Creating a Note Receivable
Create notes receivable to record future-dated payments in Receivables. With this type of payment, funds are transferred from the note issuer's bank to the note holder's bank on the note maturity date.
You can only enter notes receivable manually using the Receipts window, you cannot create notes using the Receivables Automatic Receipts feature.
To create a note receivable:
1. Navigate to the Receipts window.
2. Choose a Receipt Type of Cash.
3. Enter basic information for this note including note Number, Currency, Amount, and GL Date. The default GL Date is the current date. However, if the current date is not in an open period, the default GL Date is the last date of the most recent open period.
You can enter transactions in any currency defined in the system if you have at least one remittance bank account whose Receipts Multi-Currency check box is Yes. If no such bank account exists, you are limited to entering only those currencies in which bank accounts exist. If the currency for this note is different from your functional currency and you have not defined daily conversion rates, enter exchange rate information. See: Foreign Currency Transactions.
4. Enter the Payment Method that you assigned to your Notes Receivable Receipt Class. Receivables uses the payment method to determine the accounting and remittance bank accounts for this note.
5. If you are using manual document numbering, enter a unique Document Number. If you are using automatic document numbering, Receivables assigns a unique number when you save. For more information, see: Implementing Document Sequences.
6. Open the Note Isssuer alternative region, then enter the following information:
Issuer Name: (optional) The name of the person who issued this note. The note issuer does not need to be defined in Receivables.
Issue Date: The Date you are issuing this note. The default is today's date, but you can change it.
Issuer Bank Name: Enter the bank from which this note was issued, or select a bank from the list of values.
Issuer Bank Branch: Enter the bank branch from which this note was issued, or select a branch from the list of values.
7. If the system option Require Billing Location for Receipts is set to Yes, enter a Bill-To Location.
8. Open the Remittance alternative region, then enter the note Deposit Date and Maturity Date. The default deposit date is today's date. You can change the deposit date, but it cannot be earlier than the Receipt Date (note date). The default Maturity Date is the same as the deposit date. The Maturity Date is the date that funds will be transferred from the note issuer's bank to the note holder's bank.
9. Receivables derives the default remittance bank account from the payment method you entered. You can accept this value or enter any bank account assigned to the payment method if the bank account is in the same currency as that of the receipt, or if the Multi-Currency check box for the remittance bank is Yes.
10. To prevent the receipt Remittance bank from being automatically overridden during the remittance process, choose Don't Allow in the Override Bank Account field (optional). If you choose Allow, Receivables can automatically change the receipt remittance bank to the remittance batch bank during the remittance process. See: Creating Remittance Batches.
11. If bank charges apply, open the Application Summary alternative region, then enter an amount for Bank Charges. Bank charges may apply if the receipt's creation status is Cleared (the clearance method of the associated receipt class must be set to Directly). See: Receipt Classes.
12. Save your work. Receivables assigns this note a status of Open.
See Also
Reversing a Note Receivable
Clearing Notes Receivable
Notes Receivable Report
Notes Receivable
