oracle receivables

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

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

Clearer communication with the customer User views the balance forward bill online exactly as the

customer sees it Improved accuracy of Aging

All invoices on the same bill have the same due date, guaranteeing the individual invoices will age simultaneously

BALANCE FORWARD BILLING SETUP AND PROCESS

Define Payment Term and assign Billing Cycle

Enable Balance Forward Billing for Customer Account or Site

Manually Create Transactions

Import Transactions

Automated process

Define Billing Cycle

SETUP PROCESS

Run GenerateBalance ForwardBill Program

Run ConfirmBalance ForwardBills Program

Run BPABalance ForwardPrint Program

BALANCE FORWARD BILLING SETUPDEFINE 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 SETUPDEFINE BILLING CYCLE

When setting up Monthly Balance Forward Billing Cycles: Choose the number of months to create bi-weekly, quarterly

or bi-annual billing Choose a specific date or multiple dates Choose to create exclude weekends

BALANCE FORWARD BILLING SETUPDEFINE 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 SETUPCUSTOMER 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) Override Terms

Default term can be updated

BALANCE FORWARD BILLING SETUPACCOUNT & 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 SETUPACCOUNT LEVEL BILL EXAMPLE

UseUse

Ignore

Bill Level

Primary Bill-To

BALANCE FORWARD BILLING SETUP SITE LEVEL BILL EXAMPLE

UseUseIgnore

Bill Level

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 Today’s 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 Today’s 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

All lines for each invoice

Balance and Summary information

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 PROCESSDISABLE 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

non-balance 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 upgradeAllow 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




Process



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

Request chargeback

Issuechargeback

Request chargeback

Issuechargeback

Notify vendor that a chargeback has taken place

Register that the card issuer has issued the customer a chargeback

Credit Card Company

Vendor

Customer

Vendor

Customer

CREDIT CARD CHARGEBACK BENEFITS

Reduce costs by automating the credit card chargeback process

CREDIT CARD CHARGEBACK PROCESS

Receive Credit Card Chargeback notification from card issuer

PROCESS

Find Receipt

Apply credit card chargeback activity

Subtract the amount of the credit card chargeback from the application line

Generates

Chargeback valid?

Create credit memo to credit invoice

Yes

No, Can prove that the chargeback was

invalid

Find Receipt

Restore the original amount on the application line

Un-apply the credit card chargeback activity

The Negative Misc. Receipt

Reverses

Negative Misc. Receipt

CREDIT CARD CHARGEBACK PROCESS

The process to record a credit card chargeback consists of three steps:1.Receive Receipt2.Record Credit Card Chargeback3.Validate Credit Card Chargeback

acknowledge the credit card chargeback or prove the credit card chargeback to be invalid

CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT

Vendor

Credit Card Company

Customer

Place order for $100

Notify receipt of $100

• Create Invoice– DR Receivables $100– CR Revenue

$100• Receive Receipt

– DR Cash$100

– CR Unapplied$100

• Apply to Invoice– DR Unapplied

$100– CR Receivables $100

CREDIT CARD CHARGEBACK PROCESS RECEIVE RECEIPT

Vendor

Credit Card Company

Customer

File dispute for $25

Notify a chargeback of $25

• Un-apply the receipt– DR Receivables

$25– CR Unapplied

$25• Apply the credit card

chargeback– DR Unapplied

$25– CR Credit Card Chargeback

$25• Misc. receipt is generated

– DR Credit Card Chargeback

$25– CR Cash

$25

Credited $25

CREDIT CARD CHARGEBACK PROCESS RECORD CREDIT CARD CHARGEBACK

Chargeback Process for Vendor:1. Find receipt2. Un-apply the receipt3. Decrease the value on the receipt application line to

$754. Apply $25 to receipt activity ‘Credit Card

Chargeback’ (creates a negative misc. receipt of $25)

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

CREDIT CARD CHARGEBACK PROCESSVALIDATE CREDIT CARD CHARGEBACK

Vendor acknowledges the credit card chargeback

Vendor

• Credit the invoice by creating a credit memo

– DR Revenue$25

– CR Receivables$25

CREDIT CARD CHARGEBACK PROCESS VALIDATE CREDIT CARD CHARGEBACK

Vendor proves the chargeback to be invalid

Vendor

Credit Card Company

Prove that chargeback was invalid

Agree that chargeback was 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

CREDIT CARD CHARGEBACK SETUP

Create Receivables Activity of type Credit Card Chargeback

SETUP

AGENDA




Process



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

Inv Org = Inventory OrganizationOU = Operating UnitBG = Business Group

No direct relationship

XLegal Entity

Ledger

OU

Inv Org

BankAccount

BG

Primary

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 Accounting Environment Type: Shared Ledger records the accounting for more than one Legal

Entity Balancing Segment Values

mapped to LE

BSV = Balancing Segment Value

Legal Entity Ledger

Legal Entity

Ledger

BSV

LEGAL ENTITIES AND SHARED ACCOUNTING

Ledger

OU 2OU 1

BSV 6 – 7

LE 2LE 1

LE = Legal EntityBSV = Balancing Segment ValueOU = Operating Unit

BSV 1 – 5

LEGAL ENTITY DESCRIPTIONDEFAULTING 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

Receipt Method

Receipt Header

BankAccount

LegalEntity

Default LE

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 Easily manages transactional data by legal entity

Tracking data from the legal perspective enables detailed reporting at legal entity, establishment, and registration level

Accurately provides tax calculation for legal entity Assists with enforcement of tax calculation

and reporting for all jurisdictions

LEGAL ENTITY SETUP AND AUTOMATED PROCESS

Update Transaction Batch Source

AutoInvoiceLE Not Passed

Assign LE to invoice line

LE exist on Transaction Type?

Create invoice

User update LE value for lines

No

Yes

Automated process

Update Transaction Type

SETUP PROCESS

LE exist on Batch Source?

Group lines by LE

Generate Error

Yes

No

Shared Accounting Environment Only

Is LE Valid?

No

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

Update Transaction Batch Source

Enter Manual Transaction header

Assign LE to invoice Header

LE exist on Transaction Type?

User assign LE

No

Yes

Automated process

Update Transaction Type

SETUP PROCESS

LE exist on Batch Source?

Yes

No

User continue invoice creation

Shared Accounting Environment Only

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 BR’s

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 the bank account: Manual, Automatic, Lockbox and 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

LE Default

Data Flow

Receipt Method

Receipt Header

BankAccount

LegalEntity

Receipt Application

InvoiceClaim

Non-InvoiceClaim

Invoice

ClaimResolution

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




Process



E-BUSINESS TAX

Central application that manages the following for all E-Business 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

Payables

Tax Engine

Data Repository

Tax Reporting

Receivables

Tax EngineData

Repository

Tax Reporting

Tax PartnerTax Content Tax Services

Other Applications

Tax EngineData

Repository

Tax Reporting

E-BUSINESS SUITE TAX INTEGRATION 12.0

Tax Administration Services

Tax Content Services

Tax Determination Services

Partner Tax Services Interface

Partner Tax Content Interface

Tax Services Request Manager

Tax ServicesTax ContentTax Partner

Services

Oracle E-Business Tax

Content Repository

Record Repository

E-Business Suite

Transaction Tax DataTransaction Data

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

Tax TaxStatus

TaxRate

OperatingUnit Tax Accounts

Regime Tax Jurisdiction Status Rate Account

US Sales Tax

StateSales Tax

California State Sales Tax

Standard 7.25% 01.005.004.033

US Sales Tax

County Sales Tax

San Mateo County Sales Tax

Standard 1.0% 01.005.004.033

US Sales Tax

CitySales Tax

Belmont City Sales Tax

Standard 0% 01.005.004.033

TaxJurisdiction

Flows

Optional Flows

EXAMPLE OF UK VAT TAX IN 12.0

FlowsOptional Flows

Tax Regime Tax

TaxStatus

TaxRate

Regime Tax Jurisdiction Status Rate Recovery

UK VAT UK VAT UK VAT Standard 17.5% 100%

UK VAT UK VAT UK VAT Reduced 8.0% 100%

UK VAT UK VAT UK VAT Zero Rated 00%

UK VAT UK VAT UK VAT Exempt 00%

TaxJurisdiction

OperatingUnit Tax Accounts

Recovery Rate

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 Group Codes

– CC

Tax Rate Codes

AA, BB, CCTax Rule

– AA, BB, CC

Output Tax Classification Codes

– 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 (non-

recoverable) 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




Process



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

Subledger Accounting Method

Application Accounting Definition

Journal Lines DefinitionsEvent Class & Type

Journal Line Type

Line Description

Account Derivation Rules

Assigned to

Assigned to

Assigned to

Assigned to

SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP SOURCES FOR ACCOUNTING DEFINITIONS

Invoice Event Class

Item

Customer Name

Transaction Type Revenue Account

Tax CodeCurrency

Invoice Number

Operating Unit

Salesperson

Entered Amount

PO Number

SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP PREDEFINED EVENT CLASSES/TYPES

Event Class* Event Types

*Event Class = Receivables Document

Invoice

Credit Memo

Receipt

Create

Update

Create

Update

Create

Update

Reverse

SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP AR PREDEFINED EVENT CLASSES/TYPES

Event Class Event Type

Journal Definition Assignment

Adjustments All Adjustments – Default Accrual

Bills Receivable All Bills Receivables – Default Accrual

Chargeback All Chargeback – Default Accrual

Credit Memo All Credit Memo – Default Accrual

Debit Memo All Debit Memo – Default Accrual

Deposit Memo All Deposit Memo – Default Accrual

Guarantee All Guarantee – Default Accrual

Invoices All Invoices – Default Accrual

Misc Receipt All Misc Receipt – Default Accrual

Receipt All Receipt – Default Accrual

SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP ANATOMY OF A JOURNAL ENTRY

Date: 10-Jan-2002 Description: Domestic invoice number A4576, issued Jan 5th 2002Line Type Account Description Debit CreditReceivable 01.1210.000 Paco Terremoto S.A. 5,600Revenue 01.4110.000 Widgets X-123 5,000Tax 01.5350.000 Domestic input VAT 600

Subledger Accounting Entry

DescriptionsAccount Derivation Rules

Journal Line Types

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 SETUPASSIGNING 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 Standard Cash

Application Accounting Definition Name: Receivables Default Cash Basis Accounting Definition

US Federal Accounting Application Accounting Definition Name: Multi-Fund

Account Receivables Accrual - Balancing Method

SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS INVOICE ACCOUNTING

11i Accounting

DR Receivables $360

CR Revenue $100 CR Revenue $200 CR Tax $ 10 CR Tax $ 20 CR Freight $ 30

R12 AR Default Accounting

DR Receivables $360


Item 1 $100 Tax $ 10 Freight $ 30Item 2 $200 Tax $ 20

Total $360

SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS MULTI-FUND RECEIVABLES ACCOUNTING

R12 AR Default Accounting

DR Receivables $100DR Receivables $200DR Receivables $ 10DR Receivables $ 20DR Receivables $ 30


Item 1 $100 Tax $ 10 Freight $ 30Item 2 $200 Tax $ 20

Total $360

SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESSADJUSTMENT ACCOUNTING

11i Adjustment Accounting

DR Write Off $ 60

CR Receivables $ 60

R12 Default Accounting

DR Write Off $ 20DR Write Off $ 40

CR Receivables $ 20 CR Receivables $ 40

$60 LINE* Adjustment

SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING

11i Receipt Accounting

DR Unapp $150

CR Receivables $150

R12 Default Receipt Accounting

DR Unapp $ 150

CR Receivables $ 50CR Receivables $100CR Receivables $ 5CR Receivables $ 10CR Receivables $ 15CR Receivables -$ 10 *CR Receivables -$ 20 *

Default Accrual Accounting

$150 Receipt Application

SUBLEDGER ACCOUNTING IN RECEIVABLES PROCESS RECEIPT APPLICATION ACCOUNTING

11i CASH BASIS

DR Unapp $150

CR Revenue $ 50CR Revenue $100CR Tax $ 5CR Tax $ 10CR Freight $ 15CR Adjustment -$ 10 CR Adjustment -$ 20

R12 CASH BASIS

DR Unapp $ 150

CR Revenue $ 50CR Revenue $100CR Tax $ 5CR Tax $ 10CR Freight $ 15CR Adjustment -$ 10 CR Adjustment -$ 20

Default Cash Basis Accounting

$150 Receipt Application*


SLA

Transactions

Accounting Events

Receivables

Journal Entry Setup

AccountingProgram

SubledgerBalances

GLJournal Entriesand Balances

AccountingConfigurations

SubledgerJournal Entries

AGENDA




Process



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

For more information: “Migrating to Oracle Advanced Collections: An Overview

for Oracle Receivables Users” white paper

TRANSITION TO NEW FEATURES

COLLECTIONS WORKBENCH - MENU AND FORMS

Items removed (menu and forms): Account Overview Aging Correspondence Customer Accounts Customer Calls Scheduler

Items changed (menu and program): Account Details modified as research tool

for non-collections users Dunning Letters program is now Historical

Dunning Letters only

Replaced with: – Collector’s Work Queue– Collections– Search

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 enabledRequired Steps

Setup for Bills Receivable If you have transitioned to Bills Receivable prior to

upgrading, no action is requiredFor more information:

If you plan to transition to Bills Receivable before or after the upgrade, review the white paper: “Oracle Receivables Billsof 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 ManagementRequired steps:

If you upgraded to Deductions Management solution prior to R12.0, no actions are required

Setup Oracle Trade Management and Credit Management

For more information: “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

Balance Forward Billing Credit Card Chargeback Legal Entity eBusiness Tax Subledger Accounting

in Receivables Obsolescence and

Replacement of Features

Centralized Payment Process


Matching Multi-Org Access

Control

CENTRALIZED PAYMENT PROCESS DESCRIPTION

Common Engine for Payment Transactions

Oracle Payables

Oracle Receivables

Oracle Order Management

Other Oracle Modules

Oracle Payments

FinancialInstitutions

Credit CardProcessors


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

Remittance Processing

Method of creation:Automatic Receipt Receipts APIPrepayment APIReceipt Workbench

Automated process

SETUP PROCESS

Configure Funds Capture Processing (Oracle Payments)

Create receipt classes and receipt methods(Oracle Receivables)

Assign receipt methods and instruments to customer site or account (Oracle Receivables)

Create Receipt

Oracle Payments performs:

(1) Funds capture or (2) Remittance file

creation

Method of creation:Auto InvoiceInvoice APITransaction Workbench

Create Invoice

CENTRALIZED PAYMENT PROCESS SETUPCREATE 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 SETUPCUSTOMER’S 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







Control

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

Request Refund Process

Refunds or On Account?

Fund Disbursement(Oracle Payments)

On account

Refund

Automated process

SETUP PROCESS

Setup Receivables Activity for ‘Refund’

Create on account credit

Workflow approval process

Workflow remittance process

Oracle Payables

Setup Transaction Source: Receipt Handling for Credits

Create credit memo(Auto Invoice)

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) refundsFor 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 PROCESSNEW 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







Control

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







Control

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

DAILY REVENUE DESCRIPTIONR11i vs. R12 revenue distributionsExample: 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 Month of Apr 100 45.91 45.91 14

May 17 Month of May 100 101.64 100.33 31

June 17 Month of Jun 100 98.36 100.33 30

July 17 Month of July 100 101.64 100.33 31

Aug 17 Month of Aug 100 101.64 100.33 31

Sept 17 Month of Sept 100 98.36 100.33 30

Oct 16 Month of Oct ----- 52.45 52.44 16

600 600 600 183

DAILY REVENUE SETUP AND PROCESS

Create an invoice lineWith accounting rule.(manual or imported)

Createaccounting

Is it daily revenuerule?

Enter Rule End Date Post accounting

View accounting

Adjust accounting

Yes

No

Automated process

Create accounting rule withDaily Revenue type

SETUP 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







Control

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

Define contingencies

Define defaulting rules

Create invoice line

Evaluate assignment rules

Is the revenue policy met?

Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies

Defer Revenue if contingencies exist

Assign contingencies if criteria is met

No

Yes

Automated process

Define policy threshold

SETUP PROCESS

Recognize revenue or continue deferring revenue

Assign Contingencies

Recognize Revenue

Run Revenue Contingency Analyzer to detect expired contingencies

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 SETUPCONTINGENCY CODES/ID

R11i mapped to R12

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

ID Contingency Name

2 Explicit Acceptance

3 Customer Creditworthiness

4 Doubtful Collectibility

5 Extended Payment Term

7 Cancellation

8 Fiscal Funding Clause

9 Refund

10 Forfeitures

12 Leasing Doubtful Collectibility

13 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

Create invoice line

Evaluate assignment rules

Is the revenue policy met?

Assign Customer Creditworthiness, Extended Payment Term, and/or Refund contingencies

Defer Revenue if contingencies exist

Assign contingencies if criteria is met

No

Yes

Automated process

PROCESS

Run Revenue Analyzer to detect expired contingencies

Recognize revenue or continue deferring revenue

Assign Contingencies

Recognize Revenue

Feeder Systems such as Order Management and Service Contracts

Feeder Systems such as Order Management and Service Contracts

Manual Transactions

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 today’s 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

Order Management, and Service Contracts Support Pre-billing Acceptance

AGENDA







Control

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







Control

MULTI-ORG ACCESS CONTROL DESCRIPTION

BelgiumOU

EMEA-1Responsibility

Perform tasks for multiple operatingunits without changing responsibilities

HollandOU


DenmarkOU


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 Reduce Costs

Cut down processing time

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

user’s security profile are listed in the notes for this slide.

oracle receivables

Technology

billing activity

billing sites

billing consistent

account billing date

balance forward bills

new billing cycles

specific billing dateif

nonbalance forward term