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Accounts Receivable 9.1 Sample Chapter
Accounts Receivable 9.1 Sample Chapter
JDEtip
Click on the Accounts Receivable Constants bar, click Find and then select
Company 00001.
2. Next, the Auto Receipts box on the Invoices tab of the Customer Master
must be checked for each customer using auto receipts. The Auto Receipts
Execution List is left blank for all customers using the standard Execution
List; customers with special application needs will have a defined Execution
List entered here.
Locate customer 3334, highlight the row and then click Select.
3. The last set up is the Bank Account Information in the Bank Transit
Number Master table for each customer. Right-click in the open area of the
form Customer Master Revision form to display the Form Exit context menu
pop-up. Click on Bank Account.
Click Find.
Click on the Auto Receipts Payor radio button then enter the following
information:
Field Description
Bank Transit Number 135792468
Bank Account Number 4073490
Description Bank of America
You use this form to revise information as well. After you have set a bank up for
a customer, it is possible the customer may change banks. Simply return to this
screen on an inquiry and make the necessary changes.
REMEMBER: If you want to use auto cash, you must have the auto cash
flag set in the Customer Master record AND the customer's bank identified
for every customer using auto cash receipts. In most instances, if you have a
lockbox remittance address, you will most likely be using auto cash. That
means virtually all your customer records will have to have these two items
configured.
Defining Algorithms
An algorithm consists of a base method, selection criteria, sequence
specifications, and processing options. You can create different versions of each
base method and can customize the other parameters. Algorithms can also be
associated with specific customers, so whoever does this must be very familiar
with the paying strategies of your customers.
There are five base methods you can use:
• Invoice Selection Match
• Balance Forward Match
• Known Invoice Match with Amounts
• Known Invoice Match without Amounts
• Combination Invoice Match
As you can see, the base method defines different ways for the system to search
for invoice matches during a cash application run.
Algorithm Components
Each algorithm has four distinct components:
♦ The Base Method. This is the fundamental processing logic that can be
shared among several algorithms. Examples are statement or invoice
matching. You combine base method logic with different combination
components to make the algorithm behave uniquely. The base method logic
of each algorithm is contained in the technical specifications of Report
Design Aid for each version. If you have a requirement that the base method
will not resolve, you will have to have your technical development resource
work with you to find a solution.
♦ Algorithm Selection Criteria. This tells the system which auto cash
receipts to process based on the User ID, the G/L date, the receipt date, or
other criteria. You can define invoice types to be processed by a specific
algorithm version. This must be done by copying and modifying the
algorithm in RDA. There is a lot of flexibility in the algorithms, but if you need
a custom version you will need to work closely with your developer resource.
♦ Sequence Specifications. You use sequencing to tell the system the order
it will read invoices during the matching process. Changing an algorithm sort
sequence also requires making the change in RDA.
♦ Processing Options. These instructions tell the system how to handle
matching information and application information on each algorithm based on
the fundamental logic of the algorithm.
NOTE that these algorithms are self-contained UBEs with internal logic that
you cannot modify except through Processing Options. Data Selection can
only be modified by changing the criteria within the actual UBE.
You can modify a version of the application to tell the system which invoices the
version selects in the matching process through Report Design Aid (RDA) in
the version's Data Selection. Modifying versions has a host of issues around
release and level upgrades, so modifications should be done only by developer
resources well versed in RDA. The versions 0002, 0003, and above are
furnished by JDE as modifications of versions 0001.
Let's look at the Processing Options for version XJDE0001.
Note that the first three options specify all possible combinations to find a match.
Options 4 through 7 specify tolerance amounts and reason codes to use for
automatic minor amount write-offs.
All Reason Codes, except for Discount Reason Codes, must be entered in
the Processing Options whether or not they will be used. Otherwise, the
program will fail!
This Apply tab tells the system how to handle unearned discounts.
This algorithm will apply receipts to the oldest balances (FIFO) in the customer
ledger first. The due date is used to determine the first invoice to begin the
application with. The system then applies the balance of the receipt to each
subsequent invoice until the receipt amount is zero or there are no more invoices
to apply. If the receipt zeros out on an invoice short of the invoice amount, the
invoice is partially paid leaving an open residual balance. If there is a residual
receipt amount left after all invoices are exhausted, the system creates an
unapplied cash receipt for that balance to the Customer Ledger.
If you rather apply receipts to invoices using the most recent due date, you would
use the version titled LIFO.
Let's look at the Processing Options for version XJDE0001. Right-click the row
to display the Row Exit context menu pop-up. Click Processing Options.
We see quite a difference here because we are only trying to find the first invoice
to begin the sequential application of the entire receipt.
Right-click a cell in the row to display the Row Exit context menu pop-up then
click Processing Options.
This algorithm will apply receipts to invoices where the invoices and invoice
amounts to be paid are identified to the system. This obviously means the
invoice number and payment amount must come in from the lockbox data to be
included in the Electronic Receipts Input Table. This is the preferred algorithm
for the great majority of enterprises, but you must get the information you need
from the lockbox bank.
Blank out Option #10. Here we are telling the system to handle overpayments as
Unapplied Cash.
Change the Chargeback Reason Code to DA. This tab will be used by the
application process first and determines what will happen if the Payment Amount
is different from the Apply Amount.
Enter 1 in the Invoice Number field and 2 in the Customer Reference Number
field. Blank out the remaining fields.
This tab determines the sequence to select invoices. If you leave a search
method field blank, the system excludes that search method and uses only the
other methods that you specify. If you leave all fields blank, the system searches
using all methods in the order listed above.
Use this processing option to specify whether to adjust the amount of the
discount when the receipt amount is greater than the open amount of the invoice,
less the discount. For example, if the open amount of the invoice is 100.00 USD
with a 5.00 discount, and you receive a payment for 97.00. Do you want the
system to reduce the discount to 3.00 and fully apply the 97.00, or apply 95.00
and create a write-off for 2.00?
Whew! That is a lot of options to consider. Obviously you will want to test this
version carefully before you release it into Production. The payback, however,
will be the one algorithm that should generate the highest percentage of hits on
your application.
Click OK. Click Close then click on Known Invoice Match Without Amount.
This algorithm is used to apply receipts to known invoices but the amount to be
applied to each invoice is not known. As before, you must have the invoice
number on your incoming lockbox data to use this algorithm.
Let's look at the processing options for this version:
Right-click a cell in the row to display the Row Exit contact menu pop-up then
click Processing Options.
Note the Match by Exclusion option 4. This will contain a 1 in version XJDE0002.
Click on the Apply tab:
Enter 10 in both fields. This tells the system to process 10 invoices and
combinations thereof at a time.
Click OK then close to the main menu.
Click Find.
Here we find three lists. Let's look at the one named STANDARD since that
implies that it is the standard list for most customers. Click next to STANDARD
and then click Select:
Remember that the system will execute the searches in the sequence that is
specified in the leftmost column. Once an algorithm finds a match between the
receipt and invoice, the algorithms that follow are not run. For example, if in the
STANDARD list the Known Invoice with Amount algorithm finds a match, then
the Execution List stops and the remaining algorithms do not run.
You will receive message from webpage "Are you sure that you want to delete
the selected item?" Click OK.
Do the same for Sequence 3.00. Your list should now look like this:
Auto Receipt Base Methods are stored in the User Defined Code table 03B / AL.
Select R03B50D.
Just move to the next row then click OK to save and it will disappear.
Click OK. Click Find to verify that the row has been added.
select R03B50E. From the Row exit, Select Version XJDE0001 then move to
the next row.
Enter COMBO in the Execution List field and Combination Match in the
description field next to it. Click in the Base Method field and select R03B50E.
From the Row exit, Select Version XJDE0001 then move to the next row.
Click Close.
Each algorithm version has data selection and processing option parameters that
need to be set to fit your circumstances, and the combination of algorithms that
appear on an execution list will also have to be sequenced to fit your
circumstances. Needless to say, it is necessary that one of your resources will
have to know how to create the right algorithm and execution list for any given
situation. The general rule is to list the algorithms in the order that will allow for
the most matches first.
NOTE: The success of your auto cash application will depend on the amount
of incoming information that is contained in your Electronic Receipts Input
Table (F03B13Z1). This must always be kept in mind when you configure
the algorithms and execution lists and when you communicate with your
lockbox bank.
Here you see a field for a custom execution list. When this field is blank, as it is
now, the Execution List that will be used as the default is found in the Processing
Options in the Update Receipts Header program.
2. If no list is found, the execution list specified in the Customer Master for
that customer is used.
3. If no list is found, the execution list specified in the processing options of
the Apply Receipts to Invoices program is used.
Click Find.
Click Add to begin adding incoming receipt records. Enter the following
information:
Field Description
Company 00001
G/L Date 03/31/2013
Amount Expected 8794
Transaction Number 1
Receipt Number 5001
Receipt Gross 8794
Amount
Receipt Date 03/31/2013
Gross Apply Amount 8794
Click Find.
Accounts Receivable 9.1 37
Automatic Receipts Processing Klee Associates, Inc.
The next step is to update the receipts register. We can also apply the receipts
to invoices at the same time. Go to Solution Explorer>Batch Versions and enter
R03B50 in the Batch Applications field then click Find.
Highlight the XJDE0001 version then click Processing Options in the Row exit.
Click OK.
Next, enter R03B551 in the Batch Application field then click Find.
Highlight the XJDE0001 version then click Processing Options in the Row exit.
Enter STANDARD in Option #9. Leave all other options blank on the Defaults
tab.
Click on the Versions tab. Enter 1 in Option #1 to run the Apply Receipts
program after the Update Receipts Header program is finished; enter XJDE0001
in Option #2 for the Apply Receipts version.
Click OK.
On the Updates tab, enter 1 in Option #1 to update the Bank Account Information
with a customer's ABA number and bank account number.
Option #3 will try to locate a payor, in the order specified, to the Customer Ledger
if no payor is shown on the Electronic Receipts table (F03B13Z1) or in the Bank
Transit Master table (F0030).
Click OK.
Now we can run this program. Highlight version XJDE0001 then click Select.
Click Submit then OK twice to submit the program.
You will get two PDF's: one for Update Receipts Header and the other for Apply
Receipts to Invoices and they both should say – No Exceptions.
Return to Review Electronic Receipts then click Find. Scroll to the right and
there should be a Y in the Update Status (US) field indicating the record was
successfully processed.
Click on Standard Receipts Entry from the A/R Daily Processing menu.
The invoice that was paid is number 3148. Close out to the default page. . Now
let's look at the Data Browser.
Enter databrowser in the Fast Path input field and click the Fast Path button.
On the Query Selector form, click the By Table radio button. Enter F03B13 in the
Name field. Click in the Data Source field and Business Data Local will default
in.
Enter 5001 on the QBE line above Receipt Number. Click Find.
The following fields indicate what was used in the application of the receipt:
• Execution List
• Algorithm Sequence Number
• What algorithm in the Execution List was used
• What version of the algorithm was used
Click Close.
Close the Query Selector with the Close Link at the top right of the form and
return to the default page.
JDEtip
TIP: BEFORE you post the auto cash receipt, review all the logged
receipts and unapplied cash entries. You may be able to correct some of
the items before you post the batch and save yourself a lot of grief with
voids and zero receipts to correct things that could have been corrected
before you posted the batch. This kind of review will take a relatively short
time and give you far better results after some focused attention. In
summary, you should NOT POST the batch until you have had a chance to
review the detail for errors. This can be accomplished by making the batch
review before posting a matter of routine on a daily basis.
Now we have to prepare the Z file for new entries by purging the entries that are
complete. On Solution Explorer, enter R03B0041A in the Batch Application field
then click Find.
Check the Data Selection box then click Submit. Highlight the row and click the
Delete button to delete the row.
Delete the "1" in the Purge Record field to only delete those records that were
successfully uploaded.
As an alternative, you can delete the records from the Review Electronic
Receipts form by checking the rows and then click Delete.
This is the Auto Receipt Status Flag, and here are the possible entries:
Auto Receipts Status code is stored in the 03B / RS User Defined Codes table.
Finally, click on the Unapplied and Logged radio buttons to see what needs to
be corrected.
Class Exercises
Now we are going to use Auto Receipts to pay some of Apex Supply
Company's invoices.
Remember to change the Execution List in the Processing options in the
Update Receipts Header (R03B551) program.
Remark Combination
Amount 57,250
Expected
Transaction 4
Number
Receipt 1003
Number
Customer 55124
Number
Receipt 57,250
Gross
Amount
Receipt 03/07/2013
Date
Gross 57,250
Apply
Amount
Click OK, Cancel and then Find. Your records should look like the following:
6. Run the Update Receipts Header (R03B551) program from Solution Explorer
with the following criteria:
• Run each of the 5 receipts SEPARATELY.
• Enter Data Selection using the Receipt Number.
• Change Processing Option #9 each time to reflect the proper
Execution List as follows:
Receipt Number Execution List
1000 KNOWN WITH
1001 SELECT
1002 BALANCE
1003 COMBO
1004 KNOWN W/O
7. Check the balance on the Customer Ledger. It should be $66,000.
9. Open the UTB for table F03B13. Scroll to the right and check to see what
Execution List was actually used for each of the electronic receipts.
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Inc.
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individuals, without the written permission of Klee Associates, Inc.
Inclusion of the concepts in this book in any internal client training material is
allowed if the source of the concepts is acknowledged as follows:
Copyright 2013.
All rights reserved.
Used with permission.
Klee Associates, Inc.