AR_R12

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R12 Receivables Enhancement - Overview

Ramaraju & Amit

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Agenda

R12 AR Enhancement Details Late Charges

Line Level Cash Application

Balance Forward Billing New Accounting Rules

Refund Process Automated

Customer Enhancement

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R12 AR Enhancement Details - Late Charges

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Late Charges - Market Drives

Global Compliance Late charges and Penalty fees based on government requirements

Improve Collections Multi-Format Later Charge support

Flexible, multi-level Late Charge Policy definitions and assessments

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R12 AR Enhancement Details - Late Charges

Flexible charge transaction formats Invoice, Debit memo, Adjustment

Preview Mode & Corrections

Expanded assessment and calculation capabilities More control over the Assessment

System Options

Profile Class / Customer Account Profile

Transaction Type

Tiered charge schedules Rates dependent on length of time overdue

Effective dates for charge schedule changes

Calculation performed independent of Dunning and Statement processing

Integration with Balance Forward Billing Average Daily Balance calculation

Leverages MOAC

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Setting up Late Charges

Define your organization's late charge policy:

Enable the check box Assess Late Charges at the System Options Level.

Set up your late charge documents:

Record the Late Charges as one of the three document types:1.Interest Invoice

2.Debit Memo

3. Adjustment

For points 1 and 2 define Transaction Source and Transaction Type and forthe point 3 define a receivable activity of the type Finance Charges.

Attach the Transaction Source, Transaction Type and Activity at the SystemOptions Level as shown in the next slide.

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Late Charges System Options

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Late Charges Transaction Type

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Late Charges Individual Transaction

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Define Payment Terms to assess the due date for

the transactions. Define Interest Tiers for charging the customers

based on the range of late days.

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Define a Charge schedule and assign amounts or

percentages to interest tiers in the ChargeSchedules window.

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Define Late Charges Policy - Customer Profile Class

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Attach the charge Schedule to the Profile Class ofthe Customer in the Profile Amounts tab.

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Attach the Profile Class to the Customer.

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Charge Interest Days

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Late Charges : View Interest Invoices

11

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Late Charge 11i V/S R12

Finance Charges

No Preview / Correction possibility

Setups and calculation at multipleproducts and localizations

Tiered of Charges not possible

Fixed Amount (Penalty / AdminCharges) not supported

Not possible to exclude of DisputedAmounts

No Flexibility for Mode of Charging

Late Charges

Allows Preview / Correction possibility

Centralized Late Charges Setup

Allows charging Tiered looking at howold the amount due is!

Fixed Amount charge is supported

Exclusion of Disputed Amountssupported OOTB

Flexible Mode of Charging Interest Invoice

Debit Memo

Adjustment

11i11i R12R12

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R12 AR Enhancement Details - Line Level Cash Application

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Vision Computers sends a bill to a customer

He wants to dispute the charges for Monitor at the same time paysthe remaining amount for the other lines ($410)

Line Level Cash Application - Example

Li # It Qt t A t1 C U 1 $ 00 $ 00

Keyboard 1 $50 $50

Mouse 1 $10 $104 Monitor 1 $100 $1005 Modem 1 $50 $50

T t l I i A t $5 0

P t f r $4 0

(Li ,2,3 & 5)

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Line Level Cash Application - New Features

Manual Receipt Application in Detail

Apply specific lines,

Group of lines

Type (Line, Tax, Freight)

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Click Apply in Detailfor line level

applications

Select theinvoice toApply

Line Level Cash Application - Apply at transaction or detail level

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Select AllLines for all

lines todisplay

Select line andenter amounts

Expand ree toapply specific

Lines

Discountscalculate

automatically

Line Level Cash Application - Flexible Line Level Application

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R12 AR Enhancement Details - Balance Forward Billing

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Balance Forward Billing -- Market Drivers

Enhanced consolidated billing for those industries that bill theircustomers on a regular, cyclical basis.

Enable billing policies consistent with organizational needs

Improved communication with Customer

Enhanced viewing and printing of bills

Better integration with feeder systems

Fewer processes to manage

Synchronize bills with Aging

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Balance Forward Billing --- Steps Required

Weekly Cycle:

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Balance Forward Billing Steps required

Monthly Cycle: Assigning the Billing cycle to Payment Term:

EnhancedFeature in R12

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Balance Forward Billing - External Billing Cycle

Billing can be done in legacy system, without predefinedcycles, and imported

Bill date cannot be determined by payment term with external cycle

So, billing date must populated because it is required for due datecalculation

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Balance Forward Billing Steps required

Assigning the Payment Term to the Customer Profile Classand attaching the profile class to the Customer.

Attaching thePayment Term

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Payment Term defaults from Site profile if Bill Level =

Site

from Account profile if BillLevel = Account

Billing Date derived from transaction date

and billing cycle

Due Date derived from billing date and

payment term

Optionally select non-Balance Forward term if

Override is allowed

Balance Forward Billing -Transaction Processing

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Balance Forward Billing - Derivation of Date

Txn. Date

1 -May-2

Billing Date

2 -May-2

Due Date

24-Jun-2 6

Customer

Customer

Site

Customer

BFB Cycle

Payment Term

Due Date

2 th3 Days

BFB Cycle

---------------------------------

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Balance Forward Billing Process Overview

Manually CreateTransactions

ImportTransactions

Automated process

PROCESS

Run GenerateBalance Forward

Bill Program

Run ConfirmBalance Forward

Bills Program

Run BPABalance Forward

Print Program

Draft or Final

Accept or Reject

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Balance Forward Billingtilize BPA Seeded Summary Bill Format

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Balance Forward Billingtilize BPA Seeded Detailed Bill Format

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R12 AR Enhancement Details --Daily Revenue Recognition

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Daily Revenue Recognition--Market Drivers

Distribute revenue in a more granular fashion including full andpartial periods.

Accurate revenue distribution for service and subscriptionindustries

Accuracy to the number of days in the accounting period Support of partial period revenue recognition

Compliance

Fulfill stringent accounting standards introduced by the S GAAPand SOX for recognizing revenue Enhanced RevenueContingencies

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Daily Revenue Recognition --New Features

Two new types of Accounting Rules Introduced

Daily Revenue Rates, All Periods

Daily Revenue Rates, Fully Period

Allows accurate calculation of Periodic Revenue based on just

Start and End dates.

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Daily Revenue Recognition - Example

A sample contract valid from 14th January to 1 thApril

How do we calculate daily revenue rate?

Total Revenue

Daily Rate = ------------------------------------------------------

Number of Days (Duration Period)

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Revenue Management :- Example

R11i vs. R12 revenue distributions Daily rate = 6 /183 = 3.28

GLDate

RevenuePeriod

R11i RevAmount

R12 RevAmount

R12 RevAmount

Days

Daily RevRate, All

Periods

Daily RevRate, Partial

Periods

Apr 17 Month of Apr 100 45.92 45.92 14

May 17 Month of May 100 101.68 100.32 31

June 17 Month of Jun 100 98.40 100.32 30

July 17 Month of July 100 101.68 100.32 31

Aug 17 Month of Aug 100 101.68 100.32 31

Sept 17 Month of Sept 100 98.40 100.32 30

Oct 16 Month of Oct ----- 52.24 52.48 16

600 600 600 183

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New R12daily revenue

types

Select arule type

From R11irule types

Daily Revenue Recognition --Set p Accounting Rule

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Enter ruleend date

Enter DailyRevenue rule

Enter ruleend date

Daily Revenue Recognition -- Create Invoice Lines

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R12 AR Enhancements --- Refund Process Automated

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Automated Refund

Automate refund process for non-credit card transactions

Leverage AP workflow approval

AP transacts refunds via Oracle Payments

Credit Memo based Refund Automation:

Create credit memos via Auto Invoice Refunds are automated

View refund status in AP workbench

Manual: Manually refund from Receipts Application window

Refunds are automated

View refund status in AP workbench

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Automated Refund Set up

ReceiptHandling =

Refund

TransactionSources Setup

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Automated Refund Set up

Receivable Activity Set up

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Automated Refund Process Example

A simple process is demonstrated where we have receipt of 1000 SD out ofwhich 600 SD has been applied to an Invoice and the balance 400 SDhas been refunded on account of return of goods by the customer.

RefundAttributes Tab

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In the Apply to region of the receipt select the activity Refund. A new tabRefund Attribute will come up where you enter the refund disbursementdetails Payables requires for example customer, Payment Method andindicate where to send the refund.

RefundStatus Tab

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When you save the receipt, Receivables sends a refund request to Payables, which

uses its workflow approval process to validate the information before sending a paymentrequest to Payments.

After you create a refund, you can view the refund status by selecting Refund Status inthe Applications window.

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The standard customer form has been replaced with a new HTML formfor creation and updates to customer information.

Addresses usability concerns

Backwards compatible with standard customer form

Includes personalization features

Customer Enhancements

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Customer Enhancements

Documents

AR_R12