Operational Analysis Questionnaire

Receivables

Author: Gopala Raja Duddu

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No Questions Answers Revist

1.0 Customers    
1.1 Do you have any central database for maintaining Customer data?
Who and how maintains Customer data?
1.1 What types of customers do you have?  

Do you currently have any challenges with Customer data quality?

Do you plan to cleanse your customer data prior to the startup of the
Fusion project?

1.2 How do you group your customers for credit limits/credit checks?  
1.3 How do you group your customers for statements?  
How do you group your customers for interest charges for overdue
1.4 payments?  
1.5 How do you group your customers for payment rules?  

1.6 How many customers do you have?  

2 Customer Numbering

2.1 Do you automatically number new customers as they are created?  

Do you automatically number customer business purposes as they are
2.2 created?  

Do you create reciprocal customer relationships whenever you create a

2.3 relationship between customers for tracking purposes?  
2.4 Do you send customers statements?  
2.5 Do you have multiple "remit to addresses"?  

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2.6 How are multiple "remit to addresses" determined for each customer?  
2.7 What credit information is tracked for each customer?  
2.8 Who has access to your customer database?  
3 Batch Invoices, Invoice Tax and Invoice Numbering
Do you currently run any interface program to create Customer Invoices?
3.1 Which are the various sources for your Customer invoices?
Do you have customers that receive a monthly invoice for all outstanding
3.2 activity (balance-forward billing)?
3.3 Describe Invoice Sources for AR
3.4 Do you enter invoices in batches?  
3.5 How are batch invoices defined?  
What are the units of measure you use when you bill customers for
3.6 products and/or services?  

3.7 Do you require taxes to be established for use when preparing invoices?  
Do you validate the tax rate against a Customer’s Ship To address when
3.8 preparing invoices?  
3.9 Do you bill customers in a foreign currency?  
Are there any other foreign currency issues regarding invoice
3.10 generation?  
3.11 How many invoice types do you have?  
3.12 How frequently do you invoice your customers?  
How do you track sales revenue on invoices? How is it reported? As well
3.13 COGS  

3.14 How do you calculate your tax charges? What are the rates?  
3.15 How do you keep your tax rate information up to date?    
3.16 Why are credit memos used?  
How are the revenue, receivable, freight and tax accounts configured for
3.17 each invoice type?  
3.18 How are adjustments to closed periods handled?  
Do you ever recognize revenue from a single transaction over multiple
3.19 periods?  
3.20 When do you recognize revenue?  

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3.21 How many General Ledger accounts do you distribute to?  

3.22 When do you create or recognize outstanding receivables?  

Do you distribute earned and unearned revenue? What are the GL
3.23 accounts?  
3.24 Do you have unbilled receivables?  

3.25 Is revenue assignment associated with sales people information?  

3.26 Do you assign non-revenue credit to sales people?  

3.27 How do you maintain and assign salespeople to customers?  

3.28 Do you track Sales Territory Information?  
How is Sales Territory Information for tracking purposes derived? (for
3.29 example, customer, salesperson, and so on)  

Do you maintain mandatory and/or optional reviews in your orders cycle

3.30 for credit risk, legal compliance, and/or other approvals?  
3.31 Do you have sales representatives? How many?  
3.32 How do you breakup territory for sales?  
3.33 How do you assign commissions?  

Do you automatically determine the general ledger accounts for specific

transactions (for example, receivables, freight, tax, unearned revenue,
3.34 unbilled receivables, and so on) during Invoice Entry?  
How do you enter/manage a credit amount owed to the customer by your
3.35 company?  
How do you enter/manage a credit amount owed to your company by the
3.36 customer  
3.37 How the invoices sent to customers?
3.38 How the Customer credit limit changes addressed:
3.39 Does HRM has credit check process?
3.40 Does HRM is using Deposit and Prepayment functionality?
4 Debit Memos and Credit Memos
4.1 Do you use Debit Memos?
4.2 How are Debit Memos accounted for?
4.3 Why are Debit Memos used?

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4.4 What items appear on Debit Memos?

4.5 Do you use Customer Account Credit Memos?
4.6 How are Customer Account Credit Memos used?
4.7 Why are Customer Account Credit Memos used?
4.8 What items appear on Customer Account Credit Memos?

5 Customer Payments

How do your customers generally pay invoices? Single check -- single

5.1 invoice single check -- multiple invoices multiple checks  

5.2 Do you use more than one bank account and/or cash account?  

5.3 Do you have customers who pay other customers’ invoices?  

5.4 Do you use lockboxes?  
5.5 How many lockboxes do you use?  
What types of payments are received and input? (for example, check,
5.6 cash, and so on)  
5.7 How do you receive and input payments?  
5.8 Do you receive deposits and/or prepayments?  
5.9 Do you receive non-customer related payments?  
5.10 How are non-customer related payments accounted for?  

5.11 How do you handle payments without remittance information?  

5.12 How do you handle payments from unknown sources?  

5.13 What are your policies and procedures about adjusting payments?  

5.14 What are your policies and procedures about reversing payments?  
5.15 How often do you adjust payments?  
5.16 How often do you reverse payments?  
5.17 How many payments do you receive in a month?  
5.18 How many checks are returned by the bank in a period?  

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5.19 What are the reasons for checks being returned by the bank?  
5.20 Who applies cash?
5.21 How is cash applied?

5.22 Do you create chargebacks (Debit Items) for customer deductions?

How do you enter/manage a credit amount owed to the customer by your
5.23 company?
How do you enter/manage a credit amount owed to your company by the
5.24 customer  
5.25 Do you send dunning letters to customers?  
Payment terms can include a discount percent for
early payment, and you can assign multiple
6 Payment Terms discounts to each payment term line.
6.1 What type of payment terms do you provide?
6.2 Do you provide split term payment terms?
6.3 Do you provide discount payment terms?
Oracle Payments supports several payment
methods for funds disbursement, including the
following: Checks. Electronic Funds Transfer (EFT)
7 Payment Methods Bills Payable
Which are the payment methods that your customers use to remit
7.1 payments?
For each of your payment methods, indicate the Remittance Bank and
7.2 accounting information listed.

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Remit-to addresses uses in Oracle application to

Remit to Address know your customers where to send payment for
8 their invoices
8.1 Do you have multiple Remit to Addresses for your customer Payments?
8.2 If so, provide the details of the same.
Do you need the remit to address printed in your invoices? (Note: If
more than one, please indicate what is the criteria to select one)
8.3
If you have multiple Remit to Addresses, provide the same in the
following Format:
Remit to Address Set Coomon/Entereprise Details
  Country  
  Address1  
  Address2  
  Address3  
  City  
  County  
  State  
  Zip Code  
  Sales Tax Geocode  
Sales Tax Inside City
  Limits  
Receo[ts From
Criteria Country  
  State  
  From Postal Code  
  To Postal Code  
  Context Value  
9 Customer Statements, Adjustments, Aging and finance charges
9.1 Do you send customers statements?  
9.2 Do you ever adjust receivables?  
9.3 How do you adjust receivables?  
9.4 Do you limit the amounts when adjusting receivables?  

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9.5 What do your aging look like?  

9.6 What credit information is tracked for each customer?  
Do you charge finance charges? Do you assess late charges on overdue
invoices? If so, please provide (separately) a description of the
9.7 calculation method and how they are charged to the customers.  
9.8 How do you charge finance charges?  
9.9 Do you send dunning letters to customers?  
9.10 Do collectors actively call customers on delinquent items?  
What is the process for tracking actions to collect on delinquent
9.11 accounts?  
Is the process for tracking actions to collect on delinquent accounts
9.12 automated?  
Do terms and conditions of customer agreements and/or payment terms
9.13 change based upon the status of their accounts?  
9.14 Do you monitor your collector’s performance?
9.15 What metrics are used to monitor collections performance?
9.16 How do you monitor customer account status?
9.17 How are adjustments to closed periods handled?  
Does HRM is using standard reports or custom reports for statement of
9.18 accounts and aging

10 Receivable Activities
Provide the list of Receivable activities such as Bank Interest, Dividends,
Earned Discount, Unearned Discount and Miscellaneous Cash if
10.1 applicable
Provide the same in the following format if applicable
* Descri * Active? * GL * * Activity GL
Name ption Activity Account Tax Account
Type Source Rat
e
Co
de
So
urc

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e
             

11 Approval Limits
Do you need approval limits to users to approve adjustments, Credit
11.1 memo requests, credit memo refunds, and receipt write-off ?
11.2 If yes, specify currency and amount ranges
If applicable, please provide the information as specified below format:
User Document Currency Mini Maxim User
Name Type mum um Display
Appr Approv Name
oval al
Amou Amount
nt
11.3            

Specify Auto Accounting Rules, If applicable to your

12 Auto Accounting Rules organization as per your existing system
Specify Auto Accounting Rules, if applicable to your organization, if not
12.1 how the auto accounting is derived
If your organization is using Oracle, please provide the information in the
below format:
Business Acco Segmen Value Constan
Unit unt t Source t Value
Type
         
12.2

13 Auto Invoice Grouping Rules Define grouping rules that Auto-Invoice will use to
group revenue and credit transactions into invoices,

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debit memos, and credit memos. Grouping rules

specify attributes that must be identical for lines to
appear on the same transaction.
Specify Invoice Grouping Rules if applicable/required to group imported
revenue and credit transactions into invoices, debit memos and credit
13.1 invoices
Transaction type are Invoice/Credit Memo/Debit
14 Transaction Type and Transaction Source Memo/Chargeback
Do you import transactions from other subledgers/
14.1 Modules/offerings/integrate from third party system?
14.2 If so, please specify the name of the source systems?
Do you want to use seeded transaction types or want new transaction
types? if it is new transaction type, provide following information:

*Name Credit Invoice Debit

Memo Memo
Transaction Commo Common Commo
Type Set n Set Set n Set

Legal Entity xxx xxx xxx

Description Credit Invoice Debit

Memo Memo
Transaction Credit Invoice Debit
Class Memo Memo
*Transaction Open Open Open
Status

*From Date ####### ####### #######

# # #
14.3 To Date <Null> <Null> <Null>

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Creation Sign Negativ Positive Positive

e Sign Sign Sign
Generate Bill Yes Yes Yes

Invoice Type <Null> <Null> <Null>

Credit Memo <Null> Credit <Null>

Type Memo

Application <Null> <Null> <Null>

Rule Set

Payment 30 Net IMMEDIA <Null>

Terms TE
Open Yes Yes Yes
Receivable

Allow Freight Yes Yes Yes

Post to GL Yes Yes Yes

Default Tax No No No
classification
code

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Natural <Null> <Null> Yes

Application
Only
Allow Yes Yes <Null>
Overapplicati
on
Exclude from <Null> <Null> <Null>
Late Charges

Context <Null> <Null> <Null>

Value
Reference Accounts

Business Unit
Ledger US US US
Operati Operatio Operati
ons ns Ledger ons
Ledger Ledger
Revenue      
Receivable      

Tax      
Freight      
Unearned      
Revenue

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Unbilled      
Receivable

Autoinvoice      
Clearing

14.4 Provide transaction source details if applicable as per your existing

system, if not ignore

Transaction
Source    
Transaction Source Set
Legal Entity
Name
Description
Type
Active?
From Date
To Date
Source Defaults Automatic transaction
Last transaction
Receipt Handling for
Copy Document Number
Allow Duplicate Transaction
Copy Transaction
Reference Field Dfault
Standard Transaction Type
Credit Transaction
Context Value (Off)
Regional Information

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Auto Invoice
Options Invalid Line
Accounting Date
Grouping Rule
Create clearing
Allow Sales
Import Information Sales Credit Salesperson
Sales Credity Type
Sale Credit
Customer Bill-to Customer
Bill to Address
Ship-to Customer
Ship-to Address
Ship-to Contact
Payment Method Rule
Customer Bank Account
Accounting Invoicing Rule
Revenus Scheduling Rule
Accounting Flexfield
Derive Date
Payment Terms
Revenue Accounting
Allocation
Miscellaneous Transction Type
Memo Reason
Memo Line Rule
Inventory Item
Unit of Measure
FOB Point
Freight Carrier
Related Document
System Integration
Enables
15 Standard Memo Lines Standard memo lines are assigned to transactions

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for items where the items are not inventory Items

15.1 Do you want to capture item details, while creating Invoice Transactions?
15.2 If So, are you using Inventory Module/Offering?
If not provide the following information:
  Details Name/Description
  Memo Line Set  
  Name  
  Description  
  Type  
  Tax Classification  
  Tax Product Category  
  Unit list price  
  Invoicing Rule  
  Revenue Scheduling Rule  
  From Date  
  To Date  
Reference Accounts Business Unit  
  Ledger  
  Revemie  
15.3
16 Receipt Classes, Receipt Methods,Lockbox & Receipt Source
16.1 Do you have Manual Receipts/Automatic Receipts?
Describe the process of Receipt Creation Method, Receipt Remittance
16.2 Method & Receipt Clearance Method
Describe the process of receipts from Customers and its remittances to
16.3 banks
16.4 Describe the process of Bank Reconciliation
If you are using Oracle EBS, provide Receipt classes and Receipt
16.5 Remittance methods in the following format:

Name Default Information

Business Unit  
Name  
Rescription  

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Receipt Source Type  

Receipt Class  
Receipt Method  
Bank Account  
Bank Numbering  
Batch Nunber Starts
After  
Effective Start Date  
Effective End Date  
16.6 Do you use lock box for receipt collection from customers
16.7 If so, provide details of each of it
Provide Receipt source information to provide default values for receipt
class, receipt method and remittance bank account for all receipts added
16.8 to receipt batch if applicable.
Describe the process of Auto-match rule set process if applicable or do
16.9 you recommend manual application only?
17 Customer Hierarchies and Customer Paying Relation ships
17.1 Do you have Customer Hierarchies?
Does any of your customers has paying relationships, if so provide
17.2 details of such customers

18 Customizations
18.1 Do you have any customization in AR

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Issues and Action Items

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