A Closer Look at Manual Invoicing and Manual Cash Receipts

This segment from our 900+ page JD Edwards Accounts Receivable manual is being made available as a sample of our training manuals. Please contact Sandy.Acker@ERPtips.com if you have any JDE training needs, or visit www.jdetips.com for more information. Written by Roger Avrit Published by Klee Associates, Inc. Copyright Klee Associates, Inc. 2004 A Closer Look at Manual Invoicing and Manual Cash Receipts Stand-Alone Receipts We have all encountered the situation where a payment is received for several invoices, but the total remittance does not equal the open amount totals of the invoices on the customer ledger and there is no explanation for the difference on the remittance advice. If the amount is not material and your enterprise policy allows it, you can do standalone write-offs to dispose of the difference. You can have stand-alone receipts with or without invoice match. In most instances, the shortage is recorded without a particular invoice reference. However, we recommend you use stand-alone records with invoice match whenever possible. For manual cash application, you will use TI Code 10. Write off codes 25, 26 and 27 are reserved for automatic cash applications. EnterpriseOne Accounts Receivable Rev. 3/21/04 1

Stand-Alone Write-offs with invoice match Enter a standard receipt header and select an invoice as follows: In this instance, the customer has short paid invoice 3066 by $7.58. The shortage writeoff has been coded as a concession. Use your visual assist to select the appropriate write-off code. Now let's look at the customer ledger for this invoice, and the pending receipt journal: EnterpriseOne Accounts Receivable Rev. 3/21/04 2

The invoice has been closed with a zero open amount. EnterpriseOne Accounts Receivable Rev. 3/21/04 3

Note that the pending journal entry does not show any GL distribution. Why? The answer is that the AAIs default in the charge codes for the entries. Let's post the journal and look at the batch edit report: EnterpriseOne Accounts Receivable Rev. 3/21/04 4

The entries are correct in all instances. EnterpriseOne Accounts Receivable Rev. 3/21/04 5

Stand-Alone Write-Offs without an Invoice Match Create a receipt header as follows: Click SELECT on the Exit Bar FORM tab: EnterpriseOne Accounts Receivable Rev. 3/21/04 6

Highlight each row indicated and click SELECT. When all three invoices have a check mark in the first column, click CLOSE: EnterpriseOne Accounts Receivable Rev. 3/21/04 7

Click WRITE-OFF on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 8

NOTE: You must enter the write-off amount as a DEBIT for write-offs without an invoice match. If you don't, the system will create an unapplied cash entry. Click OK to return to the Receipt Entry: EnterpriseOne Accounts Receivable Rev. 3/21/04 9

NOTE: You can apply the discounts before you enter the write-off or you can apply them when the write-off is added to the screen. Either way, the discounts, if allowed, are applied as Discount Taken for each pay item, and the Payment Amount for each line is changed to the invoice amount less the discount allowed. That leaves the write-off as a deduction from the total payment. If all the entries are in balance, the Amount Unapplied in the lower right hand corner will be zero indicating the receipt can be saved and posted. Click OK and save the receipt. Inquire on the customer ledger to analyze the results. EnterpriseOne Accounts Receivable Rev. 3/21/04 10

Here we can see the three invoices have been paid in full with a zero Open Amount and a Date Closed. Post the receipt so we can analyze the batch edit listing: EnterpriseOne Accounts Receivable Rev. 3/21/04 11

All the entries are as we expected. EnterpriseOne Accounts Receivable Rev. 3/21/04 12

Stand-Alone Chargebacks with Invoice Match Chargebacks are most commonly associated with customer short payments resulting from disputes with one or more invoices. Many times the reasons for the short payment will be known when the receipt is entered, and you have decided that you will not let the customer off without some aggressive attempts to collect the shortage. The result of this example should be a new debit entry in the customer ledger for the amount of the short payment. Enter a receipt header like the example that follows: Click on the FORM tab on the Exit Bar and Click SELECT: EnterpriseOne Accounts Receivable Rev. 3/21/04 13

Highlight the row and click SELECT and click CLOSE: EnterpriseOne Accounts Receivable Rev. 3/21/04 14

Click CHARGEBACK on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 15

NOTE: The chargeback amount for this type of transaction must be POSITIVE. Our customer has short paid by $ 2,000.00, but we have decided to allow the full discount. That means the Chargeback Amount will be the Invoice Amount ($ 14,000.00) less the Discount ($ 652.38) less the Payment Amount ($ 12,000.00) which equals $ 1,347.62. Enter the amount of the short payment and the chargeback reason code as shown and click OK: EnterpriseOne Accounts Receivable Rev. 3/21/04 16

Note that the Chargeback Amount is positive which should end up in the customer ledger as a debit balance invoice. Enter $ 652.38 in the Discount Taken column. When you entered the receipt before the chargeback, you saw that the Payment Amount equaled the Receipt Amount. Now that we have added a chargeback, the system created the $ 1.347.62 credit in the Payment Amount Column. You need to adjust the original payment amount of $ 12,000.00 to the amount shown above after you apply the discount. Rearrange the columns so you can see the overall effect of the entry. After you apply the discount and adjust the payment amount, the Amount Unapplied in the lower right hand corner will go to zero. You won't be able to save the entry until this field is zero. Click OK to save the receipt and inquire on the customer ledger to see the effects of this entry: EnterpriseOne Accounts Receivable Rev. 3/21/04 17

The original invoice has been closed out with a zero Open Amount and a Date closed. Now find the chargeback invoice for the same customer with document type RB: EnterpriseOne Accounts Receivable Rev. 3/21/04 18

There it is. Now let's post the receipt journal and analyze the batch edit listing: EnterpriseOne Accounts Receivable Rev. 3/21/04 19

Everything appears to be in order as far as the GL is concerned. The entire original invoice amount has been relieved and the chargeback put back on the customer account and in the A/R control account just like we saw in the customer ledger. EnterpriseOne Accounts Receivable Rev. 3/21/04 20

Stand-Alone Chargeback with No Invoice Match Continuing the thread of the discussion, we now have a situation where we have received cash from a customer on several invoices, but the remittance advice does not tell us what invoice the short payment applies to. Enter the receipt for this type situation as follows: Click SELECT on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 21

Select the three invoices as indicated and click CLOSE when all three invoices have the check mark in the first column: EnterpriseOne Accounts Receivable Rev. 3/21/04 22

We see there is an open amount of $ 505.00 before application of discounts. If we net the Payment Amount on each line by the discount amounts, we derive a chargeback amount of $378.51. Click CHARGEBACK on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 23

Enter the chargeback as a POSITIVE value along with the reason code and click OK: EnterpriseOne Accounts Receivable Rev. 3/21/04 24

Now when we apply the discounts, we have an Amount Unapplied equal to the chargeback amount. Reduce the Payment Amount on the first three lines to an amount net of the discounts to get the balances to the illustration above. The Amount Unapplied is zero and the Chargeback Amount is positive indicating we can now save the receipt. Click OK and inquire on the customer ledger to see the effects of this entry: EnterpriseOne Accounts Receivable Rev. 3/21/04 25

Here we see the three invoices have been cleared and a Date Closed assigned indicating the invoices have been closed. Now refresh the search on document type RB only: EnterpriseOne Accounts Receivable Rev. 3/21/04 26

Here is the open chargeback invoice with a debit balance as we wanted. Post the receipt so we can analyze the results: EnterpriseOne Accounts Receivable Rev. 3/21/04 27

All of the invoices have been cleared and the chargeback put back onto the customer ledger. But wait. The JDE Manual says to enter the no invoice match amount as a negative to avoid creating an invalid Unapplied Cash Entry. Let's return to the customer ledger and inquire on document type RU: EnterpriseOne Accounts Receivable Rev. 3/21/04 28

All we see here are voided Unapplied Cash entries. Our chargeback did NOT create an RU entry as the manual warned against. NOTE: If you create chargeback invoices, there should be a policy in place about reviewing, printing and sending those types of invoices by the appropriate management personnel. EnterpriseOne Accounts Receivable Rev. 3/21/04 29

Stand-Alone Deductions with an Invoice Match The last two types of Stand-Alone entries are deductions that occur when payment is received and you have a short payment that is neither a write-off nor a chargeback. In this instance, the amount in dispute is entered into the A/R Deduction Management Table for later resolution. Enter the receipt header as follows: Click SELECT on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 30

Highlight the invoice with a deduction and click SELECT, verify the purple check mark in the left most column and click CLOSE: EnterpriseOne Accounts Receivable Rev. 3/21/04 31

Click DEDUCTION on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 32

Note: The deduction amount must be POSITIVE for this type of transaction. Enter the Deduction Amount and the Reason Code and click OK: EnterpriseOne Accounts Receivable Rev. 3/21/04 33

Once again we have to make a couple of additional entries on this screen and rearrange the columns for display purposes. Enter the Discount Available of $42.39 into the Discount Taken column, and increase the Payment Amount by the chargeback amount of $ 440.00 to make the Payment Amount on the first line $4,357.61. When these entries are made, the Transaction Open Amount becomes zero and the Amount Unapplied becomes zero indicating the record is ready to be saved. Click OK to save the receipt record inquire on the customer ledger: EnterpriseOne Accounts Receivable Rev. 3/21/04 34

The invoice has been closed with a zero open amount. Now let's find the deduction. Reinquire on Document Type R5: EnterpriseOne Accounts Receivable Rev. 3/21/04 35

Here is the deduction invoice put back onto the customer ledger. Let's post the receipt and look at the GL Entries: EnterpriseOne Accounts Receivable Rev. 3/21/04 36

The Demo AAIs are configured to take the unresolved deduction to the Allowance for Doubtful Accounts Balance Sheet account in anticipation of a future write-off. You could change the AAIs to point to different accounts such as expense accounts. EnterpriseOne Accounts Receivable Rev. 3/21/04 37

Now we will look in the A/R Deductions Management Table (F03B40). Choose A/R Deduction Processing on Menu G03B12: Here we see the deduction ready to be "worked" to resolution. This application is sometimes called the Deduction Workbench. We will discuss this further later in the course. EnterpriseOne Accounts Receivable Rev. 3/21/04 38

Stand-Alone Deductions without an Invoice Match Similar to the Stand-Alone Chargeback, this application works with multiple invoice payments. Enter the receipt header as indicated below: Click SELECT on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 39

Select the three invoices and click CLOSE: EnterpriseOne Accounts Receivable Rev. 3/21/04 40

Rearrange the columns so you see the applicable column values. We are showing an Open Amount of $323.00 on the third line which represents the total short payment on this receipt. As with the chargeback example before, we need to net the Open Amount against the discounts to get the right deduction amount of $ 255.92. Click DEDUCTION on the Exit Bar: EnterpriseOne Accounts Receivable Rev. 3/21/04 41

Enter the Deduction Amount as a POSITIVE number along with the reason code and click OK: EnterpriseOne Accounts Receivable Rev. 3/21/04 42

We apply the discounts as indicated and change the line Payment Amounts to match the invoice value net of discounts and the Amount Unapplied goes to zero and we have a debit Deduction Amount just as we wanted. Click OK and inquire on the customer ledger to see the results: EnterpriseOne Accounts Receivable Rev. 3/21/04 43

We find our three invoices have been paid in full and closed. Now let's find the deduction that was added back to the account by re-inquiring on document type R5: EnterpriseOne Accounts Receivable Rev. 3/21/04 44

Here is the deduction put back on the customer ledger. Let's post the receipt and analyze the batch edit listing: EnterpriseOne Accounts Receivable Rev. 3/21/04 45

All the entries reflect what we expect to see. Now inquire on the Deduction Workbench: EnterpriseOne Accounts Receivable Rev. 3/21/04 46

Here is our $255.92 deduction waiting to be "worked". We again need to check the customer ledger to make sure we haven't created an invalid RU entry as the documentation manual warned us about. Inquire on document type RU for customer 3001: EnterpriseOne Accounts Receivable Rev. 3/21/04 47

Once again, we find no unexpected RU entries from the previous deduction entry. EnterpriseOne Accounts Receivable Rev. 3/21/04 48

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