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The Accounts Receivable (AR) module is a part of the Oracle Financial Applications 11i. This module enables you manage the tasks related to raising invoices, debit notes, credit notes, deposit notes, and guarantees. It also helps you manage transactions, receipts, and collections and track payments from customers after a sale is complete. You can integrate AR with the Oracle General Ledger, Order Management, Oracle Inventory, Oracle Cash Management, and Oracle Party Model/Customer modules, but you do not need to install these modules to work with AR. You can also install AR as an independent module. This ReferencePoint explains how to record and track information pertaining to transactions and receipts in an organization and how to record the remittance to the bank. It also explains how to record customer information using the AR module.
Before you start the process of tracking Account Receivables in Oracle, you need to enter customer information in the database. All information related to a customer must be entered when customer makes the first purchase from your organization. When entering this information, you can also define customized fields. For example, you can create fields to store multiple addresses for each customer.Figure below shows the different types of customer information:
Entering Customer Information
The only mandatory information required for a new customer is the name, customer number, and address. To enter customer information: 1. From the main menu, select Customers->Standard. You are prompted to enter the name of the customer.
2. Enter the name and click the Find button. If a customer with that name does not exist, then a message box appears asking whether you want to create a new customer. 3. Click New, if you want to create a new customer. The Customers window appears, as shown -
The Customers Window 4. Select the customer type, which can be either an organization or a person. If the new customer is a person, not an organization, you can enter information, such as prefix, first name, middle name, last name, and suffix. 5. If the Generate Party Number profile option is set to No, enter the unique customer number. If the option is set to Yes, a unique number will be assigned to the customer when you save the form.
6. Enter an alternate name for the customer, if required. You can only enter this
field if the profile option AR:Customer Enter an Alternate Name, is set to Yes.
7. Enter the name of the customer. 8. Select the Status check box to specify the customer as an active customer. For inactive customers, you cannot enter new transactions, but can apply and process payments for existing transactions.
9. Enter the TaxpayerID information as an additional reference. This field is used
to query customer using Taxpayer ID. 10. Enter the unique tax registration number, also known as the VAT number. 11. Enter the customer address. Enter classification information, such as profile class, primary sales person, tax code, and tax calculation in the information. You can enter several types of information when creating a customer. These include customer addresses, business purpose, contacts and contact roles, customer relationships, and profile classes.
When using the Multiple Organization support feature (multi-org), you cannot enter a salesperson or a tax code at the time of creating the customer. You can assign this information to the customer site only after the customer is created. If you are not using the multiple organizations feature, then you can assign a salesperson and tax code at both the customer and site levels.
Entering Customer Address For each customer, you can enter multiple addresses. You can also provide one or more Business Purposes for each address. When an address is created, its status is Active by default. When an address is inactive, you cannot enter new transactions for that address but can continue to process existing transactions. You can validate addresses using flexible address formats or the address validation system option. The validation rules for address information are: • The home country is defined in the Default Country field of the Systems Options window. You can use this information for tax calculation, flexible bank structures, flexible address formats, and taxpayer ID and tax registration number validation. The Sales Tax Location Flexfield structure validates addresses within the home country and calculates the sales tax based on the shipping address of the customer. You must enter a Location Flexfield Structure in the System Options window so that you can determine whether the Tax Method is Sales or VAT. If you are using a location-based tax method and you enter the value for your home country in this field, the system requires you to enter a value for every component of your Sales Tax Location Flexfield. If you have implemented the Flexible Address Formats feature, then enter a value in the Country field that is assigned to an address style. Note You can specify how the system will respond, if an invalid address is entered. The system can display an error message, a warning, or perform no validation when an invalid address is entered.
Assigning Business Purpose Customers may have multiple addresses. For each address, you can assign a business purpose. Functions performed at a particular customer site are described by the business purpose. Table below describes common business purposes: Table : Business Purpose Types Business Purpose Type Bill-to Description Send Invoice to this address. There can be only one primary active Bill to site for a customer.
For example. When accessing this information. Send the bills receivable at this address. You can set a business purpose as primary by selecting the Primary checkbox. then you must enter a number for this business purpose in the Location field. then you can assign the Ship-To role to one person and the Bill-To role to the other. A contact role enables you to assign a contact person to a particular business purpose or function. Each business purpose chosen is active and non-primary by default. If you do not enter a number. Send marketing collateral on this address. Location names are used as shortcuts to refer to a customer address.Table : Business Purpose Types Business Purpose Type Ship-to Statements Description Send goods or services to this address. This information is used as default customer information in different windows in the application. The order is: • • • Ship-To address Bill-To address Information at the customer level You can enter the business purpose for the selected address in the Usage field of the customer form. or deactivate information for customer contact roles. When entering this information. you may have a customer address with a Ship-To and Bill-To business purpose. add. There can be only one active statement business purpose for each customer. then the system automatically assigns a location number when the data is saved. you can: . the system uses a hierarchy to determine the order in which the default values are selected for a transaction entry. If there are two different contact persons assigned to each address. Send customer statements to this address. Dunning Marketing Drawee You can deactivate a business purpose for an address if that particular site is not to be used later. If Automatic Site Numbering in the System Options window is set to No. There can be only one active dunning business purpose for each customer. Entering Customer Contact Roles The Oracle application enables you to enter. Send dunning letter for a customer to this address. The information that you enter for a customer is stored using the customer site. change.
Ship-To. title. but individually . Email: Specifies the e-mail address for the contact. and reference. including last and first name. Enter the telephone Type. or Marketing. Job: Displays the default job title for the contact person. when you select a contact person. Statements. Creating Customer Relationships You can define relationships among customers to control payment and commitment applications. customers can pay each other's debit items. a customer can only apply invoices to commitments that it owns or to commitments of a parent customer to which it is related. In a one-way relationship. This field is available in the Customer Calls window. They can also enter invoices against each other's commitments. You can choose only the contact persons whose status is Active in the Contact fields of the Sales Orders window. Enter several telephone numbers for each contact. job. Description: Sets the role of the contact person. This field is for informational purpose only. For example. mail stop. The invoice for the related customer cannot be applied to the parent customer. You can create relationships between any numbers of customers and specify the relationship as either one-way or reciprocal. Reference: Sets the reference information for the contact. The types of telephone numbers are: ○ General ○ Fax ○ Inbound Watts ○ Outbound Watts ○ Telex The various the fields in the Contacts and Roles tabbed region of the Customers and Customer Addresses windows are: • • • • • • Active: Indicates whether the contact information is active. Assign a specific customer contact for a business purpose. Mail Stop: Sets the mail address for the selected contact.• • • • • Enter any number of contacts as required for a customer. such as Bill-To. but the value of this field must be unique for each contact. Enter the contact details. In reciprocal relationships. In addition. There can be only one primary telephone number. the company can apply receipts only to the invoice of the customer for whom the receipts are generated. you might have two customers who are business partners.
payment terms. The Customer Profile Class Window You need to assign a profile class and address for each customer in the Customers window. You can optionally customize these values for each customer or address. statement cycles. You can also define amount limits for finance charges. Most of the fields in the Define Customer Profile Classes window are selfexplanatory. as shown below in screenshot. then the relationship for each customer need not be defined. you can define the account status for a customer in the Receivable Lookups window by selecting the lookup type. If required. A Profile class is defined from the Customer Profile Class window. business volumes. you can create a relationship between these two customers. and payment cycles. such as credit limits. In the system option window. In this case. Every customer has an associated profile class. dunning. then clear the Active check box in the Customer Relation Tab. invoicing. The customer profile class provides default values when entering customer information. If you do not want a relationship to be active. Customer Profile Class The customer profiles class groups customers with similar creditworthiness. if you set the Allow Payment of Unrelated Invoices option to Yes. and discount information. Some important fields in this window are: • Account Status: Checks the status of this account. Account Status.conduct business with your company. and statements for each currency in which you do business. . Each class provides information. The default values set by the profile class take precedence over the values set when creating a customer.
If a customer has a past due amount that is greater than the minimum dunning amount specified. Assign a profile class to an address that already has a Bill-to location defined. the default credit ratings for a customer include. Percent Collectable: Sets the percentage amount of the customer account balances that you regularly collect for customers assigned to a particular profile. Finance charges are calculated on statements and dunning letters.• Credit Limit: Sets the credit limit of the customer to whom this profile class is assigned. This value overrides the value that you specify in the Finance Charges Interest Rate field. Finance Charges Interest Rate (%): Sets the interest rate to be charged to customers assigned to the profile class. The system will not generate automatic receipts in a particular currency that is less than the minimum receipt amount. then AR selects this customer for dunning. Minimum Customer Balance for Finance Charges: Determines whether or not the finance charges will be assessed when a customer submits dunning letters or statements. • • • • • • • • • • Important Note You can also update specific information for a customer. When creating automatic receipts. Minimum Statement Amount: Sets the minimum outstanding balance for Receivables to generate a statement for customers assigned to a particular profile. AR uses the greater of the two minimum receipt amounts. You can also define a minimum receipt amount for a payment method. Maximum Interest per Invoice: Sets the maximum interest to be charged from the customers. Minimum Dunning Invoice Amount: Customers with this profile option do not receive dunning letters if the amount in this filed is greater than the balance of their past due payments. Currency: Sets the currency to define credit limits. then all new orders for this customer are automatically put on hold in Oracle Order Management. Minimum Dunning Amount: Sets the minimum dunning for a customer. average and excellent. Minimum Receipt Amount: Sets the minimum amount due from a customer. If credit limit check is active and the outstanding credit balance for a customer exceeds the limit. For example. If the customer balance of past due items in a particular currency is less than the minimum amount specified in this field then the finance charges are not assessed. Credit Rating for customers. Credit Rating: Sets the credit rating for this customer. This information can differ from that provided for the assigned Profile . You can define additional credit rating names in the Receivables Lookups window by selecting the lookup type.
and invoices. To do this. chargebacks. debit memos. you need to define the transaction type with which transactions will be associated in the transaction window. and AutoAccounting. commitments. you can enter invoices. If you do not specify this information or do not assign a profile class. then the system assigns the profile class. When you modify an existing Profile class in the Customer Profile Classes window. AR generates the Update Customer Profiles report. you must enter the customer name. Setup for Entering Transactions From the transaction window. You have to set up Receivables to enter transactions. and address in a profile class. After the customer profiles are updated. • • • For the AR module to function. Update All Profiles: Updates new profile class values for all the customers assigned to the profile class. After the customer profiles are updated. You can choose one of these options: • Do Not Update Existing Profiles: Prevents update of existing customer profiles with the new profile class values. number. Screenshot below shows the Transaction Types window where you define a transaction type: . on-account credits. AR generates the Update Customer Profiles report that helps you track changes made to a profile.Class. The transaction type defines the accounting for the debit memos. credit memos. you need to define transaction types. and commitments. Defining Transaction Types Before entering a transaction. Default. The Exceptions section of this report mentions the customized profile classes that were excluded from the update process but can be updated manually. accounting rules. the system assigns the new profile values to only the new customers assigned to this profile class. the changes affect only that customer and not the other customers assigned to the same profile. to each new customer entered. credit memos. When you change the information for a certain customer assigned to a particular profile. Update All Uncustomized Profiles: Updates customer profiles for only those options that currently have the same original setting as the profile class. the system displays a pop-up window that lets you decide how to apply changes. When you choose this option.
You cannot update this field after you enter transactions of a particular type. Choose any one Transaction status from the options. and unearned revenue accounts. choose Positive Sign. 7. ○ Invoice. revenue. Negative Sign. tax. freight. Define the transaction types in the order: ○ Credit memo transaction types. deposit. clearing. Pending. credit memo. and chargeback transaction types. 6. unbilled revenue. or Any Sign. Enter the flexfield GL code combination for the receivable. ○ Commitment transaction types. The classes are invoice. These options determine whether or not transaction entries update customers' balances and whether or not Receivables posts these transactions to the general ledger. or Void. For transaction types of class Guarantee or Deposit. Choose a Creation Sign from the options Positive Sign. Check the Allow Freight box to enable freight to be entered for this transaction type. chargeback. Open. 8. or guarantee. Name the transaction type and choose the class. Attach the payment terms to the transaction type. Determine the creation sign for the transaction. debit memo.The Transaction Types Window To define the transaction type: 1. When defining the Transaction type: • . debit memo. Closed. 2. 3. Check the Open Receivables and post to GL option. 5. 4.
• Defining AutoAccounting You must define AutoAccounting before entering transactions in Receivables. taxes. When you enter transactions in AR. you do not need to enter the Freight Account. you must enter a revenue account. is set to Yes. AutoAccounting specifies how AR determines the general ledger accounts for transactions that have been either manually entered or imported using AutoInvoice. unbilled receivables. . receivables. freights. Receivables use the clearing account if you have enabled this feature for transaction sources that are used for imported transactions. unearned revenues. and AutoInvoice clearing accounts using the information provided in this window. You can define AutoAccounting rules in the window shown - The AutoAccounting Window To define the AutoAccounting rules: 1. Open the AutoAccounting window. AR uses the Unearned Account field to determine the Unearned Revenue account for invoices with the rule.• • • Enter a clearing account for invoice or debit memo transactions. If the option is set to No. AutoAccounting controls the value assigned to each segment. If the Allow Freight option is not checked. This field is skipped if the transaction type class is deposit or guarantee. Use Invoice Accounting for Credit Memos. Freight account combinations must be defined. you can override the default general ledger accounts that AutoAccounting creates. finance charges. Bill In Advance. AR creates default account codes for revenues. AR does not require you to enter a revenue account for credit memo transaction types if the profile option.
When you enter an Account Type. receivable. unbilled receivable. If you choose this option for unbilled receivable accounts. AR uses the receivable account associated with this salesperson. AutoInvoice clearing. You can use different table names for different accounts using Oracle Receivables. Active transaction batch sources appear as a list of values and choices in the Transactions. tax unbilled receivable. Transaction Types: Use the transaction types table to determine the segment of revenue. freight. Defining Transaction Batch Sources Batch sources control the standard transaction type assigned to a transaction and determine whether or not AR automatically numbers the transaction and the transaction batches. and unearned revenue accounts. Receivables displays all the segment names in the Accounting Flexfield Structure. Transactions Summary. AutoInvoice clearings. AutoInvoice Clearing. The table names are: ○ 3. For each segment. and unearned revenue account. if you want AR to use the revenue account associated with this salesperson. unbilled receivable. tax. ○ Bill-To Site: Enables you to use the Bill-to site of the transaction to determine this segment of revenue. or Unearned Revenue. Standard Lines: Use the standard memo line or inventory item on the transaction to determine this segment of revenue. Receivable. tax. either enter the table name or constant value that you want Salesreps: Select this option for AutoInvoice clearing. and Credit Transactions windows. and unearned revenue account. Screenshot below shows the window where you define the transaction batch sources: . Enter the type of account to define or choose from the options Freight. ○ ○ ○ Taxes: Specify this option if you want to use tax codes when determining tax account. and freight. or unearned revenue accounts. Revenue. freight. AR to use to retrieve transaction information. AutoInvoice clearing. tax. TaxUnbilled Receivable.2. receivable.
For Imported transaction batch sources. Determine how you want AutoInvoice to handle imported transactions with 5. Choose Correct if you want AutoInvoice to automatically update the tax rate and choose Reject if you want AutoInvoice to reject the transaction. define how AutoInvoice should handle imported transactions that have Invalid Tax Rates. 2. and you want to automatically number new batches created using this source. to start numbering your batches with 100. Enter Adjust in the GL Date in a Closed Period field for AutoInvoice to automatically set the GL date to the first GL date of the next open or future enterable period. Determine how you want AutoInvoice to handle imported transactions that have lines in the Interface Lines table that are in a closed period. For example. Name the batch source and choose the type of the batch source from the following options: ○ Manual: Use manual batch sources with transactions that you enter manually in the Transaction and Transactions Summary windows. Receivables automatically numbers the batch with the batch source name. Invalid Lines by entering either Reject Invoice or Create Invoice. Enter Reject to reject these transactions. 4. Enter a Grouping Rule to use for a transaction line.The Transaction Sources Window To define a transaction source: 1. request ID. enter 99 in the Last Number field. If you are defining an Imported transaction batch source. 6. 3. . ○ Imported: Use imported batch sources to import transactions into Receivables using AutoInvoice. check the Automatic Batch Numbering option. and enter a Last Number. If the batch source is a Manual source.
or choose ID to use its internal identifier. In the Other Information tabbed region. Screenshot shows the window where you can define Accounting rules: . The revenue is equal to the selling price multiplied by the quantity specified for that line. and the default date that you supply when submitting AutoInvoice. Choose Value to import a record into the AutoInvoice tables using its actual name. You can use accounting rules with transactions that have been imported into AR and with invoices that have been created manually in the Transaction windows. There are two types of Accounting rule types in AR. This option sets the revenue amount for each transaction line. rule start date. choose either Value or ID for each option to indicate whether AutoInvoice validates customer information for this batch source. indicate how AutoInvoice validates Invoice and Accounting Rule data for the batch source. In the Customer Information tabbed region. data. or None to 10. In the Accounting Information tabbed region. Defining Accounting Rules The accounting rules create revenue recognition schedules for invoices. You can assign a default accounting rule to the items in the Master Item window and to Standard Memo Lines in the Standard Memo Lines window. choose ID. Choose either ID or Segment to indicate whether you want AutoInvoice to validate the identifier or the flexfield segment for this batch source. The invoicing rules and accounting rules are not applicable if the cash basis method of accounting is used. Accounting rules determine the percentage of total revenue to record in each accounting period. specify the validations for AutoInvoice 12. Check the Create Clearing option. You need to define accounting rules depending upon the need of the organization where Receivables is installed. Check the Derive Date option to derive the default rule start date and default GL date from the ship date. 9. specify validations for salespersons. and sales credit. In the Sales Credits Data Validation tabbed region. sales credit types. 11. You can define multiple accounting rules. Value.7. Fixed Duration and Variable Duration. 8. order date.
Manual sequences let you decide which document numbers to assign to transactions at the time of data entry. This option generates document sequence numbers. . you need to set the document numbering option. you can use either an automatic sequence or a manual sequence set. By assigning unique numbers to each transaction. while ensuring that the numbers are unique. and finance charge activity. you can ensure that no transactions are lost. As a result. Define the revenue recognition schedule for the accounting rule. sequential document numbers without manual data entry.The Invoicing and Accounting Rules Window To enter accounting rules: 1. which are unique numbers assigned to transactions created in Receivables. You can assign document numbers to all types of transactions. it can be restored using audit records. adjustment. Choose Accounting Fixed Duration or Accounting Variable Duration Accounting rules. Open the Invoicing and Accounting Rules window and enter a name for the accounting rule. The variable duration specifies the number of periods over which you want to recognize revenue for the invoices to which you assign this rule. 4. Document sequences also generate audit data. Automatic sequences enable you to create an audit trail of unique. payment method. 3. You can also assign a different sequence for each transaction type. Setting up Document Numbering To enter transaction information. The fixed duration is entered to prorate revenue recognition evenly over a predefined period of time. imported. automatically generated. To number transactions. even if a transaction document is deleted. 2. Enter the periods for the accounting rule schedule. and manual.
You can set this option at the application level. ○ Partially Used: Allows you to enter a transaction even if no sequence exists for it. Save the data. Valid values for this option are: ○ Not Used: Enables the cursor to skip the Document Number field when you enter transactions. 2. When you create or import transactions. Mark the Copy Document Number to Transaction Number check box. 3. The transaction batch source also determines whether the same number is used for both the document and the transaction number. 3. Open the Transaction Sources window. Choose whether the document number is the same as the transaction number. Enable the Sequential Numbering Profile Option. ○ Always Used: Restricts you from entering a transaction if no sequence exists for it. . You can choose to generate a document number when the transaction is committed or when the transaction is completed. This option requires you to manually enter a document number when entering transactions.Document numbers can also be assigned for every transaction or for selected categories of transactions. The option helps determine when to generate a document number for the transactions. If you set the profile option to this value. 4. Set Document Number Generation Profile Option. 2. the transaction batch source determines whether to automatically generate the batch and transaction numbers or to enter these numbers manually. To ensure that the document number and transaction numbers are the same for the transactions of a batch source: 1. Enter or query the transaction source from this window. you cannot use the Automatic Receipts feature. You can assign document numbers at the time of: • • • • • • • • Entering commitments Entering credit memos Entering invoice adjustments Entering invoices Entering miscellaneous transactions Entering receipts Entering quick cash Creating reverse receipts To ensure correct document sequencing: 1.
After you define an activity. you cannot update the GL account for an existing activity if you have assigned the activity to a transaction. To define the receivables activity: 1. Activities that are defined in this window appear as lists of values in various Receivables windows. you cannot implement tax accounting because there is no business need to calculate tax on these activities. In the Document Sequences window. If the Oracle General Ledger module is installed. . such as the bank. and initial value for the number sequence.Screenshot shows the window. where you can define a Receivables activity: The Receivables Activities Window Note For Bank Error type activities. transaction type. enter the name. then Receivables automatically creates a corresponding document category with the same name. categories. Choose the type of activity. 2. a Receivables Activity of type Adjustment or Finance Charge. 7. At least one activity of this type must be created. Open the Receivables Activities window and enter a name and description for this activity. You can define multiple activities. then you can define sequences.5. type. adjustment. An activity type determines whether it uses a distribution set or GL account. In addition. Document Category. and you have sequential numbering enabled for this application. finance charges. and Range of Transaction Dates. Assign a sequence to one or more combinations of Application. discounts. and assignments for the journal entry categories. When you define a new payment method. The types of activities are: ○ Adjustment: Use these activities in the Adjustments window. 6. and adjustments. you cannot change its type. Defining Receivables Activities Define Receivables activities to provide default accounting information for miscellaneous cash. and system options windows.
Select this option. Unearned Discount: Use these activities in the Adjustments and the Remittance Banks windows. You must define at least one activity of this type. deposit. These activities adjust a transaction if payment is received after the discount period. otherwise. Invoice: Distributes the tax amount among the tax accounts specified by the tax code on the invoice. Entering Transaction Information To make a record of the business with the customers. Choose a GL account source from: ○ ○ Activity GL Account: Allocates the expense or revenue to the general ledger account that you specify for this AR Activity. Enter an Activity GL Account. 6. Distribution Set: Allocates the expense or revenue to the distribution set that you have specified for this AR Activity. Choose this option only if the activity type is Miscellaneous Cash. if you do not want to separately account for tax. choose NonRecoverable. Activity: Allocates the tax amount to the Asset or Liability tax accounts specified by the Receivables Activity. debit memo. Revenue on Invoice: Allocates the expense or revenue net of any tax to the revenue accounts specified on the invoice. Screenshot shows the window where you enter the transaction information: . These activities adjust a transaction if a payment is received within the discount period. or guarantee. Entering transactions in Receivable enables you to raise an invoice. None: Allocates the entire tax amount according to the GL Account Source that you specified. Earned Discount: Use these activities in the Adjustments and the Remittance Bank windows. This activity is used when you enter miscellaneous transactions. A finance charge activity is defined if you include finance charges on your statements or dunning letters. Specify how AR should derive the accounts for the expense or revenue generated by this activity by determining a GL account source. Miscellaneous Cash: Use these activities in the Receipts window when entering miscellaneous transactions. ○ ○ ○ 3.○ ○ Bank Error: Use these activities in the Receipts window. Finance Charge: Use these activities in the Customers and System Options windows. Choose the Tax Recoverable radio button if the tax is deductible. Specify a tax code source from: ○ ○ ○ 5. you need to enter information about transactions from the Enter Transaction window. credit memo. ○ 4.
If you have entered an inventory item. in the respective fields. The default currency is the currency entered at the batch level. A transaction number is unique within this batch and it is not possible to modify this number after a transaction is saved. and enter the Item. You can change the currency to any currency defined in the system. The hierarchy used by Receivables to determine the default payment terms is: ○ ○ ○ ○ Customer Bill-To site level Customer address level Customer level Transaction Type 8. and Unit Price for each item. and Location for the transaction. choose Line Items. 6. The default date is the batch date. either Invoice or Debit Memo. 10. Enter the payment terms for the transaction. If the automatic batch source is specified. AR automatically calculates the total amount for each item. Enter the customer Bill-To. transaction. Select a transaction source type with a class.The Transaction Window To enter invoices or debit memos: 1. then you need to enter a transaction number. AR automatically assigns a number when you save the transaction. then open the More section of this window and enter a unique Document Number. To enter the goods or services to bill this customer. If the batch source does not specify the Automatic Invoice Numbering profile option. 4. Open the Remit To region from this window and enter the Remit To Address for this . Open the Transactions window. enter a Warehouse Name to indicate the ship-from location for this item. then enter the GL Date for this transaction. If there is no batch information. Quantity. This field is optional. 2. If the transaction batch source has the Post to GL option set to Yes. Enter the date and currency of this transaction. 9. Name. 5. 11. 7. then the default date is the current date. If manual sequence numbering is used. 3.
You need to follow the same steps to enter commitments as those used to create invoices. To create a deposit invoice. Deposits Deposits are created to record any advance payment made by customer for goods or services that will be delivered in the future. In AR. The invoicing rule determines the accounting period in which the receivable amount is stored. The only difference is that you need to specify the transaction type as either Deposit or Guarantee. The bank account is debited and the customer account is credited. Guarantees A guarantee is created to record a contractual agreement with a customer to conduct business over a specified period. the unbilled receivable account is debited. Bank Account Debit. Money is received against the goods or services. You can either manually assign invoicing and accounting rules to transactions you create or import these rules into Receivables using the AutoInvoice utility. you can enter a range of effective dates for this commitment. . against the deposit then the customer's receivable account is debited and the revenue account is credited.12. The accounting rule determines the accounting period in which the revenue distributions for the invoice or the Invoice lines are stored. Guarantee. Entering Invoices with Rules You can create invoices that span over several accounting periods. In the Commitment tabbed region. The Invoice is raised for the goods or services and then the deposit invoice is adjusted against it. If you are ready to complete this transaction. Commitments do not include tax or freight charges. 13. The customer account is debited and the revenue account is credited. to enter Invoices for a guarantee. Deposit. After a Deposit invoice is entered and payment is received against the deposit. and the unearned revenue account is credited. After the full cycle of Guarantees is complete. If you do not assign an end date. press the complete tab. Creating an Invoice for guarantee is similar to creating a regular Invoice. several journals are created for the transaction. select the line. when: • • • The Invoice for the Guarantee is raised. If you want to enter Freight information for an invoice line. Entering Commitments A commitment may be an oral or written commitment for certain goods or services for a prevailing rate. and Customer Deposit Account Credit. You can also use the accounting rules to determine revenue recognition schedules. Deposits and Guarantee. The duration over a predefined number of periods and variable duration lets you define the number of periods during invoice entry. These are Customers Deposit Account Debit. Save the data. The invoice for the guarantee is raised and it is adjusted against the invoice raised for the goods or services. Revenue Account Credit. Receivables lets you enter invoices and credit memos against this commitment until the amount due becomes zero. The steps to create a Deposit Invoice are similar to that of creating a regular Invoice. a set of accounting entries are generated in receivables. then choose Freight and complete the information. The Invoice is raised for goods or services for the guarantee. in the set up. The unearned revenue account is also debited and the customer invoice account is credited. specify the transaction class. you can create two types of commitments. When an order is placed and an Invoice is raised for the goods and services. Use the transaction class.
The invoice raised is a bill in advance and revenue is recognized in the months ahead. the transaction must be complete. Screenshot shows the window where you create crediting transactions: . Before you create a credit memo for the transaction. for the invoice of $1. There are two types of invoicing rules. then you should recognize revenues in that particular month even though you may have received the payment when you started the service. the unearned revenue debit is $500 and the revenue credit is $500.500.500 raised for a three-month contract. the unbilled receivable debit is $500. update. For example. From the Credit Transactions window. if your company provides services and has to enter into a contract for the next three months. Freight can also be credited for an entire invoice or only for specific invoice lines. In May. The Accounting rule is three months fixed duration. The entries passed for this invoice are: • • • In April. the receivable debit is $1. When you credit a transaction. Bills in Arrears You use the bill in arrears rule if you want to record the receivables at the end of the revenue recognition schedule. Crediting Transactions Credit memos are created to reduce the balance due for a transaction. you can enter. the unbilled receivable debit is $500 and the revenue credit is $500. In June. or commitments. the accounting entries passed are: • • • In April. in April you raise an invoice of $1. the unbilled receivable debit is $500 and the revenue credit is $500. the unearned revenue debit is $500 and the revenue credit is $500.500 for a three-month contract. You can also delete an incomplete credit memo if the Allow Invoice Deletion option is set to Yes in the system option window.500. then Revenue Recognition changes the revenue GL date to the first subsequent period that has a status of Open. when the invoice is raised. the appropriate accounting entries are created. Future.The invoicing rules determine when to recognize the receivables for invoices that span over multiple accounting periods. For example. bills in advance and bills in arrears. It is an invoice created before the revenue is recognized.500. when the invoice is raised.500 and the unearned revenue credit is $1. Bills in Advance The bills in advance rule is used to recognize the receivables at the time when the bill is raised. In May. In June. when the invoice is raised. Note If the GL date for a transaction is in a period that has a status of either Closed or Close Pending. For example. The unearned revenue debit is $500 and the revenue credit is $500. You can credit an entire invoice or specific invoice lines. when the invoice is raised. debit memos. when the invoice is raised. You need to run the revenue recognition program to generate the revenue distribution. and review credit memos against specific invoices. when the invoice is raised. and the unbilled receivable is $1. the revenue credit is $500. the receivable account debit is $1. or Not Open.
Enter the batch source for the credit memo. a number is automatically assigned when the transaction is completed. In the Transactions Summary or Credit Transactions windows. Enter the percentage or amount of line. enter the number of the transaction to credit in the Find Transactions window. If you do not enter a number. then the default currency for this memo is the one assigned to the batch. 9. or freight charges to credit for only the part of the balance due. AR automatically assigns a number when you save the transaction. 8. Enter a transaction type for the credit memo. Enter the date. If this credit memo is part of a batch. Setup for Entering Receipts . You need to enter exchange rates if a currency other than the functional currency is entered. tax. 2. then the default date is the invoice date. Choose the rules method if you are crediting a transaction that uses invoicing and accounting rules. then the default date is the current date. You can choose a transaction type with a class of credit memo. If you chose Credit Transactions from the Main menu. If the date of the invoice is later than the credit memo date. which is printed on the credit memo. If automatic sequence numbering is used. If the batch date is earlier than the date of the credited transaction. Enter the currency for the credit memo. 7. 10. Save the data and complete the transaction. if the automatic sequence numbering is not used. then enter a credit memo number. query the transaction to credit. The balance due for each type of charge that is credited is created in the interface table and the sales revenue and non-revenue credit assigned to your salespersons are reversed. 3. The default is the batch source of the transaction that is being credited. 5. 6. Enter a unique document number for this credit memo. If the batch source does not use the automatic transaction numbering option.The Credit Transaction Window To create a credit memo against a transaction: 1. 4. The default is the transaction type assigned to the invoice.
Enter the Electronic Funds Transfer (EFT) number if required. receipt batch sources. Screenshot shows the Banks window where you enter information on the bank: The Banks Window To define a bank and bank branches: 1. In the Banks window. define a Bank Errors Account. . enter the basic bank information. and select bank as the Institution. and receipt classes. If you are using Oracle Cash Management. bank number. and a Cash Clearing Account for each bank account you plan to reconciliate. and address. such as the bank name. a Bank Charges Account. 2. branch number. Defining Banks Enter the bank information for bank branches with which you do business. Each bank branch can have several bank accounts and each bank account defined can be associated with the payables payment documents and receivables payment methods. 3. Enter the name and other information about your bank contacts in the Contact region and save the data. branch name.For creating receipts in receivables you need to record information about banks.
7. Click the Bank Account button. 6. confirmed receipts. 9. clearing account. The bank account numbers must be unique within a bank branch. enter a cash account. bank errors. 8. Defining Receipt Batch Sources The receipt batch source provides default values for the receipt class. You can enter contact information in the Account Contact region. bank charges. Screenshot below shows the Receipt Sources window: . enter receipt and discount GL account information. In the More Receivables options. payment method. as shown below- The Bank Accounts Window 5. Enter the Bank Account Branch and Bank Account Number. Save the data. and the future dated payments with a GL code combination. and remittance bank account fields for the receipts added to a receipt batch. In the GL Accounts window. The Bank Accounts window appears.4. Select Internal Account Use.
then you need to enter the last number you want to use when numbering your receipt batches. Screenshot shows the Receipt Classes window: . 5. Enter the range of dates during which this receipt batch source will be active. 3. The accounting for automatic and manual receipts is determined by the payment method. Defining Receipt Classes Use receipt classes to store receipt information. If automatic batch numbering is selected. 6. Enter a receipt class in the appropriate text box. Select either the manual or automatic batch numbering option. You remit receipts created using the receipt batch source to the remittance bank. Save the data and close the window. 7. In the Receipt Sources window. 2. Enter a payment method. 4. enter a unique name and description for this source. Enter a bank account to associate a remittance bank. The receipt class determines the processing steps for receipts you created using this batch source.The Receipt Sources Window To define receipt sources: 1. You can specify the payment method in the receipt class window.
3. 6. Standard and Factoring. Choose one of these Clearance Methods: ○ Directly: Use this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. By Automatic Clearing: Use this method to clear receipts using the Automatic Clearing program. Factoring. Check the Bill of Exchange box if creating a bill of exchange receipt class. 8. The automatic creation method creates receipts using the Automatic Receipt program. Open the Receipt Classes window and enter a name for the receipt class. or import information into Receivables using AutoLockbox. Enter the payment method for this receipt class. 2. Save the data and click the bank account button to assign remittance bank information. 4. as shown - . You cannot change this attribute after you assign a payment method. Receipts using this method can also be cleared in Oracle Cash Management. The manual creation method enables you to manually enter information in the Receipts or QuickCash windows. Choose a remittance method according to the type of receipt class you want. 7. The options are Standard. When you click the bank account button. ○ ○ By Matching: Use this method if you want to clear the receipts manually in Oracle Cash Management.The Receipt Classes Window To define the receipt class: 1. the Remittance Banks window is displayed. Select a Creation Method from this window. Check the Require Confirmation option for this receipt class to be confirmed before these receipts can be remitted. These receipts will be assumed to be cleared at the time of receipt entry and will not require further processing. and No Remittance 5.
and chargebacks. branch. You can apply receipts either fully or partially to a single debit item or to multiple debit items from the Receipts window.The Remittance Banks Window In the Remittance Banks window: 1. debit memos. 4. or earned and unearned discount account information assigned to this payment method. You apply receipts to invoices. 6. unidentified. and a range of effective dates. 5. on-account credits. Enter information related to the remittance bank. unapplied. Enter the formatting program information only if the creation method of the associated receipt class is automatic. There are two types of receipts: • • Cash receipts: Receipts. such as cash or cheques received from customers for goods or services. Miscellaneous transactions: Receipts earned from investments. Save the data and close the window. Enter a minimum receipt amount if the creation method of the receipt class is automatic. 3. guarantees. 2. on-account. refunds. as shown - . Entering Receipts You use the Receipts window to enter receipt transactions. deposits. Clear the Primary check box. When you select a receipt batch source to enter receipts. account name. if you do not want this account to be the primary remittance bank account in this currency for the payment method. AR automatically uses the cash. Enter GL Account information for the remittance bank. and stock sales other than regular sales. interest. such as the bank name.
You can apply all receipts. The name customer associated with this transaction appears in the Receipts window. 5. then you need to use the Applications window to apply the receipts. If you are using automatic document numbering.The Receipts Window Receipts can have the status: • • • • Approved: Receipt has been approved for automatic receipt creation. To enter receipts: 1. 6. 9. From the remittance tabbed region enter the receipt deposit date. This value is optional. 3. Enter a payment method. receipt amount. Enter the receipt number. Enter the transaction number of the customer for the receipt. If you have not entered the transaction. 7. currency. or on account credit to a single debit item or to several debit items. apply the receipt number by pressing the Application button and then choose the transaction. Confirmed: Manually entered receipts that require remittance. a unique number is assigned automatically. as shown - . 8. Open the Receipts window and choose a receipt type. Manually Applying Receipts If the receipt is not applied to the respective debit item in the Enter Receipt window. Reversed: Customer has stopped payment on a receipt. The payment method determines the accounting and remittance bank accounts for this receipt. a part of the receipt. GL date. Enter a unique document number if you are using manual document numbering. and receipt date. Accept this value or enter any bank account assigned to the payment method if the bank account is in the same currency as that of the receipt. Cleared: Payment is transferred to the bank account and the bank statement has been reconciled. 2. 4. Save the data. The default remittance bank account is displayed from the payment method you enter.
2. In the Receipts window.The Applications Window To manually apply receipts: 1. Enter the name or number of the customer if the receipt is unidentified. 5. where you perform the remittance process: . 3. You can also combine these tasks into a single task. Enter On Account in the Transaction Number field to place an amount on account. and format remittances. Select the transaction to apply this receipt from the list of values. click Application Button to apply the receipts. 4. Save the data and Receivables will update the customer's account balances. approve. Remittances You need to perform the remittance process to initiate receipts to the bank from the bank account of the customer. AR enters the amount applied for this receipt and updates the unapplied amount of the receipt and the balance due for this transaction. You have to create. Screenshot shows the Remittance window.
AR selects all confirmed automatic receipts and manual receipts that match the criteria. 6. Choose Manual Create from the main menu and specify the receipts to include in this batch. 2. Enter the batch and GL dates. Choose a remittance method. Select Auto Create to create this remittance batch automatically. 8. A unique Request ID number is assigned for your concurrent request. The default remittance bank is generally the primary remittance bank account associated with the payment method. Enter a range of payment methods and maturity dates to display or choose from: ○ ○ Query Batch Only: Displays receipts that are associated with this batch. 4. Ignore Override: Displays all receipts matching the selection criteria. . 3. Using selection criteria. Click OK. The default batch date is the current date and the GL date must be within an open accounting period. Enter the selection criteria to create this remittance batch. 2. and then select Yes from the Remittance window to acknowledge the message that is displayed. 7. Enter or select from the list the information related to the receipt class. If you choose to approve and format your batch when you create it. The factoring method lets you borrow money against the receipts before the maturity date. specify the transactions that will be displayed by AR. payment method. Open the Remittances window and enter the currency for this batch. The standard method remits the batch of receipts on the maturity date. then AR initiates an additional process that creates the formatted batch information. To create a remittance batch: 1. You can either create one remittance batch for every remittance bank account or choose a clearing institution to get the receipts cleared. Manually Creating a Remittance Batch To create a remittance batch manually: 1. 3.The Remittance Window You can create remittance batches to automatically select receipts for remittance to the customer's bank and to initiate the transfer of funds. and remittance bank for this batch. 5. Check the Approve and Format options to approve and format this remittance batch.
5. A unique Request ID number is assigned for the concurrent request. 4. 6. . To add the receipts to the batch. check the status of the remittance process in the View Concurrent Requests window.○ Select All: Marks transactions that AR displays to be included in this remittance batch. Query the receipts. Save the entered data to create the batch. The report lists the number and amount of remittances in this batch. Using this Request ID. Note After you submit the request. AR creates the Automatic Receipts and Remittances Execution report. check the box next to each receipt.
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