Understanding Insufficient Funds Designations

When the payor's bank account does not have sufficient funds available to pay the invoices that they have specified, you can designate a receipt as insufficient funds and reopen the invoice or group of invoices. The steps to designate a receipt as insufficient are the same regardless of whether the receipt is posted or unposted. When you designate a receipt as insufficient funds, the system does this:

• Indicates the insufficient fund status of the record in the F03B13 table. When you analyze payment trends of customers or tenants, this indication helps you to distinguish insufficient funds receipts from reversals for entry errors and so on.

  If the receipt is not posted when it is designated as insufficient funds, the system also marks the posted status of this record as D.

• Restores the open amount of the invoice or group of invoices to which the receipt applied.

• Changes the pay status of the invoices from paid (P) to approved (A).

• Creates a new record in the Batch Control Records table (F0011), if the receipt is posted.

• Creates a new record in the F03B14 table with a matching document type RV, if the receipt is posted.

  If the receipt is not posted when it is designated as insufficient funds, the system deletes the original record in the F03B14 table.

You must post the new batch to update the general ledger accounts with reversing information. When you post a receipt that is designated as insufficient funds, the system creates in the F0911 table a record with the document type RV.