21 Process Non-Sufficient Funds for RiBa

This chapter contains these topics:

21.1 Processing Non-Sufficient Funds for RiBa

RiBa, or accounts receivable drafts, are a common payment instrument in Italy. Italian businesses usually process (generate and remit to the bank) large volumes of RiBa on a daily basis. It is common for the bank to return a certain number of RiBa for non-sufficient funds (NSF).

When the bank returns RiBa because of non-sufficient funds in the customer's bank account, you must void the RiBa on the system. You do this by creating a matching document that closes the original draft and reopens the invoice. To avoid selecting the same invoice when you regenerate RiBa, you can use the Receipt Entry country server (P031031IT) to automatically change the payment instrument for invoices that you reopen due to non-sufficient funds.

To process non-sufficient for RiBa

Process RiBa through the standard draft process:

  1. Enter the drafts manually (P03103) or automatically (P03571)

  2. Remit the drafts using the Italian RiBa format (P03577)

  3. Collect the drafts (P03576)

  4. Then, for RiBa that the bank returns due to non-sufficient funds, access the Receipts Entry screen and choose one of the following:

    • Automatic NSF Entries (matching document RO)

    • Automatic Reversing Entries (matching document RV)

    The system automatically:

    • Creates a matching document (Document Types RO or RV) that closes the original draft (RiBa) record (Document Type R1)

    • Reopens the original invoice record (Document Type RI)

    • Creates an offsetting accounting entry, if necessary

The country server automatically changes the payment instrument of the original invoice record to the default payment instrument. You can use a processing option for the country server to specify the default payment instrument.

The following graphic illustrates how you use JD Edwards software to process non-sufficient funds for RiBa.

Figure 21-1 Process Non-sufficient Funds for RiBa

Description of Figure 21-1 follows
Description of "Figure 21-1 Process Non-sufficient Funds for RiBa"

21.1.1 Alternate Solutions

You can also use the custom module provided by J.D. Edwards Italy to process non-sufficient funds for RiBa.

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