Example 2 - Payable On Due Date, Customer Does Not Pay

In the following example a customer is billed and no payment is received prior to the bill due date. The bill review batch process is responsible for creating the settlement adjustment for any outstanding holding amounts on the bill's due date. The accounting method in this case is Payable On Due Date.

Event

GL Accounting

Tax Payable Balance

Tax Holding Balance

Bill segment created

A/R 110

Revenue <100>

Tax Holding <10>

0

(10)

Adjustment created on bill due date

Tax Holding 10

Tax Payable <10>

(10)

0