Oracle Receivables - An Overview_Day 1

7/27/2019 Oracle Receivables - An Overview_Day 1

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Oracle Receivables An Overview

Day 1


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2Copyright 2006 Deloitte Development LLC. All rights reserved.

Agenda

Order to Cash lifecycle overview

Overview of Receivables Process

Setups

Manage Parties and Customer accounts

Process Invoice and Auto Invoicing

Process Receipts and Manual receipts

Period Close Process


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Order to Cash lifecycle overview


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Bank ReconciliationInvoice

Pick ReleaseBook

Receipt

Enter

Receivables

Ship Confirm

Order Management

AutoInvoice

Cash Management

Shipping Execution

Order to Cash Lifecycle


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Order to Cash Lifecycle

Ordering: Entering the order, pricing the order, booking the order,scheduling (which can include checking ATP, placing demand, and reservingon-hand Inventory), running pick release, and shipping the order.

Collecting: Running AutoInvoice, generating invoices, collection efforts,and receipt of payments.

Accounting: Receipt information which is available to be used by CashManagement to reconcile the bank statement and transferring accountinginformation to the General Ledger.


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OrdersCustomer

Master

Inventory

AccountingInvoices

ItemInformation

ReceiptsAccounting

Integration with other applications

GeneralLedger

ReceivablesCash

management

Shipping

Pricing

CRM SuiteCustomerORDER

MANAGEMENT


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Orders can be created from a number of different sources. New orders can be created byentering the information or by copying existing orders. It can also be brought from EDI,

CRM, and other interfaces

Enter order

or return online

Copy an

order or return

Import from*CRM or othersystems

EDI

Order Import

*Customer RelationshipManagement includes:

iService, iStore,

Teleservice, Telesales,

Sales Online, iSupport

Order Management Process


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Enteredorder line

Price list oragreement

Unit priceModifiers

Pricing Process & Shipping Process

Pricing Process

The pricing engine supplies the initial unit price from a price list or customer agreement. Itwill also apply any modifiers for which the order qualifies. Modifiers can either raise or lowerthe initial unit price. They can be set to be applied manually or automatically. They can alsobe set to only be applied after certain events like saving, booking, or shipping.

Shipping Process

When the item is ready, it is pick released.

This creates the move order which can automatically detail where to get the item.

The items are brought from Inventory to the staging area.

The pick confirmation process in the system can automatically occur when you run pick

release.Once the items are loaded on the truck from the staging area you can run the shipconfirm process.

When you run the ship confirm process the system can decrement Inventory andupdate the sales order.

The information can then be transferred through AutoInvoice to Receivables forinvoicing the customer.


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AutoInvoice Process

Invoice Data Interface Tables Invoices

Interface ExceptionsCorrected Records

AutoInvoice Process

Invoice data can be sourced from a number of locations for example: Order

Management, Contracts or legacy systems.

When the data is brought into the Interface Tables, errors are pushed to the InterfaceExceptions Table to be corrected.

Correct data gets pushed into Receivables as invoices.

AutoInvoice Exceptions: Errors are sent to the Interface Exceptions Table where theycan be corrected. Once the lines are corrected, AutoInvoice can be rerun and invoicescreated from the corrected lines.


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Receivables Process

Imported Invoices &Manually createdInvoices

Review and

Correct DataPrint Invoices

Send InvoicesCollect PaymentsPost Receipts


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Cash Management Process

Receive Bank

Statement

Perform

Reconciliation

Post to

General LedgerEnter Manual

Entries

Review Results

Load and Verify

Bank Statement

The final step of the process is to post entries to the General Ledger. The entriestravel from Cash Management to Receivables and then to the General Ledger.


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Receivables overview


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The transactions are created either by importing them or by manually creating them. Thetransactions can then be reviewed and corrected before being completed. Once completed,they are ready to be printed and sent to the customer for payment. However, there is asystem option Allow Changes to Printed Transactions, which will allow the correction ofprinted transactions as well. Then the transactions go through the collection process. Oncecollected, the receipts are enter and applied. The transactions can be transferred to theGeneral Ledger once they are completed. Finally, the receipts can be transferred once theyare completely entered.

Receivables Overview in Order to Cash Process

TransactionsReview and

Correct Data

Print and Send

Invoices

Collect PaymentsEnter ReceiptsTransfer to

General Ledger


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Inventory

GeneralLedger

CashManagement

OrderManagement

ItemInformation

Receivables

Receipts

Orders &Shipment

Accounting

Legacy ServiceContractsOrders

Leasing

Overview of Receivables Integration


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Transactions can be copied in Receivables. A standard transaction would follow the path ofbeing reviewed, corrected, completed, printed, and sent to the customer. A receipt would be

entered against the transaction. The accounting information would be transferred to theGeneral Ledger after the transaction was completed.

Overview of the Transaction Process

Enter receipt

Standard Transaction

Copy

Invalidtransaction

Complete, print and send to customer Void

Interface toGeneral Ledger

Review and make corrections

Delete

Validtransaction


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Invoice RulesInvoice Copies

Original Invoice

AccountingRules

Invoice with Rules

Installments

Overview of Other Invoice OperationsYou can use an invoice to make copies. This process can be applied for invoices which willbe the same over a period of time.

Invoices can be created with or without rules. Invoices with rules can be imported ormanually created. The accounting rule indicates when revenue recognition should takeplace. The invoicing rule indicates whether to bill in advance (the first period) or to bill inarrears (the last period).


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Adjustmententry

Approval limit$500

Validationprocess

Approvedor Pending

Overview of Adjustments

Adjustments are entered into the system and proceed through a validation process beforebeing approved. Adjustments can increase or decrease the remaining balance. Each user

can have a different approval limit. If the adjustment is within the approval limit it isautomatically approved. If it exceeds the approval limit it is placed in a pending statusuntil approved by a user with the appropriate approval limit.


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Overview of Credit Memos

Credit Transactions

Enter

Update

Review

Credit memos

Invoices Debit memos Commitments

You use the Credit Transactions window to enter, update, and review credit memosagainst specific invoices, debit memos, or commitments.

You create credit memos to reduce the balance due for a transaction. When you credita transaction, Receivables creates the appropriate accounting entries and reverses anysales credit assigned to your salespeople.

Receivables lets you credit an entire invoice or specific invoice lines.


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Enter Receipts andRemittances Apply to invoice orcustomer account Update customerbalance

ReconcileTransfer to GeneralLedger

Reverse or Reapply

Overview of Receipts and RemittancesReceipts can be entered in one of three ways:

Manual: Which includes cash and miscellaneous receipts.

QuickCash: Which includes cash and AutoLockbox.Automatic: Which includes credit cards, bills of exchange, direct debits, and ACH bankaccount transfers.

Remittances are a group of receipts remitted to the same bank and bank account, similar tobank deposit tickets.


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Identify past dueitems Contact customer Record activity

Resolvedisputeditems

Applyadjustments

Recordbad debt

Recordreceipts

Overview of Collections

Identify past due items by reviewing information online and printing collections reports.

Contact the customer by sending statements, dunning letters or by a telephone call.Record the customer contact activity and resolve any disputed items. Apply adjustmentsand record bad debt


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Setups


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Before you can use customer invoices, the following must be set up:

Customers: Define Customers including Bill To and Ship To address for transactionprocessing.

Receivables Transaction Types: Assign to transactions. Transaction types adddefault information to the transactions..

AutoAccounting: Specifies the General Ledger accounts of transactions that you

enter manually or import using AutoInvoice.

Payment Terms: Determine the payment schedule and cash discount information forcustomer invoices, debit memos, and commitments.

Transaction Sources: Assign to transactions to control transaction and batchnumbering and provide default information.

Remit-to addresses: Informs customers where to send payments.

System and Profile Options: Provides default values for some Receivablesoperations, such as how Receivables processes data and controls the actions userscan perform.

Required Setup Steps for Transactions


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Receivables, Vision Operations (USA) (N) > Setup > Transactions > Transaction Types

You must set up transaction types before you can enter invoices.

Transaction Type determines:

If the transaction can be posted to the General Ledger (GL).

If the transaction is an open receivable.

If tax must be calculated, or freight can be entered.

The default credit memo type for an invoice.The default invoice type, payment terms, etc.

Creation Sign: The creation sign of each transaction type is also controlled with asetup here.

Transaction classes: Transaction types are dependent on seeded Transaction classes,

which are seven Invoice, DM, CM , Deposit, Guarantee, Chargeback, Bills Receivable.

Note

For guarantees and deposits, the creation sign must be Positive.

Transaction Type is setup at OU level.

Receivables Transaction Types


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AutoAccounting

Receivables, Vision Operations (USA) > Setup > Transactions > AutoAccounting

Oracle Receivables provides flexible setup for transaction accounting by using AutoAccounting

and determines the General Ledger (GL) accounts for invoices by determining a value for eachsegment of the accounting flexfield.

Invoice

Salesperson = Joe AdamsTransaction Type = Invoice

1. Wrist Pad 2 @ 1,000

Revenue Account = 01-100-4505-201

Account Type = Revenue

Segment Constant Value Table NameCO 01CC SalesrepsAccount Trans. TypesProduct Standard Line

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

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

Standard Line = Wrist PadRevenue Account = 02-000-4101-201


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Auto Accounting

Auto Accounting: This screen displays the Auto Accounting Segments


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Receivables, Vision Operations (USA) > Setup > Transactions > Payment Terms

Define standard payment terms to determine payment schedules and percentages ofdiscounts allowed.

The formula used to determine the amount due is:

Amount Due = Relative Amount/Base Amount x Invoice Amount.

For example: Relative Amount = 60%/Base Amount = 100% would be 60% ofInvoice amount.

Select the Credit Check check box to trigger Order Management credit check.

Enter the number of days before the due date that the invoice should be printed.

Allow discounts on partial payments by selecting the Allow Discount on Partial

Payments checkbox.

Specify how to allocate tax and freight on invoices with split terms: in the firstinstallment, or prorated across all installments.

Select the Last Day of Month check box or a specific day to send consolidatedinvoices.

Payment Terms


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Payment Terms

Payment Terms: This screen displays the Payment Terms extended to customers. Thesepayment terms are used on invoices


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Transaction Sources

Control

Invoice Batch Defaults

10001

10002

10003

Numbering

Transaction sources are used to control transaction batching, numbering, and specify defaulttransaction types.

Select validation options for imported transactions.Assign batch sources to invoices, debit memos, commitments, credit memos, and on-account credits.

When setting up the Credit Memo Workflow, assign a Manual source.

Select the Copy Document Number to Transaction Number check box to use the samevalue for both the document number and the transaction number for transactionsassigned to this source. You must check the box if using Gapless document sequences.


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Transaction Sources

Transaction Source: This screen displays the Transaction Sources


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Receivables, Vision Operations (USA) > Setup > System > System Options

Header Level Rounding: Assigning a special account for rounding differences whenconverting foreign currency transactions to your functional currency. The Header LevelRounding is enabled on the Accounting tab. Caution: It cannot be disabled once the boxhas been selected and Header Level Rounding adds an additional line to everytransaction regardless of the currency.

Automatic Journal Import: Automatically import the batches you transfer by checkingthis box on the Accounting tab. The value becomes the default value on the Run GL

journal Import field in the Run General Ledger Interface window.

Allow Change to Printed Transactions: Allow updates to printed transactions bychecking this box on the Trans and Customer tab.

Allow Transaction Deletion: Allow transaction to be deleted from Receivable after ithas been saved by checking this box on the Trans and Customer tab. Caution: Do not

enable this option if using gapless numbering of transactions.

System Options Relating to Transactions


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System Options

System Options: This screen is used to define System Options


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System Options

System Options: This screen is used to define System Options


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Overview of Receipt Setup

Set up receipts in the following order:

Bankaccounts

Remittancebank

Setup options: AutoCash Rule Sets Application Rule Sets

Receiptclass andpaymentmethods

Receiptsource

Receivablesactivities


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You determine how Oracle Receivable accounts for various Receivables Activities byspecifying accounting rules.

Adjustment: You use activities of this type in the Adjustments window. You mustcreate at least one activity of this type.

Bank Error: You use activities of this type in the Receipts window when enteringMiscellaneous transactions. You can use this type of activity to help reconcile bankstatements using Oracle Cash Management.

Earned Discount: You use activities of this type in the Adjustments and theRemittance Banks windows. Use this type of activity to adjust a transaction if paymentis received within the discount period (determined by the transaction's payment term).

Finance Charge: You use activities of this type in the Customers and System Optionswindow. You must define a finance charge activity if you include finance charges onyour statements or dunning letters. You can only define one activity of this type.

Miscellaneous Cash: You use activities of this type in the Receipts window whenentering Miscellaneous transactions. You must create at least one activity of this type.

Unearned Discount: You use activities of this type in the Adjustments and theRemittance Banks windows. Use this type of activity to adjust a transaction if paymentis received after the discount period (determined by the transaction's payment terms).

Types of Receivables Activities


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1. Select Type of Activity

2. GL Activity Source Options:

1. Activity GL Account: Uses the General Ledger (GL) Account on theReceivables Activity Screen.

2. Revenue on Invoice: Uses the GL Account on the Invoice.

3. Tax Code on Invoice: Uses the GL Account on the Tax Accounting window ofthe Tax Code form.

4. Distribution Set: Uses a predefined set of GL Accounts for miscellaneous cashtype activities only.

Receivables Activity Setup


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The relationship between receipt class, payment, and bank account enables defaultaccounting. When a receipt is entered, a payment method and bank account are specified.

Then Oracle Receivables processes the receipt according to the receipt class that thepayment method is associated with, and the accounting for the receipt is derived from thebank account of the payment method

Receipt class

Payment method

Bank accountGL account

Payment method

Bank accountGL account

Receipt Class, Payment Method & Bank Account Relationship


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Before receipts can be recorded, banks must be defined.

Enter bank information, such as address, contact person, institution type, andtransmission and printing programs.

Define customer and supplier banks as well as internal banks.

Share banks with Oracle Payables, which uses these banks for remittance of payments.

Reconcile payments and receipts through Oracle Cash Management, which shares thesame bank information.

Defining Banks

Receivables, Vision Operations (USA)v > Setup > Receipts > Banks

Banks can have one or more bank accounts for each physical bank.

Enter a separate bank account for each currency used at a given bank branch.

Select the Multiple Currency Receipts check box in the Receivables Options

tabbed region to allow deposits in currencies other than the currency of the bank

account.

The Multiple Currency Receipts check box can be selected only if the bank

account is in the functional currency.

Enter a cash account to debit for receipts that are remitted to each bank account.

Enter information about the contact person for each remittance bank account.


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Bank Account and Branch definition

Banks: This screen displays the listing of Banks, country wise


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Bank Account and Branch Creation

Banks: This screen displays the creation of new Banks and related branches.


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Defining Receipt Classes

Receivables > Setup > Receipts > Receipt Classes

Receipt classes determine how Oracle Receivables processes receipts, by specifying:

Entry MethodManual: Standard, quick, and lockbox receipts

Automatic: Automatic and credit card receipts

Remittance Method

No Remittance: Receipts that are not remitted.

Standard: Regular remittance.

Standard and Factoring: Both types in a batch.

Note: Cash receipts that will be reconciled in Oracle Cash Management must beremitted.

Clearance Method

Direct: Clears receipt status as soon as the receipt is entered.

By Automatic Clearing: Runs a program to clear receipts.

By Matching: Clears receipts by reconciling them in Oracle Cash Management.

Note: Clearing happens when the receipt has cleared from the bank. This usuallyindicates the funds are available, which is important for cash flow.

Payment method

You can define one or many payment methods to use for a receipt class.

Payment methods determine the automatic receipt attributes.


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Receipt Classes

Receipt Classes: This screen is used to define receipt classes


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Collectors

Collectors Collectors are defined in Receivable module and are attached to Customer /

Customer site.


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Collections Aging Buckets

Use the Receivables Aging reports to review information about outstanding receivables

as of a specific date about your customer's current and past due invoices, debit memos, andchargebacks. Receivables also gives you the option to age or summarize on-account credits,

unidentified payments, and on-account and unapplied cash amounts.


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System Administrator > Profile > System

Profile Options control many functions in Receivables. Some examples are:

AR: Allow Over application in Lockbox: Controls how AutoLockbox handles receiptswhen the payment amount is greater than the balance due of a transaction.

AR: CashAllow Actions: Determines whether you can create adjustments andchargeback's when applying receipts in the Applications window.

AR: CashDefault Amount Applied: Determines the default value of the AmountApplied field in the Receipts, Applications, and QuickCash windows when you enter anapplication.

AR: Create Bank Charges: Determines whether users can create bank charges whenentering receipts in Receivables.

AR: Include Receipts at Risk in Customer Balance: Controls whether Receivablesdisplays items at risk and includes them calculating account balances in the AccountDetails, Account Overview, and Customer Account windows.

AR: Invoices with Unconfirmed Receipts: Select whether to adjust or creditinvoices selected for automatic receipt.

Profile Options


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System Profiles

System Profiles: This screen is used to define system profiles


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Summary - Day 1

Today we have covered the following topics:

Overview of Order to Cash Cycle.

Overview of Receivables Process

Note: Appendix includes some screenshots of Order to Cash flow as well.


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End of Day 1


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Appendix - Screenshots


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Order Entry

Order Entry Screen: This screen is for creating Sales Orders. Underlying Table isOE_ORDER_HEADERS_ALL


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Line Level & Other Information

Order Entry Screen: The Line Items Tab is used to enter details of Items ordered.


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Book Order

Book Order:

TheFLOW_STATU

S_CODEColumn of

OE_ORDER_LINES_ALL

changes fromEntered to

Booked.


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Pick Release

Pick Release Screen: This screen is used to Pick & Release the orders which are Booked.


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Shipping Transactions Form

Pick & Ship Screen: This screen is used to Ship the orders after Pick Release.


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Price List

Price List: Price List screen shows the Prices attached with an Item. Same item may havedifferent prices at different time eg: seasonal Items like AC, Woolen Sweaters


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Modifiers

Modifiers: The modifier provides price adjustments such as discounts, price breaks,surcharges, coupons, item and term substitutions, and other item discounts.


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Concurrent Program

Concurrent Program: The Pick Selection List Generation program is kicked off as abackground process.

O h C P


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Other Concurrent Programs

Concurrent Program: Other Concurrent Programs are also kicked off as a backgroundprocess as indicated above.

D li T b


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Delivery Tab

Shipping Transactions Screen: Delivery Tab shows deliveries that are created as part ofShipping Process.

Shi C fi


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Ship Confirm

SO Screen: Flow_Status_Code changes to Shipped in Lines table as visible on Lines Tab.

C t I i


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Create Invoice

Run workflow background Process.

Navigation: Order Management >view >Requests

Workflow Background Process inserts the records RA_INTERFACE_LINES_ALL with

INTERFACE_LINE_CONTEXT = ORDER ENTRY

INTERFACE_LINE_ATTRIBUTE1 = Order_number

INTERFACE_LINE_ATTRIBUTE3 = Delivery_id

and spawns Auto invoice Master Program and Auto invoice import program which createsInvoice for that particular Order.

A t I i I t


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Auto Invoice Import

Auto Invoice: Auto Invoice, a seeded concurrent program creates invoices against orders.

I i


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Invoice

The Invoice created can be seen using the Receivables responsibility.

Navigation: Receivables Super User> Transactions> Transactions

Query with the Order Number as Reference.

Underlying tables:

RA_CUSTOMER_TRX_ALL will have the Invoice header information.

The column INTERFACE_HEADER_ATTRIBUTE1 will have the Order Number.

RA_CUSTOMER_TRX_LINES_ALL will have the Invoice lines information.

The column INTERFACE_LINE_ATTRIBUTE1 will have the Order Number.

I i


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Invoice

Invoice: This screen shows the invoice created against SO. The reference filed indicates the

SO Number .

I i i & A ti R l


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Invoicing & Accounting Rules

Invoicing and Accounting Rules: This screen is used to define the accounting rules forinvoices.

Transaction Types


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Transaction Types

Transaction Types: This screen is used to define valid Transaction Types.

Profile Values


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Profile Values

Profile Values: This screen displays the values set for various profile options

GL Accounts


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GL Accounts

GL Accounts: This screen is used to define General Ledger Accounts

Tax Accounts


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Tax Accounts

Tax Accounts: This screen is used to define Tax Accounts state wise

Documents

Oracle Receivables - An Overview_Day 1