Setting Up Distribution Codes

Distribution Code Page

DST_CODE_TABLE

Define or review distribution codes.

Draft Details Page

DST_CODE_DRAFT_SEC

Specify the draft distribution codes to associate with the AR (accounts receivable) distribution code.

Distribution Type

Select a value that indicates how the system will use the account. Values are:

AR (accounts receivable): The system uses this value for pending items. You must assign default distribution codes for pending item groups. The system obtains the default distribution codes using the following hierarchy:

1. From the entry reason on the Item Entry Type - Selection page for billing groups or the entry reason on the Automatic Entry Type - Selection page for payment, draft, maintenance, and overdue charges groups.

2. From the customer on the General Information - Bill To Options page.

3. From the business unit on the Receivables Definition - Accounting Options 1 page.

The Revaluation Application Engine process (AR_REVAL) also uses the AR distribution type to create accounting entries. Create a separate distribution code if you use translation ledgers.

Disc Draft (discounted drafts): The receivable account for discounted drafts. Select or enter this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page.

Dishonor: The receivable account for dishonored drafts. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page.

Doubtful: The receivable account for doubtful receivables. Specify this code on the Receivables Definition - Accounting Options 1 page.

Draft Liab (draft liability): The draft liability account for drafts discounted with recourse. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page.

Draft: The receivable account for items that have been applied to any draft. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page.

Maint Ctrl (maintenance control): Used to create the offsetting entry for transactions in maintenance groups. Specify this code on the Receivables Definition - Accounting Options 2 page.

Real G/L (realized gain/loss): Used behind the scenes by the maintenance and payment worksheets and draft processing to create adjusting entries for multicurrency processing. You can define as many distribution codes as you choose, but each business unit can have only one realized gain and one realized loss code.

Translation for a realized gain or loss for translation ledgers also uses this value. If you want to track realized gains and losses separately you must create separate distribution codes for realized gains and realized losses.

Specify these codes on the Receivables Definition - Accounting Options 1 page and the Receivables Definition - Options 2 page.

Refund Ctrl (refund control): This value is the ChartField combination used to record the liability for a refund. Specify this code on the Receivables Definition - Accounting Options 2 page. If you use the commitment control option, the system does not update either the Recognized or Collected budget if you use an expense account. Instead, the system updates an Expense budget.

Remit Drft (remitted drafts): The receivable account for nondiscounted drafts that have been remitted to the bank. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page.

Round: The system uses this value when you apply a payment to an item on the payment worksheet for which the currency differs from the currency of the item or when the payment and item are in the same currency, but differ from the base currency of the business unit. The Receivable Update process posts any remaining amount from the currency conversion to this rounding account. Specify this code on the Receivables Definition - Accounting Options 1 page.

Trans Ctrl (transfer control): The system uses this value to create the offsetting entry for transactions in transfer groups. Specify this code on the Receivables Definition - Accounting Options 2 page.

Unreal G/L (unrealized gain and loss): Used only during revaluation. This code enables you to summarize gains and losses into one line that updates the unrealized gain and loss account. If you want to track unrealized gains and losses separately, you need to create separate distribution codes for unrealized gains and unrealized losses. Specify these codes on the Receivables Definition - Accounting Options 2 page.

Contract Asset Dist Code (contract asset distribution code)

Select if the distribution type is AR and you have contract assets. This field is available only when the distribution type is AR.

Draft AR Distribution Code

Enter the code that defines the receivable account for approved drafts.

Remitted Draft Receivable Code

Enter the code that defines the receivable account for remitted drafts.

Draft Discount Receivable Code

Enter the code that defines the receivables account for the discounted drafts.

Draft Discount Liability Code

Enter the code that defines the liability account for drafts discounted with recourse.

Dishonored Draft Code

Enter the code that defines the receivable account for dishonored drafts.