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Introduction

The Cash Basis accounting method is straightforward, and more intuitive to a non-accountant than the Accrual Basis method.  In Cash Basis, income is recognized when cash is received, and expense is recognized when a debt is paid.  While Cash Basis accounting is rarely used in industries like manufacturing or distribution, it’s common in real estate, government and non-profit industries among others.

Through the use of Document Types, JD Edwards makes it easy to identify transactions that can be considered Cash Basis or Accrual Basis.  For example:

While the initial setup of Cash Basis in JD Edwards is quick, it does require an ongoing effort to maintain it.  A small but constant percentage of batches fail to post and need to be fixed manually.  This blog entry discusses the initial Cash Basis setups, and some of the techniques for fixing the failed batches.  For a more in-depth look, check out the Cash Basis White Paper found here.  It lists all of the known Cash Basis issues, examples of how to fix them via the system and SQL, and lists several paper fixes that can be applied to improve reliability of Cash Basis.

Setups

Excluded Document Types

The first thing to do is to review all the Document Types that should be EXCLUDED from Cash Basis.  This list is maintained as 00/DX UDC.  It only needs to be reviewed if you added any new Document Types.  This list is already populated with all the default Document Types to be excluded from Cash Basis.

AAI’s for Unapplied Cash Receipts

CByyyy. The system first searches for CByyyy (where yyyy is the general ledger offset from the unapplied receipt). You can enter the general ledger offset when you enter the receipt or, by setting a processing option, allow the value to be supplied from the customer master record.

CBUC. If CByyyy is not set up or if you do not use a general ledger offset, the system then searches for CBUC. The system supplies UC as the default value for the G/L Offset field when you enter unapplied receipts without an offset.

Enabling Cash Basis processing

There are two methods of processing Cash Basis.

1 – call R11C850 as a standalone UBE on a regular basis (daily, weekly, monthly, quarterly). Prior to 8.11, this was the only option available.   I do not recommend this method.

2 – call R11C850 at the batch level.  This is the preferred method of generating Cash Basis entries if you’re on release 8.11 or higher.  It’s enabled via a processing option of R09801 UBE.

This must be done for every R09801 version that is Cash Basis-related.

Processing

When a batch is posted via R09801 and the processing options are configured to process Cash Basis, R11C850 gets called.  This UBE processes the cash side of the journal entry.  Depending on whether an AP or AR transaction is being processed, R11C853 or R11C854 also get called to process the income or expense side.

This type of processing leaves room for errors –R11C850 might find one side of the journal entry, but the other UBE might not.  This would create unbalanced batches that fail to post and need to be fixed.

Remediation

If the failed cash basis batch is from AR (doc type RZ), the most likely reason for failure is a missing income account.  To locate it in the system, go into the cash receipts application and use the document number from the cash basis to find the cash receipt.  When you drill into the cash receipt, you will see the invoice(s) associated with it. Next, use Customer Ledger Inquiry to locate the invoice(s) and click on GL Distribution from the Row exit to find the income account. Plug this income account into the single-sided journal entry and repost the batch.

If the failed cash basis batch is from AP (doc type PZ), the remediation effort is similar.  Most likely there is a missing expense account.  The document number in the failed batch is the payment number.  Use it to find the associated payment via P0413M.  When you drill-in to the payment, note which voucher(s) were paid.  Then use Supplier Ledger Inquiry to pull up the voucher(s) and look at the GL Distribution from the Row exit.  Plug this expense account into the single-sided journal entry and repost the batch.

If a Cash Basis batch is large, it may get overwhelming trying to find and fix the errors within a batch.  While out of scope in this blog entry, there are some SQL statements that can be executed to quickly reset the flags and re-submit the batch for re-processing.  These SQL statements are found in a Cash Basis White Paper here.

Plugging in the missing journal entry will not always work.  Due to an existing bug in JDE, sometimes you may get an error message ‘Add to cache I09UI003 failed’.  When that happens, delete the entire journal entry from the batch, and re-add it again.

More JD Edwards posts

• JD Edwards 9.0 User Interface Enhancements
• How to upload Job Cost budgets from Excel in JD Edwards
• How to upload large quantities of Vouchers in AP
• How to setup Recurring Vouchers in AP
• Cash Basis with Non-Stock PO’s

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