Understanding Deduction Activity Codes

When you receive payment from customers, a customer might reduce the amount of a payment for unknown reasons, or for reasons that might be associated with a specific invoice or a group of invoices, such as damaged goods. The amount by which a customer's payment is reduced is known as a deduction.

Before researching and resolving a deduction, you can set up additional activity codes to specify which type of activity the system uses to resolve the deduction.

The JD Edwards EnterpriseOne Accounts Receivable system provides default activity codes. However, you might set up additional codes that meet organization-specific needs. For example, you can set up additional activity codes for write-offs to correspond with specific write-off reason codes.

You can use activity codes to:

• Provide an audit trail for research tasks.

• Resolve the deduction.

The system uses codes to assign an action to the deduction. Each action creates a record in the F03B41 table.

The system stores deduction activity codes in the F03B42.