Guidelines for Receivables System Option Settings

Certain Receivables system option settings have critical implications for the way Receivables functions for a given business unit. You may need to do some advance planning before deciding how to set certain Receivables system options.

Considerations for Receivables system option settings include:

• Salespersons

• Header Level Rounding

• Allow Change to Printed Transactions

• Discounts

Salespersons

If you intend to use revenue accounting, you must enable the Require salesperson Receivables system option. Revenue accounting requires that you assign sales credits to all transactions that can be adjusted for either revenue or sales credits.

If you enable the Require salesperson Receivables system option, use the Sales Credit Percent Limit field to limit the percentage of revenue plus non-revenue sales credit that a salesperson can have on any transaction line.

If you don't enter a value in the Sales Credit Percent Limit field, then no sales credit limit validation is performed during revenue accounting.

Header Level Rounding

Depending on the legal requirements of your home country, you may need to round amounts at the transaction header level for the receivable account, and then account for and post the difference in a separate account between this rounded amount and the sum of the rounded line amounts for the respective revenue accounts. To do this, enable the Use header level rounding option and define a Header Rounding Account.

The rounding difference between the header level and line level rounding is assigned to the Header Rounding Account.

If you enable the Use header level rounding option, then Receivables displays a rounding distribution line for all transactions, regardless of currency. If the transaction is in the ledger currency, then the amount of this line is zero.

If you don't enable the Use header level rounding option, Receivables rounds amounts at the line level and posts any rounding difference to the receivable account.

Caution: Once you enable Header Level Rounding and save the Receivables system options record, you can't disable the feature for the applicable business unit.

Allow Change to Printed Transactions

To allow updates to transactions that have been printed, enable the Allow change to printed transactions option. This option also determines whether you can update a customer address when printed, posted, or applied transactions are assigned to that address.

Note: You can't update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, accounting, and assigning the transaction to a balance forward bill.

Discounts

To allow Receivables to accept unearned discounts, enable the Allow unearned discounts option. Unearned discounts are discounts a customer takes after the discount period passes. The Receivables system options record is the only place that determines whether you can accept unearned discounts for the given business unit.

To allow discounts to be taken for partial payments against open debit items, enable the Discount on partial payment option. A partial payment is any payment less than the remaining amount due. If this option is enabled, you can still decide to disallow discounts on partial payments at the transaction level when defining payment terms.

If you never allow discounts on partial payments, then don't enable the Discount on partial payment option.