Understanding Deductions Associated with Receipts

When a customer reduces the amount of their payment, you can enter the amount by which the customer's payment is reduced as a deduction. Many times, a customer does not include a reason for the reduction amount. In this case, you can apply the receipt accordingly and create a deduction in the JD Edwards EnterpriseOne Accounts Receivable system for the amount that the customer did not pay.

When you enter a deduction associated with a receipt, the system does this:

• Applies the amount of the receipt and the deduction to the associated invoice, or closes the invoice if the deduction equals the total amount.

  If the invoice is closed, the system assigns a pay status of P to it. This reduces the original invoice's open balance.

• Creates a posted R5 document in the F03B11 table for the amount of the deduction.

  The R5 document is a temporary placeholder that indicates that an open balance remains for the customer. It is displayed on the Work with Customer Ledger Inquiry form. This document contains an audit trail to the original invoice.

• Generates a deduction receipt in the F03B13 table.

  The system also creates a corresponding receipt detail record in the F03B14 table with one detail line and the amount of the deduction.

To update the F03B40 table, you must post the receipt batch so that you can review and resolve the deductions at a later time.