1 Customer Profile Classes
Use Customer Profiles to group customer accounts with similar credit worthiness, business volume, and payment cycles. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your finance charges, dunning, and statements for each currency in which you do business.
For example, you might define three categories: one for prompt paying customers; one for late paying customers with high finance charge rates; and a third for customers who mostly pay on time, with discount incentives for early payment. You can also use the profile class 'DEFAULT,' which Oracle Receivables provides.
You can assign a profile class to customers and addresses through the Customers-Standard window. The customer profile class you assign provides the default values, which you can optionally customize to meet specific requirements for each customer or address.
If a profile is assigned to a customer and an address of the same customer, the options set at the address level take precedence over those set at the customer level. For statement site and dunning site profile amounts, however, Receivables uses the options at the address level only if you set the AR: Use Statement Site & Dunning Site Profiles profile option to Yes.
Prerequisites
· Define statement cycles
· Define customer profile lookups
· Define credit analysis
· Define dunning letters
· Define collectors
· Define grouping rules
· Define payment terms
· Define AutoCash rule sets
· Define System Options
Navigate to profile class window (Navigation: customer: profile classes)
Credit Profile
2 Customers
Customer and Customer sites define customer name and address information to bill customer’s goods and services rendered. Minimally, customer records have three components: a customer record, a customer site record, and a customer site business purpose record.
The one-customer-to-many-customer-
Customer and customer site records may be converted or imported. A review of the active customer and address records in the legacy system should occur. The number of records should determine if the customer conversion process is manual or automated. Both conversion strategies require users to clean the data. The current customer data must be extracted and the users must review the data. The one-customer-to-many-customer-
Customer Site Architecture
The third record is the customer site use record. This data indicates the business purpose of the customer address data such as the bill-to address or the ship-to address data. The appropriate site will appear in the List of Values during data entry. For example, in the bill-to customer site field, only the sites with a business purpose of Bill to will display.
(i) Some of the Oracle Receivables table names start with the prefix “RA” because prior releases of Oracle Receivables included the Oracle Revenue Accounting (RA) application which is now included within the Oracle Receivables application.
Customer Entry
The Oracle Receivables displays the customer entry find window when opening the window
1. From the Receivables menu à Customers à Standard.
2. The system displays search window. Enter the customer name and say go. To verify the customer record doesn’t already exist to avoid accidental duplicate customer records.
3. Press go to execute the query. If the customer exists, the matching records will be displayed. If the customer name doesn’t exist, the system displays no result found. Press create to create a customer record.
Find/Enter Customer
1. Customer window will appear.
2. Enter the name of the organization.
3. Profile class, account type and customer status.
4. Give relevant address and bill to, ship to address.
5. Say save and apply. Then it will display status active and again say apply.
6. Address will appear in the address field.
Customer Address
Oracle Receivables lets you add, change, or deactivate business purpose information for a specific address. Since customer accounts can have multiple addresses, business purposes let you describe which functions are performed at a particular customer account site. For example, assign a ship-to business purpose to the address where you ship your goods and a Dunning business purpose to the address where you will send Dunning Letters.
When you assign a business purpose to an address, its default status is Active. You can make the business purpose inactive by unchecking the Active check box in the Business Purposes tabbed region.
Addresses can have multiple business purposes, such as shipping, billing, or sending statements, dunning letters, marketing collateral, and legal documents. You can also define your own business purposes in the Receivables Lookups window.
Note: An address assigned to a ship-to business purpose is also referred to as a 'Ship-To site', an address assigned to a Dunning business purpose is referred to as a 'Dunning site', and so on.
Business Purposes and Multiple Organization Support
If you are using the Multiple Organization support feature, you can assign a salesperson to a customer account site. If you are not using multiple organizations, you can assign a salesperson to a customer account and to each of their site uses. You can also create a centralized statement and dunning site for each customer account in a multiple organization environment.
Business purposes in a multiple organization environment are organization specific. For example, only the transactions associated with a bill-to site for a specific organization appear on a statement or dunning letter. If the same bill-to site is used by more than one organization, then you must set up the address and associated business purpose of this bill-to site in each organization. Then, for each organization, you must run separate statements and dunning letters for this same bill-to site.
Consolidated statements and dunning letters for a single customer are also organization specific. When you run a consolidated statement or dunning letter, Receivables consolidates all organization-specific transactions for the customer into a single document and sends the document to the bill-to address with the relevant business purpose (Statement or Dunning).
For example, Sites A and B belong to organization MiniCo, and sites B and C belong to organization BigCo. Receivables will record transactions for site B in both organizations. However, when you run consolidated documents, only the transactions created by MiniCo appear on MiniCo documents and only the transactions created by BigCo appear on BigCo documents. Because MiniCo and BigCo are separate organizations, the activity for site B is not duplicated on both organizations' documents.
Common Types of Business Purposes
Bill To: Send invoices to this address. The bill-to address can be different from this customer account's ship-to address.
Drawee: Designate this address as a customer account drawee. A customer drawee is a customer account site responsible for paying bills receivable.
Ship To: Send your goods or services to this address. The ship-to address can be different from this customer account's bill-to address.
The following setup steps are important for entering transactions in the application:
· Transaction Source
· Transaction Type
· Customer
· Auto Accounting
Standard Transaction (Navigation: transactions: transactions)
Transaction – Main Tab
Source | Select the Transaction Source. The Source specifies automatic or manual and invoice numbering, the standard transaction type, determines which attribute of the Invoice Transaction Flex field is used to default into the Reference field. |
Number | Enter the transaction number if automatic numbering is not enabled. If automatic numbering is specified, Receivables generates a number |
Class | Select the Invoice Class from the list |
Type | Select the Transaction Type. Transaction types determine whether a transaction updates open receivables, can be posted to GL, if Receivables calculates tax, the transaction’s creation sign, whether transactions with this type use natural application only or will allow over application, provide the default transaction class, payment term, and printing options for each transaction. |
Date | Enter the transaction date; the default is the current date |
GL Date | Enter the GL date; the default is the current date. if the current date is not in an open period, the default is the last date of the most recent open period |
Legal Entity | Default legal entity will be populated. This can be changed based security access |
Ship To | Enter customer ship to address. All other details will be populated by Oracle |
Bill To | Enter customer Bill to address. All other details will be populated by Oracle |
Payment Term | Select the payment term applicable to the customer. Oracle will calculate the due date based on this |
More Tab:
Transaction – More Tab
Notes Tabbed Region:
Transaction Lines
Freight window reference
Sales Credits Window Reference:
Distributions Window Reference:
Complete:
• Completing an invoice means that payment schedules and aged receivable amounts are calculated, and this transaction can be transferred to the GL.
• When all required information has been entered, click the Complete button.
• Only completed transactions can be printed.
Press on complete button then go to number tab there one icon will appear press on it then view following window.
Exhibit Completed Transaction
Exhibit
Credit Transaction (nav: transactions: credit transactions)
Apply credit amount to open transaction
Say find credit transactions window will appear and click on credit lines following window will appear. Enter number, description, quantity in minus and amount. Save the data.
Query Original Transaction:
Original Transaction
Query Credit Memo Transaction which system automatically crated and open the Reference Information Tabbed Region and see the Original Transaction effected Information
Credit Memo Reference Information
3 Deposit Transaction
Prerequisites
· Deposit Transaction Type
Process:
· Create Deposit Transaction
· Create normal transaction and Apply to Commitment (Deposit) Transaction
Open Commitment Tabbed Region and enter commitment amount and Effective Dates
Enter Commitment Amount
Commitment Transaction
Create normal transaction and Apply to Commitment (Deposit) Transaction
Run COMMITMENT BALANCE REPORT to know available balance in a Commitment
4 Bills receivables
4.1 Standard Remitted Bills Receivable
Bills receivables is the provision through which organization can get customer transaction amount balance on or before the actual payment by customer.
Prerequisites:
1. Customer should be a Drawee
2. There should be a completed transaction of that customer (Drawee)
3. Define transaction type for bills receivables transaction (nav: setup: transactions: transaction types)
Note: Code Combinations (accounts) will be populated from auto accounting (assumed that auto accounting set-up is completed).
4. Define Transaction source for Bills Receivables Transaction ( nav : setup: transactions : sources)
5. Define Receipt Class
Procedure: Now we can create bills receivables transaction
1. N:à bills receivableà transaction
2. select the transaction type, source, currency, GL date, issue date, customer details
3. click on assign tab
4. select the transaction numberà saveà complete
5. bills receivable transaction number will come
Bills Receivables form (1)
Assignment window (3)
Bills receivable transaction status changes from incomplete to pending remittance after completion
Remit bills receivable transaction:
1. N: àbills receivables à remittance.
2. select remittance method, receipt class, payment method, remittance bank etc
3. click on manual creation/auto create
4. N:àclick on action tabàselect createàok
5. status becomes started creation then changes to complete creation
Remittance window
Select manual create
Maintain remittance bank
After completion of creation, status changes from started creation to completed creation
Now approve and format
First the status is started approval then changes to completed approval
Factored Bills Receivables
- Define Receipt Class with remittance method Factoring.( nav: setup: receipt : receipt class)
- Create a Bills Receivable Transaction( nav: bills receivable : transaction)
Remit the Bills Receivables
Complete the transaction and navigate to remittances window (nav: bills receivable: remittances)
Click on maintain to maintain remittance
5. After successful completion of the above programs the status of Bills Receivables will be changed to Factored.
6. Automatically system will create a receipt for the Factored Bills Receivable with receipt number same as Bills Receivable number.
And you can see the accounting entry for the receipt as follows.
7. After reconciliation/manual clearing in Cash Management the status of the receipt will be changed to Cleared.
And you can see the accounting entry as follows
8. Notes Receivables
Receivables let you enter and track future-dated payments. These types of payments can either be a future dated check or a formal document called a promissory note. A promissory note is a formal, printed document in which the issuer promises to a pay a specific amount on a specific date to another party (the note holder). The date that payment is due is called the note maturity date. Promissory notes are guaranteed by the bank that issues the note.
When a promissory note is created, the issuer specifies the amount due, the maturity date, and the bank branch from which the holder can receive the payment. When the note reaches its maturity date, the holder submits it to their bank. The bank then submits the note to a clearing institution, which transfers the payment from the issuer's bank to the holder's bank.
Notes issued by the customer can also be returned to the supplier prior to the maturity date if, for example, the note had been issued as a deposit, advance payment, or as payment for existing customer invoices.
When a promissory note or future dated check is received as payment for goods or services, it is called a Note Receivable.
Prerequisites to complete notes receivables:
1. Define a Receipt class with notes receivables enabled
2. Create & Complete a normal transaction
We can classify the notes receivables based on their remittance method
Ø Standard remittance notes receivables
Ø Factored remittance notes receivables
Standard remittance
1. N:àreceiptsàreceipts
2. Enter receipt payment method, receipt number, receipt amount, * notes receivable issuer details( in more tab page)
3. Apply the receipt amount to the completed transaction.
Process of remitting:
1. N:à receiptsàremittance
2. select the remittance method, receipt class, receipt payment method, bank etc
3. Click on manual/ auto create
4. Select the receipt à approveà format.
Note: the status will be started approvalàcompleted approvalàstarted formattingà completed formatting
5. Go to receipt the status changes from conformed to remitted
6. N:à toolsà view accounting (to see the accounting entries)
7. Go to cash management and reconcile the receipt with bank statement
8. In receipt the status changes from remitted to cleared
9. N:à toolsà view accounting(to see the accounting entries)
Factored remittance
Prerequisite:Define a Receipt Class & the Remittance method should be Factored/Standard &Factoring
Procedure: to create the receipt
1. N:à receiptsà receipts
2. Create a receipt payment method, receipt amount, * notes receivable issuer details (in more tab page)
3. Apply the receipt amount to the completed transaction.
Process: for remittanceN:à receiptsà remittance
Select the remittance method as factor, receipt class, payment method, bank etc
Click on manual / auto createà select the receiptà approveà format
The status becomes completed formatting.
In receipt the status changes from conformed to remitted
6. Switch over to Cash Management and reconcile the receipt with the bank statement. The status of the receipt changes from remitted to cleared
1. Run the clear/ risk elimination program and see the status and entries in receipt
Balance Forward Billing
Step 1 - Set Up System Option
Select Show Billing Number option (Trans & Customers Tabbed Region) check box to display the forward billing number in Receivables windows and reports.
Step 2 - Define Payment Terms
Create one or more proxima payment terms for use with consolidated billing invoices. The Consolidated Billing Invoice program uses the cutoff date and payment terms that you specify in the submission parameters to select the transactions to include on a consolidated billing invoice.
When defining proxima payment terms for consolidated billing, perform the following:
· Enter a Cutoff Day - The program uses this day to select transactions for a consolidated billing invoice.
· Enter a single due date in the Day of Month field - You cannot use multiple due dates (i.e. split payment terms) with consolidated billing invoices. Additionally, when defining the due date, enter a value for the Months Ahead field. Do not enter a value in the Days or Date fields; the Consolidated Billing Invoice program does not use either field.
You can define more than one payment term for use with consolidated billing invoices. These payment terms can use the same or a different cutoff day. When printing consolidated billing invoices, you can specify which payment term to use.
Step 3 Define - New or Update Existing Customer Profiles
A customer's profile class indicates whether a customer should receive consolidated billing invoices and whether the invoice format is Detail or Summary. The profile class also determines the payment term on the consolidated billing invoice.
Consolidated billing invoices are generated at the bill-to site only. Customers with multiple bill-to sites cannot receive a single invoice that consolidates transactions across customer sites.
If a customer has multiple bill-to sites, the level at which you define a consolidated billing profile class determines the number of consolidated bills that are printed for that customer. When you define a consolidated billing profile class at the customer level only, Receivables will print many consolidated billing invoices, one for each bill-to site. When you define a consolidated billing profile class at a bill-to site only, Receivables will print a single consolidated billing invoice specific to that bill-to site.
Update the profile class at the customer and/or the customer site level to enable consolidated billing:
· Check the Enable (X) check box.
· Choose a consolidated billing format.
Choose a Format of Summary, Detail, or Imported. Choose the Detail format to list the item description, quantity, and unit price for each item on each invoice; choose the Summary format to list only the total amount of each transaction.
Attention: The Imported format is for use with the Imported Billing Number feature. The Imported format will not be printed through the Consolidated Billing Print program. Use custom invoices instead.
Assign a proxima payment term and uncheck the Override Terms box.
You must assign a proxima payment term at either the customer site or the business purpose level for any bill-to site that you want to send a consolidated bill to.
Do not check the Override Terms box on the customer profile. The Consolidated Billing Invoice program ignores the payment terms assigned to individual invoices when selecting transactions. Receivables, however, uses the payment terms on individual invoices to calculate aging and finance charges. If you check this box, then individual invoices may have payment terms that are different from the consolidated bill's payment terms. Consequently, a customer could receive a consolidated bill that includes invoices that are already past due and incurring finance charges.
By not checking the Override Terms box, Receivables automatically defaults payment terms for invoices from the customer profile. All invoices for a given bill-to site, therefore, will have the same payment term as the consolidated billing invoice.
Suggestion: If you want to print a consolidated billing invoice for all of a customer's bill-to sites, enable consolidated billing at the customer level and enter the proxima payment term at the business purpose level for all the bill-to sites.
Exhibit Customer Profile Transactions-Terms
Consolidated Bill
1. Enter Transactions and Create Accounting
2. Submit Concurrent Program (Request or Function)
Next Period
Receipts
Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether the receipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied.
You can enter two types of receipts in Receivables:
Ø Standard: Payment (such as cash or a check) that you receive from your customers for goods or services.
Ø Miscellaneous: Revenue earned from investments, interest, refunds, and stock sales.
You can apply receipts to invoices, debit memos, deposits, guarantees, on-account credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. You can also create chargebacks or adjustments against these transactions.
If you do not specify a customer for a receipt, the receipt is unidentified. In this case, the receipt amount appears in the Unidentified field in the Receipts window. You cannot apply an unidentified receipt.
Note: You can view the detail accounting lines for an existing receipt in the form of a balanced accounting entry (i.e., debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as t-accounts.
Receipt StatusA receipt can have one of the following statuses:
· Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.
· Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed.
· Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts.
· Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts.
· Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non-sufficient funds or if you want to re-enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous transactions.
Standard Receipts
1. Enter the receipt information, including Receipt Number, Currency, Receipt Amount, GL Date, and Receipt Date. The default Receipt Date is the current date, but you can change it. If the Receipt Date is not in an open period, Receivables changes the GL Date to the last date of the most recent open period. You can change the GL Date, but it must be in an open or future period.
You can enter transactions in any currency defined in the system if you have at least one remittance bank account with a Receipts Multi-Currency flag set to Yes. If no such bank account exists, you are limited to entering only those currencies in which bank accounts exist. (The currency of a multiple currency bank account must be the same as your functional currency.)
If the currency for this receipt is different from your functional currency and you have not defined daily conversion rates, enter exchange rate information.
2. Enter a Payment Method. Receivables use the payment method to determine the accounting and remittance bank accounts for this receipt. You can only select payment methods that have remittance bank accounts that are in the same currency as the receipt.
3. If you are using manual document numbering, enter a unique Document Number. If you are using automatic document numbering, Receivables assigns this transaction a unique number when you save.
4. To help identify the customer for this receipt, enter a Transaction number (optional). Receivables display the customer associated with this transaction. If multiple customers have transactions with the number you entered, Receivables displays a window from which you can select a customer. If you enter a number here, Receivables displays the customer number in the Applications window when you apply this receipt.
5. If you did not enter a Transaction number and the receipt is not unidentified, enter customer information for this receipt, including Customer Name or Number and Bill-To Location. When you enter the customer, Receivables enters this customer's primary Bill-To Location, if one exists (you can change this value). If the system option Require Billing Location for Receipts is set to Yes, you must enter a Bill-To Location.
Attention: If you do not enter a Bill-To Location and the customer has no statement site, any unapplied or on-account receipt amounts will not appear on statements sent to this customer.
6. If you are manually entering an automatic receipt, enter a Bank Name or Account Number.
7. Open the Remittance tabbed region, then enter the receipt Deposit Date (optional). The default is either the deposit date entered at the batch level or, if there is no batch information, the receipt date. The default receipt maturity date is the deposit date.
8. Receivables derive the default remittance bank account from the payment method you entered. You can accept this value or enter any bank account assigned to the payment method if the bank account is in the same currency as that of the receipt or the Multi-Currency flag for the remittance bank is set to yes. Only bank accounts that are in your functional currency can accept multiple currency deposits.
9. To prevent the receipt Remittance bank from being automatically overridden during the remittance process, choose Don't Allow in the Override Bank Account field (optional). If you choose Allow, Receivables can automatically change the receipt remittance bank to the remittance batch bank during the remittance process.
10. If bank charges apply, enter an amount for Bank Charges. Bank charges may apply if the receipt's creation status is 'Cleared' (the clearance method of the associated receipt class must be set to 'Directly').
11. Save your work. If you entered a customer, the receipt amount appears in the unapplied field. Otherwise, the entire receipt amount appears in the unidentified field.
- Enter Header level information only
To view the accounting entries Tools>View Accounting
Accounting Entries for Unidentified Receipt
Unapplied Receipt:
- Enter the Customer Name and Press Tab button amount transferred from Unidentified to Unapplied
- View the accounting for Unapplied Receipt
Applied Receipt:
Press from the receipt window and enter specific transaction you can see the particular transaction or all the transaction of the customer.
On Account Receipts:
1. Enter Receipt & select customer
2. Press Apply button
3. Select “On Account” from the list of values and save.
Accounting for On Account Receipt
Chargeback (Receipt) Transaction
1. Enter Normal Transaction
2. Enter Partial Receipt
3. Apply receipt amount to transaction & create chargeback
4. Find Chargeback Transaction
Apply to Transaction & Save
· Enter the Type as Chargeback
· Enter the new due date and save, system will assign a Chargeback Number.
· Query the charge back Transaction from Transaction window.
- Transaction Class & Type will be Chargeback.
- Due date will be the date which you entered at the time of chargeback in Receipt.
Press more tab and see the Original Transaction number applied to Chargeback
Query Original Transaction
· The balance of Original Transaction will be Zero.
· Whenever you receive the amount from the customer apply that amount to Chargeback Transaction.
Receipt Adjustments
Prerequisites
· Receivable Activity
Process:
· Enter Standard Receipt
· Apply to Open Transaction
· Apply to Adjustments & Select Adjustment Activity
Apply to Open Transaction
Select Activity Name from List of Values and save, system will assign a number for adjustment
Apply to Adjustment & Selecting Activity Name
Activity names
Accounting entry for adjustment & observe Transaction Number applied to (for Adjustment system will pickup account code combination from Receivable Activity which you selected for)
Accounting for Adjustment
10. Remittances
Standard Remittance
Prerequisites:
· Receipt Class
· Bank
Process:
1. Enter Receipt
2. Standard Remittance
3. Select Receipts
4. Approve
5. Format
Different Statuses of Remittance Batch
· Started Creation
· Completed Creation
· Started Approval
· Completed Approval
· Started Formatting
· Completed Format
Standard Receipt
Standard Remittance
Enter Dates, Remittance Method as Standard, Receipt Class, Payment Method, Bank Details and Press Receipt.
Selecting Receipt for Remittance
Select Receipts which you want to remit to Bank and save. Press Approve and system will populate a Decision Box press yes
After Completed Approval re-query remittance batch and press Format button system will populate a Decision Box Press Yes
Receipt Status will be changed from Confirmed to Remitted
After successful receipt remittance go to Cash management and Select receipt and press clear transaction (Manually clear receipt)
Receipt Status will be changed from Remitted to Cleared
View Receipt History from Receipt window
Factored Remittance
Prerequisites
· Receipt Class with Remittance method Factored or Standard and Factoring
Process Steps
a) Create Receipt
b) Remittance with Factoring
c) Select Receipt for which you want to Factor
d) Submit Approval/Format
e) Clear Transaction in CM(optional)
f) Run Automatic Clearing for Receipts Program
a) Create Receipt
b) Remittance with Factoring
c) Select Receipts for which you want to Factor
d) Submit Approval/Format
Your can submit format without submitting approval, first system will run approval process and after format process.
Receipt status will be changed from Confirmed to Remitted
View accounting entries for Confirmed and Factored Receipts
e) Clear Transaction in CM (optional)
After this process go to Cash Management and manually clear transaction
Accounting entry will be
Dr Cash
Cr Short Term Dept
And Receipt Status will changed from Remitted to Cleared
f) Run Request “Automatic Clearing for Receipts” and view output file
Automatic Clearing for Receipts
Automatic Clearing for Receipts Program output
After successful completion of the above program accounting entry will be
Dr Short Term Dept
Cr Factor
Receipt status will changed from Cleared to Risk Eliminated
Miscellaneous Receipts
Prerequisites:
· Miscellaneous Cash Receivable Activity
Process:
· Enter Receipt
· Select Receipt Type as Miscellaneous
· Select Activity Purpose from list of values
Accounting Entry for Miscellaneous Receipt
Payment Netting
You can net receipts in Receivables. To net receipts, you apply a receipt against another open receipt, and then apply the resulting unapplied receipt balance to a transaction.
Open receipts include receipts that have:
· Unapplied cash
· On-account cash
Attention: When netting receipts, both receipts must be in the same currency.
Prerequisites:
· Receivable Activity – Payment Netting
Process:
a) Create Standard Receipt ( On-Account/Unapplied)
b) Create another Standard Receipt & Apply to on Account/Unapplied receipt
a) Create one receipt and apply the amount to on account.
b) Create another receipt and apply to on account receipt and open transaction
Observe New Receipt applied amount
View Accounting Entry for new receipt
Observe old receipt i.e., On Account Receipt changed to Applied Receipt
Aging Buckets
Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days past due, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports or view your customer accounts, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period.
Aging Buckets
Ageing Report View
Invoices with Rules
Invoicing and accounting rules let you create invoices that span several accounting periods. Accounting rules determine the accounting period or periods in which the revenue distributions for an invoice line are recorded. Invoicing rules determine the accounting period in which the receivable amount is recorded.
You can assign invoicing and accounting rules to transactions that you import into Receivables using AutoInvoice and to invoices that you create manually in the Transactions window.
(i) Accounting Rules
Use accounting rules to determine revenue recognition schedules for your invoice lines. You can assign a different accounting rule to each invoice line. Accounting rules let you specify the number of periods and the percentage of the total revenue to recognize in each period.
You can also specify whether the accounting rules are of Fixed or Variable Duration. Accounting rules of Fixed Duration span a predefined number of periods. Accounting rules of Variable Duration let you define the number of periods during invoice entry.
You can also create rules that will defer revenue to an unearned revenue account. This lets you delay specifying the revenue recognition schedule until the exact details are known. When these details are known, you use the Actions wizard to recognize the revenue.
(ii) Invoicing Rules
Use invoicing rules to determine when to recognize your receivable for invoices that span more than one accounting period. You can only assign one invoicing rule to an invoice.
Receivables provide the following invoicing rules:
o Bill In Advance: Use this rule to recognize your receivable immediately (see Figure 1 - 31 below).
o Bill in Arrears: Use this rule if you want to record the receivable at the end of the revenue recognition schedule (see Figure 1 - 32 below).
(iii) Account Sets
Account sets are templates used to create revenue and offset accounting distributions for individual invoice lines with accounting rules. These account sets enable you to split revenue for a line over one or more revenue or offset accounts. To meet your business requirements, you can change account sets before the Revenue Recognition program is run. After the Revenue Recognition program is run, you can change the individual GL distribution lines and Receivables automatically creates reversing GL entries. AutoAccounting creates the initial revenue and offset account sets for your invoice.
Revenue Recognition
The Revenue Recognition program identifies all new transactions and creates the revenue distributions for those transactions. The distributions are created for all periods, even in periods whose status is Not Open, using the rules associated with the transactions.
A) Invoice with “Accounting Rule Fixed Duration” & “Invoicing Rule In Advance”
1) Define Invoicing and Accounting Rules
2) Complete Transaction Invoicing Rule In Advance
3) Assign Accounting Rule
4) Run Revenue Reorganization Program
5) View Accounting/Distribution
Define Invoicing and Accounting Rules
Transaction with Invoicing Rule In Advance
Assign Accounting rule
Run Revenue Reorganization Program
Commit Work:
Yes: If you want to create the distribution records generated by this submission.
No: If you want to review the distributions first in the Revenue Recognition Execution report without actually creating the distribution records.
View Distribution Line
B) Invoice with “Accounting Rule Fixed Duration” & “Invoicing Rule in Arrears”
1) Define Invoicing and Accounting Rules
2) Complete Transaction with Invoicing Rule In Arrears
3) Assign Accounting Rule
4) Run Revenue Reorganization Program
5) View Report
Complete Transaction with Invoicing rule In Arrears
Assign Accounting Rule
View Report
C) Invoice with “Accounting Rule Variable Duration” & “Invoicing Rule In Advance”
1) Define Invoicing and Accounting Rules
2) Complete Transaction with Invoicing Rule In Arrears
3) Assign Accounting Rule
4) Run Revenue Reorganization report
5) View Report
Define Invoicing & Accounting Rues
Assign Invoicing Rules
Assign Accounting Rules
View Report (Program Output)
D) Invoice with “Accounting Rule Variable Duration” & “Invoicing Rule In Arrears”
1) Define Invoicing and Accounting Rules
2) Complete Transaction with Invoicing Rule In Arrears
3) Assign Accounting Rule
4) Run Revenue Reorganization Program
5) View Report
Assign Invoicing Rule in Transaction
Assign Accounting Rule
View Report (Program Output)
Collections
Oracle Receivables integrates with Oracle Advanced Collections to provide you with a Complete collections management solution. With this integration, all collections Activities take place from within Advanced Collections. Advanced Collections enables a simpler, more automated collections process flow for users, yet also supports a more complex collections approach with many powerful
Features.
Simpler Process Flow
users work primarily within one main screen to easily review accounts, take promises, and process payments, adjustments, and disputes, all while recording the interaction with the customer. Additionally, the Advanced Collections Collector's Work Queue displays a high-level list of all actionable work assigned to or owned by a collections agent. In this manner, collections activities are effectively "pushed" to the user, creating a simpler and more efficient user experience.
Powerful Collections Functionality
Behind the scenes, Advanced Collections employs configurable collections strategies that determine various collections approaches for different segments of your customers. A strategy can be as complex as necessary to meet your business requirements. For example, a strategy can automatically send a reminder letter about an imminent payment due, then send a dunning letter, and finally push a task to a collector to personally call the delinquent customer.
Complete the Collections Checklist and Questionnaire in Oracle Advanced Collections. Evaluate Advanced Collections menus and responsibilities to configure user access of product functionality Customize the preconfigured dunning letters in Oracle Advanced Collections according to your business needs, if you are sending dunning letters. Install XML Publisher, if you are sending dunning letters. Schedule concurrent processes in Oracle Advanced Collections.
Collector's Work Queue
• Search tool, Collections header and tabs
• Profile with preconfigured metrics
• History, Account, Transaction, Aging, Notes, Tasks
• Assign collectors using the AR Collector field
• View collections information by customer, account, bill to, or delinquency data Levels
• Process payments, Create promises, Enter disputes
• View invoices using Oracle Bill Presentment Architecture
• Run Receivables and Collections reports
• Preconfigured delinquency creation engine
• Preconfigured customer scoring engine
• Configurable dunning
Note: You perform all dunning activities in Oracle Advanced Collections. However, Oracle receivables provides you with the Dunning Letter Reprint - Historical Receivables Only program so that you can reprint historical Days Overdue dunning letters that were sent to your customers in a previous release of Receivables. Use this program to conduct collections research for a specific customer.
Aging
Viewing Account Balances by Aging Bucket
Receivables let you view your customer's outstanding account balances by aging bucket. Aging buckets are time periods in which you age and can review your debit items. For example, you can define an aging bucket that includes all debit items that are 1 to 30 days past due. You can define your own aging buckets or customize the aging buckets that Receivables provides.
When you view your customer balances by aging bucket, Receivables calculates and displays the total outstanding amount and the credits not aged for unapplied cash, on-account cash, on-account credits, and cash claims. You can modify your display by specifying an aging bucket or by choosing to age or summarize open credits.
Receivables select a transaction for aging if its GL date is before or the same as the current date. Once selected for aging, Receivables uses the following formula to determine the number of days past due for each transaction:
(Current Date) - (Due Date) = Days Past Due
To view a customer's outstanding account balance by aging bucket:
1. Navigate to the Customer Accounts window.
2. Enter selection criteria in the Find Customer Accounts window. For example, enter a Collector, account Status, or the low and high values of outstanding Balances, Open Credits, Credit Limits, or Amounts Past Due to view only those accounts. Leave a field blank if you do not want to limit your query to accounts matching that criteria.
3. Choose Find.
4. Select the account to view, then choose Aging.
5. To modify your display, choose Find from the Query menu, then enter selection criteria. For example, enter the aging bucket to use, choose whether to Age or Summarize Open Credits, or whether to Include Receipts at Risk. Leave a field blank if you do not want to limit your display to transactions matching that criteria.
6. Choose Find.
7. To view past due transactions within a specific aging bucket, select the bucket to view, and then choose Account Details.
Alternate method:
1. Navigate to the Aging window.
2. In the Find Aging window, enter the Customer Name or Number and the Aging Bucket to view.
3. To limit your query, enter selection criteria. For example, enter a specific currency, choose whether to Age or Summarize Open Credits and to include receipts at risk. Leave a field blank if you do not want to limit your display to transactions matching that criteria.
4. Choose Find.
5. To view the past due transactions within an aging bucket, select the bucket to view, then choose Account Details.
Regular correspondence is an effective way to create and maintain good relationships with your customers. Receivables provides three ways to correspond with your customers: printing account statements, printing dunning letters, and making customer calls.
Receivables lets you view all previous customer correspondence in the Correspondence window. You can view all previous contact with your customers, including dunning letters, customer calls, and account statements in this window.
To view previous customer correspondence:
1. Navigate to the Correspondence window.
2. To limit your display to only certain accounts, enter selection criteria. For example, enter a Collector name, or a range of Call Actions, Follow-Up Dates, Customer Names, or Transaction Numbers to select only those accounts. Leave a field blank if you do not want to limit the search to accounts matching that criteria.
3. Choose Find.
To view a list of statements generated for a customer, select the account, then open the Statements tabbed region.
To view dunning letters sent to a customer, select the account, then open the Dunning Letters tabbed region.
Suggestion: You can navigate to the Record a Call window by selecting an item and then choosing Call. You can view details for an account by selecting an item and then choosing Account Details.
Payment Terms
Receivables lets you define standard payment terms for your customers to specify the due date and discount date for their open items. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. For example, the payment term '2% 10, Net 30' indicates that a customer is allowed a two percent discount if payment is received within 10 days; after 10 days, the entire balance is due within 30 days of the transaction date with no applicable discount.
You can use payment terms to determine the amount of each installment. Receivables lets you either distributes tax and freight charges across all installments, or allocates all freight and tax amounts in the first installment of a split term invoice. You can use prepayment payment terms to indicate which business transactions require prepayment for goods and services. Receivables displays the active payment terms you define as list of values choices in the Customers, Customer Profile Classes, and Transactions windows.
Default Payment Terms Hierarchy
Receivables use the following hierarchy to determine the default payment term for your transactions, stopping when one is found:
1. Bill-to site
2. Customer Address
3. Customer
4. Transaction Type
Predefined Payment Terms
Receivables provides the following predefined payment terms:
· 30 NET: The balance of the transaction is due within 30 days.
· IMMEDIATE: The balance of the transaction is due immediately (i.e. on the transaction date). You can use this payment term with your chargebacks and debit memos.
Payment term window reference:
Name: Enter the Name of this payment term.
Base Amount: Enter the Base Amount for this payment term.
The default is 100, but you can change it. The base amount is the denominator for the ratio Receivables uses to determine the amount due for installments of invoices to which you assign this payment term. The sum of the relative amounts for all of the payment schedules that you define for these payment terms must be equal to the value that you specify as a base amount.
Allow Discount on Partial Payments: If you do not want to let your customers take discounts for partial payments on items associated with this payment term, then uncheck both the Allow Discount on Partial Payments check box as well as the check box for the Discount on Partial Payment system option.
Prepayment: Select the Prepayment check box if you are defining a prepayment payment term.
Receivables feeder systems, such as Oracle Order Management, can optionally implement business processes around prepayment payment terms to indicate that a particular business transaction requires the capture of funds before the delivery of a product or service.
Credit check: To associate a credit check with this payment term, check the Credit Check box.
Oracle Order Management uses this information to determine when to place an order on hold.
In Oracle Order Management, if the profile for an address does not have credit checking limits defined in a particular currency but the customer does, then the order passes credit check. If the address does not have limits in the currency and neither does the customer, then the order is compared to the customer limit in that currency.
Installment Options: Enter the Installment Option for items assigned to this payment term. This indicates how Receivables will allocate the freight and tax charged to transactions using this payment term. Choose 'Include tax and freight in first installment' to include all tax and freight charges in the first installment. Choose 'Allocate tax and freight' to distribute tax and freight charges across all installments.
Cutoff Days: If this payment term uses proxima terms, enter a Cutoff Day for inclusion in the monthly billing cycle. You can either enter a Day of the Month or select the Last Day of Month check box. Select the Last Day of Month check box to create a payment term to use with a consolidated billing invoice that includes all transactions created during the month that you specify.
If you are using the Consolidated Billing Invoices program, then you must enter values for the Day of Month and Months Ahead fields in the Due region of the Payment Schedule. Consolidated Billing does not use the Days or Date fields in the Due region.
Customers who use payment terms where the value for the Cutoff Day is greater than the value in the Due: Day of Month field should not enter a value of 0 in the Months Ahead field. This will result in the following erroneous scenario:
· Cutoff Day = 25
· Day of the Month = 15
· Months Ahead = 0
In this example, a consolidated billing invoice that is created on January 25 will be due before its creation date on January 15. To avoid this scenario, you must enter a value that is greater than 0 in the Months Ahead field.
Print Lead Days: If you want transactions assigned to this payment term to be printed before the due date, enter a number of Print Lead Days. Receivables will print this transaction x number of days before the due date, where x is the number of days you enter here.
Discount Basis: Enter the Discount Basis you want Receivables to use when calculating discounts for your invoices. Choose one of the following discount methods:
Invoice Amount: Choose this option to calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices.
Lines Only: Choose this option to calculate the discount amount based on only the line amounts of your invoices.
Lines, Freight Items and Tax: Choose this option to calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level.
Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices.
Seq: Enter a line number for the installment term that you are defining in the 'Seq' field. Enter a higher number for each installment term with a later due date. For example, if you create terms with 50% due in 15 days and 50% in 30 days, enter '1' in this field for the first line and '2' for the second line.
Relative Amount: Enter the Relative Amount for this payment term. This is the numerator of the ratio that Receivables uses to determine the amount due for this installment of these payment terms. The sum of the relative amounts for all of the payment schedules that you define for each payment term must be equal to the base amount for this term.
Days: Enter the number of Days after the invoice date that payment is due for this installment term (optional). For split payment terms, this number indicates the number of days after the invoice date that an installment is due.
Date: Enter the Date on which payment is due for this installment term (optional). If you do not complete this field, enter a value for either Due Days or both Day of Month and Months Ahead.
Day of Month: If you are defining proxima terms, enter the Day of Month that payment is due for this installment term. For example, if payment is due on the fifteenth of each month, enter '15.'
Months Ahead: If you are defining proxima terms and you entered a value for Day of Month, enter the Months Ahead to which this installment term of the proxima terms refer. For example, if you entered '15' for Day of Month and you enter '2' here, an invoice dated in May will have a due date of July 15.
% : Enter the discount percentage and number of Days for this payment term. For example, to give customers using this payment term a two percent discount if payment is received within ten days, enter '2' and '10' respectively.
Days: To limit the period of time that the discount for this installment's discount line will be active, enter the Date, day of the Month, and the number of Months Ahead for this discount's expiration date. Receivables uses these values to calculate the discount date during invoice entry.
Transaction Types:
Use transaction types to define the accounting for the debit memos, credit memos, on-account credits, chargebacks, commitments, invoices, and bills receivable you create in Receivables. Transaction types also determine whether your transaction entries update your customers' balances and whether Receivables posts these transactions to your general ledger.
If AutoAccounting depends on transaction type, Receivables uses the general ledger accounts that you enter here, along with your AutoAccounting rules, to determine the default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, and AutoInvoice clearing accounts for transactions you create using this type. For bills receivable, the accounts that you enter here determine the bills receivable, unpaid bills receivable, remitted bills receivable, and factored bills receivable accounts for a bill receivable.
You can associate transaction types with your invoice sources in the Transaction Sources window to speed data entry in the Transactions and Credit Transactions windows. Active transaction types appear as list of values choices in the Transactions, Reverse Receipts, Credit Transactions, and Transaction Sources windows, and for bills receivable in the Bills Receivable and Receipt Classes windows.
You can also define credit memo and invoice transaction types to use with AutoInvoice.
You should define your transaction types in the following order:
· credit memo transaction types
· invoice, debit memo, and chargeback transaction types
· bills receivable transaction types
· commitment transaction types
You must define your invoice transaction types before you define your commitment types.
Natural Application and Allow Overapplication Rules
The transaction type that you assign to a transaction indicates the type of application that is permitted for that transaction: natural application only, or overapplication.
The Natural Application Only and Allow Overapplication options determine how applications can affect the balance due for transactions using this type. Natural Application refers to the type of application, either positive or negative, that a transaction requires to become closer to zero. For example, invoices have a positive balance, so to reduce the balance due you need to create a negative application (such as apply a receipt).
Overapplication indicates whether you can overapply transactions using this type. For example, if you apply a $500 receipt to a $400 invoice, you overapply the invoice and reverse its sign (from positive to negative).
Window Reference:
Note:-The Operating Unit field is provided to support functionality planned for a future release.
Name: Enter a Name and Description for this transaction type.
Class: Enter a Class for this transaction type. Choose from the following classes: Invoice, Chargeback, Credit Memo, Debit Memo, Deposit, or Guarantee.
If you choose Deposit or Guarantee, Receivables sets Open Receivable and Post to GL to Yes, Allow Freight, Tax Calculation, and Allow Overapplication to No, Creation Sign to 'Positive Sign,' and Natural Application Only to Yes. You cannot change these options.
Open Receivable: If Open Receivable is set to Yes, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on-account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.
If this transaction type's class is not Deposit or Guarantee, indicate whether you want transactions with this type to update your customer balances by checking or unchecking the Open Receivable box.
Post to GL: To be able to post transactions with this type to your general ledger, check the Post To GL box. The default is the value you specified for the Open Receivables option. This box must be checked if the class is Deposit or Guarantee.
Terms: Enter the payment Terms to use for transactions with this transaction type.
Any payment terms entered at the customer level will override the payment terms that you enter here.
Printing Option: Choose a default Printing Option for transactions with this transaction type. Choose Print or Do Not Print. You can override this value when entering transactions.
Transaction Status: Choose a Transaction Status of Open, Closed, Pending, or Void. Use these statuses to implement your own invoice approval system. Enter 'Void' to void debit memos, on-account credits or invoices to which you assign this transaction type.
Allow Freight: To allow freight to be entered for transactions with this transaction type, check the Allow Freight box.
Tax Calculation: To let Receivables calculate tax for transactions with this transaction type, check the Tax Calculation box.
If you do not check this box, the Tax Code field in the Lines window will be optional, not required. If you do not enter a tax code on the transaction line, then Receivables will not perform tax calculations or create tax accounting entries for transactions with this transaction type (this is also true for transactions in Oracle Order Management and Oracle Sales and Marketing).
Creation Sign: Choose a Creation Sign. The default is Positive Sign for transaction types with a class of either Guarantee or Deposit. If you are using the Cash Basis accounting method, your transaction's creation sign must be Positive Sign, Negative Sign, or Any Sign. You cannot update this field after you enter transactions with this type.
Natural Application only: If this transaction type's class is not Deposit or Guarantee and you want to restrict the direction in which items with this transaction type can be updated by applications entered against them, check the Natural Application Only box. If you check this box, Receivables sets Allow Overapplication to No.
Note: If the Allow Overapplication box is checked and you then check the Natural Application Only box, Receivables automatically uncheck the Allow Overapplication box. To check the Allow Overapplication box again, you must first manually uncheck the Natural Application Only box. You can update these options.
For Cash Basis accounting, both check boxes are unchecked and you cannot change these options. In this case, the balance of transactions with this transaction type can be updated in any direction in the same sign.
Application Rule Set: Enter an Application Rule Set for this transaction type or select one from the list of values (optional). An Application Rule Set determines the default payment steps when you use the Applications window or AutoLockbox to apply receipts to transactions using this type. If you do not enter a rule set, Receivables uses the rule set in the System Options window as the default.
If this transaction type's class is not Deposit or Guarantee, and you did not check the Natural Application Only box, choose whether to Allow Overapplication against items with this transaction type by checking or unchecking this box. You can update these options.
If you use the Cash Basis accounting method, the default value is No and you cannot change it.
Invoice Type: If this transaction type's class is either Deposit or Guarantee, enter the Invoice Type to use for invoices entered against commitments or deposits with this transaction type. When you enter an invoice against either a deposit or a guarantee with this transaction type, the value you enter here is the default invoice transaction type.
Credit Memo Type:If this transaction type's class is Deposit, Guarantee, Debit Memo, or Invoice, enter the Credit Memo Type to use when crediting items with this transaction type (optional). When you enter a credit memo against an invoice with this transaction type, the value you enter here is the default credit memo transaction type.
Accounts: If this transaction type's class is Invoice, Chargeback, Credit Memo, Debit Memo, or Guarantee, then define the accounting for this transaction type in the Accounts tabbed region.
Bills Receivables: If this transaction type's class is Bills Receivables, then complete these fields in the Bills Receivables tabbed region:
Bills receivable transaction types indicate the type of bill receivable, such as accepted bill, promissory note, or unsigned bill, and define accounting and other attributes for bills receivable. You enter a transaction class of 'Bills Receivable' to enable the Bills Receivable tabbed region for entering bills receivable transaction type information.
Use the Signed and Issued by Drawee boxes to identify the type of bill receivable for this transaction type according to the combinations in this table:
TYPE OF BILL | Signed | Issued by Drawee |
Requires acceptance | Checked | Unchecked |
Issued by drawee | Unchecked | Checked |
Unsigned bill | Unchecked | Unchecked |
Deposit: If this transaction type's class is Deposit, then complete these fields in the Deposit tabbed region:
In the Allocation Basis field, indicate how you want to apply the balance of deposits with this transaction type to transactions.
You can select Lines Only to apply deposits to invoice lines only. Or, you can select Lines, Tax and Freight to include tax and freight amounts on invoices when applying deposits to transactions.
If you set the AR: Deposit Offset Account Source profile option to Transaction Type, then Receivables uses the Offset Account that you specify here to derive the offset account for deposits. Otherwise, Receivables uses AutoAccounting to derive the deposit's offset account.
Transaction Sources
Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows, and for bills receivable in the Bills Receivable and Bills Receivable Transaction Batches windows.
Note: A batch source provides default information, which you can optionally change at the transaction level.
You can define two types of transaction batch sources:
· Manual: Use manual batch sources with transactions that you enter manually in the Transactions and Transactions Summary windows, and for bills receivable transactions.
Credit memos that are created by the Credit Memo workflow also use manual batch sources.
· Imported: Use imported batch sources to import transactions into Receivables using AutoInvoice.
You can make a batch source inactive by unchecking the Active check box and then saving your work. Receivables does not display inactive transaction batch sources as list of values choices or let you assign them to your transactions.
Bills receivable batch sources: After you define batch sources for bills receivable, enter a batch source in the profile option AR: Bills Receivable Batch Source.
Transaction Source window reference:
Note: The Operating Unit field is provided to support functionality planned for a future release.
Name: Enter a unique Name and a Description for this transaction source.
Type: Enter a Type of 'Manual' or 'Imported.' For bills receivable batch sources, enter 'Manual.'
Description: Enter the description
Effective Dates: Enter the range of Effective Dates for this source. The Start date is the current date, but you can change it. If you do not enter an end date, this transaction batch source will be active indefinitely.
Automatic Batch Numbering: If this is a Manual source and you want to automatically number new batches you create using this source, or if this is a Manual source for bills receivable and you want to generate bills receivable automatically, check the Automatic Batch Numbering box and enter a Last Number. For example, to start numbering your batches with 1000, enter 999 in the Last Number field. If you are defining an Imported transaction batch source, Receivables automatically numbers the batch with the batch source name - request ID.
Automatic Transaction Numbering: To automatically number new transactions you create using this source, check the Automatic Transaction Numbering box and enter a Last Number. You can use automatic transaction numbering with both Imported and Manual sources.
Note: Receivables automatically updates the Last Number fields, so you can review this batch source later and see the last transaction number that was generated (note that this number is only an approximation due to caching).
Document Number to Transaction Number box: To use the same value for both the document number and the transaction number for transactions assigned to this source, check the Copy Document Number to Transaction Number box (optional).
Suggestion: If your application uses Gapless document sequences, check this box if you require gapless transaction numbers. Checking this box ensures that transaction numbers are generated sequentially and there are no "missing" numbers.
Copy Transaction Information Flexfield to Credit Memo: Select the Copy Transaction Information Flexfield to Credit Memo check box if you want to copy an invoice's Transaction Information flexfield data to a related credit memo that uses this batch source (optional).
This check box is enabled only if this source's type is Manual.
Whenever you save a credit memo, Receivables checks the batch source. If the source type is Manual and the box is selected, then Receivables copies Transaction Information flexfield data, if available on the invoice, to the credit memo.
Receipts Handling for Credits:
Indicate your enterprise's policy for automatic receipt handling for imported credits against paid invoices (optional).
Set this option only if you want AutoInvoice to automatically evaluate imported credits for receipt handling.
· Select On Account if you want AutoInvoice to place any credit requests on account.
· Select Credit Card Refund if you want AutoInvoice to automatically create a credit card refund for the amount of the requested credit.
By default, no option is selected.
Note: This setting affects only transactions paid by credit card or purchase card. Transactions paid by other payment types are always put on account.
Additionally, only imported sources use this setting. Manual sources ignore any value entered here.
Reference Field Default Value: Enter the Invoice Transaction Flexfield attribute that you want to appear in the Reference field of the Transactions window. Receivables uses this to further identify the invoice and displays this value under the Reference column in the invoice list of values in the Applications window.
The default value is INTERFACE_HEADER_ATTRIBUTE1.
Standard Transaction Type: Enter the Standard Transaction Type for this batch source. When you choose a batch source during transaction entry, this is the default transaction type. You can define new transaction types in the Transaction Types window.
Credit Memo Batch Source: To number your credit memos created against invoices and commitments with this source differently than the invoices or commitments they are crediting, enter a Credit Memo Batch Source. Before you can assign a credit memo batch source, you must first define your credit memo batch sources using this window. If you do not specify a credit memo batch source, Receivables enters the invoice or commitment batch source here.
Standard Memo Lines
Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for example, 'Consulting Services'). You can assign memo lines to debit memos, on-account credits, debit memo reversals, chargebacks, commitments, and invoices. Receivables displays your standard memo lines as list of values choices during credit memo entry in the Credit Transactions window and during invoice entry in the Lines window. When you create chargebacks and debit memo reversals, you can either use the standard line that Receivables provides or enter your own. You can create an unlimited number of standard memo lines.
If AutoAccounting depends on standard line items, Receivables uses the revenue account that you enter here along with your AutoAccounting setup to determine the default revenue, freight, AutoInvoice Clearing, Tax, Unbilled Receivable, Unearned Revenue, and Receivable accounts for invoices with this line item.
Warning: When you enter a standard memo line in the Lines window, place the cursor in the Description field and then use the list of values to select a memo line. If AutoAccounting is based on Standard Lines and you type or copy the memo line information, Receivables will not generate the proper accounting entries for this line when you save.
Receivables lets you enter tax code, unit list price, and unit of measure information for each standard memo line. You can also specify a standard invoicing and accounting rule for each standard memo line.
Standard memo line window reference:
Note: The Operating Unit field is provided to support functionality planned for a future release.
Name: Enter the Name and a Description of this memo line. Receivables prints this description on your debit memo, on-account credit, debit memo reversal, chargeback, commitment, or invoice.
Note: If you are modifying your chargeback or debit memo reversal standard line, Receivables lets you embed variables within the text of your description. For example, you may want to print the receipt number on your debit memo reversals. To do this, enter & receipt_number & within your the text of your description. Receivable then prints the corresponding receipt number on your debit memo reversal. The following are valid variable types: receipt_number for debit memo reversals and invoice_number for invoices, chargebacks, and debit memos.
Type: Choose a line type of Chargeback Line, Charges, Debit Memo Receipt Reversal, Freight, Line, or Tax.
Tax Code: Enter the ad hoc tax code to associate with this standard line (optional). If you are defining a standard invoice line and AutoAccounting depends on tax codes, Receivables uses the tax code you enter here along with your AutoAccounting rules to determine the default tax account for invoices with this standard line.
Unit List Price: Enter the Unit List Price for this memo line (optional). Receivables displays this price on the debit memos, on-account credits, chargebacks, and invoices you create using this standard line.
Unit of Measure: If the type of this memo line is 'Line,' enter a Unit of Measure. Receivables defaults the unit of measure to this value when you choose this standard line item during invoice or memo entry.
Revenue Account : Enter the Revenue Account for this memo line (optional). When you create a debit memo or on-account credit, this revenue account will be the default for each standard memo line that you select. When you create debit memo reversals or chargebacks, Receivables uses the Revenue Flexfield from the original receivable item as the credit account. Therefore, Receivables does not let you specify a value for the Revenue Flexfield for your debit memo reversal and chargeback standard lines.
Note: AutoAccounting lets you use the values that you specify for the segments of your standard lines' revenue accounts to determine the revenue accounts of your invoices. Receivables uses these revenue account segment values in combination with the rest of your AutoAccounting structure to determine the default revenue, freight, AutoInvoice Clearing, Tax, Unbilled Receivable, Unearned Revenue, and Receivable accounts for invoices which include this standard invoice line.
Invoicing Rule: Enter the Invoicing Rule to use with this standard line (optional). Receivables does not currently use this information when you select a standard line (in the Lines window during invoice entry) to which you have assigned a standard invoicing rule. Oracle Order Management assigns standard invoicing rules to standard lines for orders that you import through AutoInvoice.
Accounting Rule: Enter the Accounting Rule to use with this standard line (optional). If you select a standard line during invoice entry to which you have assigned a standard accounting rule, Receivables uses this rule to determine this line's revenue recognition schedule. Oracle Order Management lets you assign standard accounting rules to standard lines for orders that you import through AutoInvoice.
Active Dates: Enter the range of Active Dates for this standard line. The start date is today's date, but you can change it. If you do not enter an end date, this memo line will be active indefinitely.
Note: You can have only one line type of Chargeback Line active at a time.
Accounting Rules
Define accounting rules to create revenue recognition schedules for your invoices. Accounting rules determine the number of periods and percentage of total revenue to record in each accounting period. You can use accounting rules with transactions that you import into Receivables using AutoInvoice and with invoices that you create manually in the Transaction windows. You can define an unlimited number of accounting rules.
When you run the Revenue Recognition program for an invoice that is associated with one or more accounting rules, Receivables creates the invoice's revenue distributions for the period or periods in which the rules fall.
Note: Revenue Recognition creates accounting distributions for all periods of status Open, Future, or Not Open. If any period has a status of Closed or Close Pending, then Revenue Recognition creates the distributions in the next Open, Future, or Not Open period.
Depending on your business needs, you may require deferred accounting rules, which you can create by selecting the Deferred Revenue check box during rule definition. Deferred accounting rules let you defer revenue to an unearned revenue account until you are ready to specify the revenue recognition schedule.
Attention: Invoicing and Accounting Rules are not applicable if you are using the Cash Basis method of accounting. If you use the Cash Basis method, AutoInvoice will reject any transaction lines that are associated with invoice or accounting rules.
If you want to credit an invoice that uses invoice and accounting rules to schedule revenue and billed receivable recognition, you can specify how you want to adjust this invoice's revenue account assignments by choosing a Rules Method in the Credit Memos window.
Accounting rule window reference:
Name: Enter a Name for this accounting rule.
Type: Enter an accounting rule Type. Enter 'Accounting, Fixed Duration' to prorate revenue recognition evenly over a predefined period of time. The revenue recognition schedule is always the same every time you choose this accounting rule. For example, if you have four schedules for your rule with this type, you will recognize twenty-five percent of your revenue at the end of each schedule.
Enter 'Accounting, Variable Duration' to be able to specify the number of periods over which you want to recognize revenue for invoices to which you assign this rule. You can assign this type of accounting rule to invoices that you manually enter in the Transaction window or import into Receivables using AutoInvoice. The revenue recognition schedule changes for invoices that are assigned this type of accounting rule depending upon the value that you either pass through AutoInvoice or specify when you manually enter an invoice.
Period: Enter the Period to use for your accounting rule schedule. You can choose from any of the Period Types you defined, but you can only choose a period type that has overlapping dates if it is an adjusting period. In addition, you can only choose 'Specific Date' as your period type for accounting rules to which you have assigned a type of 'Accounting, Fixed Duration.' You can only update this field for the accounting rule 'IMMEDIATE.'
Number of Periods: If this accounting rule type is 'Accounting, Fixed Duration,' enter the Number of Periods to use for your accounting rule schedule. For example, if you entered a period of 'Weekly' and you enter '3' here, Receivables creates a rule schedule for three weekly periods.
Deferred Revenue: If you want to delay specifying the revenue recognition schedule for this rule, check the Deferred Revenue check box. If you select this check box, then revenue is deferred to an unearned revenue account, and you must later use the Actions wizard to recognize the revenue.
Schedule: Define your revenue recognition schedule for this accounting rule. Enter the percentages of revenue to recognize within each period of your accounting rule.
· If this accounting rule type is 'Accounting, Fixed Duration,' Receivables displays a rule schedule according to the period and number of periods you entered. Receivables determines the schedule by evenly prorating all the revenue across all periods (you can change this information). The sum of all periods for this type must equal 100 percent.
· If this accounting rule type is 'Accounting, Variable Duration,' you do not need to enter any information. Receivables does not display the default rule schedule for an accounting rule of this type because the number of periods is unknown. However, if you want to recognize a specific revenue percentage in the first period, you can enter that percentage here. In this case, Receivables prorates the remaining revenue percentage across the remaining periods. Receivables uses the number of periods that you either pass through AutoInvoice or enter manually in the Transaction window to determine the payment schedule of your accounting rule.
· If this accounting rule type is 'Accounting, Fixed Duration,' and you choose Specific Date as your period, enter specific dates for each period of the revenue recognition schedule for this rule.
Deferred revenue Rules
You create deferred accounting rules by selecting the Deferred Revenue check box in the Invoicing and Accounting Rules window during rule definition. When you use deferred accounting rules, the Revenue Recognition program creates a single distribution per line that posts to an unearned revenue GL account. You later earn the revenue using the Actions wizard.
You can use deferred accounting rules only for invoices that are assigned the Bill in Advance invoicing rule. If the invoicing rule on a transaction is Bill in Arrears, the Revenue Recognition program ignores the deferred flag.
If you use a deferred accounting rule with a single accounting period, Receivables recognizes the revenue in the period that you specify with the Actions wizard.
If you use a deferred accounting rule with multiple accounting periods, Revenue Accounting creates the revenue recognition schedule based on the rule, and the start date is determined by the GL start date that you entered using the Actions wizard. If the GL start date occurs in a closed accounting period, Revenue Accounting posts that portion of revenue into the subsequent open accounting period.
If you use a non-deferred accounting rule with multiple accounting periods, Revenue Accounting uses the schedule created by the Revenue Recognition program. If an accounting period is closed, Revenue Accounting posts that portion of revenue into the subsequent open accounting period.
AutoAccounting
Define AutoAccounting to specify how you want Receivables to determine the general ledger accounts for transactions that you enter manually or import using AutoInvoice. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts using this information.
You can control the value that AutoAccounting assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account.
You must define AutoAccounting before you can enter transactions in Receivables. When you enter transactions in Receivables, you can override the default general ledger accounts that AutoAccounting creates.
AutoAccounting window reference:
Note: The Operating Unit field is provided to support functionality planned for a future release.
1. Enter the Type of account to define. Choose from the following:
· AutoInvoice Clearing: The clearing account for your imported transactions. Receivables use the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only use the clearing account if you have enabled this feature for the invoice batch source of your imported transactions.
· Bills Receivable: The bills receivable account for your transaction. Receivables use this account when you exchange transactions for bills receivable.
· Factored Bills Receivable: The factored bills receivable account for your bills receivable transactions.
· Freight: The freight account for your transaction.
· Receivable: The receivable account for your transaction.
· Remitted Bills Receivable: The remitted bills receivable account for your bills receivable transactions.
· Revenue: The revenue and finance charges account for your transaction.
· Tax: The tax account for your transaction.
· Unbilled Receivable: The unbilled receivable account for your transaction. Receivables use this account when you use the Bill In Arrears invoicing rule. If your accounting rule recognizes revenue before your invoicing rule bills it, Receivables uses this account.
· Unearned Revenue: The unearned revenue account for your transaction. Receivables use this account when you use the Bill In Advance invoicing rule. If your accounting rule recognizes revenue after your invoicing rule bills it, Receivables uses this account.
· Unpaid Bills Receivable: The unpaid bills receivable account for your bills receivable transactions.
2. For each segment, enter either the table name or constant value that you want Receivables to use to get information. When you enter an account Type, Receivables displays all of the segment names in your Accounting Flexfield Structure. Segments include such information as Company, Product, Department, Account, and Sub-Account. Receivables lets you use different table names for different accounts. Choose one of the following table names:
· Bill To Site: Use the bill-to site of the transaction to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account.
· Drawee Site: Use the drawee site table to determine this segment of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account.
· Remittance Banks: Use the remittance banks table to determine this segment of your factored bills receivable and remitted bills receivable account.
· Salesperson: Use the salesperson's table to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with this salesperson. If you choose this option for your unbilled receivable account, Receivables uses the receivable account associated with this salesperson. If the transaction has a line type of "LINE" with an inventory item of freight ("FRT"), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
· Standard Lines: Use the standard memo line or inventory item on the transaction to determine this segment of your revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to this standard memo line item or inventory item. If the transaction has a line type of "LINE" with an inventory item of freight ("FRT"), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
· Taxes: Enter this option to use tax codes when determining your tax account.
· Transaction Types: Use the transaction types table to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account, and of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account. If the transaction has a line type of "LINE" with an inventory item of freight ("FRT"), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.
3. If you did not enter a Table Name, enter a Constant value for this segment, or select one from the list of values.
Enter a Constant value if you want AutoAccounting to always use the same value for this Accounting Flexfield segment. Be sure to enter information that is valid for this segment. For example, if you defined your Company flexfield segment as a two-character segment with valid values ranging from 00 to 10, you must enter a two-character value within this range.
Approval Limits
Use the Approval Limits window to define approval limits for adjustments created in Receivables, requests for credit memos initiated from iReceivables, and write-offs for receipts.
When you enter an adjustment that is outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.
Receivables use approval limits that have a document type of Adjustment when you create an adjustment in the Adjustments, Submit Auto Adjustments, and Approve Adjustments windows.
The Credit Memo Request Approval Workflow uses approval limits that have a document type of Credit Memo when forwarding credit memo requests from iReceivables. The workflow sends a notification to an approver if the request is within the approval limit range for the currency and reason code specified.
When you write off an unapplied receipt amount or an underpayment on a receipt, Receivables uses approval limits that have a document type of Receipt Write-off. You cannot write off a receipt amount that is outside your approval limit range.
You define Adjustment approval limits by currency and dollar amount. You define Credit Memo approval limits by reason type, currency, and dollar amount. You define Receipt Write-off approval limits by currency and dollar amount. The approval limits for write-offs are separate from, but cannot exceed, the system level write-off amounts that you define in the System Options window. You must specify both lower and upper approval limits for each approver.
Receivables Activities:
Define receivables activities to default accounting information for certain activities, such as miscellaneous cash, discounts, finance charges, adjustments, and receipt write-off applications.
Activities that you define appear as list of values choices in various Receivables windows. You can define as many activities as you need.
The Tax Code Source you specify determines whether Receivables calculates and accounts for tax on adjustments, discounts, finance charges, and miscellaneous receipts assigned to this activity. If you specify a Tax Code Source of Invoice, then Receivables uses the tax accounting information defined for the invoice tax code(s) to automatically account for the tax. If the Receivables Activity type is Miscellaneous Cash, then you can allocate tax to the Asset or Liability tax accounts that you define for this Receivables Activity.
Receivables uses finance charge activity accounting information when you assess finance charges in your statements and dunning letters.
Query the Chargeback Adjustment activity that Receivables provides and specify GL accounts for this activity before creating chargebacks in Receivables.
You can make an activity inactive by unchecking the Active check box and then saving your work.
Attention: Once you define an activity, you cannot change its type. However, you can update an existing activity's GL account, even if you have already assigned this activity to a transaction.
Activity Types
An activity's type determines whether it uses a distribution set or GL account and in which window your activity appears in the list of values. You can choose from the following types:
Adjustment: You use activities of this type in the Adjustments window. You must create at least one activity of this type.
Note: In the Adjustments window, you cannot select the Adjustment Reversal, Chargeback Adjustment, Chargeback Reversal, and Commitment Adjustment activities to manually adjust transactions. These four activities are reserved for internal use only.
When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities. When your customers invoice against their commitments, Receivables automatically adjusts the commitment balance and generates an off-setting adjustment against the invoice using the Commitment Adjustment activity.
Bank Error: You use activities of this type in the Receipts window when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Oracle Cash Management.
Claim Investigation: You use activities of this type in the Receipts Applications and QuickCash windows when placing receipt overpayments, short payments, and invalid Lockbox transactions into claim investigation. The receivable activity that you use determines the accounting for these claim investigation applications. For use only with Oracle Trade Management.
Credit Card Refund: You use activities of this type in the Receipts Applications window when processing refunds to customer credit card accounts. This activity includes information about the General Ledger account used to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.
Earned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received within the discount period (determined by the transaction's payment terms).
Endorsements: The endorsement account is an offsetting account that records the endorsement of a bill receivable. This is typically defined with an Oracle Payables clearing account.
Finance Charge: You use activities of this type in the Customers and System Options window. You must define a finance charge activity if you include finance charges on your statements or dunning letters.
Miscellaneous Cash: You use activities of this type in the Receipts window when entering miscellaneous receipts. You must create at least one activity of this type.
Payment Netting: You use activities of this type in the Applications window and in the QuickCash Multiple Application window when applying a receipt against other open receipts.
The GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the clearing account used when offsetting one receipt against another receipt. The Tax Code Source field defaults to None.
You can define multiple receivables activities of this type, but only one Payment Netting activity can be active at any given time.
Prepayments: Receivables uses activities of this type in the Applications window when creating prepayment receipts. When the Prepayment activity type is selected, the GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the default account for prepayment receipts that use this receivables activity. The Tax Code Source field defaults to None. You can define multiple receivables activities of this type, but only one prepayment activity can be active at any given time.
Receipt Write-off: You use activities of this type in the Receipts Applications and the Create Receipt Write-off windows. The receivable activity that you use determines which GL account is credited when you write off an unapplied amount or an underpayment on a receipt.
Short Term Debt: You use activities of this type in the GL Account tabbed region of the Remittance Banks window. The short-term debt account records advances made to creditors by the bank when bills receivable are factored with recourse. Receivables assigns short-term debt receivables activities to bills receivable remittance payment methods.
Unearned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received after the discount period (determined by the transaction's payment terms).
Auto cash Rule Sets:
Define AutoCash Rule Sets to determine the sequence of AutoCash Rules that Post QuickCash uses to update your customer's account balances. You specify the sequence and the AutoCash Rules for each AutoCash Rule Set. The AutoCash Rule Sets you define display as list of values choices in the Customers, Customer Addresses, Customer Profile Classes, and the System Options windows. Post QuickCash first checks the customer site, then the customer profile class, and finally at the system options level to determine the AutoCash Rule Set to use.
Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customer's credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customer's credit profile to apply the receipt. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules apply, Receivables places the remaining amount Unapplied or On-Account, depending on how you set the Remaining Remittance Amount option for the rule set.
If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except 'Apply to the Oldest Invoice First'). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence.
You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.
AutoCash Rule set window reference:
Name: Enter the Name of this AutoCash rule set.
Description: Enter a description for this AutoCash rule set (optional).
Discounts: Enter the type of Discount you want to automatically give to your customer for this AutoCash Rule Set. Choose one of the following Discount options:
· Earned Only: Your customer can take earned discounts according to the receipt terms of sale. You negotiate earned discount percentages when you define specific receipt terms. You can enter this option if Allow Unearned Discounts is set to Yes in the System Options window. In this case, Receivables only allows earned discounts for this AutoCash Rule Set.
· Earned and Unearned: Your customer can take both earned and unearned discounts. An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No.
· None: Your customer cannot take discounts (this is the default).
Items in Dispute: To include transactions in dispute when calculating your customer's open balance, check the Items in Dispute check box.
Finance Charges: To include finance charges when calculating your customer's open balance, check the Finance Charges check box.
Automatic Matching Rule
Remaining Remittance Amount: If this rule set will include the Apply to the Oldest Invoice First rule, choose how you want to apply any Remaining Remittance Amount. Receivables uses this value to determine how to enter the remaining amount of the receipt if none of the AutoCash Rules within this rule set apply. Choose 'Unapplied' to mark remaining receipt amounts as Unapplied. Choose 'On-Account' to place remaining receipt amounts On-Account.
Apply Partial Receipts: To automatically apply partial receipts when using the Apply to the Oldest Invoice First rule, check the Apply Partial Receipts check box. A partial receipt is one in which the receipt minus the applicable discount does not close the debit item to which this receipt is applied.
The applicable discount that Receivables uses for this rule depends upon the value you entered in the Discounts field for this AutoCash Rule Set. If you exclude finance charges (by setting Finance Charges to No) and the amount of your receipt is equal to the amount of the debit item to which you are applying this receipt minus the finance charges, Receivables defines this receipt as a partial receipt. In this case, Receivables does not close the debit item because the finance charges for this debit item are still outstanding.
If Apply Partial Receipts is set to No, this AutoCash Rule Set will not apply partial receipts and will either mark the remaining receipt amount 'Unapplied' or place it on-account, depending on the value you entered in the Remaining Remittance Amount field
Seq: Enter a Sequence number to specify the order of each rule in this AutoCash Rule Set (optional). Receivables uses the rule assigned to sequence 1, then sequence 2, and so on when applying receipts using this AutoCash Rule Set.
Auto Cash Rule: Enter one or more AutoCash Rules for this AutoCash rule set. Choose from the following AutoCash rules:
Apply to the Oldest Invoice First: This rule matches receipts to debit and credit items starting with the oldest item first. This rule uses the transaction due date when determining which transaction to apply to first. This rule uses the values you specified for this AutoCash Rule Set's open balance calculation to determine your customer's oldest outstanding debit item.
Post QuickCash uses the next rule in the set if any of the following are true:
· all of your debit and credit items are closed
· the entire receipt amount is applied
· it encounters a partial receipt application and Allow Partial Receipts is set to No for this AutoCash Rule Set
· the next oldest debit item includes finance charges and Finance Charges is set to No for this AutoCash Rule Set
This rule marks any remaining receipt amount 'Unapplied' or places it on-account, depending on the value you entered in the Remaining Remittance Amount field for this AutoCash Rule set .
Clear the Account: Post QuickCash uses this rule only if your customer's account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer's account balance, Post QuickCash uses the next rule in the set. This rule calculates your customer's account balance by using the values you specified for this AutoCash Rule Set's open balance calculation and the number of Discount Grace Days in this customer's profile class. This rule also includes all of this customer's debit and credit items when calculating their account balance. This rule ignores the value of the Apply Partial Receipts option.
This AutoCash Rule uses the following equation to calculate the open balance for each debit item:
Open Balance = Original Balance + Finance Charges - Discount
Receivables then adds the balance for each debit item to determine the customer's total account balance. The 'Clear the Account' rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an Unapplied or On-Account receipt to a debit item.
Note: The discount amount for each item depends upon the payment terms of the item and the value of the Discounts field for this AutoCash Rule Set. The number of Discount Grace Days in this customer's credit profile, along with the payment terms assigned to their outstanding invoices, determine the actual due dates of each debit item.
Clear Past Due Invoices: This rule is similar to the 'Clear the Account' rule because it applies the receipt to your customer's debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due. A debit item is considered past due if its due date is earlier than the receipt deposit date. This rule considers credit items (i.e. any pre-existing, unapplied receipt or credit memo) to be past due if the deposit date of the receipt is either the same as or later than the deposit date of this pre-existing receipt or credit memo. In this case, this rule uses a pre-existing receipt or credit memo before the current receipt for your AutoCash receipt applications.
If this AutoCash Rule Set's open balance calculation does not include finance charges or disputed items, and this customer has past due items that are in dispute or items with balances that include finance charges, this rule will not close these items. This rule ignores the value of the Apply Partial Receipts option.
Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the 'Clear Past Due Invoices' rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date. When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer's credit memos and past due invoices.
A debit item is considered past due if the invoice due date is earlier than the deposit date of the receipt you are applying. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer's account balance. For example, if you are applying a receipt with a receipt date of 10-JAN-93, credit memos that have a transaction date (credit memo date) on or earlier than 10-JAN-93 will be included. Credit memos do not have payment terms, so they are included in each group.
Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or chargeback that has a remaining amount due exactly equal to the receipt amount. This rule uses the values that you enter for this AutoCash Rule Set's open balance calculation to determine the remaining amount due of this customer's debit items. For example, if Finance Charges is No for this rule set and the amount of this receipt is equal to the amount due for a debit item minus its finance charges, this rule applies the receipt to that debit item. If this rule cannot find a debit item that matches the receipt amount, Post QuickCash looks at the next rule in the set. This rule ignores the value of the Apply Partial Receipts option.
Application Rule Sets
Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction's line, tax, freight, and finance charges.
Receivables provides the following application rules:
· Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.
· Line and Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
· Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.
Note: In an application rule set, each line type (line, freight, and tax) must appear once and only once.
Application rule set window reference:
Application Rule Set: Enter a Name and Description for this rule set.
Seq: Enter the Sequence number for this application rule. Receivables applies payments in this sequence, beginning with the lowest sequence number.
Note: You cannot enter a sequence number for the Overapplication rule. By default, this rule is last in the sequence for each application rule set.
Rule: Enter an application Rule. Each rule will correspond to a line type (for example, lines, freight, or charges), so you should give your rule a descriptive name. Each rule set must have at least one application rule.
Attention: Receivables automatically assigns the Overapplication rule to each application rule set. You cannot delete this rule. The Overapplication rule applies any remaining amount after the balance due for each item has been reduced to zero. If the transaction type of the debit item allows overapplication, this rule prorates the remaining amount between each line and its associated tax amount, making these amounts negative. If the transaction type does not allow overapplication, you can either place the remaining amount on-account or leave it 'Unapplied'.
Rule details : Enter Rule Details for this application rule. This section indicates the type of charges and the tax handling for this rule. Choose a Type of Line, Freight, or Charges. You need to enter at least one type for your rule set.
Tax Treatment: If you chose a Type of 'Line', choose a Tax Treatment. Choose one of the following:
· Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
· Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
· After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated tax.
· Note: The default Tax Treatment for your Freight and Charges types is None. This option ignores tax, since you cannot tax freight and charges in Receivables. You cannot choose None for your Line type.
Rounding Corrections: To automatically adjust this line type to account for any rounding corrections within this rule set, check the Rounding Correction box. When an amount is prorated among several line types, Receivables must use one of the line types to account for the rounding adjustment. Each application rule set must have one and only one rounding correction line type.
Suggestion: Assign the Rounding Correction to the line type that is usually the largest portion of your invoices. By doing this, the rounding correction will have the least effect on the overall remaining and applied amounts for this line type.
- Repeat the previous steps for each rule you want to add to this rule set.
Freeze box: When you are satisfied with this rule set definition, check the Freeze box. Receivables verifies that your application rule set is defined properly and that it does not violate any basic application guidelines. If this rule set fails validation, Receivables displays an error message. In this case, modify your rule set definition, then check the Freeze box again to revalidate it.
Attention: A rule set must be 'frozen' before you can assign it to a transaction type or use it as your default rule it in the System Options window. Additionally, after you freeze an application rule set, you cannot update or delete it.
Distribution Sets
Define distribution sets to account for your non-invoice related receipts. These receipts can include refunds, revenue from the sale of stock, as well as interest and investment income. Receipts that are not related to an invoice are known as miscellaneous receipts in Receivables.
Distribution sets are predefined groups of general ledger accounting codes that determine the credit accounts for positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts. Distribution sets also let you speed your receivables accounting by reducing time spent on data entry. You can also use distribution sets to apply percentages of other receipts to different accounts.
You can create an unlimited number of distribution set lines for each distribution set. The total distribution lines must equal 100% before you can save your distribution set.
Receivables displays active distribution sets as list of values choices in the Transactions and Receivables Activities windows.
You can make a distribution set inactive by unchecking the Active check box, and then saving your work.
Receipt Sources
Define receipt batch sources to provide default values for the receipt class, payment method, and remittance bank account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.
You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source. If you specify a default receipt batch source, Receivables displays this source in the Receipt Batches window when you create your receipt batches.
When you select a receipt batch source to enter receipts, Receivables automatically uses the Cash, Receipt Confirmation, Remittance, Factoring, Short Term Debt, Bank Charges, Unapplied Receipts, Unidentified Receipts, On-Account Receipts, Earned and Unearned Discounts, and Bills Receivable account information you assigned to the payment method for this batch source. The payment method accounts for the receipt entries and applications you make using this receipt batch source.
Receivables will issue a warning if you enter a receipt source that includes a payment method that has activities allocated to more than one company. Allocating activities to more than one company will cause some reconciliation reports to distribute data of previously entered transactions across multiple companies. Therefore, information regarding a particular receipt may be distributed across multiple company reports. For example, the Applied and Earned Discount amounts in the Applied Receipt Register would be shown across multiple company reports if you allocated them to different companies.
Receivables provides the automatic receipt source 'Automatic Receipts.' You cannot update this predefined receipt source except for the Last Number field. All of the receipt batch sources you define are created with a Receipt Source Type of Manual.
Receipt Classes
Define receipt classes to determine the required processing steps for receipts to which you assign payment methods with this class. These steps include confirmation, remittance, and reconciliation. For example, you must create and remit a direct debit, but you must create, confirm, and remit a bills receivable remittance. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared.
Receivables uses the payment method you assign to a receipt class to determine how to account for receipts you create using this receipt class.
For each receipt class, you can specify a creation method, remittance method, and whether to require bank clearance for receipts that you assign to this class. If you are defining a receipt class for bills receivable creation payment methods, then Require Confirmation, Remittance Method, and Clearance Method are disabled.
Receivables lets your customers pay their invoices via credit cards and electronic funds transfer (both non-Automatic Clearing House direct debit and ACH bank account transfers).
· To accept payment via credit cards or non-ACH direct debit, use your existing Receivables setup, or optionally define a new receipt class and payment method to be used with these transactions.
· To accept payment via ACH bank account transfer, define a new receipt class and payment method to be used with these transactions.
Receipt Class window reference:
Name: Enter a unique Name for your Receipt Class.
Notes Receivable: If you are creating a Notes Receivable receipt class, check the Notes Receivable box. You cannot change this attribute after you assign a payment method and then save this receipt class.
Creation Method: Choose a Creation Method. If you choose Automatic, you can create receipts with this receipt class using the Automatic Receipt program. If you choose Manual, receipts using this receipt class must either be entered manually in the Receipts or QuickCash window, or imported into Receivables using AutoLockbox. If you choose Bills Receivable or Bills Receivable Remittance, Receivables enables the Bills Receivable or Bill Receivable Remittance tab.
Require Confirmation: To require automatic receipts assigned to this receipt class to be confirmed before they can be remitted, check the Require Confirmation box. You need to check this box to confirm automatic receipts using this receipt class in the Confirm Automatic Receipts window. If you choose a Creation Method of Bills Receivable Remittance, the box is checked. If you check this box, the Create Automatic Remittances window does not let you create remittances for unconfirmed receipts that were created using a payment method with this receipt class.
If you are defining a receipt class for use with ACH bank account transfers, then you should not check this box.
If you checked the Require Confirmation box, choose a Remittance Method. The remittance method determines the accounts that Receivables uses for automatic receipts that you create using payment methods to which you assign this receipt class. Choose one of the following methods:
· Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a payment method with this receipt class.
· Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a payment method with this receipt class.
· Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.
· No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted.
Note: If the Require Confirmation box is not checked and you choose a Remittance Method of No Remittance, automatic receipts that you create using this payment method and receipt class will be created as 'Confirmed.'
Clearance Methods: To require receipts created using a payment method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods:
· Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
· By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. (Receipts using this method can also be cleared in Oracle Cash Management.)
· By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.
Payment Method: Enter the Payment Method to assign to this receipt class.
Collectors:
Receivables lets you define collectors and assign them to a profile class or to a customer's credit profile class. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window.
You can also print collector names and telephone numbers on dunning letters you send to your customers for past due items. Receivables displays active collectors and their descriptions as list of values choices in the Customers, Customer Profile Classes, and Customer Calls windows. Receivables does not display inactive collectors in the list of values for these windows.
You can make an existing collector inactive by unchecking the Active check box and then saving your work. If the collector you want to make inactive is associated with an active customer, Receivables displays a warning message.
Define statement cycles to determine when to send statements to your customers. You enter statement cycles when you define or modify individual customer and site profile classes in the Customer Profile Classes window.
If a customer site is defined as a statement site, Receivables generates a single, consolidated statement for all of this customer's transactions. This statement is sent to this statement site. If you have not defined a statement site for a customer, Receivables creates statements for each customer site to which you have assigned a Bill-To business purpose and for each credit profile that has the Send Statements parameter set to Yes.
You choose a statement cycle when you print your statements. Active statement cycles appear as list of values choices in the Print Statements and Customer Profile Classes windows. Statement cycle dates appear as list of values choices in the Print Statements window.
You can disable a statement cycle by unchecking the Active box, and then saving your work.
Define standard messages to provide the text that Receivables prints on the bottom of your customer's statements. You can use messages to inform your customers of special promotions or to make your statements more personal. Active standard messages appear as list of values choices in the Print Statements window.
Define remit-to addresses to let your customers know where to send payment for their invoices Receivables uses the addresses that you define in the Remit To Addresses window to provide default remit-to information when you enter transactions.
Defining a Default Remit-To Address
Define default remit-to addresses to ensure that:
· Receivables is able to provide a default remit-to address when you enter transactions
· AutoInvoice will not reject invoices because it is not able to determine a remit-to address
You can only have one default remit-to address for each country and state combination. For example, you can have one default remit-to address for United States/California, one for United States/Nevada, and so on.
System Options
AccountingUse the Accounting tabbed region to specify an accounting method and set of books and define your accounting flexfields. You can also choose whether to use automatic journal import, enable header level rounding, and specify how many days should be included in each posting cycle.
Name: Enter the Name of your receivables accounting set of books. If you are not using the Multiple Organization Support feature, you can have one set or multiple sets of books for your business, but you can only have one set of books for each Receivables installation. You cannot change this value after you enter transactions in Receivables.
Realized Gains and Realized Losses Accounts: If your accounting method is Accrual, enter your Realized Gains and Realized Losses Accounts. Receivables posts changes in your functional currency to your Realized Gains or Losses account in your general ledger if there are differences in exchange rate gains or losses.
For example, if the exchange rate for a foreign currency invoice is 1.7 and the exchange rate of your payment for this invoice is 2.0, Receivables posts the difference as a gain to your Realized Gains account. Receivables provides descriptions of each segment, verifies that all flexfield segments are active, and ensures that you enter a valid combination.
Tax Account: Enter the Tax Account to use as the default value in the Tax Codes and Rates window.
Unallocated Revenue Account: If your accounting method is Cash Basis, enter your Unallocated Revenue Account. Receivables uses this account when you apply a cash receipt with a balance other than zero to an invoice with a zero balance.
Cross Currency Rate Type : Enter the default exchange rate type that Receivables uses when the receipt and transaction currency are different and the two currencies do not have a fixed rate relationship. (If the receipt and transaction do have a fixed rate relationship, then Receivables uses the exchange rate that you defined.)
The Applications and QuickCash windows use the value that you define here to calculate the Allocated Receipt Amount when you enter the Amount Applied and vice versa (if this system option is not defined, then you must manually enter both values).
Additionally, AutoLockbox uses this system option to apply cross currency receipts if the currencies do not have a fixed exchange rate and the program cannot automatically calculate the rate to use.
Cross Currency Rounding Account: Receivables uses this account to record any rounding error amounts created during a cross currency receipt application for currencies that have a fixed rate relationship. You need to define a rounding error account if you create cross currency receipts.
Header Rounding Account: Receivables uses this account to record any rounding differences that occur when converting foreign currency transactions to your functional currency.
Automatic Journal Import: To import the batches of transaction records that you post into your general ledger, check the Automatic Journal Import box. The value you enter becomes the default value for the Run GL Journal Import field in the Run General Ledger Interface window.
Transactions and Customers System Options
Receivables lets you define several options for your invoices and use of the AutoInvoice program. You can choose whether to allow updates to printed invoices and whether you can apply payments to an unrelated customer's transactions. Receivables lets you define the segments to use for Accounting Flex Tuning, System Items Tuning, and Territory Tuning during AutoInvoice.
You can also specify whether to purge the interface tables that you use for AutoInvoice, the maximum number of bytes to use and the grouping rule to use for the revenue and credit transactions you create through AutoInvoice.
Window reference:
Allow Change to Printed Transactions box: To allow updates to transactions that have been printed, check the Allow Change to Printed Transactions box. This option also determines whether you can update a customer's address when printed, posted, or applied transactions are assigned to that address.
Attention: You cannot update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, and including the transaction on a consolidated billing invoice.
Allow Transaction Deletion: To allow transactions to be deleted from Receivables after they have been saved, check the Allow Transaction Deletion box. If you set this option to Yes, you can still specify at the responsibility level which users can delete transactions by using function security. Setting this option to No prevents all Receivables users from deleting transactions; this is a requirement for installations that are legally required to number transactions sequentially with no missing transaction numbers.
Allow Payment of Unrelated Transactions: To allow receipt applications to debit items of unrelated customers, or to allow bills receivable assignments to transactions of unrelated customers, check the Allow Payment of Unrelated Transactions box. If you check this box, Receivables lets you select debit items for unrelated customers and apply your receipts to them in the Applications window, and lets you select transactions of unrelated customers and assign them to bills receivable in the Assignments window or the Bills Receivable Transaction Batches window.
Show Billing Number: Check this box if you want Receivables to display the consolidated billing invoice number on certain reports and windows. Receivables assigns a unique billing invoice number when you print a draft or final version of your consolidated billing invoices.
Receivables windows that can display the consolidated billing invoice number include the Receipts, Transactions, Account Details, Credit Transactions, Transaction Overview, Customer Calls, Applications, and Search and Apply windows.
Reports that can display the consolidated billing invoice number include the Account Status, Aged Trial Balance, Billing and Receipt History, Disputed Invoice, Dunning Letter Generate, Past Due Invoice, Sales Journal by GL Account, and Transaction Detail reports.
Document Number Generation Level : From the Document Number Generation Level pulldown list, select the point at which Receivables generates a document number for your transactions. Choose one of the following:
· When the transaction is committed
· When the transaction is completed
For bills receivable, Receivables ignores this option and generates the document number when the bill is completed.
Auto Invoice: Enter the Accounting, System Items, and Territory Flexfield segments that are most often selected by AutoInvoice. Receivables uses this information to increase AutoInvoice performance.
Create Reciprocal Customer: If majority of the relationships which are created is of the type “Reciprocal” then this option should be checked. This means that whenever we create the relationship in the customer it shall default as reciprocal. We can change it to a one way relationship if it is required.
Customers:
Automatic Customer Numbering: To automatically assign a unique number to every new customer, check the Automatic Customer Numbering box. Do not check this box if you want to manually assign customer numbers.
Automatic Site Numbering: To automatically assign numbers to your customer's business purposes, check the Automatic Site Numbering box.
Grouping Rule Name: Enter the default Grouping Rule Name you want AutoInvoice to use. AutoInvoice uses grouping rules to group revenue and credit transactions into invoices, debit memos, and credit memos.
Claims System Options
If using Oracle Trade Management, then use the Claims tabbed region to indicate how to evaluate, during Lockbox and Post QuickCash processing, your customers' remittances for claim creation.
Miscellaneous System Options
Use the Miscellaneous tabbed region to specify your split amount and the number of days to use for your Days Sales Outstanding (DSO) Calculation in the Collection Effectiveness Indicators Report.
You can also:
· Choose whether you require a billing location for receipts, and salespersons and remit-to addresses for transactions
· Define the system level write-off limits for receipts
· Specify a chargeback due date
· Define your Automatic Receipts submission parameters,
· Choose a default Application Rule Set
· Set the Sales Credit Percent Limit
Window reference:
Split Amount | Enter the Split Amount that Receivables will use when you generate the Collection Effectiveness Indicators Report. Receivables prints this amount as a selection option for this report. Use the split amount to determine the number of invoices over and under this amount, as well as the total amounts remaining. For example, your company generates invoices that are either $300 or $500. You choose $400 as your split amount so that you can review how much of your open receivables are comprised of your $300 business and how much corresponds to your $500 business |
Discount Basis | Enter the Discount Basis you want Receivables to use when calculating discounts for your invoices. Receivables use this value as the default Discount Basis in the Payment Terms window. Choose one of the following discount methods: Invoice Amount: Choose this option to calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices. Lines Only: Choose this option to calculate the discount amount based on only the line amounts of your invoices. Lines, Freight Items and Tax: Choose this option to calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level. Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices |
AutoCash Rule Set | Receivables uses this AutoCash Rule Set when you enter a receipt for a customer whose profile class has not been assigned an AutoCash Rule Set. Your AutoCash Rule set and the Discount Grace Days you specify in a customer's credit profile determine the sequence of AutoCash Rules that Receivables uses when you run Post QuickCash to automatically apply receipts to this customer's open debit items. |
Days in days | Enter the Number of Days to use when calculating your conventional Days Sales Outstanding for the Collection Effectiveness Indicators Report. Conventional DSO = (total outstanding receivables / total sales for last DSO days) * (DSO days) |
Sales Credit Percent limit | This setting applies only to sales credit adjustments that you make using the Revenue Accounting feature. The Sales Credit Percent Limit imposes a limit on the percentage of revenue plus non-revenue sales credit that a salesperson can have on any transaction line. If you do not enter a limit here, then no validation is performed when using Revenue Accounting. |
Write-off limit | Enter the write-off limits per receipt. You cannot write off receipt balances that are less than or greater than the system level write-off limits that you define here. You define the write-off limits range in your functional currency |
Accrue Interest | If you want Receivables to automatically update the open balance in the Transactions workbench for transactions that are past due, check the Accrue Interest box. If this option is set to No, the Lines window in the Transaction workbench will always display the original balance of your transactions; it will not update the balance due to include any finance charges. Note: You can include finance charges for past due items when printing your dunning letters and statements |
Require Billing Location for Receipts | To require that a bill-to location be associated with a cash receipt, check the Require Billing Location for Receipts box. If this option is Yes, the Post QuickCash program does not create receipts that do not have billing locations. If you check this box, be sure that you also check the Require Billing Location box when defining your Lockboxes; otherwise, Receivables displays an error when you submit AutoLockbox. Suggestion: If you have customers without statement sites, we recommend that you check this box. If you do not check this box and you have receipts for customers who do not have statement sites and who do not have a billing location associated with the receipt, the unapplied amount of the receipt will not appear on any of the statements for this customer. |
Allow Unearned Discounts | To allow Receivables to accept unearned discounts, check the Allow Unearned Discounts box. Unearned discounts are discounts a customer takes after the discount period passes. You define discount periods when defining your payment terms |
Print Remit to Address | To print your remit-to addresses on your customers' statements, check the Print Remit to address box. You use remit-to addresses to inform your customers of where they should send their payments. The width and height (in characters) of your customer's remit-to address in your printed dunning letters is 8 characters (height) by 30 characters (width). |
Discounts on partial payments | To allow discounts to be taken for partial payments, check the Discount on Partial Payment box. A partial payment is a payment that is less than the remaining amount due for a transaction. If this option is Yes, you can still choose to not allow discounts on partial payments at the transaction level when defining your Payment Terms. Set this option to No if you never allow discounts on partial payments. |
Print Home Country | To print your home country on your invoices and statements that refer to addresses in that country, check the Print Home Country box. |
Trade Accounting Installed | To enable the Trade Accounting feature, check the Trade Accounting Installed box |
Minimum Refund Amount | Enter an amount in the Minimum Refund Amount field. This field is used for automated receipt handling only. AutoInvoice will automatically create refunds for credit memos that are imported against paid invoices, if the credit request amounts are equal to or greater than the minimum specified here. AutoInvoice will place on account any credit amount that is less than the specified minimum. |
Bills Receivable Enabled | To enable the Bills Receivable Workbench, check the Bills Receivable Enabled box |
Credit Card Payment Method | Select the default Credit Card Payment Method for transactions to be paid by credit card |
Require Salesperson | To require that salespersons be entered when entering your transactions, check the Require Salesperson box. If you plan to use the Revenue Accounting feature, you must check this box |
Bank Account Payment Method | Select the default Bank Account Payment Method for transactions to be paid by Automatic Clearing House bank account transfer. Note: To accept bank account transfer payments via Oracle iPayment and the ACH network, you must select an ACH Bank Account payment method from the list of values. |
Chargeback Due Date | Enter your default Chargeback Due Date. Receivables uses this date when you create a chargeback. Choose from the following: Open Invoice Due Date, Receipt Date, Current Date, Deposit Date |
Default Country | Receivables uses this information to specify the home country for tax calculation, flexible bank structures, flexible address formats, and taxpayer id and tax registration number validation. It also provides a default value of the Country field when you enter addresses. (You can override this value by setting the user profile option 'Default Country. |
Source of Territory | Enter the Source of Territory you want Receivables to default into the Salespersons, Transactions, and Customers windows. Receivables uses the value you enter here to determine the default territory for your invoices and commitments. Choose from the following sources: Bill-To Site, Salesrep, Ship-To Site, None |
Application Rule Set | Select one from the list of values. Your Application Rule Set determines the default payment steps when you use the Applications window or Post QuickCash to apply receipts. Receivables uses this rule set if none is assigned to the debit item's transaction type. |
AR Accounting Periods
Open Next Period: To open the next accounting period after the Latest Open Period, choose Open Next Period. AR changes the status of the next period to 'Open.'
Status: To update the status of an accounting period, place the cursor in the Status field next to that period, then enter a new status. An accounting period can have one of the following statuses:
Closed | Journal entry, posting, and transaction entry are not allowed unless the accounting period is reopened. AR verifies that there are no unposted items in this period. AR does not let you close a period that contains unposted items. |
Close Pending | Similar to Closed, but does not validate for Unposted items. Journal entry, posting, and transaction entry are not allowed unless the accounting period is reopened. |
Future | This period is not yet open, but you can enter transactions in this period. However, you cannot post in this period until you open it |
Not Opened | This period has never been opened and journal entry and posting are not allowed |
Open | Journal entry and posting are allowed |
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