Accounts Receivable is comprised of different transactions with different reference types. The following table displays information for the most common transaction types.
|
Invoice, Credit Memo and Debit Memo creation method |
Invoice (IN) |
Credit Memo (CM) |
Debit Memo (DM) |
|
Created automatically from sales orders (for more information, see Invoice Create and Print) |
Yes |
Yes |
|
|
Manual creation (for more information, see Invoice Entry) |
Yes |
Yes |
Yes |
As invoices, credit memos, and debit memos are created in the normal course of business, customers make payments that need to be applied to these transactions. The following table displays information for the transaction types related to these payments.
|
Payment and chargeback creation process |
Unapplied Payment (UP) |
Chargeback (CB) |
On Account (OA) |
|
Payments are initially entered in Deposit Entry |
Yes |
|
|
|
Payments are applied to transactions, or left on account, and chargebacks are entered in Payment Apply |
|
Yes |
Yes |
There are also special situations that give rise to other transactions. The following table displays information about these special transaction types.
|
Special situation creation process |
Finance Charge (FC) |
NSF Invoice (NS) |
Prepayment (PP) |
|
Finance charges are created in Finance Charge Apply |
Yes |
|
|
|
A customer’s payment is entered for non-sufficient funds in Non Sufficient Funds Reverse Deposit Entry |
|
Yes |
|
|
A customer sends in a prepayment for a sales order and this is entered in Deposit Entry |
|
|
Yes |