Integrating

Oracle E-Business Tax With Oracle Receivables For Location Based Tax
Release 12

KALYANKAR TOTA Receivables Support Oracle Support Services Kalyankar Tota (AR Support) Page 1 of 62

CHAPTER I: LEGAL ENTITY CONFIGURATOR - XLE .................................................4 Legal Entity.................................................................................................................................... 4 Create Legal Entity...................................................................................................................... 5 CHAPTER II: GENERAL LEDGER - GL.........................................................................6 Setup Primary Ledger................................................................................................................... 6 Step 1: Assign Legal Entities ...................................................................................................... 6 Step 2: Defining Primary Ledger ................................................................................................ 6 Step 3: Review and Save Accounting Structure.......................................................................... 7 Step 4: Setting Up Accounting Options for the Ledger............................................................... 7 CHAPTER III: RECEIVABLES - AR .............................................................................11 Setting Up Operating Unit.......................................................................................................... 11 Assigning Operating Unit to the Legal Entity........................................................................... 12 CHAPTER IV: SYSTEM ADMINISTRATION ................................................................13 Setups Required in System Administration .............................................................................. 13 Setting up Responsibilities for the New Operating Unit ........................................................... 14 Setup Mandatory Profile Options.............................................................................................. 16 CHAPTER V: ORDER MANAGEMENT - OM ..............................................................17 Setup Item Validation Organization for the Operating Unit .................................................. 17 CHAPTER VI: TRADING COMMUNITY ARCHITECTURE - HZ...................................18 CHAPTER VII: E-BUSINESS TAX - ZX ........................................................................19 Implementation Checklist for Oracle E-Business Tax............................................................. 19 Step 1 – Setting Up Tax Users .................................................................................................. 19 Step 2 – Setting Profile Option Values...................................................................................... 20 Step 3 – Setting Up Lookup Codes ........................................................................................... 20 Step 4 – Setting Up TCA Geography Hierarchy ....................................................................... 20 Step 5 – Setting Up Legal Entity............................................................................................... 20 Step 6 – Setting Up Operating Unit........................................................................................... 21 Step 7 – Setting Up Accounts and Accounting Information ..................................................... 21 Step 8 – Setting Up TCA Classifications .................................................................................. 21 Step 9 – Setting Up Oracle Inventory........................................................................................ 21 Party Tax Profile ......................................................................................................................... 22 Setup Party Tax Profile for Operating Unit............................................................................... 22 Location Based Tax Setup Mapping - Release 12 and 11i ....................................................... 24

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Regime To Rate Flow .................................................................................................................. 25 Step 1: Tax Regime ................................................................................................................... 25 Step 2: Taxes ............................................................................................................................. 26 Step 3: Tax Status...................................................................................................................... 29 Step 4: Tax Jurisdictions ........................................................................................................... 30 Step 5: Tax Rates....................................................................................................................... 33 Step 6: Tax Rules ...................................................................................................................... 35 Step 7: Make Tax Available for Transaction............................................................................. 38 Step 8 – Setup Tax Accounting for AR and AP Transactions................................................... 39 Setup Configuration Owner Tax Options ................................................................................. 41 CHAPTER VII: RECEIVABLES – AR ...........................................................................43 Setup Receivables for Transactions and Receipts .................................................................... 43 AR System Options ................................................................................................................... 43 Transaction Type....................................................................................................................... 46 Transaction Source .................................................................................................................... 47 AutoAccounting ........................................................................................................................ 48 Approval Limits ........................................................................................................................ 50 Receivable Activities................................................................................................................. 51 Bank, Bank Branch and Bank Account..................................................................................... 53 Receipt Class, Payment Method................................................................................................ 56 Create Customers and Addresses .............................................................................................. 57 Run Geography Name Referencing Program............................................................................ 59 Entering Transactions................................................................................................................ 60

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taxation authorities. A legal entity generally has the right to own property and trade. create and update legal entities. and create legal entities from existing organizations. These rights and responsibilities are enforceable through the judicial system. which is given rights and responsibilities under commercial law. and legal authorities. legal addresses. and legal authorities. and the responsibility to repay debt and comply with labor law. Important Terms in Legal Entity Configurator: • • • • • • • Legal Entity Establishment Registration Jurisdiction Legal Authority Legal Address Legal Associations Legal Entity A legal entity is a clearly identified entity. through registration with the country's appropriate legal authority. The legal entity is referred to as the internal legal entity and is the initiator and owner of a given transaction. The legal entity belongs to the organization's own corporate legal structure (enterprise). establishments. registrations. jurisdictions.XLE User Guide: Oracle® Financials Implementation Guide Use the Legal Entity Configurator to search for existing legal entities. Kalyankar Tota (AR Support) Page 4 of 62 .Chapter I: Legal Entity Configurator . jurisdictions. and owners according to rules specified in the relevant legislation. Legal entities are responsible to account for themselves to company regulators.

Create Legal Entity Application Responsibility Navigation Legal Entity Configurator Legal Entity Manager Home Page > Create Legal Entity Kalyankar Tota (AR Support) Page 5 of 62 .

Step 1: Assign Legal Entities Step 2: Defining Primary Ledger Kalyankar Tota (AR Support) Page 6 of 62 .GL User Guides: Oracle General Ledger User’s Guide Oracle General Ledger Implementation Guide Oracle General Ledger Reference Guide Setup Primary Ledger Application Responsibility Navigation General Ledger General Ledger Super User Setup > Financials > Accounting Setup Manager > Accounting Setups This is referred to as Set Of Books in Release 11i and prior releases.Chapter II: General Ledger .

Step 3: Review and Save Accounting Structure Step 4: Setting Up Accounting Options for the Ledger Kalyankar Tota (AR Support) Page 7 of 62 .

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a division. and Oracle Receivables. Information is secured by operating unit for these applications.AR User Guides: Oracle Receivables Implementation Guide Oracle Receivables Reference Guide Oracle Receivables User Guide An organization that uses Oracle Cash Management. Oracle Purchasing. Oracle Payables. It may be a sales office. Order Management and Shipping Execution.Chapter III: Receivables . you choose a responsibility associated with an organization classified as an operating unit. Each user sees information only for their operating unit. An operating unit is associated with a legal entity. Setting Up Operating Unit Application Responsibility Navigation Receivables Receivables Manager Setup > System > Organization > Organizations Kalyankar Tota (AR Support) Page 11 of 62 . To run any of these applications. or a department.

Assigning Operating Unit to the Legal Entity Application Responsibility Navigation Legal Entity Configurator Legal Entity Manager Legal Entities Page > Associated Business Entities Tab Assigning the Operating Unit to the Legal Entity: Kalyankar Tota (AR Support) Page 12 of 62 .

Chapter IV: System Administration Setups Required in System Administration Replicate Seed Data Program Application Responsibility Navigation System Administration System Administrator Request > Run Run Replicate Seed Data Program Kalyankar Tota (AR Support) Page 13 of 62 .

Setting up Responsibilities for the New Operating Unit Application Responsibility Navigation System Administration System Administrator Security > Responsibility Define Responsibility for Tax Administrator Responsibility for Payables Manager Responsibility for Tax Manager Kalyankar Tota (AR Support) Page 14 of 62 .

Responsibility for Receivables Manager Responsibility for General Ledger Responsibility for Order Management Kalyankar Tota (AR Support) Page 15 of 62 .

Setup Mandatory Profile Options Application Responsibility Navigation Profile Options: HR: User Type MO: Operating Unit GL Ledger Name Profile Name HR: User Type MO: Operating Unit GL Ledger Name GL AR Yes Yes Yes AP Yes Yes OM Yes Yes EBTax Yes Yes System Administration System Administrator Security > System > Profile Yes Kalyankar Tota (AR Support) Page 16 of 62 .

Chapter V: Order Management . Kalyankar Tota (AR Support) Page 17 of 62 .OM Setup Item Validation Organization for the Operating Unit Application Responsibility Navigation Order Management XYZ Order Management Super User Setup > System Parameters > Values This is a required setup step for any AR Implementation just as in Rel 11i .

554492.Chapter VI: Trading Community Architecture .HZ User Guides: Oracle Trading Community Architecture Administration Guide Oracle Trading Community Architecture Reference Guide Oracle Trading Community Architecture Technical Implementation Guide Oracle Trading Community Architecture User Guide Please refer to the following White Paper on Metalink to setup Address Validation: Note.1 Setting Up Geography Hierarchy And Address Validation In Release 12 Kalyankar Tota (AR Support) Page 18 of 62 .

Tax Administrator: Update and assign this responsibility to users who will provide E-Business Tax technical setup and support services. Kalyankar Tota (AR Support) Page 19 of 62 . If you want to include the GL Tax Options window. The tax manager responsibility is the responsibility with the highest level of access to EBusiness Tax functionality. You can update this responsibility according to the duties of each tax administrator user. You can also set up new E-Business Tax menus and responsibilities according to your requirements. you must assign a data access set to the GL: Data Access Set profile option under the Tax Manager responsibility.Chapter VII: E-Business Tax . Oracle Tax Simulator: Assign this responsibility to users who test tax setups with the Oracle Tax Simulator.ZX User Guides: Oracle E-Business Tax Implementation User Guide Oracle E-Business Tax User Guide Oracle E-Business Tax Reference Guide Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation Guide Implementation Checklist for Oracle E-Business Tax Step # 1 2 3 4 5 6 7 8 9 Description Setting Up Tax Users Setting Up E-Business Tax Profiles Setting Up E-Business Lookup Codes Setting Up TCA Geography Hierarchy Setting Up Legal Entity Setting Up Operating Unit Setting UP Accounts and Accounting Information Setting Up TCA Classifications Setting Up Oracle Inventory Mandatory / Optional Optional Optional Optional Optional Mandatory Mandatory Mandatory Optional Optional Step 1 – Setting Up Tax Users Set up your tax users and assign each user a tax-related responsibility. Oracle E-Business Tax provides these seeded responsibilities: Tax Manager: Assign this responsibility to users who will set up and maintain tax configuration data.

Enter and maintain location information for first party legal entities and the first party legal establishments. Note 466578.Step 2 – Setting Profile Option Values Set values for E-Business Tax profile options to control the availability of certain tax options and to maintain your Vertex or Taxware installation. from one or more tax authorities. such as the tax rate. • Tax characteristics.The legal establishments that have or require tax registrations.1 . update. Refer to Chapter I of this document on more information about Legal Entity. or apply an end date to an E-Business Tax lookup type. Refer to Chapter VI of this document on more information about TCA Geography Hierarchy.What is the usage of E-Business Tax Profile Options Step 3 – Setting Up Lookup Codes Use the Application Object Library Lookups window to maintain existing lookup codes and define additional lookup codes for E-Business Tax lookup types. You use the TCA geography hierarchy in these cases: • Taxes that are levied at a level lower than the country level. If you want to disable. Note: E-Business Tax does not perform validation on updated or disabled lookups.The legal authorities that represent the tax authorities in the tax regimes where you do business. Note 466575. please ensure that the applicable values are not in use in the E-Business Tax setup. vary at a lower level than the country level.1 . You must set up and maintain the TCA geography hierarchy before you can perform these taxrelated setups: • Legal entities and establishments . First party legal establishments . Step 5 – Setting Up Legal Entity Use the Legal Entity Configurator to set up these parties: First party legal entity . Kalyankar Tota (AR Support) Page 20 of 62 . state or provincial taxes. Legal authorities .How To Update E-Business Tax Lookup Codes? Step 4 – Setting Up TCA Geography Hierarchy Set up and maintain the TCA geography hierarchy for each country where you have a tax requirement. for example.The legal entities that represent your company. The TCA geography hierarchy provides a single reference source for all geographical and location-based information for all E-Business Suite applications. either implied or explicit.

You set up tax accounts by operating unit for taxes. You must set up and maintain TCA classifications before you can perform these tax-related setups: • • • Party fiscal classifications Party tax profiles Tax rules Step 9 – Setting Up Oracle Inventory Use the Inventory Item Category functionality in Oracle Inventory to model product fiscal classifications. or a department. Step 7 – Setting Up Accounts and Accounting Information Set up accounts and accounting information for your tax transactions. Refer to Chapter III of this document on more information about Operating Unit. tax jurisdictions. Oracle Purchasing.Define balancing segment values for the legal entities involved in tax transactions. tax recovery rates. Kalyankar Tota (AR Support) Page 21 of 62 .Set up the chart of accounts. accounting calendar and currency for the primary ledger of your legal entities and. You can create either a single product fiscal classification type or a hierarchy of product fiscal classification types that matches the segments of the Inventory category. and assign these codes a party fiscal classification. • Accounting setup . Information is secured by operating unit for these applications. Order Management and Shipping Execution. Step 8 – Setting Up TCA Classifications Set up TCA classifications to classify third parties for tax purposes. if applicable. any secondary ledgers.Complete the details of the accounting setups. and Oracle Receivables. An operating unit is associated with a legal entity. • Legal entity balancing segments . and tax registrations of first party legal establishments Review and complete these accounting setup tasks according to your requirements: • Ledgers .Create an accounting setup for each legal entity with the ledger or ledgers that you created. Refer to Chapter II of this document on more information about Setting Up Ledger and related setups. Oracle Payables. • Complete the accounting setup . It may be a sales office. tax rates. You can define a TCA class category and class codes specifically for use in tax determination. You must set up and maintain accounting information before you can set up tax accounts for the applicable operating units. You can also use standard classifications.Step 6 – Setting Up Operating Unit An organization that uses Oracle Cash Management. a division. such as the US Standard Industrial Classification (SIC) codes. and assign the applicable operating units to the primary ledger.

Party Tax Profile
A tax profile is the body of information that relates to a party's transaction tax activities. A tax profile can include tax registration, tax exemptions, configuration options, default information, party fiscal classifications, tax reporting codes, and account tax details. The tax registration contains information related to a party's transaction tax obligation with a tax authority for a tax jurisdiction where it conducts business. The tax registration is part of the tax profile of a first party legal establishment and a third party and third party site. Set up tax profiles for the parties involved in your transactions. Parties include: 1. All legal entities, legal establishments, and operating units in your organization that have a transaction tax requirement. 2. Your customers and suppliers and their locations. 3. Tax authorities that administer tax rules and regulations.

Setup Party Tax Profile for Operating Unit
Application Responsibility Navigation E-Business Tax Tax Manager Parties > Party Tax Profiles

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Location Based Tax Setup Mapping - Release 12 and 11i

L o c a tio n B a s e T a x S e t U p in 1 1 i

L o c a tio n B a s e T a x M ig ra tio n in R 1 2

S a le s T a x L o c a tio n F le x fie ld S tru c tu re

T a x R e g im e

S tru c tu re q u a lifie rs

Taxes

S a te

C o u n ty

C ity

S a te

C o u n ty

C ity

S ta tu s

S ta tu s

S ta tu s

S ta n d a rd

S ta n d a rd

S ta n d a rd

D iffe re n t S ta te s V a lu e s

J u ris d ic tio n s

CA

TX

DL

CA

TX

DL

P o s ta l C o d e R a n g e s

Tax Zones

9 9 4 5 6 to 99492

9 9 5 6 2 to 99572

9 9 4 5 6 to 99492

9 9 5 6 2 to 99572

R a te P e rc e n ta g e

R a te P e rc e n ta g e

T a x R a te C o d e

T a x R a te C o d e

10%

15%

10%

15%

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In our exercise.Regime To Rate Flow Step 1: Tax Regime Tax Regime is the level at which similar taxes governed by common tax rules or laws are grouped together. 1) Excise Tax Regime in India 2) VAT Regime in UK Define Tax Regime Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Tax Regimes Kalyankar Tota (AR Support) Page 25 of 62 . we will setup a Tax Regime for US Location Based Tax. Other Examples for different Tax Regimes can be….

Define Taxes Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Taxes Kalyankar Tota (AR Support) Page 26 of 62 . In our exercise. we will setup Taxes for US Location Based Tax.Assign Operating Unit To Tax Regime Step 2: Taxes A classification of a charge imposed by a government through a fiscal or tax authority. (STATE. Other Examples for different Taxes can be Excise Tax Regime in India or VAT Regime in UK. COUNTY and CITY).

Kalyankar Tota (AR Support) Page 27 of 62 .Setup similar Taxes for County and City to handle County and City Tax Jurisdictions.

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County and City Taxes as Standard. Other Examples for different Status can be Reduced Rated and Zero Rated Define Tax Status Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Tax Statuses Kalyankar Tota (AR Support) Page 29 of 62 . There can be multiple tax status under a tax but at least one has to be specified as a default status. we will setup Tax Statuses State. This provides additional granularity for reporting. In our exercise.Step 3: Tax Status Tax Status is the taxable nature of a product or service. It is a way of grouping different tax rates under one single tax.

California. Other Examples for Tax Jurisdictions can be • Tax applicable uniformly in UK. will have a Tax Jurisdiction directly at Country level. we will setup Jurisdictions for all the State. Example: Florida.Step 4: Tax Jurisdictions Tax Jurisdiction is a geographic area for which tax is levied by a specific tax authority. Define Tax Jurisdictions Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Tax Jurisdictions Kalyankar Tota (AR Support) Page 30 of 62 . Orange and Orlando. County and City locations defined in Geography Hierarchy. In our exercise. There can be multiple jurisdictions for a tax but at least one has to be specified as a default jurisdiction. • Tax Jurisdiction for Goods and Services Tax in Singapore will be the Country of Singapore.

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Kalyankar Tota (AR Support) Page 32 of 62 .

• Sweden Standard Rate VAT is 25%. Define Tax Rates Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Tax Rates Kalyankar Tota (AR Support) Page 33 of 62 . In our Business Scenario.0 % Orange (County) – 0.Step 5: Tax Rates The rate specified for a tax status for a period of time. applicable Tax Rate will be Florida (State) – 6.5 % Orlando (City) – 0.0 % Other Examples for different Tax Rates can be • UK Standard VAT Rate 17. There can be multiple tax rates under a tax status but at least one has to be specified as a default rate. In EBTax we can also express in terms of quantity.5%. Tax rate is generally expressed in terms of percentage.

Kalyankar Tota (AR Support) Page 34 of 62 .Note: You should setup a Default Tax Rate For every Tax Jurisdiction when using Location Based Tax.

Step 6: Tax Rules These are the defaults Rules for Tax Calculation Regime Applicability • • • • • Determine where the transaction is deemed to take place Determine Applicable Tax Regimes Determine Candidate Taxes Determine Place of Supply And Tax Registration Determine Applicable Taxes & Jurisdictions Determine Tax Status for each applicable Tax Tax Applicability Tax Status • Tax Rate • Determine Tax Rate • Evaluate Exemptions and Exceptions Taxable Basis • Determine Taxable Basis (normally line amount) Tax Calculation • Calculate Tax (normally = line amount x rate) Kalyankar Tota (AR Support) Page 35 of 62 .

Define Tax Rules Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Tax Rules Kalyankar Tota (AR Support) Page 36 of 62 .

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Define Taxes Application Responsibility Navigation E-Business Tax Tax Manager Tax Configuration > Taxes Kalyankar Tota (AR Support) Page 38 of 62 . If setup is not complete this is where the errors will appear to address missed or incorrect setup. You will not be able to check this option until you complete all the setups in Regime to Rate Flow.Step 7: Make Tax Available for Transaction Final step before using the Tax is to check the option ‘Make Tax Available for Transactions’ on the Tax Setup.

You can update these default tax accounts in the tax rate setup.Step 8 – Setup Tax Accounting for AR and AP Transactions Set up default tax accounts for the taxes in a tax regime to post the tax amounts derived from your transactions. tax jurisdictions. You can also define tax accounts for tax rates. The tax accounts you define serve as default accounting information for taxes. and tax jurisdictions. If you define tax accounts at the tax level. Tax Accounts at TAX Level Kalyankar Tota (AR Support) Page 39 of 62 . tax rates. tax recovery rates. and tax recovery rates. these accounts default to the tax rate level for the same tax and operating unit. The calculated tax amounts post to the specified operating unit accounts at transaction time. The actual account information that the system uses depends upon subledger accounting rules. You set up tax accounts under a primary ledger and operating unit.

Tax Accounts at Tax Jurisdiction Level Tax Accounts at Tax Rate Level Kalyankar Tota (AR Support) Page 40 of 62 .

Setup Configuration Owner Tax Options The tax regimes that you create identify the taxes and the set of regulations that make up each tax requirement. The association between a party and a tax regime includes these definitions: Configuration for Taxes and Rules . Application Responsibility Navigation E-Business Tax Tax Manager Defaults and Controls > Configuration Owner Tax Options Click on Create Button… Kalyankar Tota (AR Support) Page 41 of 62 . tax statuses. Configuration options identify the relationships between parties and tax regimes to reflect the tax requirements of each party. tax recovery rates. tax rates. and tax rules.The setup that the party uses for taxes. Use configuration options to associate legal entities and operating units with their applicable tax regimes.

Kalyankar Tota (AR Support) Page 42 of 62 .

Application Responsibility Navigation Receivables Receivables Manager Setup > System > System Options Accounting System Options Use the Accounting tabbed region to define your accounting flexfields. Kalyankar Tota (AR Support) Page 43 of 62 .Chapter VII: Receivables – AR User Guides: Oracle Receivables Implementation Guide Oracle Receivables Reference Guide Oracle Receivables User Guide Setup Receivables for Transactions and Receipts AR System Options Define system options to customize your Receivables environment. During Receivables setup. customer and invoice parameters. you specify your accounts. and specify how many days should be included in each posting cycle. enable header level rounding. and how the AutoInvoice and Automatic Receipts programs will run. You can also choose whether to use automatic journal import.

your customers' remittances for claim creation. the maximum number of bytes to use. whether SQL Trace is active for this program. You can choose whether to allow updates to printed invoices and whether you can apply payments to an unrelated customer's transactions.Transactions and Customers System Options Receivable lets you define several options for your invoices and use of the AutoInvoice program. Kalyankar Tota (AR Support) Page 44 of 62 . Claims System Options If using Oracle Trade Management. and the grouping rule to use for the revenue and credit transactions you create through AutoInvoice. and Territory Tuning during AutoInvoice. during Lockbox and Post QuickCash processing. Receivables lets you define the segments to use for Accounting Flex Tuning. System Items Tuning. then use the Claims tabbed region to indicate how to evaluate. You can also specify whether to purge the interface tables that you use for AutoInvoice.

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. Kalyankar Tota (AR Support) Page 45 of 62 .

on-account credits. commitments.Transaction Type Use transaction types to define the accounting for the debit memos. Application Responsibility Navigation Receivables Receivables Manager Setup > Transactions > Transaction Type Invoice Transaction Type Credit Memo Transaction Type Kalyankar Tota (AR Support) Page 46 of 62 . chargebacks. and bills receivable you create in Receivables. credit memos. invoices. Transaction types also determine whether your transaction entries update your customers' balances and whether Receivables posts these transactions to your general ledger.

Transactions Summary. and Credit Transactions windows. and for bills receivable in the Bills Receivable and Bills Receivable Transaction Batches windows.Transaction Source Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. Application Responsibility Navigation Receivables Receivables Manager Setup > Transactions > Transaction Sources Kalyankar Tota (AR Support) Page 47 of 62 . Active transaction batch sources appear as list of values choices in the Transactions.

late charges. receivable. Application Responsibility Navigation Receivables Receivables Manager Setup > Transactions > AutoAccounting Freight Account Receivable Account Revenue Account Kalyankar Tota (AR Support) Page 48 of 62 . unearned revenue. tax. bills receivables accounts. and AutoInvoice clearing (suspense) accounts using this information.AutoAccounting Define AutoAccounting to specify how you want Receivables to determine the default general ledger accounts for transactions that you enter manually or import using AutoInvoice. Receivables creates default accounts for revenue. unbilled receivable. freight.

Tax Account Kalyankar Tota (AR Support) Page 49 of 62 .

Approval Limits Use the Approval Limits window to define approval limits for: • • • • Adjustments Receipt Write-offs Credit Memo Refunds Credit Memo Requests Receivables Receivables Manager Setup > Transactions > Approval Limits Application Responsibility Navigation Kalyankar Tota (AR Support) Page 50 of 62 .

See: Activity Types. late charges. such as miscellaneous cash. and receipt write-off applications. Activities that you define appear as list of values choices in various Receivables windows. page 6-30 for a complete list of activities. adjustments. You can define as many activities as you need. Application Responsibility Navigation Receivables Receivables Manager Setup > Receipts > Receivable Activities Adjustment Receivable Activity Miscellaneous Receipt Receivable Activity Kalyankar Tota (AR Support) Page 51 of 62 . discounts.Receivable Activities Define receivables activities to default accounting information for certain activities.

Earned Discount Receivable Activity Unearned Discount Receivable Activity Kalyankar Tota (AR Support) Page 52 of 62 .

Bank Branch and Account… Following Note describes some pre-requisite setups that you need to perform before you can define Internal Bank Accounts. Application Responsibility Navigation Receivables Receivables Manager Setup > Receipts > Banks Create Internal Bank. (CE) • External (Customer Banks) are stored in iPayment Tables (IBY) This is different from Release 11i and before where both Internal and External Banks where stored in Payables tables (AP). NOTE. The following steps will help you define internal banks. Bank Branch and Bank Account In Release 12 • Internal Banks are stored in Cash Management Tables.422909.Bank.1 How To Assign A Legal Entity To A Bank Account? Kalyankar Tota (AR Support) Page 53 of 62 .

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then you must also remit. and reconciliation.Receipt Class. You can specify any combination of these processing steps with one exception: if you confirm and reconcile. Receivables automatically creates receipts assigned to this receipt class with a status of Cleared. If you enter No for all three of these steps. These steps include confirmation. Payment Method Define receipt classes to determine the required processing steps for receipts to which you assign receipt methods with this class. Application Responsibility Navigation Receivables Receivables Manager Setup > Receipt > Receipt Class Kalyankar Tota (AR Support) Page 56 of 62 . remittance.

ORANGE. we are ready to create Customers for this Operating Unit.ORLANDO Kalyankar Tota (AR Support) Page 57 of 62 .Create Customers and Addresses After these basic transactions. Application Responsibility Navigation Receivables Receivables Manager Customers > Customers Creating Customer KTOTA for FL.

Creating Customer PTOTA for CA.REDWOOD.REDWOOD Kalyankar Tota (AR Support) Page 58 of 62 .

Otherwise you may need to run this program on a periodic basis to fix the bad locations that you may have.Run Geography Name Referencing Program One last step before entering transactions is to validate or Locations created in HZ_LOCATIONS. This program should only be run one time if your Address Validation is setup to Error as explained in Chapter VI. Application Responsibility Navigation Trading Community Architecture Trading Community Manager Control > Request > Run Kalyankar Tota (AR Support) Page 59 of 62 .

Entering Transactions After these basic transactions. we are ready to test our setups by entering a Transaction in AR. Application Responsibility Navigation Receivables Receivables Manager Transactions > Transactions Entering Transactions for FL.ORANGE.ORLANDO Kalyankar Tota (AR Support) Page 60 of 62 .

Entering Transactions for CA.REDWOOD.REDWOOD Kalyankar Tota (AR Support) Page 61 of 62 .

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