55 Work with A/R Draft Collection

This chapter contains these topics:

After your bank has collected draft payments from your customer's bank, you must update the status of draft payments to show them as collected. This task consists of the following:

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Draft remittance/Collections

From A/R Drafts Remittance & Collection (G031112), choose Status Update with or without JEs

55.1 Updating Draft Payment Status

The Status Update program changes the status of draft payments to paid. Optionally, it creates journal entries that debit your cash account and credit your drafts remitted account.

Some companies prefer to create journal entries on the draft due date while others wait until the payment appears on their bank statement. Depending on your company policy, do one of the following:

  • Run Status Update with Journal Entries on the draft due dates and create journal entries at that time.

  • Run Status Update without Journal Entries on the draft due dates using a pay status code of something other than P (paid). Then, run the Status Update with Journal Entries after you verify that payments have been collected.

You can run this program in either proof or final mode.

Proof mode Final mode
In proof mode, this program prints a report that shows the drafts to be updated. It shows all drafts that have a payment status of G (remitted or guaranteed) with a due date that you specify in processing option. In final mode, the program works in the same way as proof mode except that it also:
  • Updates the payment status of drafts to P (paid) or to another value you choose

  • Creates journal entries (optional)


This program displays and updates information in the A/R Ledger table (F0311).

55.1.1 Processing Options

See Section 105.10, "A/R Draft Collection (P03576)."

55.2 Notifying Customers of Non-Sufficient Funds

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Draft remittance/Collections

From A/R Drafts Remittance & Collection (G031112), choose NSF Notification

Your bank might not be able to collect money from a customer because of non-sufficient funds. When this happens, you can send the customer a notification letter that lists all outstanding drafts that they owe.

The NSF Notification program lists outstanding drafts on the notification letter only if the document type for the payment item is RV (non-sufficient funds). The draft information on the notification letter is from the A/R Ledger table (F0311). The contents are from the Generic Message/Rates (F00191) and the General Message Detail (F00192) tables.

55.2.1 Before You Begin

  • Create text for your letters using NSF Notification Generic Text

55.2.2 Example: Non-Sufficient Funds Letter

The following example shows a letter notifying a customer about non-sufficient funds.

Figure 55-1 Non-Sufficient Funds Letter

Description of Figure 55-1 follows
Description of "Figure 55-1 Non-Sufficient Funds Letter"

55.3 Reviewing and Approving Journal Entries for A/R Draft Collections

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Draft remittance/Collections

From A/R Drafts Remittance & Collection (G031112), choose an option under the Journal Entry Review & Post heading

If you created journal entries, you must review and approve them after you update the status of drafts to collected. Posting debits a cash account and credits the drafts remitted account.

All JD Edwards World's journal review programs work the same way.

55.4 Posting Journal Entries for A/R Draft Collections

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Draft remittance/Collections

From A/R Drafts Remittance & Collection (G031112), choose an option under the Journal Entry Review & Post heading

After you review and approve journal entries, you must post them to the general ledger. Posting them debits cash account and credits the drafts remitted account.