How To Setup Freight For AutoInvoice
To
And The Transactions Workbench (Doc ID Bottom
1096942.1)
In this Document
Goa
l
Solutio
n
1. Check Freight
Setup
a. Transaction Type
Setup
b. Freight As An Inventory
Item
c. System Profile
Options
d. Settings In Order
Management
e.
Summary
2. Troubleshooting
Freight
3. Still Have
Questions?
Reference
s
APPLIES TO:
Oracle Receivables - Version 11.5.10.0 and later
Information in this document applies to any platform.
Executable:RAXMTR - AutoInvoice Master Program
Executable:RAXTRX - AutoInvoice Import Program
Form:RAXSUCTT.FMB - Define Transaction Types
Form:ARXTWMAI.FMB - Transactions
GOAL
Oracle Receivables (AR): AutoInvoice Information Center
>Troubleshooting AutoInvoice for Oracle Receivables Release 11.5
Through 12 > Note 1096942.1
Oracle Receivables (AR): Transactions Workbench Information
Center > Note 1096942.1
This note is intended to facilitate troubleshooting issues regarding freight in
AutoInvoice and the Transactions Form.
This note should be used in conjunction with:
Note 1075757.1, Troubleshooting AutoInvoice for Oracle Receivables
Release 11.5 Through 12
Note 764297.1, How Tax on Freight Works in R12 E-Business Tax
(EBTax) Order to Cash
Note 1315056.1, Troubleshooting Freight Issues in AutoInvoice and the
Transactions Workbench
SOLUTION
When processing freight in Receivables, you have two options:
1. Recognize Revenue On Freight
If you want to recognize revenue on freight and calculate taxes against it,
then you need to set up freight as an inventory item. Additionally, there are
profile options and system parameters you need to set up, please check
Section 1 below. If you set up Freight as an Inventory item, then multiple
freight lines will be at the invoice line level rather than a single freight at the
header level.
2. Do Not Recognize Revenue On Freight
If you just want a simple freight charge for additional services such as
shipping and handling or courier fees, without recognizing any revenue
against the freight amount or calculating taxes against it, then you do not
need to setup freight as an inventory item.
1. Check Freight Setup
The most important thing to review when encountering issues regarding
Freight is to review your setup. Typical issues are:
Error message: Please correct the freight account assignment, or
the segments of your GL account is not what you expected
are resolved by reviewing the Freight setup.
a. Transaction Type Setup
If you need to associate a freight charge to a transaction, ensure that your
setup for the Transaction Type allows freight.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Transaction Types
b. Freight As An Inventory Item
By default, Receivables does not calculate tax on freight charges. If you
need to calculate tax on freight, you must set up freight as an inventory
item.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Items > Define Items
Create an inventory item for freight and note the following:
In the Main tab:
Display Attributes = All
Unit of measure = Each
User Item Type = Freight (Only Items with User Item Type =
Freight, will appear in the List of Values when you define the
Profile Option: Tax: Inventory Item for Freight and the OM
Parameter: Inventory Item for Freight )
In the Invoicing tab:
Invoiceable Item = checked
Invoice Enabled = checked
The value in Sales Account is picked up by AutoAccounting if you source
from Standard Lines. Please see Note 1080995.1, Troubleshooting
AutoAccounting in AutoInvoice for additional information.
NOTE: You will need to create a Freight Inventory Item for EACH
organization in which you want to interface Freight as Revenue.
c. System Profile Options
If you process freight as revenue and you want tax to be calculated against
the freight, then you must setup the following system profile options for
your Order Management (if you interface transaction from Order
Management) and Receivables Manager responsibilities:
Releas Profile Option Valid Values Description
e
11.5 Tax: Invoice Yes/No Yes, if you want tax
Freight as calculated on freight
Revenue lines.
No, if you do not.
Tax: Inventory an Inventory Item with User Specify the inventory
Item for Freight Item Type = Freight, e.g. item associated with
Freight Charge from freight.
previous step
12.x eBTax: Invoice Yes/No Yes, if you want tax
Freight as calculated on freight
Revenue lines.
No, if you do not.
eBTax: an Inventory Item with User Specify the inventory
Inventory Item Item Type = Freight, e.g. item associated with
for Freight Freight Charge from freight.
previous step
d. Settings In Order Management
The following is only applicable from Release 12 onwards.
If you are interfacing/importing invoices from Order Management, do the
following:
Responsibility: Order Management Super User
Navigation: Setup > System Parameters > Values
Parameter Value Description
Inventory Item an Inventory Item with User Specify the inventory item
for Freight Item Type = Freight, e.g. Freight associated with freight.
Charge from previous step
Invoice Freight Yes/No Yes, freight lines will be
as Revenue interfaced with a
LINE_TYPE of LINE
No, freight lines will be
interfaced with a
LINE_TYPE of FREIGHT
NOTE: The values set for the Order Management system parameters above
are used in conjunction with the Profile Option: Invoice Freight as Revenue.
If the profile option is Yes, and if a freight line is interfaced with a LINE_TYPE
of
LINE, taxes will be calculated against the freight amount.
FREIGHT, taxes won't be calculated against the freight amount.
e. Summary
The following table summarizes the impact of the above settings:
Nam User OM OM Profil Profil RA_INTERFACE Are Revenue
e of Item Syste Syste e e _LINES_ALL. Taxes GL
Inve Type m m Opti Optio LINE_TYPE Calcul Account
ntory of Para Para on n ated From
Item Inven meter meter On Autoacc
for tory Invoi Inven Freig ounting
Freig Item ce tory ht? Setup of
ht Invoic Inven Freig Item
e tory ht as for
Freig item Reve Freig
ht for nue ht
as Freig
Reven ht
ue
Freig Freigh Yes Freight Yes Freigh LINE Yes Freight
ht t Charg t
Charg es Charg
es es
Freig Freigh No Freight Yes Freigh FREIGHT No Freight
ht t Charg t
Charg es Charg
es es
Freig Freigh Yes Freight No Freigh LINE No Freight
ht t Charg t
Charg es Charg
es es
Freig Freigh No Freight No Freigh
ht t Charg t
Charg es Charg
es es
