Receivables Full

Financials R12 - Accounts Receivables

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2 Overview of Oracle Receivables

CONTENTS

Oracle Receivables

I. Overview of Accounts Receivables II. Creating Receivables Responsibility III. Oracle Receivables Set up

1. System Options

2. Defining Customer

a. Creating Customer Profile Class

b. Creating Customer

3. Transaction Setups

a. Transaction Types

b. Transaction Sources

4. Auto Accounting

5. Open or close Accounting Periods

6. Tax Managers

7. Receivable Activities

8. Receipts Setups

a. Receipts Classes

b. Receipts Sources

9. Validate Application Accounting Definations

10. Document Sequences

IV. Creating Transactions

a. Transaction

b. Credit memo

c. Deposit Transaction

d. Apply Deposit to Next Transaction

V. Creating Receipts

1. Creating Receipts

2. Receipt Adjustment

3. Credit Card Receipts

VI. Creating Remittances

1. Creating Remittance Batches

VII. Integration with General Ledger

1. Month end Process

2. Closing Accounting Periods

3 Overview of Oracle Receivables

I. Overview of Oracle Receivables

Oracle Receivables allows you to streamline invoicing, receipt, and customer deduction processing while improving cash flow, optimizing customer relationships, and providing strategic information. As a subledger, Oracle Receivables provides the flexibility to meet the demands of a global market with strong financial controls to assist in instilling corporate and fiscal discipline.

Enhance Value by Combining with the Entire Oracle E-Business Suite

Oracle Receivables works seamlessly with other Oracle E-Business Suite products to drive

better decision-making, sustainable financial discipline, regulatory compliance, and

optimized business processes at the lowest cost.

Benefits

Streamline Your Operations and Increase Your Cash Flow

Oracle Receivables seamlessly manages your invoicing needs and offers importing capabilities to extend this service to non-Oracle ordering systems. Facilitate account collection with correspondence tracking, instant access to current customer account information, and collector task scheduling.

Instill Corporate and Fiscal Discipline

Ensure compliance with accounting standards and company policies by mapping your business model to the appropriate revenue schedules. Promote strong internal controls through function security, approval processes, and appropriate dissemination of information.

Expand to Global Markets

With Oracle Receivables, your enterprise has the flexibility to respond to global needs,

support diverse regulatory requirements, and optimize customer relationships in the

global economy.

4 Accounting in Receivables

Accounting in Receivables

You create accounting entries for invoices and other transactions in Oracle Receivables using the Oracle Sub ledger accounting architecture.

Oracle Sub ledger Accounting is a rule-based accounting engine, toolset, and repository that centralizes accounting across the E-Business Suite. Acting as an intermediate step between each of the Sub ledger applications and Oracle General Ledger, Oracle Sub ledger Accounting creates the final accounting for Sub ledger journal entries and transfers the accounting to Oracle General Ledger.

Receivables includes a set of predefined accounting rules that Sub ledger Accounting uses to create accounting, but you can define your own detailed accounting rules using a centralized accounting setup in a common user interface.

Leveraging this accounting architecture, Receivables lets you:

Store a complete and balanced Sub ledger journal entry in a common data model for each business event that requires accounting

Maintain multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements

Retain the most granular level of detail in the Sub ledger, with different summarization options in the general ledger, allowing full audit ability and reconciliation because the link between transaction and accounting data is preserved

II. Creating Accounts Receivables Responsibility

Responsibilities Window

Use this window to define a responsibility. Each application user is assigned at least one responsibility.

A responsibility determines whether the user accesses Oracle Applications or Oracle Mobile Applications; which applications functions a user can use; which reports and concurrent programs the user can run; and which data those reports and concurrent programs can access.

Responsibilities cannot be deleted. To prevent a responsibility from being used, set the Effective Date's to field to a past date and restart Oracle Applications.

Before defining your responsibility, do the following:

Use the Data Groups window to list the ORACLE username your responsibility's concurrent programs reference on an application-by-application basis.

Use the Request Groups window to define the Request Group you wish to make available with this responsibility.

Use the Menus window to view the predefined Menu you can assign to this

5 Creating Accounts Receivables Responsibility

responsibility.

Responsibilities Block

An application name and a responsibility name uniquely identify a responsibility.

Responsibility Name

If you have multiple responsibilities, a pop-up window includes this name after you sign on.

Application

The owning application for the responsibility.

This application name does not prevent the user of this responsibility from accessing other applications' forms and functions if you define the menu to access other applications.

Responsibility Key

This is the internal key for the responsibility that is used by loader programs, (concurrent programs that load messages, user profiles, user profile values, and other information into Oracle Applications tables). The responsibility key is unique per application.

Effective Dates (From/To)

Enter the start/end dates on which the responsibility becomes active/inactive. The default value for the start date is the current date. If you do not enter an end date, the responsibility is valid indefinitely.

You cannot delete a responsibility, because its information helps to provide an audit trail. You can deactivate a responsibility at any time by setting the end date to the current date. If you wish to reactivate the responsibility later, either change the end date to a date after the current date, or clear the end date.

Available From

This is the navigator from which the responsibility will be available (Oracle Applications forms navigator, mobile navigator).

A responsibility may be associated with only one Applications system.

Data Group

Note: Data groups are used for backward compatibility only. Oracle Application Framework does not support the data groups feature.

Name/Application


The data group defines the pairing of application and ORACLE username.

Select the application whose ORACLE username forms connect to when you choose this responsibility. The ORACLE username determines the database tables and table privileges accessible by your responsibility. Transaction managers can only process requests from responsibilities assigned the same data group as the transaction manager.

Menu

The menu whose name you enter must already be defined with Oracle Applications.

Request Group - Name/Application

If you do not assign a request security group to this responsibility, a user with this responsibility cannot run requests, request sets, or concurrent programs from the Submit Requests window, except for request sets owned by the user. The user can access requests from a Submit Requests window you customize with a request group code through menu parameters.

Menu Exclusions Block

Note: Menu exclusions should be used for backward compatibility only.

Define function and menu exclusion rules to restrict the application functionality accessible to a responsibility.

Type

Select either Function or Menu as the type of exclusion rule to apply against this responsibility.

When you exclude a function from a responsibility, all occurrences of that function throughout the responsibility's menu structure are excluded.

When you exclude a menu, all of its menu entries, that is, all the functions and menus of functions that it selects are excluded.

Name

Select the name of the function or menu you wish to exclude from this responsibility. The function or menu you specify must already be defined in Oracle Applications.

HTML-Based Applications Security

Oracle HTML-based applications use columns, rows and values in database tables to define what information users can access. Table columns represent attributes that can be assigned to a responsibility as Securing Attributes or Excluded Attributes. These attributes are defined


in the Web Application Dictionary.

Excluded Items

Use the List of Values to select valid attributes. You can assign any number of Excluded Attributes to a responsibility.

Securing Attributes

Use the List of Values to select valid attributes. You can assign any number of securing attributes to the responsibility.

Creating Accounts Payables Responsibility

Steps:

Create a super user to use as a logon name during setup and assign the super user the

required setup responsibilities.

1. Switch to System Administrator Responsibility

2. File > Switch Responsibility > System Administrator

3. N: Security > Responsibility > Define

187 Credit Card Receipts (for Credit Card Payments made by customer)

Click on Create

Click on Apply

Click on Apply


Click on Apply

Click on Complete

Click on OK and Close.

Batching Receipts for Easy Entry and Retrieval


Use the Receipt Batches window to create receipt batches or to query existing batches. Batching receipts lets you:

View the difference between your control and actual batch counts and amounts as you process your receipts. These differences can alert you to data entry errors, missing or lost receipts, or duplicate entries.

Group related receipts together to share default attributes such as receipt class, receipt method, and automatic numbering.

Manage the time-consuming task of data entry. For example, you have many receipts to enter and want to divide the work among several people. You can create one batch and have each person entering receipts add them to the same batch.

You can add duplicate receipts to a batch. Duplicate receipts are receipts that have the same number, amount, and customer information.

You can post a receipt batch to your general ledger regardless of its status. You can delete a receipt batch only if it does not contain any receipts.

Receivables let you add receipts denominated in different currencies to a batch. However, the total in the Receipt Batches window reflects amounts entered in all currencies, not the batch currency. For example, if there are two receipts in a batch, one for 400 USD and one for 200 EUR, the total amount for this batch is 600, regardless of the batch currency.

Note: You can specify how many spaces are available to the right of the decimal point when displaying numbers representing different currencies using the profile option Currency: Mixed Currency Precision.

Attention: The GUI versions of Oracle Receivables let you enter receipts both individually and as part of a batch. Previous versions (i.e. character mode) required that you either entered receipts as part of a batch or entered them individually (in the latter case, you could not create batches at all). As a result, if you are using Receivables in character mode, you can only query receipts that were entered in the GUI version if they are part of a batch.

Batch Statuses

A batch has a status that indicates whether it is complete. Receivables automatically update the status of a receipt batch when you add new or apply existing receipts in the batch. A batch can have one of the following statuses:

New: This is a new batch that does not yet contain any receipts.

Out of Balance: The actual count and amount of receipts in this batch do not equal the control count and amount.


Open: The actual count and amount equal your control count and amount. However, you have one or more receipts that are unidentified or unapplied.

Closed: The actual count and amount match the control count and amount and there are no receipts that are either unidentified or unapplied.

N: - Receipts-> Batches

To create a batch of receipts:

1. Navigate to the Receipt Batches or the Receipt Batches Summary window. 2. Choose a Batch Type of Manual Regular. 3. Enter a Batch Source. If you have defined the profile option AR: Receipt Batch Source,

Receivables uses this as the default batch source, but you can change it. The batch source determines default attributes for receipts within this batch, including receipt method, receipt class, and whether receipt numbers are assigned automatically.


4. Receivables use the receipt method to determine the accounting and remittance bank accounts for this receipt. The receipt class determines the processing steps for this receipt.

Note: If a user has access to multiple organizations, Receivables does not default the receipt batch source in Receipt Batches and Receipt Batches Summary windows.

5. Enter a unique Batch Name. If Automatic Batch Numbering for the batch source you entered is Yes, Receivables assigns a batch name when you save.

Suggestion: If you use good naming conventions for your batches, you can easily find a batch or individual receipts within a batch for review.

6. If the currency for this batch is different from your functional currency, enter the Currency and exchange rate information.

Note: Receivables uses the batch currency as the default for each receipt that you add to this batch. However, you can add receipts to a batch that are in different currencies.

7. Enter the Batch, GL, and Deposit Dates for this batch (optional). The default batch and deposit date is the current date, but you can enter a different date. The default batch GL date is the last day of the most recent open period. You can change this date, but it must be in an open or future enterable period. The batch GL date provides the default GL date for each receipt in this batch.

Receivables use the deposit date as the exchange date when the receipt currency is different from your functional currency. If you later change the deposit date, then Receivables also updates the exchange date.

8. Enter the Receipt Class, Receipt Method, and Bank Name for this batch. The batch source provides default values, but you can change them.

Note: You can only enter receipt methods assigned to this receipt class. You can enter any bank account assigned to the receipt method if the account is in the same currency as the receipt, or the Receipt Multi-Currency flag for this remittance bank is set to Yes.

9. Enter the total number and amount of receipts that you want to add to this batch in the Control Count and Control Amount fields.

10. To add receipts to this batch, choose Receipts. Receivables save your batch information.

When you add receipts to this batch or apply, unapply, reverse, or adjust receipts that are part of this batch, Receivables updates the batch totals.

192 VI.Remittances

Save and Close

VI.Remittances

Remit automatic receipts to your bank to initiate the transfer of payments from your customers. You remit your automatic receipts after approval or confirmation, if confirmation is required. You can also remit manual receipts to your bank.

The remittance process is very similar to the automatic receipt creation process. You must Create, Approve, and Format your remittances. You can combine these operations into a single step or perform each separately.

Receivables let you make cross currency deposits. You can deposit receipts into remittance bank accounts that are either in the currency of the receipt or that are in your functional currency, but have the Receipts Multi-Currency field set to Yes. This provides greater flexibility in determining your remittance bank accounts.

Receivables support two types of remittances:

o Standard Remittances: For automatic receipts, you remit receipts to your bank so the bank can transfer funds from the customer's account to your account on the receipt maturity date. For manual receipts, the bank credits your account when the customer's check clears.

o Factored Remittances: Remit receipts to your bank so the bank can lend you money against the receipts either before the maturity date (for automatic

193 Creating Remittance Batches

receipts) or before clearing (for manual receipts). After clearing factored receipts, Receivables creates a short term debt for the borrowed amount to track your liability in case of customer default.

1. Creating Remittance Batches

Create remittance batches to automatically select receipts to be remitted. You can create

unapproved, approved, or approved and formatted remittance batches.

You can control the total remittance amount by specifying values for the Remittance Total range. If there are not enough receipts to meet the minimum amount, Receivables will not create the remittance batch. To ensure that the maximum amount is not exceeded receipts that meet your search criteria are identified and then ordered by maturity date, followed by amount. The program picks up receipts starting with the oldest eligible receipt and continues until it reaches the maximum of the remittance total range. When creating remittance batches, Receivables only includes receipts with payment methods whose receipt class requires remittance.

You can either create one remittance batch per remittance bank account or choose a clearing institution. If you choose a clearing institution, Receivables will select all the receipts belonging to remittance banks that have this clearing institution assigned to them.

Receivables let you make cross-currency deposits. You can deposit receipts into remittance bank accounts that are either in the currency of the receipt or are in your functional currency but have the Multiple Currency Receipts field set to Yes.

If you choose to approve and format your batch when you create it, Receivables initiates an additional process which creates the formatted batch information.

Depending upon the function security options set up by your system administrator, you may be able to create, format, and approve remittance batches in one step.

You can delete a remittance batch only if its status is either Started Creation or Completed Creation. When you delete a remittance batch, all receipts within the batch become available for selection the next time you create a remittance batch.

To create a remittance batch:

1. Navigate to the Remittances window.

2. Enter the Currency for this batch. The default is your functional currency, but you

can change it.

3. Enter the Batch and GL Date. The default Batch Date is the current date, but you

can change it. The GL date must be in an open accounting period. Receivables use the

GL Date to determine when to post this remittance batch to your general ledger.

4. Choose a Remittance Method. Choose Standard to remit this batch of receipts on

the maturity date. Choose Factoring to borrow money against the receipts before the


maturity date. Receivables only select receipts using the remittance method you

specify here when creating this remittance batch. Receivables select all receipts that

have a remittance method of Standard and Factoring.

5. Enter the Receipt Class, Payment Method, and Remittance Bank information for this

batch, or select from the list of values. You can select both inactive and active

payment methods for your remittance batches. You must select a remittance bank

that has accounts assigned to the payment method you entered.

Note: The default remittance bank is generally the primary remittance bank account

associated with the payment method and currency of your invoice. However, if it finds that a

non-primary account for the same currency is the same as the customer account, Receivables

uses this account. This avoids bank charges and allows funds to transfer more quickly.

6. To create this remittance batch automatically, choose Auto Create. Receivables

save your batch information.

7. Enter selection criteria for creating this remittance batch (optional). For example,

enter the low and high values of the Maturity and Receipt Dates, Receipt and

Document Numbers, and Customer Names or Numbers to select only those receipts for

this batch. Leave a field blank if you do not want to limit the search to transactions

matching that criteria. You can use both active and inactive customers as criteria for

your remittance batches.

Receivables will select all confirmed automatic receipts and manual receipts that

match the criteria you specify and whose receipt class has Require Remittance set to

Yes.

Note: Receivables keeps a running total of the total count and amount of the remittance

batch, so you can ensure that it does not exceed a certain value. This is particularly useful if

you intend to factor a remittance batch and you do not want to exceed the bank's short term

loan limit.

8. To approve and format this remittance batch, check the Approve and Format check

boxes.

9. Choose OK, then choose Yes to acknowledge the message. Receivables assign a

unique Request ID number for your concurrent request. Receivables also assign a batch

name using the next batch number of the Automatic Receipts source. Use the Request

ID to check the status of your remittance process in the View Concurrent Requests

window.

Receivables create the Automatic Receipts and Remittances Execution report when

you submit your request. This report lists the number and amount of remittances in

this batch.


Manually Creating a Remittance Batch

1. Choose Manual Create.

2. Specify which receipts to include in this batch by selecting and deselecting

transactions. You can control which transactions Receivables displays by modifying

Selection Criteria. Enter a range of Payment Methods and Maturity Dates to display

only those receipts, or choose from the following:

Query Batch Only: If you check this check box, Receivables will only display receipts

that are associated with this batch. If this is a new batch, this check box is not

checked by default.

Ignore Override: Check this check box to display all receipts matching the selection

criteria, regardless of the batch remittance bank and the receipt Override Bank

Account flag. Leave this check box unchecked to display all confirmed automatic

receipts and manual receipts that have the same remittance bank as the batch and

whose receipt class has Require Remittance set to Yes.

Select All: Check this check box to automatically mark all transactions that

Receivables displays for inclusion in this remittance batch.

Note: Receivables keeps a running total of the count and amount of the remittance batch, so

you can ensure that it does not exceed a certain value. This is useful if you intend to factor a

remittance batch and do not want to exceed the bank's short term loan limit.

3. Query the receipts.

4. Check the check box next to each receipt to add to this batch. Uncheck the check

box next to transactions you do not want to include in this batch.

5. To create the batch, save your work. To create and approve the batch in one step,

choose Approve. To create, approve, and format the batch in one step, choose

Format. Receivables assign a unique Request ID number for your concurrent request.

Receivables also assign a batch name using the next batch number of the Automatic

Receipts source. Use the Request ID to check the status of your remittance process in

the View Concurrent Requests window.

N: - Receipts-> Remittances


Click on Manual Create or if required to create automatically then click on Auto Create

Enable three check boxes

Create

Approve

Format

Then click on OK button system Automatically runs the Create Remittance, Appove and Format the Remittances

Approving Remittance Batches

After you create your remittance batch, you can review the receipts in the batch and add,

delete, or update them. Before you submit the batch for approval, you can update the

maturity date, remittance bank, customer bank, and bank charges information for each

individual receipt.

When you submit your request, Receivables assigns a concurrent request number. You can use this number to check the status of your remittance process in the View Concurrent Requests window. This concurrent process also produces a report giving you details of the batches that have been processed. If you choose to approve and format a batch simultaneously, Receivables initiates an additional process that creates the formatted batch information.


You can only make changes to a remittance batch if its status is Started Creation or Creation Completed.

Click on Approve


Click on Yes

N: - Menu-> View-> Requests

Click on Find


Click on Refresh Data

Click on View Output


N: - Receipts-> Remittances

Formatting Remittance Batches

You format approved automatic receipt remittance batches on either paper or magnetic

media to send to your remittance banks to initiate the transfer of funds from your customer's

account to your own. You format approved, manually entered remittance batches so the bank

will credit your account when your customer's checks clear.

You can assign different remittance formats to your remittance banks and clearing institutions. You assign the formats to your remittance banks when you define payment methods and to your clearing institutions when you define the clearing institution itself.


You can customize the program Receivables uses to format your remittances to suit your specific needs.

There is no limit to the number of times you can format a remittance batch.

Press ctrl+F11 to Query data


Click on Format

Click on Yes


N: - Menu-> View-> Requests

Click on Find

Click on Refresh Data


Close the form


N: - Receipts-> Receipts


Press F11 and enter 143% to query data

Press Ctrl+F11 to query data

209 Integration with General Ledger

Check the State as Remitted

Close the form

VII. Integration with General Ledger

Month End Process

N: - Control-> Requests-> Run

210 Month End Process


Click on OK

Click on OK and Submit


Click on NO

Menu: - View-> Requests


Click on Find


215 Closing Accounting Periods

2. Closing Accounting Periods

Steps:

1. N: - Control-> Accounting -> Open/Close Periods

216 Closing Accounting Periods

To open or close an accounting period:

1. Navigate to the Open/Close Accounting Periods window.

2. To update the status of an accounting period, place the cursor in the Status field next to that period, then enter a new status.

3. To Close the selected accounting period after the Latest Close Period, choose Period. Receivables change the status of the period to 'Close'.

4. Save your work.

Receivables Full

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