You can enter invoices against your deposits and guarantees by using the Transaction window or by importing your invoices using AutoInvoice. You can enter an invoice against an existing or related customer deposit or guarantee by navigating to the Commitment field in the Transactions window. Enter the commitment number that you want to reference and Receivables automatically creates the adjusting accounting entries for you. You can review commitment activity for your customers using the Commitment Balance Report.
See: Entering Transactions.
You can choose to enter orders or invoices for more than your customer's remaining commitment balance. For example, if your customer has a deposit with a remaining balance of $500 and has placed an order with you for $600, you can still reference that deposit. Receivables automatically creates a receivables adjustment in Receivables for $500, bringing the commitment balance to $0, leaving an amount due on the invoice of $100.
Note that you can never use more than the original deposit amount. Additionally, you can never increase the deposit amount.
You can also add a deposit to an invoice that is already completed, and partially paid or credited. From the Transactions workbench, choose Apply Deposit from the Actions menu.
Attention: If you set the Sequential Numbering profile option to Always Used, then you must assign a document sequence to the Commitment Adjustment document category in order to successfully enter an invoice against a commitment. See Setting Up Document Sequences.
Review the following sections to learn more about:
Additionally, see: Setup and Accounting for Commitments.
Your customer's commitment balance is available to you in several places within Receivables and is also available if you are using Oracle Order Management. You can see the balance for a particular commitment when entering an order (if you are using Order Management), a manual invoice, or a credit memo against a commitment, or by running the Commitment Balance Report. All transactions that reference a commitment or reference an invoice that references a commitment affect the balance of that commitment. The general formula for calculating the balance of a commitment at any given time is as follows:
Original Amount of Commitment: $10,000
minus: Invoices against commitment: $500
minus: credit memos that reference invoices that reference commitments: <$250>
plus: credit memos against the commitment itself: <$100>
Resulting Commitment Balance: $9,650
Note: The commitment balance also reflects reservations created in Order Management, if the OM: Commitment Sequencing profile option is set to Yes. See: Profile Options in Oracle Order Management.
At the time of order entry, a customer can reserve some portion of an existing deposit towards payment for the order. In Order Management, you can also enter a promised amount for the freight on the order.
When the order is invoiced via AutoInvoice, Order Management or another feeder system passes the promised amount to Receivables. For a description of the AutoInvoice column that holds the promised amount, see: AutoInvoice Table and Column Descriptions and Using AutoInvoice.
Receivables then adjusts the invoice and reduces the commitment balance by the lesser of the promised amount, the commitment balance, or the remaining amount due on the invoice. Depending on the deposit's transaction type, you can choose to include tax and freight when applying a deposit to a transaction. See: Transaction Types.