oracle fusion applications financials implementation guide ii

7/26/2019 Oracle Fusion Applications Financials Implementation Guide II

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21 Defne Common Accounts ReceivableConfguration

This chapter contains the following:

Simple Conguration to Operate Receivables: ExplainedNotes apping for Receivables: Explained!ene Receivables "ctivities!ene "utoCash Rule Sets!ene "pproval #imits$"%s for !istribution Sets

Simple Confguration to Operate Receivables:Explained

&ou can create an operational Oracle $usion Receivables environment withseven congurations' The remaining congurations are either optional orhave predened values'

(f applicable) *our Receivables conguration must include a plan to migrate*our customer information from *our legac* s*stem'

Receivables Confguration Tass

There are seven conguration tas+s necessar* to create an operationalReceivables environment' ,efore *ou perform these tas+s) *ou must ensurethat *ou have completed all of the re-uired implementation tas+s for Oracle$usion $inancials'

.erform these seven tas+s in the order indicated:

/' Set Receivables S*stem Options

Set Receivables s*stem options to customi0e *our Receivablesenvironment' !uring Receivables setup) *ou specif* *our accounts)

customer and invoice parameters) and how the "uto(nvoice and"utomatic Receipts programs operate'

1' !ene Receivables "ctivities

!ene receivables activities to default accounting information for theactivities *ou need) such as miscellaneous cash) discounts) latecharges) ad2ustments) and receipt write3o4 applications'
http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F440987AN5D647http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F440903AN5D821http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569382AN5D9D9http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569383AN5DEB9http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569385AN5ECDAhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569387AN5EFB1http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F440903AN5D821http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569382AN5D9D9http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569383AN5DEB9http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569385AN5ECDAhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F569387AN5EFB1http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569967AN5D615.htm#F440987AN5D647


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5' !ene "uto"ccounting Rules

!ening "uto"ccounting is a re-uired conguration tas+ for processingcustomer billing'

!ene "uto"ccounting to specif* how *ou want Receivables todetermine the default general ledger accounts for transactions'Receivables creates default accounts for revenue) receivable) freight)tax) unearned revenue) unbilled receivables) late charges) and"uto(nvoice clearing 6suspense7 accounts using this information'

8' !ene Receipt Classes and ethods

!ening receipt classes and receipt methods is a re-uiredconguration tas+ for processing customer pa*ments'

Receipt classes determine the re-uired processing steps for receipts towhich *ou assign receipt methods with this class' These steps includeconrmation) remittance) and clearance' Receipt methods specif*accounting for receipt entries and applications) determine customerremittance ban+ account information) and congure automatic receiptprocessing and fund transfer error handling'

9' !ene Remit3to "ddresses

!ene remit3to addresses to let *our customers +now where to sendpa*ment for open receivables' Receivables uses the addresses to

provide default remit3to information when *ou enter transactions'

&ou must provide a remit3to address to complete a transaction'

(f *ou use "uto(nvoice) but have not dened a remit3to address for aparticular customer site) "uto(nvoice re2ects all transactions for whichit could not determine a remit3to address'

' !ene "pproval #imits

!ene approval limits to determine whether a Receivables user can

approve ad2ustments or credit memo re-uests' &ou dene approvallimits b* document t*pe) amount) reason code) and currenc*'

;' !ene Statement C*cles

!ene statement c*cles to control when *ou create customerstatements' &ou assign statement c*cles to customer proles'


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!otes "apping #or Receivables: Explained

The Notes common component portlet is available on all Oracle $usionReceivables transaction pages' &ou can create) view) update and deletenotes on transactions throughout the entire transaction c*cle: incomplete)

complete) posted'

There are two t*pes of Notes: (nternal and .rivate' (nternal notes areavailable to all users' .rivate notes are available to authors onl*'

There are three conguration tas+s to perform to use the Notes portlet onReceivables transactions'

!otes "apping Confguration Tass

There are three conguration tas+s for Notes mapping to Receivables'

.erform these tas+s in the order indicated:

/' anage Receivables Note T*pe

!ene the loo+ups *ou need for the Note T*pe'

1' anage Receivables Note T*pe apping


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Me#

Re$uest

A%%rval

#e#

re$uest

a%%rvalnte t&%e

5' anage Receivables Note !escriptive $lexelds

&ou can optionall* dene descriptive >eselds for Notes' &ou can useNotes descriptive >exelds on Receivables transactions to captureadditional information for *our business re-uirements'

Defne Receivables Activities

Receivables Activit$ T$pes

Receivables activit* t*pes provide the default accounting information foreach corresponding activit* that ta+e place in Oracle $usion Receivables'


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&ou use activities of this t*pe when entering miscellaneous receipts' &ou canuse this t*pe of activit* to help reconcile ban+ statements using Oracle$usion Cash anagement'

Credit Card C'argebac

&ou use activities of this t*pe when recording credit card chargebac+s' &oumust dene a general ledger clearing account for the Credit CardChargebac+ activit* that Receivables provides before recording credit cardchargebac+s'

Receivables credits the clearing account when *ou appl* a credit cardchargebac+) and then debits the account after generating the negativemiscellaneous receipt' (f *ou later determine the chargebac+ is invalid) thenReceivables debits the clearing account when *ou unappl* the credit cardchargebac+) and then credits the account after reversing the negative

miscellaneous receipt' Onl* one Credit Card Chargebac+ activit* within abusiness unit can be active at a time'

Credit Card Re#und

&ou use activities of this t*pe when processing refunds to customer creditcard accounts' This activit* includes information about the general ledgerclearing account to use to clear credit card refunds' &ou must create at leastone activit* of this t*pe to process credit card refunds'

Earned Discount

&ou use activities of this t*pe to ad2ust a transaction if pa*ment is receivedwithin the discount period) as determined b* the pa*ment terms on thetransaction'

(ate C'arges

&ou use activities of this t*pe to dene a late charge polic*' &ou must dene a#ate Charges activit* if *ou record late charges as ad2ustments againstoverdue transactions' (f *ou assess penalties in addition to late charges) thendene a separate #ate Charges activit* for penalties'

"iscellaneous Cas'

&ou use activities of this t*pe when entering miscellaneous receipts' Theiscellaneous Cash activit* use a distribution set to automaticall* distributemiscellaneous cash across various accounts' &ou must create at least oneactivit* of this t*pe'


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(f the Tax Rate Code Source for this activit* is "ctivit*) then *ou must deneasset and liabilit* tax rate codes to account for tax on miscellaneous receiptsand miscellaneous pa*ments'

)a$ment !etting

&ou use activities of this t*pe when appl*ing a receipt against other openreceipts' &ou must dene a general ledger clearing account to use wheno4setting one receipt against another receipt' Onl* one .a*ment Nettingactivit* within a business unit can be active at a time'

)repa$ments

&ou use activities of this t*pe when creating prepa*ment receipts' &ou mustdene a general ledger account for prepa*ment receipts that use the.repa*ments activit*' Onl* one .repa*ments activit* within a business unit

can be active at a time'

Receipt *rite+o,

&ou use activities of this t*pe when writing o4 receipts' &ou must dene thegeneral ledger account to credit when *ou write o4 an unapplied amount oran underpa*ment on a receipt'

Re#und

&ou use activities of this t*pe to process automated non3credit card refunds'

&ou must dene the general ledger clearing account to use to clear refunds'&ou must create at least one activit* of this t*pe' Onl* one Refund activit*within a business unit can be active at a time'

-nearned Discount

&ou use activities of this t*pe to ad2ust a transaction if pa*ment is receivedafter the discount period) as determined b* the pa*ment terms on thetransaction'

.( Account Source

?hen *ou dene a receivables activit*) *ou use the .( Account Sourcetoindicate how Oracle $usion Receivables derives the accounts for the expenseor revenue generated b* the activit*'

@# "ccount Source Options


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Activit$ .( Account

"llocate the expense or revenue to the general ledger account that *ouspecif* for the receivables activit*' (f the activit* t*pe is ,an+ Error) #ateCharges) .repa*ments) and Receipt ?rite3o4) *ou can onl* select this option'

Distribution Set

"llocate the expense or revenue to the distribution set that *ou specif*' Thisvalue is onl* used with iscellaneous Cash activities'

Revenue on /nvoice

"llocate the expense or revenue net of an* tax to the revenue accountsspecied on the invoice' (f Tax Rate Code Sourceis set to None) allocatethe gross amount to these accounts' &ou can onl* choose this option if the

activit* t*pe is "d2ustment) Earned !iscount) or


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"llocates the entire tax amount according to the .( Account Source*ouspecied' &ou use this option if *ou do not want to account for tax separatel*'

Activit$

"llocate the tax amount to the asset or liabilit* tax accounts specied b* theactivit*'

/nvoice

!istribute the tax amount to the tax accounts specied b* the tax rate codeon the invoice' &ou cannot choose this option if the activit* t*pe isiscellaneous Cash or #ate Charges'

!ote

(n the event of a tax ad2ustment to an invoice with 0ero amount taxdistributions) the ad2ustment activit* Tax Rate Code Sourcemust not be setto (nvoice'

(f the Tax Rate Code Sourceis "ctivit* or (nvoice) *ou must indicatewhether tax for this activit* is recoverable or non3recoverable'

Defne AutoCas' Rule Sets

-sing AutoCas' Rules: Examples

&ou create an "utoCash rule set from a combination of the ve "utoCashrules' &ou enter the rules in the order in which *ou want Oracle $usionReceivables to use them to appl* a receipt to an open debit item'

The "utoCash rules are:

atch .a*ment with (nvoice

Clear the "ccount

Clear .ast !ue (nvoices

Clear .ast !ue (nvoices @rouped b* .a*ment Terms

"ppl* to the Oldest (nvoice $irst


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?hen *ou appl* a receipt) Receivables uses the rst rule in "utoCash ruleset' (f the rst rule in the set does not nd a match) Receivables uses thenext rule in the se-uence) and so on until it can appl* the receipt'

These examples illustrate how each rule applies receipts to transactions and

updates customer balances'

"atc' )a$ment 0it' /nvoice

The atch .a*ment with (nvoice rule applies a receipt to a single invoice)debit memo) or chargebac+ onl* if the receipt amount exactl* matches theamount of the debit item' (f more than one debit item has an open amountthat matches the receipt amount) Receivables applies the receipt to the itemwith the earliest due date' (f more than one debit item has the same amountand due date) Receivables applies the receipt to the item with the lowest

pa*ment schedule (! number 6internal identier7'

Receivables uses the values specied for the "utoCash rule set open balancecalculation and the number of discount grace da*s assigned to the customerprole to determine the remaining amount due on the debit item' The ruleignores the value of the Appl$ partial receiptsoption'

$or example) consider the following scenario:

/temOption alue

!iscounts Earned Onl*

#ate Charges No

Receipt B/DD

Receipt !ate /83"N3D5

!iscount @race !a*s 9

The invoice details are:


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/nvoice!umber

/nvoiceAmount

Discount

)a$mentTerms

/nvoiceDate

DueDate

DD B1DDD B1D /DF /DANet5D

D/3"N3D5 5D3"N3D5

The pa*ment terms assigned to this invoice include a /DF discount if theinvoice is paid within /D da*s) and the open balance calculation on the"utoCash rule set allows for earned discounts' Even though the invoice ispaid after the /D da* period) Receivables adds the 9 discount grace da*s)ma+ing this invoice eligible for a /DF discount'

The remaining amount due on the invoice on anuar* /8 is B/DD' Since theremaining amount due matches the receipt amount) the receipt is applied' (fthere had been no discount grace da*s) Receivables could not appl* thereceipt because the remaining amount of the invoice would be B1DDD'

Clear t'e Account

The Clear the "ccount rule applies a receipt onl* if the receipt amountexactl* matches the customer open balance' Receivables includes all opendebit and credit items when calculating the customer open balance' Opencredit items include credit memos) on3account credits) and on3account andunapplied cash' The rule ignores the value of the Appl$ partial

receiptsoption'

The Clear the "ccount rule uses the following e-uation to calculate the openbalance for each debit item:

Open Balance = Original Balance + Late Charges - Discount

Receivables then adds the balance for each debit item to determine the totalaccount balance' The rule uses this e-uation for each invoice) chargebac+)

debit memo) credit memo) and application of an unapplied or on3accountreceipt to a debit item'

Receivables uses the values specied for the "utoCash rule set open balancecalculation and the number of discount grace da*s assigned to the customerprole to determine the customer open balance'



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/temOption alue

#ate Charges &es(tems in !ispute &es

Receipt B9GD

This table shows the customer activit*:

)ast Due DebitsCredits /nvoice Amount (ate C'arges /n Dispute

(nvoice 89 B9DD B8D &es

(nvoice 8 B5DD BD NA"

Credit emo /DD B9D NA" NA"


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cash) and the credit memo date for credit memos and on3account credits) todetermine whether to include these amounts as part of the customer pastdue account balance'

$or example) if *ou appl* a receipt with a receipt date of /D3"N3D5) all

unapplied and on3account cash) and all credit memos and on3accountcredits) that have a transaction date 6receipt date or credit memo date7e-ual to or earlier than /D3"N3D5 are included when calculating thecustomer past due account balance'

Receivables uses the values specied for the "utoCash rule set open balancecalculation and the number of discount grace da*s assigned to the customerprole to determine the customer past due account balance' The settings ofthe (ate c'argesand /tems in disputeoptions ma* prevent a past duedebit item from being closed) even if the receipt amount matches thecustomer past due account balance'


/temOption alue

#ate Charges No

(tems in !ispute No

Receipt B81D

This table shows the customer activit*:

)ast Due DebitsCredits /nvoice Amount (ate C'arges /n Dispute

(nvoice 1DG B5DD BD NA"

(nvoice G B19D BD &es

(nvoice ; B/1D B5D NA"

Since the (ate c'argesand /tems in disputeoptions are not enabled)Receivables does not include (nvoice G 6B19D7 or late charges for (nvoice ;6B5D7 in the calculation of the customer past due account balance' Therefore)


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the past due account balance for this customer is B81D' ,ecause the receiptamount matches the customer past due account balance) the receipt isapplied' However) (nvoice ; and (nvoice G are still open) past due debititems'

Clear )ast Due /nvoices .rouped b$ )a$ment Terms

The Clear .ast !ue (nvoices @rouped b* .a*ment Terms rule applies a receiptonl* if the receipt amount exactl* matches the sum of the customer creditmemos and past due invoices' This rule is similar to the Clear .ast !ue(nvoices rule) but it rst groups past due invoices b* pa*ment terms anduses the oldest transaction due date within the group as the group due date'

" debit item is considered past due if the invoice due date is earlier than thedate of the receipt that is currentl* being applied' $or credit memos)

Receivables uses the credit memo date to determine whether to includethese amounts in the customer account balance'

$or example) if *ou appl* a receipt with a receipt date of /D3"N3D5) creditmemos that have a transaction date e-ual to or earlier than /D3"N3D5 areincluded' Credit memos do not have pa*ment terms) so the* are included ineach group'

Receivables uses the values specied for the "utoCash rule set open balancecalculation and the number of discount grace da*s assigned to the customerprole to determine the sum of the customer credit memos and past due

invoices' The settings of the (ate c'argesand/tems in disputeoptionsma* prevent a past due debit item from being closed) even if the receiptamount matches the sum of the customer credit memos and past dueinvoices'

$or example) consider a BGDD receipt applied on 193


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9 C 193"& BGD9

Receivables groups these transactions as follows:

@roup /: Transactions /)1)5"mount: BGDD@roup !ue !ate: 193"&

@roup 1: Transaction 8"mount: BGDD@roup !ue !ate: 1D3


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(f *ou compare onl* the due dates for the two invoices) invoice D/ is theoldest invoice' However) Receivables also chec+s the open balancecalculation and automatic matching rule options for the "utoCash rule set'Since the (ate c'argesoption is not enabled) Receivables ignores invoiceD/ 6because the remaining amount onl* consists of late charges7 and

applies the B1DD receipt to invoice ;D;'

(f the Appl$ partial receiptsoption were not enabled) Receivables couldnot appl* this receipt and would loo+ at the next rule in the se-uence'

-sing an AutoCas' Rule Set: *ored Example

This example demonstrates how to create and use an "utoCash rule set' &oucreate an "utoCash rule set to manage the pa*ments received from @lobal$reight Carriers' &ou have an earned discount arrangement with this

compan* but with no pa*ment or discount grace da*s) and *ou do not addlate charges for pa*ments received be*ond the due date'

Creating t'e AutoCas' Rule Set

Create the "utoCash Rule set using these values:

3ield alue

Open &alance Calculation: Discounts Earned Onl*

Open &alance Calculation: (ate C'arges No

Open &alance Calculation: /tems in Dispute No

Automatic "atc'ing Rules: Appl$ )artialReceipts

&es

Automatic "atc'ing Rules: RemainingRemittance Amount

On "ccount

AutoCas' Rule /' atch .a*ment with(nvoice

AutoCas' Rule 1' Clear The "ccount

AutoCas' Rule 5' "ppl* To The Oldest(nvoice $irst


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)rocessing )a$ment -sing t'e AutoCas' Rule Set

@lobal $reight Carriers has the following outstanding invoices) none of whichare in dispute:

!umber

AmountRemaining

DueDate

DiscountDate

DiscountAmount

/15 B1DD //3!EC3D1

D/3!EC3D1 B1D

/18 B5DD D3!EC3D1

5D3NOI3D1 B5D

/19 B/9D /53!EC3D1

13NOI3D1 B/9

" pa*ment was entered for @lobal $reight Carriers for BDD with a depositdate of /D3!EC3D1'


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invoice is now e-ual to either BD or the amount of an* latecharges previousl* assessed for this item'

,ecause the (ate c'argesoption is set to No) latecharges are not included in the customer open balance

calculation' The remaining receipt amount is now B5DD'DD'

b' Receivables now applies B1DD to the next oldest invoice) (nvoice/15) and performs these calculations:

"s with (nvoice /18) the discount date for (nvoice /15 haspassed and the B1D discount is no longer available' Theamount due remaining for this invoice is now e-ual toeither BD or the amount of an* late charges previousl*assessed for this item'

,ecause the (ate c'argesoption is set to No) latecharges are not included in the customer open balancecalculation' The remaining receipt amount is now B/DD'

c' Receivables applies the remaining B/DD to (nvoice /19 6B/9D7 asa partial receipt because the Appl$ partial receiptsoption isset to &es'

!ote

(f the Appl$ partial receiptsoption were set to No)

Receivables could not appl* the remaining amount to(nvoice /19' (nstead) it would be placed on account)because the Remaining Remittance Amountoptionis set to On "ccount'

"s with the other invoices) the discount date for (nvoice/19 has passed and the B/9 discount is no longeravailable'

(f there are no late charges for this invoice) the amount dueremaining is reduced from B/9D to B9D) and remains open'

3A4s #or AutoCas' Rule Sets

5o0 is an AutoCas' rule set selected and used6


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!uring pa*ment processing) Oracle $usion Receivables uses the atchReceipts ,* rules to attempt to match receipts to open transactions) andeither appl* receipts automaticall* or present recommendations for receiptapplication'

(f transactions cannot be matched or transaction information is not available)Receivables uses the "utoCash rule set dened for the customer proleeither at the customer site or customer level to appl* the receipt' (f thecustomer does not have an "utoCash rule set assigned to a prole)Receivables uses the "utoCash rule set assigned to s*stem options and thenumber of discount grace da*s dened in the customer site or customerprole to appl* the receipt'

(f none of the rules in the "utoCash rule set appl*) Receivables places theremaining amount either unapplied or on3account) depending on the settingof the Remaining Remittance Amountoption on the "utoCash rule set'

5o0 can / use partial receipts6


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!ocument T*pes

Ad%ustment

!ene "d2ustment approval limits b* currenc* and amount' Oracle $usion

Receivables uses approval limits that have a document t*pe of "d2ustmentwhen *ou create or approve an ad2ustment'

?hen *ou enter an ad2ustment that is outside *our approval limit range)Receivables assigns the ad2ustment a status of .ending until someone withthe appropriate approval limits either approves or re2ects it'

Credit "emo

!ene Credit emo approval limits b* reason code) currenc*) and amount'The approval process sends a notication to an approver) if the credit memo

re-uest is within the approval limit range for the currenc* and reason codespecied'

Receipt *rite+o,

!ene Receipt ?rite3o4 approval limits b* currenc* and amount' Receivablesuses approval limits with this document t*pe whenever *ou attempt to writeo4 either an unapplied receipt amount or an underpa*ment on a receipt'

&ou cannot write o4 a receipt amount that is outside *our approval limitrange' (n addition) the approval limits for write3o4s are separate from) but

cannot exceed) the s*stem options write3o4 amounts'

Credit "emo Re#und

!ene Credit emo Refund approval limits b* currenc* and amount'Receivables uses approval limits with this document t*pe whenever *ouattempt to electronicall* refund an on3account credit memo'

3A4s #or Approval (imits

5o0 can / manage t'e users t'at 'ave approval limits6

&ou can onl* assign approval limits to valid users that are dened in *ours*stem' The combination of user) document t*pe) and currenc* identif* aspecic approval limit record' &ou can) for example) dene multiple approval


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limit ranges for the same user and document t*pe in each currenc* denedin *our s*stem'

,e sure to update approval limits when personnel changes occur and) forcredit memo approvers) whenever *ou dene new credit memo reason

loo+ups'

*'$ do credit memo approvals need a reason code6

The reason code identies the +ind of credit memo that is being re-uested'"n approver can onl* approve credit memo re-uests with the same reasoncode'

Credit memo approval ranges cannot overlap for approval limits with the

same reason code and currenc*' $or example) the approval range for theprimar* approver S(TH is from 31DD


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!ene .a*ment Terms

!ene "uto"ccounting

!ene Transaction T*pes

!ene Transaction Sources

!ene emo #ines

!ene ,alance $orward ,illing C*cles

$"%s for Salesperson "ccount References

$"%s for Remit3to "ddresses

Set


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"dd or update in Oracle $usion @eneral #edger this data:

o Currencies) if *our original s*stem uses currencies not *et

dened'

o "ccounting >exeld segment values) if *our original s*stem usesvalues not *et dened'

"dd or update in Oracle $usion Tax this tax data:

o Tax rates assigned to tax rate codes that are not *et dened'

o Tax rates associated with products shipped to specic locations'

o $ull or partial customer and item tax exemptions'

"dd or update these Receivables loo+up codes:

o $ree on ,oard 6$O,7 loo+up codes) if *our original s*stem uses

$O, point codes not *et dened'

o $reight carrier loo+up codes'

"dd or update this Receivables data:

o "uto"ccounting 6This is a re-uired setup to use "uto(nvoice7

o .a*ment terms

o Transaction t*pes

o Transaction sources

o Salespersons

o Revenue scheduling rules

"uto(nvoice Setup

Review and update in Receivables data specic to "uto(nvoice'

Review and update this data:


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"uto(nvoice @rouping Rules: !ene additional grouping rules or update

the default grouping rule provided b* Receivables' "uto(nvoice uses

grouping rules to determine how to create transactions'

"uto(nvoice uses the following hierarch* when determining the

grouping rule to use:

o Transaction source

o Customer site

o Customer prole

o S*stem options

"uto(nvoice #ine Ordering Rules: !ene line ordering rules for"uto(nvoice to determine how to order transaction lines' "uto(nvoicerandoml* orders lines on *our transactions if *ou do not dene line

ordering rules'

"uto(nvoice Transaction Source "utomatic Receipt Handling: (f *ou

want "uto(nvoice to automaticall* evaluate imported credits for receipthandling) enable the Receipt 5andling #or Creditsoption on the

"uto(nvoice transaction source'

.role Options: Set these prole options for "uto(nvoice:

o /D 3lexfeld Code: Specif* the (! of the >exeld code used b*

"uto(nvoice'

o "aximum (ines per Auto/nvoice *orer: Specif* the

maximum number of lines per "uto(nvoice wor+er'

o Source Code: Specif* the source code used b* "uto(nvoice'

o -se )arallel 5int: Enable parallel hints in "uto(nvoice'

o Auto/nvoice .at'er Statistics Allo0ed: (f *ou set this prole

option to &es) then when *ou submit "uto(nvoice) the programrst anal*0es the interface tables 6R"=(NTER$"CE=#(NES="##)

R"=(NTER$"CE=!(STR(,


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(f the number of records to be imported and the number of

wor+er processes are approximatel* the same as the previoussubmission of "uto(nvoice) then *ou can set this prole option toNo and s+ip this anal*sis'

Transaction $lexeld

Receivables uses the transaction >exeld to uni-uel* identif* each

transaction and transaction line *ou import using "uto(nvoice' Transaction>exelds are also used to refer to and lin+ transaction lines'

&ou must dene both a line3level and a header3level transaction >exeld' "ll

segments in the line3level transaction >exeld that refer to headerinformation must also exist in the header3level transaction >exeld' $orexample) if *ou dene a line3level transaction >exeld with four segments)and onl* the last two segments refer to line3level information) dene the

header3level transaction >exeld using the rst two segments'

(f *ou do not create Reference and #in+3to transaction >exelds) thenReceivables will use the line3level transaction >exeld structure to lin+ and

reference di4erent lines' &ou do not have to dene separate Reference and#in+3to transaction >exelds in this case'

However) if *ou are planning to create a customi0ed form to enter interface

data to displa* the Reference and #in+3to transaction >exelds) then *oumust dene these transaction >exelds' These >exelds must have the same

>exeld structures as the line3level transaction >exeld'

!ene "uto(nvoice #ine Ordering Rules

#ine Ordering Rule Transaction "ttributes: Explained

"uto(nvoice uses line ordering rules to determine how to order and number

each line after *our transactions have been grouped into invoices) debitmemos and credit memos' &ou can specif* a line ordering rule for eachgrouping rule'

Transaction "ttributes

Oracle $usion Receivables provides the following transaction attributes fromthe R"=(NTER$"CE=#(NES="## table that *ou can use for "uto(nvoice line

ordering rules:

"CCO


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"CCO


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T"J=CO!E


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from an* grouping rule) but *ou can add optional attributes to the mandator*

attributes to create a new grouping rule'

andator* Transaction "ttributes

Receivables provides the following mandator* transaction attributes from theR"=(NTER$"CE=#(NES="## table that must appl* to all transactions createdusing "uto(nvoice grouping rules:

COENTS

CONS=,(##(N@=N


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(NIO(C(N@=R


29/222

TRJ=!"TE

TRJ=N


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This example illustrates how to use grouping rules to group transaction lines

into transactions during "uto(nvoice import'

Scenario

!ene an "uto(nvoice grouping rule that species that to appear on thesame invoice) items must match on all mandator* attributes) such ascurrenc* 6C


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Result

,ecause of the optional attribute of sales order t*pe) "uto(nvoice createdthree invoices' (f the grouping rule had designated onl* mandator*

attributes) then "uto(nvoice would have created onl* two invoices'

$"%s for "uto(nvoice @rouping Rules

?h* did "uto(nvoice re2ect transactionsK

!uring "uto(nvoice processing) if *ou have transaction lines that failvalidation) Oracle $usion Receivables loo+s at the value of the /nvalid(ineeld in the transaction source to determine the grouping of transactions'

(f the value is Re2ect (nvoice) then "uto(nvoice re2ects all of the transactionlines that ma+e up one invoice according to the grouping rule) if an* one of

the transaction lines are invalid' $or example) if a grouping rule species thatthree transaction lines should be created as one invoice and one of thetransaction lines has an error) "uto(nvoice re2ects all three transaction linesand does not create an invoice'

However) if the value is Create (nvoice) "uto(nvoice re2ects the one invalidtransaction line and creates an invoice from the two remaining validtransaction lines'

?h* did "uto(nvoice create transactions with duplicate

transaction numbersK

!uring "uto(nvoice processing) Oracle $usion Receivables validates thattransaction and document numbers are uni-ue after grouping hascompleted' (n certain cases) "uto(nvoice will create multiple invoices in the

same group with the same transaction or document number' Once groupingis completed) "uto(nvoice chec+s for duplicate transaction and documentnumbers and reports an* lines that fail validation'

$or example) two lines are imported with the same transaction number) but

the* have di4erent currencies' These lines are split into two separateinvoices during grouping due to the di4erent currencies' Once grouping hascompleted) both of the invoices will fail validation due to identical transaction

numbers'

?hat happens if "uto(nvoice processes a transaction class

that is not dened for a grouping ruleK


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(f "uto(nvoice uses grouping rules and it is processing a transaction class

that is not dened for a grouping rule) then "uto(nvoice onl* uses themandator* transaction attributes to group transactions'

!ene .a*ment Terms

.a*ment Terms: Explained


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Create split pa*ment terms for invoice installments that have di4erent due

dates' The pa*ment terms determine the amount of each installment'


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invoices to which *ou assign these pa*ment terms are distributed across

di4erent installments'

(n this case) the original freight and tax amounts are included in the rstinstallment) in addition to the line amount allocated b* the ratio of the base

amount and the relative amount that *ou specif* for the rst pa*ment'Receivables uses the following e-uation to determine the original amountdue for the rst installment:

Amount Due = (Relative Amount/Base Amount * Base Line Amount + Base !reight

Amount + Base "a# Amount

.a*ment Terms !iscount ,asis

The pa*ment terms Discount &asiseld determines on what basis Oracle

$usion Receivables calculates the discount amount'

!iscount ,asis

/nvoice Amount

Calculates the discount amount based on the sum of the tax) freight) and lineamounts of transactions'

(ines Onl$

Calculates the discount amount based on onl* the line amounts of

transactions'

(ines7 3reig't /tems and Tax

Calculates the discount amount based on the amount of line items and their

freight and tax amounts) but excludes freight and charges at the transactionheader level'

(ines and Tax7 not 3reig't /tems and Tax

Calculates the discount amount based on the line items and their taxamounts) but excludes freight items and their tax lines'

Calculating !iscounts: Explained


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Oracle $usion Receivables uses di4erent formulas to calculate discounts)

depending on *our setup) the pa*ment terms on the transaction) and thet*pe of pa*ment received'

Receivables provides formulas for these discount events:

aximum !iscount

Earned !iscounts and .artial .a*ments "llowed


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nearne) Discount = $a#imum Discount - arne) Discount

Earned !iscounts with .artial .a*ment !iscounts Not "llowed

(f the Allo0 discount on partial pa$mentsoption on the pa*ment terms isnot enabled) Receivables onl* ta+es discounts if the receipt amount closesthe installment'

Receivables uses the following formula to determine earned discounts ifpartial pa*ment discounts are not allowed:

arne) Discount = Amount Due Original * Discount &ercent


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?hen *ou enter receipts manuall*) Oracle $usion Receivables determines

whether discounts are allowed based on the pa*ment terms) discount graceda*s) s*stem options) transaction date) and receipt appl* date' (f discountsare allowed) Receivables determines the amount of both earned and

unearned discounts) as determined b* the details of *our setup'

Scenario

"ssume that *ou are using the following information:


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The following table displa*s the default discount amounts based on di4erent

receipt application dates' &ou can also see the amount of earned andunearned discounts that *our customers can ta+e'

Receipt

Appl$

Date

Receipt

Amount

De#ault

Discount

Amount

"essag

e (ine

Earned

Discount

Allo0ed

-nearned

Discount

Allo0ed

$rom D13!EC3/D

to /13!EC3/D

BGGD B//D !iscountEarned

//D

Total //D

B//D None

"fter /;3

!EC3/D

BGGD D

To ta+e theunearneddiscount)

*ou must

update theamount'

!iscount

Earned D

Total

//D

None B//D

$rom D13!EC3/D

to /13!EC3/D

B/DDD

B/D of the

receipt is left as


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!EC3/Ddiscount ofB91'5 defaults)the receipt isfull* applied'

However) thereis still aremaining

balance ofB8;'5; on theinvoice'

To ta+e theunearneddiscount)*ou must

update theamount'

91'5

Total

//D

"fter /;3!EC3/D

B/DDD

Since there is nodefault discount)the receipt isfull* applied'

There is aremainingbalance of B/DDon the invoice'

D

To ta+e theunearneddiscount)*ou must

update theamount'

!iscountEarned

D

Total //D

None B//D

$"%s for .a*ment Terms

?hatPs the di4erence between balance forward pa*mentterms and other pa*ment termsK

,alance forward billing pa*ment terms pass the balance forward billing c*cle

to the Create ,alance $orward ,ill program' The billing c*cle determineswhen customer balance forward bills are generated'

,ecause balance forward bills cannot be split across installments) all settings

related to installments on balance forward billing pa*ment terms aredisabled' &ou cannot change existing pa*ment terms bac+ and forth for useas both a non3balance forward billing and balance forward billing pa*mentterms'

!ene "uto"ccounting


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"uto"ccounting "ccount T*pes and Segment Ialues

!ene "uto"ccounting to specif* how to determine the default generalledger accounts for transactions that *ou enter manuall* or import using

"uto(nvoice' &ou must dene "uto"ccounting before *ou can enter

transactions in Oracle $usion Receivables' ?hen *ou enter transactions) *oucan override the default general ledger accounts that "uto"ccountingcreates'

"ccount T*pes

!ene an "uto"ccounting record for each t*pe of account' &ou can thenassign either a table name or constant value to each segment of theaccount'

Auto/nvoice Clearing

The clearing account for imported transactions' Receivables uses the

clearing account to hold an* di4erence between the specied revenueamount and the selling price times the -uantit* for imported invoice lines'Receivables onl* uses the clearing account if *ou have enabled this optionon the transaction source used for imported transactions'

3reig't

The freight account for transactions'

Receivable

The receivable account for transactions'

Revenue

The revenue and late charges account for transactions'

Tax

The tax account for transactions'

-nbilled Receivable

The unbilled receivable account for transaction' Receivables uses thisaccount when the transaction uses the (n "rrears invoicing rule' (f the


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revenue scheduling rule on the transaction recogni0es revenue before the

invoicing rule bills it) Receivables uses this account'

-nearned Revenue

The unearned revenue account for transactions' Receivables uses thisaccount when a transaction uses the (n "dvance invoicing rule' (f therevenue scheduling rule on the transaction recogni0es revenue after theinvoicing rule bills it) Receivables uses this account'

Table Names

Enter either the table name or constant value that *ou want Receivables touse to retrieve information for each accounting >exeld segment of a givenaccount'

Enter a constant value instead of a table name if *ou want "uto"ccounting toalwa*s use the same value for a given segment' &ou must ensure that *ouenter information that is valid for this segment' $or example) if *ou dened

*our Compan* segment as a two3character segment with valid valuesranging from DD to /D) *ou must enter a two3character value within thisrange'

&ill+to Site


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(f the transaction has a line t*pe of #ine with an inventor* item of $reight)

"uto"ccounting uses the revenue scheduling rules for the freight accountrather than the revenue account'

Standard (ines


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incomplete "ccounting $lexeld' &ou must provide an* missing "ccounting

$lexeld information before *ou can complete a transaction'

There are these points to consider about creating *our "uto"ccountingstructure:

"uto(nvoice Clearing "ccount

$reight "ccount

Receivable "ccount

Revenue "ccount

Tax "ccount


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6Rev7

Receivable &es &es &es &es No No

Revenue &es &es &es &es &es No

Tax &es &es &es 6Rev7 &es &es

6Rev7

&es


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Receivables onl* uses the "uto(nvoice clearing account if *ou enabled the

Create clearing option on the transaction source assigned to importedtransactions' However) *ou must dene a clearing account in an* case'

&ou can use constant value) customer bill3to site) salesperson) transaction

t*pe) and standard item for *our "uto(nvoice clearing account' (f *ou selectsalesperson or standard item) Receivables uses the specied Revenue$lexeld'

$reight "ccount

The freight account controls the account in general ledger to which *ou post

freight amounts' &ou can use constant value) customer bill3to site)salesperson) transaction t*pe) and standard item to specif* *our freightaccount'

(f *ou choose standard item) Receivables uses the specied Revenue$lexeld' (n addition) *ou cannot import transactions with header3levelfreight through "uto(nvoice'

(f the transaction has a line t*pe of #(NE with an inventor* item of freight)"uto"ccounting uses the revenue scheduling rules for the freight t*peaccount rather than the revenue t*pe account'

Receivable "ccount

The receivable account controls the account in *our general ledger to which*ou post receivable amounts' &ou can use transaction t*pe) customer bill3tosite) salesperson) and constant value to specif* *our receivable account'

Revenue "ccount

The revenue account controls the account in *our general ledger to which*ou post *our revenue amounts' &ou can use transaction t*pe) customer bill3to site) standard item) salesperson) and constant value to specif* *our

revenue account'

Tax "ccount

The tax account controls the account in *our general ledger to which *oupost tax amounts' &ou can use tax rate codes) customer bill3to site)salesperson) transaction t*pe) standard item) and constant value to specif*

*our tax account'


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(f *ou select salesperson or standard item) Receivables uses the specied

Revenue $lexeld'


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$lexeld with $our !enitions

&ou want to dene a four segment Revenue $lexeld: DD3DDD3DDDD3DDD6Compan*3Cost Center3"ccount3.roduct7' &ou can dene "uto"ccounting to

derive defaults for each segment:

Compan*) the rst segment) is the constant D/'

Cost Center) the second segment) derives from the salesperson 6ohn

!oe7'

"ccount) the third segment) derives from the transaction t*pe

6Standard (nvoice7'

.roduct) the fourth segment) derives from the standard line 61D

egab*te Hard !is+7'

Salesperson ohn !oe enters a one line Standard T*pe invoice for a 1Degab*te Hard !rive'

This graphic illustrates how "uto"ccounting derives the Revenue $lexeld

based on a separate denition for each segment:

$lexeld with Two !enitions

&ou redene the structure so that "uto"ccounting onl* uses information fromthe transaction t*pe 6Standard (nvoice7 for segments / and 1) and standardline 6consulting services7 for segments 5 and 8'


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This graphic illustrates how "uto"ccounting derives the Revenue $lexeld

based on the same denitions for segments / and 1 and segments 5 and 8:

$"%s for "uto"ccounting

?hen does "uto"ccounting create subledger accountingK

"uto"ccounting derives the default accounting for each accounting event inOracle $usion Receivables according to *our setup' "uto"ccounting assigns

valid "ccounting >exelds to invoices and credit memos) and automaticall*generates valid "ccounting >exelds for all related accounts: freight)

receivable) revenue) "uto(nvoice clearing) tax) unbilled receivable) andunearned revenue'

?hen *ou submit the Create Receivables "ccounting program) this createsthe subledger accounting entries' Oracle $usion Subledger "ccounting

transfers the nal accounting to Oracle $usion @eneral #edger'

&ou can optionall* dene *our own accounting rules in Subledger "ccountingto create accounting that meets *our business re-uirements' (f *ou

customi0e the Subledger "ccounting setup to create *our own accounting)

then Subledger "ccounting overwrites the default accounts) or individualsegments of accounts) that "uto"ccounting originall* derived duringtransaction entr*'

!ene Transaction T*pes


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Recording .osted and Non3.osted "ctivities using Transaction T*pes:

Critical Choices


50/222


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?hether or not a transaction allows overapplication determines the actions

that *ou can ta+e on that transaction'

(f a transaction that allows natural application onl* is paid in full) then inorder to credit the transaction *ou must rst unappl* the transaction from

the receipt before creating the credit'

(f *ou want to use "uto(nvoice to import credit memos against paid invoicesand evaluate these credits for automatic receipt handling) then the

transaction t*pe of the paid invoices must allow natural application onl*'However) if the Receipt 5andling #or Creditsoption is not enabled on thetransaction source of the transaction) "uto(nvoice leaves the related credit

memo in the interface tables until *ou unappl* the invoice from the receipt'

Reference "ccounts and Transaction T*pes: .oints to Consider

!ene the accounting for transaction t*pes of class (nvoice) Chargebac+)Credit emo) and !ebit emo' Oracle $usion Receivables uses thisinformation along with *our "uto"ccounting denition to determine theaccounts to use for transactions with the applicable transaction t*pe'

There are points to consider for each reference account on a transactiont*pe:

Revenue

$reight

Receivable

"uto(nvoice Clearing

Tax


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(f the /nvoice Accounting -sed #or Credit "emosprole option is set to

No) then a revenue account is not re-uired for Credit emo transactiont*pes'

$reight

Enter a freight account) unless the transaction t*pe does not allow freight'

Receivable

Enter a receivable account for all transaction t*pes'

(f the )ost To .(option on the transaction t*pe is enabled) Receivablescreates a receivable transaction record using this account in order to transferaccounting to general ledger and create a 2ournal entr*'

$or Chargebac+ transaction t*pes) enter the Receivable Chargebac+ account'The o4set to the Receivable account on the original debit transaction isgenerated b* the chargebac+ ad2ustment'

(f the /nvoice Accounting -sed #or Credit "emosprole option is set toNo) then a receivable account is not re-uired for Credit emo transactiont*pes'

"uto(nvoice Clearing

(f this is an (nvoice or !ebit emo transaction t*pe) enter an "uto(nvoice

clearing account' Receivables uses this account to hold an* di4erencebetween the revenue amount specied for the revenue account and theselling price times the -uantit* for imported invoice lines'

Receivables onl* uses the "uto(nvoice clearing account for importedtransactions that have a transaction source with the Create clearingoptionenabled' (f the Create clearingoption is not enabled) then "uto(nvoicere-uires that the revenue amount on the invoice be e-ual to the selling price

times the -uantit*'

Tax

(f this is an (nvoice) Credit emo or !ebit emo transaction t*pe) enter a taxaccount'


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(f this is an (nvoice or Credit emo transaction t*pe) enter an unbilled

receivable account' This account is for transactions that use the (n "rrearsinvoicing rule'


54/222

Receivableset to No and assign it to the applicable transactions' This

transaction t*pe does not update *our customer balances'

?hen *ou review and approve the transaction) *ou can dene a transactiont*pe called $inal with Open Receivableset to &es and assign it to the same

transactions' This will now update *our customer balances on thesetransactions'

!ene Transaction Sources

anaging Transaction Numbering: .oints to Consider


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!ote

The last transaction number on the transaction source is an approximationonl*) due to caching'

&ou can use automatic transaction numbering with both (mported andanual transaction sources'

Cop*ing !ocument Number to Transaction Number

(f *ou are using document se-uences and *ou want to use the same valuefor both the document number and the transaction number for transactions

assigned to a transaction source) enable the Cop$ document number totransaction numberoption'

(f *ou are using @apless document se-uences) *ou should enable this option

if *ou re-uire gapless transaction numbering' This ensures that transactionnumbers are generated se-uentiall* and that there are no missing numbers'

"llowing !uplicate Transaction Numbers

Enable the Allo0 duplicate transaction numbersoption to allowduplicate transaction numbers within a transaction source'

&ou cannot use this option with automatic transaction numbering'


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(f the Re8uire salespersons*stem option and the Allo0 sales

creditsoption on the transaction source are both enabled) *ou must

provide sales credit information'

(f the Re8uire salespersons*stem option is not enabled and

the Allo0 sales creditsoption on the transaction source is enabled)*ou can provide sales credit information) but it is not re-uired'

(f the Re8uire salespersons*stem option is enabled and the Allo0

sales creditsoption on the transaction source is not enabled) *oumust provide sales credit information'

(f neither the Re8uire salespersons*stem option nor the Allo0

sales creditsoption on the transaction source are enabled) *oucannot provide sales credit information' "uto(nvoice ignores an* values

that *ou pass'

Ialidating (mported Transactions: How (t ?or+s


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o (f *ou select Create (nvoice) "uto(nvoice creates a transaction

with valid lines onl*' $or example) *ou import an invoice with

three invoice lines and one of the lines is invalid' "uto(nvoicecreates the invoice with onl* the two valid lines and re2ects theinvalid line' &ou can use the Edit Transaction page to add the

re2ected line'

Accounting Date in a Closed )eriodeld: (ndicate how "uto(nvoice

handles imported transactions that have lines in the interface linestable that are in a closed period'

o Select "d2ust to have "uto(nvoice automaticall* ad2ust the

accounting dates to the rst accounting date of the next open or

future enterable period'

o Select Re2ect to re2ect these transaction lines'

(n the (mport (nformation subregions) where applicable select Number)

Ialue) Segment or (! for each option to indicate how "uto(nvoice

validates information'

o Select Number to import a record into the interface tables using

its assigned number'

o Select Ialue to import a record into the interface tables using its

actual name'

!ote


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"uto(nvoice ensures that certain column values agree with each other' These

values can be within an interface table or multiple interface tables' $orexample) if the transaction source indicates not to use a revenue schedulingrule) "uto(nvoice ignores an* values passed for invoicing rule) revenue

scheduling rule) and revenue scheduling rule duration'

"uto(nvoice performs these validations on transaction lines with revenuescheduling rules:

Re-uires that these transactions also include an invoicing rule) if *ou

import transactions that use revenue scheduling rules'

Re2ects lines) if the revenue scheduling rule has overlapping periods'

Re2ects lines) if all of the accounting periods do not exist for the

duration of the revenue scheduling rule'

$"%s for Transaction Sources

?hat do ( create before creating transaction sourcesK

&ou ma* want to create certain records before creating *our transactionsources'

&ou can optionall* create these ob2ects for all transaction sources:

Transaction t*pes: !ene the transaction t*pes that *ou want to

appear b* default on transactions assigned to *our transactionsources'

(nvoice transaction >exeld: !ene the reference information that *ou

want to capture in the invoice transaction >exeld and displa* on

imported transactions) such as a purchase order number'

Credit memo transaction source: !ene a transaction source for credit

memos before *ou dene a transaction source for invoices'


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"uto(nvoice clearing account: !ene an "uto(nvoice clearing account)

if *ou intend to enable the Create clearingoption' "uto(nvoice puts

an* di4erence between the revenue amount and the selling price timesthe -uantit* for a transaction into this account'

How can ( manage credit memos with transaction sourcesK

Special conditions ma* appl* to the creation of transaction sources for credit

memos'

Review these considerations for transaction sources assigned to creditmemos:

!ene anual transaction sources for credit memos created b* the

credit memo re-uest approval process'

Enable the Cop$ transaction in#ormation 9exfeld to credit

memooption on anual transaction sources used for credit memos) to

cop* the invoice transaction >exeld reference information to thecredit memo that is crediting the invoice'

!ene and assign transaction sources for credit memos to transaction

sources for invoices) if *ou want to number the credit memos created

against invoices di4erentl* from the invoices the* are crediting'

?hat happens if ( donPt enter an "uto(nvoice grouping ruleK

"ssign the "uto(nvoice grouping rule to (mported transaction sources that"uto(nvoice uses to group imported transaction lines'

(f *ou do not assign a grouping rule to an (mported transaction source)

"uto(nvoice uses the following hierarch* to determine which rule to use:

/' @rouping rule assigned to the transaction source of the transactionline'

1' @rouping rule assigned to the bill3to customer site prole of thetransaction line'

5' @rouping rule assigned to the bill3to customer prole of the transaction

line'

8' @rouping rule assigned to s*stem options'


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?hat happens if ( donPt create a clearing accountK

(f *ou do not use an "uto(nvoice clearing account and enable the Create

clearingoption on the transaction source) "uto(nvoice re-uires that therevenue amount be e-ual to the selling price times the -uantit* for all of thetransactions it processes' "uto(nvoice re2ects an* transaction line that doesnot meet this re-uirement'

!ene emo #ines

Revenue "ccounts and emo #ines: Explained

&ou can optionall* associate a revenue account with a memo line'

(f "uto"ccounting depends on memo line) Oracle $usion Receivables uses the

revenue account segment values dened for the memo line) in combinationwith the rest of *our "uto"ccounting structure) to determine the defaultrevenue) freight) "uto(nvoice clearing) tax) unbilled receivable) unearned

revenue) and receivable accounts for invoices that include the memo line'

?hen *ou create a debit memo or on3account credit memo with memo lines)Receivables uses the Revenue account from the original receivable item as

the credit account' However) when *ou create debit memo reversals orchargebac+s) Receivables uses instead the Revenue >exeld from theoriginal receivable item as the credit account'

$"%s for emo #ines

?hen do ( use memo linesK


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!ene ,alance $orward ,illing C*cles

"ccount and Site ,alance $orward ,illing: Explained

&ou can enable and maintain balance forward billing details at the customer

account level and customer site level' The rules governing the interactionbetween the account and account sites determine what sites are included inbalance forward bills'

Rules for "ccount and Site ,alance $orward ,illing

These rules appl* to balance forward billing at the account level and sitelevel:

"ccount level customer prole values become the default values for

the related customer sites when *ou create site proles'

(f balance forward billing is enabled at the account level) *ou still need

to enable balance forward billing on the related site proles if *ou wantto include these sites for balance forward billing'

Once *ou create a site prole and dene balance forward billing

details) the site prole no longer references the account prole' Thislets *ou dene di4erent balance forward billing details for a particularsite'

,alance forward billing denitions at the site level ta+e precedenceover balance forward billing denitions at the account level'

Setting


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?hat billing c*cle is usedK onthl*

?hat da* of month is used on the pa*ment termsK /9th

How are balance forward bills consolidatedK "ccount level

Can the customer exclude transactions from the balance

forward billK

&es

Summar* of the Tas+s

To generate balance forward bills for a customer:

/' !ene a balance forward billing c*cle'

1' !ene balance forward billing pa*ment terms'

5' Set up the customer prole class for balance forward billing'

8' "ssign the prole class to the ,usiness ?orld customer account'

!ene a ,alance $orward ,illing C*cle

!ene the balance forward billing c*cle to use for this customer:

/' Open the ,alance $orward ,illing C*cle window'

1' Complete the elds) as shown in this table:

Fiel !al"e

Na#e Na#e t'at identifies t'is balance frard billin c&cle

fr t'is cust#er*


63/222

Fre$"enc% Mnt'l&

&epeatE(er%

+

Da% o)

Mont*

"ast ,a& f Mnt'

5'

!ene ,alance $orward ,illing .a*ment Terms

!ene the balance forward billing pa*ment terms to use for this customer:

/' Open the Create .a*ment Terms page'

1' Complete the elds) as shown in this table:

Fiel !al"e

Na#e Na#e t'at identifies t'ese %aent ter#s fr t'is

cust#er*

Billing C%cle T'e billin c&cle &u defined in t'e %revius

ste%*

D"e B% Da% o)

Mont*

+-

5'

Setting


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/' Open the Create Receivables Customer .role Class page'

1' Complete the general re-uired elds for the prole class'

5' Complete the elds on the .role Class tab) as shown in this table:

Fiel !al"e

Balance For+ar

Billing Ena,le

Enable t'is %tin*

Bill Le(el Accunt

Bill T%pe ,etail

Pa%#ent Ter#s T'e balance frard billin %aent ter#s

&u defined in t'e %revius ste%*

O(errie ter#s Enable t'is %tin*

8'

; !ote

' The Override termsoption ma+es available to transactions non3balance forward pa*ment terms and the one balance forward billingpa*ment terms *ou dened in the previous step' This lets *ou exclude

individual transactions from balance forward billing b* assigning the

transaction non3balance forward pa*ment terms'

"ssign the .role Class to the ,usiness ?orld Customer "ccount

"ssign the prole class to the ,usiness ?orld account:

/' Open the Edit "ccount page for ,usiness ?orld'


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1' Clic+ on the .role tab'

5' Open the (nsert "ccount .role page and update the ,usiness ?orldcustomer account with the prole *ou dened in the previous step'

8' a+e sure that balance forward billing is enabled at the site prole level forall sites belonging to the customer account that *ou want to include inbalance forward billing'

$"%s for ,alance $orward ,illing C*cles

?hatPs a balance forward billing c*cleK

The balance forward billing c*cle determines the dates in the *ear thatOracle $usion Receivables generates balance forward bills) and thetransactions that are included in balance forward bills' &ou assign balance

forward billing c*cles to pa*ment terms'

?hen *ou run the Create ,alance $orward ,ill program) *ou must select abilling c*cle' &ou can also select specic customers) customer sites) andpa*ment terms' " run of the Create ,alance $orward ,ill program includes all

transactions not included on a previous balance forward bill that areassigned the pa*ment terms with the selected billing c*cle) or a subset ofthese pa*ment terms as determined b* the other program parameters'

$"%s for Salesperson "ccount References

?hat are salesperson reference accountsK

"ssign general ledger accounts to *our salespersons' ?hen "uto"ccountingdepends on salesperson) Oracle $usion Receivables uses the account

references that *ou dene here to derive the accounts to use on transactionsthat are assigned a particular salesperson'

$"%s for Remit3to "ddresses

How can ( use remit3to addressesK

The remit3to address lets *our customers +now where to send pa*ment fortheir open debit items' "fter *ou create a remit3to address) *ou can assign itto the bill3to addresses of the customers and customer sites that *ou

designate b* countr* and) if applicable) b* region and postal code range'


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(f the )rint remit+to addresss*stem option is enabled) Oracle $usion

Receivables prints the remit3to address on the related dunning letters andstatements'

How does "uto(nvoice validate remit3to addressesK

!uring the import process) "uto(nvoice re2ects all invoices for which it cannot

determine a remit3to address' (n order for "uto(nvoice to import an invoice)*ou must either dene a remit3to address for the geographical location ofeach applicable bill3to site or dene a remit3to address to use as default forone or more locations'

How can ( dene a default remit3to addressK

Create or select a remit3to address) then open the Receipts from Criteria

dialog box' Select the countr* that *ou want to assign to this remit3toaddress' (f *ou onl* select a countr*) then all customer bill3to sites in thiscountr* are assigned this remit3to address'

(f *ou want to assign this remit3to address to specic locations within thecountr*) *ou can optionall* select a state 6region7 within the countr*) and arange of postal codes'

?h* did the countr* appearK

?hen *ou create a remit3to address) a countr* appears b* default if one wasdened in s*stem options' &ou can change the default to the applicablecountr* of the remit3to address'

?h* do ( verif* the addressK

(f *ou have Oracle $usion Trading Communit* !ata %ualit* installed) *ou canexpose a eri#$ Addressbutton on the Create and Edit Remit3to "ddress

pages for applicable countries'

"fter *ou enter a remit3to address) use the eri#$ Addressbutton toconrm that the address is in the Oracle $usion Trading Communit* odel

registr*' (f it is not) Oracle $usion Receivables either presents alternativeaddresses or lets *ou optionall* add the address *ou entered to the registr*'

2< Defne Revenue "anagement Confguration


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Evaluating Revenue .olic*: .oints to ConsiderEvent3,ased Revenue anagement: How (t ?or+sRevenue Contingencies: Explained$"%s for !ene Revenue anagement Conguration

Evaluating Revenue )olic$: )oints to Consider


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Re#und )olic$ T'res'old


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Receivables defers the entire revenue amount on the invoice because thelast installment exceeds the /D3da* threshold b* 1D da*s'

Event+&ased Revenue "anagement: 5o0 /t *orsOracle $usion Receivables automates the timing of revenue recognition forboth manuall* entered transactions and transactions imported via"uto(nvoice' This automated revenue management process helps *ou tocompl* with the strict revenue recognition re-uirements mandated b*


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Revenue Contingencies: The revenue contingencies assigned totransactions) and their corresponding removal events) determine whatrevenue is deferred and for how long'

Revenue .olic*: &our revenue polic* ma* trigger the assignment of

contingencies to transactions'

Revenue Contingenc* "ssignment Rules: &our active revenuecontingenc* assignment rules ma* trigger the assignment ofcontingencies to transactions'

Revenue Scheduling Rules: (f a revenue scheduling rule is assigned tothe transaction) then revenue is recogni0ed according to the revenuescheduling rule details and rule start date'

5o0 Event+&ased Revenue "anagement /s Calculated

The event3based revenue management process for deferring and laterrecogni0ing revenue on transactions follows these steps:

/' Receivables evaluates a transaction either entered manuall* orimported via "uto(nvoice for revenue recognition'

1' (f one or more contingencies exist) Receivables defers thecorresponding revenue to an unearned revenue account and records

the reason for the deferral'

5' Receivables monitors the contingencies until an event occurs that canremove the contingenc* and trigger revenue recognition'

8' ?hen a removal event occurs) Receivables recogni0es the appropriateamount of unearned revenue on the transaction'

The revenue is recogni0ed either according to the revenue schedulingrule or the last contingenc* removal date'

Revenue Contingencies: Explained

&ou can use predened revenue contingencies to assign to *our customertransactions' &ou can dene *our own contingencies based on the predenedcontingencies) and *ou can dene revenue contingenc* assignment rules tocontrol which contingencies are assigned to which transactions'


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Revenue Contingencies

This table describes the predened revenue contingencies and theircorresponding contingenc* removal events'

Contingenc$ !ame Contingenc$ Removal Event

Cancellation Contingenc* expiration date or expirationperiod

CustomerCreditworthiness

Receipt application

!eliver* .roof of !eliver*

!oubtful Collectibilit* Receipt application

Explicit "cceptance Customer acceptance

Extended .a*ment Terms Receipt application

$orfeitures Contingenc* expiration date or expirationperiod

(nstallation Customer acceptance

.re3,illing "cceptance (nvoicing

Refund Contingenc* expiration date or expirationperiod

3A4s #or Defne Revenue "anagement Confguration

*'at=s a revenue contingenc$6

" revenue contingenc* is the terms and conditions in a sales contract orbusiness agreement that prevents revenue from being immediatel*recogni0ed) based on the revenue recognition re-uirements mandated b*


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T*pical contingencies that can dela* revenue recognition include customercreditworthiness) nonstandard pa*ment terms) and nonstandard refundpolicies'

*'en do / use a revenue polic$ 0it' a contingenc$6

&ou can assign a contingenc* to a transaction based on the revenue polic* of*our enterprise'

&ou have these options:

Credit Classication: The contingenc* is assigned to the transaction ifthe applicable customer has a credit classication that matches one ofthe credit classications dened in *our revenue polic*'

.a*ment Terms: The contingenc* is assigned to the transaction if itspa*ment terms exceed the pa*ment terms threshold of *our revenuepolic*'

Refund: The contingenc* is assigned to the transaction if it includes arefund polic* that exceeds the refund polic* threshold of *our revenuepolic*'

Select None if *ou do not want to consider an* details of *our revenue polic*for the contingenc*'

*'en do / create revenue contingenc$ assignmentrules6

&ou must create revenue contingenc* assignment rules if *ou want toautomaticall* assign contingencies to transactions' $or each rule that *oudene) *ou specif* one or more matching criteria' ?henever the rule criteriamatch) Oracle $usion Receivables assigns the specied contingenc* to theapplicable transaction lines'

There are two cases where *ou do not need to create revenue contingenc*assignment rules:

Revenue polic* violations: Receivables automaticall* assigns theappropriate revenue contingencies to transactions whenever an*revenue polic* is violated'


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!eferred revenue scheduling rules: Transactions assigned a deferredrevenue scheduling rule have all revenue deferred until either therelated contingenc* expires or *ou manuall* schedule revenue'

2> Confgure )a$ment S$stem Connectivit$


Ialidations: Critical Choices$ormats: ExplainedTransmission .rotocol: ExplainedTransmission Conguration: Explained.a*ment S*stem: Explained.a*ment S*stem "ccount: Explained$"%s for Congure .a*ment S*stem Connectivit*

alidations: Critical C'oices

Ialidations are rules that ensure that transactions are valid before the* areprinted or submitted electronicall* to pa*ment s*stems' &ou use validationsto ensure that disbursement transactions) such as invoices) pa*ments) andpa*ment les meet specic conditions before the* can be paid' &ou canassign validations to pa*ment methods and pa*ment formats' " validationcan be executed at the document pa*able) pa*ment) or pa*ment le level'

(n pa*ment processing) it is critical that pa*ment les sent to pa*ment

s*stems and nancial institutions are valid and correctl* formatted' (f this isnot done) the pa*ment process is slowed) which results in additional timeand cost due to problem resolution' Oracle $usion .a*ments helps *ouachieve straight3through processing b* ensuring that pa*ment3related detailsare valid' To assign validations) *ou can choose from the following options:

"ssigning validations

Creating user3dened validations

Choosing from a predened librar* of validations

The following table shows the ob2ects *ou can validate and when validationsare executed for the applicable setup'

Ob%ect )a$ment "et'od+Driven )a$ment 3ile 3ormat+
http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F189404AN6366Ehttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245511AN638EEhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245594AN63A94http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245621AN63BEEhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F278352AN63D18http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F278317AN63E38http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F569413AN63F68http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F189404AN6366Ehttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245511AN638EEhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245594AN63A94http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F245621AN63BEEhttp://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F278352AN63D18http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F278317AN63E38http://docs.oracle.com/cd/E15586_01/fusionapps.1111/e20375/F569970AN6363C.htm#F569413AN63F68


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alidations are En#orced*'en;;;

Driven alidations areEn#orced *'en;;;

!ocument.a*able

The invoice is saved in thesource product'

The invoice installment isselected for pa*ment'

The invoice installment isselected for pa*ment'

.a*ment The pa*ment is created b*building related documentspa*able together'

The pa*ment is created b*building related documentspa*able together'

.a*ment

$ile

Not applicable' The pa*ment le is created'

Assigning alidations

&ou can assign user3dened validations to an*:

.a*ment method

.a*ment le format

&ou assign a validation to whichever ob2ect drives the re-uirement forvalidation' $or example) if the proprietar* format *our ban+ uses re-uiresthat *ou limit the number of characters in a specic eld) then *ou canassign that validation directl* to the ban+ format' ,* doing this) *ou ensurethat the validation is enforced onl* when applicable' However) if *ou wish toenforce a general validation that is not specic to the pa*ment method orformat) *ou can consider timing in *our decision between assigning it to thepa*ment method or to the format'

.a*ments alwa*s validates as earl* as possible for a given ob2ect and setup'

!ocument pa*able validations that are associated with pa*ment methodsare enforced earlier in the process than those associated with formats' (f *ouwant validation failures to be handled b* the same person who is enteringthe invoice) *ou can opt to associate the validation with the pa*mentmethod' This is ideal for business processes where each person has fullownership of the items entered' However) if *ou want focused invoice entr*)while validation failures are handled centrall* b* a specialist or a more


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+nowledgeable user) *ou can opt to associate the validation with the format'This is ideal for some shared service centers'

Creating -ser+Defned alidations

" user3dened validation explicitl* species the ob2ect to which thevalidation applies:

!ocument pa*able

.a*ment

.a*ment le


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(n Oracle $usion .a*ments) formatting is the placement of data in a le b*using a template) or format) that contains prescribed formatting attributes)such as data location) font t*pe) and font si0e' $inancial institutions) pa*ments*stems) and countries have specic electronic formatting re-uirements forpa*ment les and settlement batches' Each format in .a*ments corresponds

to one Oracle ,usiness (ntelligence .ublisher 6Oracle ,( .ublisher7 template'.a*ments uses Oracle ,( .ublisher templates to format funds capture andfunds disbursement transactions according to the formatting re-uirements ofspecic nancial institutions and pa*ment s*stems'

The purpose of setting up formats is to associate them with Oracle ,(.ublisher templates to correctl* format funds capture and disbursementtransactions and to enable *ou to easil* manage the formats' &ou can useexisting Oracle ,( .ublisher templates or modif* them with minimal e4ort b*using a standard text editor) such as icrosoft ?ord' $or example) when apa*ment s*stem or nancial institution re-uires a change to its pa*ment le

format) the change can be made -uic+l* b* modif*ing the appropriate Oracle,( .ublisher template'

.a*ments has given special consideration to the complexit* of creating xedposition and delimited formats' Oracle ,( .ublisherPs eText feature is used forthese format t*pes' eText allows the format la*out to be presented in anunderstandable tabular structure'

$ormats are associated with specic Oracle ,( .ublisher templates in theCreate $ormat page and can also be assigned pa*ment validation sets)whether predened or user3dened) to validate transactions that use that

format' ultiple t*pes of formats can be used for a single pa*ment s*stem'Examples of format t*pes include disbursement pa*ment le formats andfunds capture settlement formats'

!ote

,efore *ou can set up formats) *ou must set up the corresponding templatesin Oracle ,( .ublisher'

Transmission )rotocol: Explained

" transmission protocol is a convention used b* computers to communicatewith each other across a networ+' To transmit data such as a pa*ment le orsettlement batch from Oracle $usion .a*ments to an external pa*ments*stem) the implementer must dene the transmission protocols that thepa*ment s*stem is capable of receiving'


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.a*ments o4ers industr*3standard transmission protocols) such as $T.) HTT.)HTT.S) and "S1) predened' The* are comprised of the following:

" code entr* point) which the pa*ment s*stem servlet uses toaccomplish transmission

" list of parameters) such as networ+ address and port) for which thetransmission conguration must suppl* values

Transmission protocol entr* points) which are independent of pa*mentservlets and ma* be invo+ed from the .a*ments engine

?hile the transmission protocol denes which parameters are expected inthe communication) the transmission conguration denes what value will besupplied for each parameter) for a given pa*ment s*stem' " specictransmission conguration and a specic pa*ment s*stem are associated

with each other within the funds capture process prole for funds capture orwithin the pa*ment process prole for disbursement'

Transmission Confguration: Explained

" transmission conguration denes a value for each parameter in atransmission protocol' The values in a transmission conguration are specicto one pa*ment s*stem or nancial institution'

$or example) a transmission protocol ma* re-uire parameters) a Soc+et (."ddress) and a Soc+et .ort Number' &our pa*ment s*stem that accepts thatprotocol will give *ou the values that it expects to receive for thoseparameters' Those values are set up in the Socet /) Addressand Socet)ort !umberelds in the transmission conguration' The transmissionconguration is then assigned to the pa*ment s*stem within the fundscapture process prole for funds capture or within the pa*ment processprole for disbursement'

&ou can set up transmission congurations in the Create TransmissionConguration page to enable electronic connectivit* with pa*ment s*stems

b* specif*ing parameter values'

)a$ment S$stem: Explained

" pa*ment s*stem is an external organi0ation that provides nancialsettlement services' The pa*ment s*stem can be the ban+ at which *our


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compan* has its ban+ accounts or it can be a third3part* processor orgatewa* that connects companies and nancial networ+s' !eplo*ingcompanies t*picall* choose pa*ment s*stems to process their funds capturesettlements and) sometimes) their electronic disbursement pa*ment les'.a*ment s*stems are not re-uired for printed disbursement pa*ments) but

ma* be re-uired for related services) such as positive pa* or other reporting'

The purpose of setting up pa*ment s*stems is to dene the externalorgani0ations that Oracle $usion .a*ments collaborates with to process *ourfunds capture and disbursement transactions'

?hen creating a pa*ment s*stem on the Create .a*ment S*stem page) *ouperform the following actions:

specif* pa*ment instruments the pa*ment s*stem will support forfunds capture transactions

specif* which le formats and transmission protocols are accepted b*the pa*ment s*stem

)a$ment S$stem Account: Explained

" pa*ment s*stem account is the representation of the relationship betweenthe pa*ment s*stem and *our compan*' (t is an account identier comprisedof pa*ment s*stem3provided values for parameters that the pa*ment s*stem

re-uires for each transaction or settlement batch' Specic values for settingsare stored in the pa*ment s*stem account) which includes deplo*ingcompan* identiers' (f *our compan* has multiple relationships with apa*ment s*stem) then there will be multiple pa*ment s*stem accounts'

.a*ment s*stem accounts are associated with the following setup ob2ects:

(nternal pa*ees

$unds capture process proles

.a*ment process proles

/nternal )a$ees

&ou can set up routing rules that are assigned to an internal pa*ee) whichspecif* which pa*ment s*stem account a transaction will be transmitted to)based on the values of various attributes of that transaction' (f *ou do not


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need granular routing rules for determining which pa*ment s*stem accountis the right one for a transaction) or if *ou want a fallbac+ value should noneof the routing rules appl*) *ou can set up one default pa*ment s*stemaccount on each internal pa*ee for each pa*ment method'

3unds Capture )rocess )rofles

The funds capture process prole tells Oracle $usion .a*ments how toprocess a funds capture transaction) including how to communicate with thepa*ment s*stem' " funds capture process prole is specic to one pa*ments*stem and its pa*ment s*stem accounts' $or each pa*ment s*stem accountthat is enabled on the funds capture process prole) *ou select up to threetransmission congurations) one each for authori0ation) settlement) andac+nowledgment' The pa*men

oracle fusion applications financials implementation guide ii

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