PRA Payment Processing 

Use

Use this transaction to run payment processing jobs, and to review the status of completed jobs as well as any exception items.

Prerequisites

·         In the Business Associate transaction within Ownership, the Resident Cntry and the Resident Region field on the General Data tab are completed for the relevant owner(s) to be processed.  To access the Business Associate transaction, choose Logistics ® Production and Revenue Accounting ® Ownership ® Business Associate.

In addition, the following entries are made in the Business Associate record as required.

-         Payment Frequency

To override the minimum payment amount, set the Pay Frequency to Pay Regardless.

-         Print Check First (indicator)

To indicate that an owner’s check will be sorted to the top of the output files regardless of attachments or postage, select the Print Check First indicator.

-         Payment Block

To stop all royalty checks from being processed for an owner, set a payment block.

-         Payment Type

Use this field to designate how an owner is paid.  Note that if the owner is paid by means other than a check, the payee will still receive a check attachment.

·         In order for the correct tax amounts to be withheld from owners’ checks, state withholding tax rates must be maintained in the Withholding Tax Rate transaction (Logistics ® Production and Revenue Accounting ® Revenue Accounting ® Revenue Distribution ® Tax Maintenance ® Withholding Tax Rate).

·         The minimum check amount is defined.  To define the minimum check amount, use the Activation for Specific Companies Customizing activity by choosing Industry Solution Oil & Gas (Production and Revenue Accounting) ® Global Settings ® Activate functionality ® Activation for Specific Companies. 

·         A check number range is defined for a check lot.  To enter and maintain a check number range, use the Configure Check Numbers Customizing activity by choosing Industry Solution Oil & Gas (Production and Revenue Accounting) ® Revenue Accounting ® Payment Processing ® Configure Check Numbers.

·         Each company code is defined with a Federal Backup Withholding Tax Rate.  You enter Federal Backup Withholding Tax Rates in the common table TBLRD050 for each company code (that is, the org. level 1 number).

The menu path for the Common Table is Logistics ® Production and Revenue Accounting ® Tools ® Common Table Maintenance.

·         The ID, description, and payment methods for the check lot are defined.  To enter the check lot data, use the Configure Check Lot Customizing activity by choosing Industry Solution Oil & Gas (Production and Revenue Accounting) ® Revenue Accounting ® Payment Processing ® Configure Check Lot.

·         Bank master data required for the Payment Processing run is set up.  To set up bank master data, use the Bank Details for Payment Processing transaction (Logistics ® Production and Revenue Accounting ® Revenue Accounting ® Payment Processing ® Periodic Processing ® PRA Payment Processing). 

·         The accounting period for which you will run Check Write is closed.  To close an accounting period, use the Accounting Period Close transactionchoose Logistics ® Revenue Accounting ® Journal Entry ® Periodic Processing ® Accounting Period Close.

 

Procedure

1.       At the SAP Easy Access menu, choose Logistics ® Production and Revenue Accounting ® Revenue Accounting ® Payment Processing ® Periodic Processing ® PRA Payment Processing.

The Parallel Payment Run dialog box may appear if more than one payment run is being processed in the system. 

Once you proceed past this message, the PRA Payment Processing screen appears.

2.       Enter the following data.

·         In the Run Date field, the current date defaults.  If required, enter another date to identify the payment processing job.  (The date does not have to be the date on which the job was run.)

·         In the Identification field, enter an ID for the payment processing job.

·         In the Check Date field, review the date.  This is the date that will be printed on the checks.

·         In the Type of Run field, specify whether the run is primary (that is, monthly) or secondary (secondary runs are executed as needed).

·         To generate checks of any amount, select the Ignore all minimum pay amount indicator.

When the Ignore all minimum pay amount indicator is not selected, the system only generates checks that are above the minimum pay amount.  The system determines whether there is a minimum pay amount specified for the owner.  (An owner’s minimum payment amount is set in the Business Associate transaction’s Payment Data tab:  Logistics ® Production and Revenue Accounting ® Ownership ® Business Associate.)

If there is not a minimum pay amount specified for the owner, then the system uses the default minimum payment amount that is set in the Activation for Specific Companies Customizing activity (Industry Solution Oil & Gas (Production and Revenue Accounting) ®Global Settings ® Activate Functionality ®Activation for Specific Companies).

3.       As needed throughout processing, choose the Status tab to review the status of the payment processing job.  Choose Refresh to update the status.

4.       Choose the Parameters tab.  Then choose one of the following options.

Function	Option
To generate checks for all entities in a company	Select Company
To correct a check or write a check for an owner that has not received a check	Select Owner
To write a check for a property that was under booked or overbooked	Select Property

 

5.       At the Parameters tab, data that corresponds with the company, owner, or property.  Then enter the following data.

·         In the Company Code field, enter the company for which the system will generate checks.

·         In the Bank ID field, enter the code identifying the bank from which the payment for the check(s) is generated. 

·         In the Bank Account field, enter the account from which the payment for the check(s) is generated. 

·         In the Cash Account field, enter the general ledger account number to which PRA books cash transactions.

·         In the Clearing Account field, enter the general ledger account number to which PRA books electronic money transfers.

6.       If required, choose the Server tab to specify the server on which the system runs the payment processing job.

7.       Choose Process Payment.

You can choose Discard run data if processing stops and you do not want to restart processing at the point where the processing stopped.  In this case, you can choose Discard run data and start the payment run again from the beginning.

8.       To restart a payment processing job, choose Restart Payment Proc.

To prevent the system from re-processing an entire set of owner records that are part of a Payment Processing job, the system processes one owner at a time.  If processing for one owner fails, therefore, you can re-start processing with the Restart Payment Proc. function and the system will pick up processing where it stopped for the particular owner.

Displaying Previous Payment Runs

·         To review the details of previous payment runs, on the PRA Payment Processing initial screen, enter the run date and identification.  Then choose PRA Payment Run ® Display prev. runs.

To delete all of the temporary data that was created during the payment run, choose Clear Run Detail.

Result

·         The Master Payment Control Report is available with details about what was paid, as well as  a list of the journal entry batches that the system posted.  You can access the report and the list of batches by choosing System ® Services ® Jobs ® Job Overview.

·         The system generates the Bottomline file, which contains both detailed and summarized line for owners entitled to payment.  This file may be sent to a third party or used by a separate software package for check printing and mailing.

The system stores the Bottomline file in the DIR_HOME directory; the file name is a combination of the ID and run date that you specified.

·         If any payment lines or owner was not paid, you can review details with the Exception Report You can access the Exception Report from within the PRA Payment Processing transaction by choosing Environment ® Exception Report or by choosing Logistics ® Production and Revenue Accounting ® Payment Processing ® Reports ® Exception list from payment runs.