Streamline A/R Processes with Substitution User Exits
- by Matt Christensen, Director of Enterprise Performance Management, PRAGMATEK Consulting Group
- May 15, 2004
Given the limited configuration opportunities to control financial postings, substitution user exits are an effective way to minimize manual journal entries and enhance reporting capabilities. Using two examples relating to manual cash applications in A/R, the author demonstrates how to optimize substitution user exits.
Financial postings are generated from many sources within R/3. While limited configuration is available to control these postings, opportunities to minimize manual journal entries and enhance reporting capabilities do exist. User exit code within financial substitutions is one such opportunity.
This article will use manual cash applications in accounts receivable to demonstrate the capabilities of user exits. My first example illustrates alignment of the payment terms and profit center for partial payments with the original invoice. The second example shows how to post bad debt directly to Profitability Analysis with an appropriate assignment based on data found in the original invoice.
The capabilities of financial user exits go far beyond these accounts receivable applications. Other examples that I have encountered recently include:
- Expensing delivery goods issues to different accounts based on sales order reason code
- Expensing sample goods issues to different cost centers based on sales organization or plant
- Checking the user name against a custom table to ensure they are posting cash to the appropriate account
- Determining a profit center for balance sheet postings based on offsetting line items
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