Prepare Transactions for Bills Receivable Batches

If you plan to generate bills receivable from transactions using the Create Bills Receivable Batch process, you must prepare transactions to make them eligible for inclusion in a bills receivable batch.

To prepare transactions for bills receivable batches, review and, if necessary, complete tasks related to each of the following activities:

• Prepare Customers

• Assign Bills Receivable Creation Receipt Methods

• Review Eligible Transactions for a Bills Receivable Batch

• Set Up the Customer Drawee Bank Account

Prepare Customers

Prepare customers for bills receivable transactions. You must define customers as drawees, and assign drawees to the applicable transactions.

Perform these two tasks:

1. Define customers as drawees.

   Define bill-to customer sites as drawee sites for bills receivable. You must define a drawee site for each customer account for which you plan to create bills receivable.

   For each applicable site already defined as a bill-to site:

   1. Navigate to the Edit Site page: Site Details tab.

   2. Assign the business purpose Drawee.

   3. Enter the bills receivable reference accounts: bills receivable, unpaid bills receivable, remitted bills receivable, and factored bills receivable.

2. Assign drawees to transactions as the bill-to customer.

   Assign a customer drawee to each applicable transaction as the bill-to customer. The drawee, as the responsible party for the goods and services on the transaction, must be designated as the bill-to customer.

Assign Bills Receivable Creation Receipt Methods

Assign a bills receivable creation receipt method to each transaction that you want to apply to bills receivable. The bills receivable creation receipt method designates the transaction type, maturity date, bill receivable number, and minimum and maximum bill amounts for each bill receivable, and determines how transactions are grouped into bills receivable.

You can assign bills receivable creation receipt methods to transactions manually or automatically.

To assign bills receivable creation receipt methods automatically:

1. Open the Edit Site page for a bill-to site that you defined as a customer drawee.

2. In the Payment Details tab, add one or more bills receivable creation receipt methods.

3. Set one of these receipt methods as Primary.

   Receivables automatically assigns the primary receipt method to transactions belonging to this bill-to customer drawee site that you enter manually or import using AutoInvoice.

To assign a bills receivable creation receipt method manually:

1. Open the transaction in the Edit Transaction page.

2. Open the Payment tab and select the receipt method that you want in the Receipt Method field. The Receipt Method field choice list contains all receipt methods assigned to the bill-to customer drawee.

Note: If the bills receivable creation receipt method uses the Number of Bills Receivable Rule of either One Per Customer or One Per Customer Due Date, then you must also set Drawee as the primary business purpose for the applicable bill-to customer drawee site in order to generate bills receivable automatically. This is because the customer drawee is the defining element of transactions.

Review Eligible Transactions for a Bills Receivable Batch

When you run the Create Bills Receivable Batch process, the process selects all eligible transactions based on the customer drawees belonging to the business unit and the parameter values that you enter for the process run.

This table describes rules that apply to selecting transactions for a bills receivable batch.

Feature	Rule
Ineligible Transactions	You can't assign disputed transactions or other bills receivable to a bill receivable using the Create Bills Receivable Batch process.
Currency	If you enter a value in the Currency parameter, the process only selects transactions in this currency to create bills receivable. If you don't enter a value in the Currency parameter, the process creates bills receivable in different currencies, according to the currencies of the transactions selected. The process generates bills receivable from all eligible transactions with the same currency and conversion rate.
Debit Memos and Credit Memos	If you're batching debit memos and credit memos with the payment terms Immediate, Receivables includes these debit memos and credit memos in the first available bill receivable, without regard to the due date grouping rule assigned to the bill. Note: The amounts of debit memos and credit memos must still respect the maximum amount of the bill receivable, if defined. If the sum of debit memos and credit memos applied to a bill exceeds the designated maximum amount of the bill, then the process excludes one or more debit memos or credit memos in order to bring the bill to the proper amount.

Set Up the Customer Drawee Bank Account

The currency, conversion rate, bill-to customer bank account, and the settings assigned to the bills receivable creation receipt method determine how transactions are grouped into bills receivable.

The customer drawee bank account on eligible transactions acts as an additional rule for grouping transactions into bills receivable. The Create Bills Receivable Batch process creates individual bills receivable from transactions with the same customer drawee bank account.

Note: The customer drawee bank account must be in the same currency as the transactions applied to the bill receivable.

To automatically assign the customer drawee bank account to transactions that you enter manually or import using AutoInvoice:

1. In the Edit Site page: Site Details tab, for each applicable customer drawee site, assign the additional business purpose Bill-to.

2. In the Edit Site page: Payment Details tab: Bank Accounts section, enter the customer drawee bank account for the bill-to site.

3. Set this bank account as Primary.

Bills receivable created by the Create Bills Receivable Batch process inherit the bank account on the transaction if both of these conditions apply:

• The customer drawee site is also a bill-to site.

• The bills receivable creation receipt method doesn't use the Number of Bills Receivable Rule of either One Per Customer or One Per Customer Due Date.

If the Number of Bills Receivable Rule on the bills receivable creation receipt method is One Per Customer or One Per Customer Due Date, then bills receivable created by the Create Bills Receivable Batch process inherit the bank account on the transaction only if both of these conditions apply:

• The bank account is assigned to the customer drawee site marked as Primary.

• The primary drawee site is also a bill-to site.

If the bank account on eligible transactions isn't assigned to the primary drawee site, then the process creates bills receivable without a customer drawee bank account.