accounts receivable coursedocshare02.docshare.tips/files/27309/273099511.pdfepicor erp | 10.0.700.2...

Epicor ERPAccounts Receivable Course10.0.700.2

Disclaimer

This document is for informational purposes only and is subject to change without notice. This document and itscontents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of itsdate of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties withregard to the enclosed information and specifically disclaims any applicable implied warranties, such as fitness for aparticular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor software islikely to be unique in their requirements in the use of such software and their business processes, users of this documentare always advised to discuss the content of this document with their Epicor account manager. All information containedherein is subject to change without notice and changes to this document since printing and other important informationabout the software product are made or published in release notes, and you are urged to obtain the current releasenotes for the software product. We welcome user comments and reserve the right to revise this publication and/ormake improvements or changes to the products or programs described in this publication at any time, without notice.The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance ofany consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usageof the solution(s) described in this document with other Epicor software or third party products may require the purchaseof licenses for such other products. Where any software is expressed to be compliant with local laws or requirementsin this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such lawsand requirements. All laws and requirements are subject to varying interpretations as well as to change and accordinglyEpicor cannot guarantee that the software will be compliant and up to date with such changes. All statements ofplatform and product compatibility in this document shall be considered individually in relation to the products referredto in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and alsostated to be compatible with another product, it should not be interpreted that such Epicor software is compatiblewith both of the products running at the same time on the same platform or environment. Additionally platform orproduct compatibility may require the application of Epicor or third-party updates, patches and/or service packs andEpicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packsreleased by third parties after the date of publication of this document. Epicor® is a registered trademark and/ortrademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All othertrademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014.All rights reserved. No part of this publication may be reproduced in any form without the prior written consent ofEpicor Software Corporation.

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Contents

Accounts Receivable Course..................................................................................................9Before You Begin..................................................................................................................10

Audience.......................................................................................................................................................10

Prerequisites..................................................................................................................................................10

Environment Setup........................................................................................................................................11

Workshop Constraints............................................................................................................................12

Overview...............................................................................................................................13Application Setup.................................................................................................................14

Company Configuration................................................................................................................................14

Workshop - Select AR Deposit Tracking Settings.....................................................................................16

Maintenance Programs..................................................................................................................................17

Aging Report Format Maintenance.........................................................................................................17

Pay Method Maintenance.......................................................................................................................17

Workshop - Create a Payment Method............................................................................................18

Bank Account Maintenance....................................................................................................................19

Bank Account Maintenance Sheets..................................................................................................19

Workshop - Add an AR Payment Method to a Bank.........................................................................20

Debit Notes Only Bank Account.......................................................................................................20

Workshop - Create a Bank Account for Debit Notes Only.........................................................20

Product Group Maintenance...................................................................................................................21

Terms Maintenance................................................................................................................................22

Workshop - Create a Terms Record for Multiple Payments...............................................................23

Workshop - Create a Term with Multiple Discounts.........................................................................24

Create a Terms ID.....................................................................................................................24

Add Discounts to the Terms ID.................................................................................................24

Update a Customer Record......................................................................................................25

Recurring Cycle Maintenance..................................................................................................................25

Workshop - Add a New Recurring Cycle..........................................................................................25

Miscellaneous Charge Maintenance........................................................................................................26

Workshop - Enter a Miscellaneous Charge.......................................................................................27

Add a Miscellaneous Charge Code...........................................................................................27

Attach a GL Control to the Charge...........................................................................................27

Tax Setup...............................................................................................................................................27

Tax Allocation..................................................................................................................................28

Tax Type Maintenance.....................................................................................................................29

Workshop - Enter a Tax Type....................................................................................................30

Tax Liability Maintenance.................................................................................................................31

Workshop - Configure a Tax Liability........................................................................................32

Product Tax Category Maintenance.................................................................................................33

Workshop - Enter a Tax Category.............................................................................................33

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ContentsAccounts Receivable Course

Tax Jurisdiction Maintenance...........................................................................................................34

Tax Authority Maintenance..............................................................................................................34

Customer Maintenance..........................................................................................................................35

Detail Sheet.....................................................................................................................................35

Billing Sheets...................................................................................................................................37

Tax Exemptions Sheet......................................................................................................................38

Banks Sheet.....................................................................................................................................38

Workshop - Enter a Customer Record..............................................................................................38

Enter Customer Details.............................................................................................................39

Update Customer Terms and Tax Liability.................................................................................39

Enter Bill To Information...........................................................................................................39

Enter Credit Detail....................................................................................................................40

Enter Ship To Information.........................................................................................................40

Enter Contact Information........................................................................................................41

Workshop - Review and Modify a Customer Record.........................................................................41

Contact Tracker...............................................................................................................................42

Electronic Interface Maintenance............................................................................................................42

National Accounts..................................................................................................................................43

National Account Relationship Maintenance....................................................................................43

Workshop - Update a National Account Relationship Record............................................................44

Review a National Account Relationship...................................................................................44

Add a Child Customer..............................................................................................................44

Share a Credit Pool with a Child...............................................................................................44

Update a Child Customer's Credit............................................................................................45

Finance/Late Charge Maintenance..........................................................................................................45

Workshop - Create and Assign a Finance Charge.............................................................................46

Create a Finance Charge Code.................................................................................................46

Enter a Finance Charge Rate.....................................................................................................46

Assign a GL Control Code........................................................................................................47

Add the Finance Charge Code to a Customer Record...............................................................47

Process Finance/Late Charges..........................................................................................................47

Workshop - Process Late Charges.............................................................................................48

Reminder Group Maintenance................................................................................................................49

Workshop - Create and Assign a Reminder Group...........................................................................49

Create a Reminder Group.........................................................................................................49

Design a Reminder Sequence...................................................................................................50

Assign a Reminder Group.........................................................................................................50

Reminder Letter Generation.............................................................................................................51

Workshop - Generate and Post a Reminder Letter.....................................................................51

Daily Accounts Receivable Processing.................................................................................53AR Invoice Entry.............................................................................................................................................53

Actions Menu.........................................................................................................................................53

Transfer...........................................................................................................................................53

Locate Invoice Group.......................................................................................................................54

Copy Invoice Lines...........................................................................................................................54

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Accounts Receivable CourseContents

AR Invoice Types.....................................................................................................................................54

Advance Billing Invoices..........................................................................................................................55

Workshop - Create Advance Billing Invoices.....................................................................................55

Create an Invoice Group...........................................................................................................55

Add an Advance Billing Invoice Header.....................................................................................55

Add a Line................................................................................................................................56

Add an Additional Line.............................................................................................................56

Create Another Advance Billing Invoice....................................................................................56

Add a Line................................................................................................................................57

Print Preview the Invoice Group Edit List...................................................................................57

Post the Invoice Group.............................................................................................................57

Deposit Billing Invoices............................................................................................................................57

Workshop - Enter a Deposit Billing Invoice.......................................................................................58

Enter a Deposit Billing Invoice Header.......................................................................................58

Add Deposit Information..........................................................................................................58


Advanced Billing/Deposit Balance Report................................................................................................59

Workshop - View Sales Order Balances............................................................................................59

Sales Order Tracker.................................................................................................................................60

Workshop - Use the Sales Order Tracker..........................................................................................60

Customer Statements.............................................................................................................................61

Commission Report................................................................................................................................61

Sales Tax Report.....................................................................................................................................61

Shipment Invoices...................................................................................................................................61

Workshop - Ship Customer Orders..................................................................................................62

Ship Sales Order Lines..............................................................................................................62

Add a Miscellaneous Charge....................................................................................................63

Workshop - Invoice Shipments.........................................................................................................63


Generate Shipment Invoices.....................................................................................................64

Review Miscellaneous Charge Information................................................................................64


Shipped Not Invoiced Report...........................................................................................................64

Cancellation Invoices..............................................................................................................................65

Workshop - Cancel a Posted Invoice................................................................................................65

Credit Memo Entry.................................................................................................................................66

Workshop - Create Credit Memos...................................................................................................66


Enter a Credit Memo Header....................................................................................................67

Add a Line Miscellaneous Charge.............................................................................................67

Create an Advance Billing Credit Memo...................................................................................67

Add a Line................................................................................................................................67

Post the Credit Memos Group..................................................................................................68

Miscellaneous Invoices............................................................................................................................68

Adjust Sales Accounts on AR Invoice Lines.......................................................................................68

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Workshop - Enter a Miscellaneous Invoice........................................................................................68


Create a Miscellaneous Invoice.................................................................................................68

Enter Line Information..............................................................................................................69

Review the Payment Schedule..................................................................................................69

Print the Invoice.......................................................................................................................69

Workshop - Update the Sales Account on a Miscellaneous AR Invoice Line......................................69

Workshop - Create a Miscellaneous Invoice for Tax Only..................................................................70


Create a Miscellaneous Invoice.................................................................................................70

Add Tax to an Empty Invoice Line.............................................................................................70

Workshop - Create an Additional Miscellaneous Invoice...................................................................71

Update a Line Record...............................................................................................................71

Print Preview the Edit List..........................................................................................................71


Recurring Invoices...................................................................................................................................72

Workshop - Create a Recurring Source AR Invoice...........................................................................72


Workshop - Create a Single Recurring AR Invoice.............................................................................73

Workshop - Generate Recurring AR Invoices....................................................................................74

Retrieve Generated Invoices......................................................................................................74

Correction Invoices.................................................................................................................................74

Workshop - Create a Correction Invoice...........................................................................................74

AR Aged Receivables Report...................................................................................................................75

Workshop - Use the Aged Receivables Report..................................................................................76

G/L Distribution Report...........................................................................................................................76

AR Invoice Tracker..................................................................................................................................76

Cash Receipts Entry........................................................................................................................................77

Invoice Payments....................................................................................................................................78

Invoice Selection..............................................................................................................................79

Workshop - Apply Payment and Cancellation Invoice to Open Invoices............................................79

Create a Cash Receipt Entry Group...........................................................................................79

Add an Invoice Payment...........................................................................................................79

Select Invoices to Pay................................................................................................................80

Workshop - Apply Cash and a Credit Memo to Invoices...................................................................80

Create an Invoice Payment.......................................................................................................80

Select Invoices to Pay and a Credit Memo to Apply...................................................................80

Allow Unapplied Cash to Post..................................................................................................80

Miscellaneous Payments.........................................................................................................................81

Workshop - Enter a Miscellaneous Cash Payment............................................................................81

Prepayments...........................................................................................................................................81

Workshop - Enter Deposit Payments................................................................................................82

Enter an Unallocated Deposit Payment.....................................................................................82

Enter an Allocated Deposit Payment.........................................................................................82

Workshop - Post a Cash Receipt Group...........................................................................................83

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Workshop - Convert a Deposit Payment to a Deposit Invoice...........................................................83

Debit Notes............................................................................................................................................84

Workshop - Post a Debit Note.........................................................................................................84

Enter a Debit Notes Only Group...............................................................................................84

Enter an Invoice Payment.........................................................................................................84

Enter a Debit Note without Specifying an Invoice......................................................................84

Place the Debit Note On Account.............................................................................................85

Post the Debit Note..................................................................................................................85

Credit Card Processing............................................................................................................................85

Invoice Discount Analysis Report.............................................................................................................85

Cash Receipt Tracker..............................................................................................................................86

Apply Document............................................................................................................................................86

Workshop - Apply Document..................................................................................................................87

Select a Document to Apply............................................................................................................87

Select an Invoice..............................................................................................................................87

Apply the Document.......................................................................................................................88

Workshop - Apply a Credit Memo to an Open Invoice.............................................................................88

Select a Credit Memo......................................................................................................................88

Select an Invoice to Credit...............................................................................................................88

Apply the Credit Memo...................................................................................................................89

Reverse Cash Receipt.....................................................................................................................................89

Workshop - Reverse a Posted Cash Receipt and Review Results...............................................................90

Reverse a Cash Receipt....................................................................................................................90

Review the Customer Tracker..........................................................................................................90

Specialized Accounts Receivable Processing......................................................................92AR Write Off and Adjustment........................................................................................................................92

Workshop - Write Off a Customer's Bad Debt.........................................................................................93

Customer Credit Manager.............................................................................................................................93

Workshop - Manage Customer Records..................................................................................................94

Review a Customer's Credit.............................................................................................................94

Enter a Sales Order..........................................................................................................................94

View Customer Orders and Credit...................................................................................................95

Update Customer Credit Preferences...............................................................................................95

Recalculate the Credit National Account..........................................................................................95

Workshop - Perform a Mass Credit Information Update..........................................................................96

Enter a Sales Order..........................................................................................................................96

Mass Update a Customer's Credit....................................................................................................96

Conclusion.............................................................................................................................98Appendix...............................................................................................................................99

Epicor ERP Accounts Receivable Transaction Hierarchy....................................................................................99

AR Invoice Entry - Add Invoice................................................................................................................99

AR Invoice Entry - Action Menu............................................................................................................102

AR Invoice Entry - Discounts and Taxes.................................................................................................103

Cash Receipt Entry................................................................................................................................104

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Apply Document...................................................................................................................................106

Reverse Cash Receipt............................................................................................................................107

AR Write Off and Adjustment...............................................................................................................108

Payment Instrument (PI) Receivable Entry..............................................................................................108

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Accounts Receivable Course

This course reviews the Accounts Receivable (AR) module's concepts and reporting tools. Topics of discussioninclude maintenance program setup, various AR processes, and how to recognize the impact these processeshave on the general ledger (GL). Throughout the course, hands-on workshops guide you through these topics.

Upon successful completion of this course, you will be able to:

• Identify the company configuration and maintenance programs that relate to the AR processing cycle.

• Complete the AR sales order - payment cycle by using the process and transaction flow as a guideline.

• Complete the sales tax setup.

• Use national account relationships.

• Create reminder groups and generate customer reminder letters.

• Differentiate between the AR invoice types.

• Enter and use debit notes, miscellaneous cash receipts, deposit cash receipts, and AR prepayments.

• Reverse a cash receipt and identify situations when that action is applicable.

• Use AR write offs and adjustments.

• Apply credit memos and prepayments to invoices and cash receipts.

• Manage customer records.

• Identify documents, reports, and records necessary to track the AR cycle.

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Accounts Receivable CourseAccounts Receivable Course

Before You Begin

Read this topic for information you should know in order to successfully complete this course.

Audience

Specific audiences will benefit from this course.

• AR Clerk

• CFO/Controller

• Cost Accountant

Prerequisites

To complete the workshops in this course, the necessary modules must be licensed and operating in your trainingenvironment. For more information on the modules available, contact your Epicor Customer Account Managerat [email protected]. It is also important you understand the prerequisite knowledge contained in othervaluable courses.

• Navigation Course - This course introduces navigational aspects of the Epicor application's user interface.Designed for a hands-on environment, general navigation principles and techniques available in two userinterface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes andguide you through each navigational principle introduced.

• System Flow Course - This course introduces a basic quote to cash scenario that includes the process fromthe initial customer quote to final cash receipts and payment of supplier invoices. This course emphasizes theseries of processes that make up the quote to cash process by using a simple scenario to highlight varioustransactions. Your organization may have more complex processing routines than those described in thiscourse.

• Financial Foundations Course - This course introduces you to the maintenance modules and programs inthe Epicor application that set the basis for the financial activities within your company.

• General Ledger Course - This course provides a clear perspective of the maintenance programs, concepts,processes, and reporting tools you encounter as you work within the General Ledger (GL) module.

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Accounts Receivable CourseBefore You Begin

Environment Setup

The environment setup steps and potential workshop constraints must be reviewed in order to successfullycomplete the workshops in this course.

Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experienceEpicor functionality in action but does not affect data in your live, production environment.

The following steps must be taken to successfully complete the workshops in this course.

1. Verify the following or ask your system administrator to verify for you:

• Your Epicor training icon (or web address if you are using Epicor Web Access) points to yourEpicor training environment with the Epicor demonstration database installed. Do not completethe course workshops in your live, production environment.

Note It is recommended that multiple Epicor demonstration databases are installed. ContactSupport or Systems Consulting for billable assistance.

• The Epicor demonstration database is at the same service pack and patch as the Epicorapplication. Epicor's education team updates the Epicor demonstration database for each service packand patch. If your system administrator upgrades your Epicor application to a new service pack or patch,he or she must also download the corresponding Epicor demonstration database from EPICweb > Support> Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completingthe course workshops.

• Your system administrator restored (refreshed) the Epicor demonstration database prior tostarting this course. The Epicor demonstration database comes standard with parts, customers, salesorders, and so on, already defined. If the Epicor demonstration database is shared with multiple users(that is, the database is located on a server and users access the same data, much like your live, productionenvironment) and is not periodically refreshed, unexpected results can occur. For example, if a courseworkshop requires you to ship a sales order that came standard in the Epicor demonstration database,but a different user already completed this workshop and the Epicor demonstration database was notrestored (refreshed), then you will not be able to ship the sales order. Epicor's education team has writtenthe course workshops to minimize situations like this from occurring, but Epicor cannot prevent usersfrom manipulating the data in your installation of the Epicor demonstration database.

2. Log in to the training environment using the credentials manager/manager. If you are logged into yourtraining environment as a different user, from the Options menu, select Change User.

3. From the Main menu, select the company Epicor Education (EPIC06).

4. From the Main menu, select the Main Site.

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Before You BeginAccounts Receivable Course

Workshop Constraints

Below is a list of workshops in this course that can be performed only once in each instance of a restored (refreshed)database. Where applicable, a detailed explanation of the workshop constraints is documented in the workshopitself.

Note Multiple users can complete some of the workshops listed below if the Duplicating Sales OrderOption is implemented. This option and steps to execute it are also listed below.

• Workshop - Add an AR Pay Method to a Bank

• Workshop - Update a National Account Relationship

• Workshop - Create and Assign a Reminder Group

• Workshop - Generate and Post a Reminder Letter

• Workshop - Create Advanced Billing Invoices

• Workshop - Enter a Deposit Billing Invoice

• Workshop - Cancel a Posted Invoice

• Workshop - Enter a Deposit Payment

• Workshop - Reverse a Posted Cash Receipt and Review Results

• Workshop - Write Off a Customer's Bad Debt

• Workshop - Manage Customer Records

Duplicating Sales Orders Option

Throughout this course, multiple staged sales orders are used to provide training on various accounts receivablefunctionality. If you are working on a shared database, you may encounter a sales order that has already beenclosed. In this case, follow the steps below to duplicate the necessary sales order to complete the workshops.

1. Navigate to Sales Order Entry.

2. In the Sales Order field, enter the sales order number to duplicate.

3. From the Actions menu, select Order > Copy Order.

The new, duplicated sales order is created. It is essential to track duplicated sales order numbers with theoriginal sales order numbers. The course refers to the original sales order number throughout the courseand must be replaced with the appropriate duplicate sales order number.

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Accounts Receivable CourseBefore You Begin

Overview

Key Concepts of Accounts Receivable Processing

• In an interfaced environment, use general ledger (GL) control codes and GL control types to define accountsreceivable (AR) accounts and sales-related GL accounts.

• Optional use of an AR clearing account controls the timing of Cost of Sales (COS) posting.

• Invoices and cash receipts are posted to the GL via the posting engine.

Typical Sales Order to Payment Process Flow

1. Process sales order

2. Ship goods

3. Invoice customer

4. Receive payment

5. Post cash

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OverviewAccounts Receivable Course

Application Setup

This section of the course reviews the key company and maintenance program configuration factors applicableto the Accounts Receivable (AR) cycle. This course does not review and discuss each program and field thatcontributes to the AR processes. After you complete this course, if you want to learn more about programs orfields that were not mentioned, refer to the Application Help. The Application Help documents and definesprograms, fields, and operations that relate to each module contained within your application.

Company Configuration

Company Configuration specifies company level general ledger (GL) controls for Accounts Receivable (AR), aswell as other modules. The Epicor application uses these controls if a higher level control is not available whena GL transaction posts.

Only the Company Configuration fields specific to the Accounts Receivable process are covered in this course.Refer to the Application Help to define other fields of interest.

List Sheet

Use the Modules > All Modules > GL Control > List sheet to specify the company's default GL control forAccounts Receivable. The Epicor application uses this control if no other control is available when a general ledgertransaction is posted.

More information on GL controls is available in the Application Help and the General Ledger course.

General Sheet

Use the Modules > Finance > Accounts Receivable > General sheet to set defaults that affect the operationof Accounts Receivable processes and programs. Select important information, such as your company's startinginvoice number, methods for sales tax usage, and finance charge options, on this sheet.

Other settings defined on this sheet are as follows:

• Select the Use A/R Clearing Accounting check box if your company plans to post to an AR clearing accountwhen shipments are made.

• Select the AR Invoices and Credit Memos check box if your company requires legal numbers on thesespecific business document types.

• Select the Allow Invoice Settlement in a Different Currency check box to indicate that an AR invoice canbe created first in one currency but then paid in a different currency.

• Select the Enable Invoice Dates Setup check box to allow the definition of options that set defaults for andbehaviors of AR invoice date fields. Selecting this check box activates the fields within the Invoice Dates SetUp pane. The selections made in these fields help support your company's tax reporting requirements andenforce consistency among dates entered in AR Invoice Entry.

For more information on A/R Clearing Accounting, Legal Numbers, Multi-Currency options and Invoice DatesSetup fields, refer to the Application Help.

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Accounts Receivable CourseApplication Setup

National Accounts Sheet

Use the Modules > Finance > Accounts Receivable > National Accounts sheet to designate relationshipclasses used to define national accounts. This sheet specifies the classes used to define credit sharing, reporting,and payer sold-to accounts.

• Credit sharing - National account customers can share credit. Implementation of this functionality requiresthe selection of a tiered relationship class in the Credit Checking field.

• Reporting - National accounts can define reporting relationships based on markets or other criteria.Implementation of this functionality requires selection of a tiered relationship class in the Reports field.

• Payer Bill-To Relationships - National accounts can establish payer-sold-to relationships, in which a payercustomer pays for a sold to customer that receives invoices. Implementation of this functionality requires theselection of a non-tiered relationship class in the Payer-Bill To field.

Individual Deposit Invoice Tracking

Use the Modules > Finance > Accounts Receivable > Individual Deposit Invoice Tracking sheet to set updeposit invoice handling for tax purposes. Tax will be calculated based on the tax treatment selected.

• Invoice Deposit Tax Treatment - Specifies the tax treatment to use for an invoice deposit. The default isNo Tax (to be allocated against a sales order without tax implications). The valid options are: No Tax, TaxShipment Net movement, Reverse tax on shipment invoice, and Reverse tax by invoice match (selection usedfor unallocated deposit payments).

• Product Tax Category - Specifies the product tax category used for deposit invoices.

• Require Deposit Invoice - Indicates whether a deposit invoice is required.

• Invoice Days Delay - Specifies the number of days allowed for an invoice delay.

• Deposit Transaction Document Type - Specifies the transaction document type for the AR invoice systemtype.

• Deposit Invoices show prior linked Deposit Invoices - Specifies whether a deposit invoice shows a priorlinked deposit invoice.

• Allow shipment invoice with negative net tax elements - Enabled only when Invoice Deposit TaxTreatment has been set to Reverse tax by invoice match. Allows a shipment invoice with negative net taxelements when selected.

Menu Path

Navigate to this program from the Main Menu:

• System Setup > Company/Site Maintenance > Company Configuration

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Application SetupAccounts Receivable Course

Workshop - Select AR Deposit Tracking Settings

In this workshop, set up the capability of processing unallocated deposit payments by selecting the necessarysettings in Company Configuration. You will be working with unallocated deposit payments later in this course.

Navigate to Company Configuration.

Menu Path: System Setup > Company/Site Maintenance > Company Maintenance

Important This program is not available in the Epicor Web Access.

1. Navigate to Modules > Finance > Accounts Receivable > Individual Deposit Invoice Tracking.

2. From the Invoice Deposit Tax Treatment field, select Reverse tax by invoice match.

3. Clear the Require Deposit Invoice check box.

4. Click Save.

5. Exit Company Configuration.

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Maintenance Programs

This section of the course reviews the most significant maintenance programs applicable to the AR processingcycle. In many cases, some fields within a program are not described. If you are interested in learning more aboutspecific program fields, refer to the Application Help.

Aging Report Format Maintenance

Use Aging Report Format Maintenance to define aging methods.

Aging Report Format Maintenance is shared by the Accounts Receivable (AR) and Accounts Payable (AP)modules. Each module has multiple aging formats available to select on various records.

Although you can use different aging method formats on the AR Aged Receivables and AP Aged Payablesreports, they cannot run until a default AP and AR format are set up in this maintenance program.

When aging reports generate, the format defined in Company Configuration for each module is automaticallythe default. If necessary, on the report's Selection sheet, select an alternate format before you generate thereport.

These aging methods are used in the AR Aged Receivables and AP Aged Payables reports when viewing openinvoices and credits for customers or suppliers. The discounts or past due fees for the items display according toan aging method.

You can define up to six columns (buckets) on an aging report. The first column always represents future invoices,and the second column represents current invoices; no days are associated with these columns. Each columnafter that includes the number of days defined on its heading; for example, Future, Current, 30, 60, 90, 120,and so on.

Note When an aging report is run by due date, the Future column contains posted invoices that are notdue as of the Aged As of Date selected on the report. When the report is run by invoice date, no entriesdisplay in the Future column unless an invoice is posted with a date that is the same as the Aged As ofDate selected on the report.

Menu Path


• Financial Management > Accounts Payable > Setup > Aging Report Format

• Financial Management > Accounts Receivable > Setup > Aging Report Formats

Pay Method Maintenance

Use Pay Method Maintenance to define how you will pay various transactions. You can select specific paymentmethods as the default for bank accounts, customers, suppliers, and banks linked to a supplier or a customer.

You can link each payment method to a specific electronic bank interface to receive payments against transactionsusing the internet. You can also set up payment methods for manual receipt of cash or checks.

When you select an electronic bank interface for the payment method, the properties defined for the electronicinterface display on the Property sheet. These values update each time you use the electronic bank interface.

You can select payment methods on bank accounts and specify if they are for accounts receivable or accountspayable transactions. Each bank account can have multiple methods defined for each module but only onemethod per module can be set as the default payment method. A default payment method can always beoverridden by selecting a different payment method for a group within AP Payment Entry or Cash Receipts Entry.

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The following are the key fields:

Payment Method

This field specifies the name of the payment method. If you are creating a new payment method, enter the valueyou need in this field. To edit an existing payment method, either enter its name directly or click the PaymentMethod button to find and select it.

Scope

This field specifies the source of payment method, select the accounts payable (AP) or accounts receivable (AR)option.

Pay Method Type

This field defines the how the current method processes the payments. Select the option you need from thedrop-down list. Available options for AR are:

• Electronic Interface

• Generated Promissory Note

• In Cash

• Manual (the default option)

• Received Payment Instrument (AR)

Menu Path


• Financial Management > Accounts Payable > Setup > Payment Method

• Financial Management > Accounts Receivable > Setup > Payment Method

• Financial Management > Cash Management > Setup > Payment Method

• Service Management > Expense Management > Setup > Payment Method

• Service Management > Time Management > Setup > Payment Method

Workshop - Create a Payment Method

In this workshop create a new payment method to use in Cash Receipts Entry when an invoice, deposit, ormiscellaneous cash receipt is paid in cash (actual currency).

Navigate to Pay Method Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Payment Method

1. Click New.

2. In the Payment Method field, enter XXX-Cash (where XXX are your initials).

3. In the Scope field, select AR.

4. In the Pay Method Type field, select In Cash.

5. Click Save and exit Pay Method Maintenance.

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Bank Account Maintenance

Use Bank Account Maintenance to define bank accounts and select the GL controls that determine the accountsto which bank transactions post. Bank accounts record transactions, such as writing checks and submittingelectronic payments.

Note You must set up at least one bank account. If your company has more than one bank account, youcan define multiple account records to aid in the bank reconciliation process.

Important A user account must be set up as a Security Manager to maintain bank accounts. Users thatare not security managers cannot maintain these accounts and are restricted from accessing the setupoption.

Use the Payment Methods sheet to associate payment methods used for account deposits and withdrawals toyour bank account. You can designate AR and AP payment methods for the account, including an electronicinterface payment method used for Electronic Funds Transfer (EFT) processing.

Menu Path


• Financial Management > Accounts Payable > Setup > Bank Account

• Financial Management > Accounts Receivable > Setup > Bank Account

• Financial Management > Cash Management > Setup > Bank Account

• Financial Management > Payroll > Setup > Bank Account

Bank Account Maintenance Sheets

The following sheets are available in Bank Account Maintenance:

Detail

Use the Detail sheet to enter bank account and routing information.

Balance

Use the Balance sheet to view your bank account balance. This sheet is for review only, and populates based onthe selected fiscal year.

Note A bank account's balance is not affected when a check posts if the bank account has defined anAP Pending Cash Account or if the bank account itself is marked to keep an AP Reconciled Balance(check box is available on the Bank Account's Detail sheet). When an account is selected to keep a reconciledbalance, the bank account record's Balance sheet only updates when and if the transaction clears in BankReconciliation.

GL Control

Use the GL Control > Detail sheet to assign GL control types and codes to define the accounts and journal codesavailable to the program's processes. The controls determine the accounts and journal codes used to post thetransactions.

You can apply multiple controls to each record maintained in this program. If you use multiple controls, eachcontrol must be based on a different GL control type.

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Payment Methods

Use the Payment Methods > AP Payment Methods and the Payment Methods > AR Payment Methodssheets to define which payment methods are available for the current bank account in Accounts Payable andAccounts Receivable. You can select as many payment methods as necessary, but only one can be the defaultmethod. When you select a bank account on a record, the payment methods defined on this sheet display in theaccompanying Payment Method field for the account.

Workshop - Add an AR Payment Method to a Bank

In this workshop, add a new AR Payment Method to a bank account. Adding an AR payment method to thebank account allows the method to be selected on a Cash Receipts Entry group when the current bank accountis used.

Important Due to necessary database setup and specific data used to perform an update to an existingbank account, this workshop can only be performed by one person on a shared database.

Navigate to Bank Account Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Bank Account

1. In the Account field, enter 100 and press Tab.The Main Checking Account details display.

2. From the New menu, select New AR Payment Method.The Payment Methods > AR Payment Methods sheet displays.

3. In the Payment Method field, select XXX-Cash (where XXX are your initials).

4. Click Save.

5. Remain in Bank Account Maintenance.

Debit Notes Only Bank Account

To create a cash receipt group that contains only debit notes, a particular bank account type is required. Theseaccounts are called Debit Notes Only bank accounts and are created in Bank Account Maintenance.

Epicor recommends you create a Debit Notes Only bank account to enhance your company's processing capabilities.This bank account type requires the Debit Notes Only check box be selected on its maintenance file to indicateits only purpose is to process debit notes. Cash receipt entry groups that post to this bank account must containonly debit notes.

Workshop - Create a Bank Account for Debit Notes Only

In this workshop, set up a bank account for debit note processing.

Navigate to Bank Account Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Bank Account

1. From the New menu, select New Bank Account.

2. In the Account field, enter XXXDN (where XXX are your initials).

This is a user-defined code that identifies the bank account record. It can be up to five alpha-numericcharacters long.

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3. In the Description field, enter XXX Debit Notes Only (where XXX are your initials).

4. Select the Debit Notes Only check box.

Multiple fields disable when you select this check box.

5. In the Currency field, select United States Dollar.

6. From the New menu, select New GL Control.

7. In the Type field, search for and select Bank Account.

8. In the Control field, enter 100 and press Tab.

9. Click Save.

10. Exit Bank Account Maintenance.

Product Group Maintenance

Use Product Group Maintenance to set up product groups, which classify the different part types you sell.These classifications are used for General Ledger (GL) and sales analysis purposes.

You assign product groups to specific parts using the Group field in the Part Maintenance > Part > Detailsheet. Product group definition examples include:

• Customer ID (Edwards International)

• Product Line (Televisions)

• Product Type (Configured Parts)

• A combination of each (Edwards International - Configured Parts)

Sales, Owner and Supply Site Field Relationships

The Sales Site field (located on the Detail sheet), and the Owner Site and Supply Site fields (located on theSite > Detail sheet) have important impacts on product group and order processing. These fields are as follows:

For parts that are assigned to the product group for which you have assigned a sales site in the Sales Site field,when a sales order line is created (no matter what site into which you are currently logged), this sales site becomesthe default "from" site for the order / line / release. If you do not designate a sales site for the product group,the order uses the site into which you are currently logged as the default "from" site. If you always want a groupof part(s) (product group) to be sold from a specific site, you would use the Sales Site field to designate the salessite; otherwise you would leave it blank.

Note The Sales Site field on the Product Group > Detail sheet is not directly related to the Owner Siteor Supply Site fields on the Site > Detail sheet. However, if you do designate a Sales Site in the Detailsheet, you should designate that the Owner Site defined on the Site sheet be the same as the Sales Sitedesignated on the Detail sheet.

Product Group > Detail - Sales Site Field (Sold From / Distribute From Site)

For parts that are assigned to the product group for which you have assigned a sales site in the Sales Site field,when a sales order line is created (no matter what site into which you are currently logged), this sales site becomesthe default "from" site for the order / line / release. If you do not designate a sales site for the product group,the order uses the site into which you are currently logged as the default "from" site. If you always want a groupof part(s) (product group) to be sold from a specific site, you would use the Sales Site field to designate the salessite; otherwise you would leave it blank.

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Note The Sales Site field on the Product Group > Detail sheet is not directly related to the Owner Siteor Supply Site fields on the Site > Detail sheet. However, if you do designate a Sales Site in the Detailsheet, you should designate that the Owner Site defined on the Site sheet be the same as the Sales Sitedesignated on the Detail sheet.

Product Group > Site Detail - Owner Site and Supply Site Fields

You can define multiple site relationships in Product Group Maintenance records The examples below betterexplain what happens when these site relationships are used in the Epicor application.

Example You are selling from an Owner Site, which owns the demand and you want to obtain supplyfrom this Supply Site, which fills the demand. You have three (supply) sites that feed nine branches thatyou sell from (owner):

• Branches (Owner) 1, 2 and 3 are supplied from Site A (Supply)

• Branches (Owner) 4, 5 and 6 are supplied from Site B (Supply)

• Branches (Owner) 7, 8 and 9 are supplied from Site A (Supply)

For this scenario, it results in nine entries in the Product Group > Site > Detail sheet, one for eachsite-to-branch relationship.

Menu Path


• Financial Management > Accounts Receivable > Setup > Product Group

• Financial Management > Deferred Revenue Accounting > Setup > Product Group

• Material Management > Inventory Management > Setup > Product Group

• Production Management > Engineering > Setup > Product Group

• Production Management > Job Management > Setup > Product Group

• Production Management > Material Requirements Planning > Setup > Product Group

• Sales Management > Configurator Management > Setup > Product Group

• Sales Management > Order Management > Setup > Product Group

• Service Management > Field Service > Setup > Product Group

For CRM users, the Main Menu appears as:

• Customer Relationship Management > Configurator Management > Setup > Product Group

• Customer Relationship Management > Order Management > Setup > Product Group

Terms Maintenance

Use Terms Maintenance to establish conditions that define how customers pay their invoices (for example,discounts, number of payments, and payment frequency).

Terms define the due dates, payment frequency, applicable discounts, and number of payment installments.

Each accounts receivable (AR) code defines a time period and a discount percentage period schedule.

To begin setting up the selling terms, select one of the following term code types:

• Days

• Day Of Month

• End of X Month(s) On Y Day(s)

Determine whether the discount percentages for a term code calculate against partial or full payments.

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Each terms code can have either one discount period or multiple discount periods. Each discount period has aspecific percentage which is valid for a specific period. Together, the discounts gradually reduce the percentagesbased on the passed period (months, days) within the overall terms period.

Enter as many discount percentage periods as you need.

Note that the discounts have the same types as the term codes:

• Days

• Day Of Month

• End of X Month(s) On Y Day(s)

You do not need to select the same type for a term code and a discount assigned to this term code.

When a payment is received, the percentage active on the payment date is used to calculate the discount amount.

AR terms display on sales orders and AR invoices. Select default payment terms for customers and on AR invoices.

A terms record is required for each customer. When creating a customer record, a default terms record displaysin the new record, but you can override this selection.

Menu Path


• Financial Management > Accounts Receivable > Setup > Terms

• Sales Management > Demand Management > Setup > Terms

• Sales Management > Order Management > Setup > Terms


• Customer Relationship Management > Order Management > Setup > Terms

Workshop - Create a Terms Record for Multiple Payments

Your company decides to lease an unoccupied portion of their site to another business. Create a terms recordto establish a payment schedule for the new tenant.

Navigate to Terms Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Terms

1. From the New menu, select New Terms ID.

2. In the Code field, enter XXX1 (where XXX are your initials).

3. In the Description field, enter XXX12 Month Payment Schedule (where XXX are your initials).

4. In the Number of Payments field, enter 12.

5. In the Terms Type field, select Day Of Month.

6. In the Due on Day field, enter 15.

7. In the Minimum Days field, enter 5.

8. Click Save and remain in Terms Maintenance.

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Workshop - Create a Term with Multiple Discounts

A long-time customer of your company (Colorado Metals) has negotiated a 2% discount on each invoice if theypay within 15 days of the invoice date, and a 4% discount if they pay within 10 days of the invoice date. Createa customer terms record with multiple discounts and assign it to Colorado Metals' customer record.

Create a Terms ID

1. From the New menu, select New Terms ID.

2. In the Code field, enter XXX2 (where XXX are your initials).

3. In the Description field, enter XXX Multiple Discounts (where XXX are your initials).

4. In the Number of Payments field, accept the default value of 1.

5. In the Terms Type field, accept the default value of Days.

6. In the Number of Days field, enter 30.

7. In the Discount Type field, accept the default value of Days.

8. Click Save.

Add Discounts to the Terms ID

1. Navigate to the Discounts > Detail sheet.

2. From the New menu, select New Discount.

3. In the Number Of Days field, enter 15.

4. In the Discount Percent field, enter 2.

5. Click Save.

6. From the New menu, select New Discount.

7. In the Number Of Days field, enter 10.

8. In the Discount Percent field, enter 4.

9. Click Save and exit Terms Maintenance.

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Update a Customer Record

Important Due to specific data used to update the customer record, this workshop can only be performedby one person at a time in a shared database.

Navigate to Customer Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Customer

1. In the Customer field, enter CODOMETAL and press Tab.

2. Navigate to the Billing > Detail sheet.

3. In the Terms field, select XXX Multiple Discounts (where XXX are you initials).

4. Click Save and exit Customer Maintenance.

Recurring Cycle Maintenance

Use Recurring Cycle Maintenance to set up recurring cycles that define how recurring invoices will be generatedand their billing cycles.

You can create a recurring cycle and attach it to a recurring source invoice. A recurring source invoice is an invoicethat is also used as a template from which recurring invoices will be generated.

A cycle code is a collection of different settings that can be assigned to a recurring source invoice. The billingcycle of an invoice is defined within a specific cycle code and includes the frequency (how often) and duration(how long) the invoice will occur.

You can perform the following tasks in Recurring Cycle Maintenance:

• Create a new recurring cycle

• Modify a recurring cycle

• Inactivate a recurring cycle

• Delete a recurring cycle

Menu Path


• Financial Management > Accounts Payable > Setup > Recurring Cycle

• Financial Management > Accounts Receivable > Setup > Recurring Cycle

Workshop - Add a New Recurring Cycle

In this workshop, create a recurring cycle. The recurring cycle will be used in a later workshop to define howrecurring invoices will be generated and their billing cycle.

Navigate to Recurring Cycle Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Recurring Cycle

1. From the File menu, select New.

2. Enter the following cycle parameters:

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ValueField

XXXMonthly (where XXX are your initials)Cycle Code

XXXMonthly Recurrence (where XXX are your initials)Description

ARModule

1Interval

MonthsModifier

1Billing Day

12Duration

3. Click Save.Once you save a valid cycle code, it becomes available for selection on invoices.

Note Once a recurring cycle code has been selected on a recurring source invoice, you will not beable to modify the settings on the Billing Cycle pane or delete the cycle.

4. Exit Recurring Cycle Maintenance.

Miscellaneous Charge Maintenance

Use Miscellaneous Charge Maintenance to create miscellaneous charges. Once created, you can select thesecharges within other programs in the Epicor application.

Miscellaneous charges are additional costs. For example, expedite fees and freight charges you can include onsales orders, quotes, and invoices. Once created, select the charges in the headers and detail lines of these records.

Note These miscellaneous charges are not the same charges you set up in the Purchasing or AccountsPayable module. You pay purchasing miscellaneous charges to your suppliers, but your customers coverthese miscellaneous charges.

When creating a miscellaneous charge:

• Select a charge frequency to set up miscellaneous charges to charge customers when appropriate.

• Select the Sales Analysis check box to enable charges to be included in the Sales Analysis Report.

• Select the Shipping Access check box to enable charges to be added to packing slips.

Menu Path


• Financial Management > Accounts Receivable > Setup > Miscellaneous Charge

• Sales Management > Order Management > Setup > Miscellaneous Charge

• Service Management > Field Service > Setup > Miscellaneous Charge


• Customer Relationship Management > Order Management > Setup > Miscellaneous Charge

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Workshop - Enter a Miscellaneous Charge

An internal cost analysis of costs finds that the cost of pallets increased substantially over the last few months.A decision is made to initially charge customers for pallets when a product is shipped, and to refund the amountwhen the customer returns them.

Add a Miscellaneous Charge Code

Navigate to Miscellaneous Charge Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Miscellaneous Charge

1. From the New menu, select New Charge.

2. In the Code field, enter XXX (where XXX are your initials).

3. In the Description field, enter XXX Refundable Pallet Charge (where XXX are your initials).

4. In the Amount field, enter 10.00.

5. Select the Shipping Access check box.

6. In the Frequency field, select Every.

7. Click Save.

Attach a GL Control to the Charge

1. From the New menu, select New GL Control.The GL Control > Detail sheet displays.

2. In the Type field, search for and select Misc Charge(Sales).

3. In the Control field, search for and select PALL.

4. Click Save.

5. Exit Miscellaneous Charge Maintenance.

Tax Setup

This section of the course reviews the following five tax maintenance programs:

• Tax Type Maintenance

• Tax Liability Maintenance

• Product Tax Category Maintenance

• Tax Jurisdiction Maintenance

• Tax Authority Maintenance

Tax information is government mandated and someone who is familiar with the taxation guidelines for yourcompany should enter this information into the Epicor application.

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Tax Allocation

In the Epicor application, three of the five tax maintenance programs work together to properly allocate tax andtax rates to invoices. The image below displays the relationship between customers, tax liabilities, tax types, taxrates, tax categories, products/charges, and invoices. The same relationship also holds true for supplier invoices(substitute supplier for customer and delete Finance/Late Charge).

Important Tax categories are not tied to tax liabilities. If a customer is not assigned a tax liability, taxesare not added to the invoice. Although a tax category might display on the invoice line(s), taxes are notcharged because a tax liability is not assigned to the customer.

Tax liabilities and tax categories can be manually added to invoice lines at the time of invoice entry.

Example

The following outlines records set up in several maintenance programs and how they work together tocharge tax to a customer invoice.

Product Tax Category

• Tax category, Services is set up in the application without links to specific tax types or effective rates.

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Tax Type Maintenance

• Tax type, City Tax is set up with two effective rates: City Tax Rate (2%, document level, default) andAlternate City Tax Rate (1%, line level). Tax category, Services is exempt from City Tax.

• Tax type, MN State Tax is set up with two effective rates: MN Tax Rate (6.5%, line level, default) andAlternate MN Tax Rate (3%, line level).

Product Tax Category Maintenance

• Tax category, Products is linked to both City Tax and MN State Tax; however, the category is setup touse the Alternate rate code for each of these tax types.

Tax Liability Maintenance

• Tax liability, Minnesota - Hennepin County is linked to two tax types: City Tax and MN State Tax.

Customer Maintenance

• Tax liability, Minnesota - Hennepin County is selected on Ace Molding Company's customer record.

Product Group Maintenance

• Tax category, Services is selected on the Services product group record.

Part Maintenance

• Tax category, Products is selected on the Product P1 (00P1) part record.

• Product group, Services is selected on the Service S1 (0S1) part record.

In the above example, Ace Molding Company (ACEMOLD) is taxed as follows:

• When ACEMOLD is invoiced for Product P1, they are charged 1% City Tax and 3% MN State Tax.

• When ACEMOLD is invoiced for Service S1, they are exempt from City Tax and are charged 6.5% MN StateTax.

• When ACEMOLD is invoiced for a part/service/charge that is not tied to either the Products or Services taxcategory (or to a product group that is tied to either of those tax categories), they are charged 2% City Taxand 6.5% MN State Tax.

Tax Type Maintenance

Use Tax Type Maintenance to specify different tax types and tax rate codes your company needs to supportsales and purchase processes.

Each tax type is set up with different attributes such as a calculation algorithm, collection method, time ofrecognition, tax rates, and other accounting information. The tax type can have multiple rates but one is thedefault rate. This rate is used unless a different rate is specified elsewhere.

Specific products can be exempt from certain tax types. Use product tax categories to divide taxes into groupsthat apply to different products. On the Rates > Exempt sheet in this program, select which categories shouldnot have the current tax calculated against their orders.

Tax types are assigned to individual tax liabilities. Tax liabilities define geographic areas, and each tax code selectedidentifies individual taxes collected within that area. Each customer record can have a tax liability assigned, whichdefines the taxes calculated against the orders and invoices for that customer.

Tax Connect

Use Tax Type Maintenance to assign specific GL Controls to the tax type records that are automatically createdby Tax Connect when tax calculations for transactions occur. When you use Tax Connect, it automatically createsthe necessary tax type records needed to complete tax calculations for your transactions. You can change GLcontrols that were defaulted from Company Maintenance, but tax types do not need to be manually created.

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Tip Tax Connect-created tax types display a checkmark in the Tax Connect Calculation check box. Thefirst few characters of their Tax IDs are defaulted in from the Tax ID Prefix field located on the Modules> Finance > Tax Interface sheet of Company Maintenance for the applicable Epicor company when taxtypes are automatically created. This helps to differentiate them from tax types you may have manuallycreated using the internal Epicor tax engine in the past for the purpose of calculating sales taxes, beforepurchasing and implementing the Tax Connect module.

Menu Path


• Financial Management > Accounts Payable > Setup > Tax Type

• Financial Management > Accounts Receivable > Setup > Tax Type

• Material Management > Purchase Management > Setup > Tax Type

• Sales Management > Order Management > Setup > Tax Type


• Customer Relationship Management > Order Management > Setup > Tax Type

Workshop - Enter a Tax Type

In this workshop, enter a sales tax record. In addition, specify a tax category that is exempt from the tax type youcreate.

Navigate to Tax Type Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Tax Type

1. From the New menu, select New Tax Type Code.

2. In the Tax ID field, XXX-SALE (where XXX are your initials).

3. In the Description field, enter XXX Sales Tax (where XXX are your initials).

4. Select the Manual Tax Calculation check box.Selecting this check box enables you to manually add this tax type to an invoice.

5. Click Save.

6. From the New menu, select New Rate.

The Rates > Detail sheet displays.

7. In the Rate Code field, enter MainRate.

8. In the Description field, enter Main Rate Code.

9. Select the Default Rate check box.

10. Click Save.

11. From the New menu, select New Effective Rate.

The Rates > Effective Rate > Detail sheet displays.

12. In the Effective From field, verify today's date displays.

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13. In the Rate Type field, verify Percentage displays.

14. In the Percentage field, enter 6.5.

15. In the Currency field, verify United States Dollar displays.

16. Select the Line Level radio button.

17. Click Save.

18. From the New menu, select New GL Control.

The Rates > GL Control > Detail sheet displays.

19. In the Type field, search for and select Tax.

20. In the Control field, search for and select LocalSal0002.

21. Click Save.

Add an Exempt Category

1. From the New menu, select New Exempt Category.The Rates > Exempt sheet displays.

2. In the Category ID field, select Services.This indicates that a part, product group, miscellaneous charge, late charge, or invoice linked to the Servicestax category is exempt from this tax type.

3. Click Save and exit Tax Type Maintenance.

Tax Liability Maintenance

Use Tax Liability Maintenance to enter tax liability records. A tax liability represents taxes a company handleswhen they trade with customers and suppliers. This can be taxes liable due to both your company's tax status orthe tax status of the customer or supplier.

The Epicor ERP application allows you to assign a list of tax types to each tax liability code. A tax type can containrules that control which level to calculate the tax (line or total) and can apply exemptions available for the tax.

Define what location controls the liability. Use Customer Maintenance or Supplier Maintenance to attach adefault tax liability code to the customer or supplier bill to and ship to addresses. The tax liability and the producttax category (which represents what has been sold or purchased) combination determines the final taxes andrates for the transaction.

Note Tax liability is optional in the Epicor ERP application. If used, records in Customer Maintenance canbe associated with the appropriate tax region.

Tax Connect

For those who have purchased Epicor Tax Connect Use Tax (UT), use Tax liability Maintenance to create UseTax calculation-capable Tax Liability codes for assignment to your suppliers to automatically enable Use Taxcalculations for AP invoices. Epicor Tax Connect UT allows self-assessed consumer use taxes to be calculated forAP invoices. Tax Liability codes are optional for Epicor Tax Connect Sales Tax (ST), which calculates sales taxesfor your customers' sales orders and for their AR invoices and credit memos.

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Note Although Tax Liability codes are not needed for Epicor Tax Connect ST to calculate sales taxes forcustomer transactions, they can be used to prevent non-US and non-Canadian transactions from beingcommunicated to AvaTax®, such as for international transactions for which taxes should not be calculatedand which do not need to be included on sales tax returns.

Menu Path


• Financial Management > Accounts Payable > Setup > Tax Liability

• Financial Management > Accounts Receivable > Setup > Tax Liability

• Material Management > Purchase Management > Setup > Tax Liability

• Sales Management > Order Management > Setup > Tax Liability


• Customer Relationship Management > Order Management > Setup > Tax Liability

Workshop - Configure a Tax Liability

In this workshop, configure a tax liability record for the tax type you created in the previous workshop. Later inthe course, assign that liability to a Customer record.

Navigate to Tax Liability Maintenance.

Menu Path: Financial Management > Accounts Receivable > Setup > Tax Liability

1. From the New menu, select New Liability.

2. In the Tax Liability field, enter XXX (where XXX are your initials).

3. In the Description field, enter XXX Region (where XXX are your initials).

4. Select or verify the following check boxes are selected:

DataField

SelectUse in AP

SelectUse in AR

5. Click Save.

6. From the New menu, select New Tax Type.

The Taxes > Detail sheet displays.

7. In the Tax Type field, select XXX Sales Tax (where XXX are your initials).

8. Click Save and exit Tax Liability Maintenance.

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Product Tax Category Maintenance

Use Product Tax Category Maintenance to classify different products and services based on taxes. In case agroup of products uses a specific rate (not the default rate selected for the tax type), this rate can be assignedto the product tax category.

Note If a Product Tax Category is defined as the default, then tax calculations performed on invoice lineswithout a Product Category will use the default category to identify the relevant taxes and rates.

Tax Connect

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