JD Edwards EnterpriseOne - Accounts Receivable Drafts

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Upcoming: JD Edwards EnterpriseOne Accounts Receivable Drafts
Oracle Advisor Webcast

JD Edwards EnterpriseOne Accounts Receivable Drafts
Fio Chiarini
Sr. Support Engineer
August 19, 2015
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Oracle Advisor Webcast

JD Edwards EnterpriseOne Accounts
Receivable Drafts
Fio Chiarini
Sr. Support Engineer
August 19, 2015
Objectives
After todays Presentation you should know:
What are drafts?

What is the cycle of drafts?
Different types of drafts.
How to set up the system for draft processing.
How to process a draft.
11

Agenda
1
Overview
Setup
Processing
Resources
Questions and Answers
12

Agenda
1
Overview
Setup
Processing
Resources
13
1. A/R Drafts Overview

What Are Drafts?
Drafts are a promise to pay an obligation, like for example an invoice:
Your customer promises you (by returning the slip at the bottom of an invoice or a
statement or via a credit card slip), that there will be enough money in their bank accounts
to pay the invoice.
Drafts can go by different names in different parts of the world.
For example, in the Asia Pacific region they are used for post-dated checks, whereas in the
US they are used for credit card payments.
Drafts allow for direct communication between your bank and the bank of your supplier or
customer.
14

The Cycle of Drafts
Your bank notifies you - draft
can now be closed .
R03B680
Draft Entered (aka Accepted) Invoice

is closed.
P03B602 or R03B671
Draft Sent to Your Bank (aka
remitted).
R03B672 calling R03B672xx
Your customers bank

sends notification of
approval to your bank.
Your customer
approves.
Your customers bank asks

for approval from, or just
notifies your customer of
the impending payment of
the invoice.
Request for payment sent

from your bank to your
customers bank.
15

Types of Drafts
Customer-generated draft.
Supplier-generated draft.
Credit card payment.
Discounted draft.
Contingency liability.
16

Draft or Auto Debit?
Difference between drafts and auto debits:
Drafts are authorized separately for each invoice (like swiping your credit card).
Note: pre-authorized drafts are the result of a pre-authorized agreement between you
and your customer that the payment instrument of drafts will be used for any invoices
that will be issued. The drafts still need to be authorized officially when issued for an
invoice.
Auto Debits are pre-authorized agreements with a supplier (like Auto Pay in the US).
17

What Does the System Do when Processing Drafts?
1.
Draft acceptance:
a) Customer Ledger (F03B11):
i. The invoice record is closed.
ii. An R1 placeholder record is created to remind you that you have sent a drafts file to the
bank, but have not yet received confirmation that your customer actually paid.
a) Receipts Header (F03B13):
i. A draft header record is created with draft status of 4 and posted status of blank.
NOTE: The posted code remains blank, even if the draft is posted, until the draft is collected.
b) Receipts Detail (F03B14):
i. Draft detail record(s) are created for each invoice paid on the draft.
ii. These records have a draft status of 4.
18

What Does the System Do when Processing Drafts? - Continued
2.
Draft remittance:
a) Receipts Header (F03B13):
i.
The draft status changes to 3.
b) Text File Processor Header (F007101) &
Text File Processor Detail (F007111):
i.
Header and detail records are created
for the electronic file to be sent to the
bank.
c) Receipts Detail (F03B14):
i.
Two new records are created, one
with draft status 3, and the other with
draft status 4.
3.
Draft collection:
a) F03B13:
i. draft status changes to 0.
ii. posted code changes to D.
b) F03B11:
i. R1 placeholder record is set to paid.
c) F03B14:
i.
Two new records are created, one
with draft status 4, and the other with
draft status 0.
19

General Ledger Entries
0. Invoice Creation
A/R
Revenue
Trade
Account(s)
10,000.00
10,000.00
2. Draft Remittance
Drafts
Drafts
Remitted
Receivable
10,000.00
10,000.00
1. Draft Acceptance
Drafts
A/R
Receivable
Trade
10,000.00
10,000.00
3. Draft Collection
Bank
Account
10,000.00
Drafts
Remitted
10,000.00
20

Agenda
1
Overview
Setup
Processing
Resources
21
2. A/R Drafts Setup

Required Setup
1.
Automatic Accounting Instructions (AAIs)

RD1x, RD2x, RD3, RD4 and RD5
2.
Customer
Payment instrument
Bank account information
3.
Company
G/L bank account information
4.
Draft Remittance UBE(s)

Processing options
22
2. A/R Drafts Setup

1. AAIs P0012
RD1x, RD2x, RD3, RD4
and RD5 AAIs (x is the
payment instrument,
optional).
23
2. A/R Drafts Setup

2. Customer
Customer Master - P03013
Payment Instrument
24
2. A/R Drafts Setup

2. Customer
Customer Bank Account P0030A
Record Type
25
2. A/R Drafts Setup

3. Company
G/L Bank Account - P0030G
26
2. A/R Drafts Setup

4. Draft Remittance UBE(s)
Set processing options as
desired on the version(s)
that will be used;
the processing options
shown are those for
R03B672T, version
XJDE0001.
27

Agenda
1
Overview
Setup
Processing
Resources
28
3. A/R Drafts Processing

Processing a Draft
1.
Overview How to Process a Draft
2.
Create the Draft

Preauthorized Drafts
Enter Customer Drafts
3.
Remit the Draft
4.
Collect and Close the Draft
5.
Exceptions to the Rule
29
3. A/R Drafts Processing

1. Overview How to Process a Draft
1.
Enter an invoice and post it.
2.
Using either Preauthorized Drafts (R03B671) or Enter Customer Drafts (P03B602 | ZJDE0002), create
a draft for the invoice, and post it.
3.
Using Draft Remittance (R03B672) in proof mode, to remit the draft.
4.
Verify the PDF; if correct run R03B672 in final mode (this creates either paper drafts or a text file to
send to the bank).
5.
Send the paper drafts or the text file to your bank.
6.
Post the resulting DB type batch (different batch number than when the draft was created).
7.
Once confirmation and payment are received from the customers bank via your bank, run A/R Draft
Collection (R03B680) to close the draft.
8.
Post the resulting DB type batch (different batch number than when the draft was created and
remitted).
30
A/R Drafts Processing

2. Create the Draft
1. Use Preauthorized Drafts (R03B671) to create the draft.
P03B2002/P03B11
31

2. Create the Draft - Continued
R03B671 Processing Options
32

33

1.
2. Use Enter Customer Drafts

(P03B602/ZJDE0002) to create the
draft.
34

35

36

3. Remit the Draft
1.
Run Draft Remittance (R03B672) in proof mode.
37

3. Remit the Draft Continued
38

3. Remit the Draft - Continued
39

40

2.
Run R03B672 in final mode (this creates either paper drafts or a text file to send to the bank).
41

P007101
42

P007101
43

P03B602
44

4. Collect and Close the Draft
Once confirmation and payment are received from the customers bank via your bank, run A/R
Draft Collection (R03B680) to close the draft.
R03B680 - Processing Options:
45

4. Collect and Close the Draft - Continued
46

47

Run A/R Draft Collection (R03B680) in proof mode.
48

Run A/R Draft Collection (R03B680) in final mode.
49

5. Exceptions to the Rule
If for whatever reason the draft has to return to an earlier status, i.e. it currently is in remitted
status (3) or in Collected status (0), inquire on the draft via P03B602 and use row exit Prior Status
to return it to the prior status.
Note: If the draft has to go from status 0 to 4, you need to do this twice.
If the client does not have enough money in the bank account they indicated/specified for this
invoice/draft, and the draft needs to be voided, use the NSF functionality in P03B602 for this:
1. Inquire on the draft via P03B602 and take row exit NSF.
2. Confirm deletion.
3. Enter a reason code and a (Void/NSF) GL date.
4. Decide if this should be a partial NSF or not, if you want a renewal draft created, and if you
want a journal entry (with or without VAT) created for this.
5. Click on OK and post the resulting DB type batch.
50

5. Exceptions to the Rule - Continued
Exception: Return a draft to an earlier status.
P03B602
Before any change
Step 1
51

Exception: Return a draft to an earlier status.
Step 2
P03B602
Step 3
52

Exception: Void a draft due to non-sufficient funds (NSF).
Before any change
P03B602
53

P03B602
Step 2
Step 1
54

Step 3
P03B602
55

Step 4
P03B602
56

Agenda
1
Overview
Setup
Processing
Resources
57
Top Articles
How To Set Up and Process Drafts In

EnterpriseOne Accounts Receivable (P03B602,
R03B671, R03B672, R03B680) (Doc ID
760933.1)
Frequently Asked Questions on Accounts
Receivable Draft Processing (P03B602,
R03B671, R03B672, R03B680) (Doc ID
965170.1)
Information Center: Using the JD Edwards
EnterpriseOne Accounts Receivable Product
(Doc ID 1489295.2)
58
Session Related Links

Continue the discussion on the My Oracle Support
Community! Post your follow-up questions, share your
comments, and continue the Q&A after the presentation.
(All of the Q&A posted here)
https://community.oracle.com/thread/3746096
Presentation document (PDF) and recording: (PDF has
already posted & recording within 24 hours)
https://community.oracle.com/docs/DOC-916941
Oracle Support Document 2022519.1 (ADVISOR
WEBCAST: JD Edwards EnterpriseOne Accounts Receivable
Drafts) can be found at:
https://support.oracle.com/rs?type=doc&id=2022519.1
59
Summary
What we covered today
Drafts are a promise to pay an obligation, can go by different names, and allows your
bank to communicate directly with your customers banks.
The cycle of drafts is entering a draft via P03B602 or R03B671, creating a file to send
to your bank via R03B672 and R03B672xx, communication between your bank and
your customers banks, and then closing the draft via R03B680 or voiding it using NSF.
Different types of drafts are supplier or customer generated drafts, post-dated
checks, credit card payments, and so on.
How to set up the system for draft processing, and then how to process a draft
following the cycle of drafts.
60
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Locating Current Schedule & Archived Recordings
From Note ID : 740966.1 drill down to your area of interest
JD Edwards EnterpriseOne Note ID : 1450327.1
Continued Discussions:
https://community.oracle.com/thread/3746096
Document and Recording:
https://community.oracle.com/docs/DOC-916941
Oracle Support Document 2022519.1 (ADVISOR WEBCAST:
JD Edwards EnterpriseOne Accounts Receivable Drafts) can
be found at:
https://support.oracle.com/rs?type=doc&id=2022519.1
Oracle Support Document 1905810.1 (JD Edwards EnterpriseOne: Compensation Management Fundamentals) can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=1905810.1
Register for an upcoming JD Edwards EnterpriseOne Advisor Webcasts

Advisor Webcast JD Edwards EnterpriseOne Schedule and Archived Recordings (Doc ID 1450327.1)
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Oracle Advisor Webcast

August 19, 2015

Copyright 2015, Oracle and/or its affiliates. All rights reserved. |

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Where Can I Get The Slides From This Session?

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Accessing My Oracle Support Community

Via My Oracle Support -> Community Tab

Copyright 2015, Oracle and/or its affiliates. All rights reserved. |

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Copyright 2015, Oracle and/or its affiliates. All rights reserved. |

Oracle Advisor Webcast

What are drafts?

Copyright 2015, Oracle and/or its affiliates. All rights reserved. |