Oracle Applications 11i

Oracle Accounts Receivables

Oracle Accounts Receivables
Agenda
‰ Overview of AR ‰ Processing Automatic
‰ Managing Customers Receipts
‰ Processing Invoices ‰ Remitting Receipts
‰ Processing Invoices Using ‰ Managing Collections
Auto-Invoice ‰ Tax Accounting Process
‰ Processing Commitments ‰ Period Close Process
‰ Processing Customer ‰ Receivables Setup
Adjustments ‰ Profile Options
‰ Applying Receipts ‰ Reports
‰ Implementing Auto-Lockbox
 Overview of Oracle
Accounts Receivables
 Overview of AR
‰ Oracle Receivables provides three integrated workbenches to perform most of the day-to-
day Accounts Receivable operations.
‰ Use the Receipts Workbench to perform receipt-related tasks
‰ Use the Transactions Workbench to process invoices, debit memos, credit memos, on-
account credits, chargebacks, and adjustments.
‰ Use the Collections Workbench to review customer accounts and perform collection activities
such as recording customer calls and printing dunning letters.
‰ Use the Collections workbench to also place a customer account on credit hold, place items
in dispute, view the dunning history for a transaction, and correspond with customers by
recording customer calls.
‰ Each workbench helps find critical information in a flexible way, see the results in a defined
format, and selectively take appropriate action.
‰ The Receipts and Transactions workbenches let you view records one at a time or as a
group.
‰ Detail windows display only one receipt or transaction at a time, but provide more information
about the record because they contain more fields and tabbed regions.
‰ Summary windows, by contrast, can display multiple records at once but require "drill down"
to the detail window to view additional information about the current record.
 Overview of AR
‰ Receipts Workbench: Receipts, Receipts Summary, Receipt Batches and Receipt Batches
Summary
‰ Transactions Workbench: Transactions and Transactions Summary, Transactions Batches
and Transaction Batches Summary
‰ In the Receipts and Transactions Workbenches, the Tools pulldown menu lets you perform
operations in addition to those provided by the action buttons.
‰ In the Receipts Workbench, view the sum of multiple receipts in the Receipt Totals window,
and review the functional currency gain or loss resulting from a currency exchange rate
adjustment in the Receipt History window.
‰ In the Transactions window there is no Copy button, but still copy a transaction by choosing
Copy To from the Tools menu.
‰ Similarly, the Balances button does not appear in the Transactions Summary window, but
can be displayed in the Transaction Balances window by choosing Balances from the Tools
menu.
‰ View the detail accounting lines for an item in the form of a balanced accounting entry (i.e.,
debits equal credits) by choosing View Accounting from the Tools menu.
‰ View the detail accounting as t-accounts
 Overview of AR

Create
Create Profile
Profile
Classes
Classes

Enter
Enter Create
Create Print
Print Send
Send to
to
Customers
Customers Invoices
Invoices Invoices
Invoices Customers
Customers

Use
Use
iReceivables
iReceivables

Receipts
Receipts Collections
Collections
 Overview of AR
Customers Overview

Create customer Enter customer Assign

profile classes information customers to
profile classes

Review customer Eliminate duplicate Create customer

information information relationships
 Overview of AR
Transaction Workbench
Deposit
Deposit Guarantee
Guarantee Standard
Standardinvoice
invoice

Copy
Copy

Print
Printand
andsend
sendinvoice
invoiceto
tocustomer
customer

Correct Invalid
Correctinvoice
invoice Underinvoice
Underinvoice Overinvoice
Overinvoice Invalid
transaction
transaction

Void
Void Delete
Delete
Process
Processand
andprint
print

Enter
Enterreceipt
receipt

Generate
Generatestatement
statement Interface
Interfaceto
toOracle
OracleGeneral
GeneralLedger
Ledger
 Overview of AR
Receipt Workbench

Apply
Apply to
to
Enter
Enter receipt
receipt customer
customer
account
account oror
invoice
invoice

Update
Update
customer
customer
balance
balance

Reconcile
Reconcile
Clear
Clear bank
bank
receipt
receipt statement
statement
 Overview of AR
Collections Workbench
Customer
Customer Customer
Customer
Scheduler
Scheduler account workbench
account workbench

Account
Account Release/
Release/ Corres-
Corres-
Aging
Aging
overview
overview credit
credithold
hold pondence
pondence

Account detail • Account detail

Transaction
Transaction • Call
overview
overview • Print statement
• Account detail • Print dunning
• Call Account
Account Call
detail
detail
Call AA
 Overview of AR
Collections Workbench
Customer Account
Account Call
Call
AA Account
detail
detail
• Customer account
• Transaction overview
• Correspondence

Trans./Receipt
Trans./Receipt Dispute
Dispute
Adjust
Adjust Balances
Balances Activity
Activity workbench
workbench history
history
Managing Customers
 Managing Customers
Integrating Customer Information

Customer
Customer Oracle
Oracle Order
Order
Information
Information Management
Management

Shared
Shared with
with Oracle
Oracle
Projects
Projects

Oracle
Oracle
Receivables
Receivables
Oracle
Oracle CRM
CRM
Owned
Owned by
by Suite
Suite
 Managing Customers
Customer Entry Methods

Enter complete Enter limited Import from

details information other systems

Standard Quick customer Customer

customer entry entry interface
 Managing Customers
Enter Customer Information
• Use all of the following methods to enter customer information, for example,
addresses, phone numbers, contact names, and business purpose:
– Standard
– Quick
– Interface

Setting Customer Tax Attributes

• Standard: The taxing function refers to the tax tables to determine if the
customer requires tax addition. If so, it selects the appropriate taxing method.
• Exempt: No tax addition; Manually enter the tax exemption number and reason
• Required: The taxing function always uses tax addition
 Managing Customers
Using Standard and Quick Customer Entry
Customer

Telephone Contacts
Classification Addresses Marketing
numbers

Payment Relationships
Profile Bank
method
class accounts
Business
purpose

Order Management
Details
information
Accounting
 Managing Customers
Interface Customer Entry

External Temporary Oracle Receivables

Databases Interface Tables Customer Tables

Correct errors
with SQL*Plus

Customer Interface
Execution Report
 Managing Customers
Customer Form Flow
The Find/Enter Customers
window displays to
ensure that you search
existing customers
before you enter new
customers
Search using the following
methods:
• Basic(default):
Search based on
Address
Components
• Advanced: Detailed
searches based on
Taxpayer
information and
other references
• Text: A Simple text
search
After this process, the
Customers - Standard
form displays
 Managing Customers
Find Customers – Fuzzy Search
Fuzzy Search
The fuzzy search method widens the
scope of a search and finds data
comparable to the search criteria. In
the Customer Find/Enter window you
can perform a fuzzy search on
several fields. The fields you can
fuzzy search are:
•Person First Name
•Person Last Name
•Organization Name
•Address
•Contact First Name
•Contact Last Name
The fuzzy search method uses Word
Replacement pairs to map a word,
abbreviation, or special character that
might be entered by a user as a
search criteria to a similar word,
abbreviation, or special character.

(N) SetupÆExpendituresÆExpenditure Types

 Managing Customers
Match Results Window
Note the following in the Match Results
window:
• The title bar of the Match Results window
displays the Customer Type used for the
search and the search criteria.
• If a party has multiple customer accounts,
the party name displays (indented to the
right) in the Name column next to each
customer account.
• When the results of a search for a Person
customer type display, the First Name
and Last Name fields from the Find/Enter
Customers window are concatenated.
• The Match Results window displays both
the Party Number and the Customer
Number columns.
• If the Identifying Address Flag check box
is checked, then other party sites could
exist for this party.
• The Name and Customer Number fields
can not be hidden in the view of the
Folder.
• Do not resort the results using different
fields. The resulting list of parties and
customer accounts may appear
confusing.
(N) SetupÆExpendituresÆExpenditure Types
 Managing Customers
Entering Customer Addresses
-Enter, add, change, or deactivate
customer address information
-Validate addresses using flexible
address formats or the address
validation system option
-The system will not allow updation of
the components of an address if the
following are true:
•The system option Allow Change to
Printed Invoices is No.
•At least one printed, posted, or
applied transaction exists for this
bill-to or ship-to site in Receivables
and that transaction has associated
tax lines
-Values assigned on a customer site
(address) level take precedence over
values entered at the customer, profile
class, or system options level.
-In a sales tax based system,
Receivables calculates tax based on
the address components of the sales
tax structure.

(N) CustomersÆCustomer Accounts

 Managing Customers
Customer Addresses
• Allow multiple organization or person customers can do business at one
location.
• Are global (not specific to operating units).
• Allow you to perform address validation using Vertex or TaxWare information.
• Have flexible address formatting with seeded and custom formats.

Customer Accounts
• Customer accounts model relationships between an organization deploying
Oracle Applications and an organization or person customer stored in the new
customer model registry.
• Additional organizations or person customers can play roles in accounts. The
new account model retains release 11i customer model features including:
– Credit profiles
– Terms of relationship (for example, discount terms)
– Customer bank accounts
 Managing Customers
Customer Addresses
Enter
Enterthetheaddress
addressforforthe
the
Customer.
Customer.IfIfthethetax
taxmethod
methodisis
Sales
SalesTax,Tax,the
thesystem
systemuses
uses
validated
validated customeraddress
customer address
information
informationto todetermine
determinetaxtax
liability
liabilityon
onthe
thecustomer's
customer's
transactions
transactions

Addresses
Addressesassigned
assigned
totoBill-To
Bill-Tobusiness
business
purposes
purposesare areused
usedfor
for
all transactions
all transactions

Addresses
Addressesassigned
assigned
totoShip-To
Ship-Tobusiness
business
purposes
purposesareareused
usedfor
for
all
alltransactions
transactionsexcept
except
commitments.
commitments.

The
TheBill
BillTo
Tolocation
locationto
to
associate
associatewith
withthis
this
Ship
ShipTo
Toaddress
address
 Managing Customers
Business Purposes

Each address can have multiple business purposes.

•• Ship
Ship To
To site
site •• Ship
Ship To
To site
site •• Bill
Bill To
To site
site
•• Bill
Bill to
to site
site •• Marketing
Marketing •• Statements
Statements
•• Dunning
Dunning
•• Legal
Legal
 Managing Customers
Business Purposes
Business purposes describe which functions are performed at a particular customer
site. Common Types of Business Purposes include:
Bill To: Send invoices to this address.
Drawee: A customer drawee is a customer site responsible for paying bills
receivable.
Ship To: Send goods or services to this address. Can be different from this
customer's Bill-To address.
Statements: Send customer statements to this address. Can only define one active
statement business purpose for each customer.
Dunning: Send customer dunning letters to this address. Can only define one
active dunning business purpose for each customer.
Legal: A legal site is responsible for all government reporting requirements.
Marketing: Send marketing collateral to this address.
 Managing Customers
Assigning Business Purposes Enter
Enteraaname
purpose
namefor
in the
forthis
thisbusiness
Location
business
purpose in the Locationfield,
field,IfIf
Automatic
Automatic Site Numberinginin
Site Numbering
the
theSystem
SystemOptions
Optionswindow
windowisis
set
setto
toNo
No

Enter
Enterthe
theTerritory
TerritoryFlexfield
Flexfieldto
to
associate
associatewith
withthis
thisaddress
address
Enter
Enterthe
thedefault
defaultfinance
finance
charges
charges activityfor
activity forthis
this
customer
customer

Enter
Entervalues
valuesininthisthis
region
regionififthis
thisisisaa
Ship-To
Ship-Tosite.
site.
Choose
Chooseoneoneofofthe
theTax
Tax
Classifications
Classificationsdefined
defined
ininReceivables
ReceivablesLookup
Lookup
Codes
Codes
The
Thelocation
locationofofinventory
inventory
for
for thisbusiness
this businesspurpose
purpose
address.
address.

Choose
Chooseaatax taxrounding
rounding
rule
rulefor
fortransactions
transactions
IfIfthe
theinventory
inventorylocation
location billed
billedto
tothis
thissite.
site.
entered
enteredisisassociated
associatedwithwithan
an Choose
ChoosefromfromUp,
Up,
organization,
organization,thethesystem
system Down
Downor orNearest.
Nearest.
displays
displaysthe
theorganization
organization Values
Valuescancanbebeentered
enteredininthis
this
name
nameininthis
thisfield.
field. region
region if this is aBill-To
if this is a Bill-Tosite
siteand
and Choose
Chooseaatax taxcalculation
calculation
Allow
AllowOverride
Overrideisissetsetto
toYes
Yesinin level
level((line
lineor
orHeader)
Header)ifif
the
theTax
Taxtabbed
tabbedregion
regionofofthe
the the
theTax
TaxMethod
MethodisisVAT.
VAT.
System
System Optionswindow.
Options window.
 Managing Customers
Business Purposes – Accounts Tab

The
TheReceivable
Receivableaccount
accountfor
forthis
this
address
address The
TheFreight
Freightaccount
accountfor
forthis
this
address.
address.AutoAccounting
AutoAccountinguses uses
this
thisvalue
valueito
itoderive
derivethe
theFreight
Freight
account
accountfrom
fromthe
thetransaction
transactionbill-
bill-
to
tosite.
site.
The
TheRevenue
Revenue
account
accountfor
forthis
this
address
address

The
TheTax
Taxaccount
accountfor
forthis
this The
TheAutoInvoice
AutoInvoiceClearing
Clearingaccount
accountfor
for
address
address this
thisaddress.
address.AutoAccounting
AutoAccountinguses uses
this
thisvalue
valueto toderive
derivethetheAutoInvoice
AutoInvoice
Clearing
Clearingaccount
accountfromfromthe
thetransaction
transaction
bill-to
bill-tosite.
site.AAvalue
valuecan canbebeentered
enteredinin
this
thisfield
fieldonly
onlyififthe
thebusiness
businesspurpose
purpose
for
forthis
thisaddress
addressisisBill-To.
Bill-To.
Unbilled
UnbilledReceivable
Receivableaccount
account
for
forthis
thisaddress.
address.

The
TheUnearned
UnearnedRevenue
Revenue
account
accountfor
forthis
thisaddress.
address.
 Managing Customers
Order Management Attributes in Customer Tables
Order Defaults Scheduling Shipping Defaults
Defaults

• Order Type
• Price List /GSA • Warehouse
• Item Identifier • Earliest Schedule • Freight Terms
Type Limit • FOB
• Request Date • Latest Schedule • Ship Method
Type Limit • Over/Undership
• Put Lines in Sets • Push Group Preferences
Schedule Date
 Managing Customers
Order Management Attributes The point or location where the ownership
title of goods is transferred from the seller to
The order type Order To determine whether the the buyer. Receivables uses the Ship-To
Management must enter as customer is responsible for the FOB and then the Bill-To FOB as the default
Name of the price list that a default value in the freight charges for an order
Order Management uses as value when transactions are entered.
Returns window when
the default value in the Sales returns are entered for this
Orders window. customer

The shipping method that the

Determines whether the
organization intends to use to
ship date or arrival date will
transport items. The system
be used as request date.
first uses the Ship-To and then
the Bill-To freight carrier as
the default during transaction
entry.

The amount by which an

Indicates whether to The amount by which an
Store order management information in both the under return can be less
invoice for the ordered under shipment can be less
than the original order,
customer header and address business purpose quantity or the fulfilled than the original order,
expressed as a
quantity. expressed as a percentage
levels. This information defaults during order entry. percentage.
 Managing Customers
Customer Contacts and Roles
Enter
Enteraaunique
uniquecontact
contact
number,
number,ififthe
theAutomatic
Automatic
Contact
ContactNumbering
Numberingprofile
profile
option is No
option is No

Contact roles allow assignment of a contact to a

particular business purpose or function. Contact The system displays contacts in the
roles are for informational purposes only. Each Transaction and Collections windows.
contact can have multiple roles but only one
primary role.
 Managing Customers
Bank Accounts The primary bank account for a particular currency is
used as the default account when Automatic Receipts
are used. Only one active, primary account per
Enter
Entereither
eitherthe
theAccount
AccountName
Name currency for the customer or site can be assigned.
or
orAccount
AccountNumber
Numberfor
forthis
this
bank
bankaccount
account

Assign bank accounts to customers to allow funds to

be automatically transferred from these accounts to
the remittance bank accounts when using Automatic
Receipts. Define multiple, non-primary accounts in
the same currency, even if the date ranges overlap.
 Managing Customers
Payment Methods During
Duringtransaction
transactionandand
receipt
receiptentry,
entry,the
thesystem
system
uses
usesthe
theprimary
primarypayment
payment
method
method definedas
defined asthe
the
default.
default.

Assign automatic payment methods to customers if

Automatic Receipts are being used. Payment Assign multiple payment methods to a
methods determine the required processing steps customer as long as the start and end
for automatic receipts, such as confirmation, dates of each method do not overlap.
remittance, and reconciliation
 Managing Customers
Profile – Transaction

Customer Profiles group customers with similar credit worthiness,

business volume, and payment cycles. Define standard customer
profiles in the Customer Profile Classes window. The customer
profile class assigned provides the default values which can be
optionally changed.
 Managing Customers
Customer Relationships
Create customer relationships to control:
• Payment of unrelated invoices
• Sharing of pricing entitlements
• Consolidation of business addresses
• Link one customer to another.
• Enforce invoicing and receipt-application controls.
• Can only exist between two customers.
• Are not transitive: If A is related to B and B is related to C, A and C are not
related.
• Can be reciprocal or nonreciprocal.
• Allow you to select a related customer’s ship-to address during order entry.
 Managing Customers
Customer Relationship

Primary Related

Reciprocal
Related Primary

Nonreciprocal

Primary Related
(parent) (child)
 Managing Customers
Customer Relationships
Enter
Enterthe
theType
Typeofofrelationship
relationship
to
to use to classifycustomers.
use to classify customers.
This
Thisfield
fieldisisonly
onlyfor
for
Allows
Allowscustomers
customersto topay
pay informational
informationalpurposes.
purposes.
Specifies each
eachother's
other'sdebit
debititems
itemsand
and
Specifieswhether
whetherthe the enter
relationship
relationshipisisaasill
silltoto enterinvoices
invoicesagainst
againsteach
each
relation other's
other'scommitments.
commitments.
relation

Specifies
Specifieswhether
whetherthe the
relationship
relationshipisisaabill
billtoto
relation
relation

(N) CustomersÆCustomer AccountsÆRelationships

 Managing Customers
Party Relations

Relationship The
Theparty
partythat
thatthe
Relationshiptypes
types the
customer
customer isrelated
is relatedtoto The
categorize
categorize Theparty
partytype
typeofofthe
the
relationships.
relationships. object
object defaultsininthe
defaults the
Object
ObjectType
Typefield.
field.

Use the Party Relations window to view, update,

and create relationships for parties. These
relationships model the party registry as a realistic
business world. Multiple relationships between any
parties with the predefined relationship types can be
created .

(N) CustomersÆRelationships
 Managing Customers
Profile Classes

•Use profile classes to describe and group customers with similar financial
characteristics
•Use profile classes to enter new customers quickly and consistently
•When a customer is established , the customer processing function assigns it to
the default (seeded) customer profile class.
•To assign the customer to a different profile class, select it from the list of values
before saving.
 Managing Customers
Customer Profile Class Characteristics
Credit/collections Invoices and Payment
Statements promptness

• Credit check • Invoice line • Payment terms

• Collector and tax printing • Discounts
• Payment • Statement cycle • Grace days
application • Consolidated
• Dunning letters invoices
• Finance charges
 Managing Customers
Customer Profile Classes
Indicates
Indicatesthethenumber
numberthatthat
customers Specifies
Specifiesthe
theAuto
AutoCash
CashRule
RuleSet
Set
customersusingusingthis
thisprofile
profile totouse
class
classwill
willuse
usetotomatch
matchreceipts
receipts usefor
forthis
thisprofile
profileClass.
Class.The
The
with invoices during system
systemuses
usesthetheAutoCash
AutoCashRule
Rule
with invoices during Set
AutoLockbox
AutoLockboxvalidation
validation Setspecified
specifiedininthe
theSystem
System
Options
Optionswindow
windowififananAutoCash
AutoCash
Rule Set is not assigned
Rule Set is not assigned

Specifies
Specifieshow
howPost
Post
Check
Checktotosend
sendstatements
statements QuickCash
QuickCashapplies
appliesanyany
totocustomers
customersusing
usingthis
this leftover
leftoverreceipt
receiptamounts
amounts
profile
profileclass
class created
createdbybyaapartial
partialreceipt
receipt
application
application

To
Tosend
sendstatements
statementstoto Enter
EnteraaStatement
StatementCycle
CycleIfIf
customers
customerswith
withthis
thisprofile the
profile the Send Statementcheck
Send Statement check
class
class even if theyhave
even if they haveaa box
boxisischecked.
checked.Statement
Statement
credit
creditbalance,
balance,check
checkthe cycles
the cyclesindicate
indicatehow
howoften
oftentoto
Send
SendCredit
CreditBalance
Balancecheck print
check printstatements.
statements.
box
box

Enter
Enterthe
theDunning
DunningLetter
Letter
Check Set
Setto
toassign
assigntotocustomers
Checktotosend
senddunning
dunningletters
letters customers
totocustomers using
usingthis
thisprofile
customerswhen
whenthey
theyhave
have profile
invoices,
invoices,debit
debitmemos,
memos,andand
chargebacks
chargebacksthat
thatare
arepast
pastdue
due

(N) CustomersÆProfile Class

 Managing Customers
Customer Profile Classes
The
Thedefault
defaultpayment
payment
term
term forcustomers
for customers
assigned
assignedtotothis
thisprofile
profile
Check class
Checktotobebeable
abletotochange
change class
the
thedefault
defaultpayment
paymentterm term
when
whenentering
enteringtransactions
transactions
for
forcustomers
customersusing
usingthis
this
profile
profileclass.
class.
Check
Checktotoallow
allowdiscounts
discountsto to
customers
customersusing
usingthis
thisprofile
profile
enter class.
enterthe
thenumber
numberofof class.
Discount
Discount GraceDays
Grace Days
after
afterthe
thediscount
discountterm
term
date
datethat
thatcustomers
customersusing
using Enter
this Enterthe
thenumber
numberofofReceipt
Receipt
thisprofile
profileclass
classcan
cantake
take Grace
Grace Daysthat
Days thatare
areallowed
allowedfor
for
customers using this profile
customers using this profile
class
classtotobe
beoverdue
overdueon onreceipts
receipts
Check
Checktoto charge
chargefinance
finance before they will be assessed
before they will be assessed
charges.
charges. finance
financecharges
charges

To
Tocalculate
calculatefinance
financecharges
chargeson
on
customer's
customer's outstandingbalances
outstanding balances
including
includingpreviously
previouslyassessed
assessed
finance
financecharges
charges

Specifies
Specifiesthe
theprinting
printingformat
format
Indicates
Indicateshow
howto
toprint
printtax
taxon
on ofofthe
the consolidatedbilling
consolidated billing
invoices
invoices invoice
invoice

(N) CustomersÆProfile Class

 Managing Customers
Customer Profile Classes

Oracle
OracleOrder
OrderManagement
Managementwill willcheck
checkthis
this
customer's
customer'scredit
creditbefore
beforecreating
creatingaanewnew
order
orderififthe
thePayment
PaymentTerm
TermandandthetheOrder
Order
Type associated with the order
Type associated with the order also also
require
requirecredit
creditchecking.
checking.The
Thesystem
systemdoes
does
not
notcheck
checkcustomer's
customer'scredit
creditwhen
when
transactions
transactionsarearecreated
createdininReceivables.
Receivables.
Enter
Enterthethedefault
defaultTolerance
Tolerance
(percentage
(percentageoveroverthe
thecredit
credit
limit)
limit)that
thatcustomers
customersusing
using
this
thisprofile
profileclass
classcan
canexceed
exceed
before
before the collectionaction
the collection action
begins
begins

(N) CustomersÆProfile Class

 Managing Customers
Customer Profile Classes
The Currency in which The interest rate to charge customers
customers assigned to
this profile class will do
business If the amount of interest that the system
calculates for a past due debit item in this
currency is greater than the amount entered
here, the system charges this amount.

The system will not generate

automatic receipts in this
If the customer balance of past due items currency that are less than this
in this currency is less than the amount amount.
specified here, Receivables does not
assess finance charges
The minimum outstanding
If the balance of a past due invoice in this balance in this currency that
currency is less than the amount specified customers must exceed in order
here, Receivables does not assess finance for Receivables to generate a
charges on this statement.

The total amount of credit in this

If a customer has a past due balance in this currency
currency to give to customers
that is greater than the minimum dunning amount
specified for this currency, Receivables selects this
customer for dunning

Customers do not receive dunning letters if the The maximum amount

amount entered here is greater than the balance of of an individual order
each of their past due items in this currency

(N) CustomersÆProfile Class

 Managing Customers
Merge Customers
Merge customers to:
• Eliminate incorrect data and duplicate information
• Consolidate account site data
• Merge Customers or Sites
• Merge Individuals or Organizations
• Reflect customer account changes due to business consolidation
• Merging customer information combines all information for two customer
accounts or account sites, striped by operating unit.
• Delete or inactivate the merge-from customer account and account sites uses.
• Customer Merge updates the customer information for all of the old customers
transactions.
 Managing Customers
Merging Other Application Transactions
The system automatically merges all transactions associated with the merge
candidates in these applications as well:
• Automotive
• Customer Service
• Inventory
• Master Scheduling /MRP Planning
• Order Management
• Payables
• Projects
• Purchasing
• Sales and Marketing
 Managing Customers
Customer Merge The
TheType
being
Typeofofcustomer
beingmerged
merged
customer The
Thename
nameofofthe
customer
customerto
the
tomerge
mergeto
to

The
Thename
nameofofthe
the
customer
customertotomerge.
merge.

The
Thereason
reasonfor
forthe
the
merger
mergerof
ofthe
thetwo
two
customers.
customers.

To
Todelete
deletethe
theold
oldcustomer
customerinformation,
information,
check
checkthe
thecheck
checkbox.
box.
To
Tokeep
keepan anaudit
audittrail
trailofofold
oldthe
the
customer
customerinformation,
information,do donot
notcheck
checkthe
the
Delete
DeleteAfter
AfterMerge
Mergecheck
checkbox.box.The
The Check
system Checktotocopy
copyanan
systemassigns
assignsaastatus
statusof of'Inactive'
'Inactive'to
to address
address andsite
and site
the
theold
oldcustomer
customerafter
afteryouyoucomplete
completethethe usage
merge. usagefrom
fromthetheFrom
From
merge. region
regiontotothe
themerge-to
merge-to
customer.
customer.

Use Customer Merge to consolidate

any duplicate customers or transfer site
use activity from a customer or site that
is no longer active or has been taken
over by another customer or site.
(N) CustomersÆMerge
Processing Invoices
 Processing Invoices
Transaction Overview

Import
transactions Calculate
taxes,
create
Print
GL accounts,
invoices
update
Create customer
manual balances
transactions
Correct,
if necessary
 Processing Invoices
Transactions Workbench Windows
Use the Transactions
Workbench to create
new and update
existing invoices, debit
memos, credit memos,
on–account credits,
and commitments
within Receivables.
Also use this
workbench to enter,
review, or complete
transactions, copy
invoices, create
adjustments, credit
transactions, review
invoice installments,
and update
chargebacks.
 Processing Invoices
Invoice Entry Methods
Invoices
Invoices Run
Run
from
from feeder
feeder AutoInvoice
AutoInvoice
systems
systems

Manual
Manual
invoices
invoices Data
Data entry
entry
 Processing Invoices
Creating Invoice Batches
• Use batches to match control and actual invoice counts and amounts. Actual
count and amount is updated as invoice is entered.
• A batch can contain invoices with different currencies.
• Print invoices by batch.
• Can only delete a batch if it does not contain any transactions
• Oracle Receivables uses invoice batches to import invoice data.
• Batch information identifies the originating system when importing transactions.
Invoice Batch Statuses
• New: This is a new batch, and it has not yet been saved.
• Out of Balance: The actual count and amount of transactions in this batch do
not equal the control count and amount.
• Open: The actual count and amount equal your control count and amount.
• Closed: The actual count and amount match the control count and amount.
 Processing Invoices
Transaction Batches Batch
Batchsources
sourcescontrol
control
invoice
invoiceand
andinvoice
invoicebatch
batch
numbering
numberingandandthe
thedefault
default
transaction
transactiontypes
typesfor
for
transactions
transactionsadded
addedtotothis
this
batch
batch

IfIfAutomatic
AutomaticBatch
Batch
Numbering
Numberingforforthis
thisbatch
batch
source
sourceisisNo,
No,enter
enteraa
unique Enter
Enterthe
thebatch
batchCurrency.
uniquebatch
batchName.
Name. Currency.
The
Thedefault
defaultisisthe
the
functional
functionalcurrency.
currency.

Enter
Enterthe
theBatch
BatchandandGL
GL
Date
Date for this batch.The
for this batch. The
default
defaultdate
dateisisthe
thecurrent
current
date.
date.GL
GLDate
Dateyouyouenter
enter Enter
Enterthethetotal
totalnumber
numberofof
must
mustbebeininan
anOpen
Openor or transactions
transactions in thisbatch
in this batchinin
Future
Futureperiod.
period. the
theControl
ControlCount
Countfield,
field,then
then
enter
enterthe
thetotal
totaldollar
dollaramount
amount
ofoftransactions
transactionsininthis
thisbatch
batchinin
the
theControl
ControlAmount
Amountfield.field.

(N) TransactionsÆBatches
 Processing Invoices
Creating a Standard Invoice

Enter
Enter invoice
invoice Enter
Enter salescredit
salescredit
Enter
Enter invoice
invoice
header
header information
information lines
lines

AutoAccounting Complete
Complete
AutoAccounting
Enter
Enter freight
freight lines
lines creates invoice
invoice
creates accounts
accounts
 Processing Invoices
Entering Invoice Dates
• Enter invoice dates in any period. The invoice date plus the the payment terms
determine the due date

• Enter Oracle GL dates in open and future accounting periods. This date
determines when the journal entry can be created.

Open Future Closed

Available for Available for entry Not available
entry and posting
to GL
 Processing Invoices
Required Transaction Information
• Transaction Date • GL Date
• Source • Bill To
• Class • Terms
• Type • Remit To

Transaction Defaults
• Transaction Source:
– Can default the transaction type
– Determines the transaction numbering
• Transaction type can default:
– The transaction class
– Payment terms (if not set at the customer)
• Customer can default:
– Ship-to and bill-to address
– Payment terms
– Salesperson
 Processing Invoices
Entering Sales Credits
• If the Require Salesperson check box in the Miscellaneous tab of the System
Options window is selected, a salesperson must be assigned to each invoice.
• Use the Sales Credits window to allocate sales credit among salespeople, and
record both revenue and non-revenue sales credit. This information defaults to line-
level sales credits.
• Autoaccounting will recalculate the revenue account assignment.
• Total sales credits can be greater than the revenue amount for bonus or incentive
purposes.
• Allocate different percentages or to different salespeople by line, using the For This
Line region of the Sales Credits window. Access this window by clicking Sales
Credits in the Lines window.
 Processing Invoices
Completing Transactions
• Completing an invoice means that payment schedules and aged receivable
amounts are calculated, and this transaction can be transferred to the GL.
• When all required information has been entered, click the Complete button.
• Only completed transactions can be printed.
 Processing Invoices
Transaction Header Information
Enter the transaction number if Select the Transaction Batch Source. The Enter the transaction Enter the transaction
Automatic numbering is not Source specifies automatic or manual batch date, the default is currency, the default
enabled. If automatic numbering is and invoice numbering, the standard the current date is the functional
specified, Receivables generates transaction type, determines which attribute currency
a number of the Invoice Transaction Flexfield is used to
default into the Reference field.

Select the Transaction Type. Transaction types

Select the Invoice Class. Enter the GL date, the default is
determine whether a transaction updates open
Choose from the following the current date. if the current
receivables, can be posted to GL, if Receivables
-Invoice date is not in an open period,
calculates tax, the transaction’s creation sign,
-Debit Memo the default is the last date of the
whether transactions with this type use natural
-Credit Memo most recent open period
application only or will allow overapplication,
-Deposit
provide the default transaction class, payment
term, and printing options for each transaction.
 Processing Invoices
Transactions – Main Enter the customer Bill-to Name and
Location for this transaction. If the bill-to
customer has a primary bill-to location,
then Receivables defaults the location
and address. If no primary bill-to location
exists for the customer, however, then
select a valid bill-to location from the list
of values.

If the invoice is against a

commitment, enter the
Enter the customer Ship-to Name Commitment, or choose
and Location for this transaction. one from the list of values
If the customer has a primary
ship-to location, then Receivables
defaults the location and address.
If no primary Ship-to location
exists for the customer, then
select a valid Ship-to location
from the list of values. If the Tax
method is Sales Tax, a Ship to
Address is mandatory.

Enter the payment Terms for

this transaction. Receivables Enter a Salesperson (optional).
calculates the Due Date based If the system option Require
on the payment terms and Salespersons is Yes and a
date of this transaction. The salesperson is not assigned to
due date of a split payment this customer at the customer
term is the date that the first or site level, select from List of
payment is due. (N) TransactionsÆTransactions Values
 Processing Invoices
Indicate whether finance charges are calculated against

Transactions – More this invoice, debit memo, or chargeback. If the field is

left blank or ’If Appropriate’ is selected, Receivables
calculates finance charges according to the customer’s
The date on which this
transaction was last printed.

credit profile. If No, Receivables does not calculate

The invoicing Rule associated
finance charges on this transaction, regardless of the
with this transaction
customer’s credit profile.

The transaction to relate to this invoice.

Choose any transactions that are assigned
to the bill-to customer or a selected
customer. If a transaction number is cross
referenced and the bill-to customer is
changed, Receivables erases the value in
this field.

The order agreement this invoice is

against. Can be entered only if an
agreement is defined with the selected
customer or customers related to the
selected customer. Associate an
These fields are for
agreement with the customer in the
reference only and not
Sales Orders window in Oracle Order
validated by Receivables.
Management.

When a chargeback is queried in

The current amount of the the Transactions window, this field
invoice, debit memo, or shows the transaction for which the If Document Sequencing is used and it is
chargeback that is in dispute. chargeback was created. manual, enter a unique Document
Number. Otherwise, Receivables assigns
a document number when you save or
complete depending on the option set.

(N) TransactionsÆ Transactions ÆMore(Tab)

 Processing Invoices
Transactions – Remit To
The remit-to address is the address to
which customers send payments. The
default is the remit-to address assigned to
the country, state, and postal code for this
customer address.

The customer to whom the goods and

services were sold to. This customer could
be different from the ship-to or bill-to
customer. The default is the bill-to
customer for this transaction.

The sales territory for this invoice. The

default is the value of the Source of
Territory in the System Options window.

(N) Transactions Æ TransactionsÆ Remit To (Tab)

 Processing Invoices
Transactions – Paying Customer
The
Thecustomer
customerassociated
associatedwith
with
the
the customer bankaccount
customer bank account
assigned
assignedtotothetheinvoice.
invoice.This
This
could
couldbe bedifferent
differentfrom
fromthe
the
billing
billingcustomer
customerififCustomer
Customer
relationships
relationshipsexist
exist

The
Thepayment
paymentmethod
method
assigned
assignedtotothe
the
transaction.
transaction.

The
Thebank
bank
The account
accountnumber.
number.
Thebank
banktotowhich
whichthe
the
Payment
PaymentMethod
Methodisis
assigned
assignedtoto

(N) Transactions Æ TransactionsÆ Paying Customer (Tab)

 Processing Invoices
Standard Invoice Line Types
• Inventory item: Enter items available in inventory, using the list of values
• Standard memo line: Enter non-inventory products or services, such as extended
warranties or maintenance contracts, using the list of values
• Free-form line: Enter a unique description

Entering Freight Invoices or Lines

• Bill shipping charges for the entire invoice or for each line
– Click the Freight button in the Transactions window to enter at invoice level
– Click the Freight button in the Lines window to enter at lines level
• If the transaction type assigned to this invoice allows freight charges, enter freight
amounts
• AutoAccounting determines the default freight account
 Processing Invoices
Transaction Lines – Main Tab
The unit selling price for this invoice line item. Amount calculated by
The description for this invoice line.
If a standard line item is entered, the default Quantity*Unit Price
Receivables prints the description on
is the Unit List Price entered for this standard
the invoice. Choose from
line item in the Memo Lines window; there will
-Inventory Item Receivables displays a
be no default for System Items.
-Standard Memo Line default Tax Code (or tax
-Free Form group) if one is defined at:
- Item
- Customer
- customer site
- system level if the tax
method is ’VAT’.

To enter goods to bill to the

customer, enter the Item, Quantity,
and Unit Price for each item.

Line Transaction Flexfield

values derived from
AutoInvoice

(N) Transactions Æ TransactionsÆ Lines

 Processing Invoices
Transaction Lines – Sales Order Tab
The
Theorder
orderline
linenumber
number The
totowhich Thedate
datethis
thisitem
itemwas
was
which thisinvoice
this invoice ordered.
ordered.
line
linerefers.
refers.

The
Thesales
salesorder
orderline
line The
Thechannel
channel
The
Therevision
revisionnumber
number
number
number forthis
for this through
throughwhich
whichthis
this
for
forthis
thisorder.
order.
invoice
invoiceline.
line. item
itemwas
wasordered
ordered

(N) Transactions Æ TransactionsÆ Lines

 Processing Invoices
Transaction Lines – Tax Exemptions Tab
Enter
Enteraataxtaxexemption
exemption
Enter
Enter’Exempt’
’Exempt’ififthe
the Certificate
CertificateNumber
NumberififTax
Tax
system
systemoption
optionUse
Use Handling
Handlingisis’Exempt’
’Exempt’Select
Select
Customer
CustomerExemptions
Exemptionsisis from
fromlist
listof
ofvalues
values
set
set to Yes andtotoforce
to Yes and forcetax
tax
exemption on the invoice
exemption on the invoice
lines.
lines.

Enter a value for

this field only if the
profile option Tax: Enter
Enter’Require’
’Require’toto
Allow Override of force
force taxcalculation
tax calculation
on
onthe
theinvoice
invoicelines.
lines. Enter
Customer EnteraaReason
Reasonforfor
creating
creatingthis
this
Exemptions is Yes exemption
exemptionififTax
Tax
Handling
Handlingisis’Exempt’
and the transaction Enter
Enter’Standard’
’Standard’ififtax
tax
’Exempt’

is not a isistotobe
becalculated
calculatedas as
per
perthethenormal
normal
chargeback. procedures
proceduresset setup
upinin
Receivables.
Receivables.

(N) Transactions Æ TransactionsÆ Lines

 Processing Invoices
Transaction Lines – More Tab
AAdescription
descriptionof
ofthe
the
Indicates inventory
inventory itemininan
item an
Indicatesthe
thereason
reason alternate
for
for a creditmemo.
a credit memo. Any
Anyadditional
additional alternatelanguage.
language.
information Entered
Enteredwhen
Defaults
Defaultsfrom
fromthe
the informationabout
about when
this defining
defininginventory
invoice header
invoice header thisline
lineitem.
item. inventory
level. items.
items.
level.

The
Theship-from
ship-from
location
locationfor
forthis
this
item.
item.

(N) Transactions Æ TransactionsÆ Lines

 Processing Invoices
Transaction Balances
Displays
The original transaction amount
The total amount of receipts
Credit memos
Adjustments
Finance charges applied to the
transaction
Discounts taken.
Indicates
Level a receipt, credit, or discount
was applied
The type of adjustments that were
created.
Displays
Transaction balances in the entered
currency
Transaction amounts can be viewed
in the functional currency.
How the line, tax, freight, and
finance charges balances were
affected in the 'Balance' row.
If Bills Receivable is enabled, then the
Balances window also displays
information about bills receivable
assignment (N) Transactions Æ TransactionsÆ Balances
 Processing Invoices
Creating Copies of Invoices
• Automatically create
invoices for goods or
services provided
regularly to customers. January
January
• Create a group of
invoices that share the
same characteristics.
• All of the dates for the
copied invoices are
determined using the
copy rule specified.
• The exchange rates April
April
and tax rates are
derived from the date Model
Model
of your first copied transaction
transaction
invoice.
• If the date is in a never
opened period,
Receivables will July
create these invoices
July
as incomplete.
 Processing Invoices
Choosing Model Transaction
• The model transaction must be complete.
• Once the model transactions are copied, changes to the model transaction do not affect the
copied transaction.
• The model transaction should be the open or closed transaction that exactly matches the
transaction(s) to recur.
• If the batch source for the model invoice has automatic transaction numbering turned on,
Oracle Receivables automatically numbers each recurring transaction.
• Each recurring transaction uses the batch source assigned to the model transaction.

Determining Transaction Schedule

• Oracle Receivables determines the date and frequency of the copied transactions, using the
rule, first transaction date, and number of times specified.
• The recurring schedule cannot be updated after it has been saved.
• Oracle Receivables creates all invoice copies at one time.
• Invoices created in unopened periods will be created as incomplete.
 Processing Invoices
Recurring Rules
Annually: This rule creates an invoice once a year on the same day and month of
each year.
Semiannually: This rule creates an invoice every six months on the same day.
Quarterly: This rule creates an invoice every three months on the same day.
Monthly: This rule creates an invoice every month on the same day.
Bimonthly: This rule creates an invoice every other month on the same day.
Weekly: This rule creates an invoice every seven days.
Single Copy: This rule creates one copy of the model invoice for the day entered in
the First Invoice Date field.
Days: This rule creates an invoice based on the number of days specified.
 Processing Invoices
Copy Transactions – Recurring Invoices
The
Theinvoice
invoiceto
touse
useas
as
aamodel for copying
model for copying
invoices
invoices Enter
Enterthe
thenumber
numberofof
copies to create
copies to create

Choose
Chooseaacopy
copyRule.
Rule.

Enter
Enterthe
theFirst
First
IfIfthe
thecopy
copyrule
ruleisisDays,
Days, Transaction
TransactionDate
Datetoto
enter
enterthe
theNumber
NumberofofDays
Days create
createthe
thecopied
copied
between
betweenthethecopied
copied invoice
invoice
invoice
invoicedates
dates

Enter
Enterthe
theFirst
FirstGLGLDate
Date
for the copied invoice.
for the copied invoice.
This
Thisdate
datemust
mustbe beininan
an
open,
open,future,
future,or
ornever
never
opened
openedperiod.
period.

Enter
Enterthe
theTransaction
Transaction
Number
Numberififthe
theififthe
the
Batch
Batchsource
sourcedoesn’t
doesn’t Enter
Enteraaunique
uniquedocument
document
specify
specifyAutomatic
Automatic Number
Number foreach
for eachcopied
copied
Transaction
TransactionNumbering
Numbering invoice
invoiceififdocument
document
sequencing
sequencingisisenabled.
enabled.

Use the Copy Transactions window to

create recurring invoices for products and
services sold on a regular basis. (N) Transactions Æ Copy Transactions
 Processing Invoices
Recurring Invoice Program report
• Receivables submits a concurrent process to create copied invoices.
• Receivables also creates the Recurring Invoice Program report
• This report contains information about the model invoice and the new, copied
invoices created in the Copy Transactions window. Receivables automatically
generates this report when the request to create copied invoices is submitted.
 Processing Invoices
Invoices With Rules

Fixed
Fixed or
or Journal
Journal
variable
variable entry
entry

Accounting
Accounting rule
rule

Advance
Advanceoror
Arrears
Arrears
Invoicing
Invoicing rule
rule
Invoice
Invoice Revenue
Revenue
recognition
recognition
program
program
01.100.200.4500.000.0000
01.100.200.4500.000.0000
01.110.220.4550.000.0000 Journal
Journal
01.110.220.4550.000.0000
01.220.220.4700.000.0000
01.220.220.4700.000.0000
entry
entry

AutoAccounting
AutoAccounting
 Processing Invoices
Invoicing Rules and Accounting Rules
Invoicing Rules determine when to recognize receivable for invoices that span more
than one accounting period.
• Assign invoicing rules to invoices that entered manually or imported into Receivables
through AutoInvoice.
• Receivables provides the following invoicing rules:
• Bill in Advance: Use this rule to recognize receivable immediately.
• Bill in Arrears: Use this rule to recognize the receivable at the end of the
revenue recognition schedule.
Accounting Rules determine the number of periods and percentage of total revenue
to record in each accounting period.
• An unlimited number of accounting rules can be determined.
• Invoicing and Accounting Rules are not applicable if the method of accounting is
Cash Basis.
 Processing Invoices
Using Invoices with Rules

Business Need Solution

Enter invoices for services Enter invoices with rules
provided over 12 months either in the Transactions
and recognize revenue as window or through
the service is provided. AutoInvoice.
Bill customers for the Assign invoices a Bill in
invoices before recognizing Advance invoicing rule.
all of the revenue.
Bill customers for invoices Assign invoices a Bill in
after recognizing all of the Arrears invoicing rule.
revenue.
 Processing Invoices
Assigning Invoicing Rules
• Invoicing rules determine whether to recognize receivables in the first or in the last accounting period.
• Once the invoice is saved, you cannot update an invoicing rule.
• If Bill in Arrears is the invoicing rule, Oracle Receivables updates the GL Date and invoice date of the
invoice to the last accounting period for the accounting rule.

Select
Selectthe
theInvoicing
Invoicing
Rule. Determines
Rule. Determines
whether
whethertotobill
billinin
advance
advanceor orbill
billinin
arrears
arrears

Transactions Header
 Processing Invoices
Assigning Accounting Rules To Invoice Lines
• Accounting rules determine when to recognize revenue amounts.
• Each invoice line can have different accounting rule.

Enter
Enterthe
theDate
Datefield
fieldtoto
The
Thenumber
numberofofperiods
periodsininwhich
which determine
determine whento
when to
revenue
revenueisisrecognized.
recognized.Value
Value start
startrecognizing
recognizing
defaults
defaultsfrom
fromfixed
fixedrule.
rule.Value
Value revenue.
revenue.
must
must be entered forvariable
be entered for variablerule
rule

Select
Selectthe
theaccounting
accounting
Rule
Rule todetermine
to determine
when
whentotorecognize
recognize
revenue
revenue

Transactions Lines
 Processing Invoices
Creating Accounting Entries
• Accounting distributions are created only after the Revenue Recognition program is run.
• For Bill in Advance, the offset account to accounts receivable is Unearned Revenue.
• For Bill in Arrears, the offset account to accounts receivable is Unbilled Receivables.
• Accounting distributions are created for all periods when Revenue Recognition is run.

Running The Revenue Recognition Program

• The Revenue Recognition program gives control over the creation of accounting entries.
• Submit the Revenue Recognition program manually through the Run Revenue Recognition
window.
• The Revenue Recognition program will also be submitted when posting to Oracle General
Ledger.
• The program processes revenue by transaction, rather than by accounting period.
• Only new transactions are selected each time the process is run.
 Processing Invoices
View Accounting Distributions
Choose to view the detail accounting lines when an invoice, payment, or adjustment is
queried in Oracle Receivables, in one of the following formats :
• A balanced accounting entry (Accounting Lines)
• T-accounts

Drill Down View

View Drill Down
Invoice
Invoice Accounting
Accounting T-Accounts
T-Accounts
Lines
Lines
 Processing Invoices
View Accounting Lines
• Use the View Transaction
Accounting window to view
accounting lines whenever a
transaction, receipt, or adjustment is
created .
• For each line, see which account is
affected, the debits and credits for
both the entered and accounted
amounts, as well as currency,
exchange rate, and other
accounting information.
• View this information prior to
transferring accounting entries to
Oracle General Ledger.
• For invoices with rules, Revenue
Recognition program must be run
first.

(N) Transactions Æ TransactionsÆ Distributions

 Processing Invoices
View Accounting Lines

(N) ToolsÆ View Accounting

 Processing Invoices
Activity Summary

(N) Tools Æ View Accounting Æ T-Accounts Æ Activity Summary

 Processing Invoices
T-Accounts

• Use this window to view Oracle

Receivables accounting entries in
a graphical, T-account format.
• Oracle Applications provides
several options that can be used
to customize how the data is
displayed.
• Create a hard copy of the
information in this window
(N) Tools Æ View Accounting Æ T-Accounts
 Processing Invoices
Foreign Currency Invoice Processing
When a batch or a receipt or transaction that is not in the functional currency is
entered, Receivables displays a pop-up window to enter exchange rate
information. Receivables uses this information to convert foreign currency receipt
and transaction amounts to the functional currency
Daily conversion rates can also be defined. Daily conversion rates enable
Receivables to automatically calculate exchange rate information when foreign
currency receipts and transactions are entered.
 Processing Invoices
Foreign Currency Invoicing – Profile Options
The following profile options affect the appearance and behavior of the Exchange
Rates window:

Profile Option Description

Journals: Display If the option is set to No, Receivables calculates the Functional
Inverse Rate amount as:
Functional Currency= Foreign Currency*Rate
If the option is set to Yes
Functional Currency= Foreign Currency/Rate

Currency: Allow
Direct EMU/Non-EMU
This profile option controls whether an exchange rate can be
User Rates entered when the receipt or transaction is in an EMU
currency but the functional currency is not an EMU
EMU: European and currency.
Monetary Union
 Processing Invoices
Exchange Rate Field Reference
• Rate Date: The rate that applies to the exchange rate for your foreign currency.
• Rate Type
– Corporate: Standardized rates for the company.
– Spot: To perform conversion based on the rate on a specific date.
– User: User Defined Rate.
• Rate: The exchange rate for a particular receipt.
Adjusting an Exchange Rate
• Change the rate type, rate date, and exchange rate of a foreign currency receipt,
even if it has been transferred to GL.
• The exchange rate of foreign currency transaction cannot be adjusted once it has
been posted or has had a receipt applied to it.
• To use a different exchange rate, reverse the transaction, then recreate the
transaction at the new rate.
 Processing Invoices
Viewing Exchange Rate Information
• View exchange rate information for a receipt from either the Receipts or Receipts Summary window.
• View exchange rate information for a transaction from either the Transactions or Transaction
Summary window.

Viewing Exchange Rate Information for a Receipt

• Query the receipt in the Receipts or the Receipts Summary window.
• In the Receipts window, choose Exchange Rate from the Tools menu.
• In the Receipts Summary window, select the receipt, then choose Exchange Rate from the Tools
menu.

Viewing Exchange Rate Information for a Transaction

• Query the transaction in the Transaction or transaction Summary window.
• In the Transactions window, choose Exchange Rate from the Tools menu.
• In the Transaction Summary window, select the transaction, then choose Exchange Rate from the
Tools menu.
• To update the exchange rate, enter a new Rate Type (if the Rate Type is Corporate or Spot). If the
Rate Type is User, enter a new Rate, then choose Ok.
 Processing Invoices
Viewing Exchange Rate Information for a Receipt
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 Processing Invoices
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 Processing Invoices
Header Level Rounding
• Rounding the converted amounts can cause an imbalance between the accounting entries that Oracle
Receivables creates for each currency.
• Depending upon the legal requirements, there may be a need to round amounts at the transaction header
level and post the difference to a separate GL account.
• Account for the rounding differences by enabling Header Level Rounding and defining a Header Rounding
account.
• The rounding account is always recorded as a credit, whether it is a positive or negative amount. This is
because the Header Level Rounding account is considered a contra account which offsets the receivable
account.
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 Processing Invoices
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 Processing Invoices
Printing Transactions
Print the following documents to send to customers:
• Invoices • Guarantees
• Credit memos • Chargebacks
• Debit memos • Adjustments
• Deposits

• Previewing Transactions Before Printing

– Submit the Invoice Print Preview Report to see a list of transactions that will be printed
– Select a list of transactions by specifying values for the report parameters
• Printing Transactions
– Print transactions by batch
– Print transactions that have not been printed
– Specify a range of transactions to print
 Processing Invoices
Printing Transactions – Report Options
Invoice Print New Invoices: Print all transactions that have not been printed previously and
have a print status of 'Print'.
Invoice Print Selected Invoices: Print specific transactions, regardless of whether you have
already printed them. You can limit your printout by entering a range of dates, transaction
numbers, a specific transaction type, transaction class, customer class, installment number,
and a specific customer. You can also select to print only open invoices. Receivables does
not include any transactions with a print status of 'Do Not Print'.
Invoice Print Batch of Invoices: Print a single batch of transactions, regardless of whether you
have already printed it. You specify the batch to print in the Parameters window. Receivables
does not include transactions with a print status of 'Do Not Print'.
Print Adjustments: Print specific adjustments to transactions which have not been printed
previously and have a print status of 'Print.' Receivables does not include transactions with a
print status of 'Do Not Print'.
Invoice Print Preview Report: Preview transactions that would be printed if you chose to print a
batch of invoices, new invoices, or specific invoices. This report will list the transactions that
would be printed in each case.
 Processing Invoices
Printing Transactions
 Processing Invoices
Printing Transactions
Printing Invoices
Consider the following when determining the range of invoice dates to print:
If the invoice you are printing has a payment term where Print Lead Days is 0, Receivables uses
the transaction date to determine if this transaction falls into the Start and End Date range you
specify.
If the invoice you are printing has a payment term where Print Lead Days is greater than 0,
Receivables uses the formula Due Date - Print Lead Days to determine if this transaction falls
into the Start and End Date range you specify.
Invoices & Debit Memos
For each invoice Receivables displays the quantity ordered, shipped, unit price, and extended
amount.
Receivables prints the entire description for each invoice line. Text wraps to the next line.
Receivables displays the total amount of the lines, tax, and shipping in the body of the printed
invoice.
For installments, Receivables displays the total amount due for each installment as well as the
line, tax, and freight amount in the subtotal fields.
Credit Memos
For each credit memo, Receivables displays a row for every invoice line, tax, or freight amount
you are crediting.
Credit memo amounts display as negative numbers.
Receivables displays the percent of the credit memo applied to the transaction you are crediting.
 Processing Invoices
Printing Transactions
Deposits
For each deposit, Receivables prints unit price, extended amount, and '1' in the quantity ordered
and quantity shipped columns. Unit price and extended amount will always be the same.
Receivables prints 'N' in the Tax column and does not print tax and shipping amounts since
these amounts are not part of the deposit.
Receivables prints the effective start date and the effective end date if you enter one.
Guarantees
For each guarantee, Receivables prints unit price, extended amount, and '1' in the quantity
ordered and quantity shipped columns. Unit price and extended amount will always be the same.
Receivables prints 'N' in the Tax column and does not print tax and shipping amounts since
these amounts are not part of the guarantee.
Receivables prints the effective start date and the effective end date if you enter one.
Receivables prints a message in the body of the guarantee explaining that this is not a request
for payment.
 Processing Invoices
Printing Transactions
Invoices Against Deposits
Receivables prints a row for each invoice line. If your line includes tax charges, Receivables
displays 'Y' in the tax column. Receivables also prints the amount deducted from the deposit.
This amount displays as a negative number.
Receivables displays the original balance of your deposit, less any activity. Activity includes any
previous transactions as well as the current invoice. Receivables calculates and displays the
current deposit balance. The deposit balance does not include any tax or shipping charges. Tax
and shipping charges are printed at the bottom of the invoice in their respective columns and
must be collected.
Invoices Against Guarantees
Receivables prints a row for each invoice line. If your line includes tax charges, Receivables
displays 'Y' in the tax column.
Receivables displays the original balance of your guarantee, less any activity. Activity includes
any previous transactions as well as the current invoice. Receivables calculates and displays the
current guarantee balance. The guarantee balance does not include any tax or shipping charges.
Tax and shipping charges are printed at the bottom of the invoice in their respective columns and
must be collected in addition to the line amount(s).
 Processing Invoices
Printing Tax
 Processing Invoices
Printing Tax
Receivables prints tax on invoices and debit memos depending upon the value entered for
the Tax Printing option assigned to the customer's profile class. If no option is specified in
the profile class, Receivables uses the value entered in the System Options window.

Following are Receivables' tax printing options:

European Tax Format: Print tax information in the following format: Tax rates printed
as the last column of invoice lines, freight items printed last, and the taxable
amount with the summarized tax codes printed at the end of the invoice.
Itemize by Line: Itemize tax information for each invoice line. Receivables displays
this information after each invoice line.
Itemize and Summarize: Display both itemized and recap tax information.
Summarize by Tax Code: Display all tax information under the heading 'Tax
Summary by Tax Code.' If you have two tax lines with the same tax code, rate,
exemption, and precedence number, Receivables will group them together.
Summarize By Tax Name: Display all tax information under the heading 'Tax
Summary by Tax Name.' If you have two tax lines with the same tax name, rate,
exemption, and precedence number, Receivables will group them together.
Total Tax Only: Display only the total tax amount at the bottom of the document.
 Processing Invoices
Printing Statements
¾ Generate statements that are specific to individual customer billing locations.

¾ A statement will indicate if the location of an included transaction differs from the billing
location by putting a note on the line following the transaction

¾ Receivables creates the statement output file and requires that this file be sent to the printer
using the operating system's landscape print command.

¾ When this file is sent to the printer, Receivables prints one sample page of Xs to show how the
statement will print. This helps in making any necessary adjustments before actually starting
printing of the statements.
 Processing Invoices
Printing Statements – Print Options
Print Statements: Print statements for either a specific customer, customer site, or all
of the customers and customer locations that have the statement cycle that are
specified in their credit profiles. This option includes activity from the last statement
date to the current statement date.
Print A Draft Statement: Print a draft statement for a customer or site to review
before sending it to this customer. Draft statements do not include finance charges.
Reprint Statements: Reprint any statements that have been previously printed.
 Processing Invoices
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 Processing Invoices
Printing Dunning Letters
¾ Use dunning letters to inform customers of past due invoices, debit memos, and
chargebacks. When dunning letters are printed, Receivables prints a copy of each
invoice which has line items that are past due.
¾ Create dunning letter sets in which to group dunning letters together to vary the tone
with each successive letter.
¾ When the Dunning Letter Generate program is submitted, Receivables compares the
number of days that a customer's oldest outstanding debit item is past due with the Days
Past Due Date ranges of the dunning letters in this customer's dunning letter set. This
comparison determines which dunning letter to print
¾ For each dunning submission, the Dunning Letter Generate program selects and prints
letters using the dunning letter sets, customers, and collectors that satisfy the
submission criteria.
¾ Control the severity and content of each dunning letter sent and exclude individual
customers from dunning, even if they have items that are past due.
¾ Include disputed items, on-account and unapplied receipts, and finance charges in
dunning letters, as well as debit items that are not yet due.
¾ Choose to use receipt grace days to extend the due dates of a customer's past due
items.
 Processing Invoices
Dunning Methods
Days Overdue: Letters are based on the total number of days that debit items are
past due. This method generates letters for a specific customer based on a range of
days overdue that you define for each dunning letter set. Receivables takes into
account the number of receipt grace days defined for a customer (if any) when
calculating the number of days items are past due.

Staged Dunning: Letters are based on the dunning levels of past due debit items.
This method lets you send dunning letters based on the number of days since the last
letter was sent, rather than the number of days items are past due. For each dunning
letter, you specify the minimum number of days that must pass before Receivables
can increment an item's dunning level and include this item in the next letter that you
send. This feature can be useful if, for example, you inform your customer that you will
begin collection action if payment is not received within x number of days of receiving
the current letter.
 Processing Invoices
Printing Dunning Letters
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 Processing Invoices
Consolidated Billing
• Use the Consolidated Billing Invoice program to print a single monthly invoice that includes all
customer’s transactions for that period.
• Customers are flagged to receive consolidated billing invoices through their customer profile
class.
• The invoice format can be detail or summary. The detail and summary format presents
invoice totals. The detail format lists all line items.
• The Consolidated Billing feature of Receivables cannot be used in conjunction with the
Imported Billing Number feature. The Consolidated Billing feature can be used for monthly
billings. Use the Imported Billing Number to group invoices other than on a monthly basis.
• When a consolidated billing invoice is created, Receivables includes all invoices, credit
memos, adjustments, receipts, and cross-site applications that have not been included on a
previous consolidated billing invoice
• If a transaction has been included on a consolidated billing invoice, it cannot be updated,
regardless of how you set the system option Allow Change to Printed Transactions. This is
because Receivables considers inclusion on a consolidated billing invoice to be an activity and
a transaction cannot be updated once it has an activity against it.
 Processing Invoices
Consolidated Billing
A consolidated billing invoice is not the same as a statement. Some of the differences are:

Statements Consolidated Billing

Generated at customer level. Generated at customer or bill-to location level.

Customer uses for informational Customer pays from the invoice.

purposes.

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debit memos, chargebacks, deposits, and receipts.
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credits.

Includes aging. Does not include aging.

Customers selected by statement Customers selected by cutoff date and payment

cycle. terms.
 Processing Invoices
Consolidated Billing
A consolidated billing invoice includes:
• All transactions that were created before the Cut-off Date specified and have not yet been
included on a consolidated billing invoice.
• A beginning balance
• An itemized list of new charges (invoices, credit memos, and adjustments) in either summary
or detail format
• Separate reporting of consumption tax
• The total amount of any payments received since the previous consolidated billing invoice
• The total balance due for this customer or bill-to site

Billing Invoice Number

• When a draft or final consolidated billing invoice is printed, a unique billing invoice number is
assigned.
• Use this number to query transactions that were included in a consolidated billing invoice.
• Also use this number to accept a final or reprint a draft consolidated billing invoice.
• The billing invoice number is automatically generated by a database sequence and cannot be
created manually.
• To display the billing invoice number in the following Receivables reports and windows, set
the profile option AR: Show Billing Number to Yes.
 Processing Invoices
Billing Invoice Number
When the Show Billing Number profile option to Yes, the transaction number and consolidated
billing invoice number fields appear next to each other in the windows listed above.

However, these fields are not labeled separately. The consolidated billing invoice number field
always appears to the left of the transaction number field and is the first field in which to enter a
value when performing a Query or Find operation

The Consolidated Billing Invoice Number appears in the following windows

• Account Details
• Applications and Mass Apply Receipts windows
• Credit Transactions
• Customer Calls
• Receipts
• Transactions
• Transaction Overview
 Processing Invoices
Set Up Customers for Consolidated Billing
¾ Indicate that a customer should receive a consolidated billing invoice by updating their
customer profile class.
¾ To include only transactions for a specific bill-to site, assign payment terms to the customer's
bill-to site.
¾ To include transactions for all of a customer's bill-to sites, assign payment terms at the
customer profile level.
¾ The customer profile class also determines whether the invoice format is Detail or Summary.
The detail and summary formats include the same information except for the item detail:
o Choose the Detail format to list the item description, quantity, and unit price for each item
on each invoice
o Choose the Summary format to list only the total amount of each transaction.
¾ The Imported format is for using the Imported Billing Number feature
¾ The Consolidated Billing Invoice program does not select transactions from related customers
 Processing Invoices
Consolidated Billing Reports
• Account Status
• Adjustment Register
• Aging Reports
• Applied Receipts Register
• Billing and Receipt History
• Disputed Invoice
• Dunning Letter Generate
• Past Due Invoice
• Revenue Journal by GL Account
• Sales Journal by GL Account
• Transaction Detail
• Transaction Register
 Processing Invoices
Printing Consolidated Billing Invoices
¾ Use the Print Consolidated Billing Invoices window to:
• Accept or Reject consolidated billing invoices
• Print draft consolidated billing invoices
• Print new (final) consolidated billing invoices
• Reprint draft or final consolidated billing invoices
¾ Create a batch of consolidated billing invoices by not specifying a customer name or bill-to site
when submitting the program. By omitting these parameters, Receivables creates a
consolidated billing invoice for each customer and bill-to site that matches the other
submission parameters specified.
¾ Accept or reject all consolidated billing invoices in a batch by specifying the concurrent request
ID for this submission.
¾ When printing a new consolidated billing invoice, the program includes only transactions that
were created before the cutoff date and have not yet been included on a consolidated billing
invoice.
¾ To print Imported Billing Number from this program, use custom invoices instead. Imported
Billing Number will not print this way
 Processing Invoices
Printing Consolidated Billing Invoices

Choose this option to accept consolidated

billing invoices. Receivables changes the
Choose this option to print a draft of the consolidated billing invoices.
status from Draft to Accepted. This option
Review the consolidated billing invoices for accuracy and
does not reprint the consolidated billing
completeness, then either accept or reject them. With this option, the
invoices.
invoice will have a status of Draft.

Choose this option to print a

new consolidated billing invoice.

Choose this option to reject unsatisfactory

Consolidated billing Invoices. Receivables
changes the invoice print status from
'Printed' to 'Pending.' Print these invoices Choose this option to reprint
again using either the Print Draft or Print spoiled consolidated billing invoice.
New Consolidated Billing Invoices option.
 Processing Invoices
Consolidated Billing Invoice – Report Parameters
To print consolidated billing invoices for a specific Enter the cutoff date for including invoices
customer, enter the customer name or number. Only To print an invoice that includes all
transactions for a specific bill-to site, enter on this consolidated billing invoice.
customers who are set up to receive consolidated billing Receivables includes all transactions
invoices in their customer level profile appear in the list of a bill-to site Leave this field blank to print
invoices for all of this customer's bill-to created on or before this date that have
values. Leave these fields blank to print consolidated billing not been included on a previous
invoices for all customers who are set up to receive them. sites.
consolidated billing invoice

Enter Yes if the Cut-off Date entered is the last day of the
month and to include all transactions created during the
month. Receivables selects all transactions created during
the month for customers assigned to payment terms with the
Last Day of Month option set to Yes. Enter No to select only
transactions and customers assigned to payment terms with
the same cut-off date entered for the Cut-off Date parameter.

Enter the payment terms to use, if there are

multiple payment terms with the same cutoff day.
Leave this field blank to select all bill-to sites
assigned to payment terms with the cutoff day
entered. If the Last Day of Month parameter is
Yes, specify the payment terms defined for end of
the month consolidated billing.

Indicate whether pre-printed stationary is Choose the print format for this billing
used for consolidated billing invoices. If invoice (optional). The Summary format The default is the functional currency. For
No, Receivables prints column headings lists only the total amount for each customers that use multiple currencies,
with customer and transaction information; transaction. The Detail format includes run a separate report for each currency.
otherwise, Receivables does not print item detail such as description, quantity,
column headings. and unit price.
AutoInvoice
 AutoInvoice
AutoInvoice Overview
AutoInvoice is a powerful, flexible tool you can use to import and validate transaction data from
other financial systems and create invoices, debit memos, credit memos, and on-account credits
in Oracle Public Sector Receivables. You use a custom feeder program to transfers transaction
data from an external system into the AutoInvoice interface tables. AutoInvoice then selects data
from the interface tables and creates transaction in Receivables. Receivables rejects
transactions with invalid information to ensure the integrity of your data.
With AutoInvoice, you can:
•Import large numbers of transactions for seamless integration from Oracle or non-Oracle
systems
–Invoices
–Debit memos
–Credit memos
–On-account credits
•Calculate taxes for the imported transactions, or pass the tax through the tables
•Correct errors easily online
 AutoInvoice
AutoInvoice Process

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 AutoInvoice
AutoInvoice Process
• Create invoices from the
following Oracle applications:
– Oracle Order Management
– Oracle Projects
– Oracle Service
– Oracle Property Manager
• Create invoices from the
following non-Oracle
applications:
– Legacy system (for
transaction history)
– Non-Oracle billing
applications
– Non-Oracle order entry
applications
 AutoInvoice
AutoInvoice Process

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 AutoInvoice
Preparing Receivables for AutoInvoice
• To ensure that the AutoInvoice program works properly, prepare Receivables for any new data
imported. If the feeder system uses any setup data which is not yet defined in Receivables, must
define this data before using AutoInvoice. Following is a list of setup data to be considered:
• Add currencies not yet defined in Receivables.
• Add or update tax rates assigned to tax codes.
• Add or update tax rates associated with products shipped to specific addresses.
• Add or update full or partial customer and item tax exemptions.
• Add Freight on Board (FOB) codes to Receivables
• Add freight carrier codes.
• Add payment terms to Receivables.
• Add transaction types to Receivables.
• Add batch sources.
• Add agents.
• Add accounting rules.
• Add units of measure.
 AutoInvoice
Grouping Rules
• Grouping rules are mandatory and determine how transaction lines are grouped into
transactions
• Grouping rules specify attributes that must be identical for lines to appear on the
same transaction.
• AutoInvoice requires mandatory grouping on the transaction attributes Currency
Code and Bill-To Customer (only one of each attribute is allowed per invoice).
• Receivables automatically applies these required grouping rules to any additional
transaction attributes assigned to the grouping rules.
• All attributes of the Transaction Flexfield are optional within a grouping rule and can
be assigned as optional grouping characteristics in the Grouping Rules window.
 AutoInvoice
Grouping Rule Hierarchy
AutoInvoice uses the following hierarchy to determine which grouping rule to use for a
transaction line:
• The grouping rule specified in the Transaction Sources window for the batch
source of the transaction line
• The grouping rule specified in the Customer Profile Classes window for the bill-to
site use of the transaction line
• The grouping rule specified in the Customer Profile Classes window for the bill-to
customer of the transaction line
• If no rule is specified in either the Transaction Sources or Customer Profile
Classes window, AutoInvoice uses the default grouping rule specified in the
System Options window
 AutoInvoice
AutoInvoice Line Ordering Rules
• AutoInvoice uses these rules to order transaction lines when grouping the
transactions it creates into invoices, debit memos, and credit memos.
• Line ordering rules can be assigned to each grouping rule.
• AutoInvoice uses transaction attributes in the line ordering rules to order invoice
lines based on the priority defined.
• An ascending or descending order for each transaction attribute assigned to a rule
can also be specified.
 AutoInvoice
Using AutoInvoice – Key Concepts
AutoInvoice Purge Program - Choose whether to delete data from the AutoInvoice
Interface tables once it has been validated and transferred into Receivables. Check
the Purge Interface Tables box in the System Options window to automatically
delete the data.
The AutoInvoice Purge program and the Purge Interface Tables system option only
delete data from the interface tables that has been validated and successfully
transferred into Receivables.
Calculating Tax - AutoInvoice provides the functionality needed to meet sales tax
and other taxing requirements, such as Value Added Tax (VAT). Either pass tax
code lines, tax exempt lines or have AutoInvoice automatically determine tax rates
using the hierarchy determined by the tax calculation flow charts.
If AutoInvoice determines tax rates, it will take into account any customer or item tax
exemptions or item tax exceptions.
 AutoInvoice
Using AutoInvoice – Key Concepts
Transactions in Closed Accounting Periods – Use AutoInvoice to pass
transactions in closed accounting periods. Receivables automatically uses the first
day of the next open accounting period as the default date to determine the
accounting distributions.
Creating Transactions – AutoInvoice creates invoices, debit memos, credit memos
and on-account credits using the grouping and invoice line ordering rules specified.
AutoInvoice verifies that the data is valid before it creates transactions in AR.
Deriving Invoice and Accounting Dates – Choose how to determine invoice and
accounting dates for transactions. The feeder program can either load these dates
directly into the interface tables or, if the date fields empty are left empty,
Receivables determines the invoice and accounting dates.
Invoices Against Commitments – Create invoices against commitments in the
same way as a manually entered invoice.
 AutoInvoice
AutoInvoice Execution Phases
AutoInvoice can be divided into three major phases: pre-grouping, grouping, and
transfer.
In the pre-grouping phase, AutoInvoice validates all of the line-level data as well as
any other data that is not dependent upon successful grouping. Some examples
include validating that a transaction type is valid and validating that only one freight
account exists for each freight line passed.
In the grouping phase, AutoInvoice groups lines based on the grouping rules and
validates header-level data that is dependent on how your lines are grouped. Some
examples include validating the over-application rules specified for your batch
source and validating that the general ledger date of an invoice against a
commitment is not before the general ledger date of the commitment.
In the transfer phase, AutoInvoice validates information that exists in Receivables
tables, such as tax defaulting and AutoAccounting data.
 AutoInvoice
AutoInvoice Validation Checks
AutoInvoice validates data for compatibility with Receivables. It ensures that the
columns in Receivables' Interface tables reference the appropriate values and
columns in Receivables.
Existence – For some columns, AutoInvoice ensures that the values are already
defined in Receivables. However, AutoInvoice does not validate against any
effectivity date or status.
Batch Sources – Values for all of the fields that are referenced in the Transaction
Sources window don’t have to be passed. To ignore any of these values for a
specific batch source, set the field to 'None' in the Transaction Sources window. Use
transaction batch sources that have a type of 'Imported' when importing transactions
into Receivables
Uniqueness – AutoInvoice ensures that the invoice number supplied is unique
within a given batch source and the document number supplied is unique within the
associated sequence type. AutoInvoice also ensures that the Transaction Flexfield
supplied is unique.
 AutoInvoice
AutoInvoice Validation Checks
Precision – Precision is the number of digits to the right of the decimal point that are
used in regular currency transactions. AutoInvoice ensures that the amount and the
accounted amount supplied have the correct precision for a given currency.
Cross Validation – AutoInvoice ensures that certain column values agree with each
other. These values can be within an interface table or multiple interface tables.
Validation for Lines With Rules – Besides validating dates, AutoInvoice also
validates and rejects lines if:
• The accounting rule has overlapping periods
• All of the accounting periods do not exist for the duration of the accounting rule
Create Transactions with Invalid or Incorrect Data – Specify whether AutoInvoice
has to reject or partially create transactions that have an invalid line, invalid tax rate, or
a GL date in a closed period. Transactions that fail validation appear in the AutoInvoice
Validation report. The values entered in the AutoInvoice Processing Options tabbed
region of the Transaction Sources window determine how AutoInvoice will process
transactions with invalid data.
 AutoInvoice
Determining GL Dates for Invoices Without Rules
AutoInvoice uses the following process to determine the GL date for invoices witout
rules

¾ AutoInvoice uses the general ledger date in the interface table, if one exists and it is
in an open or future enterable period.
¾ If GL date is not passed and Derive Date is set to No, AutoInvoice uses the value of
the Default Date parameter for this AutoInvoice submission.
¾ If GL date is not passed and Derive Date is set to Yes, AutoInvoice uses the ship
date in the interface table.
¾ If the ship date does not exist or is in a closed period, AutoInvoice uses the sales
order date.
¾ If the sales order date does not exist or is in a closed period, AutoInvoice uses the
value of the Default Date parameter for this AutoInvoice submission.
 AutoInvoice
Determining GL Dates for Invoices With Rules
¾ If the invoice uses Bill in Advance as the invoicing rule, AutoInvoice uses the
earliest accounting rule start date as the invoice GL date.
¾ If the invoice uses Bill in Arrears as the invoicing rule, the invoice line has an
accounting rule of type 'Accounting, Fixed Duration,' and a period of 'Specific Date,'
AutoInvoice computes an ending date using the latest accounting rule date.
¾ For all other accounting rules, AutoInvoice computes an ending date for each
invoice line based on the accounting rule, accounting rule start date, and duration.
¾ Once AutoInvoice computes the ending date for each line of the transaction, it takes
the latest date and uses it as the invoice GL date.
 AutoInvoice
Determining Rule Start Date for Invoices with Rules
¾ If the invoice does not use an accounting rule with a type of 'Accounting, Fixed
Duration' and a period of 'Specific Date,' or if the rule start date is not Derived,
Receivables uses the date specified in the Run AutoInvoice window.
¾ If the invoice has an accounting rule with a type of 'Accounting, Fixed Duration' and
a period of 'Specific Date,' AutoInvoice uses the earliest accounting rule date as the
rule start date.
¾ If the rule start date is Derived, AutoInvoice first uses the ship date in the interface
table.
¾ If the ship date does not exist, AutoInvoice uses the sales order date.
¾ If the sales order date does not exist, AutoInvoice uses the date entered in the Run
AutoInvoice window.
 AutoInvoice
Determining Credit Memo Dates
If a transaction date is passed for the credit memo, AutoInvoice uses the following hierarchy to
determine the credit memo date:
¾ The credit memo general ledger date.
¾ The general ledger date for the invoice's receivable distribution, or the Default Date in the Run
AutoInvoice window, whichever is later.
¾ If a general ledger date is not passed, AutoInvoice uses the general ledger date for the
invoice's receivable distribution or the Default Date in the Run AutoInvoice window, whichever
is later.

Determining the Transaction Dates

If a transaction date is not passed for the invoice or debit memo, AutoInvoice uses the general
ledger date.
 AutoInvoice
Transaction Flexfields
• Transaction flexfields are descriptive flexfields that AutoInvoice uses to uniquely
identify transaction lines.
• Because they are unique for each transaction line, they can also be used to
reference and link to other lines.
• Receivables lets you determine how you want to build your transaction flexfield
structure and what information you want to capture.
• Define a flexfield for each import source. Specify which one to use during import.

Types of Transaction Flexfields

• Invoice Header (optional): Specifies invoice header information
• Line (required): Uniquely identifies invoice lines
• Link-To (optional): Link tax and freight to invoice lines
• Reference (optional): Links credit memos to transactions
 AutoInvoice
Importing Transactions Using AutoInvoice
¾ Run the AutoInvoice Import or Master program to transfer transactions from other
systems into Receivables.
¾ Submit the AutoInvoice Import, Master, and Purge programs from the Submit
Request window. However, the AutoInvoice Master and Purge programs can be
submitted only from the Run AutoInvoice window. The Master program allows
running several instances of AutoInvoice to improve system performance and
import transactions more quickly.
¾ Run the AutoInvoice Purge program to delete the interface lines that were
processed and successfully transferred into Receivables by the AutoInvoice Import
program.
¾ If the Purge Interface Tables option in the System Options window is set to Yes
this program doesn’t have to be run; in this case, Receivables deletes the interface
lines automatically after AutoInvoice is run.
 AutoInvoice
Running Autoinvoice
 AutoInvoice
AutoInvoice Exception Handling
• Records that pass validation are transferred into Receivables transaction tables
• Records that fail validation are called exceptions; these records remain in the
AutoInvoice interface tables
• Once the errors have been corrected , resubmit AutoInvoice
• Valid lines can not be changed in the AutoInvoice Exception Handling windows,
only those lines with errors

AutoInvoice Exception Handling Windows

• The Interface Exceptions window displays exception messages associated with all
invalid records.
• The Interface Lines window displays all records in the interface tables that failed
validation, provides an error message, and can be used to correct invalid records.
• The Line Errors window displays all errors associated with a specific line and can
only be opened from the Interface Lines window.
 AutoInvoice
Interface Exceptions Window
• The Interface Exceptions
window displays the
interface ID, exception
type, error message, and
the invalid value
associated with each error.
• Data in this window cannot
be edited only viewed;
Correct the error by
clicking the Details button.
• The error message and
column name with
erroneous data is
displayed in the Message
column, and the value that
needs to be corrected is
displayed in the Invalid
Value column.

(N) ControlÆ AutoInvoiceÆ Interface Exceptions

 AutoInvoice
Interface Lines Window
• Click the Details button to
open what is applicable to
the error.
• If the error type is freight,
the Interface Freight Lines
window opens.
• If the error type is tax, the
Interface Tax Lines
window opens.
• Correct the error using
this window.

(N) ControlÆ AutoInvoiceÆ Interface Lines

 AutoInvoice
Interface Line Errors
• View all errors associated
with a single line by
clicking the Errors button
in the Interface Lines
window.
• This window displays the
interface ID, the error
type, error message, and
the invalid value.
• Use this window to access
the Interface Lines
window directly which
does not display the error
messages.
• The type indicates which
button to click in the
Interface Lines window.

(N) ControlÆ AutoInvoiceÆ Interface LinesÆ Errors

 AutoInvoice
AutoInvoice Interface Tables
Oracle Receivables uses three interface tables for AutoInvoice:
•RA_INTERFACE_LINES
•RA_INTERFACE_DISTRIBUTIONS
•RA_INTERFACE_SALESCREDITS
 AutoInvoice
RA_INTERFACE_LINES Table
•This table contains information relating to all transactions to be processed by
AutoInvoice. Transactions include invoices, debit memos, credit memos, and on-
account credits.
•Each record contains line, tax, freight, or finance charges information.
•The Line_Type field identifies the type of information contained in the record.
•A record can be a parent record: Line, Header Freight, or Charges; or a child record:
Tax or line-level Freight.
•A child record is linked to the parent record using the Link-To Transaction flexfield.
 AutoInvoice
RA_INTERFACE_DISTRIBUTIONS Table
• This table contains accounting distributions to be used by the transactions defined
in RA_INTERFACE_LINES.
• Accounts defined in this table override any accounts created using
AutoAccounting.
• Choose to pass some or all account information to AutoInvoice. Any accounts that
are not passed will be derived using AutoAccounting.
• Records in this table are linked to records in the RA_INTERFACE_LINES table
using the Transaction flexfield.
• Not required if AutoAccounting determines GL distributions.
 AutoInvoice
RA_INTERFACE_SALESCREDITS Table

• This table contains all sales credit information for the transactions in the
RA_INTERFACE_LINES table.
• The two tables are linked using the Transaction flexfield.
• Not required if not tracking sales credit.
Processing Commitments
 Processing Commitments
Overview of Commitments

Business Need Solution

A customer commits to prepay for

goods or services to be purchased in Create a deposit.
the future.

A customer commits to purchase Create a guarantee

goods or services in the future and will
be billed upon receipt.

A customer wants to create

Select a predefined inventory item.
commitments for specific items.

A commitment can be made active

Assign start and end date ranges.
only for a specific period of time.
 Processing Commitments
Commitment Types
Type Description Comment
Deposit To record a contractual A deposit is often applied
agreement to prepay a to the purchase of a
certain amount specific item or service to
be provided. If the invoice
is more than the deposit,
the customer is billed for
the deposit and the
invoice.

Guarantee To record a contractual A guarantee is a promise

agreement to spend a to conduct a certain
certain amount of amount of business,
money usually over a period of
time. The customer is
notified of the guarantee
and billed on the invoice.
 Processing Commitments
Remaining Balances

When a customer
invoices or credits Type Description
against their
commitments,
Deposit Deposit balances refer to the amount due
Receivables remaining on the deposit. Receipts and
automatically adjusts credits reduce the deposit balance.
the commitment Commitment balances refer to the
balance and generates Commitment contractual amount that has not yet been
reversing entries.
invoiced. Invoices against commitments
After invoices are reduce the commitment balance.
applied to a
commitment, the Invoice Invoice balances refer to the amount due
amount that remains remaining on the invoice. Deposits, receipts,
is the commitment and credits reduce the invoice balance.
balance.
 Processing Commitments
Creating Customer Commitments
Agreement
Agreement specifying
specifying
guarantee
guarantee Invoices
Invoices for
for
products
products or
or
services
services

Invoice
Invoice for
for
Customer
Customer deposit
deposit

Agreement
Agreement requiring
requiring Invoice
Invoice or
or credit
credit
deposit
deposit memo
memo for
for difference
difference
 Processing Commitments
Completing the Deposit Process

1 2 3

Customer
Customer Invoice
Invoice issued
issued Customer
Customer pays
pays
agrees
agrees to
to pay
pay for
for deposit
deposit deposit
deposit
deposit
deposit

4 5 5
Invoice
Invoice issued
issued
for
for products
products or
or Deposit
Deposit is
is matched
matched to
to
services
services invoice
invoice for
for product
product
 Processing Commitments
Completing the Guarantee Process

1 2 3

Customer
Customer agrees
agrees Guarantee
Guarantee issued
issued Invoice
Invoice issued
issued
to
to spend
spend specific
specific to
to customer
customer for
for purchases
purchases
amount
amount

4 5
Guarantee
Guarantee is
is matched
matched Customer
Customer pays
pays
to
to purchase
purchase invoice
invoice for
for purchases
purchases
 Processing Commitments
Accounting for Commitments – Deposits
¾ The accounting reversal is made by creating a receivables adjustment in Accounts
Receivable to the invoice for the total of the invoice lines.

¾ This adjustment has the effect of reducing the invoice's payment schedule by the
amount of the invoiced items (tax and freight amounts are not deducted from the
deposit balance) and creating the reversing accounting entries.

¾ If however, the amount of the invoice exceeds the remaining commitment balance,
Receivables only creates a receivables adjustment for the remaining commitment
balance.
 Processing Commitments
Accounting Entries for Deposits
When the deposit is initially entered, Customer agrees to pay deposit of 100
the following accounting entry
is created:
Dr. Receivables (Deposit) 100
Cr. Unearned revenue 100 These accounting entries are created:
Dr. Receivables (Invoice) 40
Payment of 100 received for deposit Cr. Revenue 40
Dr. Unearned Revenue 40
This accounting entry is created: Cr. Receivables (Invoice) 40
Dr. Cash 100
Dr. Receivables (Deposit) 100 Net effect is:
Dr. Receivables (Deposit) 100
Net effect is: Cr. Unearned Revenue 60
Dr. Cash 100 Cr. Revenue 40
Cr. Unearned Revenue 60
Cr. Revenue 40 Invoice of 40 applied to deposit of 100
 Processing Commitments
Accounting for Commitments – Guarantees
¾The accounting reversal is made by creating a receivables adjustment in Accounts
Receivable to the guarantee for the total of the invoice lines.

¾This adjustment has the effect of reducing the guarantee's payment schedule by the
amount of the invoiced items (tax and freight are not deducted from the commitment
balance) and creating the reversing accounting entries.

¾If however, the amount of the invoice exceeds the remaining commitment balance,
Receivables only creates a receivables adjustment for the remaining commitment
balance.
 Processing Commitments
Accounting Entries for Guarantees
When the guarantee is initially entered, Customer commits to guarantee
the following accounting entry
is created:
Dr. Unbilled Receivables 100 These accounting entries are created:
Cr. Unearned Revenue 100 Dr. Receivables (Invoice) 40
Cr. Revenue 40
Payment of 40 received for invoice
Dr. Unearned Revenue 40
These accounting entries are created: Cr. Unbilled Receivables 40
Dr. Cash 40
Cr. Receivables (Invoice) 40 Net effect is:
Dr. Unbilled Receivables 60
Net effect is: Cr. Unearned Revenue 60
Dr. Cash 40 Dr. Receivables (Invoice) 40
Cr. Revenue 40 Cr. Revenue 40
Dr. Unbilled Receivables 60 Invoice of 40 applied to guarantee
Cr. Unearned Revenue 60
 Processing Commitments
Entering Committments
Select Deposit or Guarantee
Enter the transaction header as the Transaction Class
information and the Main tab,
including the customer
information and payment terms.
Open the Commitment Tab

Enter a range of Effective Dates for this

Select a transaction type. commitment. If you do not assign an end
Any transaction type of Class date, Receivables lets you enter invoices and
Deposit or Guarantee can be credit memos against this commitment
selected indefinitely until the amount due becomes
zero. If you enter an end date, Receivables
verifies that all existing invoices against this
commitment are included in this date range.
Enter the Amount of this
commitment.

Enter either an Item or a Memo Enter a brief Description for

Line for this commitment, or this commitment.
select from the list of values.

(N) TransactionÆ Transactions

 Processing Commitments
Invoicing Against Commitments
¾ Enter invoices against deposits and guarantees by using the Transaction window or
by importing invoices using AutoInvoice.
¾ Enter an invoice against an existing or related customer deposit or guarantee by
navigating to the Commitment field in the Transactions window. Enter the
commitment number that to reference and Receivables automatically creates the
adjusting accounting entries.
¾ Review commitment activity for customers using the Commitment Balance Report.

Overdrawing Commitments
¾ Enter orders or invoices for more than the customer's remaining commitment
balance.
¾ Receivables automatically creates a receivables adjustment in Receivables for the
commitment balance bringing down the commitment balance to 0 and leaving the
amount due on the invoice to the remaining amount.
 Processing Commitments
Calculating Commitment Balance
¾ The customer's commitment balance is available in several places within
Receivables and is also available Oracle Order Management is used.
¾ See the balance for a particular commitment when entering an order (if using Order
Entry), a manual invoice, or a credit memo against a commitment, or by running the
Commitment Balance Report.
¾ All transactions that reference a commitment or reference an invoice that references
a commitment affect the balance of that commitment.
Customer Adjustments
 Customer Adjustments
Invoice Correction Methods
Overinvoicing
Overinvoicing occurs
occurs when
when an
an invoice
invoice isis Underinvoicing
Underinvoicing occurs
occurs when
when an
an invoice
invoice is
is
generated
generated for
for an
an amount
amount greater
greater than
than the
the generated
generated for
for an
an amount
amount less
less than
than the
the
amount actually due. The difference
amount actually due. The difference amount actually due. The difference
amount actually due. The difference
between
between the
the amounts
amounts can
can be
be credited
credited oror between
between the
the amounts
amounts debited
debited against
against the
the
refunded
refunded toto the
the customer,
customer, or
or the
the invoice
invoice customer,
customer, or
or the
the invoice
invoice can
can be
be updated.
updated.
can
can be
be updated.
updated.

Invoices

Underinvoicing Overinvoicing Respond to invalid

•Update invoice •Update invoice transactions
• Debit memo • Credit memo • Void
• Adjustment • On-account credit • Delete
• Adjustment
• Refund
 Customer Adjustments
Overview of Corrections
Correction Effect on Approval Accounting
Type Invoice Limits Source

Update Changes None Original

Invoice original Transaction

Debit memo None; None AutoAccounting

new item

Adjustment Activity User Receivables

Activity

Credit memo New item None Original

applied to Transaction or
original AutoAccounting
(profile option)

On-account None; None AutoAccounting

credit account only
 Customer Adjustments
Overview of Corrections
Correction Usage
Type Tax Restriction Entry

Update Automatic Activity Query in

Transaction
window

Debit memo Automatic None Transaction

window

Adjustment Manual or Approval Transaction

write-off limits summary

Credit memo Automatic None Transaction

summary

On-account Automatic None Transaction

window
 Customer Adjustments
Underinvoicing Correction Options

Option Description
Update invoice Update the line, tax, and freight
amounts on the original invoice
before it is posted.

Adjust invoice manually Adjust line, tax, and freight amounts

on the original invoice.

Enter Debit memo Create Debit memo from the

transaction screen or import
through AutoInvoice. Debit Memos
are like Invoices
 Customer Adjustments
Overinvoicing Correction Options
Option Description
Update invoice Update the line, tax, and freight
amounts on the original invoice
before it is posted.
Adjust invoice manually Adjust line, tax, and freight amounts
on the original invoice.

Enter credit memo Credit a specific invoice.

Enter on-account credit Credit the customer’s account. This

credit does not initially apply to a
specific invoice.

iReceivables disputes an Enter a requested credit amount or

invoice percentage for lines, tax or freight or
total. Credit memo request is routed
through the approval process
 Customer Adjustments
Applying Different Types of Credits
Respond to overinvoicing with credit memos and on-account credits. Credit memos
affect specific invoices; on-account credits affect customer balances.

Applied credit memo

Credit Invoice
memo

On-account credit
Credit Customer
memo account
 Customer Adjustments
On-Account Credits
• On-account credits are credits assigned to customer's account that are not related to
a specific invoice.
• Specify the debit item to credit in the Transactions window or create an on-account
credit by not specifying one.
• On-account credits can be applied and reapplied to invoices, debit items, and
chargebacks.
• Amounts can also be placed on-account when manually applying receipts in the
Applications window
 Customer Adjustments
Creating On-Account Credits If Automatic Sequence Numbering is not used, enter
a unique Number for this credit, else Receivables
assigns a number when the transaction is saved.

Enter the Date and

Currency for this credit

Enter the GL Date for

this credit. The GL Date
must be in an open or
future period.

Enter the batch Choose a transaction

Source for this credit. Class of Credit Memo.

Enter a transaction
Type. Choose any Enter the Amount of this
transaction type with a Enter the Bill-To on-account credit as a
class of Credit Memo. Name and Location Choose Line Items and negative number.
of the customer enter the description or
account to credit. select a Standard memo
Line from the List of Values

(N) TransactionsÆ Transactions

 Customer Adjustments
Creating On-Account Credits – Receipts Workbench

The default amount is the

unapplied amount of the receipt,
but this can be changed.

Enter the Receipt Header

information as a normal Receipt

To place any remaining amount on

account, enter 'On Account' in the
Transaction Number field. The
default amount is the unapplied
amount of the receipt. (N) ReceiptsÆ ReceiptsÆ Applications
 Customer Adjustments
Crediting Transactions
• Use the Credit Transactions window to enter, update, and review credit memos
against specific invoices, debit memos, or commitments.
• Create credit memos to reduce the balance due for a transaction. When a
transaction is credited, Receivables creates the appropriate accounting entries and
reverses any sales credit assigned to sales agents.
• Receivables allows crediting an entire invoice or specific invoice lines. Also credit
freight for an entire invoice or only for specific invoice lines.
• Deletion of an incomplete credit memo is possible if the system option Allow Invoice
Deletion is set to Yes.
• A transaction must be complete before a credit memo can be created against it
against it.
 Customer Adjustments
Crediting Transactions

Enter the number of the transaction to

credit in the Find Transactions window.
Or If the transaction number is not
known, enter selection criteria such as
Class, Transaction Date, and Currency
to limit the search.

(N) TransactionsÆ Credit Transactions

 Customer Adjustments
Crediting Transactions Enter a transaction Type for this credit
memo. The batch source provides the
default type. choose any transaction
type with a class of Credit Memo.
Enter the Date of this credit
memo. Receivables prints this
Enter the batch Source for this credit date on the credit memo.
memo. The default is the batch source of If the transaction being credited uses invoicing and
the transaction being credited accounting rules, choose one of the following
Rules Methods:
• Last In First Out (LIFO): Choose this option to
back out revenue starting with the last general
Enter a credit memo Number If the ledger period and reverse all prior periods until it
batch source does not use Automatic has used up the credit memo.
Transaction Numbering, • Prorate: Choose this option to credit an equal
percentage to all account assignments for this
invoice.
• Unit: Choose this option to reverse the revenue
for the number of units you specify from an
original line of the invoice.

To credit only part of the balance due

for this transaction, enter the
percentage or Amount of Line, Tax, or
Freight charges to credit. To credit a If the transaction being credited has multiple
specific portion of the charges, enter a installments, choose one of the following Split
negative number in the Amount field If Term Methods:
you enter a percentage, Receivables
• First in First Out (FIFO): This method credits
calculates the amount, and vice
the first installment first.
versa.
• Last In First Out (LIFO): This method credits
the last installment first.

To credit the entire balance due for • Prorate: This method credits the installments of
this transaction, choose Credit the credited transaction and prorates them
Balance. based on the amount remaining for each
installment.
(N) TransactionsÆ Credit Transactions
 Customer Adjustments
Credit Lines

Enter either the Quantity and Unit Price or the A positive amount can be entered if the
Amount to credit for this line. If the quantity Creation Sign of this credit memo's
and unit price are entered, Receivables transaction type is Positive Sign.
calculates the amount. A credit memo line A negative amount can be entered if the
can be overapplied if the transaction type of Creation Sign of this credit memo's
the transaction being credited has Allow transaction type is either Negative or
Overapplication set to Yes. Any Sign

If a transaction has several line items,

partially or fully credit the amount due
for each line or only a single line item.

(N) TransactionsÆ Credit TransactionsÆ Credit Lines

 Customer Adjustments
Applying Credits
Consider the following issues when applying credit memos and on-account credits:

Business Need Solution

A credit balance exists on a Apply the remaining credit to
specific invoice and must be another invoice in the
applied to another invoice. Applications window, accessed
from the Receipts window.

An on-account credit entered Apply the on-account credit to a

last month must be applied to a specific invoice in the
specific invoice. Applications window, accessed
from the Transactions Summary
window.

An on-account credit is applied Remove the on-account credit,

to the wrong invoice and must and then apply it to the correct
be reapplied to the correct invoice in the Applications
invoice. window, accessed from the
Transactions Summary window.
 Customer Adjustments
Applying a Receipt with an On-Account Credit

Query
Queryororenter
enterthe
the
receipt
receipt to applyand
to apply and
Choose
ChooseApplications
Applications

Select
Selectthetheon-account
on-account
credit
creditand
andthe
theopen
open
transaction(s) from
transaction(s) from
the
thelist
listof
ofvalues
values
•Apply a receipt with an existing on-account credit
to close one or more customer's open debit items.
•Also apply receipts and on-account credits to
transactions in different currencies (N) ReceiptsÆ ReceiptsÆ Applications
 Customer Adjustments
3. Select the transaction to which to apply this
Applying On-Account Credits on-account credit from the list of values.
Receivables enters the Amount Applied and
updates the Unapplied Amount of the on-
account credit and the Balance Due for this
transaction. The default Amount Applied is
the balance due for this transaction, unless
the balance due is greater than the amount
of this on-account credit. In this case, the
default Amount Applied is the unapplied
amount of the on-account credit.

2.
2. Choose
Choose
Applications
Applications

1.
1. Query
Querythe the
on-account
on-account
credit
credit to
to
apply.
apply.
(N) Transactions Æ Transactions SummaryÆ Applications
 Customer Adjustments
Reversing Sales Credits
• When crediting any part of the invoice, Oracle Receivables automatically reverses
sales credits assigned to the appropriate salespeople.
• Partial credits against sales credits default proportionately, but can be updated as
long as the sum of sales credits for the line equals the original line credit amount.
• The AR: Allow Update of Existing Sales Credits profile option determines whether a
user can update existing sales credits or if additional sales credit records need to
be created to maintain an audit trail.
 Customer Adjustments
Processing Refunds Creating Refunds
•Create a refund when the customer has already •Create a credit memo
paid an invoice and requests money back •Create a debit memo
instead of a credit.
•Set up customer as a
•Oracle Receivables does not create checks and supplier
therefore does not complete the refund process.
•Use the debit memo to
•If Oracle Payables has been installed, you can enter an invoice in
use the features of the two systems to process Oracle Payables
refunds.
•Create a payment and
•Use a clearing account to offset the receivables send to customer
account in AR and the payables account in AP.
 Customer Adjustments
Accounting Entries for Refunds
Enter a credit memo in Oracle Receivables to reduce revenue and create an amount due to the
customer.
Dr. Revenue 200
Cr. Receivables 200
Enter a debit memo in Oracle Receivables to transfer the amount owed to the customer to a
clearing account.
Dr. Receivables 200
Cr. Clearing 200
Enter an invoice in Oracle Payables to clear the clearing account and create an accounts
payable for the customer.
Dr. Clearing 200
Cr. Payables 200
Issue a check in Oracle Payables to send the refund to the customer.
Dr. Payables 200
Cr. Cash 200
 Customer Adjustments
Voiding Transactions
Void invoices, credit memos, and on-account credits in response to invalid
transactions. Respond to invalid transactions according to business needs.

Business Need Solution

Track invoices that are Update the invoice status to

incorrectly entered to determine Incomplete, or clear the Open
whether this is a data entry Receivable and Post To GL check
problem or if customers are boxes in the Transaction Types
providing incorrect information. window.

Delete incomplete transactions

Delete transactions that are from the Transactions Summary
incorrectly entered. window if the Allow Invoice
Deletion check box in the System
Options window is selected.
 Customer Adjustments
Voiding Invalid Transactions
If there is no activity against a transaction, and if it has not been posted to the GL, you
can void the transaction.
• Changing Complete Status
– Clear the Complete check box of the transaction.
• Updating Transaction Type
– Set up a transaction type with the Open Receivables and Post to GL check
boxes cleared.
– Assign this transaction type to the transaction you want to void and complete the
transaction.
• Deleting Incomplete Transactions
– If the system option Allow Invoice Deletion check box is selected, you can delete
incomplete transactions from Oracle Receivables.
– Select Delete Record from the Edit menu to delete invoices from the
Transactions Summary. Save the record once you have deleted the transaction
 Customer Adjustments
Adjusting Invoices

Business Need Solution

Some invoices exist that Manual adjustment for each
have incorrect amounts. invoice.
Close all invoices that have Automatic adjustment
a remaining balance of $50 for $50.
or less.
A customer was overcharged Manual freight adjustment
for freight by $100. for $100.
Write off a line item and Create one adjustment line
its tax. using a receivables activity
that includes the tax.
 Customer Adjustments
Adjustments Overview
• Make either positive or negative adjustments to invoices, debit memos,
chargebacks, on-account credits, deposits, and guarantees.
• Approve adjustments that are within approval limits and give pending statuses to
adjustments that are outside approval limits.
• Automatically write off debit items that meet selection criteria.
• The accounting of the adjustment is determined by the receivables activity selected
• Tax can be included in a line or entered as a separate line
• Adjustments can be created manually or automatically
 Customer Adjustments
Creating Adjustments

Adjustment Approval limit Validation Approved

entry $500 process or Pending
 Customer Adjustments
Adjustment Status
An adjustment has a status that indicates whether it is complete. Receivables
provides the following adjustment statuses:
Approved: This adjustment has been approved. Receivables updates the debit or
credit item amount and status to reflect the adjustment.
Research Required: This adjustment is on hold because the debit or credit item is
either being researched or additional information id requested about the adjustment.
Rejected: The adjustment is rejected. Adjustments with this status do not update the
balance of the credit or debit item.
Pending Approval: The adjustment amount is outside the approval limits of the user
who entered the adjustment. Adjustments with this status can only be approved by a
user with the appropriate user approval limits.
Additional adjustment statuses can be defined by updating the Receivables lookup
'Approval Type'.
 Customer Adjustments
Adjustment Activities
• Use receivables activities to default accounting information for adjustment
transactions.
• Define as many receivables activities of the type adjustment as needed.
• Define adjustment activities in the Receivables Activities window
• To calculate tax on the adjustment, define the GL accounts in the Tax Accounting
window which is accessed from the Tax Code window. Recoverable or non-
recoverable accounts can be set up.

Adjustment
Adjustment Activities:
Activities:
Define
Define as many
as many
receivables
receivables activities of
activities of
the type adjustment as
the type adjustment as
needed.
needed.
 Customer Adjustments
GL Activity Source Options
• Activity GL Account: Allocate the expense or revenue to the general ledger
account specified for this Receivables Activity.
• Distribution Set: Allocate the expense or revenue to the distribution set that you
specify for this Receivables Activity. A distribution set is a predefined group of
general ledger accounting codes that determine the accounts for miscellaneous
receipts and payments. This option can only be selected if the activity type is
Miscellaneous Cash.
• Revenue on Invoice: Allocate the expense or revenue net of any tax to the
revenue account(s) specified on the invoice. If Tax Code Source is set to None,
allocate the gross amount to these accounts. This option cannot be selected if the
activity type is Miscellaneous Cash.
 Customer Adjustments
Tax Code Source Options
• Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by
the Receivables Activity.
• Invoice: Distribute the tax amount to the tax accounts specified by the tax code on
the invoice. This option cannot be selected if the activity Type is Miscellaneous
Cash or Finance Charges.
• None: Allocates the entire tax amount according to the GL Account Source
specified. Choose this option if tax doesn’t have to be separately accounted for .
 Customer Adjustments
Adjustment Types
Create an adjustment at the invoice header level or adjust only specific elements of
an invoice, debit memo, credit memo, or chargeback.

Adjustment Usage
Type
Invoice To adjust the entire invoice. Can be a
negative amount only.
Line To adjust lines. Can be positive or negative.
Can include tax.
To increase or decrease tax amount.
Tax

Can be used to create finance charges or

Charges decrease a finance charge.
To increase or decrease freight amount.
Freight
 Customer Adjustments
Validation
When an adjustment is created, Receivables verifies that it is within adjustment
approval limits before approving the adjustment. If an adjustment is entered that is
within the user’s assigned approval limit for the currency of that item, Receivables
updates the customer's balance to reflect the adjustment.
If an adjustment that is outside approval limits is entered, Receivables creates a
pending adjustment with a status of Pending Approval.
If the transaction type does not allow over-application, an amount that would reverse
the sign of the balance of the debit item cannot be entered.
If type of adjustment specified is Invoice Adjustments, Receivables requires that the
adjustment amount be the exact amount to close the item being adjusted, and enters
this amount in the Amount field
 Customer Adjustments
Approval Limits
Use the Approval Limits window to define approval limits for adjustments created in
Receivables and requests for credit memos initiated from iReceivables.
Receivables uses approval limits that have a document type of Adjustment when an
adjustment is created in the Adjustments, Submit AutoAdjustments, and Approve
Adjustments windows.
When an adjustment that is outside the approval limit range is entered, Receivables
assigns the adjustment a status of Pending until someone with the appropriate
approval limits either approves or rejects it.
The Credit Memo Request Approval Workflow uses approval limits that have a
document type of Credit Memo when forwarding credit memo requests from
iReceivables. The workflow sends a notification to an approver if the request is within
the approval limit range for the currency and reason code specified.
Define Adjustment approval limits by currency and dollar amount. Credit Memo
approval limits are defined by reason type, currency, and dollar amount.
Both lower and upper approval limits must be specified for each approver.
 Customer Adjustments
Creating Manual Adjustments Choose the Type of adjustment. If the
type specified is 'Invoice' the amount
of adjustment should be at least
enough to close the item being
adjusted. If the adjustment type is
‘Line’ the balance due for the
transaction by the amount that is
updated

Enter an Activity Name.

The activity name provides
Enter the Adjustment
the default GL account
Date. The default is
the current date.

Enter the GL Date for this

Enter the Amount of this adjustment. The default is
adjustment. Defaults if the the later of either the
adjustment type specified is transaction GL date or the
‘invoice’ current date.

(N) TransactionsÆ Transaction SummaryÆAdjustment

 Customer Adjustments
Adjusting Transactions Automatically
• Automatic adjustments eliminate remaining balances for invoices, taxes, freight,
invoice line items, or finance charges.
• You can restrict the remaining currency or percentage amounts that can be
reduced to zero, based on the user’s adjustment approval limits.
• Approval limits for automatic adjustments work in the same way as manual
adjustments.
Creating Automatic Adjustments
• The Activity field in the Parameters region determines which GL account is debited
to eliminate remaining balances.
• The Type field determines what type of transactions are affected.
• Because of the impact of this feature, you should limit its availability to users when
setting up Oracle Receivables.
• If Remaining Amount or % Remaining field is left blank, the amount is unlimited.
 Customer Adjustments
Creating AutoAdjustments
Specify the transactions to adjust by
entering selection criteria. Leave blank
to not limit adjustments to transactions
Enter the Invoice Currency of
matching specific criteria.
transactions to adjust. The default is
the functional currency

This option prints the AutoAdjustment Preview

Enter an adjustment Report to see the effects of adjustments without
Activity, or select from the actually updating the items. Use this option to
list of values. analyze the adjustments that would be created and
decide if modifications to selection criteria is reqd.
before actually performing the adjustment.

Enter the Type of

adjustments to create. Check to adjust the items
of related customers.

Enter the GL date. The

default is the current date This option creates the approved and
pending adjustments, closes the
appropriate items, and prints the
Enter a Reason for creating AutoAdjustment Audit Report.
this adjustment, or select
from the list of values
(N) ControlÆ AdjustmentsÆ Create AutoAdjustments
 Customer Adjustments
Approving Adjustments
• A pending adjustment must be approved before it affects the remaining balance of
a transaction. Adjustment approvals are controlled by creating individual approval
limits.
• Use the Adjustments or the Approve Adjustments window to review and approve
pending adjustments.
• Use the Adjustment Approval Report to see transaction adjustments with
information about their status, creator, reasons, GL date and amount.
• Adjustments include manual adjustments, AutoAdjustments, invoices applied to
commitments, and credit memos applied to invoices that are against commitments.
• Use the Adjustment Register report to review approved adjustments by document
number. This report groups and displays transactions by currency, postable status,
document sequence name, and balancing segment.
 Customer Adjustments
Approving Adjustments
To limit your display to only certain
adjustments, enter selection criteria. For
example, enter a Creator, Adjustment Number,
Currency, range of Amounts, or adjustment
Status. Open the More tabbed region to enter
selection criteria for a specific transaction,
customer, or adjustment. Leave a field blank if
you do not want to limit your query to
adjustments matching that criteria.

Control how Receivables displays

your adjustments by choosing the
Order By Amount or Status option.

(N) ControlÆ AdjustmentsÆ Approve AdjustmentsÆ Find

 Customer Adjustments
Approving Adjustments

To approve an adjustment,
enter a Status of Approved.

(N) ControlÆ AdjustmentsÆ Approve Adjustments

Receipts
 Receipts
Receipts Workbench Windows
Use the Receipts Workbench to
create receipt batches and enter,
apply, reverse, reapply, and delete
individual receipts.
Enter receipts manually, import
them using AutoLockbox, or create
them automatically.
Use this workbench to clear or risk
eliminate factored receipts, remit
automatic receipts, create
chargebacks and adjustments, and
submit Post QuickCash to
automatically update customer's
account balance
The following windows in the
Receipts Workbench are Folder
windows which can be customized.
• Applications
• Lockbox Transmission Data
• QuickCash
• Receipt Batches Summary
• Receipts Summary
• Remittances Summary
 Receipts
Receipt Workbench
Use the Receipts Workbench to create receipt batches and enter, apply, reverse,
reapply, and delete individual receipts.
Enter receipts manually, import them using AutoLockbox, or create them
automatically.
Use the Receipt workbench to clear or risk eliminate factored receipts, remit automatic
receipts, create chargebacks and adjustments, and submit Post QuickCash to
automatically update customer's account balance.

Receipt Types
There are two types of receipts
• Cash receipts: Payment (such as cash or a check) that you receive from your
customers for goods or services.
• Miscellaneous transactions: Revenue earned from investments, interest, refunds,
and stock sales.
 Receipts
Receipt Entry Methods
Receipts can be entered in one of three ways:

Manual
Manual QuickCash
QuickCash Automatic
Automatic
receipts
receipts receipts
receipts receipts
receipts

•• Cash
Cash •• Cash
Cash •• Credit
Credit card
card receipts
receipts
•• Miscellaneous
Miscellaneous •• AutoLockbox
AutoLockbox •• Bills
Bills of
of exchange
exchange
•• Direct
Direct debits
debits
 Receipts
Receipt Statuses
• Approved: This receipt has been approved for automatic receipt creation. This
status is only valid for automatic receipts.
• Confirmed: For manually entered receipts, this status indicates the receipt
belongs to a receipt class that requires remittance. For automatic receipts, this
status indicates the receipt has been confirmed.
• Remitted: This receipt has been remitted. This status is valid for both automatic
and manually entered receipts.
• Cleared: The payment of this receipt was transferred to your bank account and
the bank statement has been reconciled within Receivables. This status is valid
for both automatic and manually entered receipts.
• Reversed: This receipt has been reversed. You can reverse a receipt when
your customer stops payment on a receipt, if a receipt comes from an account
with non-sufficient funds or if you want to re-enter and reapply it in Receivables.
You can reverse cash receipts and miscellaneous transactions.
 Receipts
Receipt Batch Statuses
Status Description
New Creating a new batch. The status of the new
batch changes to Out of Balance, Open, or
Closed when receipts are committed for the
first time.
Out of Balance Actual count and amount of receipts do not
match the control count and amount.
Open Actual count and amount match the control
count and amount, but the batch includes
unapplied or unidentified receipts.

Closed Actual count and amount match the control

count and amount. All receipts have been
identified and applied to invoices or applied
on account.
 Receipts
Relationship of Receipt Class, Payment Method,
and Bank Account

Receipt
Receipt class
class

Payment
Payment method
method Payment
Payment method
method

Bank
Bank account
account Bank
Bank account
account
•• GL
GL account
account •• GL
GL account
account
 Receipts
Application Rule Sets
¾ Application Rule Sets determine the steps Receivables uses to apply partial payments
to customer's open debit items and how discounts affect the open balance for each type
of associated charges.
¾ Application Rule Sets specify how Receivables reduces the balance of the open debit
items when :
• A receipt is applied to an invoice or debit memo
• Post QuickCash is run
¾ Assign a rule set to each of transaction types and enter a default rule set in the System
Options window.
¾ Receivables uses the following hierarchy to determine which application rule set to use,
stopping when one is found:
• Transaction Type
• System Options
 Receipts
Application Rule Sets
Receivables provides the following predefined Application Rule Sets.
Line First - Tax After - This rule set first applies the payment to the open line amount, and then
applies the remaining amount to the associated tax. If the payment is greater than the sum of
the line and tax, Receivables attempts to close each open item by applying the remaining
amount in the following order, stopping when the payment has been fully applied:
• Freight
• Finance charges
Any remaining receipt amount is applied using the Overapplication Rule. This is the default
application rule set in the System Options window
Line First - Tax Prorate - This rule set applies a proportionate amount of the payment to the
open line and tax amount for each line. If the payment is greater than the sum of the open line
and tax amounts, Receivables attempts to close each open item by applying the remaining
amount in the following order, stopping when the payment has been fully applied:
• Freight
• Finance charges
Any remaining receipt amount is applied using the Overapplication Rule
 Receipts
Application Rule Sets
Prorate All – This rule set applies a proportionate amount of the payment to each open amount
associated with a debit item (for example, any line, tax, freight, and finance charge amounts for
this item).
Receivables uses the following formula to determine the applied amount:
Applied Amount = open application line type amount / sum of application line types in rule
details * Receipt Amount
Any remaining receipt amount is applied using the Overapplication Rule
Overapplication Rule – This rule applies any remaining receipt amount after the balance due
for all charges has been reduced to zero.
• If the transaction type for the debit item has the Allow Overapplication check box set to
Yes, Receivables applies the remaining amount to the lines, making the balance due
negative.
• If the item's transaction type has Allow Overapplication set to No, you can either place
the remaining amount on-account or leave it 'Unapplied'.
 Receipts
Manual Receipts
• Manual receipts can be cash or miscellaneous receipts.
• Manual receipts can be entered individually or in a batch.
• The customer balance is updated when the receipt is saved.
Cash receipts Miscellaneous receipts
Enter
Enter&&apply
apply Enter
Enter

Adjustment
Adjustment Chargeback
Chargeback Remit
Remit

Remit Reconcile
Reconcile
Remit
Reconcile
Reconcile
Reverse
Reverse
Reverse
Reverse Reapply
Reapply
 Receipts
Receipt Batches
• Use the Receipt Batches window to create receipt batches or to query existing batches.
Batching receipts lets you:
• View the difference between your control and actual batch counts and amounts as you
process your receipts. These differences can alert you to data entry errors, missing or
lost receipts, or duplicate entries.
• Group related receipts together to share default attributes such as receipt class,
payment method, and automatic numbering.
• Manage the time-consuming task of data entry. For example, you have many receipts
to enter and want to divide the work among several people. You can create one batch
and have each person entering receipts add them to the same batch.
• You can add duplicate receipts to a batch. Duplicate receipts are receipts that have the
same number, amount, and customer information.
• You can post a receipt batch to your general ledger regardless of its status. You can delete
a receipt batch only if it does not contain any receipts.
 Receipts
Receipt Batches – Manual Regular Enter a Batch Source. If the profile
option AR: Receipt Batch Source is
The receipt class determines the defined, Receivables uses this as the
processing steps for this receipt. default batch source. The batch source
determines default attributes for
Choose a Batch Type of receipts within this batch, including
Manual Regular. payment method, receipt class, and
whether receipt numbers are assigned
automatically.

Enter the Batch,

GL, and Deposit
Dates for this batch Receivables uses the payment method
to determine the accounting and
remittance bank accounts for this
receipt.

Enter the total number and

amount of receipts that you
want to add to this batch in the
Control Count and Control Enter a unique Batch Name. If
Amount fields. Automatic Batch Numbering for the
batch source you entered is Yes,
Receivables assigns a batch name
when you save.

To add receipts to this

(N) ReceiptsÆ Receipt Batches batch, choose Receipts.
 Receipts
Receipts enter transactions in any currency defined in the
Choose a Receipt
system if you have at least one remittance bank
Enter the receipt information, Type of 'Cash.'
account with a Receipts Multi-Currency flag set to
including Receipt Number, Currency, Yes. If no such bank account exists, you are
Receipt Amount, GL Date, and limited to entering only those currencies in which
Receipt Date. bank accounts exist.

Enter a Payment Method.

Receivables uses the payment
method to determine the accounting
and remittance bank accounts for this
receipt.
Enter customer information for this receipt,
including Customer Name or Number and Bill-To
Location. Receivables enters this customer's
primary Bill-To Location, if one exists If the system
option Require Billing Location for Receipts is set to
Yes, a Bill-To Location must be entered.

Choose Applications
to apply receipts
Enter Customer Bank Information if manually or to leave
any. IF the Bank accounts are On-Account
defined during customer creation,
the same default.

Choose Mass Apply

to apply receipts to
(N) ReceiptsÆ Receipts multiple Transactions
 Receipts
Receipts – Mass Applications To automatically mark the transactions
matching the selection criteria for application,
choose Apply. Receivables selects each
transaction for application in the order queried
Specify the transactions to which until the full amount of the receipt is applied.
to apply this receipt by entering Marked transactions will be paid in full with any
Transaction selection criteria discounts automatically taken.

Specify how to order

selected transactions by
entering Sort Criteria.

Specify which types of

transactions to include in
the query by checking or
unchecking the appropriate To view the transactions matching the
check boxes. selection criteria without marking them
for application, choose Preview. Then
choose the transactions to which to
apply this receipt

Enter an Apply Date (optional). If the

receipt date is later than the current
date, the default is the receipt date;
otherwise the default is the current
date. Receivables uses this date as the
application date for all transactions
included in this application.
(N) ReceiptsÆ ReceiptsÆ Mass Apply
 Receipts
Criteria for Mass Applying Receipts
Sort Criterion Business Need

Balance Due Apply receipts to transactions based on the balance due.

To pay the largest balances first, use descending order.

Due Date Apply receipts based on due date. To pay the oldest
balances first, use ascending order.

Invoice Date Apply receipts in FIFO or LIFO order by sorting on invoice

date and using ascending or descending order,
respectively.

Invoice Number Use invoice numbers, if they follow a meaningful pattern.

For example, if invoices are numbered sequentially, sort
invoices by number to ensure that the oldest invoice is
paid first.
 Receipts
Receipts – Applications Receivables marks any portion of this
receipt not applied or placed on-account as
Select the transaction to which to apply this
'Unapplied'.
receipt from the list of values. Receivables enters
the Amount Applied for this receipt and updates
the Unapplied Amount of the receipt and the
Balance Due for this transaction. If the system
option Allow Payment of Unrelated Invoices is set
to Yes, this receipt can be applied to an unrelated
customer's transactions.

To place an amount on account, enter 'On

Account' in the Transaction Number field.
The default amount is the unapplied amount
of the receipt

(N) ReceiptsÆ ReceiptsÆ Applications

 Receipts
Miscellaneous Receipts Choose a Receipt
Type of 'Misc.'

Enter transaction information,

including Receipt Number,
Currency, Receipt Amount, GL
Date, and Payment Method.

Enter an Activity, or choose one from the

list of values. You can enter any
Receivables Activity with a type of
'Miscellaneous Cash.' The Receivables
Activity determines the default distribution
set and accounting for this transaction.

Specify from where this

payment originated in the Paid
From field. This field is for
informational purposes only.

Enter a Reference Type

for this transaction. Select
from the following:
Payment
Payment Batch If a Reference Type is entered, enter
Receipt the corresponding Reference Number,
Remittance or choose from the list of values.

(N) ReceiptsÆ Receipts

 Receipts
Quick Cash Receipts
• Create a batch of QuickCash receipts to enter and apply receipts quickly. The
QuickCash window requires only minimal information for each receipt and
application. QuickCash also provides an extra level of control for entering high
volume receipts because it does not immediately affect the customer's account
balance.
• When receipts and applications are entered in a QuickCash batch or imported using
AutoLockbox, Receivables stores the data in an interim table. Use the QuickCash
window to review receipts and ensure that application information is correct. After
reviewing a QuickCash batch for accuracy, run Post QuickCash to update the
customer account balances.
• Apply receipts to one or many transactions using QuickCash, use AutoCash rules,
place receipts on-account, or enter them as unidentified or unapplied. If the profile
option AR: Enable Cross Currency is enabled, receipts can also be applied to
transactions in different currencies. On running Post QuickCash, Receivables treats
QuickCash receipts like any other receipts wherein they can be reversed, reapplied
and any unapplied, unidentified, or on-account amounts can be applied.
 Receipts
Quick Cash Receipts
• QuickCash receipts must be batched. Receivables does not update the status,
applied, on account, unapplied, and unidentified fields for the QuickCash batch until
it is saved.
• Receivables automatically assigns the receipt a status of Unidentified if the
customer for a receipt is not identified.
• Miscellaneous receipts cannot be added to a QuickCash batch.
 Receipts
Manual Receipts versus QuickCash Receipts
Manual Receipts QuickCash Receipts
Can apply receipts using the Can only apply receipts using
Applications or Mass Apply windows QuickCash or AutoCash Rules
window

Can post receipts information after Can only post receipts after running
applying receipts the Post QuickCash program

Can enter GL Date and Deposit Date at Can enter GL Date and Deposit Date
batch level and change dates at at batch level, but cannot change
receipt level dates at receipt level

Can create adjustments and Cannot create adjustments or

chargebacks for debit items with chargebacks until after receipts are
applied receipts posted
 Receipts
Applying QuickCash Receipts
Select invoices Run Post
Data entry
for application QuickCash

Batch Updates
receipts Review balances
 Receipts
Entering QuickCash Receipts
• Enter batch-level information which can default to the receipt
• Enter receipt information such as receipt number, receipt date, currency, customer
name or number, and amount for each receipt in the batch
• Enter the number of the invoice to which to apply the receipt or select one of these
application types:
– AutoCash Rule
– Multiple
– On-Account
– Unapplied
– Unidentified
 Receipts
QuickCash Receipt Applications Types
Auto Cash Rule: Apply receipts to this customer's transactions using AutoCash Rule
Set defined for this customer's profile class. If this customer's profile class does not
have an AutoCash rule Set assigned to it, Receivables uses the AutoCash Rule Set
defined in the System Options window.
Single: Apply this receipt to a single installment (Transaction). If this option is
selected, the transaction number to which to apply this receipt must be entered.
Multiple: Apply this receipt to multiple transactions or to multiple installments. Specify
the transactions and installments to which to apply this receipt in the Applications
window.
On-Account: Apply this receipt to a customer's account, but not to a specific
transaction.
Unapplied: Mark this amount as Unapplied if this receipt is not applied to any
transactions.
Unidentified: Mark this amount as Unidentified if this receipt is not associated with a
customer.
 Receipts
AutoCash Rule Set
AutoCash Rules determine how a QuickCash receipt is applied to open debit items.
Receivables uses the customer open balance along with the AutoCash rules to
determine how to apply receipts and whether to allow partial payments to be applied
to the customer’s open items. If Receivables is not able to apply or fully apply a
receipt, the remaining amount can be left as Unapplied or On-Account.
To determine which AutoCash Rule Set to use when applying receipts, the following
hierarchy is used, stopping when one is found:
• Customer site
• Customer profile class
• System Options window
Receivables provides five AutoCash rules that can be used to create AutoCash rule
sets. When AutoCash rule sets are defined, the rules to use and the sequence of
these rules are specified.
 Receipts
AutoCash Rule Set
When Post QuickCash is run to apply customer receipts, Receivables tries to use
each AutoCash rule within an AutoCash rule set. If the first rule in the set does not find
a match, Receivables uses the next rule in the sequence, and so on until it can apply
the receipt.
Following are the AutoCash rules that can be used:
• Match Payment with Invoice
• Clear the Account
• Clear Past Due Invoices
• Clear Past Due Invoices Grouped by Payment Term
• Apply to the Oldest Invoice First
 Receipts
AutoCash Rules
Match Payment with Invoice – When using this rule, Receivables can only apply the
receipt to a single invoice, debit memo, or chargeback if the receipt amount matches
the amount of the debit item.
If more than one debit item has an open amount that matches the receipt amount,
Receivables applies the receipt to the item with the earliest due date.
If more than one debit item exists with the same amount and due date,
Receivables applies to the item with the lowest payment schedule id number, an
internal, system-generated number.

Clear the Account – When using this rule, Receivables can only apply the receipt if
the receipt amount matches the customer open balance. Receivables includes all
open debit and credit items when calculating the customer open balance. Open credit
items include credit memos, on–account credits, and on–account and unapplied cash.
 Receipts
AutoCash Rules
Clear Past Due Invoices – When using this rule, Receivables can only apply a
receipt if the receipt amount matches the customer past due account balance.
Receivables includes all open past due debit and credit items when calculating the
customer past due account balance.
A debit item is considered past due if the invoice due date is earlier than or equal to
the receipt date of the receipt being applied to this invoice.
For unapplied and on–account cash, Receivables uses the receipt date
For credit memos and on–account credits Receivables uses the credit memo date
to determine whether to include these amounts in the customer’s account balance.

Clear Past Due Invoices Grouped by Payment Term – When using this rule,
Receivables can only apply a receipt if the receipt amount matches the sum of the
customer credit memos and past due invoices. This rule is similar to the Clear Past
Due Invoices rule, but it first groups past due invoices by their payment term, and then
uses the oldest transaction due date within the group as the group due date.
 Receipts
AutoCash Rules (Contd…)
Apply to the Oldest Invoice First – When using this rule, Receivables applies
receipts to the customer debit and credit items starting with the item having the oldest
due date. Receivables uses the values entered for the open balance calculation to
determine the customer’s oldest outstanding item.
 Receipts
Receipt Batches – Manual Quick
The receipt class determines the
processing steps for this receipt.
Choose a Batch Type of
Manual Quick.

Enter the Batch,

GL, and Deposit
Dates for this batch

Enter the total number and

amount of receipts that you
want to add to this batch in the Enter a unique Batch Name. If
Control Count and Control Automatic Batch Numbering for the
Amount fields. batch source you entered is Yes,
Receivables assigns a batch name
when you save.

To add receipts to this

(N) ReceiptsÆ Receipt Batches batch, choose Receipts.
 Receipts
Receipt Batches – Manual Quick
Enter the Net Amount of this receipt
If bank charges apply, enter the
Enter the Receipt Number, amount in the Bank Charges field.
Receipt Date, and GL Date. Receivables calculates the total
amount as the sum of the net
amount plus the bank charges.

Specify how to apply the receipt by

Enter the Payment Method and
choosing the Application Type. (If the
bank if they did not default from the
Application Type chosen is Single,
batch information, or if the receipt
enter a transaction number or select
currency is changed.
one from the list of values.)
Enter the Customer Name, Number, and Bill To
Location for this receipt. Receivables enters this
customer's primary Bill-To location (if one
exists). If the system option Require Billing
Location for Receipts is set to Yes, enter a Bill-
To Location.

(N) ReceiptsÆ Receipt Batches

 Receipts
Chargebacks
• Use chargebacks to create a new debit item when closing an existing debit item.
• Reduces the balance of the invoice to zero and creates an automatic adjustment
• Creates a new debit item for the balance of the old debit item with Chargeback
transaction type
• Due date for the chargeback is controlled by the Chargeback:Due Date Controls
system option
• Shifting due dates affect the finance charge calculations and the aging of the
outstanding amount
• Chargebacks have to be automatically numbered
 Receipts
Creating Chargebacks

(N) ReceiptsÆ ReceiptsÆ ApplicationsÆ Chargebacks

 Receipts
Adjustments
• Create adjustments to increase or decrease the balance due for an invoice, debit
memo, chargeback, or commitment.
• If you create an adjustment during a receipt application (for example, to write off a
small remaining amount) and then unapply the application later, Receivables
reverses the adjustment and assigns it a status of 'Adjustment Reversal.'
 Receipts
Creating Adjustments
Choose the Type of adjustment. If the
type specified is 'Invoice' the amount
of adjustment should be at least
enough to close the item being
adjusted. If the adjustment type is
‘Line’ the balance due for the
transaction by the amount that is
updated

Enter an Activity Name.

The activity name provides
Enter the Adjustment
the default GL account
Date. The default is
the current date.

Enter the GL Date for this

Enter the Amount of this adjustment. The default is
adjustment. Defaults if the the later of either the
adjustment type specified is transaction GL date or the
‘invoice’ current date.

(N) ReceiptsÆ ReceiptsÆ ApplicationsÆ Adjustments

 Receipts
Reversing Receipts
¾ Reverse a receipt when a customer stops payment on a receipt or if a receipt comes
from an account with non-sufficient funds.
¾ Reverse a receipt to re-enter and reapply it in Receivables.
¾ Reverse both standard, invoice-related receipts and non-invoice related (miscellaneous)
receipts.
¾ Reverse an Automatic Receipt only if its status is Approved.
¾ After a receipt is reversed, the receipt's attributes cannot be updated.
¾ The following types of receipts can be reversed:
• Invoice-related receipts
• Non-invoice related (miscellaneous) receipts
• Credit Card refund (negative miscellaneous) receipts
• Automatic receipts with a status of Approved
• Receipts that are part of a batch (use the Receipt Batches window to re-enter a
receipt in a batch)
 Receipts
Reversing Receipts
Create two types of reversals:
Standard Reversal
• Receivables automatically creates reversal journal entries for GL and reopens all of
the debit and credit items that were closed with the original receipt.
• Create a standard reversal for a transaction related to a chargeback if there is no
activity against the chargeback and the chargeback has not been posted to the
general ledger.
• If the chargeback has been posted to the general ledger, create a debit memo
reversal.
• On creating a standard reversal for a receipt that has been applied, Receivables
reverses any adjustments or chargebacks created, as long as these adjustments
are not posted to GL.
 Receipts
Reversing Receipts
Debit Memo Reversal
¾ Receivables does not update any of the receipt activity associated with the original
receipt. The new debit memo reversal is actually a new receivable that replaces the
item closed by the original receipt. Receivables requires that a debit memo reversal
be created if:
• The receipt reversed has previously been applied to a chargeback and this
chargeback has had any activity against it (for example, another receipt, credit
memo, or adjustment)
• The chargeback or adjustment was posted to GL
¾ When a debit memo is created for a receipt reversal, Receivables creates a line on
the debit memo that displays the original receipt number associated with the debit
memo.
¾ In addition, when the reversal is saved, Receivables assigns a unique transaction
number to the new debit memo.
 Receipts
Receipts – Standard Reversal Enter the date of this receipt reversal and the
date to post this reversal to GL. The default
Enter the category for this reversal. Use the for the reversal and GL dates is the current
Reverse Payment category when the receipt has date. The reversal date must be on or after
been incorrectly entered and has to be re– the deposit date of the original receipt, and
entered. Oracle Cash Management does not the reversal GL Date cannot be before the
reconcile receipts that are reversed with this receipt GL Date or the reversal date.
category, because this category is reserved for
entry errors only.

Enter a reason
for this receipt
reversal.

Choose the Reverse button.

Receivables generates a number for
this reversal.
(N) ReceiptsÆ ReceiptsÆ Reverse
 Receipts
Receipts – Debit Memo Reversal Enter the date of this receipt reversal and the
date to post this reversal to GL. The default
for the reversal and GL dates is the current
date. The reversal date must be on or after
the deposit date of the original receipt, and
the reversal GL Date cannot be before the
receipt GL Date or the reversal date.

Enter the category for this reversal. Use the

Reverse Payment category when the receipt has
been incorrectly entered and has to be re–
Enter a reason for entered. Oracle Cash Management does not
this receipt reversal. reconcile receipts that are reversed with this
category, because this category is reserved for
entry errors only.

Check the Debit

Memo Reversal
check box

The debit memo transaction

Enter a transaction type for
type provides the default
this reversal in the Type field.
value for this field

Choose the
(N) ReceiptsÆ ReceiptsÆ Reverse Reverse button.
 Receipts
Reapplying Receipts
¾ Reapply receipts previously applied in error before or after posting these items to
GL. Both automatic and manually entered receipts can be reapplied.
¾ When a receipt is reapplied, first 'unapply' (uncheck the apply check box) the
original receipt applications; this reopens each transaction that was previously
closed by the receipt.
¾ However, a receipt that has adjustments associated with it cannot be unapplied
unless the transaction is first readjusted to its original amount.
¾ In addition, a transaction cannot be unapplied if there is a chargeback against it
and the chargeback has any activities against it (for example, another receipt or
credit memo).
 Receipts
Cross Currency Receipts
When a customer remits payment
for an invoice, debit memo, or
chargeback, the receipt is usually in Invoice
Invoice Receipt
Receipt
the same currency as the currency
currency currency
currency
transaction. However, there may be BEF
BEF EUR
EUR
times when the customer remits
payment in a currency that is
different than the currency of the
open debit item. For these
occasions, Receivables creates
Manual,
Manual,
cross currency receipt
AutoLockbox,
AutoLockbox,
applications to fully or partially
or
or QuickCash
QuickCash
process the payment.
 Receipts
Cross Currency Receipts
Calculating the Foreign Currency Exchange Gain or Loss

¾ When a receipt is applied to a transaction that is in a different currency,

Receivables first determines the transaction and the receipt amounts in the
functional currency.
¾ Receivables then compares these amounts to determine the foreign exchange gain
or loss for this application.
• If the result is positive, a foreign currency exchange gain is incurred for this
application
• If the result is negative, a foreign exchange loss is incurred.

¾ Receivables calculates the foreign exchange gain or loss using the following
formula:
Receipt Amount (as of the receipt date) - Invoice Amount (as of the invoice date)
= Foreign Exchange Gain or <Loss>
 Receipts
Setting Up Cross Currency Receipts
Define Cross Currency System Profile Option – To be able to apply a receipt in one currency
to one or more transactions in a different currency, set the system profile option AR: Enable
Cross Currency to Yes. Define this profile option at the Site, Application, or User level.
Define Cross Currency Rounding Account – Define a Cross Currency Rounding Account in
the System Options window. Receivables uses this account to record any rounding error
amounts created during a cross currency receipt application for currencies that have a fixed
rate relationship.
Define a Suspense Account in Oracle General Ledger – To create entries so that each
journal entry balances in the entered currency. Enabling of suspense accounting for the set of
books to apply cross currency receipts in Receivables is not necessary. Only definition of a
suspense account for journal entries created by cross currency receipt applications is
required.
For each of these entries, Oracle General Ledger does the following:
• Ignores the Out of Balance Errors: All cross currency receipt applications will be out of
balance, since the currency of the receipt is not the same as that of the transaction.
• Creates Balancing Lines: GL will look to the suspense account defined in the Suspense
Accounts window and create a line to balance the journal entry. The Source of the
Suspense Account should be 'Receivables' and Category 'Cross Currency.'
 Receipts
Setting Up Cross Currency Receipts (Contd…)
Define Journals: Display Inverse Rate Profile Option – The profile option Journals:
Display Inverse Rate lets you determine how you enter and display conversion rates in the
Exchange Rate window. When you create a cross currency application, the field 'Cross
Currency Rate' in the Applications window displays a value independent of this setting. This
field will always display a value in accordance with the following:
Transaction Amount * Cross Currency Rate = Receipt Amount

Cross Currency Exchange Gain/Loss Report

Review detailed information about cross currency settlements including:
• The transaction number and currency
• The amount applied to each transaction in both the transaction and your base (functional)
currency
• The amount of the crosss currency receipt allocated to the transaction
• The cross currency rate used for each application
• The foreign exchange gain or loss (FXGL) for each application
• Information necessary to compare the FXGL you would have realized if you had used the
cross currency rate maintained in your General Ledger
AutoLockbox
 AutoLockbox
Overview of AutoLockbox
• Process where customers mail payments to a post office box near the remittance bank and
the bank deposits the payments in the company’s account at regular intervals
• Bank provides the company with computer files detailing about the receipts and their
application
• Receivables uses AutoLockbox to import details about receipts directly into the system

Benefits of AutoLockbox
• Eliminates manual data entry
• Streamlines the application of receipts to outstanding transactions
• Effectively manages cash flow by reducing turnover for converting checks into cash
• Apply receipts to outstanding invoices
• Import historical receipt data
• Autolockbox reports, such as the Post Quikcash Execution Report, are a good tool to
reconcile autolockbox receipts with the bank transmission reports
 AutoLockbox
Lockbox Cycle
Import data file
into AutoLockbox
Collect payment, tables
Send payment update account,
to lockbox and create data file

Post Run AutoLockbox

QuickCash and validate data

Transfer data to Correct AutoLockbox

QuickCash table validation errors
 AutoLockbox
Prerequisites for AutoLockbox
¾ Set up agreements with banks
¾ Define lockboxes in Oracle Receivables
¾ Define AutoLockbox transmission formats
¾ Define receipt classes and payment methods
¾ Test AutoLockbox transmission with bank
 AutoLockbox
Entering AutoLockbox Receipts
Send payment Bank collects
to lockbox payment, updates
account, and
creates data file

Import data file

into table
Post
QuickCash

Run lockbox
interface

Transfer data to
QuickCash table
 AutoLockbox
Importing Data Files Into Receivables

Import Validate Post

Import data file Run lockbox Transfer data to Post

into table interface and QuickCash table QuickCash
validate data
 AutoLockbox
Importing Receipts
• Data is imported into interface tables
• Imported data does not affect accounts receivables balances
• Import automatically generates the Lockbox Execution Import report
• Use report to check the imported data

Validating Receipts
• Ensures that each receipt complies with application and customer requirements
• Customer must have a primary billing location
• Bank can provide a MICR or a customer number to identify customer
• Validated data is transferred to QuickCash tables
• Transfer does not affect accounts receivables amounts
• Receivables can use AutoAssociate or a billing address to identify customer
• Use the Lockbox Execution Import report to review the validation
 AutoLockbox
Post QuickCash
• Data is transferred from QuickCash tables to Receivables tables
• Posting updates the account balances to reflect the imported receipts
• View and update receipts in the Receipts window

AutoLockbox Receipts Matching

• Receivables applies the receipt using:
• Transaction number
• Sales order number
• Purchase order number
• Consolidated bill number
• User-defined number
 AutoLockbox
Setting Up AutoLockboxes
• Set up bank information
– Arrange for lockbox services with bank
– Notify customer of lockbox address
• Set up receipts information
– Define receipt classes and payment methods
• Set up lockbox information
– Define lockbox number, bank account, and contact information
– Define attributes of AutoLockbox receipts
• Translate bank transmission format for Receivables.
 AutoLockbox
Running AutoLockbox
To import and apply receipts using AutoLockbox, run each step individually or run
them as a group.

Define
Define Define
Define Define
Define
transmission
transmission validation
validation posting
posting
information
information information
information information
information

••Transmission
TransmissionID
ID ••Lockbox
Lockboxnumber
number ••Post
Postpartial
partialamounts
amounts
as unapplied?
as unapplied?
••Data
Datafile
file ••Report
Reportformat
format
••Control
Controlfile
file ••GL
GLdate
date
••Transmission
Transmission ••Pay
Payunrelated
unrelated
format
format invoices?
invoices?
 AutoLockbox
Running AutoLockbox Enter a new Transmission
Enter the bank file's Data File, Control Name. If an existing lockbox
File, and Transmission Format transmission is being
Check to import information. If data is being re-imported, resubmitted, select a name
a new bank file. the default is the transmission format from the list of values.
specified in the initial import step. Either
accept this value or override it.

To import a new bank file

into Receivables, check Enter the Lockbox Number to validate. If
the Submit Import check this is not a new transmission, the default
box. lockbox number is the number used for
the original step of this transmission. A
lockbox number must be entered if
Check to validate or Submit Validation is Yes and the lockbox
revalidate imported data number is not specified in the bank file.
and create QuickCash
receipt batches. Check to transfer only the
lockbox batches in which all
records pass the validation step
Enter the date to post the to the QuickCash tables
receipt and batch records
in this lockbox transmission
to your general ledger Check to apply receipts to
transactions belonging to
Enter the unrelated customers.
Report Format. Check to import receipts that could not be fully
applied into the interface tables. If Allow Partial
Applications of Receipts is not checked, receipts
Check to apply receipts in that Lockbox cannot fully apply will remain in the
this transmission and AR_PAYMENTS_INTERFACE_ALL table.
update customer receivable
balance
(N) InterfacesÆ Lockbox
Automatic Receipts
 Automatic Receipts
Automatic Receipts Process

Create
Create Approve
Approve Format
Format
automatic
automatic automatic
automatic automatic
automatic Optional
receipts
receipts receipts
receipts receipts
receipts

Eligible Customer
invoices balance
is updated Remit
Remit
receipts
receipts

Receives payment from customer

Customer
Customer
Sends receipts to customer AR
AR Bank
Bank
Bank
Bank
 Automatic Receipts
Automatic Receipts Overview
• Use automatic receipts to process transactions such as direct debits, factored
receivables, and bills of exchange (BOE) through customer’s banks
• Payments can be directly transferred from a customer’s bank on the due date
• Collections are assured and bad debits are reduced
• Cash flow can be managed more effectively when fund transfers are scheduled in
advance
 Automatic Receipts
Automatic Receipts Definitions
Term Definition
Customer bank Customer funds are automatically transferred from
this bank.

Remittance bank Payments are automatically transferred to this bank.

Automatic receipt Agreement that enables the transfer of funds from the
customer’s bank to your remittance bank.

Factoring Short-term financing method that uses accounts

receivable as collateral. Usually involves an
intermediary bank or factor.
Short-term debt When advance payment is received from a bank or
factor for a factored receivable, a short-term debt is
created.
Risk elimination After the customer has made payment on the amount
receivable, the risk represented by the short-term
debt can be eliminated.
 Automatic Receipts
Prerequisites for Automatic Receipts

Agreement
Agreement
with
with customer
customer

Setup
Setup and
and Create
Create aa Assign
Assign payment
payment
assign
assign receipt
receipt class
class and
and method
method to
to
customer
customer and
and payment
payment method
method aa customer
customer
remittance
remittance
bank
bank accounts
accounts
Create
Create Create
Create an an
automatic
automatic invoice
invoice flagged
flagged
receipts
receipts for
for this
this payment
payment
 Automatic Receipts
Flagging Transactions for Automatic Receipts
• To flag a debit item for automatic receipt:
– Enter information on paying customer
– Specify a payment method and receipt class with an Automatic Creation
method
• Customer bank account currency and invoice currency must be the same
• If automatic receipts have different currencies, set the banks’ “Multiple Currency
Receipts” flag to Yes
• Automatic Receipts program selects all completed transactions for that customer
and creates receipts
 Automatic Receipts
Flagging Transactions for Automatic Receipts
The
Thecustomer
customerassociated
associatedwith
with
the
the customer bankaccount
customer bank account
assigned
assignedtotothetheinvoice.
invoice.This
This
could
couldbe bedifferent
differentfrom
fromthe
the
billing
billingcustomer
customerififCustomer
Customer
relationships
relationshipsexist
exist

The
Thepayment
paymentmethod
method
assigned
assignedtotothe
the
transaction.
transaction.

The
Thebank
bank
The account
accountnumber.
number.
Thebank
banktotowhich
whichthe
the
Payment
PaymentMethod
Methodisis
assigned
assignedtoto

(N) Transactions Æ TransactionsÆ Paying Customer (Tab)

 Automatic Receipts
Automatic Receipts Batch Process

Specify
Specify Specify
Specify Select
Select
payment
payment currency
currency an
an action
action
method
method information
information

• Receipt class • Currency • Create

• Payment method • Exchange rate • Approve
• Format
 Automatic Receipts
Setting the Profile Option

Set the AR: Automatic Receipt Creation Authority profile option so that users can
Create, Approve, or Format automatic receipts in one or more steps
• Create (3 steps): Enforces maximum control for the organization
• Format (2 steps): Appropriate for companies with non-standard collections
procedures
• Approve (1 step): Fastest and simplest. Used when payments are collected in
a recurring, standardized fashion.
 Automatic Receipts
Payment Method
Method Description
One per customer Creates one payment per customer

One per customer and due Creates several payments for a customer if a
date customer’s invoice has several due dates.

One per site Creates one per payment site.

One per invoice Creates one payment per invoice

One per site and due date Creates one payment per customer site and due
date.
 Automatic Receipts
Selecting an Action
Depending on the authority level (determined by the AR: Automatic Receipt Creation
Authority profile option), select one or more receipt actions
• Create: Select the invoices to include in automatic receipts.
• Approve: Update, delete, and approve the selected receipts.
• Format: (Optional step)
• Format automatic receipt batches if the receipt batches are to be sent to
customers for notification or confirmation before the receipts are remitted to
the bank (optional step)
• Automatic receipt batches can be formatted an unlimited number of times
• Use the Format Automatic Receipts report to view the formatted receipt
output
• Use the Automatic Print Program field of the Receipt Classes window to
select the receipt format
 Automatic Receipts
Confirming Automatic Receipts
• When a customer confirms a receipt, the customer indicates that the receipt was reviewed
and that the payment information is correct
• Set the Require Confirmation option to Yes to allow a customer to confirm a receipt
• Bill of Exchange (BOE) is the only type of receipt that requires confirmation
• When a receipt that requires confirmation is confirmed, Receivables automatically closes the
invoice for which it was created
• A receipt cannot be updated after it has been confirmed.
• Use remittance batches to initiate the transfer of funds for receipts after confirmation
Recording Customer Confirmations
• To flag automatic receipts for confirmation, select the Require Confirmation check box for the
receipt class that is assigned to the receipt’s payment method
• Record receipt confirmations individually or in batches
• After a confirmation is recorded, Receivables updates the customer balance and invoice
balance
• Use the Automatic Receipts Awaiting Confirmation report to view a list of the automatic
receipts waiting for confirmation
 Automatic Receipts
Updating Automatic Receipts
• Only receipts with status as Approved can be updated, Receipts with status of
Confirmed cannot be updated.
• The following receipt information can be updated:
– Invoice application amounts
– Exchange rate
– Maturity date
– Remittance bank
– Customer bank information
• Maturity date and bank information can be changed up to the time receipts are
selected for remittance
 Automatic Receipts
Automatic Receipt Statuses
Automatic Receipts have a status that indicates whether they are complete. Valid
statuses include:
• Started Creation
• Creation Completed
• Started Approval
• Approval Completed
• Started Format
• Format Completed
 Automatic Receipts
Creating Automatic Receipts
• Select invoices to include in the automatic receipt batch by entering a receipt class
with an Automatic creation method and specifying other selection criteria such as
currency, due dates, and range of customer names.
• The Create Automatic Receipts program picks up all complete transactions that
meet this criteria and create receipts to close out these transactions.
• In addition to the criteria specified, the customer profile is also checked to
determine whether a transaction should be included in an automatic receipt batch
and whether to include invoices in dispute.
• The number of Lead Days entered for the payment method is used to determine
when an invoice is eligible for the creation of automatic receipts.
• The lead days is the number of days before the invoice due date that this invoice
can be selected for automatic receipt.
• A batch of automatic receipts can only have one payment method, thus one lead
days value. Receivables compares the invoice due date and lead days with the
batch date.
 Automatic Receipts
Creating Automatic Receipts
• The GL date is used to determine the accounting period in which the automatic
receipts will post. A GL date cannot be entered for a new batch if the receipt class
requires confirmation as a separate step because:
• Accounting entries are not created when receipts are approved, but not
confirmed.
• The receipt amount is validated to determine if it is more than or equal to the
Minimum Receipt Amount specified for the remittance bank and customer
profile class.
• Minimum receipt amounts for remittance bank accounts can be assigned in the
Receipt Classes window and for Customers in the Customer Profile Classes or
Customer windows.
• If the total of the transactions does not match the larger of the two minimum receipt
amounts, no receipts will be created. These transactions will appear in the
Exception section of the Create Automatic Receipt Execution report.
 Automatic Receipts
Creating Automatic Receipts
Enter the Currency for this
batch. For a foreign currency,
The receipt class enter exchange rate
determines the processing information for this batch.
Choose a Batch steps for this receipt.
Type of Automatic.

Enter the Batch and

GL Dates for this
batch
Select a Payment Method.
Only Payment Methods
assigned to Automatic Receipt
Classes are displayed

In the Media Reference field,

enter the tape or floppy disk on
to which you are going to create
your batch of automatic receipts

Choose Create.

(N) ReceiptsÆ Receipt BatchesÆ Automatic Receipts

 Automatic Receipts
Creating Automatic Receipts
Enter selection criteria to create Automatic
Receipts for specific transactions or customers.
Enter the low and high values of the
transaction Due Dates, Transaction and
Document Numbers, Customer Names, or
Customer Numbers to create Automatic
Receipts for those transactions.

Choose OK. Receivables

generates a Batch Name by
using the next number after the
Depending upon the Profile Option value in the Last Number field
set for the user, select the actions of the receipt source
that the Automatic Receipts ’AUTOMATIC RECEIPTS.’
Program must perform.

(N) ReceiptsÆ Receipt BatchesÆ Automatic ReceiptsÆ Create

 Automatic Receipts
Deleting an Automatic Receipts Batch

Delete Record
button on the Menu

To delete a batch of
automatic receipts, the
batch status must be
either Started Creation or
Creation Completed.

(N) ReceiptsÆ Receipt Batches

 Automatic Receipts
Approving Automatic Receipts
¾ Approve a batch of automatic receipts to verify that only the receipts needed be
included in the batch.
¾ Automatic receipt batched can be updated before approving it as long as there are
no concurrent processes for creating or approving this batch that are either running
or pending.
¾ Update the bank name, bank branch, and customer bank account associated with
each of the transactions in the batch.
¾ Update exchange rate information and exclude transactions from the batch by
deselecting them. Once deselected, these transactions will be available for
selection the next time the automatic receipt creation program is submitted.
¾ Upon approval:
• Automatic Receipts that do not require confirmation close the invoices they are
paying.
• Receipts that require confirmation close invoices when they are confirmed.
¾ To approve a batch, its status must be Creation Completed or Started Approval.
 Automatic Receipts
Approving Automatic Receipts

Choose Approve. Receivables

displays the Request ID of the
concurrent request for approving
this batch of automatic receipts
and assigns a Process Status of
Started Approval.

(N) ReceiptsÆ Receipt Batches

 Automatic Receipts
Formatting Automatic Receipts
¾ Format automatic receipt batches onto paper to send to the customer for
confirmation or notification before remitting them to the bank.
¾ Send these documents to customers to confirm Bills of Exchange or to notify
customers of direct debits being created.
¾ There is no limit to the amount of times a batch of automatic receipts can be
formatted.
¾ When a batch of automatic receipts is formatted, Receivables creates the Format
Automatic Receipts report. This report provides details about the batches that have
been formatted.
¾ To format a batch, it must have a Process Status of Approval Completed.
 Automatic Receipts
Formatting Automatic Receipts

Choose Format.
Receivables displays the
Request ID of the concurrent
request and assigns a
Process Status of Started
Format.

(N) ReceiptsÆ Receipt Batches

 Automatic Receipts
Confirming Automatic Receipts
¾ Confirm automatic receipt batches to indicate that the customer has reviewed each
receipt and agreed that the payment information is correct.
¾ Depending on the agreement with the customer, certain types of automatic receipts
require confirmation from the customer before they can be considered payments
and remitted to the bank.
¾ Once the receipts have been approved, make any necessary changes, then
confirm the receipts. Receipts that require confirmation automatically close the
invoices for which they were created when they are confirmed.
¾ After confirming the batch, create a remittance batch to initiate the transfer of funds
for each receipt.
¾ To indicate that a receipt requires confirmation, assign a receipt class that has the
Require Confirmation option set to Yes.
¾ Receipts that do not require confirmation are created as confirmed.
 Automatic Receipts
Confirming Automatic Receipts
¾ If the receipt class assigned to an automatic receipt or automatic receipt batch
requires confirmation, the receipt or batch must be confirmed once it has been
approved. If the receipt class does not require confirmation, Receivables
automatically confirms all of the receipts within the batch when the batch is
approved.
¾ An automatic receipt cannot be “Unconfirmed” after confirmation. If a receipt is
confirmed in error, it needs to be reversed and then recreated.
¾ Once an automatic receipt is confirmed, the transactions closed by this receipt can
no longer be selected for automatic receipt. However, transactions that have a
remaining balance due can be included in a subsequent automatic receipt batch.
 Automatic Receipts
Accounting for Automatic Receipts

1 Enter
Enterinvoices
invoices
Dr.
Dr.Accounts
Cr.
Accountsreceivable
Revenue
receivable
account
Cr. Revenue account

Create Dr.
Create
automatic Dr.Confirmation
Confirmationaccount
account
automaticreceipts
receipts Cr. Accounts receivable
Cr. Accounts receivable
2
Create
Create
automatic
automaticreceipts Dr.
that
receipts
require Confirm
Confirm Dr.Confirmation
Confirmationaccount
account
that require Cr. Accounts receivable
Cr. Accounts receivable
confirmation
confirmation
Remitting Receipts
 Remitting Receipts
Overview of Remittances
• A remittance is a receipt that can be deposited in a bank. It is similar to a deposit
slip.
• Use remittances to initiate the transfer of payments from customers
• Control the remittance process by having different people create, approve, and
format remittances in separate steps, or by having one person remit receipts in a
single step.
• Remit several receipts at the same time by creating a remittance batch.
 Remitting Receipts
Remittance Process

Create
Create Approve
Approve Format
Format
remittance
remittance remittance
remittance remittance
remittance
batch
batch batch
batch batch
batch

Clear
Clear Submit
Submitremittances
remittances
remittances
remittances to
tobank
bank
 Remitting Receipts
Remitting and Clearing Receipts
Submit
remittance

Reconcile remittances
Oracle Receivables Bank and receipts

Clear receipts Bank sends Oracle Cash

statement Management
 Remitting Receipts
Remittance Batch Versus Receipt Batch

Remittance Batch Receipt Batch

Group of receipts remitted to the Group of receipts entered together
bank together

Includes receipts for the same bank Can include receipts for different
account bank accounts
 Remitting Receipts
Remittances
Receivables supports two types of remittances:
• Standard Remittances:
• For automatic receipts, remit receipts to the bank so the bank can transfer
funds from the customer's account to the company’s account on the receipt
maturity date.
• For manual receipts, the bank credits the company’s account when the
customer's check clears.
• Factored Remittances:
• Remit receipts to the bank so that the bank can lend money against the
receipts either before the maturity date (for automatic receipts) or before
clearing (for manual receipts).
• After clearing factored receipts, Receivables creates a short term debt for the
borrowed amount to track the liability in case of customer default.
 Remitting Receipts
Factoring Remittances
¾ Factoring is a process in which the accounts receivable of a company is sold to the
bank in return for cash.
¾ To factor receipts, choose a remittance method of 'Factoring' or 'Standard and
Factoring.' Choose Standard and Factoring receipts created with this receipt class are
not always factored.
¾ Whether the receipts should be factored is specified when a remittance batch is
created.
¾ If a Remittance Method of Factored is chosen, all receipts that have receipt classes with
Remittance Method set to either 'Factoring' or 'Standard and Factoring' and that meet
the selection criteria will be included in the remittance batch.
¾ Factored remittance batches are created the same way as a standard remittance batch.
¾ Track risk of customer default when a receipt is factored with the bank. In this case,
Receivables creates a short term debt for the risk upon clearance of the receipt.
¾ Risk is displayed on the Bank Risk report and the different aging reports.
¾ Oracle Order Management uses this value during credit checking.
¾ Run the Automatic Clearing program to eliminate risk on or after the maturity date of
your automatic receipts.
 Remitting Receipts
Creating Remittance Batches
• Remittance batches group receipts for deposit or transfer of funds
• Create one batch per bank account or per clearing institution
• Receipts are included in the batch by maturity date, followed by amount
• Specify an amount range the batch. If the total amount of receipts in the batch does
not fall within the specified amount range, then Oracle Receivables will not create
the batch.
• Receipts must have a status of either Approved or Confirmed to be included in a
remittance batch
 Remitting Receipts
Creating Remittance Batches
Specify the following information for each remittance batch:

• Currency
• Batch and GL dates
• Payment method
• Receipt class
• Remittance bank
• Remittance method
• Remittance bank account
• Receipt selection criteria

Use Maturity Date as an optional selection criteria to reduce risk for factored
remittances
 Remitting Receipts
Creating Remittance Batches Choose a Remittance Method. Choose Standard
to remit this batch of receipts on the maturity date.
Choose Factoring to borrow money against the
receipts before the maturity date. Receivables only
selects receipts using the remittance method you
specify here when creating this remittance batch.

Enter the Receipt Class,

Payment Method, and
Remittance Bank information
for this batch
Enter the remittance
bank account details

To create this remittance

To create this batch manually, choose
remittance batch Manual Create.
automatically, choose
Auto Create.

(N) ReceiptsÆ Remittances

 Remitting Receipts
Creating Remittance Batches – Manual Create
Enter selection criteria for creating this
remittance batch (optional).
Enter the low and high values of the
Maturity and Receipt Dates, Receipt
and Document Numbers, and
Customer Names or Numbers to
select only those receipts for this
batch. Leave a field blank to not limit
the search to transactions matching
that criteria.
Both active and inactive customers
can be used as search criteria.
Receivables selects all confirmed
automatic receipts and manual
receipts that match the criteria
specified and have a receipt class with
Require Remittance set to Yes.
Receivables keeps a running total of
the total count and amount of the
remittance batch to ensure that it does
not exceed a certain value.

(N) ReceiptsÆ Remittances

 Remitting Receipts
Creating Remittance Batches – Auto Create
Enter selection criteria for creating this
remittance batch (optional).
Enter the low and high values of the
Maturity and Receipt Dates, Receipt
and Document Numbers, and Customer
Names or Numbers to select only those
receipts for this batch. Leave a field
blank to not limit the search to
transactions matching that criteria.
Both active and inactive customers can
be used as search criteria.
Receivables selects all confirmed
automatic receipts and manual receipts
that match the criteria specified and
have a receipt class with Require
Remittance set to Yes.
Receivables keeps a running total of the
total count and amount of the
remittance batch to ensure that it does
not exceed a certain value.

(N) ReceiptsÆ Remittances

 Remitting Receipts
Accounting Treatment of Remittances
1 Enter
Enterinvoices
invoices
Dr.
Dr.Accounts
Cr.
Accountsreceivable
Revenue
receivable
account
Cr. Revenue account
Create
Createremittances
remittances Standard
Standardremittance:
remittance:
Dr.
Dr. Remittanceaccount
Remittance account
Cr.
Cr. Confirmationaccount
Confirmation
2 Approve
Approveremittances
remittances Factored remittance:
Factored remittance:
account
Dr.
Dr.Factoring
Factoringaccount
account
Cr.
Cr. Confirmationaccount
Confirmation account
Format
Formatremittances
remittances
Standard
Standardremittance:
remittance:
Dr. Cash
Dr. Cash
Dr.
Dr.Bank
Bankcharges
charges
Cr.
Cr. Remittanceaccount
Remittance
3 Clear
Clearbank
bankremittances
remittances Factored
account
remittance:
Factored remittance:
Dr.
Dr.Cash
Cash
Dr.
Dr. Bankcharges
Bank charges
Cr.
Cr. Short-termdebt
Short-term debt

Factored
FactoredRemittance:
Remittance:
4 Eliminate
Eliminaterisk
risk Dr.
Dr. Short-termdebt
Cr.
Short-term
Factoring
debt
account
Cr. Factoring account