Define bills receivable remittance receipt classes and receipt methods to use with bills receivable remittances. The receipt class determines the remittance method and clearance method to use for bills receivable receipts. The receipt methods link the remittance banks to the receipt class and determine if debit memos created as a result of a debit memo reversal will inherit the receipt number. Remittance banks contain the specific remittance bank account information and the formatting programs to use for remittances. A remittance bank assigned to a receipt method determines the accounting for remitted bills receivable and the subsequent receipt.

You assign the creation method Bills Receivable Remittance to receipt classes that you define for bills receivable remittance receipt methods. This activates the Bills Receivable Remittance tabbed region.

To define a bills receivable remittance receipt method:

1. Navigate to the Receipt Classes window.

2. Enter a unique Receipt Class Name for this bills receivable receipt class.

3. Enter Bills Receivable Remittance in the Creation Method field.

4. Enter a Remittance Method. Choose Standard for standard bills receivable and Factoring for factored bills receivable with or without recourse.

5. Enter a Clearance Method. If you plan to clear bills receivable receipts automatically using the Automatic Clearing program, choose By Automatic Clearing. If you plan to clear receipts by cash management reconciliation, choose By Matching.

6. Enter a unique Name for this bills receivable remittance receipt method.

7. Enter the Printed Name and Effective Dates for this receipt method.

8. Check the Debit Memos Inherit Receipt Numbers box, if you want debit memo reversals of receipts applied to a bill receivable remitted with this receipt method to inherit the receipt number.

9. Check the Receipts Inherit Transaction Numbers box, if you want receipts created for bills receivable remitted with this receipt method to inherit the bill number.

10. Receivables displays One per Invoice in the Number of Receipts Rule field to create one receipt per transaction to close the bill receivable. You cannot change this value.

11. Choose Bank Accounts.

12. Enter the remittance bank and bank account.

13. If this receipt method is for bills receivable factored with recourse, enter the number of Risk Elimination Days for this type of bill.

14. In the Clearing Days field:

    • If this receipt method is for standard remitted bills receivable, enter the number of days it will take for the bank to clear the drawee receipt.

    • If this receipt method is for bills receivable factored with recourse, enter the number of days it will take for the bank to clear the cash advance (short term debt) receipt.

15. Check the Primary box if this is the primary bank account for this receipt method.

16. Open the GL Accounts tabbed region.

17. Enter the Bills Receivable Short Term Debt account to use for this receipt method.

    Note: The Factoring field is not used for bills receivable. Bills receivable receipts are not factored, but rather created as remitted.

18. Open the Bills Receivable tabbed region.

19. If this receipt method is for standard remitted bills receivable, enter in the Collection Days field the minimum number of days that the remittance bank uses to collect on a bill that is remitted after the maturity date.

20. Enter the Remitted Bills Receivable and Factored Bills Receivable accounts used by AutoAccounting.

21. Open the Formatting Programs tabbed region.

22. Select the Remittance Print program, according to the Remittance Method for this receipt method.