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R12 Oracle Receivables


Management Fundamentals
Volume 2 - Student Guide

D49302GC10
Edition 1.0
June 2007
D51678

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Author

Robert MacIsaac, Sanjay Mall, Vijay Tiwary

Technical Contributors and Reviewers

Victoria Anderson, Nigel Chapman, Tina Cook, Terry Erb, Julie Gustafson, Carol King,
Shivranjini Krishnamurthy, Robin Love, Suzanne Miller, Doug Myers, Pamela Rietz, Aalok
Shah, Brian Wolfe, Yogendra Joshi

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Table of Contents

Order to Cash Lifecycle Overview .................................................................................................................1-1


Order to Cash Lifecycle Overview ................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Order to Cash Lifecycle.................................................................................................................................1-5
Order Lifecycle..............................................................................................................................................1-6
Overview of Application Integration.............................................................................................................1-7
Order Management Process...........................................................................................................................1-9
Viewing and Managing Orders......................................................................................................................1-10
Scheduling Process ........................................................................................................................................1-11
Pricing Process ..............................................................................................................................................1-12
Shipping Process ...........................................................................................................................................1-13

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AutoInvoice Process ......................................................................................................................................1-14
Receivables Process.......................................................................................................................................1-15
Cash Management Process ............................................................................................................................1-16
Summary........................................................................................................................................................1-17
Overview of Oracle Receivables Process .......................................................................................................2-1
Overview of Oracle Receivables Process ......................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Order to Cash Lifecycle.................................................................................................................................2-5
Overview of Receivables in the Order to Cash Process.................................................................................2-6
Overview of the Receivables Process............................................................................................................2-7
Overview of Receivables Integration ............................................................................................................2-8
Receivables Integration Process ....................................................................................................................2-9
Overview of the Transaction Process ............................................................................................................2-10
Overview of Other Invoice Operations..........................................................................................................2-11
Overview of Adjustments ..............................................................................................................................2-13
Overview of Credit Memos ...........................................................................................................................2-14
Overview of the AutoInvoice Process ...........................................................................................................2-15
Overview of Receipts and Remittances .........................................................................................................2-16
Overview of Advanced Collections...............................................................................................................2-17
Advanced Collections – Collection Methods ................................................................................................2-19
Oracle iReceivables .......................................................................................................................................2-21
Oracle iReceivables Product Integration .......................................................................................................2-22
Overview of Oracle iReceivables Features....................................................................................................2-24
Summary........................................................................................................................................................2-27
Manage Parties and Customer Accounts.......................................................................................................3-1
Manage Parties and Customer Accounts .......................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda...........................................................................................................................................................3-5
Customer Overview.......................................................................................................................................3-6
Party Model Overview...................................................................................................................................3-7
Party Model ...................................................................................................................................................3-9
Party Model and Relationships......................................................................................................................3-11
Managing Parties ...........................................................................................................................................3-13
Party Sites......................................................................................................................................................3-14
Customer Accounts........................................................................................................................................3-15
Integrating Party Information ........................................................................................................................3-16
Agenda...........................................................................................................................................................3-17
Profile Classes ...............................................................................................................................................3-18
Profile Class Characteristics ..........................................................................................................................3-20
Practice - Create a Customer Profile Class ................................................................................................3-21

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Solution - Create a Customer Profile Class ...............................................................................................3-22
Managing Customer Account Profiles...........................................................................................................3-23
Setting Up a Late Charge Policy in Profile Classes.......................................................................................3-24
Updating Profile Classes ...............................................................................................................................3-27
Reviewing Profile Class Changes..................................................................................................................3-28
Agenda...........................................................................................................................................................3-29
Data Quality Management Overview ............................................................................................................3-30
Data Quality Management (DQM) ................................................................................................................3-31
How Does DQM Work? ................................................................................................................................3-32
Setting UP DQM ...........................................................................................................................................3-33
Entry Methods ...............................................................................................................................................3-35
Business Issues ..............................................................................................................................................3-37
Business Purposes..........................................................................................................................................3-38
Multiple Sites and Business Purposes: Centralized Example ........................................................................3-40
Multiple Sites and Business Purposes: Decentralized Example ....................................................................3-41

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Importing Data Using Interface Tables .........................................................................................................3-42
Entering Data Using the Customers Set of Pages..........................................................................................3-44
Practice - Create a Customer Using the Customers Set of Pages...............................................................3-47
Solution - Create a Customer Using the Customers Set of Pages..............................................................3-49
Practice - Add Customer Details Using the Customers Set of Pages.........................................................3-51
Solution - Add Customer Details Using the Customers Set of Pages........................................................3-54
Practice - Add Account Details Using the Customers set of pages ...........................................................3-57
Solution - Add Account Details Using the Customers set of pages...........................................................3-60
Practice - Add Account Site Details Using the Customers Set of Pages ...................................................3-64
Solution - Add Account Site Details Using the Customers Set of Pages...................................................3-68
Prevention of Duplication and Invalid Address Creation ..............................................................................3-73
Dun & Bradstreet (D&B) Integration ............................................................................................................3-75
D&B Online...................................................................................................................................................3-76
D&B Batch Loading......................................................................................................................................3-77
Agenda...........................................................................................................................................................3-78
Merge Parties or Customer Accounts ............................................................................................................3-79
Agenda...........................................................................................................................................................3-81
Customer Account Relationships ..................................................................................................................3-82
Practice - Create a Customer Account Relationship ..................................................................................3-83
Solution - Create a Customer Account Relationship .................................................................................3-84
Agenda...........................................................................................................................................................3-85
Oracle Trading Community Architecture ......................................................................................................3-86
TCA Registry.................................................................................................................................................3-87
TCA Administration ......................................................................................................................................3-88
Using Party Paying Relationships .................................................................................................................3-89
Using Customer Account Relationships ........................................................................................................3-90
Using Party Paying and Customer Account Relationships............................................................................3-91
Creating Party Paying Relationships .............................................................................................................3-92
Pay Within Paying Relationships ..................................................................................................................3-93
Party Paying Relationships Process Flow......................................................................................................3-94
Pay Below Paying Relationships ...................................................................................................................3-95
Relationship Types and Relationship Groups................................................................................................3-96
Agenda...........................................................................................................................................................3-97
Reviewing Information..................................................................................................................................3-98
Reports...........................................................................................................................................................3-99
Agenda...........................................................................................................................................................3-101
Mandatory Customer Profile Setup Steps......................................................................................................3-102
Collectors.......................................................................................................................................................3-103
Payment Terms ..............................................................................................................................................3-104
Optional Customer Profile Setup Steps .........................................................................................................3-105
Setup Steps for Customers.............................................................................................................................3-107
System Options Related to Customers...........................................................................................................3-108

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Profile Options...............................................................................................................................................3-110
Optional Setup Steps for Customers..............................................................................................................3-112
Flexible Address Formatting .........................................................................................................................3-114
Summary........................................................................................................................................................3-116
Process Invoices Using AutoInvoice...............................................................................................................4-1
Process Invoices Using AutoInvoice .............................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
AutoInvoice Process ......................................................................................................................................4-6
AutoInvoice Integration.................................................................................................................................4-8
What Occurs During AutoInvoice .................................................................................................................4-9
AutoInvoice Interface Tables ........................................................................................................................4-11
Agenda...........................................................................................................................................................4-13
Managing AutoInvoice System Options........................................................................................................4-14

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Defining Transaction Batch Sources for AutoInvoice...................................................................................4-16
Automated Refunds .......................................................................................................................................4-20
Grouping Rules..............................................................................................................................................4-21
Grouping Transaction Attributes ...................................................................................................................4-22
Grouping Rule Hierarchy ..............................................................................................................................4-23
Line Ordering Rules ......................................................................................................................................4-24
Transaction Flexfields ...................................................................................................................................4-25
Defining Transaction Flexfields ....................................................................................................................4-26
AutoInvoice Validation .................................................................................................................................4-27
Submitting AutoInvoice ................................................................................................................................4-28
AutoInvoice Reports......................................................................................................................................4-29
Implementation Considerations .....................................................................................................................4-30
Agenda...........................................................................................................................................................4-31
Error Correction Overview ............................................................................................................................4-32
AutoInvoice Exception Handling Windows ..................................................................................................4-33
Summary........................................................................................................................................................4-35
Process Invoices ...............................................................................................................................................5-1
Process Invoices ............................................................................................................................................5-3
Objectives ......................................................................................................................................................5-4
Agenda...........................................................................................................................................................5-5
Oracle Receivables Overview........................................................................................................................5-6
Transactions Overview ..................................................................................................................................5-8
Transactions Workbench Windows ...............................................................................................................5-9
Agenda...........................................................................................................................................................5-10
Invoice Entry Methods ..................................................................................................................................5-11
Creating a Standard Invoice Manually ..........................................................................................................5-12
Invoice Components ......................................................................................................................................5-13
Transactions Window Tabs ...........................................................................................................................5-15
Required Transaction Information.................................................................................................................5-16
Entering Invoice Dates ..................................................................................................................................5-18
Transaction Defaults......................................................................................................................................5-19
Standard Invoice Line Types .........................................................................................................................5-21
Entering Freight Invoices or Lines ................................................................................................................5-22
Entering Sales Credits ...................................................................................................................................5-24
Completing Transactions ...............................................................................................................................5-26
Practice - Create an Invoice .......................................................................................................................5-28
Solution - Create an Invoice ......................................................................................................................5-29
Creating Invoice Batches...............................................................................................................................5-30
View Currency Details ..................................................................................................................................5-31
Agenda...........................................................................................................................................................5-33
Creating Copies of Invoices...........................................................................................................................5-34
Using Recurring Rules...................................................................................................................................5-35

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Practice - Copy an Invoice.........................................................................................................................5-37
Solution - Copy an Invoice ........................................................................................................................5-38
Creating Invoices with Rules.........................................................................................................................5-39
Accounting Rules ..........................................................................................................................................5-40
Assigning Accounting Rules to Invoice Lines...............................................................................................5-41
Using Invoices With Rules ............................................................................................................................5-42
Example of Billing in Advance .....................................................................................................................5-43
Example of Billing in Arrears........................................................................................................................5-44
Deferred Accounting Rules ...........................................................................................................................5-45
Revenue Recognition Program ......................................................................................................................5-46
Making Adjustments Using Revenue Accounting.........................................................................................5-47
Balance Forward Billing (BFB) Process .......................................................................................................5-49
Calculating Late Charges...............................................................................................................................5-51
How Oracle Receivables Uses Statements ....................................................................................................5-53
Setup Details Report......................................................................................................................................5-54

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AR: Use Statement, Dunning, and Late Charges Site Profiles ......................................................................5-55
Agenda...........................................................................................................................................................5-56
Invoice Transaction Flow ..............................................................................................................................5-57
Invoice Correction Methods ..........................................................................................................................5-58
Overview of Corrections................................................................................................................................5-59
Updating Invoices..........................................................................................................................................5-61
Creating Debit Memos...................................................................................................................................5-62
Creating Adjustments ....................................................................................................................................5-63
Applying Different Types of Credits .............................................................................................................5-64
Credit Memo Options ....................................................................................................................................5-65
Practice - Create a Credit Memo................................................................................................................5-67
Solution - Create a Credit Memo ...............................................................................................................5-68
On-Account Credit Options...........................................................................................................................5-69
Reversing Sales Credits .................................................................................................................................5-70
Manual Refunds.............................................................................................................................................5-71
Voiding Transactions.....................................................................................................................................5-73
Agenda...........................................................................................................................................................5-75
Reports...........................................................................................................................................................5-76
Printing Transactions.....................................................................................................................................5-77
Process for Printing Transactions ..................................................................................................................5-78
Practice - Print a Transaction.....................................................................................................................5-79
Solution - Print a Transaction ....................................................................................................................5-80
Using Balance Forward Billing .....................................................................................................................5-81
Practice - Print Balance Forward Bills.......................................................................................................5-83
Solution - Print Balance Forward Bills......................................................................................................5-85
Practice - Correct Errors ............................................................................................................................5-88
Solution - Correct Errors ...........................................................................................................................5-89
Agenda...........................................................................................................................................................5-93
Event-Based Revenue Management ..............................................................................................................5-94
Automated Revenue Management Process....................................................................................................5-95
Daily Revenue ...............................................................................................................................................5-96
Revenue Contingencies .................................................................................................................................5-98
Revenue Contingencies Process ....................................................................................................................5-99
Practice - Set Up Revenue Contingencies .................................................................................................5-100
Solution – Set Up Revenue Contingencies ................................................................................................5-102
Revenue Contingency Analyzer ....................................................................................................................5-104
COGS and Revenue Matching.......................................................................................................................5-105
Evaluating Invoices for Event-Based Revenue Management........................................................................5-106
Collectibility Requirements for Revenue Recognition ..................................................................................5-107
How Collectibility Requirements Relate to Invoices.....................................................................................5-108
Applying Receipts and Event-Based Revenue Management.........................................................................5-109
Agenda...........................................................................................................................................................5-110

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Promised Commitment Amounts ..................................................................................................................5-111
Summary........................................................................................................................................................5-112
Bill Presentment Architecture ........................................................................................................................6-1
Bill Presentment Architecture........................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Bill Presentment Architecture Overview.......................................................................................................6-5
BPA Framework ............................................................................................................................................6-6
BPA Process Flow .........................................................................................................................................6-7
Creating Templates........................................................................................................................................6-8
Defining Assignment Rules...........................................................................................................................6-10
Data Retrieval................................................................................................................................................6-11
Registering Data Sources...............................................................................................................................6-12
Enabling Data Sources...................................................................................................................................6-13
Viewing Data Sources ...................................................................................................................................6-14

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Creating Database Views...............................................................................................................................6-15
Registering Data Source Views .....................................................................................................................6-16
Viewing Data Source Views..........................................................................................................................6-17
Template Management ..................................................................................................................................6-18
Modifying Templates ....................................................................................................................................6-19
Creating a New Template ..............................................................................................................................6-20
Uploading External Templates ......................................................................................................................6-21
Assigning Templates .....................................................................................................................................6-22
Defining Template Rules...............................................................................................................................6-23
Creating a New Assignment Rule..................................................................................................................6-25
Selecting Attribute Matching Criteria............................................................................................................6-26
Selecting Conditions for Rules ......................................................................................................................6-27
Assigning a Template to a Rule.....................................................................................................................6-28
Reordering Rules ...........................................................................................................................................6-29
Print Management..........................................................................................................................................6-31
Printing Attachments .....................................................................................................................................6-33
Creating and Updating Page Setups...............................................................................................................6-34
Summary........................................................................................................................................................6-35
Credit Management.........................................................................................................................................7-1
Credit Management .......................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Setting Up Oracle Credit Management..........................................................................................................7-6
Define Credit Analysts ..................................................................................................................................7-7
Dynamic Credit Analyst Assignments...........................................................................................................7-8
Define Lookups .............................................................................................................................................7-9
Define System Options..................................................................................................................................7-10
Credit Data Point ...........................................................................................................................................7-11
Define Scoring Models..................................................................................................................................7-12
Assign Automation Rules ..............................................................................................................................7-13
Credit Checklist .............................................................................................................................................7-14
Credit Usage Rule Sets ..................................................................................................................................7-15
Define Credit Hierarchies ..............................................................................................................................7-16
Define Customer Profile Classes ...................................................................................................................7-17
Customer Profile Classes: Credit Profile Tab...............................................................................................7-18
Assign Profile Class.......................................................................................................................................7-19
Agenda...........................................................................................................................................................7-20
Process Credit Reviews .................................................................................................................................7-21
Initiate a Credit Review.................................................................................................................................7-22
Collecting Credit Data ...................................................................................................................................7-23
Analyzing Credit Data ...................................................................................................................................7-24
Making a Recommendation...........................................................................................................................7-25

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Implementing the Recommendation..............................................................................................................7-26
Multi-Period Financial Data Comparison......................................................................................................7-27
Automatic Assessment of Guarantors............................................................................................................7-28
Credit Decision Appeals ................................................................................................................................7-29
Agenda...........................................................................................................................................................7-30
Credit Management Application Workflow ..................................................................................................7-31
Oracle Approvals Management (AME).........................................................................................................7-32
Agenda...........................................................................................................................................................7-33
Review Credit Management Performance .....................................................................................................7-34
Agenda...........................................................................................................................................................7-35
Define Credit Hierarchies ..............................................................................................................................7-36
Identify a Credit Hierarchy............................................................................................................................7-37
Summary........................................................................................................................................................7-38
Implement Customer Invoicing......................................................................................................................8-1

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Implement Customer Invoicing .....................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
Agenda...........................................................................................................................................................8-5
Required Setup Steps for Transactions..........................................................................................................8-6
Receivables Transaction Types .....................................................................................................................8-8
Using Natural Application.............................................................................................................................8-10
Deposit Transaction Type..............................................................................................................................8-11
AutoAccounting ............................................................................................................................................8-12
Balance Forward Billing Cycle .....................................................................................................................8-14
Payment Terms ..............................................................................................................................................8-16
Transaction Sources.......................................................................................................................................8-18
Remit-to Addresses........................................................................................................................................8-20
System Options Relating to Transactions......................................................................................................8-21
System Options Relating to Late Charges .....................................................................................................8-23
Miscellaneous System Options......................................................................................................................8-25
Profile Options...............................................................................................................................................8-27
Implementation Considerations for Transactions ..........................................................................................8-29
Implementation Considerations for Remit-To Addresses..............................................................................8-30
Optional Setup Steps for Customer Invoices .................................................................................................8-31
Salespeople ....................................................................................................................................................8-33
Standard Memo Lines....................................................................................................................................8-34
Setting Up Document Sequencing.................................................................................................................8-36
Setting Up Gapless Transaction Numbering..................................................................................................8-37
Setting Up Statements ...................................................................................................................................8-39
Balance Forward Bills ...................................................................................................................................8-40
Setting Up Balance Forward Billing..............................................................................................................8-41
Setting Up Tiered Interest Rates for Late Charges ........................................................................................8-43
Overview of Transaction Printing Views ......................................................................................................8-45
Transaction Printing Views ...........................................................................................................................8-46
Agenda...........................................................................................................................................................8-47
Define Transaction Types in Order ...............................................................................................................8-48
Implementation Considerations for Document Sequencing Enhancements ..................................................8-49
Function Security...........................................................................................................................................8-50
Summary........................................................................................................................................................8-51
Receipts.............................................................................................................................................................9-1
Receipts .........................................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Agenda...........................................................................................................................................................9-5
Oracle Receivables Overview........................................................................................................................9-7
Overview of Receipts ....................................................................................................................................9-8
Receipt Creation ............................................................................................................................................9-9
Receipt Statuses.............................................................................................................................................9-10

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Manual Receipt Entry Process.......................................................................................................................9-11
Receipt Types ................................................................................................................................................9-12
Manual Receipts versus QuickCash Receipts................................................................................................9-14
Practice - Enter a Manual Receipt .............................................................................................................9-15
Solution - Enter a Manual Receipt.............................................................................................................9-16
Creating Batches............................................................................................................................................9-17
Validating Receipts in Batches ......................................................................................................................9-18
Batch Statuses................................................................................................................................................9-19
Agenda...........................................................................................................................................................9-20
Applying Batch Receipts ...............................................................................................................................9-21
Applying Receipts to an Invoice....................................................................................................................9-22
Applying Receipts at Line Level ...................................................................................................................9-23
Practice - Apply and Update Receipt at Line Level...................................................................................9-25
Solution - Apply and Update Receipt at Line Level..................................................................................9-26
Applications Window ....................................................................................................................................9-29

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Practice - Apply a Receipt .........................................................................................................................9-31
Solution - Apply a Receipt ........................................................................................................................9-32
Criteria for Mass Applying Receipts .............................................................................................................9-33
Practice - Use Mass Apply ........................................................................................................................9-34
Solution - Use Mass Apply........................................................................................................................9-35
AP/AR Netting ..............................................................................................................................................9-36
Prepayments ..................................................................................................................................................9-37
Cross Currency Receipts ...............................................................................................................................9-39
Entering Discounts ........................................................................................................................................9-40
Agenda...........................................................................................................................................................9-41
Chargebacks and Adjustments.......................................................................................................................9-42
Chargebacks and Adjustments against Transactions .....................................................................................9-43
Chargebacks against Receipts........................................................................................................................9-44
Creating a Chargeback...................................................................................................................................9-45
Credit Card Chargebacks...............................................................................................................................9-46
Working with Claims.....................................................................................................................................9-48
Creating Claims .............................................................................................................................................9-49
Automatic Claim Creation Through Lockbox and Quickcash.......................................................................9-50
Resolving Claims...........................................................................................................................................9-51
Automated Settlement Methods Effectively Settle Deductions.....................................................................9-52
Resolving Claims Not Associated to an Invoice............................................................................................9-54
Vendor Claims on Credit Card Chargebacks.................................................................................................9-55
Resolving a Split Claim .................................................................................................................................9-57
Agenda...........................................................................................................................................................9-59
Balancing Segments ......................................................................................................................................9-60
Deriving Balancing Segment Values.............................................................................................................9-61
Disabling the Balancing Segment Substitution Process for Activities ..........................................................9-62
AR: Disable Receivable Activity Balancing Segment Substitution ..............................................................9-63
Agenda...........................................................................................................................................................9-64
Lockboxes......................................................................................................................................................9-65
Using AutoLockbox ......................................................................................................................................9-66
Lockbox Integration ......................................................................................................................................9-67
Historical Data Conversion............................................................................................................................9-68
AutoLockbox Process....................................................................................................................................9-69
AutoLockbox Process Flow...........................................................................................................................9-71
AutoLockbox Validation ...............................................................................................................................9-72
AutoLockbox and Customer Identification ...................................................................................................9-74
AutoLockbox Transmissions .........................................................................................................................9-75
Applying Receipts using AutoLockbox.........................................................................................................9-76
Creating Claims Using AutoLockbox............................................................................................................9-78
Importing and Applying Cross Currency Receipts ........................................................................................9-80
Lockbox Execution Report ............................................................................................................................9-81

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Receipt to Receipt Applications ....................................................................................................................9-82
Automated Receipt Handling for Credits ......................................................................................................9-84
Automatic Receipts........................................................................................................................................9-85
Bank Remittance Process ..............................................................................................................................9-86
Creating Automatic Receipts.........................................................................................................................9-87
Automatic Receipts and Remittance Process Overview ................................................................................9-88
Credit Cards...................................................................................................................................................9-89
Processing Credit Card Refunds....................................................................................................................9-91
Processing Credit Card Transactions.............................................................................................................9-92
Creating Credit Card Transactions ................................................................................................................9-93
Credit Card Refunds ......................................................................................................................................9-94
Summary........................................................................................................................................................9-96
Implement Receipts .........................................................................................................................................10-1
Implement Receipts .......................................................................................................................................10-3

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Objectives ......................................................................................................................................................10-4
Agenda...........................................................................................................................................................10-5
Overview of Receipt Setup............................................................................................................................10-6
Receivables Activity Types ...........................................................................................................................10-7
Receivables Activity Setup............................................................................................................................10-9
Receivables Activity Example.......................................................................................................................10-11
Receipt Class, Receipt Method, and Bank Account Relationship ...............................................................10-12
Defining Remittance Banks and Bank Accounts...........................................................................................10-13
Defining Receipt Classes...............................................................................................................................10-14
Associating a Bank Account With a Receipt Method....................................................................................10-16
Defining Receipt Sources ..............................................................................................................................10-17
Defining AutoCash Rules ..............................................................................................................................10-18
Defining Application Rule Sets .....................................................................................................................10-20
Setting Up Cross Currency Receipts .............................................................................................................10-21
System Options for Receipt Accounting .......................................................................................................10-22
Miscellaneous System Options Relating to Receipts....................................................................................10-23
Profile Options...............................................................................................................................................10-25
Agenda...........................................................................................................................................................10-27
Implementation Considerations for Receipts.................................................................................................10-28
Other Implementation Considerations for Receipts.......................................................................................10-29
Setting Up Lockboxes ...................................................................................................................................10-30
Function Security...........................................................................................................................................10-31
Summary........................................................................................................................................................10-32
Tax Processing .................................................................................................................................................11-1
Tax Processing...............................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
Agenda...........................................................................................................................................................11-5
Oracle E-Business Tax Architecture Overview.............................................................................................11-6
Oracle E-Business Tax Key Concepts And Examples...................................................................................11-8
Calculating Tax on Transactions ...................................................................................................................11-11
Calculating Tax Using the Tax Classification Code......................................................................................11-12
Global Tax Overview ....................................................................................................................................11-13
Tax Overview ................................................................................................................................................11-15
Value Added Tax Overview ..........................................................................................................................11-16
US Sales Tax Overview.................................................................................................................................11-17
Tax Partner Process Overview.......................................................................................................................11-18
Agenda...........................................................................................................................................................11-19
Setting Up Receivables for Tax Calculation..................................................................................................11-20
Defining Transaction Types and Tax Exemptions.........................................................................................11-22
Defining AutoAccounting for Tax.................................................................................................................11-24
Enabling Calculation of Tax on Freight ........................................................................................................11-25
Defining E-Business Tax Profile Options for Receivables............................................................................11-26

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Defining E-Business Tax Profile Options for Order Management................................................................11-28
Agenda...........................................................................................................................................................11-29
Tax Accounting Overview.............................................................................................................................11-30
Setting Up Tax Accounting for Deferred Tax ...............................................................................................11-31
Defining Receivables Activities ....................................................................................................................11-32
Updating the Tax Rate on Transactions.........................................................................................................11-34
Adjusting Tax on Invoices.............................................................................................................................11-35
Tax Credit Memo...........................................................................................................................................11-36
Summary........................................................................................................................................................11-38
Period Closing Process ....................................................................................................................................12-1
Period Closing Process ..................................................................................................................................12-3
Objectives ......................................................................................................................................................12-4
Overview of Accounting and Receivables.....................................................................................................12-5
Oracle Subledger Accounting........................................................................................................................12-6

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Oracle Subledger Accounting Integration .....................................................................................................12-7
Subledger Accounting Key Concepts ............................................................................................................12-9
Subledger Accounting Receivables Accounting Event Model .....................................................................12-10
Subledger Accounting Setup and Process .....................................................................................................12-12
Receivables Period Closing Process ..............................................................................................................12-13
Overview of Ordering to Period Closing.......................................................................................................12-14
Standard Reports ...........................................................................................................................................12-15
Reconciling Receivables................................................................................................................................12-16
Running Revenue Recognition ......................................................................................................................12-18
Transferring to General Ledger .....................................................................................................................12-19
Running the Journal Import Program ............................................................................................................12-20
Mapping Receivables Transactions to General Ledger Categories ...............................................................12-21
Summary........................................................................................................................................................12-22
Appendix A: Bank Reconciliation ..................................................................................................................13-1
Appendix A Bank Reconciliation ..................................................................................................................13-3
Course Objectives..........................................................................................................................................13-4
Agenda...........................................................................................................................................................13-6
Reconciliation Overview ...............................................................................................................................13-8
Reconciliation Integration .............................................................................................................................13-9
Reconciliation: Oracle Receivables and Oracle Payables..............................................................................13-10
Functions with Receivables ...........................................................................................................................13-11
Oracle General Ledger and Payroll ...............................................................................................................13-12
Reconciliation of Oracle Payroll EFT Payments ..........................................................................................13-13
AutoReconciliation Overview .......................................................................................................................13-14
Load Bank Statements ...................................................................................................................................13-15
Agenda...........................................................................................................................................................13-16
Setting Up Oracle Cash Management and Related Products .........................................................................13-17
Setting Up Oracle Cash Management System Parameters ............................................................................13-18
Setting Up Oracle Cash Management Bank Transaction Codes....................................................................13-20
Agenda...........................................................................................................................................................13-21
Bank Statement Open Interface .....................................................................................................................13-22
Importing Bank Statements ...........................................................................................................................13-25
Bank Statement Validation ............................................................................................................................13-26
Bank Statement Interface Errors....................................................................................................................13-27
Setup for Bank Statement Open Interface .....................................................................................................13-28
Agenda...........................................................................................................................................................13-29
Entering Bank Statements Manually .............................................................................................................13-30
Entering Bank Statement Information Manually...........................................................................................13-31
Agenda...........................................................................................................................................................13-32
Archiving and Purging...................................................................................................................................13-33
Archiving and Purging Automatically...........................................................................................................13-35
Agenda...........................................................................................................................................................13-36

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Reconciling Bank Statements Automatically ................................................................................................13-37
Agenda...........................................................................................................................................................13-39
Reconciling Bank Statements Manually........................................................................................................13-40
Creating Miscellaneous Transactions ............................................................................................................13-41
Recording a Bank Transmission Error...........................................................................................................13-42
Recording Transactions from External Systems...........................................................................................13-43
Reconciliation Open Interface .......................................................................................................................13-44
Agenda...........................................................................................................................................................13-45
Manually Clearing and Unclearing................................................................................................................13-46
Clearing and Reconciling Transactions in Oracle Payables .........................................................................13-47
Clearing and Reconciling Transactions in Oracle Receivables ....................................................................13-48
Transferring Bank Reconciliation Transactions to Your General Ledger .....................................................13-49
Agenda...........................................................................................................................................................13-50
Recording Exceptions....................................................................................................................................13-51
Handling Non-Sufficient Funds (NSF) Using AutoReconciliation ...............................................................13-52

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Handling Non-Sufficient Funds (NSF) or Rejected Receipts Manually........................................................13-53
Recording a Stopped Payment.......................................................................................................................13-54
Recording a Direct Debit from a Supplier .....................................................................................................13-55
Entering Reversals.........................................................................................................................................13-56
Reconciling Corrections and Adjustments to Bank Errors ............................................................................13-57
AutoReconciliation Matching........................................................................................................................13-58
AutoReconciliation Matching: Reversal Method ..........................................................................................13-59
AutoReconciliation Matching: Adjustment Method......................................................................................13-60
Manual Reconciliation Matching ..................................................................................................................13-61
Agenda...........................................................................................................................................................13-62
Value Date Support .......................................................................................................................................13-63
Value Date Support in Oracle Payables and Oracle Receivables ..................................................................13-64
Agenda...........................................................................................................................................................13-66
Oracle Cash Management Reports ................................................................................................................13-67
Archive/Purge Bank Statements Report ........................................................................................................13-68
AutoReconciliation Execution Report ...........................................................................................................13-69
Bank Statement Detail Report .......................................................................................................................13-70
Bank Statement Summary Report .................................................................................................................13-71
Bank Statements by Document Number Report...........................................................................................13-72
GL Reconciliation Report..............................................................................................................................13-73
Cash in Transit Report...................................................................................................................................13-74
Cleared Transactions Report..........................................................................................................................13-75
Transactions Available for Reconciliation Report........................................................................................13-76
Batches Available for Reconciliation Report ................................................................................................13-77
Bank Transaction Codes Listing....................................................................................................................13-78
Summary........................................................................................................................................................13-79
R12 Oracle Receivables Management Fundamentals Supplemental Student Practices ...........................14-1
R12 Oracle Receivables Management Fundamentals Supplemental Student Practices ................................14-3
Objectives ......................................................................................................................................................14-4
Setup..............................................................................................................................................................14-5
Practice - Create a New Employee (Required) ..........................................................................................14-6
Practice - Create a New User (Required)...................................................................................................14-8
Managing Parties and Customer Accounts ....................................................................................................14-10
Practice - Create a Profile Class (Required) ..............................................................................................14-11
Practice - Create a Customer (Required) ...................................................................................................14-14
Practice - Create a Customer Relationship (Required) ..............................................................................14-16
Practice - Submit Customer Related Reports (Optional) ...........................................................................14-18
Process Invoices ............................................................................................................................................14-20
Guided Demonstration - Open Receivables Periods (Required)................................................................14-21
Guided Demonstration - Review a Transaction Source (Required)...........................................................14-22
Guided Demonstration - Review a Transaction Type (Required)..............................................................14-23

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Guided Demonstration - Review AutoAccounting Setup (Required)........................................................14-24
Practice - Enter a Manual Invoice (Required) ...........................................................................................14-25
Practice - Enter an Invoice with Standard Memo Lines (Required) ..........................................................14-27
Practice - Copy Invoices (Required)..........................................................................................................14-29
Practice - Enter an Invoice with a Bill in Arrears Invoicing Rule (Required) ...........................................14-32
Guided Demonstration - Run Revenue Recognition (Required) ...............................................................14-34
Correct Transactions......................................................................................................................................14-36
Practice - Enter a Debit Memo for Missed Freight (Required)..................................................................14-37
Practice - Update an Invoice (Required)....................................................................................................14-39
Practice - Create a Write-Off Adjustment (Required) ...............................................................................14-40
Practice - Issue a Credit Memo Against a Specific Invoice (Required).....................................................14-43
Practice - Create an On-Account Credit (Required) ..................................................................................14-45
Practice - Apply an On-Account Credit to an Invoice (Required).............................................................14-47
Process Commitments ...................................................................................................................................14-48
Guided Demonstration - Update the Deposit Transaction Type (Required)..............................................14-49

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Practice - Enter a Deposit (Required) ........................................................................................................14-50
Practice - Apply Invoices Against the Deposit (Required)........................................................................14-51
Print Invoices, Statements, and Reports ........................................................................................................14-53
Practice - Print Selected Invoices (Optional).............................................................................................14-54
Practice - Print Statements (Optional) .......................................................................................................14-55
Practice - Print Invoice Related Reports (Optional) ..................................................................................14-56
Process Invoices Using AutoInvoice .............................................................................................................14-58
Guided Guided Demonstration - Create a Sales Order and Generate an Invoice (Required) ....................14-59
Manual Receipts ............................................................................................................................................14-63
Practice - Enter a Manual Receipt Batch (Required).................................................................................14-64
Practice - Enter a QuickCash Receipt Batch and Post Quick Cash (Required) .........................................14-66
Practice - Enter a Miscellaneous Receipt (Required) ................................................................................14-68
Practice - Reverse a Receipt (Required) ....................................................................................................14-69
Practice - Apply an Unidentified Receipt (Required) ................................................................................14-70
Practice - Reverse and Re-Apply a Receipt (Required).............................................................................14-71
Practice - Print Receipt Related Reports (Optional) ..................................................................................14-73

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Preface
Profile
Before You Begin This Course

• Thorough knowledge of Oracle Applications.

• Working experience with Accounts Receivable.

Prerequisites

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• There are no prerequisites for this course.

How This Course Is Organized

R12 Oracle Receivables Management Fundamentals is an instructor-led course featuring lecture


and hands-on exercises. Online demonstrations and written practice sessions reinforce the
concepts and skills introduced.

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Related Publications
Oracle Publications
Title Part Number
Oracle Receivables User Guide B31211-01
Oracle Receivables Implementation Guide B31212-01
Oracle E-Business Tax User Guide B25959-02
Oracle E-Business Implementation User Guide B25960-02

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Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);

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case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL Language
titles of books and Reference Manual.
courses, Enter user_id@us.oracle.com, where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;

Passwords DROP USER scott


IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))

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Lowercase Syntax variables CREATE ROLE role
italic
Uppercase SQL commands and SELECT userid
functions FROM emp;

Typographic Conventions in Oracle Application Navigation Paths


This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

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2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system
window.

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Implement Customer
Invoicing
Chapter 8

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Implement Customer Invoicing

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Objectives

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Agenda

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Required Setup Steps for Transactions

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Required Setup Steps for Transactions
Before you can use customer invoices, you must complete these setups:
• Customers: Define customers, including Bill To and Ship To addresses, for transaction
processing. Enable Balance Forward Billing at the customer profile class level, and at the
account and site profile levels, to send one balance forward bill to a customer for a billing
period. A balance forward bill includes all of a customer’s transactions (with balance
forward billing payment terms) for the billing period and any balance carried forward
from the previous billing period. You can generate balance forward bills consolidated at
either the customer account or site level, depending on whether you selected account or
site as the bill level in the customer profile class and account profile.
See: Manage Parties and Customer Accounts for detailed information about setting up
customer records.
• Receivables Transaction Types: Transaction types add default information to
transactions.
• AutoAccounting: Specify the General Ledger accounts for transactions that you enter
manually or import using AutoInvoice.

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• Payment Terms: Determine the payment schedule and cash discount information for
customer invoices, debit memos, and commitments. You need to define balance forward
billing payment terms to use the balance forward billing feature.
• Transaction Sources: Transaction sources control transaction and batch numbering and
provide default information.
• Remit-to addresses: Inform customers where to send payments.
• System and Profile Options: Provide default values for some Receivables operations,
such as how Receivables processes data and controls the actions users can perform.

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Receivables Transaction Types

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Receivables Transaction Types
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Transaction Types
Use transaction types to define the accounting for Receivables debit memos, credit memos, on-
account credits, chargebacks, commitments, invoices, and bills receivable. Transaction types
can be used to default the legal entity to the transaction. Transaction types also determine
whether your transaction entries update your customer balances and whether Receivables posts
these transactions to general ledger.
You must set up transaction types before you can enter invoices.
Transaction types determine:
• Transaction class: debit memo, credit memo, on-account credit, chargeback,
commitment, invoice, bills receivable.
• Natural application setting.
• If the transaction can be posted to General Ledger (GL).
• If the transaction is an open receivable, that is, updates customer balances for debit
memos, credit memos, chargebacks, and on-account credits.

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• If the transaction excludes late charges.
• If freight can be entered.
• If a tax classification code defaults to the transaction line.
• Default credit memo type for an invoice.
• Default invoice type for a commitment.
• Creation sign.

Legal Entity Defaulting


If you are using a shared accounting environment, you can optionally assign a legal entity to a
transaction type to default to the transaction. Receivables looks first to the transaction type for
a legal entity to default to the transaction. If a legal entity has not been assigned to the

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transaction type, then Receivables looks to the transaction batch source for the legal entity. If
Receivables cannot find a default legal entity, then the user must enter the legal entity on the
transaction line. The legal entities available for selection on the transaction type, transaction
batch source, and transaction line are the legal entities assigned to the ledger that is assigned to
the active operating unit.
If you are using an exclusive accounting environment, with one legal entity only assigned to
the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the legal
entity to all transactions.

Excluding Late Charge Calculation


Select the Exclude from Late Charges Calculation checkbox either to exclude specific invoice
types or to exclude your Interest Invoices if you do not want interest charged against them.

Tax Classification Code Defaulting


You can optionally enable the “Default tax classification” option on the transaction type to
default a tax classification code to the transaction line. The defaulting and usage of tax
classification codes is controlled by Oracle E-Business Tax. The tax classification code
represents the tax code migrated from Release 11i tax content. You use tax classification codes
as determining factors in tax calculation only when you choose to use the Release 11i tax
model in E-Business Tax. See: Order to Cash: Tax Processing for more information about
using tax classification codes.
Note:
• For guarantees and deposits, the creation sign must be Positive.
• You can update the Operating Unit field (and the legal entity associated with the
operating unit) with any operating unit assigned to your responsibility.

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Using Natural Application

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Using Natural Application
Applications to transactions are processed differently, depending on the natural application
setting of the transaction type:
Natural Application Only Selected, Allow Overapplication Clear.
• Receivables allows any application that reduces the transaction amount toward or to zero
without changing the sign of the transaction.
• For example, if the transaction amount is +$500, Receivables allows the applications as
shown in the top section of the diagram.
Natural Application Only Clear, Allow Overapplication Selected or Clear.
• Receivables allows any application that either reduces or increases the transaction, even
if the application changes the sign of the transaction, as shown in the bottom section of
the diagram.

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Deposit Transaction Type

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Deposit Transaction Type
If you set the AR: Deposit Offset Account Source profile option to Transaction Type, then
Receivables uses the Offset Account that you specify here to derive the offset account for
deposits. Otherwise, Receivables uses AutoAccounting to derive the deposit offset account.

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AutoAccounting

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AutoAccounting
Receivables, Vision Operations (USA)
(N) Setup > Transactions > AutoAccounting
AutoAccounting is a powerful and flexible tool that automatically creates General Ledger
accounting flexfields for Receivables transactions. When AutoAccounting is run, Receivables
assigns valid accounting flexfields to invoices and credit memos and automatically generates
valid accounting flexfields for Freight, Receivable, Revenue, AutoInvoice Clearing, Tax,
Unbilled Receivable, and Unearned Revenue accounts.
Note that the default accounting that AutoAccounting creates is considered interim accounting
only. Oracle Subledger Accounting accepts the default accounts that AutoAccounting derives
without change. If necessary, however, you can modify the accounting rules in Subledger
Accounting to create accounting that meets your business requirements.
AutoAccounting determines the General Ledger (GL) accounts for invoices by deriving a value
for each segment of the accounting flexfield:
• When setting up AutoAccounting, rules define how Receivables should derive the value
for each segment. This can either be a constant value or a table.

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• For each account type, define the flexfield segments by selecting a table name or entering
a constant value. The tables that can be used for segment values are Transaction Types,
Salesperson, Customer - Bill To, Standard Line, Freight (for Freight Account only), and
Tax Rate Code.

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Balance Forward Billing Cycle

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Balance Forward Billing Cycle
Receivables, Vision Operations (USA)
(N) Setup > Print > Balance Forward Billing Cycles
Balance forward billing cycles determine:
• Date that Receivables generates balance forward bills.
• Transactions that are included in balance forward bills.
Define a balance forward billing cycle by entering its name, description, start date, and
frequency in the Balance Forward Billing Cycles window. Depending on the frequency, a
balance forward billing cycle can be daily, weekly, or monthly.
To define daily cycles:
1. Enter the number of days the billing should repeat.
2. (Optional) Select Exclude Saturdays and Sundays.
To define weekly cycles:
1. Enter the number of weeks the billing should repeat.
2. Select the day of the week the billing should occur.

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To define monthly cycles:
1. Enter the number of months the billing should repeat.
2. Select the day of the month the billing should occur. Billing can occur on more than one
day. For cycles with a billing day between 29 and 31, Receivables considers the last day
of the month as the billing day for months with fewer days.
3. Select either All Days or Exclude Saturdays and Sundays.

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Payment Terms

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Payment Terms
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Payment Terms
Define standard payment terms to determine payment schedules and percentages of discounts
allowed.
• The formula used to determine the amount due is:
- Amount Due = Relative Amount/Base Amount x Invoice Amount.
- For example: Relative Amount = 60%/Base Amount = 100% would be 60% of
Invoice amount.
• Select the Credit Check check box to trigger Order Management credit check.
• Enter the number of days before the due date that the invoice should be printed.
• Allow discounts on partial payments by selecting the Allow Discount on Partial
Payments checkbox.
• Specify how to allocate tax and freight on invoices with split terms: in the first
installment, or prorated across all installments.

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Defining Balance Forward Billing Payment Terms
If you want to use a payment term for balance forward billing to send a single bill,
consolidated at either the customer account or site level, select a balance forward billing cycle
from the Billing Cycle list of values.
Because balance forward bills cannot be split across installments, in the case of a balance
forward payment term:
• Any value entered in Base Amount defaults to 100.
• Installment Options is disabled, and any data entered before selecting a billing cycle
defaults to include tax and freight in the first installment.
• You can populate only one row in the Payment Schedule section; the Sequence Number

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and Relative Amount values for the row default respectively to 1 and 100.
• Date Due is disabled. However, you can populate Days, Day of Month, and Months
Ahead.
Note: You cannot change an existing payment term back and forth for use as both a non-
balance forward billing and balance forward billing payment term.

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Transaction Sources

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Transaction Sources
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Sources
• Transaction sources are used to control transaction batching and numbering, and to
specify default transaction values.
• Assign a default legal entity to the transaction.
• Select validation options for imported transactions.
• Assign batch sources to invoices, debit memos, commitments, credit memos, and on-
account credits.
• Create a batch source for late charges, if applicable.
• Set up for automated non-credit card refunds.
• When setting up the Credit Memo Workflow, assign a Manual source.
• Select the Copy Document Number to Transaction Number check box to use the same
value for both the document number and the transaction number for transactions assigned
to this source. You must check the box if using Gapless document sequences.

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Legal Entity Defaulting
If you are using a shared accounting environment, you can optionally assign a legal entity to a
transaction batch source to default to the transaction. Receivables looks first to the transaction
type for a legal entity to default to the transaction. If a legal entity has not been assigned to the
transaction type, then Receivables looks to the transaction batch source for the legal entity. If
Receivables cannot find a default legal entity, then the user must enter the legal entity on the
transaction line. The legal entities available for selection on the transaction type, transaction
batch source, and transaction line are the legal entities assigned to the ledger that is assigned to
the active operating unit.
If you are using an exclusive accounting environment, with one legal entity only assigned to
the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the legal
entity to all transactions.

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Batch Source for Late Charges
If the late charge policy for any of your Operating Units is to create either Interest Invoices or
Debit Memos, then create a separate batch source for late charges. Create a batch source for
Interest Invoice or Debit Memo late charges with Type “Imported”. The batch source Type is
Imported because the Interest Invoice and Debit Memo creation is done as a batch process that
calls the Invoice API. You then assign this source in the System Options window.

Automated Non-Credit Card Refunds


You can set up Receivables to automate the refund process for non-credit card transactions.
Receivables submits the refund request to Payables, and Payables in turn transacts refunds via
Oracle Payments.
To set up for automated refunds:
1. Create a Refund receivables activity. The Refund activity type applies exclusively to
automated non-credit card refunds.
Note: Use the Credit Card Refund activity type for credit card refunds.
2. Set the Receipt Handling for Credits field to Refund in the transaction source. You set
this option to Refund for both credit card and non-credit card automated refunds.
Note: For AutoInvoice feeds from the Service Contracts module, you must use the seeded
Transaction Source of OKS_CONTRACTS.
See: Transaction Batch Sources, Oracle Receivables Implementation Guide for more
information.

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Remit-to Addresses

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Remit-to Addresses
Receivables, Vision Operations (USA)
(N) Setup > Print > Remit-to Address
A remit-to address is the address that is used to send payment for an invoice. You can set up
remit-to information in the Remit To Addresses window to default to transactions (excluding
credit memos).
You can designate a remit-to address for one or more countries. This remit-to address is
assigned to all invoices of customers with a bill-to address in the designated country or
countries.
You can also set up a default remit-to address. A default remit-to address defaults to the Remit-
to Address region when you enter transactions. In addition, AutoInvoice will not reject
invoices because it is not able to determine a remit-to address.
For United States remit-to addresses, you can only have one default remit-to address for each
country and state combination. For example, you can have one default remit-to address for
United States/California, one for United States/Nevada, and so on.

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System Options Relating to Transactions

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System Options Relating to Transactions
Receivables, Vision Operations (USA)
(N) Setup > System > System Options > (T) Accounting
(N) Setup > System > System Options > (T) Transactions and Customers
• Header Level Rounding: Assign a special account for rounding differences when
converting foreign currency transactions to your functional currency. The Header Level
Rounding is enabled on the Accounting tab.
Caution: This option cannot be disabled once the box has been selected. Header Level
Rounding adds an additional line to every transaction regardless of the currency.
• Automatic Journal Import: Automatically import the batches you transfer by checking
this box on the Accounting tab. The value becomes the default value on the Run GL
Journal Import field in the Run General Ledger Interface window.
• Allow Change to Printed Transactions: Allow updates to printed transactions by checking
this box on the Transactions and Customers tab.
• Allow Transaction Deletion: Allow a transaction to be deleted from Receivables after it
has been saved by checking this box on the Transactions and Customers tab.
Caution: Do not enable this option if using gapless numbering of transactions.

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Note: There are system options relating to AutoInvoicing as well. For more information
on System Options relating to Autoinvoicing, refer to Order to Cash: Process Invoices
Using AutoInvoice.

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System Options Relating to Late Charges

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System Options Relating to Late Charges
Receivables, Vision Operations (USA)
(N) Setup > System > System Options > (T) Transactions and Customers
Use the Late Charges region in the Transactions and Customers tabbed region of the System
Options window to assign late charge policy details to the applicable operating unit.
• Select the Assess Late Charges checkbox.
Note: You must select this checkbox to enable your late charge policy. If this system
option is not selected, then Receivables will not create late charges for a customer, even
if that customer is enabled for late charges at the account or site level.
• Enter the transaction types that were previously created for Interest Invoice and Debit
Memo late charges.
• If interest charges are in the form of adjustments, enter the Receivables activity that was
previously created for late charges. The late charges program uses this value when no
value is assigned at the customer account or site level.
• If the late charge policy includes penalty charges, enter the Receivables activity that was
previously created for late charges.

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• If the late charge policy is to create either Interest Invoices or Debit Memos, then enter
the batch source that was previously created for late charges.
• If the late charges policy uses Balance Forward Billing and the Average Daily Balance
method to assess late charges, enter the average daily balance calculation details.

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Miscellaneous System Options

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Miscellaneous System Options
Receivables, Vision Operations (USA)
(N) Setup > System > System Options > (T) Miscellaneous
The Miscellaneous tabbed region of the System Options window contains several parameters
that affect transactions.
• Discount Basis: Use this option to calculate discounts on your invoices. The discount
options are:
- Invoice Amount
- Lines Only
- Lines, Freight Items and Tax
- Lines and Tax, not Freight Items and Tax
• Require Salesperson: Select this checkbox to require salespersons to be selected when
entering transactions.
• Print Remit to Address: Select this checkbox to print your remit-to address on your
customer statements.

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• Print Home Country: Select this option to print your home country on your invoices and
statements that refer to addresses in that country.
• Source of Territory: Enter the Source of Territory to default to the Salespersons,
Transactions, and Customers UI. Receivables uses this value to determine the default
territory for invoices and commitments. Selections are: Bill-To Site, Salesrep, Ship-To
Site, and None.

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Profile Options

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Profile Options
System Administrator
(N) Profile > System
• AR: Allow Update of Existing Sales Credits: Determines whether you can update
existing sales credits.
• AR: Change Customer on Transaction: Determines whether you can update customer
names in the Transaction windows.
• AR: Default Exchange Rate Type: Determines the default exchange rate to use when
converting foreign currency transactions to your functional currency.
• AR: Override Adjustment Activity Account Option: Determines whether you can
override the default adjustment account when entering or updating manual adjustments
and when updating automatic adjustments.
• AR: Transaction Batch Source: Determines the default invoice source that will appear in
the Batch field of the Transaction window and Credit Memo window.
• AR: Use Invoice Accounting For Credit Memos: Determines whether to assign your
credit memo to the same accounts that are assigned to the invoice you are crediting.

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See: Appendix A, Oracle Receivables Profile Options, Oracle Receivables Implementation
Guide for complete information about Receivables profile options.

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Implementation Considerations for Transactions

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Implementation Considerations for Transactions

• For AutoAccounting, when using a table as a source of a segment, make sure the General
Ledger accounts are defined for the source. For example, if you select the Company
segment to be derived from the transaction type for Revenue, the revenue account must
be entered for all transaction types.
• For payment terms, decide on discounting, balance forward billing, split payment terms,
and allocating tax and freight.
Note: You cannot use line level cash application on invoices with split payment terms
• For transaction batch sources, select Value to import a record into AutoInvoice tables
using its actual name (non-Oracle system); select ID to use its internal identifier (Oracle
system). If you use an Oracle system, then ID is quicker because of the shorter character
length. For example, it is quicker to read “2309” than “Business World.”

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Implementation Considerations for Remit-To Addresses

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Implementation Considerations for Remit-To Addresses
• Define lockbox addresses as remit-to addresses to let customers know where to send
payment.
• To catch any missing assignments, set up a remit-to address assigned to a default
location. If you enter or import an invoice with an address that does not correspond to
any of your assignments, it uses the default remit-to address.

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Optional Setup Steps for Customer Invoices

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Optional Setup Steps for Customer Invoices
The following are optional setup steps for customer invoices:
• Accounting Rules: If your accounting method is Accrual, use rules to create revenue
recognition schedules for your invoices.
See: Process Invoices: Accounting Rules for information about accounting rule types and
how to use them to recognize revenue.
• Salespeople: To allocate sales credits to invoices, debit memos and commitments. If you
do not want to assign sales credits to a transaction, you can enter No Sales Credit.
• Standard Memo Lines: To enter predefined lines for debit memos, on-account credits,
and invoices.
• Document Sequencing: To assign unique numbers to documents and account for each
transaction that is entered.
• Statements: To create statements to send to customers.
- Define Aging Buckets: To review and report on open receivables based on the
number of days each item is past due.
- Define Statement Cycles: To control when you create customer statements.

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- Define Messages: To customize messages on customer statements.
• Balance Forward Billing: To create balance forward billing invoices to send to
customers.
- Set the AR: Show Billing Number profile option to Yes to display the balance
forward billing invoice number in Receivable windows and reports.
- Define New or Update Existing Customer Profiles: To determine which customers
will receive a balance forward billing invoice.
- Define Proxima Payment Terms: To determine the cutoff date and payment terms
used with balance forward billing invoices.
- Assign Payment Terms: Assign to the Bill To site of each customer that you set up
to receive a balance forward billing invoice.

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• Tiered Interest Rates for Late Charges: Customize late charges for both interest and
penalties by creating interest tiers and assigning the tiers to a charge schedule.

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Salespeople

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Salespeople
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Salespersons/Resources
If you are setting up salespeople in Receivables rather than in Human Resources:
• Define salespeople to allocate sales credits for transactions.
• Determine the source of the Territory Flexfield default for the Transactions window by
entering a value in the Source of Territory field in the Miscellaneous tabbed region of the
System Options window.
• Determine whether a salesperson is required when entering transactions by selecting the
check box for Require Salesperson in the Miscellaneous tabbed region of the System
Options window.

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Standard Memo Lines

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Standard Memo Lines
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Memo Lines
Memo lines can be used to define goods or services that are sold frequently, but have not been
defined as inventory items, such as Annual Maintenance Contracts or Consulting Services.
• Select one of the following standard line types: Charges, Freight, Line, or Tax.
• You can enter a tax classification code and tax product category to associate with a
standard memo line. These values are passed to E-Business Tax for tax calculation.
• If the price is constant, you can enter a unit price which defaults when this memo line is
used.
Tax Classification Code and Tax Product Category Defaulting
The defaulting and usage of tax classification codes is controlled by Oracle E-Business Tax.
The tax classification code represents the tax code migrated from Release 11i tax content. You
use tax classification codes as determining factors in tax calculation only when you choose to
use the Release 11i tax model in E-Business Tax.

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The tax product category is used by E-Business Tax when the product category is a
determining factor in tax calculation. Tax product categories are most relevant to VAT-based
taxes, where the item must be identified correctly for tax rate determination.
See: Order to Cash: Tax Processing for more information.

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Setting Up Document Sequencing

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Setting Up Document Sequencing
System Administrator
(N) Application > Document > Define
• Using the document sequence number as the transaction number makes tracking
transactions easy.
• When you create a transaction type in Receivables, the document sequencing category is
created automatically.
See: Oracle Applications System Administrator’s Guide – Configuration for more information
about Document Sequencing.

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Setting Up Gapless Transaction Numbering

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Setting Up Gapless Transaction Numbering
Receivables, Vision Operations (USA)
(N) Setup > System Options > (T) Transactions and Customers
(N) Setup > Transactions > Sources > (T) Batch Source
Gapless transaction numbering gives a better audit trail and meets legal requirements for
certain countries. To ensure gapless numbering, do not check the Allow Transaction Deletion
check box in the Transactions and Customers tabbed region of the Systems Options window.
The Document Number Generation Level system option in the Transactions and Customers
tabbed region of the Systems Options window identifies the point at which Receivables
generates a document number for transactions. This is either:
• When the transaction is committed
• When the transaction is completed
Working with Duplicate Invoice Numbers
If the Copy Document Number to Transaction Number check box is selected when creating the
transaction batch source, it is possible to have duplicate invoice numbers within a batch source.
For example, you are using the following settings:

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• Automatic Numbering in the Batch Source window is enabled.
• Copy Document Number to Invoice check box is selected in the Batch Source window.
• Document Number Generation Level system option is set to “When the Transaction is
committed.”
You create an invoice with a transaction type that does not require document sequencing, so
the invoice number is assigned from the batch source. You create another invoice with a
transaction type that requires document sequencing. The invoice number is created from the
document sequence number, which has the same numbering scheme as the batch source.
To avoid this, assign a different numbering scheme to your document sequence and attach
sources.
Note:

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When using document sequencing, the original invoice number is saved to the underlying
tables (OLD_TRX_NUMBER column of the RA_CUSTOMER _TRX_ALL table). Though
not viewable from any window, once the document sequence number is assigned to the
transaction, you can query the old transaction number by entering ‘&’ in the transaction
number field while in query mode. Then press [Ctlr] + [F11] to run the query. When a small
window opens, enter the Where criteria for the OLD_TRX_NUMBER and click the OK
button.
If you do not select the Copy Document Number to Invoice Option, Receivables does not
allow duplicate transactions within a batch.

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Setting Up Statements

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Setting Up Statements
Receivables, Vision Operations (USA)
(N) Setup > Collections > Aging Buckets
(N) Setup > Print > Statement Cycles
(N) Setup > Print > Standard Messages
Statements communicate activity to your customers about invoices, credit memos, debit
memos, payments, on-account credits, chargebacks, deposits, and adjustments.
• Define Aging Buckets for statements. The seeded Statement Aging bucket contains five
periods. Receivables also prints your customer past due balances based on aging buckets.
• Define Statement Cycles.
• Define Messages (optional). You can enhance your statements by printing your own
custom messages.

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Balance Forward Bills

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Balance Forward Bills
A Balance Forward Bill includes the following information:
• A beginning balance or the balance carried over from the last billing period.
• An itemized list of current charges and activities (such as invoices, credit memos, debit
memos, adjustments) in either summary or detail format.
• Payment received for the last billing period.
• Current total outstanding balance.
Note: You cannot update transactions that are included on a balance forward bill, regardless of
how you set the system option Allow Change to Printed Transactions. Because Receivables
considers inclusion of a balance forward bill to be an activity, you cannot update a transaction
once it has an activity against it.

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Setting Up Balance Forward Billing

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Setting Up Balance Forward Billing
Receivables, Vision Operations (USA)
(N) Setup > Print > Balance Forward Billing Cycles
(N) Setup > Transactions > Payment Terms
(N) Customers > Profile Classes > Profile Class
(N) Customers > Account Overview > Account Profile
(N) Customers > Account Site Overview > Profile
(N) Setup > System > System Options
The key Balance Forward Billing setup steps are as follows:
1. Define Balance Forward Billing Cycles. The Balance Forward Billing program uses
balance forward billing cycles:
a. To determine the billing date of a balance forward bill.
b. To select the transactions to include in the balance forward bill.
2. Define Balance Forward Billing Payment Terms. The payment term is the criteria that
Receivables uses to select transactions to be part of the balance forward bill. The due date

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of a transaction is derived from the billing date and the payment term. The billing date is
derived from the transaction date and the billing cycle.
a. Create one or more payment terms for use with balance forward billing by assigning
a balance forward billing cycle to a payment term.
b. Assign balance forward billing payment terms at the customer profile class,
account, or site level.
c. Receivables defaults the assigned payment term during transaction entry.
3. Enable Balance Forward Billing. You can set up balance forward billing to generate bills
consolidated at either the customer account or site level:
a. To generate account level bills, select Account as the Bill Level at the customer
profile class and account profile level. To generate site level bills, select Site as the

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Bill Level at the customer profile class and account profile level. The Bill Level at
the site profile level is a read-only field, defaulted from the account profile level.
b. Account-level balance forward billing lets you generate one bill for each operating
unit of the account, addressed to the primary bill-to site of the account.
c. Site-level balance forward billing lets you generate a balance forward bill for each
bill-to site of a customer with multiple bill-to sites.
d. Receivables defaults the assigned payment term during transaction entry.
Note: Select Override terms to exclude one or more sites, and even one or more
transactions, from a balance forward bill.
Note: Set the Show Billing Number system option to Yes to show the billing number in the
various Transactions windows. The Imported Billing Number feature provides you with an
alternative way of grouping your imported invoices at the site level for consolidated
presentation of billing. You supply the value for the billing number and then create your own
custom consolidated bill formats.

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Setting Up Tiered Interest Rates for Late Charges

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Setting Up Tiered Interest Rates for Late Charges
Receivables, Vision Operations (USA)
(N) Setup > Collections > Aging Buckets and Interest Tiers
(N) Late Charges > Charge Schedules
(N) Customers > Account Overview > (T) Late Charges
The setup steps for Tiered Interest Rates are:
1. In the Aging Buckets and Interest Tiers window:
a. Enter a Name and select the Type Interest Tier.
b. In the Lines region select Type Past Due and specify the day ranges.
2. In the Charge Schedules window:
a. Enter a Schedule Name and Description.
b. Enter the Interest Tier you previously created.
c. Select a Schedule Type of Amount (flat amount) or Percentage (percentage of
overdue invoice).

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d. Enter the schedule Start Date. If the effective dates occur across a charge
calculation period, the Use Multiple Interest Rates option will have charges
calculated at more than one rate during that charge period. This applies only to
Interest, not Penalties.
e. Enter the Tiers and assign a Value of either a flat amount or a percentage
(depending on the Schedule Type) to each tier.
3. In the Late Charges tabbed region of the Customers page, enter or update late charge
policy details.

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Overview of Transaction Printing Views

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Overview of Transaction Printing Views
Transaction Printing Views are used for developers to access the transaction tables to
customize invoices. In the past, a developer had to be very familiar with the transaction tables
to be able to customize invoices. Now, the developer does not need to know the tables because
the view extracts the information.
• Although Receivables makes extracting transaction information easier, it is necessary to
know SQL in order to create a customized invoice.
• A view contains a SQL select statement.
• You use views to select information from the tables, such as the transaction tables.
• A view can reference multiple tables so that when you point to a view, Receivables
retrieves the data from these tables without needing to know all the tables.
• There are modules that create the view structure for the transaction printing procedure.
- You must run these modules in the order in which they appear, because
dependencies exist between some of the files.
See: Appendix D, Oracle Receivables Transaction Printing Views, Oracle Receivables User
Guide for more information about transaction printing views.

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Transaction Printing Views

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Transaction Printing Views
• AR_INVOICE_HEADER_V: The main view. It retrieves the header information of the
report. It has two parts, one for adjustments and one for nonadjustments.
• AR_INVOICE_ADJ_V: Retrieves the details of an adjustment.
• AR_INVOICE_LINES_V: Retrieves the line items of each transaction retrieved by
AR_INVOICE_HEADER_V.
• AR_INVOICE_TAX_SUMMARY_V: Retrieves tax summary information for a
transaction.
• AR_INVOICE_COMMITMENT_INFO_V: Retrieves commitment information for a
transaction.
• AR_INVOICE_TOTALS_V: Retrieves the total amounts for all lines and associated
charges for a transaction (for example, lines, freight, and tax).
• AR_INVOICE_INSTALLMENTS_V: Retrieves installment information for
transactions with multiple installments.
• AR_INVOICE_COUNT_TERMS_V: Retrieves the number of terms for a transaction
(that is, transactions assigned to split payment terms).

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Agenda

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Define Transaction Types in Order

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Define Transaction Types in Order
Define transaction types in the order indicated in this slide, in order to properly associate one
transaction type with another.
For example, define a credit memo first and then an invoice. Enter the credit memo in the
Credit Memo Type field when you create the Invoice transaction type. When you create a
credit memo for the invoice, the credit memo transaction type is defaulted.
You must define invoice transaction types before you define commitment transaction types.
Commitment transaction types are deposits and guarantees.
Suggestion: 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 posted to General Ledger, you
can make it invalid by simply changing the transaction type to “Void.”

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Implementation Considerations for Document Sequencing
Enhancements

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Implementation Considerations for Document Sequencing Enhancements
• What type of document sequence should be used: Gapless, Automatic, or Manual?
• Document sequences and batch source sequences should have different numbering
schemes. This is to prevent duplicate numbering before a transaction has a status of
Complete.
• For gapless transaction numbering, do not allow deletion of invoices.

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Function Security

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Function Security
• If you exclude the Transactions: Dispute function from the Transactions workbench, it is
automatically excluded from the Collections workbench.
• The Copy and Print activities can be accessed either from a button or from the menu.
Excluding the function disables access from the button. The system administrator must
remove access from the menu when defining menu structures.
• You can set up the same function security for debit memos (DM), credit memos (CM),
and on-account credits (OnAcc) as for invoices (Inv). Additionally, you can also set
function security for applying on-account credits (OnAcc: Applications).

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Summary

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Receipts
Chapter 9

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Receipts
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Receipts

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Objectives

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Agenda

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Agenda

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Oracle Receivables Overview

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Oracle Receivables Overview
The Receivables process consists of several major steps. The Post Receipts steps will be
discussed in this topic.
• Create Profile Classes: Defines several default values for customers with similar credit
terms and invoicing requirements.
• Enter Customers: Creates information for the customer and defines the address for the
customer and the business purposes at each address.
• Create Invoices: Uses AutoInvoice or manually created invoices to bill customers for
goods and services.
• Print Invoices: Produces invoices to mail to customers.
• Use iReceivables: Allows customers and employees to access customer accounts online
to see the status of invoices and receipts and to request credits online.
• Post Receipts: Permits posting of customer payments as they are received.
• Perform Collections: Enables collectors to use Advanced Collections to perform timely
and accurate collection activities.

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Overview of Receipts

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Overview of Receipts
You can handle a receipt from a customer in several ways, depending on the amount of the
receipt and total amount owed by the customer.
A customer may pay:
• Full amount due for a specific invoice or group of invoices.
• Partial payment on a specified invoice or specific transaction lines of an invoice.
• Payment on the remaining balance of an account.
• Overpay an account, creating an on-account credit.
If the customer does not provide clear and sufficient information, you may not be able to
accurately identify the customer and properly apply the receipt.

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Receipt Creation

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Receipt Creation
Receipts are created in one of three ways:
• Manual Receipts: Standard and Miscellaneous receipts can be manually applied to
transactions or customer accounts. The Manual Receipt entry method provides more
control over the application of individual receipts to specific items.
• QuickCash Receipts: Standard and AutoLockbox receipts can be applied using
QuickCash receipts. Use this method when you need to enter and apply receipts quickly,
because it only requires a minimal amount of information for each receipt and
application. Also, QuickCash provides an extra level of control for entering high volume
receipts, because it does not immediately affect your customer’s account balance.
QuickCash permits using AutoCash rules, placing receipts on-account, and entering them
as unidentified or unapplied.
• Automatic Receipts: Credit Cards and Direct Debits can use Automatic Receipts 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. Prepayments
require Oracle Order Management.

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Receipt Statuses

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Receipt Statuses
Five receipt statuses are available:
• 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 that the receipt belongs to
a receipt class that requires remittance. For automatic receipts, this status indicates that
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 nonsufficient funds,
or if you want to re-enter and reapply it in Receivables. You can reverse standard receipts
and miscellaneous transactions.

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Manual Receipt Entry Process

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Manual Receipt Entry Process
Use the Receipts window or Receipt Batches window to begin the manual entry process.
• Create a Batch: (Optional) Receipts are entered in batches or groups. Batches provide the
ability to:
- View the difference between control and actual counts and amounts.
- Group related receipts together that share the same default attributes.
- Manage the time-consuming task of data entry.
Note: Batches are optional for Standard Receipts, but required for QuickCash
receipts.
• Enter Receipts: Enter each receipt individually or in batches.
• Apply Receipts: Apply receipts to transactions or transaction lines, or on-account.
• Enter Chargebacks and Adjustments: Create adjustments and chargebacks against the
transaction to which you are applying a receipt.
• Post to GL (General Ledger): Transfer the receipt transaction subledger accounting to
General Ledger for recording.
• Remit Receipts: Remit receipts to collect funds from Customer accounts.

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Receipt Types

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Receipt Types
Receivables, Vision Operations (USA)
(N) Receipts > Receipts
Manual receipts provide more control over the application of individual receipts. In the
Receipts window, you can enter a receipt, specify the customer, reverse a receipt, and apply a
receipt to one or many invoices using Search and Apply. Receipt Types are Standard or
Miscellaneous.
• Cash Receipts: Payment (such as cash or check) that you receive from your customers for
goods or services. Account balances are updated as soon as the receipts are saved.
• Miscellaneous Receipts: Non-invoice related revenue earned from investments, interest,
refunds, and stock sales. Receivables Activities determine the accounting for these
transactions.
Receivables, Vision Operations (USA)
(N) Receipts > Batches > Manual-Quick

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QuickCash receipts let you post receipts and update account balances after running the Post
QuickCash program, rather than when the information is entered. QuickCash receipts require
batching.

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Manual Receipts versus QuickCash Receipts

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Manual Receipts versus QuickCash Receipts
Another difference between Manual Receipts and QuickCash Receipts is that manual receipts
update a customer’s balance, while QuickCash receipts do not immediately affect a customer’s
balance. After reviewing a QuickCash batch for accuracy, you must run Post QuickCash to
update your customer’s account balances.

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Practice - Enter a Manual Receipt
Overview
In this practice you will enter a manual receipt.

Assumptions
• If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.

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• Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.

Tasks
Enter a manual receipt

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts

2. Enter two receipts from XX-Big City using the following information:

• Enter receipt 1
− Receipt Number: XX-01
− Receipt Type: Cash
− Receipt Amount: $20,946.88
− Payment Method: Check-BofA

• Enter receipt 2
− Receipt Number: XX-02
− Receipt Type: Cash
− Receipt Amount: $8,035.00
− Payment Method: Check-BofA

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Solution - Enter a Manual Receipt
Enter a manual receipt

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts


− Receipt Number: XX-01
− Receipt Type: Cash
− Receipt Amount: $20,946.88

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− Payment Method: Check-BofA

2. (T) Customer
− Customer Name: XX-Big City

3. (I) Save

4. (I) New Record


− Receipt Number: XX-02
− Receipt Type: Cash
− Receipt Amount: $8,035.00
− Payment Method: Check-BofA

5. (T) Customer
− Customer Name: XX-Big City

6. (I) Save

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Creating Batches

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Creating Batches
Receivables, Vision Operations (USA)
(N) Receipts > Batches
Use batches to eliminate repetitive data entry by creating default batch-level information.
• Define the following default values for a group of receipts:
- Receipt class: Determines the stages involved in receipt-to-cash cycles. These
stages are confirmation, remittance, and reconciliation.
- Receipt method: Provides accounting flexfield and bank account defaults.
- Deposit date: Default Batch Date and Deposit Date are the current date, but it can
be changed.
- GL date: Default GL date is the day of the most recent open period, but it can be
changed to any open or future enterable period.
- Apply date: Date the receipt is applied.
• You can change default values for specific receipts, if necessary.

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Validating Receipts in Batches

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Validating Receipts in Batches
One of the advantages of batching is the ability to validate that the receipts entered tie to the
control total. The process is:
• Enter the receipt count and the total receipt amount for the batch.
• The actual count and amount is updated as each receipt is entered.
• Difference between the control count and amount and the actual count and amount
indicate potential data-entry errors.

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Batch Statuses

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Batch Statuses
A batch has a status that indicates whether it is complete. Receivables automatically updates
the batch status of a receipt batch when you add new or apply existing receipts in the batch.

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Agenda

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Applying Batch Receipts

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Applying Batch Receipts
When you enter receipts and applications in a QuickCash batch or import them using
AutoLockbox, Receivables stores the data in an interim table. 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.
• Use the QuickCash window to review receipts and ensure that application information is
correct.
• Run Post QuickCash to update the customer’s account balances.
Note: If you do not identify the customer for a receipt, Receivables automatically assigns the
receipt a status of Unidentified.

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Applying Receipts to an Invoice

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Applying Receipts to an Invoice
Use the Applications window or Search and Apply window to apply your receipts or on-
account credits.
• Apply receipts to multiple invoices, single invoice, or on-account.
• Apply a receipt to open debit items to reduce the outstanding balance.
• Apply receipts to specific transaction lines.
• Control who can create adjustments and chargebacks with the AR: Cash-Allow Actions
profile option.
In the Balances region of the Receipts window, receipts are shown as:
• Applied: Receipt is matched to a transaction.
• On-Account: The amount of the receipt is put on the customer’s account and may be
applied later.
• Unapplied: Receipt has not been applied to a transaction.
• Unidentified: Customer for this receipt has not been identified.
Note: Partially applied receipts will have a status of Unapplied until they are fully applied.

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Applying Receipts at Line Level

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Applying Receipts at Line Level
Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations
(USA)
(N) Receipts > Receipts > (B) Apply > Applications > (B) Apply in Detail > Detailed
Applications
Use line-level cash application to apply receipts against specific transaction lines, according to
your customers remittance advice.
For example, if your customer received only Item X, out of the three items X, Y, and Z shipped
to the customer, and remitted payment only for Item X, then you can apply your customer’s
payment to Item X. Later, after your customer receives Item Y and remits payment, you can
apply the payment for Item Y. When the customer receives Item Z and remits payment, you
have the option to unapply line-level cash applications for item X and Y and reapply the
receipts against the entire transaction.
Receivables lets you update an existing transaction-level receipt application to a line-level
receipt application. For example, after applying a receipt against an entire transaction, you later
learn that the customer only wanted to partially pay the transaction. In this case, you can
unapply the original receipt application and reapply the receipt to specific transaction lines.

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Note: Line-level cash application functionality is available only for invoices, debit memos, and
chargebacks with line details. You cannot use line-level cash application with any other
transactions, including invoices with installments. In addition, you cannot update a transaction
level receipt application for an existing invoice created with earlier releases of Oracle
Receivables to a line-level receipt application, if there is any activity against the invoice.
Invoice activity includes receipt application, adjustments, deposits, or credit memo
applications.
The line-level cash application functionality provides the following receipt application options:
• Transaction: This option lets you apply receipts at a summary level. You can enter
amounts by line type: Line, Tax, Freight, or Charges. If you enter a Line or Tax amount,
then Receivables prorates the application across all transaction lines.
• All Lines: This option lets you apply receipts to specific lines. You can select one or

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more transaction lines. Receivables enters the Amount Applied for this receipt and
updates the Balance Due for this transaction, but you can change the amount applied.
Note: If you want to apply cash to most, even if not all, transaction lines, then choose
Select All Lines. Receivables applies the receipt to all transaction lines; you can then
deselect the unwanted transaction lines.
• All Groups: This option lets you apply receipts to transaction lines of a selected group.
This option displays only if group attributes are imported into Receivables from a feeder
system, such as Oracle Service Contracts. You can select one or more groups.
Receivables prorates the application across all transaction lines assigned to the selected
group.
Note: If you want to apply cash to most, even if not all, groups, then choose Select All
Groups. Receivables applies the receipt to all transaction lines in all groups; you can then
deselect the unwanted groups.
• Specific Groups: Select a group to apply cash to selected transaction lines within the
selected group. Specific groups display only if group attributes are imported into
Receivables from a feeder system, such as Oracle Service Contracts. You can select one
or more transaction lines assigned to the selected group.
• Freight and Charges: This option lets you apply receipts to freight and charges at the
invoice level only. You can apply cash to freight and charges either before or after you
apply cash to transaction lines. When you select this option, Receivables displays freight
and charges on separate lines, if they exist. Receivables automatically calculates earned
discounts. You must manually enter unearned discounts.

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Practice - Apply and Update Receipt at Line Level
Overview
In this practice you will apply and update receipt at line level.

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.

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• You have the Receivables, Vision Operations (USA) or Order Management Super User,
Vision Operations (USA) responsibility.

• Replace XX in the Practice with a unique identifier such as your initials or terminal
number. (For Instructor Led Training classes, this number will be assigned to you).
This is necessary in order to create unique records within the database when performing
the Practice.

Tasks
Apply and Update Receipt at Line Level

1. Apply receipt XX-01 to the Line Number 1 (Item Number CS03755) of your first invoice
transaction.

2. Unapply the line level application of receipt XX-01.

3. Reapply receipt XX-01 against your entire first invoice transaction.

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Solution - Apply and Update Receipt at Line Level
Apply receipt XX-01 to the Line Number 1 (Item Number CS03755) of your first
invoice transaction

Responsibility = Receivables, Vision Operations (USA) or Order Management


Super User, Vision Operations (USA)

1. Navigate to the Receipts window.

• (N) Receipts > Receipts

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2. Query your receipt XX-01.

3. Click (B) Apply

4. In the (F) Apply To, select, from the list of values, your first invoice transaction.

5. Click (B) Apply in Detail on the Applications window.

6. In the Application Tree region of the Detailed Application window, expand the tree and
select All Lines.

7. In the (F) Apply To, select, from the list of values, Line Number 1 (Item Number CS03755)
of the invoice.

8. Click (I) Save.

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Unapply the line level application of receipt XX-01

Responsibility = Receivables, Vision Operations (USA) or Order Management


Super User, Vision Operations (USA)

9. Navigate to the Receipts window.

• (N) Receipts > Receipts

10. Query your receipt XX-01.

11. Click (B) Apply

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12. In the (F) Apply To, select, from the list of values, your first invoice transaction.

13. Click (B) Apply in Detail on the Applications window.

14. In the Application Tree region of the Detailed Application window, expand the tree and
select All Lines.

15. In the (F) Apply To, deselect, from the list of values, Line Number 1 (Item Number
CS03755) of the invoice.

16. Click (I) Save.

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Reapply receipt XX-01 against your entire first invoice transaction

Responsibility = Receivables, Vision Operations (USA) or Order Management


Super User, Vision Operations (USA)

17. Navigate to the Receipts window.

• (N) Receipts > Receipts

18. Query your receipt XX-01.

19. Click (B) Apply

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20. In the (F) Apply To, select, from the list of values, your first invoice transaction.

21. Click (B) Apply in Detail on the Applications window.

22. In the Application Tree region of the Detailed Application window, select Transaction on
the tree.

23. Click (I) Save.

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Applications Window

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Applications Window
Receivables, Vision Operations (USA)
(N) Receipts > Receipts > (B) Apply
In the Applications window, you can:
• Apply a receipt to many invoices or put cash on account.
• Apply a receipt to an invoice in a different currency.
• Apply a receipt against specific transaction lines (invoices, debit memos, and
chargebacks only).
• Apply a receipt against another open receipt (netting receipts).
• Create an adjustment to write off a transaction balance or unapplied receipt balances.
• Create a chargeback to create a new transaction for the balance of a transaction.
• Apply discounts.
• Refund all or part of a previously remitted receipt (credit card or non-credit card), either
manually or automatically using AutoInvoice.
• Put invoice-related short payments or non-invoice related overpayments or short
payments into claim investigation.
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Note: When you create a claim for an invoice, Receivables places the related invoice in
dispute until the claim is resolved. (For users of Oracle Marketing Online Trade
Management only.)
See also:
• Process Invoices Using AutoInvoice: Automated Refunds
• Process Invoices: Manual Refunds

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Practice - Apply a Receipt
Overview
In this practice you will apply a receipt.

Assumptions
• If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.

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• Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.

Tasks
Apply your receipts

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts

2. Query your receipt XX-01

3. Apply To: your first invoice transaction

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Solution - Apply a Receipt
Apply your receipts

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts

2. Query your receipt XX-01

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3. (B) Applications

4. Apply To: your first invoice transaction

5. (I) Save

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Criteria for Mass Applying Receipts

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Criteria For Mass Applying Receipts
Receivables, Vision Operations (USA)
(N) Receipts > Receipts > (B) Search and Apply
In the Search and Apply window, you can mass apply receipts to several transactions based on
certain sort criteria. When using the Search and Apply window:
• Apply a receipt to open debit items automatically.
• Apply receipts based on the criteria you specify.
• Review receipts before applying them or apply the receipts automatically.

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Practice - Use Mass Apply
Overview
In this practice you will use Mass Apply.

Assumptions
• If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.

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• Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.

Tasks
Mass apply your receipts

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts

2. Query your receipt XX-02

3. (B) Mass Apply

4. (B) Preview

5. Select the Apply checkbox for:


− Select the transaction from your first invoice
− The invoice associated with your sales order
− Place any leftover amount On - Account

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Solution - Use Mass Apply
Mass apply your receipts

Responsibility = Receivables Manager

1. Navigate to the Receipts window

• (N) Receipts > Receipts

2. Query your receipt XX-02

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3. (B) Mass Apply

4. (B) Preview

5. Select the Apply checkbox for:


− Select the transaction from your first invoice
− The invoice associated with your sales order
− Place any leftover amount On - Account

6. (I) Save

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AP/AR Netting

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AP/AR Netting
A business enterprise that is both a customer and a supplier to the deploying company is called
a trading partner. The AP/AR Netting process lets the deploying company offset their
Payables and Receivables transactions against the same trading partner.
AP/AR Netting automatically compares Payables to Receivables and creates the appropriate
transaction in each system to net supplier invoices and customer invoices. The netting process
runs against the specified trading partners and transaction dates, and produces these results:
• If Receivables has a larger outstanding balance than Payables, then the final netting
amount is the sum of the Payables open selected transactions.
• If Payables has a larger outstanding balance than Receivables, then the final netting
amount is the sum of the Receivables open selected transactions.
• If there is no outstanding balance in Payables or Receivables, the netting process applies
the receipts and closes the invoices to avoid the invoices becoming overdue.
The netting process creates a Payables payment and a Receivables receipt to offset the
Payables and Receivables balances due to netting.
One Receivables receipt is created to total the final netting amount. Once the receipt is created
for netting, it cannot be unapplied.

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Prepayments

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Prepayments
A prepayment is payment in advance of the delivery of goods or services. Receivables creates
prepayments as receipts before the related invoices are created.
Receivables integrates with Oracle Payments to process prepayments. Customers can use any
of these payment instruments to make a prepayment:
• Automatic Clearing House (ACH) bank account transfer
• Cash
• Check (tendered to order taker)
• Credit card/purchase card
• Direct debit
Customers can use more than one payment instrument for a single prepayment. Receivables
creates one prepayment receipt for each payment instrument used.
The creation of prepayment receipts and the subsequent application to matching prepaid
invoices is a process that occurs without user intervention. You cannot manually create
prepayments in Receivables, but you can review prepayment receipt history in Receivables.

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Prepayment Process Flow
• Record the payment information in your feeder system. The information is passed to
Receivables.
• A public API creates a prepayment receipt in Receivables, and processes the receipt using
the payment information provided. Receivables applies all prepayment receipts against
the Prepayment application type, and records accounting according to the prepayment
receivables activity.
• When the order is sent to Receivables for invoicing, AutoInvoice creates an invoice that
is marked as prepaid. AutoInvoice initiates a postprocess matching program to identify
any open prepaid invoices and search for matching prepayment receipts. When a match is
found, the program unapplies the receipt from the Prepayment application type and
reapplies the receipt to the corresponding invoice.

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Cross Currency Receipts

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Cross Currency Receipts
Receivables, Vision Operations (USA)
(N) Receipts > Receipts > (B) Applications
When a customer remits payment in a currency different from the currency of the open debit
item, you can apply a cross currency receipt. Receivables lets you apply cross currency
receipts for full or partial payment of an invoice, debit memo, or chargeback.
When you apply a cross currency receipt, Receivables determines the transaction and receipt
amounts in the functional currency. Receivables then compares these amounts to determine the
foreign exchange gain or loss as a result of applying the receipt in a different currency, using
this formula:
(Receipt Amount as of receipt date) – (Invoice Amount as of invoice date) = Foreign Exchange
Gain or Loss

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Entering Discounts

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Entering Discounts
You can review the Earned and Unearned discounts on the debit items to which a receipt was
applied.
• Earned discounts are automatically calculated according to the payment terms on the
transaction.
• Unearned and partial discounts are entered manually.
• Use system options, customer profiles, and payment terms to control discount calculation.
• Use the maximum discount column to view the amount of allowable discount.
• The largest Unearned discount a customer can take is the best Earned discount available
for the invoice.

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Agenda

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Chargebacks and Adjustments

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Chargebacks and Adjustments
Receivables lets you create adjustments and chargebacks against transactions to which you
apply receipts. You use chargebacks to create a new debit item for your customer when closing
an existing debit item. For example, your customer sends payment of $75 for a $100 invoice—
you apply the receipt to the invoice, then create a chargeback for the balance due.
If you use Oracle Trade Management, then you can create chargebacks against receipts when
resolving cash claim investigations. You can create chargebacks against receipts using either
the Receivables Receipt Applications window or Trade Management. When you save the
receipt application in the Applications window, the claim is created in Trade Management and
the claim number passed to Receivables.

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Chargebacks and Adjustments against Transactions

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Chargebacks against Receipts

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Chargebacks against Receipts
If you use Trade Management to track your customers’ short payments and overpayments
(claims) on receipts, then Receivables claims are automatically passed to Trade Management
for claim tracking, analysis, and resolution. If a chargeback is required to resolve a claim, then
the chargeback is created directly in Trade Management:
• To resolve an invalid invoice-related claim, the Trade Management user can create a
chargeback against the related transaction.
• To resolve an invalid non-invoice related claim (for a short payment), where there is no
related transaction to create the chargeback against, the Trade Management user can
create a chargeback against the receipt that held the claim. A chargeback against a receipt
brings the Unresolved Claims total closer to zero and increases the Applied total for the
receipt.

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Creating a Chargeback

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Creating a Chargeback
Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations
(USA)
(N) Receipts > Receipts > (B) Apply > Applications > (B) Chargeback
Note: If you have Trade Management installed, then the Trade Management user, not the
Receivables user, will create these transactions to resolve invalid non-invoice related claims.

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Credit Card Chargebacks

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Credit Card Chargebacks
Receivables supports business enterprise management of credit card chargebacks between card
issuers and cardholders. A credit card chargeback is an independent process that does not
make use of the Receipt Applications window.
A cardholder can request a chargeback for many reasons:
• Charges for undelivered goods.
• Charges for goods or services different from what was ordered.
• Charges for the wrong quantity of goods ordered.
• Charges for goods that were not timely delivered.
A credit card chargeback takes place when a cardholder disputes a credit card charge with the
credit card issuer for a transaction with the business enterprise (vendor). The credit card issuer
credits (charges back) the cardholder’s account for the disputed amount, deducts the amount
from the vendor’s bank account, and sends the vendor a credit card chargeback notification.
The vendor records the credit card chargeback in Receivables as a negative miscellaneous
receipt.

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The vendor then investigates if the chargeback is valid. After investigating the chargeback
request:
1. If the chargeback request was valid, the vendor creates a credit memo against the
transaction for the chargeback amount.
2. If the chargeback request is proven to be invalid, then the vendor unapplies the credit
card chargeback activity from the receipt and reapplies the receipt for the full amount.
This action automatically reverses the negative miscellaneous receipt that was originally
created when the vendor first recorded the credit card chargeback.

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Working with Claims

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Working with Claims
Oracle Applications treats short payments and overpayments as claims. Receivables integrates
with Trade Management to let you manage these claim requests.
When you create a claim in Receivables, Receivables automatically passes the claim to Trade
Management for further research. Trade Management assigns a claim number and the claim
investigation process begins.

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Creating Claims

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Automatic Claim Creation Through Lockbox and Quickcash

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Automatic Claim Creation Through Lockbox and Quickcash
Using AutoLockbox, you can create claims in high volume, thus shortening the time to
resolution and reducing the total cost of ownership of deductions management.
Depending on how you run your business, you can choose whether or not you want to create
claims for invalid transactions, credit memos, and negative and positive claims. In addition,
claim functionality has been enhanced to accept and store customer reason codes through
AutoLockbox and in the Receipt Applications window. Using Trade Management, you can
map these reason codes to your organization’s internal codes.

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Resolving Claims

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Automated Settlement Methods Effectively Settle Deductions

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Automated Settlement Methods Effectively Settle Deductions

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Resolving Claims Not Associated to an Invoice

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Resolving Claims Not Associated to an Invoice
The following resolutions occur directly in Trade Management:
• For valid non-invoice related claims, you can:
- Create an on account credit memo (for a short payment)
- Apply an existing credit memo (for a short payment)
- Create an on account credit-cash application line (for an overpayment)
- Create a debit memo (for an overpayment)
- Apply an existing debit memo (for an overpayment)
• For invalid non-invoice related claims, you can:
- Enter a chargeback on the receipt (for a short payment)
• For both valid and invalid non-invoice related claims, you can:
- Write off the remaining amount on the receipt (for an overpayment)
The following resolution must be manually completed in Receivables.
• For invalid non-invoice related claims, you can:
- Create a write-off adjustment (for a short payment)

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Vendor Claims on Credit Card Chargebacks

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Vendor Claims on Credit Card Chargebacks
Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations
(USA)
(N) Receipts > Receipts > (B) Apply > Applications > (B) Chargeback
After receiving a credit card chargeback notification, you record the chargeback in Receivables
as follows:
• Find the receipt for which the chargeback was requested.
• Unapply the application line and subtract the amount of the credit card chargeback.
• Apply the credit card chargeback activity on a new application line on the receipt. This
will automatically generate a negative miscellaneous receipt to the value of the
chargeback.
You then investigate whether the chargeback is valid and take one of the following actions
depending on your findings:
• For a valid chargeback, you create a credit memo against the transaction for the
chargeback amount.

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• If you can prove that the chargeback is invalid, by providing sufficient proof of delivery
or other supporting documents to the credit card issuer, you reverse the application of the
credit card chargeback by:
- Finding the receipt.
- Unapplying the credit card chargeback activity from the receipt. This automatically
reverses the negative miscellaneous receipt.
- Restoring the original amount on the application line.

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Resolving a Split Claim

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Resolving a Split Claim

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Resolving a Split Claim
Note: Claim reference numbers created in Receivables always start with a DED (deduction) or
OPM (overpayment), for example, DED14546 or OPM12356.
In Receivables, however, you will still see the original claim DED104 for $1,000 until one of
the claims is resolved. When Claim DED104-2 is resolved, Receivables unapplies the Claim
Investigation application for $1,000, enters the resolution for claim DED104-2, and creates two
new claim investigation applications: claims DED104 and DED104-1. If you were splitting the
claim into two different amounts, 400 and 600, then it will close claim DED104 and open
DED104-1 and DED104-2.

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Agenda

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Balancing Segments

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Balancing Segments
For example, if an invoice’s balancing segment that you assess late charges for has a value of
“01” and the balancing segment of your late charges account is “02,” when Receivables
accrues late charges for this invoice the Account Generator automatically changes the
balancing segment of the late charges account to “01.”
The Account Generator in Receivables uses Oracle Workflow. You can view and customize
Account Generator processes through the Oracle Workflow Builder to modify the default setup
(for example, to use a different balancing segment for either the late charges or Receivables
account).

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Deriving Balancing Segment Values

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Deriving Balancing Segment Values
Note: Receivables does not substitute the balancing segment for miscellaneous cash, bank
errors, or commitments (deposits and guarantees).

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Disabling the Balancing Segment Substitution Process for
Activities

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Disabling the Balancing Segment Substitution Process for Activities
If you disable balancing segment substitution for activities, then you must define a suspense
account in the event that your activities and original transactions do not post to the same
balancing segment value. Otherwise, the transfer to General Ledger will not succeed.

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AR: Disable Receivable Activity Balancing Segment Substitution

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Agenda

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Lockboxes

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Lockboxes
Receivables displays active Lockboxes as list of value choices in the Submit Lockbox
Processing window.
You can disable a Lockbox by unchecking the Active box on the Lockboxes window.

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Using AutoLockbox

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Using AutoLockbox
You specify how you want information transmitted and Receivables ensures that the data is
valid before creating QuickCash receipt batches. You can automatically identify the customer
who remitted the receipt and optionally use AutoCash rules to determine how to apply the
receipts to your customer’s outstanding debit items. If you are using Oracle Trade
Management, then during AutoLockbox and Post QuickCash processing Receivables can
automatically prepare eligible remittance lines for claim creation in Trade Management.

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Lockbox Integration

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Lockbox Integration
The lockbox receives payments and automatically creates a claim for any differences between
the invoices and payments received. Receivables interprets the lockbox entries based on
settings in the System Options and Lockbox setup windows.
The claim preferences are configurable. Customers can communicate the reasons for the
difference between their payment and the invoice. The reason codes are captured in the
lockbox file and travel through the flow with the remittance line to Trade Management, where
they are translated into your company’s reason codes. You can map customer reason codes to
internal reason codes.

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Historical Data Conversion

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AutoLockbox Process

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AutoLockbox Process
Three step process:
1. Import
During this step, AutoLockbox reads and formats the data from your bank file into the
AutoLockbox table using an SQL *Loader script.
2. Validation
The validation program checks data in the AutoLockbox tables for compatibility with
Receivables. Once validated, the data is transferred into QuickCash tables. At this point, you
can optionally query your receipts in the QuickCash window and change how they will be
applied before submitting the final step, Post QuickCash.
3. Post QuickCash
This step applies the receipts and updates your customer balances. These steps can be
submitted individually or at the same time from the Submit Lockbox Processing window. After
you run Post QuickCash, Receivables treats the receipts like any other receipts; you can reverse
and reapply them and apply any unapplied, unidentified, or on-account amounts.

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Note: AutoLockbox cannot process receipts that are not related to invoices. Process non-
invoice related receipts, such as investment income, through the Receipts window using a
receipt type of Miscellaneous.
See: Using AutoLockbox, Oracle Receivables User Guide for more information.

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AutoLockbox Process Flow

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AutoLockbox Process Flow
The illustration in this slide shows how receipt data from your bank file is imported into
Receivables tables. The illustration also shows that Receivables generates the Import section
when you submit the import step of AutoLockbox, and generates the Validation section when
you submit the validation step of AutoLockbox. Receivables automatically generates the Post
QuickCash Execution Report each time you submit Post QuickCash or AutoLockbox.

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AutoLockbox Validation

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AutoLockbox Validation
AutoLockbox validates your data by ensuring that the columns in
AR_PAYMENTS_INTERFACE_ALL reference the appropriate values and columns in
Receivables. AutoLockbox does not allow duplicate receipts within the same batch source for
the same customer. This is the same validation Receivables performs when you manually enter
receipts using the Receipts window.
Important: If proper controls are not in place, it is possible to reimport and reapply receipts
that AutoLockbox has already processed. We recommend that you establish standard operating
procedures to ensure that users do not process the same bank file more than once using
AutoLockbox.
Invoice numbers are only required to be unique within a batch source. A customer can have
duplicate invoice numbers as long as they belong to different batch sources; however,
AutoLockbox cannot automatically apply a payment to these invoices. If a customer has more
than one invoice in the system with the same number, then AutoLockbox cannot determine the
invoice to apply the payment. The receipt will either be left as Unapplied (if the customer
number or Magnetic Ink Character Recognition, MICR, number is provided) or Unidentified
(if the customer number or MICR number is not provided).

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AutoLockbox completes the following validations:
• Transmission Level Validation
• Lockbox Level Validation
• Batch Level Validation
• Receipt Level Validation
• Overflow Level Validation
• Customer Validation
• Currency Validation

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AutoLockbox and Customer Identification

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AutoLockbox and Customer Identification
The AutoLockbox validation program will identify a customer for a receipt using the matching
number, only if all of the transactions listed to be paid by this receipt are associated with the
same customer:
• If a unique customer cannot be determined, AutoLockbox imports the receipt and assigns
it a status of Unidentified.
• If a unique customer cannot be determined and duplicate invoices are supplied as the
matching number for a receipt, AutoLockbox does not validate the receipt because it
cannot determine how to apply the receipt
You can use the validation section of the Lockbox Processing Report to examine transactions
that AutoLockbox could not apply because the customer could not be uniquely identified.

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AutoLockbox Transmissions

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AutoLockbox Transmissions
The table in this slide illustrates examples of four separate AutoLockbox transmissions that
include duplicate invoice numbers. Assume that in each transmission, AutoAssociate is set to
Yes, the remitting customer is Customer ABC, and the receipt information includes the invoice
number but not the customer name.
In the second example, Lockbox is able to identify the receipt because the invoices belong to
the same customer. However, since the invoices have the same number, Lockbox cannot
determine to which invoice to apply the receipt, so the receipt is left Unapplied.
Note: Depending on your setup, Lockbox might create a claim for an unmatched remittance.
In the third example, Customer XYZ is related to Customer ABC and there are two invoices
with the same invoice number. In this case, Lockbox will apply the receipt to the invoice that
belongs to the remitting customer (Customer ABC), if the receipt record includes the customer
or MICR number; otherwise, Lockbox assigns the receipt a status of Unidentified.
In the last example, two invoices with the same number exist for two different customers.
Lockbox does not validate the receipt because it cannot determine how to apply the receipt.
You can review receipts that failed the validation step in the Lockbox Execution Report.

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Applying Receipts using AutoLockbox

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Applying Receipts using AutoLockbox
To successfully apply a receipt, AutoLockbox must know the name or number of the remitting
customer and to which transaction each receipt should be applied. If the Lockbox transmission
includes both the customer name or number and the transaction to which each receipt should be
applied, AutoLockbox uses this information to apply the receipts during Post QuickCash. If
customer information is not provided, you can set up your Lockbox to use matching rules to
identify the remitting customer and partially or fully apply each receipt.
A Lockbox transmission usually includes matching numbers. These are most often transaction
numbers, but they can also be other types of numbers, such as a purchase order or sales order
number. To use matching rules, you need to specify a Match Receipts By method and set the
AutoAssociate parameter to Yes when defining your Lockbox. The Match Receipts By method
determines which type of number to search for during the validation step. When it finds a
match, AutoLockbox identifies the customer using the information from the matched
transaction and then applies the receipt during the final step, Post QuickCash.
If AutoLockbox cannot identify the customer or the transaction to apply the receipt to, it
assigns the receipt a status of Unidentified.

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If AutoLockbox identifies the customer for a receipt but cannot determine which transaction
this receipt should be applied to, AutoLockbox might create a claim, depending on your setup.
If you did not define your Lockbox to automatically create claims, or if you did but no
remittance lines are eligible, then AutoLockbox applies the receipt using the AutoCash Rule
Set defined for this customer.
AutoLockbox can also import and apply cross currency receipts.
You can pay for another customer’s invoices through AutoLockbox if you have set up a
relationship between these customers or the system option Allow Payment of Unrelated
Invoices is set to Yes for this Lockbox submission. The paying customer should be identified
by a customer or MICR number on the receipt record. Additionally, all invoices listed to be
paid by one receipt must belong to the same customer; otherwise, Lockbox imports the receipts
as Unapplied.

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If the Allow Payment of Unrelated Invoices option is set to No in the System Options window
or for this Lockbox submission, you need to set up a relationship between the customers before
you can make applications in this way. You can also set up a party paying relationship.
Note: When applying a receipt to an invoice through AutoLockbox, AutoLockbox does not
realize discounts. This is an operation of the Post QuickCash program. If the customer’s credit
profile and payment terms are set to Allow Discounts, Post QuickCash will automatically take
the discount. The discount taken will also depend on how you set the Allow Unearned
Discounts and Discount on Partial Payment system options. The discount can be manually
overridden in the Receipts window.

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Creating Claims Using AutoLockbox

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Creating Claims Using AutoLockbox
You can initiate claim creation:
• Manually, when applying receipts in the Applications window or in the QuickCash
window.
• Automatically, when importing receipts via AutoLockbox.
Receivables can automatically initiate claim creation during AutoLockbox and Post QuickCash
processing. Additionally, you can create claims when manually entering receipts in the
Applications window or in the QuickCash window. You can also create claims directly in
Trade Management.
Claims can be either invoice related or non-invoice related:
• If a customer short pays a particular invoice, then you can create an invoice-related
claim. Invoice-related claims take the currency of the invoice.
This type of claim places the related invoice in dispute; the invoice remains open until the
claim is resolved. You can choose to age or summarize disputed transactions in aging reports.
Note: In Receivables, invoice-related claims are always short payments. If you receive an
overpayment that is related to an invoice, then you should fully apply the invoice and record

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the remaining amount as a non-invoice related claim using the Claim Investigation application
type.
• If a customer includes a deduction or overpayment on a remittance but does not indicate a
related invoice number, then you can create a non-invoice related claim using the Claim
Investigation application type. Non-invoice related claims take the currency of the
receipt.
This type of claim is an open receipt credit; the receipt remains open until the claim is
resolved. You can choose to age or summarize open credits.
Note: A negative claim investigation is a positive claim in Trade Management, because Trade
Management and Receivables are on opposite sides of the balance sheet. Trade Management is
a liability/expense product while Receivables is an asset/revenue product.

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Importing and Applying Cross Currency Receipts

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Importing and Applying Cross Currency Receipts
AutoLockbox can import and apply cross currency receipts for each currency defined in your
system.
For example, your functional currency is the US dollar, and you create invoices for your
customers in that currency. However, you have many international customers, so you need to
accept payments in different currencies.

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Lockbox Execution Report

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Receipt to Receipt Applications

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Receipt to Receipt Applications
You can net receipts in Receivables. To net receipts, you apply a receipt against another open
receipt, and then apply the resulting unapplied receipt balance to a transaction.
Open receipts include receipts that have:
• Unapplied cash
• On-account cash
• Open claim investigation applications
You can also apply one receipt against another receipt that has an open claim investigation
application. A claim investigation application results from either a non-invoice related
deduction or an overpayment.
Note: Receivables automatically updates Trade Management when you make a receipt
application against a second receipt that has an open claim investigation.
Note: When netting receipts, both receipts must be in the same currency. You can also net a
QuickCash receipt against multiple open receipts.
Additionally, Receipt to Receipt Applications provide you with an efficient approach to
settling open cash, because it eliminates the need to open multiple receipts to apply on-account

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and unapplied cash. In other words, from just one receipt, you can apply one receipt to another
open receipt, and the balances and accounting are automatically updated on both receipts.
Using Oracle Trade Management to manage claims, you can now apply receipts that have open
claim investigations, which will in turn update amounts or cancel claims in Trade
Management. This lets you net short payments with overpayments in the system. For example,
you might do this if you determined that a short payment on a remittance was due to an
overpayment on another receipt that resulted in a Claim Investigation.
Receipt Write-off for Short Payments
You can now manually write off short payments on receipts. This functionality includes the
ability to set approval limits for write-off amounts at the user and system level. This can be
done in Receivables and in Trade Management.

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Automated Receipt Handling for Credits

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Automated Receipt Handling for Credits
To handle the situations described above promptly and efficiently, use Automated Receipt
Handling for Credits. You can set the receipt handling policy to automatically refund both
credit card and non-credit card payments, or apply receipts to on-account cash.
When refunding, some credits require careful investigation before funds are returned to the
customer. Receivables recognizes when user intervention is required and automatically places
questionable items on account. Depending on the outcome of the investigation, you can then
initiate the refund or choose another receipt application.
You can also set a refund minimum for your enterprise. Amounts less than the minimum are
placed on account, letting you manage these receipts according to your business practices.

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Automatic Receipts

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Automatic Receipts
You can also manage your cash flow by deciding when, where, and how much you should
remit to your bank. Automatic receipts also let 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.

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Bank Remittance Process

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Bank Remittance Process
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.

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Creating Automatic Receipts

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Automatic Receipts and Remittance Process Overview

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Automatic Receipts and Remittance Process Overview
The diagram in this slide provides an overview of the Automatic Receipts and Remittance
processes.
See: Automatic Receipts, Oracle Receivables User Guide for complete information about the
automatic receipts and remittance process.

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Credit Cards

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Credit Cards
By providing a credit card number as payment, your customer expects that the credit card
issuer will transfer funds to your bank account as payment for their open debit items. The
Automatic Receipts program lets you collect payments according to a predefined agreement
with your customer. The Automatic Remittances program transfers funds from the customer’s
bank account to yours on the receipt maturity date.
Credit Card Payment Process
You must complete these steps to process credit card payments in Receivables:
• Assign a credit card receipt method and credit card bank account to the transactions that
you want to pay by credit card. This assignment flags transactions for credit card
payment.
• Run the Automatic Receipts program to select the transactions that are flagged for credit
card payment. The Automatic Receipts program creates a batch of receipts (payments)
for the selected transactions.
• Approve the batch of automatic receipts to reserve the payment amount from your
cardholder’s account and close the selected transactions. The Approve Automatic
Receipts program sends the receipt batch to Oracle Payments for credit card

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authorization. Oracle Payments integrates with third party payment processors to
authorize your customer’s credit card account number and assign an approval code to the
transaction.
- If authorization is successful, then Oracle Payments assigns the approval code and
the receipt is approved. If authorization is not successful, then the receipt is rejected
from the batch.
- To decrease processing time, you can create and approve your automatic receipts in
one step.
Note: Oracle Payments can authorize your customer’s credit card account number
at different times during the payment processing flow. For example, credit card
authorization can take place at the time of the order (in Oracle Order Management)
or at the time of billing (in Receivables).

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• Create and approve a remittance batch to request transfer of funds from the credit card
issuer to your bank.

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Processing Credit Card Refunds

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Processing Credit Card Refunds
Note: Processing Credit Card Refunds is different from processing Credit Card Chargebacks.
While the customer requests a credit card refund directly from you, for chargebacks the
customer interacts directly with the credit card issuer. For more information, see the following
topics:
• Credit Card Chargebacks
• Vendor Claims on Credit Card Chargebacks
• Credit Card Refunds

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Processing Credit Card Transactions

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Creating Credit Card Transactions

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Credit Card Refunds

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Credit Card Refunds
To create a credit card refund, you apply a special credit card refund application to the receipt,
which generates a negative miscellaneous receipt. The Automatic Remittances program
processes this negative receipt, thereby transferring funds from your account back to your
customer’s credit card.
See: Credit Cards, Oracle Receivables User Guide for detailed information about the steps that
are required to process credit card refunds.
Differences between Credit Card Refunds and Credit Card Chargebacks
The Credit Card Refunds functionality differs from Credit Card Chargebacks in these ways:
• In Credit Card Refunds, the customer requests a refund directly from you, the vendor,
while in Credit Card Chargebacks the customer interacts directly with the credit card
issuer. For Credit Card Chargebacks, the credit card issuer credits the customer account
for the disputed amount, deducts the amount from the vendor bank account, and notifies
the vendor that a credit card chargeback has occurred.
• Both Credit Card Refunds and Credit Card Chargebacks make use of negative
miscellaneous receipts. However, in Credit Card Refunds miscellaneous receipts must be
remitted for customers to obtain their refunds. In Credit Card Chargebacks, the customer

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has already received the disputed amount and the miscellaneous receipt is created and
remitted solely to ensure accurate accounting and reconciliation.

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Summary

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Implement Receipts
Chapter 10

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Implement Receipts

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Objectives

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Agenda

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Overview of Receipt Setup

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Receivables Activity Types

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Receivables Activity Types
You define Receivables activities according to activity type. An activity type determines
whether the activity uses a distribution set or GL account, where Receivables derives the tax
rate code, and in which windows an activity appears in the list of values.
Receivables provides these activity types:
• Adjustment: You use activities of this type in the Adjustments window. You must create
at least one activity of this type.
• Bank Error: You use activities of this type in the Receipts window when entering
Miscellaneous transactions. You can use this type of activity to help reconcile bank
statements using Oracle Cash Management.
• Claim Investigation: You use activities of this type in the Receipts Applications and
QuickCash windows when placing receipt overpayments, short payments, and invalid
Lockbox transactions into claim investigation. The receivable activity that you use
determines the accounting for these claim investigation applications. This activity type is
for use only with Oracle Trade Management.
• Credit Card Chargeback: Use activities of this type in the Receipts Applications window
when recording credit card chargebacks. This activity includes information about the

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General Ledger clearing account used to clear the chargebacks. Receivables credits the
clearing account when you apply a credit card chargeback, and then debits the account
after generating the negative miscellaneous receipt.
• Credit Card Refund: You use activities of this type in the Receipts Applications window
when processing refunds to customer credit card accounts. This activity includes
information about the General Ledger clearing account used to clear credit card refunds.
You must create at least one activity of this type to process credit card refunds.
• Earned Discount: You use activities of this type in the Adjustments and the Remittance
Banks windows. Use this type of activity to adjust a transaction if payment is received
within the discount period (determined by the transaction payment terms).
• Late Charges: You use activities of this type in the System Options window when you
define a late charge policy. You must define a late charge activity if you record late

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charges as adjustments against overdue transactions. If you assess penalties in addition to
late charges, then define a separate activity for penalties.
• Miscellaneous Cash: You use activities of this type in the Receipts window when
entering Miscellaneous transactions. You must create at least one activity of this type.
• Payment Netting: You use activities of this type in the Applications window and in the
QuickCash Multiple Application window when applying a receipt against other open
receipts. You can define multiple receivables activities of this type, but only one Payment
Netting activity can be active at any given time.
• Prepayments: Receivables uses activities of this type in the Applications window when
creating prepayment receipts. You can define multiple receivables activities of this type,
but only one prepayment activity can be active at any given time.
• Refund: Use activities of this type in the Applications window to process automated non-
credit card refunds.
• Unearned Discount: You use activities of this type in the Adjustments and the Remittance
Banks windows. Use this type of activity to adjust a transaction if payment is received
after the discount period (determined by the transaction payment terms).
• Other Types of Receivables Activities include: Endorsements, Receipt Write-Off, and
Short-Term Debt.

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Receivables Activity Setup

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Receivables Activity Setup
Define Receivables Activities to default accounting and tax information to specific Receivables
transaction activities.
The steps are:
• Select an operating unit.
• Select an Activity Type.
• Select a GL Account Source to indicate how Receivables derives the accounts for the
expense or revenue generated by this activity:
- Activity GL Account: Allocate the expense or revenue to the general ledger account
that you specify.
- Distribution Set: Allocate the expense or revenue to the distribution set that you
specify. (Miscellaneous Cash activity type only)
- Revenue on Invoice: Allocate the expense or revenue net of any tax to the revenue
account or accounts specified on the invoice. (Adjustment, Earned Discount, or
Unearned Discount activity types only)

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- Tax Rate Code on Invoice: Allocate the net portion using the Expense/Revenue
accounts specified by the tax rate code on the invoice. (Adjustment, Earned
Discount, or Unearned Discount activity types only)
• Select a Tax Rate Code Source:
- None: Allocates the entire tax amount according to the specified GL Account
Source. Choose this option if you do not want to separately account for tax..
- Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by
the Receivables Activity.
- Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code
on the invoice. You cannot choose this option if the activity type is Miscellaneous
Cash or Late Charges.

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• Enter the GL account, distribution set (if applicable), and tax rate code (if applicable).
• Complete the remaining setup steps, if applicable.

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Receivables Activity Example

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Receivables Activity Example
This example shows how Receivables derives the GL accounts on an Adjustment Receivables
Activity.
You want to adjust an invoice by decreasing the line amount by $120. If the Adjustment
Receivables Activity is set with a Tax Rate Code Source of:
• None: Receivables does not calculate tax. The only accounting is specific to the
adjustment.
• Invoice: Receivables uses the tax rate code on the original invoice to distribute the tax
amount.

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Receipt Class, Receipt Method, and Bank Account Relationship

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Receipt Class, Receipt Method, and Bank Account Relationship
The relationship between receipt class, receipt method, and bank account enables accounting
defaults.
When a receipt is entered:
• Receipt method and bank account are specified.
• Receivables processes the receipt according to the receipt class that the receipt method is
associated with.
• Accounting for the receipt is derived from the bank account of the receipt method.

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Defining Remittance Banks and Bank Accounts

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Defining Remittance Banks and Bank Accounts
Define all of the banks and bank accounts that you use to remit payments. You can define
multiple currency bank accounts to accept payments in more than one currency.
You define banks and bank accounts in Oracle Cash Management. See: Create Banks and
Define Bank Branches, Oracle Cash Management User Guide for more information.

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Defining Receipt Classes

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Defining Receipt Classes
(N) Receivables > Setup > Receipts > Receipt Classes
Receipt classes determine how Oracle Receivables processes receipts. Specify for each receipt
class:
• Creation Method – How to create receipts
- Manual: Standard, quick, and lockbox receipts
- Automatic: Automatic and credit card receipts. Oracle Payments processes funds
capture.
- Bills Receivable
- Bills Receivable Remittance
• Remittance Method – How to derive the remittance account for automatic receipts
- No Remittance: Receipts that are not remitted.
- Standard: Regular remittance.
- Factoring: Short term debt.
- Standard and Factoring: Both types in a batch.
Note: Cash receipts reconciled in Oracle Cash Management must be remitted.
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• Clearance Method – How to reconcile receipts before posting to GL
- Direct: Clear at time of receipt entry.
- By Automatic Clearing: Clear using the Automatic Clearing program.
- By Matching: Clear receipts manually in Oracle Cash Management.
• Receipt Method – How to account for receipt entry and receipt application
- A receipt method is tied to a receipt class and takes on the attributes of that receipt
class, including creation method, remittance, and clearing.
- One or more receipt methods are associated with each receipt class.
- A receipt method includes a funds capture method, to identify the way customers
remit payment to you.
- Each receipt method can be associated with one or more remittance bank accounts.

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Each bank account determines the GL accounts to use when you enter or apply a
receipt.

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Associating a Bank Account With a Receipt Method

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Associating a Bank Account with a Receipt Method
Receivables
(N) Setup > Receipts > Receipt Class > (B) Bank Accounts
Associate bank account information with each receipt class and receipt method combination.
• You can assign more than one remittance bank to each receipt class and receipt method
combination.
• Specify the bank name, branch, account, and currency for your remittance bank using the
list of values.

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Defining Receipt Sources

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Defining Receipt Sources
Receivables
(N) Setup > Receipts > Sources
Define a receipt source to determine:
• Creation method (automatic or manual)
• Batch numbering
• Default receipt class, receipt method, and bank account
Set the AR: Receipt Batch Source profile option in order to define default receipt sources either
by user, responsibility, application, or site.

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Defining AutoCash Rules

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Defining AutoCash Rules
Receivables
(N) Setup > Receipts > AutoCash Rules
AutoCash Rule Sets determine how a QuickCash receipt is applied to open debit items.
• Specify whether earned or unearned discounts will be calculated for receipt applications.
• Enable late charges or disputed items to be included in the open balance calculation.
• Specify whether any remaining remittance amounts from partial payment applications
will be saved as unapplied or on account.
• Enter a sequence to specify the order in which to automatically apply receipts for this set.
• Enter one or more rules for receipt application from the AutoCash Rule options.
- Apply Oldest Invoice First: Matches receipts to customer debit items, starting with
the oldest outstanding debit item. Receivables determines the oldest debit item
using the Open Balance Calculations values for the AutoCash rule set.
- Clear Account: Applies receipts to the customer’s calculated account balance when
the balance exactly matches the receipt amount.

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- Clear Past Due Invoices: Closes all past due debit and credit items when the
calculated past due balance exactly matches the receipt amount.
- Clear Past Due Invoices Grouped by Payment Terms: Groups past due invoices by
their payment term, and then uses the oldest transaction due date within the group
as the group due date.
- Match Payment With Invoice: Applies receipts to a single invoice, debit memo, or
chargeback when the remaining amount due matches the receipt amount.

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Defining Application Rule Sets

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Defining Application Rule Sets
Application Rule Sets define how to apply partial payments to open invoice items and how
discounts affect open balances.
• Receivables provides the following standard application rules:
- Line First - Tax After
- Line First - Tax Prorate
- Prorate All
• You can also define your own application rules.
• Application Rule Sets can be defined for each transaction type, or at the system level.

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Setting Up Cross Currency Receipts

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Setting Up Cross Currency Receipts
If your organization needs to apply receipts to transactions in different currencies, set up
Receivables for cross currency receipts.
To set up cross-currency receipts:
• Define a cross currency rounding account – Receivables uses this account to record any
rounding error amounts created during a cross currency receipt application for currencies
that have a fixed rate relationship.
• Define a suspense account – General Ledger uses this account to balance the posting of
multi-currency journal entries that result from applying cross-currency receipts.
• Set the Journals: Display Inverse Rate profile option – Set this profile option to determine
how General Ledger displays conversion rates in the Exchange Rate window.

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System Options for Receipt Accounting

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System Options for Receipt Accounting
Receivables
(N) Setup > System > System Options > (T) Accounting
The Accounting tabbed region of the System Options window is used to specify accounting
flexfields for recording receipt activity. These include:
• Realized Gains Account: To record gains on foreign currency exchange rate fluctuations
between the time the transaction is entered and the time the receipt is applied.
• Realized Loss Account: To record losses on foreign currency exchange rate fluctuations
between the time the transaction is entered and the time the receipt is applied.
• Unallocated Revenue Account: To record unallocated revenue when you apply a cash
receipt with a balance other than zero to an invoice with a zero balance.
• Cross Currency Rounding Account: To record any rounding error amounts created during
a cross currency receipt application for currencies that have a fixed rate relationship.

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Miscellaneous System Options Relating to Receipts

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Miscellaneous System Options Relating to Receipts
Receivables
(N) Setup > System > System Options > (T) Miscellaneous
Discount Basis: Basis used when calculating discounts on invoices. Receivables uses this
value as the default Discount Basis in the Payment Terms window. Choose one of the
following discount methods:
• Invoice Amount: To calculate the discount amount based on the sum of the tax, freight
charges, and line amounts of your invoices.
• Lines Only: To calculate the discount amount based on only the line amounts of your
invoices.
• Lines, Freight Items and Tax: To calculate the discount amount based on the amount of
line items, freight, and tax of your invoices, but not freight and charges at the invoice
header level.
• Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount
amount based on the line items and their tax amounts, but not the freight items and their
tax lines, of your invoices.

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AutoCash Rule Set (optional): Used when entering a receipt for a customer whose profile
class has not been assigned an AutoCash Rule Set. The AutoCash Rule set and the Discount
Grace Days specified in a customer’s credit profile determine the sequence of AutoCash Rules
that Receivables uses when Post QuickCash is run to automatically apply receipts to this
customer’s open debit items.
Allow Unearned Discounts: Enable this option to allow unearned discounts. Unearned
discounts are discounts a customer takes after the discount period passes. You define discount
periods when defining your payment terms.
Discount on Partial Payment: Enable this option to allow discounts to be taken for partial
payments. If this option is enabled, you can still choose not to allow discounts on partial
payments at the transaction level when defining Payment Terms.
Require Billing Location: Enable this option to require that a bill-to location be associated

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with a cash receipt. If this option is enabled, the Post QuickCash program does not create
receipts that do not have billing locations. If you enable this option, you should also enable the
Require Billing Location option when defining your Lockboxes; otherwise, Receivables
displays an error when you submit AutoLockbox.
Invoices per Commit: Enter the number of invoices you want the Automatic Receipt program
to process before saving.
Receipts per Commit: Enter the number of receipts you want the Automatic Receipt program
to process before saving.
Suggestion: Set the Receipts per Commit option to a large number to avoid intermediate saves
in the program. You should use numbers that are large enough to handle your largest automatic
receipt batches. To help determine the numbers to use, look at the end of the log file for your
largest Automatic Receipt Creation Batch; this gives you the number of receipts marked for
this batch. Enter this number in the Receipts per Commit field. You should only reduce the
number if you run out of rollback segments.
Chargeback Due Date: The default due date to use when creating a chargeback:
• Current Date: The system date.
• Deposit Date: The receipt deposit date.
• Open Invoice Due Date: The due date of the invoice or debit memo.
• Receipt Date: The date that the receipt was entered.
Application Rule Set: Determines the default payment steps when you use the Applications
window or Post QuickCash to apply receipts. Receivables uses this rule set if none is assigned
to the debit item’s transaction type.
Note: If you are using Oracle Trade Management, then use the Claims tabbed region of the
System Options window to indicate how to evaluate, during Lockbox and Post QuickCash
processing, your customers’ remittances for claim creation. See: Claims System Options,
Oracle Receivables Implementation Guide for more information.

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Profile Options

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Profile Options
System Administrator
(N) Profile > System
• AR: Allow Overapplication in Lockbox: Controls how AutoLockbox handles receipts
when the payment amount is greater than the balance due on a transaction.
• AR: Always Default Transaction Balance for Applications: Determines the default
amount applied value that displays in the Applications window. The default value
includes discount amounts, where applicable.
- If you set the profile option to Yes, then the default amount applied is the remaining
transaction amount.
- If you set the profile option to No, or if a null value exists, then the defaulting rule
is:
1. If the unapplied receipt amount is greater than or equal to the transaction, then the
default amount applied is the remaining transaction amount.
2. If the unapplied receipt amount is less than the remaining transaction amount, then
the default amount applied is the unapplied receipt amount.

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3. If the unapplied receipt amount is negative, then the default amount applied is the
remaining transaction amount (to prevent the negative unapplied amount from
increasing).
• AR: Application GL Date Default: Determines how Receivables determines the default
GL date when you apply receipts.
• AR: Cash - Allow Actions: Determines whether you can create adjustments and
chargebacks when applying receipts in the Applications window.
• AR: Commit Between Validations in Lockbox: Determines whether the AutoLockbox
program will commit (save) after validating each record in a Lockbox transmission.
• AR: Create Bank Charges: Determines whether users can create bank charges when
entering receipts in Receivables.

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• AR: Include Receipts at Risk in Customer Balance: Controls whether Receivables
displays items at risk and includes them when calculating account balances in the
Account Details window.
• AR: Invoices with Unconfirmed Receipts: Select whether to adjust or credit invoices
selected for automatic receipt.
• AR: Receipt Batch Source: Enter the default receipt source for the Batch field in the
Receipts window and Receipt Batches window.

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Agenda

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Implementation Considerations for Receipts

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Implementation Considerations for Receipts
• Set up GL accounts before setting up bank accounts in Cash Management.
• Decide whether you want a different GL account for each status of cash or only one cash
account.
• Set up receipt information so that the setup data can default.
• Set the AR: Receipt Batch Source profile option so that users do not have to enter
payment information at the batch level.

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Other Implementation Considerations for Receipts

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Other Implementation Considerations for Receipts
• Define AutoCash Rule Sets for a customer when using AutoLockbox or QuickCash.
• You must define receivables activities for earned and unearned discounts.
• Define receivables activities before setting up bank accounts in Cash Management.
• If you select Tax Rate Code on Invoice as the GL Account Source when setting up
receivables activities, you must either assign tax accounts to all tax rate codes or make
sure the activity is selected only when the tax rate code on the invoice has tax accounts
assigned.
You assign tax accounts to tax rate codes in Oracle E-Business Tax. See: Setting Up Tax
Accounts, Oracle E-Business Tax User Guide for more information.

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Setting Up Lockboxes

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Setting Up Lockboxes
Considerations for setting up lockboxes include:
• Create Transmission Formats that accept customer reference and customer reason codes.
You must first work with your banks to accept customer reference and customer reason
codes in your lockbox.
• If you are using Oracle Trade Management, enable the Evaluate for Claim Eligibility
option to let lockbox automatically create claims for eligible remittance lines. Lockbox
looks at your Claims system options to determine which imported receipts are eligible for
claim creation.
• Use the Claims tabbed region of the System Options window to indicate claim handling
preferences.
• Attach a General Ledger account for claims on the receipt class or receipt methods setup.
• Perform Customer Reason Code Mapping in Oracle Trade Management.

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Function Security

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Summary

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Tax Processing
Chapter 11

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Tax Processing
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Tax Processing
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Tax Processing

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Tax Processing
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Objectives

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Tax Processing
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Agenda

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Oracle E-Business Tax Architecture Overview

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Oracle E-Business Tax Architecture Overview
Oracle E-Business Tax is a centralized tax engine that provides tax determination, tax
calculation, and tax repository services for Payables and Receivables transactions.
Oracle E-Business Tax consists of a tax knowledge base, a variety of tax services that respond
to specific tax events, a set of repositories (for tax content and tax recording) that allows
organizations to manage their local tax compliance needs in a proactive manner, and an
interface that allows integration with external tax content providers through a single integration
point.
E-Business Tax uses the information entered on the transaction line to calculate tax on
Receivables transactions and return the results to Receivables. E-Business Tax records all
transaction tax data for use in your tax reports.
Any errors in tax calculation originate from and are corrected in E-Business Tax. E-Business
Tax provides many tools for testing your tax configuration prior to using the configuration on
transactions.
Note: In the initial release of E-Business Tax the integration with external tax content
providers is limited to the calculation of US Sales and Use Tax on Receivables transactions.

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See: Oracle E-Business Tax Implementation Guide and Oracle E-Business Tax User Guide for
complete information about setting up and using Oracle E-Business Tax.

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Oracle E-Business Tax Key Concepts And Examples

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Oracle E-Business Tax Key Concepts and Examples
Tax Authority
A government entity that regulates tax law, and administers and/or audits one or more taxes.
Some examples of tax authorities are:
• Brazil - Secretaria da Fazenda Estadual (State Revenue Office)
• Brazil - Secretaria da Receita Federal (Federal Revenue Office)
• California, USA - California State Board of Equalization
• Canada - Canadian Customs and Revenue Agency
• France - Ministry of Economy, Finance and Industry
• Germany - Federal Ministry of Finance
• India - Central Board of Customs and Excise
• Singapore - Inland Revenue Authority of Singapore
• United Kingdom - HM Customs and Excise

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Tax Regime
A tax regime is the set of tax regulations that determine the treatment of one or more taxes
administered by a tax authority.
Some examples of tax regimes are:
• Brazil - RICMS - ICMS Regulation
• Brazil - RIPI - IPI Regulation
• California, USA - California Sales Tax
• Canada - Canadian Goods and Services Tax
• India - Excise Tax
• Singapore - Singapore Goods and Services Tax

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• United Kingdom - UK VAT

Tax
In Oracle E-Business Tax, a tax is a specific charge within a tax regime imposed by a
government through a fiscal or tax authority.
Some examples of taxes are:

Tax Regime Taxes


------------------------------------------------ ---------------------------------------------------
RICMS - Regulamento do ICMS ICMS, ICMS-ST (Tributary Substitution)
RIPI - Regulamento do IPI IPI
California Sales Tax State Sales Tax
California Sales Tax County Sales tax
Canadian Goods and Services Tax GST
Canadian Provincial Sales Tax PST
India Excise and Customs Excise Tax
Singapore Goods and Services Tax GST
UK VAT UK VAT

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Tax Jurisdiction
A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority.
Some examples of tax jurisdictions are:

Tax Geographic Zone Jurisdiction


-------------- ----------------------- --------------------------------
ICMS São Paulo São Paulo ICMS
IPI Brazil Brazil IPI
State Sales Tax California (State) California State Sales Tax
County Sales Tax San Francisco (County) County Sales Tax

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GST Canada Canada GST
PST Ontario Ontario PST
Excise Tax India India Excise Tax
GST Singapore Singapore GST
UK VAT UK UK VAT

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Tax Processing
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Calculating Tax on Transactions

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Calculating Tax on Transactions
This diagram is an overview of the tax process in E-Business Tax and Receivables. The tax
rate code and tax rules are defined within E-Business Tax for the applicable tax regime and tax.
The E-Business Tax tax rules engine uses the tax rate code assigned to the invoice transaction
line to calculate the tax, making use of the applicable tax rules.
After calculating the tax, Receivables displays the transaction with tax distributions. E-
Business Tax records all tax data for use in tax reporting.

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Calculating Tax Using the Tax Classification Code

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Calculating Tax Using the Tax Classification Code
This diagram is an overview of the tax process in E-Business Tax and Receivables using the
migrated data approach. E-Business Tax lets you calculate tax on transactions in a manner
similar to the Release 11i tax model.
Release 11i Receivables tax codes migrate to E-Business Tax as tax classification codes. Tax
classification codes are assigned to items, customers, sites, or revenue accounts. A particular
tax classification code defaults to a specific invoice transaction line according to the rules that
apply to the transaction. E-Business Tax either uses the migrated default assignment or a new
assignment that you create using application tax options in E-Business Tax.
The E-Business Tax tax rules engine uses the tax classification code assigned to the invoice
transaction line to calculate the tax, making use of the applicable Direct Tax Rate
Determination rule. After calculating the tax, Receivables displays the transaction with tax
distributions.
See: Using Application Tax Options and Using Direct Tax Rate Determination, Oracle E-
Business Tax User Guide for more information about calculating taxes using the tax
classification code.

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Global Tax Overview

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Global Tax Overview
You use E-Business Tax to set up and maintain these taxes:
• Value Added Tax (VAT) - Imposed on the value added to goods or services at each stage
of their supply.
• Goods and Services Tax (GST) - Sales tax levied on many consumer products and
professional services.
• Excise Duties.
• US Sales and Use Tax - Imposed on all state, city, and county sales transactions within
the US.
• Canada - Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Provincial
Sales Tax (PST) are sales taxes at the federal and/or provincial level.
• Japan - Consumption tax: VAT paid on an expense (input tax) that is recoverable against
the VAT charged on revenue (output tax).
• Norway - Investment tax: Applies to certain items that are purchased for use or
consumption by a VAT-registered entity.

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• Spain - Recargo de Equivalencia: A special VAT, levied on goods and services that
smaller customers pay on their purchase invoices in addition to standard VAT to simplify
their tax reporting.
With E-Business Tax, you can calculate and account for multiple tax regimes, levying
additional taxes such as Surcharges, Excise, and Sales Equalization taxes as required.

Receivables Latin Tax Engine


You use the Receivables Latin Tax Engine, rather than E-Business Tax, to set up and maintain
these country-specific taxes:
Argentina
• Value Added Tax (VAT)

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• Additional VAT
• VAT Not Categorized
• VAT Perceptions
• Provincial Turnover Perceptions
• Municipal Perceptions
• Excise
Brazil
• IPI
• ICMS
• ICMS Tributary Substitution
• ISS
• IRJ
Colombia
• Value Added Tax (VAT)
• Income Tax Self Withholding

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Tax Overview

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Tax Overview
E-Business Tax processes Oracle Order Management and Oracle Receivables Output Tax,
which is charged on the supply of taxable goods and services on customer invoices or revenue
items. You should report Output Tax whenever you account for sales.
E-Business Tax processes Oracle Payables and Oracle Purchasing Input Tax, which is paid on
supplier invoices.
• Input tax: What you pay your tax authority via supplier invoices.
• Output tax: What you receive from customers and then pay to your tax authority.
• Amount Due to the Tax Authority consists of Output Tax on customer invoices minus
any Recoverable Input Tax on supplier invoices.

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Value Added Tax Overview

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Value Added Tax Overview
Value Added Tax (VAT) is imposed on the supply of goods and services paid for by the
consumer, but collected at each stage of the production and distribution chain. The VAT
charged on a customer invoice is called Output Tax. Any VAT paid on a vender invoice is
called Input Tax. The amount due each period can be described as follows: Amount Due =
Output Tax – Input Tax.

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US Sales Tax Overview

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US Sales Tax Overview
In general, these are the steps in the US Sales tax cycle:
• The amount that the customer pays a supplier includes US Sales tax, if applicable.
• The supplier is responsible for remitting the sales tax to the tax authority.
• E-Business Tax derives the tax jurisdiction or jurisdictions that apply to a transaction line
based on the place of supply. The place of supply is the location where a transaction is
determined to have taken place. E-Business Tax either uses a default place of supply or
derives a place of supply based on tax rules. In some cases sales tax may not apply if the
product is not taxable in the relevant tax jurisdiction. In other cases, state, county, and
city taxes may all apply to the transaction.
• The state and local tax jurisdictions collect sales tax from suppliers.
See: Tax Determination Processing, Oracle E-Business Tax User Guide for more information
about the tax determination process.

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Tax Partner Process Overview

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Tax Partner Process Overview
E-Business Tax lets you use the tax services of external service providers for tax calculation of
US Sales and Use Tax on Receivables transactions. E-Business Tax provides transparent
integration between the external tax service provider and Oracle Receivables. Both E-Business
Tax and the external service provider execute and complete the tax services without any
interruption to the application business flow.
You set up a service subscription to an external tax service provider in E-Business Tax for a
combination of tax regime and tax configuration owner (legal entity or operating unit). At
transaction time, when a transaction belonging to this tax configuration owner and tax regime
applies:
• E-Business Tax passes tax and transaction information to the tax partner.
• The tax partner returns a tax rate and tax amount for each applicable invoice line.
• AutoAccounting generates account distribution tax lines based on the tax information
returned by the tax partner and E-Business Tax.
See: Setting Up Service Subscriptions, Oracle E-Business Tax User Guide for more
information about tax partner services.

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Agenda

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Setting Up Receivables for Tax Calculation

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Setting Up Receivables for Tax Calculation
You need to complete setup steps in both E-Business Tax and Receivables in order to manage
tax calculation on Receivables invoices. Most setup takes place in E-Business Tax.
E-Business Tax setup:
- Regime-to-rate flow
- First and third party tax profiles
- Configuration options
- Tax registrations
- Tax exemptions
- Profile options
- Service subscriptions
- Tax rules
Receivables setup:
- Transaction types
- AutoAccounting

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See: Setting Up Taxes in Oracle E-Business Tax, Oracle E-Business Tax User Guide for more
information about E-Business Tax setup steps.

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Defining Transaction Types and Tax Exemptions

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Defining Transaction Types and Tax Exemptions
Transaction Types
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Transaction Types
Order Management Super User, Vision Operations (USA)
(N) Setup > Transaction Types > Define
Check the Default Tax Classification check box in the Transaction Types window for a
transaction type, if you want to default a tax classification code to the transaction line for use
by E-Business Tax. You only do this if you intend to calculate taxes using tax classification
codes and the Direct Tax Rate Determination tax rule. If you intend to calculate taxes using the
standard E-Business Tax tax determination process, then do not check this check box.
Tax Exemptions
You set up tax exemptions in E-Business Tax for customers and customer sites that are exempt
from a particular tax, or from tax on a particular product or service. You set up tax exemptions
under the third party tax profile for the applicable customer or customer site. Tax exemptions
apply to a specific customer or to a combination of customer and specific product.

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See: Setting Up Tax Exemptions, Oracle E-Business Tax User Guide for more information
about setting up tax exemptions.

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Defining AutoAccounting for Tax

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Defining AutoAccounting for Tax
Receivables, Vision Operations (USA)
(N) Setup > Transactions > AutoAccounting
Use the AutoAccounting window to specify how Receivables determines the General Ledger
account for tax.
• Enter Tax in the Type field.
• Query all the segments of your Tax Account Flexfield. For each segment, assign the
value that you want to use to derive the account.
The default accounting that AutoAccounting creates is considered interim accounting only.
Subledger Accounting accepts the default accounts that AutoAccounting derives without
change. You can also modify the accounting rules in Subledger Accounting to create
accounting that meets your business requirements.

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Enabling Calculation of Tax on Freight

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Enabling Calculation of Tax on Freight
Receivables, Vision Operations (USA)
(N) Setup > Transactions > Transactions
You can assign freight charges to an invoice or to each invoice line. When you assign freight to
an invoice, Receivables includes the freight amount in the total amount of the invoice. To
assign freight to each invoice line, choose Freight from the Lines window after entering your
invoice lines.
By default, Receivables does not calculate tax on freight charges. However, you can calculate
sales tax on freight by using inventory items to define freight services and then entering these
items as ordinary invoice lines.
When you enter freight charges you also enter the freight GL Account. AutoAccounting
creates the default freight account.

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Tax Processing
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Defining E-Business Tax Profile Options for Receivables

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Defining E-Business Tax Profile Options for Receivables
System Administrator
(N) Profile > System
• eBTax: Allow Manual Tax Lines: Determines which users can enter manual tax lines on
the transaction for the tax setups that allow this update. If the tax configuration in E-
Business Tax has the related options enabled, then users can enter manual tax lines on the
transaction for the applicable tax.
• eBTax: Allow Ad Hoc Tax Changes: Determines which users can make ad hoc tax
changes on the transaction line, such as selecting a different tax status or tax rate. The
changes that a user can make also depend upon the details of the applicable tax setups. If
the tax rate associated with a tax has the Allow Ad Hoc Rate option enabled, then users
can override the calculated tax rate on the transaction line.
• eBTax: Allow Override of Customer Exemptions: Controls the display of the Tax
Handling field on the transaction line. You use the Tax Handling field to apply and
update customer tax exemptions on transactions. If you set the eBTax: Allow Override of
Customer Exemptions profile option to Yes, you must also complete the related setups in
E-Business Tax for tax exemptions.

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• eBTax: Allow Override of Tax Classification Code: Controls whether users can update
the tax classification code that is defaulted to the transaction line. You only set this
profile option if you intend to calculate taxes using tax classification codes and the Direct
Tax Rate Determination tax rule. E-Business Tax defaults the tax classification code to
the transaction line according to the defaulting hierarchy defined for the operating unit
and application.

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Defining E-Business Tax Profile Options for Order Management

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Defining E-Business Tax Profile Options for Order Management
System Administrator
(N) Profile > System
• eBTax: Invoice Freight as Revenue: Controls whether to consider freight amounts as
taxable line items. Set the eBTax: Invoice Freight as Revenue profile option to Yes, if
you are required to tax freight amounts. The freight amounts entered in the Order
Management Ship Confirm window are then passed to Receivables transactions as
taxable line items. If you set the eBTax: Invoice Freight as Revenue profile option to
Yes, you must also set the eBTax: Inventory Item for Freight profile option.
• eBTax: Inventory Item for Freight: Lets Order Management use an Inventory item
defined as Freight on Receivables transaction lines. You can use the freight Inventory
item to control the tax rate on taxable freight amounts. The values for this profile option
are:
- Freight Charge - The freight Inventory item applies to external Receivables
transactions.
- Freight for Intercompany - The freight Inventory item applies to internal
Receivables transactions only.

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Agenda

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Tax Processing
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Tax Accounting Overview

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Tax Accounting Overview
To set up for tax accounting, define:
• E-Business Tax: Tax accounting information for tax rate codes:
- Deferred tax
• Receivables: Accounting rules for Receivables Activities:
- Miscellaneous transactions
- Discounts
- Adjustments
- Late charges
You can also set up Receivables tax accounts in E-Business Tax for a given tax, tax rate, or tax
jurisdiction. You set up these accounts for a combination of primary ledger and operating unit.
You can set up these Receivables accounts:
• Finance Charge Tax Liability
• Non-Recoverable Tax Accounts
• Expense/Revenue Accounts

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Setting Up Tax Accounting for Deferred Tax

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Setting Up Tax Accounting for Deferred Tax
Deferred tax recovery is an accounting method that defers the liability of tax to the time that
the invoice is paid, rather than when the invoice is created.
You set up for deferred tax recovery in E-Business Tax:
• Set the Allow Tax Recovery option for the applicable tax regime.
• Select Deferred as the default recovery settlement for the applicable tax regime, tax, tax
status, and tax rate records.
• Set up an Interim Tax Account in the Tax Accounts page.

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Defining Receivables Activities

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Defining Receivables Activities
Receivables, Vision Operations (USA)
(N) Setup > Receipts > Receivable Activities
Define the GL Account and Tax Rate Code Sources.
• GL Activity Source Options:
- Activity GL Account
- Revenue on Invoice
- Tax Rate Code on Invoice
- Distribution Set
• Tax Rate Code Source Options:
- None: Allocates the entire tax amount according to the specified GL Account
Source. Select this option if you do not want to separately account for tax.
- Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by
the Receivables Activity.

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- Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code
on the invoice. You cannot choose this option if the activity Type is Miscellaneous
Cash or Late Charges.
Check the Recoverable or Non-Recoverable check box if the Tax Rate Code Source is Invoice.
Enter a Tax Rate Code if the tax rate code source is Activity.

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Updating the Tax Rate on Transactions

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Updating the Tax Rate on Transactions
In Receivables, you can update the tax rate code on the transaction line if the appropriate E-
Business Tax settings are enabled for the tax and tax rate. These settings are:
• eBTax: Allow Ad Hoc Tax Changes profile option is enabled.
• Allow Ad Hoc Rate option is enabled in the applicable tax rate record.
Receivables displays the new tax rate and amount. If you use AutoAccounting and you change
the tax rate code, you are prompted to rerun Review Accounting
See: Setting Up Tax Rates, Oracle E-Business Tax User Guide for more information about
setting up tax rate records.

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Tax Processing
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Adjusting Tax on Invoices

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Adjusting Tax on Invoices
Receivables, Vision Operations (USA)
(N) Transactions > Transactions Summary > (B) Adjust
Receivables activities for tax adjustments must be set up first.
• When you create a tax adjustment, Receivables automatically verifies that it is within
your adjustment approval limits.
- If within your assigned approval limit for the currency of that item, Receivables
updates your customer’s balance to reflect the adjustment.
- If outside your approval limits, Receivables creates a pending adjustment with a
status of Pending Approval, which will need to be approved by a higher level
employee with the proper approval limit.
• Any adjustments that have been applied to the tax lines of an invoice and cannot be
claimed from the state, should use a Receivables activity where tax is not posted to a
sales tax liability account (for example, bad debt write-offs of sales tax amounts).

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Tax Credit Memo

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Tax Credit Memos
There are two types of credit memos: On Account and Applied. E-Business Tax uses a
different tax calculation method for each type.
• On Account Credit Memos - E-Business Tax calculates tax on On Account credit memos
in a similar way to normal invoices. The only difference is that if the line amount is
negative, the tax calculated is also negative.
• Applied Credit Memos - E-Business Tax calculates tax on Applied credit memos in direct
proportion to the line amounts on the invoice to which the credit memo is applied. For
example, if you create an invoice with one line item of $100 and tax of $10, then if the
line item is credited $10 with an Applied credit memo the tax line is credited $1.
In Receivables, you can create applied credit memos at the header level or the line level.
• Header level - There are three options available for credit allocation:
- Line Only - Tax is not credited.
- Line and Tax - You enter the amount or percentage to be credited on the line
amount. The amount you enter is credited proportionately to each line in the
invoice. Each tax line is credited by the same percentage as the corresponding line
amount.

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- Tax Only - You enter the amount or percentage to be credited on the tax amount.
Each tax line is credited by the same percentage in proportion to the tax amount for
the line.
• Line level - You can credit individual lines. The tax line is credited in proportion to the
line amount credit.

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Summary

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Period Closing Process
Chapter 12

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Period Closing Process


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Period Closing Process

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Period Closing Process


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Objectives

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Overview of Accounting and Receivables

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Overview of Accounting and Receivables
You automatically create accounting entries for all Receivables accounting events using Oracle
Subledger Accounting (SLA).
Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entry
creation for E-Business Suite products. SLA creates journal entries for subledgers and transfers
them to Oracle General Ledger.
Receivables provides predefined rules that SLA uses to create journal entries for each
accounting event. You can also define your own accounting rules.
SLA allows multiple accounting representations for a single business event, resolving
differences between corporate and local fiscal accounting requirements. The most granular
level of journal entry detail is retained in the subledgers and summarized in General Ledger.
You can view all accounting lines produced by Receivables accounting events in the View
Accounting windows.

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Oracle Subledger Accounting

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Oracle Subledger Accounting
Oracle Subledger Accounting (SLA) is primarily a rule-based accounting engine that
centralizes accounting for Oracle E-Business Suite products as well as providing an accounting
toolset and repository. It is not a separate product in itself, but it is Oracle’s engine catering to
the accounting needs of both Oracle and external modules.
Together with ledger support, it enables support of multiple accounting requirements
concurrently in a single instance. Different accounting regulations can be satisfied by
maintaining and applying different sets of rules to different sets of transactions. SLA can also
provide accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, SLA allows powerful
reconciliation and auditing capabilities.
SLA provides the setup user interface (UI), inquiry UI, and data model for accounting across
Oracle E-Business Suite modules. This common UI provides consistency in reporting, analysis,
and user experience, in turn allowing it to replace various product-specific accounting setups
from earlier Oracle E-Business Suite releases.

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Oracle Subledger Accounting Integration

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Oracle Subledger Accounting Integration
Oracle Subledger Accounting integrates with the following E-Business Suite applications:
• Payables
• Receivables
• Projects
• Assets
• Costing
• OPM
• Public Sector/Federal
• Payroll
• Property Manager
• Loans

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• Lease Management
• Intercompany
• Cash Management
• Globalizations
For complete details regarding Subledger Accounting, see: Oracle Subledger Accounting
Implementation Guide.

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Subledger Accounting Key Concepts

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Subledger Accounting Key Concepts
The event model defined in SLA for each subledger represents the transaction or document
types and the lifecycle of each transaction:
• Event entity groups together related event classes
• Event class classifies transaction types
• Event type defines possible actions on each event class with possible accounting
significance
The journal creation rules are defined per event class and event type.
Transaction object and sources are the data model for each subledger that contains the
transaction attributes and information made available to be used during journal rule setup and
journal entry generation.

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Subledger Accounting Receivables Accounting Event Model

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Subledger Accounting Receivables Accounting Event Model
An event entity enables Oracle Subledger Accounting to handle the accounting for similar
business events in a consistent manner. The four predefined subledger accounting event entities
in Receivables are:
• Transactions
• Receipts
• Adjustments
• Bills Receivable
Each event entity is associated with one or more event classes. An event class represents a
category of business events for a particular transaction type or document.
Event classes group similar event types and enable the sharing of accounting definitions. An
event type represents a business operation that you can perform for an event class. An
accounting event has both an event class and an event type that affect how the Create
Accounting program determines the subledger accounting for it.
Event types provide the lowest level of detail for storing accounting definitions. For example,
the Receivables event class Miscellaneous Receipt is subject to three types of business

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operations that are represented by the event types Miscellaneous Receipt Created,
Miscellaneous Receipt Reverse, and Miscellaneous Receipt Updated.

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Subledger Accounting Setup and Process

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Subledger Accounting Setup and Process
You can define your own accounting rules in addition to the accounting rules seeded for
Receivables. The setup for subledger accounting is common to all subledger applications and
involves setting up journal entries, defining a subledger accounting method, and assigning the
subledger accounting method to the ledger.
See: Oracle Subledger Accounting Implementation Guide for complete information about
setting up for subledger accounting.

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Receivables Period Closing Process

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Receivables Period Closing Process
Create subledger accounting entries in Receivables using the subledger accounting engine.
After reconciliation and review, Receivables accounting information is transferred to General
Ledger. These entries are reviewed and then posted to General Ledger.

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Overview of Ordering to Period Closing

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Overview of Ordering to Period Closing
This is an example of the flow of sales orders to the General Ledger. Some orders may not
follow the complete cycle or may come from other applications.
In this example, the orders are shipped, inventory is decremented, the orders are invoiced,
Receivables subledger accounting entries are created, and the receipts are posted.
To finish the process and close the period, the Receivables subledger transactions are reviewed
and transferred to General Ledger via Subledger Accounting.

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Standard Reports

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Standard Reports
Receivables, Vision Operations (USA)
(N) Reports
Reports can be run as a concurrent process from the Submit Requests window.
Use these reports when needed to review activity at any time during the month.

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Reconciling Receivables

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Reconciling Receivables
Internal Reconciliation
Internal reconciliation reconciles the Receivables opening to closing balance:
(Opening Balance + Transactions) – (Payments) = Closing Balance

Reconciling Subledger Accounting Details


Reconcile the period operational activity with Receivables subledger accounting data before
posting to General Ledger. Use these reports to research transactions and receipts, and the
different accounts that they affect, for a given period.
• AR Reconciliation – Compares transactional data against accounting data. Use this report
during the internal reconciliation process to see if the balances on the various registers
match those on the journal reports. You can also see which items affect aging, and which
items affect GL account balances. This helps you to more easily reconcile your accounts
receivable activities, before you post to General Ledger.
• Potential Reconciling Items – Review suggested journal items that might potentially post
to incorrect GL account types.

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• Journal Entries – Review the details that make up the General Ledger journal entries.
• Aging - Review beginning and ending customer balances.
• Sales Journal by Account – Ensures that the Transaction Register matches the Sales
Journal.
• Transaction Register – Verifies that all items that can be posted are reflected on the Sales
Journal. The Sales Journal balance should match the total of the transactions here after
adding the credit memo total twice (because it is a negative on the Transaction Register
and a positive on the Sales Journal).
• Adjustments Register – Identifies any adjustments that affect the transactions for the
month.
• Unapplied Receipts Register – Determines customer balance after taking into account all

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on-account and unapplied amounts.
• Applied Receipts Register – Identifies receipts that reduce the outstanding opening
balance.
Reconciling Receipts
Use register and journal reports to reconcile receipts according to the receipt life cycle
(confirmed, remitted, cleared) from a cash perspective:
• Receipt Journal – View receipts that appear in the Journal Entries report.
• Receipt Register – Review a list of receipts for a specified date range.
• Other Receipt Applications – View details about receipt activity that do not impact
customer open receivables.
External Reconciliation
External reconciliation reconciles the Receivables trial balance (i.e., Aging Report) to the
Receivables control account (or accounts) in General Ledger.
After you internally reconcile Oracle Receivables data and post to General Ledger, complete
the external reconciliation process with the help of these reports:
• Subledger Accounting Program – View the subledger journal entries created for successful
events.
• Journal Entries – Review the details that make up the General Ledger journal entries.
• Journal Import Execution – Displays the total debits and credits for the journal created.
• Posting Execution – Displays the total debits and credits that are posted.
• Unposted Journal – Displays the total debits and credits that are not posted.
• AR to GL Reconciliation – Verifies that all Receivables journal entries were posted to the
correct General Ledger accounts.

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Running Revenue Recognition

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Running Revenue Recognition
Receivables, Vision Operations (USA)
(N) Control > Accounting > Revenue Recognition
The Revenue Recognition program will automatically run as a part of the General Ledger
transfer process. You can also run the Revenue Recognition program manually at any time.
The program generates the revenue distribution records for invoices and credit memos that use
invoicing and accounting rules. Accounting rules determine the number of periods and
percentage of total revenue to record in each accounting period. Invoicing rules determine
when to recognize the receivable for invoices that span more than one accounting period.
Distributions are created in the Receivables subledger and will pass to General Ledger during
the appropriate accounting period. This is an essential process in accrual-based accounting.

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Transferring to General Ledger

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Transferring to General Ledger
The Create Accounting program creates subledger accounting entries in Receivables and
transfers these entries to General Ledger. The program populates the GL Interface tables with
Receivables transaction data. The data can be transferred in detail or summary format.
For the transactions that are out of balance, use the Unposted Items report to identify all the
items that are not posted for the specified GL date range.
For the transactions in balance, use the Posting Execution report to verify that all journal
entries exported from Receivables match those posted to General Ledger.
Note: The subledger journal entries can also be directly posted to the General Ledger by
enabling the Post in General Ledger option in the Create Accounting Program.

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Running the Journal Import Program

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Running the Journal Import Program
The Create Accounting program can be submitted in either draft mode, if you want to review
the results before you create the final accounting, or final mode. During program submission, if
you create final accounting, then those entries are automatically transferred to the General
Ledger interface table, imported by the Journal Import program, and posted.
You can also choose not to post the entries automatically while submitting the Create
Accounting program. In this case, run the Journal Import Program manually in GL to transfer
accounting information from the GL Interface to the General Ledger.
The journal import program takes the information from the GL Interface table and populates
the GL_JE_BATCHES, GL_JE_HEADER and GL_JE_LINES tables. The journal entries that
were created by the import program must be posted to update the account balances.

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Mapping Receivables Transactions to General Ledger Categories

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Mapping Receivables Transactions to General Ledger Categories
If you experience reconciliation issues between transactions and categories, use the map in this
slide to check your setup information.

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Summary

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Appendix A: Bank
Reconciliation
Chapter 13

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Appendix A Bank Reconciliation

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Course Objectives

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Course Objectives

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Agenda

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Reconciliation Overview

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Reconciliation Overview
Enter detailed bank information manually or electronically.
Reconcile this information with your system transactions manually or automatically.
While reconciling, you can create miscellaneous transactions for bank-originated entries and
manually enter payments and receipts.
You can manually or automatically clear payments, receipts, open interface and miscellaneous
transactions before reconciliation to maintain current cash account balances.
After reconciliation, review the Bank Statement Detail, Bank Statement Summary, and Bank
Statement by Number Reports.
You can post the accounting entries to your General Ledger. You can reconcile your general
ledger cash account balance to your bank account balance in Cash Management by printing the
GL Reconciliation Report.

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Reconciliation Integration

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Reconciliation Integration
Oracle Cash Management shares functionality with Receivables, Payables, Payroll, Treasury,
General Ledger, and other external systems.

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Reconciliation: Oracle Receivables and Oracle Payables

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Reconciliation: Oracle Receivables and Oracle Payables
You can reconcile payments you created in Payables and receipts you entered in Receivables
against your bank statements.
When you reconcile Payables payments in Cash Management, the payments are first matched
to bank statement lines and then cleared. You can also manually clear the payments prior to
reconciliation. After clearing or reconciling your payments, you can create accounting entries
for the Cash, Cash Clearing, Bank Charges, Bank Errors, Realized Gain, and Realized Loss
accounts that you specified in the Oracle Payables Bank Accounts window and the Payment
Documents window. You then transfer the accounting entries to your general ledger.
When you reconcile receipts with Cash Management, accounting entries are automatically
created in the Cash, Remittance, Short-term Debts, and Interest Earned accounts, as applicable
to the reconciliation transaction. Cash Management uses the accounts you defined in the Banks
window and the Receivables Remittance Banks window (off the Receipt Classes window).
You post the accounting entries resulting from Cash Management receipt reconciliation to
General Ledger from Receivables.

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Functions with Receivables

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Functions with Receivables
Cash Management performs the following functions with Oracle Receivables:
• Clear and reconcile receipts: Receipts are made available to Cash Management to
reconcile with bank statement entries.
• Reverse receipts: Receipts that are returned NSF (non-sufficient funds) or Stop Payment
are reversed and Debit Memos can be created from Cash Management.
• Create Oracle Receivables receipts: Receipts that are missing from Receivables can be
entered using a link from Cash Management.
• Create miscellaneous transactions for bank-initiated transactions: Miscellaneous Receipts
can be created in Receivables using a link from Cash Management for both positive and
negative amounts.

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Oracle General Ledger and Payroll

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Reconciliation of Oracle Payroll EFT Payments

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Reconciliation of Oracle Payroll EFT Payments
Cash Management provides support for various payment formats like NACHA, BACS, and so
on for Payroll EFT Payments reconciliation. In order to use this feature, you first need to
define the transaction code that specifies the payroll payment format. When defining a
transaction code with a payment format, the Payroll Matching Order field will show the order
you need to define your BANK_TRX_NUMBER format in your bank statement-mapping
template. You will then need to either update or define a new bank statement-mapping
template to enter the Format for the BANK_TRX_NUMBER with the format that is needed to
identify the EFT payments.
Multiple identifiers might be needed to identify EFT payments. You will need to determine
what the identifiers are and enter the Format for the BANK_TRX_NUMBER with the formats
that are needed to identify the EFT payments. The format should be entered in the order
specified by the Payroll Matching Order assigned to the transaction code setup for Payroll EFT
payments. Once the setup is complete, you can load, import, and reconcile bank statements
containing Payroll EFT payments.

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AutoReconciliation Overview

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Load Bank Statements

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Load Bank Statements
Bank files can be loaded in the Bank Statement tables in two ways:
• To import bank statements automatically, use a SQL*Loader script against the bank file
to populate the Bank Statement Open Interface. Then import the bank statement
information using the Bank Statement Import Program.
• To enter a bank statement manually, enter the bank statement header information and the
transaction lines in the Bank Statement window.

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Agenda

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Setting Up Oracle Cash Management and Related Products

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Setting Up Oracle Cash Management and Related Products
Before you set up Cash Management, you should set up Oracle Application responsibilities and
users for the implementation.
Cash Management provides three responsibilities: Cash Management, Bank Reconciliation,
and Cash Forecasting.
• It uses data from Oracle General Ledger, Oracle Payables, Oracle Payroll, Oracle
Receivables, and Oracle Treasury for bank statement reconciliation.
• It uses information from Oracle General Ledger, Oracle Order Management, Oracle
Payables, Oracle Payroll, Oracle Purchasing, Oracle Projects, Oracle Sales, Oracle
Treasury, and Oracle Receivables for cash forecasting.
You must perform certain setup steps in these applications before you can use Cash
Management with them.

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Setting Up Oracle Cash Management System Parameters

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Setting Up Oracle Cash Management System Parameters
(N) Setup > System > System Parameters
Use the System Parameters window to configure your Cash Management system to meet your
business needs. System parameters determine, for example, the default options for manual
reconciliation windows and the control settings for the AutoReconciliation program.
Basic System Parameters
• Legal Entity: The name of the legal entity that the system parameters are applied to.
• Ledger: The name of the ledger for Cash Management accounting transactions. This
value defaults from the GL Ledger Name profile option. Cash Management supports
multiple ledgers. Each legal entity is tied to a ledger. If you use multiple legal entities,
then you must set up system parameters for each legal entity.
• Begin Date: Cash Management will not display transactions dated earlier than this date.
Reconciliation Controls
• Show Cleared Transactions: If you check this check box, cleared transactions remain
available for reconciliation. Otherwise, only uncleared transactions will appear for
reconciliation.

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• Allow Adding Lines to Imported Statements.
• Show Void Payments: You must check this check box if you want voided payments
available for reconciliation.
Signing Authority Approval
• Workflow Enabled
• Manually Controlled
Cash Management Transactions
• Accounting: Exchange Rate Type, Bank Statement Cashflow Rate Date, Bank Transfer
Rate Date
• Bank Account Transfers: Authorization

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Note: Set up bank reconciliation controls, such as matching order and float status, for each
bank account when you create or update a bank account.

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Setting Up Oracle Cash Management Bank Transaction Codes

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Setting Up Oracle Cash Management Bank Transaction Codes
If you want to load electronic bank statements or use Cash Management AutoReconciliation,
you must define, for each bank account, the transaction codes that each bank uses to identify
different types of transactions on its statements.
Because each bank might use a different set of transaction codes, you must define a bank
transaction code for each code that you expect to receive from each bank that you use.
Transaction types include: Payment, Receipt, Miscellaneous Payment, Miscellaneous Receipt,
Stopped, Rejected, NSF (non-sufficient funds), Sweep In, and Sweep Out.

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Agenda

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Bank Statement Open Interface

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Bank Statement Open Interface

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Bank Statement Open Interface

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Importing Bank Statements

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Bank Statement Validation

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Bank Statement Validation
Use the AutoReconciliation Execution Report or the View Reconciliation Errors window to
review any import validation errors.
• Use the concurrent request log file to review any errors or warnings related to Treasury.
• Use the Bank Statement Interface window to correct any import validation errors.

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Bank Statement Interface Errors

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Bank Statement Interface Errors
• Use the Bank Statement Interface window to review import validation errors from the
Bank Statement Open Interface tables.
• Review the AutoReconciliation Execution Report.
• Review all import and validation errors for a statement.

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Setup for Bank Statement Open Interface

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Setup for Bank Statement Open Interface
First, define a bank statement mapping rule, if necessary. Then run the custom loader program
against the bank statement file to populate the Bank Statement Open Interface tables. Verify
that the bank statement data was loaded into the open interface tables correctly.
You can use the Bank Statement Interface window to ensure that bank statement header
information is correctly inserted into the CE_STATEMENT_HEADERS_INT_ALL table.
You can use the Bank Statement Lines Interface window to ensure that bank statement
transaction lines are correctly inserted into the CE_STATEMENT_LINES_INTERFACE table.
The Bank Statement Interface and Bank Statement Lines Interface windows show you the
statement header and lines information in the open interface tables. You can correct the data
using these windows, or you can correct the original bank statement file and reload it using
your custom loader program.

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Entering Bank Statements Manually

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Entering Bank Statements Manually
Prerequisites:
• Define banks
• Define bank transaction codes for the bank account
• Set up Receivables activities and receipt methods for miscellaneous transactions
• Set up sequential document numbering for Cash Management

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Entering Bank Statement Information Manually

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Agenda

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Archiving and Purging

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Archiving and Purging
After you import a bank statement into Cash Management, you can purge its data from the
Bank Statement Open Interface tables. After you reconcile it, you can purge its data from the
Bank Statement tables. To save a copy of your bank statement, you can archive the data before
you purge it. You can also archive or purge intra-day bank statement data from the Bank
Statement Open Interface and the Intra-Day Bank Statement tables.
You can run the Archive/Purge Bank Statements program to archive and purge. You can run
this program in preview mode to review the bank records that can be purged and in purge mode
to execute the actual purge process. It is recommended that you run the program in preview
mode first to confirm that the records picked up by the program are the ones you actually want
to purge. When the program completes, it automatically prints the Archive/Purge Bank
Statements Report to display the number of headers and lines that were archived or purged.
When you purge a bank statement, you must also purge any system transactions reconciled to
it. You periodically archive and purge your bank statement interface and bank statement tables,
or the retained information will continue to occupy valuable disk space. If you use Cash
Management to reconcile journal entries in General Ledger, you should run the Cash
Management Purge program before you purge journals in General Ledger.

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To save your archived data to a file, use the ORACLE RDBMS Export utility. To restore data
from a saved archive file, first use the ORACLE RDBMS Import utility to populate the special
archive tables, then run a custom SQL* Loader script to transfer the data.

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Archiving and Purging Automatically

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Archiving and Purging Automatically
Archive tables to the bank statement or open interface tables
The Archive/Purge Bank Statements Report lists the number of bank statements (headers and
lines) that were archived or purged from Cash Management.
The Bank Purging Execution Report displays the Oracle Payables and Oracle Payroll banks,
bank branches, internal bank accounts, and employee bank accounts that are processed by the
Bank Purging program.
Archiving and Purging Automatically
If you set the Archive and Purge options in the System Parameters window, you can
automatically archive or purge bank statement data from the Bank Statement Open Interface
tables after bank statements have been imported into Cash Management. You can also
automatically archive or purge imported intra-day bank statement data from the Bank
Statement Open Interface tables. To archive or purge data from the Bank Statement or Intra-
Day Bank Statement tables, run the Archive/Purge Bank Statements program.

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Reconciling Bank Statements Automatically

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Reconciling Bank Statements Automatically
You can run these programs from the Submit Request, Reconcile Bank Statements, or Bank
Statement Interface windows. You can also import and automatically reconcile a bank
statement from the Bank Statement Loader program by selecting the Load, Import, and
AutoReconciliation option.
• AutoReconciliation: Used to reconcile any bank statement entered in Cash Management.
• Bank Statement Import: Used to import an electronic bank statement after loading the
bank statement file into the Bank Statement Open Interface tables.
• Bank Statement Import and AutoReconciliation: Used to import and reconcile a bank
statement in the same run.
AutoReconciliation Program
You can use the AutoReconciliation program to automatically reconcile any bank statement in
Cash Management.
After you run the program, you can review the AutoReconciliation Execution Report to
identify any reconciliation errors that need to be corrected. You can run this report
automatically or as needed, and also review reconciliation errors online.

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After automatically reconciling a bank statement and correcting any reconciliation errors, you
can run the Bank Statement Detail Report, which shows statement and transaction data for a
specific bank account statement, any unreconciled transactions separately with their current
status, and the statement totals for each transaction type. Or you can use the View Bank
Statements window to review reconciled and unreconciled statement lines. If lines remained
unreconciled, you can update the bank statement and rerun the AutoReconciliation program
and reconcile the statement lines manually.
Once you have reviewed your reconciliation results, you can transfer the accounting entries to
your general ledger from Payables and Receivables. If you use Oracle General Ledger, you can
reconcile your General Ledger cash account balance to your bank account balance by running
the GL Reconciliation Report.

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Reconciling Bank Statements Manually

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Reconciling Bank Statements Manually
When you use manual reconciliation, you can search for the following:
• Payroll or Payables payments, Receivables receipts, miscellaneous transactions, GL
journal entries, open interface transactions, and specific statement lines
• Treasury settlements by using the Reconciliation Open Interface
• Customer or supplier transactions, batch name, or remittance number, ranges for
transaction numbers, transaction date, transaction amount, and maturity date
• Journal entries on period name, journal entry name, document number, or line number
As you reconcile a statement manually, you may need to create transactions to account for
differences between the sum of the reconciled transaction and the line amount.

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Creating Miscellaneous Transactions

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Creating Miscellaneous Transactions
When you create a miscellaneous payment, it is actually recorded as a negative receipt. When
you reconcile that miscellaneous payment, or negative receipt, it is reconciled to a payment
bank statement line with a positive amount.
• Define receivables activities and receipt methods for miscellaneous transactions. When
you define a receivables activity with the type Miscellaneous Cash, you must also assign
either an account or a distribution set to use for the miscellaneous transaction accounting
entries.
• Perform any additional setup required by Receivables to handle miscellaneous receipts,
including defining receipt sources and distribution sets.
• Set up Sequential Numbering.

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Recording a Bank Transmission Error

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Recording Transactions from External Systems

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Recording Transactions from External Systems

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Reconciliation Open Interface

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Manually Clearing and Unclearing

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Manually Clearing and Unclearing

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Clearing and Reconciling Transactions in Oracle Payables

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Clearing and Reconciling Transactions in Oracle Payables
The Cleared Transactions Report shows transactions that were cleared or reconciled both
manually and automatically. The Cleared Transactions Report can be submitted for Payables
payments only, receipts only, payroll payments only, or all three.

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Clearing and Reconciling Transactions in Oracle Receivables

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Transferring Bank Reconciliation Transactions to Your General
Ledger

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Transferring Bank Reconciliation Transactions to Your General Ledger
When you reconcile bank statement lines to journal entries in General Ledger, no
reconciliation accounting entries are created. Transferring to General Ledger is only required
for entries created in Payables and Receivables. Cash Management does not provide
reconciliation accounting data to Payroll.
If you use General Ledger, you need to run the Journal Import program after transferring your
reconciliation accounting transactions from Payables or Receivables to create journal entries
based on the reconciliation transactions. Once you run Journal Import, you need to post your
journals in General Ledger.
Use the GL Reconciliation Report to reconcile the General Ledger cash account balance to the
bank statement closing balance and to identify any discrepancies in your cash position. The
General Ledger cash account should pertain to only one bank account. The summary report
lists the General Ledger cash account balance, an adjusted balance for the bank statement, a
separate adjustment amount for unreconciled receipts, payments, journal entries which have
been recorded in the General Ledger cash account, and bank errors. The detail report provides
details for the unreconciled items as well as the information contained in the Summary report.

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Recording Exceptions

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Recording Exceptions
If you implement the automatic bank transmission feature, use the Payment Exceptions Report
to view payment exceptions generated by the bank and transmitted to your local directory. You
can view the transmission history and the actual report in the Transmissions window. In the
Find Transmissions window, choose the file type of EXCEPTION to query exceptions reports.
Select the File Text field of the file you want to view and choose Edit Field from the Edit
menu. The Editor window displays the content of the file you selected.
To resolve the payment exceptions, you need to manually unreconcile the transactions in Cash
Management and void the payment in Payables.

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Handling Non-Sufficient Funds (NSF) Using AutoReconciliation

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Handling Non-Sufficient Funds (NSF) or Rejected Receipts
Manually

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Recording a Stopped Payment

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Appendix A: Bank Reconciliation


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Recording a Direct Debit from a Supplier

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Appendix A: Bank Reconciliation


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Entering Reversals

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Reconciling Corrections and Adjustments to Bank Errors

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Appendix A: Bank Reconciliation


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AutoReconciliation Matching

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AutoReconciliation Matching: Reversal Method

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Appendix A: Bank Reconciliation


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AutoReconciliation Matching: Adjustment Method

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Manual Reconciliation Matching

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Manual Reconciliation Matching
If you are reconciling bank statements manually, the Reconcile Bank Statements window
retrieves all available statement lines and transactions that match your selection criteria. Then
you can decide how you want to reconcile the correction entry.
If you have already reconciled the error statement line to a transaction, you must first
unreconcile the error statement line before attempting to reconcile it with the correction entry.
Sometimes a bank uses one correction entry to correct multiple error statement lines. You can
manually reconcile between multiple statement lines.

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Agenda

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Value Date Support

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Value Date Support
With value date support, you can:
• Calculate a more accurate short-term cash forecast based on value date.
• Track actual value dates and derive more accurate lead times.
• Calculate a more accurate interest on interest-bearing accounts.

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Value Date Support in Oracle Payables and Oracle Receivables

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Value Date Support in Oracle Payables and Oracle Receivables
Postpone reconciliation in the System Parameters window if the value date on the statement
line is greater than the current date. Enter the payment’s anticipated value date in Payables at
creation time. Update the actual value date for each payment during reconciliation.
Value Date Derivation in Applications is as follows:
• Oracle Payables: Anticipated Value Date, Actual Value Date
• Oracle Cash Management: Bank Statement, Miscellaneous Transactions, Manual
Clearing
• Oracle Receivables: Anticipated Value Date, Actual Value Date
In the Forecast process, selection hierarchy for future AR Receipts and AP Payments are:
AR Receipts:
• Value Date (actual then anticipated)
• Maturity Date
• Latest Transaction Date

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AP Payments:
• Value Date (actual then anticipated)
• Maturity Date
• Payment Date

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Agenda

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Appendix A: Bank Reconciliation


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Oracle Cash Management Reports

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Appendix A: Bank Reconciliation


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Archive/Purge Bank Statements Report

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Appendix A: Bank Reconciliation


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AutoReconciliation Execution Report

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Appendix A: Bank Reconciliation


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Bank Statement Detail Report

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Bank Statement Summary Report

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Appendix A: Bank Reconciliation


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Bank Statements by Document Number Report

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Appendix A: Bank Reconciliation


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GL Reconciliation Report

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Appendix A: Bank Reconciliation


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Cash in Transit Report

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Appendix A: Bank Reconciliation


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Cleared Transactions Report

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Transactions Available for Reconciliation Report

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Appendix A: Bank Reconciliation


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Batches Available for Reconciliation Report

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Appendix A: Bank Reconciliation


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Bank Transaction Codes Listing

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Appendix A: Bank Reconciliation


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Summary

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Summary

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R12 Oracle Receivables
Management Fundamentals
Supplemental Student
Practices
Chapter 14

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R12 Oracle Receivables Management Fundamentals
Supplemental Student Practices

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Objectives

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Setup

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Practice - Create a New Employee (Required)
Overview
In this practice you will enter yourself as a new employee.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Log into Oracle Applications

1. Log on to the Oracle Applications


− User = operations
− Password = welcome

2. (B) Connect
− Responsibility = Human Resources, Vision Enterprises

Enter a New Employee

3. Navigate to the Define Person window

• (N) People > Enter and Maintain

4. (B) New
− Last = Your last name
− First = Your first name
− Gender = Choose a gender

5. Action = Create Employment


− Person Type for Action = Employee
− Social Security = Enter a 9 digit number (xxx-xx-xxxx)
− Birthday = Enter a birthday (dd-mmm-yyyy)

Note: If you get a message indicating that the social security number is a duplicate accept it.
For the purposes of the exercise it doesn’t matter if it is a duplicate it or not.

6. (I) Save
− (B) Assignment
− Organization = Vision Operations

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7. (B) Correction
− Team = Financials

8. (B) OK

9. (T) Supervisor
− Name = Brown, Ms. Casey

10. (I) Save

11. (B) Yes to accept defaults

12. Close all windows and return to the Navigator

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Practice - Create a New User (Required)
Overview
In this practice you will create a new user.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Create a New User

1. (M) File > Switch Responsibilities


− Responsibility = System Administrator

2. (B) OK

3. Navigate to the Define Users window

• (N) Security > User > Define


− User Name = XXUSER (where XX is your terminal ID)
− Password = welcome (tab, re-enter password to verify)
− Person Name = Your employee name from the previous practice

4. (I) Save

5. Add the following responsibilities to your new username:

Responsibility Security Group


System Administrator Standard
Workflow Standard
General Ledger, Vision Operations (USA) Standard
Order Management Super User, Vision Operations (USA) Standard
Receivables, Vision Operations (USA) Standard
Cash Management, Vision Operations (USA) Standard
iReceivables Internal, Vision Operations (USA) Standard

6. (I) Save

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7. (M) File > Exit Oracle Applications

8. (B) OK

9. Make the Personal Home Page the active page

10. (L) Logout

Login as New User

11. Enter your Username and Password


− Username = XXUSER
− Password = welcome

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12. (B) Connect
− Old Password = welcome
− New Password = Oracle (Tab, re-enter to verify)

13. (B) Save


− Responsibility = Receivables, Vision Operations (USA)

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Managing Parties and Customer Accounts

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Practice - Create a Profile Class (Required)
Overview
In this practice you will create a customer profile class. Profile classes speed creation of new
customers by collecting default values that apply to similar classifications of customers (credit
terms and invoicing requirements, for example).

Use Customer Profiles to group customer accounts with similar credit worthiness, business
volume, and payment cycles. For each profile class you can define information such as credit
limits, payment terms, statement cycles, invoicing, and discount information. You can also

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define amount limits for your late charges, dunning, and statements for each currency in which
you do business.

To determine the number of profile classes you will need, start by identifying groups of similar
customers. For each group specify characteristics that describe the group (credit requirements,
payment terms, invoice and statement distributions etc). For each group, create a new class.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Create a Profile Class

1. Navigate to the Customer Profile Classes window:

• (N) Customers > Profile Classes


− Name = XXGOOD CREDIT
− Description = XXGood Credit Rating

2. (T) Profile Class

3. Verify the following information in the Balance Forward Billing region.


− Enable = Unchecked

4. Specify the following information in the Terms region.


− Payment Terms = 30 Net
− Override Terms = Checked
− Allow Discount = Unchecked

Note: You set up payment terms in (N) Setup > Transactions > Payment Terms. Here you
can specify the default payment terms, determine if you can override on the invoice,

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determine if discounts are allowed (and if so, how many grace days are allowed when
customers can pay late...but still take the discount) and grace days after the due date that are
allowed prior to beginning to calculate finance charges.

5. Specify the following information in the Collectors region


− Name = Jamie
− Periodic Review Cycle = Annually
− Analyst = Stock, Ms. Pat
− Tolerance = 5 (this is a percent)
− Credit Check = Checked

Note: You must set up collectors prior to assigning them. (N) Setup > Collections >
Collectors. If you don't use a collector set up one named "none".

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6. Specify the following information in the Invoicing region.
− Tax Printing = Total Tax Only
− Grouping Rule = DEFAULT

Note: Invoicing determines how to print tax on invoice. For example, Total Tax Only.
Grouping rules are used by AutoInvoice when importing invoices and determine how
shipped items are grouped to create line items on an invoice. The Grouping Rule is created
with a Line Ordering Rule. The bottom line is that we can determine HOW to group...then
in what ORDER to place the lines on the invoice we create during invoice import.

7. Specify the following information in the Statements and Dunning region


− Send Statement = Checked
− Send Credit Balance = Checked
− Send Dunning Letters = Checked
− Cycle = Monthly (25th day of every month)

Note: Statement Cycles are QuickCodes. Statement cycles are set up in advance. They are
defined using seeded intervals (Monthly, Quarterly, Weekly) or specified intervals (exact
day of each month for example).

Note: Checking the Send Dunning Letters check box enables Oracle Advanced Collections
to send dunning letters to customers with past due items.

8. Specify the following information in the Receipts region


− Match Receipts By = Transaction Number
− Auto Cash Rule Set = Standard
− Remainder Rule Set = Standard

Note: The Match Receipts By option is used during Lockbox receipt application.

Note: Auto Cash Rule sets determine the sequence of rules that the Post Quick Cash
program uses to apply cash receipts. For example, the one here will apply receipts in the
following order:
− Clear the account (if payment = account balance, then apply the receipt)
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− Clear past due invoices (if payment = total of past due items, apply the receipt)
− Match Payment with invoice (if remaining amount due for a single invoice matches
the receipt, apply the receipt)
− Apply to the oldest invoice first (use transaction due date to apply to oldest invoice,
partial receipts may or may not be allowed depending on system setup)

The AutoCash Rule set determines the definition of a balance (discounts, items in dispute,
late charges) and where to put any remaining amounts (unapplied cash receipts or on
account) and if partial receipt application is allowed. For example, the Standard Auto Cash
Rule Set records any excess cash to Unapplied.

9. In the Late Charge Profile tabbed region, leave the Enable Late Charges check box
unchecked.

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10. Save your work.

11. (T) Profile Class Amounts


− Currency = USD
− Credit Limit = 500000
− Order Credit Limit = 100000

12. Save your work. Do not update existing profiles.

13. Close all windows and return to the Navigator

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Practice - Create a Customer (Required)
Overview
Before creating a customer, use the Customer Search page to determine if the customer already
exists and minimize the possibility of creating a duplicate.

The Create Customer page displays differently, depending upon your customer type selection,
Organization or Person, on the Customer Search page.

In this practice, you will create an Organization customer.

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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.

• You have the Receivables, Vision Operations (USA) or Order Management Super User,
Vision Operations (USA) responsibility.

• Replace XX in the Practice with a unique identifier such as your initials or terminal
number. (For Instructor Led Training classes, this number will be assigned to you).
This is necessary in order to create unique records within the database when performing
the Practice.

Tasks
Create an Organization Customer

1. Navigate to the Customer Search page.

• (N) Customers > Customers > Customer Search

2. Search for the customer XXMegamart.

3. If the customer does not exist, click (B) Create Customer.

4. Enter the following data:

Enter the following customer information to create the new Organization customer:
Field Name Value
Organization Name XXMegamart
Alias Platinum

Enter the following account information to create the new Organization customer:
Field Name Value

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Account Description XX- XXMegamart Account1
Account Number XX-7556
Profile Class XXGOOD CREDIT
Account Type External

Note: The Account Number must be unique. You need not enter a customer account number
if the Automatic Customer Numbering System Option is enabled on the (T) Trans and
Customers of the System Options window.

Enter the following account site information to create the new Organization customer:
Field Name Value

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Country United States
Address Line 1 200 E Randolph Street
City Chicago
County Cook
State IL
Postal Code 60601
Operating Unit Vision Operations
Address Description Western United States
Business Purposes Bill To

5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click
(B) Apply to go to the Customer Overview page.

6. Click Apply on the Account Overview page (or on the Customer Overview page if you
clicked (B) Apply in Step 5) to save the customer and return to the Customer Search page.

7. Repeat these steps to create a second customer named XXGiant Distributors.

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Practice - Create a Customer Relationship (Required)
Overview
In this practice you will create a relationship between the customers XXMegamart and XXGiant
Distributors.

Define relationships between customers to control payment and commitment application. You
can create relationships between any two customers and indicate that the relationship is either
one-way or reciprocal. Relationships are also for sharing Bill To and Ship To addresses and
Pricing entitlements in Order Management.

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When you apply receipts to an invoice in a one-way relationship, the parent customer can apply
receipts to the related customer’s invoices but not the other way around. A reciprocal
relationship works both ways.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Create a Reciprocal Customer Relationship

1. Navigate to the Customer Search page.

• (N) Customers > Customers

2. Search and select the XX-XX- Megamart customer account.

3. Drill down to the Relationship subtab of the Account Overview page.

• (N) > Customers > Customers > Customer Search > Account Details

4. Click (B) Create Account Relationship.

5. Search and select the customer account XXGiant Distributors from the Related Account list
of values.

6. Select the Vision Operations operating unit.

7. Select the Reciprocal relationship type.

8. Click (B) Apply on the Create Account Relationship.

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9. Click:

• (B) Save on the Relationship subtab of the Account Overview page to add further
account details.

• (B) Apply to return to the Customer Search page.

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Practice - Submit Customer Related Reports (Optional)
Overview
In this practice you will submit and view various customer related reports.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Submit the Customer Listing - Detail Report

1. Navigate to the Standard Request Submission window

• (N) Reports > Listing

2. (B) OK to submit a single request


− Name = Customer Listing - Detail
− Order by = Customer Name
− Customer Name Low = XXGiant Distributors
− Customer Name High = XXMegamart

3. (B) OK

4. (B) Submit

5. Do not submit another request

Review Report Output

6. (M) View > Request

7. (B) Find

8. (B) Refresh until the request completes

9. (B) View Output

Submit the Customer Relationships Listing Report

10. (B) Submit a New Request

11. (B) OK to submit a single request

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− Name = Customer Relationships Listing

12. (B) Ok

13. (B) Submit

14. Do not submit another request

Review Report Output

15. (M) View > Request

16. (B) Find

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17. (B) Refresh until the request completes

18. (B) View Output

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Process Invoices

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Guided Demonstration - Open Receivables Periods (Required)
Overview
In this demo, the instructor will open the appropriate receivables periods.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Open Receivables Periods

1. Navigate to the Open/Close Accounting Periods window

• (N) Control > Accounting > Open/Close periods

2. Make sure that the current period is open and at least the next two are future enterable.

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Guided Demonstration - Review a Transaction Source (Required)
Overview
In this demo, the instructor will discuss what transaction sources are used for and where they are
defined.

Assumptions
• Replace XX with your terminal number or initials.

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• 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.

Tasks
Review a Transaction Source

1. Navigate to the Transaction Sources window

• (N) Setup > Transactions > Sources

2. Enter Query Mode


− Operating Unit = Vision Operations
− Name = Manual

3. Execute the Query

4. Note that automatic transaction numbering and automatic batch numbering are turned on.

5. Note the default standard transaction type.

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Guided Demonstration - Review a Transaction Type (Required)
Overview
In this demo, the instructor will discuss what transaction types are used for and where they are
defined.

Assumptions
• Replace XX with your terminal number or initials.

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• 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.

Tasks
Review a Transaction Type

1. Navigate to the Transaction Types window

• (N) Setup > Transactions > Transaction Types

2. Enter Query Mode


− Operating Unit = Vision Operations
− Name = Invoice

3. Execute the Query

Note: Transaction types let you determine things like ability to update receivables balances
(pro-forma invoices), post to GL, allow freight, determine (depending on autoaccounting
setup) accounting

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Guided Demonstration - Review AutoAccounting Setup
(Required)
Overview
In this demo, the instructor will discuss the AutoAccounting setup that determines how GL
Accounts are created in Receivables.

Assumptions
• Replace XX with your terminal number or initials.

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• 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.

Tasks
Review AutoAccounting Setup

1. Navigate to the AutoAccounting window

• (N) Setup > Transactions > AutoAccounting

2. Query the Revenue and Receivables Account AutoAccounting Setups

Note that AutoAccounting determines how the GL Accounts will be created for Receivables
Transactions. These accounts will later be transferred to the GL during the transfer to the
GL process.

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Practice - Enter a Manual Invoice (Required)
Overview
In this practice you will enter a manual invoice using various methods of entering items.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Enter a Transaction (Invoice) Header

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Invoice
− Type = Invoice
− Reference = XXConsulting Services
− Ship-To Name = XXMegamart

Note: When you tab out of the Ship To field, the Bill To address fills in automatically.
That’s because we linked the Bill To to the Ship To when we defined the customer!

2. (T) More

3. Note that defaults like print option and status default from the transaction type.

4. Save

Enter Line Items

5. (B) Line Items

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6. Enter Lines according to the following table:

Num Item Description UOM Quantity Unit


Price
1 Senior Consultant (LOV) Day 5 350
2 Network Tech. (free form) Day 10 150
3 AS54888 Sentinal Standard Desktop Each 3 1400

Note: Use the following methods to enter Line items:


− Free-form entry

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− List of values to choose a system item
− Standard Memo Lines

7. Save

8. Close the Lines window

9. (B) Complete

10. Record your Transaction Number: ________________

11. Close all windows and return to the Navigator

Note: An invoice may only be completed if the period status is set to Open or Future.

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Practice - Enter an Invoice with Standard Memo Lines (Required)
Overview
Your company charges new customers a one-time, start-up fee of $200 plus $1,200 in advance
for one year of technical support. These two services are entered using the transaction type of
Invoice - Service.

In this practice you will create standard memo lines and then use them to enter the technical
support contract and the start-up fee.

Assumptions

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• Replace XX with your terminal number or initials.

• 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.

Tasks
Create Standard Memo Lines

1. Navigate to the Memo Lines window

• (N) Setup > Transactions > Memo Lines


− Operating Unit = Vision Operations
− Name = XXStart-up Fee
− Description = XXStart-up Fee
− Type = Line
− Unit List Price = 200
− Unit of Measure = Each

2. (M) File > Save and Proceed


− Operating Unit = Vision Operations
− Name = XX-1 Year Support Agreement
− Description = XX-1 Year Support Agreement
− Type = Line
− Unit List Price = 1200
− Unit of Measure = Year

3. Save

4. Close all windows and return to the Navigator

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Enter a Transaction using Standard Memo Lines

5. Navigate to the Transactions window

• (N) Transactions > Transactions


− Source = Manual
− Class = Invoice
− Type = Invoice-Service
− Reference = XXStartup Fees
− Ship-To Name = XXGiant Distributors
− Tab out of the Ship To Name field

6. If necessary, use the Ship To fields to choose additional required information.

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7. Specify the following information:
− Salesperson = Abbott, Ms. Rachel
− Terms = 30 Net

8. Save

9. (B) Line Items

10. Enter Lines according to the following table. USE THE LIST OF VALUES on the
description field to choose your memo lines!

Num Description UOM Quantity Unit Price


1 XXStart-up Fee (LOV) Each 1 200
2 XX-1 Year Support Agreement (LOV) Year 1 1200

11. Save

12. Close the Lines window

13. (B) Complete

14. Record your Transaction Number: ____________________

15. Close all windows and return to the Navigator

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Practice - Copy Invoices (Required)
Overview
The customer who contracted for one year of service following a one-time start-up fee has
entered into a one-year software license agreement with a total cost of $120,000 for the year.
The customer has requested invoicing on a monthly basis during the life of the agreement.

In this practice, you will enter a manual invoice and then use the invoice as a template for
creating invoice copies.

Assumptions

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• Replace XX with your terminal number or initials.

• 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.

Tasks
Enter an Invoice to be used as a Template

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Invoice
− Type = Invoice
− Reference = XXSoftware License
− Name = XXGiant Distributors

2. Use the list of values to specify any ship-to and bill-to information that did not default.
− Salesperson = Abbott, Ms. Rachel

3. Save

4. (B) Line Items

5. (T) Main
− Description = Software License
− UOM = Month
− Quantity = 1
− Unit Price = 10000

6. Save

7. Close the Lines window


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8. (B) Complete

9. Record your transaction number___________________________

Copy your COMPLETED Transaction

10. Navigate to the Copy Transactions window

• (M) Actions > Copy To


− Rule = Monthly
− Number of Times = 11

11. Save

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12. Record transaction numbers

Number Transaction Number


1 The original
2
3
4
5
6
7
8
9
10
11
12

Note: After the invoices are saved, the Recurring Invoice process creates the invoices.

Review Report Output

13. (M) View > Request

14. (B) Find

15. (B) Refresh until the request completes

16. (B) View Output

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17. Note that the process may have completed with a Warning to indicate that any invoices
created in a closed period will not be completed and must be completed after the period is
opened using the following steps.

18. Navigate to the Transactions Summary form

• (N) Transactions > Transaction Summary

19. (M) View > Find


− Reference Numbers = XXSoftware License (Hint: Use the LOV)

20. Scroll right to see the Complete column

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21. Place your cursor on the invoice you would like to complete.

22. (B) Complete

23. Continue this process until all invoices are completed.

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Practice - Enter an Invoice with a Bill in Arrears Invoicing Rule
(Required)
Overview
The customer who used the services of a network technician in a prior practice has decided to
proceed with a project that requires one year of consulting service from a network technician.
The customer will not be invoiced until the project has been completed but revenue must be
recognized monthly as the consulting service is provided. The total amount to be invoiced to the
customer when the project is completed will be $150,000.

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In this practice you will define an accounting rule and then enter a manual invoice using the
accounting rule and a bill in arrears invoicing rule.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Define an Accounting Rule

1. Navigate to the Accounting Rules window:

• (N) Setup > Transactions > Accounting Rules


− Name = XXAnnual - Monthly
− Type = Accounting, Fixed Duration
− Period = Month
− Number of Periods = 12

2. Place cursor in the Percent field

3. Save

Enter an Invoice with Rules

4. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Invoice
− Type = Invoice
− Reference = XXArrears

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− Ship To = XXMegamart

5. (T) Main
− Invoicing Rule = In Arrears

Note: Be careful. You must assign the invoicing rule PRIOR to saving the invoice header
or navigating to the line items region!

6. Save

7. (B) Line Items


− Description = Project Network Tech.
− UOM = Year

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− Quantity = 1
− Unit Price = 150000

8. (T) Rules
− Accounting = XXAnnual - Monthly

9. Save

10. Close the Lines window

Check the Unbilled Receivables Account

11. (B) Distributions

12. View Accounting Distributions

Note: These distributions are created using AutoAccounting rules.

13. Close the Distribution and Lines windows

14. (B) Complete

15. Record your transaction number: ___________________

Note: Even though the invoice is complete, Tools > View Accounting doesn't show any
accounting. That's because the Revenue Recognition program needs to be run first.

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Guided Demonstration - Run Revenue Recognition (Required)
Overview
Revenue Recognition can be run manually as will be demoed here or it will run automatically
when accounting is transferred to the Oracle General Ledger from Receivables.

In this demonstration, the instructor will run the revenue recognition program. This program
generates the appropriate GL Accounts and amounts to be passed to the GL over the life of the
invoice with rules entered in the previous practice.

Assumptions

Oracle University and Emak Academy use only


• Replace XX with your terminal number or initials.

• 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.

Tasks
Submit the Revenue Recognition Request

1. Navigate to the Standard Request Submission window

• (N) Control > Accounting > Revenue Recognition

2. (B) OK to submit a single request


− Name = Revenue Recognition

3. (B) OK to accept defaults

4. (B) Submit

5. Do not submit another request

Review the Request Output

6. (M) View > Requests

7. (B) Find

8. (B) Refresh Data until the request completes

9. (B) View Output

View Accounting for the Transaction

10. Navigate to the Transactions window

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• (N) Transactions > Transactions

11. Query the transaction from the previous lab (hint: Reference = XXArrears)

12. (M) Tools > View Accounting

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Correct Transactions

Oracle University and Emak Academy use only

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Practice - Enter a Debit Memo for Missed Freight (Required)
Overview
In this practice, you will enter a debit memo to bill XXMegamart for freight charges from a
previous invoice. Note that an alternate way of handling this would be to do an invoice
adjustment for freight (Transactions Summary window).

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Enter a Debit Memo for Missed Freight

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Debit Memo
− Type = Debit Memo
− Reference = XXFreight Correction
− Ship To = XXMegamart
− Bill To = XXMegamart

2. Save

3. (B) Freight
− Carrier = DHL
− Ship Date = Today’s Date
− Amount = 100

4. Save

5. Close the Freight and Lines windows

6. (B) Complete

7. Record the transaction number: ___________________

Note: Invoices and debit memos cannot be linked. Use the More tab to choose a value in
the Cross Reference field or add a note in special instructions. The Cross Reference value
does not appear on the invoice, but any special instructions will.

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Note: If you want to use different numbering sequences for debit memos and credit memos,
set up different transaction sources.

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Practice - Update an Invoice (Required)
Overview
In this practice, you will update an invoice that has not been transferred to the GL and has no
account activity against it. To update an invoice you must incomplete it, make the necessary
changes, and then recomplete it.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Update an Unposted Invoice

1. Navigate to the Transactions Window

• (N) Transactions > Transaction Summary

2. (M) View > Find


− Reference Numbers = XXSoftware License

3. (B) Find

4. Select the seventh invoice (Hint: Place the cursor in the Number field for the seventh
invoice).

5. Scroll across to view the Complete column. If necessary, incomplete the invoice by clicking
the Incomplete button.

6. (B) Open

7. (B) Line Items


− Unit Price = 12000

8. Save

9. Close the Lines window

10. (B) Complete. Note that if the period does not have a status of Open or Future, you will be
warned and will not be able to complete the invoice.

11. Close all windows and return to the Navigator

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Practice - Create a Write-Off Adjustment (Required)
Overview
In this practice you will enter approval limits, create an adjustment, and log in as a different user
to approve the adjustment. The adjustment is to write off the debit memo for freight from a
previous practice that was an error.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Enter Approval Limits

1. Navigate to the Approval Limits window

• (N) Setup > Transactions > Approval Limits


− Username = XXUSER
− Document Type = Adjustment
− Currency = USD
− From Amount = -25
− To Amount = 25

2. Save

Note: the AR Credit Memo Approval Request workflow process uses the Credit Memo
document type. The Primary flag is set to indicate the user is the primary approver for a
currency and a currency range.

Create the Write-Off Adjustment


- Navigate to the Transactions Summary window:
• (N) Transactions > Transactions Summary

3. (M) View > Find


− Reference Numbers = XXFreight Correction

4. (B) Find

5. (B) Adjust
− Activity Name = Write-Off
− Amount = -100
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6. Save

7. Note the amount is outside of your approval limit. Pending Adjustments = -100

Note: Invoice type adjustments must make the balance 0. Also, approval amounts are
validated on a line-by-line basis!

Log in as a Different User and Approve the Pending Adjustment

8. (M) File > Exit Oracle Applications

9. (B) OK

Oracle University and Emak Academy use only


10. Make the Personal Home Page the active page

11. (I) Exit

12. Login as a New User


− User Name = operations
− Password = welcome
- (B) Connect
− Responsibility = Receivables, Vision Operations (USA)

13. Navigate to the Approve Adjustments window

• (N) Control > Adjustments > Approve Adjustments


− Creator = XXUSER
− Status = Pending

14. (B) Find


− Status = Approved

15. Save

16. (B) Action History

17. Note the Action History

18. Close windows until you are back at the Navigator

19. Follow the steps above to Exit Oracle Applications and sign back on using your XXUSER
username.

Run the Adjustment Approval Report

20. Navigate to the Standard Request Submission window

• (N) Reports > Accounting

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21. (B) OK to submit a single request
− Name = Adjustment Approval Report
− Order By = Customer

22. (B) OK to accept defaults

23. (B) Submit

24. Do not submit another request

25. Review the Request Output

• (M) View > Requests

Oracle University and Emak Academy use only


26. (B) Find

27. (B) Refresh Data until the request completes

28. (B) View Output

Note: You can view the adjusted amount and the accounting associated with your debit
memo by querying the transaction in the Transaction Summary window, selecting the Adjust
button and using (M) Tools > View Accounting. Also, notice that the adjustment has moved
from the Pending Adjustments to the Adjustments bucket.

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Practice - Issue a Credit Memo Against a Specific Invoice
(Required)
Overview
In this practice you will enter a credit memo against the invoice created for Network Technician
services during the 3rd month.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Issue a Credit Memo against a Specific Invoice

1. Navigate to the Credit Memo window:

• (N) Transactions > Credit Transactions


− Number = The 3rd invoice number associated with XXSoftware License (Hint: Look
at the table you recorded your invoice numbers in!)

2. (B) Find
− Reason = Service
− Type = Credit Memo

3. (B) Credit Balance

4. (B) OK to acknowledge the message that we are crediting the entire balance of the invoice

Note: The Credit Balance button is for creating a credit memo for the entire outstanding
balance of the invoice. You can also use this window for crediting a certain amount or
percent of the invoice or you could credit a specific invoice line in the credit lines window.

5. Save

6. (B) Complete

7. (B) Credit Lines

Note: The credit lines window can be used to credit specific invoice lines and to view
accounting information created by the credit. Note that sales credits would be appropriately
reversed if there were one or more salespersons associated with this invoice.

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8. Close the Credit Lines window

9. Record your Credit Memo number: ________________

10. Save

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Practice - Create an On-Account Credit (Required)
Overview
In this practice you will create an on-account credit for $500.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

Oracle University and Emak Academy use only


or test instance at your site on which to complete this practice.

Tasks
Create an On-Account Credit

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Credit Memo
− Type = On-Account Credit
− Reference = XXOn Account

2. Fill in additional ship-to and bill-to information as necessary.


− Salesperson = Abbott, Ms. Rachel

3. Save

4. (B) Line Items

Num Description UOM Quantity Unit Price


1 Marketing Rebate N/A 1 -500

5. Save

6. (B) Distributions

7. Review the GL Account field.

8. Close the Accounting and Lines windows

9. (B) Complete

10. Record your On-Account Credit Memo number: ______________

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11. Close all windows and return to the Navigator

Oracle University and Emak Academy use only

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Practice - Apply an On-Account Credit to an Invoice (Required)
Overview
In this practice you will apply $200 of the on-account credit that you created in the previous
practice to an invoice.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Apply the On-Account Credit to an Invoice

1. Navigate to the Transactions Summary window:

• (N) Transactions > Transactions Summary

2. View > Find


− Reference = XXOn Account

4. (B) Find
− Select the on-account credit memo from the prior exercise

5. (B) Applications
− Apply To = Any invoice from the LOV
− Amount Applied = 200

6. Note that the balance due has decreased by the amount of the on-account credit

7. Save

8. Close all windows and return to the Navigator

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Process Commitments

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Guided Demonstration - Update the Deposit Transaction Type
(Required)
Overview
In this demonstration, the instructor will update the Allocation Basis of the deposit transaction
type to Lines, Tax and Freight. This will allow an invoice to be fully applied against a deposit
rather than excluding Tax and Freight from that application.

Assumptions

Oracle University and Emak Academy use only


• Replace XX with your terminal number or initials.

• 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.

Tasks
Update the Deposit Transaction Type to Include Tax and Freight

1. Navigate to the Transaction Types window

• (N) Setup > Transactions > Transaction Types

2. Enter Query Mode


− Operating Unit = Vision Operations
− Name = Deposit

3. Execute the Query

4. (T) Deposit
− Allocation Basis = Lines, Tax and Freight

5. Save

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Practice - Enter a Deposit (Required)
Overview
In this practice you will enter a deposit for up to ten days of services of a senior consultant at a
rate of $1,750 per day.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Enter a Deposit

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Deposit
− Type = Deposit
− Reference = XXDeposit

2. (T) Main
− Ship To = XXMegamart
− Bill To = XXMegamart

3. (T) Commitment
− Amount = 17500
− Description = Consulting

4. (B) Distributions
− Revenue GL Account = 01-000-2555-0000-000
− Close the Distributions window

5. Save

6. (B) Complete

7. Record the transaction number for your Deposit: _________________

8. Close all windows and return to the Navigator

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Practice - Apply Invoices Against the Deposit (Required)
Overview
In this practice you will enter an invoice for a senior consultant who has spent three days
working for the customer that committed to a deposit in the previous practice. You will apply
this invoice against the deposit from the previous practice and then check the remaining balance
on the deposit.

Assumptions

Oracle University and Emak Academy use only


• Replace XX with your terminal number or initials.

• 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.

Tasks
Apply Invoices Against the Deposit

1. Navigate to the Transactions window:

• (N) Transactions > Transactions


− Source = Manual
− Class = Invoice
− Type = Invoice
− Reference = XXDeposit Application
− Ship To = XXMegamart
− Bill To = XXMegamart
− Commitment = Choose from list of values…there’s only one!

2. (B) Line Items

Num Description UOM Quantity Unit Price


1 Senior Consultant (LOV) Day 3 1750

3. Save

4. Close the Lines window

5. Record your invoice number______________________

6. (B) Complete

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7. (B) Balances

Note: Commitments are handled like adjustments. You will see that the balance of the
invoice has been reduced to reflect that it has been applied to the Deposit commitment.

8. Close all windows and return to the Navigator

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Print Invoices, Statements, and Reports

Oracle University and Emak Academy use only

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Practice - Print Selected Invoices (Optional)
Overview
In this practice you will print some of the invoices entered in previous practices.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

Oracle University and Emak Academy use only


or test instance at your site on which to complete this practice.

Tasks
Print Invoices

1. Navigate to the Print Invoices window:

• (N) Print Documents > Invoices

2. (B) OK to submit a single request


− Name = Invoice Print Selected Invoices
− Customer = XXMegamart

3. (B) OK

4. (B) Submit

5. Do not submit another request

6. (M) View > Requests

7. (B) Find

8. When the request is complete, view the output.

9. Close all windows and return to the Navigator

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Practice - Print Statements (Optional)
Overview
In this practice you will print a statement for your XXMegamart customer.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

Oracle University and Emak Academy use only


or test instance at your site on which to complete this practice.

Tasks
Print Statements

1. Navigate to the Standard Request Submission window:

• (N) Print Documents > Statements


− Option = Print Statements
− Bucket = Statement
− Customer Name = XXMegamart
− Cycle = Monthly
− Date = The 25th of the current month
− Standard Message Name = Standard

2. (B) Submit

3. (M) View > Requests

4. (B) Find

5. When the request is complete, view the output.

6. Close all windows and return to the Navigator

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Practice - Print Invoice Related Reports (Optional)
Overview
In this practice you will print various invoice related reports.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

Oracle University and Emak Academy use only


or test instance at your site on which to complete this practice.

Tasks
Print the Transaction Register

1. Navigate to the Standard Request Submission window:

• (N) Reports > Accounting

2. (B) OK to submit a single request


− Name = Transaction Register
− Transaction Date Low = First day of current month
− Transaction Date High = Last day of current month

3. (B) OK

4. (B) Submit

5. Do not submit another request

6. (M) View > Requests

7. (B) Find

8. When the request is complete, view the output.

9. Close all windows and return to the Navigator

Print the Billing History Report

10. (B) Submit a New Request

11. (B) OK to submit a single request


− Name = Billing History
− Customer Name Low = XXGiant Distributors

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− Customer Name High = XXMegamart
− Transaction Date High = Last day of current month

12. (B) OK

13. (B) Submit

14. Do not submit another request

15. (M) View > Requests

16. (B) Find

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17. When the request is complete, view the output.

18. Close all windows and return to the Navigator

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Process Invoices Using AutoInvoice

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Guided Guided Demonstration - Create a Sales Order and
Generate an Invoice (Required)
Overview
In this demo your instructor will enter, pick and ship a sales order in Order Management, and run
AutoInvoice to create an invoice in Receivables.

Assumptions
• Replace XX with your terminal number or initials.

Oracle University and Emak Academy use only


• 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.

Tasks
Grant a Shipping Role to your User

1. Change responsibilities to Order Management Super User, Vision Operations (USA)

• (M) File > Switch Responsibility


− Responsibility = Order Management Super User, Vision Operations (USA)

2. Navigate to the Grants window

• (N) Setup > Shipping >Grants and Role Definitions > Grants
− User = Your user name
− Roll = Upgrade Role

3. Save

4. Close all windows and return to the Navigator

Enter a Sales Order

5. Navigate to the Sales Orders window

• (N) Orders, Returns > Sales Orders


− Customer = XXMegamart
− Order Type = Mixed

6. Save

7. (T) Line Items


− Ordered Item = CM13139
− Qty = 10
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− UOM = Ea

8. Place your cursor on the next line


− Ordered Item = CM13375
− Qty = 10
− UOM = Ea

9. (T) Order Information

10. (B) Book Order

11. Record your sales order number: __________________

Oracle University and Emak Academy use only


Release the Sales Order for Picking

12. Navigate to the Release Orders window

• (N) Shipping > Release Sales Orders > Release Sales Orders

13. (T) Order


− Order Number = Your sales order number
− Scheduled Ship Dates = Delete all dates
− Requested Dates = Delete all dates

14. (T) Inventory


− Warehouse = M1

15. (T) Shipping


− Autocreate Delivery = Yes
− Ship Confirm Rule = Blank

16. (B) Concurrent.

17. (B) OK to acknowledge message

Confirm Shipment of the Delivery

18. Navigate to the Shipping Transactions window

• (N) Shipping > Transactions


− Order Number = Your sales order number

19. (B) Find

20. Verify that the line status for both lines is Staged/Pick Confirmed

21. (T) Delivery


− Actions = Ship Confirm (from poplist)

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22. (B) Go

23. (B) OK

24. (B) OK to acknowledge messages

25. (M) View > Requests

26. (B) Find

27. Verify that the Interface Trip Stop request completes normally

28. Close all windows and return to the Navigator

Oracle University and Emak Academy use only


Run the Workflow Background Process

29. Responsibility = Order Management Super User, Vision Operations (USA)

• (N) Inventory > Workflow Background Engine


− Item Type = OM Order Line
− Process Deferred = Yes
− Process Timeout = No
− Process Stuck = No

30. (B) OK

31. (B) Submit

32. Do not submit another request

33. (M) View > Requests

34. (B) Find

35. Verify that the Workflow Background Process and all AutoInvoice processes have
completed normally

36. Close all windows and return to the Navigator

Note: If there are any executed delivery lines, the OM Order Line workflow will close the
line and automatically start the AutoInvoice process. Keep in mind that starting the
AutoInvoice concurrent request is a customization to the workflow process in the Vision
environment.

View the Invoice in Receivables

37. Change responsibilities to Receivables, Vision Operations (USA)

38. (M) File > Switch Responsibility

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− Responsibility = Receivables, Vision Operations (USA)

39. Navigate to the Transaction window and query the transaction using your sales order
number

• (N) Transactions > Transactions

40. (M) View > Find


− Sales Order Number = Your sales order number

41. (B) Find

Note the source is order entry, the reference is your sales order number and navigate to line

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items to see the items from your sales order.

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Manual Receipts

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Practice - Enter a Manual Receipt Batch (Required)
Overview
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.

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Use a Manual-Regular batch to 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. Batches also group related receipts together to
share default attributes such as receipt class, payment method, and automatic numbering.

In this practice you will enter a batch of manual receipts. XXGiant Distributors has made two
payments: one for $2,200 and another for $10,000. Create a regular manual batch receipt for
these payments. Apply these cash receipts to any of the open invoices in the XXGiant
Distributors account.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Enter the Manual Receipt Batch Header

1. Navigate to the Receipts window:

• (N) Receipts > Batches


− Batch Type = Manual-Regular
− Control Count = 2
− Control Amount = 12200
− (B) Receipts

Enter the First Receipt in the Batch

2. (B) Open
− Receipt Number = XX-01a
− Receipt Type = Standard
− Receipt Amount = 2200

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− Customer Name = XXGiant Distributors

3. (B) Apply
− Apply To = Select any invoice
− Amount Applied = 2200

4. Save

Enter the Second Receipt

5. Close the Application window

6. (M) File > New

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− Receipt Number = XX-01b
− Receipt Type = Standard

Note: There are two types of receipts, Standard and Miscellaneous. Standard receipts are
applied to invoices and Miscellaneous receipts are for deposits resulting from transactions
that do not have invoices in the system (i.e. Interest income).

− Receipt Amount = 10000


− Customer Name = XXGiant Distributors

7. (B) Apply
− Apply To = Select any invoice
− Amount Applied = 10000

8. Save

9. Close windows until you are at the Receipt Batches window

10. Note that the Actual totals equal the Control totals, both receipts are Applied, and the batch
status is Closed

11. Close all windows and return to the Navigator

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Practice - Enter a QuickCash Receipt Batch and Post Quick Cash
(Required)
Overview
You create a Manual-Quick batch 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

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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.

In this practice you will enter a QuickCash receipt batch.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Create a QuickCash Receipt Batch Header

1. Navigate to the Receipt Batches window:

• (N) Receipts > Batches


− Batch Type = Manual-Quick
− Batch Source = Hand Deposit - BofA
− Control Count = 5
− Control Amount = 57250

2. Save

3. Record your batch number: ________________

Enter Receipts into the Batch

4. (B) Receipts

5. Enter receipts according to the following table.

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Receipt Amount Application Type Customer Name Apply To
Number
XX-02 $19,250 Single XXMegamart Any invoice for XXMegamart
XX-03 $5,000 On-Account XXMegamart NONE
XX-04 $20,000 Multiple XXGiant Distributors Any invoices for XXGiant Distributors
(B) Multiple to enter
the invoices
XX-05 $10,000 Auto Cash Rule XXGiant Distributors Will be automatically applied to
Transactions based on Auto Cash
Rules
XX-06 $3,000 Unidentified NONE NONE

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6. Save

7. Close the QuickCash window

8. Check Batch Status

9. Note that Status = Open

10. Verify that Control and Actual accounts match

Post QuickCash

11. (B) Post Quick Cash

12. (B) Yes

13. (M) View > Requests

14. Monitor your request until it completes

15. (B) View Output

16. Close all windows and return to the Navigator

Note: You run Post QuickCash to update your customer’s account balances for batches
created either in the QuickCash window or using AutoLockbox. You can select batches that
contain on-account, unapplied, and unidentified receipts and you can submit a receipt batch
for posting regardless of its status. Your batch will generally have a status of either Open or
Out of Balance before submitting Post QuickCash.

After you run Post QuickCash, you can fully or partially apply any unidentified, on-account,
or unapplied amounts in the Receipts window. After you fully apply or place on- account
each receipt in the batch, Receivables updates the batch status to Closed and changes the
batch type to Manual– Regular (this is true for both manually entered batches and those
created by AutoLockbox).

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Practice - Enter a Miscellaneous Receipt (Required)
Overview
In this practice you will enter a Miscellaneous receipt for $500 of interest income from excess
cash being held in an interest-bearing account. Miscellaneous receipts are receipts that are not
associated with an invoice or other transaction.

Assumptions
• Replace XX with your terminal number or initials.

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• 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.

Tasks
Process the Misc. Receipt

1. Navigate to the Receipts window:

• (N) Receipts > Receipts


− Receipt Method = Check - BofA
− Receipt Number = XXMisc-01
− Receipt Amount = 500
− Receipt Type = Misc

2. (T) Main: Purpose


− Activity = Interest Income

3. Save

View Distribution Information

4. (B) Distributions

5. Close windows until you are back at the Navigator.

Note: The Interest revenue accounts were set up in the Miscellaneous Cash Receivables
Activity called Interest Income. These are the credit accounts you see when you look at
distributions. The Debit account comes from the bank associated with the Receipt Method.

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Practice - Reverse a Receipt (Required)
Overview
In this practice you will reverse a receipt entered in a previous practice. The bank has sent you
notification that the payment for $10,000 made by XXGiant Distributors has been returned
because sufficient funds are not available in their bank account. Reverse the receipt and note
that it was reversed as NSF (non-sufficient funds).

Assumptions

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• Replace XX with your terminal number or initials.

• 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.

Tasks
Reverse a Receipt

1. Navigate to the Receipts Summary window:

• (N) Receipts > Batches

2. (M) View > Find


− Batch Number = Your batch number from the QuickCash Receipt Batch lab

3. (B) Find

4. (B) Receipts

5. Click in the Receipt Number field for Receipt Number = XX-05 (this is your 10000 receipt)

6. (B) Reverse
− Category = Non-sufficient Funds
− Reason = Nsf

7. (B) Reverse

8. (B) Open

9. Note the status is now Reversed

10. (T) Reversal

11. Note the reversal information for this receipt has been recorded

12. Close all windows and return to the Navigator


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Practice - Apply an Unidentified Receipt (Required)
Overview
In this practice you will apply a receipt that was left unidentified in a previous practice. After
doing some research, you discover that the unidentified receipt for $3,000 was made by a
company affiliated with XXGiant Distributors. Apply this receipt on-account for XXGiant
Distributors.

Assumptions

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• Replace XX with your terminal number or initials.

• 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.

Tasks
Find the Unidentified Receipt

1. Navigate to the Receipts Summary window:

• (N) Receipts > Receipts Summary (or Receipts)

2. (M) View > Find


− Receipt Number = XX-06

Apply the Receipt

3. (B) Open
− Customer Name = XXGiant Distributors

4. (B) Applications
− Apply To = On Account (use LOV)
− In the Amount Applied field enter $3,000 (or just tab into the field)

5. Save

6. Close the Applications window

7. (T) Apply Summary

8. Notice that the receipt is now showing as On-Account instead of Unidentified

9. Close all windows and return to the Navigator

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Practice - Reverse and Re-Apply a Receipt (Required)
Overview
XXMegamart contacts you to tell you that receipt XX-03 for $5,000 should be applied to the
account of XXGiant Distributors. Since you applied this amount to the XXMegamart account,
you have to reverse the receipt and reapply it to the XXGiant Distributors account.

Note that since XXMegamart and XXGiant Distributors are related customers, you could have
used the Application window to unapply and re-apply this receipt without reversing it.

In this practice you will reverse a receipt that was applied to an invoice for the wrong customer

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and then re-apply it to the correct invoice.

Assumptions
• Replace XX with your terminal number or initials.

• 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.

Tasks
Find your receipt

1. Navigate to the Receipts Summary window:


− (N) Receipts > Receipts Summary

2. (M) View > Find…


− Receipt Numbers = XX-03

Note: This is your $5000 receipt that you originally applied to XXMegamart

Reverse your receipt

3. (B) Reverse
− Category = Reverse Payment
− Reason = Wrong Customer

4. (B) Reverse

Reapply your receipt to XXGiant Distributors

5. (M) File > New

6. (B) Open
− Receipt Method = Check - BofA

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− Receipt Number = XX-03
− Receipt Amount = 5000
− Receipt Type = Standard
− Customer Name = XXGiant Distributors

7. (B) Apply
− Apply To = Select any invoice for XXGiant Distributors
− Amount Applied = 5000

8. Save

9. Close all windows and return to the Navigator

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Practice - Print Receipt Related Reports (Optional)
Overview
In this practice you will print various receipt related reports.

Assumptions
• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

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or test instance at your site on which to complete this practice.

Tasks
Print the Receipt Register

1. Navigate to the Standard Request Submission window:

• (N) Reports > Accounting

2. (B) OK to submit a single request


− Name = Receipt Register
− Customer Name Low = XXGiant Distributors
− Customer Name High = XXMegamart

3. (B) OK

4. (B) Submit

5. Do not submit another request

6. (M) View > Requests

7. (B) Find

8. When the request is complete, view the output.

9. Close all windows and return to the Navigator

10. Repeat the above steps to print any of the following reports that you would like to see:
− Applied Receipts Register
− Unapplied and Unresolved Receipts Register
− Billing and Receipt History Report

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