Commitment Transaction Types

Receivables creates adjusting accounting entries to reflect invoicing activity against your customer commitments based on transaction type. Receivables provides the following commitment transaction types:

Deposits

The accounting reversal is made by creating a receivables adjustment in Accounts Receivable to the invoice for the total of the invoice lines. This adjustment has the effect of reducing the invoice's payment schedule by the amount of the invoiced items (tax and freight amounts are not deducted from the deposit balance) and creating the reversing accounting entries. If however, the amount of the invoice exceeds the remaining commitment balance, Receivables only creates a receivables adjustment for the remaining commitment balance.

Guarantees

The accounting reversal is made by creating a receivables adjustment in Accounts Receivable to the guarantee for the total of the invoice lines. This adjustment has the effect of reducing the guarantee's payment schedule by the amount of the invoiced items (tax and freight are not deducted from the commitment balance) and creating the reversing accounting entries. If however, the amount of the invoice exceeds the remaining commitment balance, Receivables only creates a receivables adjustment for the remaining commitment balance.