Receivable Segmentation

Many organizations segregate their receivable balances in the general ledger. For example, the receivable amount associated with gas and water service may be maintained in separate GL accounts.

If your organization does this, you will probably have at least one SA type for each such receivable account because each SA type references a distribution code that typically contains the receivable account.

• The word probably is underlined because this is a rule of thumb. There are situations where the number of receivable accounts isn't directly related to the number of SA types. This happens when an organization maintains very detailed receivable accounts in the general ledger and maintaining a one-to-one relationship between SA types and distribution codes would lead to a massive proliferation of SA types (and you don't want this!). If your organization maintains very detailed receivable accounts, please speak to your implementers, they should be able to introduce a small customization to generate the appropriate receivable account rather than extract it from the distribution code.
• The word typically is underlined because there are several SA types that don't book to a receivable account when bill segments are generated. For example, company usage and charitable contributions. Refer to Company Usage Segmentation and Charitable Contribution Segmentation for examples of SA types that don't book to receivable accounts.

We'll simplify our example and assume your organization has one receivable account for all types of utility service. Given this, we won't need additional SA types to support receivable segmentation: