Sometimes a department receives request for an emergency check, sometimes called an on-demand check or warrant. On-demand checks are usually issued immediately, when the recipient of the check or warrant cannot wait for the normal disbursement. In Advantage Financial, the above situation can be handled in two ways: issue an on-demand check from the system or manually write/type a check. Manually writing/typing a check can be handled with one document, the Manual Disbursement document. The Manual Disbursement document can be used to do the following:
To record manually written checks or warrants in the system after they have been written. In this case the Manual Check flag must be selected, the Bank Account must be populated with appropriate bank account, and check number must be populated with appropriate check number on the MD document.
To enter the Manual Disbursement first then submit the check data to be printed on the physical check. In this case the Manual Check flag must be unchecked, the Bank Account must be populated with appropriate bank account, and check number must be left blank on the MD document. The Check Number will be assigned based on the Next Alternate Check Number or Next Check Number of respective Bank Code on the Bank table when the MD document is submitted.
Setting up the Manual Disbursement (MD) document is similar to setting up the Automated Disbursement document. Setup should follow the same guidelines as the AD regarding the Document Control (DCTRL) table, System-wide Options and Controls (SOPT) table, the TIN information on the Bank Account (BANK) table, and if the vendor is reportable, the 1099 information on the 1099 Information (1099I) table. The only difference between the AD document and the MD document is that the MD Document can be processed without any reference. The MD document won’t perform any amount calculation as the AD process does. The MD document verifies the eligibility of the various dollar amounts such as Discount, Interest Penalty and calculates Backup Wthholding and Contract Withholding. Also MD documents have the option of excluding the Retainage, withheld during the Payment Request document, from the disbursement. If the Exclude Retainage flag is selected on the MD document, no retainage will be taken from the disbursement.
The following sections are discussions related to Manual Disbursement:
For MD documents used to record and issue checks in the Advantage system, the setup of the Check Number on MD and Check Stock Type associated with corresponding Bank Account on the Bank table will determine the source and assignment of check numbers.
If the Check Number on MD is set to Next Check Number, then the check number will be assigned according to the Next Check Number on the Bank table. If the Check Number on MD option is set to Next Alternate Check, then the check number will be assigned according to the Next Alternate Check Number on the Bank table.
If the Check Stock Type is set to “Plain”, then only one check number will be assigned for the processed MD document irrespective of the number of associated stub lines. If the Check Stock Type is set to Preprinted, a Check Number will be assigned for every 35 stub lines associated with the MD 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.
On validate, the MD document executes logic to assign the Check Number. To save check numbers for preprinted check stock when overflow checks are not to be printed, the check number assignment processing logic in the manual disbursement document will perform the following:
If the Print Overflow Check Stubs For Preprinted Stock (APPCTRL) equals Yes, the process shall void additional check numbers for any overflow stubs used on preprinted check stock. For plain check stocks, additional check stubs will be printed without any need to void any check numbers.
If the Print Overflow Check Stubs For Preprinted Stock (APPCTRL) equals No and the Check Stock Type for the Bank Account Code of the disbursement equals Preprinted, the process shall only assign one check number for the disbursement, including the overflow check stubs. All accounting lines must use the same Bank Account Code as the Bank Account Code on the MD header
Inference of the Bank Account Code will be determined by the Always Use Fund Bank Account Code on Disbursements on APPCTRL. If the Always Use Fund Bank Account Code is No, Advantage MD document infers the Bank Account Code on the Accounting Line as follows:
If there is no Payment Request document referenced on the Accounting Line:
The Bank Account Code will be inferred from the Header if the Bank Account on the Header is not blank.
If the Bank Account Code on the Header is blank, the Bank Account Code is inferred from the Bank Account Code associated with the Fund on the Accounting Line.
If a Payment Request document is referenced on the Accounting Line, the Bank Account Code on the Accounting Line is inferred from the DISRQ record associated with the document Accounting Line referenced.
If the Always Use Fund Bank Account Code on Disbursements (APPCTRL) is Yes, the MD document infers the Bank Account Code from the Fund (FUND) table regardless of whether a Payment Request was referenced on the MD Accounting Line. This inference shall take place after Bank Account Code inference from DISRQ when a payment request is referenced on the MD Accounting Line. Also, if the APPCTRL is set to Yes, the Bank Account Code on the Header must be equal to the Bank Account Code associated with the Fund on each Accounting Line.
Backup Withholding can apply to most kinds of income that are reported on Form 1099. These include: interest payments, dividends, patronage dividends, rents, profits, gains, commissions, fees, independent contractor income, royalty payments, and payments by brokers. When a vendor is subject to backup withholding, the check amount is reduced by the amount of the backup withholding. The MD validates the taking of backup withholding on the document based on several setup and criteria. The MD performs calculation for eligible vendors for the ‘Backup Withholding Line Amount’ field and issues a warning if the calculated value does not equal the Backup Withholding Line Amount value. Please refer to the Advantage Accounts Payable User Guide for more general discussion of " Backup Withholding ".
On each validate/submit, the MD calculates Backup Withholding for eligible vendors. The calculation and criteria for Backup Withholding is outlined below:
Look up the Calculate MD Backup Withholding flag on DCTRL for the Document Code specified on the MD header.
If the flag is true, then continue below.
If the flag is false and the Backup Withholding Line Amount is neither zero nor blank, then continue below. If the amount is blank or zero, no further validations will occur on the Backup Withholding Amount.
Verify that either the 1099 Backup Withholding or 1042-S Backup Withholding flag on 1099P table is checked for the Calendar Year defined by the document’s Record Date. If either the 1099 Backup Withholding or 1042-S Backup Withholding flags on 1099P table are checked for the Calendar Year, Advantage verifies that the Vendor’s TIN and TIN Type on the 1099I table to determine if the Vendor entered on the MD is eligible for Backup Withholding. This is determined by either:
1099 Withholding (all eligible types):
If the 1099 Backup Withholding Status on the 1099I table is set to Eligible and the 1099-INT Backup Withholding and 1099 Reportable flags are checked for the selected Vendor, TIN and TIN Type combination; OR
If the 1099 Backup Withholding Status on the 1099I table is set to Eligible, the 1099-INT Backup Withholding flag is unchecked and the 1099 Reportable flag is checked for the selected Vendor, TIN and TIN Type combination; OR
Interest-only 1099 Withholding:
If the 1099 Backup Withholding Status on the 1099I table is set to value other than Eligible and the 1099-INT Backup Withholding and the 1099 Reportable flags are checked for the selected Vendor, TIN and TIN Type combination;
OR
1042-S Withholding: If the 1099 Backup Withholding flag is unchecked, if the 1042-S Recipient Account Number associated with the Vendor/Customer Code on the VCUST table has the 1042-S Reportable flag checked on the 1042-S Reporting Information table,
If the Vendor entered on the MD is eligible for 1099 Backup Withholding, Advantage verifies if the Chart of Accounts entered on the MD Accounting Line are eligible for the same Backup Withholding type as the TIN (1099, 1099-INT, or 1042-S). At the end of this step, the accounting line will be classified as one of these four:
“Eligible for All 1099 Backup Withholding”
“Eligible for Interest-only 1099 Backup Withholding”
“Eligible for 1042-S Backup Withholding”
“Not Eligible for Backup Withholding”.
Advantage determines if at least one of the following 4 COA elements (using this precedence order: Sub BSA, BSA, Sub Object, Object) is reportable for the same Backup Withholding rules as the TIN. As soon as a COA element is located that matches the withholding type, that COA element’s rules will be used for withholding processing.
If none of the 4 COA elements are found to be eligible by the rules below, the accounting line is classified as “Not Eligible for Backup Withholding”.
1099 Withholding – (note this addresses both Interest and Non-Interest withholding).
If the TIN is eligible for 1099 withholding, check if the 1099 Income Code and 1099 Income Type are populated.
If these two fields are not populated, this element is not eligible for withholding. Move on to the next COA element.
If the 1099 Income Code and 1099 Income Type are populated, read the associated record on the 1099 Type of Income (TINC) table.
If the TINC record has the Backup Withholding flag checked, then the Accounting Line is “Eligible for All 1099 Backup Withholding”;
If the 1099 Income Code and 1099 Income Type are populated and the Form Type is “I”, first check if the vendor is subject to Interest withholding on 1099I table;
If the 1099-INT Backup Withholding flag on 1099I table is checked for the corresponding TIN and TIN Type combination, AND the 1099 Backup Withholding Status on 1099I table is not set to Eligible for the corresponding TIN and TIN Type combination, AND the TINC record has the Backup Withholding flag checked, then the accounting line is “Eligible for Interest-only Backup Withholding”.
Unless both of the statements in the prior rule are true, this element is not eligible for withholding. Move on to the next COA element.
1042-S Withholding
If the TIN is eligible for 1042-S withholding, check if the 1042-S Income Code and 1042-S Income Type are populated.
If these two fields are not populated, this element is not eligible for withholding. Move on to the next COA element.
If the 1042-S Income Code and 1042-S Income Type are populated, read the associated record on the 1042-S Type of Income (1042T) table.
If for the combination of 1042-S Income Code, 1042-S Income Type AND 1042-S Recipient Code associated with the MD’s Vendor the Backup Withholding flag is checked on 1042T table, then the accounting line is “Eligible for 1042-S Backup Withholding”.
Unless both of the statements in the prior rule are true, this element is not eligible for withholding. Move on to the next COA element.
If the COA element is “Eligible for Interest-only or All 1099 Backup Withholding” (and not 1042-S withholding), Advantage performs a lookup on the 1099E table to verify if either the Fund or Department codes specified on the MD Accounting Line are exempt from 1099 Backup Withholding.
Look up to 1099E for the Fiscal Year specified on MD Accounting Line (or the Fiscal Year of the Record Date, if the Accounting Line Fiscal Year is not entered).
Advantage reads the 1099E table in this order, until a match is found.
Actual Fund and Department from the Accounting Line;
Actual Fund, but Department is ALL;
Fund is ALL and actual Department;
If a match is not found using any of these 3 lookups to 1099E, the line is still “Eligible for Interest-only…” or "All 1099 Backup Withholding”.
If a match is found for any of the 3 lookups to 1099E, then change the line’s status to “Not Eligible for Backup Withholding”. An error will be issued.
Get the value of the Calculate MD Backup Withholding flag on DCTRL table for the current Document Code. If the flag is checked and the Manual Check or Adjusting Entry flags on the Header component of MD document are not checked, then Advantage calculates the Backup Withholding Amount
If the Accounting Line was found “Eligible for Interest-only or All 1099 Backup Withholding”:
Look up the 1099 Backup Withholding Rate from 1099P for the Calendar Year defined by the document’s Record Date.
Calculate the backup withholding amount: Backup Withholding Amount = (1099 Backup Withholding Rate /100) * (Line Amount – Discount Line Amount – Retainage Line Amount + Penalty Amount + Interest Amount – Use Tax) when Exclude Retainage = No; Backup Withholding Amount = (1099 Backup Withholding Rate /100) * (Line Amount – Discount Line Amount + Penalty Amount + Interest Amount – Use Tax) when Exclude Retainage = Yes
If the Backup Withholding Line Amount is blank, populate the field with the calculated Backup Withholding Amount.
If the Backup Withholding Line Amount is not blank, but the value equals the calculated Backup Withholding Amount, no error is issued.
If the Backup Withholding Line Amount is not blank, and the value is not equal the calculated Backup Withholding Amount, Advantage issues an error using the MD Backup Withholding Amount Error Severity field on DCTRL.
If the Backup Withholding Line Amount is blank, or is not blank and the value is not equal the calculated Backup Withholding Amount AND either the Manual Check or Adjusting Entry flags on the Header component of MD document are checked, Advantage issues a Warning.
If the Accounting Line was found “Eligible for 1042-S Backup Withholding”:
Look up the 1042-S Tax Rate from ICTX table for the combination of 1042-S Income Code (defined by eligible COA element), IRS Country of Residence and IRS Country Sub Code (defined on VCUST by the document’s Vendor);
If a matching record is found on ICTX table, then infer the value in 1042-S Tax Rate field from the matching record to the 1042-S Tax Rate field on the Accounting Line of the MD Document and use the Tax Rate during calculation;
If no matching record is found, then infer the value in the 1042-S Backup Withholding Rate field on 1099P table (for the Calendar Year of the Record Date specified on the Header) to the 1042-S Tax Rate field on the Accounting Line of the MD Document and use the Tax Rate during calculation;
Calculate the 1042-S withholding amount: 1042-S Withholding Amount = (1042-S Tax Rate /100) * (Line Amount – Discount Line Amount – Retainage Line Amount + Penalty Amount + Interest Amount – Use Tax) when Exclude Retainage = No; 1042-S Withholding Amount = (1042-S Tax Rate /100) * (Line Amount – Discount Line Amount + Penalty Amount + Interest Amount – Use Tax) when Exclude Retainage = Yes
If the Backup Withholding Line Amount is blank, populate the field with the calculated 1042-S Withholding Amount.
If the Backup Withholding Line Amount is not blank, but the value is equal to the calculated 1042-S Withholding Amount, no error is issued.
If the Backup Withholding Line Amount is not blank, and the value is not equal to the calculated 1042-S Withholding Amount, Advantage issues an error using the MD Backup Withholding Amount Error Severity field on DCTRL.
If the Backup Withholding Line Amount is blank, or is not blank and the value is not equal to the calculated 1042-S Withholding Amount AND either the Manual Check or Adjusting Entry flags on the Header component of MD document are checked, Advantage issues a Warning.
The MD determines if the disbursement is eligible for Contract Withholding.
A standalone accounting line is exempt from Contract Withholding if Contract Withholding Exempt is selected on the Header, Vendor, Object, Sub Object, Program, Appropriation, Balance Sheet, or Sub Balance Sheet.
A referencing accounting line is exempt from Contract Withholding if Contract Withholding Exempt is selected on the Header, DISRQ, Vendor, Object, Sub Object, Commodity (if DISRQ Commodity Code is specified), Program, Appropriation, Balance Sheet, or Sub Balance Sheet.
An accounting line is not eligible if any of the following is satisfied:
Accounting line is exempt from Contract Withholding
Backup Withholding is nonzero
Contract Withholding is not in use on 1099P
DISRQ has Procurement Card Payment set to Yes and Apply Contract Withholding to PCard Payments is not selected on 1099P
The MD determines the total line amount less discounts and retainage for a vendor line and uses it to determine if the Contract Withholding Threshold is met.
The MD allows you to manually enter the Contract Withholding Amount on the accounting line, or infer it if a user blanks out the value. The inference logic calculates the Contract Withholding Amount as (Line Amount – Discount) * 1099P Contract Withholding Rate if the accounting line is eligible for Contract Withholding and the Contract Withholding Threshold is met:
Contract Withholding Amount = (Line Amount – Discount – Retainage + Penalty + Interest – Use Tax) * 1099P Contract Withholding Rate when Exclude Retainage = No; Contract Withholding Amount = (Line Amount – Discount + Penalty + Interest – Use Tax) * 1099P Contract Withholding Rate when Exclude Retainage = Yes;
Otherwise the calculated value is $0.
The MD issues an error if the Contract Withholding Amount does not have the same sign as the accounting line amount, or differs from the amount that would have been inferred. The system also issues an error if the user enters the Contract Withholding Amount when Contract Withholding is not in use for the system or is exempt for the vendor.
Eligibility evaluation, threshold comparison, and calculation of contract withholding is performed during each validate and submit action. For example, if a user deletes lines from the MD document, the threshold amount must be re-evaluated the next time the document is validated/submitted.
The “Payment Printing” feature of the Advantage Manual Disbursement (MD) document has the capability to produce a check file per MD document which is automatically FTPed onto the Adobe LiveCycle Print Server. The Adobe LiveCycle Print Server picks up the check file and merges the data into a pre-compiled form design. The check is then routed to the printer specified on the “Payment Printing” page of the MD document. Only processed MD documents with the Manual Check flag not selected will be eligible for printing
When a user clicks on the Payment Printing link which is located on the Header section of the MD document, the “Online Printing Batch Parameters” page will be opened. This page contains the following parameters which are setup manually prior to printing the check:
Print Job Code: Valid print jobs are defined on the Print Job Setup (IPJB) table in the Advantage Administration application. A print job tells the Adobe Forms software what to do when handling the forms printing request.
Print Resource ID: Valid print resources are defined on the Print Resource Setup (IPRS) table in the Advantage Administration application. A print resource is the destination of a print job (for example, PDF file or a printer).
Payer Department, Unit and Contact Codes: These fields are used to print the return address of the agency on issued online checks.
Output Directory: This parameter is used to define the path location on the application server where generated check files are posted before being FTPed to the Adobe Server.
Payer Name 1 and Name 2: Specified information on these fields is printed on the top of the check stub.
Stub Bottom Message Text: Specified information on this field is printed on the bottom of the check stub. Up to 120 characters of text can be entered. However, the message will be truncated to 60 characters when checks are printed by the Disbursement Printing job.
Overflow Message Text: Text entered in this field allows for sites to have this information printed on the check stub should an overflow condition occur. The Overflow Message Text field will be included on the printable (.xml) file, but will not be included in the XML file which the checks are printed from. If your site would like to have the Overflow Message Text printed on the check stub, modifications to the printing process is necessary.
Skip Printing Mailing Address: Valid values are Yes and No. This parameter allows printing online checks with or without the vendor’s mailing address on the back of the check. When it is set to No , the Payer Department Code , Payer Unit Code , and Payer Contact parameters are required. When it is set to Yes these fields will be optional.
Reprint: Valid values are Yes and No. This parameter allows reprinting online checks when needed. It is applicable to Plain Check Stock only.
The setup of the parameter “Consolidate Check Stub at the Vendor Invoice Line Level” on the Application Control (APPCTRL) table determines how the stub lines will be printed as explained under “Disbursement Printing Process”.
Generally, the check printing of the MD document utilizes the same form generation logic check layout used by the Advantage Disbursement Printing batch process.
Online Printing Parameters Default (OPRNDFLT) page can be used to define default values for the parameters on the Online Printing Batch Parameters page for printing checks based on Document Code.
On transition to the Online Printing Batch Parameters page from the manual disbursement document using the Payment Printing hyperlink action, the corresponding field values will be inferred from the OPRNDFLT table to the Online Printing Batch Parameters page, using the Document Code of the manual disbursement document. If default values have not been defined for the Document Code, you must manually enter the required fields.
Stub Summarization for Manual Disbursement
Manual disbursement Accounting Lines can be summarized and sorted based on the summarization and sorting parameters specified on the DISF table for the Disbursement Type of the manual disbursement. The Stub Summarization process will not be invoked if the Document Type is MD and if any of the following are true:
If the Adjusting Entry flag equals ‘Yes’; or
If the Manual Check flag equals ‘Yes’ and the Document Function is ‘New’, ‘Modification’, or ‘Cancellation’; or
If the Manual Check flag equals ‘No’ and the Printing Status Indicator equals ‘Printed’ or ‘Re-Printed’ and the Document Function is ‘Modification’.
If the Stub Summarization process is invoked, the process will perform the following:
If the Document Function is ‘Modification’ or ‘Cancellation’, the process shall delete the STUBDET records associated with the document.
If the Document Function is ‘New’ or ‘Modification’, the process shall perform the following:
Summarize the manual disbursement document Accounting Lines using summarization parameters specified on the DISF for the Disbursement Type specified on the MD document and write the summarized records to the Disbursement Stub Detail (STUBDET) table.
Recalculate the Stub Detail Line Count field on the MD header setting the value equal to the number of records written to the STUBDET table.
For more detailed information see the Disbursement Stub Summarization Process section in this guide.
Disbursement cancellation/reclassification cancels or reclassifies checks, warrants (including warrants with clearing funds) or electronic funds transfers (EFT), and provides the flexibility to perform one of four cancellation Actions (reschedule, hold, close and PR Cancellation) or performs the following reclassification actions ( Warrant Reconciliation, Stale or Escheat individual disbursements, or entire disbursement runs, Cancel).
When a Disbursement document has been processed and it needs to be changed because of data entry errors or incorrect information, you can perform one of three actions. Each action will result in different results:
Modify Action - If the check has not yet been printed, a Manual Disbursement document may be modified like all other documents. The Manual Disbursement should only be modified if the data on the document is wrong. If you want to increase, decrease, or change fields on the Manual Disbursement document, this option may be used. Because it represents an actual check, once the check has been printed, the ability to modify the document is limited to a few fields.
If the Document Function is equal to Modification, Payee information may not be changed from the previous finalized version of the document.
If the Document Function is equal to Modification and the Manual Check is equal to Yes and the Printing Status Indicator is equal to Not Ready to Print, all fields on the Header are displayed as protected fields, except for Document Name, Record Date, BFY, FY, and Document Description. All fields on the Vendor Line will be protected from user update. The value in the Check Amount field cannot be changed.
If the Document Function is equal to Modification, the Manual Check is equal to No and Printing Status Indicator is not equal to Printed, all fields on the Header are displayed as protected fields, except for Document Name, Record Date, BFY, FY, and Document Description. All fields on the vendor tab will be protected from user update.
If the Document Function is equal to Modification, the Manual Check is equal to No and Printing Status Indicator is equal to Printed, then all of the fields on the MD document will be protected.
When editing an MD document, if the Document Function is equal to Modification, the Manual Check flag is equal to No and the Printing Status Indicator is equal to Ready for Original Printing, the system shall protect the Adjusting Entry flag on the MD Header.
Cancel Action - If you need to Reschedule, Reschedule and Hold or Close the original disbursement, a Manual Disbursement document can be cancelled by using the cancel action (See Understand Disbursement Cancellation for more information). When the document is cancelled, all applicable tables are updated to reflect the cancellation. When cancelled, the entry on the Check Reconciliation (CHREC) table is removed, not marked with the status of Cancelled.
Disbursement Cancellation Document - When the Manual Disbursement document is Stale Dated, Escheated, or Cancelled, this can be done using the Disbursement Cancellation document (See Understand Disbursement Cancellation for more information). The Disbursement Cancellation document is used to cancel all types of disbursements (checks, EFT's, manual checks). When this method is used, it will update the appropriate table to indicate that the physical check has been cancelled such as updating the Check Reconciliation (CHREC) table with the status of Cancelled.