Hi Champions,
Need your thoughts on this....
Our client wants to de-link AR and abandon the module.
The transactions as well as the receipts are to be put into GL directly <img src=images/speech/icon_speech_sigh.gif border=0 width=27 height=15> from the future
AR is currently in use and there are:
<ul><li>Open Transactions </li><li>Un-applied Receipts </li><li>Un-identified receipts </li><li>Miscellaneous transactions etc </li></ul>
Cash Management module is used to reconcile bank statements.
What do you think would be the steps for a clean severance as on a cut off date?
We also need to ensure that there is no problem with bank reconciliation for the unreconciled transactions
the version in use is 11.5.10.2
Many Thanks
De-linking AR
Yeah. thats the idea.
This is because our client has decided to factor the receivables and maintain only one customer i.e. the factoring agent.
The objective would be to raise a single invoice and receive a single payment against this. the break-up of the payments and the customer Database would be maintained by the Factoring agent.
Therefore the users have raised an objection to using a separate module for just these few transactions. hence the requirement.
Hope i have clarified my position
Need your inputs on how to do a clean severance
Regards,
This is because our client has decided to factor the receivables and maintain only one customer i.e. the factoring agent.
The objective would be to raise a single invoice and receive a single payment against this. the break-up of the payments and the customer Database would be maintained by the Factoring agent.
Therefore the users have raised an objection to using a separate module for just these few transactions. hence the requirement.
Hope i have clarified my position
Need your inputs on how to do a clean severance
Regards,
-
pinnashanmukh
- Posts: 49
- Joined: Thu Feb 15, 2007 5:57 am
- Location: India
Hi,
When AR is delinked there will not be any balances mainted for the customers and there will not be any concept of application ( un applied receipts, un identified receipts) & there will not be any track on how much is received for what invoices.
Still if they want to delink, Just ensure that:
1) there are no transactions @ un applied or un identified receipt state
2) Run the aging report and check only one customer is having the balance
3) Transfer all the accounting transactions to GL
4) Close the period
I think above things are fair enough to delink the AR module.
Future transactions can be managed through GL. Give the receipt number in the GL Journal line description it will ensure the reconciliation process easier.
Thanks,
Shanmukh
When AR is delinked there will not be any balances mainted for the customers and there will not be any concept of application ( un applied receipts, un identified receipts) & there will not be any track on how much is received for what invoices.
Still if they want to delink, Just ensure that:
1) there are no transactions @ un applied or un identified receipt state
2) Run the aging report and check only one customer is having the balance
3) Transfer all the accounting transactions to GL
4) Close the period
I think above things are fair enough to delink the AR module.
Future transactions can be managed through GL. Give the receipt number in the GL Journal line description it will ensure the reconciliation process easier.
Thanks,
Shanmukh
Champions,
I have drawn up a brief check-list for this task (i.e de-link AR). Require your inputs and comments please.
1. All transactions prior to the cut off date are entered in AR.
2. All receipts prior to the cut off date are entered in AR
3. Ensure that there no unidentified and unapplied receipts. This means that as far as possible all receipts must be matched with the transactions.
4. Reconcile all receipts with the bank statement.
5. Run Transfer to GL
6. Post all transactions in GL
7. Run a trial balance and note the contents of the following accounts:
<ul><li>Unidentified Receipts </li><li>Unapplied Receipts </li><li>Confirmed Receipts </li><li>Remitted Receipts </li></ul>
8. Balance, if any, in the above accounts needs to be adjusted against the receivables account.
9. Enter Manual JV transferring balances of the above accounts (Item 7 above) to the receivables accounts. Caution: Individual off-set of customer balance outstanding is not possible though GL. The total outstanding receivables balance can only be reduced. There will not be any track on how much is received & applied against each invoices.
10. After ensuring that there are no transactions pending transfer from AR to GL, put an end date to all the AR responsibilities.
Have i missed something?
I have drawn up a brief check-list for this task (i.e de-link AR). Require your inputs and comments please.
1. All transactions prior to the cut off date are entered in AR.
2. All receipts prior to the cut off date are entered in AR
3. Ensure that there no unidentified and unapplied receipts. This means that as far as possible all receipts must be matched with the transactions.
4. Reconcile all receipts with the bank statement.
5. Run Transfer to GL
6. Post all transactions in GL
7. Run a trial balance and note the contents of the following accounts:
<ul><li>Unidentified Receipts </li><li>Unapplied Receipts </li><li>Confirmed Receipts </li><li>Remitted Receipts </li></ul>
8. Balance, if any, in the above accounts needs to be adjusted against the receivables account.
9. Enter Manual JV transferring balances of the above accounts (Item 7 above) to the receivables accounts. Caution: Individual off-set of customer balance outstanding is not possible though GL. The total outstanding receivables balance can only be reduced. There will not be any track on how much is received & applied against each invoices.
10. After ensuring that there are no transactions pending transfer from AR to GL, put an end date to all the AR responsibilities.
Have i missed something?
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