Examples of Accounting Entries for Bills Receivable Activities

Bills Receivable

When you complete a bill receivable, or accept a bill receivable if it requires acceptance, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Bills Receivable	Receivables

If you cancel a bill receivable that isn't Pending Acceptance, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Receivable	Bills Receivable (if the bill has the status Pending Remittance) Unpaid Bills Receivable (if the bill has the status Unpaid)

Remitted Bills Receivable

When you remit a bill receivable with a standard remittance method, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Remitted Bills Receivable	Bills Receivable (if the bill had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

On maturity (or maturity plus the number of collection days, if the bill is remitted on or after maturity), Receivables creates this journal entry on the receipt created:

Debit Account	Credit Account
Remittance (if the clearance method used is By Automatic Clearing or By Matching) Cash (if the clearance method used is Direct)	Remitted Bills Receivable

Factored Bills Receivable with Recourse

When you factor a bill receivable with recourse, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Factored Bills Receivable	Bills Receivable (if the bill had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

Receivables creates this journal entry on the receipt created when factoring with recourse:

Debit Account	Credit Account
Remittance (if the clearance method used is By Automatic Clearing or By Matching) Cash (if the clearance method used is Direct)	Short Term Debt

When you eliminate the risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:

Debit Account	Credit Account
Short Term Debt	Factored Bills Receivable

When you reestablish risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:

Debit Account	Credit Account
Factored Bills Receivable	Short Term Debt

Factored Bills Receivable without Recourse

When you factor a bill receivable without recourse, Receivables creates this journal entry on the receipt created:

Debit Account	Credit Account
Remittance (if the clearance method used is By Automatic Clearing or By Matching) Cash (if the clearance method used is Direct)	Bills Receivable (if the bill had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

Unpaid Bills Receivable

When you mark as unpaid a bill receivable with the status Pending Remittance, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Unpaid Bills Receivable	Bills Receivable

When you mark as unpaid a bill receivable with the status Standard Remitted, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Unpaid Bills Receivable	Remitted Bills Receivable

When you mark as unpaid a bill receivable with the status Closed that was previously standard remitted:

Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Unpaid Bills Receivable	Remitted Bills Receivable

The accounting entries are reversed on the receipt that was applied to the bill receivable:

Debit Account	Credit Account
Remitted Bills Receivable	Cash (if the receipt was cleared) Remittance (if the receipt wasn't cleared)

When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored with recourse:

Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Unpaid Bills Receivable	Factored Bills Receivable

Receivables creates this journal entry on the receipt created when the bill was factored with recourse:

Debit Account	Credit Account
Short Term Debt (if the bill was Matured Pending Risk Elimination) Factored Bills Receivable (if the bill was Closed)	Bills Receivable Funds Recovery

Receivables creates this journal entry on the negative miscellaneous receipt created when the bill receivable factored with recourse is marked as unpaid:

Debit Account	Credit Account
Bills Receivable Funds Recovery	Cash (if the original receipt was cleared) Remittance (if the original receipt wasn't cleared)

When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored without recourse:

Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Unpaid Bills Receivable	Bills Receivable (if the bill had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)

Receivables creates this journal entry on the receipt created when the bill was factored without recourse:

Debit Account	Credit Account
Bills Receivable (if the bill had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)	Cash (if the receipt was cleared) Remittance (if the receipt wasn't cleared)

When you restate a bill receivable that was previously marked as unpaid, Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Bills Receivable	Unpaid Bills Receivable

Recalled Bills Receivable

When you recall a bill receivable that was previously standard remitted or factored:

Receivables creates this journal entry on the bill receivable:

Debit Account	Credit Account
Bills Receivable (if the bill had the status Pending Remittance before it was remitted Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)	Remitted Bills Receivable (if the bill was standard remitted) Factored Bills Receivable (if the bill was factored with recourse)

Receivables creates this journal entry on the receipt created when the bill was factored:

Debit Account	Credit Account
Short Term Debt (if the bill was factored with recourse) Bills Receivable (if the bill was factored without recourse and had the status Pending Remittance before it was remitted) Unpaid Bills Receivable (if the bill was factored without recourse and had the status Unpaid before it was remitted)	Remittance (if the clearance method used is By Automatic Clearing or By Matching) Cash (if the clearance method used is Direct)

Transaction and Receipt Applications

When you apply a receipt to a bill receivable, Receivables creates this journal entry on the receipt:

Debit Account	Credit Account
Cash (if the receipt was cleared) Remittance (if the receipt wasn't cleared)	Bills Receivable (if the bill has the status Pending Remittance) Unpaid Bills Receivable (if the bill has the status Unpaid or Protested)

When you apply an on-account credit memo to a bill receivable, Receivables creates this journal entry on the credit memo:

Debit Account	Credit Account
Receivable	Bills Receivable (if the bill has the status Pending Remittance) Unpaid Bills Receivable (if the bill has the status Unpaid or Protested)

Create intercompany accounting entries whenever a transaction, receipt, or credit memo is applied to a bill receivable with a different company segment.