Customer & Party

 
A party is an entity that can enter into business and can be of the type Organization or Person. A party exists separately from any business relationship that it enters in to with another party. Information about a party such as addresses and contacts can be shared with the customer accounts of the party. For example, Vision Distribution could be a party within your trading community.

A customer is an organization or person with whom you have a selling relationship. This selling relationship can result from the purchase of products and services or from the negotiation of terms and conditions that provide the basis for future purchases. For example, a division of Vision Distribution could become one of your customers.

A customer account represents the business relationship that a party can enter in to with another party. The account has information about the terms and conditions of doing business with the party. For example, you could open a commercial account for  purchases to be made by Vision Distribution for its internal use and a reseller account for purchases made by Vision Distribution for sales of your products to end–users .

• You can create multiple customer accounts for a party to maintain information about categories of business activities. For example, to track invoices for different types of purchases, you can maintain an account for purchasing office supplies and another account for purchasing furniture.
• You can also maintain multiple customer accounts for a customer that transacts business with more than one line of business in your organization. You maintain separate customer profiles, addresses, and contacts for each customer account.

A customer address is a party site used in the context of a customer account for billing, shipping, or other purposes.
Both Party and customer acount are OU independant where as customer address is OU Specific.

A party site is the location where a particular party is physically located. Every party has only one identifying address, but a party can have multiple party sites.



TCA Bascics
A relationship is defined by the characteristics or terms and conditions of that relationship.
The party model flows through the entire e-business suite. There is just one record to represent both prospect and customer. The entity itself is recorded, such as a person or an organization.
Before the customer terms are established that record represents a prospect and after the customer terms defined it’s a customer.

The party model contains a unique set of information about a person, organization, or relationship. The tables store information such as parties, address, and bank accounts.

You can interact with the party model through the following
1.    Customer forms: Online entry and query of party and customer account information.
2.    Party interface: Batch load of party information

Account Receivables

Oracle Receivables is a full-function accounts receivable system that allows you to manage your customer base, invoice and payment processes effectively.

Oracle Receivables provides four integrated workbenches that you can use to perform most of your day–to–day Accounts Receivable operations. You can use the Receipts Workbench to perform most of your receipt–related tasks and the Transactions workbench to process your invoices, debit memos, credit memos, on–account credits, chargebacks, and adjustments. The Collections Workbench lets you review customer accounts and perform collection activities such as recording customer calls and printing dunning letters. The Bills Receivable Workbench lets you create, update, remit, and manage your bills receivable.

•       An invoice is usually sent shortly after a sale has been made. It states the obligation and provides details.
•       A statement is a summary of the transactions over a period of time. It shows all open transactions. It may also show payments made within the period.
•       A dunning notice informs the customer of past-due obligations.

Permanent and Temporary Accounts

Asset, liability, and most owner/stockholder equity accounts are referred to as "permanent accounts" (or "real accounts"). Permanent accounts are not closed at the end of the accounting year; their balances are automatically carried forward to the next accounting year.

"Temporary accounts" (or "nominal accounts") include all of the revenue accounts, expense accounts, the owner drawing account, and the income summary account. Generally speaking, the balances in temporary accounts increase throughout the accounting year and are "zeroed out" and closed at the end of the accounting year.

Because the balances in the temporary accounts are transferred out of their respective accounts at the end of the accounting year, each temporary account will have a zero balance when the next accounting year begins. This means that the new accounting year starts with no revenue amounts, no expense amounts, and no amount in the drawing account.

By using many revenue accounts and a huge number of expense accounts, a company is certain to have easy access to detailed information on revenues and expenses throughout the year. This allows the management of the company to monitor the performance of all parts of the company. Once the accounting year has ended, the need to know the balances in these temporary accounts has also ended, so the accounts are closed out and reopened for the next accounting year with zero balances.

Cash Account

Because cash is involved in many transactions, it is helpful to memorize the following:

Expenses and Losses

Expenses and Losses are Usually Debited

Revenues and Gains

Revenues and Gains Are Usually Credited

Setup Steps : VII - X

Step 7: Salespersons
Define information on your sales representatives.
This step is optional.

Step 8:Tax
Define tax features, such as codes, rates, exceptions, and exemptions.
This step is required.

Step 9: Quick Codes
Define QuickCodes that provide custom values for many lists of values throughout Order Management.
This step is required if you plan on creating user defined Quickcodes for utilization. QuickCode types that you can define include:
■ Credit Cards
■ Freight Terms
■ Hold Types
■ Note Usage Formats
■ Release Reasons
■ Cancellation Codes
■ Sales Channels
■ Shipment Priorities
Navigation: OM ->Set up ->QuickCodes ->OM

You can create as many quickcodes as you need. You can also inactivate QuickCodes.

Step 10: Workflow
Define order and line processing flows to meet different order and line type requirements.
This step is required.

What Is An Account?

To keep a company's financial data organized, accountants developed a system that sorts transactions into records called accounts. When a company's accounting system is set up, the accounts most likely to be affected by the company's transactions are identified and listed out. This list is referred to as the company's chart of accounts. Depending on the size of a company and the complexity of its business operations, the chart of accounts may list as few as thirty accounts or as many as thousands. A company has the flexibility of tailoring its chart of accounts to best meet its needs.

Within the chart of accounts the balance sheet accounts are listed first, followed by the income statement accounts. In other words, the accounts are organized in the chart of accounts as follows:

    * Assets
    * Liabilities
    * Owner's (Stockholders') Equity
    * Revenues or Income
    * Expenses
    * Gains
    * Losses

chart of accounts

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger. A company has the flexibility to tailor its chart of accounts to best suit its needs, including adding accounts as needed.

Within the chart of accounts you will find that the accounts are typically listed in the following order:
    Balance sheet accounts    
    * Assets
    * Liabilities
    * Owner's (Stockholders') Equity

    Income statement accounts    
    * Operating Revenues
    * Operating Expenses
    * Non-operating Revenues and Gains
    * Non-operating Expenses and Losses

Within the categories of operating revenues and operating expenses, accounts might be further organized by business function (such as producing, selling, administrative, financing) and/or by company divisions, product lines, etc.

A company's organization chart can serve as the outline for its accounting chart of accounts. For example, if a company divides its business into ten departments (production, marketing, human resources, etc.), each department will likely be accountable for its own expenses (salaries, supplies, phone, etc.). Each department will have its own phone expense account, its own salaries expense, etc.

A chart of accounts will likely be as large and as complex as the company itself. An international corporation with several divisions may need thousands of accounts, whereas a small local retailer may need as few as one hundred accounts.

Each account in the chart of accounts is typically assigned a name and a unique number by which it can be identified. (Software for some small businesses may not require account numbers.) Account numbers are often five or more digits in length with each digit representing a division of the company, the department, the type of account, etc.

As you will see, the first digit might signify if the account is an asset, liability, etc. For example, if the first digit is a "1" it is an asset. If the first digit is a "5" it is an operating expense.

A gap between account numbers allows for adding accounts in the future. The following is a partial listing of a sample chart of accounts.

Property, Plant, and Equipment (account numbers 17000 - 18999)
    17000   Land
    17100   Buildings
    17300   Equipment
    17800   Vehicles
    18100   Accumulated Depreciation - Buildings
    18300   Accumulated Depreciation - Equipment
    18800   Accumulated Depreciation - Vehicles

Current Liabilities (account numbers 20000 - 24999)
    20100   Notes Payable - Credit Line #1
    20200   Notes Payable - Credit Line #2
    21000   Accounts Payable
    22100   Wages Payable
    23100   Interest Payable
    24500   Unearned Revenues

Double Entry Accounting

Because every business transaction affects at least two accounts, our accounting system is known as a double entry system. (You can refer to the company's chart of accounts to select the proper accounts. Accounts may be added to the chart of accounts when an appropriate account cannot be found.)

For example, when a company borrows $1,000 from a bank, the transaction will affect the company's Cash account and the company's Notes Payable account. When the company repays the bank loan, the Cash account and the Notes Payable account are also involved.

If a company buys supplies for cash, its Supplies account and its Cash account will be affected. If the company buys supplies on credit, the accounts involved are Supplies and Accounts Payable.

If a company pays the rent for the current month, Rent Expense and Cash are the two accounts involved. If a company provides a service and gives the client 30 days in which to pay, the company's Service Revenues account and Accounts Receivable are affected.

Although the system is referred to as double entry, a transaction may involve more than two accounts. An example of a transaction that involves three accounts is a company's loan payment to its bank of $300. This transaction will involve the following accounts: Cash, Notes Payable, and Interest Expense.

Journal Entries

Another way to visualize business transactions is to write a general journal entry. Each general journal entry lists the date, the account title(s) to be debited and the corresponding amount(s) followed by the account title(s) to be credited and the corresponding amount(s). The accounts to be credited are indented. Let's illustrate the general journal entries for the two transactions that were shown in the T-accounts above.


Date                Account Name     Debit          Credit
June 1, 2008        Cash             5,000   
                  Notes Payable              5,000


Date                  Account Name       Debit     Credit
June 2, 2008         Notes Payable       2,000   
                         Cash                 2,000

Setup Steps : XI - Document Sequences

Step 11: Document Sequences (Order Numbering)

Define Document Sequences for automatic or manual numbering of orders. This step is required.
Order Management uses AOL Document Sequence functionality for order numbering. You can define document sequences that automatically generate numbers for your orders and returns as you enter them. You can define a single document sequence to assign unique consecutive numbers to all your orders and returns, or you can define multiple document sequences that are assigned to different order types. In the latter case, an order or return is uniquely identified by its type and its number, since orders and returns of different types may share numbers.

Document Sequences

Step 11: Document Sequences (Order Numbering)

Define Document Sequences for automatic or manual numbering of orders. This step is required.
Order Management uses AOL Document Sequence functionality for order numbering. You can define document sequences that automatically generate numbers for your orders and returns as you enter them. You can define a single document sequence to assign unique consecutive numbers to all your orders and returns, or you can define multiple document sequences that are assigned to different order types. In the latter case, an order or return is uniquely identified by its type and its number, since orders and returns of different types may share numbers.

Setup Steps : XI - Document Sequences

Step 11: Document Sequences (Order Numbering)

Define Document Sequences for automatic or manual numbering of orders. This step is required.
Order Management uses AOL Document Sequence functionality for order numbering. You can define document sequences that automatically generate numbers for your orders and returns as you enter them. You can define a single document sequence to assign unique consecutive numbers to all your orders and returns, or you can define multiple document sequences that are assigned to different order types. In the latter case, an order or return is uniquely identified by its type and its number, since orders and returns of different types may share numbers.

Document Sequences

Step 11: Document Sequences (Order Numbering)

Define Document Sequences for automatic or manual numbering of orders. This step is required.
Order Management uses AOL Document Sequence functionality for order numbering. You can define document sequences that automatically generate numbers for your orders and returns as you enter them. You can define a single document sequence to assign unique consecutive numbers to all your orders and returns, or you can define multiple document sequences that are assigned to different order types. In the latter case, an order or return is uniquely identified by its type and its number, since orders and returns of different types may share numbers.

Setup Step: 22 - Transaction Types

Transaction Types are used to associate workflows for various phases of sales document (sales orders or sales agreements) processing. You can also associate various values like transaction phases, layout templates, approvers to a transaction type and these will be defaulted on the sales order or sales agreement

Transaction(Order/Line) Types

Line Transaction Types

Transaction Types

Transaction Types are used to associate workflows for various phases of sales document (sales orders or sales agreements) processing. You can also associate various values like transaction phases, layout templates, approvers to a transaction type and these will be defaulted on the sales order or sales agreement

Transaction(Order/Line) Types

Line Transaction Types

Setup Step: 22 - Transaction Types

Transaction Types are used to associate workflows for various phases of sales document (sales orders or sales agreements) processing. You can also associate various values like transaction phases, layout templates, approvers to a transaction type and these will be defaulted on the sales order or sales agreement

Transaction(Order/Line) Types

Line Transaction Types

Transaction Types

Transaction Types are used to associate workflows for various phases of sales document (sales orders or sales agreements) processing. You can also associate various values like transaction phases, layout templates, approvers to a transaction type and these will be defaulted on the sales order or sales agreement

Transaction(Order/Line) Types

Line Transaction Types

Defining Account Aliases

An account alias is an easily recognized name or label representing a general ledger account number. You can view, report, and reserve against an account alias. During a transaction, you can use the account alias instead of an account number to refer to the account.

Entering Parties and Customer Accounts

• Name for an Organization customer account type
• First name and last name for a Person customer type
• Address
• Postal code
• First name and last name in the Contact region

• The title bar of the Match Results window displays the Customer Type used for the search and the search criteria.
• If a party has multiple customer accounts, the party name displays (indented to the right) in the Name column next to each customer account.
• If the Identifying Address Flag check box is checked, then other party sites could exist for this party.

 

 

4. Create a new customer against an existing party
To create a new customer account for an existing party, highlight the row for that party, then click the OK button.

New customer entery form opens with the existing organization number(party number). You can change the party name and customer number and enter a new account name.

Save the record after entering all the details.

 

2.1 Entering Parties and Customer Accounts

• Name for an Organization customer account type
• First name and last name for a Person customer type
• Address
• Postal code
• First name and last name in the Contact region

• The title bar of the Match Results window displays the Customer Type used for the search and the search criteria.
• If a party has multiple customer accounts, the party name displays (indented to the right) in the Name column next to each customer account.
• If the Identifying Address Flag check box is checked, then other party sites could exist for this party.

 

 

4. Create a new customer against an existing party
To create a new customer account for an existing party, highlight the row for that party, then click the OK button.

New customer entery form opens with the existing organization number(party number). You can change the party name and customer number and enter a new account name.

Save the record after entering all the details.

 

Entering Parties and Customer Accounts

• Name for an Organization customer account type
• First name and last name for a Person customer type
• Address
• Postal code
• First name and last name in the Contact region

• The title bar of the Match Results window displays the Customer Type used for the search and the search criteria.
• If a party has multiple customer accounts, the party name displays (indented to the right) in the Name column next to each customer account.
• If the Identifying Address Flag check box is checked, then other party sites could exist for this party.

 

 

4. Create a new customer against an existing party
To create a new customer account for an existing party, highlight the row for that party, then click the OK button.

New customer entery form opens with the existing organization number(party number). You can change the party name and customer number and enter a new account name.

Save the record after entering all the details.

 

2.1 Entering Parties and Customer Accounts

• Name for an Organization customer account type
• First name and last name for a Person customer type
• Address
• Postal code
• First name and last name in the Contact region

• The title bar of the Match Results window displays the Customer Type used for the search and the search criteria.
• If a party has multiple customer accounts, the party name displays (indented to the right) in the Name column next to each customer account.
• If the Identifying Address Flag check box is checked, then other party sites could exist for this party.

 

 

4. Create a new customer against an existing party
To create a new customer account for an existing party, highlight the row for that party, then click the OK button.

New customer entery form opens with the existing organization number(party number). You can change the party name and customer number and enter a new account name.

Save the record after entering all the details.

 

Transaction Type

Use transaction types to define the accounting for the invoices, debit memos, credit memos, commitments(Guarnatee, Deposit),   chargebacks, on–account credits,  and bills receivable you create in Receivables.
Transaction types also determine whether your transaction entries update your customers’ balances and whether Receivables posts these transactions to your general ledger.

1. If AutoAccounting depends on transaction type, Receivables uses the general ledger accounts that you enter here, along with your AutoAccounting rules, to determine the default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, and AutoInvoice clearing accounts for transactions you create using this type.

2. For bills receivable, the accounts that you enter here determine the bills receivable, unpaid bills receivable, remitted bills receivable, and factored bills receivable accounts for a bill receivable.

3. You can associate transaction types with your invoice sources in the Transaction Sources window to speed data entry in the Transactions and Credit Transactions windows. Active transaction types appear as list of values choices in the Transactions, Reverse Receipts, Credit Transactions, and Transaction Sources windows, and for bills receivable in the Bills Receivable and Receipt Classes windows.

4. You should define your transaction types in the following order:

• credit memo transaction types
• invoice, debit memo, and chargeback transaction types
• bills receivable transaction types
• commitment transaction types - Guarantee, Deposit

5. To be able to void a debit memo, credit memo, on–account credit or invoice, define a Void transaction type with ’Open Receivables’ and ’Post to GL’ set to No. Then, as long as there is no activity against the transaction and it has not been posted to your general ledger, you can make it invalid by simply changing the transaction type to ’Void’.

Define a transaction type
Navigate to the Transaction Types window.
1. Enter a Name and Description for this transaction type.

2. Enter a Class for this transaction type. Choose from the following classes: Invoice, Chargeback, Credit Memo, Debit Memo, Deposit, or Guarantee. If you choose Deposit or Guarantee, Receivables sets Open Receivable and Post to GL to Yes, Allow Freight, Tax Calculation, and Allow Overapplication to No, Creation Sign to ’Positive Sign,’ and Natural Application Only to Yes

3. Enter the payment Terms to use for transactions with this transaction type.

4. If this transaction type’s class is not Deposit or Guarantee, indicate whether you want transactions with this type to update your customer balances by checking or unchecking the Open Receivable box. If Open Receivable is set to Yes, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on–account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes. If you are defining a ’void’ transaction type, set Open Receivable to No.

Suggestion: You can use the Open Receivable option to implement an approval cycle for any temporary or preliminary debit memos, credit memos, on–account credits, chargebacks, and invoices that you may use in your business. For particularly sensitive debit memos, credit memos, on–account credits, chargebacks, and invoices that you may want to review, you can define a transaction type called Preliminary with Open Receivable set to No. This transaction type does not update your customer balances. When you review and approve the item, you can then change the transaction type to Final (a transaction type that you define with Open Receivable set to Yes) which will update your customer’s balances.

5. To be able to post transactions with this type to your general ledger, check the Post To GL box. The default is the value you specified for the Open Receivables option. This box must be checked if the class is Deposit or Guarantee.
If you are defining a ’void’ transaction type, do not check this box.

6. Choose a Transaction Status of Open, Closed, Pending, or Void. Use these statuses to implement your own invoice approval system. Enter ’Void’ to void debit memos, on–account credits or invoices to which you assign this transaction type.

1. To allow freight to be entered for transactions with this transaction type, check the Allow Freight box.

2. To let Receivables calculate tax for transactions with this transaction type, check the Tax Calculation box. If you do not check this box, the Tax Code field in the Lines window will not be required and Receivables will not perform tax calculations or create tax accounting entries for transactions with this transaction type (this is also true for transactions in Oracle Order Management and Oracle Sales and Marketing).

3. Choose a Creation Sign. The default is Positive Sign for transaction types with a class of either Guarantee or Deposit. If you are using the Cash Basis accounting method, your transaction’s creation sign must be either Positive Sign, Negative Sign, or Any Sign. You cannot update this field after you enter transactions with this type.

4. If this transaction type’s class is not Deposit or Guarantee and you want to restrict the direction in which items with this transaction type can be updated by applications entered against them, check the Natural Application Only box. If you check this box, Receivables sets Allow Overapplication to No. You cannot update this option after you save this transaction type.

5. If this transaction type’s class is not Deposit or Guarantee, and you did not check the Natural Application Only box, choose whether to Allow Overapplication against items with this transaction type by checking or unchecking this box. If you check this box,  Receivables sets Natural Application to No and you cannot update it after you save this transaction  ype. If you use the Cash Basis accounting method, the default value is No and you cannot change it.

6.  Enter an Application Rule Set for this transaction type or select one from the list of values (optional). An Application Rule Set determines the default payment steps when you use the Applications window or AutoLockbox to apply receipts to transactions using this type. If you do not enter a rule set, Receivables uses the rule set in the System Options window as the default.

Account
1. Enter the Receivable Account for transactions with this transaction type. Receivables uses this information, along with your AutoAccounting definition, to determine the receivable accounts for transactions with these types. Receivables creates a receivables transaction record using this account so you can transfer to your general ledger and create a journal entry if Post To GL is Yes for this transaction type.

2. Enter a Revenue Account for transactions with this transaction type. Receivables skips this field if Allow Freight is set to No. Receivables uses this information, along with your AutoAccounting definition, to determine the revenue account for transactions with this transaction type.

3. If this transaction type’s class is Invoice or Credit Memo, enter an Unbilled Receivable Account. When you use the Bill In Arrears invoicing rule, Receivables uses this information, along with your AutoAccounting definition, to determine the Unbilled Receivable account for transactions with this transaction type.

4. If this transaction type’s class is Invoice or Credit Memo, enter an Unearned Revenue Account. Receivables uses this information, along with your AutoAccounting definition, to determine the unearned revenue account for transactions with this transaction type. Receivables only uses this account when your transaction’s invoicing rule is Bill In Advance.

5. Enter a Freight Account for transactions with this transaction type. Receivables uses this information, along with your AutoAccounting definition, to determine the freight account for transactions with this transaction type. Receivables skips this field if this transaction type’s class is Deposit or Guarantee or if Allow Freight is set to No.

6. If this transaction type’s class is Invoice, Credit Memo, or Debit Memo, enter a Tax Account. Receivables uses this information along with your AutoAccounting definition to determine the tax account for transactions with this transaction type.

7. If this transaction type’s class is Invoice or Debit Memo, enter a Clearing Account for transactions with this transaction type.Receivables uses this account to hold any difference between the revenue amount specified for the Revenue account and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this feature for transaction sources that you use for your imported transactions.
 

Transactions

Transactions, such as invoices, credit memos, receipts and adjustments, are entered against a customer account. Over time the customer's account evolves as new invoices are raised, credits and receipts are applied and adjustments are made. Paid invoices and their corresponding receipts are of no long-term interest in Receivables and disappear from the Aging Reports. However, each transaction will be posted to General Ledger and will have contributed to the receivables, revenue, tax, and cash balances.

Use the Transaction window to enter your invoices, debit memos, credit memos, and commitments. You can also query and update your transactions in this window and review your transactions and chargebacks in the Transactions Summary window. For a list of fields you can update.

When you enter an invoice, Receivables uses your AutoAccounting rules to determine your default general ledger accounts. You can enter transactions one at a time or in a group called a batch.
Your system administrator determines whether you can delete a transaction.

Note: You can view the detail accounting lines for existing transactions in the form of a balanced accounting entry (i.e. debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as t–accounts.

Chargebacks and adjustments @
http://www.oracleug.com/user-guide/account-receivables/chargebacks-and-adjustments

Invoices

Each invoice lists what the customer has received and explains how the total invoice amount, which may include tax and freight charges, has been calculated.

Invoices are entered in Oracle Receivables through the Transactions window or the Transactions Summary window, or they are imported through the AutoInvoice open interface. You must provide the customer number and bill-to address, the receivables account and freight account, and revenue and tax accounts for each invoice line. An invoice increases the customer's account balance by the invoice amount. Here are the accounting entries that would be created for a sample invoice amount of $125:


An invoice often has multiple revenue account lines. For example, an invoice from a hardware reseller for a PC server and installation shows two separate lines on the invoice. The PC sale and the installation service are posted to different revenue accounts

Manually enter an invoice or a debit memo: 
Navigate to the Transactions window.

1.1. Enter the transaction batch Source for this transaction. The default is the source you entered at the batch level. If there is no batch information, you must enter a source. The transaction batch source specifies automatic or manual batch and invoice numbering and the standard transaction type.

1.2. If your batch source does not specify Automatic Invoice Numbering, enter a transaction Number. Otherwise, Receivables assigns a number when you save. If you are adding transactions to a batch,the transaction number must be unique within this batch.
Attention: Once you save a transaction, you cannot update the transaction number.

1.3. Choose a transaction Type with a class of Invoice or Debit Memo.
Transaction types determine whether a transaction updates your open receivables, can be posted to your general ledger, if Receivables calculates tax, the transaction’s creation sign, and whether transactions with this type use natural application only or will allow overapplication. The transaction type also provides the default transaction class, payment term, and printing options for each transaction.

You can set up AutoAccounting to use transaction types when determining your general ledger accounts. If AutoAccounting depends on transaction type and you change this value, Receivables displays a pop–up window asking you if you want to recalculate all of your general ledger accounts. If you choose Yes, Receivables reruns AutoAccounting and makes the appropriate changes to your accounts (unless the transaction is a chargeback).

1.4. Enter the Date and Currency of this transaction. The default date is either the batch date or, if there is no batch information, the current date. The default currency is either the currency entered at the batch level or your functional currency, but you can change it to any currency that is defined in Receivables. If the currency is different from your functional currency, and you have not defined daily conversion rates, enter exchange rate information.
Note: You can optionally account for rounding differences that can occur when you create foreign currency transactions by enabling: Header Level Rounding.

1.5 If the transaction batch source you entered has Post to GL set to Yes, enter the GL Date for this transaction. The default GL Date is the current date. However, if the current date is not in an open period, the default is the last date of the most recent open period. The GL Date you enter must be in an Open or Future period.

1.5 If you are using manual sequence numbering, open the More tabbed region, then enter a unique Document Number. Otherwise, Receivables assigns a document number when you save.

2.1 Enter the customer Bill–to Name and Location for this transaction.

3.1 Enter the payment Terms for this transaction. Receivables calculates the Due Date based on the payment terms and date of this transaction. If you enter a split payment term, the due date is the date that the first payment is due.
Receivables uses the following hierarchy to determine the default payment terms, stopping when one is found:

• customer bill–to site level
• customer address level
• customer level
• Transaction Type

3.2 Enter a Salesperson (optional). If the system option Require Salespersons is Yes and you did not assign a salesperson to this customer at the customer or site level, you must enter a salesperson.

3.3 Select the invoicing rule

4.1 To enter the goods or services to bill to this customer, choose Line Items, then enter the Item, Quantity, and Unit Price for each item.
Receivables automatically calculates the total Amount for each line.

4.2 To enter Freight information for this transaction, choose Freight.

4.3 To review or update tax information for this line, choose Tax.
Receivables displays a default Tax Code (or tax group) if you defined one at one of the following levels: item, customer, customer site (and system level, if your tax method is ’VAT’). You can override this value if the profile option Tax: Allow Override of Tax Code is set to Yes.
Note: If you override a tax code, Receivables preserves the override across all updates to the invoice. Similarly, changing
the ship–to address or the line item could change the default tax code.

Transaction Window Fields

Remit–to Address: The remit–to address for this transaction. The remit–to address is the address to which customers send payments. The default is the remit–to address assigned to the country, state, and postal code for this customer address, but you can change it.

Sold To Customer: The customer to whom you sold the goods and services. This customer could be different from your ship–to or bill–to customer. The default is the bill–to customer for this transaction, but you can change it.

Paying Customer Region
Use the fields in this region to indicate that this transaction will be paid by automatic receipt.

Account Number: The bank account number. If the profile option AR: Mask Bank Account Numbers is set to Yes, some bank account numbers appear as asterisks (*).

Paying Customer: The customer associated with the customer bank account assigned to your invoice. This could be different from the billing customer if, for example, you wanted a primary customer to pay for related invoices.

Payment Method: The payment method assigned to this transaction.
You can choose any payment method defined for this customer or a primary customer to which it is related, as long as the invoice date is within the payment method active date range and the payment method has bank accounts in the currency of the invoice or at least one of its bank accounts has the Receipts Multi–Currency flag set to Yes. Enter a payment method to automatically receive payment for this invoice with a direct debit or bill of exchange. Receivables uses the following hierarchy to default a value for this field: 

• the primary Payment Method of the parent site
• the primary Payment Method of the primary customer
• the primary Payment Method of the bill–to site
• the primary Payment Method of the bill–to customer

Tax Exemptions Region

Certificate: If you enter ’Exempt’ in the Tax Handling field, enter a tax exemption Certificate Number. Use the list of values to select an existing tax exemption certificate number.

Reason: If you enter ’Exempt’ in the Tax Handling field, enter a Reason for creating this exemption, or select from the list of values. You can define additional exemption reasons in the Receivables Lookups window.

Tax Handling: You can enter a value for this field only if the profile option Tax: Allow Override of Customer Exemptions is Yes and the transaction is not a chargeback. Use the default value of ’Standard’ if you want tax to be calculated as per the normal procedures set up in Receivables.  Enter ’Exempt’ if your system option Use Customer Exemptions is set to Yes and you want to force tax exemption on the invoice lines. Enter ’Require’ to force tax calculation on the invoice
lines. If you update this field, there will be no affect on existing invoice lines; only new invoice lines will get the new value as a default.

Invoice Date: Receivables prints the invoice date on your invoice.
Receivables calculates the due date from the invoice date and payment terms you assign to this invoice. The default value is the batch date if you entered a batch, or the current date if you did not enter batch information.
If you change the invoice date, Receivables automatically recalculates the due date and the associated tax.

Finance Charges: Use this field to indicate whether finance charges are calculated against this invoice, debit memo, or chargeback. If you leave this field blank or choose ’If Appropriate’, Receivables calculates finance charges according to your customer’s credit profile. If you choose No, Receivables does not calculate finance charges on this transaction,
regardless of the customer’s credit profile.

Default Tax: You can enter a value for this field only if the profile option Tax: Allow Override of Customer Exemptions is Yes and the transaction is not a chargeback. Use the default value of ’Standard’ if you want tax to be calculated as per the normal procedures set up in Receivables. Enter ’Exempt’ to force tax exemption on the invoice lines, and your system option Use Customer Exemptions is set to Yes. Enter ’Require’ to force tax calculation on the invoice lines. If you update this field, there will be no affect on existing invoice lines; only new invoice lines will get the new value as a default.

Dispute Amount: The current amount of this invoice, debit memo, or chargeback that is in dispute. Receivables sums up the dispute amounts for each installment of your payment schedule and displays the total in this field. You can either increase or decrease the dispute amount. If you enter 0 (zero), the debit item is no longer in dispute. If your debit
item does not have split terms, then you can enter a dispute amount that is between zero and the balance due for this item.
You can also place a debit item in dispute in the Customer Calls window, and review your in dispute debit items in the Disputed Invoice Report. For debit items with split terms, you can enter the dispute amount for each installment in the Installments window or you can set it to either the balance due or zero in this field.

Original Transaction: When you query a chargeback in the Transactions window, this field shows the transaction for which the chargeback was created.

Agreement: If entering an invoice, this is the order agreement this invoice is against. You can only enter this field if you have defined an agreement with the selected customer or customers related to the selected customer. You can associate an agreement with your customer in the Sales Orders window in Oracle Order Management.
If you are entering a commitment, this is the agreement to associate with this commitment. You can only use agreements defined in Oracle Order Management.

Cross Reference: The transaction to relate to this invoice. This field is optional. You can choose any transactions that are assigned to your bill–to customer or a selected customer. If you enter a cross reference transaction number and then change your bill–to customer, Receivables will erase the value in this field.

Status: (Transactions window) The status of this transaction. This is a user maintainable field and you can define values for it in the Receivables Lookups window. Possible values include Open, Pending, Closed, or Void. This field is not used by Receivables, therefore it is not updated automatically when an invoice is paid off, closed, etc. You have to manually update this field.

Warehouse (More Tab)
If you entered an inventory item, enter a Warehouse Name to indicate the ship–from location for this item (optional). If
AutoAccounting is based on Standard Lines, you can use the inventory item and warehouse name to create accounting flexfield information. For example, you use multiple inventory organizations and set up AutoAccounting to create the Revenue account based on standard lines. AutoAccounting uses the item and warehouse that you enter here to create the Product segment of your Revenue account.

 Consolidated Bill Number The consolidated billing invoice number on which this transaction appeared. You can view all transactions that appeared on a specific consolidated billing invoice by entering a consolidated bill number and performing a query on this field. This field appears only if the profile option AR: Show Billing Number is setto Yes.

Reviewing Accounting Information

Receivables uses AutoAccounting to create the revenue accounts for your invoice after you enter your invoice lines. You can review or update the revenue account assignments for your invoice in the Accounting window.

If you are reviewing an invoice that uses rules, you must run the Revenue Recognition Program before you can view accounting information in this window. You can change the Accounting Flexfield for each account, but you cannot create or delete lines in the Accounting window. If you change a row that has already been posted, Receivables does not alter the posted  entry; instead, it makes the adjustments through additional entries.Accounting Rule: The accounting rule for this invoice line.

Accounting rules: are used to recognize revenue over multiple general ledger periods. If you entered an invoicing rule at the invoice header–level, you must enter a value in this field. If you did not enter an invoicing rule, Receivables skips this field. If you have selected a standard memo line or an item with an accounting rule for this invoice line, Receivables defaults this field to that accounting rule.
Amount: The specific amount of the invoice line to assign to this revenue account.
GL Date: The date that this account will post to your general ledger.
The default is the general ledger date you entered for this invoice. You cannot change this date. If you are using invoicing rules, Receivables does not display the general ledger date until you run the Revenue Recognition Program.
Percent (%): The percentage of this invoice line to assign to this revenue account.Entering Freight Information

Recognizing Revenue

Please read the basic concepts of payment terms, Invocing with rules and accounting rules @
http://www.oracleug.com/node/9

1. Creating an Invoice for Revenue Recognition

To make an invoice eligible for revenue reorganization, set the invoicing rule and accounting rule while creating the invoice The Invoicing rule provided tells Revenue Recognition how you want it to create the distributions for the Receivable account.

You set the accounting rule in the lines of the invoice, where you also provide duration & rule start date information to make the system create the distributions for the Revenue account.
After you finish creating and completing an invoice, records are created in RA_CUST_TRX_LINE_GL_DIST_ALL that provide a template or model for the Revenue Recognition engine to use.

After the invoice is completed, you will need to run Revenue Recognition so it can create the necessary distributions. There are many different  ways to run Revenue Recognition:

2. Run Revenue Recognition
Run the Revenue Recognition program to generate the revenue distribution records for your invoices and credit memos that use Invoicing and Accounting Rules. You assign accounting rules to recognize revenue over several accounting periods. The Revenue Recognition program will create distribution records for the invoices and credit memos that you create in Receivables and import using AutoInvoice.

2.1 Standalone process in batch mode.
This standalone method provides users the ability to run Revenue Recognition at any given time.

Responsibility: Receivables Manager
Navigation: Control > Accounting > Revenue Recognition

The Revenue Recognition Master Program is capable of running the process using multiple workers. This feature is useful when processing large volumes of data. Invoices pending Revenue Recognition are stored in a queue: AR_REV_REC_Q. Records from this queue are removed once they have been processed by the Master program.

The Revenue Recognition program uses the accounting distribution sets  that you specify in the Transactions window or import into Receivables using AutoInvoice to determine the accounts of your newly created revenue distribution records.

There are two Revenue Recognition programs: Revenue Recognition and Revenue Recognition Master. The Revenue Recognition Master program is for parallel processing only and takes advantage of the Oracle scalability feature to reduce processing time by running on multiple processors, or workers. The Revenue Recognition Master program determines the maximum number of parallel processors needed for your transaction volume and uniformly distributes the processing over these workers. You can set a maximum number of processors for the Revenue Recognition Master program to use at runtime. This scheduling capability allows you to take advantage of off–peak processing time. You choose the Revenue Recognition program that you want to use at runtime.

When you submit the program, Revenue Recognition selects all transactions that have invoicing and accounting rules and that have not yet been processed since you last submitted the program. The program creates the revenue distribution records for all accounting periods specified by the accounting rule on each transaction line. If a deferred accounting rule exists, then Revenue Recognition will create the distribution records for an unearned revenue account.

Revenue Recognition also creates the receivable, tax, freight, and AutoInvoice clearing account assignments which correspond to the GL date of each invoice included in your submission.

If you later decide that the GL distributions need to be reclassified, you can change the individual distribution on the transaction. Receivables will automatically create the reverse accounting entries. If the GL date for a transaction is in a period that has a status of either Closed or Close Pending, Revenue Recognition changes the revenue GL date to the first subsequent period that has a status of Open, Future, or Not Open. If the GL date for a transaction is in a period that has a status of Open, Future, or Not Open, Revenue Recognition creates the revenue in the accounting period specified by the accounting rule.

2.2 Online in Transactions form

Available only in Release 12, in the Transactions form, you can invoke the creation of accounting for a specific invoice.

Responsibility: Receivables Manager
Navigation: Transactions > Transactions

After completing an invoice, or after querying a completed invoice, access from the Toolbar: Menu > Create Accounting.

2.3 Implicitly via the transfer to General Ledger

Since Revenue Recognition creates the GL distributions necessary for posting, the process that transfers to the General Ledger will invoke Revenue Recognition to ensure that all necessary distributions exist before attempting to post. This process has changed between Release 11.5 and 12.

In Release 11.5:
Responsibility: Receivables Manager
Navigation: Interfaces > General Ledger

In Release 11.5, when running the General Ledger Transfer process

• You can not disable the call to Revenue Recognition
• The Revenue Recognition execution report is always submitted in Detailed mode

2.4 Submit Accounting
In Release 12.0:
Responsibility: Receivables Manager
Navigation: Control > Requests > Run

Run the request for: Submit Accounting, and provide the parameters requested

Submit accounting is different from Create Accounting,. Create accounting never calls Revenue Recognition. If you use this process, there is a likelihood that you will not post everything from Receivables if there are invoices still pending to be processed by Revenue Recognition.

You are advised to use Submit Accounting which was created specifically for Oracle Receivables. This process calls: Revenue Recognition prior to calling Create Accounting. This ensures the necessary GL distributions are created by Revenue Recognition.
 

In Release 12.0, when running Submit Accounting

• You cannot disable the call to Revenue Recognition
• The Revenue Recognition execution report is always submitted in Summary mode

Entering Commitments

Receivables lets you create two types of commitments:
Deposits: Create a deposit to record a customer’s prepayment for goods or services that you will provide in the future.
Guarantees: Create a guarantee to record a contractual agreement with your customer to conduct business over a
specified period of time.

Remaining Balances
Deposit Deposit balances refer to the amount due remaining on the deposit. Receipts and credits reduce the deposit balance.
Commitment Commitment balances refer to the contractual amount that has not yet been invoiced. Invoices against commitments reduce the commitment balance.
Invoice Invoice balances refer to the amount due remaining on the invoice. Deposits, receipts, and credits reduce the invoice balance

Creating customer Commitments

•  customer Bill–to site level
•  customer address level
•  customer level
•  Transaction Type

Completing Transactions

Before you can complete a transaction in Receivables, you must ensure that all required information for that transaction type has been entered.

More on Transactions

Copying Invoices
The Copy Transactions window lets you automatically create invoices for goods or services that you regularly provide to your customers. For example, you need to bill your customers for services or products provided once a month for two years, but do not want to manually create a new invoice every month. By creating invoice copies, you can quickly create a group of invoices that share the same characteristics.

All of the dates for the copied invoices (for example, invoice date, GL date, and due dates) are determined using the copy rule that you specify.
When you copy invoices, Receivables does not derive the exchange rates and tax rates from the copied invoice date. Instead, it derives the exchange rate and tax rate from the date of your first copied invoice. Consequently, if you are copying invoices in a foreign currency, or have tax rates that change over time, you may need to manually update the
exchange rate and tax rate. 

You can use the Transactions window to update the tax rates for your copied invoices.
Attention: If the invoice you are copying has lines that use inclusive tax codes and a tax rate has changed, the line amounts for your copied invoice(s) will also be different from the original transaction. This is because the line amount for a line assigned to a tax inclusive tax code includes tax. If the tax rate for any of the original invoice’s lines has changed, the line, tax, revenue, and sales credit amounts for the copied invoice(s) will be different from the original transaction.
Receivables uses the invoice amount from your model invoice on your copied invoices. Therefore, even if the model invoice has been credited, adjusted, or paid, the amount for all copied invoices is equal to the original invoice amount.

You can copy invoices as often as you want and create copies from any existing invoice, even if it is closed.
You create, review, and update copied invoices in the Transaction window.

Voiding Transactions
Receivables lets you make a debit memo, credit memo, on–account credit, invoice, or chargeback invalid by updating the transaction type.
You can only void a transaction if both of the following are true:

• it does not have any activity against it
• it has not been posted to your general ledger

Maintaining Transactions
You can review and update invoice, debit memo, deposit, guarantee, credit memo, on–account credit memo, and chargeback information for transactions you enter manually or import into Receivables using AutoInvoice.
If the Allow Change to Printed Transactions system option is Yes, you can update most transaction information, even if it has been printed.
However, once there is activity against it, Receivables does not let you update most transaction attributes. Activity includes actions such as payments, credit memos, adjustments, and including the transaction on a consolidated billing invoice.

You can update debit item information such as the due date, PO number, salesperson, and remit–to address. You can also place a debit item in dispute by specifying a dispute amount, exclude a debit item from finance charges, or update the bill–to information. Receivables also lets you enter or update the exchange rate of your debit item if your debit item does not have any activity against it.
You can also record other information by adding notes about your debit items in the Notes tabbed region of the Transaction window.

Printing Transactions
The Print Invoices window lets you generate invoices, debit memos, commitments, chargebacks, credit memos, and adjustments to send to your customers. You can preview the transactions that will print by selecting the Invoice Print Preview program.
Note: You can also use Consolidated Billing to create a single document that summarizes all of a customer’s activity for a
specific period. The system option Allow Change to Printed Transactions determines whether you can update a transaction after it has been printed. However, you cannot update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, and including the transaction on
a consolidated billing invoice.

The Print Date field in the Transactions window shows you the last time a transaction was printed.

Crediting Transactions

Receivables lets you fully or partially credit your invoices while it automatically creates all the accounting reversal entries for you. You can use the Credit Transactions window or AutoInvoice to create your credit memos. The accounting is always the same whether the credit memo is imported through AutoInvoice or entered manually using the Credit Transactions window.

Use the Credit Transactions window to enter, update, and review credit memos against specific invoices, debit memos, or commitments. You create credit memos to reduce the balance due for a transaction. When you credit a transaction, Receivables creates the appropriate accounting entries and reverses any sales credit assigned to your salespeople.

 

Receipts

A receipt is a written acknowledgement that a specified article or sum of money has been received as an exchange for goods or services. The receipt acts as the title to the property obtained in the exchange.

In oracle receipts are processed in three steps: Creation(approval)/Confirmation, Remittance and Clearance.

Manual Receipts

• Manual receipts are entered in receipt workbench and can be entered individually or in a batch.
• The customer balance is updated when the receipt is saved.
• Manual receipts can be cash or miscellaneous receipts.

QuickCash Receipts

• You can enter receipts manually or using AutoLockbox. QuickCash receipts must be entered in a batch.
• The customer balance is updated when the batch is posted.
• You can simplify the receipt application process using AutoCash rule sets.

Automatic receipts

• Automatic receipts can be a bill of exchange (BOE), direct debit, or credit card receipt and Automatic receipts must be entered in a batch.
• Automatic receipts are created, approved, and formatted. The customer balance is updated during the approval process.
• Automatic receipts require customer authorization and customer bank information, and they can require customer confirmation.

Receipt Type

You can enter two types of receipts in Receivables:

1. Cash receipts: Payment (such as cash or a check) that you receive from your customers for goods or services.
2. Miscellaneous receipts: Revenue earned from investments, interest, refunds, and stock sales.

• You can apply receipts to invoices, debit memos, deposits, guarantees, on–account credits, and chargebacks.
• You can partially or fully apply a receipt to a single debit item or to several debit items.
• You can enter receipts and apply them to transactions in either Open or Future accounting periods.
• If you do not specify a customer for a receipt, the receipt is unidentified. In this case, the receipt amount appears in the Unidentified field in the Receipts window (Application Summary tabbed region). You cannot apply an unidentified receipt.

Receipt Status
A receipt can have one of the following statuses:
Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.
Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed.
Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts.
Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts.
Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non–sufficient funds or if you want to re–enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous receipts.

2.1 Applying Receipts
2.2 Chargebacks and Adjustments
2.3 Bills of Exchange

Demo : Customer Receipts - Bank Deposits - Remittances

Applying Receipts

Use the Applications window to apply your receipts or on–account credits.

• You can apply all or part of a receipt or on–account credit to a single debit item or to several debit items. For example, your customer may send a single check to pay all of one invoice and part of another invoice. Or, a customer may have an on–account credit he will expect you to use with his receipt to close an open debit item.
• You cannot apply an unidentified receipt; you must specify the customer who remitted the receipt before you can apply it to a transaction.
• You can apply a receipt to an unrelated customer’s debit items if the system option Allow Payment of Unrelated Invoices is set to Yes.
• You can apply receipts to any type of transaction except guarantees and standard credit memos.
• You can also combine on–account credits with a customer’s receipts to increase the amount you can apply to debit items, leave partial receipt amounts unapplied, or place an amount on–account. If you leave partial receipt amounts unapplied, you can write off the remaining receipt balances.
• You can apply receipts in the same foreign currency as your transactions. Enter foreign currency exchange rate information using predefined exchange rates, or enter your own rate. When you post a foreign currency receipt application to the general ledger, Receivables records a realized gain or loss amount.
• If you have set up Receivables to use cross currency receipts, you can apply a receipt in one currency to one or more transactions in different currencies.
• Receivables uses the transaction type of the debit item to which you are applying the receipt to validate the application amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the debit item. If the transaction type specifies Natural Application only, you must enter an amount that brings the balance due closer to zero.
• Receivables uses the Application Rule Set assigned to this debit item’s transaction type to determine how to reduce the open line, tax, freight, and finance charge amounts. If there is no application rule set assigned to this item’s transaction type, Receivables uses the application rule set in the System Options window.

Cross Currency Receipts

When your customer remits payment for an invoice, debit memo, or chargeback, the receipt is usually in the same currency as the transaction. However, there may be times when your customer remits payment in a currency that is different than the currency of the open debit item. For these occasions, Receivables lets you create cross currency receipt applications to let you fully or partially process the payment.

For example, you create Invoice 101 in Canadian dollars (CAD) but your customer sends a receipt in Deutsche marks (DEM) as payment. Using the remittance information provided by your customer, you can either fully or partially apply this receipt to Invoice 101. Receivables automatically calculates the open balance on the invoice (if any) and the foreign exchange gain or loss (FXGL) for this application. You can apply receipts to transactions using any currency defined in Oracle General Ledger.

Because of fluctuating exchange rates between currencies, cross currency applications must be evaluated to determine their effect within Receivables and the corresponding accounting entries created in your general ledger. With each cross currency application, you can incur either a foreign exchange gain or loss (FXGL). 
 
When you apply a receipt to a transaction that is in a different currency, Receivables first determines the transaction and the receipt amounts in your functional currency. Receivables then compares these amounts to determine the foreign exchange gain or loss for this application. If the result is positive, you will incur a foreign currency exchange gain for this application; if the result is negative, you will incur a foreign exchange loss.

Note: As with same currency receipt applications, Receivables accounts for your FXGL using the Realized Gains and Realized Losses accounts that you defined in the System Options window.
 

Viewing Discounts on a Cross Currency Receipt Application
When you apply a receipt to multiple transactions that are in different currencies, Receivables does not display the total discount amount in the Receipts window (Application Summary tabbed region). This is because Receivables always calculates discounts in the currency of the transaction. Since there are multiple transactions with multiple currencies involved in this type of application, the total discount cannot be expressed in a single currency. Therefore, you can only view the discount for each application separately in the Applications window.
To do this, perform the following:

• query the receipt in the Receipts window
• choose the Applications button
• scroll to display the Discounts field (if this field does not appear in the window, choose Show Field, then Discounts from the Folder menu)

Accounting Entries in Multiple Currencies
When you enter a receipt or a transaction that is not in your functional currency, Receivables requires that you enter the applicable exchange rate in the Exchange Rates pop up window. This lets Receivables  account for amounts in both your functional currency and the currency of the transaction.

Customer Remittance Information
When applying cross currency receipts, your customer needs to provide you with the following remittance information:

• to which invoice(s) this receipt should be applied
• if the receipt is a partial payment, how much of each invoice is to be settled (this is the ’Amount Applied’ field in the Applications window)
• how much of the receipt should be allocated to this transaction (this is the ’Allocated Receipt Amount’ field in the Applications window)

Note: Alternatively, your customer can provide the exchange rate used to convert the transaction currency to the receipt
currency (this could be a previously agreed upon rate). If your customer provides this exchange rate, Receivables automatically calculates the Allocated Receipt Amount. For information on how the cross currency rate field and the Allocated Receipt Amount are mutually exclusive.

Receivables Application Rule Sets

Application Rule Sets determine the steps Receivables uses to apply partial payments to your customer’s open debit items and how discounts affect the open balance for each type of associated charges.
Transactions usually consist of line items, tax, freight, and finance charges, or a combination of these. Depending on your business needs, you can reduce each associated charge proportionately, close the outstanding tax amount first, or apply a payment to the line and tax amounts and use any remaining portion to reduce the freight and finance charges.

Application Rule Sets let you specify how Receivables reduces the balance of your open debit items when you:

• Apply a receipt to an invoice or debit memo
• Run Post QuickCash

You can assign a rule set to each of your transaction types and enter a default rule set in the System Options window. Receivables uses the following hierarchy to determine which application rule set to use, stopping when one is found:

1. Transaction Type
2. System Options
   Note: Receivables Application Rule Sets always apply payments and discounts to the gross line amount (the net line amount plus any associated tax amount). For more
   information, see: Tax Inclusive in the Oracle Receivables Tax Manual.

Chargebacks and Adjustments

Receivables lets you create adjustments and chargebacks against transactions to which you are applying a receipt. You can create multiple chargebacks and adjustments against each transaction, for positive or negative amounts.

• Receivables lets you enter a chargeback against a credit memo or an on–account credit if they have a positive balance.
• Receivables uses the transaction type of the transaction you are adjusting to validate the adjustment or chargeback amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item.
• Chargebacks and adjustments do not follow the natural application rules; this lets you adjust transactions in either direction, regardless of the Natural Application flag.
• If the profile option AR: Cash – Allow Actions is set to No, the Chargebacks and Adjustments buttons are not available in the Applications window.

• Receivables requires that you automatically number your chargebacks.
• You can change the base number for your chargeback numbering sequences by updating the Last Invoice Number field for this chargeback batch source in the Transaction Sources window. 
• Charge backs can be viewed in transacrtion window but needs to be created while applying receipts to transactions. the following error message 'll be shown if you try to create a chargeback in transaction form.

 

More on Receipts

Entering Miscellaneous Receipts

• You can reapply both automatic and manually entered receipts.
• However, you cannot unapply a receipt that has adjustments associated with it unless you first readjust the transaction to its original amount.
• In addition, you cannot unapply a transaction if there is a chargeback against it and the chargeback has any activities against it (for example, another receipt or credit memo).

Receipts Batches

Use the Receipt Batches window to create receipt batches or to query existing batches. Batching receipts lets you:

• View the difference between your control and actual batch counts and amounts as you process your receipts. These differences can alert you to data entry errors, missing or lost receipts, or duplicate entries.
• Group related receipts together to share default attributes such as receipt class, payment method, and automatic numbering.
• Manage the time–consuming task of data entry. For example, you have many receipts to enter and want to divide the work among several people. You can create one batch and have each person entering receipts add them to the same batch.
• You can add duplicate receipts to a batch. Duplicate receipts are receipts that have the same number, amount, and customer information.
• You can post a receipt batch to your general ledger regardless of its status.
• You can delete a receipt batch only if it does not contain any receipts.
• Receivables lets you add receipts denominated in different currencies to a batch. However, the total in the Receipt Batches window reflects amounts entered in all currencies, not the batch currency. For example, if there are two receipts in a batch, one for 400 USD and one for 200 EUR, the total amount for this batch is 600, regardless of the batch currency.

Bills of Exchange

A bill of exchange (BOE) is an agreement between two parties in which one party promises to pay the other a specific amount for goods or services at a future date. The date on which payment is due is known as the maturity date. In Receivables, bills of exchange are similar to receipts: you can enter them either manually or automatically and apply, reverse, confirm, clear, and risk–eliminate them.

• clearly distinguish receipts from bills of exchange in Receivables windows
• view the total amount of risk created by bills of exchange and regular receipts
• view all bills of exchange or receipts at risk using variable selection criteria, such as customer name, maturity date, and remittance bank information
• view the total amount of receipts and bills of exchange at risk for a specific customer or for all customers

Revenue Management

Using event-based revenue management, Receivables can automatically evaluate your invoices to determine whether to immediately recognize revenue, or temporarily defer revenue to an unearned revenue account. Revenue is subsequently recognized depending on certain events, such as customer acceptance or receipt of payment. Receivables makes these automatic revenue recognition or deferral decisions based on your organization's established revenue policy, and the existence of any revenue contingencies on the invoice line.

Revenue contingencies are terms and conditions in a sales contract or order that prevent revenue from being immediately recognized, based on strict revenue recognition requirements mandated by US GAAP and International Accounting Standards. Typical contingencies that can delay revenue recognition are fiscal funding clauses (for government contracts), cancellation clauses, customer acceptance clauses, customer creditworthiness, nonstandard payment terms, and nonstandard refund policies.

Collections

Collections helps you to review and better service your customer accounts using the Oracle Receivables collections workbench.
You can use this workbench to review internal collections policies, which customer accounts have outstanding balances, and discover developing business trends. This chapter also tells you how to create dunning letters, calculate finance charges, and print statements using Oracle Receivables.

Customer Accounts

Receivables lets you view customer account information in a variety of ways. You can view the total amount overdue for a customer or customers in the Account Summary window. You can view all transactions that are past due for a specific customer in the Account Details window.

The Customer Accounts window displays a customer’s credit limit and available credit if you set Display Currency to Yes in the Find Customer Accounts window. Receivables displays a customer’s current account balances in your functional currency using the most recent exchange rate.

Suggestion: To automatically display receipts at risk and include them when calculating a customer’s past due balance,
set the profile option AR: Include Receipts at Risk in Customer Balance to Yes. If this profile option is set to No, you can include receipts at risk by choosing Include Receipts at Risk in Customer Balance from the Tools menu and then re–executing your query.

Viewing Account Balances by Aging Bucket

Account Overview

Receivables lets you view the total number and amount of transactions entered, accrued finance charges, and discounts for a customer during a specific period of time. For example, if you specify March 1992, Receivables displays the total number and amount of transactions, on time and late payments, and discounts earned during that period.

Suggestion: To automatically display receipts at risk and include them when calculating a customer’s past due balance,
set the profile option AR: Include Receipts at Risk in Customer Balance to Yes. If this profile option is set to No, you can include receipts at risk by choosing Include Receipts at Risk in Customer Balance from the Tools menu and then re–executing your query.

Account Details

Viewing Transaction Balances

Customer Calls

When a customer’s account or payment for a specific transaction is past due, you can contact the customer by phone and use the Customer Calls window to record the results of your conversation. By speaking with a customer you may learn that they were incorrectly billed, never received the goods or services that were ordered, or have already sent payment for the invoice in question. By entering details about your conversation, you create a record of the contact and can recommend any further collection action.

• Call Status in the Customer Calls window
• Follow up Complete check box in the Customer Calls window (Response tabbed region) and the Call Topics window
• Complete check box in the Actions window

Recording Call Actions

Use the Call Actions window to recommend follow–up activity after recording a customer call. You can place items in dispute, mark an item for further collection action, or update or delete existing disputes.

You can define additional call actions in the Receivables Lookups window.

Follow up actions that you enter against a customer or specific transaction appear in the Schedular window for your collectors toreview.
Note: You can only create new rows in the Call Actions window; you cannot modify existing data.

Topics : Placing an Item In Dispute

If your customer disagrees about the outstanding balance for an item, you can mark that item or a specific amount due as ’in dispute.’ Amounts that are in dispute appear in collections reports. Receivables does not prevent you from applying payments to disputed transactions.
You can choose whether to calculate finance charges on disputed items when printing your statements.
You can place items in dispute from the Customer Calls window, the Installments window, or by using iReceivables.

Credit Holds

When a customer is consistently late in making payments, has exceeded their credit limit, or is identified as a bad risk, you can prevent additional credit purchases by placing their account on credit hold. When a customer account is on credit hold, you can still create new sales orders for that customer in Oracle Order Management. However, all new orders will have a status of ’on hold’ and you will not be able to book or ship them until the hold on the customer account is removed.

A credit hold does not prevent you from creating new transactions for a customer in Receivables.
Note: You can place a credit hold at either the customer account or site level.

To place a customer account on credit hold:

Customer Correspondence

Regular correspondence is an effective way to create and maintain good relationships with your customers. Receivables provides three ways to correspond with your customers: printing account statements, printing dunning letters, and making customer calls.
Receivables lets you view all previous customer correspondence in the Correspondence window. You can view all previous contact with your customers, including dunning letters, customer calls, and account statements in this window.

Prerequisites

• Assign profile classes to customers.
• Define dunning letters.
• Create dunning letter sets.

Scheduler - Reviewing Collector Actions

When you contact a customer to discuss an overdue account or payment for a specific transaction, you enter a specific call action in the Call Actions window. Call actions indicate whether an issue has been resolved or requires further follow–up activity. You can view items that require further collection activity in the Scheduler window.

The Scheduler window lists the follow–up date, the recommended collection action, and the customer to contact. You can also view the Follow Up Action and Notes information that you entered in the Call Actions and Call Topics windows. To display a particular field, choose Show Field from the Folder menu, then select the field to display.

 

Bills Receivable

A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding.

Oracle Receivables provides a comprehensive solution to managing the entire life cycle of bills receivable: creation, acceptance, remittance, updates, history, and closing.

Creating Bills Receivable
Oracle Receivables treats a bill receivable as a separate transaction. You can create bills receivable individually through the Bills Receivable window, directly exchange a completed invoice for a bill receivable in the Transactions workbench, or create bills receivable in batch using the Bills Receivable Transaction Batches window or the Bills Receivable Batch Creation concurrent program. You can create signed, unsigned, and customer–issued (promissory note) bills receivable.

Remitting Bills Receivable
You can remit bills receivable to a bank or factoring company using the Remittances window. Choose to factor remittances with or without recourse. Optionally print bills receivable as supporting documentation for the bank or for your own records. Run the Bills Receivable Maturity and Risk program and report to apply receipts and eliminate risk on remitted bills factored with recourse. You can further automate the creation of a remittance batch by using the inbound API.

Managing Bills Receivable
Use the Bills Receivable Portfolio Management window as an analysis tool and to record changes to a bills receivable transaction. You can:

• Record customer acceptance of a bill receivable
• Endorse a bill
• Manage risk associated with factored bills
• Mark a bill as unpaid or protested
• Cancel a bill
• Recall a bill from a remittance batch
• Exchange one bill for another
• Place or remove a bill on hold
• View bill details, including the current status
• View the life cycle of events for each bill
• Utilize folder functionality to meet your analysis needs

Bills Receivable Creation

1. There are four methods in Oracle Receivables for exchanging transactions for bills receivable:

• Manually, using the Bills Receivable window and the Assignments window.
• Directly, by exchanging a transaction in the Transactions window for a bill receivable.
• Automatically, by creating a bills receivable batch using the Bills Receivable Transaction Batches window.
• Automatically, by submitting the Bills Receivable Batch Creation concurrent program in the Submit Request window.

• when the bill receivable is accepted by the drawee, or

• when a bill receivable that does not require acceptance is completed.

Manually Creating a Bill Receivable

Use the Bills Receivable window to manually create a bill receivable and assign transactions to the bill. You can also query and update existing bills receivable in this window.

You can designate a maximum amount for the bill. If you do, then the total amount of the transactions assigned to the bill must equal the designated maximum amount in order to complete the bill. If you do not designate a maximum amount, Receivables calculates the amount of the bill as the sum of assigned amounts when you complete the bill.

The values for the Signed and Issued by Drawee boxes are derived from the bills receivable transaction and are displayed for reference only. Receivables updates the Acceptance Date and Acceptance GL Date when a bill that requires acceptance is accepted, and updates the Remittance Date and Remittance Batch when the bill is remitted.
After you enter general information to create the bill, you can:

• Enter drawee and remittance bank information.
• Assign transactions to the bill.
• Complete the bill.
• Accept a bill.

• Define AutoAccounting.
• Define bills receivable transaction types.
• Define transaction batch source(s).
• Define customer drawees and drawee sites..
• Define document sequences (optional).
• Create a customer with drawee site.

   
  

Manually Assigning Transactions to a Bill Receivable

Use the Assignments window to manually assign transactions to a bill receivable, remove transactions from a bill receivable, and review assigned transactions. You can assign and unassign transactions to a bill until the bill is completed or, for bills that require acceptance, until the bill is accepted.

You can manually assign any class of transaction to a bill except guarantees. You can also assign a bill that has a status of Unpaid to a new bill receivable.
By default, you can only assign transactions that belong to the drawee and its related customers. If you set the Receivables system option Allow Payment of Unrelated Transactions to Yes, you can assign transactions of unrelated customers.
You can assign full or partial transaction amounts to a bill. The unassigned portion of a transaction remains an open item. If you designated a maximum amount for the bill, you can only assign transactions up to the designated maximum amount. You cannot complete a bill receivable with a designated maximum amount until the bill is fully assigned.

Note: Bills receivable assignments follow the natural application rule, even though the individual transactions assigned to the bill may allow for overapplication. You can only assign transactions that have the same currency as the bill receivable. Transactions assigned to the bill must share the same functional exchange rate. The bill inherits the exchange rate from the
transactions assigned to it when you complete the bill. If you want to assign transactions with a different currency, you must uncheck any transactions already assigned to the bill and enter the new currency in the Currency field.

Setting Up

AutoAccounting

Define AutoAccounting to specify how you want Receivables to determine the general ledger accounts for transactions that you enter manually or import using AutoInvoice. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts using this information.

When you enter transactions in Receivables, you can override the default general ledger accounts that AutoAccounting creates. You can control the value that AutoAccounting assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account. You must define AutoAccounting before you can enter transactions in Receivables. Suggestion: If you use the multiple organization support feature, you can set up AutoAccounting to derive the Product segment of your Revenue account based on inventory items. To do this, define the Product segment of your Revenue account to use Standard Lines and specify a Warehouse ID when entering transactions.

1. AutoInvoice Clearing: The clearing account for your imported transactions. Receivables uses the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this feature for the invoice batch source of your imported transactions.
2. Receivable: The receivable account for your transaction.
3. Revenue: The revenue and finance charges account for your transaction.
4. Freight: The freight account for your transaction.
5. Tax: The tax account for your transaction.
6. Unbilled Receivable: The unbilled receivable account for your transaction. Receivables uses this account when you use the Bill In Arrears invoicing rule. If your accounting rule recognizes revenue before your invoicing rule bills it, Receivables uses this account.
7. Unearned Revenue: The unearned revenue account for your transaction. Receivables uses this account when you use the Bill In Advance invoicing rule. If your accounting rule recognizes revenue after your invoicing rule bills it, Receivables uses this account.
8. Bills Receivable: The bills receivable account for your transaction. Receivables uses this account when you exchange  transactions for bills receivable.
9. Factored Bills Receivable: The factored bills receivable account for your bills receivable transactions.
10. Remitted Bills Receivable: The remitted bills receivable account for your bills receivable transactions.
11. Unpaid Bills Receivable: The unpaid bills receivable account for your bills receivable transactions.

1. Bill To Site: Use the bill–to site of the transaction to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account.
2. Drawee Site: Use the drawee site table to determine this segment of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account.
3. Remittance Banks: Use the remittance banks table to determine this segment of your factored bills receivable and remitted bills receivable account.
4. Salesreps: Use the salesperson’s table to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with this salesperson. If you choose this option for your unbilled receivable account, Receivables uses the Standard Lines: Use the standard memo line or inventory item on the transaction to determine this segment of your revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to this standard memo line item or inventory item. If the transaction has a line type of ”LINE” with an inventory item of freight (”FRT”), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
5. Taxes: Enter this option to use tax codes when determining your tax account.
6. Transaction Types: Use the transaction types table to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account, and of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account. If the transaction has a line type of ”LINE” with an inventory item of freight (”FRT”), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.

Transaction Batch Sources

Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. Reference Field default value for a transaction is also specified in a transaction batch source.

For imported transactions we need to specify AutoInvoice, Customer Information, Accounting Information, Other Information and Sales Credit.

Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows, and for bills receivable in the Bills Receivable and Bills Receivable Transaction Batches windows.
You can define two types of transaction batch sources:

•  Manual: Use manual batch sources with transactions that you enter manually in the Transactions and Transactions Summary windows, and for bills receivable transactions.
•  Imported: Use imported batch sources to import transactions into Receivables using AutoInvoice.

Standard Memo Lines

Auto Invoice

AutoInvoice is a powerful, flexible tool you can use to import and validate transaction data from other financial systems and create invoices, debit memos, credit memos, and on–account credits in Oracle Receivables. You use a custom feeder program to transfers transaction data from an external system into the AutoInvoice interface tables. AutoInvoice then selects data from the interface tables and creates transaction in Receivables. Receivables rejects transactions with invalid information to ensure the integrity of your data. You can run AutoInvoice together with Customer Interface or
separately.

1. Populates the RA_Interface_Lines, RA_Interface_distribution and RA_Interface_salescredit tables.
2. Lines are grouped and ordered by the grouping rule and line ordering line.Grouping rules are mandatory and determine how transaction lines are grouped into transactions. Optionally, you can use line-ordering rules to determine the order in which lines are displayed on a transaction.
3. Tax, freight, commitments and credit memos are linked to transaction line by transaction line, transaction reference and transaction link-to descriptive flex fields.To uniquely identify imported transactions and link the tax, freight, commitments and credit memos, define the Transaction flexfields
4. GL date is determined.
5. GL accounting code combinations are assigned using auto accounting rule.
6. TAX is determined.
7. All transactions are batched.
8. Validated lines are used to create the transaction.

•  AutoInvoice uses line ordering rules to order and number the lines grouped into transactions. For example, you might want to use line ordering rules to ensure that the highest invoice line amounts are listed first.
•  If an ordering rule is not defined, lines will appear on transactions in random order.
•  You can specify a line ordering rule for each grouping rule.

• Transaction flexfields
• Transaction Batch Source
• AutoInvoice system options
• AutoInvoice Line Ordering rules
• AutoInvoice Grouping rules

AutoInvoice Interface Tables

Oracle Receivables uses three interface tables for AutoInvoice:

1. RA_INTERFACE_LINES
2. RA_INTERFACE_DISTRIBUTIONS
3. RA_INTERFACE_SALESCREDITS

• RA_BATCHES_ALL
• RA_CUSTOMER_TRX _ALL
• RA_CUSTOMER_TRX_LINES _ALL
• RA_CUST_TRX_LINE_GL_DIST_ALL
• RA_CUST_TRX_LINE_SALESREPS_ALL
• AR_PAYMENT_SCHEDULES_ALL
• AR_RECEIVABLE_APPLICATIONS_ALL
• AR_ADJUSTMENTS_ALL

• This table contains information relating to all transactions to be processed by AutoInvoice. Transactions include invoices, debit memos, credit memos, and on-account credits.
  
• Each record contains line, tax, freight, or finance charges information.
  
• The Line_Type field identifies the type of information contained in the record.
  
• A record can be a parent record: Line, Header Freight, or Charges; or a child record: Tax or linelevel Freight.
  
• A child record is linked to the parent record using the Link-To Transaction flexfield.

• This table contains accounting distributions to be used by the transactions defined in RA_INTERFACE_LINES.
• Accounts defined in this table override any accounts created using AutoAccounting.
• You can choose to pass some or all account information to AutoInvoice. Any accounts that are not passed will be derived using AutoAccounting.
• Records in this table are linked to records in the RA_INTERFACE_LINES table using the Transaction flexfield.
• Not required if AutoAccounting determines GL distributions.

• This table contains all sales credit information for the transactions in the RA_INTERFACE_LINES table.
• The two tables are linked using the Transaction flexfield.
• Not required if not tracking sales credit.

• Transaction flexfields are descriptive flexfields that AutoInvoice uses to uniquely identify transaction lines.
• Because they are unique for each transaction line, they can also be used to reference and link to other lines.
• Receivables lets you determine how you want to build your transaction flexfield structure and what information you want to capture.
• Define a flexfield for each import source. Specify which one to use during import.

1. Invoice Header (optional): Specifies invoice header information
2. Line (required): Uniquely identifies invoice lines
3. Link-To (optional): Link tax and freight to invoice lines
4. Reference (optional): Links credit memos to transactions

Grouping Rules

Grouping rules specify attributes that must be identical for lines to appear on the same transaction. Define grouping rules that AutoInvoice will use to group revenue and credit transactions into invoices, debit memos, and credit memos.

Enter a new Customer information

Following are the screenshots of the steps showing how to create a new customer.

Take the Order Management/AR responsibility and go to customers -> standard
Enter the name, customer number and account name

 

2.2 Enter a new Customer information

Following are the screenshots of the steps showing how to create a new customer.

Take the Order Management/AR responsibility and go to customers -> standard
Enter the name, customer number and account name

 

Enter a new Customer information

Following are the screenshots of the steps showing how to create a new customer.

Take the Order Management/AR responsibility and go to customers -> standard
Enter the name, customer number and account name

 

2.2 Enter a new Customer information

Following are the screenshots of the steps showing how to create a new customer.

Take the Order Management/AR responsibility and go to customers -> standard
Enter the name, customer number and account name

 

Prerequisites - Customers

1. Customer Numbering
       Check the box: Automatic Customer Numbering in System Options.

AutoInvoice Line Ordering Rules

Define invoice line ordering rules for transaction lines that you import into Receivables using AutoInvoice. AutoInvoice uses these rules to order transaction lines when grouping the transactions it creates into invoices, debit memos, and credit memos. You can assign a line ordering rule to each grouping rule.

You also assign transaction attributes to your line ordering rules. AutoInvoice uses these attributes to order invoice lines. You can assign a priority to these attributes for each of your invoice line ordering rules. You can also specify an ascending or descending order for each transaction attribute assigned to a rule. Active invoice line ordering rules appear as list of values choices in the Grouping Rules window.
Suggestion: If you are importing transactions from Oracle Order Management, create an invoice line ordering rule with
the attribute SALES_ORDER_LINE to list the items on the invoice in the same order as they appear on the sales order.

Approval Limits

Use the Approval Limits window to define approval limits for adjustments created in Receivables, requests for credit memos initiated from iReceivables, and write–offs for receipts. Receivables uses approval limits that have a document type of Adjustment when you create an adjustment in the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows.

Receipt Sources

Define receipt batch sources to provide default values for the receipt class, payment method, and remittance bank account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.

Receipt source type can either be Manual or Automatic.

You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source. If you specify a default receipt batch source, Receivables displays this source in the Receipt Batches window when you create your receipt batches.

• Define receipt classes
• Define payment methods
• Define banks

Receipt Classes & Payment Methods

Define receipt classes to determine the required processing steps for receipts to which you assign payment methods with this class. These steps include creation/confirmation, remittance, and reconciliation. For example, you must create and remit a direct debit, but you must create, confirm, and remit a bills receivable remittance. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared.

Receivables uses the payment method you assign to a receipt class to determine how to account for receipts you create using this receipt class.For each receipt class, you can specify a creation method, remittance method, and whether to require bank clearance for receipts that you assign to this class. If you are defining a receipt class for bills receivable creation payment methods, then Require Confirmation, Remittance Method, and Clearance Method are disabled.

Receivables lets your customers pay their invoices via credit cards and electronic funds transfer (both non-Automatic Clearing House direct debit and ACH bank account transfers).
To accept payment via credit cards or non-ACH direct debit, use your existing Receivables setup, or optionally define a new receipt class and payment method to be used with these transactions.
To accept payment via ACH bank account transfer, define a new receipt class and payment method to be used with these transactions. 

• Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a payment method with this receipt class.
• Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a payment method with this receipt class.
• Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.
• No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted.

• Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
• By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. (Receipts using this method can also be cleared in Oracle Cash Management.)
• By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.

Payment Methods

Receivables uses payment methods to account for your receipt entries and applications. Payment methods also determine a customer’s remittance bank information. For bills receivable, you need to define two types of payment methods: creation payment methods, which determine how Receivables automatically creates bills receivable from transactions, and remittance payment methods, which designate the remittance banks and accounting for bills receivable remittances.

Banks

Use the Banks window to enter bank information for bank branches with which you do business. Some Oracle Financial Applications, including Receivables and Payables, share bank definitions, although not every application uses all available bank information. Each bank branch can have multiple bank accounts, and each bank account you define can be associated with Payables payment documents and/or Receivables payment methods.

Defining Bank Accounts

Defining Internal Bank Accounts
You define internal bank accounts to define bank accounts for which you are the account holder. Receivables uses internal bank accounts to receive payments from customers. Payables uses internal bank accounts to disburse funds to suppliers.

Prerequisite

• You have installed Receivables.
• Define custom payment formats for Payables payment documents if you are defining a disbursement bank account. (Optional).

Application Rule Sets

Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction’s line, tax, freight, and finance charges.
Receivables provides the following application rules:

•  Line First – Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.
• Line First – Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
• Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.

1. Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
2. Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
3. After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated tax.

Distribution Sets

Define distribution sets to account for your non–invoice related receipts. These receipts can include refunds, revenue from the sale of stock, as well as interest and investment income. Receipts that are not related to an invoice are known as miscellaneous receipts in Receivables.

Receivables Activities

Define receivables activities to default accounting information for your miscellaneous cash, discounts, finance charges, adjustments, bills receivable, and receipt write–offs. Activities that you define appear as list of values choices in various Receivables windows. You can define as many activities as you need.

The Tax Code Source you specify determines whether Receivables calculates and accounts for tax on adjustments, discounts, finance charges, and miscellaneous receipts assigned to this activity. If you specify a Tax Code Source of Invoice, then Receivables uses the tax accounting information defined for the invoice tax code(s) to automatically account for the tax. If the Receivables Activity type is Miscellaneous Cash, then you can allocate tax to the Asset or Liability tax accounts that you define for this Receivables Activity.

Receivables uses finance charge activity accounting information when you assess finance charges in your statements and dunning letters. Query the Chargeback Adjustment activity that Receivables provides and specify GL accounts for this activity before creating chargebacks in Receivables. You can make an activity inactive by unchecking the Active check box and then saving your work.

• If the activity type is Credit Card Refund or Refund, enter a clearing account.
• If the activity type is Miscellaneous Cash and the GL Account Source is Distribution Set, then skip to the next step. You cannot enter both an Activity GL Account and a Distribution Set.
  
• If your activity type is Miscellaneous Cash, enter a Distribution Set, or select from the list of values. You use distribution sets to automatically distribute miscellaneous cash across various accounts.
  

• If the selected operating unit has multiple legal entities, then select tax rate codes for each legal entity.
• The Asset tax rate code is your collected tax account (tax received); use this tax rate code to account for tax on miscellaneous receipts.
  
• The Liability tax rate code is your deductible account (tax paid); use this tax rate code to account for tax on miscellaneous payments.
  

AutoCash Rule Sets

The Post QuickCash program uses AutoCash rules to determine how to automatically apply your receipts. Receivables uses your customer’s open balance along with the AutoCash rules to determine how to apply receipts and whether you allow partial payments to be applied to your customer’s items. If Receivables is not able to apply or fully apply a receipt, you can specify whether the remaining amount is left as Unapplied or On–Account.

Receivables provides five AutoCash rules you can use to create your AutoCash rule sets. When you define your AutoCash rule sets, you specify which rules to use and the sequence of these rules. To determine which AutoCash Rule Set to use when applying receipts, Receivables uses the following hierarchy, stopping when one is found:
1. Customer site
2. Customer profile class
3. System Options window

Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customer’s credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customer’s credit profile to apply the receipt. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules apply, Receivables places the remaining amount Unapplied or  On–Account, depending on how you set the Remaining Remittance Amount option for the rule set.

If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except ’Apply to the Oldest Invoice First’). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence. For more information, You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.

 

• all of your debit and credit items are closed
• the entire receipt amount is applied
• it encounters a partial receipt application and Allow Partial Receipts is set to No for this AutoCash Rule Set
• the next oldest debit item includes late charges and Finance Charges is set to No for this AutoCash Rule Set

Collectors

Receivables lets you define collectors and assign them to a profile class or to a customer’s credit profile class. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window.

You can also print collector names and telephone numbers on dunning letters you send to your customers for past due items. Receivables displays active collectors and their descriptions as list of values choices in the Customers, Customer Profile Classes, and Customer Calls windows. Receivables does not display inactive collectors in the list ofvalues for these windows.

You can make an existing collector inactive by unchecking the Active check box and then saving your work. If the collector you want to make inactive is associated with an active customer, Receivables displays a warning message.

Aging Buckets

Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4–Bucket Aging bucket that Receivables provides consists of four periods: –999 to 0 days past due, 1 to 30 days past due, 31–61 days past due, and 61–91 days past due.When you create your Collections reports or view your customer accounts, you can specify an aging bucket and ’as of date’, and Receivables will group the transactions and their amounts in the appropriate days past due period.

You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket. However, all Receivables aging reports include a maximum of the first seven time periods for an aging bucket. If you want to report on additional time periods, you must create custom aging reports. You can also customize the aging buckets that Receivables provides.

Aging buckets that you define here appear as list of values choices in the Aging, Print Statements, and the Print Collection Reports windows. You can make an aging bucket inactive by changing its status to ’Inactive’ and then saving your work.

AutoInvoice Processing Options

• The grouping rule specified in the Transaction Sources window for the batch source of the transaction line.
• The grouping rule specified in the Customer Profile Classes window for the bill–to customer and bill–to site of the transaction line.
• The grouping rule specified in the Customer Profile Classes window for the bill–to customer of the transaction line.
• The default grouping rule specified in the System Options window.

Other Transaction Source tab details

Completing the Deposit Process

Completing the Guarantee Process

Demo : Invoice Corrections

Practice - Invoice Corrections

Overview

In this practice you will learn how to perform invoice corrections.

    * Update unit price

    * Adjust freight

    * Write-off an invoice

    * Enter a debit memo

Assumptions

    * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

    * The URL s for accessing the HTML login page and apps login page.

    * Seeded vision data.

Tasks

1.    Update unit price:

The unit price was incorrectly entered.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Transactions
   4. You enter a query to retrieve previously created transaction.
   5. Choose the Incomplete button to incomplete the transaction.
   6. Click on the Line Items button.
   7. Replace the unit price with any number.
   8. Save your work.
   9. Close the Lines window to return to the Transactions window.
  10. Choose the Complete button to complete your invoice.

Tasks

2.    Adjust freight:

    * Correct the freight amount incorrectly entered.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Transactions Summary.
   4. You enter a query to retrieve previously created transaction.
   5. Choose the Adjust button.  You will see the “Installments” window executed, then the Adjustments window will display.
   6. Choose Freight Error as the Activity Name.
   7. Choose Freight as the type.
   8. Create an adjustment to reflect the freight increase of  $25;  notice the balance due for freight increases.
   9. Select the Comments tab.
  10. Choose CHARGES as the reason.
  11.  Enter ‘correct freight charge’ as the comments for making this adjustment.
  12. Save your work. 
  13. Write down the Adjustment Number _____________.

Tasks

3.  Write-off a portion of the invoice:

A customer has been over-charged.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3.  (N) Transactions > Transactions Summary.
   4. You enter a query to retrieve previously created transaction.
   5. Choose the Adjust button.  You will see the “Installments” window executed, then the Adjustments window will display.
   6. Choose Write-Off as the Activity Name.
   7. Choose Line as the type.
   8. Create an adjustment amount of –500 to reflect a decrease;  notice the balance due for invoice decreases.
   9. Select the Comments tab to enter a comment for making this adjustment.
  10. Choose REFUND as the reason.
  11. Enter ‘overcharge customer’ as the comments for making this adjustment.
  12. Save your work. 
  13. Write down the Adjustment Number _____________.

Tasks

4.  Create a debit memo:

    * You have not billed the customer for freight charges.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Transactions.
   4. Choose Manual as the source.  Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving).
   5. Choose Debit Memo as the class.
   6. Choose Debit Memo as the type.
   7. Choose American Telephone and Telegraph as the customer.
   8. New York (OPS) is defaulted as the location.
   9. Smith, Lisa is defaulted as the contact.
  10. Douglas, Ms. Lisa is defaulted as the salesperson.
  11. Save your work.
  12. Choose the Freight button
  13. Choose United Parcel Services as the Carrier.
  14. Enter today as the Ship Date.
  15. Choose Destination as FOB.
  16. Enter 400 as the amount.
  17. Save your work.
  18. Close the Freight window to return to the Transactions window.
  19. Choose the Complete button to complete your invoice.
  20. Write down the invoice number  _____________________.

Entering and Changing Credit Memos

In this practice you will learn how to create credit memos.

    * Enter a credit memo with percentage

    * Enter a credit memo for a specific line

    * Enter an on-account credit invoice

Assumptions

    * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

    * The URL s for accessing the HTML login page and apps login page.

    * Seeded vision data.

Tasks

1.    Enter a credit memo with percentage:

It has been determined that the invoice entered should have included a 5% discount up front; that will be rebilled at a later date.  You will create a credit memo for the discrepancy.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Credit Transactions
   4. You enter a query to retrieve previously created transactions.
   5. Leave the “Batch” field set at  “None” since we are not batching credit transactions.
   6. The Source is Manual and the system will auto-generate the credit memo number.
   7. Choose Credit and Rebill as the reason.
   8. Enter Credit Memo as the type.
   9. In the Line field of the Credit Memo region, enter 5 which implies a credit of 5 % for all lines.
  10. Save your work.
  11. Choose the Credit Lines button to review how the system pre-rated the credit amount..
  12. Close the Lines window to return to the Credit Transactions window.
  13. Choose the Complete button to complete your invoice.
  14. Write down the credit memo number _____________________________

Tasks

2.    Enter a credit memo for a specific line:

    * Correct a specific invoice line error.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Credit Transactions
   4. You enter a query to retrieve previously created transactions.
   5. Leave the “Batch” field set at  “None” since we are not batching credit transactions.
   6. The Source is Manual and the system will auto-generate the credit memo number.
   7. Choose Credit Memo as the type.
   8. Choose Damaged Goods as the reason.
   9. Save your work.
  10. Choose the Credit Lines button.
  11. Use List of Values to choose the value of the Num field.
  12. Enter –5 as the quantity.
  13. Enter 50 as the unit price.
  14. Save your work.  Notice Balance Due on the invoice.
  15. Close the Lines window to return to the Credit Transactions window.
  16. Choose the Complete button to complete your invoice.
  17. Write down the credit memo number _______________________

Tasks

3.  Enter an on-account credit invoice:

A customer has been over-charged.

Apply the on-account credit memo against the standard invoice.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Transactions > Transactions
   4. Choose Manual as the source.  Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving).
   5. Choose Credit Memo as the class.
   6. Choose On-Account Credit as the type.
   7. Choose American Telephone and Telegraph as the customer.
   8. New York (OPS) is defaulted as the location.
   9. Smith, Lisa is defaulted as the contact.
  10. Douglas, Ms. Lisa is defaulted as the salesperson.
  11. Save your work.
  12. Click on the Line Items button.
  13. Enter Miscellaneous in the Description field.
  14. Enter 1 as the Quantity.
  15. Enter -400 as the unit price.
  16. Choose Location as the tax code.
  17. Save your work.
  18. Close the Lines window to return to the Transactions window.
  19. Choose the Complete button to complete your invoice.
  20. Write down the invoice number  _____________________.
  21. (N) Transactions > Transactions Summary
  22. You enter a query to retrieve previously created on-account credit transactions.
  23. Choose the Applications button.
  24. In the Apply To field, chose a transaction to apply the on-account credit against, optionally you can choose not to apply the complete amount by changing the Amount Applied field.
  25. Save your work.

Demo : Customer Receipts - Bank Deposits - Remittances

In this practice you will learn how to create remittances.

    * Enter a remittance batch

Assumptions

    * You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

    * The URL s for accessing the HTML login page and apps login page.

    * Seeded vision data.

Tasks

1.    Enter a remittance:

You have received customer payments and ready to make a deposit to the bank.

Solution:

   1. Login as Operations with Welcome as the password.
   2. Choose Receivables, Vision Operations (USA) as the responsibility.
   3. (N) Receipts > Remittances
   4. Select Batch Type of Remittance.
   5. System will default in the current date
   6. Select Standard as the remittance method. 
   7. Select the Receipt Class and Payment Method for customer related receipts.
   8. Leave Media Reference Blank.
   9. Select Bank of America as the bank.
  10. Select New York as the branch.
  11. Select 10271-17621-619 as the account number.  
  12. Enter any number in the deposit number.  This represents the deposit slip number.
  13. Save your work.
  14. Choose the Manual Create button.
  15. With Cursor in the Payment Method field of the receipts region, run a query for your receipt numbers.
  16. Enter an ‘x’ in the Select checkboxes to the left of your receipt numbers to select them to be included in this deposit or remittance to the bank.
  17. Select Format to approve and format your batch.
  18. The system will display a decision box asking if you would like to continue with the Approval and Format step, choose Yes.
  19. The system will automatically save your changes.
  20. Choose OK to acknowledge the save to the database.

Address Tab

• Select a Ship To Location and Ship To Contact.

• Select a Bill To Location and Bill To Contact.

• Select a Deliver-To Location and Deliver-To Contact. If you have a deliver-to field in the order header, you must be able to populate the line deliver to field from the header field. This is done by setting up a defaulting rule for the line deliver to field so that it defaults the value of the header deliver to field.

Pricing Tab

• If you choose to reprice the order or order line, manual discounts and charges are removed and automatic discounts and charges are recalculated.
• If you choose to retain original pricing, all discounts and charges are retained and the Calculate Price Flag is set to Freeze Price for order lines and Partial Price for return lines.
• Additionally, you can choose to set the Calculate Price Flag to Partial Price by selecting the corresponding radial button on the Pricing Options Tab.

Shipping Tab

 

Quote

A quote encompasses many stages before becoming a sales order or sales agreement. These stages can include a draft, customer negotiations, internal and external business approvals. Versioning can capture changes and the transaction seamlessly converts to a
sales order or can be archived as a lost or expired quote. Quoting draws all relevant information from the Order Management schema for use by the customer service representatives (CSR), enabling a seamless flow from a quote status through a sales order.

• The creation and management of quote as a negotiation tool and transitioning the quote to a sales order, thus acting as a single point of entry into Order Management.
• Preparation of quote for assisted selling of products and services to customers and business partners.
• Processing the quote with or without approvals.
• Quick entry of order lines with minimum data entry as the information captured on the quote gets carried forward into the sales order.

• Create, modify, and select quotes
• Configure complex products
• Manually adjust quote prices
• Perform real time global availability checks
• Up Sell, Cross Sell
• Calculate taxes
• Assign sales credits
• Convert quotes to sales orders
• Support E-Business requirements
• Reduce administration expenses and increase a sales person's productivity

• Both Quotes and Sales Agreements(SAs) use the same seeded Negotiation workflows.
• After Customer Acceptance, Quotes transition to a sales order and Sales Agreements become Active.
• SAs do not capture an Offer Expiration date and therefore do not leverage this functionality in the Negotiation flow.

• Holds
• Scheduling
• Copy a return from a quote.
• Independent line flows
• Cancellations – progress to LOST Status
• Ship and Arrival Sets
• Commitments
• Quotes for returns or Internal Sales Orders
• Sales Agreements - Can specify sales agreement reference on a quote but released quantity and released amount on a sales agreement are updated only when a quote is converted to an order

Entering Information at the Supplier Site Level

 

Tax Basics, Code and Group

The word tax has two meanings: first, the financial duty or levy contributed to the entity (be it a government or any other organization) a person or group of persons (say, a business) is part of. The second definition is "a very heavy burden" and can essentially summarize the first definition.

While there are opposing views on imposing tax, the general idea is that taxes are used to fund projects that can benefit society as a whole, or at least the majority of it. Businesses are taxed by the state because they use government-owned infrastructures and services. Individuals are taxed as part of their social contract, i.e., their rights and responsibilities as citizens of the state. Tax is what John F. Kennedy called "the annual price of citizenship."

India has a well developed Tax structure with a three‐tier federal structure, comprising of the Union Government, the State  Governments, and the urban/rural local bodies. The power to levy taxes and duties is distributed among the three tiers of governments, in accordance with the provisions of the Indian Constitution

The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax(CST)(VAT is used in place of sales tax), and Service Tax.

The principal taxes levied by the State Governments are Sales Tax (tax on intra‐State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue, Duty on Entertainment and Tax on profession and callings.

Local bodies are empowered to levy tax on properties, Octroi, Tax on Markets, and tax/user charges for utilities like water supply, drainage, etc.

Types of taxes
1. DIRECT TAXES
1.1 Income tax : An income tax is tax levied on financial income of person co-operation or  other legal entity.
1.2 Wealth tax
1.3 Property tax   etc.

2. INDIRECT TAXES
2.1 Custom duty : Custom Duty Is A Tax Which A State Collects On Goods Imported Or Exported Out Of The Boundaries Of The Country In India, Custom Duties Are Levied On The Goods And At The Rates Specified In The Schedules To The Custom Tariff Act, 1975.

Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of some goods may be restricted or forbidden, and the customs agency enforces these rules.The customs LEBA may be different from the immigration authority, which monitors persons who leave or enter the country, checking for appropriate documentation, apprehending people wanted by international arrest warrants, and impeding the entry of others deemed dangerous to the country.

A customs duty is a tariff or tax on the import of or export of goods.

2.2 Excise duty : Excise duty  is an indirect tax levied and collected on goods manufactures in india.
             An excise is an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover the tax by raising the price paid by the buyer (that is, to shift or pass on the tax). Excises are typically imposed in addition to another indirect tax such as a sales tax or VAT. In common terminology (but not necessarily in law) an excise is distinguished from a sales tax or VAT in three ways: (i) an excise typically applies to a narrower range of products; (ii) an excise is typically heavier, accounting for higher fractions (sometimes half or more) of the retail prices of the targeted products; and (iii) an excise is typically specific (so much per unit of measure; e.g. so many cents per gallon), whereas a sales tax or VAT is ad valorem, i.e. proportional to value (a percentage of the price in the case of a sales tax, or of value added in the case of a VAT).

Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and alcohol (sometimes referred to as sin taxes).

2.3 Sales tax/Vat: Sales tax is a tax on the supply of goods  and certain services ,it is charged  at the time of sale and then deposited in the Government treasury.
               Vat Paid By Dealers On Their Purchases Is Usually Available For Set-off Against The Vat Collected On Sales.
Under The Vat, The Tax Rates Have Been Simplified:

• 4% For Items Consisting Mainly Of Raw Materials Used In The Manufacturing Process
• 12.5% For All Goods Unless They Are Listed Under The Other Rates.
• Foodgrains Including Pulses, Milk, Vegetables Books are Not Subject To Vat.

• Agricultural  Products
• Most Of Pharmaceutical Products
• Educational & Scientific Materials
• Equipment For Fighting AIDS & CANCER

Key FFs in AR

System Options

Define system options to customize your Receivables environment. During Receivables setup, you specify your accounting method, set of books, tax method and accounts, customer and invoice parameters, and how the AutoInvoice and Automatic Receipts programs will run. If you are planning to use the Bills Receivable Workbench, then you need to perform the necessary implementation steps and enable Bills Receivable.

Prerequisites
❑ Define your set of books.
❑ Define your AutoCash Rule sets.
❑ Define Grouping Rules.
❑ Define Key Flexfield Segments - Location, Territory.

 

Tax System Options

Use the Tax tabbed region to define how Receivables calculates taxes.
You specify your tax method, the Location Flexfield Structure to use to determine your taxes for different customer locations, and whether to compound taxes for your customers. You can also choose to recognize tax exception rates for customers, customer sites, specific locations, and products, and whether exemptions that you define for specific products or customers should take precedence.

Transactions and Customers

Receivables lets you define several options for your invoices and use of the AutoInvoice program. You can choose whether to allow updates to printed invoices and whether you can apply payments to an unrelated customer’s transactions. Receivables lets you define the segments to use for Accounting Flex Tuning, System Items Tuning, and Territory Tuning during AutoInvoice.

You can also specify whether to purge the interface tables that you use for AutoInvoice, the maximum number of bytes to use, whether SQL Trace is active for this program, and the grouping rule to use for the revenue and credit transactions you create through AutoInvoice. You can also specify whether to allow reciprocal relationships between customers.

Miscellaneous System Options

Use the Miscellaneous tabbed region to specify your split amount and the number of days to use for your Days Sales Outstanding (DSO)
Calculation in the Collection Effectiveness Indicators Report. You can also choose whether you require a billing location, salespersons, and remit to addresses with your receipts, define the system level maximum write–off amount for receipts, specify a chargeback due date, define your Automatic Receipts submission parameters, choose a default Application Rule Set, and set the Sales Credit Percent Limit.

Miscellaneous invoice

Enter a miscellaneous invoice:

• Enter the invoice header

• Enter an invoice line with free-format description

Solution:

1. Login as Operations with Welcome as the password.
2. Choose Receivables, Vision Operations (USA) as the responsibility.
3. (N) Transactions > Transactions
4. Choose Manual as the source.  Since this source has been defined as a manually entered transaction with automatically generated, sequential transaction numbering (the system will assign a number upon committing/saving).
5. Choose Invoice as the class.
6. Choose Invoice as the type.  Your implementation team may have created a transaction type of Miscellaneous Invoice to segregate miscellaneous invoices from standard invoices.
7. Choose American Telephone and Telegraph as the customer.
8. New York (OPS) is defaulted as the location.
9. Smith, Lisa is defaulted as the contact.
10. Douglas, Ms. Lisa is defaulted as the salesperson
11. Save your work.
12. Click on the Line Items button.
13. Enter Scrap Material Sale in the Description field.
14. Enter 1 as the Quantity.
15. Enter $800 as the price.
16. Choose Location as the tax code.
17. Save your work.
18. Close the Lines window to return to the Transactions window.
19. Choose the Complete button to complete your invoice.
20. Write down the invoice number 

Entering a Manual receipt

Manual receipts are entered in receipt workbench.
Manual receipts can be entered individually or in a batch.
Manual receipts can be cash or miscellaneous receipts.
The customer balance is updated when the receipt is saved.

Navigate to the Receipts or Receipts Summary window.

1. You can enter transactions in any currency defined in Oracle Receivables if you have at least one remittance bank account with a Receipts Multi–Currency flag set to Yes. If no such bank account  exists, you are limited to entering only those currencies in which bank accounts exist. (The currency of a multiple currency bank account must be the same as your functional currency.)
If the currency for this receipt is different from your functional currency and you have not defined daily conversion rates, enter exchange rate information.

2. Enter a payment method. Receivables uses the payment method to determine the accounting and remittance bank accounts for this receipt. You can only select payment methods that have remittance bank accounts that are in the same currency as the receipt.

3. To help identify the customer for this receipt, enter a transaction number (optional). Receivables displays the customer associated with this transaction. If multiple customers have transactions with the number you entered, Receivables displays a window from which you can select a customer. If you enter a number here, Receivables displays the customer number in the Applications window when you apply this receipt.

If you did not enter a transaction number and the receipt is not unidentified, enter customer information for this receipt, including customer name or number and bill–to location. When you enter the customer, Receivables enters this customer’s primary bill–to location, if one exists (you can change this value). If the system option Require Billing Location for Receipts is set to Yes, you must enter a bill–to location.

QuickCash Receipts

Create a batch of QuickCash receipts when you need to enter and apply receipts quickly. The QuickCash window requires only minimal information for each receipt and application. QuickCash also provides an extra level of control for entering high volume receipts because it does not immediately affect your customer’s account balance.

When you enter receipts and applications in a QuickCash batch or import them using AutoLockbox, Receivables stores the data in an interim table. You can then use the QuickCash window to review receipts and ensure that application information is correct. After reviewing a QuickCash batch for accuracy, run Post QuickCash to update your customer’s account balances.

QuickCash lets you apply your receipts to one or many transactions, use AutoCash rules, place receipts on–account, or enter them as unidentified or unapplied. If you enable the profile option AR: Enable Cross Currency, you can also apply receipts to transactions in different currencies. After you run Post QuickCash, Receivables treats QuickCash receipts like any other receipts; you can reverse and reapply them and apply any unapplied, unidentified, or on–account amounts.

Post QuickCash

When you enter receipts in the QuickCash window or import them using AutoLockbox, Receivables stores them in interim tables. You can then use the QuickCash window to review each receipt and use the Applications window to ensure that the application information is correct. After you approve the receipts and their applications, run Post QuickCash to update your customer’s account balances.
You can choose which QuickCash or Lockbox batches to review. For example, you may want to review only the receipts entered by your data entry clerks or the data files sent by your bank. The following diagram summarizes how Post QuickCash transfers receipts and applications from interim tables into Receivables.

 

Automatic Receipts

Instead of manually entering receipts, you can use the Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time by transferring funds from the customer’s bank account to yours on the receipt maturity date. You can also manage your cash flow by deciding when, where, and how much you should remit to your bank.

Automatic receipts also lets you manage your customer risk and reconcile bank statements. You can decide how you wish to process the receipts from creation to remittance and risk elimination.

The Automatic Receipts feature satisfies the many variations of bank remittance processing, such as Bills of Exchange, Direct Debits, Letras Aceptadas (Spain), Tratte Accettate (Italy), Lettre de Change Releve, and Credit Prelevement Automatique (France).
Once created, automatic receipts can be reapplied in the same way as manual receipts. You can reverse an automatic receipt only if its status is Approved.
Note: You cannot create cross currency receipt applications using Automatic Receipts.

Creating automatic receipts involves three steps:

•  Create: Select the invoices to include in your automatic receipts.
•  Approve: Update, delete, and approve the receipts that you have selected.
•  Format: Format your automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. This step is optional, as it depends upon the type of automatic receipt you create.
•  

Auto lockbox

what is LockBox

• Process where customers mail payments to a post office box near your remittance bank and the bank deposits the payments in your account at regular intervals
• Bank provides you with computer files detailing about the receipts and their application
• Receivables uses AutoLockbox to import details about receipts directly into the system

• Eliminates manual data entry
• Streamlines the application of receipts to outstanding transactions
• Effectively manages cash flow by reducing turnover for converting checks into cash

• Apply receipts to outstanding invoices
• Import historical receipt data
• Autolockbox reports, such as the Post Quikcash Execution Report, are a good tool to reconcile autolockbox

• Set up agreements with banks
• Define lockboxes in Oracle Receivables
• Define AutoLockbox transmission formats
• Define receipt classes and payment methods
• Test AutoLockbox transmission with bank

Transaction Flexfields

1. Line Transaction Flexfield
2. Reference Transaction Flexfield
3. Link–To Transaction Flexfield
4. Invoice Transaction Flexfield

The table below shows how the four invoice records are represented in the interface table. There are two segments enabled for the Line Transaction Flexfield OM (Order Management) context. The

Creating On–Account Credits

On–account credits are credits you assign to your customer’s account that are not related to a specific invoice. For example, if your customer remits payment of $100 for a $90 invoice, you can create an on–account credit for ten dollars. You can then apply this on–account credit to another transaction.

• You can specify the debit item to credit in the Transactions window or create an on–account credit by not specifying one. You can apply and reapply on–account credits to invoices, debit items, and chargebacks.