Oracle E-Business Suite R12.1 Accounts Receivables Essentials Partner Boot …dbmanagement.info/Books/MIX/9.EBS_R12.1_AR_Receipts... · Oracle E-Business Suite R12.1 Accounts Receivables

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Oracle E-Business Suite R12.1 Accounts Receivables Essentials Partner Boot Camp Training Courseware

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Key Content Contributors

Contributing Companies



• Order to Cash Lifecycle overview

• Overview of Oracle Receivables Process

Bootcamp Objectives

• Managing Parties and Customer Accounts

• Process Invoices Using Auto Invoice

• Process Invoices

• Bill Presentment Architecture

• Credit Management

• Implement Customer Invoicing

• Receipts



• Implement Receipts

• Tax Processing

• Period Closing Process

• Annexure

Section Objectives

Receipt process

Apply receipts using different methods

Create chargebacks, adjustments and claims

Use balancing segments

Apply non-manual receipts

Create receipts utilizing different methods



Overview of Receipts Flow

Apply to Update

Enter receipt

Apply to customer account or

invoice

Update customer balance

Clear receipt

Reconcile bank

statement



statement

Receipt Statuses

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 that the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates that 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



• 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 nonsufficient funds, or if you want to re-enter and reapply it in Receivables. You can reverse standard receipts and miscellaneous transactions.

Section Objectives

Receipt process








Manual Receipt Entry Process

Create a batch

Enter receipts

Apply receipts

Post to GL

Enter chargebacks

and



Remitreceipts

and adjustments

Manual Receipts V/S QuickCash Receipts

Manual Receipts QuickCash Receipts

Apply receipts using the Applications or Mass Apply

Apply receipts using QuickCash window and AutoCash rules. Applications or Mass Apply

windows. window and AutoCash rules.

Apply receipts at invoice line level.

Apply receipts at invoice header level only.

Post receipts information after applying receipts.

Post receipts after running the Post QuickCash program.

Enter GL Date and Deposit Date at batch level and change dates at receipt level.

Enter GL Date and Deposit Date at batch level and change dates at receipt level.



change dates at receipt level. at receipt level.

Create adjustments and chargebacks for debit items with applied receipts.

Create adjustments or chargebacks after Post QuickCash is run.

Batch Creation



Batch Status

Status Description

New Creating a new batch. The status of the batch changes to Out of Balance, Open, or Closed when receipts are saved for the first time. receipts are saved 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



Closed Actual count and amount match the control count and amount. All receipts have been identified and applied to invoices or applied on account.

Apply Receipts

You can apply a receipt to:

• Many invoices or put cash on account• An invoice in a different currency• Against specific transaction lines (invoices, debit memos, and chargebacks 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 or non-credit card), either manually or automatically using AutoInvoice

Applying Batch Receipts

$4,000

Multiple invoices

Receipt batch control: 3 receipts, $10,000

$1,000Single invoice

invoices



$5,000 On-account

Apply Receipt to Invoice



Apply Receipt to Invoice Line



Mass Apply a Receipt



AP / AR Netting

Trading PartnerPayables

AP/AR NettingProcess

AP payment

AR receipt



Trading PartnerReceivables

AR receipt

Section Objectives

Receipt process








Chargebacks and Adjustments

• Receivables lets you create adjustments and chargebacks against transactions to which you apply receipts.

• You use chargebacks to create a new debit item for your customer when closing an existing debit item. For example, your customer sends payment of $75 for a $100 invoice—you apply the receipt to the invoice, then create a chargeback for the balance due.

• You can create multiple chargebacks and adjustments against each transaction, for positive or negative amounts.

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



Chargebacks Against Receipt



Credit Card Chargebacks

Requests Chargeback

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

Customer

Issues Chargeback

Notifies Vendor

that a Chargeback

has taken place

Credit Card Company



Records and Investigates the Chargeback Before either Acknowledging it or Proving it Invalid

Vendor

Vendor Claims on Credit Card Chargebacks

Receive Credit Card Chargeback

Notification from Card Issuer

Is the Chargeback

Valid?

Create Credit Memoto Credit Invoice

Yes

from Card Issuer

Find Receipt

Subtract the Amountof the Credit CardChargeback from

the Application Line

No

Find Receipt

Unapply the Credit Card

Chargeback Activity

Reverses Negative

Misc.

Receipt



Apply Credit Card Chargeback

Activity

the Application Line

Generates Restore the Original Amount

on the Application Line

Chargeback Activity

Negative

Misc.

Receipt

Receipt

Section Objectives

Receipt process








Balancing Segments

• Receivables uses the Account Generator to update balancing segment values during various accounting activities against transactions and receipts.

• By matching balancing segments for different accounting activities back to the original transaction or receipt, the Account Generator ensures that Receivables uses the correct balancing segment values during this substitution process.



Deriving Balancing Segment Values

• For transaction-related activities, such as adjustments and discounts:

– Receivables derives the balancing segment value from the receivable account that is associated with the transactionaccount that is associated with the transaction

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

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



•You can optionally use the AR: Disable Receivable Activity Balancing Segment Substitution profile option to disable balancing segment substitution for Receivables activities.

Disabling the Balancing Segment Substitution

•This profile option does not affect the gain, loss, and rounding accounts that you define at the system options level.

•Profile Option affects the following activities:

–Adjustments

–Discounts



–Discounts

–Late Charges

–Activity Applications

Section Objectives

Receipt process








AutoLockbox (or Lockbox) - is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing


Automatic Receipts - Instead of manually entering receipts, you can use the Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements.

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What is a AutoLockbox?

• AutoLockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable outsource their accounts receivable payment processing.

• An AutoLockbox operation can process millions of transactions a month.

• AutoLockbox eliminates manual data



• AutoLockbox eliminates manual data entry by automatically processing receipts that are sent directly to your bank.

Lockboxes

• You define lockboxes to use the Receivables AutoLockbox program.

• AutoLockbox automatically creates receipts in Receivables using • AutoLockbox automatically creates receipts in Receivables using electronic information that your bank provides.

• Receivables lets you specify the receipt method for each Lockbox you define.

• Receipt methods provide the default accounting information for receipts you create through AutoLockbox.



AutoLockbox Process

AutoLockbox process is a 3 step process:

• ImportDuring this step, AutoLockbox reads and formats the data from the During 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 is transferred into QuickCash tables.



• Post QuickCashThis step applies the receipts and updates the customer balances.

AutoLockbox Process Flow

Bank File

Import Program Lockbox

AR_PAYMENTS_INTERFACE TABLE

AR_INTERIMCASH RECEIPTS

AR_INTERIM_LINES

Import Program

AutoLockbox Validation

Execution Report

LockboxExecution Report



AR_INTERIM_LINES

Receivables Tables

Post QuickCash Post QuickCashExecution Report

Automatic Receipts

• Instead of manually entering receipts, you can use the Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements.

• These agreements let you collect payments on time by transferring funds from the customer’s bank account to yours on the receipt maturity date.



Automatic Receipts and Remittance Process

Enter invoices 1. Flag invoices 2. Create receipts

Createautomatic receipts

Approveautomatic receipts

Formatautomatic receipts

Confirm automatic receipts

3. Confirm receipts

4. Remit receipts

2a. Send for customer approval

2b. Customer approves



6. Eliminate risk

Create remittances Approve remittances Format remittances

Reconcile remittances Eliminate Risk (Factored Receipts)

5. Clear receipts

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

Credit Cards

• Receivables lets your customers use a credit card to remit payments for open debit items. The procedure for processing credit card payments in Receivables is similar to the procedure for creating automatic receipts. creating automatic receipts.

• You can create credit card transactions in Receivables:

– Manually in the Transactions window

– Import using AutoInvoice



Documents

Oracle E-Business Suite R12.1 Accounts Receivables Essentials Partner Boot …dbmanagement.info/Books/MIX/9.EBS_R12.1_AR_Receipts... · Oracle E-Business Suite R12.1 Accounts Receivables