Accounts Receivable

Accounts Receivable handles and monitors sales invoices, credit notes, credit checking, credit management, customer balance management, and generates interest invoices.

  • Financial business partner groups are used to establish the link between the accounts payable and accounts receivable. These groups are also used to establish a link to the General Ledger. For each business partner group, you must define a set of ledger accounts and dimensions to which transactions are posted.

  • Business practices in Japan, Spain, Italy, and other countries require that different types of receivables and payables are posted to different control accounts. You can use multiple control accounts for financial business partner groups to post real trade transactions and other purchase or sales-related transactions to different control accounts.

  • You can use the receipts against shipments functionality to generate or enter payment transactions and receipt transactions in Cash Management based on shipment or order information and to maintain the balances by shipment or order.

  • If a customer returns part of the goods, or if you create invoice corrections, you or your business partner can create a credit note to correct the amount payable for an invoice. If you automatically process the invoices, LN automatically generates credit notes and assigns credit notes to invoices.

  • Trade notes are legally accepted forms of payment such as bank drafts, checks, promissory notes, and bills of exchange. Trade notes can be used instead of cash payments. Because trade notes are negotiable, they can also be used as a credit instrument, for example, for discounting and endorsing. Trade notes can exist on paper and on magnetic supports, according to local business practices and banking standards.

  • LN supports factoring of your outstanding receivables and payment of purchase invoices to factors used by your suppliers.

  • You can use a problem code to indicate that a problem exists for a sales invoice. If the invoice-to business partner notifies you about a problem with the invoice and does not pay it, you can link a problem code to the invoice.

    In the direct debits procedure, problem invoices are automatically discarded. For each problem code, you can set an option to prevent linked invoices from being selected on reminder letters.

  • You can generate interest invoices for overdue invoices. In addition, after generating and sending an interest invoice, you can generate a subsequent interest invoice for the next period.

  • Reminder letters

    You can define several reminder letters for each language and level. Invoices are selected based on the due date. When reminder letters are printed, the letter number and date are stored with the reminded invoices.

  • Reminder diary

    You use the reminder diary to keep track of e-mails, phone calls, or other contacts that you had with your customer regarding open entries.

  • Accounts Receivable 360

    A single point of access from which you can perform almost all AR-related tasks:

    • Open Entries
      View a list of the open invoices for the selected business partner.
    • BP Statements
      Print the statement of account for the selected business partner.
    • Credit Profile
      View the various business partner's balances, aging analysis, and the full details of the business partner's current credit situation and payment behavior.
    • Factor Relations
      Assign a factor to a pay-by business partner if you factor invoices and no default factor exists for the associated partner.
    • Aging Analysis
      View or print the invoice-to business partner's aging analysis for the total outstanding balance.
    • Reminders
      View the latest selection of invoices that were reminded. You can also view invoices that require reminders.
    • Schedules
      If a receipt schedule is linked to an invoice, view the generated receipt schedule lines. You can also manually link a receipt schedule to an invoice.
    • Interest Invoices
      Generate interest invoice advice for delayed receipts from the selected business partner.
    • Overdue Invoices
      Show the overdue sales invoice details for the selected business partner.
    • Receipt-related Documents
      Show the receipt-related documents for the selected business partner.