Receivables Activity Types

Receivables activity types provide default accounting information for all activities in Receivables other than transactions and receipts.

Using Receivables Activity Types

Adjustments

You use activities of this type when creating adjustments. You must create at least one activity of this type.

There are also three related activities that are reserved for internal use only:

• Chargeback Adjustment

• Adjustment Reversal

• Chargeback Reversal

You must define general ledger accounts for the Chargeback Adjustment activity before creating chargebacks.

When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities.

Bank Error

You use activities of this type when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Cash Management.

Bills Receivable Funds Recovery

You use activities of this type when you need to unapply a receipt from a bill receivable. Because you can't reverse the receipt in Cash Management, you use this activity to create a negative miscellaneous receipt and apply it to Bills Receivable Funds Recovery.

Claim Investigation

You use activities of this type when you create a claim investigation application against a receipt for a transaction or non-transaction underpayment or overpayment. You must define a general ledger account for claim investigation receipts that use the Claim Investigation activity.

Credit Card Chargeback

You use activities of this type when recording credit card chargebacks. You must define a general ledger clearing account for the Credit Card Chargeback activity that Receivables provides before recording credit card chargebacks.

Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one Credit Card Chargeback activity within a business unit can be active at a time.

Credit Card Refund

You use activities of this type when processing refunds to customer credit card accounts. This activity includes information about the general ledger clearing account to use to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.

Earned Discount

You use activities of this type to adjust a transaction if payment is received within the discount period, as determined by the payment terms on the transaction.

Late Charges

You use activities of this type to define a late charge policy. You must define a Late Charges activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate Late Charges activity for penalties.

Miscellaneous Cash

You use activities of this type when entering miscellaneous receipts. The Miscellaneous Cash activity uses a distribution set to automatically distribute miscellaneous cash across various accounts. You must create at least one activity of this type.

If the Tax Rate Code Source for this activity is Activity, then you must define asset and liability tax rate codes to account for tax on miscellaneous receipts and miscellaneous payments.

Payments

You use activities of this type when applying a receipt against other open receipts. You must define a general ledger clearing account to use when offsetting one receipt against another receipt. Only one Payments activity within a business unit can be active at a time.

Prepayments

You use activities of this type when creating prepayment receipts. You must define a general ledger account for prepayment receipts that use the Prepayments activity. Only one Prepayments activity within a business unit can be active at a time.

Receipt Write-off

You use activities of this type when writing off receipts. You must define the general ledger account to credit when you write off an unapplied amount or an underpayment on a receipt.

Refund

You use activities of this type to process automated non-credit card refunds. You must define the general ledger clearing account to use to clear refunds. You must create at least one activity of this type. Only one Refund activity within a business unit can be active at a time.

Short Term Debt

You use activities of this type to record advances made to creditors by the bank when bills receivable are factored with recourse. You select a short-term debt receivables activity when you create or update remittance banks to use with bills receivable remittance receipt methods.

Unearned Discount

You use activities of this type to adjust a transaction if payment is received after the discount period, as determined by the payment terms on the transaction.