R12.

x Oracle Receivables
Management Fundamentals
Volume II Student Guide

Page1
 Table of Contents

Order to Cash Lifecycle Overview .................................................................................................................1-1

Order to Cash Lifecycle Overview ................................................................................................................1-3
Objectives ......................................................................................................................................................1-5
Agenda...........................................................................................................................................................1-6
Order to Cash Lifecycle.................................................................................................................................1-7
Agenda...........................................................................................................................................................1-9
Order Lifecycle..............................................................................................................................................1-10
Order Management Process...........................................................................................................................1-11
Viewing and Managing Orders......................................................................................................................1-12
Scheduling Process ........................................................................................................................................1-13
Pricing Process ..............................................................................................................................................1-14
Shipping Process ...........................................................................................................................................1-15
AutoInvoice Process ......................................................................................................................................1-16
Receivables Process.......................................................................................................................................1-17
Cash Management Process ............................................................................................................................1-18
Agenda...........................................................................................................................................................1-19
Overview of Application Integration.............................................................................................................1-20
Quiz ...............................................................................................................................................................1-22
Summary........................................................................................................................................................1-26
Overview of Oracle Receivables Process .......................................................................................................2-1
Overview of Oracle Receivables Process ......................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Agenda...........................................................................................................................................................2-5
Order to Cash Lifecycle.................................................................................................................................2-6
Overview of Receivables in the Order to Cash Process.................................................................................2-7
Agenda...........................................................................................................................................................2-8
Overview of the Receivables Process............................................................................................................2-9
Overview of Receivables Integration ............................................................................................................2-10
Receivables Integration Process ....................................................................................................................2-11
Agenda...........................................................................................................................................................2-12
Overview of the Transaction Process ............................................................................................................2-13
Overview of Other Invoice Operations..........................................................................................................2-14
Overview of Adjustments ..............................................................................................................................2-16
Overview of Credit Memos ...........................................................................................................................2-17
Overview of the AutoInvoice Process ...........................................................................................................2-18
Overview of Receipts and Remittances .........................................................................................................2-19
Agenda...........................................................................................................................................................2-20
Overview of Advanced Collections...............................................................................................................2-21
Advanced Collections Collection Methods ................................................................................................2-23
Oracle iReceivables .......................................................................................................................................2-25
Oracle iReceivables Product Integration .......................................................................................................2-26
Overview of Oracle iReceivables Features....................................................................................................2-28
Quiz ...............................................................................................................................................................2-31
Summary........................................................................................................................................................2-35
Manage Parties and Customer Accounts.......................................................................................................3-1
Manage Parties and Customer Accounts .......................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda...........................................................................................................................................................3-5
Customer Overview.......................................................................................................................................3-6
Party Model Overview...................................................................................................................................3-7
Party Model ...................................................................................................................................................3-9

Page2
Party Model and Relationships......................................................................................................................3-11
Managing Parties ...........................................................................................................................................3-13
Party Sites......................................................................................................................................................3-14
Customer Accounts........................................................................................................................................3-15
Integrating Party Information ........................................................................................................................3-16
Agenda...........................................................................................................................................................3-17
Profile Classes ...............................................................................................................................................3-18
Profile Class Characteristics ..........................................................................................................................3-20
Managing Customer Account Profiles...........................................................................................................3-21
Setting Up a Late Charge Policy in Profile Classes.......................................................................................3-22
Updating Profile Classes ...............................................................................................................................3-25
Reviewing Profile Class Changes..................................................................................................................3-26
Agenda...........................................................................................................................................................3-27
Data Quality Management Overview ............................................................................................................3-28
Data Quality Management (DQM) ................................................................................................................3-29
How Does DQM Work? ................................................................................................................................3-30
Setting UP DQM ...........................................................................................................................................3-31
Entry Methods ...............................................................................................................................................3-33
Business Issues ..............................................................................................................................................3-35
Business Purposes..........................................................................................................................................3-36
Multiple Sites and Business Purposes: Centralized Example ........................................................................3-38
Multiple Sites and Business Purposes: Decentralized Example ....................................................................3-39
Importing Data Using Interface Tables .........................................................................................................3-40
Entering Data Using the Customers Set of Pages..........................................................................................3-42
Prevention of Duplication and Invalid Address Creation ..............................................................................3-45
Dun & Bradstreet (D&B) Integration ............................................................................................................3-47
D&B Online...................................................................................................................................................3-48
Agenda...........................................................................................................................................................3-49
Merge Parties or Customer Accounts ............................................................................................................3-50
Agenda...........................................................................................................................................................3-52
Customer Account Relationships ..................................................................................................................3-53
Agenda...........................................................................................................................................................3-55
Oracle Trading Community Architecture ......................................................................................................3-56
TCA Registry.................................................................................................................................................3-57
TCA Administration ......................................................................................................................................3-58
Using Party Paying Relationships .................................................................................................................3-59
Using Customer Account Relationships ........................................................................................................3-60
Using Party Paying and Customer Account Relationships............................................................................3-61
Creating Party Paying Relationships .............................................................................................................3-62
Pay Within Paying Relationships ..................................................................................................................3-63
Party Paying Relationships Process Flow......................................................................................................3-64
Pay Below Paying Relationships ...................................................................................................................3-65
Relationship Types and Relationship Groups................................................................................................3-66
Agenda...........................................................................................................................................................3-67
Reviewing Information..................................................................................................................................3-68
Reports...........................................................................................................................................................3-69
Agenda...........................................................................................................................................................3-70
Mandatory Customer Profile Setup Steps......................................................................................................3-71
Collectors.......................................................................................................................................................3-72
Payment Terms ..............................................................................................................................................3-74
Optional Customer Profile Setup Steps .........................................................................................................3-75
Setup Steps for Customers.............................................................................................................................3-77
System Options Related to Customers...........................................................................................................3-78
Profile Options...............................................................................................................................................3-80
Optional Setup Steps for Customers..............................................................................................................3-82
Flexible Address Formatting .........................................................................................................................3-84
Quiz ...............................................................................................................................................................3-86

Page3
 Summary........................................................................................................................................................3-90
Process Invoices Using AutoInvoice...............................................................................................................4-1
Process Invoices Using AutoInvoice .............................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
AutoInvoice Process ......................................................................................................................................4-6
AutoInvoice Integration.................................................................................................................................4-8
What Occurs During AutoInvoicing..............................................................................................................4-9
AutoInvoice Interface Tables ........................................................................................................................4-11
Agenda...........................................................................................................................................................4-13
Managing AutoInvoice System Options........................................................................................................4-14
Defining Transaction Batch Sources for AutoInvoice...................................................................................4-16
Automated Refunds .......................................................................................................................................4-20
Grouping Rules..............................................................................................................................................4-21
Grouping Transaction Attributes ...................................................................................................................4-22
Grouping Rule Hierarchy ..............................................................................................................................4-23
Line Ordering Rules ......................................................................................................................................4-24
Transaction Flexfields ...................................................................................................................................4-25
Defining Transaction Flexfields ....................................................................................................................4-26
AutoInvoice Validation .................................................................................................................................4-28
Submitting AutoInvoice ................................................................................................................................4-29
AutoInvoice Reports......................................................................................................................................4-30
Implementation Considerations .....................................................................................................................4-31
Agenda...........................................................................................................................................................4-32
Error Correction Overview ............................................................................................................................4-33
AutoInvoice Exception Handling Windows ..................................................................................................4-34
Quiz ...............................................................................................................................................................4-36
Summary........................................................................................................................................................4-40
Process Invoices ...............................................................................................................................................5-1
Process Invoices ............................................................................................................................................5-3
Objectives ......................................................................................................................................................5-4
Agenda...........................................................................................................................................................5-5
Oracle Receivables Overview........................................................................................................................5-6
Transactions Overview ..................................................................................................................................5-8
Transactions Workbench Windows ...............................................................................................................5-9
Agenda...........................................................................................................................................................5-10
Invoice Entry Methods ..................................................................................................................................5-11
Creating a Standard Invoice Manually ..........................................................................................................5-12
Invoice Components ......................................................................................................................................5-14
Transactions Window Tabs ...........................................................................................................................5-16
Required Transaction Information.................................................................................................................5-18
Entering Invoice Dates ..................................................................................................................................5-20
Transaction Defaults......................................................................................................................................5-21
Standard Invoice Line Types .........................................................................................................................5-23
Entering Freight Invoices or Lines ................................................................................................................5-24
Entering Sales Credits ...................................................................................................................................5-26
Completing Transactions ...............................................................................................................................5-28
Creating Invoice Batches...............................................................................................................................5-30
View Currency Details ..................................................................................................................................5-31
Agenda...........................................................................................................................................................5-33
Creating Copies of Invoices...........................................................................................................................5-34
Using Recurring Rules...................................................................................................................................5-35
Creating Invoices with Rules.........................................................................................................................5-37
Accounting Rules ..........................................................................................................................................5-38
Assigning Accounting Rules to Invoice Lines...............................................................................................5-39
Using Invoices With Rules ............................................................................................................................5-40

Page4
 Example of Billing in Advance .....................................................................................................................5-41
Example of Billing in Arrears........................................................................................................................5-42
Deferred Accounting Rules ...........................................................................................................................5-43
Revenue Recognition Program ......................................................................................................................5-44
Making Adjustments Using Revenue Accounting.........................................................................................5-46
Balance Forward Billing (BFB) Process .......................................................................................................5-48
Calculating Late Charges...............................................................................................................................5-50
How Oracle Receivables Uses Statements ....................................................................................................5-52
Setup Details Report......................................................................................................................................5-53
AR: Use Statement, Dunning, and Late Charges Site Profiles ......................................................................5-54
Agenda...........................................................................................................................................................5-55
Invoice Transaction Flow ..............................................................................................................................5-56
Invoice Correction Methods ..........................................................................................................................5-57
Overview of Corrections................................................................................................................................5-58
Updating Invoices..........................................................................................................................................5-60
Creating Debit Memos...................................................................................................................................5-61
Creating Adjustments ....................................................................................................................................5-63
Applying Different Types of Credits .............................................................................................................5-65
Credit Memo Options ....................................................................................................................................5-66
On-Account Credit Options...........................................................................................................................5-68
Reversing Sales Credits .................................................................................................................................5-69
Manual Refunds.............................................................................................................................................5-70
Voiding Transactions.....................................................................................................................................5-72
Agenda...........................................................................................................................................................5-74
Reports...........................................................................................................................................................5-75
Printing Transactions.....................................................................................................................................5-76
Process for Printing Transactions ..................................................................................................................5-77
Using Balance Forward Billing .....................................................................................................................5-78
Agenda...........................................................................................................................................................5-80
Event-Based Revenue Management ..............................................................................................................5-81
Automated Revenue Management Process....................................................................................................5-82
Daily Revenue ...............................................................................................................................................5-83
Revenue Contingencies .................................................................................................................................5-85
Revenue Contingencies Process ....................................................................................................................5-86
Revenue Contingency Analyzer ....................................................................................................................5-87
COGS and Revenue Matching.......................................................................................................................5-88
Evaluating Invoices for Event-Based Revenue Management........................................................................5-89
Collectability Requirements for Revenue Recognition .................................................................................5-90
How Collectability Requirements Relate to Invoices ....................................................................................5-91
Applying Receipts and Event-Based Revenue Management.........................................................................5-92
Agenda...........................................................................................................................................................5-93
Promised Commitment Amounts ..................................................................................................................5-94
Quiz ...............................................................................................................................................................5-95
Summary........................................................................................................................................................5-99
Bill Presentment Architecture ........................................................................................................................6-1
Bill Presentment Architecture........................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Agenda...........................................................................................................................................................6-5
Bill Presentment Architecture Overview.......................................................................................................6-6
BPA Framework ............................................................................................................................................6-7
BPA Process Flow .........................................................................................................................................6-8
Creating Templates........................................................................................................................................6-9
Defining Assignment Rules...........................................................................................................................6-11
Data Retrieval................................................................................................................................................6-12
Agenda...........................................................................................................................................................6-13
Registering Data Sources...............................................................................................................................6-14

Page5
 Enabling Data Sources...................................................................................................................................6-15
Viewing Data Sources ...................................................................................................................................6-16
Creating Database Views...............................................................................................................................6-17
Registering Data Source Views .....................................................................................................................6-18
Viewing Data Source Views..........................................................................................................................6-19
Agenda...........................................................................................................................................................6-20
Template Management ..................................................................................................................................6-21
Modifying Templates ....................................................................................................................................6-22
Creating a New Template ..............................................................................................................................6-23
Uploading External Templates ......................................................................................................................6-25
Assigning Templates .....................................................................................................................................6-26
Agenda...........................................................................................................................................................6-27
Defining Template Rules...............................................................................................................................6-28
Creating a New Assignment Rule..................................................................................................................6-30
Selecting Attribute Matching Criteria............................................................................................................6-31
Selecting Conditions for Rules ......................................................................................................................6-32
Assigning a Template to a Rule.....................................................................................................................6-33
Reordering Rules ...........................................................................................................................................6-34
Agenda...........................................................................................................................................................6-36
Print Management..........................................................................................................................................6-37
Printing Attachments .....................................................................................................................................6-39
Creating and Updating Page Setups...............................................................................................................6-40
Quiz ...............................................................................................................................................................6-41
Summary........................................................................................................................................................6-45
Credit Management.........................................................................................................................................7-1
Credit Management .......................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Setting Up Oracle Credit Management..........................................................................................................7-6
Define Credit Analysts ..................................................................................................................................7-7
Dynamic Credit Analyst Assignments...........................................................................................................7-8
Define Lookups .............................................................................................................................................7-9
Define System Options..................................................................................................................................7-10
Credit Data Point ...........................................................................................................................................7-11
Define Scoring Models..................................................................................................................................7-12
Assign Automation Rules ..............................................................................................................................7-13
Credit Checklist .............................................................................................................................................7-14
Credit Usage Rule Sets ..................................................................................................................................7-15
Define Credit Hierarchies ..............................................................................................................................7-16
Define Customer Profile Classes ...................................................................................................................7-17
Customer Profile Classes: Credit Profile Tab...............................................................................................7-18
Assign Profile Class.......................................................................................................................................7-19
Agenda...........................................................................................................................................................7-20
Process Credit Reviews .................................................................................................................................7-21
Initiate a Credit Review.................................................................................................................................7-22
Collecting Credit Data ...................................................................................................................................7-23
Analyzing Credit Data ...................................................................................................................................7-24
Making a Recommendation...........................................................................................................................7-25
Implementing the Recommendation..............................................................................................................7-26
Multi-Period Financial Data Comparison......................................................................................................7-27
Automatic Assessment of Guarantors............................................................................................................7-28
Credit Decision Appeals ................................................................................................................................7-29
Agenda...........................................................................................................................................................7-30
Credit Management Application Workflow ..................................................................................................7-31
Oracle Approvals Management (AME).........................................................................................................7-32
Agenda...........................................................................................................................................................7-33

Page6
 Review Credit Management Performance .....................................................................................................7-34
Agenda...........................................................................................................................................................7-35
Define Credit Hierarchies ..............................................................................................................................7-36
Identify a Credit Hierarchy............................................................................................................................7-37
Quiz ...............................................................................................................................................................7-38
Summary........................................................................................................................................................7-42
Implement Customer Invoicing......................................................................................................................8-1
Implement Customer Invoicing .....................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
Agenda...........................................................................................................................................................8-5
Required Setup Steps for Transactions..........................................................................................................8-6
Receivables Transaction Types .....................................................................................................................8-8
Using Natural Application.............................................................................................................................8-10
Deposit Transaction Type..............................................................................................................................8-11
AutoAccounting ............................................................................................................................................8-12
Balance Forward Billing Cycle .....................................................................................................................8-14
Payment Terms ..............................................................................................................................................8-16
Transaction Sources.......................................................................................................................................8-18
Remit-to Addresses........................................................................................................................................8-20
System Options Relating to Transactions......................................................................................................8-21
System Options Relating to Late Charges .....................................................................................................8-23
Miscellaneous System Options......................................................................................................................8-25
Profile Options...............................................................................................................................................8-27
Implementation Considerations for Transactions ..........................................................................................8-29
Implementation Considerations for Remit-To Addresses..............................................................................8-30
Optional Setup Steps for Customer Invoices .................................................................................................8-31
Salespeople ....................................................................................................................................................8-33
Standard Memo Lines....................................................................................................................................8-34
Setting Up Document Sequencing.................................................................................................................8-36
Setting Up Gapless Transaction Numbering..................................................................................................8-37
Setting Up Statements ...................................................................................................................................8-39
Balance Forward Bills ...................................................................................................................................8-40
Setting Up Balance Forward Billing..............................................................................................................8-41
Setting Up Tiered Interest Rates for Late Charges ........................................................................................8-43
Overview of Transaction Printing Views ......................................................................................................8-45
Transaction Printing Views ...........................................................................................................................8-46
Agenda...........................................................................................................................................................8-47
Define Transaction Types in Order ...............................................................................................................8-48
Implementation Considerations for Document Sequencing Enhancements ..................................................8-49
Function Security...........................................................................................................................................8-50
Quiz ...............................................................................................................................................................8-51
Summary........................................................................................................................................................8-55
Receipts.............................................................................................................................................................9-1
Receipts .........................................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Agenda...........................................................................................................................................................9-5
Oracle Receivables Overview........................................................................................................................9-7
Overview of Receipts ....................................................................................................................................9-8
Receipt Creation ............................................................................................................................................9-9
Receipt Statuses.............................................................................................................................................9-10
Manual Receipt Entry Process.......................................................................................................................9-11
Receipt Types ................................................................................................................................................9-12
Manual Receipts versus QuickCash Receipts................................................................................................9-14
Creating Batches............................................................................................................................................9-15
Validating Receipts in Batches ......................................................................................................................9-16
Batch Statuses................................................................................................................................................9-17

Page7
Agenda...........................................................................................................................................................9-18
Applying Batch Receipts ...............................................................................................................................9-19
Applying Receipts to an Invoice....................................................................................................................9-20
Applying Receipts at Line Level ...................................................................................................................9-21
Applications Window ....................................................................................................................................9-23
Criteria for Mass Applying Receipts .............................................................................................................9-25
AP/AR Netting ..............................................................................................................................................9-26
Prepayments ..................................................................................................................................................9-27
Cross Currency Receipts ...............................................................................................................................9-29
Entering Discounts ........................................................................................................................................9-30
Agenda...........................................................................................................................................................9-31
Chargebacks and Adjustments.......................................................................................................................9-32
Chargebacks and Adjustments against Transactions .....................................................................................9-33
Chargebacks against Receipts........................................................................................................................9-34
Creating a Chargeback...................................................................................................................................9-35
Credit Card Chargebacks...............................................................................................................................9-36
Working with Claims.....................................................................................................................................9-38
Creating Claims .............................................................................................................................................9-39
Automatic Claim Creation Through Lockbox and Quickcash.......................................................................9-40
Resolving Claims...........................................................................................................................................9-41
Automated Settlement Methods Effectively Settle Deductions.....................................................................9-42
Resolving Claims Not Associated to an Invoice............................................................................................9-44
Vendor Claims on Credit Card Chargebacks.................................................................................................9-45
Resolving a Split Claim .................................................................................................................................9-47
Agenda...........................................................................................................................................................9-49
Balancing Segments ......................................................................................................................................9-50
Deriving Balancing Segment Values.............................................................................................................9-51
Disabling the Balancing Segment Substitution Process for Activities ..........................................................9-52
AR: Disable Receivable Activity Balancing Segment Substitution ..............................................................9-53
Agenda...........................................................................................................................................................9-54
Lockboxes......................................................................................................................................................9-55
Using AutoLockbox ......................................................................................................................................9-56
Lockbox Integration ......................................................................................................................................9-57
Historical Data Conversion............................................................................................................................9-58
AutoLockbox Process....................................................................................................................................9-59
AutoLockbox Process Flow...........................................................................................................................9-61
AutoLockbox Validation ...............................................................................................................................9-62
AutoLockbox and Customer Identification ...................................................................................................9-64
AutoLockbox Transmissions .........................................................................................................................9-65
Applying Receipts using AutoLockbox.........................................................................................................9-66
Creating Claims Using AutoLockbox............................................................................................................9-68
Importing and Applying Cross Currency Receipts ........................................................................................9-70
Lockbox Execution Report ............................................................................................................................9-71
Receipt to Receipt Applications ....................................................................................................................9-72
Automated Receipt Handling for Credits ......................................................................................................9-74
Automatic Receipts........................................................................................................................................9-75
Bank Remittance Process ..............................................................................................................................9-76
Creating Automatic Receipts.........................................................................................................................9-77
Automatic Receipts and Remittance Process Overview ................................................................................9-78
Credit Cards...................................................................................................................................................9-79
Processing Credit Card Refunds....................................................................................................................9-81
Processing Credit Card Transactions.............................................................................................................9-82
Creating Credit Card Transactions ................................................................................................................9-83
Credit Card Refunds ......................................................................................................................................9-84
Quiz ...............................................................................................................................................................9-86
Summary........................................................................................................................................................9-90

Page8
Implement Receipts .........................................................................................................................................10-1
Implement Receipts .......................................................................................................................................10-3
Objectives ......................................................................................................................................................10-4
Agenda...........................................................................................................................................................10-5
Overview of Receipt Setup............................................................................................................................10-6
Receivables Activity Types ...........................................................................................................................10-7
Receivables Activity Setup............................................................................................................................10-9
Receivables Activity Example.......................................................................................................................10-11
Receipt Class, Receipt Method, and Bank Account Relationship ...............................................................10-12
Defining Remittance Banks and Bank Accounts...........................................................................................10-13
Defining Receipt Classes...............................................................................................................................10-14
Associating a Bank Account With a Receipt Method....................................................................................10-16
Defining Receipt Sources ..............................................................................................................................10-17
Defining AutoCash Rules ..............................................................................................................................10-18
Defining Application Rule Sets .....................................................................................................................10-20
Setting Up Cross Currency Receipts .............................................................................................................10-21
System Options for Receipt Accounting .......................................................................................................10-22
Miscellaneous System Options Relating to Receipts....................................................................................10-23
Profile Options...............................................................................................................................................10-25
Agenda...........................................................................................................................................................10-27
Implementation Considerations for Receipts.................................................................................................10-28
Other Implementation Considerations for Receipts.......................................................................................10-29
Setting Up Lockboxes ...................................................................................................................................10-30
Function Security...........................................................................................................................................10-31
Quiz ...............................................................................................................................................................10-32
Summary........................................................................................................................................................10-36
Tax Processing .................................................................................................................................................11-1
Tax Processing...............................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
Agenda...........................................................................................................................................................11-5
Oracle E-Business Tax Architecture Overview.............................................................................................11-6
Oracle E-Business Tax Key Concepts And Examples...................................................................................11-7
Calculating Tax on Transactions ...................................................................................................................11-10
Calculating Tax Using the Tax Classification Code......................................................................................11-11
Global Tax Overview ....................................................................................................................................11-12
Tax Overview ................................................................................................................................................11-14
Value Added Tax Overview ..........................................................................................................................11-15
US Sales Tax Overview.................................................................................................................................11-16
Tax Partner Process Overview.......................................................................................................................11-17
Agenda...........................................................................................................................................................11-18
Setting Up Receivables for Tax Calculation..................................................................................................11-19
Defining Transaction Types and Tax Exemptions.........................................................................................11-21
Defining AutoAccounting for Tax.................................................................................................................11-23
Enabling Calculation of Tax on Freight ........................................................................................................11-24
Defining E-Business Tax Profile Options for Receivables............................................................................11-25
Defining E-Business Tax Profile Options for Order Management................................................................11-27
Agenda...........................................................................................................................................................11-29
Tax Accounting Overview.............................................................................................................................11-30
Setting Up Tax Accounting for Deferred Tax ...............................................................................................11-31
Defining Receivables Activities ....................................................................................................................11-32
Updating the Tax Rate on Transactions.........................................................................................................11-34
Adjusting Tax on Invoices.............................................................................................................................11-35
Tax Credit Memo...........................................................................................................................................11-36
Quiz ...............................................................................................................................................................11-38
Summary........................................................................................................................................................11-42
Period Closing Process ....................................................................................................................................12-1

Page9
 Period Closing Process ..................................................................................................................................12-3
Objectives ......................................................................................................................................................12-4
Agenda...........................................................................................................................................................12-5
Overview of Accounting and Receivables.....................................................................................................12-6
Oracle Subledger Accounting........................................................................................................................12-7
Oracle Subledger Accounting Integration .....................................................................................................12-8
Subledger Accounting Key Concepts ............................................................................................................12-10
Subledger Accounting Receivables Accounting Event Model .....................................................................12-11
Subledger Accounting Setup and Process .....................................................................................................12-12
Agenda...........................................................................................................................................................12-13
Receivables Period Closing Process ..............................................................................................................12-14
Overview of Ordering to Period Closing.......................................................................................................12-15
Agenda...........................................................................................................................................................12-16
Standard Reports ...........................................................................................................................................12-17
Agenda...........................................................................................................................................................12-18
Reconciling Receivables................................................................................................................................12-19
Transferring to General Ledger .....................................................................................................................12-21
Running the Journal Import Program ............................................................................................................12-22
Mapping Receivables Transactions to General Ledger Categories ...............................................................12-23
Running Revenue Recognition ......................................................................................................................12-24
Quiz ...............................................................................................................................................................12-25
Summary........................................................................................................................................................12-29
Appendix A: Bank Reconciliation ..................................................................................................................13-1
Appendix A - Bank Reconciliation................................................................................................................13-3
Course Objectives..........................................................................................................................................13-4
Agenda...........................................................................................................................................................13-6
Reconciliation Overview ...............................................................................................................................13-8
Reconciliation Integration .............................................................................................................................13-9
Reconciliation: Oracle Receivables and Oracle Payables..............................................................................13-10
Functions with Receivables ...........................................................................................................................13-11
Oracle General Ledger and Payroll ...............................................................................................................13-12
Reconciliation of Oracle Payroll EFT Payments ..........................................................................................13-13
AutoReconciliation Overview .......................................................................................................................13-14
Load Bank Statements ...................................................................................................................................13-15
Agenda...........................................................................................................................................................13-16
Setting Up Oracle Cash Management and Related Products .........................................................................13-17
Setting Up Oracle Cash Management System Parameters ............................................................................13-18
Setting Up Oracle Cash Management Bank Transaction Codes....................................................................13-20
Agenda...........................................................................................................................................................13-21
Bank Statement Open Interface .....................................................................................................................13-22
Importing Bank Statements ...........................................................................................................................13-25
Bank Statement Validation ............................................................................................................................13-26
Bank Statement Interface Errors....................................................................................................................13-27
Setup for Bank Statement Open Interface .....................................................................................................13-28
Agenda...........................................................................................................................................................13-29
Entering Bank Statements Manually .............................................................................................................13-30
Entering Bank Statement Information Manually...........................................................................................13-31
Agenda...........................................................................................................................................................13-32
Archiving and Purging...................................................................................................................................13-33
Archiving and Purging Automatically...........................................................................................................13-35
Agenda...........................................................................................................................................................13-36
Reconciling Bank Statements Automatically ................................................................................................13-37
Agenda...........................................................................................................................................................13-39
Reconciling Bank Statements Manually........................................................................................................13-40
Creating Miscellaneous Transactions ............................................................................................................13-41
Recording a Bank Transmission Error...........................................................................................................13-42

Page10
Recording Transactions from External Systems...........................................................................................13-43
Reconciliation Open Interface .......................................................................................................................13-44
Agenda...........................................................................................................................................................13-45
Manually Clearing and Unclearing................................................................................................................13-46
Clearing and Reconciling Transactions in Oracle Payables .........................................................................13-47
Clearing and Reconciling Transactions in Oracle Receivables ....................................................................13-48
Transferring Bank Reconciliation Transactions to Your General Ledger .....................................................13-49
Agenda...........................................................................................................................................................13-50
Recording Exceptions....................................................................................................................................13-51
Handling Non-Sufficient Funds (NSF) Using AutoReconciliation ...............................................................13-52
Handling Non-Sufficient Funds (NSF) or Rejected Receipts Manually........................................................13-53
Recording a Stopped Payment.......................................................................................................................13-54
Recording a Direct Debit from a Supplier .....................................................................................................13-55
Entering Reversals.........................................................................................................................................13-56
Reconciling Corrections and Adjustments to Bank Errors ............................................................................13-57
AutoReconciliation Matching........................................................................................................................13-58
AutoReconciliation Matching: Reversal Method ..........................................................................................13-59
AutoReconciliation Matching: Adjustment Method......................................................................................13-60
Manual Reconciliation Matching ..................................................................................................................13-61
Agenda...........................................................................................................................................................13-62
Value Date Support .......................................................................................................................................13-63
Value Date Support in Oracle Payables and Oracle Receivables ..................................................................13-64
Agenda...........................................................................................................................................................13-66
Oracle Cash Management Reports ................................................................................................................13-67
Archive/Purge Bank Statements Report ........................................................................................................13-68
AutoReconciliation Execution Report ...........................................................................................................13-69
Bank Statement Detail Report .......................................................................................................................13-70
Bank Statement Summary Report .................................................................................................................13-71
Bank Statements by Document Number Report...........................................................................................13-72
GL Reconciliation Report..............................................................................................................................13-73
Cash in Transit Report...................................................................................................................................13-74
Cleared Transactions Report..........................................................................................................................13-75
Transactions Available for Reconciliation Report........................................................................................13-76
Batches Available for Reconciliation Report ................................................................................................13-77
Bank Transaction Codes Listing....................................................................................................................13-78
Cash Application Work Queue ......................................................................................................................13-79
Cash Application Work Queue (continued)...................................................................................................13-80
Work Load Review Report............................................................................................................................13-82
Summary........................................................................................................................................................13-83

Page11
 Credit Management
Chapter 7

Page12
Credit Management

Page13
Objectives

Page14
Agenda

Page15
Setting Up Oracle Credit Management

Setting Up Oracle Credit Management

Credit policies are uniquely identified by the type of credit reviews that you perform at your
enterprise, as well as by the credit relationships that you have with your customers and
prospects. These two dimensions, known as the credit review type and credit classification,
constitute the foundation upon which Oracle Credit Management is based.
To set up Credit Management, you must:
Define credit analysts
Assign credit analysts to accounts
Define Credit Management lookups
Define Credit Management system options
Define scoring models
Assign automation rules (optional)
Define checklists
Verify usage rules
Define the credit hierarchy for your customers and prospects

Page16
Define Credit Analysts

Define Credit Analysts

You use Resource Manager to enter information about the credit analysts in your enterprise.
Credit analysts assist in the resolution of credit-related issues and evaluate the
creditworthiness of your customers and prospects.
Before you can define credit analysts in Resource Manager, you must first define them as
employees in the Oracle Human Resources Management System (HRMS). Later, when you
are ready to define your credit analysts, you import employees from HRMS into Resource
Manager and assign roles.
After you define a credit analyst, you can modify any of the analysts information, except the
employee and user names.
Note: You can assign the credit manager role to a credit analyst. A credit manager has
access to setup functionality.
Non-Employees
Non-employees can also initiate (from an application outside Credit Management) the creation
of credit applications. Non-employees are users who are not in Oracle HRMS and who are not
assigned a credit analyst role in Resource Manager. For example, a non-employee might be a
vendor or a contractor.

Page17
Dynamic Credit Analyst Assignments

Dynamic Credit Analyst Assignments

You can specify a default credit analyst in cases where no credit analyst rules are
defined.
You can create credit analyst assignment rules. In the rule, you must specify the criteria
of the credit reviews and the credit analyst assigned to these credit reviews.
You can put the rules in order, if there are multiple rules created. The credit analyst is
assigned according to the sequential order of the rules.
You can test the created rules.

Page18
Define Lookups

Define Lookups
For example, to identify an applicants potential credit risk, you must select a credit
classification and credit review type, if not previously assigned, when entering a credit
application.
The credit classification describes the type of credit relationship that you have with the
applicant. Credit Management provides you with High Risk, Low Risk, and Moderate Risk, but
you can optionally define new credit classifications to fit your business needs.
The credit review type refers to the type of credit reviews that you perform at your enterprise,
such as Credit Checking, Periodic Credit Review, or Lease Application.
You use the Oracle Receivables Lookups window to define any additional lookups that you
require.

Page19
Define System Options

Page20
Credit Data Point

Credit Data Point

Credit Management extracts various credit data points from the following sources to assess
the creditworthiness of your customers and prospects.
Seeded Data Points
These data points are extracted from other applications in the E-Business Suite, such as
Oracle Receivables and Oracle Order Management.
Dun and Bradstreet Data Points
You can purchase credit information from Dun & Bradstreet and include D&B data points in
credit reviews.
User-Defined Data Points
Internal - You can define additional data points and associate a PL/SQL package and
function to derive a value for that data point.
External - You can include data points from other sources from outside the E-Business Suite,
such as credit bureaus that are not currently integrated with Credit Management.

Note: You must manually enter the External Data point values.

Page21
Define Scoring Models

Define Scoring Models

A scoring model consists of a group of data points, with scored ranges and a relative
weighting factor for each data point. During a credit analysis, Credit Management calculates a
score from 0 to 100, with 0 representing the most risk and 100 representing the least risk. You
can also calculate the scores without assigning weights to the data points.
The View Scoring Models page displays a table of all existing scoring models. You can view
and update the scoring models by clicking the respective inline icons, or you can define a new
scoring model.
You can treat null data point values as zero, which prevents the scoring process from failing
when null data point values are encountered.
You can assign a default scoring model to a credit checklist. Alternatively, you can generate
various what-if scenarios during a credit review by selecting different scoring models from
the case folder.

Page22
Assign Automation Rules

Assign Automation Rules

For any scoring model, you can define a set of automation rules to guide the implementation
of credit decisions without user intervention. Such automation is preferable when the credit
risk, as defined by your enterprises credit policies, is minimal.
Automation rules base credit decisions upon the credit score that the assigned scoring model
calculates. For each automation rule, you define recommendations for a related credit score
range. For example, if the credit score is below 50, you might want to automatically reject a
credit request.
The Automation Rules page provides you with an overview of all scoring models for which a
set of automation rules is defined. You can view and update existing sets of automation rules
by clicking the respective inline icons, or you can create a new set.
Note: This step is optional.

Page23
Credit Checklist

Credit Checklist
For example, when a high risk customer seeks to increase its credit limit with your enterprise,
your credit policies might dictate a conservative approach until this customer relationship is
more established. In this scenario, you would use a conservative checklist to determine
whether to grant additional credit and what the credit limit should be.
The flexible setup procedures that follow reflect Credit Managements ability to meet the
demands of your enterprises particular credit policies.

Page24
Credit Usage Rule Sets

Credit Usage Rule Sets

Credit usage rule sets define the set of currencies that will share a predefined credit limit
during the credit checking process, and enable the grouping of currencies for global credit
checking.
For example, if a customer is assigned the Default profile class with a credit usage rule set
that includes USD, EUR, and CAD, then any transactions in those currencies are included in
that customers case folder for data points, such as Count of Open Invoices or Amount of
Open Invoices.

Page25
Define Credit Hierarchies

Define Credit Hierarchies

To provide global credit limits that are shared by some or all entities within a complex,
multinational enterprise, you can define credit relationships between parties using Oracle
Trading Community Architecture (TCA) Relationship Manager.
You can define a credit hierarchy of parties, party relationships, hierarchy levels, accounts,
and account sites. Typically, the party object and party subject in a credit relationship
represent a parent and child, or HQ and division hierarchy. For each entity in the hierarchy,
you can view credit information, such as credit hold status, credit limits by currency, and credit
review cycle.
Using Relationship Manager, you assign to your entities an existing relationship type, such as
Global Ultimate, or your own user-defined Credit Management relationship type. You then link
the relationships to Credit Management by assigning the relationship type to the AR: Credit
Hierarchy Type profile option. When you conduct a credit review for an entity that has
hierarchical relationships, Credit Management consolidates and displays all data for the entire
hierarchy.

Page26
Define Customer Profile Classes

Define Customer Profile Classes

You can also define amount limits for your late charges, dunning, and statements for each
currency in which you do business. Define your standard customer profiles in the Customer
Profile Classes window. These profiles contain generic options you can use to group your
customers into broad categories.
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 Receivables profile class DEFAULT.

Page27
Customer Profile Classes: Credit Profile Tab

Customer Profile Classes: Credit Profile Tab

Periodic Review Cycle
Defines the frequency of automatic reviews for a customer.
Note: Eligible reviews are processed through the Periodic Review Cycle concurrent
program.
Credit Analyst
The credit analyst automatically is assigned to all parties, accounts, and sites which
have this profile class.
Credit Tolerance
The percentage upon which credit exposure is exceeded before an order will be placed
on credit holds. Credit holds automatically submit a credit request.

Page28
Assign Profile Class

Assign Profile Class

You assign a profile class to a customer on the Create Customer page. The profile class
assigned at the customer level defaults at the account level. If a profile class is assigned to a
customer and to an account or account site of the same customer, the options set at the
account or account site level take precedence over those set at the customer level.
Use the Account Profile subtab of the Account Overview page to customize the default profile
class values at the account level to meet specific requirements for each account. You can also
use the Account Profile subtab to assign a new profile class at the account level.
Use the Profile subtab of the Account Site Overview page to replace the DEFAULT profile
class with an appropriate profile class. You can also use the Profile subtab to customize the
default profile class values at the account site level.

Note: To use the site level credit profile amounts instead of the customer level profile, set the
AR: Use Statement, Dunning, and Late Charges Site Profiles profile option to Yes.

Page29
Agenda

Page30
Process Credit Reviews

Process Credit Reviews

During the credit review, the Credit Management Application workflow manages the process
flow of credit data collection and analysis, as well as the implementation of credit decisions. In
addition, Credit Management provides various tools that you can use to determine if your
credit policies are effective.

Page31
Initiate a Credit Review

Initiate a Credit Review

For example, if a sales order is put on credit hold, then the credit hold process in Order
Management passes this information to the Credit Review Request API, which automatically
initiates a credit review. Other events, such as a quarterly review, can also trigger a credit
review.
Note: You can also use the Credit Review Request API to initiate a credit review from a non-
Oracle system.

Page32
Collecting Credit Data

Collecting Credit Data

The credit checklist indicates which data points are required for different types of credit
analyses and decisions, and can optionally indicate which scoring model will be used for the
review. In this way, the checklist enforces your enterprises credit policies.
If the checklist identifies required data points that already exist within Oracle Applications or
that can be calculated by the system, such as available credit, aging, and so on, then Credit
Management automatically inserts that information directly into the credit application and case
folder. If the checklist requires data points that must be manually supplied, such as bank and
trade references, then a credit analyst must enter the required data into the credit application
or case folder.

Page33
Analyzing Credit Data

Analyzing Credit Data

The Credit Analysis data pages comprise the universe of data points for the applicant. The
Credit Analysis data pages that are available from the Analysis tab are:
Credit Analysis: Case Folder
Credit Analysis: Credit Summary
Credit Analysis: Billing and Payment Details
Credit Analysis: Aging Details

Page34
Making a Recommendation

Making a Recommendation
Credit Management recommendations are user-extensible Receivables lookup codes. Calling
applications can add their specific recommendation and associate a form function to the
recommendation. During the credit review process, upon selection of this recommendation the
calling application calls the form function to present pages to the user to enter data that is
stored in the calling application.
Generally, a recommendation is specific to the type of review that was just concluded. For
example, a credit review that was originally initiated by an order hold would most likely result
in a recommendation to either:
Increase the credit limit to accommodate the amount of the order and remove the order
from hold; or
Deny the request for an increase in the credit limit and leave the order on hold.

Page35
Implementing the Recommendation

Implementing the Recommendation

Receivables automatically implements the recommendation after all required parties have
approved it.
For example, if the recommendation indicates that the order should be removed from credit
hold, then the workflow will call the Remove Credit Hold API and pass the necessary
information, such as order ID, account ID, and so on, to initiate the process.

Page36
Multi-Period Financial Data Comparison

Multi-Period Financial Data Comparison

Enter multi-period financial data in the credit application (case folder) or credit request window
in the calling application. This allows you to compare multi-period financial data.

Page37
Automatic Assessment of Guarantors

Automatic Assessment of Guarantors

If the credit review request submitted by the source application has a guarantor, then Credit
Management provides the ability to perform a credit review and assess the credit worthiness
of the guarantor. Separate case folders are created for the original credit request and the
guarantor. Links are provided in the case folder for users to cross reference and drill down to
view borrower or guarantor details.

Page38
Credit Decision Appeals

Credit Decision Appeals

Resubmission
The resubmission creates a new credit request, which undergoes the same general process in
Credit Management as the original request.
Withdraw
At any point, you can withdraw your application. The withdrawal of an application suspends at
once all activities related to credit application, analysis, decision, and approval.

Page39
Agenda

Page40
Credit Management Application Workflow

Credit Management Application Workflow

For each credit review, the workflow checks the automation rules that you previously defined:
If the credit review is automated, then the workflow attempts to automatically make and
implement credit decisions without user intervention.
If the workflow stops due to conditions such as missing data, then the workflow routes
notifications to the appropriate credit analyst for resolution.
If a credit analyst was never assigned because the credit review was automated, then
the workflow notifies the user with the Credit Scheduler responsibility that a credit
analyst must be assigned. The Credit Scheduler can select the credit analyst to be
assigned from the list of values. The assigned credit analyst then receives a notification
that there is a credit request in analysts queue.
If the credit review is not automated, then the workflow assigns the credit review to the
appropriate credit analyst and notifies the analyst about the assignment.
With unautomated credit reviews, credit analysts make recommendations, such as
increasing or decreasing the credit limit, after performing the credit analysis.

Page41
Oracle Approvals Management (AME)

Oracle Approvals Management (AME)

Once you define the rules for a given application, the Oracle Approvals Management Engine
manages the approvals for that applications transactions.
If approval is required, then the workflow routes notifications according to the approval
hierarchy:
If the recommendation is approved by the appropriate personnel, then the workflow
automatically implements the decision.
If the recommendation is rejected as it is routed through the approval hierarchy, then the
workflow sends notifications to the appropriate personnel and updates the case folder.
If a credit analyst cannot be identified, then the workflow notifies the person assigned to the
Credit Scheduler role that a credit analyst assignment is required. The Credit Scheduler is a
role used in Credit Management to assign credit tasks to credit analysts.

Page42
Agenda

Page43
Review Credit Management Performance

Review Credit Management Performance

On the Performance tab, you can access simple views that indicate the workload and
effectiveness of the checklists and scoring models that you have set up and used in credit
reviews, including:
Credit Workload Quick Check
Top 10 Customer Credit Exposure
Customer Trends (Pay Trend)
Checklist Usage by Month
Scoring Model Usage by Month

Page44
Agenda

Page45
Define Credit Hierarchies

Define Credit Hierarchies

Relationship Manager lets you easily build, view, and edit relationships between entities.
Using Relationship Manager, you can:
View a single party and all its relationships
Create new relationships and edit existing relationships
Focus on a particular portion of a hierarchy and edit the hierarchical structure

Page46
Identify a Credit Hierarchy

Identify a Credit Hierarchy

Using Relationship Manager, you assign to your entities an existing relationship type, such as
Global Ultimate, or your own user-defined Credit Management relationship type. You then link
the relationships to Credit Management by assigning the relationship type to the AR: Credit
Hierarchy Type profile option.
When you conduct a credit review for an entity that has hierarchical relationships, Credit
Management consolidates and displays all data for the entire hierarchy.

Page47
Summary

Page48
 Implement Customer
Invoicing
Chapter 8

Page49
Implement Customer Invoicing

Page50
Objectives

Page51
Agenda

Page52
Required Setup Steps for Transactions

Required Setup Steps for Transactions

Before you can use customer invoices, you must complete these setups:
Customers: Define customers, including Bill To and Ship To addresses, for transaction
processing. Enable Balance Forward Billing at the customer profile class level, and at
the account and site profile levels, to send one balance forward bill to a customer for a
billing period. A balance forward bill includes all of a customers transactions (with
balance forward billing payment terms) for the billing period and any balance carried
forward from the previous billing period. You can generate balance forward bills
consolidated at either the customer account or site level, depending on whether you
selected account or site as the bill level in the customer profile class and account profile.
See: Manage Parties and Customer Accounts for detailed information about setting up
customer records.
Receivables Transaction Types: Transaction types add default information to
transactions.
AutoAccounting: Specify the General Ledger accounts for transactions that you enter
manually or import using AutoInvoice.
Payment Terms: Determine the payment schedule and cash discount information for
customer invoices, debit memos, and commitments. You need to define balance forward
billing payment terms to use the balance forward billing feature.

Page53
 Transaction Sources: Transaction sources control transaction and batch numbering
and provide default information.
Remit-to addresses: Inform customers where to send payments.
System and Profile Options: Provide default values for some Receivables operations,
such as how Receivables processes data and controls the actions users can perform.

Page54
Receivables Transaction Types

Receivables Transaction Types

Receivables, Vision Operations (USA)

(N) Setup > Transactions > Transaction Types

Use transaction types to define the accounting for Receivables debit memos, credit memos,
on-account credits, chargebacks, commitments, invoices, and bills receivable. Transaction
types can be used to default the legal entity to the transaction. Transaction types also
determine whether your transaction entries update your customer balances and whether
Receivables posts these transactions to general ledger.
You must set up transaction types before you can enter invoices.
Transaction types determine:
Transaction class: debit memo, credit memo, on-account credit, chargeback,
commitment, invoice, bills receivable.
Natural application setting.
If the transaction can be posted to General Ledger (GL).

Page55
 If the transaction is an open receivable, that is, updates customer balances for debit
memos, credit memos, chargebacks, and on-account credits.
If the transaction excludes late charges.
If freight can be entered.
If a tax classification code defaults to the transaction line.
Default credit memo type for an invoice.
Default invoice type for a commitment.
Creation sign.

Legal Entity Defaulting

If you are using a shared accounting environment, you can optionally assign a legal entity to a
transaction type to default to the transaction. Receivables looks first to the transaction type for
a legal entity to default to the transaction. If a legal entity has not been assigned to the
transaction type, then Receivables looks to the transaction batch source for the legal entity. If
Receivables cannot find a default legal entity, then the user must enter the legal entity on the
transaction line. The legal entities available for selection on the transaction type, transaction
batch source, and transaction line are the legal entities assigned to the ledger that is assigned
to the active operating unit.
If you are using an exclusive accounting environment, with one legal entity only assigned to
the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the
legal entity to all transactions.

Excluding Late Charge Calculation

Select the Exclude from Late Charges Calculation checkbox either to exclude specific invoice
types or to exclude your Interest Invoices if you do not want interest charged against them.

Tax Classification Code Defaulting

You can optionally enable the Default tax classification option on the transaction type to
default a tax classification code to the transaction line. The defaulting and usage of tax
classification codes is controlled by Oracle E-Business Tax. The tax classification code
represents the tax code migrated from Release 11i tax content. You use tax classification
codes as determining factors in tax calculation only when you choose to use the Release 11i
tax model in E-Business Tax. See: Order to Cash: Tax Processing for more information about
using tax classification codes.
Note:
For guarantees and deposits, the creation sign must be Positive.
You can update the Operating Unit field (and the legal entity associated with the
operating unit) with any operating unit assigned to your responsibility.

Page56
Using Natural Application

Using Natural Application

Applications to transactions are processed differently, depending on the natural application
setting of the transaction type:
Natural Application Only Selected, Allow Overapplication Clear.
Receivables allows any application that reduces the transaction amount toward or to
zero without changing the sign of the transaction.
For example, if the transaction amount is +$500, Receivables allows the applications as
shown in the top section of the diagram.
Natural Application Only Clear, Allow Overapplication Selected or Clear.
Receivables allows any application that either reduces or increases the transaction,
even if the application changes the sign of the transaction, as shown in the bottom
section of the diagram.

Page57
Deposit Transaction Type

Deposit Transaction Type

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 offset account.

Page58
AutoAccounting

AutoAccounting
Receivables, Vision Operations (USA)

(N) Setup > Transactions > AutoAccounting

AutoAccounting is a powerful and flexible tool that automatically creates General Ledger
accounting flexfields for Receivables transactions. When AutoAccounting is run, Receivables
assigns valid accounting flexfields to invoices and credit memos and automatically generates
valid accounting flexfields for Freight, Receivable, Revenue, AutoInvoice Clearing, Tax,
Unbilled Receivable, and Unearned Revenue accounts.
Note that the default accounting that AutoAccounting creates is considered interim accounting
only. Oracle Subledger Accounting accepts the default accounts that AutoAccounting derives
without change. If necessary, however, you can modify the accounting rules in Subledger
Accounting to create accounting that meets your business requirements.
AutoAccounting determines the General Ledger (GL) accounts for invoices by deriving a value
for each segment of the accounting flexfield:
When setting up AutoAccounting, rules define how Receivables should derive the value
for each segment. This can either be a constant value or a table.

Page59
 For each account type, define the flexfield segments by selecting a table name or
entering a constant value. The tables that can be used for segment values are
Transaction Types, Salesperson, Customer - Bill To, Standard Line, Freight (for Freight
Account only), and Tax Rate Code.

Page60
Balance Forward Billing Cycle

Balance Forward Billing Cycle

Receivables, Vision Operations (USA)

(N) Setup > Print > Balance Forward Billing Cycles

Balance forward billing cycles determine:

Date that Receivables generates balance forward bills.
Transactions that are included in balance forward bills.
Define a balance forward billing cycle by entering its name, description, start date, and
frequency in the Balance Forward Billing Cycles window. Depending on the frequency, a
balance forward billing cycle can be daily, weekly, or monthly.
To define daily cycles:
1. Enter the number of days the billing should repeat.
2. (Optional) Select Exclude Saturdays and Sundays.
To define weekly cycles:
1. Enter the number of weeks the billing should repeat.

Page61
 2. Select the day of the week the billing should occur.
To define monthly cycles:
1. Enter the number of months the billing should repeat.
2. Select the day of the month the billing should occur. Billing can occur on more than one
day. For cycles with a billing day between 29 and 31, Receivables considers the last day
of the month as the billing day for months with fewer days.
3. Select either All Days or Exclude Saturdays and Sundays.

Page62
Payment Terms

Payment Terms
Receivables, Vision Operations (USA)

(N) Setup > Transactions > Payment Terms

Define standard payment terms to determine payment schedules and percentages of

discounts allowed.
The formula used to determine the amount due is:
- Amount Due = Relative Amount/Base Amount x Invoice Amount.
- For example: Relative Amount = 60%/Base Amount = 100% would be 60% of
Invoice amount.
Select the Credit Check check box to trigger Order Management credit check.
Enter the number of days before the due date that the invoice should be printed.
Allow discounts on partial payments by selecting the Allow Discount on Partial Payments
checkbox.
Specify how to allocate tax and freight on invoices with split terms: in the first installment,
or prorated across all installments.

Page63
Defining Balance Forward Billing Payment Terms
If you want to use a payment term for balance forward billing to send a single bill, consolidated
at either the customer account or site level, select a balance forward billing cycle from the
Billing Cycle list of values.
Because balance forward bills cannot be split across installments, in the case of a balance
forward payment term:
Any value entered in Base Amount defaults to 100.
Installment Options is disabled, and any data entered before selecting a billing cycle
defaults to include tax and freight in the first installment.
You can populate only one row in the Payment Schedule section; the Sequence Number
and Relative Amount values for the row default respectively to 1 and 100.
Date Due is disabled. However, you can populate Days, Day of Month, and Months
Ahead.
Note: You cannot change an existing payment term back and forth for use as both a non-
balance forward billing and balance forward billing payment term.

Page64
Transaction Sources

Transaction Sources
Receivables, Vision Operations (USA)

(N) Setup > Transactions > Sources

The following are the transaction sources details:

Transaction sources are used to control transaction batching and numbering, and to
specify default transaction values.
Assign a default legal entity to the transaction.
Select validation options for imported transactions.
Assign batch sources to invoices, debit memos, commitments, credit memos, and on-
account credits.
Create a batch source for late charges, if applicable.
Set up for automated non-credit card refunds.
When setting up the Credit Memo Workflow, assign a Manual source.

Page65
 Select the Copy Document Number to Transaction Number check box to use the same
value for both the document number and the transaction number for transactions
assigned to this source. You must check the box if using Gapless document sequences.
Legal Entity Defaulting
If you are using a shared accounting environment, you can optionally assign a legal entity to a
transaction batch source to default to the transaction. Receivables looks first to the
transaction type for a legal entity to default to the transaction. If a legal entity has not been
assigned to the transaction type, then Receivables looks to the transaction batch source
for the legal entity. If Receivables cannot find a default legal entity, then the user must
enter the legal entity on the transaction line. The legal entities available for selection on the
transaction type, transaction batch source, and transaction line are the legal entities
assigned to the ledger that is assigned to the active operating unit.
If you are using an exclusive accounting environment, with one legal entity only assigned to
the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the
legal entity to all transactions.

Batch Source for Late Charges

If the late charge policy for any of your Operating Units is to create either Interest Invoices or
Debit Memos, then create a separate batch source for late charges. Create a batch source
for Interest Invoice or Debit Memo late charges with Type Imported. The batch source
Type is Imported because the Interest Invoice and Debit Memo creation is done as a batch
process that calls the Invoice API. You then assign this source in the System Options
window.

Automated Non-Credit Card Refunds

You can set up Receivables to automate the refund process for non-credit card transactions.
Receivables submits the refund request to Payables, and Payables in turn transacts
refunds through Oracle Payments.
To set up for automated refunds:
1. Create a Refund receivables activity. The Refund activity type applies exclusively to
automated non-credit card refunds.
Note: Use the Credit Card Refund activity type for credit card refunds.
2. Set the Receipt Handling for Credits field to Refund in the transaction source. You set
this option to Refund for both credit card and non-credit card automated refunds.
Note: For AutoInvoice feeds from the Service Contracts module, you must use the seeded
Transaction Source of OKS_CONTRACTS. See: Transaction Batch Sources, Oracle
Receivables Implementation Guide for more information.

Page66
Remit-to Addresses

Remit-to Addresses
Receivables, Vision Operations (USA)

(N) Setup > Print > Remit-to Address

A remit-to address is the address that is used to send payment for an invoice. You can set up
remit-to information in the Remit To Addresses window to default to transactions (excluding
credit memos).
You can designate a remit-to address for one or more countries. This remit-to address is
assigned to all invoices of customers with a bill-to address in the designated country or
countries.
You can also set up a default remit-to address. A default remit-to address defaults to the
Remit-to Address region when you enter transactions. In addition, AutoInvoice will not reject
invoices because it is not able to determine a remit-to address.
For United States remit-to addresses, 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.

Page67
System Options Relating to Transactions

System Options Relating to Transactions

Receivables, Vision Operations (USA)

(N) Setup > System > System Options > (T) Accounting
(N) Setup > System > System Options > (T) Transactions and Customers

The following are the system options details:

Header Level Rounding: Assign a special account for rounding differences when
converting foreign currency transactions to your functional currency. The Header Level
Rounding is enabled on the Accounting tab.
Caution: This option cannot be disabled once the box has been selected. Header Level
Rounding adds an additional line to every transaction regardless of the currency.
Automatic Journal Import: Automatically import the batches you transfer by checking this
box on the Accounting tab. The value becomes the default value on the Run GL Journal
Import field in the Run General Ledger Interface window.
Allow Change to Printed Transactions: Allow updates to printed transactions by checking
this box on the Transactions and Customers tab.

Page68
 Allow Transaction Deletion: Allow a transaction to be deleted from Receivables after it
has been saved by checking this box on the Transactions and Customers tab.
Caution: Do not enable this option if using gapless numbering of transactions.
Note: There are system options relating to AutoInvoicing as well. For more information
on System Options relating to Autoinvoicing, refer to Order to Cash: Process Invoices
Using AutoInvoice.

Page69
System Options Relating to Late Charges

System Options Relating to Late Charges

Receivables, Vision Operations (USA)

(N) Setup > System > System Options > (T) Transactions and Customers

Use the Late Charges region in the Transactions and Customers tabbed region of the System
Options window to assign late charge policy details to the applicable operating unit.
Select the Assess Late Charges checkbox.
Note: You must select this checkbox to enable your late charge policy. If this system
option is not selected, then Receivables will not create late charges for a customer, even
if that customer is enabled for late charges at the account or site level.
Enter the transaction types that were previously created for Interest Invoice and Debit
Memo late charges.
If interest charges are in the form of adjustments, enter the Receivables activity that was
previously created for late charges. The late charges program uses this value when no
value is assigned at the customer account or site level.
If the late charge policy includes penalty charges, enter the Receivables activity that was
previously created for late charges.

Page70
 If the late charge policy is to create either Interest Invoices or Debit Memos, then enter
the batch source that was previously created for late charges.
If the late charges policy uses Balance Forward Billing and the Average Daily Balance
method to assess late charges, enter the average daily balance calculation details.

Page71
Miscellaneous System Options

Miscellaneous System Options

Receivables, Vision Operations (USA)

(N) Setup > System > System Options > (T) Miscellaneous

The Miscellaneous tabbed region of the System Options window contains several parameters
that affect transactions.
Discount Basis: Use this option to calculate discounts on your invoices. The discount
options are:
- Invoice Amount
- Lines Only
- Lines, Freight Items and Tax
- Lines and Tax, not Freight Items and Tax
Require Salesperson: Select this checkbox to require salespersons to be selected
when entering transactions.
Print Remit to Address: Select this checkbox to print your remit-to address on your
customer statements.

Page72
 Print Home Country: Select this option to print your home country on your invoices and
statements that refer to addresses in that country.
Source of Territory: Enter the Source of Territory to default to the Salespersons,
Transactions, and Customers UI. Receivables uses this value to determine the default
territory for invoices and commitments. Selections are: Bill-To Site, Salesrep, Ship-To
Site, and None.

Page73
Profile Options

Profile Options
System Administrator

(N) Profile > System

The following profile options are used:

AR: Allow Update of Existing Sales Credits: Determines whether you can update existing
sales credits.
AR: Change Customer on Transaction: Determines whether you can update customer
names in the Transaction windows.
AR: Default Exchange Rate Type: Determines the default exchange rate to use when
converting foreign currency transactions to your functional currency.
AR: Override Adjustment Activity Account Option: Determines whether you can override
the default adjustment account when entering or updating manual adjustments and
when updating automatic adjustments.
AR: Transaction Batch Source: Determines the default invoice source that will appear in
the Batch field of the Transaction window and Credit Memo window.

Page74
 AR: Use Invoice Accounting For Credit Memos: Determines whether to assign your
credit memo to the same accounts that are assigned to the invoice you are crediting.
See: Appendix A, Oracle Receivables Profile Options, Oracle Receivables Implementation
Guide for complete information about Receivables profile options.

Page75
Implementation Considerations for Transactions

Implementation Considerations for Transactions

For AutoAccounting, when using a table as a source of a segment, make sure the
General Ledger accounts are defined for the source. For example, if you select the
Company segment to be derived from the transaction type for Revenue, the revenue
account must be entered for all transaction types.
For payment terms, decide on discounting, balance forward billing, split payment terms,
and allocating tax and freight.
Note: You cannot use line level cash application on invoices with split payment terms
For transaction batch sources, select Value to import a record into AutoInvoice tables
using its actual name (non-Oracle system); select ID to use its internal identifier (Oracle
system). If you use an Oracle system, then ID is quicker because of the shorter
character length. For example, it is quicker to read 2309 than Business World.

Page76
Implementation Considerations for Remit-To Addresses

Implementation Considerations for Remit-To Addresses

Define lockbox addresses as remit-to addresses to let customers know where to send
payment.
To catch any missing assignments, set up a remit-to address assigned to a default
location. If you enter or import an invoice with an address that does not correspond to
any of your assignments, it uses the default remit-to address.

Page77
Optional Setup Steps for Customer Invoices

Optional Setup Steps for Customer Invoices

The following are optional setup steps for customer invoices:
Accounting Rules: If your accounting method is Accrual, use rules to create revenue
recognition schedules for your invoices.
See: Process Invoices: Accounting Rules for information about accounting rule types
and how to use them to recognize revenue.
Salespeople: To allocate sales credits to invoices, debit memos and commitments. If
you do not want to assign sales credits to a transaction, you can enter No Sales Credit.
Standard Memo Lines: To enter predefined lines for debit memos, on-account credits,
and invoices.
Document Sequencing: To assign unique numbers to documents and account for each
transaction that is entered.
Statements: To create statements to send to customers.
- Define Aging Buckets: To review and report on open receivables based on the
number of days each item is past due.
- Define Statement Cycles: To control when you create customer statements.
- Define Messages: To customize messages on customer statements.

Page78
 Balance Forward Billing: To create balance forward billing invoices to send to
customers.
- Set the AR: Show Billing Number profile option to Yes to display the balance
forward billing invoice number in Receivable windows and reports.
- Define New or Update Existing Customer Profiles: To determine which customers
will receive a balance forward billing invoice.
- Define Proxima Payment Terms: To determine the cutoff date and payment terms
used with balance forward billing invoices.
- Assign Payment Terms: Assign to the Bill To site of each customer that you set up
to receive a balance forward billing invoice.
Tiered Interest Rates for Late Charges: Customize late charges for both interest and
penalties by creating interest tiers and assigning the tiers to a charge schedule.

Page79
Salespeople

Salespeople
Receivables, Vision Operations (USA)

(N) Setup > Transactions > Salespersons/Resources

If you are setting up salespeople in Receivables rather than in Human Resources:

Define salespeople to allocate sales credits for transactions.
Determine the source of the Territory Flexfield default for the Transactions window by
entering a value in the Source of Territory field in the Miscellaneous tabbed region of the
System Options window.
Determine whether a salesperson is required when entering transactions by selecting
the check box for Require Salesperson in the Miscellaneous tabbed region of the
System Options window.

Page80
Standard Memo Lines

Standard Memo Lines

Receivables, Vision Operations (USA)

(N) Setup > Transactions > Memo Lines

Memo lines can be used to define goods or services that are sold frequently, but have not
been defined as inventory items, such as Annual Maintenance Contracts or Consulting
Services.
Select one of the following standard line types: Charges, Freight, Line, or Tax.
You can enter a tax classification code and tax product category to associate with a
standard memo line. These values are passed to E-Business Tax for tax calculation.
If the price is constant, you can enter a unit price which defaults when this memo line is
used.
Tax Classification Code and Tax Product Category Defaulting
The defaulting and usage of tax classification codes is controlled by Oracle E-Business Tax.
The tax classification code represents the tax code migrated from Release 11i tax content.

Page81
You use tax classification codes as determining factors in tax calculation only when you
choose to use the Release 11i tax model in E-Business Tax.
The tax product category is used by E-Business Tax when the product category is a
determining factor in tax calculation. Tax product categories are most relevant to VAT-based
taxes, where the item must be identified correctly for tax rate determination. See: Order to
Cash: Tax Processing for more information.

Page82
Setting Up Document Sequencing

Setting Up Document Sequencing

System Administrator

(N) Application > Document > Define

Note the following points:

Using the document sequence number as the transaction number makes tracking
transactions easy.
When you create a transaction type in Receivables, the document sequencing category
is created automatically.
See: Oracle Applications System Administrators Guide Configuration for more information
about Document Sequencing.

Page83
Setting Up Gapless Transaction Numbering

Setting Up Gapless Transaction Numbering

Receivables, Vision Operations (USA)

(N) Setup > System Options > (T) Transactions and Customers
(N) Setup > Transactions > Sources > (T) Batch Source

Gapless transaction numbering gives a better audit trail and meets legal requirements for
certain countries. To ensure gapless numbering, do not check the Allow Transaction Deletion
check box in the Transactions and Customers tabbed region of the Systems Options window.
The Document Number Generation Level system option in the Transactions and Customers
tabbed region of the Systems Options window identifies the point at which Receivables
generates a document number for transactions. This is either:
When the transaction is committed
When the transaction is completed
Working with Duplicate Invoice Numbers

Page84
If the Copy Document Number to Transaction Number check box is selected when creating
the transaction batch source, it is possible to have duplicate invoice numbers within a batch
source. For example, you are using the following settings:
Automatic Numbering in the Batch Source window is enabled.
Copy Document Number to Invoice check box is selected in the Batch Source window.
Document Number Generation Level system option is set to When the Transaction is
committed.
You create an invoice with a transaction type that does not require document sequencing, so
the invoice number is assigned from the batch source. You create another invoice with a
transaction type that requires document sequencing. The invoice number is created from the
document sequence number, which has the same numbering scheme as the batch source.
To avoid this, assign a different numbering scheme to your document sequence and attach
sources.
Note:
When using document sequencing, the original invoice number is saved to the underlying
tables (OLD_TRX_NUMBER column of the RA_CUSTOMER _TRX_ALL table). Though not
viewable from any window, once the document sequence number is assigned to the
transaction, you can query the old transaction number by entering & in the transaction
number field while in query mode. Then press [Ctrl] + [F11] to run the query. When a small
window opens, enter the Where criteria for the OLD_TRX_NUMBER and click the OK button.
If you do not select the Copy Document Number to Invoice Option, Receivables does not
allow duplicate transactions within a batch.

Page85
Setting Up Statements

Setting Up Statements
Receivables, Vision Operations (USA)

(N) Setup > Collections > Aging Buckets

(N) Setup > Print > Statement Cycles
(N) Setup > Print > Standard Messages

Statements communicate activity to your customers about invoices, credit memos, debit
memos, payments, on-account credits, chargebacks, deposits, and adjustments.
Define Aging Buckets for statements. The seeded Statement Aging bucket contains five
periods. Receivables also prints your customer past due balances based on aging
buckets.
Define Statement Cycles.
Define Messages (optional). You can enhance your statements by printing your own
custom messages.

Page86
Balance Forward Bills

Balance Forward Bills

A Balance Forward Bill includes the following information:
A beginning balance or the balance carried over from the last billing period.
An itemized list of current charges and activities (such as invoices, credit memos, debit
memos, adjustments) in either summary or detail format.
Payment received for the last billing period.
Current total outstanding balance.
Note: You cannot update transactions that are included on a balance forward bill, regardless
of how you set the system option Allow Change to Printed Transactions. Because
Receivables considers inclusion of a balance forward bill to be an activity, you cannot update
a transaction once it has an activity against it.

Page87
Setting Up Balance Forward Billing

Setting Up Balance Forward Billing

Receivables, Vision Operations (USA)

(N) Setup > Print > Balance Forward Billing Cycles

(N) Setup > Transactions > Payment Terms
(N) Customers > Profile Classes > Profile Class
(N) Customers > Account Overview > Account Profile
(N) Customers > Account Site Overview > Profile
(N) Setup > System > System Options

The key Balance Forward Billing setup steps are as follows:

1. Define Balance Forward Billing Cycles. The Balance Forward Billing program uses
balance forward billing cycles:
1. To determine the billing date of a balance forward bill.
2. To select the transactions to include in the balance forward bill.

Page88
 2. Define Balance Forward Billing Payment Terms. The payment term is the criteria that
Receivables uses to select transactions to be part of the balance forward bill. The due
date of a transaction is derived from the billing date and the payment term. The billing
date is derived from the transaction date and the billing cycle.
1. Create one or more payment terms for use with balance forward billing by
assigning a balance forward billing cycle to a payment term.
2. Assign balance forward billing payment terms at the customer profile class,
account, or site level.
3. Receivables defaults the assigned payment term during transaction entry.
3. Enable Balance Forward Billing. You can set up balance forward billing to generate bills
consolidated at either the customer account or site level:
1. To generate account level bills, select Account as the Bill Level at the customer
profile class and account profile level. To generate site level bills, select Site as the
Bill Level at the customer profile class and account profile level. The Bill Level at
the site profile level is a read-only field, defaulted from the account profile level.
2. Account-level balance forward billing lets you generate one bill for each operating
unit of the account, addressed to the primary bill-to site of the account.
3. Site-level balance forward billing lets you generate a balance forward bill for each
bill-to site of a customer with multiple bill-to sites.
4. Receivables defaults the assigned payment term during transaction entry.
Note: Select Override terms to exclude one or more sites, and even one or more
transactions, from a balance forward bill.
Note: Set the Show Billing Number system option to Yes to show the billing number in the
various Transactions windows. The Imported Billing Number feature provides you with an
alternative way of grouping your imported invoices at the site level for consolidated
presentation of billing. You supply the value for the billing number and then create your
own custom consolidated bill formats.

Page89
Setting Up Tiered Interest Rates for Late Charges

Setting Up Tiered Interest Rates for Late Charges

Receivables, Vision Operations (USA)

(N) Setup > Collections > Aging Buckets and Interest Tiers
(N) Late Charges > Charge Schedules
(N) > Customers > Customers > Customer Search > Account Details > (T) Late Charges.

The setup steps for Tiered Interest Rates are:

1. In the Aging Buckets and Interest Tiers window:
1. Enter a Name and select the Type Interest Tier.
2. In the Lines region select Type Past Due and specify the day ranges.
2. In the Charge Schedules window:
1. Enter a Schedule Name and Description.
2. Enter the Interest Tier you previously created.
3. Select a Schedule Type of Amount (flat amount) or Percentage (percentage of
overdue invoice).

Page90
 4. Enter the schedule Start Date. If the effective dates occur across a charge
calculation period, the Use Multiple Interest Rates option will have charges
calculated at more than one rate during that charge period. This applies only to
Interest, not Penalties.
5. Enter the Tiers and assign a Value of either a flat amount or a percentage
(depending on the Schedule Type) to each tier.
3. In the Late Charges tabbed region of the Customers page, enter or update late charge
policy details.

Page91
Overview of Transaction Printing Views

Overview of Transaction Printing Views

Transaction Printing Views are used for developers to access the transaction tables to
customize invoices. In the past, a developer had to be very familiar with the transaction tables
to be able to customize invoices. Now, the developer does not need to know the tables
because the view extracts the information.
Although Receivables makes extracting transaction information easier, it is necessary to
know SQL in order to create a customized invoice.
A view contains a SQL select statement.
You use views to select information from the tables, such as the transaction tables.
A view can reference multiple tables so that when you point to a view, Receivables
retrieves the data from these tables without needing to know all the tables.
There are modules that create the view structure for the transaction printing procedure.
- You must run these modules in the order in which they appear, because
dependencies exist between some of the files.
See: Appendix D, Oracle Receivables Transaction Printing Views, Oracle Receivables User
Guide for more information about transaction printing views.

Page92
Transaction Printing Views

Transaction Printing Views

AR_INVOICE_HEADER_V: The main view. It retrieves the header information of the
report. It has two parts, one for adjustments and one for nonadjustments.
AR_INVOICE_ADJ_V: Retrieves the details of an adjustment.
AR_INVOICE_LINES_V: Retrieves the line items of each transaction retrieved by
AR_INVOICE_HEADER_V.
AR_INVOICE_TAX_SUMMARY_V: Retrieves tax summary information for a
transaction.
AR_INVOICE_COMMITMENT_INFO_V: Retrieves commitment information for a
transaction.
AR_INVOICE_TOTALS_V: Retrieves the total amounts for all lines and associated
charges for a transaction (for example, lines, freight, and tax).
AR_INVOICE_INSTALLMENTS_V: Retrieves installment information for transactions
with multiple installments.
AR_INVOICE_COUNT_TERMS_V: Retrieves the number of terms for a transaction
(that is, transactions assigned to split payment terms).

Page93
Agenda

Page94
Define Transaction Types in Order

Define Transaction Types in Order

Define transaction types in the order indicated in this slide, in order to properly associate one
transaction type with another.
For example, define a credit memo first and then an invoice. Enter the credit memo in the
Credit Memo Type field when you create the Invoice transaction type. When you create a
credit memo for the invoice, the credit memo transaction type is defaulted.
You must define invoice transaction types before you define commitment transaction types.
Commitment transaction types are deposits and guarantees.
Suggestion: To be able to void a debit memo, credit memo, on-account credit or invoice,
define a Void transaction type with Open Receivables and Post to GL set to No. Then, as
long as there is no activity against the transaction and it has not posted to General Ledger,
you can make it invalid by simply changing the transaction type to Void.

Page95
Implementation Considerations for Document Sequencing
Enhancements

Implementation Considerations for Document Sequencing Enhancements

What type of document sequence should be used: Gapless, Automatic, or Manual?

Document sequences and batch source sequences should have different numbering
schemes. This is to prevent duplicate numbering before a transaction has a status of
Complete.
For gapless transaction numbering, do not allow deletion of invoices.

Page96
Function Security

Function Security

If you exclude the Transactions: Dispute function from the Transactions workbench, it is
automatically excluded from the Collections workbench.
The Copy and Print activities can be accessed either from a button or from the menu.
Excluding the function disables access from the button. The system administrator must
remove access from the menu when defining menu structures.
You can set up the same function security for debit memos (DM), credit memos (CM),
and on-account credits (OnAcc) as for invoices (Inv). Additionally, you can also set
function security for applying on-account credits (OnAcc: Applications).

Page97
Summary

Page98
 Receipts
Chapter 9

Page99
Receipts

Page100
Objectives

Page101
Agenda

Page102
Agenda

Page103
Oracle Receivables Overview

Oracle Receivables Overview

The Receivables process consists of several major steps. The Post Receipts steps will be
discussed in this topic.
Create Profile Classes: Defines several default values for customers with similar credit
terms and invoicing requirements.
Enter Customers: Creates information for the customer and defines the address for the
customer and the business purposes at each address.
Create Invoices: Uses AutoInvoice or manually created invoices to bill customers for
goods and services.
Print Invoices: Produces invoices to mail to customers.
Use iReceivables: Allows customers and employees to access customer accounts
online to see the status of invoices and receipts and to request credits online.
Post Receipts: Permits posting of customer payments as they are received.
Perform Collections: Enables collectors to use Advanced Collections to perform timely
and accurate collection activities.

Page104
Overview of Receipts

Overview of Receipts
You can handle a receipt from a customer in several ways, depending on the amount of the
receipt and total amount owed by the customer.
A customer may pay:
Full amount due for a specific invoice or group of invoices.
Partial payment on a specified invoice or specific transaction lines of an invoice.
Payment on the remaining balance of an account.
Overpay an account, creating an on-account credit.
If the customer does not provide clear and sufficient information, you may not be able to
accurately identify the customer and properly apply the receipt.

Page105
Receipt Creation

Receipt Creation
Receipts are created in one of three ways:
Manual Receipts: Standard and Miscellaneous receipts can be manually applied to
transactions or customer accounts. The Manual Receipt entry method provides more
control over the application of individual receipts to specific items.
QuickCash Receipts: Standard and AutoLockbox receipts can be applied using
QuickCash receipts. Use this method when you need to enter and apply receipts quickly,
because it only requires a minimal amount of information for each receipt and
application. Also, QuickCash provides an extra level of control for entering high volume
receipts, because it does not immediately affect your customers account balance.
QuickCash permits using AutoCash rules, placing receipts on-account, and entering
them as unidentified or unapplied.
Automatic Receipts: Credit Cards and Direct Debits can use Automatic Receipts to
automatically generate receipts for customers with whom you have predefined
agreements. These agreements let you collect payments on time by transferring funds
from the customers bank account to yours on the receipt maturity date. Prepayments
require Oracle Order Management.

Page106
Receipt Statuses

Receipt Statuses
Five receipt statuses are available:
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 that the receipt belongs
to a receipt class that requires remittance. For automatic receipts, this status indicates
that 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
nonsufficient funds, or if you want to re-enter and reapply it in Receivables. You can
reverse standard receipts and miscellaneous transactions.

Page107
Manual Receipt Entry Process

Manual Receipt Entry Process

Use the Receipts window or Receipt Batches window to begin the manual entry process.
Create a Batch: (Optional) Receipts are entered in batches or groups. Batches provide
the ability to:
- View the difference between control and actual counts and amounts.
- Group related receipts together that share the same default attributes.
- Manage the time-consuming task of data entry.
Note: Batches are optional for Standard Receipts, but required for QuickCash
receipts.
Enter Receipts: Enter each receipt individually or in batches.
Apply Receipts: Apply receipts to transactions or transaction lines, or on-account.
Enter Chargebacks and Adjustments: Create adjustments and chargebacks against
the transaction to which you are applying a receipt.
Post to GL (General Ledger): Transfer the receipt transaction subledger accounting to
General Ledger for recording.
Remit Receipts: Remit receipts to collect funds from Customer accounts.

Page108
Receipt Types

Receipt Types
Receivables, Vision Operations (USA)

(N) Receipts > Receipts

Manual receipts provide more control over the application of individual receipts. In the
Receipts window, you can enter a receipt, specify the customer, reverse a receipt, and apply a
receipt to one or many invoices using Search and Apply. Receipt Types are Standard or
Miscellaneous.
Cash Receipts: Payment (such as cash or check) that you receive from your customers
for goods or services. Account balances are updated as soon as the receipts are saved.
Miscellaneous Receipts: Non-invoice related revenue earned from investments,
interest, refunds, and stock sales. Receivables Activities determine the accounting for
these transactions.

(N) Receipts > Batches > Manual-Quick

Page109
QuickCash receipts let you post receipts and update account balances after running the Post
QuickCash program, rather than when the information is entered. QuickCash receipts require
batching.

Page110
Manual Receipts versus QuickCash Receipts

Manual Receipts versus QuickCash Receipts

Another difference between Manual Receipts and QuickCash Receipts is that manual receipts
updates a customers balance immediately, while QuickCash receipts do not immediately
affect a customers balance. After reviewing a QuickCash batch for accuracy, you must run
Post QuickCash to update your customers account balances.

Page111
Creating Batches

Creating Batches
Receivables, Vision Operations (USA)

(N) Receipts > Batches

Use batches to eliminate repetitive data entry by creating default batch-level information.
Define the following default values for a group of receipts:
- Receipt class: Determines the stages involved in receipt-to-cash cycles. These
stages are confirmation, remittance, and reconciliation.
- Receipt method: Provides accounting flexfield and bank account defaults.
- Deposit date: Default Batch Date and Deposit Date are the current date, but it can
be changed.
- GL date: Default GL date is the day of the most recent open period, but it can be
changed to any open or future enterable period.
- Apply date: Date the receipt is applied.
You can change default values for specific receipts, if necessary.

Page112
Validating Receipts in Batches

Validating Receipts in Batches

One of the advantages of batching is the ability to validate that the receipts entered tie to the
control total. The process is:
Enter the receipt count and the total receipt amount for the batch.
The actual count and amount is updated as each receipt is entered.
Difference between the control count and amount and the actual count and amount
indicate potential data-entry errors.

Page113
Batch Statuses

Batch Statuses
A batch has a status that indicates whether it is complete. Receivables automatically updates
the batch status of a receipt batch when you add new or apply existing receipts in the batch.

Page114
Agenda

Page115
Applying Batch Receipts

Applying Batch Receipts

When you enter receipts and applications in a QuickCash batch or import them using
AutoLockbox, Receivables stores the data in an interim table. QuickCash lets you apply your
receipts to one or many transactions, use AutoCash rules, place receipts on-account, or enter
them as unidentified or unapplied.
Use the QuickCash window to review receipts and ensure that application information is
correct.
Run Post QuickCash to update the customers account balances.
Note: If you do not identify the customer for a receipt, Receivables automatically assigns the
receipt a status of Unidentified.

Page116
Applying Receipts to an Invoice

Applying Receipts to an Invoice

Use the Applications window or Search and Apply window to apply your receipts or on-
account credits.
Apply receipts to multiple invoices, single invoice, or on-account.
Apply a receipt to open debit items to reduce the outstanding balance.
Apply receipts to specific transaction lines.
Control who can create adjustments and chargebacks with the AR: Cash-Allow Actions
profile option.
In the Balances region of the Receipts window, receipts are shown as:
Applied: Receipt is matched to a transaction.
On-Account: The amount of the receipt is put on the customers account and may be
applied later.
Unapplied: Receipt has not been applied to a transaction.
Unidentified: Customer for this receipt has not been identified.
Note: Partially applied receipts will have a status of Unapplied until they are fully applied.

Page117
Applying Receipts at Line Level

Applying Receipts at Line Level

Receivables, Vision Operations (USA) or
Order Management Super User, Vision Operations (USA)

(N) Receipts > Receipts > (B) Apply > Applications > (B) Apply in Detail > Detailed
Applications

Use line-level cash application to apply receipts against specific transaction lines, according to
your customers remittance advice.
For example, if your customer received only Item X, out of the three items X, Y, and Z shipped
to the customer, and remitted payment only for Item X, then you can apply your customers
payment to Item X. Later, after your customer receives Item Y and remits payment, you can
apply the payment for Item Y. When the customer receives Item Z and remits payment, you
have the option to unapply line-level cash applications for item X and Y and reapply the
receipts against the entire transaction.
Receivables lets you update an existing transaction-level receipt application to a line-level
receipt application. For example, after applying a receipt against an entire transaction, you

Page118
later learn that the customer only wanted to partially pay the transaction. In this case, you can
unapply the original receipt application and reapply the receipt to specific transaction lines.
Note: Line-level cash application functionality is available only for invoices, debit memos, and
chargebacks with line details. You cannot use line-level cash application with any other
transactions, including invoices with installments. In addition, you cannot update a transaction
level receipt application for an existing invoice created with earlier releases of Oracle
Receivables to a line-level receipt application, if there is any activity against the invoice.
Invoice activity includes receipt application, adjustments, deposits, or credit memo
applications.
The line-level cash application functionality provides the following receipt application options:
Transaction: This option lets you apply receipts at a summary level. You can enter
amounts by line type: Line, Tax, Freight, or Charges. If you enter a Line or Tax amount,
then Receivables prorates the application across all transaction lines.
All Lines: This option lets you apply receipts to specific lines. You can select one or
more transaction lines. Receivables enters the Amount Applied for this receipt and
updates the Balance Due for this transaction, but you can change the amount applied.
Note: If you want to apply cash to most, even if not all, transaction lines, then choose
Select All Lines. Receivables applies the receipt to all transaction lines; you can then
deselect the unwanted transaction lines.
All Groups: This option lets you apply receipts to transaction lines of a selected group.
This option displays only if group attributes are imported into Receivables from a feeder
system, such as Oracle Service Contracts. You can select one or more groups.
Receivables prorates the application across all transaction lines assigned to the selected
group.
Note: If you want to apply cash to most, even if not all, groups, then choose Select All
Groups. Receivables applies the receipt to all transaction lines in all groups; you can
then deselect the unwanted groups.
Specific Groups: Select a group to apply cash to selected transaction lines within the
selected group. Specific groups display only if group attributes are imported into
Receivables from a feeder system, such as Oracle Service Contracts. You can select
one or more transaction lines assigned to the selected group.
Freight and Charges: This option lets you apply receipts to freight and charges at the
invoice level only. You can apply cash to freight and charges either before or after you
apply cash to transaction lines. When you select this option, Receivables displays freight
and charges on separate lines, if they exist. Receivables automatically calculates earned
discounts. You must manually enter unearned discounts.

Page119
Applications Window

Applications Window
Receivables, Vision Operations (USA)

(N) Receipts > Receipts > (B) Apply

In the Applications window, you can:

Apply a receipt to many invoices or put cash on account.
Apply a receipt to an invoice in a different currency.
Apply a receipt against specific transaction lines (invoices, debit memos, and
chargebacks only).
Apply a receipt against another open receipt (netting receipts).
Create an adjustment to write off a transaction balance or unapplied receipt balances.
Create a chargeback to create a new transaction for the balance of a transaction.
Apply discounts.
Refund all or part of a previously remitted receipt (credit card or non-credit card), either
manually or automatically using AutoInvoice.

Page120
 Put invoice-related short payments or non-invoice related overpayments or short
payments into claim investigation.
Note: When you create a claim for an invoice, Receivables places the related invoice in
dispute until the claim is resolved. (For users of Oracle Marketing Online Trade
Management only.)
See also:
Process Invoices Using AutoInvoice: Automated Refunds
Process Invoices: Manual Refunds

Page121
Criteria for Mass Applying Receipts

Criteria For Mass Applying Receipts

Receivables, Vision Operations (USA)

(N) Receipts > Receipts > (B) Search and Apply

In the Search and Apply window, you can mass apply receipts to several transactions based
on certain sort criteria. When using the Search and Apply window:
Apply a receipt to open debit items automatically.
Apply receipts based on the criteria you specify.
Review receipts before applying them or apply the receipts automatically.

Page122
AP/AR Netting

AP/AR Netting
A business enterprise that is both a customer and a supplier to the deploying company is
called a trading partner. The AP/AR Netting process lets the deploying company offset their
Payables and Receivables transactions against the same trading partner.
AP/AR Netting automatically compares Payables to Receivables and creates the appropriate
transaction in each system to net supplier invoices and customer invoices. The netting
process runs against the specified trading partners and transaction dates, and produces these
results:
If Receivables has a larger outstanding balance than Payables, then the final netting
amount is the sum of the Payables open selected transactions.
If Payables has a larger outstanding balance than Receivables, then the final netting
amount is the sum of the Receivables open selected transactions.
If there is no outstanding balance in Payables or Receivables, the netting process
applies the receipts and closes the invoices to avoid the invoices becoming overdue.
The netting process creates a Payables payment and a Receivables receipt to offset the
Payables and Receivables balances due to netting.
One Receivables receipt is created to total the final netting amount. Once the receipt is
created for netting, it cannot be unapplied.

Page123
Prepayments

Prepayments
A prepayment is payment in advance of the delivery of goods or services. Receivables
creates prepayments as receipts before the related invoices are created.
Receivables integrates with Oracle Payments to process prepayments. Customers can use
any of these payment instruments to make a prepayment:
Automatic Clearing House (ACH) bank account transfer
Cash
Check (tendered to order taker)
Credit card/purchase card
Direct debit
Customers can use more than one payment instrument for a single prepayment. Receivables
creates one prepayment receipt for each payment instrument used.
The creation of prepayment receipts and the subsequent application to matching prepaid
invoices is a process that occurs without user intervention. You cannot manually create
prepayments in Receivables, but you can review prepayment receipt history in Receivables.
Prepayment Process Flow

Page124
 Record the payment information in your feeder system. The information is passed to
Receivables.
A public API creates a prepayment receipt in Receivables, and processes the receipt
using the payment information provided. Receivables applies all prepayment receipts
against the Prepayment application type, and records accounting according to the
prepayment receivables activity.
When the order is sent to Receivables for invoicing, AutoInvoice creates an invoice that
is marked as prepaid. AutoInvoice initiates a postprocess matching program to identify
any open prepaid invoices and search for matching prepayment receipts. When a match
is found, the program unapplies the receipt from the Prepayment application type and
reapplies the receipt to the corresponding invoice.

Page125
Cross Currency Receipts

Cross Currency Receipts

Receivables, Vision Operations (USA)

(N) Receipts > Receipts > (B) Applications

When a customer remits payment in a currency different from the currency of the open debit
item, you can apply a cross currency receipt. Receivables lets you apply cross currency
receipts for full or partial payment of an invoice, debit memo, or chargeback.
When you apply a cross currency receipt, Receivables determines the transaction and receipt
amounts in the functional currency. Receivables then compares these amounts to determine
the foreign exchange gain or loss as a result of applying the receipt in a different currency,
using this formula:
(Receipt Amount as of receipt date) (Invoice Amount as of invoice date) = Foreign Exchange
Gain or Loss

Page126
Entering Discounts

Entering Discounts
You can review the Earned and Unearned discounts on the debit items to which a receipt was
applied.
Earned discounts are automatically calculated according to the payment terms on the
transaction.
Unearned and partial discounts are entered manually.
Use system options, customer profiles, and payment terms to control discount
calculation.
Use the maximum discount column to view the amount of allowable discount.
The largest Unearned discount a customer can take is the best Earned discount
available for the invoice.

Page127
Agenda

Page128
Chargebacks and Adjustments

Chargebacks and Adjustments

Receivables lets you create adjustments and chargebacks against transactions to which you
apply receipts. You use chargebacks to create a new debit item for your customer when
closing an existing debit item. For example, your customer sends payment of $75 for a $100
invoiceyou apply the receipt to the invoice, then create a chargeback for the balance due.
If you use Oracle Trade Management, then you can create chargebacks against receipts
when resolving cash claim investigations. You can create chargebacks against receipts using
either the Receivables Receipt Applications window or Trade Management. When you save
the receipt application in the Applications window, the claim is created in Trade Management
and the claim number passed to Receivables.

Page129
Chargebacks and Adjustments against Transactions

Page130
Chargebacks against Receipts

Chargebacks against Receipts

If you use Trade Management to track your customers short payments and overpayments
(claims) on receipts, then Receivables claims are automatically passed to Trade Management
for claim tracking, analysis, and resolution. If a chargeback is required to resolve a claim, then
the chargeback is created directly in Trade Management:
To resolve an invalid invoice-related claim, the Trade Management user can create a
chargeback against the related transaction.
To resolve an invalid non-invoice related claim (for a short payment), where there is no
related transaction to create the chargeback against, the Trade Management user can
create a chargeback against the receipt that held the claim. A chargeback against a
receipt brings the Unresolved Claims total closer to zero and increases the Applied total
for the receipt.

Page131
Creating a Chargeback

Creating a Chargeback
Receivables, Vision Operations (USA) or
Order Management Super User, Vision Operations (USA)

(N) Receipts > Receipts > (B) Apply > Applications > (B) Chargeback

Note: If you have Trade Management installed, then the Trade Management user, not the
Receivables user, will create these transactions to resolve invalid non-invoice related claims.

Page132
Credit Card Chargebacks

Credit Card Chargebacks

Receivables supports business enterprise management of credit card chargebacks between
card issuers and cardholders. A credit card chargeback is an independent process that does
not make use of the Receipt Applications window.
A cardholder can request a chargeback for many reasons:
Charges for undelivered goods.
Charges for goods or services different from what was ordered.
Charges for the wrong quantity of goods ordered.
Charges for goods that were not timely delivered.
A credit card chargeback takes place when a cardholder disputes a credit card charge with
the credit card issuer for a transaction with the business enterprise (vendor). The credit card
issuer credits (charges back) the cardholders account for the disputed amount, deducts the
amount from the vendors bank account, and sends the vendor a credit card chargeback
notification. The vendor records the credit card chargeback in Receivables as a negative
miscellaneous receipt.
The vendor then investigates if the chargeback is valid. After investigating the chargeback
request:

Page133
1. If the chargeback request was valid, the vendor creates a credit memo
against the transaction for the chargeback amount.
2. If the chargeback request is proven to be invalid, then the vendor unapplies
the credit card chargeback activity from the receipt and reapplies the receipt
for the full amount. This action automatically reverses the negative
miscellaneous receipt that was originally created when the vendor first
recorded the credit card chargeback.

Page134
Working with Claims

Working with Claims

Oracle Applications treats short payments and overpayments as claims. Receivables
integrates with Trade Management to let you manage these claim requests.
When you create a claim in Receivables, Receivables automatically passes the claim to Trade
Management for further research. Trade Management assigns a claim number and the claim
investigation process begins.

Page135
Creating Claims

Page136
Automatic Claim Creation Through Lockbox and Quickcash

Automatic Claim Creation Through Lockbox and Quickcash

Using AutoLockbox, you can create claims in high volume, thus shortening the time to
resolution and reducing the total cost of ownership of deductions management.
Depending on how you run your business, you can choose whether or not you want to create
claims for invalid transactions, credit memos, and negative and positive claims. In addition,
claim functionality has been enhanced to accept and store customer reason codes through
AutoLockbox and in the Receipt Applications window. Using Trade Management, you can
map these reason codes to your organizations internal codes.

Page137
Resolving Claims

Page138
Automated Settlement Methods Effectively Settle Deductions

Page139
Automated Settlement Methods Effectively Settle Deductions

Page140
Resolving Claims Not Associated to an Invoice

Resolving Claims Not Associated to an Invoice

The following resolutions occur directly in Trade Management:
For valid non-invoice related claims, you can:
- Create an on account credit memo (for a short payment)
- Apply an existing credit memo (for a short payment)
- Create an on account credit-cash application line (for an overpayment)
- Create a debit memo (for an overpayment)
- Apply an existing debit memo (for an overpayment)
For invalid non-invoice related claims, you can:
- Enter a chargeback on the receipt (for a short payment)
For both valid and invalid non-invoice related claims, you can:
- Write off the remaining amount on the receipt (for an overpayment)
The following resolution must be manually completed in Receivables.
For invalid non-invoice related claims, you can:
- Create a write-off adjustment (for a short payment)

Page141
Vendor Claims on Credit Card Chargebacks

Vendor Claims on Credit Card Chargebacks

Receivables, Vision Operations (USA) or
Order Management Super User, Vision Operations (USA)

(N) Receipts > Receipts > (B) Apply > Applications > (B) Chargeback

After receiving a credit card chargeback notification, you record the chargeback in
Receivables as follows:
Find the receipt for which the chargeback was requested.
Unapply the application line and subtract the amount of the credit card chargeback.
Apply the credit card chargeback activity on a new application line on the receipt. This
will automatically generate a negative miscellaneous receipt to the value of the
chargeback.
You then investigate whether the chargeback is valid and take one of the following actions
depending on your findings:
For a valid chargeback, you create a credit memo against the transaction for the
chargeback amount.

Page142
 If you can prove that the chargeback is invalid, by providing sufficient proof of delivery or
other supporting documents to the credit card issuer, you reverse the application of the
credit card chargeback by:
- Finding the receipt.
- Unapplying the credit card chargeback activity from the receipt. This automatically
reverses the negative miscellaneous receipt.
- Restoring the original amount on the application line.

Page143
Resolving a Split Claim

Page144
Resolving a Split Claim

Resolving a Split Claim

Note: Claim reference numbers created in Receivables always start with a DED (deduction)
or OPM (overpayment), for example, DED14546 or OPM12356.
In Receivables, however, you will still see the original claim DED104 for $1,000 until one of
the claims is resolved. When Claim DED104-2 is resolved, Receivables unapplies the Claim
Investigation application for $1,000, enters the resolution for claim DED104-2, and creates two
new claim investigation applications: claims DED104 and DED104-1. If you were splitting the
claim into two different amounts, 400 and 600, then it will close claim DED104 and open
DED104-1 and DED104-2.

Page145
Agenda

Page146
Balancing Segments

Balancing Segments
For example, if an invoices balancing segment that you assess late charges for has a value of
01 and the balancing segment of your late charges account is 02, when Receivables
accrues late charges for this invoice the Account Generator automatically changes the
balancing segment of the late charges account to 01.
The Account Generator in Receivables uses Oracle Workflow. You can view and customize
Account Generator processes through the Oracle Workflow Builder to modify the default setup
(for example, to use a different balancing segment for either the late charges or Receivables
account).

Page147
Deriving Balancing Segment Values

Deriving Balancing Segment Values

Note: Receivables does not substitute the balancing segment for miscellaneous cash, bank
errors, or commitments (deposits and guarantees).

Page148
Disabling the Balancing Segment Substitution Process for
Activities

Disabling the Balancing Segment Substitution Process for Activities

If you disable balancing segment substitution for activities, then you must define a suspense
account in the event that your activities and original transactions do not post to the same
balancing segment value. Otherwise, the transfer to General Ledger will not succeed.

Page149
AR: Disable Receivable Activity Balancing Segment Substitution

Page150
Agenda

Page151
Lockboxes

Lockboxes
Receivables displays active Lockboxes as list of value choices in the Submit Lockbox
Processing window.
You can disable a Lockbox by unchecking the Active box on the Lockboxes window.

Page152
Using AutoLockbox

Using AutoLockbox
You specify how you want information transmitted and Receivables ensures that the data is
valid before creating QuickCash receipt batches. You can automatically identify the customer
who remitted the receipt and optionally use AutoCash rules to determine how to apply the
receipts to your customers outstanding debit items. If you are using Oracle Trade
Management, then during AutoLockbox and Post QuickCash processing, Receivables can
automatically prepare eligible remittance lines for claim creation in Trade Management.

Page153
Lockbox Integration

Lockbox Integration
The lockbox receives payments and automatically creates a claim for any differences between
the invoices and payments received. Receivables interprets the lockbox entries based on
settings in the System Options and Lockbox setup windows.
The claim preferences are configurable. Customers can communicate the reasons for the
difference between their payment and the invoice. The reason codes are captured in the
lockbox file and travel through the flow with the remittance line to Trade Management, where
they are translated into your companys reason codes. You can map customer reason codes
to internal reason codes.

Page154
Historical Data Conversion

Page155
THESE eKIT MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING eKIT MATERIALS FROM THIS COMPUTER IS STRICTLY PROHIBITED

AutoLockbox Process

AutoLockbox Process
Three step process:
1. Import
During this step, AutoLockbox reads and formats the data from your bank file into the
AutoLockbox table using an SQL *Loader script.
2. Validation
The validation program checks data in the AutoLockbox tables for compatibility with
Receivables. Once validated, the data is transferred into QuickCash tables. At this point,
you can optionally query your receipts in the QuickCash window and change how they will
be applied before submitting the final step, Post QuickCash.
3. Post QuickCash
This step applies the receipts and updates your customer balances. These steps can be
submitted individually or at the same time from the Submit Lockbox Processing window.
After you run Post QuickCash, Receivables treats the receipts like any other receipts; you
can reverse and reapply them and apply any unapplied, unidentified, or on-account
amounts.
Note: AutoLockbox cannot process receipts that are not related to invoices. Process non-
invoice related receipts, such as investment income, through the Receipts window using a
receipt type of Miscellaneous.

Page156
See: Using AutoLockbox, Oracle Receivables User Guide for more information.

Page157
AutoLockbox Process Flow

AutoLockbox Process Flow

The illustration in this slide shows how receipt data from your bank file is imported into
Receivables tables. The illustration also shows that Receivables generates the Import section
when you submit the import step of AutoLockbox, and generates the Validation section when
you submit the validation step of AutoLockbox. Receivables automatically generates the Post
QuickCash Execution Report each time you submit Post QuickCash or AutoLockbox.

Page158
AutoLockbox Validation

AutoLockbox Validation
AutoLockbox validates your data by ensuring that the columns in
AR_PAYMENTS_INTERFACE_ALL reference the appropriate values and columns in
Receivables. AutoLockbox does not allow duplicate receipts within the same batch source for
the same customer. This is the same validation Receivables performs when you manually
enter receipts using the Receipts window.
Important: If proper controls are not in place, it is possible to reimport and reapply receipts
that AutoLockbox has already processed. We recommend that you establish standard
operating procedures to ensure that users do not process the same bank file more than once
using AutoLockbox.
Invoice numbers are only required to be unique within a batch source. A customer can have
duplicate invoice numbers as long as they belong to different batch sources; however,
AutoLockbox cannot automatically apply a payment to these invoices. If a customer has more
than one invoice in the system with the same number, then AutoLockbox cannot determine
the invoice to apply the payment. The receipt will either be left as Unapplied (if the customer
number or Magnetic Ink Character Recognition, MICR, number is provided) or Unidentified (if
the customer number or MICR number is not provided).
AutoLockbox completes the following validations:
Transmission Level Validation

Page159
 Lockbox Level Validation
Batch Level Validation
Receipt Level Validation
Overflow Level Validation
Customer Validation
Currency Validation

Page160
AutoLockbox and Customer Identification

AutoLockbox and Customer Identification

The AutoLockbox validation program will identify a customer for a receipt using the matching
number, only if all of the transactions listed to be paid by this receipt are associated with the
same customer:
If a unique customer cannot be determined, AutoLockbox imports the receipt and
assigns it a status of Unidentified.
If a unique customer cannot be determined and duplicate invoices are supplied as the
matching number for a receipt, AutoLockbox does not validate the receipt because it
cannot determine how to apply the receipt.
You can use the validation section of the Lockbox Processing Report to examine transactions
that AutoLockbox could not apply because the customer could not be uniquely identified.

Page161
AutoLockbox Transmissions

AutoLockbox Transmissions
The table in this slide illustrates examples of four separate AutoLockbox transmissions that
include duplicate invoice numbers. Assume that in each transmission, AutoAssociate is set to
Yes, the remitting customer is Customer ABC, and the receipt information includes the invoice
number but not the customer name.
In the second example, Lockbox is able to identify the receipt because the invoices belong to
the same customer. However, since the invoices have the same number, Lockbox cannot
determine to which invoice to apply the receipt, so the receipt is left Unapplied.
Note: Depending on your setup, Lockbox might create a claim for an unmatched remittance.
In the third example, Customer XYZ is related to Customer ABC and there are two invoices
with the same invoice number. In this case, Lockbox will apply the receipt to the invoice that
belongs to the remitting customer (Customer ABC), if the receipt record includes the customer
or MICR number; otherwise, Lockbox assigns the receipt a status of Unidentified.
In the last example, two invoices with the same number exist for two different customers.
Lockbox does not validate the receipt because it cannot determine how to apply the receipt.
You can review receipts that failed the validation step in the Lockbox Execution Report.

Page162
Applying Receipts using AutoLockbox

Applying Receipts using AutoLockbox

To successfully apply a receipt, AutoLockbox must know the name or number of the remitting
customer and to which transaction each receipt should be applied. If the Lockbox transmission
includes both the customer name or number and the transaction to which each receipt should
be applied, AutoLockbox uses this information to apply the receipts during Post QuickCash. If
customer information is not provided, you can set up your Lockbox to use matching rules to
identify the remitting customer and partially or fully apply each receipt.
A Lockbox transmission usually includes matching numbers. These are most often transaction
numbers, but they can also be other types of numbers, such as a purchase order or sales
order number. To use matching rules, you need to specify a Match Receipts By method and
set the AutoAssociate parameter to Yes when defining your Lockbox. The Match Receipts By
method determines which type of number to search for during the validation step. When it
finds a match, AutoLockbox identifies the customer using the information from the matched
transaction and then applies the receipt during the final step, Post QuickCash.
If AutoLockbox cannot identify the customer or the transaction to apply the receipt to, it
assigns the receipt a status of Unidentified.
If AutoLockbox identifies the customer for a receipt but cannot determine which transaction
this receipt should be applied to, AutoLockbox might create a claim, depending on your setup.

Page163
If you did not define your Lockbox to automatically create claims, or if you did but no
remittance lines are eligible, then AutoLockbox applies the receipt using the AutoCash Rule
Set defined for this customer.
AutoLockbox can also import and apply cross currency receipts.
You can pay for another customers invoices through AutoLockbox if you have set up a
relationship between these customers or the system option Allow Payment of Unrelated
Invoices is set to Yes for this Lockbox submission. The paying customer should be identified
by a customer or MICR number on the receipt record. Additionally, all invoices listed to be
paid by one receipt must belong to the same customer; otherwise, Lockbox imports the
receipts as Unapplied.
If the Allow Payment of Unrelated Invoices option is set to No in the System Options window
or for this Lockbox submission, you need to set up a relationship between the customers
before you can make applications in this way. You can also set up a party paying relationship.
Note: When applying a receipt to an invoice through AutoLockbox, AutoLockbox does not
realize discounts. This is an operation of the Post QuickCash program. If the customers credit
profile and payment terms are set to Allow Discounts, Post QuickCash will automatically take
the discount. The discount taken will also depend on how you set the Allow Unearned
Discounts and Discount on Partial Payment system options. The discount can be manually
overridden in the Receipts window.

Page164
Creating Claims Using AutoLockbox

Creating Claims Using AutoLockbox

You can initiate claim creation:
Manually, when applying receipts in the Applications window or in the QuickCash
window.
Automatically, when importing receipts through AutoLockbox.
Receivables can automatically initiate claim creation during AutoLockbox and Post QuickCash
processing. Additionally, you can create claims when manually entering receipts in the
Applications window or in the QuickCash window. You can also create claims directly in Trade
Management.
Claims can be either invoice related or non-invoice related:
If a customer short pays a particular invoice, then you can create an invoice-related
claim. Invoice-related claims take the currency of the invoice.
This type of claim places the related invoice in dispute; the invoice remains open until the
claim is resolved. You can choose to age or summarize disputed transactions in aging reports.
Note: In Receivables, invoice-related claims are always short payments. If you receive an
overpayment that is related to an invoice, then you should fully apply the invoice and record
the remaining amount as a non-invoice related claim using the Claim Investigation application
type.

Page165
 If a customer includes a deduction or overpayment on a remittance but does not indicate
a related invoice number, then you can create a non-invoice related claim using the
Claim Investigation application type. Non-invoice related claims take the currency of the
receipt.
This type of claim is an open receipt credit; the receipt remains open until the claim is
resolved. You can choose to age or summarize open credits.
Note: A negative claim investigation is a positive claim in Trade Management, because Trade
Management and Receivables are on opposite sides of the balance sheet. Trade
Management is a liability/expense product while Receivables is an asset/revenue product.

Page166
Importing and Applying Cross Currency Receipts

Importing and Applying Cross Currency Receipts

AutoLockbox can import and apply cross currency receipts for each currency defined in your
system.
For example, your functional currency is the US dollar, and you create invoices for your
customers in that currency. However, you have many international customers, so you need to
accept payments in different currencies.

Page167
Lockbox Execution Report

Page168
Receipt to Receipt Applications

Receipt to Receipt Applications

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
Open claim investigation applications
You can also apply one receipt against another receipt that has an open claim investigation
application. A claim investigation application results from either a non-invoice related
deduction or an overpayment.
Note: Receivables automatically updates Trade Management when you make a receipt
application against a second receipt that has an open claim investigation.
Note: When netting receipts, both receipts must be in the same currency. You can also net a
QuickCash receipt against multiple open receipts.
Additionally, Receipt to Receipt Applications provide you with an efficient approach to settling
open cash, because it eliminates the need to open multiple receipts to apply on-account and
unapplied cash. In other words, from just one receipt, you can apply one receipt to another
open receipt, and the balances and accounting are automatically updated on both receipts.

Page169
Using Oracle Trade Management to manage claims, you can now apply receipts that have
open claim investigations, which will in turn update amounts or cancel claims in Trade
Management. This lets you net short payments with overpayments in the system. For
example, you might do this if you determined that a short payment on a remittance was due to
an overpayment on another receipt that resulted in a Claim Investigation.
Receipt Write-off for Short Payments
You can now manually write off short payments on receipts. This functionality includes the
ability to set approval limits for write-off amounts at the user and system level. This can be
done in Receivables and in Trade Management.

Page170
Automated Receipt Handling for Credits

Automated Receipt Handling for Credits

To handle the situations described above promptly and efficiently, use Automated Receipt
Handling for Credits. You can set the receipt handling policy to automatically refund both
credit card and non-credit card payments, or apply receipts to on-account cash.
When refunding, some credits require careful investigation before funds are returned to the
customer. Receivables recognizes when user intervention is required and automatically
places questionable items on account. Depending on the outcome of the investigation, you
can then initiate the refund or choose another receipt application.
You can also set a refund minimum for your enterprise. Amounts less than the minimum are
placed on account, letting you manage these receipts according to your business practices.

Page171
Automatic Receipts

Automatic Receipts
You can also manage your cash flow by deciding when, where, and how much you should
remit to your bank. Automatic receipts also let you manage your customer risk and reconcile
bank statements. You can decide how you wish to process the receipts from creation to
remittance and risk elimination.

Page172
Bank Remittance Process

Bank Remittance Process

Once created, automatic receipts can be reapplied in the same way as manual receipts. You
can reverse an automatic receipt only if its status is Approved.
Note: You cannot create cross currency receipt applications using Automatic Receipts.

Page173
Creating Automatic Receipts

Page174
Automatic Receipts and Remittance Process Overview

Automatic Receipts and Remittance Process Overview

The graphic in this slide provides an overview of the Automatic Receipts and Remittance
processes.
See: Automatic Receipts, Oracle Receivables User Guide for complete information about the
automatic receipts and remittance process.

Page175
Credit Cards

Credit Cards
By providing a credit card number as payment, your customer expects that the credit card
issuer will transfer funds to your bank account as payment for their open debit items. The
Automatic Receipts program lets you collect payments according to a predefined agreement
with your customer. The Automatic Remittances program transfers funds from the customers
bank account to yours on the receipt maturity date.
Credit Card Payment Process
You must complete these steps to process credit card payments in Receivables:
Assign a credit card receipt method and credit card bank account to the transactions that
you want to pay by credit card. This assignment flags transactions for credit card
payment.
Run the Automatic Receipts program to select the transactions that are flagged for credit
card payment. The Automatic Receipts program creates a batch of receipts (payments)
for the selected transactions.
Approve the batch of automatic receipts to reserve the payment amount from your
cardholders account and close the selected transactions. The Approve Automatic
Receipts program sends the receipt batch to Oracle Payments for credit card
authorization. Oracle Payments integrates with third party payment processors to

Page176
 authorize your customers credit card account number and assign an approval code to
the transaction.
- If authorization is successful, then Oracle Payments assigns the approval code and
the receipt is approved. If authorization is not successful, then the receipt is
rejected from the batch.
- To decrease processing time, you can create and approve your automatic receipts
in one step.
Note: Oracle Payments can authorize your customers credit card account number
at different times during the payment processing flow. For example, credit card
authorization can take place at the time of the order (in Oracle Order Management)
or at the time of billing (in Receivables).
Create and approve a remittance batch to request transfer of funds from the credit card
issuer to your bank.

Page177
Processing Credit Card Refunds

Note:
Processing Credit Card Refunds is different from processing Credit Card Chargebacks. While
the customer requests a credit card refund directly from you, for chargebacks the customer
interacts directly with the credit card issuer. For more information, see the following topics:
Credit Card Chargebacks
Vendor Claims on Credit Card Chargebacks
Credit Card Refunds

Page178
Processing Credit Card Transactions

Page179
Creating Credit Card Transactions

Page180
Credit Card Refunds

Credit Card Refunds

To create a credit card refund, you apply a special credit card refund application to the receipt,
which generates a negative miscellaneous receipt. The Automatic Remittances program
processes this negative receipt, thereby transferring funds from your account back to your
customers credit card.
See: Credit Cards, Oracle Receivables User Guide for detailed information about the steps
that are required to process credit card refunds.
Differences between Credit Card Refunds and Credit Card Chargebacks
The Credit Card Refunds functionality differs from Credit Card Chargebacks in these ways:
In Credit Card Refunds, the customer requests a refund directly from you, the vendor,
while in Credit Card Chargebacks the customer interacts directly with the credit card
issuer. For Credit Card Chargebacks, the credit card issuer credits the customer account
for the disputed amount, deducts the amount from the vendor bank account, and notifies
the vendor that a credit card chargeback has occurred.
Both Credit Card Refunds and Credit Card Chargebacks make use of negative
miscellaneous receipts. However, in Credit Card Refunds miscellaneous receipts must
be remitted for customers to obtain their refunds. In Credit Card Chargebacks, the

Page181
customer has already received the disputed amount and the miscellaneous receipt is
created and remitted solely to ensure accurate accounting and reconciliation.

Page182
Summary

Page183
 Implement Receipts
Chapter 10

Page184
Implement Receipts

Page185
Objectives

Page186
Agenda

Page187
Overview of Receipt Setup

Page188
Receivables Activity Types

Receivables Activity Types

You define Receivables activities according to activity type. An activity type determines
whether the activity uses a distribution set or GL account, where Receivables derives the tax
rate code, and in which windows an activity appears in the list of values.
Receivables provides these activity types:
Adjustment: You use activities of this type in the Adjustments window. You must create
at least one activity of this type.
Bank Error: You use activities of this type in the Receipts window when entering
Miscellaneous transactions. 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. This activity type is
for use only with Oracle Trade Management.
Credit Card Chargeback: Use activities of this type in the Receipts Applications window
when recording credit card chargebacks. This activity includes information about the
General Ledger clearing account used to clear the chargebacks. Receivables credits the

Page189
 clearing account when you apply a credit card chargeback, and then debits the account
after generating the negative miscellaneous receipt.
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 clearing 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 payment terms).
Late Charges: You use activities of this type in the System Options window when you
define a late charge policy. You must define a late charge activity if you record late
charges as adjustments against overdue transactions. If you assess penalties in addition
to late charges, then define a separate activity for penalties.
Miscellaneous Cash: You use activities of this type in the Receipts window when
entering Miscellaneous transactions. 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. 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. You can define multiple receivables activities of this type,
but only one prepayment activity can be active at any given time.
Refund: Use activities of this type in the Applications window to process automated non-
credit card refunds.
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 payment terms).
Other Types of Receivables Activities include: Endorsements, Receipt Write-Off, and
Short-Term Debt.

Page190
Receivables Activity Setup

Receivables Activity Setup

Define Receivables Activities to default accounting and tax information to specific Receivables
transaction activities.
The steps are:
Select an operating unit.
Select an Activity Type.
Select a GL Account Source to indicate how Receivables derives the accounts for the
expense or revenue generated by this activity:
- Activity GL Account: Allocate the expense or revenue to the general ledger
account that you specify.
- Distribution Set: Allocate the expense or revenue to the distribution set that you
specify. (Miscellaneous Cash activity type only)
- Revenue on Invoice: Allocate the expense or revenue net of any tax to the
revenue account or accounts specified on the invoice. (Adjustment, Earned
Discount, or Unearned Discount activity types only)
- Tax Rate Code on Invoice: Allocate the net portion using the Expense/Revenue
accounts specified by the tax rate code on the invoice. (Adjustment, Earned
Discount, or Unearned Discount activity types only)

Page191
 Select a Tax Rate Code Source:
- None: Allocates the entire tax amount according to the specified GL Account
Source. Choose this option if you do not want to separately account for tax..
- Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by
the Receivables Activity.
- Invoice: Distribute the tax amount to the tax accounts specified by the tax rate
code on the invoice. You cannot choose this option if the activity type is
Miscellaneous Cash or Late Charges.
Enter the GL account, distribution set (if applicable), and tax rate code (if applicable).
Complete the remaining setup steps, if applicable.

Page192
Receivables Activity Example

Receivables Activity Example

This example shows how Receivables derives the GL accounts on an Adjustment
Receivables Activity.
You want to adjust an invoice by decreasing the line amount by $120. If the Adjustment
Receivables Activity is set with a Tax Rate Code Source of:
None: Receivables does not calculate tax. The only accounting is specific to the
adjustment.
Invoice: Receivables uses the tax rate code on the original invoice to distribute the tax
amount.

Page193
Receipt Class, Receipt Method, and Bank Account Relationship

Receipt Class, Receipt Method, and Bank Account Relationship

The relationship between receipt class, receipt method, and bank account enables accounting
defaults.
When a receipt is entered:
Receipt method and bank account are specified.
Receivables processes the receipt according to the receipt class that the receipt method
is associated with.
Accounting for the receipt is derived from the bank account of the receipt method.

Page194
Defining Remittance Banks and Bank Accounts

Defining Remittance Banks and Bank Accounts

Define all of the banks and bank accounts that you use to remit payments. You can define
multiple currency bank accounts to accept payments in more than one currency.
You define banks and bank accounts in Oracle Cash Management. See: Create Banks and
Define Bank Branches, Oracle Cash Management User Guide for more information.

Page195
Defining Receipt Classes

Defining Receipt Classes

Receivables, Vision Operations (USA)

(N) Receivables > Setup > Receipts > Receipt Classes

Receipt classes determine how Oracle Receivables processes receipts. Specify for each
receipt class:
Creation Method How to create receipts
- Manual: Standard, quick, and lockbox receipts
- Automatic: Automatic and credit card receipts. Oracle Payments processes funds
capture.
- Bills Receivable
- Bills Receivable Remittance
Remittance Method How to derive the remittance account for automatic receipts
- No Remittance: Receipts that are not remitted.

Page196
 - Standard: Regular remittance.
- Factoring: Short term debt.
- Standard and Factoring: Both types in a batch.
Note: Cash receipts reconciled in Oracle Cash Management must be remitted.
Clearance Method How to reconcile receipts before posting to GL
- Direct: Clear at time of receipt entry.
- By Automatic Clearing: Clear using the Automatic Clearing program.
- By Matching: Clear receipts manually in Oracle Cash Management.
Receipt Method How to account for receipt entry and receipt application
- A receipt method is tied to a receipt class and takes on the attributes of that receipt
class, including creation method, remittance, and clearing.
- One or more receipt methods are associated with each receipt class.
- A receipt method includes a funds capture method, to identify the way customers
remit payment to you.
- Each receipt method can be associated with one or more remittance bank
accounts. Each bank account determines the GL accounts to use when you enter
or apply a receipt.

Page197
Associating a Bank Account With a Receipt Method

Associating a Bank Account with a Receipt Method

Receivables, Vision Operations (USA)

(N) Setup > Receipts > Receipt Class > (B) Bank Accounts

Associate bank account information with each receipt class and receipt method combination.
You can assign more than one remittance bank to each receipt class and receipt method
combination.
Specify the bank name, branch, account, and currency for your remittance bank using
the list of values.

Page198
Defining Receipt Sources

Defining Receipt Sources

Receivables, Vision Operations (USA)

(N) Setup > Receipts > Sources

Define a receipt source to determine:

Creation method (automatic or manual)
Batch numbering
Default receipt class, receipt method, and bank account
Set the AR: Receipt Batch Source profile option in order to define default receipt sources
either by user, responsibility, application, or site.

Page199
Defining AutoCash Rules

Defining AutoCash Rules

Receivables, Vision Operations (USA)

(N) Setup > Receipts > AutoCash Rules

AutoCash Rule Sets determine how a QuickCash receipt is applied to open debit items.
Specify whether earned or unearned discounts will be calculated for receipt applications.
Enable late charges or disputed items to be included in the open balance calculation.
Specify whether any remaining remittance amounts from partial payment applications
will be saved as unapplied or on account.
Enter a sequence to specify the order in which to automatically apply receipts for this
set.
Enter one or more rules for receipt application from the AutoCash Rule options.
- Apply Oldest Invoice First: Matches receipts to customer debit items, starting
with the oldest outstanding debit item. Receivables determines the oldest debit
item using the Open Balance Calculations values for the AutoCash rule set.

Page200
- Clear Account: Applies receipts to the customers calculated account balance
when the balance exactly matches the receipt amount.
- Clear Past Due Invoices: Closes all past due debit and credit items when the
calculated past due balance exactly matches the receipt amount.
- Clear Past Due Invoices Grouped by Payment Terms: Groups past due
invoices by their payment term, and then uses the oldest transaction due date
within the group as the group due date.
- Match Payment With Invoice: Applies receipts to a single invoice, debit memo, or
chargeback when the remaining amount due matches the receipt amount.

Page201
Defining Application Rule Sets

Defining Application Rule Sets

Application Rule Sets define how to apply partial payments to open invoice items and how
discounts affect open balances.
Receivables provides the following standard application rules:
- Line First - Tax After
- Line First - Tax Prorate
- Prorate All
You can also define your own application rules.
Application Rule Sets can be defined for each transaction type, or at the system level.

Page202
Setting Up Cross Currency Receipts

Setting Up Cross Currency Receipts

If your organization needs to apply receipts to transactions in different currencies, set up
Receivables for cross currency receipts.
To set up cross-currency receipts:
Define a 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.
Define a suspense account General Ledger uses this account to balance the posting
of multi-currency journal entries that result from applying cross-currency receipts.
Set the Journals: Display Inverse Rate profile option Set this profile option to
determine how General Ledger displays conversion rates in the Exchange Rate window.

Page203
System Options for Receipt Accounting

System Options for Receipt Accounting

Receivables, Vision Operations (USA)

(N) Setup > System > System Options > (T) Accounting

The Accounting tabbed region of the System Options window is used to specify accounting
flexfields for recording receipt activity. These include:
Realized Gains Account: To record gains on foreign currency exchange rate
fluctuations between the time the transaction is entered and the time the receipt is
applied.
Realized Loss Account: To record losses on foreign currency exchange rate
fluctuations between the time the transaction is entered and the time the receipt is
applied.
Unallocated Revenue Account: To record unallocated revenue when you apply a cash
receipt with a balance other than zero to an invoice with a zero balance.
Cross Currency Rounding Account: To record any rounding error amounts created
during a cross currency receipt application for currencies that have a fixed rate
relationship.

Page204
Miscellaneous System Options Relating to Receipts

Miscellaneous System Options Relating to Receipts

Receivables, Vision Operations (USA)

(N) Setup > System > System Options > (T) Miscellaneous

Discount Basis: Basis used when calculating discounts on invoices. Receivables uses this
value as the default Discount Basis in the Payment Terms window. Choose one of the
following discount methods:
Invoice Amount: To calculate the discount amount based on the sum of the tax, freight
charges, and line amounts of your invoices.
Lines Only: To calculate the discount amount based on only the line amounts of your
invoices.
Lines, Freight Items and Tax: 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.

Page205
AutoCash Rule Set (optional): Used when entering a receipt for a customer whose profile
class has not been assigned an AutoCash Rule Set. The AutoCash Rule set and the Discount
Grace Days specified in a customers credit profile determine the sequence of AutoCash
Rules that Receivables uses when Post QuickCash is run to automatically apply receipts to
this customers open debit items.
Allow Unearned Discounts: Enable this option to allow unearned discounts. Unearned
discounts are discounts a customer takes after the discount period passes. You define
discount periods when defining your payment terms.
Discount on Partial Payment: Enable this option to allow discounts to be taken for partial
payments. If this option is enabled, you can still choose not to allow discounts on partial
payments at the transaction level when defining Payment Terms.
Require Billing Location: Enable this option to require that a bill-to location be associated
with a cash receipt. If this option is enabled, the Post QuickCash program does not create
receipts that do not have billing locations. If you enable this option, you should also enable the
Require Billing Location option when defining your Lockboxes; otherwise, Receivables
displays an error when you submit AutoLockbox.
Invoices per Commit: Enter the number of invoices you want the Automatic Receipt program
to process before saving.
Receipts per Commit: Enter the number of receipts you want the Automatic Receipt program
to process before saving.
Suggestion: Set the Receipts per Commit option to a large number to avoid intermediate
saves in the program. You should use numbers that are large enough to handle your largest
automatic receipt batches. To help determine the numbers to use, look at the end of the log
file for your largest Automatic Receipt Creation Batch; this gives you the number of receipts
marked for this batch. Enter this number in the Receipts per Commit field. You should only
reduce the number if you run out of rollback segments.
Chargeback Due Date: The default due date to use when creating a chargeback:
Current Date: The system date.
Deposit Date: The receipt deposit date.
Open Invoice Due Date: The due date of the invoice or debit memo.
Receipt Date: The date that the receipt was entered.
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 items transaction type.
Note: If you are using Oracle Trade Management, then use the Claims tabbed region of the
System Options window to indicate how to evaluate, during Lockbox and Post QuickCash
processing, your customers remittances for claim creation. See: Claims System Options,
Oracle Receivables Implementation Guide for more information.

Page206
Profile Options

Profile Options
System Administrator

(N) Profile > System

The default profile options are:

AR: Allow Overapplication in Lockbox: Controls how AutoLockbox handles receipts
when the payment amount is greater than the balance due on a transaction.
AR: Always Default Transaction Balance for Applications: Determines the default
amount applied value that displays in the Applications window. The default value
includes discount amounts, where applicable.
- If you set the profile option to Yes, then the default amount applied is the remaining
transaction amount.
- If you set the profile option to No, or if a null value exists, then the defaulting rule is:
1. If the unapplied receipt amount is greater than or equal to the transaction, then the
default amount applied is the remaining transaction amount.

Page207
 2. If the unapplied receipt amount is less than the remaining transaction amount, then
the default amount applied is the unapplied receipt amount.
3. If the unapplied receipt amount is negative, then the default amount applied is the
remaining transaction amount (to prevent the negative unapplied amount from
increasing).
AR: Application GL Date Default: Determines how Receivables determines the default
GL date when you apply receipts.
AR: Cash - Allow Actions: Determines whether you can create adjustments and
chargebacks when applying receipts in the Applications window.
AR: Commit Between Validations in Lockbox: Determines whether the AutoLockbox
program will commit (save) after validating each record in a Lockbox transmission.
AR: Create Bank Charges: Determines whether users can create bank charges when
entering receipts in Receivables.
AR: Include Receipts at Risk in Customer Balance: Controls whether Receivables
displays items at risk and includes them when calculating account balances in the
Account Details window.
AR: Invoices with Unconfirmed Receipts: Select whether to adjust or credit invoices
selected for automatic receipt.
AR: Receipt Batch Source: Enter the default receipt source for the Batch field in the
Receipts window and Receipt Batches window.

Page208
Agenda

Page209
Implementation Considerations for Receipts

Implementation Considerations for Receipts

Set up GL accounts before setting up bank accounts in Cash Management.
Decide whether you want a different GL account for each status of cash or only one
cash account.
Set up receipt information so that the setup data can default.
Set the AR: Receipt Batch Source profile option so that users do not have to enter
payment information at the batch level.

Page210
Other Implementation Considerations for Receipts

Other Implementation Considerations for Receipts

Define AutoCash Rule Sets for a customer when using AutoLockbox or QuickCash.
You must define receivables activities for earned and unearned discounts.
Define receivables activities before setting up bank accounts in Cash Management.
If you select Tax Rate Code on Invoice as the GL Account Source when setting up
receivables activities, you must either assign tax accounts to all tax rate codes or make
sure the activity is selected only when the tax rate code on the invoice has tax accounts
assigned.
You assign tax accounts to tax rate codes in Oracle E-Business Tax. See: Setting Up
Tax Accounts, Oracle E-Business Tax User Guide for more information.

Page211
Setting Up Lockboxes

Setting Up Lockboxes
Considerations for setting up lockboxes include:
Create Transmission Formats that accept customer reference and customer reason
codes. You must first work with your banks to accept customer reference and customer
reason codes in your lockbox.
If you are using Oracle Trade Management, enable the Evaluate for Claim Eligibility option
to let lockbox automatically create claims for eligible remittance lines. Lockbox looks at
your Claims system options to determine which imported receipts are eligible for claim
creation.
Use the Claims tabbed region of the System Options window to indicate claim handling
preferences.
Attach a General Ledger account for claims on the receipt class or receipt methods setup.
Perform Customer Reason Code Mapping in Oracle Trade Management.

Page212
Function Security

Page213
Summary

Page214
 Tax Processing
Chapter 11

Page215
Tax Processing

Page216
Objectives

Page217
Agenda

Page218
Oracle E-Business Tax Architecture Overview

Oracle E-Business Tax Architecture Overview

Oracle E-Business Tax is a centralized tax engine that provides tax determination, tax
calculation, and tax repository services for Payables and Receivables transactions.
Oracle E-Business Tax consists of a tax knowledge base, a variety of tax services that
respond to specific tax events, a set of repositories (for tax content and tax recording) that
allows organizations to manage their local tax compliance needs in a proactive manner, and
an interface that allows integration with external tax content providers through a single
integration point.
E-Business Tax uses the information entered on the transaction line to calculate tax on
Receivables transactions and return the results to Receivables. E-Business Tax records all
transaction tax data for use in your tax reports.
Any errors in tax calculation originate from and are corrected in E-Business Tax. E-Business
Tax provides many tools for testing your tax configuration prior to using the configuration on
transactions.
Note: In the initial release of E-Business Tax the integration with external tax content
providers is limited to the calculation of US Sales and Use Tax on Receivables transactions.
See: Oracle E-Business Tax Implementation Guide and Oracle E-Business Tax User Guide
for complete information about setting up and using Oracle E-Business Tax.

Page219
Oracle E-Business Tax Key Concepts And Examples

Oracle E-Business Tax Key Concepts and Examples

Tax Authority
A government entity that regulates tax law, and administers and/or audits one or more taxes.
Some examples of tax authorities are:
Brazil - Secretaria da Fazenda Estadual (State Revenue Office)
Brazil - Secretaria da Receita Federal (Federal Revenue Office)
California, USA - California State Board of Equalization
Canada - Canadian Customs and Revenue Agency
France - Ministry of Economy, Finance and Industry
Germany - Federal Ministry of Finance
India - Central Board of Customs and Excise
Singapore - Inland Revenue Authority of Singapore
United Kingdom - HM Customs and Excise

Tax Regime

Page220
A tax regime is the set of tax regulations that determine the treatment of one or more taxes
administered by a tax authority.
Some examples of tax regimes are:
Brazil - RICMS - ICMS Regulation
Brazil - RIPI - IPI Regulation
California, USA - California Sales Tax
Canada - Canadian Goods and Services Tax
India - Excise Tax
Singapore - Singapore Goods and Services Tax
United Kingdom - UK VAT

Tax
In Oracle E-Business Tax, a tax is a specific charge within a tax regime imposed by a
government through a fiscal or tax authority.
Some examples of taxes are:

Tax Regime Taxes

------------------------------------------------ ---------------------------------------------------
RICMS - Regulamento do ICMS ICMS, ICMS-ST (Tributary Substitution)
RIPI - Regulamento do IPI IPI
California Sales Tax State Sales Tax
California Sales Tax County Sales tax
Canadian Goods and Services Tax GST
Canadian Provincial Sales Tax PST
India Excise and Customs Excise Tax
Singapore Goods and Services Tax GST
UK VAT UK VAT

Tax Jurisdiction
A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority.
Some examples of tax jurisdictions are:

Tax Geographic Zone Jurisdiction

-------------- ---------------- ------- ---------------- ----------------
ICMS So Paulo So Paulo ICMS
IPI Brazil Brazil IPI
State Sales Tax California (State) California State Sales Tax
County Sales Tax San Francisco (County) County Sales Tax
GST Canada Canada GST
PST Ontario Ontario PST
Excise Tax India India Excise Tax
GST Singapore Singapore GST
Calculating Tax on Transactions

Calculating Tax on Transactions

This diagram is an overview of the tax process in E-Business Tax and Receivables. The tax
rate code and tax rules are defined within E-Business Tax for the applicable tax regime and
tax. The E-Business Tax tax rules engine uses the tax rate code assigned to the invoice
transaction line to calculate the tax, making use of the applicable tax rules.
After calculating the tax, Receivables displays the transaction with tax distributions. E-
Business Tax records all tax data for use in tax reporting.

Page223
Calculating Tax Using the Tax Classification Code

Calculating Tax Using the Tax Classification Code

This diagram is an overview of the tax process in E-Business Tax and Receivables using the
migrated data approach. E-Business Tax lets you calculate tax on transactions in a manner
similar to the Release 11i tax model.
Release 11i Receivables tax codes migrate to E-Business Tax as tax classification codes. Tax
classification codes are assigned to items, customers, sites, or revenue accounts. A particular
tax classification code defaults to a specific invoice transaction line according to the rules that
apply to the transaction. E-Business Tax either uses the migrated default assignment or a new
assignment that you create using application tax options in E-Business Tax.
The E-Business Tax tax rules engine uses the tax classification code assigned to the invoice
transaction line to calculate the tax, making use of the applicable Direct Tax Rate
Determination rule. After calculating the tax, Receivables displays the transaction with tax
distributions.
See: Using Application Tax Options and Using Direct Tax Rate Determination, Oracle E-
Business Tax User Guide for more information about calculating taxes using the tax
classification code.

Page224
Global Tax Overview

Global Tax Overview

You use E-Business Tax to set up and maintain these taxes:
Value Added Tax (VAT) - Imposed on the value added to goods or services at each
stage of their supply.
Goods and Services Tax (GST) - Sales tax levied on many consumer products and
professional services.
Excise Duties.
US Sales and Use Tax - Imposed on all state, city, and county sales transactions within
the US.
Canada - Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Provincial
Sales Tax (PST) are sales taxes at the federal and/or provincial level.
Japan - Consumption tax: VAT paid on an expense (input tax) that is recoverable
against the VAT charged on revenue (output tax).
Norway - Investment tax: Applies to certain items that are purchased for use or
consumption by a VAT-registered entity.
Spain - Recargo de Equivalencia: A special VAT, levied on goods and services that
smaller customers pay on their purchase invoices in addition to standard VAT to simplify
their tax reporting.

Page225
With E-Business Tax, you can calculate and account for multiple tax regimes, levying
additional taxes such as Surcharges, Excise, and Sales Equalization taxes as required.

Receivables Latin Tax Engine

You use the Receivables Latin Tax Engine, rather than E-Business Tax, to set up and
maintain these country-specific taxes:
Argentina
Value Added Tax (VAT)
Additional VAT
VAT Not Categorized
VAT Perceptions
Provincial Turnover Perceptions
Municipal Perceptions
Ex cise
Brazil
IPI
ICMS
ICMS Tributary Substitution
ISS
IRJ
Colombia
Value Added Tax (VAT)
Income Tax Self Withholding

Page226
Tax Overview

Tax Overview
E-Business Tax processes Oracle Order Management and Oracle Receivables Output Tax,
which is charged on the supply of taxable goods and services on customer invoices or
revenue items. You should report Output Tax whenever you account for sales.
E-Business Tax processes Oracle Payables and Oracle Purchasing Input Tax, which is paid
on supplier invoices.
Input tax: What you pay your tax authority through supplier invoices.
Output tax: What you receive from customers and then pay to your tax authority.
Amount Due to the Tax Authority consists of Output Tax on customer invoices minus any
Recoverable Input Tax on supplier invoices.

Page227
Value Added Tax Overview

Value Added Tax Overview

Value Added Tax (VAT) is imposed on the supply of goods and services paid for by the
consumer, but collected at each stage of the production and distribution chain. The VAT
charged on a customer invoice is called Output Tax. Any VAT paid on a vender invoice is
called Input Tax. The amount due each period can be described as follows: Amount Due =
Output Tax Input Tax.

Page228
US Sales Tax Overview

US Sales Tax Overview

In general, these are the steps in the US Sales tax cycle:
The amount that the customer pays a supplier includes US Sales tax, if applicable.
The supplier is responsible for remitting the sales tax to the tax authority.
E-Business Tax derives the tax jurisdiction or jurisdictions that apply to a transaction line
based on the place of supply. The place of supply is the location where a transaction is
determined to have taken place. E-Business Tax either uses a default place of supply or
derives a place of supply based on tax rules. In some cases sales tax may not apply if
the product is not taxable in the relevant tax jurisdiction. In other cases, state, county,
and city taxes may all apply to the transaction.
The state and local tax jurisdictions collect sales tax from suppliers.
See: Tax Determination Processing, Oracle E-Business Tax User Guide for more information
about the tax determination process.

Page229
Tax Partner Process Overview

Tax Partner Process Overview

E-Business Tax lets you use the tax services of external service providers for tax calculation
of US Sales and Use Tax on Receivables transactions. E-Business Tax provides transparent
integration between the external tax service provider and Oracle Receivables. Both E-
Business Tax and the external service provider execute and complete the tax services without
any interruption to the application business flow.
You set up a service subscription to an external tax service provider in E-Business Tax for a
combination of tax regime and tax configuration owner (legal entity or operating unit). At
transaction time, when a transaction belonging to this tax configuration owner and tax regime
applies:
E-Business Tax passes tax and transaction information to the tax partner.
The tax partner returns a tax rate and tax amount for each applicable invoice line.
AutoAccounting generates account distribution tax lines based on the tax information
returned by the tax partner and E-Business Tax.
See: Setting Up Service Subscriptions, Oracle E-Business Tax User Guide for more
information about tax partner services.

Page230
Agenda

Page231
Setting Up Receivables for Tax Calculation

Setting Up Receivables for Tax Calculation

You need to complete setup steps in both E-Business Tax and Receivables in order to
manage tax calculation on Receivables invoices. Most setup takes place in E-Business Tax.
E-Business Tax setup:
- Regime-to-rate flow
- First and third party tax profiles
- Configuration options
- Tax registrations
- Tax exemptions
- Profile options
- Service subscriptions
- Tax rules
Receivables setup:
- Transaction types
- AutoAccounting

Page232
See: Setting Up Taxes in Oracle E-Business Tax, Oracle E-Business Tax User Guide for more
information about E-Business Tax setup steps.

Page233
Defining Transaction Types and Tax Exemptions

Defining Transaction Types and Tax Exemptions

Transaction Types
Receivables, Vision Operations (USA)
Order Management Super User, Vision Operations (USA)

(N) Setup > Transactions > Transaction Types

(N) Setup > Transaction Types > Define

Check the Default Tax Classification check box in the Transaction Types window for a
transaction type, if you want to default a tax classification code to the transaction line for use
by E-Business Tax. You only do this if you intend to calculate taxes using tax classification
codes and the Direct Tax Rate Determination tax rule. If you intend to calculate taxes using
the standard E-Business Tax tax determination process, then do not check this check box.

Tax Exemptions
You set up tax exemptions in E-Business Tax for customers and customer sites that are
exempt from a particular tax, or from tax on a particular product or service. You set up tax

Page234
exemptions under the third party tax profile for the applicable customer or customer site. Tax
exemptions apply to a specific customer or to a combination of customer and specific product.
See: Setting Up Tax Exemptions, Oracle E-Business Tax User Guide for more information
about setting up tax exemptions.

Page235
Defining AutoAccounting for Tax

Defining AutoAccounting for Tax

Receivables, Vision Operations (USA)

(N) Setup > Transactions > AutoAccounting

Use the AutoAccounting window to specify how Receivables determines the General Ledger
account for tax.
Enter Tax in the Type field.
Query all the segments of your Tax Account Flexfield. For each segment, assign the
value that you want to use to derive the account.
The default accounting that AutoAccounting creates is considered interim accounting only.
Subledger Accounting accepts the default accounts that AutoAccounting derives without
change. You can also modify the accounting rules in Subledger Accounting to create
accounting that meets your business requirements.

Page236
Enabling Calculation of Tax on Freight

Enabling Calculation of Tax on Freight

Receivables, Vision Operations (USA)

(N) Setup > Transactions > Transactions

You can assign freight charges to an invoice or to each invoice line. When you assign freight
to an invoice, Receivables includes the freight amount in the total amount of the invoice. To
assign freight to each invoice line, choose Freight from the Lines window after entering your
invoice lines.
By default, Receivables does not calculate tax on freight charges. However, you can calculate
sales tax on freight by using inventory items to define freight services and then entering these
items as ordinary invoice lines.
When you enter freight charges you also enter the freight GL Account. AutoAccounting
creates the default freight account.

Page237
Defining E-Business Tax Profile Options for Receivables

Defining E-Business Tax Profile Options for Receivables

System Administrator

(N) Profile > System

Define the following profile options:

eBTax: Allow Manual Tax Lines: Determines which users can enter manual tax lines on
the transaction for the tax setups that allow this update. If the tax configuration in E-
Business Tax has the related options enabled, then users can enter manual tax lines on
the transaction for the applicable tax.
eBTax: Allow Ad Hoc Tax Changes: Determines which users can make ad hoc tax
changes on the transaction line, such as selecting a different tax status or tax rate. The
changes that a user can make also depend upon the details of the applicable tax setups.
If the tax rate associated with a tax has the Allow Ad Hoc Rate option enabled, then
users can override the calculated tax rate on the transaction line.
eBTax: Allow Override of Customer Exemptions: Controls the display of the Tax
Handling field on the transaction line. You use the Tax Handling field to apply and
update customer tax exemptions on transactions. If you set the eBTax: Allow Override of

Page238
 Customer Exemptions profile option to Yes, you must also complete the related setups
in E-Business Tax for tax exemptions.
eBTax: Allow Override of Tax Classification Code: Controls whether users can update
the tax classification code that is defaulted to the transaction line. You only set this
profile option if you intend to calculate taxes using tax classification codes and the Direct
Tax Rate Determination tax rule. E-Business Tax defaults the tax classification code to
the transaction line according to the defaulting hierarchy defined for the operating unit
and application.

Page239
Defining E-Business Tax Profile Options for Order Management

Defining E-Business Tax Profile Options for Order Management

System Administrator

(N) Profile > System

Define the following profile options:

eBTax: Invoice Freight as Revenue: Controls whether to consider freight amounts as
taxable line items. Set the eBTax: Invoice Freight as Revenue profile option to Yes, if
you are required to tax freight amounts. The freight amounts entered in the Order
Management Ship Confirm window are then passed to Receivables transactions as
taxable line items. If you set the eBTax: Invoice Freight as Revenue profile option to
Yes, you must also set the eBTax: Inventory Item for Freight profile option.
eBTax: Inventory Item for Freight: Lets Order Management use an Inventory item
defined as Freight on Receivables transaction lines. You can use the freight Inventory
item to control the tax rate on taxable freight amounts. The values for this profile option
are:
- Freight Charge - The freight Inventory item applies to external Receivables
transactions.

Page240
- Freight for Intercompany - The freight Inventory item applies to internal
Receivables transactions only.

Page241
Agenda

Page242
Tax Accounting Overview

Tax Accounting Overview

To set up for tax accounting, define:
E-Business Tax: Tax accounting information for tax rate codes:
- Deferred tax
Receivables: Accounting rules for Receivables Activities:
- Miscellaneo us transactions
- Discounts
- Adjustm ents
- Late charges
You can also set up Receivables tax accounts in E-Business Tax for a given tax, tax rate, or
tax jurisdiction. You set up these accounts for a combination of primary ledger and operating
unit. You can set up these Receivables accounts:
Finance Charge Tax Liability
Non-Recoverable Tax Accounts
Expense/Re venue Accounts
See: Setting Up Tax Accounts, Oracle E-Business Tax User Guide.

Page243
Setting Up Tax Accounting for Deferred Tax

Setting Up Tax Accounting for Deferred Tax

Deferred tax recovery is an accounting method that defers the liability of tax to the time that
the invoice is paid, rather than when the invoice is created.
You set up for deferred tax recovery in E-Business Tax:
Set the Allow Tax Recovery option for the applicable tax regime.
Select Deferred as the default recovery settlement for the applicable tax regime, tax, tax
status, and tax rate records.
Set up an Interim Tax Account in the Tax Accounts page.

Page244
Defining Receivables Activities

Defining Receivables Activities

Receivables, Vision Operations (USA)

(N) Setup > Receipts > Receivable Activities

Define the GL Account and Tax Rate Code Sources.

GL Activity Source Options:
- Activity GL Account
- Revenue on Invoice
- Tax Rate Code on Invoice
- Distribution Set
Tax Rate Code Source Options:
- None: Allocates the entire tax amount according to the specified GL Account
Source. Select this option if you do not want to separately account for tax.
- Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by
the Receivables Activity.

Page245
 - Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code
on the invoice. You cannot choose this option if the activity Type is Miscellaneous
Cash or Late Charges.
Check the Recoverable or Non-Recoverable check box if the Tax Rate Code Source is
Invoice.
Enter a Tax Rate Code if the tax rate code source is Activity.

Page246
Updating the Tax Rate on Transactions

Updating the Tax Rate on Transactions

In Receivables, you can update the tax rate code on the transaction line if the appropriate E-
Business Tax settings are enabled for the tax and tax rate. These settings are:
eBTax: Allow Ad Hoc Tax Changes profile option is enabled.
Allow Ad Hoc Rate option is enabled in the applicable tax rate record.
Receivables displays the new tax rate and amount. If you use AutoAccounting and you
change the tax rate code, you are prompted to rerun Review Accounting
See: Setting Up Tax Rates, Oracle E-Business Tax User Guide for more information about
setting up tax rate records.

Page247
Adjusting Tax on Invoices

Adjusting Tax on Invoices

Receivables, Vision Operations (USA)

(N) Transactions > Transactions Summary > (B) Adjust

Receivables activities for tax adjustments must be set up first.

When you create a tax adjustment, Receivables automatically verifies that it is within
your adjustment approval limits.
- If within your assigned approval limit for the currency of that item, Receivables
updates your customers balance to reflect the adjustment.
- If outside your approval limits, Receivables creates a pending adjustment with a
status of Pending Approval, which will need to be approved by a higher level
employee with the proper approval limit.
Any adjustments that have been applied to the tax lines of an invoice and cannot be
claimed from the state, should use a Receivables activity where tax is not posted to a
sales tax liability account (for example, bad debt write-offs of sales tax amounts).

Page248
Tax Credit Memo

Tax Credit Memos

There are two types of credit memos: On Account and Applied. E-Business Tax uses a
different tax calculation method for each type.
On Account Credit Memos - E-Business Tax calculates tax on On Account credit memos
in a similar way to normal invoices. The only difference is that if the line amount is
negative, the tax calculated is also negative.
Applied Credit Memos - E-Business Tax calculates tax on Applied credit memos in direct
proportion to the line amounts on the invoice to which the credit memo is applied. For
example, if you create an invoice with one line item of $100 and tax of $10, then if the
line item is credited $10 with an Applied credit memo the tax line is credited $1.
In Receivables, you can create applied credit memos at the header level or the line level.
Header level - There are three options available for credit allocation:
- Line Only - Tax is not credited.
- Line and Tax - You enter the amount or percentage to be credited on the line
amount. The amount you enter is credited proportionately to each line in the
invoice. Each tax line is credited by the same percentage as the corresponding line
amount.

Page249
 - Tax Only - You enter the amount or percentage to be credited on the tax amount.
Each tax line is credited by the same percentage in proportion to the tax amount
for the line.
Line level - You can credit individual lines. The tax line is credited in proportion to the
line amount credit.

Page250
Summary

Page251
Period Closing Process
Chapter 12

Page252
Period Closing Process

Page253
Objectives

Page254
Agenda

Page255
Overview of Accounting and Receivables

Overview of Accounting and Receivables

You automatically create accounting entries for all Receivables accounting events using
Oracle Subledger Accounting (SLA).
Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entry
creation for E-Business Suite products. SLA creates journal entries for subledgers and
transfers them to Oracle General Ledger.
Receivables provides predefined rules that SLA uses to create journal entries for each
accounting event. You can also define your own accounting rules.
SLA allows multiple accounting representations for a single business event, resolving
differences between corporate and local fiscal accounting requirements. The most granular
level of journal entry detail is retained in the subledgers and summarized in General Ledger.
You can view all accounting lines produced by Receivables accounting events in the View
Accounting windows.

Page256
Oracle Subledger Accounting

Oracle Subledger Accounting

Oracle Subledger Accounting (SLA) is primarily a rule-based accounting engine that
centralizes accounting for Oracle E-Business Suite products as well as providing an
accounting toolset and repository. It is not a separate product in itself, but it is Oracles engine
catering to the accounting needs of both Oracle and external modules.
Together with ledger support, it enables support of multiple accounting requirements
concurrently in a single instance. Different accounting regulations can be satisfied by
maintaining and applying different sets of rules to different sets of transactions. SLA can also
provide accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, SLA allows powerful
reconciliation and auditing capabilities.
SLA provides the setup user interface (UI), inquiry UI, and data model for accounting across
Oracle E-Business Suite modules. This common UI provides consistency in reporting,
analysis, and user experience, in turn allowing it to replace various product-specific
accounting setups from earlier Oracle E-Business Suite releases.

Page257
Oracle Subledger Accounting Integration

Oracle Subledger Accounting Integration

Oracle Subledger Accounting integrates with the following E-Business Suite applications:
Payables
Receivables
Projects
Assets
Costing
Process Manufacturing
Public Sector/Federal
Payroll
Property Manager
Loans
Lease and Finance Management
Intercompany
Cash Management
Globalizatio ns

Page258
For complete details regarding Subledger Accounting, see: Oracle Subledger Accounting
Implementation Guide.

Page259
Subledger Accounting Key Concepts

Subledger Accounting Key Concepts

The event model defined in SLA for each subledger represents the transaction or document
types and the lifecycle of each transaction:
Event entity groups together related event classes
Event class classifies transaction types
Event type defines possible actions on each event class with possible accounting
significance
The journal creation rules are defined per event class and event type.
Transaction object and sources are the data model for each subledger that contains the
transaction attributes and information made available to be used during journal rule setup and
journal entry generation.

Page260
Subledger Accounting Receivables Accounting Event Model

Subledger Accounting Receivables Accounting Event Model

An event entity enables Oracle Subledger Accounting to handle the accounting for similar
business events in a consistent manner. The four predefined subledger accounting event
entities in Receivables are:
Transaction s
Receipts
Adjustm ents
Bills Receivable
Each event entity is associated with one or more event classes. An event class represents a
category of business events for a particular transaction type or document.
Event classes group similar event types and enable the sharing of accounting definitions. An
event type represents a business operation that you can perform for an event class. An
accounting event has both an event class and an event type that affect how the Create
Accounting program determines the subledger accounting for it.
Event types provide the lowest level of detail for storing accounting definitions. For example,
the Receivables event class Miscellaneous Receipt is subject to three types of business
operations that are represented by the event types Miscellaneous Receipt Created,
Miscellaneous Receipt Reverse, and Miscellaneous Receipt Updated.

Page261
Subledger Accounting Setup and Process

Subledger Accounting Setup and Process

You can define your own accounting rules in addition to the accounting rules seeded for
Receivables. The setup for subledger accounting is common to all subledger applications and
involves setting up journal entries, defining a subledger accounting method, and assigning the
subledger accounting method to the ledger.
See: Oracle Subledger Accounting Implementation Guide for complete information about
setting up for subledger accounting.

Page262
Agenda

Page263
Receivables Period Closing Process

Receivables Period Closing Process

Create subledger accounting entries in Receivables using the subledger accounting engine.
After reconciliation and review, Receivables accounting information is transferred to General
Ledger. These entries are reviewed and then posted to General Ledger.

Page264
Overview of Ordering to Period Closing

Overview of Ordering to Period Closing

This is an example of the flow of sales orders to the General Ledger. Some orders may not
follow the complete cycle or may come from other applications.
In this example, the orders are shipped, inventory is decremented, the orders are invoiced,
Receivables subledger accounting entries are created, and the receipts are posted.
To finish the process and close the period, the Receivables subledger transactions are
reviewed and transferred to General Ledger through Subledger Accounting.

Page265
Agenda

Page266
Standard Reports

Standard Reports
Receivables, Vision Operations (USA)

(N) Reports

Reports can be run as a concurrent process from the Submit Requests window.
Use these reports when needed to review activity at any time during the month.

Page267
Agenda

Page268
Reconciling Receivables

Reconciling Receivables
Internal Reconciliation
Internal reconciliation reconciles the Receivables opening to closing balance:
(Opening Balance + Transactions) (Payments) = Closing Balance

Reconciling Subledger Accounting Details

Reconcile the period operational activity with Receivables subledger accounting data before
posting to General Ledger. Use these reports to research transactions and receipts, and the
different accounts that they affect, for a given period.
AR Reconciliation Compares transactional data against accounting data. Use this
report during the internal reconciliation process to see if the balances on the various
registers match those on the journal reports. You can also see which items affect aging,
and which items affect GL account balances. This helps you to more easily reconcile your
accounts receivable activities, before you post to General Ledger.
Potential Reconciling Items Review suggested journal items that might potentially post
to incorrect GL account types.
Journal Entries Review the details that make up the General Ledger journal entries.
Aging Review beginning and ending customer balances.

Page269
 Sales Journal by Account Ensures that the Transaction Register matches the Sales
Journal.
Transaction Register Verifies that all items that can be posted are reflected on the
Sales Journal. The Sales Journal balance should match the total of the transactions here
after adding the credit memo total twice (because it is a negative on the Transaction
Register and a positive on the Sales Journal).
Adjustments Register Identifies any adjustments that affect the transactions for the
month.
Unapplied Receipts Register Determines customer balance after taking into account all
on-account and unapplied amounts.
Applied Receipts Register Identifies receipts that reduce the outstanding opening
balance.
Reconciling Receipts
Use register and journal reports to reconcile receipts according to the receipt life cycle
(confirmed, remitted, cleared) from a cash perspective:
Receipt Journal View receipts that appear in the Journal Entries report.
Receipt Register Review a list of receipts for a specified date range.
Other Receipt Applications View details about receipt activity that do not impact
customer open receivables.
External Reconciliation
External reconciliation reconciles the Receivables trial balance (that is, the Aging Report) to
the Receivables control account (or accounts) in General Ledger.
After you internally reconcile Oracle Receivables data and post to General Ledger, complete
the external reconciliation process with the help of these reports:
Subledger Accounting Program View the subledger journal entries created for
successful events.
Journal Entries Review the details that make up the General Ledger journal entries.
Journal Import Execution Displays the total debits and credits for the journal created.
Posting Execution Displays the total debits and credits that are posted.
Unposted Journal Displays the total debits and credits that are not posted.
AR to GL Reconciliation Verifies that all Receivables journal entries were posted to the
correct General Ledger accounts.

Page270
Transferring to General Ledger

Transferring to General Ledger

The Create Accounting program creates subledger accounting entries in Receivables and
transfers these entries to General Ledger. The program populates the GL Interface tables with
Receivables transaction data. The data can be transferred in detail or summary format.
For the transactions that are out of balance, use the Unposted Items report to identify all the
items that are not posted for the specified GL date range.
For the transactions in balance, use the Posting Execution report to verify that all journal
entries exported from Receivables match those posted to General Ledger.
Note: The subledger journal entries can also be directly posted to the General Ledger by
enabling the Post in General Ledger option in the Create Accounting Program.

Page271
Running the Journal Import Program

Running the Journal Import Program

The Create Accounting program can be submitted in either draft mode, if you want to review
the results before you create the final accounting, or final mode. During program submission,
if you create final accounting, then those entries are automatically transferred to the General
Ledger interface table, imported by the Journal Import program, and posted.
You can also choose not to post the entries automatically while submitting the Create
Accounting program. In this case, run the Journal Import Program manually in GL to transfer
accounting information from the GL Interface to the General Ledger.
The journal import program takes the information from the GL Interface table and populates
the GL_JE_BATCHES, GL_JE_HEADER and GL_JE_LINES tables. The journal entries that
were created by the import program must be posted to update the account balances.

Page272
Mapping Receivables Transactions to General Ledger Categories

Mapping Receivables Transactions to General Ledger Categories

If you experience reconciliation issues between transactions and categories, use the map in
this slide to check your setup information.

Page273
Running Revenue Recognition

Running Revenue Recognition

Receivables, Vision Operations (USA)

(N) Control > Accounting > Revenue Recognition

The Revenue Recognition program will automatically run as a part of the General Ledger
transfer process. You can also run the Revenue Recognition program manually at any time.
The program generates the revenue distribution records for invoices and credit memos that
use invoicing and accounting rules. Accounting rules determine the number of periods and
percentage of total revenue to record in each accounting period. Invoicing rules determine
when to recognize the receivable for invoices that span more than one accounting period.
Distributions are created in the Receivables subledger and will pass to General Ledger during
the appropriate accounting period. This is an essential process in accrual-based accounting.

Page274
Summary

Page275
 Appendix A: Bank
Reconciliation
Chapter 13

Page276
Appendix A - Bank Reconciliation

Page277
Course Objectives

Page278
Course Objectives

Page279
Agenda

Page280
Agenda

Page281
Reconciliation Overview

Reconciliation Overview
This graphic depicts the reconciliation process flow.
Enter detailed bank information manually or electronically.
Reconcile this information with your system transactions manually or automatically.
While reconciling, you can create miscellaneous transactions for bank-originated entries and
manually enter payments and receipts.
You can manually or automatically clear payments, receipts, open interface and
miscellaneous transactions before reconciliation to maintain current cash account balances.
After reconciliation, review the Bank Statement Detail, Bank Statement Summary, and Bank
Statement by Number Reports.
You can post the accounting entries to your General Ledger. You can reconcile your general
ledger cash account balance to your bank account balance in Cash Management by printing
the GL Reconciliation Report.

Page282
Reconciliation Integration

Reconciliation Integration
Oracle Cash Management shares functionality with Receivables, Payables, Payroll, Treasury,
General Ledger, and other external systems.

Page283
Reconciliation: Oracle Receivables and Oracle Payables

Reconciliation: Oracle Receivables and Oracle Payables

You can reconcile payments you created in Payables and receipts you entered in Receivables
against your bank statements.
When you reconcile Payables payments in Cash Management, the payments are first
matched to bank statement lines and then cleared. You can also manually clear the payments
prior to reconciliation. After clearing or reconciling your payments, you can create accounting
entries for the Cash, Cash Clearing, Bank Charges, Bank Errors, Realized Gain, and Realized
Loss accounts that you specified in the Oracle Payables Bank Accounts window and the
Payment Documents window. You then transfer the accounting entries to your general ledger.
When you reconcile receipts with Cash Management, accounting entries are automatically
created in the Cash, Remittance, Short-term Debts, and Interest Earned accounts, as
applicable to the reconciliation transaction. Cash Management uses the accounts you defined
in the Banks window and the Receivables Remittance Banks window (off the Receipt Classes
window). You post the accounting entries resulting from Cash Management receipt
reconciliation to General Ledger from Receivables.

Page284
Functions with Receivables

Functions with Receivables

Cash Management performs the following functions with Oracle Receivables:
Clear and reconcile receipts: Receipts are made available to Cash Management to
reconcile with bank statement entries.
Reverse receipts: Receipts that are returned NSF (non-sufficient funds) or Stop
Payment are reversed and Debit Memos can be created from Cash Management.
Create Oracle Receivables receipts: Receipts that are missing from Receivables can
be entered using a link from Cash Management.
Create miscellaneous transactions for bank-initiated transactions: Miscellaneous
Receipts can be created in Receivables using a link from Cash Management for both
positive and negative amounts.

Page285
Oracle General Ledger and Payroll

Page286
Reconciliation of Oracle Payroll EFT Payments

Reconciliation of Oracle Payroll EFT Payments

Cash Management provides support for various payment formats like NACHA, BACS, and so
on for Payroll EFT Payments reconciliation. In order to use this feature, you first need to
define the transaction code that specifies the payroll payment format. When defining a
transaction code with a payment format, the Payroll Matching Order field will show the order
you need to define your BANK_TRX_NUMBER format in your bank statement-mapping
template. You will then need to either update or define a new bank statement-mapping
template to enter the Format for the BANK_TRX_NUMBER with the format that is needed to
identify the EFT payments.
Multiple identifiers might be needed to identify EFT payments. You will need to determine
what the identifiers are and enter the Format for the BANK_TRX_NUMBER with the formats
that are needed to identify the EFT payments. The format should be entered in the order
specified by the Payroll Matching Order assigned to the transaction code setup for Payroll
EFT payments. Once the setup is complete, you can load, import, and reconcile bank
statements containing Payroll EFT payments.

Page287
AutoReconciliation Overview

AutoReconciliation Overview
This graphic depicts the AutoReconciliation process flow.

Page288
Load Bank Statements

Load Bank Statements

Bank files can be loaded in the Bank Statement tables in two ways:
To import bank statements automatically, use a SQL*Loader script against the bank file
to populate the Bank Statement Open Interface. Then import the bank statement
information using the Bank Statement Import Program.
To enter a bank statement manually, enter the bank statement header information and
the transaction lines in the Bank Statement window.

Page289
Agenda

Page290
Setting Up Oracle Cash Management and Related Products

Setting Up Oracle Cash Management and Related Products

Before you set up Cash Management, you should set up Oracle Application responsibilities
and users for the implementation.
Cash Management provides three responsibilities: Cash Management, Bank Reconciliation,
and Cash Forecasting.
It uses data from Oracle General Ledger, Oracle Payables, Oracle Payroll, Oracle
Receivables, and Oracle Treasury for bank statement reconciliation.
It uses information from Oracle General Ledger, Oracle Order Management, Oracle
Payables, Oracle Payroll, Oracle Purchasing, Oracle Projects, Oracle Sales, Oracle
Treasury, and Oracle Receivables for cash forecasting.
You must perform certain setup steps in these applications before you can use Cash
Management with them.

Page291
Setting Up Oracle Cash Management System Parameters

Setting Up Oracle Cash Management System Parameters

(N) Setup > System > System Parameters

Use the System Parameters window to configure your Cash Management system to meet
your business needs. System parameters determine, for example, the default options for
manual reconciliation windows and the control settings for the AutoReconciliation program.
Basic System Parameters
Legal Entity: The name of the legal entity that the system parameters are applied to.
Ledger: The name of the ledger for Cash Management accounting transactions. This
value defaults from the GL Ledger Name profile option. Cash Management supports
multiple ledgers. Each legal entity is tied to a ledger. If you use multiple legal entities,
then you must set up system parameters for each legal entity.
Begin Date: Cash Management will not display transactions dated earlier than this date.
Reconciliation Controls
Show Cleared Transactions: If you check this check box, cleared transactions remain
available for reconciliation. Otherwise, only uncleared transactions will appear for
reconciliation.

Page292
 Allow Adding Lines to Imported Statements.
Show Void Payments: You must check this check box if you want voided payments
available for reconciliation.
Signing Authority Approval
Workflow Enabled
Manually Controlled
Cash Management Transactions
Accounting: Exchange Rate Type, Bank Statement Cashflow Rate Date, Bank Transfer
Rate Date
Bank Account Transfers: Authorization

Note: Set up bank reconciliation controls, such as matching order and float status, for each
bank account when you create or update a bank account.

Page293
Setting Up Oracle Cash Management Bank Transaction Codes

Setting Up Oracle Cash Management Bank Transaction Codes

If you want to load electronic bank statements or use Cash Management AutoReconciliation,
you must define, for each bank account, the transaction codes that each bank uses to identify
different types of transactions on its statements.
Because each bank might use a different set of transaction codes, you must define a bank
transaction code for each code that you expect to receive from each bank that you use.
Transaction types include: Payment, Receipt, Miscellaneous Payment, Miscellaneous
Receipt, Stopped, Rejected, NSF (non-sufficient funds), Sweep In, and Sweep Out.

Page294
Agenda

Page295
Bank Statement Open Interface

Page296
Bank Statement Open Interface

Page297
Bank Statement Open Interface

Page298
Importing Bank Statements

Page299
Bank Statement Validation

Bank Statement Validation

Use the AutoReconciliation Execution Report or the View Reconciliation Errors window to
review any import validation errors.
Use the concurrent request log file to review any errors or warnings related to Treasury.
Use the Bank Statement Interface window to correct any import validation errors.

Page300
Bank Statement Interface Errors

Bank Statement Interface Errors

Use the Bank Statement Interface window to review import validation errors from the
Bank Statement Open Interface tables.
Review the AutoReconciliation Execution Report.
Review all import and validation errors for a statement.

Page301
Setup for Bank Statement Open Interface

Setup for Bank Statement Open Interface

First, define a bank statement mapping rule, if necessary. Then run the custom loader
program against the bank statement file to populate the Bank Statement Open Interface
tables. Verify that the bank statement data was loaded into the open interface tables correctly.
You can use the Bank Statement Interface window to ensure that bank statement header
information is correctly inserted into the CE_STATEMENT_HEADERS_INT_ALL table.
You can use the Bank Statement Lines Interface window to ensure that bank statement
transaction lines are correctly inserted into the CE_STATEMENT_LINES_INTERFACE table.
The Bank Statement Interface and Bank Statement Lines Interface windows show you the
statement header and lines information in the open interface tables. You can correct the data
using these windows, or you can correct the original bank statement file and reload it using
your custom loader program.

Page302
Agenda

Page303
Entering Bank Statements Manually

Entering Bank Statements Manually

Prerequisites:
Define banks
Define bank transaction codes for the bank account
Set up Receivables activities and receipt methods for miscellaneous transactions
Set up sequential document numbering for Cash Management

Page304
Entering Bank Statement Information Manually

Page305
Agenda

Page306
Archiving and Purging

Archiving and Purging

After you import a bank statement into Cash Management, you can purge its data from the
Bank Statement Open Interface tables. After you reconcile it, you can purge its data from the
Bank Statement tables. To save a copy of your bank statement, you can archive the data
before you purge it. You can also archive or purge intra-day bank statement data from the
Bank Statement Open Interface and the Intra-Day Bank Statement tables.
You can run the Archive/Purge Bank Statements program to archive and purge. You can run
this program in preview mode to review the bank records that can be purged and in purge
mode to execute the actual purge process. It is recommended that you run the program in
preview mode first to confirm that the records picked up by the program are the ones you
actually want to purge. When the program completes, it automatically prints the Archive/Purge
Bank Statements Report to display the number of headers and lines that were archived or
purged.
When you purge a bank statement, you must also purge any system transactions reconciled
to it. You periodically archive and purge your bank statement interface and bank statement
tables, or the retained information will continue to occupy valuable disk space. If you use Cash
Management to reconcile journal entries in General Ledger, you should run the Cash
Management Purge program before you purge journals in General Ledger.

Page307
To save your archived data to a file, use the ORACLE RDBMS Export utility. To restore data
from a saved archive file, first use the ORACLE RDBMS Import utility to populate the special
archive tables, then run a custom SQL* Loader script to transfer the data.

Page308
Archiving and Purging Automatically

Archiving and Purging Automatically

Archive tables to the bank statement or open interface tables
The Archive/Purge Bank Statements Report lists the number of bank statements (headers and
lines) that were archived or purged from Cash Management.
The Bank Purging Execution Report displays the Oracle Payables and Oracle Payroll banks,
bank branches, internal bank accounts, and employee bank accounts that are processed by
the Bank Purging program.

Archiving and Purging Automatically

If you set the Archive and Purge options in the System Parameters window, you can
automatically archive or purge bank statement data from the Bank Statement Open Interface
tables after bank statements have been imported into Cash Management. You can also
automatically archive or purge imported intra-day bank statement data from the Bank
Statement Open Interface tables. To archive or purge data from the Bank Statement or Intra-
Day Bank Statement tables, run the Archive/Purge Bank Statements program.

Page309
Agenda

Page310
Reconciling Bank Statements Automatically

Reconciling Bank Statements Automatically

You can run these programs from the Submit Request, Reconcile Bank Statements, or Bank
Statement Interface windows. You can also import and automatically reconcile a bank
statement from the Bank Statement Loader program by selecting the Load, Import, and
AutoReconciliation option.
AutoReconciliation: Used to reconcile any bank statement entered in Cash
Management.
Bank Statement Import: Used to import an electronic bank statement after loading the
bank statement file into the Bank Statement Open Interface tables.
Bank Statement Import and AutoReconciliation: Used to import and reconcile a bank
statement in the same run.
AutoReconciliation Program
You can use the AutoReconciliation program to automatically reconcile any bank statement in
Cash Management.
After you run the program, you can review the AutoReconciliation Execution Report to identify
any reconciliation errors that need to be corrected. You can run this report automatically or as
needed, and also review reconciliation errors online.

Page311
After automatically reconciling a bank statement and correcting any reconciliation errors, you
can run the Bank Statement Detail Report, which shows statement and transaction data for a
specific bank account statement, any unreconciled transactions separately with their current
status, and the statement totals for each transaction type. Or you can use the View Bank
Statements window to review reconciled and unreconciled statement lines. If lines remained
unreconciled, you can update the bank statement and rerun the AutoReconciliation program
and reconcile the statement lines manually.
Once you have reviewed your reconciliation results, you can transfer the accounting entries to
your general ledger from Payables and Receivables. If you use Oracle General Ledger, you
can reconcile your General Ledger cash account balance to your bank account balance by
running the GL Reconciliation Report.

Page312
Agenda

Page313
Reconciling Bank Statements Manually

Reconciling Bank Statements Manually

When you use manual reconciliation, you can search for the following:
Payroll or Payables payments, Receivables receipts, miscellaneous transactions, GL
journal entries, open interface transactions, and specific statement lines
Treasury settlements by using the Reconciliation Open Interface
Customer or supplier transactions, batch name, or remittance number, ranges for
transaction numbers, transaction date, transaction amount, and maturity date
Journal entries on period name, journal entry name, document number, or line number
As you reconcile a statement manually, you may need to create transactions to account for
differences between the sum of the reconciled transaction and the line amount.

Page314
Creating Miscellaneous Transactions

Creating Miscellaneous Transactions

When you create a miscellaneous payment, it is actually recorded as a negative receipt.
When you reconcile that miscellaneous payment, or negative receipt, it is reconciled to a
payment bank statement line with a positive amount.
Define receivables activities and receipt methods for miscellaneous transactions. When
you define a receivables activity with the type Miscellaneous Cash, you must also assign
either an account or a distribution set to use for the miscellaneous transaction
accounting entries.
Perform any additional setup required by Receivables to handle miscellaneous receipts,
including defining receipt sources and distribution sets.
Set up Sequential Numbering.

Page315
Recording a Bank Transmission Error

Page316
Recording Transactions from External Systems

Page317
Reconciliation Open Interface

Page318
Agenda

Page319
Manually Clearing and Unclearing

Page320
Clearing and Reconciling Transactions in Oracle Payables

Clearing and Reconciling Transactions in Oracle Payables

The Cleared Transactions Report shows transactions that were cleared or reconciled both
manually and automatically. The Cleared Transactions Report can be submitted for Payables
payments only, receipts only, payroll payments only, or all three.

Page321
Clearing and Reconciling Transactions in Oracle Receivables

Page322
Transferring Bank Reconciliation Transactions to Your General
Ledger

Transferring Bank Reconciliation Transactions to Your General Ledger

When you reconcile bank statement lines to journal entries in General Ledger, no
reconciliation accounting entries are created. Transferring to General Ledger is only required
for entries created in Payables and Receivables. Cash Management does not provide
reconciliation accounting data to Payroll.
If you use General Ledger, you need to run the Journal Import program after transferring your
reconciliation accounting transactions from Payables or Receivables to create journal entries
based on the reconciliation transactions. Once you run Journal Import, you need to post your
journals in General Ledger.
Use the GL Reconciliation Report to reconcile the General Ledger cash account balance to
the bank statement closing balance and to identify any discrepancies in your cash position.
The General Ledger cash account should pertain to only one bank account. The summary
report lists the General Ledger cash account balance, an adjusted balance for the bank
statement, a separate adjustment amount for unreconciled receipts, payments, journal entries
which have been recorded in the General Ledger cash account, and bank errors. The detail
report provides details for the unreconciled items as well as the information contained in the
Summary report.

Page323
Agenda

Page324
Recording Exceptions

Recording Exceptions
If you implement the automatic bank transmission feature, use the Payment Exceptions
Report to view payment exceptions generated by the bank and transmitted to your local
directory. You can view the transmission history and the actual report in the Transmissions
window. In the Find Transmissions window, choose the file type of EXCEPTION to query
exceptions reports. Select the File Text field of the file you want to view and choose Edit Field
from the Edit menu. The Editor window displays the content of the file you selected.
To resolve the payment exceptions, you need to manually unreconcile the transactions in
Cash Management and void the payment in Payables.

Page325
Handling Non-Sufficient Funds (NSF) Using AutoReconciliation

Page326
Handling Non-Sufficient Funds (NSF) or Rejected Receipts
Manually

Page327
Recording a Stopped Payment

Page328
Recording a Direct Debit from a Supplier

Page329
Entering Reversals

Page330
Reconciling Corrections and Adjustments to Bank Errors

Page331
AutoReconciliation Matching

Page332
AutoReconciliation Matching: Reversal Method

Page333
AutoReconciliation Matching: Adjustment Method

Page334
Manual Reconciliation Matching

Manual Reconciliation Matching

If you are reconciling bank statements manually, the Reconcile Bank Statements window
retrieves all available statement lines and transactions that match your selection criteria. Then
you can decide how you want to reconcile the correction entry.
If you have already reconciled the error statement line to a transaction, you must first
unreconcile the error statement line before attempting to reconcile it with the correction entry.
Sometimes a bank uses one correction entry to correct multiple error statement lines. You can
manually reconcile between multiple statement lines.

Page335
Agenda

Page336
Value Date Support

Value Date Support

With value date support, you can:
Calculate a more accurate short-term cash forecast based on value date.
Track actual value dates and derive more accurate lead times.
Calculate a more accurate interest on interest-bearing accounts.

Page337
Value Date Support in Oracle Payables and Oracle Receivables

Value Date Support in Oracle Payables and Oracle Receivables

Postpone reconciliation in the System Parameters window if the value date on the statement
line is greater than the current date. Enter the payments anticipated value date in Payables at
creation time. Update the actual value date for each payment during reconciliation.
Value Date Derivation in Applications is as follows:
Oracle Payables: Anticipated Value Date, Actual Value Date
Oracle Cash Management: Bank Statement, Miscellaneous Transactions, Manual
Clearing
Oracle Receivables: Anticipated Value Date, Actual Value Date
In the Forecast process, selection hierarchy for future AR Receipts and AP Payments are:
AR Receipts:
Value Date (actual then anticipated)
Maturity Date
Latest Transaction Date
AP Payments:
Value Date (actual then anticipated)
Maturity Date

Page338
 Payment Date

Page339
Agenda

Page340
Oracle Cash Management Reports

Page341
Archive/Purge Bank Statements Report

Page342
AutoReconciliation Execution Report

Page343
Bank Statement Detail Report

Page344
Bank Statement Summary Report

Page345
Bank Statements by Document Number Report

Page346
GL Reconciliation Report

Page347
Cash in Transit Report

Page348
Cleared Transactions Report

Page349
Transactions Available for Reconciliation Report

Page350
Batches Available for Reconciliation Report

Page351
Bank Transaction Codes Listing

Page352
Cash Application Work Queue

Cash Application Work Queue

Using Cash Application Work Queue, you are be able to:
Filter the work queue assigned to you.
Sort the work queue assigned to you
For a selected work item, perform all business actions that are currently available in the
receipt context, within the limits of the functional privileges.
Identify a set of existing work items, based on search criteria, and re-assign in bulk to
another user.
Manually change the status of the selected work items.
Manually assign a review date to the selected work items.
Add notes to the selected work items.
Export the work items to Excel.
View other users work queue within the security framework.

Page353
Cash Application Work Queue (continued)

Cash Application Work Queue (continued)

Work Item Assignment:
Unapplied receipts and unidentified receipts in the cash application owners queue are
referred to as work items. The Work Item Assignment means identifying the unapplied and
unidentified receipts and assigning them to cash application owner work queue for further
processing.
Work Item assignment to cash application owners queue will be performed by leveraging the
Work Item Assignment Rule Engine. By using this rule engine, assignments can be done
evaluating one or more conditions defined in a rule. You can define multiple conditions in a
rule and associate the rule to a particular cash application owner. Following receipt attributes
will be available for defining conditions in a rule:
Bill To Customer
Bill To Site
Customer Profile Class
Country
Operating Unit
Currency

Page354
 Unapplied Amount
Unidentified Amount
You can define multiple rules and assign them priority. The system evaluates rules based on
priority and when conditions for a rule are satisfied, the rule engine returns the cash
application owner assigned to the rule and stops evaluating the remaining rules. The rule
engine also allows you to define a default cash application user, who will be used when none
of the rules are satisfied.
The Cash Application Work Items Assignment concurrent program runs after the new
Automated Cash Application process is run. The concurrent program loops through all
unidentified and unapplied receipts not assigned to Cash Application Owners and invokes the
rule engine and passes receipt attributes. The rule engine determines the Cash Application
Owner for each receipt and provides it to concurrent program, which assigns the work items to
the work queue of respective Cash Application Owner.

Work Item Status Maintenance

The system provides a new extensible lookup to store work item status codes. System seeds
the status codes New and Closed. You can add additional status codes to the lookup. The
work item has a status of New when it assigned to the cash application owner work queue by
the Work Item Assignment concurrent program. Cash application owner can later change the
status to any user defined status codes. Once the receipt is fully applied, system updates the
status to Closed.

You can also bulk reassign work items selected on Cash Application Work Queue page to any
particular Cash Application User. You can also update few fields for work items selected on
Cash Application Work Queue page. You can update these columns: Cash Application
Owner, Review Date, Work Item Status and Note.

Page355
Work Load Review Report

Work Load Review Report

This report provides work queue information of Cash Application Owner/s for a defined period.
This helps in analyzing workload of Cash Application Owners. The report lists all work items in
the queue of Cash Application Owner/s selected in the query parameters. It also gives
summary at the top of the report. Report shows detailed information of work items if Yes is
selected for the Detail parameter , otherwise report shows summary information only.

Page356
Summary

Page357
Summary

Page358