Previous	Next		Contents	Index	Navigation	Glossary	Library

Step 1 Define Banks and Bank Accounts

Define the banks and bank accounts you use to remit your payments. You can define as many banks and bank accounts as you want, but each bank account must refer to one currency. Receivables requires that you enter a cash account for each bank account. See: Defining Banks.

Step 2 Define Receipt Classes

Define a receipt class to use with your notes receivable. Indicate that this receipt class will be used for notes receivable by setting Notes Receivable to Yes. You define Receipt Classes in the Receipt Classes window. See: Receipt Classes.

Additionally, use the following settings for your Notes Receivables receipt class:

Creation Method: 'Manual'

Remittance Method: Standard, Factoring, or Standard and Factoring

Clearance Method: Automatic Clearing or Matching

Step 3 Assign Payment Methods and Remittance Banks

Assign a payment method to your note receivable receipt class. Set the number of Lead Days (clearing days) to zero so the cash account can be debited on the note maturity date. Lead Days represent the number of days after the maturity date that funds can be transferred from the issuer's bank account to the note holder's bank account when the receipt is cleared.

The Notes Receivable account should be cleared on the note maturity date. To do this when you assign a remittance bank to this payment method, assign your Confirmation, Remittance, and Factoring accounts to your Notes Receivable account. Additionally, you should assign your Notes Factored account to the Short Term Debt account. The Short Term Debt account will be used for delinquent notes.

For more information, see: Payment Methods and Assigning Remittance Banks.

See Also