Accounts Receivable handles and monitors sales invoices, credit notes, credit
checking, credit management, customer balance management, and generates
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
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
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.
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
You use the reminder diary to keep track of e-mails, phone
calls, or other contacts that you had with your customer regarding open
Accounts Receivable 360
A single point of access from which you can perform almost
all AR-related tasks:
View a list of the open invoices for the selected business
Print the statement of account for the selected business
View the various business partner's balances, aging
analysis, and the full details of the business partner's current credit
situation and payment behavior.
Assign a factor to a pay-by business partner if you factor
invoices and no default factor exists for the associated partner.
View or print the invoice-to business partner's aging
analysis for the total outstanding balance.
View the latest selection of invoices that were reminded.
You can also view invoices that require reminders.
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.
Generate interest invoice advice for delayed receipts from
the selected business partner.
Show the overdue sales invoice details for the selected
Show the receipt-related documents for the selected