jdetips cover story - jdelist

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JDEtips.com JDEtips © 2007 Klee Associates, Inc.

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W E1 Editor’s Note: You ship ‘em, you bill ‘em, they pay ‘em (hopefully). That’s the cycle of commerce. Where it gets to be “fun” is when you have multiple receipts coming to pay multiple invoices per customer. Can anyone say “match game?” Bob DeMartino, our Financials Expert, can help you make ease of this task—he takes us step by step through the setup and processing of Automated Cash Receipts so that JD Edwards® (and not you) can match the correct pay-ment to the invoice and keep your customer records accurate!

Automated Cash Receipts is an easy way of matching a large volume of receipts to invoices by customer. In this article, we will go through what information is needed from the bank and how to set up JD Edwards EnterpriseOne® and process the data.

Note: This article does not apply to World®, even though World has a batch cash application program. The matching algorithms are substantially different and more diverse in EnterpriseOne.

Getting StartedThe first step is to meet with your bank representative to map out the needed data:

• The customer’s bank ABA number

• The customer’s bank account number

• The check (receipt) amount

• The “Apply To” amount, where necessary

• The invoice number being paid

Depending on your business and the amount you are willing to pay the bank for their services, you might also provide other information such as Customer Num-ber, Sales Order Number, Statement Number, or some other reference number that you and the customer are familiar with, which can be used to perform a match.

This data is commonly referred to as EDI “823” trans-action or lockbox data. This is the information that is prepared by your bank when they receive the payments. Your IT Department will have to map this data to and import it into JD Edwards. From this point on, the user can then begin processing the receipts.

Automated Cash Receipts Setup and Processing By Bob DeMartino

Before any data can be processed, you must first set up Automated Cash Receipts in the Accounts Receivable module. This involves:

• Turning on Auto Receipts in the A/R Constants

• Setting up Reason Code AAIs

• Turning on Auto Receipts in the Customer Master

• Setting up the Bank Account Cross-Reference file with the customer’s bank ABA and account numbers

• Identifying which algorithms will be used and if mul-tiple versions need to be created

• Creating an Execution List showing which algo-rithms will be used and in what order they should be processed for all customers using auto receipts

• Attaching specific Execution Lists to specific custom-ers, on an exception basis

• Creating versions for Update Receipts Header, Apply Receipts to Invoices and EDI – Update Electronic Receipts

After all processing is completed, the results should be reviewed and manual corrections made to Unapplied Cash, Logged Receipts, and any other data not properly matched.

Note: If you enter Unapplied Cash manually, you can specify in processing option #2 for Apply Receipts to Invoices (on the Process tab) to pick up both manual and auto cash entries.

In this article, we will assume that the bank data has been matched to JD Edwards and that the bank has provided, where available, the customer’s bank ABA number, the customer’s bank account number, the check (receipt) amount, the “Apply To” amount and the invoice number being paid.

Automated Cash Receipts is an easy way of matching a large volume of receipts to invoices

by customer.

Cover Story

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4On Financials / Accounts Receivable

Accounts Receivable ConstantsThe first step is to set up the A/R Constants. Go to Accounts Receivable Setup‡Accounts Receivable Constants and click on the Accounts Receivable Con-stants bar. Click FIND.

A/R Constants are set up by company. Each company that will be using Auto Receipts must have that flag turned on in that company. Select each company that will be using Auto Receipts and check the box as shown in Figure 1.

The Auto Receipts Flag represents the “master switch”, which turns on or off Auto Receipts for all customers within the company. Therefore, if a specific company will not be using Auto Receipts, it is not necessary to go into every Customer Master and turn it on or off there.

Note: This box is automatically checked when a com-pany is added. You must exit JD Edwards and then log back in again for any change in the Constants to take effect.

AAIsAAIs must be set up for three conditions, as shown in Table 1.

Note: No AAIs are required for Deduction Reason codes.

Customer MasterIn the Customer Master, the Auto Receipt box must be again checked, as shown in Figure 2.

Note: When a new customer is created, the Auto Receipt box is automatically checked by default. Specific customers can be turned off for Auto Receipts by un-checking the box.

Figure 1—A/R Constants Screen to Flag Auto Receipts

Reason Code Condition for AAI Setup

Write-off Reason Codes Set up the RAxx AAI for each write-off code where xx is the two digit Reason Code (e.g. MW for Minor Write-off).

Chargeback Reason Codes Set up the RCxx AAI where xx is the Reason Code, to point the Chargeback to an Accounts Receivable account. Typically, the AAI will point to the same Trade Accounts Receivable account as the regular RC AAI.

Discount Reason Codes Set up the RKDxxx AAI if all discounts are to go to a different account than shown in the regular RKD AAI.

Table 1 – Conditions for AA1 Setups with Reason Codes

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For our example, we will leave the Auto Receipts Execution List field blank. This will allow us to:

1. Avoid having to populate every Customer Master with the most commonly used Execution List.

2. Use the processing options to tell the system what the default Execution List is.

During the Auto Receipts process, the program will first check the Customer Master and use the Execution List found there. If no Execution List is found, then it will use the list specified in the processing options we’ll be discussing further in this article.

Now let’s look at the Bank Cross-Reference file.

Bank Cross-Reference FileThe Bank Cross-Reference file (F0030) is a table con-taining the customer’s bank ABA number and account number and associated address book number. The table is set up for Record Type “P” (Auto Receipts); the customer may have more than one bank account in this table for this Record Type.

Go to Accounts Receivable Setup, then click on Bank Account Cross-Reference. Click ADD. Click the Auto Receipts Payor radio button to create the “P” Record Type and then enter the customer’s bank ABA and account numbers. See Figure 3.

Click OK.

This should be done for every customer. The informa-tion can be provided by the customer or the bank, along with the customer’s name; this information is used to build a table which will retrieve the Address Book Number and then the table can be imported into JD Edwards.

Figure 2—Customer Master Revisions Screen to Check Auto Receipt Box

During the Auto Receipts process,

the program will first check the

Customer Master and use the

Execution List found there.

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When no customer number is provided in the receipt record, the system will first try to find a match based on the invoice number or other reference numbers, if provided. If no match is found and the customer’s bank ABA and account number is on the receipt record, the program will look at the cross-reference table to find the customer number. If no customer number is found, the receipt will be recorded as a Logged Receipt, requiring manual matching.

Auto Receipts AlgorithmThere are five algorithms the system can use in order to match receipts to an invoice. (Later, you’ll see that mul-tiple algorithms may be attached to an execution list.)

They are:

1. Invoice Selection Match2. Balance Forward Match3. Known Invoice Match With Amount4. Known Invoice Match Without Amount5. Combination Invoice Match

Note: When creating algorithm versions, do not change the Data Selection. This can only be done in the UBE.

JD Edwards has provided some alternate versions with different Data Selection, which may be copied and used.

CAUTION: All reason codes in the processing options, except for the Discount Reason Code, must be popu-lated, even if some will not be used. If any are missing, the program will fail.

Let’s look at each one of these algorithms in detail. Go to Daily Processing‡Automated Receipts Processing‡Define Application Algorithms.

Invoice Selection MatchThis algorithm is used when no document number or reference number is provided on the receipt record. The algorithm will:

1. Apply a receipt to a specific invoice. A match will occur if the receipt amount matches the invoice amount, less discounts if any, or if the receipt is within the write-off tolerance limit.

2. Apply a receipt to a running total of consecutive invoices beginning with the first invoice based on

Figure 3—Bank Cross Reference Data to Set Up Accounts by Address

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the due date. No invoices are skipped and, therefore, payment for non-consecutive invoices will not be matched, but will be recorded as Unapplied Cash.

3. Apply the receipt to the total balance in a customer’s account.

All three matching methods are attempted. Option 3 looks only at the total balance, so if no match occurs on the first two options, it tries the third. If there is still no match, Unapplied Cash is recorded.

For example, for the invoices shown in Table 2:

1. A receipt amount for $2,970 will pay invoice #300 assuming the discount is properly taken.

2. A receipt amount for $5,970 will pay invoice num-bers 100, 200, and 300 since they are consecutive invoices based on the due date.

3. A receipt amount for $10,000 will pay the entire balance.

4. However, a receipt amount for $7,000 will result in Unapplied Cash since it would pay invoice numbers 100, 200, and 400, skipping invoice #300.

Three versions are supplied with the software:

• Match All Invoices• Exclude Chargebacks• Only Match Chargebacks

The processing options are as follows:

Matching Tab1. Open Invoice Amount – Enter a “1” if no discounts

are to be taken. Note: If this field contains a “1” and (a) and (b) below on the Apply Tab are blank, any receipt containing a discount/short pay will be recorded as Unapplied Cash even if processing option 1 in the Apply Tab is blank.

2. Less Available Discount – enter a “1” if earned and unearned discounts are to be considered.

3. Less Earnable Discount – enter a “1” if only earned discounts are to be considered. The G/L Date must be on or before the Discount Due Date in order for the discount to be considered “earned”.

Note: One of the above fields must contain a “1” in order for a match to be attempted. If processing option 1 is blank, processing options 2 & 3 must contain a “1”. If processing option 1 is set to “1”, leave processing options 2 & 3 blank.

4. Underpaid Tolerance Amount – enter an amount that will be written off if the receipt is short by a maxi-mum of this amount.

5. Underpaid Reason Code – enter the reason code that will be used for the write-off.

6. Overpaid Tolerance Amount - enter an amount that will be written off if the receipt overpays by a maxi-mum of this amount.

7. Overpaid Reason Code - enter the reason code that will be used for the write-off.

Apply Tab1. Processing Unearned Discounts – this option tells

the system what to do if an unearned discount is taken. It can be allowed, written off, charged back to the customer, the invoice can be partially paid, or a deduction can be created

2. Reason Codes for Unearned Discounts – a. Enter the reason code if a Write-off occurs. b. Enter the reason code if a Chargeback occurs. c. Enter the reason code if a Deduction is made.

3. Grace Days – if grace days are given for discounts, enter the number of days and they will be added to the Discount Due Date for determining whether they are earned.

4. Discount Reason Code – enter a reason code in this field only if discounts, whether earned or unearned, are to be directed to a special account.

Balance Forward MatchThis algorithm is also used when no document number or reference number is provided on the receipt record.

Invoice #100 $1,000 Due 8/31/07

Invoice #200 $2,000 Due 9/5/07

Invoice #300 $3,000 Discount = $30 Due 9/8/07

Invoice #400 $4,000 Due 9/15/07

Table 2 – Sample Invoice Scenario

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This method has a high probability of paying the wrong invoice and should, therefore, be used only under special circumstances such as cash sales, since invoices are created after the sale and are not sent to customers. The algorithm will:

1. Apply receipts to invoices based on a FIFO (oldest) or LIFO (newest) method.

2. Apply receipts until either the receipt amount is zero or there are no more invoices.

3. Apply a partial receipt if not enough cash is available to close the invoice.

4. Create Unapplied Cash for the amount of an over-payment.

Two versions are supplied with the software: • Balance Forward – FIFO • Balance Forward – LIFO


Apply Tab1. Discount Recognition Method – leave blank to

process all available discounts or enter “1” for only earned discounts. The G/L Date must be on or before the Discount Due Date in order for the discount to be considered “earned”.



4. Invoice Matching Code – leave blank to match on both the Payor and Customer. This requires that the Payor and Customer numbers on the invoice match identically with the Payor and Address Number fields on the receipt record. Otherwise, enter a “1” to match only on the Payor number.

Known Invoice Match With AmountThis is the most accurate algorithm available. The receipt record must contain a document or reference number with an associated payment amount. The algorithm will:

1. Match only to the record specified on the receipt.

2. Test the processing options on the Apply Receipts tab first. If the receipt amount does not equal the apply amount, the conditions specified on this tab will result.

3. Test the Apply Invoices tab only if the Apply Receipts test contains no exceptions. Here the algo-rithm will test whether the open invoice amount is equal to the apply amount.

Only one version, Match All Invoices, is available. If you need to change the Data Selection, you must create a new version and change the UBE.


Apply Invoices Tab1. Discount Recognition Method – leave blank to

process all available discounts or enter “1” for only earned discounts. The G/L Date must be on or before the Discount Due Date in order for the discount to be considered “earned”.



4. Underpaid Tolerance Amount – enter a maximum amount which will be written-off if the invoice is short-paid.

5. Underpaid Reason Code – enter the reason code to be used for the write-off if option #4 is used.

6. Processing Underpayments – if the underpayment is more than the amount specified in option #4, then leave this option blank to create a Chargeback, enter a “1” to partially pay the invoice, or enter a “2” to create a Deduction.


If you need to change the Data

Selection, you must create a new

version and change the UBE.

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ThinkThinkJDE

7. Underpaid Reason Codes – enter a reason code for the Chargeback. Also enter a Deduction Reason Code.

8. Overpaid Tolerance Amount - enter a maximum amount which will be written-off if the invoice is overpaid.

9. Overpaid Reason Code - enter the reason code to be used for the write-off if option #8 is used.

10. Processing Overpayments – leave blank to create Unapplied Cash, which is the most commonly used option. Enter a “1” to apply the overpayment to the invoice. This will result in a negative open amount on the invoice.

Apply Receipts Tab1. Underpaid Tolerance Amount – if the receipt amount

is less than the apply amount, the maximum amount in this processing option will be written-off to the Write-Off Reason code entered.

2. Underpaid Receipt Processing – if the underpayment is greater than the tolerance amount, leave this field blank to create a Chargeback or enter “1” to create a Deduction. Enter the Chargeback and Deduction Reason codes.

3. Overpaid Tolerance Amount - enter a maximum amount which will be written-off if the invoice is overpaid.

4. Overpaid Reason Code - enter the reason code to be used for the write-off if option #3 is used.

Amount Match Tab1. Duplicate Invoice Match – leave this field blank if

you do not want to match against any invoices that have duplicate document numbers. One way this can occur is if you have Next Numbers set up by Com-pany/Fiscal Year and multiple companies use the same address number. By entering a “1”, the system will match against the document number that has the closest amount to the receipt.

2. Tolerance – leave this field blank if you do not want to use the tolerances specified on the Apply Invoices Tab. All invoices are processed and then the system determines whether underpayments or overpayments are applicable. This is the commonly used option. Enter “1” to use the tolerances. If the invoice amount exceeds the tolerances, then processing will stop.

Match Priority Tab1. Match Process – this option determines the order in

which invoices are selected for matching. The choices are:

a. Invoice Number b. Sales Order Number c. Customer Reference Number d. Statement Number e. Shipment Number

If you leave all fields blank, the system will use all of the above choices in that order. To select only the choices you need, enter 1 to 5 to specify the order, where 1 is the first choice, 2 is the second choice, etc.

The Invoice Number must be in the Invoice Number field on the receipt record. The Sales Order, Cus-tomer Reference, Statement and Shipment Numbers must be shown in the Generic Matching Field on the receipt record. In addition, if the Customer Reference Number is used, it must also be shown in the Refer-ence field on the invoice.

Discount Tab1. Reduce Discount – By entering a “1”, the discount

amount will be reduced by the amount of an over-payment on an invoice. If you leave this field blank, the discount will not be reduced and the amount of the overpayment will be written-off using the Reason Code entered on the Apply Invoices tab.

Known Invoice Match Without AmountThis algorithm is used if the bank supplies one receipt amount for a customer paying multiple document num-bers. This is the only case where the Apply Amount on the receipt record should be blank for each document number listed. The algorithm will take the total receipt amount and try to match it against all listed document numbers.

Only one version, Match All Invoices, is available. If you need to change the Data Selection, you must create a new version and change the UBE.


Apply Invoices Tab1. Discounts Recognition Method – leave blank to pro-

cess all discounts whether earned or unearned. Enter “1” to accept only earned discounts. The G/L Date must be on or before the Discount Due Date in order for the discount to be considered “earned”.


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Apply Receipts Tab1. Underpaid Tolerance Amount – enter a maximum

amount which will be written-off if the invoice is short-paid. If the receipt amount is less than the total amount of the open invoices listed on the receipt record by no more than the tolerance amount, the system will create a stand-alone write-off for the difference.

Enter the Write-off Reason Code to be used if the toler-ance is not exceeded.

2. Underpaid Receipt Processing – leave blank to create a Chargeback or enter “1” to create a Deduction. This processing option is used when the underpaid tolerance is exceeded. Enter the Chargeback and Deduction Reason Codes.

3. Overpaid Tolerance Amount – enter a maximum amount which will be written-off if the invoice is overpaid. If the receipt amount is more than the total amount of the open invoices listed on the receipt record, but not more than the tolerance amount, the system will create a stand-alone write-off for the difference. If the overpayment exceeds the tolerance amount, all listed invoices will be paid and the dif-ference will be recorded as Unapplied Cash.

4. Overpaid Reason Code – enter the Write-off Reason Code to be used if the tolerance is not exceeded.

Match Priority Tab1. Match Process – this option determines the order

in which invoices are selected for matching. The choices are:


If you leave all fields blank, the system will use all of the above choices in that order. To select only the choices you need, enter 1 to 5 to specify the order where 1 is the first choice, 2 is the second choice, etc.

The Invoice Number must be in the Invoice Number field on the receipt record. The Sales Order, Cus-tomer Reference, Statement, and Shipment Numbers must be shown in the Generic Matching Field on the receipt record. In addition, if the Customer Reference Number is used, it must also be shown in the Refer-ence field on the invoice.

Combination Invoice MatchThis algorithm will add together a maximum of ten invoices in order to get a match. There are no toler-ances, so if an exact match is not made, Unapplied Cash will result.

Two versions are supplied with the software: • Match All Invoices • Match Invoices By Exclusion


Matching Tab1. Open Invoice Amount – enter a “1” if no discounts

are to be taken. Note: If this field contains a “1” and (a) and (b) below on the Apply Tab are blank, any receipt containing a discount/short pay will be recorded as Unapplied Cash, even if processing option 1 in the Apply Tab is blank.

2. Less Available Discount – enter a “1” if earned and unearned discounts are to be considered.

3. Less Earnable Discount – enter a “1” if only earned discounts are to be considered. The G/L Date must be on or before the Discount Due Date in order for the discount to be considered “earned”.

Note: One of the above fields must contain a “1” in order for a match to be attempted. If processing


The Invoice Number must be in

the Invoice Number field on the

receipt record.

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option 1 is blank, processing options 2 and 3 must contain a “1”. If processing option 1 is set to “1”, leave processing options 2 and 3 blank.

4. Match By Exclusion – a special version is set up for this option. If selected, this option will subtract the total open balance in the customer’s account from the receipt amount and attempt to find the invoices that match the difference and will leave those invoic-es open and pay the rest. This is useful if the cus-tomer traditionally pays most of the open invoices.

5. Credit Memos Included – leave blank to not include credit memos in the combination process or enter “1” to include them.

Apply Tab1. Processing Unearned Discounts – five options are

available: a. Blank = allow unearned discounts b. 1 = create a write-off c. 2 = create a Chargeback d. 3 = partially pay the invoice e. 4 = create a Deduction

2. Reason Codes for Unearned Discounts – enter reason codes for write-off, Chargebacks, and Deductions.



Performance Tab1. Invoice Review Limit – enter the number of invoices

you wish to select for a possible combination match. Maximum is 10 invoices.

2. Invoice Combination Limit – enter the number of combinations you wish the system to perform based on the number of invoices selected in option #1. Maximum is 10. Usually this number is the same as entered in option #1 to maximize the chances of a match.

Define Execution ListThe next step is to tell the system, by means of an Execution List, what algorithms will be used and in what order they will be processed. Once the algorithm

versions are created and the processing options are determined, you can then attach them to the Execution List.

Go to Daily Processing‡Automated Receipts Processing‡Define Execution Lists. Click ADD.

Enter a name for the Execution List and a descrip-tion. Then select the Base Method (algorithm) to be used first. Click on Select Version in the Row exit and double-click on the desired version to bring it into the list. Repeat this process for all algorithms/versions you need.

Note: An Execution List may contain as many or all algorithms as you may require. Separate Execution Lists may be set up for specific customers and attached to their Customer Master. The most widely used Execu-tion List need not be assigned to Customer Masters, but instead be attached to the processing option for the Update Receipts Header program discussed later.

Figure 4 shows an Execution List called “STAN-DARD”, which will be used as the default if you don’t have your own list. Execution Lists should be named in such a way as they describe the type of customer they apply to; e.g., CASH for cash sales customers or STEEL for steel customers, etc.

The algorithms are listed in priority order. The top priority is the algorithm Known Invoice With Amount, which has the highest degree of success; the Known Invoice Without Amount algorithm is the second most successful. Both of these algorithms contain specific document numbers. Next in line are the Invoice Selec-tion Match and two versions of the Combination Invoice Match. Not shown is the Balance Forward Match, since we do not want to pay off an invoice simply because of its age. This could cause a problem between you and your customer if you pay off an invoice he or she didn’t intend to.


An Execution List may contain

as many or all algorithms as you

may require.

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Update Receipts HeaderThis program reads the Electronic Receipts file (R03B13Z1) and records all receipt records as Unap-plied Cash in the Customer Ledger.

Go to Daily Processing‡Automated Receipts Processing‡Update Receipts Header.


Defaults Tab1. G/L Date – this date will be used if no G/L Date is

specified on the receipt record. Alternatively, you may leave this field blank and use processing option #2.

2. Blank G/L Date Option – if processing option #1 is blank and there is no G/L Date on the receipt record, the system date will be used if this option is blank. Enter “1” to use the Batch Date.

3. Company – if no company is shown on the receipt record, the company entered here will be the default. If this field is blank, the company of the customer’s business unit will be used.


4. Short Bank Account ID – if no default G/L bank account is shown on the receipt record, the short ID shown here will be the default.

Note: The G/L Date, Company, and Bank Account are required fields and, therefore, must be shown either on the receipt record or the above processing options.

5. Clerk ID – this field represents the User ID of the person designated as the “clerk” and is used if you wish to run the Apply Receipts to Invoices program by clerk ID. This field is typically left blank and so the person’s User ID running this program will be used.

6. Address Number – if no address number can be located for a receipt, the address number shown here will be used as the default. This field is usually left blank so that a logged receipt is recorded.

7. Draft Receivables Account – if processing drafts, this is the Drafts Accounts Receivable account in BU.Object.Sub format. If left blank, as is normally done, the RD1x AAI will be used.

Figure 4—Execution List

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8. Draft Due Date – you may enter a specific draft due date, or if left blank the receipt date will be used. If no receipt date is shown on the receipt record, the G/L Date will be used.

9. Execution List – enter the default Execution List. Here we would enter STANDARD as created above. This list will be used only when no list is found on the Customer Master.

10. Default G/L Offset for Unapplied Receipts – enter a “1” to use the G/L Offset shown on the Customer Master for recording the Accounts Receivable account for Unapplied Cash. If none exists, the sys-tem will use the RCUC AAI. Typically, this field is left blank so that only the RCUC AAI will be used.

Process Tab1. Draft Upload – leave blank if you are creating receipt

records or enter “1” if creating drafts.

2. Process Marked Receipts – leave blank to process all receipts or enter “1” to process only those receipts with a status of “B” (discussed later).

3. Journal Entry Creation Method – leave blank for summarized entries or enter”1” for detailed entries.

Note: Summarized entries can only be made if the Constants are set to Batch Mode (B) and the Intercompany Settlements are not set to 2 (detail). Additionally, no foreign transactions are allowed. One entry will be made for the entire batch with a document type of RK. If these criteria are not met, the system will automatically create detailed entries with a document type of RC.

Versions Tab1. Run Apply Receipts to Invoices (R03B50) – enter “1”

to automatically run the application program after the update is completed. Leave blank to manually run.

2. Apply Receipts to Invoices Version. – if option #1 is set to “1”, enter the version of the Apply Receipts program to automatically run.

Updates Tab1. Bank Account Information – enter “1” if you want

the system to update the customer bank account cross-reference file if the customer changes banks or accounts. The address number must be on the receipt record in order for this to occur.

2. Bank Reference Type – leave blank to update the payor’s bank information or enter “1” to update the customer’s bank information. This option only applies if option #1 is set to “1”.

3. Payor Locator Method – if the customer’s address number is not in the receipt record or cannot be located in the bank cross-reference file, this process-ing option determines the order in which the system can alternatively try to find it. The methods are:


If no document numbers or reference numbers exist on the receipts record, the system will use processing option #6 on the Defaults Tab. If no address number is specified there, a logged receipt will be recorded.

4. Open Amount – leave blank to create a draft with an open amount. Enter “1” to create a draft without an open amount to use as a memo or placeholder only. No payments can be made against it, nor can aging occur.

Apply Receipts To InvoicesThis program take the Unapplied Cash recorded by the Update Receipts Header program and tries to apply it against open invoices. If no match occurs, the receipt remains as unapplied.


Defaults Tab1. Execution List – enter the default Execution List to

use if none is shown in the Customer Master. This should be the same list as shown in the Update Receipts Header program.

2. Default G/L Offset for Unapplied Receipts – enter a “1” to use the G/L Offset shown on the Cus-tomer Master for recording the Accounts Receiv-able account for Unapplied Cash. If none exists, the system will use the RCUC AAI. Typically, this field is left blank so that only the RCUC AAI will be used.

3. Override G/L Date – leave blank to keep the G/L Date shown on the receipt record. Enter “1” to over-ride it. This is useful if you have cash sales and the receipt is recorded before the invoice is generated.


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4. G/L Date to Use for Override – if using option #3 above, enter the override date.

Process Tab1. Draft Processing – leave blank to process receipts or

enter “1” to process drafts.

2. Process Manual Receipts – leave blank to process only Unapplied Cash created through automated receipts or enter “1” to process all Unapplied Cash whether created automatically or through manual receipt entry.

3. Process Unmatched Receipts – enter “1” to pro-cess Unapplied Receipts from a previous run that did not find a match and where the Electronic File (R03B13Z1) contains records with a status of “B”. The system will try to reprocess these records to find a match. Leave this option blank to not include these records.

EDI – Update Electronic ReceiptsThis program will take the 823 lockbox records and load them into the Electronic File (R03B13Z1). This program reads the data from the bank, and loads it into your JDE A/R system prior to running the batch Cash Application program.

Create a version by going to Automated Receipts Processing‡Lock Box (823)‡Update to Electronic Receipts. Copy version XJDE0001 - EDI Lockbox Edit/Create.

The processing options are:

Defaults Tab1. Short Bank Account ID (Required) – enter the short

ID for the bank records being processed.

2. G/L Date – enter a G/L Date to use if no date exists in the EDI Lockbox Header – Transaction file (F47112). If left blank, the system date will be used.

3. Payment Instrument – this is optional and may be left blank.

Process Tab1. Process Mode – leave blank for proof mode or enter “1” for final mode.

Processing Automated ReceiptsNow that the setup is completed, you can run the pro-grams to process the receipts. The steps are as follows:

1. Run the EDI – Update Electronic Receipts program (R47111).

2. Review the Electronic Receipts table (R03B13Z1). Go to Automated Receipts Processing‡Review Electron-ic Receipts. Make sure all required data is received from the bank. The Upload Status should be blank.

3. Run the Update Receipts Header program (R03B551). The resulting report should say: All algo-rithms were successfully processed – No Exceptions.

4. Run the Apply Receipts to Invoices program (R03B50) if not automatically run by the Update Receipts Header program. The resulting report should say: All algorithms were successfully pro-cessed – No Exceptions.

5. If there is an error in processing, it usually means that a Reason Code was missing from one of the pro-cessing options or a Customer Master is missing.

The Execution List will be read beginning with the first priority and will stop reading the list when a match occurs.

After all programs have been run, the final step is to review the results. To do this:

1. Check the Electronic File Update Status. All suc-cessfully updated records will show a “Y”. If a status shows “H”, the receipt was recorded as Unapplied Cash because the data on the receipt record was in error; e.g., an incorrect document number was provided. Unapplied Cash can also result in a status of “Y” if the invoice was overpaid. In this case, the algorithm was told to create the Unapplied Cash and it was, therefore, a successful update. If a status shows “E”, an error occurred and the record could not be processed.

2. Open the Standard Receipts Entry form and click the “Unapplied” button. Limit the dates to those on the receipt record and then click FIND. Unapplied


Now that the setup is completed,

you can run the programs to

process the receipts.

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Cash can be manually applied to invoices or go to the Electronic File record and change the Upload Status to “B”. This will allow these records to be reprocessed.

3. Finally, on Standard Receipts Entry click the “Logged” button and limit the dates to those on the receipt record and then click FIND. Correct any logged receipts.

4. Run the Receipts Journal Report (R03B311) and/or the Receipts Activity Register (R03B560).

5. Open the Universal Table Browser (UTB) and the F03B13 file. Look for the following fields:

a. Field RYARL will show the Execution List used to apply the automated receipt.

b. Field RYALGO shows the algorithm used. c. Field RYVERS shows the version of the algo-

rithm used.

It may be useful to add these fields to the Receipts Jour-nal Report and/or the Receipts Activity Register since

this is the only way you can see what Execution List, algorithm, and version were used to process the receipt.

Let’s use an example to show this.

This customer has six open invoices (see Figure 5). These will all be paid as follows: The execution list determines which algorithm will be used first. If no match occurs, the system goes on to the next algorithm, and so on.

• Invoice #153 will be paid on the Discount Due Date for $3,960.00.

• Invoices #154 and #152 will be short-paid for a total of $17,820.00.

• Invoices #155, #156 and #157 will be short paid by the allowable write-off amount and no invoice numbers will be specified on the receipt. The total receipt amount is $19,235.00.

Figure 5 – Customer Ledger Open Invoices


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The Electronic Receipts File (see Figure 6) shows the three receipt records received from the bank.

After running the Update Receipts Header (see Figure 7) and Apply Receipts to Invoices (see Figure 8) pro-

grams, the outputs, as shown in Figure 9, are gener-ated; these outputs must indicate that no exceptions (i.e., errors) exist.

Figure 6 – Electronic Receipts File

Figure 7 – Update Receipts Header

Figure 8 – Apply Receipts to Invoices


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The Electronic Receipts File, as seen in Figure 10, now shows a status of “Y”, indicating a successful upload.

Finally, the UTB (see Figure 11) shows what Execution List, algorithm, and version were used in the process-ing of these receipts.

Figure 9 – Customer Ledger After Receipts Are Applied

Figure 10 – Electronic Receipts File


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In Figure 11, we see that the three receipts (450, 451 & 452) were processed using the Standard Execution List: • Receipt #450 used algorithm R03B50D (Known

Invoice Match With Amount) and version XJDE0001.

• Receipt #451 used algorithm R03B50E (Known Invoice Without Amount) and version XJDE0001.

• Receipt #452 used algorithm R03B50A (Invoice Selection Match) and version XJDE0001.

In Figure 12, we see the invoice was paid within the Discount Due Date and so the discount was accepted.

In Figure 13, we see the discount taken was unearned and so a Deduction was created.

In Figure 14, we see the receipt was short-paid by $5.00, which is within the allowed tolerance amount and so it was written-off.

Figure 11 – Universal Table Browser (UTB)

Figure 12 – Receipt #450


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Conclusion Using Automated Receipts will allow you to process a large volume of receipts, direct exceptions to a Deduc-tions Manager, create Chargebacks for unearned discounts and write-off minor differences. This will free up a lot of time for researching and correcting Unapplied Cash and doing other day-to-day tasks. The key to success is getting as much information from the bank as possible and developing strategies and poli-cies that will be handled by the algorithm processing options. These strategies and policies will drive your setup decisions; e.g., do you want to create a Deduc-tion for an exception or create a Chargeback? With the information provided in this article, making such an informed decision should be much easier.

Bob DeMartino, Demarco Consulting, LLC has over 25 years of experience in general, cost, and interna-tional accounting. For the past twelve years, he has been implementing the JD Edwards financials software traveling domestically and to over a dozen countries. His experience includes World and OneWorld (Enter-priseOne) in General Accounting, Accounts Receivable, Accounts Payable, Fixed Assets, and Job Cost. He also has written many custom reports in FASTR, World Writer, STAR, and Enterprise Report Writer. You may contact the author at [email protected]. Be sure to mention the author’s name and/or the article title. ≈


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License Information: The use of JDE is granted to Klee Associates, Inc. by permission from J.D. Edwards World Source Company. The information on this website and in our publications is the copyrighted work of Klee Associates, Inc. and is owned by Klee Associates, Inc. NO WARRANTY: This documentation is delivered as is, and Klee Associates, Inc. makes no warranty as to its accuracy or use. Any use of this documentation is at the risk of the user. Although we make every good faith effort to ensure accuracy, this document may include technical or other inaccuracies or typographical errors. Klee Associates, Inc. reserves the right to make changes without prior notice. NO AFFILIATION: Klee Associ-ates, Inc. and this publication are not affiliated with or endorsed by J.D. Edwards & Company. J.D. Edwards software referenced on this site is furnished under license agreements between J.D. Edwards & Company and their customers and can be used only within the terms of such agreements. J.D. Edwards is a registered trademark of J.D. Edwards & Com-pany. JDE and OneWorld are registered trademarks of J.D. Edwards World Source Company. WorldSoftware is a trademark of J.D. Edwards World Source Company. PeopleSoft, the PeopleSoft logo, PeopleTools, PS/inVision, PeopleCode, PeopleBooks, PeopleTalk, and Pure Internet Architecture are registered trademarks, and Intelligent Context Manager and The Real-Time Enterprise are trademarks of PeopleSoft, Inc. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Klee Associates, Inc. is not affiliated with or endorsed by Oracle Corporation.

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