How to Set Up Reason Code in Accounts Receivable (OBBE)

Use

Reason Code in A/R is one of the best way to distinguish partial payment over residual payment method. Setting reason code to justify why a certain invoice is underpaid or overpaid can help you analyze the transaction and assign the correct G/L to the difference. With this, you can also automatically set the description or text  that will appear on the line item.

Procedure

1. On the IMG menu, go to Financial Accounting (New) > Accounts Receivable and Accounts Payable > Business Transactions > Incoming Payments > Incoming Payments Global Settings > Overpayment/Underpayment > Define Reason Codes (OBBE).

2. Enter Company Code.

3. Choose New Entries.

4. Enter the following:

• Reason Key
• Short Text 
• Long Text - This portion appears on the Line Item Text field.

5. Click Save.