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

    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.

  • Control accounts

    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.

  • Receipts against shipments

    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.

  • Credit notes

    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

    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.

  • Factoring

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

  • Problem invoices

    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.

  • Interest invoices

    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.

  • Direct linking credit note to invoice with schedules

    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.

  • Credit Collector Workbench

    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.

  • Write off currency differences

    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.

  • Interest Notes (Poland)

    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.

  • Aging Analysis – Foreign Currencies

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

  • Write off Bad Debts

    For business purposes, a debt is regarded as ‘bad’ when the decision is made that the debt is non-recoverable. This decision is made when all reasonable efforts are made to collect the debt but without any success; and the supplier is in a position to reduce the amount of debt by indicating the same in the application. It is necessary to write off a bad debt when the related customer invoice is considered to be ‘uncollectible’.

    There are two methods to account for bad debts:
    • Direct write off method: The seller can charge the invoice amount to the bad debt expense account when it is certain that the invoice cannot be paid. The journal entry is a debit to the bad debt expense account and a credit to the accounts receivable account.
    • Allowance method: The seller can charge the invoice amount to the allowance for doubtful accounts. The journal entry is a debit to the allowance for doubtful accounts and a credit to the accounts receivable account.

  • Bad Debt Recovery and Bad Debt Claim Report

    The Bad Debt Recovery functionality has been enhanced to process Bad Debt Relief transactions. If, after claiming bad debt relief from the tax authorities on receivables, a company receives a payment for any part of that particular debt, an adjustment to the bad debt relief already claimed must be made. If, after paying the bad debt relief to the tax authorities on payables, a company pays for any part of the supply of any goods or services, an adjustment must be made to the bad debt relief that is already paid.

    This functionality has been further enhanced to easily handle Bad Debt Recovery and consequently the required VAT adjustments.

    The bad debt claim report is added for auditing purposes. The report includes the bad debt relief transactions regarding receivables and payables that are part of the tax declaration submitted to the tax authorities.

  • Aging Summary without VAT

    The ability to run the Print Invoice-to Business Partner Aging Summary (tfacr2411m000) and the Print Invoice-from Business Partner Aging Summary (tfacp3425m000) sessions without VAT to meet, amongst others, the ‘French law on transparency’, is supported. The reports contain aging buckets with a corresponding number of invoices, total amounts without VAT and a percentage of total invoices without VAT.

  • Support of Tax-Only Invoice in combination with Vertex

    When tax-only Accounts Receivable-invoices were finalized in the system, the Vertex tax register was not updated. Therefore, the tax integration functionality is enhanced. The entered tax amount will now update the Vertex tax register through the 'Add Adjustment' web service.

  • Postings and Movements on Accounts Receivables Grouped by Customer

    On a periodic basis, the receivables administrator checks the balances of each customer to see if action should be taken to control the open entries. The administrator also requires insight into the evolvement, the movements (receipts, discounts, adjustments) of sales invoices, unallocated receipts, and advance receipts. With the new functionality, the Receivables Administrator can quickly report information on postings and movements on invoices, unallocated receipts and advance receipts. This information is also referred to as the ‘AR ledger’.

    You can print a summarized report for each customer if a customer requests information on the (open) invoices including the movements.