Oracle Receivables R12

ORACLE RECEIVABLES
Release 12 Upgrade Considerations
AGENDA
Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting in Receivables Obsolescence and Replacement of Features Centralized Payment Process
Automated Refunds AP/AR Netting Daily Revenue Revenue Contingencies COGS and Revenue Matching Multi-Org Access Control
AGENDA
NEW AND CHANGED FEATURES FOR BALANCE FORWARD BILLING
Balance Forward Billing provides enhanced billing options that replace the consolidated billing functionality of prior releases with a more complete and flexible solution.
BALANCE FORWARD BILLING DESCRIPTION
Generate bills based on new Billing Cycles

Easily create daily, weekly, monthly, bi-monthly, quarterly, and annual billings Bill on specific days of the month, or days of the week Choose to exclude weekends
Consolidate billing activity at the level of customer Account or Site

Consolidated activity across account sites, or by each billing site Not all billing sites need to consolidate their invoices, or be included in account level billing specific invoices can be excluded from the Bill
BALANCE FORWARD BILLING DESCRIPTION
Enhanced viewing and printing

Bill Presentment Architecture (BPA) configured formats provide a more appealing layout that can be easily modified View the completed bill online
Streamline processing with fewer programs to run and maintain
Three programs compared to five used by consolidated billing feature
BALANCE FORWARD BILLING BENEFITS
Increased flexibility provides billing consistent with business practices and customer needs
Expanded billing period definitions, varied levels of consolidation, exclusion of specified invoices, unlimited print formats User views the balance forward bill online exactly as the customer sees it All invoices on the same bill have the same due date, guaranteeing the individual invoices will age simultaneously
Clearer communication with the customer
Improved accuracy of Aging
BALANCE FORWARD BILLING SETUP AND PROCESS

SETUP
Define Billing Cycle Define Payment Term and assign Billing Cycle Enable Balance Forward Billing for Customer Account or Site Run BPA Balance Forward Print Program Automated process
PROCESS
Manually Create Transactions Import Transactions
Run Generate Balance Forward Bill Program
Run Confirm Balance Forward Bills Program
BALANCE FORWARD BILLING SETUP DEFINE BILLING CYCLE
When setting up Balance Forward Billing:
For Daily, choose how often and whether to use work days only For Weekly, choose how often and day of week The form changes based on the Frequency you choose.
BALANCE FORWARD BILLING SETUP DEFINE BILLING CYCLE
When setting up Monthly Balance Forward Billing Cycles:

Choose the number of months to create bi-weekly, quarterly or biannual billing Choose a specific date or multiple dates Choose to create exclude weekends
BALANCE FORWARD BILLING SETUP DEFINE PAYMENT TERM

Billing Cycle is a new attribute of the Payment term A billing cycle must be assigned to the payment term to process balance forward billing. Not updateable if the payment term has been used Cutoff Date information is setup on the billing cycle
BALANCE FORWARD BILLING SETUP CUSTOMER PROFILE CLASS
The Profile Class tab includes:
Ability to enable:
Bill Level Account, Site Type Summary, Detail, Imported (if Level = Site)
Payment Term
Balance Forward (if Enabled), Non-Balance Forward (if not enabled) Default term can be updated
Override Terms
BALANCE FORWARD BILLING SETUP ACCOUNT & SITE PROFILE

You must enable Balance Forward at Account and Site Profile The Bill Level is set ONLY at the Account level Allow override of terms to exclude invoices from the bill
BALANCE FORWARD BILLING SETUP ACCOUNT LEVEL BILL EXAMPLE

Bill Level Primary Bill-To
Use
Use
Ignore
BALANCE FORWARD BILLING SETUP SITE LEVEL BILL EXAMPLE

Bill Level Ignore Use
Use
ORACLE BPA RULES SETUP

Rules for Balance Forward Bills use the Primary Data Source of Oracle Receivables Balance Forward Use existing BPA templates or create your own For the same print formatting as Consolidated Bills, use the attribute Display Format
BALANCE FORWARD BILLING PROCESS ENTER TRANSACTION
Payment Term defaults:

from Site profile if Bill Level = Site from Account profile if Bill Level = Account
Billing Date is derived from transaction date and billing cycle Due Date is derived from billing date and payment term Select non-Balance Forward term if Override Terms = Yes
BALANCE FORWARD BILLING PROCESS IMPORTED TRANSACTIONS
AutoInvoice derives the billing date

Billing Date is a new mandatory grouping rule Billing Date value is mandatory if cycle = External
Transaction API derives the billing date
Billing Date value is mandatory if cycle = External
Legacy Invoices must be imported with specific billing date if the seeded External cycle is assigned to the payment term Imported Billing Number feature used by OKL and legacy systems is still supported and does not use the balance forward programs
BALANCE FORWARD BILLING PROCESS CREATING BILLS
Generate Balance Forward Bills program

Replaces Print Draft Consolidated Billing Invoices Replaces Print New Consolidated Billing Invoices
Confirm Balance Forward Bill program

Replaces Accept Consolidated Billing Invoices Replaces Reject Consolidated Billing Invoices
BPA Balance Forward Print Program
Replaces Reprint Consolidated Billing Invoices
BALANCE FORWARD BILLING PROCESS GENERATING BILL LOGIC
BALANCE FORWARD BILLING USE CASES
Case 1:
Billing Cycle = 10th of every month Last Bill Generated = Dec 10, 2004 Todays Run Date = Jan 12, 2005
1 bill generated for Jan 10, 2005
Case 2:
Billing Cycle = 10th of every month Last Bill Generated = Dec 10, 2004 Todays Run Date = Jan 8, 2005
No bill generated Run date must be Jan 10, 2005 or later
BALANCE FORWARD BILLING PROCESS GENERATE BILL PROGRAM
Generate Balance Forward Bills Program Parameters:
Choose Print Option

Draft bill Final bill
Print Output
Default Yes calls the BPA Print Program Must be Yes to view online No, if plan to print later
Specify Billing Cycle
This limits customer and available payment terms to chose from
BALANCE FORWARD BILLING PROCESS CONFIRM BILL
Program Parameters for confirming a bill include:
Confirm Option
Accept Reject
Concurrent Request ID
ID from Generate Run Allows batch confirmation Required if no other parameters selected
Use other parameters to limit the bills affected
SUMMARY BALANCE FORWARD BILL EXAMPLE
DETAIL BALANCE FORWARD BILL

Balance and Summary information
All lines for each invoice
BALANCE FORWARD BILLING PROCESS BPA PRINT PROGRAM
BPA Print Program:
Can be initiated from Generate Program

Print draft bills Print final bills
Can be used to Reprint
Select specific bill number, batch or customer
BALANCE FORWARD BILLING PROCESS DISABLE PAYMENT TERMS
To bill the existing invoices:

Generate a final balance forward bill that picks up existing transactions Change the payment term on all existing transactions to a nonbalance forward billing payment term
To bill future invoices:

Change the default payment term on the customer account Disable balance forward billing at the site and change the default payment term
BALANCE FORWARD BILLING PROCESS CHANGE PAYMENT TERMS

Change the billing cycle for a customer by changing the payment term on the customer profile Existing transactions with the old payment term, billing date, and due date are picked up on the next bill run
Transactions that do not have activity against them inherit the Payment term, billing date, and due date from the new payment term Transactions that have activity do not inherit the new payment term, billing date, and due date
BALANCE FORWARD BILLING DEPENDENCIES AND INTERACTIONS
Oracle Bill Management

This product provides the user interface and the customer print format for all Balance Forward Bills It also provides the rules engine that determines what print/display format will be used It delivers seeded rules that perform the same as the consolidated billing functionality (summary vs. detail) Users can create new rules and print templates
BALANCE FORWARD BILLING FUNCTIONAL UPGRADE SCRIPT

The
upgrade script runs automatically to update consolidated billing proxima payment terms to billing cycle terms
It creates cycles based on the cut-off dates of existing proxima terms It assigns them to the existing payment terms Balance forward billing payment terms cannot be assigned to Transaction Types and customer Site Uses If a consolidated (proxima) term was assigned at these levels prior to upgrade, the upgrade script will override the assignment with a null value
Enable Balance Forward Billing

Checkbox is enabled at the account and site level for all validated consolidated billing customers If payment term assigned to customer was not updated to billing terms, Enable checkbox is null
Bill Level
Is set to Site level because consolidated billing was only done at the site level. Users must update the customer record after upgrade to create bills at the account level
Type
Not be changed by the script Detail or Summary values used by default print formats Customers with the Type of Imported not be included in the upgrade
Allow Override of Terms

Not changed by the script Causes different functionality if default payment term is overridden on an invoice If checked, payment term other than the default can be assigned to an invoice.
AGENDA
CREDIT CARD CHARGEBACK DESCRIPTION
What is a Credit Card Chargeback?
A credit card chargeback takes place when:

A credit card holder disputes a charge with the credit card company The credit card company issues a chargeback to the customer for the disputed amount The credit card company notifies the vendor that they have issued a chargeback to the customer
CREDIT CARD CHARGEBACK DESCRIPTION

Register that the card issuer has issued the customer a chargeback Vendor Issue chargeback Credit Card Company
Notify vendor that a chargeback has taken place Vendor Request chargeback
Issue chargeback
Customer
Customer Request chargeback
CREDIT CARD CHARGEBACK BENEFITS
Reduce costs by automating the credit card chargeback process
CREDIT CARD CHARGEBACK PROCESS

PROCESS Receive Credit Card Chargeback notification from card issuer Chargeback valid? No, Can prove that the chargeback was invalid Find Receipt Find Receipt Subtract the amount of the credit card chargeback from the application line Generates Apply credit card chargeback activity Negative Misc. Receipt Reverses The Negative Misc. Receipt Yes Create credit memo to credit invoice
Un-apply the credit card chargeback activity
Restore the original amount on the application line
CREDIT CARD CHARGEBACK PROCESS
The process to record a credit card chargeback consists of three steps:

1. Receive Receipt 2. Record Credit Card Chargeback 3. Validate Credit Card Chargeback
acknowledge the credit card chargeback or prove the credit card chargeback to be invalid
CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT

Place order for $100
Customer
Create Invoice
DR Receivables $100 CR Revenue $100
DR Cash CR Unapplied $100 $100
Receive Receipt

Notify receipt of $100

Credit Card Company
Apply to Invoice
DR Unapplied $100 CR Receivables $100
Vendor
CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT

File dispute for $25
Customer
Un-apply the receipt

DR Receivables CR Unapplied $25 $25
Apply the credit card chargeback

DR Unapplied $25 CR Credit Card Chargeback $25 DR Credit Card Chargeback $25 CR Cash $25
Credited $25
Credit Card Company
Misc. receipt is generated

Notify a chargeback of $25

Vendor
CREDIT CARD CHARGEBACK PROCESS RECORD CREDIT CARD CHARGEBACK
Chargeback Process for Vendor:

Find receipt Un-apply the receipt Decrease the value on the receipt application line to $75 Apply $25 to receipt activity Credit Card Chargeback (creates a negative misc. receipt of $25)
1. 2. 3. 4.
CREDIT CARD CHARGEBACK PROCESS VALIDATE CREDIT CARD CHARGEBACK
The vendor can either:
Acknowledge the credit card chargeback or Prove the credit card chargeback to be invalid
Vendor acknowledges the credit card chargeback
Credit the invoice by creating a credit
memo

Vendor
DR Revenue CR Receivables
$25 $25
Vendor proves the chargeback to be invalid

Un-apply the credit card chargeback DR Credit Card Chargeback $25 CR Unapplied $25 Misc. receipt is automatically reversed DR Cash $25 CR Credit Card Chargeback $25 Reapply the receipt DR Unapplied $25 CR Receivables $25
Prove that chargeback was invalid
Vendor
Agree that chargeback was invalid

Credit Card Company
CREDIT CARD CHARGEBACK SETUP

SETUP
Create Receivables Activity of type Credit Card Chargeback
AGENDA
LEGAL ENTITY BACKGROUND

Legal Entity identifies the legal owner of a debt or an asset Oracle Applications did not have an object called Legal Entity in 11i Different representations of Legal Entity throughout Oracle Applications Ambiguous representations left the concept open to misuse and misinterpretation R12.0 Legal Entity solution provides a centralized, secure setup that is used across the E-Business Suite for reporting and other legal compliance
LEGAL ENTITY MODEL

No direct relationship
Bank Account Legal Entity
X
Inv Org
OU
BG
Primary
Inv Org = Inventory Organization OU = Operating Unit BG = Business Group
Ledger
LEGAL ENTITY BACKGROUND

Trading Community Architecture (TCA) is used to model Legal Entities Legal Entities are considered Parties First Party and Third Party Legal Entities are involved in a transaction LE uptake pertains to the First Party Legal Entity only
LEGAL ENTITY DESCRIPTION

Legal Entity information is available in all Receivables Workbenches Receivables stamps each transaction and receipt header with the Legal Entity The user may be required to select or update the Legal Entity assignment Each transaction belongs to only one Legal Entity Assigning Legal Entity to all transactions enables tax calculation, supporting the centralized tax solution
LEGAL ENTITIES AND ACCOUNTING
Legal Accounting Environment Type: Exclusive

Ledger records the accounting for one Legal Entity Ledger mapped to LE
Legal Entity
Ledger
Legal Accounting Environment Type: Shared

Ledger records the accounting for more than one Legal Entity Balancing Segment Values mapped to LE Legal Entity
BSV = Balancing Segment Value

BSV
Ledger
LEGAL ENTITIES AND SHARED ACCOUNTING

LE 1 LE 2
BSV 1 5
LE = Legal Entity BSV = Balancing Segment Value OU = Operating Unit
BSV 6 7
Ledger
OU 1
OU 2
LEGAL ENTITY DESCRIPTION DEFAULTING FOR TRANSACTIONS
Exclusive vs. Shared Accounting Environment:
Exclusive: Single Legal Entity (LE) assigned to Ledger

LE derived from Operating Unit The LE value cannot be updated
Shared: Legal Entities share the same Ledger

Users must set up the hierarchy to derive LE The default LE can be updated by the user
LEGAL ENTITY DESCRIPTION DEFAULTING FOR TRANSACTIONS
Legal Entity derivation hierarchy for transactions

Transaction Type Batch Source
Assigning a Legal Entity to a transaction type or batch source is optional Only the Legal Entity's mapped to the Ledger associated with the OU are available to assign User should chose only one layer in the hierarchy to minimize set up replication
LEGAL ENTITY DESCRIPTION DEFAULTING FOR RECEIPTS

Remittance or Internal Bank Account linked to Legal Entity Bank Account is assigned to Receipt Method Receipt Method is required on all receipts
Legal Entity
Bank Account
Default LE
Receipt Header Receipt Method
LEGAL ENTITY BENEFITS
Effectively supports central initiative for legal compliance and flexible business management
Stamping identifies the owning legal entity on legal documents accounted for in Oracle Applications Tracking data from the legal perspective enables detailed reporting at legal entity, establishment, and registration level Assists with enforcement of tax calculation and reporting for all jurisdictions
Easily manages transactional data by legal entity
Accurately provides tax calculation for legal entity
LEGAL ENTITY SETUP AND AUTOMATED PROCESS

SETUP Update Transaction Type PROCESS AutoInvoice LE Not Passed
Assign LE to invoice line
Update Transaction Batch Source
LE exist on Transaction Type? No
Yes Is LE Valid?
Group lines by LE
Shared Accounting Environment Only
No Yes LE exist on Batch Source?
Create invoice
Generate Error
No User update LE value for lines
Automated process
LEGAL ENTITY SETUP UPDATE TRANSACTION TYPE

Query Transaction Type
Select Legal Entity value
If the type of transaction typically indicates the owner of the transaction, assign the Legal Entity to the transaction type within each organization.
LEGAL ENTITY SETUP UPDATE BATCH SOURCE
Query transaction
Batch Source Select Legal Entity value
If the source of the transaction typically indicates the legal owner of a transaction, then assign the Legal Entity to the batch source within the organization.
LEGAL ENTITY PROCESS - AUTOINVOICE
Importing invoices
AutoInvoice assumes the LE is correct, if it is active If LE is not passed, AutoInvoice attempts to default the LE AutoInvoice Validation report displays Invalid Legal Entity
If Legal Entity is not valid, or If Legal Entity cannot be determined
User corrects errors via the Interface Lines Forms
After Import
If the invoice can be incompleted, you can update the defaulted value in a shared-accounting environments
The invoice must have no activity, not be posted and not printed If System Option Allow Change to Printed Transactions is turned on, Receivables still does not allow changes to LE
If you change the LE value, the eTax engine recalculates tax

Importing
Regular Credit Memos
Credit memo LE should be same as LE of the original invoice If feeder system does not pass LE, AutoInvoice stamps credit memos with same LE of original invoice If LE is inactivated between invoice import and credit memo import, the credit memo is created with the inactive LE You cannot update a system stamped value
Legal
Entity is a new mandatory grouping rule
LEGAL ENTITY SETUP AND MANUAL PROCESS

SETUP
Update Transaction Type
PROCESS
Enter Manual Transaction header Assign LE to invoice Header
Update Transaction Batch Source LE exist Yes on Transaction Type? Shared Accounting Environment Only No LE exist on Batch Source? Automated process No Yes
User continue invoice creation
User assign LE
LEGAL ENTITY PROCESS MANUAL TRANSACTION
If an invoice is created manually, the default hierarchy determines which LE is assigned to a transaction.
If none is found, you must assign one before continuing to create an invoice.
The LE can be changed as long as the invoice is incomplete.
The standard rules for completing an invoice still pertain, except if the invoice has been printed, the LE cannot be changed regardless of the Allow Changes to Printed Invoices System Option.
LEGAL ENTITY PROCESS ON ACCOUNT CREDIT MEMOS

The application of On-Account Credit Memos performs much the same as in 11i Application must be to transactions in the same Operating Unit Application across Legal Entities is allowed as long as all transactions are of the same OU When cross-Legal Entity applications occur, SLA performs inter-company accounting
LEGAL ENTITY PROCESS BILLS RECEIVABLE

Bills Receivables use same logic as transactions for stamping the LE Manual Assignments are limited to transactions that are stamped with the same LE as the BR LE is mandatory selection and batching criteria during Bills Receivable Batching process
If LE on the transactions are different, then multiple BRs are created.
If a BR is exchanged for another BR, they must belong to the same LE
LEGAL ENTITY PROCESS - RECEIPTS

All receipts inherit the LE from Manual, Automatic, Lockbox and

the bank account:

Post Quick Cash
Programs Refunds automatically inherit LE from the original receipt LE is mandatory selection and grouping criteria for transaction during automated receipt batch creation process Receipt application across Legal Entities is allowed if the receipt and transactions are in same OU SLA performs inter-company accounting for cross-LE receipt applications or cross-LE receipt clearing
LEGAL ENTITY PROCESS CLAIM LE DEFAULTING

Legal Entity Bank Account Receipt Method
Non-Invoice Claim Invoice Claim Resolution LE Default Data Flow Invoice Claim
Receipt Header
Receipt Application
IMPLEMENTATION CONSIDERATIONS
Are there business flows in your organization that need a centralized setup to be used across the E-Business Suite for reporting and other legal compliance?
AGENDA
E-BUSINESS TAX
Central application that manages the following for all EBusiness Suite products:
Tax setups Enforcement of tax rules, regulations, and legislation Tax data Tax reporting
Generic integration point for third-party tax products and services (Taxware, Vertex, etc)
RECEIVABLES E-BUSINESS TAX INTEGRATION KEY BENEFITS
Centralized setup, maintenance, and reporting of tax. Centralized control over the applicability of tax and tax rate(s) based on user-defined rules. Rapid adoption of new rates or rules based on changes to local tax laws or rates using centralized setups and included test utilities. Consistent taxation across Oracle products, operations, and business lines. Open interface for integration to Taxware, Vertex, or other vendors and products.
E-BUSINESS SUITE TAX PRIOR TO RELEASE 12

Receivables
Tax Reporting
Payables Other Applications

Tax Tax Reporting
Reporting
Data Repository
Tax Engine
Data Repository Repository
Data
Tax Tax Engine Engine
Tax Partner
Tax Content
Tax Services
E-BUSINESS SUITE TAX INTEGRATION 12.0

E-Business Suite
Transaction Data Transaction Tax Data
Oracle E-Business Tax

Tax Services Request Manager
Content Repository
Services
Tax Content Services Tax Determination Services Tax Administration Services
Record Repository
Partner Tax Content Interface
Partner Tax Services Interface
Tax Partner
Tax Content
Tax Services
ARCHITECTURE OF A TAX LINE IN E-BUSINESS TAX
Tax lines require all of the following:

Tax Regime (UK VAT, US Sales Tax, etc.) Tax (UK VAT, US State Sales Tax, etc.) Tax Status (Standard, Zero Rated, Exempt) Tax Jurisdiction (UK VAT, Quebec PST, etc.) Tax Rate (0%, 5%, 10%, 17.5%, 30%, etc.)
EXAMPLE OF US SALES TAX IN 12.0

Tax Regime Flows Optional Flows
Tax
Tax Jurisdiction
Tax Status
Tax Rate
Operating Unit Tax Accounts
Regime
US Sales Tax US Sales Tax US Sales Tax
Tax
State Sales Tax County Sales Tax City Sales Tax
Jurisdiction
California State Sales Tax San Mateo County Sales Tax Belmont City Sales Tax
Status
Standard
Rate
7.25%
Account
01.005.004.033
Standard
1.0%
01.005.004.033
Standard
0%
01.005.004.033
EXAMPLE OF UK VAT TAX IN 12.0

Operating Unit Tax Accounts Tax Regime Tax Tax Jurisdiction Tax Status Tax Rate Recovery Rate
Flows Optional Flows Regime UK VAT UK VAT UK VAT Tax UK VAT UK VAT UK VAT Jurisdiction UK VAT UK VAT UK VAT Status Standard Reduced Zero Rated Rate 17.5% 8.0% 00% Recovery 100% 100%
UK VAT
UK VAT
UK VAT
Exempt
00%
MIGRATING TAXES FROM 11.5 TO 12.0
Migrated tax setups:

Tax Definition Hierarchy Tax Configuration Ownership AR Tax Defaulting Hierarchy AR Tax Codes/Groups Location Based Tax AR System Options for Tax Tax profiles
Migrated Tax (Transactional) Data

Invoice, Credit memo tax lines Associated adjustments and receipt discounts
MIGRATING OF TAX CODES AND TAX GROUP CODES

Tax Codes AA, BB Tax Rate Codes Output Tax Classification Codes AA, BB, CC
Tax Group Codes CC
AA, BB, CC
Tax Rule
AA, BB, CC
USE OF TAX RATE CODES IN RECEIVABLES
Tax rate codes correspond to 11.5 tax codes

Specific numeric rate Link to GL accounts (within E-Business Tax) Assigned where a numeric rate is required for offline (nonrecoverable) tax calculations Receivable Activities (nonrecoverable adjustments, discounts, misc receipts)
USE OF TAX CLASSIFICATIONS IN RECEIVABLES

Tax

classifications are used to identify specific (legacy) tax calculations

Simple lookup code, contains no tax-specific settings Used to prompt or seed specific tax calculations for transactional data in eBusiness Tax Transaction Lines form Memo Lines setup form Customer (TCA) setup
Tax
classifications are a legacy element they only exist for migrated taxes, not new or pure R12 tax setups.
SETTING UP NEW TAXES IN E-BUSINESS TAX

Tax Configuration tab Tax Manager responsibility New tax definitions include:
Jurisdiction, Regime, Status, Tax, and Tax Rate Tax rules (determine applicability of tax) Tax accounts
Test your setups using the Tax Simulator
SETTING UP NEW TAXES IN E-BUSINESS TAX
Set up on the Tax Configuration form:
Tax Regimes ( UK VAT, US Sales Tax, etc.) Taxes ( UK VAT, US State Sales Tax, etc.) Tax Statuses (Standard, Zero Rated, Exempt, etc.) Tax Jurisdictions (UK VAT, Quebec PST, etc.) Tax Recovery Rates (100%, 50%, etc.) Tax Rates (0%, 5%, 10%, 17.5%, 30%, etc.) Tax Rules (Determine Tax Applicability, Place of Supply, etc.)
RECEIVABLES SPECIFIC TAX SETUPS
Receivables Specific Tax Setups:

System Options Customer Transaction type Receivables activity Standard memo lines
SYSTEM OPTIONS
Most of the tax setups that used to reside on the System Options form have been migrated to the E-Business Tax Product Options form. Options that now appear on the E-Business Tax Product Options form include:
Tax defaults Hierarchy information Rounding information
CUSTOMER TAX
The Tax Profile tab includes Tax setups related to specific customer accounts or sites, including:

Tax rounding Registration Reporting Fiscal classification Customer exemption
TRANSACTION TYPE
The tax classification field on the transaction lines form is now optional When selected, the tax classification is defaulted on each transaction line based on the migrated tax hierarchy The requirement for tax lines on the transaction is now monitored by E-Business Tax so transactions without tax lines will no longer raise errors when saved or completed
RECEIVABLES ACTIVITY
Receivables Activities form
The Tax Code on the previous versions of this form was replaced with Tax Rate Code
The numeric rate associated with this tax rate is used to calculate non-recoverable taxes internally within Receivables.
New multi-line area on the form where you can associate the correct tax rates for each supported Legal Entity
ADJUSTMENTS, RECEIPT DISCOUNTS, AND RECOVERABLE TAX
Adjustments and Receipt Discounts are recoverable when the receivable activity contains the following:
Tax code source = Invoice Recoverable checked
When an adjustment or discount is recoverable, Receivables calls E-Business Tax to:

Prorate the activity between tax and lines Record the activity in the tax repository
This means that recoverable activities decrease your tax liability. Non-recoverable activities are not reflected in the tax repository or your tax reporting.
STANDARD MEMO LINES
Standard Memo Lines Form:
Tax code is now Tax Classification
May be defaulted on transaction lines based on your tax defaulting hierarchy
New Tax Product Category field

Defaulted on your transaction lines and passed to E-Business Tax during tax calculations Used to determine the correct taxes to apply and tax amounts due
LEGAL ENTITY AND SHIP TO
Legal Entity is required on all transactions and receipts

Defaulted from transaction type, batch source, organization Credit memos default legal entity from target transaction Adjustments assume legal entity from target transactions Receipts default legal entity from remittance bank account
Ship to customer and address information can now be recorded at the line-level
Ship to is now an optional grouping rule for transactions A transaction can have multiple ship-to addresses
TRANSACTIONS AND MIGRATED TAXES
No change to taxes migrated from previous releases

Same rate as previously defined (now a tax rate code) Same tax accounts (migrated to E-Business Tax) Tax classification defaults on each line using hierarchy User can specify tax classification manually for each line Resulting tax calculation will be identical to pre-12.0
Note: Tax calculation only occurs for migrated taxes if the output tax classification is present on the invoice line.
TRANSACTIONS AND MIGRATED TAXES: KEY DIFFERENCES

Transaction type no longer enforces existence of tax lines on your transactions Presence or absence of tax classification does not dictate tax calculations The ability to enter manual tax lines or modify existing tax lines now controlled by E-Business Tax Credit Memos always use E-Business Tax for tax calculations
TRANSACTIONS AND NEW TAXES
New taxes are calculated based on:
Applicability (tax rules) defined in E-Business Tax Content of the transaction in Receivables
NOTE: Tax classification is not required or used for non-migrated taxes
Calculation is entirely hands-free
TRANSACTIONS AND MANUAL TAXES

Tax
Lines Form:
Can be displayed from either the transaction header or transaction lines forms Use to:
Enter a manual tax line Override an existing tax line
Manual tax lines now require the following information:

Regime Tax Jurisdiction Status Rate
E-Business Tax was designed around a robust and flexible rule-based applicability feature. When properly configured, the E-Business Tax engine should be able to determine the correct taxes based on customer, location, item, or any combination of dozens of other transaction attributes. The decision for the applicability of any given tax should made during setup and testing, not during transaction entry.
AGENDA
SUBLEDGER ACCOUNTING OVERVIEW

Rule-based accounting engine, toolset & repository Allows multiple accounting representations for a single business event Common data model and UI across subledgers Supports all 11i functionality
SUBLEDGER ACCOUNTING BENEFITS

Enable compliance with multiple legislative, industry or geography requirements concurrently in a single instance through configurable rules Increase transparency and enable full audit of the transaction and accounting data through the new data model Improve accounting reconciliation
SUBLEDGER ACCOUNTING IN RECEIVABLES OVERVIEW

Receivables predefines setup data to maintain R11i functionality Default accounting that Auto Accounting creates is interim accounting only. You must refer to SLA for your accounting entries
Receivables distribution is no longer your accounting. It is used as a source for predefined accounting derivation rule
SLA creates accounting and SLA transfers accounting entries to GL

Obsolete: General Ledger Interface concurrent program Obsolete: CCID Corrections Form New: Submit Accounting concurrent program
SUBLEDGER ACCOUNTING IN RECEIVABLES BENEFITS
Multiple accounting representations

Legal and Management reporting Accrual and Cash Basis accounting Multi-Fund Receivables accounting
Infrastructure to support new feature:
Line Level Cash Application
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS SUBMIT ACCOUNTING PROGRAM
Submit Accounting Program:
Receivables concurrent program to create accounting entries in SLA When you run Submit Accounting, the Revenue Recognition program is automatically run before creating accounting entries in SLA You can choose to create draft accounting or final accounting.
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS CREATE/VIEW ACCOUNTING
You can create and view accounting entries from Receivables transactions and receipts workbenches
To create accounting for transactions, run the Submit Accounting concurrent program To create accounting online go to Tools>Create Accounting on the transactions workbench or receipt workbench. To view accounting entries for a transaction, bring up the transaction, and then go to Tools>View Accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS ONLINE CREATE ACCOUNTING
Create Accounting form options:

Create Final Accounting Post to GL Create Final Accounting Create Draft Accounting
You can view draft accounting, which gives you the flexibility to make changes before creating final accounting. To view the accounting entries, bring up the transaction, and then go to Tools>View Accounting Refer to SLA documentation for detailed information on the Create Accounting parameters
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP
No AR specific setup is required to continue using 11i functionality

Receivables has predefined the setup Resultant accounting is the same as in R11i The next few slides describe AR predefined setup
To define your own SLA setup, please refer to SLA documentation
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP LEDGERS AND SLAMS

Ledger
Assigned to
Subledger Accounting Method

Assigned to
Application Accounting Definition

Assigned to Event Class & Type
Journal Lines Definitions

Assigned to
Journal Line Type
Line Description
Account Derivation Rules
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP SOURCES FOR ACCOUNTING DEFINITIONS

Invoice Event Class
Entered Amount
Operating Unit
Customer Name
Tax Code Salesperson
Transaction Type Revenue Account PO Number Item Currency
Invoice Number
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP PREDEFINED EVENT CLASSES/TYPES

Event Class*
Invoice Update Create Credit Memo Update Create Receipt Update Reverse
Event Types
Create
*Event Class = Receivables Document
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP AR PREDEFINED EVENT CLASSES/TYPES

Event Class Adjustments Bills Receivable Chargeback Event Journal Definition Assignment Type All All All Adjustments Default Accrual Bills Receivables Default Accrual Chargeback Default Accrual
Credit Memo
Debit Memo Deposit Memo Guarantee Invoices Misc Receipt Receipt
All
All All All All All All
Credit Memo Default Accrual

Debit Memo Default Accrual Deposit Memo Default Accrual Guarantee Default Accrual Invoices Default Accrual Misc Receipt Default Accrual Receipt Default Accrual
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ANATOMY OF A JOURNAL ENTRY

Subledger Accounting Entry
Date: 10-Jan-2002 Description: Domestic invoice number A4576, issued Jan 5th 2002
Line Type Receivable Revenue Tax
Account 01.1210.000 01.4110.000 01.5350.000
Description Paco Terremoto S.A. Widgets X-123 Domestic input VAT
Debit Credit 5,600 5,000 600
Journal Line Types
Account Derivation Rules
Descriptions
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP JOURNAL LINE TYPES
Journal Line Types Setup:

The Side field determines how Receivables will account for the Line Type The Switch Debit/Credit field determines how negative amounts will be handled Note that Transfer to GL is done in Summary
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ACCOUNT DERIVATION RULE
Account Derivation Rules Setup:
Account Derivation Rules determine which account to use for the Journal Line Type for a particular transaction You can define your own:
Subledger accounting methods Application Accounting Definitions Journal Line Definitions Journal Line Types Line Descriptions Account Derivation Rules
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP JOURNAL LINE DEFINITION OF INVOICES
The Journal Line Definition is comprised of:
Journal Line Types (JLT) Line Descriptions Account Derivation Rules (ADR)
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ASSIGNING THE JLD TO THE AAD
Application Accounting Definitions Form
Journal Line Definitions (JLD) are assigned to the Application Accounting Definition per Event Class or Event Type Journal Line Definitions must be validated to enable accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ASSIGNING THE AAD TO THE SLAM
Subledger Accounting Methods Form
Application Accounting Definitions (AAD) are assigned to Subledger Accounting Methods
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ASSIGNING THE SLAM TO THE LEDGER
The subledger accounting method is defined and shipped by Oracle.

This is indicated by the subledger accounting owner field which shows Oracle. User defined subledger accounting methods show the user in the subledger accounting owner field.
There is a 1:1 relationship between a ledger and a SLAM. The Use Cash Basis Accounting flag should be disabled when using an accrual SLAM
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP PREDEFINED SLAMS
Standard Accrual
Application Accounting Definition Name: Receivables Default Accrual

Application Accounting Definition Name: Receivables Default Cash Basis Accounting Definition Application Accounting Definition Name: Multi-Fund Account Receivables Accrual - Balancing Method
Standard Cash
US Federal Accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS INVOICE ACCOUNTING

Item 1 Tax Freight Item 2 Tax Total $100 $ 10 $ 30 $200 $ 20 $360
11i Accounting DR Receivables $360 CR Revenue CR Revenue CR Tax CR Tax CR Freight $100 $200 $ 10 $ 20 $ 30
R12 AR Default Accounting DR Receivables $360 CR Revenue CR Revenue CR Tax CR Tax CR Freight $100 $200 $ 10 $ 20 $ 30
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS MULTI-FUND RECEIVABLES ACCOUNTING

Item 1 Tax Freight Item 2 Tax Total $100 $ 10 $ 30 $200 $ 20 $360
R12 AR Default Accounting DR DR DR DR DR Receivables $100 Receivables $200 Receivables $ 10 Receivables $ 20 Receivables $ 30 CR Revenue CR Revenue CR Tax CR Tax CR Freight
$100 $200 $ 10 $ 20 $ 30
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS ADJUSTMENT ACCOUNTING

$60 LINE* Adjustment
11i Adjustment Accounting DR Write Off $ 60 CR Receivables $ 60
R12 Default Accounting DR Write Off $ 20 DR Write Off $ 40 CR Receivables $ 20 CR Receivables $ 40
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING

$150 Receipt Application
Default Accrual Accounting

11i Receipt Accounting
DR Unapp $150 $150 R12 Default Receipt Accounting DR Unapp CR CR CR CR CR CR CR $ 150 Receivables $ 50 Receivables $100 Receivables $ 5 Receivables $ 10 Receivables $ 15 Receivables -$ 10 * Receivables -$ 20 *
CR Receivables
SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING

$150 Receipt Application*
Default Cash Basis Accounting

11i CASH BASIS
DR Unapp CR CR CR CR CR CR CR $150 Revenue $ 50 Revenue $100 Tax $ 5 Tax $ 10 Freight $ 15 Adjustment -$ 10 Adjustment -$ 20
R12 CASH BASIS

DR Unapp CR CR CR CR CR CR CR $ 150 Revenue $ 50 Revenue $100 Tax $ 5 Tax $ 10 Freight $ 15 Adjustment -$ 10 Adjustment -$ 20
Accounting Configurations Transactions
Subledger Journal Entries

Accounting Program GL Journal Entries and Balances Subledger Balances Journal Entry Setup
Accounting Events
Receivables
SLA
AGENDA
OBSOLESCENCE AND REPLACEMENT OF FEATURES DESCRIPTION
Receivables Collections Workbench

Oracle Advanced Collections replaces the existing workbench Work is pushed to the user Users work primarily within one main screen The Account Details and Activities forms are still available for research by non-collector personnel
Bills of Exchange
Bills of exchange are financial instruments used primarily outside of the USA Bills of exchange were originally implemented as a type of receipt The Bills Receivable feature replaces the bills of exchange functionality creating unique documents Bills Receivable has its own workbench
Trade Accounting
Provided a way to handle customer deductions and overpayments Replaced by Deductions Management, using Trade Accounting and Credit Management
Tax Setup and Reporting
Receivables tax reports and setup are replaced with equivalent functionality in Oracle E-Business Tax
CCID Correction Form

Provided a way to update invalid accounting before importing into General Ledger Centralized Sub-Ledger Accounting draft accounting can be corrected prior to interfacing with General Ledger, replacing need for the corrections form
COGS and Revenue Matching Report

Report compared Revenue to potential COGS Replaced by COGS and Revenue Matching feature
AR Customer Supplier Netting Report

Report listed Payables and Receivables by customer Replaced by AP/AR Netting feature
On Account Credit Memo Refund

Manually initiate refund from On Account credit memo Functionality enhanced with direct integration to Oracle Payables
Consolidated Billing
Consolidated customer invoices into one monthly bill Replaced by more flexible Balance Forward Billing feature
Customer Standard User Interface Redesign
Redesigned as an HTML-based user interface Provides a more streamlined and intuitive customer data management flow Customer data entry is coupled with data quality management tools to maintain the integrity of customer data
Late Charges functionality
Enables you to create standard late charge policies that can be assigned to customer accounts or account sites Flexible policy configurations include:
Multiple interest calculation formulas Transaction and account balance thresholds Currency-level rate setups
OBSOLESCENCE AND REPLACEMENT OF FEATURES BENEFITS

Improve functionality by aligning with mandated or generally accepted business practices Reduce maintenance by providing centralized functionality Increase user productivity and effectiveness with more automation, easier navigation and extended functionality
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH
What changed:
Forms removed or modified in Receivables Reports retired or modified in Receivables
Required steps:
Setup Oracle Advanced Collections Migrating to Oracle Advanced Collections: An Overview for Oracle Receivables Users white paper
For more information:
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH - MENU AND FORMS
Items removed (menu and forms):

Account Overview Aging Correspondence Customer Accounts Customer Calls Scheduler
Replaced with: Collectors Work Queue Collections Search
Items changed (menu and program):

Account Details modified as research tool for non-collections users Dunning Letters program is now Historical Dunning Letters only
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH ACCOUNT DETAILS
Account Details:
Still exist in R12 to provide non-collector users the ability to perform research. Are available directly from the Navigator, and can be used for either transactions or receipts as it is today. Are still available from the transactions workbench when you select Installments from the Tools/Action menu
The Account Details form has been modified to remove references to Dunning, and Call functionality. Dunning creation and history, and Call functionality are now available in Advanced Collections.
TRANSITION TO NEW FEATURES COLLECTIONS WORKBENCH - DUNNING REPRINT

Dunning Reprint allows printing of Historical Days Overdue type dunning letters in the event of foreclosure or other legal issues. The Program is called Dunning Letter Reprint-Historical Receivables Only Items changed:
Program name: Dunning Letter Reprint-Historical Receivables Only Output: Historical Receivables Days Overdue Dunning letters
TRANSITION TO NEW FEATURES BILLS RECEIVABLE
What Changed:
The System Option to enable Bills Receivable is removed, Bills Receivable is automatically enabled
Required Steps
Setup for Bills Receivable If you have transitioned to Bills Receivable prior to upgrading, no action is required
If you plan to transition to Bills Receivable before or after the upgrade, review the white paper: Oracle Receivables Bills of Exchange Obsolescence
TRANSITION TO NEW FEATURES TRADE ACCOUNTING
What Changed:
System Option to Enable Trade Accounting is removed Deductions Management will automatically be enabled if you setup Trade Management
Required steps:
If you upgraded to Deductions Management solution prior to R12.0, no actions are required Setup Oracle Trade Management and Credit Management
E-Business Suite Solutions for Deduction Management, An Oracle White Paper Release 11i.10
TRANSITION TO NEW FEATURES CUSTOMER STANDARD FORM
What changed:
Old Standard customer forms replaced by HTML UI Updates to Customer Profile Class form
Required steps:
No actions required
TRANSITION TO NEW FEATURES TAX SETUP AND CALCULATION
What changed:
Tax reports retired Tax setup removed from AR Oracle E-Business Tax provides all setup and calculation functionality for tax
TRANSITION TO NEW FEATURES TAX REPORTING
No longer in Receivables: Tax Code Listing Tax Exceptions Listing Tax Exempt Customer report Tax Exempt Product Report Tax Group Listing Report Sales Tax Listing Sales Tax Rate Interface TAX: Setup Verification Report Tax Partner: AR Effective Tax Rate Update
Supported in E-Business Tax: Financial Tax Register Tax Received Report Tax Reconciliation Report Tax Register Tax-only: open invoices report US Sales Tax report for tax partners
TRANSITION TO NEW FEATURES SUBLEDGER ACCOUNTING
What changed:
SLA draft Accounting provides a draft view of accounting prior to posting Changes can be made to accounting setup, negating need for CCID Corrections form
Required steps:
No action required if AutoAccounting is adequate setup SLA if you need more robust account creation functionality than AutoAccounting
TRANSITION TO NEW FEATURES COGS AND REVENUE MATCHING
What changed:
Report removed Revenue Recognition triggers COGS recognition via API called by Costing product
Required steps:
No action required in Receivables
TRANSITION TO NEW FEATURES AR CUSTOMER SUPPLIER NETTING
What changed:
AR Customer Supplier Netting Report retired Replaced by centralized, automated netting feature
Required steps:
Setup AP/AR Netting
TRANSITION TO NEW FEATURES ON ACCOUNT CREDIT MEMO REFUND
What changed:
Refund no longer creates miscellaneous receipt Interface to Payables via Oracle Payments will create refund automatically
Required steps:
Setup refund Receivables Activity in AR Oracle Payments Setup
TRANSITION TO NEW FEATURES CONSOLIDATED BILLING
What changed:
Consolidated Billing creation and print programs retired New Balance Forward Billing feature
Required steps:
No Action required for existing consolidated billing Define Balance Forward Billing Cycles Assign Billing Cycle to Payment Terms
AGENDA
CENTRALIZED PAYMENT PROCESS DESCRIPTION

Common Engine for Payment Transactions
Oracle Payables Oracle Receivables Oracle Order Management Other Oracle Modules Financial Institutions Credit Card Processors
Oracle Payments

Leverages Oracle Payments Funds Capture Oracle Payments stores external bank accounts and payment information Centralized data encryption Centralized processing for automatic payment method

R12 New prompt: Receipt Method
AR Payment Method is renamed to Receipt Method
Receivables UI modified for payment attributes:

Transactions Workbench Receipts Workbench Receipt Classes Setup forms Funds Transfer Error Handling Form Bills Receivables New Payment Details tab on Customer Standard form
CENTRALIZED PAYMENT PROCESS SETUP AND PROCESS

SETUP
Configure Funds Capture Processing (Oracle Payments)
PROCESS
Method of creation: Auto Invoice Invoice API Transaction Workbench Method of creation: Automatic Receipt Receipts API Prepayment API Receipt Workbench Oracle Payments performs: (1) Funds capture or (2) Remittance file creation
Create Invoice
Create receipt classes and receipt methods (Oracle Receivables)

Create Receipt
Assign receipt methods and instruments to customer site or account (Oracle Receivables)
Remittance Processing
Automated process
CENTRALIZED PAYMENT PROCESS SETUP CREATE RECEIPT CLASS/METHOD
Create automatic receipt method:
1. Enter Automatic for Creation Method

When a Creation Method of Automatic is selected

A Remittance Method = No Remittance is not allowed The only values available for the Remittance Method are Standard, Factoring, and Standard and Factoring
2. Enter Payment Method for funds transfer processing
Note that this payment method has been defined in Oracle Payments. Changes:

Receipt Method was previously called Payment Method Payment Method under Funds Transfer Processing region was previously called Payment Type
CENTRALIZED PAYMENT PROCESS PROCESS INVOICE PAYMENT

When you create an invoice, payment details are defaulted from the customer setup You may overwrite the information. Select Instrument button invokes a new window in which you can either:
Select from an existing list of instrument numbers Create a new instrument number
CENTRALIZED PAYMENT PROCESS ERROR HANDLING
The Correct Funds Transfer Error form is used for:
Credit Card and Bank Account Transfer errors Error Handling for automatic payments
CENTRALIZED PAYMENT PROCESS SETUP CUSTOMERS PAYMENT DETAILS
Use the Payments tab to:
Assign primary Receipt Method for the customer Zoom in to Payment Instruments to view existing instruments such as:
Credit card Bank transfer accounts
Zoom in to Payment Instruments to create new payment instruments
Oracle Payments
New data model for customer accounts New data model for payment information Transaction Payment-Extension entity UI components
Upstream products
Interface key reference to transaction payment-extension entity
AGENDA
AUTOMATED REFUNDS DESCRIPTION

Automate refund process for non-credit card transactions Leverage AP workflow approval AP transacts refunds via Oracle Payments
AUTOMATED REFUNDS SETUP AND PROCESS

SETUP PROCESS
Create credit memo (Auto Invoice) Request Refund Process Oracle Payables Setup Transaction Source: Receipt Handling for Credits Refunds or On Account? Refund Workflow approval process Workflow remittance process
Setup Receivables Activity for Refund
On account Create on account credit
Fund Disbursement (Oracle Payments)

Automated process
AUTOMATED REFUNDS SETUP RECEIVABLES ACTIVITY

Refund activity type is applicable for automated non-credit card refunds You must create a Receivables Activity with this Refund type to process your automated AP refund. Credit Card Refund activity type is still available for credit card refund only.
AUTOMATED REFUNDS SETUP TRANSACTION SOURCES
Set Receipt Handling for Credits to Refund in your transaction source
Applicable for both automated credit card refunds and automated AP (non-credit card) refunds
For credit card transactions, Receivables submit the refund request to Oracle Payments directly For non-credit card transactions, Receivables submits the refund request to AP, which in turn submits the request to Oracle Payments Credit Card Refund has been replaced with Refund for Receipt Handling for Credits
AUTOMATED REFUNDS SETUP TRANSACTION SOURCES
No user interaction is needed.

Create credit memos via Auto Invoice Refunds are automated View refund status in AP workbench
AUTOMATED REFUNDS PROCESS APPLICATIONS FORM

To create manual refund, apply the receipt to Refund For Refund application, the button Refund Attributes is enabled
Click on this button to view and update your refund attributes
AUTOMATED REFUNDS PROCESS NEW REFUND ATTRIBUTES FORM
Refund Attributes:
Customer Name Default Customer Number Refund Payment Method Customer Address Party Bank Account Delivery Channel Pay Alone Remittance Message 1,2,3
AUTOMATED REFUNDS PROCESS VIEW REFUND STATUS

Use Refund Status to view the refund status in AP Refund status is not applicable for credit card refund
Oracle Payables
Automated refund for non-credit card transactions
AGENDA
AP/AR NETTING DESCRIPTION

AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices A receivables user can
View netted receipt details directly from the receipt Create Netting Agreements and Netting Batches
The AR Customer Supplier Netting Report has been retired
AP/AR NETTING BENEFITS
Increase user productivity and effectiveness with more automation and integration
AP/AR NETTING PROCESS ACCESS
You can now access forms for creating and updating:
Netting Batches Netting Agreements
AP/AR NETTING PROCESS ACCESSING

After Querying a netted receipt, you can view details about the batch by selecting AP/AR Netting from the Action menu Netted Receipts are created automatically by the AP/AR Netting process You cannot update Netted Receipts from the Receipts Workbench
AGENDA
DAILY REVENUE DESCRIPTION

Daily Revenue enables accurate revenue distribution over all accounting periods, including full and partial periods It fulfills stringent accounting standards introduced by the US GAAP and SOX for recognizing revenue

Example of a contract that spans from Jan 14th, 2006 through Apr 13th, 2006. We assume the accounting period defined is Monthly. This contract spans across 4 accounting monthly periods as illustrated below: Jan Feb Mar Apr |------|----------|------------|------| 1/14 2/1 3/1 4/1 4/13
January and April are partial periods February and March are full periods

Revenue accuracy is to the number of days in the accounting period. Formula to calculate Daily Revenue Rate:
Daily Rate =
Total Revenue Total Number of Days (for the entire duration)
Example:
Contract valid from 14-Jan-2006 to 13-Apr-2006 (90 days total) Assume total revenue is $900 Daily Rate = $900/90days = $10/day Revenue amount per accounting period is based on Daily Revenue Rate

R11i vs. R12 revenue distributions
Example: 6 months service (17-Apr-2006 to 16-Oct-2006) at $600 total. Calculated daily revenue rate: 600/183 = 3.28 GL Date Revenue Period R11i Revenue R12 Daily Rev. All Periods R12 Daily Rev. Partial Periods # of Days
Apr 17
May 17 June 17
Month of Apr
Month of May Month of Jun
100
100 100
45.91
101.64 98.36
45.91
100.33 100.33
14
31 30
July 17
Aug 17 Sept 17
Month of July
Month of Aug Month of Sept
100
100 100
101.64
101.64 98.36
100.33
100.33 100.33
31
31 30
Oct 16
Month of Oct
----600
52.45
600
52.44
600
16
183
DAILY REVENUE SETUP AND PROCESS

SETUP
Create accounting rule with Daily Revenue type
PROCESS
Create accounting
Create an invoice line With accounting rule. (manual or imported)
View accounting
Is it No daily revenue rule?

Yes Enter Rule End Date
Adjust accounting
Post accounting
Automated process
DAILY REVENUE SETUP ACCOUNTING RULES
Two new accounting rule types have been added for Daily Revenue:
Daily Revenue Rate, All Periods. For this type, all periods use daily revenue rate. Daily Revenue Rate, Partial Periods. For this type, partial periods use daily revenue rate, full periods are prorated.
Two existing accounting rule types have been renamed:

Fixed Schedule (Previously named Fixed Duration) Variable Schedule (Previously named Variable Duration)
DAILY REVENUE PROCESS CREATE INVOICE LINE
Invoice line can be created via:

Auto Invoice or Invoice API Transactions Workbench
For the Daily Revenue rule, you must enter a Rule End Date The Rule End Date must be on or after Rule Start Date

General Ledger
Define accounting periods in General Ledger
Order Management, and Service Contracts

Interface invoice lines to Receivables Default or assign Daily Revenue accounting rules onto sales order lines or service lines
AGENDA
REVENUE CONTINGENCIES OVERVIEW
US GAAP and SOX compliance for revenue recognition User definable revenue contingencies User definable assignment rules Enhanced RAM wizard or Revenue Adjustment API Increase security with restricted access
REVENUE CONTINGENCIES DESCRIPTION

Automatically time revenue recognition in accordance with the removal of Revenue Contingencies as required by US GAAP and IAS Enhancements to Event Based Revenue Management functionality
Enabled for imported and manual transactions User definable contingencies. New UI in Receivables. User definable defaulting rules for contingencies assignment
Support for parent-child (e.g. Product and Service) relationship.
REVENUE CONTINGENCIES DESCRIPTION

Pre-billing Customer Acceptance is supported by Order Management, Service Contracts and Receivables Manage contingencies or revenue using Revenue Accounting Module (RAM) wizard and API Revenue Managers Responsibility restricted access
REVENUE CONTINGENCIES SETUP AND PROCESS

SETUP
Define policy threshold
PROCESS Assign Contingencies

Create invoice line
Evaluate assignment rules

Assign contingencies if criteria is met Defer Revenue if contingencies exist
Define contingencies
Define defaulting rules
Is the revenue policy met?

No
Yes
Recognize Revenue
Run Revenue Contingency Analyzer to detect expired contingencies Recognize revenue or continue deferring revenue
Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies

Automated process
REVENUE CONTINGENCIES SETUP POLICY THRESHOLD
On the Revenue Policy form, you must setup a policy for each operating unit:
Select an Operating Unit Enter customer credit classifications Enter your company policy threshold
REVENUE CONTINGENCIES SETUP SEEDED CONTINGENCIES
Receivables seeds the contingencies

You cannot update or delete seeded contingencies. You can duplicate the contingencies and modify the copy as needed, or you can create new contingencies
Receivables also seeds removal events

You cannot delete, modify or create removal events Removal events available are: Contingency Expiration, Customer Acceptance, Invoicing, Payment, and Proof of Delivery
REVENUE CONTINGENCIES SETUP CONTINGENCY CODES/ID

R11i
Contingency Code
AR_ACCEPTANCE AR_CUSTOMER_CREDIT AR_COLLECTIBILITY AR_PAYMENT_TERM AR_CANCELLATION AR_FISCAL_FUNDING AR_REFUND AR_FORFEITURE OKL_COLLECTIBILITY LNS_IMPAIRED_LOAN
mapped to ID
2 3
R12
Contingency Name
Explicit Acceptance Customer Creditworthiness
4
5 7 8 9 10 12 13
Doubtful Collectibility
Extended Payment Term Cancellation Fiscal Funding Clause Refund Forfeitures Leasing Doubtful Collectibility Impaired Loans
REVENUE CONTINGENCIES SETUP CREATE RULES

Define your assignment rules to meet your business needs Receivables does not seed any rule for revenue contingency You must set up all rules using any of the seeded matching criteria attributes
REVENUE CONTINGENCIES PROCESS CONTINGENCY ASSIGNMENT

PROCESS Assign Contingencies Create invoice line Assign contingencies if criteria is met Is the revenue policy met? No Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies Defer Revenue if contingencies exist Recognize Revenue Run Revenue Analyzer to detect expired contingencies Evaluate assignment rules
Feeder Systems such as Order Management and Service Contracts
Yes
Manual Transactions
Automated process
Recognize revenue or continue deferring revenue
REVENUE CONTINGENCY PROCESS MANAGE CONTINGENCIES

The Revenue Accounting form is used to manage your revenue To view your contingencies, go to Line Revenue Contingencies region To expire or remove a contingency, set the Estimated Expiration Date to todays date. You cannot:
Add a new contingency Update contingency name
Auto Invoice and Invoice API

You may interface contingencies Auto Invoice or Invoice API default contingencies
Manual transactions
Receivables defaults contingencies Support Pre-billing Acceptance
Order Management, and Service Contracts
AGENDA
COGS AND REVENUE MATCHING DESCRIPTION

Ensures that COGS and Revenue recognition occur in the same accounting period Developed by Costing, Order Management and Receivables. This TOI covers the Receivables part Receivables provides the ratio between earned and unearned revenue to Costing Obsolescence of Receivables COGS and Revenue Matching report. For complete information on this feature, please refer to Costing and Order Management documentation.
COGS AND REVENUE MATCHING BENEFITS

Automate the synchronization of the Revenue and COGS recognition Obsolescence of Receivables COGS and Revenue Matching report
COGS AND REVENUE MATCHING PROCESS COGS RECOGNITION
No user interaction is needed in AR.
Cost Management
Performs COGS recognition (or Cost Accounting) Integrates with Receivables for revenue information
Order Management
Provides order and return information to Costing Integrates with Receivables for invoice creation Notifies Costing when an order is closed without billing
AGENDA
MULTI-ORG ACCESS CONTROL DESCRIPTION
Belgium OU
EMEA-1 Responsibility
Holland OU
Denmark OU
Perform tasks for multiple operating units without changing responsibilities
MULTI-ORG ACCESS CONTROL BENEFITS
Improve efficiency
Easily access transactions from different operating units Improve Shared Services operations
Provide more information for decision making
Global consolidated view of transactions across operating units Cut down processing time
Reduce Costs
RECEIVABLES & MULTI-ORG ACCESS CONTROL
The Operating Unit field:
Is mandatory Defaults from the value that has been set for profile MO: Default Operating Unit Is attached to a list of values that lists all operating units that you have access to
Is not used with:

Payment terms Aging bucket forms

Multi-Org Access Control functionality is also available on Transactions and Bills Receivables forms Sources are defined per operating unit The list of values for Source shows all Sources for the operating units that exist for the user session

Multi-Org Access Control functionality is also available on the Receipts form. Receipt Methods have remittance banks, which are defined per operating unit
The list of values for Receipt Method shows all Receipt Methods that have banks in the operating units that exist for the user session
MULTI-ORG ACCESS CONTROL PROCESS
You can submit Concurrent requests for all operating units in the user session or for a specific operating unit that you select. You can select the operating unit from a list of values that lists all the Operating Units to which you have access. Many concurrent processes can run for all operating units in your security profile, including:
Auto Invoice Auto Receipt Creation Statements Revenue Contingency
MULTI-ORG ACCESS CONTROL REPORTING

All reports can be submitted for just one operating unit Cross organization accounting reports can still be submitted for a whole ledger
These reports now run for all operating units to which you have access when the reporting level is set to Ledger
MULTI-ORG ACCESS CONTROL REPORTING PROCESS

Submit reports The reports that can run for all operating units in the users security profile are listed in the notes for this slide.

Oracle Receivables R12

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Oracle Receivables R12

Caricato da

Copyright:

Formati disponibili

ORACLE RECEIVABLES

Release 12 Upgrade Considerations

NEW AND CHANGED FEATURES FOR BALANCE FORWARD BILLING

BALANCE FORWARD BILLING DESCRIPTION

Generate bills based on new Billing Cycles

Consolidate billing activity at the level of customer Account or Site

BALANCE FORWARD BILLING DESCRIPTION

Enhanced viewing and printing

Streamline processing with fewer programs to run and maintain

Three programs compared to five used by consolidated billing feature

BALANCE FORWARD BILLING BENEFITS

Clearer communication with the customer

Improved accuracy of Aging

BALANCE FORWARD BILLING SETUP AND PROCESS

Run Generate Balance Forward Bill Program

Run Confirm Balance Forward Bills Program

BALANCE FORWARD BILLING SETUP DEFINE BILLING CYCLE

When setting up Balance Forward Billing:

BALANCE FORWARD BILLING SETUP DEFINE BILLING CYCLE

When setting up Monthly Balance Forward Billing Cycles:

BALANCE FORWARD BILLING SETUP DEFINE PAYMENT TERM

BALANCE FORWARD BILLING SETUP CUSTOMER PROFILE CLASS

The Profile Class tab includes:

BALANCE FORWARD BILLING SETUP ACCOUNT & SITE PROFILE

BALANCE FORWARD BILLING SETUP ACCOUNT LEVEL BILL EXAMPLE

BALANCE FORWARD BILLING SETUP SITE LEVEL BILL EXAMPLE

ORACLE BPA RULES SETUP

BALANCE FORWARD BILLING PROCESS ENTER TRANSACTION

Payment Term defaults:

BALANCE FORWARD BILLING PROCESS IMPORTED TRANSACTIONS

AutoInvoice derives the billing date

Transaction API derives the billing date

Billing Date value is mandatory if cycle = External

BALANCE FORWARD BILLING PROCESS CREATING BILLS

Generate Balance Forward Bills program

Confirm Balance Forward Bill program

BPA Balance Forward Print Program

Replaces Reprint Consolidated Billing Invoices

BALANCE FORWARD BILLING PROCESS GENERATING BILL LOGIC

BALANCE FORWARD BILLING USE CASES

1 bill generated for Jan 10, 2005

No bill generated Run date must be Jan 10, 2005 or later

BALANCE FORWARD BILLING PROCESS GENERATE BILL PROGRAM

Generate Balance Forward Bills Program Parameters:

Choose Print Option

Specify Billing Cycle

This limits customer and available payment terms to chose from

BALANCE FORWARD BILLING PROCESS CONFIRM BILL

Program Parameters for confirming a bill include:

Use other parameters to limit the bills affected

SUMMARY BALANCE FORWARD BILL EXAMPLE

DETAIL BALANCE FORWARD BILL

All lines for each invoice

BALANCE FORWARD BILLING PROCESS BPA PRINT PROGRAM

BPA Print Program:

Can be initiated from Generate Program

Can be used to Reprint

Select specific bill number, batch or customer

BALANCE FORWARD BILLING PROCESS DISABLE PAYMENT TERMS

To bill the existing invoices:

To bill future invoices:

BALANCE FORWARD BILLING PROCESS CHANGE PAYMENT TERMS

BALANCE FORWARD BILLING DEPENDENCIES AND INTERACTIONS

Oracle Bill Management