1. Country-Specific Features
  2. Japan Help Topics
  3. Japanese Invoicing
  4. Japanese Invoice Summary
  5. Including Payment Adjustments in the Invoice Summary

Including Payment Adjustments in the Invoice Summary

Payment adjustments or accounts receivables (AR) can be included in the invoice summary using the following custom transactions that with the Japan Localization SuiteApp:

The custom transactions are available from Customization > Lists, Records, & Fields > Transaction Types > AR Adj Debit Invoice Summary or AR Adj Credit Invoice Summary > New Transaction. They are posting transactions. On their custom transaction type, the Posting box is checked by default. This means these adjustment transactions are automatically reflected in reports, GL, and balance sheet.

If included in the invoice summary, the amounts in these custom transactions are applied or reflected in the Payments Received this Period of the invoice summary, with AR credits added to this amount and AR debits deducted from it.

Before using or including the payment adjustment custom transactions in the invoice summary, you or the administrator must create the item to use in the custom transactions. A non-inventory sales item should be created. Also, an appropriate account should be set on Income Account. If customers want to net or offset the AR balance with AP balance of other vendors, a current asset account should be set on Income Account.

Note:

If Multicurrency is enabled, you must not include in the invoice summary any payment adjustment (AR Adj Debit Invoice Summary, AR Adj Credit Invoice Summary, and AR Debit/Credit Adjustment Item; otherwise, the AR adjustment record will have inaccurate values.

To include Payment Adjustments in the Invoice Summary:

  1. Go to Customization > Lists, Records, & Fields > Transaction Types.

  2. Click the New Transaction link of any of the following custom payment adjustment transactions:

    • AR Adj Debit Invoice Summary, if you want to deduct accounts receivables from the total net payments

    • AR Adj Credit Invoice Summary, if you want to add accounts receivables to the total net payments

  3. Select appropriate values in the following required fields:

    • Customer:Job - The customer that you want to adjust payments for, by adding or deducting accounts receivables through the custom transaction you selected. The customer record must have the Use Invoice Summary box checked.

    • Date - The transaction date.

    • Posting Period - The period for posting the transaction’s GL impact.

    After selecting values in the fields, other fields of the custom payment adjustment transaction are automatically filled out such as the Due Date and Closing Date.

  4. Check the Include In Invoice Summary box. The box will be checked if the Use Invoice Summary box is checked on the customer record.

  5. Add the appropriate item that you created for this payment adjustment.

  6. Click Save.

The custom payment adjustment transaction will be applied or reflected in the Payments Received this Period of the invoice summary you will generate.

Applying Payment Adjustments for Japan Qualified Invoicing System

If you enabled the features for complying with the Japan Qualified Invoicing System, when you generate an invoice summary, there will be a difference in the previous computation of consumption tax and the adjusted tax computation of the Qualified Invoicing System. The difference is debited or credited to the account of an AR debit/credit adjustment item, which you must select in the AR Debit/Credit Adjustment Item field. This field is on the Japan Localization Setup subtab on Japan subsidiary records for OneWorld accounts, or on the Company Information page for accounts without OneWorld. For more information, see Support for Japan Qualified Invoicing System.

After selecting the AR debit/credit adjustment item, consider the following:

  • If consumption tax in transactions is less than the consumption tax in the invoice summary, an AR debit adjustment entry is created.

  • If consumption tax in transactions is greater than the consumption tax in the invoice summary, an AR credit adjustment entry is created.

  • If consumption tax in transactions is equal to the consumption tax in the invoice summary, no adjustment entry is created.

Related Topics

General Notices