1 Receivables Overview and Process

8/3/2019 1 Receivables Overview and Process

1/130

1 of 130Oracle Receivables

R12: Oracle Financials


2/130


3/130


Module Objectives

Order to Cash process overview

Receivables process overview

Managing Parties and Customer Accounts

Transactions Setup

Transactions Process

AutoInvoice

Receipts Setup Receipts Process

AutoLockbox


4/130


Bank

ReconciliationInvoice/Revenue

PickRelease

Book

Receipt

Enter

Receivables

Ship

Confirm

Order and Credit Management

AutoInvoice

Cash Management

Shipping Execution

Collections

CreditCheck

Order to Cash Process Overview


5/1305 of 130

Oracle Receivables

Order Lifecycle

Ordering:

Ordering

Scheduling Shipping

Collecting

AutoInvoice to Receivables

Invoicing / Revenue

Collection & Receipts

Accounting

Cash Management Transfer Accounting to GL via SLA


6/1306 of 130Oracle Receivables

Invoices

Inventory

SLA/GL

Cash

Management

Shipping

Order Management

Item

Information

Reserve

Demand

Receivables

CRMSuite

Customers

Pricing

OrdersCustomerMaster

Advanced Collections

Collections

Accounting Receipts

Payments OraclePayments

Order to Cash: Integration Overview



What is Oracle Receivables?

Helps in managing the

financial relationshipwith your customers

Create and trackInvoice Sales Ordersand AccountsReceivables



Oracle Receivables Overview

Transfer toGeneral Ledger

via SLA

CashManagement

Receipt

Receivables

Imported throughAutoInvoice

Manual CreationTransactions



Receivables Integration with Other Modules

Non-Oracle SystemsManufacturing Order Management

Loans

CRM

Service Contracts

Trade Management

Financials

Payables

Projects

Property Manager

Lease Management Subledger Accounting

E-Business Tax

Credit Management

Advanced Collections

General Ledger

Payments

Cash Management

iReceivables

Bill Presentment Architecture

Approvals Management

Technical

Workflow



Receivables Process

Transactions Review and

Correct Data

Print and Send

Invoices

Collect PaymentsEnter ReceiptsTransfer to G/L

via SLA

Create ProfileClasses

Enter

Customers

Manage CustomerCredit


12/13012 of 130

Oracle Receivables

What is a Customer?

A customer is anorganization or person with

whom you have a sellingrelationship.

This selling relationship canresult from the purchase ofproducts and services or

from the negotiation ofterms and conditions thatprovide the basis for futurepurchases.


13/13013 of 130

Oracle Receivables

Overview: Party Model

Party Model Tables

Customers setof pages

Party Interfacetables

Partymerge

PartyMaster

Receivables Order Management Projects CRM

One record to represent both a prospect and a customer Each application uses different features of the party model

Interact with the party model through the following:

Customers set of pages: Online entry and query of party and customer accountinformation.

Party interface table: Batch load of party information using the Import Batch toTCA Registry program.

Party and customer account merge: Merge parties and customer accounts. Thisfunctionality is used to correct party information and for business consolidation.


14/130


PARTY

SITE

P

ARTY

SITE

P

ARTY

SITE

Bill to

Ship to

Division Of

Bill to

Ship to

Bill to

Ship to

Account Account Account

Bill to, Ship to Bill to, Ship to Bill to, Ship to

Acct

Site

Acct

Site

Acct

Site

Selected Party level attributes Name Street address Parent/subsidiary relationships Industrial classifications DUNS number (D&B) External credit ratings Taxpayer ID

Selected Accountlevel attributes Payment terms Billing preferences Shipping preferences Internal credit rating

Party Model


15/130


Party Model

Party Sites: Allow multiple organizations or parties to do business at one location.

Party sites are global, but do not default under different operating units

Have flexible address formatting with seeded and custom formats

Customer Accounts:

Information held at the customer account level is about the businessrelationship. It is for items like payment terms and billing preferences.

The financial rollup point is an account. It tracks the monetary portion ofa partys purchases and payments.

The party model allows you to establish multiple relationships throughparty accounts with the same organization or person party.


16/130


Managing Parties

Managing parties includes these activities:

Create customer account profile classes.

Assign profile classes to customer accounts.

Create and maintain party information.

Define relationships between parties and between customer accounts(both reciprocal and non-reciprocal).

Merge parties and customer account information.

Review party and customer account information online and in reports.


17/130


Profile Classes

Customer Profiles are used to group customer accounts with similarcreditworthiness, business volume, payment cycles, and late chargepolicies.

For each profile class, you can define information such as: Credit limits

Payment terms Statement cycles Invoicing and discount information Amount limits for your late charges, dunning, and statements for each

currency in which you do business

Poor Credit

Cash on Delivery High Risk Credit Classification Monthly Statements

Excellent CreditGood Credit

Net 90 No Credit Check Quarterly Statements

Net 30 Semiannual Credit

Review Cycle

Monthly Statements


18/130


Updating Profile Classes

You can modify attributes in existing profile classes even after customeraccounts are assigned to them

There are three options after making a change to a profile class: Do not update existing profiles: Only the profiles of new customer accounts

created in the future will reflect the changes

Update all profiles: The attribute is updated in all customer accounts that use thisprofile.

Update all non-customized profiles: Profile classes set the default values initiallyassigned to individual customer account profiles. If an attribute in an individual partyprofile was customized to be different from its profile class, changes to the value of aprofile class attribute do not change the customized value of the attribute in theindividual customer account profile.


19/130


Profile Classes


20/130


Entering Party Information

Data Quality Management (DQM) is a powerful tool that allows you to: Prevent duplicate entries of the customer Perform advance searches with user-defined criteria

Entry Methods:

Import from Other Systems:

Customer Interface: Allows you to import and validate current or historicalcustomer information from other systems

Bulk Import: Allows you to bulk import parties from legacy systems and frompurchased sources to the TCA registry using the Import Batch to TCA Registryprogram

Customer Set of Pages: Use these to manage, search, create, and update

customer information Sales Order Window


21/130


Entering Party Information: Customers Set of Pages


22/130


TemporaryInterface Tables

OracleReceivables

Customer Tables

Correct errorswith SQL*Plus

Customer InterfaceExecution Report

ExternalDatabases

Entering Party Information: Customer Interface


23/130


Entering Party Information: Business Considerations

Follow Naming Conventions

Determine the usage of Automatic Numbering

Define how to use classifications to group customers, both for pricingfunctionality and for reporting purposes

Decide whether to set up centralized (one party with single bill-to site) or

decentralized (multiple parties with a single bill-to site per party) parties Standard Business Purposes:

Bill-to Ship-to Marketing

Statements Dunning Legal

Decide whether to allow Payment of unrelated transactions


24/130


Merger Party or Customer Accounts

Merge parties or customer accounts to:

Eliminate incorrect data and duplicate information

Consolidate site data

Reflect party or customer account changes due to business consolidation

Party Merge results in merging of everything under the parties.

Customer Account merge results in merging of two accounts under one

party

AT&T American

Telephone

Montreal LondonAT&T

Party Merge Customer AccountMerge

C A R l i hi


25/130


Customer Account Relationships

Relationships exist between two customer accounts. They allow thefollowing:

Payment of related invoices.

Sharing of pricing entitlements (Agreements and Commitments).

Consolidation of business addresses (selection of a related customersship-to address during order entry).

The relationship can be reciprocal or nonreciprocal.

Relationships are not transitive.

R t d S t O ti


26/130


Reports and Setup Options

Multiple options for reviewing customer information:

Review data online

Search Information

Run reports:

Customer Listing Detail/Summary

Customer Profiles Report

Customer Relationships Listing

Setup Options

Mandatory Setups required for Customer Profiles:

Collectors

Payment Terms Mandatory Setups required for Customer setup:

Profile Classes

System Options

Profile Options


27/130


Transactions

T ti R i d S t


28/130


Transactions: Required Setup

Before you can use customer invoices, you must complete these setups:

Customers

Receivables Transaction Types

AutoAccounting

Billing Cycles

Payment Terms

Transaction Sources

Remit-To Addresses

System and Profile Options

R i bl T ti T


29/130


Transaction types determine:

Transaction class: debit memo, credit memo, on-account credit,chargeback, commitment, invoice, bills receivable.

Natural Application setting. If the transaction can be posted to General Ledger

If the transaction is an open receivable, that is, updates customer balancesfor debit memos, credit memos, chargebacks, and on-account credits.

If the transaction excludes late charges.

If freight can be entered.

If a tax classification code defaults to the transaction line.

Default credit memo type for an invoice.

Default invoice type for a commitment.

Creation sign.


I l t ti C id ti T ti T


30/130


Transaction types to be defined in the following order:

Credit Memo

Invoice

Debit Memo

Chargeback

Bill Receivables

Deposit

Guarantee

Implementation Consideration: Transaction Types

Recei ables Transaction T pes


31/130



AutoAccounting


32/130


Invoice

Salesperson = Joe AdamsTransaction Type = Invoice1. Wrist Pad 2 @ 1,000

Revenue Account = 01-100-4505-201

Account Type = Revenue

Segment Constant Value Table NameCO 01CC SalesrepsAccount Trans. Types

Product Standard Line

Salesperson = Joe AdamsRevenue Account = 02-100-4000-000

Transaction Type = InvoiceRevenue Account = 02-000-4505-100

Standard Line = Wrist Pad

Revenue Account = 02-000-4101-201

AutoAccounting

AutoAccounting


33/130


AutoAccounting

Balance Forward Billing Cycle


34/130


Balance Forward Billing Cycle

Payment Terms


35/130


Payment Terms

Transaction Sources


36/130


Transaction Sources

Remit-to Addresses


37/130


Remit-to Addresses

System Options


38/130


System Options

Profile Options


39/130


Profile Options

AR: Allow Update of Existing Sales Credits

AR: Change Customer on Transaction

AR: Default Exchange Rate Type

AR: Override Adjustment Activity Account Option

AR: Transaction Batch Source

AR: Use Invoice Accounting For Credit Memos

Transactions: Optional Setup


40/130


Transactions: Optional Setup

The following are optional setup steps for customer invoices:

Accounting Rules

Salespeople

Standard Memo Lines

Document Sequencing

Statements

Balance Forward Billing

Tiered Interest Rates

Accounting Rules


41/130


Accounting Rules

Standard Memo Lines


42/130


Document Sequencing


43/130


q g

Steps to enable document sequencing:

Enable the sequence numbering profile option

Define sequences

Assign sequences to categories

Statements: Aging Bucket


44/130


g g

Statements: Statement Cycles


45/130


y

Statements: Standard Messages


46/130


Implementation Considerations: Transactions


47/130


Oracle System

Payment Terms:

Discounting?

Balance Forward Billing? Split Payment Terms?

Allocating Tax and Freight?AutoAccountingSource of Table

AutoInvoice

ID

Non Oracle Systems

Transaction Batch Source?

Value

Implementation Considerations: Remit-to Address


48/130


Define lockbox addresses as remit-to addresses to let customers knowwhere to send payment.

To catch any missing assignments, set up a remit-to address assignedto a default location. If you enter or import an invoice with an addressthat does not correspond to any of your assignments, it uses thedefault remit-to address.

Implementation Considerations: Function Security


49/130


Function Name

Transactions: Complete

Transactions: Dispute

Transactions: Copy

Transactions: Print

Inv: View

Inv: Enter

Inv: Update

Inv: Delete

Activities That Can Be Restricted

Complete transactions

Place transactions in dispute

Copy transactions

Print transactions

View invoices

Enter invoices

Update invoices

Delete invoices

Transactions: Process Flow


50/130


Enter receipt

Standard Transaction

Copy

Invalidtransaction

Complete, print and send to customer Void

Interface toGeneral Ledger

via SLA

Review and make corrections

Delete

Validtransaction

Invoices

Adjustments

Debit Memo

Credit Memo

Transactions


51/130


Types of transactions: Invoices

Credit Memos

Debit Memos

Guarantees Deposits

Adjustments

Chargebacks

Transactions entry methods:

Manual Entry: Transactions that do not originate from feeder system,like, invoices for misc items, services, or freight

AutoInvoice: Import transactions from -

Order Management

Projects Service

Property Management

Non-Oracle Systems

Invoice ComponentsH d


52/130


Header

Customer

InformationLines

Transaction Defaults


53/130


Transaction defaults save data entry time and reduce errors.

Transaction Source defaults:

Transaction type

Transaction numbering Legal entity

Transaction Type defaults:

Transaction class

Payment terms (if not set at the customer level) Legal entity

Accounting

Credit memos for invoices

Invoice information for commitmentsAutoAccounting defaults:

Accounts for transactions

Validates accounts

Transaction Defaults


54/130


Customer Record defaults: Ship-to and bill-to address

Payment terms

Salesperson

Accounting Rules default from:

An item

A standard memo line

Statement cycles default from the customer profile class.

Payment terms for balance forward billing default from either the

customer account or customer account site profile, depending on theBill Level value of the customer account profile.

Transactions: Freight Details


55/130


Freight charges can be recorded optionally.

Freight can be recoded at:

Invoice Level

Line Level

Freight Account is determined by AutoAccounting Rules.

Transactions: Sales Credit


56/130


Sales Credit information can be recorded optionally

A salesperson must be assigned to each invoice if the Require

Salesperson is selected in the System Options window is selected

Allocates sales credit among salespeople

Records:

Revenue sales credit: credit based on invoice lines

Non-revenue sales credit: credit in excess of the revenue sales credit,such as bonuses or incentives

AutoAccounting recalculates the revenue account assignment

Completing Transactions


57/130


Requirements for completing an invoice are:

Invoice must have at least one line, or at the header level be a freightinvoice.

General Ledger date must be in an open or future period.

Invoice sign must match the sign of the transaction type.

Sum of distributions for each line must equal the invoice line amount.

If Calculate Tax for the transaction type is set to Yes, tax is required oneach line.

If freight was entered for this transaction, you must specify a freight

account. All the activity date ranges for the setup values (for example, payment

terms) must be valid for the invoice date.

If this transaction uses an automatic receipt method, you must enterCustomer bank, branch, and account information.

On completion of invoice:

Payment schedules and aged receivable amounts are calculated

Completed transactions can be transferred to General Ledger

Only completed transactions can be printed

Invoice Batches


58/130


Invoice batching is used to create groups of invoices.

Batching provides for control checks and balances, which are notapplicable to single invoices.

Invoice Batches features:

Batch date defaults to the invoice date.

If a batch is entered, Receivables uses the source assigned to the batch

for each of the invoices. Batch counts and amounts must equal actual invoice counts andamounts.

Actual invoice count and amount are updated as each invoice is entered.

A batch can contain invoices with different currencies.

Invoices can be printed by batch.

Receivables uses invoice batches to import invoice data.

Batch information identifies the originating system when importingtransactions.

Invoice Copy


59/130


Invoice Copy allows creation of recurring invoices for products soldon a regular basis.

Invoice Copy features:

Model invoice is used to copy a series of invoices in future periods.

Model invoice must be complete

After the copy action, changes to the model invoice do not reflect on thecopied invoice

Recurring rules can be associated with invoice copy

Invoices with Rules


60/130


Accounting Rules

Accounting rules determine when to recognize revenue amounts.

Each invoice line can have a different accounting rule.

Accounting Rule types:

Fixed Schedule: Recognize revenue over a specific number of periods. Revenue

can be spread evenly or a percentage can be specified for each period. Variable Schedule: Recognize revenue by a percentage for the first period. The

remaining revenue is spread evenly across the number of periods that you specifyduring transaction entry.

Daily Revenue Rate

All Periods: Used to accurately calculate the revenue distributions across allaccounting periods, including both full and partial periods.

Partial Periods: Used to accurately calculate the revenue foronlypartial periods.

Invoicing Rules

Invoicing rules determine when to bill the customer.

Invoicing Rule types:

Bill in Advance

Bill in Arrears

Bill in Advance: Example


61/130


Invoice rule =Bill in Advance

January

February

March

Invoice

Dr. Receivables 3000Cr. Unearned rev. 3000Dr. Unearned rev. 1000

Cr. Revenue 1000

Dr. Unearned rev. 1000Cr. Revenue 1000

Dr. Unearned rev. 1000

Cr. Revenue 1000

Accounting rule = 3-MonthFixed Duration

Bill in Arrears: Example


62/130


Dr. Unbilled receivable 1000Cr. Revenue 1000



Dr. Receivable 3000Cr. Unbilled receivable 3000

January

February

March

Invoice rule =Bill in Arrears

Accounting rule = 3-MonthFixed Duration

Invoice

Deferred Accounting Rules


63/130


Defer all revenue to an unearned revenue account by assigning adeferred accounting rule to an invoice

A single distribution per line is created that posts to an unearnedrevenue GL account

You later recognize the revenue using the Revenue Accounting

feature.

This is used only with the Bill in Advance invoicing rule.

Revenue Recognition Program


64/130


RevenueRecognition

program

Journalentry

Bill in Advance =

Unearned Revenue

Bill in Arrears =Unbilled Receivables

Deferred Revenue =

Unearned Revenue

Adjustments through Revenue Accounting


65/130


The Revenue Accounting feature lets you adjust:

Earned or Unearned Revenue

Sales Credit

Completed invoices and credit memos

Make adjustments at transaction or line level

Invoice Correction


66/130


Methods of invoice correction:

Under-invoicing: Occurs when an invoice is generated for an amount thatis less than the actual amount due. The difference between the amounts canbe corrected by:

Updating the invoice Creating a Debit Memo

Over-invoicing: Occurs when an invoice is generated for an amount that isgreater than the actual amount due. The difference between the amounts

can be corrected by: Updating the invoice

Creating a Credit Memo

Refunds

On Account Credit

Invalid Transactions: Occurs when the transactions are created in error.These transactions can be:

Deleted

Voided

Corrections Overview


67/130


Correction Effect on Approval Accounting Type Invoice Limits Source

Update Changes None OriginalInvoice original Transaction

Debit Memo None; None AutoAccountingnew item

Adjustment Activity User Receivables

Activity

Credit Memo New item None Originalapplied to Transaction ororiginal AutoAccounting

(profile option)

On-account None; None AutoAccountingCredit account only

Corrections Overview


68/130


Correction Usage

Type Tax Restriction Entry

Update Automatic Activity Query in

Invoice Transactionswindow

Debit Memo Automatic None Transactionswindow

Adjustment Manual or Approval Transactionswrite-off limits Summary

Credit Memo Automatic None Transactions

Summary

On-account Automatic None TransactionsCredit window

Updating Invoice


69/130


Debit Memos


70/130


Adjustments

Transaction Summary Adjust (B)


71/130


Transaction Summary Adjust (B)

Credit Memos


72/130


Refunds


73/130


Printing Transactions


74/130


You can print the followingdocuments to send to customers:

Invoices Credit memos

Debit memos

Deposits

Guarantees Chargebacks

Adjustments

Bills Receivable

Process for Printing

Preview First:

Submit the Invoice Print Preview report to

see transactions that will be printed.Select a list of transactions by specifying

values for the report parameters

Then Print:

Print transactions in batch.Print transactions that have not been

printed.

Specify a range of transactions to print.

Specify other parameters, such astransaction type, class, or customer.

AutoInvoice Process: OverviewRA_INTERFACE_LINES_ALL

RA INTERFACE DISTRIBUTIONS ALL


75/130


View and correctinvalid records

Error lines

Valid

lines

AutoInvoice

interfacetables

Oracle

Receivablestransaction

tables

Third partydata

SQL data

loader

Oracle

data

InterfaceProgram

RA_INTERFACE_DISTRIBUTIONS_ALL

RA_INTERFACE_SALESCREDITS_ALL

AutoInvoice: Integration


76/130


The invoices can be created from the following:

Order Management

Projects Loans

Services

Lease Management

Property Manager Non-Oracle Systems

AutoInvoice: System Options


77/130


AutoInvoice: Transaction Batch Source


78/130


AutoInvoice: Line Ordering Rules


79/130


AutoInvoice: Grouping Rules


80/130


Submitting AutoInvoice


81/130


AutoInvoice Master Program Parameters:

Source

Default Date

Transaction Type Bill-To Customer Number/Name Range

GL Date Range

Ship Date Range

Transaction or Sales Number Range Invoice Date Range

Ship-To Customer Number/Name Range

AutoInvoice Reports


82/130


AutoInvoice Execution Report: Review AutoInvoice results

AutoInvoice Validation Report: Review lines that failed validation

AutoInvoice Exception Handling: Interface Lines


83/130


AutoInvoice Exception Handling: InterfaceExceptions


84/130


AutoInvoice: Implementation Considerations


85/130


What type of transactions or lines will be imported?

Will you need to modify the Transaction flexfield?

How and when will errors be identified?

Who is responsible for correcting the errors?

Will you need to create Grouping Rules with optional attributes?


86/130


Receipts

Receipts: Setup Steps


87/130


Receivable Activities

Remittance Bank

Bank Accounts

Receipt Class and Receipt Method

Receipt Source

AutoCash Rule Sets

Application Rule Sets


R i bl A ti it T d t i h th th ti it


88/130


Receivable Activity Type determines whether the activity uses adistribution set or GL account, where Receivables derives the taxrate code, and in which windows an activity appears in the list ofvalues.

List of activity types: Adjustment

Bank Error

Earned Discount

Unearned Discount Late Charges

Refunds

Misc Cash

Credit Card Chargebacks

Invoice #100

Receivable Activity: Example


89/130


Line 1

Tax for Line 1*

Receivable account 1210*Tax rate code = VAT @ 20%

Revenue account 4010

Tax account 2025

600

100

500

Tax rate code source =None

Revenue

Receivable

Tax rate code source =Invoice

Revenue

20Tax

100

120 Receivable 120

120

Adjustment #200



90/130


Receipt Class, Receipt Method and Bank Account:Relationship


91/130


Receipt class

Receipt method

Bank accountGL account

Receipt method

Bank accountGL account

Define Remittance Bank Account


92/130


Define Receipt Class


93/130


Receipt Class/Method and Bank AccountAssociation


94/130


Define Receipt Sources


95/130


Define AutoCash Rule Sets


96/130


Define Application Rule Sets


97/130


Cross Currency Receipts

Use this feature if you needs to apply receipts to transactions in


98/130


Use this feature if you needs to apply receipts to transactions indifferent currencies

To set up cross-currency receipts:

Define a cross currency rounding account Receivables uses this

account to record any rounding error amounts created during a crosscurrency receipt application for currencies that have a fixed raterelationship.

Define a suspense account General Ledger uses this account tobalance the posting of multi-currency journal entries that result from

applying cross-currency receipts.

Set the Journals Display Inverse Rate profile option Set this profileoption to determine how General Ledger displays conversion rates in theExchange Rate window.

System Options


99/130


Profile Options

AR: Allow Overapplication in Lockbox


100/130


pp AR: Always Default Transaction Balance for Applications

AR: Application GL Date Default

AR: Cash - Allow Actions

AR: Commit Between Validations in Lockbox

AR: Create Bank Charges

AR: Include Receipts at Risk in Customer Balance

AR: Invoices with Unconfirmed Receipts AR: Receipt Batch Source

Implementation Considerations: Receipts

Set up GL accounts before setting up bank accounts in Cash


101/130


p g pManagement.

Decide whether you want a different GL account for each status ofcash or only one cash account.

Set up receipt information so that the setup data can default. Set the AR: Receipt Batch Source profile option so that users do not

have to enter payment information at the batch level.

Define AutoCash Rule Sets for a customer when using AutoLockbox

or QuickCash. Define receivables activities for earned and unearned discounts.

Define receivables activities before setting up bank accounts in CashManagement.

Implementation Considerations: Function Security

Function Name Activities That Can Be Restricted


102/130


Cash

Miscellaneous

QuickCash

QuickCash Post

Remit

Auto

Reverse

Exchange Rate Adj.

View, enter, update, and delete cash receipts

View, enter, update, and delete miscellaneous

transactionsView, enter, and update QuickCash receipts(either all, manual only, or AutoLockbox only)Post QuickCash

View, create, maintain, approve, and formatautomatic remittancesView, create, maintain, approve, format,confirm, and unconfirm automatic receipts

Standard reversals or debit memo reversals

Create exchange rate adjustments

Overview of Receipts Flow


103/130


Enter receipt

Apply to

customeraccount orinvoice

Update

customerbalance

Clearreceipt

Reconcilebank

statement

Receipt Creation

Methods of receipt creation:


104/130


Manual Receipts: This method provides more control over the applicationof individual receipts to specific items. Two types of manual receipts:

Standard

Miscellaneous QuickCash Receipts: This method only requires a minimal amount of

information for each receipt and application and provides an extra level ofcontrol for entering high volume receipts as it does not immediately affectyour customers account balance. Two types of quickcash receipts:

Standard AutoLockbox

Automatic Receipts: Used to automatically generate receipts forcustomers with whom you have predefined agreements.

Credit Card Debit Card

Prepayments

Receipt Statuses

Receipt Statuses:A d


105/130


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 that the

receipt belongs to a receipt class that requires remittance. For automaticreceipts, this status indicates that the receipt has been confirmed.

Remitted: This receipt has been remitted. This status is valid for bothautomatic and manually entered receipts.

Cleared: The payment of this receipt was transferred to your bank accountand the bank statement has been reconciled within Receivables. This statusis valid for both automatic and manually entered receipts.

Reversed: This receipt has been reversed. You can reverse a receipt whenyour customer stops payment on a receipt, if a receipt comes from an

account with nonsufficient funds, or if you want to re-enter and reapply it inReceivables. You can reverse standard receipts and miscellaneoustransactions.

Manual Receipts V/S QuickCash Receipts

Manual Receipts QuickCash Receipts


106/130


Apply receipts using theApplications or Mass Applywindows.

Apply receipts using QuickCashwindow and AutoCash rules.

Apply receipts at invoice linelevel.

Apply receipts at invoice headerlevel only.

Post receipts informationafter applying receipts.

Post receipts after running thePost QuickCash program.

Enter GL Date and DepositDate at batch level andchange dates at receipt level.

Enter GL Date and Deposit Dateat batch level and change datesat receipt level.

Create adjustments andchargebacks for debit itemswith applied receipts.

Create adjustments orchargebacks after PostQuickCash is run.

Manual Receipt Entry Process

Create Enter Apply


107/130


a batch receipts

Postto GL

Remitreceipts

Enterchargebacks

andadjustments

Applyreceipts

Batch Creation


108/130


Batch Status

Status Description

New Creating a new batch. The status ofthe batch changes to Out of


109/130


the batch changes to Out ofBalance, Open, or Closed whenreceipts are saved for the first time.

Out of Balance Actual count and amount ofreceipts do not match the controlcount and amount.

Open Actual count and amount match thecontrol count and amount, but thebatch includes unapplied orunidentified receipts.

Closed Actual count and amount match thecontrol count and amount. All

receipts have been identified andapplied to invoices or applied onaccount.

Apply Receipts

You can apply a receipt to:


110/130


Many invoices or put cash on account An invoice in a different currency

Against specific transaction lines (invoices, debit memos, andchargebacks only)

Against another open receipt (netting receipts)

Create an adjustment to write off a transaction balance or unapplied

receipt balances. Create a chargeback to create a new transaction for the balance of

a transaction.

Apply discounts.

Refund all or part of a previously remitted receipt (credit card ornon-credit card), either manually or automatically using AutoInvoice

Applying Batch Receipts

$4,000


111/130


Receipt batch control:3 receipts, $10,000

$1,000

$5,000

Singleinvoice

Multipleinvoices

On-account

Apply Receipt to Invoice


112/130


Apply Receipt to Invoice Line


113/130


Mass Apply a Receipt


114/130


AP / AR Netting


115/130


Trading PartnerPayables

Trading PartnerReceivables

AP/AR NettingProcess

AP payment

AR receipt

Chargebacks and Adjustments

Receivables lets you create adjustments and chargebacks againsttransactions to which you apply receipts.


116/130


You use chargebacks to create a new debit item for your customerwhen closing an existing debit item. For example, your customer

sends payment of $75 for a $100 invoiceyou apply the receipt tothe invoice, then create a chargeback for the balance due.

You can create multiple chargebacks and adjustments against eachtransaction, for positive or negative amounts.

Receivables lets you enter a chargeback against credit memos oron-account credits that have a positive balance.

Chargebacks Against Receipt


117/130


Credit Card Chargebacks

Requests Chargeback

(Either due to a problem with the orderor the credit card charge)


118/130


Customer

Issues Chargeback

Notifies Vendor

that a Chargeback

has taken place

Records and Investigates the Chargeback Before eitherAcknowledging it or Proving it Invalid

Credit Card Company

Vendor

Vendor Claims on Credit Card Chargebacks

ReceiveCredit Card Chargeback

Is theChargeback

Create Credit Memoto Credit Invoice

Yes


119/130


Notificationfrom Card Issuer

Find Receipt

ApplyCredit Card ChargebackActivity

Subtract the Amountof the Credit CardChargeback from

the Application Line

Generates

Valid?to Credit Invoice

No

Find Receipt

Restore the OriginalAmounton the Application Line

Unapply theCredit Card

Chargeback Activity

Reverses

Negative

Misc.

Receipt

Negative

Misc.

Receipt

Balancing Segments

Receivables uses the Account Generator to update balancingsegment values during various accounting activities againsttransactions and receipts


120/130


transactions and receipts.

By matching balancing segments for different accounting activitiesback to the original transaction or receipt, the Account Generatorensures that Receivables uses the correct balancing segmentvalues during this substitution process.

Deriving Balancing Segment Values

For transaction-related activities, such as adjustments anddiscounts:

R i bl d i th b l i t l f th i bl


121/130


Receivables derives the balancing segment value from the receivableaccount that is associated with the transaction

For receipt-related activities, such as receipt write-off:

Receivables derives the balancing segment from the Unapplied Cashaccount that is associated with the receipt method bank account

You can optionally use the AR: Disable Receivable ActivityBalancing Segment Substitution profile option to disable balancingsegment substitution for Receivables activities.

Disabling the Balancing Segment Substitution


122/130


This profile option does notaffect the gain, loss, and roundingaccounts that you define at the system options level.

Profile Option affects the following activities:Adjustments

Discounts

Late Charges

Activity Applications

What is a AutoLockbox?

AutoLockbox (or Lockbox) is a servicethat commercial banks offer corporatecustomers to enable them to


123/130


customers to enable them tooutsource their accounts receivablepayment processing.

An AutoLockbox operation canprocess millions of transactions amonth.

AutoLockbox eliminates manual dataentry by automatically processingreceipts that are sent directly to yourbank.

Lockboxes

You define lockboxes to use the Receivables AutoLockboxprogram.


124/130


AutoLockbox automatically creates receipts in Receivables using

electronic information that your bank provides.

Receivables lets you specify the receipt method for each Lockboxyou define.

Receipt methods provide the default accounting information forreceipts you create through AutoLockbox.

AutoLockbox Process

AutoLockbox process is a 3 step process:

Import


125/130


ImportDuring this step, AutoLockbox reads and formats the data from the

bank file into the AutoLockbox table using an SQL *Loader script.

ValidationThe validation program checks data in the AutoLockbox tables for

compatibility with Receivables. Once validated, the data istransferred into QuickCash tables.

Post QuickCash

This step applies the receipts and updates the customer balances.

AutoLockbox Process Flow

Bank File

Import Program Lockbox


126/130


AR_PAYMENTS_INTERFACE TABLE

AR_INTERIMCASH RECEIPTS

AR_INTERIM_LINES

Receivables Tables

Import Program

AutoLockboxValidation

Post QuickCash

LockboxExecution Report

Lockbox

Execution Report

Post QuickCashExecution Report

Automatic Receipts

Instead of manually entering receipts, you can use the Receivablesautomatic receipts feature to automatically generate receipts forcustomers with whom you have predefined agreements.


127/130


These agreements let you collect payments on time by transferringfunds from the customers bank account to yours on the receiptmaturity date.

Automatic Receipts and Remittance Process

Enter invoices1. Flag invoices 2. Create receipts


128/130


6. Eliminate risk

Create

automatic receipts

Create remittances Approve remittances Format remittances

Reconcile remittances Eliminate Risk (Factored Receipts)

Approve

automatic receipts

Format

automatic receipts

Confirmautomatic receipts

3. Confirm receipts

4. Remit receipts

5. Clear receipts

2a. Send forcustomer approval

2b. Customer approves

4a. Send remittance to bank 4b. Bank sends statement

Credit Cards

Receivables lets your customers use a credit card to remitpayments for open debit items. The procedure for processing creditcard payments in Receivables is similar to the procedure for

ti t ti i t


129/130


creating automatic receipts.

You can create credit card transactions in Receivables:

Manually in the Transactions window

Import using AutoInvoice

Module Highlights

Order to Cash process overview Receivables process overview



130/130



Transactions Setup

Transactions Process

AutoInvoicing

Receipts Setup

Receipts Process AutoLockbox

Documents

1 Receivables Overview and Process