Once you complete an AR invoice/credit memo/debit memo by clicking the “Complete” button, you can’t change it back to “Incomplete” (the “Incomplete” button is greyed out) if any below situation exists:
- The transaction has been transferred to GL after completing
- The transaction has been printed after completing
- The transaction has any activity, e.g. payment, application, adjustment, etc.
We have two way to handle the bank charges. One is entering the bank charges in the AR Receipt Form while the other is creating a AR credit memo for bank charges and apply it with the original invoice. Personally I prefer the first way very much.
As you can adjust revenue account in credit memo in second way, the accounting entries can be exactly same between the two ways. But in the second way, you must specify the customer in the credit memo as the same as the original invoice, then if you run some report (e.g. AR transactions register), this customer’s revenue and balance would be wrong unless you consider the accounting entries (filter out the bank charge account).
Well, whatever the accounting entries, documents and even the working steps are all much much more clear.
Above analysis is on the base of a legal transactions, which means the bank charges are not charged to customer. But in China, as you know, a lot of illegal merchant requests an extra fee if you would like to use credit card to pay. How to handle it from Accounting respect? Very easy, just create the receipt without any bank charges and the receipt amount should be customer’s payment amount – physically bank charges + requested extra fee. Generally, physical bank charges equals to the request extra fee, so receipt amount = customer’s payment amount.
You may know that you can set up cash GL account in bank account setup and AR payment method (Receipt Class) setup. And meanwhile the bank account is the setup of operating unit level. It means the account combination will be used for AP payment, Refund and also AR receipt within the specific operating unit.
Now we received a requirement that the user have several departments in the operating unit and one bank account (physical bank account) is used for all departments. In their system, the accounting flexfield likes “CompanyCode.DepartmentCode.*.NatureAccount.*”. They need to identify the department code in the cash GL account during AP payment and AR receipt accounting entries. How to set up to fulfill her/his requirement?
For AR receipt, we can fulfill this requirement by creating more “Payment Method” for one bank account because the cash GL account within payment method can override the cash GL account within bank account.
But for AP payment, there’s no cash GL account field in the payment document level; we can only set up it in bank account level. Someone ever told me that the designation of AR is better than the one of AP. From this point, it looks trues. I
Must we create multiple bank accounts in the system for the same bank account in the real world? It looks not a good solution.
RMA (Return Material Authorization) is not normally created in sales order form by copying the original SO (sales order), then auto-invoiced to AR credit memo once whose goods is received. The credit memo in AR will apply the original SO’s AR invoice automatically.
If, during autoinvoice process running, the system found that the original SO’s AR invoice has no balance or has no enough balance to apply with the new created credit memo, the RMA credit memo in AR will not be created while an error message with necessary information will be written to the request output. You need to manually unapply some amount (equal to RMA closed amount) from the receipt to let AR invoice has some balance, then run the autoinvoice process again. After doing that, the credit memo of RMA will be created and auto applied with just opened AR balance.
There’s no way to partially reverse the clearance journals, we can only reverse the whole receipt and create a new one.
Sometimes, we have received an deposit and get the payment from customer for this deposit. Then we received another deposit from the same customer for the same transaction(contract). When we finished business, we create an AR invoice to customer. We have two deposits for this invoice. How to apply these two deposit for this one invoice?
From Oracle standard functionality we can only apply one deposit to one invoice. We can’t apply multiple deposit to the AR invoice. The workaround to handle this case is unapply the payments from the original deposits, credit the original deposits, and then make a new deposit, apply the multiple payments to the new deposit, and then apply the new deposit to the AR invoice.
Is there any other better solutions? Waiting for Oracle……
1. Create RMA in orde management and attach it with original SO
2. Auto create Credit Memo in AR
3. Create Debit Memo in AR to settle the credit memo
4. Create AP invoice in AP with the distribution account as the same as the ones in AR debit memo
5. Pay the AP invoice (Refund money to customer).
Before 2, you may need to unapply the original receipt with original SO firstly so that the credit memo can be auto created. Then you can resume the original circumustance.
Before 4, you may need to create the supplier and supplier site for your customer.