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March 2, 2016

3/02/2016 03:42:00 AM
 Mandatory setups in Accounts Receivables: 

1. Defining the customer
2. Define customer bank
3. Payment terms
4. Defining the dunning letters
5. Defining the statements
6. Defining auto cash rule set
7. Customer profiles
8. Defining collector
9. Defining the sales person
10. Auto Lockbox

The key flexfields of AR are:
Sales tax location flex field
Territory key flex field. (Its segments are city, state, country)

The works under AR are classified into 4 workbenches

1. Transaction work bench
These deals with the transactions such as invoices, collections, receipts etc.
2. Receipts work bench
This tracks the receipts received from the customer manually or automatically. The customer requires a bank to pay the cheques and the supplier requires an internal bank account.
3. Bills receivable work bench
4. Collection workbench.

Payment terms:
Payment terms determine the payment schedule and discount information for customer invoices, debit memo and deposits.
These specify the due date and discount date for the items of the customers. Payment terms include discount percent for early payment and we can assign multiple discounts to each payment term.
Distribution sets:
These sets are used when we enter miscellaneous cash receipts that have frequently used revenue accounts. Here invoice amount is distributed to various revenue accounts.
Auto cash rule set:
The rules that we set how to adjust the amount that we receive from an old customer.
Dunning letters
The notes that we send to the customer to do his payments are called as Dunning letters.
Statement cycles:
These are legal documents just like invoices. Any transactions that we are raising a customer are going to be printed on a paper. These are called as the statement cycles.

Invoice transaction
Deposit transaction
Debit memo transaction
Credit memo Transaction
Charge back transaction
Guarantee Transaction

Invoice Transaction:

Deposit Transaction:
A supplier asks a customer to deposit some amount as surety. When he pays it then the deposit transaction will be raised. The advance amount paid is called as the deposit amount.

Guarantee Transaction:
When a third party is giving guarantee to a customer then it is called as guarantee transaction. The third party gives assurance of the amount whenever the customer fails to pay his credit then we raise the guarantee transaction.

Debit memo transaction:
A substitute for an invoice is the debit memo transaction. Suppose we have raised a transaction for 10000  instead of 15000. Instead of canceling it we raise a debit memo of 5000 and the balance becomes 15000.

Credit memo transaction:
When the customer is not liable to pay the amount, which is included in the invoice, then he will send a note of credit memo. Then the supplier raises a credit memo transaction to that.

Charge back Transaction:
It is raised to cancel the due amount in the customer account in order to raise a new invoice along with the interest with the new credit period on request of customer.

Sales tax:
In a sales tax based system, receivables calculates the tax based on the address components of out sales tax structure (for ex
Hierarchy of tax calculation:
Customer site level
Transferring the amount AR to GL


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