Process Garnishment Deductions from Hold

[Former Member]

Many states require for garnishment deductions to begin immediately but to hold the funds until further order from the court. We currently have a process in place to request these withheld funds to be paid out to the vendor once the order is received but it requires a lot of manual work outside of SAP. I am curious if anyone else has a process for this that is more efficient.

Currently we set up the vendor to a hold account and the funds remain there until we request a check from AP. The request is done through an excel spreadsheet. Also, after the funds are moved from the hold account to the actual vendor, the garnishment history still shows the deductions as "Posted to AP". Is it possible to have this updated once the funds have been paid out?

Any suggestions or input would be greatly appreciated!

[Former Member]

We also follow pretty much the same cumbersome process as your's.

For garnishments with immediate remittance cases  AP prints the checks and answer letters.  We then mail out the checks and answer letters on the pay day.

For garnishments payments that are not set to immediate remittance,the money stacks up with AP until the court date approaches.  That's when we sends a notice to AP to release the withheld funds for payment and we get a single check.  We print answer letter for the pay periods involved and the funds are remitted to the court a few days in advance of the court date.

We did made some improvements in order to make A/P process print letters so that we dont have to manually match them later on.

[former_member235056]

Hi Brandi,

Generally, garnishment document is only set to "Active" Status once you have order from Court until then it is usually set to "Pending" status under IT0194.

You may probably want to consider this option rather than taking the deductions and holding them until further order is received from court.

Thanks,

Ameet

[Former Member]

We are required by law to begin the deductions immediately but not to pay the funds to the creditor until the court sends us an order to do so.

What we are trying to find an efficient process for is when we get the court order to pay the funds from the hold account, how to process the request through SAP rather than through an Excel spreadsheet.

[former_member235056]

Hi Brandi,

You will need to determine and create Company specific Remittance rule which will help you remit garnishment amount to creditor only when you want to.

I would say look at frequency trends for different employees and have it created according.

Thanks,

Ameet