Transaction Types

Use transaction types to define the accounting for the debit memos, credit memos, on-account credits, chargebacks, commitments, and invoices 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.

Accounting Rules
Define accounting rules to create revenue recognition schedules for your invoices. Accounting rules determine the number of periods and percentage of total revenue to record in each accounting period. You can use accounting rules with transactions that you import into Receivables using AutoInvoice and with invoices that you create manually in the Transaction windows. You can define an unlimited number of accounting rules. If you want to credit an invoice that uses invoice and accounting rules to schedule revenue and billed receivable recognition, you can specify how you want to adjust this invoice's revenue account assignments by choosing a Rules Method in the Credit Memos window. See: Crediting Transactions. You can assign a default accounting rule to your items in the Master Item window (Invoicing alternative region) and to your Standard Memo Lines in the Standard Memo Lines window. See: Standard Memo Lines and Defining Items. Attention: Invoicing and Accounting Rules are not applicable if you are using the Cash Basis method of accounting. If you use the Cash Basis method, AutoInvoice will reject any transaction lines that are associated with invoice or accounting rules. Prerequisites Define period types To define an accounting rule: 1. Navigate to the Invoicing and Accounting Rules window.

2. Enter a Name for this accounting rule. 3. Enter an accounting rule Type. Enter 'Accounting, Fixed Duration' to prorate revenue recognition evenly over a predefined period of time. The revenue recognition schedule is always the same every time you choose this accounting rule. For example, if you have four schedules for your rule with this type, you will recognize twenty-five percent of your revenue at the end of each schedule. Enter 'Accounting, Variable Duration' to be able to specify the number of periods over which you want to recognize revenue for invoices to which you assign this rule. You can assign this type of accounting rule to invoices that you manually enter in the Transaction window or import into Receivables using AutoInvoice. The revenue recognition schedule changes for invoices that are assigned this type of accounting rule depending upon the value that you either pass through AutoInvoice or specify when you manually enter an invoice. 4. Enter the Period to use for your accounting rule schedule. You can choose from any of the Period Types you defined, but you can only choose a period type that has overlapping dates if it is an adjusting period. In addition, you can only choose 'Specific Date' as your period type for accounting rules to which you have assigned a type of 'Accounting, Fixed Duration.' You can only update this field for the accounting rule 'IMMEDIATE.' See: Defining Period Types. Attention: If you have an accounting period type that is not 'Month' and you use AutoInvoice with Oracle Order Entry, you should update the Period field for the 'IMMEDIATE' accounting rule to the same period as your accounting period type. 5. If this accounting rule type is 'Accounting, Fixed Duration,' enter the Number of Periods to use for your accounting rule schedule. For example, if you entered a period of 'Weekly' and you enter '3' here, Receivables creates a rule schedule for three weekly periods. 6. Define your revenue recognition schedule for this accounting rule. Enter the percentages of revenue to recognize within each period of your accounting rule. If this accounting rule type is 'Accounting, Fixed Duration,' Receivables displays a rule schedule according to the period and number of periods you entered. Receivables determines the schedule by evenly prorating all the revenue across all periods (you can change this information). The sum of all periods for this type must equal 100 percent. If this accounting rule type is 'Accounting, Variable Duration,' you do not need to enter any information. Receivables does not display the default rule schedule for an accounting rule of this type because the

number of periods is unknown. However, if you want to recognize a specific revenue percentage in the first period, you can enter that percentage here. In this case, Receivables prorates the remaining revenue percentage across the remaining periods. Receivables uses the number of periods that you either pass through AutoInvoice or enter manually in the Transaction window to determine the payment schedule of your accounting rule. 7. If this accounting rule type is 'Accounting, Fixed Duration,' and you choose Specific Date as your period, enter specific dates for each period of the revenue recognition schedule for this rule. 8. Save your work.

Entering Invoices with Rules

Invoicing rules let you determine when to recognize your receivable for invoices that span more than one accounting period. You can assign invoicing rules to invoices that you manually enter or import into Receivables through AutoInvoice. Receivables provides the following invoicing rules:
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Bill in Advance: Use this rule to recognize your receivable immediately. Bill in Arrears: Use this rule to recognize the receivable at the end of the revenue recognition schedule.

Once rules have been associated with an invoice, the system creates the revenue distributions for the invoice when you run the Revenue Recognition program for the period in which the rules fall. See:Recognizing Revenue. Prerequisites Define transaction types Define AutoAccounting Define transaction batch sources Set up document numbering (optional) Define invoicing and accounting rules

To enter an invoice with rules: 1. Navigate to the Transaction or the Transactions Summary window. 2. Enter general information for this invoice. See: Entering Transactions. 3. Choose an Invoicing Rule of In Advance or In Arrears. Once you save this invoice, you cannot update this field, even if no value has been entered. Attention: Receivables saves your invoice information when you choose the Line Items button. 4. Choose Line Items, then enter the Item, Quantity, and Unit Price for this item. Receivables automatically calculates the total Amount. Note: You can use standard memo lines instead of items if, for example, you have not installed Oracle Order Entry or Oracle Inventory. To use memo lines, place your cursor in the Description field, then enter the memo line or select from the list of values. See: Standard Memo Lines. Receivables displays a default Tax Code according to the tax hierarchy you defined in the System Options window; otherwise, you must enter a Tax Code for this item. You can override the default tax code if the profile option Tax: Allow Override of Tax Code is set to Yes. 5. Open the Rules alternative region. Enter an Accounting rule, a Duration, and the First Date to start recognizing revenue for this invoice line. If you enter an accounting rule of variable duration, enter the number of general ledger periods over which you want to distribute revenue for this invoice line in the Duration field. If you enter an accounting rule of fixed duration, Receivables displays the default Duration for this rule. 6. To view the account sets that AutoAccounting has assigned to your invoice lines, choose Accounting. 7. To view the account sets for a single invoice line, open the Sets for this Line alternative region. To view the accounting information for all of your invoice lines, open the Sets for All Lines alternative region. Note: The Revenue Recognition program uses the account sets to determine your revenue accounts. You must run the Revenue Recognition program to create your revenue accounts and generate the actual distribution lines. See: Recognizing Revenue. 8. To update accounting information, enter the Class, GL Account, or the percentage to distribute to each account. These changes will only affect periods in which Revenue Recognition has not yet run. 9. Save your work.