Accounting System Options
Use the Accounting alternative region to decide whether to accrue interest, allow for partial or unearned discounts, and to define your accounting flexfields. You can also choose whether to use automatic journal import, enter your AutoCash rule set, and specify how many days should be included in each posting cycle.
To define your Receivables accounting system options:
1. Open the Accounting alternative region.
2. Enter the Accounting Method to use for your set of books. Enter 'Accrual' if you want your billing system to record revenue from invoices, debit memos, and chargebacks. When you use this method, Receivables debits your cash account and credits your receivables account upon payment of a debit item.
Enter 'Cash Basis' to recognize revenue at the time you receive payment for an invoice, debit memo, or chargeback. Receivables debits cash and credits revenue when using the Cash Basis method. See: Using Cash Basis Accounting.
Attention: Once you enter and save this information, you cannot update your Accounting Method.
3. Enter the Name of your receivables accounting set of books. If you are not using the Multiple Organization Support feature, you can have one set or multiple sets of books for your business, but you can only have one set of books for each Receivables installation. You cannot change this value after you enter transactions in Receivables.
4. If you want Receivables to automatically update the open balance in the Transactions workbench for transactions that are past due, check the Accrue Interest check box. If this option is set to No, the Lines window in the Transaction workbench will always display the original balance of your transactions; it will not update the balance due to include any finance charges.
Note: You can include finance charges for past due items when printing your dunning letters and statements.
5. To allow Receivables to accept unearned discounts, check the Allow Unearned Discounts check box. Unearned discounts are discounts a customer takes after the discount period passes. You define discount periods when defining your payment terms. See: Payment Terms.
6. Enter the Discount Basis you want Receivables to use when calculating discounts for your invoices. Receivables uses this value as the default Discount Basis in the Payment Terms window. Choose one of the following discount methods:
Invoice Amount: Choose this option to calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices.
Lines Only: Choose this option to calculate the discount amount based on only the line amounts of your invoices.
Lines, Freight Items and Tax: Choose this option to calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level.
Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices.
7. To allow discounts to be taken for partial payments, check the Discount on Partial Payment check box. Partial payments are payments that are less than the amount due remaining for a transaction.
8. Enter an AutoCash Rule Set (optional). Receivables uses this AutoCash Rule Set when you enter a receipt for a customer whose profile class has not been assigned an AutoCash Rule Set.
Your AutoCash Rule set and the Discount Grace Days you specify in a customer's credit profile determine the sequence of AutoCash Rules that Receivables uses when you run Post QuickCash to automatically apply receipts to this customer's open debit items. See: AutoCash Rules.
9. If your accounting method is Accrual, enter your Realized Gains and Realized Losses Accounts. Receivables posts changes in your functional currency to your Realized Gains or Losses account in your general ledger if there are differences in exchange rate gains or losses.
For example, if the exchange rate for a foreign currency invoice is 1.7 and the exchange rate of your payment for this invoice is 2.0, Receivables posts the difference as a gain to your Realized Gains account. Receivables provides descriptions of each segment, verifies that all flexfield segments are active, and ensures that you enter a valid combination.
10. Enter the Tax Account to use as the default value in the Tax Codes and Rates window. See: Tax Codes and Rates.
11. If your accounting method is Cash Basis, enter your Unallocated Revenue Account. Receivables uses this account when you apply a cash receipt with a balance other than zero to an invoice with a zero balance.
12. Enter a Rounding Error Account. Receivables uses this account to record any rounding error amounts created during a cross currency receipt application for currencies that have a fixed rate relationship. You need to define a rounding error account if you will create cross currency receipts. See: Cross Currency Receipts.
13. To import the batches of transaction records that you post into your general ledger, check the Automatic Journal Import check box. The value you enter becomes the default value for the Run GL Journal Import field in the Run GL Interface window. See: Running GL Interface.
14. Enter the number of Days per Posting Cycle. This lets you process the transactions you are posting in smaller groups to ensure that you do not run out of rollback space during posting. For example, if your accounting period is 30 days and you set this value to 30, the posting program uses only one cycle. If your accounting period is 30 days and you set this value to 17, the posting program uses two cycles. We recommend that you set this field to a value that is less than the number of days in your accounting period.
See Also
Tax System Options
Transactions and Customers System Options
Miscellaneous System Options
Calculating Finance Charges
Discounts
