AR Allowance Class Maintenance

Billing and Accounts Receivable

File Maintenance

About

Allowance Class Maintenance is used to create and configure the allowance classes used by cash posting

Using the Program

Allowance Class Maintenance is a standard File Maintenance Program

Fields

• Description
• G/L Account: The offset account used in cash posting. This should NOT be the A/R account or the CASH account.
• Tax Adjustment: determines how cash posting will calculate the sales tax of this allowance.
  • NO: This allowance creates no change in sales tax.
  • Percentage: This allowance is assumed to include a reduction of sales tax obligation in proportion to the amount of the allowance. For example, if you allowed 1/4 of the invoice, then 1/4 of the tax obligation would also be reduced.
  • Tax Only: This allowance is used to write off the tax portion of the invoice.