Options for Posted and Non-Posted Activities using Transaction Types

Use the Open Receivable and Post to GL options on the transaction type to manage posted and non-posted activities on transactions.

If the Open Receivable option is enabled, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on-account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.

If the Post to GL option is enabled, Receivables posts transactions with this transaction type to general ledger. If this option isn't enabled, then no accounting is generated for transactions with this transaction type.

Considerations for defining transaction types include:

• Void Transaction Type

• Updates to Customer Accounts and Aging

• Updates to Accounting Only

Void Transaction Type

You can void a debit memo, credit memo, on-account credit, or invoice by defining a Void transaction type and assigning it to the transaction. To define a Void transaction type, set the Open Receivable and Post to GL options to No. You can void a transaction by changing the transaction type to Void provided:

• No activity exists against the transaction.

• Transaction hasn't posted to general ledger.

This activity isn't included in the Review Customer Account Details page since the activity doesn't modify the customer balance.

Updates to Customer Accounts and Aging

If you set the Open Receivable option to Yes and the Post to GL option to No, Receivables updates customer accounts with the transaction activity of transactions assigned this transaction type. This has no effect on accounting.

Use transaction types with these settings during your initial implementation, where the transaction amount is included in the general ledger beginning balance for the receivable account, but activity still needs to be aged and payment collected against it. All related activities against the transaction, such as credit memos, payments, and adjustments, are accounted as affecting the customer balance. You can review these activities on the Review Customer Account Details page.

Updates to Accounting Only

If you set the Open Receivable option to No and Post to GL option to Yes, Receivables updates accounting without any impact on the customer balance.

Use transaction types with these settings when you want to adjust accounting activity, such as when you rebill a customer in order to reclassify the general ledger account. A credit memo and invoice with the Open Receivable option set to No are created where the credit memo reverses the general ledger account of the original invoice, and the invoice creates accounting with the new general ledger account. This activity is transparent to the customer because the original invoice is used for the cash application when payment is received.

This activity isn't included in the Review Customer Account Details page since the activity doesn't modify the customer balance.

Transactions with the Open Receivable option set to No appear in the Other Accounting section of the Receivables to General Ledger Reconciliation Report, even though transactions post to Receivables accounts assigned the financial category of Accounts Receivable.