Example: Invoice Match with Deduction (Type Input Code 17)

Entering receipts with deductions is a method of postponing a response to a short payment from the tenant without delaying payment entry. You can enter the payment immediately while another person researches and resolves the deduction.

Here are some common reasons that a tenant might take a deduction:

Taking unearned discounts
Billing errors
Refusing to pay tax

Specify that the system calculates deductions by using type input code 17. If the amount that is applied to the invoice is less than the receipt amount, the system automatically updates the Deduction Amount field for the difference. The system also updates the deduction reason code with the default value that you specify in the processing options.

When you enter a receipt with a deduction, the system generates documents in three tables. This table lists the tables and describes the records that the system generates in the tables:

Table	Description
Customer Ledger (F03B11)	The system generates a deduction invoice document, which takes the place of a specific invoice or group of invoices, for the disputed amount you are researching and resolving. The system closes the invoice, marks it as paid, creates a new deduction invoice record, and assigns document type R5 to the new record. The deduction invoice record has these characteristics: It establishes an audit trail to the receipt payment ID. It establishes an audit trail to the original invoice (if the deduction was generated for a specific invoice). It is expressed as a debit amount. It has a batch type of RB. It contains a posting status of D (posted). The posted codes for the payment records in the Receipts Header table (F03B13) and Receipts Detail table (F03B14) remain blank until the receipt is posted.
Receipts Header (F03B13)	The system generates a receipt record.
Receipts Detail (F03B14)	The system generates a detail record that pays the invoice from which the deduction was generated.

Table

Description

Customer Ledger (F03B11)

The system generates a deduction invoice document, which takes the place of a specific invoice or group of invoices, for the disputed amount you are researching and resolving. The system closes the invoice, marks it as paid, creates a new deduction invoice record, and assigns document type R5 to the new record.

The deduction invoice record has these characteristics:

It establishes an audit trail to the receipt payment ID.
It establishes an audit trail to the original invoice (if the deduction was generated for a specific invoice).
It is expressed as a debit amount.
It has a batch type of RB.
It contains a posting status of D (posted).

The posted codes for the payment records in the Receipts Header table (F03B13) and Receipts Detail table (F03B14) remain blank until the receipt is posted.

Receipts Header (F03B13)

The system generates a receipt record.

Receipts Detail (F03B14)

The system generates a detail record that pays the invoice from which the deduction was generated.

Regardless of the type input code that you use, if you specify a deduction amount and reason code, the system creates a deduction record.

After you enter receipts, you must post them. When you post payments with deductions, in addition to updating the bank account and AR trade account, the system debits the deduction suspense account that is set up for the AAI item RN. The system also creates records in the A/R Deduction Management table (F03B40). The deduction record enables you to research and resolve the reason for the deduction at a later time.

Note: To change the deduction amount or void the payment after it is posted, you must first reverse or void the deduction record in the F03B40 table using the deduction program. You can, however, revise other nondeductible payment detail records.