An alternative feature for finalizing Claims processing has been added to the system and setup starts in the Payment Type Code Maintenance module. The Claim (11) checkbox that appears to the right of the Print on Documents checkbox must be checked in order for this process to initiate. Additionally, as this sets up a process that prompts the User to enter an A/P Credit to the Vendor, the G/L Code on the Payment Type should also be changed to Sales/Sales Allowances. This will require you to temporarily activate the Sales G/L Account as a Bank Account so it can be used in this module, but you can turn that off as soon as the new or edited Payment Type Code is set up. This portion of the process will reverse the revenue recognized when the Claim is invoiced. To control who can use this feature there is a User Control 7 option in the System Control Maintenance module as follows: Allowed to Post Deposit/AP Claims. Only enable this control for those Users allowed to process Claims in the manner. (Not all customers will wish to utilize this feature, so be sure you make an informed decision before proceeding.)
Once the setup is complete, using the Deposit feature in Order Entry, you can add a deposit amount to a Job with the Claims Payment Type Code. The system will prompt the following: Would you like to Enter AP Credit now for $XXXX? Select “Yes” to proceed. The system will then prompt a message as follows: Entering A/P Open Item Now. Click OK to proceed. The A/P OPEN ITEM FINAL ENTRY screen will prompt as follows:
You will need to create an Invoice Number. Use your Cost of Materials as the G/L ACCT to reverse the expense of the replacement material recognized when the Claim Job is Invoiced. As mentioned above, the Payment Type Code Deposit reverses the Revenue when the Claim Job is Invoiced. Additionally, for proper revenue and expense recognition, this process should be performed in the same accounting period(month) that the Claim Job is Invoiced. You will receive a message to that effect when you Accept this Invoice as follows:
Please note: you can make adjustments to Claims Deposits, just as you can with actual Deposits, and the system will handle those adjustments.