Accounts Receivable

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, application 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.

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.

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.

The transaction type (for assigned credit note) is used by the application for the assignment of the credit notes with schedules to original documents. In Invoicing, credit and rebill invoices are used to post credit notes with payment schedules in Financials. When the transaction type is specified, by default, the credit note is assigned to the original invoice. If the transaction type for Assign Credit Notes is not specified, the credit note is assigned manually to settle the credit note with the invoice in Financials.

All relevant functions such as outstanding amounts, dunning information, and all related activities, action dates, and notes are now available in one session, which improves the efficiency of credit collection for open amounts.

To improve the write off currency difference functionality, the print currency analysis session is extended to print the report by business partner group. Two reports are now created, one Detailed Currency Difference for business partner groups and one without the grouping the business partners. This results in a better currency difference analysis by which balances of invoices can be reevaluated at end of the period.

The penalty interest for a late payment of the sum due is usually calculated based on penalty interest tables that are published periodically and announced in the ordinances of the Cabinet ‘concerning the determination of statutory interest levels’. If you define interest rate code in invoice-to business partner role, it overrides the code assigned to the financial business partner group. Interest rates defined for this code are used in interest amount calculation for reminder letters and interest invoices.

Total amounts of the aging analysis for each transaction or invoice currency can be viewed.