1. Implementing Receivables Credit to Cash
  2. Ledger and Legal Entity Document Sequencing in Receivables

Ledger and Legal Entity Document Sequencing in Receivables

You can set up your primary ledger to use document sequencing in Receivables at the ledger level or legal entity level.

If you enable document sequencing at the legal entity level, then if you have more than one legal entity assigned to the same ledger, you can assign separate document sequences to Receivables transactions, adjustments, and receipts belonging to each legal entity.

Legal entity level document sequencing helps you conform to local and governmental authority requirements, while still being able to organize multiple legal entities under the same primary ledger.

Review these guidelines for document sequencing in Receivables:

  • Document Sequencing in Receivables

  • Receivables Document Categories

  • Chronological Document Sequencing

  • Chronological Document Sequencing and Manual Transactions

  • Chronological Document Sequencing and AutoInvoice

Document Sequencing in Receivables

To use document sequencing in Receivables, in the Sequencing section of the Specify Options page of your primary ledger, perform one or both of these tasks:

  1. Set the Sequencing By option to Ledger or Legal Entity.

  2. Optionally enable the Enforce Document Sequencing option for Receivables.

If you perform step 1 and step 2, then document sequencing is always used in the ledger or all legal entities assigned to the ledger. You must assign a document sequence to every document category generated by Receivables events.

If you perform step 1 but not step 2, then you can optionally assign document sequences to the Receivables document categories that meet your business requirements. For example, you can use sequential numbering for receipt processing only and not for transactions.

Receivables Document Categories

If the primary ledger is enabled for document sequencing at the legal entity level (Sequencing By option set to Legal Entity), then Receivables creates a document category for each of these Receivables events in all legal entities assigned to the ledger:

  • Invoice transaction type

  • Credit memo transaction type

  • Debit memo transaction type

  • Bills receivable transaction type

  • Standard receipt

  • Adjustment

To assign a document sequence to a document category:

  1. Navigate to the Manage Document Sequence Categories page.

  2. Search for the document categories that you want.

    You can use the Category Code field to limit your search by entering, for example, Invoice or Receipt.

  3. Review the search results to find the document category that you want

  4. If necessary, update the category name according to your requirements.

  5. Save your changes.

  6. Navigate to the Manage Receivables Document Sequences page.

  7. Search for the document sequence name that you want, or create a new document sequence.

  8. In the Search Results section, update or complete the document sequence setup according to your requirements.

  9. In the Assignments section, select the document category to assign to this document sequence.

  10. Save your changes.

For each Receivables event, the document sequence number is generated when the following related action takes place:

  • Transactions: At the time of either saving or completing the transaction, depending on the setting of the Receivables system option Document Number Generation Level for the applicable business units.

  • Adjustments: When the adjustment is submitted.

  • Receipts: When the receipt is submitted.

  • Bills Receivable: When the bill receivable is completed.

These rules apply to Receivables document sequencing:

  • Document sequence date is the accounting date (not, for example, the transaction date or receipt date).

    Note: If a bill receivable requires drawee acceptance, then Receivables uses the transaction date instead of the accounting date to assign the document number. This is because a bills receivable document number is generated when the bill is completed, not accepted.

  • You can't change the legal entity on any transaction that has a document sequence number.

  • By default, you can't delete any transaction or receipt that has a document sequence number. If the Receivables system option Allow payment deletion is enabled, then you can delete receipts and bills receivable transactions only for the applicable business units.

Chronological Document Sequencing

Document sequencing uses the accounting date as the document sequence date. To help ensure reliable document sequencing for your transactions, you can enforce the sequencing of document numbers in chronological order.

Note: Chronological document sequencing applies to invoice, credit memo and debit memo transactions only, either entered manually or imported using AutoInvoice. It doesn't apply to receipts, adjustments, or bills receivable.

To enable chronological document sequencing on Receivables transactions, in the Sequencing section of the Specify Options page of your primary ledger perform these three tasks:

  1. Set the Sequencing By option to Ledger or Legal Entity.

  2. Enable the Enforce Document Sequencing option for Receivables.

  3. Enable the Enforce Chronological Order on Document Date option.

You must perform all three steps for chronological document sequencing. Enabling the Enforce Chronological Order on Document Date option enforces the correlation between the document sequence accounting date and the transaction accounting date. This prevents Receivables from creating a transaction with an accounting date earlier than the accounting date of the last sequenced document within the same document sequence.

For example, you create an invoice with an accounting date of 01-Jan-2014. This invoice is assigned the document number 100. The next invoice you create is assigned the document number 101 provided the accounting date of the invoice is 01-Jan-2014 or later. If the accounting date is earlier than 01-Jan-2014, then Receivables doesn't create the transaction.

Chronological Document Sequencing and Manual Transactions

If you're using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then you can enforce chronological document sequencing on transactions created manually in your transaction type setup.

To enforce chronological document sequencing on transactions created manually:

  1. Navigate to the Create or Edit Transaction Type page.

  2. Enable the No future dates with chronological document sequencing option.

  3. Complete the transaction type setup according to your requirements.

  4. Assign this transaction type to the applicable transactions.

When you use this transaction type with transactions you create manually, then Receivables won't create the transaction if both the transaction and accounting dates are in the future.

Chronological Document Sequencing and AutoInvoice

If you're using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then for AutoInvoice you must set the Receivables system option Accounting Dates Out of Order. Setting this option determines how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

In the Receivables System Options page: Billing and Revenue tab: AutoInvoice section, set the Accounting Dates Out of Order field to Reject or Adjust:

  • Reject: If the transaction accounting date is out of order within the document sequence, reject the transaction and transfer it to the error table.

  • Adjust: If the transaction accounting date is out of order within the document sequence, adjust the accounting date to conform to the document sequence accounting date.

Related Topics