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Setting Up Deduction Activity Codes

Setting Up Deduction Activity Codes

Concept

When you receive payment from customers, a customer might reduce the amount of a payment for unknown reasons, or for reasons that might be associated with a specific invoice or a group of invoices, such as damaged goods. The amount by which a customer’s payment is reduced is known as a deduction.

 

Before researching and resolving a deduction, you can set up additional activity codes to specify which type of activity the system uses to resolve the deduction.

 

The JD Edwards EnterpriseOne Accounts Receivable system provides default activity codes. However, you might want to set up additional codes that meet organization-specific needs. For example, you can set up additional activity codes for write-offs to correspond with specific write-off reason codes.

 

You can use activity codes to provide an audit trail for research tasks and resolve the deduction.

 

The system uses codes to assign an action to the deduction. Each action creates a record in the A/R Deduction Activity table (F03B41). The system stores deduction activity codes in the Deductions Activity Master table (F03B42).

Procedure

In this task, you will review different deduction activity codes.

Step Action
Navigate to the Deduction Activity Master program (P03B42) on the Credits & Collections Setup menu (G03B411).

Click the Credit & Collections Setup menu.

Click the Deduction Activity Master menu.

Use the Work With Deduction Activity Codes form to review deduction activity codes.
First, review a chargeback deduction code.

Click the CB option.

Click the Select button.

Use the Deduction Activity Code Entry form to set up deduction activity codes to specify which type of activity the system uses to resolve the deduction.
Use the Deduction Activity Code field to enter the code that represents a specific instruction that is used to resolve a deduction. This field is required.
Use the Activity Tickler Displacement field to enter the number of days that the system adds to the activity date to calculate the deduction tickler date.
Use the Chargeback Reason Code field to enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Typical chargeback reason codes are:

• DA: Disputed amounts.

• DD: Unearned (disallowed) discount amount.

Note. The system does not accept Blank as a value, even if it is defined in the UDC table.

Click the Cancel button.

Click the CB option.

Click the Next button.

Next, review a write-off deduction code.

Click the WO option.

Click the Select button.

Use the Write Off Reason Code field to enter a code that represents the reason for the write-off. Typical reason codes are:

• BD: Bad debt

• DC: Damaged goods

• MW: Minor amount Write-off-off

• TF: Tax or freight dispute

Click the Cancel button.

Click the WO option.

Next, review a discount deduction activity code.

Click the DS option.

Click the Select button.

Use the Discount Reason Code field to enter a UDC code from UDC 00/DE that specifies the reason for the deduction.
Select the Deduction Reversal check box to create an activity that reverses the deduction. When you use the activity that is created, the system closes the deduction records and reopens the invoice for the amount of the deduction.
Select the Deduction Discount check box to create an activity that settles the deduction as a discount taken.
Select the Credit Memo Activity check box to create an activity to apply the deduction to a credit memo.
Click the Cancel button.

Click the Close button.

You have reviewed different deduction activity codes.

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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