6Manage Bills Receivable

This chapter contains the following:

Create and Process Bills Receivable

You can apply any class of transaction to a bill receivable. You can also apply a bill receivable that has the status Unpaid to a new bill receivable.

By default, you can only apply transactions that belong to the drawee and its related customers. If the Receivables system option Allow payment of unrelated transactions is enabled, then you can apply transactions of unrelated customers to the bill.

You can apply full or partial transaction amounts to a bill. To apply a partial amount, update the Applied Amount field with the amount that you want. The unapplied portion of a transaction remains an open item.

If you designated an amount for the bill receivable, you must apply transactions to equal the designated amount. You can't complete a bill receivable with a designated amount until the total transaction application amounts equal this amount.

Note: Transactions applied to a bill receivable follow the natural application rule, even though the individual transactions assigned to the bill may allow for overapplication.

You can only apply transactions that have the same currency as the bill receivable, and all transactions applied to the bill must share the same conversion rate. The bill inherits the conversion rate from the transactions assigned to it when you complete the bill. If you want to apply transactions with a different currency, you must remove all transactions currently applied to the bill and change the currency of the bill.

Guidelines for Batching Transactions for Bills Receivable

Use the Create Bills Receivable Batch program to create a batch of bills receivable from customer transactions. Use the program parameters to specify the desired options for the batch and to limit the selection of transactions to batch for bills receivable.

Transactions eligible for inclusion in a bills receivable batch require these settings:

  • Paying customer defined as drawee.

  • Bills receivable creation receipt method.

  • All transactions must have the same currency and conversion rate.

In addition to preparing eligible transactions, review these setups and guidelines before running the Create Bills Receivable Batch program to create bills receivable from transactions:

  • Bills Receivable Transaction Sources

  • Bills Receivable Dates

  • Bills Receivable Creation Receipt Methods

Bills Receivable Transaction Sources

Transaction sources for bills receivable require these settings:

  • Source type of Manual.

  • Automatic batch numbering option enabled.

  • Value entered in the Last Number field.

  • Transaction source is both valid and active on the issue date of the bills receivable created by the program.

If you are using a bills receivable creation receipt method that has the Inherit Transaction Number option enabled, automatic numbering of bills receivable occurs in this way:

  • If the program creates a bill receivable from one transaction only, the bill receivable number inherits the transaction number, unless the transaction number is already used by another transaction with the same transaction source as the bill receivable.

  • If the transaction number of a bill receivable created from one transaction only is already used by another transaction with the same transaction source as the bill receivable, or if the program creates a bill receivable from more than one transaction, the program uses the automatic transaction numbering settings on the transaction source.

Bills Receivable Dates

Review the guidelines related to entering and using these bills receivable dates: accounting date, issue date, and maturity date.

This table describes the guidelines to follow for entering dates in bills receivable batches.

Date Guideline

Accounting Date

Enter an accounting date that belongs to an open or future period. Bills receivable that don't require customer acceptance can inherit the accounting date of the batch.

For bills receivable that require customer acceptance, the accounting date is derived from the acceptance accounting date that you enter when the customer accepts the bill.

Issue Date

The issue date is the date that the bill receivable is created. You must enter an issue date that is:

  • On or after the system date.

  • Valid for the date of the bills receivable creation receipt method assigned to transactions.

  • Valid for the bills receivable transaction type.

Maturity Date

The maturity date is the date when full payment is due on the bill receivable. The maturity date can't be earlier than the issue date. If you don't enter a date in this parameter, Receivables derives the maturity date from the bills receivable creation receipt method.

Bills Receivable Creation Receipt Methods

The bills receivable creation receipt method assigns important values to bills receivable, and determines how transactions are grouped into bills receivable.

This table describes the guidelines to follow for working with bills receivable creation receipt methods in bills receivable batches.

Setting Guideline

Bills Receivable Transaction Types

Because transaction types are set-enabled, the Transaction Type parameter of the Create Bills Receivable Batch program only makes available for selection the bills receivable transaction types:

  • Belonging to the reference set of the business unit selected for the program run.

  • Assigned to the bills receivable creation receipt method of the program run, if one is selected.

If you want to use transactions belonging to more business units, then set up and assign to transactions the necessary number of bills receivable creation receipt methods and bills receivable transaction types to include all reference sets with all the applicable business units.

Number of Bills Receivable Rule

The value of the Number of Bills Receivable Rule field determines how to group transactions into bills receivable:

  • If the rule is One per Customer or One per Customer Due Date, then at least one customer must contain an active drawee site defined as Primary. These rules cannot group transactions from different customer sites with no site defined as Primary.

  • If the rule is One per Invoice, One per Payment Schedule, One per Site, or One per Site Due Date, then a primary drawee site is not required, but the customer bill-to site must also be a drawee site. These rules cannot group transactions if there is no bill-to site defined as a drawee site.

How Bills Receivable Are Numbered in a Batch

The numbering of bills receivable in a batch depends on the settings of the bills receivable creation receipt method and the bills receivable transaction source.

If only one transaction is assigned to the bill receivable created by the batch, then the batch process uses the transaction number as the bill receivable number provided both of these conditions apply:

  • Bills receivable inherit transaction numbers option is enabled on the bills receivable creation receipt method assigned to the transaction.

  • Transaction number is not already used by another transaction with the same transaction source as the bill receivable.

If the Bills receivable inherit transaction numbers option is not enabled, or if the bill contains more than one transaction, then the batch process numbers bills receivable according to the transaction source assigned to the batch.

Ordinarily, a bills receivable transaction source has the Automatic transaction numbering option enabled. If you are using document sequences and the Copy document number to transaction number option is enabled, then Receivables uses the document sequence number assigned to the bill as the bill receivable number.

Use the Complete button to complete bills receivable transactions.

To complete a bill receivable, you must:

  • Enter all required information for the bill.

  • Apply transactions to the bill. Transactions must have the same currency as the bill, and all transactions must have the same conversion rate.

  • Apply transactions to equal the designated amount of the bill, if applicable.

If the bill receivable requires drawee acceptance, completing the bill changes its status to Pending Acceptance. While a bill receivable has the status of Pending Acceptance, you can't perform any other activity on the transactions belonging to the bill, such as applying receipts, credit memos, or adjustments. When you receive written acceptance from the customer, you can accept the bill receivable.

If the bill receivable doesn't require drawee acceptance, completing the bill changes its status to Pending Remittance and these actions are performed:

  • Record the first accounting for the bill.

  • Reduce the amount due on the applied transactions.

  • Assign the bill receivable to the outstanding balance of the customer drawee.

If you are using document sequencing, Receivables ignores the Document Number Generation Level Receivables system option and generates the document number when you complete the bill receivable. If the Copy Document Number to Transaction Number option on the bills receivable transaction source is enabled, then the document number and bill receivable number are the same.

When you complete a bill receivable that requires drawee acceptance, the bill is assigned the status Pending Acceptance with no accounting date specified. A bill receivable requires drawee acceptance if the Signed option is enabled.

After the customer drawee accepts the bill receivable, use the Accept action to record the acceptance. In the Accept window:

  • Enter in the Date field the date that the customer drawee accepted the bill receivable. This date must be after the bill receivable issue date.

    The date that you enter becomes the date that the transactions are applied to the bill.

  • If necessary, in the Accounting Date field, update the accounting date.

    This accounting date becomes both the accounting date for the bill receivable and the acceptance accounting date for the transactions applied to the bill. Receivables calculates the acceptance accounting date according to the open accounting period rules for the applied transactions.

After you accept the bill:

  • Receivables records the first accounting for the bill.

  • The applications reduce the amounts due on the related transactions.

  • The bill receivable appears in the outstanding balance of the customer drawee.

  • The bill is updated with the status Pending Remittance.

FAQs for Create and Process Bills Receivable

A bill receivable is a separate transaction in Receivables. A bill receivable is a document that a customer formally agrees to pay at some future date (the maturity date).

The bill receivable document effectively replaces, for the related amount, the open debit items that are applied to the bill. Bills receivable are often remitted for collection and used to secure short term funding.

What's a drawee?

A drawee is a customer who accepts funding in the form of a bill receivable with the intention of repaying the party that issues the bill when it matures.

If the bills receivable transaction source doesn't specify automatic transaction numbering or copying of the document sequence number to the bill number, or if you are not using document sequencing, then you must enter a number for the bill receivable. Otherwise, the bill receivable is numbered when you save.

If you are using manual document sequencing, then you must enter a unique document number.

This becomes the maximum amount for the bill. The total amount of the transactions applied to the bill must equal the designated maximum amount in order to complete the bill.

If you don't enter a maximum amount, the amount of the bill is calculated as the sum of the applied transaction amounts when you complete the bill.

Because the bill is a signed bill that requires drawee acceptance. Once the bill receivable is accepted, Receivables assigns an acceptance accounting date to the bill.

Yes, up until the bill is completed or, for bills that require acceptance, until the bill is accepted.

Why can't I create bills receivable from transactions?

Because you have to assign transactions both a bills receivable creation receipt method and a paying customer defined as a drawee. Only transactions with these assignments are eligible for bills receivable batches.

Yes, but you can only incomplete a bill receivable under certain conditions.

All of these conditions must be true:

  • The bill receivable is a signed bill with the status Pending Acceptance, or an unsigned or drawee-issued bill with the status Pending Remittance.

  • The bill has never been posted to general ledger.

  • There are no payments against the bill.

After you incomplete the bill you can delete it.

You can also incomplete a bill receivable to update details of the bill and complete the bill again.

Remit Bills Receivable

Remit bills receivable to your remittance bank or other financial institution to initiate the collection process from your customers. Before remitting to a bank, you must create, review, and approve the bills receivable in a remittance batch.

You can create these types of bills receivable remittances:

  • Standard remittances: You remit bills receivable to your bank, and the bank manages the collection process. On the bill receivable maturity date, the bank collects payment in full from your customers and transfers the funds directly to your bank account, less any fees or other charges. With standard remittances, you bear the financial risk of customer default.

  • Factored remittances: You remit bills receivable as collateral in return for cash advances or loans from your bank. Receivables creates a receipt for the bill receivable upon remittance. If the bill receivable is factored with recourse, you bear the financial risk of customer default, and Receivables records a short term debt for the default risk. If the bill receivable is factored without recourse, the bank assumes the risk of customer default, and Receivables closes the bill upon creation of the remittance.

When you create a bills receivable remittance, the receipt class determines the remittance processes, and the bills receivable remittance receipt method assigned to the receipt class determines the accounting for the bills receivable. Receivables selects qualifying bills receivable for remittance and groups them according to the remittance bank that is assigned to each bill. You can specify additional selection criteria to limit the bills receivable that are selected for remittance.

Create a bills receivable remittance batch from eligible bills receivable transactions. During batch creation, Receivables uses the currency and remittance bank information to select bills receivable. You can specify additional selection criteria to limit the bills that are selected for remittance using the Select and Add: Bills Receivable window.

All bills receivable with the status Pending Remittance are eligible for selection. You can also include bills receivable with the status Unpaid if the Include Unpaid Status option is enabled.

Based on the remittance bank information, Receivables selects the following bills receivable for inclusion in the batch:

  • Bills receivable with the same remittance bank account as the remittance batch.

  • Bills receivable with no remittance bank account.

  • Bills receivable with a different bank account from that of the remittance batch, if the Ignore Override option is not enabled.

Note: You can change the batch remittance bank information after the remittance batch is created. However, you will receive a warning if the remittance bank of any bill receivable in the batch is different from the new remittance bank of the batch, unless the Override bank option is enabled on that remittance bank account.

After you have entered information for the batch and your selection criteria, use the Save button to generate the bills receivable remittance batch. Receivables validates the status, currency, and remittance bank information of the bills receivable included in the batch. Receivables then selects bills receivable in maturity date order, starting with the earliest maturity date.

Once a bill receivable is selected for a remittance batch, you can't apply customer payments or other activities to the bill, or select the bill for another remittance batch.

After creating the remittance batch, use the Mange Bills Receivable Remittance Batches page to review, update, and approve the batch.

During the course of the bills receivable remittance process, Receivables both creates and clears receipts for bills receivable.

Create Receipts for Bills Receivable Remittances

Receivables creates a receipt for each bill receivable that is remitted to the bank. The bills receivable remittance receipt method for the remittance batch determines when a receipt is created. You create a receipt to record the accounting event of the expected funds transfer.

The receipt creation process differs for standard and factored remittances:

  • Standard remittances: Run the Close Matured Bills Receivable program to create receipts and apply them to bills receivable, either at the maturity date plus the number of collection days or at the remittance date plus the number of collection days, whichever is later. Receivables updates the status of the bill receivable to Closed when the receipt is applied to the bill receivable.

  • Factored remittances: Receivables creates a receipt when a remittance is approved. For bills receivable that are factored with recourse, the receipt is applied to short term debt and the status of the bill is updated to Remitted. For bills receivable factored without recourse, the receipt is applied to the bill receivable upon remittance and the status of the bill is updated to Closed.

Clear Receipts for Bills Receivable Remittances

The clearing method of the bills receivable receipt class belonging to the bills receivable remittance receipt method determines when Receivables clears receipts and recognizes cash in the remittance process. You define the clearing method, number of clearing days and risk elimination days when you set up the bills receivable remittance receipt class and method.

Select one of these clearing methods:

  • Directly: Receivables clears the receipt upon creation, and recognizes cash on the receipt date.

  • Automatic Clearing: Run the Clear Receipts Automatically program to clear receipts on the receipt dates plus the number of clearing days. For standard remittances, the receipt date is either the maturity date plus the number of collection days or the remittance date plus the number of collection days, whichever is later. For factored remittances, the receipt date is simply the remittance date.

  • By Matching: Use Cash Management to clear the receipt and reconcile cash to your bank statements.

Use the Close Matured Bills Receivable process and report to create and apply receipts for standard remitted bills receivable, and to apply receipts and eliminate risk on bills receivable factored with recourse. The corresponding report lists the adjustments to each bill receivable and shows all receipts that were cleared by the program run.

Process Tasks

You can run the Close Matured Bills Receivable process to accomplish a number of different tasks in relation to bills receivable remittances.

These tasks are:

  • Create the receipt on the maturity date for standard remittances.

  • Create the receipt when the remittance is approved for factored remittances.

  • Unapply the receipt from short term debt and apply it to the bill receivable at the maturity date plus risk elimination days for remittances factored with recourse.

  • Update the bill receivable status to Matured Pending Risk Elimination at the maturity date plus risk elimination days, and update the bill status to Closed for eliminating risk on bills receivable factored with recourse.

For standard remitted bills receivable, Receivables both creates the receipt and applies it to the bill receivable. The apply date is the same as the receipt date. Receivables normally performs these operations on the bill maturity date. If the bill was remitted with insufficient time for the bank to collect the funds from the drawee by the maturity date, then Receivables performs these operations on the remittance date plus the number of remittance bank collection days.

You can clear receipts for standard remitted bills receivable manually, or use the Clear Receipts Automatically process to clear receipts that have a clearance method of Automatic Clearing.

For bills receivable factored with recourse, Receivables applies receipts created at the time of remittance to bills receivable and eliminates the risk on each bill. The apply date is the bill receivable maturity date plus the number of risk elimination days.

Accounting Date Parameter

Enter the accounting date to use for the transactions generated by the process and report. You can enter any date in an open accounting period.

For standard remittances, Receivables uses the accounting date you enter unless the date is not in an open period, in which case it will use the accounting date on the bill receivable. If the accounting date on the bill is also not in an open period, then it uses the first day of the next available open period.

For factored remittances, Receivables uses the accounting date you enter unless the date is not in an open period, in which case it will use the accounting date entered for the remittance. If the accounting date entered for the remittance is also not in an open period, then it uses the first day of the next available open period.

FAQs for Remit Bills Receivable

Once you have reviewed the bills receivable remittance batch and are satisfied with its content. Approving the remittance batch initiates the accounting event for the specific type of bills receivable remittance. Depending on the remittance method, the status of the bills receivable is updated from Pending Remittance to either Standard Remitted or Factored Remitted.

You can deselect the bill receivable from the remittance batch and apply the receipt directly to the bill receivable.

Yes, if the receipts were applied to the bills receivable and not to short term debt. You can reverse or unapply receipts that were created for payments received from customer drawees or receipts that were created from the remittance process.

For bills receivable factored with recourse, receipts are applied to short term debt before the bill maturity date plus risk elimination days. For receipts applied to short term debt, use the Recall action to recall the bill receivable and reverse these receipt applications.

When you reverse or unapply a receipt for a bill receivable, Receivables creates reversal journal entries for the receipt application with either of these results:

  • If the receipt is reversed before the maturity date, the status of the bill receivable is updated to Pending Remittance.

  • If the receipt is reversed after the maturity date, the status of the bill receivable is updated to Unpaid.

Update Bills Receivable

During the life cycle of a completed bill receivable, the status of the bill changes over time. Some of these changes are necessary and normal, while others depend on specific events particular to a given bill.

This table lists each bills receivable status and its meaning.

Status Meaning

Pending Acceptance

The bill was completed, but requires acceptance by the customer drawee.

Pending Remittance

The bill was completed, and, if necessary, accepted, and is ready for remittance.

Remitted

The bill was remitted to the bank for collection on the maturity date.

Factored

The bill was remitted to the bank for collection and an advance given for the bill amount.

Matured Pending Risk Elimination

A bill factored with recourse has reached the maturity date but is still open to risk of default.

Unpaid

Payment for the bill was not received on the maturity date.

Protested

The customer drawee protests a bill in the status Unpaid.

Canceled

The bill is canceled and the open debits returned to the original transactions.

Closed

A standard bill was paid, or a factored bill had its risk eliminated.

Create factored bills receivable remittances to remit bills receivable as collateral in return for cash advances or loans from your bank.

For bills receivable factored with recourse, you bear the financial risk of customer default. When you create a bill receivable factored with recourse, Receivables records a short term debt for the default risk. The bills receivable remittance receipt method assigns the number of risk elimination days to the bill. The risk elimination days are the number of days after the bill receivable maturity date that you can clear short term debt on your factored bills receivable.

Receivables applies receipts created at the time of remittance to bills receivable and eliminates the risk on each bill. The apply date is the bill receivable maturity date plus the number of risk elimination days.

You can use the Close Matured Bills Receivable program to apply receipts and eliminate risk on bills receivable factored with recourse. The program performs these tasks:

  • Unapplies the receipt from short term debt.

  • Applies the receipt to the factored bill receivable at the maturity date plus risk elimination days. The apply date is the bill receivable maturity date plus the number of risk elimination days.

  • Eliminates the risk on the factored bill receivable.

You can also use the Eliminate Risk action to manually eliminate risk on a bill receivable. You can do this, for example, if payment is received from the customer during the risk elimination period.

If a customer is at risk of not paying the bill receivable after risk has been eliminated, you can use the Reestablish Risk action to reestablish risk on the bill. When you reestablish risk on a Closed bill receivable that was factored with recourse, Receivables unapplies the receipt that was created when the bill was factored and applies the receipt to short term debt. The status of the bill is updated to Matured Pending Risk Elimination.

On the bill receivable maturity date, the drawee is expected to pay the bill. If payment is not received, you should mark the bill as Unpaid.

You can mark a bill receivable as Unpaid under the following statuses and with the related conditions:

  • Pending Remittance, and the bill receivable has not been selected for remittance, placed on hold, or reserved by another bill receivable pending acceptance.

  • Standard Remitted, and the bill receivable has matured.

  • Matured Pending Risk Elimination.

  • Closed, and the bill receivable has been matured as well as paid by one receipt.

  • Protested.

When you mark a bill receivable as Unpaid, the status of the bill is updated to Unpaid and the open balance is recorded as a debit to Unpaid Bills Receivable.

Receivables performs these additional actions depending upon the previous status of the bill:

  • If the bill is Matured Pending Risk Elimination, Receivables reverses the receipt created when the bill was factored with recourse.

  • If the bill is Remitted or Factored with Recourse and then Closed as Unpaid, Receivables reverses the receipt created as a result of the remittance.

You can later remove a bill receivable from the Unpaid status by using the Restate action. When you restate a bill receivable, Receivables reclassifies the bill from Unpaid to Pending Remittance.

If necessary, you can recall a remitted or factored bill receivable from the remittance batch. You may need to recall a bill from remittance if, for example, there was an error in the remittance process or you received payment for the bill from the customer.

Select the bill receivable that you want and use the Recall action to enter the necessary information. The recall date and accounting date that you enter must be on or after the remittance date.

When you submit the recall:

  • If the bill receivable is recalled before the maturity date, the status of the bill receivable is updated to Pending Remittance.

  • If the bill receivable is recalled after the maturity date, the status of the bill receivable is updated to Unpaid.

If you are recalling a bill because payment was received, then after the recall you can apply the receipt directly to the bill receivable.

These examples illustrate the journal entries that Receivables creates for each bills receivable activity.

Bills Receivable

When you complete a bill receivable, or accept a bill receivable if it requires acceptance, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Bills Receivable

Receivables

If you cancel a bill receivable that is not Pending Acceptance, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Receivable

  • Bills Receivable (if the bill has the status Pending Remittance)

  • Unpaid Bills Receivable (if the bill has the status Unpaid)

Remitted Bills Receivable

When you remit a bill receivable with a standard remittance method, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Remitted Bills Receivable

  • Bills Receivable (if the bill had the status Pending Remittance before it was remitted)

  • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

On maturity (or maturity plus the number of collection days, if the bill is remitted on or after maturity), Receivables creates this journal entry on the receipt created:

Debit Account Credit Account
  • Remittance (if the clearance method used is By Automatic Clearing or By Matching)

  • Cash (if the clearance method used is Direct)

Remitted Bills Receivable

Factored Bills Receivable with Recourse

When you factor a bill receivable with recourse, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Factored Bills Receivable

  • Bills Receivable (if the bill had the status Pending Remittance before it was remitted)

  • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

Receivables creates this journal entry on the receipt created when factoring with recourse:

Debit Account Credit Account
  • Remittance (if the clearance method used is By Automatic Clearing or By Matching)

  • Cash (if the clearance method used is Direct)

Short Term Debt

When you eliminate the risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:

Debit Account Credit Account

Short Term Debt

Factored Bills Receivable

When you reestablish risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:

Debit Account Credit Account

Factored Bills Receivable

Short Term Debt

Factored Bills Receivable without Recourse

When you factor a bill receivable without recourse, Receivables creates this journal entry on the receipt created:

Debit Account Credit Account
  • Remittance (if the clearance method used is By Automatic Clearing or By Matching)

  • Cash (if the clearance method used is Direct)

  • Bills Receivable (if the bill had the status Pending Remittance before it was remitted)

  • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

Unpaid Bills Receivable

When you mark as unpaid a bill receivable with the status Pending Remittance, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Unpaid Bills Receivable

Bills Receivable

When you mark as unpaid a bill receivable with the status Standard Remitted, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Unpaid Bills Receivable

Remitted Bills Receivable

When you mark as unpaid a bill receivable with the status Closed that was previously standard remitted:

  • Receivables creates this journal entry on the bill receivable:

    Debit Account Credit Account

    Unpaid Bills Receivable

    Remitted Bills Receivable

  • The accounting entries are reversed on the receipt that was applied to the bill receivable:

    Debit Account Credit Account

    Remitted Bills Receivable

    • Cash (if the receipt was cleared)

    • Remittance (if the receipt wasn't cleared)

When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored with recourse:

  • Receivables creates this journal entry on the bill receivable:

    Debit Account Credit Account

    Unpaid Bills Receivable

    Factored Bills Receivable

  • Receivables creates this journal entry on the receipt created when the bill was factored with recourse:

    Debit Account Credit Account
    • Short Term Debt (if the bill was Matured Pending Risk Elimination)

    • Factored Bills Receivable (if the bill was Closed)

    Bills Receivable Funds Recovery

  • Receivables creates this journal entry on the negative miscellaneous receipt created when the bill receivable factored with recourse is marked as unpaid:

    Debit Account Credit Account

    Bills Receivable Funds Recovery

    • Cash (if the original receipt was cleared)

    • Remittance (if the original receipt wasn't cleared)

When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored without recourse:

  • Receivables creates this journal entry on the bill receivable:

    Debit Account Credit Account

    Unpaid Bills Receivable

    • Bills Receivable (if the bill had the status Pending Remittance before it was remitted)

    • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

  • Receivables creates this journal entry on the receipt created when the bill was factored without recourse:

    Debit Account Credit Account
    • Bills Receivable (if the bill had the status Pending Remittance before it was remitted)

    • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

    • Cash (if the receipt was cleared)

    • Remittance (if the receipt wasn't cleared)

When you restate a bill receivable that was previously marked as unpaid, Receivables creates this journal entry on the bill receivable:

Debit Account Credit Account

Bills Receivable

Unpaid Bills Receivable

Recalled Bills Receivable

When you recall a bill receivable that was previously standard remitted or factored:

  • Receivables creates this journal entry on the bill receivable:

    Debit Account Credit Account
    • Bills Receivable (if the bill had the status Pending Remittance before it was remitted

    • Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

    • Remitted Bills Receivable (if the bill was standard remitted)

    • Factored Bills Receivable (if the bill was factored with recourse)

  • Receivables creates this journal entry on the receipt created when the bill was factored:

    Debit Account Credit Account
    • Short Term Debt (if the bill was factored with recourse)

    • Bills Receivable (if the bill was factored without recourse and had the status Pending Remittance before it was remitted)

    • Unpaid Bills Receivable (if the bill was factored without recourse and had the status Unpaid before it was remitted)

    • Remittance (if the clearance method used is By Automatic Clearing or By Matching)

    • Cash (if the clearance method used is Direct)

Transaction and Receipt Applications

When you apply a receipt to a bill receivable, Receivables creates this journal entry on the receipt:

Debit Account Credit Account
  • Cash (if the receipt was cleared)

  • Remittance (if the receipt wasn't cleared)

  • Bills Receivable (if the bill has the status Pending Remittance)

  • Unpaid Bills Receivable (if the bill has the status Unpaid or Protested)

When you apply an on-account credit memo to a bill receivable, Receivables creates this journal entry on the credit memo:

Debit Account Credit Account

Receivable

  • Bills Receivable (if the bill has the status Pending Remittance)

  • Unpaid Bills Receivable (if the bill has the status Unpaid or Protested)

Create intercompany accounting entries whenever a transaction, receipt, or credit memo is applied to a bill receivable with a different company segment.

FAQs for Update Bills Receivable

When you want to return the debt to the transactions that were originally applied to the bill. You typically cancel a bill receivable if it was created in error or if you prefer to apply payments to transactions that were applied to the bill.

Use the Mark as Canceled action to cancel a bill. You can cancel a bill that is Pending Acceptance, Pending Remittance, or Unpaid:

  • If the bill is Pending Acceptance, canceling the bill releases the applied transactions and has no accounting impact.

  • If the bill is Pending Remittance or Unpaid, Receivables unassigns the applied transactions and creates reverse accounting entries.

Place a bill receivable on hold when you want to exclude the bill from remittance while you investigate information about the bill or about the transactions applied to the bill. You can only place bills on hold with the status Pending Remittance or Unpaid. You can later release the bill receivable from hold and make it available again for remittance.

Mark a bill receivable as under protest if the drawee protests a bill receivable with the status Unpaid, for example, because of a disagreement as to the maturity date or of payments submitted. There is no accounting impact on a bill under protest. Once the protest is resolved, you can either mark the bill as Unpaid again or, if applicable, apply a customer receipt to the protested bill.

Reports for Manage Bills Receivable

Overview of the Automatic Bills Receivable Transactions Batch Report

This topic contains summary information about the Automatic Bills Receivable Transactions Batch Report.

Overview

The Automatic Bills Receivable Transactions Batch Report lists the contents of a bills receivable batch.

This image shows output from the Automatic Bills
Receivable Transactions Batch Report.

Key Insights

The report lists the bills receivable created in a batch, or the bills receivable that will be created in a batch submitted in Draft.

Frequently Asked Questions

The following table lists frequently asked questions about the Automatic Bills Receivable Transactions Batch Report.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Receivables Balances

Who uses this report?

Financial Specialist responsible for bills receivable.

When do I use this report?

When you need to review a list of the bills receivable created in a batch, or the bills receivable that will be created in a batch if the Create Bills Receivable Batch process is submitted in Draft.

What can I do with this report?

Set the Batch Mode parameter of the Create Bills Receivable Batch process to Draft.

What type of report is this?

Oracle Business Intelligence Publisher

Automatic Bills Receivable Transactions Batch Report

Use the Automatic Bills Receivable Transactions Batch Report to review the contents of a bills receivable batch. A bills receivable batch contains bills receivable created from customer drawee transactions.

You can run the report in Detail mode or Summary mode. The report lists the bills receivable created in a batch, or the bills receivable that will be created in a batch submitted in Draft. The report is also generated in Detail mode when you run the Create Bills Receivable Batch program.

Selected Report Parameters

Business Unit

The selected business unit for the report.

Batch Name

The name of the bills receivable batch.

Report Version
  • Detail: Listing of the bills receivable in a batch and information about the transactions assigned to each bill receivable.

  • Summary: Listing of the bills receivable in a batch.

Report Output

This table describes the report headings in the output of the Automatic Bills Receivable Transactions Batch Report.

Report Heading Description

Drawee Name

The name of the customer drawee.

Drawee Number

The account number of the customer drawee.

Drawee Site

The site reported on belonging to the customer drawee account.

Payment Method

The bills receivable creation receipt method used to generate bills receivable from transactions.

Grouping Rule

The bills receivable creation receipt method rule used to group transactions into bills receivable.

Maximum

The maximum amount, specified in the bills receivable creation receipt method, that a bill receivable can have.

Minimum

The minimum amount, specified in the bills receivable creation receipt method, that a bill receivable can have.

Lead Days

The number of days before the transaction due date, specified in the bills receivable creation receipt method, that a transaction was eligible to be applied to a bill receivable.

Currency

The ledger currency.

This table describes the column headings in the output of the Automatic Bills Receivable Transactions Batch Report.

Column Heading Description

Bills Receivable Number

The bill receivable number.

Amount

The amount assigned to the bill.

Maturity Date

The date payment is due on the bill receivable.

Drawee Bank Name

The name of the customer drawee bank.

Contact Name

The contact person at the customer drawee bank.

Special Instructions

Any special instructions for processing the bill.

Bills Receivable Transaction Type

The bills receivable transaction type assigned to bills receivable created from transactions by the bills receivable creation receipt method.

Issue Date

The date the bill receivable is created.

Accounting Date

The bill receivable accounting date.

Document Number

The document sequence number assigned to the bill, if applicable.

Transaction Number

The number of the transaction applied to the bill.

Transaction Type

The transaction type of the transaction applied to the bill.

Applied Amount

The amount of the transaction that was applied to the bill.

Transaction Date

The creation date of the transaction applied to the bill.

Transaction Due Date

The due date of the transaction applied to the bill.

Balance Due:

The open balance of the transaction applied to the bill.

Conversion Rate

The conversion rate used for the entered currency of the transaction applied to the bill, if not the ledger currency.

This table describes the row headings in the output of the Automatic Bills Receivable Transactions Batch Report.

Row Heading Description

Total Count of Invoices

The total number of transactions applied to a single bill receivable.

Drawee

The name of the customer drawee for the applicable transactions.

Total

The total amount of the bill receivable amount in the entered currency.

Batch Total in Ledger Currency

The total amount of all bills receivable in the ledger currency for the customer drawee.

Total Count of Bills Receivable

The total number of bills receivable created in the batch.

Batch Total

The total bills receivable amount in the ledger currency for all customer drawees in the batch.

Overview of the Bills Receivable Remittance Batch Management Report

This topic contains summary information about the Bills Receivable Remittance Batch Management Report.

Overview

The Bills Receivable Remittance Batch Management Report provides detailed information about a bills receivable remittance batch.

This image shows output from the Bills Receivable
Remittance Batch Management Report.

Key Insights

Review both remittance batch information and information about each bill receivable in the batch.

Frequently Asked Questions

The following table lists frequently asked questions about the Bills Receivable Remittance Batch Management Report.

FAQ Answer

How do I find this report?

Scheduled Processes - Create Bills Receivable Remittance Batch

Who uses this report?

Financial Specialist responsible for bills receivable.

When do I use this report?

To review a run of the Create Bills Receivable Remittance Batch process.

What can I do with this report?

According to your bills receivable remittance schedule.

What type of report is this?

Oracle Business Intelligence Publisher

Bills Receivable Remittance Batch Management Report

Use the Bills Receivable Remittance Batch Management Report to review a run of the Create Bills Receivable Remittance Batch program. You can run the program either as a scheduled process or from the Create or Edit Bills Receivable Remittance Batch pages.

You can also use the Manage Bills Receivable Remittance Batches page to search for and review remittance batches.

Review this report each time you generate a bills receivable remittance batch.

Selected Report Parameters

Business Unit

The selected business unit for the report.

Remittance Batch Date

The creation date of the remittance batch.

Remittance Batch Accounting Date

The accounting date of the remittance batch.

Approve

Indicate whether to approve the remittance batch when it is generated. Approving the remittance batch initiates the accounting event for the bills receivable remittance.

Currency

The currency for the remittance batch. The program selects bills receivable eligible for remittance with this currency.

Remittance Method
  • Standard: Remit bills receivable to the remittance bank.

  • Factoring: Remit bills receivable as collateral in return for cash advances or loans from the remittance bank. When the remittance batch is approved, create the receipt for the bill receivable.

With Recourse

If you set the Remittance Method parameter to Factoring:

  • Yes: You bear the financial risk of customer default.

  • No: The bill receivable is closed and the remittance bank assumes the risk of customer default.

Receipt Class and Method

The bills receivable remittance receipt class and receipt method to use to create the remittance batch.

Remittance Bank Branch and Bank Account

The remittance bank and account for this remittance batch. The program selects both eligible bills receivable with this remittance bank account, and eligible bills receivable with no remittance bank account assigned.

Include Unpaid Status

Bills receivable with the status Pending Remittance that match the other criteria for this remittance batch are eligible for selection. If you select Yes, then bills receivable with the status Unpaid are also eligible for selection.

Minimum Remittance Total

Only create a remittance batch if the total amount of eligible bills receivable equals or exceeds this amount.

Maximum Remittance Total

Only create a remittance batch if the total amount of eligible bills receivable equals or is less than this amount.

Report Output

The report contains two sections:

  • Bills Receivable Remittance Batch: Information about the remittance batch.

  • Remitted Bills Receivable: Information about each bill receivable in the remittance batch.

Bills Receivable Remittance Batch
Batch Name

The name or number of the remittance batch.

Batch Date

The remittance batch date.

Batch Status
  • Completed Approval

  • Completed Cancellation

  • Completed Creation

  • Completed Deletion

  • Processed

  • Started Approval

  • Started Cancellation

  • Started Creation

  • Started Deletion

  • Waiting Post Batch

Remittance Bank Account Name

The remittance bank account name.

Remittance Method

Standard or Factoring.

Factored With Recourse
  • Yes: Bills receivable factored with recourse.

  • No: Bills receivable other than factored with recourse.

Payment Method

The remittance receipt method used to create the remittance batch.

Accounting Date

The remittance accounting date.

Currency

The remittance currency.

Batch Amount

The total remittance amount in the remittance currency.

Remitted Bills Receivable
Drawee Name

The customer drawee name.

Drawee Account Number

The customer drawee account number.

Drawee Bank

The customer drawee bank.

Bills Receivable Number

The number of the bill receivable.

Maturity Date

The date payment is due on the bill receivable.

Amount

The bill receivable amount.

Row Headings
Totals for Customer [Customer Name]

The total bills receivable remittance amount for each customer.

Number of Bills Receivable Remitted for Customer [Customer Name]

The total number of bills receivable remitted for each customer.

Totals for Currency

The total bills receivable remittance batch amount in the remittance currency.

Number of Bills Receivable Remitted

The total number of bills receivable remitted in the remittance batch.

Print Bills Receivable Program and Report

Use the Print Bills Receivable program to print a batch of bills receivable. You can print bills belonging to a bills receivable batch or a bills receivable remittance batch.

The Print Bills Receivable Report prints details of each bill receivable included in the program run.

Use this report according to your bills receivable transaction processing requirements.

Selected Report Parameters

Bill Receivable Template Name

The print template to use to print bills receivable.

Batch Name

The bills receivable batch from which to print bills receivable.

Remittance Batch

The bills receivable remittance batch from which to print bills receivable.

Report Output

This table describes important column headings in the Print Bills Receivable Program and Report.

Column Heading Description

Drawee Account Number

The account number of the customer drawee.

Original Transaction Amount

The original amount of the transaction.

Bills Receivable Applied Amount

The amount of the transaction that was applied to bills receivable.

This table describes important row headings in the Print Bills Receivable Program and Report.

Row Heading Description

Total Original Transaction Amount

The total of the original amounts of all transactions in the report.

Total Bills Receivable Amount Due

The total open transaction amount that was applied to bills receivable.