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Entering Deductions for Short Payments

Entering Deductions for Short Payments

Concept

When a customer reduces the amount of their payment, you can enter the short payment as a deduction during receipts entry. This process enables you to apply the amount of the customer’s payment to the appropriate invoice or group of invoices and create a deduction for the unpaid amount. Often, the accounts receivable personnel entering manual receipts do not have authority to determine whether to create a write-off or a chargeback for the deduction amount. By creating a deduction, a manager can later research the reason for the short payment and resolve it accordingly.

 

Procedure

In this task, you will enter a deduction for a short payment.

Step Action
Navigate to the Standard Receipts Entry program (P03B102) on the Manual Receipts Processing menu (G03B12).

Click the Manual Receipts Processing menu.

Click the Standard Receipts Entry menu.

Use the Work with Customer Receipts Inquiry form to locate and select an existing receipt.

Step Action
Click the Add button.

Use the Receipt Entry form to assign a logged receipt to a customer.

Step Action
Click in the Company field.

Step Action
Use the Company field to enter a code that identifies a specific organization, fund, or other reporting entity.

Enter the desired information into the Company field. Enter “1“.

Click in the G/L Date field.

Use the G/L Date field to enter the date that identifies the financial period to which the system posts the transaction.

Enter the desired information into the G/L Date field. Enter “080117“.

Click in the Payor field.

Use the Payor field to enter a user-defined name or number that identifies an address book record.

Enter the desired information into the Payor field. Enter “3004“.

Click in the Receipt Date field.

Use the Receipt Date field to enter the date on the check or the date that you enter the receipt into the system. The receipt date is used for information and reporting purposes only.

Enter the desired information into the Receipt Date field. Enter “090117“.

Click in the Receipt Number field.

Use the Receipt Number field to enter an alphanumeric code that identifies a check or receipt.

Enter the desired information into the Receipt Number field. Enter “1947“.

Click in the Receipt Amount field.

Use the Receipt Amount field to enter the actual amount of the receipt or payment.

Enter the desired information into the Receipt Amount field. Enter “4000“.

Use the Form menu to select specific invoices.

Click the Form button.

Click the Select menu.

Use the Select Invoices form to select specific open invoices for a customer and apply them to a receipt.

Step Action
Search for and select document number 1243.

Click in the Document Number field.

Enter the desired information into the Document Number field. Enter “1243“.
Click the Find button.

Click the 1243 option.

Click the Select button.

Notice that when you select the invoice, the system displays a check mark next to your selection.
Click the Close button.

Step Action
Click in the T I field.

Use the T I field (type input) field to enter the receipt entry type input code.

 

Enter the desired information into the T I field. Enter “17“.

Notice that the system automatically populated the Payment Amount field.

If the amount of the receipt is greater than the open amount of the invoice, the system does not calculate the deduction amount until you override the payment amount to be less than the open invoice amount.

Step Action
Click the horizontal scrollbar.

Step Action
Click in the DD CD field.

Use the DD CD (Deduction Reason Code) field to enter a code that identifies the reason a customer did not fully pay an invoice. Values include:

DA (disputed amount)

DG (damaged goods)

SS (short shipment)

UD (undefined deduction)

Enter the desired information into the DD CD field. Enter “DA“.

Step Action
Click the OK button.

Step Action
Click the Cancel button.

Step Action
Click the Close button.

You have successfully entered a deduction for a short payment.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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