Account Receivable

Definition: It is used to record the any type of collection amount from external sources

Order to Cash Cycle

Sales order--->pick order--->shipping--->invoice--->receipts--->Reconciliation--->cash management

   AR Integration: AR is integrated by CE, GL, FA, and I Receivable.

 

AR Responsibility

Step1: define AR Responsibility

Nav: System administrator--->Security--->Responsibility--->Define

                                    Menu: AR_Navigate_Gui

Step2: Assign Profile option to AR Responsibility

                        Nav: System administrator--->Profile--->System

Step3: Assign Responsibility to User

                        Nav: System administrator--->Security--->User--->Define

Order Management Responsibility

Step1: define OM Responsibility

Nav: System administrator--->Security--->Responsibility--->Define

                                                Menu: ADS_OM_Supermenu

Step2: Assign Profile option to OM Responsibility

                        Nav: System administrator--->Profile--->System

Step3: Assign Responsibility to User

                        Nav: System administrator--->Security--->User--->Define

Step4: Assign Item Validation in Organization

                        Nav: Tcs OM--->Setup--->System parameters--->Values

                        Operating Unit: Tcs Software

                        Select Item Validation Organization: TCS Software Org --->Save--->Ok

AR Flexfields: They are two key Flexfields in AR i.e.

1. Sales Tax Location Flexfields

 2. Territory Flexfields     

Sales Tax Location Flexfields: It is mandatory flexfield which is used to calculate the tax based on the location. We can define up to 10 segments under this location.

Step1: Define Sales Tax Location Flexfield Structure

                        Nav: Tcs AR--->Setup--->Financial--->Flexfield--->Key--->Segment

            Application: Receivables                               Flexfields: Sales Tax Location

Add the our item i.e. Tcs Sales Tax--->Go to Segments

1. Country                   Country                       Loc_Id_Segment1      Ar_Loc_County

2. State                                    State                            Loc_Id_Segment2      Ar_Loc_State

3. City                         City                             Loc_Id_Segment3      Ar_Loc_City

                                                Save--->Ok (W)

Ø  Place cursor on County--->go flexfield qualifiers--->Enable County--->ok--->Save

Ø  Place cursor on State--->go flexfield qualifiers--->Enable State, Tax, Automatic Exception --->ok--->Save

Ø  Place cursor on City--->go flexfield qualifiers--->Enable City--->ok--->Save

Enable Dynamic Inserts

Enable Freeze Flexfield qualifiers --->Ok --->Compile (2)

Territory Flexfield:It is optional flexfield which is used following purpose

1.      To identify where sales is taking place

2.      To identify profit for each sales territory

Note: We cannot define new Territory flexfield structure but we can define segments up to 20

Step1: Define Territory Flexfield

                        Nav: Tcs AR--->Setup--->Financial--->Flexfield--->Key--->Segment

                        Application: Receivables                   Flexfield: Territory Flexfield

                                    Un Freeze Flexfield Definitions--->Go to Segments

Note: Just check and Save--->Close

            Enable Freeze Flexfield Definitions--->Compile

System Options: System options are nothing but controlling features of an operating unit level

            Step1: define System options

                        Nav: Tcs AR--->Setup--->System--->System options

                        Operating (T): Ctrl+F11--->Name: Tcs Hyd Gl

                       

Realigned gain a/c: 7880

-------------- Loss a/c:7880

Tax a/c:          7710

Unallocated:   4150

Cross currency rate type: Tcs exchange rate type

 Cross currency Rounding A/c: 7827

Header Rounding A/c: 7826

            2. Terms and Condition (T)

            3. Miscellaneous (T)

Open Periods:

                        Nav: Tcs AR--->Control--->Accounting --->Open/close Periods

Payment terms:Payment terms are used to determine the payment schedule for various invoices

            Step1: Define Payment term

                        Nav: Tcs AR--->setup--->Transactions--->Payment terms

Statement Cycle: This Cycle will determine the when to sent statement to the Customer

            Step1: Define Statement Cycle

                        Nav: Setup--->Print--->Statement Cycle

Collectors: The Person who are collecting the money from the customer is called Collectors

           

            Step1: Define Collector

                        Nav: Setup--->Collectors--->collector

Remit to Address: An Address where customer to send receipt information

            Step1: Define Remit to Address

                        Nav: Setup--->Print--->Remit to Address

            Step2: Create Receipt from location for remit to address

                        Nav: Setup--->Print--->Remit to Address

Application Rule set: This is used to determine how to apply receipt amount against invoice component, the invoice component are Line, Tax, Fright and Finance charges

            Step1; Define Application Rule set

                        Nav: Setup--->Receipts--->Application rule set

Assign Tax Profile to Operating Unit:

1.      Nav: System administrator--->User--->Define

2.      Tax manager--->Parties--->Parties tax Profile

Customer Profile Class: Customer profile class is used to classify the customer based on certain parameters, generally we can classify Three ways i.e. 1. Good Customers, 2. Average Customers, 3. Below Average Customers

            Step1: Define good customer profile class

                        Nav: Tcs AR--->Customer--->Profile classes

Customer: Either person or organization who are selling goods or services is called a customer.

                        They are three level of information

1.      Customer Header (Head Office)

2.      Address Site (Branch Office)

3.      Business Purpose site (Location)

Step1: Create Customer

            Nav: Tcs OM--->Customer--->Standard

Note: Customer information is global specific

            Customer Address site and business purpose site is Operating unit specific

  

Run validate application accounting definition prog:

            Nav: Tcs AR--->view--->request--->submit a new request--->select single request--->ok

                        Name: Validation application accounting definition

                                    Ledger: Tcs Hyd Gl

                                    Appli: Receivables

                                    Owner: Oracle

                                                Ok--->Submit--->No--->find

Transaction: Transaction can be created by Org and send to the customer they are three levels of information i.e. 1. Header 2. Lines, 3. Distribution

            Transaction can be entering in two ways 1. Manual, 2. Auto Invoice

           

            They are various types of transaction these are

           

1.      Invoice

2.      Debit memo

3.      Credit memo

4.      Deposit

5.      Guarantee

6.      Charge back

1. Manual Transaction: Manual Transaction can be enter in two ways i.e.
1. Single Transaction
2. Transaction Batch

Single Transaction: We using this transaction create invoice transaction

Step1: Create Invoice Transaction Type: This is used to define the features of various transactions this features are like print option, post to GL options Etc.

            Nav: Tcs AR--->Setup--->Transaction--->Transaction Types

Transaction Source: This source will determine numbering for single transaction and batch transaction and also it will determine transaction type for various transactions they are two types of transaction i.e.

1.      Manual

2.      Imported

Step2.1: Define Manual Transaction Source

                        Nav: Tcs AR--->Setup--->Transaction--->Source

Step2.2: Define Imported Transaction Source

                        Nav: Tcs AR--->Setup--->Transaction--->Source

Create Invoice Transaction:

            Nav: Tcs AR--->Transaction--->Transaction

Customer Balance:

            Nav: Tcs AR--->Accounting Details

Receivable Activity: This are used to default the accounting information for various receipt it can be defined for Earned discount, Mislenious, Unearned discount Etc.

Step1: Define Earned discount receivable activity

            Nav:Tcs AR--->Setup--->Receipts--->Receivable activity

                        Gl Account: 01.001.7825.000

Step2: Define Unearned discount receivable activity

            Nav:Tcs AR--->Setup--->Receipts--->Receivable activity

                        Gl Account: 01.001.7824.000

Bank Account

            Step1: define receivable controls features in the bank account

                        Nav: Tcs AR--->Setup--->Receipts--->Banks

                        Go to Bank Branch

                        Come to Account Controls (T) --->Receivable Control---> Enable Multiple Currency Receipts --->Save and next

                        Come to Account Access (T):--->Go to Option--->Receivable options--->Gl Accounts

                        Bank charges: 7870                 confirmed: 1210

                        Factored: 1210                        remitted: 1245

                        Short debit: 2120                    AR debit short: 2120

                        UN identified: 2120               Unpaid: 2140

                                                                        On Accounts: 2120

Come to Receivable Activities

Unearned discount: Tcs Unearned discount, Earned discount: Tcs Earned discount

                                                                        Save --->apply--->apply--->finish

Receipt classes:Receipt class will determine receipt creating method, remittance method, Clearance method, Receipt method and Bank account for various receipts.

            They are two types of receipt class i.e. 1. Manual, 2. Automatic

Step1: define manual receipt class

            Nav: Tcs AR--->Setup--->Receipts--->Receipt Classes

Step2: define automatic receipt class

            Nav: Tcs AR--->Setup--->Receipts--->Receipt Classes

Receipt Source: It will be determine the receipt class, Payment method, Bank accounts and Numbering for receipt batches

                        They are two types of receipt sources i.e. 1. Manual 2. Automatic

Step1: Define Manual receipt source

            Nav: Tcs AR--->Setup--->Receipts--->Receipts sources

Step2: Define Automatic receipt source

            Note: it not crated by us these is automatically created by system we run replicate seed data program one operating unit can have only one receipt source

Receipts:Recording collection information in Oracle AR is called Receipts.

                        These Receipts enter in to two ways 1. Single receipts

                                                                                   2. Receipt batch

1. Single Receipt

                  Step1: Create a single request

                              Nav: Tcs AR--->Receipts--->Receipts

Auto Accounting: This feature is used to default the accounting information at time of transaction creation. It can be defined for receivable accounts, Revenue, Fright, and Tax   Etc.

Step1: Define Receivable Account

            Nav: Tcs AR--->Setup--->Transaction--->Auto Account

                       

                        Type: Receivable

                        Account: 1410

  

Step2: Define Revenue Account

            Nav: Tcs AR--->Setup--->Transaction--->Auto Account

                       

                        Type: Receivable

                        Account: 4166

 Step3: Define fright Account

            Nav: Tcs AR--->Setup--->Transaction--->Auto Account

                       

                        Type: Fright

                        Account: 7220

  Step4: Define unbilled receivable Account

            Nav: Tcs AR--->Setup--->Transaction--->Auto Account

                       

                        Type: Fright

                        Account: 1232

Step5: Define unbilled revenue Account

            Nav: Tcs AR--->Setup--->Transaction--->Auto Account

                       

                        Type: Fright

                        Account: 2550

Debit memo: When Customer is under charged debit memo will be created by Org and send to the Customer.

Memo Lines: Memo lines are used to enter the description information at the time of transaction creation

            Step1: Define or Create memo lines

                        Nav: Tcs AR--->Setup--->Transaction --->Memo lines

           

            Step2: Define Transaction Type

                        Nav: Setup--->Transaction--->Transaction Type

            Step3:  Define Debit memo Transaction Source

                        Nav: Setup--->Transaction--->Sources

            Step4: Create a Debit memo

                        Nav: Tcs AR--->Transaction--->Transactions

Credit memo: When Customer is over charged credit memo will be created by Org and send to the Customer

Note: If you have credit memo against specific transaction then system will be reduce original transaction balance view amount. 

                       

They are two types of Credit memo

1.      Create memo against specific transaction

2.      On Account Credit memo

Step1: Create Memo lines

                        Nav: Tcs AR--->Setup--->Transaction --->Memo lines

           

Step2: Define Transaction Type

            Nav: Setup--->Transaction--->Transaction Type

Step3:  Define Credit memo Transaction Source

            Nav: Setup--->Transaction--->Sources

Step4: Assign Credit memo transaction source to the invoice transaction

            Source.

            Nav: Setup--->Transaction --->Source

                        F11

                        Name: Tcs Invoice Manual

                        Credit memo batch source: Tcs Credit memo source

Step5: Create Credit memo

            Nav: Setup--->Transaction--->Credit transaction

            Note: here we take transaction Number and move to credit lines

Step6: Check the customer balance

            Nav: Tcs AR--->Account Details

2. On Account Credit Memo: It will be crated against total customer account balance so it will not be specific transaction

            Step1: Create a Credit memo

                        Nav: Transaction--->Transaction

           

            Step2: Check the customer account balances

                        Nav: Tcs AR--->Account details

Deposit: Its advance amount which is received from the Customer later it will be adjusted against future invoice it will come under commitment transaction

            Step1: Define deposit transaction type

                        Nav: Setup--->Transaction--->Transaction type

           

Step2: Define Deposit Transaction Source

                        Nav: Setup--->Transaction--->Source

            Step3: Create Deposit Transaction

                        Nav: Tcs AR--->Transaction--->Transaction

            Step4: Create Receipt and apply against deposit

                        Nav: Receipts--->Receipts

           

            Step5: Check deposit transaction balance details

                        Nav: Tcs AR--->Transaction--->Transaction

            Step6: Create invoice transaction and apply or adjust deposit

                        Nav: Tcs AR--->Transaction--->Transaction

           

            Step7: Check deposit transaction balance details

                        Nav: Tcs AR--->Transaction--->Transaction

Guarantee: It is assurance from the customer to buy a good/ service it will come under commitment transaction

            Note: same as above deposit steps

Charge Back: Charge back nothing but a closing the old transaction and create new transaction

                        Step1: Define charge back receivable activity

                                    Nav: Setup--->Receipts--->Receivable activity

                                    Ctrl+f11--->Query: Charge back adjustment

                                          Type: Adjustment

                                    GL Accounts: 01.001.5030.000

                        Step2: Create Charge back Transaction type

                                    Nav: Setup--->Transaction--->Transaction type

                        Step3: Create Charge back Transaction Source

                                    Nav: Setup--->Transaction--->Source

                       

                        Step4: Create Invoice Transaction

                                    Nav: Transaction --->Transaction

                        Step5: Enter receipt and apply against invoice and also create charge back transaction for remaining amount

                                    Nav: Receipts--->Receipts

                       

                        Step6: Query the charge back transaction in the transaction window

                                    Nav: Transaction ---> Transaction

Invoice Rules: Invoice rules will determine the accounting period in which receivable amount will be recognized. 

                       

Note: Mainly it used Contract Business

They are two types 1. Bill in advance

                                                          2. Bill in arrears (Sum unpaid)

1. Bill in Advance: Under this invoice rule system will total receiving amount starting of contract the recognize.
2. Bill in Arrears: If we use bill in arrears invoice rule system will recognize total of  end of the contract

Accounting Rules: It determine the accounting period in use recognize amount

            They are 4 types accounting rules i.e. 1. Fixed Schedule

                                                                         2. Variable Schedule

                                                                         3. Daily Revenue Rate all Periods

                                                                         4. Daily Revenue Rate partial periods

1. Fixed schedule: If used fixed schedule accounting rules duration of the project and revenue percentage of each period will be entering at the time of accounting rule definition

Step1: Define fixed schedule accounting rule

            Nav: Setup---> Transaction--->accounting rule

Note: Total must be 100% equal

2. Variable schedule: Under this rule duration of the project will be entered at the time of invoice creation while enter define rule we can enter only revenue percentage of first period for remaining period system automatically

Step1: Define Variable schedule accounting rule

            Nav: Setup---> Transaction--->accounting rule

            Period             Present           Rate

                1                      30%                                               

Create invoice with accounting rule is fixed schedule and invoice rule is bill in advance

            Step1: Create invoice           

                        Nav: Transaction ---> Transaction

           

                        Invoice rule: Bill Advance

Go to lines ---> Come to Rules (T)---> Accounting: Tcs Fixed Schedule

            Step2: Run Revenue Reconciliation Program

                        Nav: view---> request--->submit a new request--->select single request--->ok

                       

                        Name: Revenue Reconciliation

  

Create invoice with accounting rule is Variable schedule and invoice rule is bill in arrears

            Step1: Create invoice           

                        Nav: Transaction ---> Transaction

           

                        Invoice rule: Bill arrears

Go to lines ---> Come to Rules (T)---> Accounting: Tcs Variable

            Step2: Run Revenue Reconciliation Program

                        Nav: view---> request--->submit a new request--->select single request--->ok

                       

                        Name: Revenue Reconciliation

 Batch Transaction:

            Step1: Create Transaction Batch

                        Nav: Transaction ---> Batches

           

            Note1: Control amount is less than transaction amount that time status is In of balance

            Note2: Control amount is Greater than transaction amount that time status is Out of balance

Note3: Control amount is Equal than transaction amount that time status is Closed

Receipt Batch: They are three types receipt batches i.e. 1. Manual regular batch

            2. Manual quick

            3. Automatic

1. Manual regular batch: This batch is receivable update customer balance and as soon as save the receipt details

Step1: Create Manual regular receipt batch

            Nav: Receipts--->Batches

Manual Quick: Under this batch receivable will not outdated customer balance when we are the receipt balance customer balance will be updated when we run Post quick cash program

            Step1: define auto cash rule set

                                    It is used to determine the how the receipt amount apply against customer transaction

                        Auto cash rule set has five rules i.e.

1.      Clear the account

2.      Clear past due invoice

3.      Clear past due invoice grouped by payment term

4.      Match payment not with invoice

5.      Apply the oldest invoice first

Nav: Setup--->Receipts--->Auto cash rule set

Step2: Create manual quick back

            Nav: Receipts--->batches

Unidentified: We received the receipt but not identify the customer

Unapplied: Nothing but a identify the customer but not a apply receipt amount against invoice

On Account: Identified the customer but receipt amount is transfer in to the account

Applied: We have identify the customer and apply receipt amount against invoice transaction

 Miscellaneous Receipts: Non invoice related receipt is called miscellaneous that receipt such as Interest on deposit, divedent,

Step1: Create miscellaneous receivable activity

            Nav: Setup--->Receipts--->Receivable activity

Step2: Create Miscellaneous Receipts

            Nav: Receipts--->Receipts

Receipt Reversal: It is used to reverse the receipts they are two are types of reversal method 1. Standard Reversal 2. Debit memo reversal

Remittance: Sending receipts information for collection to the bank is called remittance so they are two types remittance 1. Standard 2. Factory

Standard: Under this method check will be deposit in the bank for collection so bank will collect many from customer and transfer organization

Factory: Under this method org will take loan on receipts from bank on maturity date bank will collect amount from the customer then bank will deduct loan amount and remaining amount will be paid to the org

Remittance batches can be created by two ways 1. Manual 2. Automatic

Manual: Creating remittance batch manually is called manual remitted enter method it contains three setup 1. Create 2. Approve 3. Format

            Step1: Create remittance batch

                        Nav: Receipts---> Remittance

            Step2: Approve the remittance Batch        

                        Nav: Receipts---> Remittance

            Step3: Format the remittance Batch

                        Nav: Receipts---> Remittance 

            Step4: Check the requested receipt status

                        Nav: Receipts--->Receipts

Refund: It features is used to refund the excess amount to the customer so when we perform refund transaction in AR one invoice will be created in AP against customer

Balance Forward Billing Cycle: This method is used to generate the consociation bulling for customer

            Step1: Enable show billing number or system option

                        Nav: Tcs AR--->Setup--->System--->System option--->ctrl+f11

            Step2: Defined Balance forward billing cycle

                        Nav: Setup--->Print --->BFBC

            Step3: Define BFBC Payments terms

                        Nav: Setup--->Transaction--->Payments--->Payments terms

            Step4: Create customer BFBC profile class

                        Nav: Customer--->Profile class

            Step5: Create new customer

                        Nav: Tcs OM--->Customer --->Standard

            Step6: Create Invoice against new customer

                        Nav: Tcs AR--->Transaction --->Transaction

            Step7: Create receipt and apply against invoice transaction

                        Nav: Receipts--->Receipts

            Step8: Generate BFBC

                        Nav: Print document--->Balance forward bills--->Select single request--->ok

                        Name: Generate balancing forward bills

             

Writ off: Its nothing but a recording the uncollected amount from the customer

            Step1: Define writ of receipts activity

                        Nav: Setup--->Receipts--->Receivable activity

            Step2: Enter writ off limits at system option

                        Nav: Setup--->System --->system options

            Step3: Define writ off limits for user

                        Nav: Setup--->Transaction--->Approval limits

            Step4: Check Customer balance

                        Nav: Tcs AR--->Account details

            Step5: Enter the receipts and create writ off transaction

                        Nav: Receipts--->receipts

            Step6: Check Customer balance

                        Nav: Tcs AR--->Account details

Create customer bank account

            Step1: create customer bank account

                        Nav; Tcs OM--->Customer--->Standard

Trans for to General Ledger

            Nav: view--->request---->submit a new request --->single request--->ok

           

            Name: Trans for to general ledger