70 Set Up A/R Constants

This chapter contains these topics:

Constants provide a basic framework for how your Accounts Receivable system works, based on your needs.

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From Accounts receivable (G03), enter 29

From Accounts Receivable Setup (G0341), choose Accounts Receivable Constants

Information about constants is stored in the General Constants table (F0009).

Before You Begin

  • Ensure that only authorized personnel can access your A/R constants.

Figure 70-1 Accounts Receivable Constants screen

Description of Figure 70-1 follows
Description of ''Figure 70-1 Accounts Receivable Constants screen''

70.1 Setting Up the Default Company

You must set up company 00000 as a default company to control:

  • The company name that appears on the top of all reports

  • Default values in the AAIs

  • Default reporting periods for information viewed online

Company 00000 does not contain actual accounting activity.

You might need to set up companies that require A/R constants different from the default values you specify for company 00000. You can override the default values when you enter a customer master record.

To set up the default company

On Accounts Receivable Constants

Change the following field, if necessary:

  • Company

70.2 Setting Up A/R Notification Controls

Specify whether a customer is to receive delinquency notices on overdue account balances and whether the system prints invoices or statements. The system uses this information as the default values for the company. You can override it for a customer in the customer master record.

To set up A/R notification controls

On Accounts Receivable Constants

Change the following fields, if necessary:

  • Delinquency Notice

  • Print Statements

70.3 Setting Up Automatic Receipts Processing

Specify whether you will receive customer payments on a company basis through automatic receipts processing and how the receipts will be applied. The system uses this information as the default value for the company. You can override it for a customer in the customer master record.

To set up automatic receipts processing

On Accounts Receivable Constants

Change the following fields, if necessary:

  • Auto Receipt

  • Auto Receipt Algorithm

70.4 Setting Up A/R Aging Information

You can specify how to age your customer's invoice information. For example, you can set up the "as of" date, the aging method, and the number of days in each time interval to calculate aging information for reports.

To set up A/R aging information

On Accounts Receivable Constants

Change the following fields, if necessary:

  • Age as of Date

  • Aging Method

  • Date Aging Based On

  • Aging Days - Beginning

  • Aging Days - Thru

Field Explanation
Age as of Date The 'As Of' date or cutoff date used for aging Accounts Receivable invoices. The system compares the 'As Of' date to one of several dates associated with an invoice to determine which aging category the invoice open amount is to be applied to.

This date is maintained in the Company Constants table (F0010) and can be set up globally (company 00000) or for a specific company. Processing options are often available to override this date within a specific program.
Aging Method (1,2,3) A code that designates the way aging will be calculated. Valid codes are:

1 – Aging days

2 – Fiscal periods

3 – Calendar
Date Aging Based On (I/D/G) A code that indicates the date used for aging calculations. Valid values are:

I – Invoice date

D – Due date

G – G/L date

S – Statement date
Aging Days - Beginning Categories that control how delinquent accounts print. Aging categories print on delinquency notices and statements if you set this option. The system uses these categories only when you specify Aging Method 1.
Aging Days - Thru The specified number of days for the Accounts Receivable aging report.

70.5 Setting Up Batch Control for A/R

You might want to enter the total number of documents (invoices and receipts) within a batch and the total amount of the batch before you actually enter the transactions. You use batch control to verify these totals after you enter the batch.

To set up batch control for A/R

On Accounts Receivable Constants

Change the following field, if necessary:

  • Batch Control Required

Field Explanation
Batch Control Required (Y/N) A code that generates automatic verification of the totals entered for each batch. Valid codes are:

Y – Batch control on. A batch header control form appears when you select invoice entry, receipts entry, or adjustments. You enter the total number of documents and the total amount you expect the batch to contain. When you finish entering each batch, the system displays the difference, if any, between the totals you expected to enter and the totals you actually entered.

N – Batch control off.

70.6 Setting Up A/R Batch Approval

You can specify whether management approves each batch of transactions before they are posted.

To set up A/R batch approval

On Accounts Receivable Constants

Change the following field, if necessary:

  • Manager Approval of Input

Field Explanation
Manager Approval of Input A code that controls approval of batches for posting. Valid codes are:

Y – Management approval is required. The system assigns a status code of pending to each batch. You must manually change the status to approved before the system will post the batch to the general ledger.

N – Management approval is not required. The system automatically sets the batches in an approved status for posting.

70.7 Setting Up the Automatic Offset Method for A/R

You need to designate the type of offsetting entries that the system create in the A/R offset and discount accounts when you post invoices to the general ledger.

If you use multi-currency, you cannot set the Offset Method field to B (Batch).

To set up the automatic offset method for A/R

On Accounts Receivable Constants

Change the following field, if necessary:

  • Offset Method

Field Explanation
Offset Method The method for automatically generating an offset entry when it is posted to the general ledger. Valid codes are:

D – Create an offset entry for each detail record (gross amount, discount amount, and tax accruals are separate offset entries)

S – Create a summarized offset for each detail record (gross amount, discount amount and tax accruals are combined into one offset entry)

Y – Create one offset per document (multiple items)

B – Create one offset for each batch.

The system creates offsets against actual amount and multi-currency ledger types only.

70.7.1 Example: Journal Entry Created by Automatic Offset

The following report shows a journal entry that the system created as an automatic offset using the batch method. The system uses the batch number for the document number of the automatic offset, rather than the document number of the transaction as with the other Offset methods.

Figure 70-2 General Ledger Post - Invoice Entry report

Description of Figure 70-2 follows
Description of ''Figure 70-2 General Ledger Post - Invoice Entry report''

70.8 Setting Up the G/L Interface Control for A/R

If your A/R system does not interface with the JD Edwards World General Accounting system, you can choose to bypass the verification of the general ledger accounts.

To set up the G/L interface control for A/R

On Accounts Receivable Constants

Change the following field, if necessary:

  • G/L Interface

Field Explanation
G/L Interface This flag is set to N if you do not have the JD Edwards World General Ledger system product. Accounts Receivable programs will bypass G/L account verifications and general ledger account updates under the presumption that the G/L system is not active.

70.9 Setting Up Suspended Tax Processing for A/R

A code that specifies whether the Suspended Tax Processing is active for Accounts Receivables. This code is used at a System level and optionally at a Company level.

To set up Suspended Tax Processing for A/R

On Accounts Receivable Constants

Change the following field, if necessary

  • Suspended Tax Processing

Field Explanation
Suspended Tax Processing Valid values at the System level are:

Blank – Suspended Tax Processing is not active.

0 – Suspended Tax Processing is not active.

1 – Suspended Tax processing is active for all invoices.

2 – Suspended Tax processing is activated at a Company level. Refer to company constants as seen in Company Numbers and Names (P00105) for further indication of whether Suspended Tax processing is active for specific companies and associated invoices.

Valid values at the Company level are:

Blank – Suspended Tax Processing is not active.

0 – Suspended Tax Processing is not active.

1 – Suspended Tax processing is active for all invoices.

2 – Suspended Tax processing is activated at a Tax Area level. Refer to User Defined Code 00/XA for Tax Areas that required Suspended Tax processing.

70.10 Setting Up Exchange Rate difference for A/R

A code that specifies whether the Exchange Rate Difference processing is active for Accounts Receivables. This code is used at a System level and, optionally, at a Company level.

To set up Exchange Rate Difference for A/R

On Accounts Receivable Constants

Change the following field, if necessary

  • Exchange Rate Difference

Field Explanation
Exchange Rate Difference Valid values at the System level are:

blank – Exchange Rate Difference processing is not active.

0 – Exchange Rate Difference processing is not active.

1 – Exchange Rate Difference processing is active for all invoices.

2 – Exchange Rate Difference processing is activated at a company level. Refer to company constants as seen in Company Numbers and Names (P00105) for further indication of whether Exchange Rate Difference processing is active for specific companies and associated invoices. |

Valid values at the Company level are:

blank – Exchange Rate Difference processing is not active.

0 – Exchange Rate Difference processing is not active.

1 – Exchange Rate Difference processing is active for all invoices