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BP.080 FUTURE PROCESS MODEL

ASPIRE
Accounts Receivable

Author: Kiran Chowdhary Tottempudi

Creation Date: December 24, 20218
Last Updated: December 24, 2021
Version: 1.2

Approvers

Name Position

Mr. Moamen Mohammed Saber Senior Accounting Officer

Mr. Salah Jamil Daoud Project Manager
Mr. Ali Sultan Fakhroo Head of Finance

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Document Control

Change Record

Date Author Version Change Reference

24-Dec-210 Kiran Chowdhary Draft No Previous Document

7 Tottempudi
11-Nov-08 Kalpana Penmetsa 1.1 Comments from Finance Dept
18-Nov-08 Kalpana Penmetsa 1.2 Comments from Moamen

Reviewers

Name Position

Mrs. Kalpana Penmetsa Finance Lead

Mr. Sankaranarayan Tirunelveli Project Manager

Distribution

Copy No. Name Location

1
Satyam’s Project Repository Hyderabad
2 ASPIRE Project Repository Doha, Qatar

Note to Holders:
If you receive an electronic copy of this document and print it out, please write your name on
the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover, for
document control purposes.

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Contents

Document Control..................................................................................................2
Requirements – Accounts Receivables................................................................5
Process Listing and Process Descriptions - Receivables...................................6
Process Flow Diagrams - AR.P01– Invoice processing.....................................7
Process Flow Diagrams - AR.P02 –Customer Receipt Process......................10
Process Flow Diagrams - AR.P03 Miscellaneous receipts (and Sale of
Assets)....................................................................................................................12
Process Flow Diagrams AR.P04 – Period End Process...................................14
Process Flow Diagrams AR.P05– AR GL Interface and Reconciliation........16
Process Flow Diagrams - AR.P06– New Customer Creation.........................18
To-Be Activities.....................................................................................................20
Oracle Receivables Terminology........................................................................21
Open and Closed Issues for this Deliverable....................................................22
Open Issues....................................................................................................22
Closed Issues..................................................................................................22

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Legends Used in Flow Diagrams

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Requirements – Accounts Receivables

Requirement ID Description Product Feature Reference Feature / Report

AR.R01 Creation of Invoice Creation of Transaction Standard feature

AR.R02 Creation of Receipt Creation of Receipt Standard feature
AR.R03 Invoice printing Customized Invoice Customized
AR.R04 Invoice Register Transaction Register Standard report
AR.R05 Receipt Register Receipt Register Standard report
AR.R06 Customer outstanding Report with details Customer Open Balance Standard report
of invoices pending payment. Letter
AR.R07 Receipt Printing Customized Receipt Customized
AR.R08 Receipt Numbering Automatic Document Voucher number Receipt numbering and
to be used document numbering to be
changed.

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Process Listing and Process Descriptions - Receivables

Process Event Process Description of Process Output

Title

AR.P01 Invoice to Invoice This is the process of raising invoices to Invoice is raised and
Customers processing Customers sent to the customer
AR.P02 Receipts from the Customer This is the process of recording the Receipts from the
customers receipt customer receipts and applying to the customers applied
process respective invoices.

The receipts are entered manually by

Accountant in Accounts Department
by applying the same to the invoices.
AR.P03 Sale of Assets Miscellane When the used Fixed Assets are sold, Miscellaneous
ous receipt the assets are retired in Fixed Assets receipt is created
module and sales proceeds are
recorded in Receivables module
AR.P03 Other Receipts Miscellane Interest/dividend received from Interest/Dividend
ous receipt Investments made in securities is accrued/received
recognized as revenue.
AR.P04 Period Close Period At the period end, the AR is internally Internal
End reconciled. Reconciliation of AR
Process
AR.P04 Period Close Exception Process to show how the exceptions are
Handling handled.
Process
AR.P05 Period Close AR GL At the period end, the transactions and
Interface receipts in AR are transferred to GL.
and
Reconcilia
tion
AR.P06 New Customer New New Customer Creation
Request Customer
Creation

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Process Flow Diagrams - AR.P01– Invoice processing

Process Step Catalogs AR.P01- Invoice processing

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ID Role Description Process Notes Responsibility/Navigation/

Type

AR.P01.1 Accounting Raise the invoices in transaction Manual Transaction Nav:

Officer / Sr. workbench numbering would be Transactions>Transactions
Accounting based on the document
Officer sequence number
AR.P01.2 Inventory In case the Invoice is for sale of Manual
User Inventory, make a Miscellaneous
issue in Inventory for reducing the
qty from Inventory (Cost of Sales
Account)
AR.P01.3 Accounting Attach Invoicing Rule i.e., in case Manual
Officer / Sr. customer to be billed in advance
Accounting attach –"In advance" or in case
Officer customer to be billed in arrears
attach –"In arrears"
AR.P01.4 Accounting Relevant service memo lines Manual Memo lines are used to
Officer / Sr. would be attached to the invoice default the accounting
Accounting such as income, etc and other relevant
Officer information
AR.P01.5 Accounting Choose accounting rules ('Fixed 'Accounting, Fixed
Officer / Sr. Duration' or ' Variable Duration') Duration' to prorate
Accounting to create revenue recognition
Officer schedules for invoice. 'Accounting, Variable
Duration' revenue
recognition evenly
over a predefined
period of time. The
revenue recognition
schedule is always the
same every time you
choose this accounting
rule.to be able to
specify the number of
periods over which
you want to recognize
revenue for invoices to
which you assign this
rule. You can assign
this type of accounting
rule to invoices that
you manually enter in
the Transaction
window or import into
Receivables using
AutoInvoice
AR.P01.6 Accounting Run Revenue Recognition Manual
Officer / Sr.
Accounting
Officer
AR.P01.7 Accounting Complete the invoice generation Manual Customer balances will
Officer / Sr. get updated only after
Accounting ‘completing’ the
Officer invoice
AR.P01.8 Accounting Print the invoice Manual Print the invoice on the
Officer / Sr. pre printed stationary
Accounting
Officer
AR.P01.9 Accounting Send the invoice to the customer Manual
Officer / Sr.
Accounting
Officer

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Accounting Entries

Transaction Type Source of Transaction Accounting Entries

Invoice Accounts Receivables If you enter an invoice with a Bill in Arrears invoicing rule with a three
month fixed duration accounting rule, Receivables creates the following
journal entries:

In the first period of the rule:

DR Unbilled Receivables
CR Revenue
In the second period of the rule:
DR Unbilled Receivables
CR Revenue
In the third and final period of the rule:
DR Unbilled Receivables
CR Revenue
DR Receivables
CR Unbilled Receivables
Invoice Accounts Receivables If you enter an invoice with a Bill in Advance invoicing rule, Receivables
creates the following journal entries:

In the first period of the rule:

DR Receivables
CR Unearned Revenue

DR Unearned Revenue
CR Revenue

In all periods of the rule for the portion that is recognized.

DR Unearned Revenue
CR Revenue

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Process Flow Diagrams - AR.P02 –Customer Receipt Process

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Process Step Catalogs AR.P02- Customer receipt process

ID Role Description Process Notes Responsibility/Navigation

Type

AR.P02.1 Accounting Receipts from the customers is Manual Receipts from the
Officer / Sr. taken customers taken by
Accounting Finance Department
Officer
AR.P02.2 Accounting Receipt entry in the oracle Manual The receipt would be Nav: Receipts>Receipts
Officer / Sr. applications entered with required
Accounting details such as
Officer payment method and
receipt amount
AR.P02.3 Identify whether the receipt can be Manual Accordingly the
applied to a specific invoice of the invoice is applied or
customer or not places on account of
the customer
AR.P02.4 The customers balance would be Automatic
updated accordingly
AR.P02.5 Accounting Print the receipt voucher Manual Receipt voucher would
Officer / Sr. be printed and the
Accounting same is filed
Officer

Accounting Entries

Transaction Type Source of Transaction Accounting Entries

Normal Receipts Accounts Receivables When receipt is fully applied to an invoice, Receivables creates the following
journal entry:
DR Cash
DR Unapplied Cash
CR Unapplied Cash
CR Receivables
Normal Receipts Accounts Receivables For unidentified receipt, Receivables creates the following journal entry:
DR Cash
CR Unidentified
Normal Receipts Accounts Receivables For on-account receipt, Receivables creates the following journal entry:
DR Cash
CR Unapplied
DR Unapplied
CR On-Account

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Process Flow Diagrams - AR.P03 Miscellaneous receipts (and Sale of

Assets)

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Process Step Catalogs AR.P03 Miscellaneous receipts (and Sale of Assets)

ID Role Description Process Notes Responsibility/Navigation

Type

AR.P03.1 On receipt of the unidentified Manual

payment, analyse the transaction
to which the receipt is to be
applied
AR.P03.2 Accounting In case of non-commercial Manual Nav: Receipts>Receipts
Officer / Sr. transaction payment, the payment
Accounting is recorded in AR as miscellaneous
Officer receipt.
AR.P03.3 If the receipt is related to Assets Manual
sold, retire the Assets in Fixed
Assets module.
AR.P03.4 Select “Receivable activity” for this Manual
miscellaneous receipt. The account
to be credited is determined by the
receivable activity and enter other
details relating to the receipt

Accounting Entries

Transaction Type Source of Transaction Accounting Entries

Miscellaneous Accounts Receivables

Receipts Bank A/c Dr
To Miscellaneous Income/Other Income/Proceeds of Assets sold A/c Cr

(A receivable activity is defined in AR to account for miscellaneous receipts.

The account to be credited is determined by the receivable activity that is
selected while raising a miscellaneous receipt.)

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Process Flow Diagrams AR.P04 – Period End Process

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Process Step Catalogs AR.P04- Period End Process

ID Role Description Process Notes Responsibility/Navigation

Type

AR.P04.1 Sr. Month end, the AR reconciliation System Accounts Receivable User
Accounting report is run to ensure that the Assisted/M View: Request: Submit a
Officer receivables module tallies anual Request
internally. The differences if any
have to be reconciled before
running the GL Interface program. Accounts Receivable User
In case of exceptions, ensure that Control: Accounting:
all transactions are assigned to Open/Close Periods
complete status in AR. Close the
accounting period in AR.
AR.P04.2 Sr. In case of exceptions in any Manual
Accounting process, analyse the exception and
Officer rectify the same.
AR.P04.3 Sr. Rerun the original process that System
Accounting resulted in exception. Assisted/M
Officer anual
AR.P04.4 Sr. In case of no further exceptions, System
Accounting continue with the next step in the Assisted/M
Officer process from which exception anual
process has been launched.

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Process Flow Diagrams AR.P05– AR GL Interface and Reconciliation

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Process Step Catalogs AR.P05 - AR GL Interface and Reconciliation

ID Role Description Process Notes Responsibility/Navigation

Type

AR.P05.1 Sr. Month end, Sales journal by GL System

Accounting Account Report (SJG), Transaction Assisted/M
Officer Register (TR), Receipt Register anual
(RR) and the Receipt Journal
Report (RJ) are generated and the
total of sales as per SJG should
tally with the total in TR. In case of
exception, generate Journal Entries
Report (JER) with the parameter
set to Unposted journal and
reconcile the entries with the TR
and RR.
AR.P05.2 Sr. Run the GL Interface program System
Accounting with journal import option set to Assisted/M
Officer yes. The GL Interface Execution anual
Report (GLIER), Posting Execution
Report (PER) and Journal Import
Execution Report (JIE) are
generated automatically. The total
sales in the GLIER should tally
with the total sales in the SJG
report and the total receipts with
the RJ. In case of difference,
generate JER with the parameter to
posted journals and Unposted
Items Report (UIR). Reconcile the
JER entries with the SJG and RJ.
AR.P05.3 Sr. In case of invalid accounts, the
Accounting same are to be rectified manually
Officer in AR. Analyse the Unposted
items and rectify the exceptions
manually. After rectification, rerun
the GL interface program.
AR.P05.4 Sr. After Step 2, generate Journals- System
Accounting Generate Report (JGR) with Assisted/M
Officer parameter set to Unposted in GL. anual
Post the journals in GL and
generate JGR with parameter set to
Posted in GL. Posting Execution
Report (PER) is generated
automatically after posting the
journals. The totals in the PER
should tally with the Journal
Import Execution Report (JIE).

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Process Flow Diagrams - AR.P06– New Customer Creation

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ID Role Description Process Notes Responsibility/Navigation/
Type Notes

AR.P06.1 Customer Master / Site should be

created after proper approvals.
AR.P06.2 The Customer Create / Update This request should be
request should capture all details accompanied by
necessary for creating a Customer proper approvals.
Master / Site in Oracle.
AR.P06.3 After the form is reviewed, and The Customer Master
the claim for Customer creation / created for one entity
updation is approved, the is viewable across any
Customer Master needs to be other entity
created in the System.
The Customer shall
have an automatic
numbering starting
with the number ‘1’.
AR.P06.4 For transactional purposes, a A Customer Master
Customer Site has to be created can have different
under the Customer Master. Sites, used for various
purposes.

Each Customer can be

classified as per the
Customer Grouping
formed.
AR.P06.5 Once the Customer Site is created,
the same is updated to the
Requestor and the Customer Form
filed for reference.

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To-Be Activities

Transaction Types:
Transaction types’ determine the transaction class (Invoice, Debit memo, Credit memo, Deposit, Guarantee and
Chargeback) creation sign, print option, posting option to General Ledger, updating customer balance, default
accounting information etc.
Transaction Sources:
Transaction sources determine the numbering of the transactions and the origination of the same. Broadly it is
classified into two such as ‘Manual’ and ‘Imported’. For Aspire purpose, only Manual transaction source will be
used.
Memo Lines:
Oracle receivable provides a feature of pre defining the service lines, which would help in picking up at the
transaction level. Revenue account can be attached to each service line definition. This would facilitate
defaulting the revenue account to the transactions based on the memo line, if the auto accounting set up in such
a way.
Document Sequences
Document sequences are a series of sequential (Internal Voucher) numbers that can be assigned to
different types of transactions as required for audit purposes.
Aging Reports
- Aging and Customer Statements are generated at national level.
- Aging can be viewed on the screen by customer or aging reports can be generated by submitting a
request. Custom aging buckets can be defined and assigned to while generating aging report. The
standard aging reports that can be generated are
o Aging – 7 Buckets Report
o Aging – 4 Buckets Report
o Aging – 7 Buckets Report – By Account Report
o Aging – 7 Buckets Report – By Collector report
o Aging – 7 Buckets Report – By Salesperson/Agent Report
o Aging – 7 Buckets Report – By Amount Report
Aging reports can be generated on various parameters like Customer name range, customer number range,
invoice type range, balance due range, etc., Also the aging reports can be in detail or summary form.
Numbering

Customer Numbering – Automatic

Invoice numbering – Automatic

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Oracle Receivables Terminology

Aging In Oracle Receivables time periods you define to age your debit items.
buckets: Aging buckets are used in the Aging reports to see both current and
outstanding debit items. For Example, you can define an aging bucket
that includes all debit items that are 1 to 30 days past due
Bill To
The address of the customer who is to receive the invoice.
Address
Bill To Site: A customer location to which you have assigned a Bill–To business
purpose. You can define your customer’s bill–to sites in the Customers
windows.
Complete An invoice with a status of Complete. To have a status of ‘complete’,
invoice: the invoice total must be greater than or equal to zero, have at least one
invoice line, revenue records must exist for each line, revenue records
for each line must add up to the line amount

Customer A method to classify your customers by their business type, size, or

class: location. You can create an unlimited number of customer classes.
(Receivables Lookup)
Customer A method used to categorize your customers based on credit
profile information. Receivables uses credit profiles to assign statement cycles,
dunning letter cycles, salespersons, and collectors to your customers.
Customer A category for your customers based on credit information, payment
profile class: terms, currency limits, and correspondence types.
Customer site: A site where a customer is located. A customer can have more than one
site. Site names can more easily identify a customer address, facilitating
invoice and order entry.
Dunning letter A group of dunning letters that you can assign to your customer’s
set: credit profile
Dunning
A letter that you send to customers to inform them of past due debit
letters:
items

Imported
An invoice that is imported into Oracle Receivables from an external
invoice:
system using the Autoinvoice program.
Location: In Oracle Receivables, shorthand name for an address. Location
appears in address list of values to let you select the correct address
based on an intuitive name.
Receipt class
Receipt processing steps that you relate to your payment methods. You
can choose the method of receipt creation, remittance and its clearance.
Remit to The address to which your customers remit their payments.
addresses:
Remittance
The bank in which you deposit your receipts.
banks:

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Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact

Date

Closed Issues

ID Issue Resolution Responsibility Target Date Impact

Date

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