Deduction Management Customer

In order to work with deductions, you must set up a customer record for unallowed deductions. This record does not represent an actual customer, but is required to serve as a place where unallowed deductions can be transferred.

Setting Up the Deduction Management Customer

Because a deduction management customer is not an actual customer, there is minimal setup required. When entering a customer number, it is recommended that you enter a value that is distinct from the numbers that are assigned to actual customers. The deduction management customer's number should be far enough removed from the standard customer numbers that it will not be accidentally included in any reports that utilize customer filters.

Your deduction management customer must have a customer posting group. As with the customer number, this customer posting group should be different from the posting groups that are used for genuine customers. The customer posting group must be linked to a receivables account. You do not need to assign a general business posting group to your deduction management customer.

Once you have set up your deduction management customer, you must assign it in the Deduction Management Customer No. field in the Sales & Receivables Setup window. Whenever an unallowed deduction is posted, an entry is made in the customer ledger for the customer record that has been assigned in this field.

Deduction Management Customer Posting

The deduction management customer exists solely for the purpose of having a specific customer ledger to which the program can transfer unallowed deductions. Because this record is assigned as a default, the user never needs to post information directly to and from the deduction management customer.

Unallowed deductions are created in the Payment Application window. When the related cash receipt line is posted, the unallowed deduction amounts post to the defined deduction management customer.

Unallowed deductions are resolved in the Deduction Management - Resolution window. This window is filtered to display the open customer ledger entries that exist for the designated deduction management customer. When a deduction is resolved, the program posts a reversing entry to the deduction management customer's ledger.