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Friday, February 17

Oracle Applications Order to Cash (O2C) Implementation Steps

1.      Define responsibilities for Order Management, Receivables, Inventory, Cash Management, GL and HRMS and assign to a user.
2.      Attach function ‘Choose Set of Books’ to the menu of Receivables responsibility.
  1. Define a new flexfield structure for Sales Tax Location Flexfield (e.g. Structure Name is Indian States) (Let there be one segment called States with qualifiers Automatic Exemption at this level, State and Tax Account). Use the value set AR_LOC_STATE (the associated Table Name is AR_LOCATION_VALUES)
  2. Define a GL Set of Book
  3. Define the locations for Business Group and other organization entities.
  4. Define a Business Group.
  5. Set up system profile option HR: Security Profile for all the responsibilities that are organization specific. HR: Business Group will be populated automatically.
  6. Log on with the new user and create at least one GRE/Legal Entity and one Operating Unit
  7. Create Organization Hierarchy.
  8. Set up GL: Set of Books Name at the user level.
  9. Set up System Profile option Default Country as India for Order Management and Receivables responsibilities.
  10. Set up MO: Operating Unit for all responsibilities that operate at the Operating Unit level and then run Replicate Seed Data.
  11. Choose Set of Books.
  12. Set up System Options.

Receivables: Setup > System > System Options

  1. Define a Receivable Activity for finance charge and link to System Options.

Receivables: Setup > Receipts > Receivable Activities

  1. Define one Inventory Organization and two subinventories (one source and one destination) with Accounting Information and Inventory Information.

Inventory: Setup > Organizations > Organizations

Inventory: Setup > Organizations > Subinventories
  1. Set up Parameter (Item Validation Organization) from Order Management.

OM: Setup > Parameters

  1. Set up two Transaction Sources – 1 imported and the other manual and for the imported one select id’s rather than values.

Receivables: Setup > Transactions > Sources

  1. Define Transaction Types in Receivables for Invoice, Credit Memo, Debit Memo, Deposit, Guarantee and Chargeback.

Receivables: Setup > Transactions > Transactions Type

  1. Set up AutoAccounting for all accounts.

Receivables: Setup > Transactions > AutoAccounting

  1. Define Receivable Activities for Earned Discount, Unearned Discount, Adjustment, Miscellaneous Cash and Receipt Write-Off.  Query on a Receivable Activities called Chargeback Adjustment attach a GL Account.
      Receivables: Setup > Receipts > Receivable Activities
  1. Define Receipt Source, Receipt Class, Bank and Bank Account.
      Receivables: Setup > Receipts > Banks
      Receivables: Setup > Receipts > Receipts Classes
      (Create One Class with Creation Method: Manual, Remittance Method: No 
       Remittance and Clearance Method: Directly and link to the Bank Account)
      (Create One Class with Creation Method: Manual, Remittance Method: Standard 
        and Clearance Method: By Matching and link to the Bank Account)
      Receivables: Setup > Receipts > Receipt Sources
  1. Define Release Rule, Release Sequence Rule, Picking Rule and Pick Slip Grouping Rule.
      OM: Setup > Shipping > Picking > Define Release Rule Form
      OM: Setup > Shipping > Picking > Define Release Sequence Rules
      OM: Setup > Shipping > Picking > Define Pick Slip Grouping Rules
  1. Define two Document Sets for Pick Release and Ship Confirm
      OM: Setup > Shipping > Documents > Document Sets
  1. Setup Shipping Parameters

OM: Setup > Shipping > Shipping Parameters

  1. Define Freight Carriers.
      OM: Setup > Shipping > Freight Carriers, Cost type > Freight Carriers
  1. Define the Cost Types
      OM: Setup > Shipping > Freight Carriers, Cost type > Freight Cost Types
  1. Define Transit Times
     OM: Setup > Shipping > Freight Carriers, Cost type > Shipment Transit Times
  1. Define two items and a container item in inventory and setup container load details.

Inventory: Items > Master Items

      OM: Setup > Shipping > Container Load Details
  1. Setup System Profile option QP: Item Validation Organization for the Order Management responsibility.

Sysadmin: Profile > System

  1. Define a Price List for the two inventory items

OM: Pricing > Price List > Price List Setup

  1. Define Transaction Types in Order Management – 1 header type and 1 line type and 1 return type (Refer to Scrn 2,3 and 4)

OM: Setup > Transaction Types > Define

  1. Setup the following OM System Profile Options:
       OM: Invoice Numbering Method
       OM: Invoice Source

       OM: Invoice Transaction Type

             OM: Credit Memo Transaction Type
             OM: Item Flexfield
             OM: Payment method for Credit Card Transactions
             OM: Source Code
             OM: Source Code2-1-1-1-1
             OM: View Cancel Lines
             OM: View Closed Lines
             OM: Default Salesrep
             OM: Discounting Privileges
             OM: Included Item Freeze Method
             OM: Negative Pricing
             OM: Notification Approver
             OM: Sales Order Form: Restrict Customers
             OM: Schedule Line on Hold
             OM: Set of Books
  1. Set up the following QP Profile Options:
       QP: Multi Currency Installed
       QP: Item Validation Organization
       QP: Negative Pricing
       QP: Price Rounding
       QP: Security Control
       QP: Source System Code     
  1. Setup Sequential Numbering for the Header transaction type.

Define Sequence

Sysadmin: Application > Document > Define

               Assign Sequence
            Sysadmin: Application > Document > Assign
  1. Set up profile option Sequential Numbering.
      Sysadmin: Profile > System
  1. Setup Role and grant to user.

OM: Setup > Shipping > Grants and Role Definitions > Define Roles

      OM: Setup > Shipping > Grants and Role Definitions > Grants
  1. Setup the Defaulting Rules (Refer to Scrn.04)

OM: Setup > Rules > Defaulting

  1. Setup additional Processing Constraints (if required) (Refer to Scrn.05)
      OM: Setup > Rules > Processing Constraints
  1. Tax Setup.
Define a Location Based Tax Code
      Receivables: Setup > Tax > Codes
      Setup the location rates
      Receivables: Setup > Tax > Locations
      Define Authorities
      Receivables: Setup > Tax > Authorities
  1. Detect the structure id of your Sales Tax Location Flex structure After defining the Authority, put your cursor on any of the authorities and go to Help > Diagnostics > Examine. Change Field to LOCATION_STRUCTURE_ID and note down the value. (Refer to Scrn.01)
  2.  Query on the DFF’s Item Exception Rate Assignment and Item Exception Rate Location and at the context value attach your structure id. The value set for Item Exception Rate Assignment should be AR_SALES_TAX_RATES and for Item Exception Rate Location the value set should be AR_LOC_STATE.
  3. Define a Salesperson
      Receivables: Setup > Transactions > Define Resources
  1. Define a Payment Term
      Receivables: Setup > Transactions > Payment Terms
  1. Define one Employee.

HRMS: People > Enter and Maintain

  1. Define a Collector
      Receivables: Setup > Collections > Collectors
  1. Define a Statement Cycle
      Receivables: Setup > Print > Statement Cycles
  1. Define a Profile Class
      Receivables: Customers > Profile Classes
  1. Define two Customers

OM: Customers > Standard

  1. Setup Tax Exemptions and Exceptions
      Receivables: Setup > Tax > Exemptions
      Receivables: Setup > Tax > Exceptions
  1. Define Remit-to Address.
Receivables: Setup > Print > Remit-to Addresses.
  1. Setup Approval Limits for Adjustment and Write Off
      Receivables: Setup > Transactions > Approval Limits


  1. Open period in GL

GL: Setup > Open/Close

54.  Open period for Receivables

Receivables: Control > Accounting > Open/Close Periods

  1. Open Period for Inventory

Inventory: Accounting Close Cycle > Inventory Accounting Periods

  1. Create Miscellaneous Receipts for both inventory items.

Inventory: Transactions > Miscellaneous Transactions

  1. Schedule the Workflow Background Engine every 1-minute.

Inventory > Workflow background Engine

  1. In order to enable Returns from customers, set up Financial Options, Purchasing Options and Receiving Options.
OM: Purchasing > Setup > Organization > Financial Options
               OM: Purchasing > Setup > Organization > Purchasing Options
            OM: Purchasing > Setup > Organization > Receiving Options
59.  Open Purchasing Period.
               OM: Purchasing > Setup > Financials > Accounting > Control Purchasing Periods
60.                        Setup for cash Management
Setup > System Parameters
Setup Validation Transactions

  1. Create a Sales Order and Book
  2. Release the order and ship
  3. Create a Return Order and book.
  4. If after booking the return, the status of the Return Line is ‘Booked’, step 5 is not required.
  5. If the status of the Return Line is ‘Awaiting Return’, receive the Returns If it is received in Receiving; make another Receiving Transaction to take into subinventory.
  6. Run the Workflow background Engine
  7. Run Autoinvoice
  8. One invoice and one credit memo will be created in Receivables.


Receivables Transactions (Invoicing)
 
1.      Create an Invoice, add Freight, view sales credit, Complete and view accounting.
2.      Create a Credit Memo from Credit Transactions and relate to the invoice created in the previous step, complete and view accounting.
3.      Create a Debit Memo, complete and view accounting.
4.      Create a new customer
Create a Deposit on the customer and complete
View the Customer Account
Create an Invoice and relate to the Deposit.
            View the Customer Account
            Apply a Receipt to the Deposit
            View the Customer Account
5.      Create a New Customer
Create a Guarantee on the customer and complete
View the Customer Account
Create an Invoice and relate to the Guarantee.
            View the Customer Account
            Apply a Receipt to the Invoice
      View the Customer Account
6.      Create an Invoice and complete.
Apply a partial receipt to it and create a Chargeback for the balance amount.
7.      Create an Invoice and complete.
            Apply a partial receipt to it and create an Adjustment for the balance amount.
 




Receivables Transactions (Receipts)
 
1.      Create a Unidentified Receipt (Cash) and View Accounting
2.      Create a Unapplied Receipt (Cash) and View Accounting
3.       Create an On Account Receipt (Cash) and View Accounting
4.       Create a Regular Receipt (Cash) and View Accounting
5.       Create a Mass Application
6.      Create two Miscellaneous Receipts, both positive and negative amounts and View Accounting
7.       Apply an On Account receipt to an Invoice.
8.      Create three receipts with a remittance type of payment method (the status would be ‘Confirmed’)
9.      Create a Remittance batch, approve and format (the status of the individual receipts will change to ‘Remitted’ and they will be eligible for application to outstanding debit items)
 

    Cash Management
1.      Create a Bank Statement
2.       Run AutoReconciliation
3.       Create transactions from bank statement
4.       Reverse Cheques
5.       Define a Forecast Template
6.       Run Cash Forecasting by Days/ Cash Forecasting by GL Periods
 

    Closing Receivables Period

1.      Transfer accounting information to GL
2.      Run Incomplete Invoice Report
3.      Close Period (Note : Receivables and Payables closes at the Book Level, not at the Operating Unit level)

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