the Intercept Request Table. Make sure the amount is greater than the debt amount on the INTR table.

  1. (Administrator) Ensure Disbursement Parameter (DISPA) settings are set. These settings will drive selection of disbursement request records eligible for disbursement. Make sure that there is a DISPA record with the Disbursement Type set to Check and the Bank Account on the DISPA record matches the DISPA on the PR accounting lines. Make sure to set the Check Date in such a way that the process calculates Interest on the Overdue payments (payment request 2).

  1. (System Administrator) Execute the AD Chain job.

  2. (System Administrator) Verify job completes successfully.

  3. Review job results and report output.

  4. Review Disbursement transaction (AD) created. The generated AD transactions will have the following adjustment amounts: Discount, Interest, Intercept, Back up withholding and the Credit Memo also would have adjusted against these payments.