1. Using Receivables Credit to Cash
  2. Legal Entity Time Zones in Receivables

Legal Entity Time Zones in Receivables

The applicable dates on Receivables transactions and receipts are converted to the time zone date of the legal entity that owns them, according to the Legal Entity Time Zone functionality.

For example, a legal entity on the west coast of the United States uses a shared service center on the east coast to process transactions. An invoice entered by the shared service center at 2:30 AM on December 1 (shared service center time zone) is entered with a transaction date and accounting date of 11:30 PM on November 30 (legal entity time zone).

Rules for Time Zone Derivation

Different time zone derivation rules apply to transactions and receipts.

The following rules apply to time zone derivation on a transaction:

  • Time zone conversion applies to the transaction date, adjustment date, and accounting date on transactions

  • Time zone is derived from the legal entity associated to the business unit of the transaction. This includes both user-entered business units and business units provided by default.

  • If no legal entity is associated with the business unit used on the transaction, then the system date is used. No time conversion takes place for this date.

  • These rules apply to invoices, credit memos, on-account credit memos, debit memos, chargebacks, and adjustments.

  • AutoInvoice doesn't create time zone conversions. If another application passes a source date to AutoInvoice, this source date may be subject to time zone conversion according to the rules of that application.

The following rules apply to time zone derivation on a receipt:

  • Time zone conversion applies to the receipt date, batch date, confirmation date, deposit date, application date, reversal date, accounting date, and unapply accounting date on all receipts, receipt batches, receipt write-offs, and chargebacks where the default date is the system date.

  • Time zone conversion applies to the refund date and accounting date on all refunds where the default date is the system date.

  • Time zone conversion applies to the application date, accounting date, and unapply accounting date on all credit memos where the default date is the system date.

  • Time zone conversion applies to the remittance batch date and accounting date on all remittance batches where the default date is the system date.

  • Time zone conversion applies to the conversion date and accounting date on all conversion rate updates where the default date is the system date.

  • Time zone is derived from the legal entity associated with the business unit of the receipt or receipt batch.

  • If a receipt or receipt batch has both a legal entity derived from the business unit and a legal entity associated with the remittance bank account, Receivables uses the legal entity derived from the business unit for time zone conversion.

  • These rules apply to standard receipts, miscellaneous receipts, manual and automatic receipt batches, lockbox receipts, remittance batches, receipt reversals, refunds, on-account applications, credit memo write-offs, and updates to conversion rates.

Manually Updating the Date or Legal Entity

After transaction or receipt dates are converted to the applicable time zone, no further time zone conversion takes place. If you manually update either the date or the legal entity on a transaction or receipt, this action doesn't recalculate time zone dates based on your changes. The changes that you make become the new date or legal entity.

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