The Automated Disbursement Chain (AD Chain) in Advantage Financial is a group of jobs that work together to create disbursement documents from the payment request documents. The Automated Disbursements process selects authorized payments, edits payments for validity, processes payment adjustments, groups the payments, formats payments, and posts payment transactions. In short, it is the process that takes payment data (posted in the form of a Commodity Payment Request, Matching Payment Request, or General Accounting Expenditure document), and transforms this into a disbursement instrument (in the form of a check/warrant or EFT record). This process also generates the documents to record the Intercept Transfers.
The AD chain has the following jobs:
Disbursement Request Initialization Batch Job
The Disbursement Request Initialization automated process will enforce consistency in Bank Accounts for payments and Single Payment flag based on the parameter values entered. Logic for each function (Bank Account and Single Payment flag) is completely independent of the other; each depends on their own parameters. This process will do the following: 1. Enforcing consistency in Bank Accounts for payments from the same fund: A Bank Account Code can be specified on the payment request Header level as well as the Accounting Line level. Either (or both) of these Bank Accounts may be different from the Check/EFT Bank Account Code associated with a referenced Fund code on the FUND table. The Bank Account Code from the Payment Request Accounting Line is stored on the Disbursement Request (DISRQ) table and used by the AD Chain to generate Check/EFT payments. Using the Disbursement Initialization batch job, your site may enforce that the Bank Accounts for the payments be consistent with the Bank Account from the Fund table. For all funds entered in the parameter, the batch process will re-infer the Bank Account Code from the FUND page based on the disbursement type, whether it equals Check or EFT. The process will update DISRQ records that match the Fund(s) listed to set the Bank Account Code on DISRQ to the Bank Account Code from the FUND page. The initialization job can be used only if the Always Use Fund Bank Account Code for Disbursements parameter on APPCTRL is set to Yes. If it is set to No, then the process will fail and generate an error that this parameter is only allowed if the parameter is equal to Yes. NOTE – This option should be used with care. Use of this option may result in negative payment request lines (credit memo lines) not being selected for payment 2. Enforcing consistency for the Single Payment flag for payment document codes: Specifying disbursements as single payments (that is, bypassing consolidation) may be specified at the time of the Payment Request or by changing the Single Payment flag on the disbursement requests using one of the Disbursement Management pages or document (DISRQ, DISBMD, or DRM document). For all valid Document Codes entered in the parameter, the batch process will update DISRQ records to set the Single Payment flag to Yes except in two situations:
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AD
XML Creation
The AD XML creation job performs the following:
The AD XML Creation job in
the AD chain selects the records from the Disbursement
Request (DISRQ) table based on the criteria specified
on the Disbursement Parameters (DISPA) table. The selected
records will undergo various validations and calculations
such as Vendor Editing, Discount, Penalty, Interest, Backup
Withholding Calculations, Contract Withholding Calculations,
Credit Memo Adjustments, and Payment Intercept Adjustments. |
The disbursement limit check step determines if the remaining DISRQ records meet the Disbursement Limit amount criteria defined on all active DISPA records. This step is performed after all other amount calculations have occurred (for example, interest, penalties, etc). Records are sorted based on their priority. The Disbursement Limit Check is performed assuming there is no Contract Withholding to ensure the disbursements will not exceed the limit. The Net Line Amount (before Contract Withholding is subtracted) is used in determining the amount that counts against the disbursement limit. Note that it is possible that Contract Withholding will eventually be found to be $0 after payment grouping threshold evaluation. Hence by not subtracting the Contact Withholding, the logic ensures that the total disbursements will not exceed the DISPA disbursement limit. Once the disbursement limit is reached, the batch process will determine if any other grouped records (after the last set of grouped records that was deemed eligible under the disbursement limit) can be added to the cumulative amount and not exceed the disbursement limit. All records that are not used in meeting the disbursement limit will have the System Hold flag set to true and the System Hold Reason set to ‘Disbursement Cycle Limit Exceeded’. |
Payment Grouping and Consolidation
After the Vendor editing and Amount calculation, the job groups selected DISRQ records into the following five categories:
Within each of these groups, the AD Chain batch process groups selected payment request accounting lines with positive amounts by the following consolidation fields:
The following fields are considered along with the above fields when consolidating payment requests for miscellaneous vendors or non-miscellaneous vendors with single check:
For each payment grouping, determine if the sum of Line Amount less Discount and Retainage over the records within the payment group is greater than or equal to the 1099P Contract Withholding Threshold. If not, Contract Withholding is reset to $0 for the records within the payment group.
The Check/EFT Number Flag on the APEVXW table can be set to either “true” (i.e. assign check numbers within Advantage 3 application) or “false” (i.e. assign checks numbers by an external system). The Check/EFT Status on the APEVXW table can be set to either “Disbursed” (if the Disbursement Option on the SOPT table is set to “Check/EFT”) or “Warranted” (if the Disbursement Option on the SOPT table is set to “Standard Warrant”, “Clearing Fund Warrant”, “Standard Warrant/EFT”, or “Clearing Fund Warrant/EFT”). Since payment requests are disbursed at the accounting line level in Advantage 3, a payment request will be disbursed by more than one disbursement document if any of the consolidation fields are not the same for all associated accounting lines. The Disbursement Type may be changed from EFT to Check by the AD XML Creation batch job if the payment request was set for an EFT payment but the vendor was not eligible for EFT payments. If the Disbursement Type is changed by the AD XML Creation job from EFT to Check and the Always Use Fund Bank Account Codes for Disbursements (APPCTRL) is set to ‘Yes’, the system will replace the Bank Account Code on DISRQ and on the AD with the Bank Account Code on the FUND record associated with the Fund and Fiscal Year on the DISRQ record. In addition, the job will create a Check Number Assignment parameter file with two records; one record will be created for each of the two parameters: Assign Check Numbers For $0 Checks as the Last Group of Checks and Assign Check Numbers for the Held Disbursement Categories as the Second Group of Checks. This file will be used by the Check Number Assignment job to control how check numbers are assigned within that process. |
Generation of Automated Disbursement Documents
The Advantage 3 Document Component Requirements (DCREQ) table can be used to limit the number of lines on any component per a document type. Limiting the number of accounting lines for generated AD documents will prevent the creation of large AD documents that can crash or cause performance degradation upon processing during the Automated Disbursement batch process, particularly, when utilizing multi-threading processing. For eligible payment requests for consolidation, if the sum amount of accounting lines exceeds $99,999,999.99 OR the number of accounting lines exceeds the maximum number of accounting lines specified for the Document Type “AD” on the DCREQ table, the AD Chain process will generate another AD document for the remainder accounting lines. Thus the accounting lines associated with a payment request could potentially be paid out by more than one AD document. Note that the Contract Withholding Threshold will not be re-evaluated within each document because the evaluation is performed during Payment Grouping and is not affected by breaking up of the document due to the amount or line limitation. For example, an AD was to be created for $100,001,000 but the application ACH limit is $99,999,999. Two checks will be created; one for $99,999,999 and another for second check will be created for $1001. Both of these AD documents will have Contract Withholding applied to them even though the second check is less than the $10,000 threshold. The Advantage AD Chain batch process creates an XML file with generated AD and EFT documents and assigns a unique Run ID for all generated AD and EFT documents within each run. |
Updates Made by the AD XML Creation job
The following tables gets updated during the AD chain:
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The AD Upload job takes the records from the XML Disbursement Document Upload file and loads these records to the document catalog in the form of AD and EFT documents. |
The AD Submit job takes the AD and EFT records that were loaded to the document catalog and submit them for processing (to final). |
AD Clean Up and IT XML Creation
The AD clean up process performs the following:
Once all rejected disbursement documents are reprocessed and deleted from the document catalog the AD Clean-up job creates the XML IT Upload file which will be used to load Internal Transfer (IT) documents to the document catalog. These documents will record the intercept activity for all debt identified during the AD Chain processing, all intercept fees associated with the intercepted debt, the liquidation of receivables, and posting the intercepted monies to the appropriate accounts. Internal debt is identified if the debt record’s document code is not a Receivable (RE) document type. One accounting line each will be created for the intercept amount, the default intercept fee amount (if one exists), and the supplementary intercept fee amount (if one exists). |
The timing of assigning check numbers to successfully submitted AD documents is determined by the setup of the Check Assignment in AD Processing field on the Application Control (APPCTRL). If this field is set to False, then the check numbers will be assigned when submitted AD documents are finalized (this setup is used when AD documents are processed in single-threaded). If this field is set to True, then the check numbers will be assigned during the execution of the “Check Assignment in AD Processing” job which runs as part of the AD Chain batch process after submitting all generated AD documents (this setup must be used when multiple AD documents are processed in parallel, that is, multi-threaded). Both processes use the Next Check Number of respective Bank Code on the Bank table to assign unique Check Numbers for submitted AD documents. The setup of the Check Stock Type field on the Bank table determines how the check numbers are assigned to submitted AD documents. If the Check Stock Type of respective Bank Code is set to Plain on the Bank table, then only one check number will be assigned for the AD document irrespective of the number of associated stub lines. If the Check Stock Type of respective Bank Code is set to Preprinted on the Bank table, a Check Number will be assigned for every 35 stub lines (this number is hard coded) associated with the AD document. However, only the first Check Number will be considered the official Check Number and will be posted to the Check Reconciliation table as Disbursed or Paid (if the Check Net Amount is $0) whereas other Check Numbers will be posted to the Check Reconciliation table as Voided. The Check Number Assignment job will sort disbursements using the fields specified on the Check/EFT Sort Precedence (CHKSORT) page for the Disbursement Type. The Check Number Assignment job will group selected disbursements optionally based on being a $0 check and/or Disbursement Categories, so that checks may be printed as a sequentially numbered sub-group for holding or other processing. Within each sub-group, the process will sort the disbursements using the Check/EFT Sort Precedence (CHKSORT) table and assign Check and EFT numbers as noted below. The Check Number Assignment will check the Assign Overflow Check Numbers For Preprinted (APPCTRL) parameter to determine if overflow pages will be printed for preprinted stock. If overflow pages should not be printed and the Bank Account uses preprinted stock, the process will not assign another check number to the overflow pages. If overflow pages should be printed and the checks are preprinted, the process will assign another check number for each overflow page. Sorting logic for the selected disbursement records: Group 1 – Checks for AD Payments Associated with Non-Held Disbursement Categories that meet the following criteria: Disbursement Category is not in the list of values for the Assign Check Numbers for the Held Disbursement Categories as the Second Group of Checks parameter AND either of these is true: a. Dollar Amount not equal to $0 OR b. (Dollar Amount = $0) AND (Assign Check Numbers For $0 Checks as the Last Group of Checks parameter is ‘N’.) Group 2 – Checks for AD Payments Associated with Held Disbursement Categories that meet the following criteria: Disbursement Category is in the list of values for the Assign Check Numbers for the Held Disbursement Categories as the Second Group of Checks parameter AND either of these is true: c. Dollar Amount is not equal to zero ($0) OR d. (Dollar Amount = $0) AND (Assign Check Numbers For $0 Checks as the Last Group of Checks parameter is ‘N’.) Group 3 - Checks for Zero Dollar AD Payments as follows: 1. If the Assign Check Numbers For $0 Checks as the Last Group of Checks parameter is set to Yes, the batch job will select AD documents with Total Check Amount equal to $0.00. 2. If the Assign Check Numbers For $0 Checks as the Last Group of Checks parameter is set to No, then this group is empty. Group 4 – EFT Payments that meet the following criteria: Disbursement Type is EFT and Check/EFT Number is blank. Within each of the above groups, the disbursements will be sorted by the sorting fields and precedence defined on the Check/EFT Sort Precedence (CHKSORT) table for the Disbursement Type defined on the disbursement. Overflow Processing Logic for Preprinted Check Stock Within a document, the processing logic determines if a check will be a single check number stub or require multiple check numbers (overflow). The process determines if a check requires more than one check stub (an overflow condition) when Stub Detail Line Count (AD Document Header) is greater than Maximum Number of Stub Lines (APPCTRL). The logic to assign check numbers to Preprinted checks will check the value of the Assign Overflow Check Numbers For Preprinted (APPCTRL) when printing overflow check stubs. The logic functions as follows:
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The IT Upload job takes the XML IT Upload file created in the previous job, loads IT documents based on the data in the XML IT Upload file. |
The Submit job selects all IT documents that are not in final status and submits them for processing. |
Note: Even though the above jobs in the chain can be run individually by disabling other jobs, it is recommended to always run the entire chain. Please refer the Advantage Financial Accounts Payable Run Sheets guide for more information about how to run the AD Chain Job.