Automatic Clearing of Receipts

Use the Clear Receipts Automatically process to automatically clear remitted receipts, and clear or eliminate risk on factored receipts.

The Clear Receipts Automatically process manages the clearing process for both remitted and factored receipts. The receipts that you intend to clear with the Clear Receipts Automatically process must belong to a receipt class with a clearance method of Automatic.

If you don't want to recognize the cash until the cash is deposited into your bank account, you can reconcile the bank statement within your accounts receivable. This step is optional for both automatic and manual receipts.

Remitted Receipts

Clearing remitted receipts credits your cash account and debits your remittance or factoring account.

Remitted receipts are cleared X days after their maturity date, where X is the number of clearing days defined for the receipt method/bank account combination on each receipt.

Factored Receipts

Clearing factored receipts creates a short term debt to account for your risk in case of customer default. The debt is cleared by the Clear Receipts Automatically process Y days after each receipt maturity date, where Y is the number of risk elimination days defined for the receipt method/bank account combination assigned to the receipt.

Factored receipts are cleared immediately on the remittance date. To eliminate risk created by clearing factored receipts, set the Eliminate Bank Risk parameter to Yes when you run the Clear Receipts Automatically process.