review and correct the receivable account assignment

Receivables - EBS (MOSC)

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Please correct the receivable account assignment

I'm getting the error Please correct the receivable account assignment in autoinvoicing line.  By checking the note 1088218.1 , I reviewed how the accoutning is for Receivables and it says Transaction types.  However we use the transaction type for loading some invoices by files, however we have another way to load invoice that use the autoinvoice so there must be another setup different than  transaction types. however we need to know how the receivables account qare taken from

The version is R12.2.4,

Any guide would be appreciated.

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Steps to be considered when we get ‘Please Correct Revenue Account Assignment’ in AR Autoinvoice import program?

Introduction :

This is used to fix the invalid revenue account for AR invoice

Auto accounting is used to determine the accounts when the distribution table is not populated. When Auto Invoice gives this error, it generally gives the account with the missing segment(s).

Menu: Setup>Transactions>Auto accounting Query the account mentioned in the above error and note the setup for that missing segment.

If it is based on:

Transaction Type – Menu: Setup>Transaction>Transaction Types, and verify that all accounts are populated.

Salesperson – Menu: Setup>Transactions>Salespersons, and verify that all accounts are populated.

Standard Lines – For an Inventory Item navigate to Menu: Setup>Transactions>Items>Inventory items, and verify that the ‘Sales Account’ is populated in the ‘Invoicing’ alternate region. For a Memo Line, navigate to Setup =>Transactions =>Memo Lines, and make sure that ‘Revenue Account’ is populated.

Taxes – Menu: Setup>Tax>Codes and verify that account is populated in ‘Tax’ column under the ‘Accounting’ alternate region. Additionally the following can be checked: Setup of Cross Validation Rules. Run Cross validation Listing Report in GL to identify the cross validation rule stopping the import of this line.

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AutoInvoice Error: Review and correct which receivable account assigned / The Intercompany account was not generated. (Doc ID 2130226.1)

Last updated off JULY 05, 2023

Applies to:

When attempting to run Browse AutoInvoice, the after blunder occurs:

Review and correct the receivable account assignment. (xxxxx.xxxxx.xxxxx.xxxxxxx.xxxxxxx)

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AutoInvoice Error: Review plus correct the receivable account assignment / The Intercompany account was not generated. (Doc ID 2130226.1)

Last updated on JULY 05, 2023

When attempting to run Import AutoInvoice, the following error occurs:

Review and correct the receivable account associations. (xxxxx.xxxxx.xxxxx.xxxxxxx.xxxxxxx)

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Assignment of Accounts Receivable – Trap for the Unwary

By  Steven A. Jacobson

Most businesses are familiar with the mechanics of an assignment of accounts receivable. A party seeking capital assigns its accounts receivable to a financing or factoring company that advances that party a stipulated percentage of the face amount of the receivables.

The factoring company, in turn, sends a notice of assignment of accounts receivable to the party obligated to pay the factoring company’s assignee, i.e. the account debtor. While fairly straightforward, this three-party arrangement has one potential trap for account debtors.

Most account debtors know that once they receive a notice of assignment of accounts receivable, they are obligated to commence payments to the factoring company. Continued payments to the assignee do not relieve the account debtor from its obligation to pay the factoring company.

It is not uncommon for a notice of assignment of accounts receivable to contain seemingly innocuous and boilerplate language along the following lines:

Please make the proper notations on your ledger and acknowledge this letter and that invoices are not subject to any claims or defenses you may have against the assignee.

Typically, the notice of assignment of accounts receivable is directed to an accounting department and is signed, acknowledged and returned to the factoring company without consideration of the waiver of defenses languages.

Even though a party may have a valid defense to payment to its assignee, it still must pay the face amount of the receivable to the factoring company if it has signed a waiver. In many cases, this will result in a party paying twice – once to the factoring company and once to have, for example, shoddy workmanship repaired or defective goods replaced. Despite the harsh result caused by an oftentimes inadvertent waiver agreement, the Uniform Commercial Code validates these provisions with limited exceptions. Accordingly, some procedures should be put in place to require a review of any notice of assignment of accounts receivable to make sure that an account debtor preserves its rights and defenses.

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Saturday, February 13, 2010

Autoinvoice error: please correct the revenue account assignment.

Iissue may be beacuse of follwing reasons 1) Autoaccouting setup 2) Memo line Setup 3) Item defination setup check 1: Go in Receivables Responsiblity Setup > Transactions > Sources Query the source that you are importing Go in the Other Information tab Check the setup for Memo Line Rule. check 2: Other way to do you can analayze the log and try to find the root cause. 1) Make sure you have done the proper setup for the source for your autoaccounting in AR Go to Setup->;Transactions->Autoaccounting Pay particular attention to the REVENUE sources and write them down. . 2) Go to each line that was rejected and manually walk through how each segment is built (fetch them from the proper sources as identified in step 1. Make sure that the accounts shown on the Autoinvoice Execution report (in the validation errors) are truly the correct accounts based on your setup. 3) Go into GL and verify that those accounts (the results of step 2) are valid, enabled, and that there are no problems with them (there probably are some recent changes that caused this) 4) If you still think they are valid after doing steps 1-3, go ahead and enter a new transaction and attempt to override the distributions to one of the invalid accounts and see if the form lets it pass. When the form rejects an account, it often puts the cursor on the bad segment -and that can be helpful in tracking down what is causing the rejections. Couple of other things you should also quick check: If it has transaction type, then you have to check the transaction type you are using and make sure that you have assigned a revenue account. If it has standard lines, then you have to check the standard lines you are using and make sure that you have assigned a sales account. Check it out in the Item defnition endable invoiceble flag, anmd check the how Sales account are linked with Revenue account. 1)Standard Lines - For an Inventory Item navigate to Menu: Setup>Transactions>Items>Inventory items, verify the ‘Sales Account’ is populated in the ‘Invoicing’ alternate region. For a Memo Line, navigate to Setup ->Transactions ->Memo Lines, and make sure that ‘Revenue Account’ is populated.

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Assignment of Accounts Receivable: Meaning, Considerations

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

Investopedia / Jiaqi Zhou

What Is Assignment of Accounts Receivable?

Assignment of accounts receivable is a lending agreement whereby the borrower assigns accounts receivable to the lending institution. In exchange for this assignment of accounts receivable, the borrower receives a loan for a percentage, which could be as high as 100%, of the accounts receivable.

The borrower pays interest, a service charge on the loan, and the assigned receivables serve as collateral. If the borrower fails to repay the loan, the agreement allows the lender to collect the assigned receivables.

Key Takeaways

• Assignment of accounts receivable is a method of debt financing whereby the lender takes over the borrowing company's receivables.
• This form of alternative financing is often seen as less desirable, as it can be quite costly to the borrower, with APRs as high as 100% annualized.
• Usually, new and rapidly growing firms or those that cannot find traditional financing elsewhere will seek this method.
• Accounts receivable are considered to be liquid assets.
• If a borrower doesn't repay their loan, the assignment of accounts agreement protects the lender.

Understanding Assignment of Accounts Receivable

With an assignment of accounts receivable, the borrower retains ownership of the assigned receivables and therefore retains the risk that some accounts receivable will not be repaid. In this case, the lending institution may demand payment directly from the borrower. This arrangement is called an "assignment of accounts receivable with recourse." Assignment of accounts receivable should not be confused with pledging or with accounts receivable financing .

An assignment of accounts receivable has been typically more expensive than other forms of borrowing. Often, companies that use it are unable to obtain less costly options. Sometimes it is used by companies that are growing rapidly or otherwise have too little cash on hand to fund their operations.

New startups in Fintech, like C2FO, are addressing this segment of the supply chain finance by creating marketplaces for account receivables. Liduidx is another Fintech company providing solutions through digitization of this process and connecting funding providers.

Financiers may be willing to structure accounts receivable financing agreements in different ways with various potential provisions.​

Special Considerations

Accounts receivable (AR, or simply "receivables") refer to a firm's outstanding balances of invoices billed to customers that haven't been paid yet. Accounts receivables are reported on a company’s balance sheet as an asset, usually a current asset with invoice payments due within one year.

Accounts receivable are considered to be a relatively liquid asset . As such, these funds due are of potential value for lenders and financiers. Some companies may see their accounts receivable as a burden since they are expected to be paid but require collections and cannot be converted to cash immediately. As such, accounts receivable assignment may be attractive to certain firms.

The process of assignment of accounts receivable, along with other forms of financing, is often known as factoring, and the companies that focus on it may be called factoring companies. Factoring companies will usually focus substantially on the business of accounts receivable financing, but factoring, in general, a product of any financier.

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