ERPstuff - Oracle EBS Community

Hi,

Can anyone explain me about while defining bank accounts in payables or receivables, we have a receivables options. In that they have given a segments called Remitted Receipts,Factored Receipts and Short term debt.

I want to know wats the feature behind these three options and in wat level they are used. It will be appreciated if anyone explain with some examples

While creating Bank Accounts in AR or AP we have Receivable Options in Banks Called Remitted Receipts, Factored Receipts and Short Term Debt.

Remitted Receipts : Remittance is a process which we follow in our regular business process i.e. Depositing a Negotiable instrument in a Bank. This feature in AR supports 2 types of Remittance Method i.e. 1. Standard and 2. Factoring

Receivables uses the payment method you assign to a receipt class to determine how to account for receipts you create using this receipt class.

1. Standard Remittance : Standard Remittance is depositing a Cheque/DD in a Drop Box for clearance of Cheque.

2. Factored Remittance : Factored Remittance is depositing a Cheque with a Banker at a Discounted Price. For Example, we are depositing a Cheque for Rs.10,000/-, the customer (only for liable customer) of bank requests to discount the cheque with the bank. Then the banker will Credit 9500/- (say) to your account. Rs.500/- is Cheque Disconting Charges.

3. Shortterm Debt : The amount Factored by Banker (say Rs.9500/-) is an uncleared Receipt/Cheque which is Short term Debt from Bank.


All the above 3 accounts codes in Bank (Receivable Options) are given to maintain the actual accounting entries.

Also request the group to Correct me if I am wrong.

Thanks & Regards,
Ram