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Oracle Receivables R12
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ORACLE RECEIVABLES
Release 12 Upgrade Considerations
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
NEW AND CHANGED FEATURES FOR BALANCE FORWARD BILLING
Balance Forward Billing provides enhanced billing options that replace the consolidated billing functionality of prior releases with a more complete and flexible solution.
BALANCE FORWARD BILLING DESCRIPTION
Generate bills based on new Billing Cycles Easily create daily, weekly, monthly, bi-monthly, quarterly,
and annual billings Bill on specific days of the month, or days of the week Choose to exclude weekends
Consolidate billing activity at the level of customer Account or Site Consolidated activity across account sites, or by each
billing site Not all billing sites need to consolidate their invoices, or be
included in account level billing specific invoices can be excluded from the Bill
BALANCE FORWARD BILLING DESCRIPTION
Enhanced viewing and printing Bill Presentment Architecture (BPA) configured formats
provide a more appealing layout that can be easily modified
View the completed bill online Streamline processing with fewer programs to run
and maintain Three programs compared to five used by consolidated
billing feature
BALANCE FORWARD BILLING BENEFITS
Increased flexibility provides billing consistent with business practices and customer needs Expanded billing period definitions, varied levels of
consolidation, exclusion of specified invoices, unlimited print formats
Clearer communication with the customer User views the balance forward bill online exactly as the
customer sees it Improved accuracy of Aging
All invoices on the same bill have the same due date, guaranteeing the individual invoices will age simultaneously
BALANCE FORWARD BILLING SETUP AND PROCESS
Define Payment Term and assign Billing Cycle
Enable Balance Forward Billing for Customer Account or Site
Manually Create Transactions
Import Transactions
Automated process
Define Billing Cycle
SETUP PROCESS
Run GenerateBalance ForwardBill Program
Run ConfirmBalance ForwardBills Program
Run BPABalance ForwardPrint Program
BALANCE FORWARD BILLING SETUPDEFINE BILLING CYCLE
When setting up Balance Forward Billing: For Daily, choose how often and whether to use work
days only For Weekly, choose how often and day of week The form changes based on the Frequency you choose.
BALANCE FORWARD BILLING SETUPDEFINE BILLING CYCLE
When setting up Monthly Balance Forward Billing Cycles: Choose the number of months to create bi-weekly,
quarterly or bi-annual billing Choose a specific date or multiple dates Choose to create exclude weekends
BALANCE FORWARD BILLING SETUPDEFINE PAYMENT TERM
Billing Cycle is a new attribute of the Payment term A billing cycle must be assigned to the payment
term to process balance forward billing. Not updateable if the payment term has been used Cutoff Date information is setup on the billing cycle
BALANCE FORWARD BILLING SETUPCUSTOMER PROFILE CLASS
The Profile Class tab includes: Ability to enable:
Bill Level Account, Site
Type Summary, Detail, Imported (if Level = Site)
Payment Term Balance Forward (if Enabled), Non-Balance Forward (if not
enabled) Override Terms
Default term can be updated
BALANCE FORWARD BILLING SETUPACCOUNT & SITE PROFILE
You must enable Balance Forward at Account and Site Profile
The Bill Level is set ONLY at the Account level Allow override of terms to exclude invoices from the
bill
BALANCE FORWARD BILLING SETUPACCOUNT LEVEL BILL EXAMPLE
UseUse
Ignore
Bill Level
Primary Bill-To
BALANCE FORWARD BILLING SETUP SITE LEVEL BILL EXAMPLE
UseUseIgnore
Bill Level
ORACLE BPA RULES SETUP
Rules for Balance Forward Bills use the Primary Data Source of “Oracle Receivables Balance Forward”
Use existing BPA templates or create your own For the same print formatting as Consolidated Bills,
use the attribute “Display Format”
BALANCE FORWARD BILLING PROCESS ENTER TRANSACTION
Payment Term defaults: from Site profile if Bill Level = Site from Account profile if Bill Level = Account
Billing Date is derived from transaction date and billing cycle
Due Date is derived from billing date and payment term
Select non-Balance Forward term if Override Terms = Yes
BALANCE FORWARD BILLING PROCESS IMPORTED TRANSACTIONS
AutoInvoice derives the billing date Billing Date is a new mandatory grouping rule Billing Date value is mandatory if cycle = External
Transaction API derives the billing date Billing Date value is mandatory if cycle = External
Legacy Invoices must be imported with specific billing date if the seeded “External” cycle is assigned to the payment term
Imported Billing Number feature used by OKL and legacy systems is still supported and does not use the balance forward programs
BALANCE FORWARD BILLING PROCESS CREATING BILLS
Generate Balance Forward Bills program Replaces Print Draft Consolidated Billing Invoices Replaces Print New Consolidated Billing Invoices
Confirm Balance Forward Bill program Replaces Accept Consolidated Billing Invoices Replaces Reject Consolidated Billing Invoices
BPA Balance Forward Print Program Replaces Reprint Consolidated Billing Invoices
BALANCE FORWARD BILLING PROCESS GENERATING BILL LOGIC
BALANCE FORWARD BILLING USE CASES
Case 1: Billing Cycle = 10th of every month Last Bill Generated = Dec 10, 2004 Today’s Run Date = Jan 12, 2005
1 bill generated for Jan 10, 2005
Case 2: Billing Cycle = 10th of every month Last Bill Generated = Dec 10, 2004 Today’s Run Date = Jan 8, 2005
No bill generated Run date must be Jan 10, 2005 or later
BALANCE FORWARD BILLING PROCESS GENERATE BILL PROGRAM
Generate Balance Forward Bills Program Parameters: Choose Print Option
Draft bill Final bill
Print Output Default Yes calls the BPA Print Program Must be Yes to view online No, if plan to print later
Specify Billing Cycle This limits customer and available payment terms to chose
from
BALANCE FORWARD BILLING PROCESS CONFIRM BILL
Program Parameters for confirming a bill include: Confirm Option
Accept Reject
Concurrent Request ID ID from Generate Run Allows batch confirmation Required if no other parameters selected
Use other parameters to limit the bills affected
SUMMARY BALANCE FORWARD BILL EXAMPLE
DETAIL BALANCE FORWARD BILL
All lines for each invoice
Balance and Summary information
BALANCE FORWARD BILLING PROCESS BPA PRINT PROGRAM
BPA Print Program: Can be initiated from Generate Program
Print draft bills Print final bills
Can be used to Reprint Select specific bill number, batch or customer
BALANCE FORWARD BILLING PROCESSDISABLE PAYMENT TERMS
To bill the existing invoices: Generate a final balance forward bill that picks up existing
transactions Change the payment term on all existing transactions to a
non-balance forward billing payment term To bill future invoices:
Change the default payment term on the customer account
Disable balance forward billing at the site and change the default payment term
BALANCE FORWARD BILLING PROCESS CHANGE PAYMENT TERMS
Change the billing cycle for a customer by changing the payment term on the customer profile
Existing transactions with the old payment term, billing date, and due date are picked up on the next bill run Transactions that do not have activity against them inherit
the Payment term, billing date, and due date from the new payment term
Transactions that have activity do not inherit the new payment term, billing date, and due date
BALANCE FORWARD BILLING DEPENDENCIES AND INTERACTIONS
Oracle Bill Management This product provides the user interface and the
customer print format for all Balance Forward Bills It also provides the rules engine that determines what
print/display format will be used It delivers seeded rules that perform the same as the
consolidated billing functionality (summary vs. detail) Users can create new rules and print templates
BALANCE FORWARD BILLING FUNCTIONAL UPGRADE SCRIPT
The upgrade script runs automatically to update consolidated billing proxima payment terms to billing cycle terms It creates cycles based on the cut-off dates of
existing proxima terms It assigns them to the existing payment terms Balance forward billing payment terms cannot be
assigned to Transaction Types and customer Site Uses If a consolidated (proxima) term was assigned at
these levels prior to upgrade, the upgrade script will override the assignment with a null value
BALANCE FORWARD BILLING FUNCTIONAL UPGRADE SCRIPT
Enable Balance Forward Billing Checkbox is enabled at the account and site level for all
validated consolidated billing customers If payment term assigned to customer was not updated to
billing terms, Enable checkbox is null Bill Level
Is set to Site level because consolidated billing was only done at the site level.
Users must update the customer record after upgrade to create bills at the account level
BALANCE FORWARD BILLING FUNCTIONAL UPGRADE SCRIPT
Type Not be changed by the script Detail or Summary values used by default print
formats Customers with the Type of Imported not be included
in the upgradeAllow Override of Terms
Not changed by the script Causes different functionality if default payment term
is overridden on an invoice If checked, payment term other than the default can
be assigned to an invoice.
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
CREDIT CARD CHARGEBACK DESCRIPTION
What is a Credit Card Chargeback? A credit card chargeback takes place when:
A credit card holder disputes a charge with the credit card company
The credit card company issues a chargeback to the customer for the disputed amount
The credit card company notifies the vendor that they have issued a chargeback to the customer
CREDIT CARD CHARGEBACK DESCRIPTION
Request chargeback
Issuechargeback
Request chargeback
Issuechargeback
Notify vendor that a chargeback has taken place
Register that the card issuer has issued the customer a chargeback
Credit Card Company
Vendor
Customer
Vendor
Customer
CREDIT CARD CHARGEBACK BENEFITS
Reduce costs by automating the credit card chargeback process
CREDIT CARD CHARGEBACK PROCESS
Receive Credit Card Chargeback notification from card issuer
PROCESS
Find Receipt
Apply credit card chargeback activity
Subtract the amount of the credit card chargeback from the application line
Generates
Chargeback valid?
Create credit memo to credit invoice
Yes
No, Can prove that the chargeback was
invalid
Find Receipt
Restore the original amount on the application line
Un-apply the credit card chargeback activity
The Negative Misc. Receipt
Reverses
Negative Misc. Receipt
CREDIT CARD CHARGEBACK PROCESS
The process to record a credit card chargeback consists of three steps:1.Receive Receipt2.Record Credit Card Chargeback3.Validate Credit Card Chargeback
acknowledge the credit card chargeback or prove the credit card chargeback to be invalid
CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT
Vendor
Credit Card Company
Customer
Place order for $100
Notify receipt of $100
• Create Invoice– DR Receivables $100– CR Revenue $100
• Receive Receipt– DR Cash $100– CR Unapplied $100
• Apply to Invoice– DR Unapplied $100– CR Receivables $100
CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT
Vendor
Credit Card Company
Customer
File dispute for $25
Notify a chargeback of $25
• Un-apply the receipt– DR Receivables $25– CR Unapplied $25
• Apply the credit card chargeback
– DR Unapplied $25– CR Credit Card Chargeback
$25• Misc. receipt is generated
– DR Credit Card Chargeback $25
– CR Cash $25
Credited $25
CREDIT CARD CHARGEBACK PROCESS RECORD CREDIT CARD CHARGEBACK
Chargeback Process for Vendor:1. Find receipt2. Un-apply the receipt3. Decrease the value on the receipt application line to
$754. Apply $25 to receipt activity ‘Credit Card
Chargeback’ (creates a negative misc. receipt of $25)
CREDIT CARD CHARGEBACK PROCESS VALIDATE CREDIT CARD CHARGEBACK
The vendor can either: Acknowledge the credit card chargeback or Prove the credit card chargeback to be invalid
CREDIT CARD CHARGEBACK PROCESSVALIDATE CREDIT CARD CHARGEBACK
Vendor acknowledges the credit card chargeback
Vendor
• Credit the invoice by creating a credit memo
– DR Revenue $25– CR Receivables $25
CREDIT CARD CHARGEBACK PROCESS VALIDATE CREDIT CARD CHARGEBACK
Vendor proves the chargeback to be invalid
Vendor
Credit Card Company
Prove that chargeback was invalid
Agree that chargeback was invalid
• Un-apply the credit card chargeback– DR Credit Card Chargeback $25– CR Unapplied $25
• Misc. receipt is automatically reversed– DR Cash $25– CR Credit Card Chargeback $25
• Reapply the receipt– DR Unapplied $25– CR Receivables $25
CREDIT CARD CHARGEBACK SETUP
Create Receivables Activity of type Credit Card Chargeback
SETUP
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
LEGAL ENTITY BACKGROUND
Legal Entity identifies the legal owner of a debt or an asset
Oracle Applications did not have an object called Legal Entity in 11i
Different representations of Legal Entity throughout Oracle Applications
Ambiguous representations left the concept open to misuse and misinterpretation
R12.0 Legal Entity solution provides a centralized, secure setup that is used across the E-Business Suite for reporting and other legal compliance
LEGAL ENTITY MODEL
Inv Org = Inventory OrganizationOU = Operating UnitBG = Business Group
No direct relationship
XLegal Entity
Ledger
OU
Inv Org
BankAccount
BG
Primary
LEGAL ENTITY BACKGROUND
Trading Community Architecture (TCA) is used to model Legal Entities
Legal Entities are considered Parties First Party and Third Party Legal Entities are involved
in a transaction LE uptake pertains to the First Party Legal Entity only
LEGAL ENTITY DESCRIPTION
Legal Entity information is available in all Receivables Workbenches
Receivables stamps each transaction and receipt header with the Legal Entity
The user may be required to select or update the Legal Entity assignment
Each transaction belongs to only one Legal Entity Assigning Legal Entity to all transactions enables tax
calculation, supporting the centralized tax solution
LEGAL ENTITIES AND ACCOUNTING
Legal Accounting Environment Type: Exclusive Ledger records the accounting for one Legal Entity Ledger mapped to LE
Legal Accounting Environment Type: Shared Ledger records the accounting for more than one Legal
Entity Balancing Segment Values
mapped to LE
BSV = Balancing Segment Value
Legal Entity Ledger
Legal Entity
Ledger
BSV
LEGAL ENTITIES AND SHARED ACCOUNTING
Ledger
OU 2OU 1
BSV 6 – 7
LE 2LE 1
LE = Legal EntityBSV = Balancing Segment ValueOU = Operating Unit
BSV 1 – 5
LEGAL ENTITY DESCRIPTIONDEFAULTING FOR TRANSACTIONS
Exclusive vs. Shared Accounting Environment: Exclusive: Single Legal Entity (LE) assigned to Ledger
LE derived from Operating Unit The LE value cannot be updated
Shared: Legal Entities share the same Ledger Users must set up the hierarchy to derive LE The default LE can be updated by the user
LEGAL ENTITY DESCRIPTION DEFAULTING FOR TRANSACTIONS
Legal Entity derivation hierarchy for transactions Transaction Type Batch Source
Assigning a Legal Entity to a transaction type or batch source is optional
Only the Legal Entity's mapped to the Ledger associated with the OU are available to assign
User should chose only one layer in the hierarchy to minimize set up replication
LEGAL ENTITY DESCRIPTION DEFAULTING FOR RECEIPTS
Remittance or Internal Bank Account linked to Legal Entity
Bank Account is assigned to Receipt Method Receipt Method is required on all receipts
Receipt Method
Receipt Header
BankAccount
LegalEntity
Default LE
LEGAL ENTITY BENEFITS
Effectively supports central initiative for legal compliance and flexible business management Stamping identifies the owning legal entity on legal
documents accounted for in Oracle Applications Easily manages transactional data by legal entity
Tracking data from the legal perspective enables detailed reporting at legal entity, establishment, and registration level
Accurately provides tax calculation for legal entity Assists with enforcement of tax calculation
and reporting for all jurisdictions
LEGAL ENTITY SETUP AND AUTOMATED PROCESS
Update Transaction Batch Source
AutoInvoiceLE Not Passed
Assign LE to invoice line
LE exist on Transaction Type?
Create invoice
User update LE value for lines
No
Yes
Automated process
Update Transaction Type
SETUP PROCESS
LE exist on Batch Source?
Group lines by LE
Generate Error
Yes
No
Shared Accounting Environment Only
Is LE Valid?
No
LEGAL ENTITY SETUP UPDATE TRANSACTION TYPE
Query Transaction Type Select Legal Entity value
If the type of transaction typically indicates the owner of the transaction, assign the Legal Entity to the transaction type within each organization.
LEGAL ENTITY SETUP UPDATE BATCH SOURCE
Query transaction Batch Source Select Legal Entity value
If the source of the transaction typically indicates the legal owner of a transaction, then assign the Legal Entity to the batch source within the organization.
LEGAL ENTITY PROCESS - AUTOINVOICE
Importing invoices AutoInvoice assumes the LE is correct, if it is active If LE is not passed, AutoInvoice attempts to default
the LE AutoInvoice Validation report displays “Invalid Legal
Entity” If Legal Entity is not valid, or If Legal Entity cannot be determined
User corrects errors via the Interface Lines Forms
LEGAL ENTITY PROCESS - AUTOINVOICE
After Import If the invoice can be incompleted, you can update
the defaulted value in a shared-accounting environments The invoice must have no activity, not be posted and not
printed If System Option “Allow Change to Printed Transactions” is
turned on, Receivables still does not allow changes to LE If you change the LE value, the eTax engine
recalculates tax
LEGAL ENTITY PROCESS - AUTOINVOICE
Importing Regular Credit Memos Credit memo LE should be same as LE of the original
invoice If feeder system does not pass LE, AutoInvoice stamps
credit memos with same LE of original invoice If LE is inactivated between invoice import and credit
memo import, the credit memo is created with the inactive LE
You cannot update a system stamped value Legal Entity is a new mandatory grouping rule
LEGAL ENTITY SETUP AND MANUAL PROCESS
Update Transaction Batch Source
Enter Manual Transaction header
Assign LE to invoice Header
LE exist on Transaction Type?
User assign LE
No
Yes
Automated process
Update Transaction Type
SETUP PROCESS
LE exist on Batch Source?
Yes
No
User continue invoice creation
Shared Accounting Environment Only
LEGAL ENTITY PROCESS – MANUAL TRANSACTION
If an invoice is created manually, the default hierarchy determines which LE is assigned to a transaction. If none is found, you must assign one before continuing to
create an invoice. The LE can be changed as long as the invoice is
incomplete. The standard rules for completing an invoice still pertain,
except if the invoice has been printed, the LE cannot be changed regardless of the Allow Changes to Printed Invoices System Option.
LEGAL ENTITY PROCESS – ON ACCOUNT CREDIT MEMOS
The application of On-Account Credit Memos performs much the same as in 11i
Application must be to transactions in the same Operating Unit
Application across Legal Entities is allowed as long as all transactions are of the same OU
When cross-Legal Entity applications occur, SLA performs inter-company accounting
LEGAL ENTITY PROCESS – BILLS RECEIVABLE
Bills Receivables use same logic as transactions for stamping the LE
Manual Assignments are limited to transactions that are stamped with the same LE as the BR
LE is mandatory selection and batching criteria during Bills Receivable Batching process If LE on the transactions are different, then multiple BR’s
are created. If a BR is exchanged for another BR, they
must belong to the same LE
LEGAL ENTITY PROCESS - RECEIPTS
All receipts inherit the LE from the bank account: Manual, Automatic, Lockbox and Post Quick Cash
Programs Refunds automatically inherit LE from the original
receipt LE is mandatory selection and grouping criteria for
transaction during automated receipt batch creation process
Receipt application across Legal Entities is allowed if the receipt and transactions are in same OU
SLA performs inter-company accounting for cross-LE receipt applications or cross-LE receipt clearing
LEGAL ENTITY PROCESS – CLAIM LE DEFAULTING
LE Default
Data Flow
Receipt Method
Receipt Header
BankAccount
LegalEntity
Receipt Application
InvoiceClaim
Non-InvoiceClaim
Invoice
ClaimResolution
IMPLEMENTATION CONSIDERATIONS
Are there business flows in your organization that need a centralized setup to be used across the E-Business Suite for reporting and other legal compliance?
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
E-BUSINESS TAX
Central application that manages the following for all E-Business Suite products: Tax setups Enforcement of tax rules, regulations, and legislation Tax data Tax reporting
Generic integration point for third-party tax products and services (Taxware, Vertex, etc)
RECEIVABLES E-BUSINESS TAX INTEGRATION KEY BENEFITS
Centralized setup, maintenance, and reporting of tax.
Centralized control over the applicability of tax and tax rate(s) based on user-defined rules.
Rapid adoption of new rates or rules based on changes to local tax laws or rates using centralized setups and included test utilities.
Consistent taxation across Oracle products, operations, and business lines.
Open interface for integration to Taxware, Vertex, or other vendors and products.
E-BUSINESS SUITE TAX PRIOR TO RELEASE 12
Payables
Tax Engine
Data Repository
Tax Reporting
Receivables
Tax EngineData
Repository
Tax Reporting
Tax Partner Tax Content Tax Services
Other Applications
Tax EngineData
Repository
Tax Reporting
E-BUSINESS SUITE TAX INTEGRATION 12.0
Tax Administration Services
Tax Content Services
Tax Determination Services
Partner Tax Services Interface
Partner Tax Content Interface
Tax Services Request Manager
Tax ServicesTax ContentTax Partner
Services
Oracle E-Business Tax
Content Repository
Record Repository
E-Business Suite
Transaction Tax DataTransaction Data
ARCHITECTURE OF A TAX LINE IN E-BUSINESS TAX
Tax lines require all of the following: Tax Regime (UK VAT, US Sales Tax, etc.) Tax (UK VAT, US State Sales Tax, etc.) Tax Status (Standard, Zero Rated, Exempt) Tax Jurisdiction (UK VAT, Quebec PST, etc.) Tax Rate (0%, 5%, 10%, 17.5%, 30%, etc.)
EXAMPLE OF US SALES TAX IN 12.0
Tax Regime
Tax TaxStatus
TaxRate
OperatingUnit Tax Accounts
Regime Tax Jurisdiction Status Rate Account
US Sales Tax
StateSales Tax
California State Sales Tax
Standard 7.25% 01.005.004.033
US Sales Tax
County Sales Tax
San Mateo County Sales Tax
Standard 1.0% 01.005.004.033
US Sales Tax
CitySales Tax
Belmont City Sales Tax
Standard 0% 01.005.004.033
TaxJurisdiction
Flows
Optional Flows
EXAMPLE OF UK VAT TAX IN 12.0
FlowsOptional Flows
Tax Regime Tax
TaxStatus
TaxRate
Regime Tax Jurisdiction Status Rate Recovery
UK VAT UK VAT UK VAT Standard 17.5% 100%
UK VAT UK VAT UK VAT Reduced 8.0% 100%
UK VAT UK VAT UK VAT Zero Rated 00%
UK VAT UK VAT UK VAT Exempt 00%
TaxJurisdiction
OperatingUnit Tax Accounts
Recovery Rate
MIGRATING TAXES FROM 11.5 TO 12.0
Migrated tax setups: Tax Definition Hierarchy Tax Configuration Ownership AR Tax Defaulting Hierarchy AR Tax Codes/Groups Location Based Tax AR System Options for Tax Tax profiles
Migrated Tax (Transactional) Data Invoice, Credit memo tax lines Associated adjustments and receipt discounts
MIGRATING OF TAX CODES AND TAX GROUP CODES
Tax Codes
AA, BB
Tax Group Codes
– CC
Tax Rate Codes
AA, BB, CC Tax Rule
– AA, BB, CC
Output Tax Classification Codes
– AA, BB, CC
USE OF TAX RATE CODES IN RECEIVABLES
Tax rate codes correspond to 11.5 tax codes Specific numeric rate Link to GL accounts (within E-Business Tax) Assigned where a numeric rate is required for offline (non-
recoverable) tax calculations Receivable Activities (nonrecoverable adjustments,
discounts, misc receipts)
USE OF TAX CLASSIFICATIONS IN RECEIVABLES
Tax classifications are used to identify specific (legacy) tax calculations Simple lookup code, contains no tax-specific
settings Used to prompt or seed specific tax calculations for
transactional data in eBusiness Tax Transaction Lines form Memo Lines setup form Customer (TCA) setup
Tax classifications are a legacy element – they only exist for migrated taxes, not new or pure R12 tax setups.
SETTING UP NEW TAXES IN E-BUSINESS TAX
Tax Configuration tab Tax Manager responsibility New tax definitions include:
Jurisdiction, Regime, Status, Tax, and Tax Rate Tax rules (determine applicability of tax) Tax accounts
Test your setups using the Tax Simulator
SETTING UP NEW TAXES IN E-BUSINESS TAX
Set up on the Tax Configuration form: Tax Regimes ( UK VAT, US Sales Tax, etc.) Taxes ( UK VAT, US State Sales Tax, etc.) Tax Statuses (Standard, Zero Rated, Exempt, etc.) Tax Jurisdictions (UK VAT, Quebec PST, etc.) Tax Recovery Rates (100%, 50%, etc.) Tax Rates (0%, 5%, 10%, 17.5%, 30%, etc.) Tax Rules (Determine Tax Applicability, Place of
Supply, etc.)
RECEIVABLES SPECIFIC TAX SETUPS
Receivables Specific Tax Setups: System Options Customer Transaction type Receivables activity Standard memo lines
SYSTEM OPTIONS
Most of the tax setups that used to reside on the System Options form have been migrated to the E-Business Tax Product Options form.
Options that now appear on the E-Business Tax Product Options form include: Tax defaults Hierarchy information Rounding information
CUSTOMER TAX
The Tax Profile tab includes Tax setups related to specific customer accounts or sites, including: Tax rounding Registration Reporting Fiscal classification Customer exemption
TRANSACTION TYPE
The tax classification field on the transaction lines form is now optional
When selected, the tax classification is defaulted on each transaction line based on the migrated tax hierarchy
The requirement for tax lines on the transaction is now monitored by E-Business Tax so transactions without tax lines will no longer raise errors when saved or completed
RECEIVABLES ACTIVITY
Receivables Activities form The Tax Code on the previous versions of this form
was replaced with Tax Rate Code The numeric rate associated with this tax rate is used to
calculate non-recoverable taxes internally within Receivables.
New multi-line area on the form where you can associate the correct tax rates for each supported Legal Entity
ADJUSTMENTS, RECEIPT DISCOUNTS, AND RECOVERABLE TAX
Adjustments and Receipt Discounts are recoverable when the receivable activity contains the following: Tax code source = ‘Invoice’ Recoverable checked
When an adjustment or discount is recoverable, Receivables calls E-Business Tax to: Prorate the activity between tax and lines Record the activity in the tax repository
This means that recoverable activities decrease your tax liability. Non-recoverable activities are not reflected in the tax repository or your tax reporting.
STANDARD MEMO LINES
Standard Memo Lines Form: Tax code is now Tax Classification
May be defaulted on transaction lines based on your tax defaulting hierarchy
New Tax Product Category field Defaulted on your transaction lines and passed to E-
Business Tax during tax calculations Used to determine the correct taxes to apply and tax
amounts due
LEGAL ENTITY AND SHIP TO
Legal Entity is required on all transactions and receipts Defaulted from transaction type, batch source, organization Credit memos default legal entity from target transaction Adjustments assume legal entity from target transactions Receipts default legal entity from remittance bank account
Ship to customer and address information can now be recorded at the line-level Ship to is now an optional grouping rule for transactions A transaction can have multiple ship-to addresses
TRANSACTIONS AND MIGRATED TAXES
No change to taxes migrated from previous releases Same rate as previously defined (now a tax rate code) Same tax accounts (migrated to E-Business Tax) Tax classification defaults on each line using hierarchy User can specify tax classification manually for each line Resulting tax calculation will be identical to pre-12.0
Note: Tax calculation only occurs for migrated taxes if the output tax classification is present on the invoice line.
TRANSACTIONS AND MIGRATED TAXES: KEY DIFFERENCES
Transaction type no longer enforces existence of tax lines on your transactions
Presence or absence of tax classification does not dictate tax calculations
The ability to enter manual tax lines or modify existing tax lines now controlled by E-Business Tax
Credit Memos always use E-Business Tax for tax calculations
TRANSACTIONS AND NEW TAXES
New taxes are calculated based on: Applicability (tax rules) defined in E-Business Tax Content of the transaction in Receivables
NOTE: Tax classification is not required or used for non-migrated taxes
Calculation is entirely hands-free
TRANSACTIONS AND MANUAL TAXES
Tax Lines Form: Can be displayed from either the transaction
header or transaction lines forms Use to:
Enter a manual tax line Override an existing tax line
Manual tax lines now require the following information: Regime Tax Jurisdiction Status Rate
IMPLEMENTATION CONSIDERATIONS
E-Business Tax was designed around a robust and flexible rule-based applicability feature.
When properly configured, the E-Business Tax engine should be able to determine the correct taxes based on customer, location, item, or any combination of dozens of other transaction attributes.
The decision for the applicability of any given tax should made during setup and testing, not during transaction entry.
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
SUBLEDGER ACCOUNTING OVERVIEW
Rule-based accounting engine, toolset & repository Allows multiple accounting representations for a
single business event Common data model and UI across subledgers Supports all 11i functionality
SUBLEDGER ACCOUNTING BENEFITS
Enable compliance with multiple legislative, industry or geography requirements concurrently in a single instance through configurable rules
Increase transparency and enable full audit of the transaction and accounting data through the new data model
Improve accounting reconciliation
SUBLEDGER ACCOUNTING IN RECEIVABLES OVERVIEW
Receivables predefines setup data to maintain R11i functionality
Default accounting that Auto Accounting creates is interim accounting only. You must refer to SLA for your accounting entries Receivables distribution is no longer your accounting. It
is used as a source for predefined accounting derivation rule
SLA creates accounting and SLA transfers accounting entries to GL Obsolete: General Ledger Interface concurrent program Obsolete: CCID Corrections Form New: Submit Accounting concurrent program
SUBLEDGER ACCOUNTING IN RECEIVABLES BENEFITS
Multiple accounting representations Legal and Management reporting Accrual and Cash Basis accounting Multi-Fund Receivables accounting
Infrastructure to support new feature: Line Level Cash Application
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS SUBMIT ACCOUNTING PROGRAM
Submit Accounting Program: Receivables concurrent program to create
accounting entries in SLA When you run Submit Accounting, the Revenue
Recognition program is automatically run before creating accounting entries in SLA
You can choose to create draft accounting or final accounting.
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS CREATE/VIEW ACCOUNTING
You can create and view accounting entries from Receivables transactions and receipts workbenches To create accounting for transactions, run the Submit
Accounting concurrent program To create accounting online go to Tools>‘Create
Accounting’ on the transactions workbench or receipt workbench.
To view accounting entries for a transaction, bring up the transaction, and then go to Tools>View Accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS ONLINE CREATE ACCOUNTING
Create Accounting form options: Create Final Accounting Post to GL Create Final Accounting Create Draft Accounting
You can view draft accounting, which gives you the flexibility to make changes before creating final accounting.
To view the accounting entries, bring up the transaction, and then go to Tools>View Accounting
Refer to SLA documentation for detailed information on the Create Accounting parameters
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP
No AR specific setup is required to continue using 11i functionality Receivables has predefined the setup Resultant accounting is the same as in R11i The next few slides describe AR predefined setup
To define your own SLA setup, please refer to SLA documentation
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP LEDGERS AND SLAMS
Ledger
Subledger Accounting Method
Application Accounting Definition
Journal Lines DefinitionsEvent Class & Type
Journal Line Type
Line Description
Account Derivation Rules
Assigned to
Assigned to
Assigned to
Assigned to
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP SOURCES FOR ACCOUNTING DEFINITIONS
Invoice Event Class
Item
Customer Name
Transaction Type Revenue Account
Tax CodeCurrency
Invoice Number
Operating Unit
Salesperson
Entered Amount
PO Number
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP PREDEFINED EVENT CLASSES/TYPES
Event Class* Event Types
*Event Class = Receivables Document
Invoice
Credit Memo
Receipt
Create
Update
Create
Update
Create
Update
Reverse
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP AR PREDEFINED EVENT CLASSES/TYPES
Event Class Event Type
Journal Definition Assignment
Adjustments All Adjustments – Default Accrual
Bills Receivable All Bills Receivables – Default Accrual
Chargeback All Chargeback – Default Accrual
Credit Memo All Credit Memo – Default Accrual
Debit Memo All Debit Memo – Default Accrual
Deposit Memo All Deposit Memo – Default Accrual
Guarantee All Guarantee – Default Accrual
Invoices All Invoices – Default Accrual
Misc Receipt All Misc Receipt – Default Accrual
Receipt All Receipt – Default Accrual
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ANATOMY OF A JOURNAL ENTRY
Date: 10-Jan-2002 Description: Domestic invoice number A4576, issued Jan 5th 2002Line Type Account Description Debit CreditReceivable 01.1210.000 Paco Terremoto S.A. 5,600Revenue 01.4110.000 Widgets X-123 5,000Tax 01.5350.000 Domestic input VAT 600
Subledger Accounting Entry
DescriptionsAccount Derivation Rules
Journal Line Types
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP JOURNAL LINE TYPES Journal Line Types Setup:
The Side field determines how Receivables will account for the Line Type
The Switch Debit/Credit field determines how negative amounts will be handled
Note that Transfer to GL is done in Summary
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ACCOUNT DERIVATION RULE
Account Derivation Rules Setup: Account Derivation Rules determine which account
to use for the Journal Line Type for a particular transaction
You can define your own: Subledger accounting methods Application Accounting Definitions Journal Line Definitions Journal Line Types Line Descriptions Account Derivation Rules
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP JOURNAL LINE DEFINITION OF INVOICES
The Journal Line Definition is comprised of: Journal Line Types (JLT) Line Descriptions Account Derivation Rules (ADR)
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ASSIGNING THE JLD TO THE AAD Application Accounting Definitions Form
Journal Line Definitions (JLD) are assigned to the Application Accounting Definition per Event Class or Event Type
Journal Line Definitions must be validated to enable accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUPASSIGNING THE AAD TO THE SLAM
Subledger Accounting Methods Form Application Accounting Definitions (AAD) are
assigned to Subledger Accounting Methods
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ASSIGNING THE SLAM TO THE LEDGER
The subledger accounting method is defined and shipped by Oracle. This is indicated by the subledger accounting owner field
which shows Oracle. User defined subledger accounting methods show the user
in the subledger accounting owner field. There is a 1:1 relationship between a ledger and a
SLAM. The Use Cash Basis Accounting flag should be
disabled when using an accrual SLAM
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP PREDEFINED SLAMS
Standard Accrual Application Accounting Definition Name: Receivables
Default Accrual Standard Cash
Application Accounting Definition Name: Receivables Default Cash Basis Accounting Definition
US Federal Accounting Application Accounting Definition Name: Multi-Fund
Account Receivables Accrual - Balancing Method
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS INVOICE ACCOUNTING
11i Accounting
DR Receivables $360
CR Revenue $100 CR Revenue $200 CR Tax $ 10 CR Tax $ 20 CR Freight $ 30
R12 AR Default Accounting
DR Receivables $360
CR Revenue $100 CR Revenue $200 CR Tax $ 10 CR Tax $ 20 CR Freight $ 30
Item 1 $100 Tax $ 10 Freight $ 30Item 2 $200 Tax $ 20
Total $360
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS MULTI-FUND RECEIVABLES ACCOUNTING
R12 AR Default Accounting
DR Receivables $100DR Receivables $200DR Receivables $ 10DR Receivables $ 20DR Receivables $ 30
CR Revenue $100 CR Revenue $200 CR Tax $ 10 CR Tax $ 20 CR Freight $ 30
Item 1 $100 Tax $ 10 Freight $ 30Item 2 $200 Tax $ 20
Total $360
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESSADJUSTMENT ACCOUNTING
11i Adjustment Accounting
DR Write Off $ 60
CR Receivables $ 60
R12 Default Accounting
DR Write Off $ 20DR Write Off $ 40
CR Receivables $ 20 CR Receivables $ 40
$60 LINE* Adjustment
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING
11i Receipt Accounting
DR Unapp $150
CR Receivables $150
R12 Default Receipt Accounting
DR Unapp $ 150
CR Receivables $ 50CR Receivables $100CR Receivables $ 5CR Receivables $ 10CR Receivables $ 15CR Receivables -$ 10 *CR Receivables -$ 20 *
Default Accrual Accounting
$150 Receipt Application
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING
11i CASH BASIS
DR Unapp $150
CR Revenue $ 50CR Revenue $100CR Tax $ 5CR Tax $ 10CR Freight $ 15CR Adjustment -$ 10 CR Adjustment -$ 20
R12 CASH BASIS
DR Unapp $ 150
CR Revenue $ 50CR Revenue $100CR Tax $ 5CR Tax $ 10CR Freight $ 15CR Adjustment -$ 10 CR Adjustment -$ 20
Default Cash Basis Accounting
$150 Receipt Application*
IMPLEMENTATION CONSIDERATIONS
SLA
Transactions
Accounting Events
Receivables
Journal Entry Setup
AccountingProgram
SubledgerBalances
GLJournal Entriesand Balances
AccountingConfigurations
SubledgerJournal Entries
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting
in Receivables Obsolescence and
Replacement of Features
Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Receivables’ Collections Workbench Oracle Advanced Collections replaces the existing
workbench Work is pushed to the user Users work primarily within one main screen The Account Details and Activities forms are still
available for research by non-collector personnel
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Bills of Exchange Bills of exchange are financial instruments used
primarily outside of the USA Bills of exchange were originally implemented as a
type of receipt The Bills Receivable feature replaces the bills of
exchange functionality creating unique documents Bills Receivable has its own workbench
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Trade Accounting Provided a way to handle customer deductions and
overpayments Replaced by Deductions Management, using Trade
Accounting and Credit Management
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Tax Setup and Reporting Receivables tax reports and setup are replaced with
equivalent functionality in Oracle E-Business Tax CCID Correction Form
Provided a way to update invalid accounting before importing into General Ledger
Centralized Sub-Ledger Accounting draft accounting can be corrected prior to interfacing with General Ledger, replacing need for the corrections form
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
COGS and Revenue Matching Report Report compared Revenue to potential COGS Replaced by COGS and Revenue Matching feature
AR Customer Supplier Netting Report Report listed Payables and Receivables by customer Replaced by AP/AR Netting feature
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
On Account Credit Memo Refund Manually initiate refund from On Account credit memo Functionality enhanced with direct integration to Oracle
Payables Consolidated Billing
Consolidated customer invoices into one monthly bill Replaced by more flexible Balance Forward Billing feature
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Customer Standard User Interface Redesign Redesigned as an HTML-based user interface Provides a more streamlined and intuitive customer
data management flow Customer data entry is coupled with data quality
management tools to maintain the integrity of customer data
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Late Charges functionality Enables you to create standard late charge policies that
can be assigned to customer accounts or account sites Flexible policy configurations include:
Multiple interest calculation formulas Transaction and account balance thresholds Currency-level rate setups
OBSOLESCENCE AND REPLACEMENT OF FEATURES BENEFITS
Improve functionality by aligning with mandated or generally accepted business practices
Reduce maintenance by providing centralized functionality
Increase user productivity and effectiveness with more automation, easier navigation and extended functionality
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH
What changed: Forms removed or modified in Receivables Reports retired or modified in Receivables
Required steps: Setup Oracle Advanced Collections
For more information: “Migrating to Oracle Advanced Collections: An Overview
for Oracle Receivables Users” white paper
TRANSITION TO NEW FEATURES
COLLECTIONS WORKBENCH - MENU AND FORMS
Items removed (menu and forms): Account Overview Aging Correspondence Customer Accounts Customer Calls Scheduler
Items changed (menu and program): Account Details modified as research tool
for non-collections users Dunning Letters program is now Historical
Dunning Letters only
Replaced with: – Collector’s Work Queue– Collections– Search
TRANSITION TO NEW FEATURES
COLLECTIONS WORKBENCH - ACCOUNT DETAILS
Account Details: Still exist in R12 to provide non-collector users the ability
to perform research. Are available directly from the Navigator, and can be used
for either transactions or receipts as it is today. Are still available from the transactions workbench when
you select Installments from the Tools/Action menu The Account Details form has been modified to remove
references to Dunning, and Call functionality. Dunning creation and history, and Call
functionality are now available in Advanced Collections.
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH - DUNNING REPRINT
Dunning Reprint allows printing of Historical Days Overdue type dunning letters in the event of foreclosure or other legal issues.
The Program is called Dunning Letter Reprint-Historical Receivables Only
Items changed: Program name: Dunning Letter Reprint-Historical
Receivables Only Output: Historical Receivables Days Overdue
Dunning letters
TRANSITION TO NEW FEATURES BILLS RECEIVABLE
What Changed: The System Option to enable Bills Receivable is
removed, Bills Receivable is automatically enabledRequired Steps
Setup for Bills Receivable If you have transitioned to Bills Receivable prior to
upgrading, no action is requiredFor more information:
If you plan to transition to Bills Receivable before or after the upgrade, review the white paper: “Oracle Receivables Billsof Exchange Obsolescence”
TRANSITION TO NEW FEATURES TRADE ACCOUNTING
What Changed: System Option to Enable Trade Accounting is removed Deductions Management will automatically be enabled if
you setup Trade ManagementRequired steps:
If you upgraded to Deductions Management solution prior to R12.0, no actions are required
Setup Oracle Trade Management and Credit ManagementFor more information:
“E-Business Suite Solutions for Deduction Management, An Oracle White Paper Release 11i.10”
TRANSITION TO NEW FEATURES CUSTOMER STANDARD FORM
What changed: Old Standard customer forms replaced by HTML UI Updates to Customer Profile Class form
Required steps: No actions required
TRANSITION TO NEW FEATURES TAX SETUP AND CALCULATION
What changed: Tax reports retired Tax setup removed from AR Oracle E-Business Tax provides all setup and calculation
functionality for tax
TRANSITION TO NEW FEATURES TAX REPORTING
No longer in Receivables: Tax Code Listing Tax Exceptions Listing Tax Exempt Customer
report Tax Exempt Product
Report Tax Group Listing Report Sales Tax Listing Sales Tax Rate Interface TAX: Setup Verification
Report Tax Partner: AR Effective
Tax Rate Update
Supported in E-Business Tax: Financial Tax Register Tax Received Report Tax Reconciliation Report Tax Register Tax-only: open invoices
report US Sales Tax report for
tax partners
TRANSITION TO NEW FEATURES SUBLEDGER ACCOUNTING
What changed: SLA draft Accounting provides a draft view of accounting
prior to posting Changes can be made to accounting setup, negating need
for CCID Corrections form Required steps:
No action required if AutoAccounting is adequate setup SLA if you need more robust account creation
functionality than AutoAccounting
TRANSITION TO NEW FEATURES COGS AND REVENUE MATCHING
What changed: Report removed Revenue Recognition triggers COGS recognition via API
called by Costing product Required steps:
No action required in Receivables
TRANSITION TO NEW FEATURES AR CUSTOMER SUPPLIER NETTING
What changed: AR Customer Supplier Netting Report retired Replaced by centralized, automated netting feature
Required steps: Setup AP/AR Netting
TRANSITION TO NEW FEATURES ON ACCOUNT CREDIT MEMO REFUND
What changed: Refund no longer creates miscellaneous receipt Interface to Payables via Oracle Payments will create
refund automatically Required steps:
Setup refund Receivables Activity in AR Oracle Payments Setup
TRANSITION TO NEW FEATURES CONSOLIDATED BILLING
What changed: Consolidated Billing creation and print programs retired New Balance Forward Billing feature
Required steps: No Action required for existing consolidated billing Define Balance Forward Billing Cycles Assign Billing Cycle to Payment Terms
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
CENTRALIZED PAYMENT PROCESS DESCRIPTION
Common Engine for Payment Transactions
Oracle Payables
Oracle Receivables
Oracle Order Management
Other Oracle Modules
Oracle Payments
FinancialInstitutions
Credit CardProcessors
CENTRALIZED PAYMENT PROCESS DESCRIPTION
Leverages Oracle Payments Funds Capture Oracle Payments stores external bank accounts and
payment information Centralized data encryption Centralized processing for automatic payment method
CENTRALIZED PAYMENT PROCESS DESCRIPTION
R12 New prompt: “Receipt Method” AR “Payment Method” is renamed to “Receipt Method”
Receivables’ UI modified for payment attributes: Transactions Workbench Receipts Workbench Receipt Classes Setup forms Funds Transfer Error Handling Form Bills Receivables New Payment Details tab on Customer Standard form
CENTRALIZED PAYMENT PROCESS SETUP AND PROCESS
Remittance Processing
Method of creation:Automatic Receipt Receipts APIPrepayment APIReceipt Workbench
Automated process
SETUP PROCESS
Configure Funds Capture Processing (Oracle Payments)
Create receipt classes and receipt methods(Oracle Receivables)
Assign receipt methods and instruments to customer site or account (Oracle Receivables)
Create Receipt
Oracle Payments performs:
(1) Funds capture or (2) Remittance file
creation
Method of creation:Auto InvoiceInvoice APITransaction Workbench
Create Invoice
CENTRALIZED PAYMENT PROCESS SETUPCREATE RECEIPT CLASS/METHOD
Create automatic receipt method:1. Enter Automatic for Creation Method
When a Creation Method of “Automatic” is selected A Remittance Method = “No Remittance” is not allowed The only values available for the Remittance Method are
Standard, Factoring, and Standard and Factoring
2. Enter Payment Method for funds transfer processing Note that this payment method has been defined in Oracle
Payments. Changes:
Receipt Method was previously called Payment Method Payment Method under Funds Transfer Processing region was
previously called “Payment Type”
CENTRALIZED PAYMENT PROCESS PROCESS INVOICE PAYMENT
When you create an invoice, payment details are defaulted from the customer setup
You may overwrite the information. Select Instrument button invokes a new window in
which you can either: Select from an existing list of instrument numbers Create a new instrument number
CENTRALIZED PAYMENT PROCESS ERROR HANDLING
The Correct Funds Transfer Error form is used for: Credit Card and Bank Account Transfer errors Error Handling for automatic payments
CENTRALIZED PAYMENT PROCESS SETUPCUSTOMER’S PAYMENT DETAILS
Use the Payments tab to: Assign primary Receipt Method for the customer Zoom in to Payment Instruments to view existing
instruments such as: Credit card Bank transfer accounts
Zoom in to Payment Instruments to create new payment instruments
IMPLEMENTATION CONSIDERATIONS
Oracle Payments New data model for customer accounts New data model for payment information
Transaction Payment-Extension entity UI components
Upstream products Interface key reference to transaction payment-extension
entity
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
AUTOMATED REFUNDS DESCRIPTION
Automate refund process for non-credit card transactions
Leverage AP workflow approval AP transacts refunds via Oracle Payments
AUTOMATED REFUNDS SETUP AND PROCESS
Request Refund Process
Refunds or On Account?
Fund Disbursement(Oracle Payments)
On account
Refund
Automated process
SETUP PROCESS
Setup Receivables Activity for ‘Refund’
Create on account credit
Workflow approval process
Workflow remittance process
Oracle Payables
Setup Transaction Source: Receipt Handling for Credits
Create credit memo(Auto Invoice)
AUTOMATED REFUNDS SETUP RECEIVABLES ACTIVITY
Refund activity type is applicable for automated non-credit card refunds
You must create a Receivables Activity with this Refund type to process your automated AP refund.
Credit Card Refund activity type is still available for credit card refund only.
AUTOMATED REFUNDS SETUP TRANSACTION SOURCES
Set Receipt Handling for Credits to Refund in your transaction source Applicable for both automated credit card refunds and
automated AP (non-credit card) refundsFor credit card transactions, Receivables submit
the refund request to Oracle Payments directlyFor non-credit card transactions, Receivables
submits the refund request to AP, which in turn submits the request to Oracle Payments
Credit Card Refund has been replaced with Refund for Receipt Handling for Credits
AUTOMATED REFUNDS SETUP TRANSACTION SOURCES
No user interaction is needed. Create credit memos via Auto Invoice Refunds are automated View refund status in AP workbench
AUTOMATED REFUNDS PROCESS APPLICATIONS FORM
To create manual refund, apply the receipt to Refund For Refund application, the button Refund Attributes
is enabled Click on this button to view and update your refund
attributes
AUTOMATED REFUNDS PROCESSNEW REFUND ATTRIBUTES FORM
Refund Attributes: Customer Name Default Customer Number Refund Payment Method Customer Address Party Bank Account Delivery Channel Pay Alone Remittance Message 1,2,3
AUTOMATED REFUNDS PROCESS VIEW REFUND STATUS
Use Refund Status to view the refund status in AP Refund status is not applicable for credit card refund
IMPLEMENTATION CONSIDERATIONS
Oracle Payables Automated refund for non-credit card transactions
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
AP/AR NETTING DESCRIPTION
AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices
A receivables user can View netted receipt details directly from the receipt Create Netting Agreements and Netting Batches
The AR Customer Supplier Netting Report has been retired
AP/AR NETTING BENEFITS
Increase user productivity and effectiveness with more automation and integration
AP/AR NETTING PROCESS ACCESS
You can now access forms for creating and updating: Netting Batches Netting Agreements
AP/AR NETTING PROCESS ACCESSING
After Querying a netted receipt, you can view details about the batch by selecting AP/AR Netting from the Action menu
Netted Receipts are created automatically by the AP/AR Netting process
You cannot update Netted Receipts from the Receipts Workbench
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
DAILY REVENUE DESCRIPTION
Daily Revenue enables accurate revenue distribution over all accounting periods, including full and partial periods
It fulfills stringent accounting standards introduced by the US GAAP and SOX for recognizing revenue
DAILY REVENUE DESCRIPTION
Example of a contract that spans from Jan 14th, 2006 through Apr 13th, 2006. We assume the accounting period defined is Monthly.
This contract spans across 4 accounting monthly periods as illustrated below:
Jan Feb Mar Apr |------|----------|------------|------|
1/14 2/1 3/1 4/1 4/13 January and April are partial periods February and March are full periods
DAILY REVENUE DESCRIPTION
Revenue accuracy is to the number of days in the accounting period.
Formula to calculate Daily Revenue Rate:
Daily Rate =Total Revenue
Total Number of Days (for the entire duration)
DAILY REVENUE DESCRIPTION
Example: Contract valid from 14-Jan-2006 to 13-Apr-2006 (90
days total) Assume total revenue is $900 Daily Rate = $900/90days = $10/day Revenue amount per accounting period is based on
Daily Revenue Rate
DAILY REVENUE DESCRIPTIONR11i vs. R12 revenue distributionsExample: 6 months service (17-Apr-2006 to 16-Oct-2006) at $600 total. Calculated daily revenue rate: 600/183 = 3.28
GL Date Revenue Period
R11i Revenue
R12 Daily Rev. All Periods
R12 Daily Rev. Partial Periods
# of Days
Apr 17 Month of Apr 100 45.91 45.91 14
May 17 Month of May 100 101.64 100.33 31
June 17 Month of Jun 100 98.36 100.33 30
July 17 Month of July 100 101.64 100.33 31
Aug 17 Month of Aug 100 101.64 100.33 31
Sept 17 Month of Sept 100 98.36 100.33 30
Oct 16 Month of Oct ----- 52.45 52.44 16
600 600 600 183
DAILY REVENUE SETUP AND PROCESS
Create an invoice lineWith accounting rule.(manual or imported)
Createaccounting
Is it daily revenuerule?
Enter Rule End Date Post accounting
View accounting
Adjust accounting
Yes
No
Automated process
Create accounting rule withDaily Revenue type
SETUP PROCESS
DAILY REVENUE SETUP ACCOUNTING RULES
Two new accounting rule types have been added for Daily Revenue: Daily Revenue Rate, All Periods. For this type, all periods
use daily revenue rate. Daily Revenue Rate, Partial Periods. For this type, partial
periods use daily revenue rate, full periods are prorated. Two existing accounting rule types have been
renamed: Fixed Schedule (Previously named Fixed Duration) Variable Schedule (Previously named Variable Duration)
DAILY REVENUE PROCESS CREATE INVOICE LINE
Invoice line can be created via: Auto Invoice or Invoice API Transactions Workbench
For the Daily Revenue rule, you must enter a Rule End Date
The Rule End Date must be on or after Rule Start Date
IMPLEMENTATION CONSIDERATIONS
General Ledger Define accounting periods in General Ledger
Order Management, and Service Contracts Interface invoice lines to Receivables Default or assign Daily Revenue accounting rules onto
sales order lines or service lines
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
REVENUE CONTINGENCIES OVERVIEW
US GAAP and SOX compliance for revenue recognition User definable revenue contingencies User definable assignment rules Enhanced RAM wizard or Revenue Adjustment API Increase security with restricted access
REVENUE CONTINGENCIES DESCRIPTION
Automatically time revenue recognition in accordance with the removal of Revenue Contingencies as required by US GAAP and IAS
Enhancements to Event Based Revenue Management functionality Enabled for imported and manual transactions User definable contingencies. New UI in Receivables. User definable defaulting rules for contingencies
assignment Support for parent-child (e.g. Product and Service)
relationship.
REVENUE CONTINGENCIES DESCRIPTION
Pre-billing Customer Acceptance is supported by Order Management, Service Contracts and Receivables
Manage contingencies or revenue using Revenue Accounting Module (RAM) wizard and API
Revenue Managers Responsibility restricted access
REVENUE CONTINGENCIES SETUP AND PROCESS
Define contingencies
Define defaulting rules
Create invoice line
Evaluate assignment rules
Is the revenue policy met?
Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies
Defer Revenue if contingencies exist
Assign contingencies if criteria is met
No
Yes
Automated process
Define policy threshold
SETUP PROCESS
Recognize revenue or continue deferring revenue
Assign Contingencies
Recognize Revenue
Run Revenue Contingency Analyzer to detect expired contingencies
REVENUE CONTINGENCIES SETUP POLICY THRESHOLD
On the Revenue Policy form, you must setup a policy for each operating unit: Select an Operating Unit Enter customer credit classifications Enter your company policy threshold
REVENUE CONTINGENCIES SETUP SEEDED CONTINGENCIES
Receivables seeds the contingencies You cannot update or delete seeded contingencies. You can duplicate the contingencies and modify the copy
as needed, or you can create new contingencies Receivables also seeds removal events
You cannot delete, modify or create removal events Removal events available are: Contingency Expiration,
Customer Acceptance, Invoicing, Payment, and Proof of Delivery
REVENUE CONTINGENCIES SETUPCONTINGENCY CODES/ID
R11i mapped to R12
Contingency Code
AR_ACCEPTANCE
AR_CUSTOMER_CREDIT
AR_COLLECTIBILITY
AR_PAYMENT_TERM
AR_CANCELLATION
AR_FISCAL_FUNDING
AR_REFUND
AR_FORFEITURE
OKL_COLLECTIBILITY
LNS_IMPAIRED_LOAN
ID Contingency Name
2 Explicit Acceptance
3 Customer Creditworthiness
4 Doubtful Collectibility
5 Extended Payment Term
7 Cancellation
8 Fiscal Funding Clause
9 Refund
10 Forfeitures
12 Leasing Doubtful Collectibility
13 Impaired Loans
REVENUE CONTINGENCIES SETUP CREATE RULES
Define your assignment rules to meet your business needs
Receivables does not seed any rule for revenue contingency
You must set up all rules using any of the seeded matching criteria attributes
REVENUE CONTINGENCIES PROCESS CONTINGENCY ASSIGNMENT
Create invoice line
Evaluate assignment rules
Is the revenue policy met?
Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies
Defer Revenue if contingencies exist
Assign contingencies if criteria is met
No
Yes
Automated process
PROCESS
Run Revenue Analyzer to detect expired contingencies
Recognize revenue or continue deferring revenue
Assign Contingencies
Recognize Revenue
Feeder Systems such as Order Management and Service Contracts
Feeder Systems such as Order Management and Service Contracts
Manual Transactions
REVENUE CONTINGENCY PROCESS MANAGE CONTINGENCIES
The Revenue Accounting form is used to manage your revenue
To view your contingencies, go to Line Revenue Contingencies region
To expire or remove a contingency, set the Estimated Expiration Date to today’s date.
You cannot: Add a new contingency Update contingency name
IMPLEMENTATION CONSIDERATIONS
Auto Invoice and Invoice API You may interface contingencies Auto Invoice or Invoice API default contingencies
Manual transactions Receivables defaults contingencies
Order Management, and Service Contracts Support Pre-billing Acceptance
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
COGS AND REVENUE MATCHING DESCRIPTION
Ensures that COGS and Revenue recognition occur in the same accounting period
Developed by Costing, Order Management and Receivables. This TOI covers the Receivables part
Receivables provides the ratio between earned and unearned revenue to Costing
Obsolescence of Receivables’ COGS and Revenue Matching report.
For complete information on this feature, please refer to Costing and Order Management documentation.
COGS AND REVENUE MATCHING BENEFITS
Automate the synchronization of the Revenue and COGS recognition
Obsolescence of Receivables’ COGS and Revenue Matching report
COGS AND REVENUE MATCHING PROCESS COGS RECOGNITION
No user interaction is needed in AR.
IMPLEMENTATION CONSIDERATIONS
Cost Management Performs COGS recognition (or Cost Accounting) Integrates with Receivables for revenue information
Order Management Provides order and return information to Costing Integrates with Receivables for invoice creation Notifies Costing when an order is closed without billing
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in
Receivables Obsolescence and
Replacement of Features Centralized Payment
Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue
Matching Multi-Org Access Control
MULTI-ORG ACCESS CONTROL DESCRIPTION
BelgiumOU
EMEA-1Responsibility
Perform tasks for multiple operatingunits without changing responsibilities
HollandOU
EMEA-1Responsibility
DenmarkOU
EMEA-1Responsibility
MULTI-ORG ACCESS CONTROL BENEFITS
Improve efficiency Easily access transactions from different operating units Improve Shared Services operations
Provide more information for decision making Global consolidated view of transactions across operating
units Reduce Costs
Cut down processing time
RECEIVABLES & MULTI-ORG ACCESS CONTROL
The Operating Unit field: Is mandatory Defaults from the value that has been set for profile
MO: Default Operating Unit Is attached to a list of values that lists all operating
units that you have access to Is not used with:
Payment terms Aging bucket forms
RECEIVABLES & MULTI-ORG ACCESS CONTROL
Multi-Org Access Control functionality is also available on Transactions and Bills Receivables forms
Sources are defined per operating unit The list of values for Source shows all Sources for the
operating units that exist for the user session
RECEIVABLES & MULTI-ORG ACCESS CONTROL
Multi-Org Access Control functionality is also available on the Receipts form.
Receipt Methods have remittance banks, which are defined per operating unit The list of values for Receipt Method shows all Receipt
Methods that have banks in the operating units that exist for the user session
MULTI-ORG ACCESS CONTROL PROCESS
You can submit Concurrent requests for all operating units in the user session – or for a specific operating unit that you select.
You can select the operating unit from a list of values that lists all the Operating Units to which you have access.
Many concurrent processes can run for all operating units in your security profile, including: Auto Invoice Auto Receipt Creation Statements Revenue Contingency
MULTI-ORG ACCESS CONTROL REPORTING
All reports can be submitted for just one operating unit Cross organization accounting reports can still be
submitted for a whole ledger These reports now run for all operating units to which you
have access when the reporting level is set to Ledger
MULTI-ORG ACCESS CONTROL REPORTING PROCESS
Submit reports The reports that can run for all operating units in the
user’s security profile are listed in the notes for this slide.