Professional Documents
Culture Documents
ORACLE FINANCIALS
VOL - I
THEORY GUIDE
Multiple Organizations
• Use a single installation of any Oracle Applications product to support any number of organizations, even if
those organizations use different ledgers
• Secure access to data so that users can only access relevant information
Major Features
Secure Access
Data Security
Inventory Organization Security by Responsibility
Responsibility Determines Operating Unit
Receive Goods Into Any Inventory Organization
Automatic Accounting for Internal Requisitions
Types of Organizations
1 Business Group
The business group represents the highest level in the organization structure, such as the consolidated
enterprise, a major Branch, or an operation company. The business group secures human resources
information.
For example, when you request a list of employees, you see all employees assigned to the business group of
which your organization is a part.
Multiple ledgers can share the same business group if they share the same business
2 LEDGER
Ledgers takes the place of second level in the multi org structure, only based on which the legal entity
and operating units are going to be decided on. Also remember it is not mandatory for a ledger to have
a Legal entity.
Only based on the definition of ledger, the multi org structure is designed / finalized.
Therefore it is very vital to perform the ledger setup keeping in mind that it has a greater
Impact on the multi organization structure to be followed by the client and setup by the Implementation
team.
Even though Ledgers takes place second level in the above figure, one can say it is the starting point of
Multi org structure, since setting up of a business group or validations / functionalities related to business
group are less complicated when compared to other elements in the Multi org structure.
In total there are two types of Ledgers available, they are:
Primary Ledger
Secondary ledger
Reporting Currencies (Ledger)
3 Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity
information to this type of organization.
You can define legal entities using Legal Entity Configurator or Accounting Setup Manager in General Ledger.
4 Operating Unit
An organization that uses Oracle subledgers, such as Oracle Cash Management, Order
Management, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales
office, a Branch, or a department.
The MO: Security Profile provides access to multiple operating units from a single responsibility.
You can define operating units from the Define Organization window in Oracle HRMS
5 Inventory Organization
An organization for which you track inventory transactions and balances, and/or an
Examples include manufacturing plants, warehouses, distribution centers, and sales offices.
The following applications secure information by inventory organization: Oracle
. To run any of these applications, you must choose an organization that has been classified as an
inventory organization.
You can create ledgers using the Accounting Setup Manager in Oracle General Ledger
and define organizations using the Define Organization window.
HR Organization
HR organizations represent the basic work structure of any enterprise. They usually represent the
functional management, or reporting groups that exist within a business group.
In addition to these internal organizations, you can define other organizations for tax and government
reporting purposes, or for third party payments.
Oracle Projects allows you to define organization hierarchies to reflect your company's organizations
structure.
You can add Oracle Projects-specific organization types to the organization hierarchy (for example,
projects organizations or Expenditure organizations) to help you manage your project control
requirements.
You assign project and expenditure hierarchies to operating units.
Asset Organizations
An asset organization is an organization that allows you to perform asset-related activities for a specific
Oracle Assets corporate book.
Oracle Assets uses only organizations designated as asset organizations
The following information is global. It must be set up once for the enterprise:
• Flexfield definitions
LEDGER
A Ledger is a container of all accounting related information captured through various other modules.
Oracle General Ledger Module owns ledgers.
One has to design the ledger in an appropriate way keeping in mind what information it needs to hold.
One can have as many ledgers as they want based on their business requirement and operations point
of view.
A ledger saves the accounting information in an organized way as directed by the conditions specified
in the accounting options for that ledger.
Implementer defines the format, rules, restrictions for a particular ledger using different setup screens
making the user to only enter the information what is relevant for Oracle General Ledger to process
further.
One may collect much additional information in different modules as per their business requirement,
whereas those are of least importance, since they are all only data which are not subjected to any
further processing by oracle.
A well planned/designed ledger saves a lot of time for the company in processing the data and
preparing MIS reports for the management in key decision makings.
One will also be knowing that Business intelligence module does this job of producing excellent
reports on the daily operations of company and points out key areas and red flags.
However, business intelligence can be used to best effect, only when the base setups, which are in
place, are efficient.
Ledger being the foremost setup for any financial modules in E business Suite, one must understand
the power, importance and its usage at later stage in many other areas within e Business suite.
Ledger is nothing but a combination of all those components.
Without usage of components, ledger cannot function on its own.
1) Chart of Accounts
2) Calendar
3) Currency
4) Accounting Method
Chart of Accounts
The definition of Chart of Accounts structure is one of the most complex part, there has
to be a brainstorming and many levels of discussions between Client and the Implementation team to decide
on a structure that best suits the business need.
In short, COA decides on what information needs to be collected for every transaction that is being
transacted by the business, considering different parameters and key factors.
Calendar
Calendar presents the period for which the business is carried forward. Calendar here represents
Accounting calendar.
One will be deciding on the calendar based on their statutory requirement.
Even though every accounting period is going to have a span of 12 months in it, however there is a
greater difference on the start and end date of the accounting period.
Currency
Currency represents the list of currencies in which the customer is having businesses.
One needs to define/enable the currencies as per their business requirement; there is no
Accounting Method
Every business has to follow an accounting method to record their transactions in order to comply with
the legal commitments.
Oracle by default has provided seeded accounting methods for usage, however if the clients business
demands for customization of an accounting method or creation of new accounting method as per the
statutory regulations, then they can create their own accounting method as well.
All the above-discussed components are mandatory in order to define a primary ledger.
For a secondary ledger, in addition to the above component, one needs to select the method of Data
Conversion Level followed.
Primary Ledger
It is mandatory that every accounting operation must have one primary ledger
It acts as a Primary repository, which records all accounting related information related to that particular
Primary Ledger. One cannot carry out setups without having primary ledger in place.
Primary ledger replaces the Set of books (Ledger in R12) used in earlier versions prior to Release 12.
Secondary Ledger
Reporting currencies are purely a representation of transactions saved in the Primary or Secondary
ledger in different currency.
This concept was available in Release 11 in the name of Reporting Set of books (Ledger in R12); it is
exactly the same in R12, no change apart from the terminology.
Reporting currencies are maintained at different currency conversion levels.
Even though it is not a separate ledger as such, still it can be considered as a different
ledger since it acts as a different container apart from the primary or secondary ledger information.
Primary Ledger
Secondary Ledger
Reporting Currencies
Company SKR GROUPS is implementing Oracle Financials for their business. The summary
SKR GROUPS, which is based in India, is having their business operation in three countries:
1) Branch I - India
2) Branch II - Australia
Please advice on the ideal Ledger structure to be designed for the company SKR GROUPS?
Now from the above lets us see how many primary ledgers can be created?
One cannot use the same primary ledger if one of its components is different.
From the above table, it is clear that none of the Branches have all 4 components as similar; therefore we
need to have 3 Primary ledgers defined for it.
Now apart from that, we need to think of the following practical scenario as well,
Even though Branch II is located in Australia, it has to finally consolidate all its operations
to INDIA at a later stage, therefore it must also follow the rules of accounting and statutory regulations in
India, so as Branch III.
Therefore, Branch II – Should have a secondary ledger, which will represent the transactions as per the Indian
Statute.
Branch III – Should have a secondary ledger, which will represent the transactions as per the Indian Statute.
However it is not necessary for Branch I to have secondary ledgers, since the company is based in
INDIA, therefore it need not have multiple accounting representations.
If the client insists on it, we can have 2 secondary ledgers for Branch I, to comply with
Now the Branches situated in France and Australia, must be reporting to the company in
INDIA on a daily basis, for which they need to convert their business transactions values
As discussed earlier, reporting currencies are part of primary ledger setup. Therefore
Australia and France primary ledger should have defined INR as its Reporting currencies.
Also there can be one more primary ledger created to consolidate the data between
1. Is it mandatory that every ledger must have a legal entity attached to it?
One can have a ledger with no legal entity as per their business requirement. It is not mandatory that every
ledger must have a legal entity attached to it. There could be ledgers, which have been created for
consolidation purposes alone.
3. Can we have one secondary ledger associated with more than one primary ledger?
4. Can we have more than one secondary ledger for a primary ledger?
Yes, you can have one or more secondary ledgers also there is no restriction imposed anywhere on number of
primary ledgers one can create.
Data Access Set is a new feature in Release 12, which is owned by General Ledger.
It helps in providing Role Based Access Control to the users.
Every user has access to the data through Responsibilities, these Data Access Sets controls the
behavior of a Responsibility when the user tries to access the ledger which is the repository of all
accounting related information.
It can control the level of access to be provided and on what information the access can be restricted
for a given ledger and responsibility.
We will see about it in more detail in further slides.
It can provide Read only, Read and Write access to an Ledger
It can restrict access to MSV (Management Segment Values) and BSV (Balancing Segment Values)
The ledgers and Ledger Sets which are assigned to a Data Access Set must share the same Chart of
Accounts, Calendar and Period Type.
General Ledger automatically creates a Data Access Set whenever a Ledger and/or Ledger Set are
created.
FULL LEDGER
As the name suggests all changes / restrictions defined under this type of Data Access Set will
apply to whole of a Ledger or a Ledger Set.
Either you can have a Read and Write privilege to a Ledger or Read only privilege to a Ledger.
For example, You have the Auditors visiting your premises who requires
access to all accounting information, instead of using system administrator to create a new
responsibility with lots of menu exclusions, you can just have a responsibility with the Data Access Set,
assigned as READ ONLY. So that the auditors will only have access to view the data and not to edit it
(Intentionally or unintentionally!)
Instead of providing access to the whole ledger, if you wanted to provide access only to
particular Balancing segment value combinations in a ledger, you can do so.
MANAGEMENT SEGMENT VALUE (BSV) Instead of providing access to the whole ledger, if you wanted
to provide access only to particular Management segment value
combinations in a ledger, you can do so.
Management Segment is a segment which has the Management Segment Qualifier attached. Values
belonging to that segment are termed as Management Segment Values.
Advantages
Role Based Access Control
Security on Data Access
Simplified Setups to create Data Access Security
It does not override the security rules and Cross validation rules
Limitations
A Responsibility can have only one Data Access Set
One can have ledgers sharing the same chart of accounts and calendar alone in the single Data
Access Set.
In case of BSV or MSV type Data Access Sets, if you select the check box for ALL that does not
include all BSV or MSV values.
So many parameters need to be considered before defining it, since it may clash with other
setups at General Ledger level resulting in errors.
Following items should have been already defined before creating a Data Access Set, they are:
Chart of Accounts
Calendar and Period Type
Ledgers should be defined using the above Chart of Accounts and alendar/period Type
If you want to use Management Segment Value type Data Access Set, you must assign
Management segment qualifier to one of your segments well in advance
7. Can we have a Data Access Set without defining what type it is?
You must specify one of the three types for each data access set.
8. Can one change the type of Data Access Set after defining?
Once defined, you cannot alter the type. You can only add or delete ledgers/ledger sets and segment
values specified in the data access set
since system automatically creates a Data access set whenever a Ledger or Ledger Set is
created, with the type Full ledger having read and write access.
You can make use of that. How can I find or trace out the system generated Data Access Set.
The system-generated data access set for a ledger/ledger set uses the same name as the
ledger/ledger set.
10. Does my Data Access Set override the restrictions provided by Security Rules and Cross Validation
Rules?
No, Data Access set does not override Security rules or Cross validation rules.
11. What precaution needs to be taken care for defining Data Access Set with Balancing Segment Values?
One must make sure that the BSV values used in the Data access sets must correspond to the BSV
values assigned to Legal Entity, using Accounting Setup Manager.
12. What precaution needs to be taken care for defining Data Access Set with Management Segment
Values?
Make sure that you do not restrict read and write access to segment values which are used in default
accounts, such as Retained Earnings Account etc...
LEDGER SET
In release 12, the concept of Set of books (Ledger in R12) has been enhanced and termed as
Ledgers.
Ledgers are of different types, I.e. Primary and Secondary ledgers.
To make working with ledgers easier, the new feature called LEDGER SET has been introduced.
As the name suggests it is nothing but a Set or Group of ledgers.
It helps the user in saving time on repetitive tasks performed on ledgers.
FEATURES / PURPOSE
A Ledger Set can contain any number of ledgers, there is no specific ceiling proposed so far.
A Ledger Set can include another ledger set within.
A Ledger Set can only have those ledgers which are sharing the same:
Chart of Accounts
ORACLE FINANCIALS J. Sureshraja M.com., MBA., CA (f).,
Page 15 of 174
Calendar/Period Type
A Ledger Set can have Primary, Secondary and Reporting currencies attached to it, but they
need to have the same Chart of Accounts and Calendar/Period Type combination.
A single ledger can be made use of in Multiple Ledger Sets.
ADVANTAGES
One can run concurrent programs or processes for multiple ledgers easily.
Opening and Closing periods
Generating recurring journals, etc
One can generate reports for multiple ledgers in no time.
Reports relating to consolidation
Financial Statement Generator Reports, etc
In case of a ledger set, which contains more than one ledger/ledger set in it, user can optionally
set a default ledger for effective usage.
Ledger set can be secured by having a Definition Access Set.
LIMITATIONS
You cannot add ledgers that do not share the same chart of accounts and Calendar/Period Type
to a Ledger Set.
You cannot have a reporting currency which is of type ‘Balance Level’ in the Ledger set, even if
it shares the same Chart of Accounts and Calendar/Period Type.
PREREQUISITES OF SETUP
Chart of Accounts
One needs to define a chart of accounts structure in place.
Period Type
Period types needs to be defined, which in turn will be used by
Accounting Calendar
Calendar
One has to define an Accounting Calendar
Existing Ledgers or Ledger Sets
One must have few pre defined ledgers or ledger sets in place.
Calendar
Period Type
Default Ledger
Ledger/Ledger Set
16. Can one modify the Ledger Set which is already defined?
Yes, you can add or remove Ledgers / Ledger Sets
17. After setting up the Ledger Set, is there any additional setup required before using the same?
You must assign the Ledger Set to the profile option GL: Data Access Set.
Oracle General Ledger automatically creates a Data Access Set, whenever a Ledger or Ledger Set is
created.
SUBLEDGER ACCOUNTING
Accounting system will have a number of subsidiary ledgers (called subledgers) for items such as cash,
accounts receivable, accounts payable, inventory, purchasing likewise.
All the entries that are entered (called posted or booked) to these subledgers will transact through the
general ledger account.
For example, when a credit sale posted in the account receivable subledger turns into cash due to a
payment, the transaction will be posted to the general ledger and the two (cash and accounts
receivable) subledgers as well.
There are instances when items will go directly to the general ledger without any subledger. These
items will be linked to your balance sheet but not to your profit and loss statement.
The Concept is more or less addressed same in newly R12 SLA accounting, therefore you should note:
A transactional application that generates accounting impact.
Used to store detailed information not needed for a general ledger
Subledgers post summarized activity to a general ledger periodically to maintain centralized account
balances for the company
All accounting performed before transfer to the GL and this is achieved by user setup who can do by
definable accounting rules.
At the data level, it’s a big change for all the subledgers, though there is a first generation changes we
have noticed sometime when 11i Payables where concept of Accounting Events introduced first time
and accounting performed at subledger level first before moving into GL.
The same idea has been incorporated in new sub ledger accounting model , indeed a was a real need
because of some uneven functionality likes:
1. Inconsistencies in Accounting Generation like Summary vs. Detail
2. Direct to General Ledger vs. Open Interface
3. Inconsistent Drilldown from General Ledger
Also it has been seen inconsistent Mechanisms for controlling Accounting as certain options has been
used in existing version:
1. flex biller
2. Account Generator
3. Automatic Offsets
Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application Release 12 (R12).
It is used to derive all attributes required to account a transaction in Oracle General Ledger.
In R12, SLA is used to derive the very basic accounting attributes like entered amount,
accounted amount, Date, Currency code etc and the complex attributes like Ledger, Code
Combination ID, Periods etc.
After deriving these accounting attributes the transactions are then interfaced to GL from SLA.
Thus in R12 no sub ledgers (AP, PO, PA etc) interfaces the transactions directly to GL, but all the
transactions are interfaced to GL in following 2 steps:
1. Sub ledgers interface the data to SLA.
2. SLA derives the accounting information and interfaces the data to GL.
SLA gives the flexibility to manage the entire accounting rule at one place, which acts as a single
source of truth for GL.
Note: There is no separate responsibility to access SLA setup or the view the transactions
generated by SLA. Rather we can access SLA setup and review accounted transactions with
While calling xla_events_pub_pkg.create_events, oracle passes a unique id and event class (Will
discuss in next step).
Unique ID can be an invoice id or a po_distribution id or an expenditure_item_id etc.
As soon as the sub ledger generates event in SLA, SLA returns unique event_id.
This event_id will then act as a reference to all the accounting entries generated by the SLA.
Once event is successfully created in SLA, means that the transaction is registered in SLA for
accounting.
Taking the example of Oracle Projects in 11i where after costing the transaction user need to run
the ‘PRC: Interface Cost to General Ledger’ followed by ‘Journal Import’ followed by ‘PRC: Tieback
process’.
But in R12 user only need to run “PRC: Generate Cost Accounting Events” which will register
events in SLA and thereafter SLA will take care of accounting the transaction and interfacing it to
GL.
There is no tieback process in R12, as there is one to one reference of event id between SLA and
sub ledger tables.
Above we discussed that while creating the event we also need to pass event class. This event
class is used to distinguish between the types of transaction passed for processing. To understand
this better we will go thru the seeded oracle information
II) Purchasing
1. Complete All Transactions for the Period Being Closed
2. Review the Current and Future Commitments (Optional)
3. Review the Outstanding and Overdue Purchase Orders (Optional)
4. Follow up Receipts-Check with Suppliers
5. Identify and Review Un-invoiced Receipts (Period End Accruals)
6. Follow Up Outstanding Invoices
7. Complete the Oracle Payables- Period End Process
8. Run Receipt Accruals - Period End Process
9. Reconcile Accounts - Perpetual Accruals
10. Perform Year End Encumbrance Processing. (Optional)
11. Close the Current Purchasing Period.
III) Inventory/WIP
1. Complete All Transactions for the Period Being Closed.
2. Check Inventory and Work In Process Transaction Interfaces.
3. Check Oracle Order Management Transaction Process.
4. Review Inventory Transactions.
5. Balance the Perpetual Inventory.
6. Validate Work In Process Inventory.
7. Transfer Summary or Detail Transactions
8. Close the Current Oracle Payables and Oracle Purchasing Periods
9. Close the Current Inventory Period
10. Open the Next Inventory Period
11. Run Standard Period End Reports (Optional)
V) Receivables
1. Complete All Transactions for the Period Being Closed
2. Reconcile Transaction Activity for the Period
3. Reconcile Outstanding Customer Balances
4. Review the Unapplied Receipts Register
5. Reconcile receipts.
6. Reconcile Receipts to Bank Statement Activity for the Period
7. Post to the General Ledger
8. Reconcile the General Ledger Transfer Process
9. Reconcile the Journal Import Process
10. Print Invoices
VI) Assets
1. Complete All Transactions for the Period Being Closed
2. Assign All Assets to Distribution Lines
3. Run Calculate Gains and Losses (Optional)
4. Run Depreciation
5. Create Journal Entries
6. Rollback Depreciation and/or Rollback Journal Entries (Optional)
7. Create Deferred Depreciation Journal Entries (Optional)
8. Depreciation Projections(Optional)
9. Review and Post Journal Entries
10. Reconcile Oracle Assets to Oracle General Ledger Using Reports.
11. Run Responsibility Reports (Optional)
12. Archive and Purge Transactions (Optional)
Account Payables
It is an ERP solution to effectively manage creditors. The main task is to pay the supplier for the goods
&services. It captures information with respect to purchase invoice transaction & payments to supplier.
The task of effective control of payables can be achieved using the following tools of management.
Business Flow
1. Invoice Recording: Based on purchasing order suppliers will provide goods & services invoices. In payables
invoices are recorded based on invoices received, purchase order, receipt of material & services.
2. Invoice Approval Process: Dunning approval process, placed to delay payment for any variation in purchase
order in invoices/receipt of materials.
5. Advance Payment approval process: Any advance payment to suppliers requesting approval before
payment.
6. Payments of Approval invoices: Approval invoices will be paid by using payment documents. It can be
single/multiple payments.
8. Refund receipts/record/accounting: Any excess payment will be refunded by the supplier which will be
recorded & Accounted.
APPLICATION FLOW
Information Flow
Financial options
Payables options
Supplier level
Financial Options:
Certain values can be predefined & control options enabled. Values defined at this level will act
as default values access various modules like payables, purchasing & asset modules. These values &
options cascade documents to next lower level.
Payable Option:
Distribution lines/level
Some additional values & options can be defined. The values are
defined at payables options level act as default exclusively for payables module only. The values define
at this level will default to every new supplier being defined.
Supplier level:
Values & options that defaulted from payables options can either be accepted/overwritten with
new values & options. The values options defined at this level will default to site being defined at the
site level.
Supplier Site level:
Values & options can either be accepted/overwritten if required; It will default to Invoice header level.
Invoices Header level:
Values & options defaulted from supplier site level can be accepted /overwritten. It will default
to the following 2 level.
Transactions
Standard invoices
Credit Memo
Debit Memo
Mixed invoice
Po default Standard invoice
Quick match standard invoice
Prepayment invoice
Expense report invoice
Withholding tax invoice
Interest invoice
Payment Transaction:
Manual payment
Quick payment
Refund
Basic Setups
Financial options
After choosing GL Set of books (Ledger in R12), define financial options which have following regions.
Accounting
Supplier – Entry
Supplier – payables
Supplier – Purchasing
Encumbrance
Tax
Human resources
Account payable, purchasing, FA module share these options. Information flow starts from financial option. It
defines the defaulting accounting flexfields for Oracle Payables financial transactions which create oracle GL
journal entities.
Navigation:
Accounting tab:
Future tab:
Number of future periods that we may use in our Set of books (Ledger in R12). In payables there is various
period statuses
Never open
Future
Open
Close
Permanently close period.
Close: Cannot enter transaction but can generate statement like open period.
Permanently Closed: It will work for all close period. In close period we can toggle to open period but here u
cannot.
GL Account:
Liability – Default liable account for all new suppliers created this value can be overridden during supplier
creation.
Prepayment: Default account for each line entered in prepayment type invoice
Future dated payment: This default to all new supplier & bank account for all future data payment.
PO rate variance gain/loss: Rate variance when we match invoice to purchasing order/receipts.
Misc: Misc charges when invoices are imposed through XML gateway (or) high supplier port
RFQ only site: If we enable this all suppliers will be defined as only RFQ only site. For these sites no purchase
order can be generated.
Hold unmatched invoices: To place a hold on invoice during invoice validation when it is not matched to
either purchase order/receipts until the hold is released invoice remain unpaid.
Supplier Number Entry: Manually/Automatically. It can be changed at any time. But before changing make
sure that the next available now for automatic enter is larger than largest no: already recorded.
Type: Alphanumeric/Numeric
It can be changed at any time, however changing from a no. numeric only is allowed only if all current
suppliers no are numeric.
Next automatic no: Top value to be entered at the time of financial option setup for generating unique
sequential supplier no.
Payment terms: Immediate/No of days (used to car due dates, discount dates for each invoice entered in
invoice workbench.
Electronic: Information about supplier payment is captured by magnetic media which is delivered to a bank
through electronic data interchange gateway. The banker uses this information to electronically to the
fundamentals from our account to supplier account.
Check: Written order to bank to pay a specific sum of money on demand to a specific person/order.
Wire: To telegraphic is used to manually record. Receipt acceptance days: It refers to grace days to avoid into
being added to the invoices for delayed payments. If we enable an option to recalculate schedule payments at
another level, payable option approval recalculates the invoices due date based on this value also.
Always take disc: Payables always take disc from my supplier no matter when to make payments.
Pay alone: We can pay each invoice by each payable document. If we don’t enable, we can combine payments
of several invoices & pay by single payables documents.
Options defined at this region were default for purchase region from the supplier in supplier window.
The inventory organization field is applicable to purchasing module.
Ship to location:
Ship via : Default mode of the operation of freight carrier which will duplicate usually to the supplier
like road, air, rail...
Freight on board (FoB): Specify the term at which the vendor liability classes
Whether it is prepaid /paid by vendor or pay & collect it from supplier/no freight terms.
Encumbrance: It means year making/reserving funds from Out of a budget for a specific use. Encumbrance in
application is defined in this region. Controls specified here will be used for payables & purchasing In
Purchasing modules, it is used for requisition &purchase order. In payables, encumbrance for unmatched
invoices & also for variance, it matches invoices & purchase order.
Use requisition encumbrance: If you enable this you got to ‘Choose’ the encumbrance type. And the
encumbrance type for the requisition is ‘commitment’.
Reserve @ completion: If it is enabled, encumbrance can be created by their preparing requisition, otherwise
only the approvers of requisition can create encumbrance.
Use PO encumbrance: You got to choose its encumbrance type, PO& the normally obligation Encumbrance for
PO journal for this purchase definition at this level.
Invoice encumbrance level: Encumbrance type to be used for creating encumbrance journal for invoice.
TAX:
It defaults to invoice tax code option in the supplier window. If you choose a tax code for which we have
defined different tax for different effective dates, payables will automatically use the tax applicable for each
invoices based on invoice date.
VAT Registration: Member state: Location of outcomes to find out whether the company is located in the
member state of the E.U.
Flat tax type discount as recoverable for reporting, purpose split ‘taxes into’ recoverable& non
recoverable lines, automatically calculate tax &profit rate it back into GL account of the taxable distribution.
Specify a rate that will default to tax recovery rules & tax codes which we define.
Calculate rules:
Precision: Enter a one digit whole no: to indicate which decimal place you want to round automatically to
calculate tax amounts in payables & purchase.
The smallest monetary unit you want to round the tax amount.
Human resources:
Business group:
Define your company as a single business group/there is several major Branches/operating unit each
may be defined as a business group. While defining employer, specifying the business group to which
they belong.
Expense reimbursement address: Home/office
The default employee address to which the reimbursement object is to be specified. The value entered
here defaults to new employees you create in the persons window when you can optionally over side
it.
Use approval hierarchies: On HR you define positions & their hierarchies.
The job of individual within an organization.
For e.g.: Account clerkjob
Enable it to define approval pass for documents within purchasing.
Employee number: Method Manual/Automatic
Payable Options
It will simplify supplier entry, automatic payment processing, invoice entry. Most of the options can be
updated for future transaction any time. There are specification payables modules only. There are 14 tabs
/region.
1. Accounting methods,
2. Transaction to GL
3. Payment accounting
4. Currency
5. Supplier
6. invoice
7. matching
8. interest
9. Expense report
10. Payment
11. Invoice tax
12. Withholding tax
13. Tax defaults & rules
14. Reports
Setupoptionspayables
In payable options window we can define control options & default used throughout payables.
Secondary—cash
Accrual accounting is mandatory in certain countries. Secondary accrual accounting. Set of books (Ledger in
R12) is maintained in few countries in Europe that too on cash basis in order to meet sales tax reporting
requisition.
Here sales tax output is by deducting the input tax i.e. tax on supplier invoices from output tax i.e. tax On
customer invoices. Input tax can be set of against opening tax only on efficiency an accruing them in the books
of account as evidence of payments. It will be captured in separate books maintained on a cash basis & field
along with the return.
So the transaction in payables can be journalized in to GL Set of Books (Ledger in R12) based on two type of
accounting methods.
For the primary accounting method based on accrual basis, the GL SET OF BOOKS (LEDGER IN R12) will
automatically default from the SET OF BOOKS (LEDGER IN R12) .
Secondary SET OF BOOKS (LEDGER IN R12) can be optionally maintained internally even if is not mandatory.
But you have to specify the basis on how to journalize the transaction. The options available are
accrual/cash/none.
To create multiple liability lines in payable in such a way that all balancing segments are equalized in
terms of debits. Credits automatically during invoice validations process.
None/Balancing/Accounting
Unbalanced journal:
Dr Cr
Balance:
Account
The offset entries are created only at the terms of invoice validation process. These types of offset
entries are created for prepayment entities to in case of company want to prevent prepayment application.
In detail
Summarize by accounting date
Summarize by accounting period.
In detail
As many accounting lines (as number of lines in each invoice) transactions are transfered to GL.
Summarize by accounting period: It will create the least no of lines because it will sum up a pair accounting
for a part period &there one line would be generated.
Applicable only if we have a reporting SET OF BOOKS (LEDGER IN R12) when we run payables to GL for our
primary SET OF BOOKS (LEDGER IN R12) , TR also takes place in repository SET OF BOOKS (LEDGER IN R12)
without any explicit program for the same.
If you don’t enable transaction when Transfer to GL by the program Transfer to GL will not import it to GL, it
will be in the interface. In GL we have to run the program to import it from interface if enabled, the latter
program will automatically run.
Above control if you want to override at the program submission enable it, if you enable it at the time of
submitting payable Transfer to GL in the parameters you can override this submission whether to submit
journal import/not & change from Transfer in details to summarize by accounting date or period.
Payment Accounting
When both are enabled, it gives the functionality to allow reconciliation accounting .Payment entries that will
be created when payment is issued.
Future dated payment: On the date of issue AP liability account or to future dated payment account
To cash clearing account. They are unreconciled payment entries once payment is cleared, cash clearing
account can be converted to cash account after reconciliation in Cash management module.
Accounting for gain/loss: Foreign currency transaction account for gain /loss when accrual/cash basis is used.
Cash basis: Account for currency gain/loss but payment time & payment clearing date. For future dated
payment, it will account for payment issued date & payment maturity date & payment maturity date &
payment clearing date.
Accrual basis: Between the invoice date & payment issue date.
Invoice date
Pay issues date
Pay maturing date
Calculate gain/loss:
Currency
Calculate user exchange rate : If invoice/payment is entered in a currency other than functional currency or an
associated fixed rate currency I.e. euro derived currency.
Corporate A standard make rate by senior management for use throughout the organization
Reporting:
If functional currency amount is known for any foreign currency invoices, then one can enable this option for
the system to calculate the user exchange rate. It is used mainly to import invoices through payables open
interfaces.
Loss 6844
Rounding 6826
Supplier
Invoices tolerance: To allow variance between invoice, purchase order receipt & tax information, you can
specify here the percentage based/amount based tolerance for suppliers.
Pay Group: Normally defined in purchasing lookup. This is to assign pay group for any new supplier for
payment in batches& reporting purposes (standard/employee pay group)
System/goods receive/invoice/invoice received (It decides the date based on due date basis/discount
date basis & prepare the schedule for payment).
Invoice: Terms date will be decided as invoice date & account due date will be calculate.
Pay date basis: Discount/due – override @ supplier & supplier site .If invoices are to be paid by exercising
discount option, then the schedule payment is as per the due rate. If they are paid based on due date, then
system schedule payment as per due date.
Internal/supplier/Negotiation: Supplier/Standard
Supplier Negotiation: Supplier will bear the book charges at negotiated rate.
A use pay at region – supplier site will default as tax region same will be default in the distribution lines
level.
Income tax region: Only when both check boxes are enabled overrides at invoice discount level.
Invoice (tab):
Use invoice approval workflow: If disabled, Can’t submit invoice for approval to higher hierarchies.
Workflow process: Approve manually at the user level can forcefully approve even if the approval
workflow process is not complete.
Automatically create fright discount: If you enable that check box, it uses the freight distribution for the
invoice from the next default option freight account. Freight discount will appear as a single line in invoice.
Confirm date as invoice no: When invoice no is not entered, then date will become the invoice no, In
such situation a caution in popup window will come.
Allow online validation: Users can select invoices for validation in the invoice workbench to the invoice
action window/those validation buttons is invoice batches.
Allow document category override: For invoices besides recording invoice no in case us to wants a
special sequence numbering process for entity of invoice in invoice workbench.
They can adopt a document category sequence numbering you have to enable this checkbox & can use add
category sequential numbering.
GL date basis: Basis on which invoice will have the default accounting data.
Invoice date
System
Goods record/invoice date
Goods record/system date
Prepayment:
Settlement date: No of days to be adapted to the system date for calculating the date which prepayment can
be settled/ applied against any invoices like the prepayment will not be available for application/settlement
against any invoices.
Disabled - prepaid account code combination i.e. defined in the supplier site would be defaulted for the
prepayment line discount.
Enabled- When matching which PO/Receipts, the prepayment item discount lines will be built taking into
account, the natural account segment from the supplier site prepayment account & other segment from the
responsible purchase order discount lines/receipt discount lines.
Matching
Final match of an invoice to the PO is done by enabling it. Here for any subsequent invoice matched to
PO after final match, the system hold will be placed for want of PO equivalent & this hold cannot be released
manually.
Enable: Matching of invoice to PO discount matching of 1/more PO discount with an invoice is possible
here disabled. Payable will allow only matching an invoice to a full PO shipment.
Enable- You can override an account for invoice discount created by matching to a PO matched invoice
discount account is overridden in invoice workbench/any imported invoices. In case of using encumbrance
accounting/perpetual receipt accrual/PO is project related/PO discount is inventory then such overridden
option is not possible.
When matching an invoice to PO payables automatically to the descriptive Flexfield information from PO to
invoice if this check box is enabled provided the structure of Flexfield in PO discount is the same as that in
invoice discount.
Interest: Controls & options for calculate of information for override invoice/others.
Allow interest invoice: Enable – system will calculate information for override invoice & automatically
generate interest invoices.
Prorate access overdue invoice: Enable – prorate the interest amount of the overdue invoice access item
discount.
Minimum interest amount: For calculating interest is below this value, and then payable will ignore the
calculate interest does not generate any interest invoices.
Interest invoice account codes: Expense &liability Incase if the second checkbox above is disabled, then a
single line discount is created for the total interest & overdue invoice with this account code combination.
Expense 6820 Liability: whenever allow interest invoice is enabled, then you have to specify the interest
invoice liability account code combination in this field -2250 it is used as prepayment process.
Expense Reports
Default template: To enter details of expense of employee is form/template with regular expense
codes/names can be created & used as default template have this will appear in expense report window. The
default value/codes/names/which specified can be overridden at the expense report window.
Payment terms: Select a default payment term for expense report payment. It will be assigned to the
employee when the employee is made as a supplier during expense report/import.
Employee can be grouped for expense report reimbursement purpose & the pay group can be created
at purchasing lookups which can be attached here.
Apply advances: To apply advances given to the employee against expense report. Override this option at
expense report window.
Automatically create employee as supplier: At the time payable expense report else he has to be defined in
the supplier window with classification as employee & by linking employee name & number.
Hold unmatched expense report: Unmatched expense report invoices will be placed on hold during invoice
validation.
Payment
Bank account: Default internal bank for our company. It will be used for payment to supplier. It will be
default in payment window & payment in batches.
Payment Batch limit: Maximum amount payable for the payment batch, if the payable amount is the
batch exceeds this limit, the system shows a warning message but the excess can be optionally
allowed. This limit is per payment batch.
EFT user no: EFT customer identifying number: allocated to you by user.
Banker/clearing organization. It is incorporated in the pay document sent to buyers.
The number given here is added to default pay through date while initialing a regular payment batch.
No of days specified here are the days but the regular payment date & default pay through date. In case it is
10, payable add to the system date & then arrive at default pay date when we run a payment batch.
Separate numbering of payments as voucher number: Besides payable document number sequential
numbering can be assigned for payment & the payment voucher will be accordingly numbered sequentially. If
you want, you can define a different sequential numbering & override the default setup, if the checkbox is
enabled.
DISCOUNT:
Exclude task from disc calculation: Enabled – tax amount will be subtract from invoice header amount
discount will be calculated.
System account: All discounts Taken will be credited to the system disc taken account define in the
financial option level.
Prorate expense: Prorate any disc across invoice discount lines, if exclude tax from discount line is
enabled, then disc will prorated across discount expense lines only & not for tax lines.
Prorate task: Prorate to tax discount line only as percentage of the discount amount equal to the
percent of tax distribution.
E.g. tax distribution line 20 % of the total distribution amount, then payable prorate 20% of the discount
amount against tax lines, only the remaining 80% of discount amount is accounted as discount taken account.
SINGLE PAYMENT:
Allow pre date: We can create payment date prior to system date.
Allow void reissues: Of checks, in cases a check is spoiled, you can void & reissue another check bearing
new cheque number in line of the same cheque through payments.
Allow address change: Change address of supplier site at the time of payment instead of sending it to
supplier site adds as per the invoice.
XML PAYMENTS:
Automatic confirmation:
If System Company uses XML payments, and this check box is enabled then system will allow automatic
confirmation of payment batches based on process payment requirement. XML message from in book
indicates that xml payment was successful. If it is enabled, the user will receive workflow information at the
confirmation of the payment batch.
Normally for direct remittance to supplier bank account, the supplier site will be having a default
primary bank account. Enabled – in the payment batch window, the user has got an option to change the
remit to supplier bank account.
BANK CHARGES:
Use bank charges: Enabled – you can enter bank charges provided in the supplier region of the payable
option bank charge bearer option is exercised.
INVOICE TAX
We can enter the tax amount of the tax code of the invoice at invoice header level itself at invoice workbench.
When tax is accounting like this, then distribution lines are generated based on invoice amount after
subtracting the tax amount. Not applicable for imported invoices/for credit & debit memos in invoice
workbench.
Use automatic tax calculation: Based on the tax code tax calculation automatically without entering the
amount.
Header – Header level amount is split into line & tax amount.
Tax code – Based on tax code attached at header level.
Line – This is always inclusive.
Line: - Tax amount calculation on distribution line amount, It can be inclusive / exclusive if inclusive then check
box includes tax in distribution line level should be enabled; otherwise it will be exclusive tax.
Tax code: Calculating tax more/less in the same way as line level tax except that at the time of calculation of
tax amount, tax lines which the same tax codes can be grouped & then rounding of tax is done .Rounding off is
not done on each tax line but done in tax code grouping level only.
Allow calculation level override: The default level of tax calculation selected in calculation level can be
overridden at the supplier site level only if it is enabled.
Distribution amount inclusive tax: - tax calculation at line level/tax code level at inclusive tax then it is to
be enabled.
Allow override: if the above check box is enabled, then to override the default method of calculation of
tax at supplier site level, enable this,
WITHHOLDING TAX
Use withholding tax: For supplier & to automatically calculate the same for supplier based on withholding
tax groups.
Allow manual withholding: You can enter withholding tax manually in invoice distribution tax window.
Tax group: Specify the default withholding group for all supplier inclusive new suppliers only if a use
withholding tax option enabled.
Include disc amount: You can make payables to inclusive discount amount also for calculation withholding
tax amount.
Include tax amount: You can include invoice tax amount also for calculation of withholding tax.
Never: If the company does not want to calculation withholding tax & create
Invoices automatically, then enable this
At invoice validation time
At payment time.
Enable payables to automatically create distribution types for withholding tax .for 1 to 99 supplier
under automatic withholding tax calculation options to report on federal IT with held for those supplier. In
case of manual withholding tax the amount is to be entered manually for reporting.
Enforce tax from PO: To select tax from PO shipment PO i.e. is matched to the invoice.
ACCOUNTS RECEIVABLE
BUSINESS FLOW:
Generate sales order: Then Generate sales order based on “credit limit” of the customer and
availability of inventory.
Based on the sales order, Invoice is raised with appropriate “payment term”.
Receive the payment from customer: payment is received from customer.
Remit (or) “factor” receipts with bank
The payment either received is remitted or factored with bank.
If payment from customer is not received then collection activity is initiated.
CUSTOMER
SALES INVOICE
ORDER
Purchase order credit limit & payment
(po) stock term
yes
REMIT/FACTOR PAYMENT
RECEIPTS
no
Collection
activities
AR FLEXFIELDS:
Application: Title:
Sales tax location
receivables
flexfields
PROMPT
It is primarily used to define the reporting territory and capturing territory information.
It also facilitates customized reporting on territory information with respect to sales person, customers
and transactions. The usage is optional in accounts receivables.
Application: Receivables
Click
Segment
Information flow:
1) System option:
One has the system option to specify the following. (i.e.) ones accounting method Set of books
(Ledger in R12), tax method, an accounts, customer and invoice parameter, further, one has to specify
how AUTO-INVOICE and AUTOMATIC RECEIPT Program run
2) Customer Profile class: One can define the customer Profile class to group the customer accounts
with
4. Credit limits,
5. payment terms,
6. statement cycles,
7. invoicing and
8. Discount information.
One can also define amount limits for one’s finance charge dunning statements for each currency in
which one transact this to the customers. Then this Profile class is assigned to the customer. So that it
will flow to the customer standard.
Customer standard: Where one can enters the details of the customer.
Customer Address Level: Then from the customer standard level, the information will flow to the
customer address level and further flow to the business level.
Customer business purpose level: Where bill to and ship to address details are given.
3) Transaction Level:
The information will flow to the transaction level where the transactions are enabled.
System Options:
Receivable system options is used for setting up values which flows to lower level in the
information hierarchy system option is made up of tabs.
1. Accounting tab
2. Tax
3. Tax Defaults and rules
4. Trans and customers
5. Revenue Policy
6. Claims
7. Miscellaneous
Accounting tab:
If automatic journal import is enabled, to import the batches of transactions to posted once in
general ledger.
One has to enter the number of days per posting cycle to avoid system over load. One has to
enter the number of days.
E.g. 10 days is given here but the number of accounting days is 30, then there are three cycles.
If header rounding account is given then the header level rounding check box should be
enabled.
2. Tax Tab:
Rounding Option
Precision 2
One can enter either sales taxes (or) value added taxes.
So that receivable uses this tax method.
Sales tax is based on the location of the customer receiving one’s goods and services / whereas
value added tax is imposed on the value added to each goods and services at each stage of
supply.
One has to enter the one’s sales tax location Flexfield structure state; country; city. It is used as
Predefined location flexfield structure.
One has to enter the postal code range that will be default to tax, location and rates window.
Address validation: One can make the system to have the validation check on the address
format. Three values
1. Error
2. No validation
3. Warning
Invoice Printing: Select the method to print tax amount on the invoices.
One has to enter the sales invoice Tax registration number for the same to be printed on the invoice.
Tax vendor views is used to calculate the tax select one from the invoices.
Enable inclusive tax used checkbox. When one wants to use inclusive tax codes.
Calculation level field: default line level. Line, header, one can opt to calculate either at line level or
header level.
The system will calculate tax at each line level. If it is header means one will calculate tax for each
invoice for each rate.
Rounding rule-> up, down, nearest.
o Up -> round the calculation at the greater amount
o Down -> round the tax calculation at the lowest level
o Nearest -> round the tax calculation at the nearest decimal point (or) integer.
Reporting currency will have the same currency US dollar as your reporting currency.
If allow over ride is enabled, one can specify the tax calculation and tax rounding both at the customer
level (or) site level.
Tax code
Exception Rates
Use customer Exemptions
If enforce tax from revenue account is enabled then it is optionally set up one’s system to
ensure that the tax code from one’s invoice lines “is same” as the tax code one has assigned to
the account segment for one’s “revenue account”.
Enable calculate tax on credit memo during auto invoice if one want to calculate tax on credit
memo automatically during the importing of credit memos using auto invoice.
Tax code defaults -> one can enter the hierarchy by entering the sequence number for each.
This hierarchy determines the order in which receivables derive the default tax rate when one
manually enters transaction or during running “auto invoice Program”.
Exception rates:
Enable Use customer Exemptions to one can include customer exemption for when calculating
tax for one’s transaction.
Enable use item Exemption one can include item exemption for calculating tax on one
transaction.
Enable use item tax rate exception when one uses tax rate one define for specify Product for
based on customer ship to address
Tuning segments
Territory : Area
Customer
Automatic Customer numbering
Automatic site numbering
Create reciprocal customer
Enable allow change to Printed transaction – one can update the transaction that have been Printed.
Enable allow payment of unrelated transaction – one can allow receipt application to debit
items of unrelated customers (or) to allow bills receivables assignments to transaction of
unrelated customers.
Enable allow transaction deletion – one can delete transaction after they have been saved.
Enable allow billing number – By doing this receivable assigns a unique invoice billing number
when one print a draft or final version of one’s consolidated billing invoices.
One can select the point when invoices generate a document number for ones transaction.
There are 3 document number generation level.
None
When completed
When saved
“Auto invoice”
Process of transferring the transactions from other system (OM 0r Legacy system) into AR.
One has to enter the accounting flexfield, system items and territory flexfield segments that are
most often selected by auto invoice.
Enable automatic customer numbering –by during this system will assign a unique number to every
new customer.
Enable automatic site numbering – system will automatically assign number to one customer business
purposes.
Enable create reciprocal customer – by doing this one can create the reciprocal relationship during
customer.
E.g. A and B are customer .A pay for B likewise B can Pay for A. Now A and B are related.
Miscellaneous Tab:
Split amount Discount basis: Invoice amount
2500
Auto cash rule set
standqrd
Days in day sales
90
Outstanding calculation
Auto receipts
By specifying split amount, the system will determine the number of invoices over and under this
amount as well as the total amount outstanding.
Discount Basis -> Receivables will use this value (lines only) as default discount basis in payment terms
windows other discount basis.
Line only
Invoice amount
Lines, freight items and tax
Lines and tax, not freighting items and tax.
Lines only -> The system will use only the line amount of one’s invoices for calculating the discount.
Lines, freight item and tax -> The system will use the line items, freight and tax of one invoice but not
the freight and charges at the invoice header level as the basis for calculating discount.
Lines and tax, not freight item and tax-> The system will use the line item and tax amount but not the
freight items and tax lines for one’s invoices as basis for calculating discount.
Invoice amount-> system will sum the tax, freight charges and line amounts of one’s invoice and use as
basis for calculating the discount.
Days in day’s sales outstanding calculation: The number of days when one enters here will be used
while calculating one’s conventional days sales outstanding for the collection effectiveness indicators
report.
Conventional days
Sales outstanding = Total outstanding receivables DSO Days
Total sales for last DSO days
DSO days -> “Days outstanding”
Sales credit percent limit: One can specify the limit on the percentage of revenue plus nonrevenue,
sales credit that sales person can have on any transaction line.
Write-off-limits per Receipt -> one can specify the range for write-off-amounts.so that one cannot
write off less than or greater than the amount one specify here
Enable accrue interest -> receivable will update the balance to the finance charges of our transaction
that are positive.
Enable require billing location for receipts -> receivable will associate a built location to cash receipts.
Enable allow unearned discounts-> receivables will allow the customer to take discounts even if he
pays after the expiry of credit period allowed.
Enable Print remit to address-> when one enables this, receivable will Print remit to address on the
customers statement.
Enable discount on partial payment -> Receivables will discount on partial payment that is the
customer is making us payment which is less than the amount outstanding for a transaction.
Enable Print home country -> System will print the home country on one’s invoices and statements.
Enable trade accounting installed -> When one wants to use the trade accounting features then one
has to enable the check box for this one has to use the responsibility of “AR trade accounting”.
Minimum refund amount -> Auto invoice automatically, create refunds for credit memos that are
imported against paid invoices Provided the request amount are equal or greater than the minimum
amount that one specify here.
Credit card payment method -> By selecting the default payment method, one can pay the transaction
through credit card.
Bank account payment method -> “ACH” one has to attach the default payment method which is to be
paid on the “Automatic clearing house” bank account transfer.
Require Sales person -> one can enter the sales person while entering transaction.
Auto receipts:
Invoice per commit -> one has to enter the number of invoices. One want to Process in the
automatic receipts Program.
Receipts per commit -> One has to enter the “number of receipts” one wants Process in the
automatic receipt Program.
Change back due date -> one has to enter the default charge back due date. The options are.
Open invoice date: use date of the invoice (or) debit memo as default date.
Receipt date: use “date of receipt” one enters as default date.
Default country -> Receivables will use country one enters here as the home country for tax
calculation, flexible bank structure, flexible address format and tax country and tax registration
number validation.
Source of territory -> Receivables will use one territory enter here to default into sales person
transactions and customer window.
Values are
Bill to site -> Receivable will use the customer bill to address as default.
None -> need not enter default territory.
Sales rep -> receivables will use the territory which has been assigned to the customer as the
Primary sales person default.
Ship to site -> Receivables will use customer ship to address as default.
Application rule set -> One has to attach the application rule set which will determine the
default payment steps. When one use the application window post the cash to apply receipts.
Line and tax Prorate
Line first – Tax after
Prorate all
First selection :
Section Selection:
Third selection:
7) Claim tab:
Lock box and post quick cash claim handling
Unmatched remittance line:
Negative lines
Positive lines
Customer Profile class enables one to default many of the values such as collectors, Receipts
parameters, statement parameters, dunning parameters, payment terms parameters, finance charges
parameters, invoicing and consolidated billing format.
1. Collectors
2. Receipts
3. Statement
4. Dunning
5. Terms
6. Finance charges
7. Invoicing and consolidated billing format
1. Classification
3. Analyst
4. Tolerance
Currency rates and limits. They need to maintain one’s customer and one can group customer with
similar characteristics into one’s particular class.
Navigation:
Collectors Terms
Statements Invoicing
Send statements Tax Printing European tax format
Send credit balance
Grouping rule default
Cycle monthly
Consolidated billing formats
Dunning Enable type
Send letters detail
Letter set
Standard
Classification
Analyst
Tolerance 0%
Credit check
Credit Profile
a) high risk
b) low risk
c) moderate risk
2. Periodic review cycle -> This review cycle specifies how often “one has to perform credit review” in credit
management.
3. Analyst -> One has to select the default credit analyst for the customer Profile class to do the credit review
4. Tolerance -> One has to enter the credit check tolerance (ie) percentage check over the credit limit.
When credit check enabled, oracle order management will check the customer credit before creating a new
order.
Finance charges -> this interest rates which will be the customer
Max interest per invoice -> receivable will charge only if the calculated interest amount is
greater than the amount entered.
Min customer balance for finance charges -> receivable will apply interest only if the balance is
more than the one specified here.
Min invoice balance for finance charges -> receivable will apply interest only if the positive
invoice balance is more than the amount one specify here.
Min receipt amount -> Receivables will generate automatic receipt only when the receipt
amount is more than the one specified here.
Min statement amount -> receivables will generate the statement for the customers only when
the customer amount balances is more than the one specified here.
Min dunning amount -> receivables will generate the dunning letter for the customer only if the
positive balance is more than the amount one specified here.
Min dunning invoice amount -> receivables will generate the dunning letter for the customer
only if the debit balance of each positive item is more than the amount one specify here.
Credit limit -> one has to enter the credit limit here.
One can enter the location and the associate tax rates in the tax location and rates window.
1. State
2. Country
3. City
Location
Rate
Just defined
Location Find
PR country PR country
RATES
Find
Defining customer:
Generally customer is one who we enter transaction for sale of goods and services.
Where we
b) Address level
Bill to
Ship to
Statement
Dunning
Legal and marketing
Profile transaction
Customerstandard.
The customers balance and create journal ledger transactions. One can define the following transaction types,
namely
Invoices
Debit memo
Charge back
Credit memo
Commitment
Deposit
Name
Class
Open receivables Post to GL
Transaction states
Allow freight
Tax calculation
Creation sign
Natural application only
Allow over application.
Allow freight
End date:
Bill receivables
Chargeback
Credit memo
Debit memo
Deposit
Guarantee
Invoice
Open receivables and post to GL are enabled by default if open receivable check box is disabled, then
the customer balance will not get updated.
If post to GL ids disabled, the balances will not be posted to GL.
The open receivables and post to GL check box is used to approve hierarchy.
Printing optionPrint (or) do not Print
Transaction status is required to implement the invoice approval system
Any one check box should be enabled both check boxes add control to determine how applications can be
effect balances remaining on a transaction.
If natural application only check box is yes and allow over application is NO then even if one receives excess
money than the balances due from the customer, then it will consider only to the balance due not the excess
amount.
Open receivables and post to GL is seen and now we see the relevant transaction
Account Manager
Transaction Sources
It controls the standard transaction types which are assigned to the transaction whether the
receivables automatically numbers one transaction batches or not
Name
Numbering details
Copying the numbers
Transaction source:
Description PR source
Active
Last number : 99
When one want to use the same number for both document number and transaction number
then one can enable this check boxcopy document number to transaction number.
When one want to copy invoice, transactions information flexfields data to a related credit
memo that use this copy transaction information flexfield to credit memo check box.
To enter the transaction, one can use the transaction window to enter invoices, debit memo; credit memo and
commitment .one can also query and update one’s transaction in the transaction window.
1. Source
2. Transaction number
3. Class of transaction
4. Type of transaction
5. Date
6. Currency
7. Terms
8. Ship TO details
9. Bill To details
1. Item select
2. Description
3. Give the unit of measurement
4. Quantity
5. Unit Price
6. Amount
7. Tax code
Header level:
Line level:
a. Entering the transaction information with freight either at the header level or line level when freight
charges have been incurred
for all the invoices lines, we enter the freight charges at the header level. At the header level we enter
the header level details header level freight, line level details and finally complete the transaction.
b. When freight charges have been incurred for specific invoice line, then we use enter freight charges at
lines level. At the line level, we enter the header level details; line level details line transaction freight and
finally complete the transaction
Sales invoice
Customer name:
2 Tax
3 Freight 1570
Total: 76570
Debit memo:
Debit memos are used to bill a customer for additional charges in relation to a previously invoice
sale.
Memo lines:
These may be other range of situation in which we have to use debit memos. Such when one wants
to bill the customer for charges, freight and tax in such situation, one can use memo lines.
Attach this memo line by creating a transaction in the transaction window and attach this memo line charges
in the description of the line item window.
In more tabs attach another transaction in the cross reference and complete the transaction by clicking the
complete button.
2) Credit memo:
A credit memo is used to reduce the charges which are related to previously invoice sale. A credit memo
decreases the account balance by the credit memo amount.
Click details to view the details of the amount and we can see the negative amount to indicate the reduction
amount in customer balance.
Retrieve the existing transaction with class as invoice and immediate payment term and balance due is
10,000.
Credited transaction
CREDIT MEMO
NUMBER 1052
Reason
Currency: USD
TRANSACTION MORE
AMOUNT
0.00 0.00
Deposit is an advance from customer against supply & goods. The customer agrees to
deposit an amount on the ordering of goods.
Receivable Account
Offset Account.PR-110-1210-0000-000
GL Account Description PR-110-8300-0000-000
Commitment Tab.
Effective date 10-nov-2011
Amount.5000.00
Item.
Memo line
Description Advance Payment
Transaction
The invoice Number 1034 is entered on 10-Nov-2011 or Date is 10-Nov-2011.
Click save and close.
See, you have entered a transaction with deposit as class but now enter the transaction with class as
invoice and Line amount as 20,000.
Now attach the Deposit Transaction Number 1034 to the Commitment field in the main window.
Commitment->1034
Click save and complete.
Commitment –Guarantee:
A guarantee is a documentation of a Promise made by the customer to obtain the goods from the
organization. In this case, no money is received from the customer.
One can print a single monthly bill, which includes all customer transaction for a particular period.
In this case, we will go for a consolidated billing invoice. There is no need separate invoice foe each
transaction.
Enable show billing in system option -> Trans & customer tab.
Attach the Proximal payment term in the customer Profile class.
Enable consolidation billing formats in customer Profile class -> save the class.
Enter a transaction with Proxima payment term.
Enter more transaction by using action-> copy to from the menu bar. Or
Run the Program –Print draft consolidated billing invoice.
After selecting the entire Prerequisite enter the regular invoice transaction with payment term
as Proxima payment and give the line details and complete the transaction.
Select action->copy to from the menu bar, it displays the copy transaction window. OR
Transaction -> copy transaction & give Tran’s number.
Copy transaction (vision operation)
Model transaction:
o On saving, it will generate the 5 new transaction number generated having different
transaction date, since the number of days is 1, and also it creates a new request ID.
Now, run the Program->consolidated billing invoice.
Click Print document-> consolidated billing invoice.
It displays a new window. Select a single request and click ok.
This allows submitting an individual request.
It displays the Print consolidated billing invoice window.
Print consolidated billing invoice.
Run this request.
Name:”Print draft consolidated billing invoice:
On selecting this, it will create new window-parameter
Parameters
Customer 4090 PR customer
Bill of date 9684 PR customer
Transaction batches:
Source: PR sources
GLdate: 1- nov-2011
Currency: USD
Status: new
Comment
Partially purged
Totals
Count amount
Control 3 300000.00
Actual 3 300000.00
Difference
If control total is 3 & amount 300000 then enter 3 transactions by clicking. TRANSACTION button & the total
amount of 3 transaction should be 300000.00 if it is more than 300000 on then we can change the amount.
Control 3 300000
Actual 1 100000
Difference 2 200000
Now change the status manually from new to out of balance, till the difference is zero.
After entering 3 transaction & the amount equal to 300000.
Control 3 300000
Actual 1 100000
Difference 0 0
When we change the status to OPEN the actual count & the amount is equal to the control count &
amount.
We change the status to CLOSED when the actual count & the amount of the transaction. Equals
control count & amount & each transaction in the batch is closed by applying receipt against it.
Click TRANSACTION SUMMARY to view the individual transaction.
Fixed duration:
Variable duration:
One can use the deferred accounting rule by enabling the “deferred revenue check box” in the
INVOICING & ACCOUNTING RULES.
Window when one defines this rule. One can use this deferred accounting rule to recognize the
revenue by different %s over a period of time by using action wizard.
One can use deferred accounting rule only for invoices that assign the bill in advance invoicing
rule.
FIXED
NAME TYPE
PERIOD NO .OF PERIOD
VARIABLE
NAME TYPE
PERIOD NO .OF PERIOD
DEFERRED
NAME TYPE
PERIOD ENABLE DEFERRED REVENUE
Deferred revenue
Period % date
1 20
Total 20
Save the accounting rule;
The number of periods will be sat to 1 automatically.
Deferred revenue
Period % date
1 100
Total 100
Save the accounting rule;
Invoice rule-in arrear with accounting rule fixed 1 has to use this rule to recognize the
receivable at the end of the revenue recognition schedule.
Enter a transaction:
Click saves & close this transaction while saving gets a note saying
OK
OK
Click OK & close the lines window & complete the transaction.
Name: revenue recognition on selecting this it will ask for parameters window
Parameter
Go to transaction num 1057 in the query mode of transaction window & execute by Pressing ctrl+F11 key.
CLICK SAVE. On saving it displays a 2 note as we get while entering Previous invoices [(i.e.) in arrear fixed date
invoices]
Click save, it displays 2 note click OK for those 2 notes & close the lines window.
Run the revenue recognition Program to view the journal entries.
Query the transaction 1056 & view the journal entries from the tools menu.
2) Prerequisite: at the system option level. Enter the sales credit Present limit (100) & enable require sales
person in sales credit Present limit (100) miscellaneous tab.
3) Enter a transaction
THE REVENUE IS NOT ALLOCATED TO TRANSFER A PERCENTEGE OF UNEARNED REVENUE TO REVENUE IN THE
REVENUE ACCOUNTING WINDOW.
Select customer.
Click find.
It display revenue accounting & sales credit window revenue Accounting & sales credit-PR customer
RULE DURATION
PR DEF VAR RULE 2
LINE DISTRIBUTIN
Here we select % & total value of selected lines radio button & click next
Another window is displayed.
Step 5:
Amend the GL date if required & select a reason for the revenue adjustment.
GL DATE : 1-NOV-2011
TYPE: EARN REVENUE
REASON: REVENUE ADJUSTMENT
COMMENT:
CANCEL BACK FINISH
Select reason & click FINISH button.
RULE DURATION
PR DEF VAR RULE 5
LINE DISTRIBUTIN
CANCEL SAVE
Clicks save.
On save, we can see the adjusted 50% from unearned revenue to revenue for the month of 1-nov-
2011.so, I have transfer 50% amount from the unearned revenue to revenue.
GL DATE AMOUNT % CLASS ACCOUNT Action
number
Then in revenue accounting & sales credits window ,we can see in the revenue item as
scheduled 5000
unscheduled 5000
In the revenue Accounting & sales credit window. We can see revenue
scheduled 5000
unscheduled 0
RECEIVABLE PR-000-1210-0000-000 1
0
0
0
0
REVENUE PR-000-9003-0000-000 5000 1
REVENUE PR-000-9003-0000-000 5000 1
ROUNDING PR-740-7827-0000-000 0.00
DISTRIBUTION
TAX PR-000-2520-0000-000 0.00 1
1
UNEARNED REVENUE PR-000-2520-0000-000 5 1
0
0
0
UNEARNED REVENUE PR-000-2520-0000-000 5
0 1
0
0
UNEARNED REVENUE PR-000-2520-0000-000 10,000
1
Enter the transaction in the application window with source, class as invoice, customer, .give
the date, GL date.
Click LINE ITEM button give the item details such as quality, unit Price & amount field is filled.
Select the tax code as LOCATION. Tax code = location(location, exempt)
Select tax button on the button on click this tax button, tax is calculated at the rate of 12%.as
we defined rates for state as 5, country as 5, city as 2, tax will be calculated for the particular
transaction.
Close the tax& line window & complete the transaction.
We see the calculation of tax follows
Balance due
Line 10000
Tax 1250
Freight 0.00
Charges 0.00
Total 11250
SUBTOTAL = 0.00
TAX (AMOUNTTAXCODE/100)
10000PR BEFORE DIS /100)
100005/100=1000.00
IF PAYMENT is made within 15 days we get 5%discount as we attach PR 30 DAYS D as payment
term-PR 30 days with discount.
Here tax is calculated before deducting the discount.
Payment term should be “some payment term” for which discount have been defined.
Define the tax code
Setup > tax codes
Tax codes & rates window gets open.
Rate tab
Tax code Tax Taxable basis Tax Tax Sign
type rate amount credit
PR before SALES BEFORE 10
DIS TAX DISCOUNT
EFFECTIVE TAB
Tax code From To Enabled
PR before dis 01-jan-2011
Receipt setup:-
1. Receipt setup, cheques, bank transfers and all other forms of receipt payment received from a
customer is called receipt.
2. Primary function of oracle receivable is to receive payments against the open invoices. The payment
received has to be applied against the invoices.
One can use the same bank details used in the payables or one can define your bank and enter the bank
details namely the name of bank, branch, and account number. One has to enter the account codes under the
receivable options.
Updating of GL accounts
Finally attach the formatting Programs.
Save the receipt class.
Define the receipt class in application window: Navigation: Setup; Receipts; Receipt classes.
---Receipt class-----------------------------------------------------------------
Name : Notes receivables.
PR Receipt class manual
Creation method: Require confirmation.
Manual
Remittance method:
Standard and Factoring
Clearance method:
By automatic clearing
----Payment method------------------------------------------------------------
Manual tab:
Bank Accounts
Select manual-> if it is manual, one has to enter it manually in receipt or quick cash window or import using
auto lock box.
Remittance banks (vision operation) –PR receipt class format, PR payment method manual.
ACCOUNT
Clearing days:
Override bank
Primary [ ]
Bank charges:
Select the bank DS main bank; the branch name will be displayed.
Select the account name, ass the account details will be displayed.
Formatting Program tab -> attach the format.
Remittance transmission: French bills receivable remittance
Remittance Print: Print bank remittances Program
Factoring transmission: French bills receivable remittance
Factoring Print Print bank remittance Program.
Select “Automatic clearing for receipt” Program and select eliminate bank risk parameter as
“yes”.
Give the clearing date and GL date as 20-nov-2011.
Select receipt number, customer name from the list of values.
Submit the request by clicking ok and check its completed status.
On view the output, I can risk eliminated by clicking the view output button.
Query the receipt number in the receipt window and see the status as “Risk eliminated”.
Status: “Risk eliminated”.
One can create adjustments to increase or decrease the balance due for a invoice, debit memo,
chargeback or commitment.
Prerequisites:
Define a receivable activity.
Enter the approval limit.
Set the approval limits: (but it is already defined)
Navigation: Setup; transaction; approval limits.
User Document Reason Currency From To Primary
name type amount amount
Active
Adjustments:
Adjustment, bank error, earned discount, endorsement, finance charge, miscellaneous, cash , short term debt,
unearned discount, receipt write off, claim investigation , Prepayment etc..
Accounting
GL account source Activity GL account
Tax code source None
Activity GL account PR-000-5230-0000-000
Distribution set
GL account description Karthikraja co-no department- standard adjustment-
no sub account- no Product
6) Auto adjustments:
One can run auto adjustments to automatically run auto adjustments for the remaining balances of all
open invoices, debit memos, credit memos and charge backs.
Prerequisite:
Define a receivable activity.
Since, we have already defined a receivable activity for adjustment we could use it.
Parameter:
Option
Generate report only.
Create adjustment.
Tax adjustment.
First click generate report only to create the report and see the adjustments to be adjusted.
Click submits and the request id is generated. Verify whether it is completed.
Note: please create transaction and receipts with balance due less than 1000 to verify the
adjustments working fine or not.
Once it generate only job is over. Verify the report and submit another report by selecting
create adjustment radio button and click submit.
Verify the job request is completed and view click output to see the output details.
Note down invoice number and go back to transaction and query the invoice to check whether
the balance due is got adjusted. Click details button to see original and adjusted balances.
Receipt source:-
One can use the receipt source to number either automatic or manual receipt batch.
Navigation:-
In oracle receivable, one can write if and apply the receipt amount.
Prerequisite:
Define a receivable activity.
Enter the approval limit for receipt write off.
We have already defined the receivable activity for adjustment. Similarly create the PR receipt
write off by selecting the receipt write-off type and other details are same and save and close
the activity window.
Approval limit also have been defined already for up to 3000.
Enter a receipt:
Apply to a transaction
Select receipt write-off for excess unapplied amount to write off.
Select on account of receipt write off for excess amount to be in on account.
Enter the receipt with payment method as PR payment method; receipt number PR RS 0021,
receipt amount. 11500 and receipt date, GL date, Maturity date 25 Nov 2011.
Select the customer: PR customer and Press enter and save the receipt and click apply button.
Select the transaction by clicking on the list of values in the apply to field.
Transaction number is 1103 having balance due of 11000. Change the apply date 25 Nov 2011,
amount applied as 10000 and click save.
There are 500 which is an unapplied amount. Now we need to write off the 500. Select receipts write
off.
AR STEPS:
Based on purchase order issued by customer, receipt we recd..
Generate sale order.
Invoice is raised and payment made.
Tax-> sales tax=defined in state, country, city flexfield and VAT= no validation
Specify the location tags;
Hierarchy of tax.
Define the payment terms.
Define the collectors, customer Profile class.=== for creating customers.
Define the customer === give the customer Profile and collectors here and payment terms.
Define tax location rates for state, country and city.
For invoice, we need transaction type. In that give receivable, revenue, unbilled receivable, tax
and GL A/C need to be specified.
Define transaction source.
After defining
Apply to field and apply date 25 Nov 2011 and amount applied is 500 and give the activity as PR
receipt write off and click save and closes the application window.
Store the excess amount in the “on account”.
1-4 steps are same. Instead of writing off the amount lying as unapplied we can keep the excess
amount in the on account which can be used for some other transaction.
Select “on account” in the apply to field for the excess 500 and save the record. So now the
excess amount is move to on account.
If we want to use this on account amount to some other amount, Give the amount applied as
zero the amount goes to unapplied status. Then we can use this amount for some other
transaction.
Automatic receipt write off:
One can run automatic receipt write off Program to write off multiple receipts advanced
individual receipts returns.
The concurrent Program creates a write off and closes receipts.
Prerequisite:-
Enter receipts with a difference of 0 to 3000 amount that is more than the original transaction.
In order to create receipt writes off.
Parameters:
Activity PR receipt write off
Apply date 25 Nov 2011
GL date 25 Nov 2011
Option:
Generate report only.
Report writes off.
Submit
Generate report only so submit the report by clicking submit to list the written off receipts
which needs to be adjusted.
Now give the same details again click create write off receipts radio button.
Request id is generated click view – request – find to check the completion of report.
Requery the query and see the write off is created.
Prerequisite:-
Creation of application rule set: Navigation: setup > receipts > application rule.
Give a name for application rule set: PR application rule set.
Receivable will automatically assign the over application rules by default this rule will be the
last in the sequence for any application rule set.
One has to enter the rule detail for the application rule. The rule details section describes the
type and tax treatment for this rule.
Save and enter the application rule detail type: line, freight, charges. Tax treatment = Prorate,
before, after, none.
A) The system will Proportionality reduces the net amount for the line and associated tax amount when I
select Prorate.
B) The system will first reduces the tax amount and then apply the remaining amount to line when I select the
before option.
C) When I select after, it first reduces the line amount then it applies the remaining amount to tax.
6) Click save and after saving enable the freeze check box.
YES NO
Click on yes button.
Enter the receipt by selecting payment method; enter the receipt number, amount, receipt
type (standard), receipt date, GL date, and maturity date. Select the customer and save this
window.
A) click apply button to select a transaction from the list of values having balance 11100 with receipt
entered amount 10000. So balance due is 1100.
B) Save and close this application and receipt window.
4) Query the transaction number 1146 in the transaction window by going into transaction > transaction.
5) execute the query by Pressing ctrl +F11. The transaction is retrieved and we can see balance due of 1100.
Where line 600 and freight 500 so total 1100.
6) First tax has been applied and the remaining amount is applied to line amount.
Receipt reversal:
One can reverse the receipt with customer stops payments or receipts come from an account with
insufficient funds.
Standard receipts reversal:
Query the receipts
Reverse the receipts.
Debit memo reversal:
Query the receipts.
Enter a debit memo reversal.
Query at the transaction work bench.
Category:-
One can create a standard reversal for a receipt and receivable automatically creates reversal journal entry for
ones GL and reopens all debits and credits which originally closed by the receipts.
Reverse:
Reverse Cancel
Click reverse button and we can see the status in the receipt window as “Reversed”.
Status : “Reversed”
Journal entry:
When one creates debit memo reversal, receivable reverses the receipt but does not update any other receipt
activity that is associated with the original receipt.
Reverse Cancel
Click reverse button to reverse transaction.
Take the receipt number and it will be the newly created transaction number PR RS 004.
Query the transaction in transaction window.
Source Debit memo reversal
Number PRRS004
Class Debit memo
Type Debit memo reversal.
Miscellaneous receipts:
These are receipts which are non-operational income such as income earned from investment,
interest, refund and towards sale of stock.
Prerequisite:
Set up a distribution set
Set up a receivable activity
Miscellaneous receipt
Receivable activity
Distribution set:
% Account Description
30 PR-110-4150-0000-000 Miscellaneous revenue for dept 110
40 PR-120-4150-0000-000 Miscellaneous revenue for dept 120
40 PR-130-4150-0000-000 Miscellaneous revenue for dept 130
Total 100%
Reference
1. Customer
2. Customer number
3. Location
4. Taxpayer ID
5. Customer bank
6. Name
7. Account
8. Payment server id
9. Approval code
10. Remittance bank
11. Name
12. Branch
Receipt
Main More
Main tab:
Purpose:
Tax code:
Tax amount:
Tax rate %:
Description:
Chargeback:
Receivable once post the quick cash Program that uses the auto cash rule set to determine how to attach the
receipt against the customer open transaction. One has to specify and sequence these rules as the set which is
defined in the auto cash rule set.
Active.
Items in disputes.
Finance charges.
After defining the auto cash rule set, now we will attach the auto cash rule set with the Profile
class.
Query a Profile by going to customers Profile classes and query a Profile class : PR CUS PROF CLS
Attach the auto cash rule set: PR Auto cash rule in this window. Auto cash rule set: PR Auto cash
rule set.
Click save and click update all Profiles radio button and click ok and check for the request is
completed.
Close all the windows.
Query the customer to check whether the Profile class got updated customer; standard.
Enter the customer name and click find.
Go to Profile -> transaction tab and see the auto cash rule. Set has been attached.
Go to address tan and click open and go to Profile – transaction tab and check whether the auto
cash rule set got attached.
Close the customer window.
Enter receipts with batch type as manual – quick.
Batch type: Manual – quick.
Count Amount
Control 3 100000.00
Actual 0 0.00
Reversed 0 0.00
Difference 3 100000.00
F) click save and click receipt button to enter the receipts number.
H) After entering all the 3 list i.e., the last row should auto cash rule. Set attached to the application
type.
L) Click view output button to see the details and output of this rule.
M) Close the request window and quick cash window and see the status as control cunt and amount is
equal and status as open.
N) On saving the status will be closed and the difference will come as 3 and 100000.
Count Amount
Control 3 100000.00
Actual 0 0.00
Reversed 0 0.00
Difference 3 100000.00
One can use automatic receipt future to automatically generate receipts for customers with whom one
has Predefined agreements. The creation of automatic receipts involves three steps:
Create: it involves selecting the invoices that one want to include automatic receipts.
Approve: It involves deleting, updating and approving the receipts that one have selected.
Format: It involves formatting ones automatic receipts on to paper and send to one customer
for confirmation or notification.
Bank accounts
Clicks save.
Select address tab and click open button.
Enter a transaction and complete the transaction and copy the transaction to create more transaction
Create a automatic receipt batch.
Receipt – batches: select batch type automatic.
Batch type Automatic
Batch date 15 Nov 2011
GL date 15 Nov 2011
Currency USD
Receipt class PR receipt class automatic
Payment method PR payment method automatic
Click create button and select customers and click ok and check completion of report.
Requery with batch number 30112 and Process status is completed creation. Click approve button and
check completion of request.
Requery and click format button and check completion of request.
Requery and click maintain button and we can see the receipt number generated close the entire
window.
Query individual receipts by going into receipts and see the status as cleared.
Main tab:
Name: PR customer
Number: 4090
Taxpayer ID:
Location:
Address:D2 Glass made
Sannathi road,
Velachery, Chennai, PR city, PR state.
Print option: Print
Last Print date:
Acceptance date:
Remittance date:
Remittance batch:
Signed
Isssed by drawee
Complete
Reciprocal relationship:
Reciprocal account relationship enables parties to apply receipts against each other transactions and
enter invoices against each other commitments.
Prerequisites:
Enable create reciprocal customer. Check box under the region transaction and customers in
system options.
Update the reciprocal relationship at the customer standard level.
Enter a receipt and during application both the customers transaction are listed.
Update the reciprocal relationship at the customer standard level.
Select the customer and click find button.
Select the relationship tabs from the more tab and relate this particular customer with other
customer.
Name: SS customer
Number: 4086
Type: all.
III) a) Enter the receipts and select the payment method, enter receipt number, amount as 10000 and receipt
date 5 Nov 2011.
b) Select the customer and click apply button to select a transaction and select a transaction because it
displays both PR customer and SS customer transaction. Select any one transaction and save and close the
entire window.
o Receivable let ones to view the customer account information in a variety of ways.
o Define collector and attach to the customer Profile class. PR collector already defined and
attached.
o Review the customer accounts.
o Query the customer
o View the account details
o Overview the account period
o View the payment and other details by clicking key indicators.
o To view the customer accounts.
Accounts statements:
Account statements will Provide the customer complete record of the invoices, debit memos,
chargeback, deposit receipt, on account, credits, credit memo and adjustment activity for a specific period.
Customer calls:
One can contact the customer through phone for any transaction that is positive. One can use customer calls
window to record the results of one’s conversation details by recording the details of one conversation. One
can create a record of contract and can recommend any further collection actions.
Customer accounts merge: One can use customer account merge to consolidate any duplicate
customer or transfer of site which is no longer active.
After successful merge, all the activities that was Previously associate with old customer associated with the
new customer or site.
The balances in accounts needs to be transferred to general ledger on a daily periodical basis and
before that one has to run reconciliation report. This report helps one to reconcile ones account receivable
activities.
Fixed Assets
Purpose:
2. SYSTEM FLOW:
1. Creation of books
Category flexfields
Location flexfields
Asset key flexfields (values for these three flexfields should be defined)
3. System controls:
Should be created using these structure and for setting up automatic number for assets.
4. Financial options:
6. Asset category:
7. Location:
8. Asset addition:
3. DEFINITION OF ASSETS
4. TYPES OF ASSET
B)
1. Capitalized asset
3. Expensed assets
5. ASSET BOOKS
1. Corporate Book: Recording financial information and details of Dep for Business purpose.
PRE REQ:
2. Fiscal year have to be defined from the year earliest to the oldest date placed in service of asset in the
enterprise
3. If the asset Book and asset are to be created only from the current fiscal year, then define fiscal year from
the previous year.
4. The fiscal year calendar for the corporate book and tax Book is the source
Open period
close period
Depreciation run program closes the current period and open the next periods and open the next periods
9. DEPRICIATION CALENDAR
2. Prorate calendar is used to determine the prorate date and prorate period, when to
Dep an asset during the first and last yr.
3. Prorate calendar is used for determine the prorate convention
4. Prorate calendar is used mainly for table based method Dep
Prorate calendar selects the Dep rate with respect to the date placed in service for table based method
Flexfield is an intelligent key code combination of various business dimensions/business segments for any
transaction
Types of flexfields:
FA CATEGORY FLEXFIELD
Category flexfield is the field in which we specify the name of the category of assets
1. Name
2. Segment
A) Main Category
b) Sub category
3. Value sets
2. Sub category
FA LOCATION FLEXFIELD
Location Flexfield is a key Flexfield to record the location details of the asset
i)Name
ii) Segment
1. Building
2. Area
3. City
4. State
5. Country
Asset key flexfield: used to group assets on the basis of its functionality
i) Name
ii) Segments
1. Asset key
Specify the date placed in service of the oldest asset in the enterprise
1. Category flexfield
2. Location flexfield
Prorate convention are method to the first& last year Dep of asset as per the prorate period &prorate date
2. Also facilitates changes in convention from the default rules at time of addition or @the time of retirement
1. Depreciation methods
Dep: Decrease in the value of assets normally due to wear and tear
Dep Basis
Methods of Dep:
3. Production-cost only
Bonus Depreciation
1. One time
2. multiple times
1. Cost ceiling
6. ASSET CATEGORY
Subcategory value
Description
C. category type
d. Ownership
owned
lease
e. Property type
i. real
ii. Reversal
iii. Others
1. Asset cost
2. Asset clearing
4. Account Dep
5. Bonus expense
6. Bonus reserve
7. Revaluation reserve
8. Revaluation amortization
9. CIP cost
1. Dep method/rate/life
2. Bonus rule
3. Prorate rule
4. Retirement convention
5. Salvage value in %
7.Price index
8. QUICK CODES
Distribution set is useful for single or multiple asset segment of the physical distribution of asset automatically
To various location/exp employee while adding assets in detail addition mode/mass addition mode
the automatic assignment will be as per the predefined % assignment in the Distribution set
the distribution set in assets module should be a full distribution set
each distribution set must have unique name & will be specify for a particular asset book
you can have any number of distributions set for any ass category
you can have any number of distributions set as per the dates placed in service
you can have distribution sets based on rate of dates placed in service
12 .TRANSACTION IN ASSET
1. Addition
2. CIP addition
3. Transfer
4. Adjustment
5. CIP adjustments
6. Depreciation
7. Depreciation adjustments
8. Reclassification
9. Revaluation
10. Retirement
1. Quick addition: To add assets quickly with minimum details& by using default rules as per asset category in
a single screen
2. Detailed additions: To record complete details of assets including source lines, sub components, leased
assets, short year asset &also to over side default Dep rules
3) Mass addition: to import mass data from payables or external system to oracle assets
Same as in addition of asset. Here, capitalized asset are taken into consideration
Expensed asset are asset whose values is less than prescribed value ,permitted by tax authorities for creative
it as overvalue expenses or off in a year. Are mainly captured for physical verification
(The check box capitalized should be unchecked in the relevant asset category)
While reporting from payables the exp line item should be manually tracked as assets
1. Production capacity of the asset & its unit of unit of measure should have been recorded while recorded
while adding a Production based asset
Actual Production details can be recorded for a date range within the current period for dep.
Unit of measures for actual Production should be the same as the unit of measure entitled for Production
capacity in addition workbench.
Combined Production details for more than one period are not allowed
2) in case depreciation is run without enabling the check box close period, for making any changes in the asset
addition/transaction during the current period, the pre request to run the program “Roll back depreciation ”
for the current period
3) Once Dep is run by enabling the check box close period, the current period is permanently closed in the
asset & the next period is open automatically
RUN-Request
View>field>
Default
5. Journal entry reserve ledger report: enables to know how much Dep exp is charged for acc period
Book name
Give
View details
Flat NBY with bonus: as salvage excluded not enabled cost-salvage is taken for Dep cal
Bonus on call
CIP ADITIONS
1. QUICK ADDITION: TO add CIP assets quickly with NIL cost by using default rules as per asset category in a
single screen.
2. DETAILED ADDITION: To add CIP assets will NIL cost further to add cost to CIP ASSET through source lines
screen
3. MASS ADDITION: To import mass data of CIP assets from payables a external system to oracle assets
Go to cap assetsquery book>asset type-CAP> reverse it>Query the asset in asset work bench
The asset no: will be reversed to CIPand can add source line.
Mass addition is the process by which many asset are added automatically in ‘oracle asset’ using data of assets
from external sources
Normally mass addition is done the oracle payables or any other feeds system using the interfaces
invoices for purchase of ‘fixed asset’ are normally recorded in payables in invoices distribution lines, the items
of capitalization asset type are recorded with ‘Asset clearing a/c code combination’ as change a/c & the items
of ‘CIP Cost clearing a/c code combination as change a/c which are automatically enabled in the distribution
window to be tracked as assets
In case of other charges to purchase of capitalized assets/construction of CIP assets like freight, tax
miscellaneous exp & also for ‘exp asset charges account’, these lines records in the invoice distribution
windows are to be normally tracked as assets by enabling the relevant checkbox.
Run the program ‘payable transfer to GL’ with journal import parameter
Ensure that the program ‘payable transfer to GL’ is successfully completed & the invoice details are
transferred to GL interface
next run the program ‘mass addition create’ which performs transferring invoice details of assets to which are
transferred to ‘assets interface’ and analyze the report to confirm that all the relevant line records relating to
assets are transferred to “assets interface” to “asset database”
Place on review line records for assets transaction pending approval or reg review
2. Post the mass addition by the concurrent program ‘Post Mass addition’
3.Delete the ‘mass addition line records’ which are transferred to asset database or marked for deletion by
running concurrent program delete mass addition
In prepare mass addition workbench when lines are imported from payables to assets
1) Modules the status will be NEW: when line modules are open and if
2) Details are updated and saved-on hold if field are entered & reg approved from authorities the status can
be changed to
3) On-review
Asset lines are completed- it can be posted to asset database & incorporate in asset book, the queue status
can be manually changed which will be ready for posting?
4) These records can be posted to asset book by running post mass addition program
5) Irrelevant line records not pertaining to assets module can be deleted by selecting status as delete
6) In case line records are need to cost adjustment to cap. Assets/CIP asset. If these line records are adjusted
to these relevant assets & if selected for posting, status becomes cost adjust.
7) In invoices source lines are to be merged clubbed into single asset record, then we can choose merge, when
line gets merge with parents line, the line status will be merged.
8) When invoice is split into several records Eg: furniture can be split into chair & tables (2 line records)
9) Capitalization
10) Posted
Prepare Mass query your book– could not find any invoice
7. TRANSACTION TYPES.
Under certain circumstances, running of ‘Dep run’ program with close period option may get delayed
with the result. Current period/ reuse past period / as per system date may not be opened in the asset
book.
So, Assets transactions for such current/past periods as per system date cannot be captured in asset
book unless and until the relevant period is opened in asset book.
But to record these transactions as and when they occur, “oracle Assets” enables us to record/capture
the same in ‘prepare mass addition work bench’ as the toll type transactions to be transferred to asset
book database in future.
1. Addition as future Add trans type
2. CIP additions as future Add trans type
3. Cost adjustment to capitalized assets & CIP assets as future adjust trans type
4. Capitalization of CIP assets as ‘future cap’ trans type
The recorded future type asset transactions for the Asset book are temporarily stored in the interface
& these transactions become effective for the asset book only when the relevant period is open in
asset book.
The process which opens the relevant period of the asset book is the “Dep run” program with enabled
check box for ‘close period’ for the previous period which closes the previous period & opens the
relevant period as ‘current period’.
‘Oracle Assets’ automatically update the transactions in asset database of the recorded future type
transaction Details the concurrent program ‘ Process pending transactions’ in Dep run.
Lease is a contractual argument but the lessor & lessee with predetermined payments terms
using the asset/s of the lessor by the lessee for the lease period.
Leased assets are operating leased assets unless they satisfy lap test & opted for the lap by the
lessee
Leased assets can be lap if any one of the following -----------------
1. Transfer of ownership
2. Bargain per option
3. If the lease period equals and exceeds 75% of ECO life of the leased asset
4. If the present value of the lease payments equals/exceeds 90% of fair unit value.
Oracle calculates present value using the pay schedule for a pre-determined pay amount for a period
of time including interest , if any
View amortization will show the total income lease as the difference but the present value & total
lease rental payments
Request to define payment schedule:
What if Analysis
What if analysis is a tool to analyze the effect of use/changes in dep method/Rates / Salvage value/ Bonus rate
/ prorate convention for a prescribed no of periods from the current period to future period with respect to
1) Existing assets
a) Under one asset category
b) Placed in service in a Date range
c) Asset number range
(Including fully reserved assets)
2) Hypothetical assets
Under one asset category with proposed date place in service ,estimated cost for purchase as ‘new’ &
in case of proposed purchase of ‘used’ asset , additional information of estimated Accumulated dep , if
any
3) Insurance
asset insurance window captures information such as policy number , insurance co, calculation
method, Base insurance value ,Insured amt, ins under & current values, Insurance coverage category
(Acc, fire,theft,third party), Hazard class ( valuable, fragile, Explosive, Portable)
INSURANCE:
Three types of cal. method are provided in Oracle Assets
1) Value as new: This method cal current value on cost bases{re cost price index factor for the rate
period}
2) Market value: This method calculates current value on NBV (i.e. NBV price index factor for the
relevant period / price factor for the previous period)
3) Manual value: There is no actual cal, we enter the current value manually
Insurance can be queried & also the ins com details can be updated the maintain window
WARRANTY THEORY
Warranty is a service contract given by the manufacturer to vendor for any asset purchase
In Oracle assets warranty info details the warranty number ,Desc, start date vs. End date,cost,supplier
name and no, ‘ee’ assignment for warranty
Predefined warranty can be assigned to any asset
Warranty once assigned to any asset cannot be updated / deleted
Same warranty can be assigned to any no. of assets
Using the warranty num, we can query the assets
Schedule maintenance events capture the information on events of Repair & service of assets
Details of time schedule of periodical/half yearly/Annual service maintenance can be planned and
recorded
The maintenance event is used for corp book
Maintenance schedule can be rec. by selecting details
Time schedule
Corp book
Asset number range
Date placed in service range
Asset location
Assembly
Events name and Desc
Frequency in dates/days of maintenance
Maintenance cost
Supplier name & no, Contact name & no
Run the asset maintenance scheduling program
To view maintenance details of assets ,select the asset no: /Des / asset category /tag no: /serial no: /
Asset key Query mode
Initially the maintenance status is Due
As & when the supplier completes the maintenance events, the status column need to be updated as
completed
Purging of main details can be done for old data as per req
The selection criteria for purge: 1. Book 2. Asset no: range 3. Maintenance date range 4.Asset category
5. Status of maintenance
Tax book is maintained for changing dep on assets as per tax rules of the country & PO claim tax relief
on Business income. Tax book is the deferred income tax liability by comparing with corp. book
More than one tax book can be maintained and copy the details of assets other than dep details from
the corp. book
The transactions of all assets in corp. book is copied to tax book
1. Initial mass copy
2. Periodic mass copy
Tax books are created in book control by selecting the classified as tax which shows the tax rules to be
adopted
Dep same as corp. or new have same current period (LOV) Dec‘07
ALCG RULES:
The tax rule region / tab Transactions to be copied from corp. book to tax book
Journal categories:
Tax rules:
Group Rules:
Save close
‘Initial mass copy’ is the process by which all the information of existing assets are copied from
corp book to tax book excepting dep details. For the copied assets in the tax book, the dep rules are
default from relevant asset category of tax book
To copy all the existing assets of corp book to tax book run the program ‘Initial Mass Copy’. First
time copying is done the initiate mass program
Initial mass copy program can be run more than once to copy all the existing assets & this will not
duplicate any trans
Corp book period is to be closed before running ‘initial mass copy’ for the relevant period up to
which assets are to be copied
Assets retired before the end of that fiscal year & asset addition after the end of the year are not
copied in ‘Initial mass copy’
Periodic mass copy is the process of updating tax book for each period. Subsequent to ‘Initial mass
copy’ as per the corp book
Periodic mass copy program copies all the transactions for each period subsequent to ‘Initial mass
copy’ to tax book from corp book
Periodic mass copy is done only after closing the current period of corp book & by bringing the current
period as open in tax book
Periodic mass copy program copies the following info to tax book from the corp book during current
period as per tax rules in the tax book
1. Addition
2. Adj
3. Retirement
4. Reinstatement
Su dep ceilings
Des :
Currency : USD
Save
Click exp : down ous
Ceiling
D.S
Currency
From date To date Year of life Ceiling
01/12/05 31/12/05 1 3,000
01/01/06 31/01/06 2 3,000
1
Book : TB
-1570-
Default rules:
Ceiling will be fixed only when govt imposes dep on particular asset
4) Land
5) Computer –NBV- 20
6) Copies – Flat NBV
7) Machine flat WBI SPC
8) Flat NBV
9) Las – Flat NBV-ceiling –cost
10) Trucks flat NBV –SPC –exp ceiling
Close
Tax book dep should be run as it will not be copied from corp book
Ok sub req
Capital Budget is an estimate of cap exp for pur or cons of asset in future
Cap Bud can be entered manually or by uploading from other sys the budget interface
In Oracle assets, we capture annual cap budgets for bud book
ORACLE FINANCIALS J. Sureshraja M.com., MBA., CA (f).,
Page 152 of 174
These reports serve as tools to ctcl the cap exp & also guide cach flow & fund flow planning
Class budget
Give des
Give details
No in Accounting rule
Our category
Book :
Categ: Mach
Expact 120-7330
Asset wk bench & query Bud book can view for every uth finan eq
Run reports: Other Run req Budget rep Sub view o/p
Sub new req Bud to act Rep give book name, Dec -07. Ok view o/p
cl-cl
Dep projections program is used to calculate projected dep of existing asset for current / future
periods
It is used as a tool to adopt correct Dep method &rates
It is mainly used for generating rep details for cost center & assets
It can be submitted for four books at a time
The pre req is projection calendar (Dep calendar)
Dep projections
Proj : KR calendar
No period
Run
View/ Req
Transfer of asset is a change in the assignment of asset in any one or more of the foll details
Employee assign
Dep Exp assign
Location Exp
ORACLE FINANCIALS J. Sureshraja M.com., MBA., CA (f).,
Page 154 of 174
This is financial impact on transfer of assets in the case of change in Dep Exp assignment
Transfer of assets can be for individual asset or more than one asset
Transfer of multiple assets is done the mass transfer by preview & final run
The selection criteria for mass transfer
1) Single Dep exp act & range of A/C
2) One location to another location
3) One employee to another employee
3. CHANGES THEORY
Changes mean adj in cost of an asset or Dep of an single asset (Fin & Dep inf)
In book ctrl enable allowances changes in a/c rules
Changes for an individual asset involves any of following adjustments:
1. Cost addition to capitalized asset
2. Change in current cost of capitalized asset
3. CIP cost addition
4. Salvage value
5. Dep methods/rates
6. Bonus rule
7. Date placed in service
8. Prorate convention
9. Ceiling in case
10. Unplanned Dep
5. MASS CHANGES
ASS Ass wk bench query book find select one asset books . Give book name give current
cost cost defaulted. Things in mandatory field can be changed to amt & amt can be changed Dep
method can be ∆dwith diff/same date
Date placed in service can also be changed. Bonus rule can also be changed done.
MASS CHANGE
Mass tan changes choose book status new can be done amortization changespreview id
view
Requerypart no
6. REVALUATION THEORY
Revaluation is a process to adjust the book value of the asset as per the inflation or deflation rates in
order to bring it to mkt value
Revaluation is done for
1. Prior period asset which are not fully retired
2. Assets added in current open period
3. Pending retirement assets
Revaluation is not automatically copied to tax books rev of asset has to be performed separately in
each tax book which is associated to the corp book
Rev is done by specifying the default rev rules in the book ctrl which has over option in mass rev work
bench
1. rev fully reversed assets
2. Maximum fully res revaluation
3. Life extension factor
4. Life extension ceiling
5. Revaluation ceiling
Rev is done either by selecting the asset category on asset no with the percentage of inc/decrease
Optionally check boxes against the following can be selected in book controls as per co
requirements
Revalue Accumulated dep or not
Revalue YTD Dep or not
Retire Rev res
Amortize Rev reserve
Further, optionally choose the following default rev rules also in book controls which u can override
in mass rev work bench
Rev fully res assets
Maximum fully reserved Rev
Life extension factor
Life extension ceiling
Revaluation ceiling
INDIVIDUAL RETIREMENT: Ass Ass work bench select asset retirements give lost
Dep run cal gain & loss to calculate gain from sale
Inq find inq to view details of ret asset select retired books lost history trans full ret
details status processed
Cal of P or L:
Net proceeds:
MASS RET: Query book in ass work bench find select ass which has been retired already tools view a/c
Ass work bench query Retirement Query ass processed ref no: reins
IMPORTANT TERMS
Is an argument where the receivables out of sales of gl’s are sold to factor thereby transferring the title of
goods & ser to the factor & the right to rev amount receivables
If the buyer fails to pay the client will pay to the factor
Retirement criteria:
1. Asset type : cap/CIP/expensed
Additional criteria:
1. Tag number
2. Serial number
3. Manufacturer
4. Model
5. Group asset association
6. Group asset
The assets are reclassified from the existing category to new asset category th’ mass reclassification
which updates if , correct any errors or consolidate categories
To do mass reclassification enable check box ‘Allow mass changes’ in the accounting rules region of the
‘book control’ window
Reclassification to the same category will have no effect
By default reclassification of asset without changes in Dep rules of the old category of the asset can be
done
Reclassification of asset to new category by inheriting the Dep rules of new category can also be done
by enabling the req check box. Any resulting Dep adj can be either exp off in current period or
amortized
For reclassification of any asset for which previously amortized adj was done ,the check box amortized
adj need to be enabled else Reclassification will fail
Assets are reclassified according to:
1. Asset type: Capitalized/CIP/Exp/Group
2. Dep exp a/c
3. Location
4. ‘ee name
5. Asset category
6. Asset key
7. Cost range
8. Asset no: range
9. Dates in service range
10. Fully res assets
On reclassification, Des flex field info for the assets entered in the old category will get copied only if
enable the check box for ‘Copy category Des flex field to new category’ subject to one change in the
main category of the asset cat segment
Run the programs for preview, Final run & review
Query asset book in asset work bench select an asset books enter a book name fin info will be def
unplanned Dep should not exceed NBY
Click unplanned
Amount: 25,000
1. Physical invoice is periodic reconciliation of phy inv data of assets with oracle assets
2. Physical inv can be recorded manually or by automatically using barcode scanner in to a file
3. The collection of data are reconciled, if there are any discrepancies
4. The physical inv data should contain at least the following info
1. Asset no
2. Location
3. No of units
5. For comparison, run the physical inv comparison program & the res can be viewed in the phy inv
window or by running the phy inv comparison rep
6. The discrepancies, if any are updates manually for the respective assets in the asset work bench by the
co or in the phy inv report by the auditors till such time in both reports the status is reconciled
Give name:
Open
Run comparison
Run
Requery
Inq avg –
Def Dep is the diff b/w corp. book Dep & tax book dep. It is useful to cal. Projected future IT liability. Run
the program ‘Create def Dep JE’ with parameters tax book, tax period & associated corp. period for deferred
Dep exp journal.
Multiple times running of the program for the same period is not possible. Roll back of Dep J.E.
J.E – DF
Corp period
Submit
----------------------------------------------------------------------------------------------------
ACCOUNTING ENTRIES
1. BACK TO BACK
2 Creation of Requisition
No Accounting
4 Receipt
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
5 Delivery
Raw Material Sub Inventory Sub-inventory Org Level A/c willl
A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
Diff between PO -
Pur.. Price Variance A/c 20 Standard Inventory Org Setup ORG
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
6 Reservation
No Accounting
7 Picking
8 Shipping
Org Level A/c willl
get defaulted,
COGS 80 At Standard Cost Item OMTT
Sub-inventory Org Level A/c willl
Staging Sub Inventory A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
2. DROP SHIP
ACCOUNT IS OPTION
PARTICULARS DR CR SPL NOTES PULLED SPECIFIC AVAILABLE
I Drop Ship
2 Creation of Requisition
No Accounting
Creation of Purchase
3 Order
No Accounting
4 Receipt
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
5 Delivery
Raw Material Sub Sub-inventory Org Level A/c willl
Inventory A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
Diff between PO -
PPV A/c 20 Stnd Inventory Org Setup ORG
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
6 Reservation
No Accounting
7 Picking
Staging Sub Inventory Sub-inventory Org Level A/c willl
A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
Sub-inventory Org Level A/c willl
Sub Inventory A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
8 Shipping
Org Level A/c willl
COGS 80 At Standard Cost Item get defaulted, OMTT
Staging Sub Inventory Sub-inventory Org Level A/c willl
A/c 80 At Standard Cost Material A/c Setup SUB-INV get defaulted
3. SO-WORKORDER FLOW
OPTION
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC AVAILABLE
1 At the time of material issue
2 Resource Valuation
Staging/Completion Sub-
inventory A/c Std Cost Org/Subinventory
WIP Material A/c WIP Class
WIP Resource valuation A/c WIP Class
WIP Material overhead A/c WIP Class
WIP Overhead A/c WIP Class
Diff bet. Actual -
WIP Material Variance A/c STD WIP Class
WIP Resource Variance Diff bet. Actual -
A/c STD WIP Class
Diff bet. Actual -
WIP Material Variance A/c STD WIP Class
Diff bet. Actual -
WIP Overhead Variance A/c STD WIP Class
5 Picking
Sub-inventory Material A/c Org Level A/c
Staging Sub Inventory A/c 100 At Standard Cost Setup SUB-INV willl get defaulted
6 Shipping
Org Level A/c
willl get
COGS 100 At Standard Cost Item defaulted, OMTT
Sub-inventory Material A/c Org Level A/c
Staging Sub Inventory A/c 100 At Standard Cost Setup SUB-INV willl get defaulted
SPL
SR.NO PARTICULARS DR CR NOTES ACCOUNT IS PULLED SPECIFIC
FOB Point is set to Receipt without Charges &
1 Freight - Using Transaction Type - In transit
At Std
Inter–Organization Receivable (Sending Org) 100 Cost Shipping Network ORG
At Std Sub-inventory Material A/c
Sun Inventory A/c (Sending Org) 100 Cost Setup ORG
At Std Sub-inventory Material A/c
Sub Inventory A/c (Receiving Org) 100 Cost Setup ORG
At Std
Inter - Organization Payable (Receiving Org) 100 Cost Shipping Network ORG
5. PROCURE TO PAY
3 Receipt
Receiving A/c 100 At PO Price Receiving Option Setup ORG
AP Accrual A/c 100 At PO Price Inventory Org Setup ORG
6 On making Payment
Liability A/c 110 At Invoice Price Financial Options/Supplier Site
Cash 110 At Invoice Price Bank A/c Setup
4 Transaction level
Receipts
Before application of
Cash 100 the receipt Receipt class Bank Definition Form
Unapplied A/c 100 Receipt class Bank Definition Form
After application of
the receipt to the
Unapplied A/c 100 transaction Receipt class Bank Definition Form
Receivables A/c 100 Receipt class Bank Definition Form
when customer
Unidentified A/c 100 indentified Receipt class Bank Definition Form
Unapplied A/c 100 Receipt class Bank Definition Form
On remittance to
Remitted receipts A/c 100 bank Receipt class Bank Definition Form
Confirmed receipts A/c 100 Receipt class Bank Definition Form
On clearance of
Cash 100 cheque Receipt class Bank Definition Form
Remitted receipts A/c 100 Receipt class Bank Definition Form
At the time of
Cash 90 unearned discount Bank
Discount unearned A/c 10 Receivable activity
Receivables A/c 100 Transaction type
7. Adjustments in AR
SPL
PARTICULARS DR CR NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE
1 Adjustments
9. Miscellaneous Receipts in AR
OPTION
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC AVAILABLE
Miscellaneous Receipt
1 at receivables
Accounting
Miscellaneous
Issue/Receipt At
2 Inventory
Issue
Receipt
OPTION
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED AVAILABLE
A dummy Misc.Vendor is
created for this purpose and
On entering a the details are captured in the
1 Misc.Invoice DFF.
Financial
Liability A/c 100 From the Supplier site Options
From the Bank A/c's
Cash 100 Definition
On making Payment
(when Cash Mgmt is
3 implemented)
On Payment
Financial
Liability A/c 100 From the supplier site Options
From the Bank A/c's
Cash Clearing A/c 100 Definition
On Clearing
From the Bank A/c's
Cash Clearing A/c 100 Definition
From the Bank A/c's
Cash 100 Definition
OPTION
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED AVAILABLE
1 At the time material issue
2 Resource Valuation
Oracle AIM
Oracle's Application Implementation Methodology (AIM)
2. TO BE
PROCESS LEVEL
BP 80- MAPPING CURRENT BP IN ORACLE(BP- BUSINESS PROCESS)
3. TRANSACTION LEVEL
RD 20 TRANSACTION LEVEL
RD 30- MAPPING WITH ORACLE RD 20
4. SOLUTION DESIGN
5. BUILD (Development,TEST,Production)
(PTP, OTC)
BR 100 SETUP DOCUMENT
7. GO LIVE
Production Support