69 Overview to System Setup

This chapter contains these topics:

69.1 Objectives

  • To understand how to set up the accounts receivable controls that let you process receivables information

69.2 About System Setup

Before you use the Accounts Receivable system, you need to define certain information that the system will use during processing. This information is used to customize the system for your business needs. For example, you might want to enter the totals for a batch of invoices first and have the system verify the totals after you enter the batch.

System setup consists of:

  • Setting up A/R constants

  • Setting up payment terms

  • Understanding automatic accounting instructions (AAIs)

  • Working with AAIs

  • Understanding user defined codes

  • Setting up user defined codes

  • Setting up next numbers

  • Setting up customer bank information

  • Setting up A/R draft processing

69.2.1 What Do the A/R Setup Features Do?

Feature Description
Constants Establish system basics, such as:
  • Whether the system verifies that the amount and number of documents in a batch of invoices balance to the totals that you enter separately

  • Whether you require management approval of batches of documents before posting

  • How you want the system to create automatic offsets

  • The number of days and the time intervals on your aging reports

Payment terms Identify the various types of payment terms for your customer's invoices, such as net due dates, net with discount, and due upon receipt
AAIs Define accounting information, such as offset accounts and default bank accounts
User defined codes Define customized codes, such as document types and payment statuses, that are appropriate for your business needs
Next numbers Establish an automatic numbering system for documents
Customer bank information Define the various types of bank account information required for lock box processing (automatic receipts)

Additionally, you can use Enhanced Subledger Accounting in Accounts Receivable for distribution accounts and general ledger type receipts. See Work with Enhanced Subledger Accounting in the JD Edwards World General Accounting I Guide for more information.