Account Generators in

the Order to Cash Cycle

Thomas J. Simkiss, Jr., J.D., CPA
BizTech
King of Prussia, PA

Agenda
Introduction
Objectives
Order to Cash Process
Journal Entries from Order to Cash
Account Generator
Modifying an Account Generator
Account Generation in R12
Q&A

Introduction
Thomas Simkiss, Jr., J.D., CPA
10 years Oracle Experience as an end user and
implementation consultant
Financials, Supply Chain, Discoverer, DBI
Managing Partner with BizTech
CPA in NJ
BizTech

Certified Advantage Partner

Based in the Mid-Atlantic
Clients in CT, NJ, NY, DE, MD, and VA
Applications Implementations
Custom Development
Oracle Hosting

Objectives
Review the Order to Cash Process and
related sub-processes
Introduce the Account Generator
Understand the journals created during
Order to Cash
Demonstrate how a basic account
generator modification

Order to Cash Process

Touches many business areas
Customer management, Order entry, Order
fulfillment and distribution, finance and
accounting

Two sub-processes
Order to Fulfillment
Customer Invoice to Cash

Order to Fulfillment
Order Entry & Scheduling
OF1069
OF1069

PF2036
PF2036

PF2051
PF2051

OF1071
OF1071

Manage
Manage
Customer
Customer
Orders
Orders

Check
Check
ATP
ATP

Check
Check
CTP
CTP and
and
CTD
CTD

Schedule
Schedule
Sales
Sales Order
Order
Ship
Ship Date
Date

Sales orders submitted

by customers or sales
reps are entered into
the system.

Calculate Available to
Promise (ATP) for the
customer order.

Calculate Capable to
Promise (CTP) and
Capable to Deliver (CTD)
for the customer order.

The planner
schedules sales order
lines ship dates.

Order Entry & Scheduling

OF1073
OF1073

OF1076
OF1076

OF1054
OF1054

Send
Send Sales
Sales
Order
Order
Acknowledgement
Acknowledgement

Manage
Manage
Sales
Sales Order
Order
Holds
Holds

Release
Release
Credit
Credit Holds
Holds
on
on Sales
Sales Orders
Orders

CSR sends sales order

acknowledgement to the
Customer

Research and resolve

shipment holds
associated with open
sales orders.

Enterprise Roles

Review and release

specific credit holds on
individual sales orders.
Planner

A
Copyright 2006, Oracle Corporation. All rights reserved.

Credit Manager
Shipping Clerk

Order to Fulfillment (Cont)

Customer Invoice to
Receipt

Shipping
MM1090
MM1090

MM1923
MM1923

MM1924
MM1924

MM1149
MM1149

Pick
Pick
Material
Material

Prepare
Prepare
Material
Material for
for
Shipment
Shipment

Load
Load
Material
Material

Ship
Ship
Material
Material

Shipping Clerk picks and

transfers orders to
Staging

Shipping Clerk
packages, consolidates
material to be sent to
the customer.

Shipping Clerk loads

the material to the dock
for shipment.

Copyright 2006, Oracle Corporation. All rights reserved.

Shipping Clerk packs,

weighs, counts, ships
and records
shipments

Customer Invoice to Cash

Customer Invoice
OF1027
OF1027

Generate
Generate
Customer
Customer
Invoices
Invoices

Order to Fulfillment

Bill for materials,

services, projects, etc

OF1028
OF1028

Enter
Enter Manual
Manual
Customer
Customer
Invoices
Invoices
The AR clerk creates
a manual invoice
online.

OF5882
OF5882

Present
Present
Customer
Customer
Invoices
Invoices
Present invoices to
customer or third
party.
Send electronically or
by mail.

FM0960
FM0960

OF1049
OF1049

OF1035
OF1035

Manage
Manage
Prepayments
Prepayments

Maintain
Maintain
Customer
Customer
Invoices
Invoices

Maintain
Maintain
Credit
Credit
Memos
Memos

Enter Prepayments,
Receive Payment,
Enter Invoice, Match
Invoice to
Prepayment

Process invoice
corrections,
adjustments and
updates.

Enter and process

customer credit
memos.

Enterprise Roles
Accounts Receivable Clerk
Accounts Receivable Manager

B
Copyright 2006, Oracle Corporation. All rights reserved.

Customer Invoice to Cash (Cont)

B

Accounts Receivables
OF1032
OF1032

OF1050
OF1050

Process
Process
Customer
Customer
Debit
Debit Memos
Memos
Enter and process
customer debit
memos.

Apply
Apply Customer
Customer
Receipts
Receipts
Cash
Cash Applications
Applications
OF1034
OF1034

Payment is received.
Receipt is created
and applied to
invoice(s).
OF1037
OF1037

Apply
Apply Customer
Customer
Receipts
Receipts
Credit
CreditCard
Card

Apply
Apply Customer
Customer
Receipts
Receipts
Adjustments
Adjustments
Adjust payment
including Receipt
Application reversal
and corrections

OF1031
OF1031

Remit
Remit
Customer
Customer
Receipts
Receipts
Bank
Bank Deposits
Deposits
Deposit customer
receipts.

Payment is received.
Receipt is created and
applied to invoice(s).

Enterprise Roles
Accounts Receivable Clerk
Accounts Receivable Manager

Copyright 2006, Oracle Corporation. All rights reserved.

Journal Entries from Order to Cash

External Order
Journal Entries Made AFTER Ship Confirm
For Shippable Orders
There is no COGS entry for non-shippable orders

Internal Orders
Many journal accounts determined by
Shipping Networks and delivery/ receipt
type (immediate or in transit)

Journal Entries External Order

Inventory
Cost of Goods Sold
Current
Cost

Accounts Receivable
AR/Unbilled
Sales Order
Price

Inventory
Current
Cost

Inventory JE made after

ship confirm

Revenue
Sales Order
Price

AR JE made after
Autoinvoice

Journal Entries Internal Order

Inventory

Cost of Goods Sold

Current
Cost

Accounts
Payable
I/C Accrual*
Current
Cost

Inventory
Current
Cost

Accounts
Receivable
Intercompany AR
Transfer
Price

Intercompany AP

Intercompany
Revenue

Current
Cost

* Credit to I/C Accrual and Debit to Inv that is made on receipt of items is
not shown

Transfer
Price

Account Generator
Uses Workflow technology to construct
key flexfield combinations
Allows generation of account
combinations based on system
variables

Account Generators in Order to

Cash

OM: Generate Cost of Goods Sold

Account (OECOGS)
AR: Substitute Balancing Segment
(ARSBALSG)
Inventory Cost of Goods Sold Account
(INVFLXWF)

Account Generator - Terms

Workflow Builder
Item Type
Attribute
Function
Process
Lookup Type

Modifying an Account Generator

1. Open the Account Generator to be

modified
2. Save to a local / network drive
3. Make modifications
4. Save to the database
5. Test

1. From the Workflow Builder, open the

account generator

User APPS
Password APPS Password
Connect
Applications Database

2. From the Hidden Items list, select the

Account Generator to be modified

3.
4.

Open the Generate Default Accounts Process, right

click on the process icon and select copy, then paste
Enter an Internal Name, Display Name and Description

5.
6.
7.

Open the new COGS process

Remove the link from Copy Values from Code
Combination to Validate Code Combination
Insert the function Get CCID from Salesrep's
revenue segment and click OK

8. Insert the Function Copy Segment Value

from other Structure Code Combination
9. Update the Node Attributes

10. Connect the new functions to the existing

workflow functions (right click at the first
function and drag to the second)
11. Select the result type (where appropriate)

12. File Save As Database

13. From GL Super User, select the new COGS
Account Generator

Test the Account Generator

Take an order through to ship confirm
Test via COGS_11i.SQL available from
Metalink (Note: 159998.1)

Account Generator in R12

Still available in R12
FA Account Generator
Option to use it or Subledger Accounting
Engine after upgrade

Receivables

Thomas J. Simkiss, Jr., J.D. CPA

BizTech
Tsimkiss@biztech.com