JD Edwards Accounts Receivables helps you to manage receivables for goods and services sold to customers. It
maintains a detailed record of invoices, both open and closed as well as credits due to the customer. When
the customer makes payments, it records these payments against the correct invoice.
The primary functions of the Accounts Receivable (A/R) system include:
The customer master is the repository for all data that JD Edwards clients need to transact business with
customers. Customer master integrates with the Address Book in JD Edwards to store address information
(for both shipping and billing), and relationships to subsidiary companies which may also be customers.
Customer Master itself also contains a great variety of information including payment terms, bank information, credit limits, shipping preferences; essentially, all of the details needed to do business with that customer.
The A/R Sub-Ledger is the on-line source for all receivable transactions with a customer. It provides
detailed information about invoices, both open and closed. When the customer remits payment, the A/R
Ledger tracks all payments and partial payments against the invoices to which they apply.
When there are exceptions, the A/R Sub-Ledger can manage voids, NSFs, disputed billings, and a variety of write-off and adjustment transactions.
When customers remit payments, it is important that they be applied to the proper invoices and in a timely manner. The Cash Application function facilitates this, supporting both manual and automated "matching" of a payment to one or more open invoices. If a matching open invoice does not exist, the system allows you to post this as "unapplied cash" until a matching invoice is available.
If all of your customers pay on time and in full, you can skip this part! For the other 99% of us, Credit and Collections functionality starts by maintaining and monitoring credit limits to manage the JDE client's total exposure to each customer. You may also choose to send dunning letters or "friendly reminders". If desired, the system can also assess fees for late invoices and maintain these interest invoices on the A/R Sub-Ledger.
Sometimes a customer will "short pay" an invoice for some reason other than a terms discount. For other situations where it is determined that the invoice is not going to be paid in full, Deduction Processing helps you to research and maintain information on these invoices. Ultimately, you may have to write off a portion of the invoice. In these cases, Deduction Processing gives you the flexibility to handle these deductions with a variety of different accounting treatments.
Sometimes you have an arrangement with a customer to pay from a monthly statement rather than from individual invoices. Or, you may optionally send statements as a recap of the previous month's transactions. In either case, you can set up the Accounts Receivable system to send statements automatically at specified intervals. This can be done for all customers or only for those customers who wish to receive a statement.
This is brief review of the components and processes associated with the JDE AR module.
For more information, a 4-day course taught by JDEtips is recommended.
Learn more about JD Edwards Accounts Receivable:
JDEtips University Accounts Receivable Course Description
Training Manual Table of Contents and Training Manual Sample Chapter.
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