This chapter contains these topics:
This chapter is an overview of the application of cash receipts and adjustments to invoices. The cash application process for the Real Estate Management system is similar to the one for the Accounts Receivable system, with the following exceptions:
The system uses lease numbers and bill codes to apply cash receipts. It also does not include parent numbers.
The bill codes have different priorities, which affect how the system applies payments that do not exactly match invoices.
With bill codes, you can also apply prepayments automatically.
It updates the Lease Financial Summary file (F1520), which contains the cumulative balances for the amounts billed and cash received for each period.
The cash application process involves the following tasks:
Apply the cash receipts.
Review and approve the receipts.
Post the receipts.
JD Edwards World recommends that you use only the Real Estate Management screens for the cash receipts and adjustments related to a tenant's account.
Before you can apply a cash receipt, set up the following information:
Real Estate Management constants and user defined codes
Facility, tenant, and lease information
Accounts receivable constants
Bill codes with their automatic accounting instructions (AAIs)
This screen lets you verify the number and total amount of the documents that you include within a batch. Batch control, which is optional, is controlled by the Batch Controlled Required (Y/N) field on the Accounts Receivable Constants screen. When the field is set to Y (Yes), the Batch Entry and Status screen appears each time that you choose and exit a receipts entry screen.
You use the following screens to add and work with cash receipts. The fields and procedures for both screens are identical, but the locations of some of the fields are different. This difference makes it easier to apply cash receipts in different circumstances.
For Receipts Entry (Heads Up), you view the screen as the system supplies the information for the invoices. You can either pre-load the A/R information onto the screen or apply the cash receipt automatically.
For Receipts Entry (Heads Down), you look away from the screen as you manually type the information for the invoices from a ledger or the actual documents.
The system updates the A/R Account Ledger file (F0311), but it does not add new information to the Tenant/Lease Billings Detail file (F1511). You use the following methods, which you specify with a TI (Type of Input) code, to apply cash receipts:
Balance Forward - Applies a payment to the oldest open invoice and then to each preceding invoice until the entire amount of the payment has been applied. This is the most simple method in the cash application process.
Invoice Matching - Applies a payment to all or part of a specific invoice. This is the most common method in the cash application process.
General Ledger - This method is for miscellaneous receipts such as vending machine commissions, postage receipts from employees, and so on. Such receipts do not relate to tenant invoices. In this case, the system updates the G/L Account Ledger file (F0911) rather than the A/R Account Ledger file.
Chargeback Debit - This method is for an invoice with a credit claim that has been disallowed, a disputed charge for a repair, or parts that have been back-ordered. Because the cash receipt is most likely a partial payment, the system "pays off" (clears) the unpaid portion of the invoice and creates a new invoice in its place. You can then bill a tenant again for that unpaid amount.
Unapplied Credit - If a cash receipt cannot be matched with an existing invoice, this method creates a new, open receivable transaction that can be matched at a later date. Common types of unapplied credit (cash) are prepayments for rent, overpayments, and security deposits.
You can have prepayments applied automatically to new invoices when you run the Post Invoices program. This program runs a DREAM Writer version of the G/L Transaction Generation program (P15199), which creates a batch of cash receipts for automatic prepaid application if the processing options are set accordingly. This is helpful if you receive a lot of payments before the actual invoices are generated and posted.
Spread - Adjusts receivables within the same account or applies open credits such as unapplied cash to an invoice.
Adjustment - Corrects an amount billed in error, writes off a bad debt, or writes off an uncollectable amount. If you add a receipt for the wrong tenant, you can also adjust the accounts by the amount of the receipt from one tenant to the other.
The batch review and approval facility is a paperless alternative to the traditional journal reports and includes the following three levels of detail.
At the first level, you can review and approve batches of transactions. From the list of batches, you can choose a specific batch and display the next level of detail.
At the second level, you can review all the documents in a batch. The system provides general information for each document. From this list, you can choose a specific document and display the next level of detail.
At the third level, you can review or change the detail in a document.
This screen, which is the first level of detail in the review process, lets you review and approve batches of receipts for posting. From this screen, you can access the other two levels of detail. This series of screens displays and updates information in the Batch Control Records file (F0011) and the A/R Account Ledger file.
This screen lets you display and print a tenant's transaction history for accounts receivable. This information is kept in the A/R Account Ledger file.
This report is a traditional journal you can use to proof and balance transactions related to cash receipts. Though the report is helpful, the online review process, which begins with the Receipts Journal Review screen, is quicker and more flexible. However, the report may provide a more workable form for a detailed review of some balancing problems.
The version of the post program for cash receipts does the following:
Selects unposted transactions from the A/R Account Ledger file.
Verifies the information in each transaction.
Posts the transactions to the G/L Account Balances file (F0902).
Marks the transactions as posted in the following files: G/L Account Ledger, A/R Account Ledger, and Batch Control Records. The posted codes in the three files are P, D, and D, respectively.
Creates and posts the automatic offsets to accounts receivable.
You must set up the Batch Type Selection processing option for cash receipts (batch type R).
This screen and its three levels of review let you review a cash receipt and verify that it is posted. However, you cannot use this screen to view the automatic offsetting entries. To view these entries, you begin with the General Journal Review screen.