Minimum Version Required: 25.01
Pre-Conditions
The 820 remittance is a standardized electronic format used to send payment-related information between trading partners. It typically includes details such as:
Payment amount
Invoice numbers being paid
Adjustments or deductions
Payment date
Other relevant payment information
Steps
Troubleshooting Steps:
Verify PO Numbers: Ensure that all invoices have accurate and complete PO numbers. Work with your distribution and sales teams to improve PO entry practices. This is the most critical step
Check for Pre-Payments: Before processing remittances, verify if any invoices have been manually paid. If an invoice has been paid and its balance is zero, the corresponding remittance may be dropped. Reconcile these situations manually. Investigate why manual payments are occurring before remittances are processed and implement process improvements to prevent this.
Review Exchange Configuration AR Accounts:
Navigate to the relevant Exchange Configuration.
Verify that all relevant AR Accounts are listed in the "Exchange Configurations AR Accounts" section. If this section is empty or missing the necessary accounts, add them. This ensures that if the system can identify the AR account but cannot apply the payment, it can still create a payment invoice.
Consider consolidating AR accounts if they all flow through the same entity. This can simplify the configuration and reduce potential errors.
Investigate Specific Examples: When encountering a dropped remittance, examine the associated Exchange Task ID and Loadsheet ID. Review the corresponding invoice to identify any missing or incorrect PO numbers. Check the invoice balance to see if it was previously paid.
Analyze Payment Discrepancies: Compare bank deposits with processed remittances. Identify any discrepancies and investigate the corresponding Exchange Task IDs to determine the cause of the dropped payments.
Fields And Definitions
EDIStatus: A field which will show the last type of EDI sent on the invoice. This can be used to resend EDI by manually changing the EDI Status
Remittance: A document containing payments that have occurred
Best Practices
Troubleshooting Dropped Remittances (820 Errors)
This document outlines the troubleshooting steps for resolving issues with dropped remittances, indicated by "Dropped payment amount of X" errors in the 820 remittance information. This issue can lead to discrepancies between remittances and bank deposits.
Problem:
820 remittances are being dropped by the system, resulting in unapplied payments and potential reconciliation issues. This often occurs when the system cannot locate a corresponding invoice using the provided PO number. While the system typically leaves unapplied amounts on the loadsheet when a PO is missing, in these cases, the entire remittance amount is dropped.
Root Causes:
Missing or Incorrect PO Numbers: The 820 remittance uses the PO number to match payments to invoices. If the invoice lacks a PO number, or the PO number is incorrect, the system cannot automatically apply the payment. This is the most common cause.
Zeroed-Out Invoices: If an invoice has already been paid (manually or otherwise) before the remittance arrives, the system may drop the remittance. The EDI logic is designed to drop remittances for invoices with a zero balance.
Missing AR Account in Exchange Configuration: If the system can identify the AR account but cannot apply the payment (due to a missing or incorrect PO, for example), it attempts to create a payment invoice on the AR account specified in the exchange configuration. If no AR account is defined in the exchange configuration, the payment is dropped.
Recommendations:
Process Improvement: Review internal payment processes to avoid manual payments of invoices that will have remittances coming through.
Regular Reconciliation: Regularly reconcile bank deposits with processed remittances to identify and address any discrepancies promptly.
System Settings Review: Check system setting "Automatically set EDI Remittance Load Sheets to this Status" (e.g., setting 342) to ensure it's configured appropriately.
Collaboration with Encompass Support: If the issue persists, contact Encompass support and provide them with specific examples (Exchange Task IDs, Loadsheet IDs, Invoice numbers) for further investigation.