Remittance Bank Accounts on Receipt Methods

Define remittance bank account information for each receipt method assigned to a receipt class. Remittance bank account information includes the general ledger accounts to use when you enter or apply receipts.

Remittance Bank Accounts and Receipt Currencies

If you remit receipts in one currency only, you can enter more than one remittance bank account for a receipt method, but you must mark one account as the primary bank account for the receipt method.

If you remit receipts in more than one currency for a receipt method, then you must enter at least one remittance bank account per currency and mark one account per currency as primary.

During receipt entry and processing, Receivables uses the primary bank account as the default remittance bank account for the receipt. You can accept this value or enter any other bank account defined for the receipt method in the same currency as the receipt.

Factored Receipts

If the receipt class of the receipt method allows factoring, you can specify the number of Risk Elimination Days for factored receipts for a given bank account.

When you factor receipts, Receivables creates a short term debt to account for risk in case of customer default. When you clear or risk eliminate these receipts, the debt is cleared after the receipt maturity date plus the number of risk elimination days that you enter.

Cash Budget Funding with Receipts

If you intend to fund a cash control budget in Budgetary Control with application amounts from standard receipt applications and miscellaneous receipt creation, you must complete related setups for receipt methods and remittance bank accounts.

Create and assign a remittance bank account to each receipt method that you will use to process receipts for cash budget funding. You can set up receipt methods for both automatic and manual receipt creation.

During setup, you must assign the same GL cash account to the remittance bank account belonging to the receipt method used for cash budget funding and to the ledger in Budgetary Control enabled for cash budget funding.

Complete these steps for your GL accounts:

• In your Budgetary Control setup, enter the GL cash account in the Accounts in Journals Subject to Cash Controls section of the Edit Budgetary Control page for the applicable ledger.
• In the related remittance bank account, enter the same GL cash account in the Cash field in the GL Accounts section of the Edit Remittance Bank Account page.
• You must only enter the GL cash account in the Cash field. Enter different natural accounts in each of these fields in the GL Accounts section of the same remittance bank account:
  • Receipt Confirmation
  • Remittance
  • Unapplied Receipts
  • Unidentified Receipts
  • On-Account Receipts

You must enter different natural accounts in these fields to prevent overstating the cash control budget with additional budget activity on the cash account.