Oracle Order To Cash (O2C) Process With Credit Limits Training Manual

Oracle Order To Cash (O2C) Process with Credit Limits Training Manual O2C
Table of Contents
1 INTRODUCTION ............................................................................................................ 2
2 Setting up of the Credit Limit ...................................................................................... 3
3 Drafting of Sales Order .............................................................................................. 16
2.1 Line Items:......................................................................................................................... 18

4 Shipping of the Order ................................................................................................. 20
4.1 Auto-Create Delivery:....................................................................................................... 21

4.2 Launch Pick Release:........................................................................................................ 22
4.3 Resolving Credit Limit and Credit Hold Issue: .................................................................. 24
4.4 Ship Confirm :.................................................................................................................... 30
5 Auto-invoice ................................................................................................................ 33
5.1 Auto-Invoice Master Programme....................................................................................... 33

5.2 Viewing of the Invoice ....................................................................................................... 36
5.3 Create Accounting :........................................................................................................... 38
5.4 View Accounting ............................................................................................................... 40
6 Receipts ....................................................................................................................... 41
6.1 Create Accounting ............................................................................................................ 43

6.2 View Accounting ............................................................................................................... 44
7 Remittances ................................................................................................................. 45
8 Clearing of the Receipts ............................................................................................. 50
9 Bank Reconciliation ................................................................................................... 52
10 Transfer to GL: .......................................................................................................... 58
11 CONCLUSION :.......................................................................................................... 59
1 INTRODUCTION
O2C refers to Order to Cash Cycle. This refers to a process which starts with booking of order
to generating auto-invoice and then finally making up of the receipts to clearing and finally bank
reconciliation.
In this process Credit limit is an essential component or element which plays a crucial role in the
process. This is part of general practice in most of the organizations. Generally for each of the
customers the organization sets a limit up to which they can avail credit. In case for a particular
customer if the d the amount of sales order booked exceeds the credit limit or amount then the
order will be on hold and needs approval of some concerned authorities.
So the prerequisites of the O2C process is to
1) Setting the credit limit for the customer by going to the “Customer Definition Window”
2) Running of three requests viz
a) Initialize Credit Summaries Table
b) Credit Exposure Import
c) Credit Check Processor
d) Credit Exposure Report

2 Setting up of the Credit Limit

Responsibility: Receivables Manager
Navigation:
Query for your Customer
Select the Customer from the list. Since the required settings are to be done at the site level so
enter the site level details.
So enter the Site Details
Since Credit limit is a part of the profile definition
So to make the desired and required settings Click TAB
The following profile for the customer is not made so we need to create the profile at the site
level.
So click
So in the above screen shot we can see that the under the heading “Credit and Collection” the
check box for Credit Check is not checked and disabled.
So in order to do the desired settings we need to enable the check box as shown below.
In order to save the settings Click and then

After enabling the settings for Credit Check” we need to enter the amount for credit limits. So in
order to enter the amount Click
As we can see that the currency rates and limits for the customer are not yet defined. So we
need to define the currency first
In order to define the currency Click TAB
So search for the required currency and select it as shown below
After selecting the currency enter the amount of Credit Limit as shown below
Save the settings changed
Apply the settings changed as shown

After making the required settings for Credit Limits we need to run three requests. These are
a) Initialize Credit Summaries Table
c) Credit Check Processor
d) Credit Exposure Report
a) Initialize Credit Summaries Table :
So Go to View>Request>Submit a New Request
Enter the parameters

Submit the request by clicking the “Submit” button

Click “Yes “since we want to run another request by following the same process as earlier
explained

c) Credit Check processor

After submitting these three requests try to find the status of these requests. If the requests are
in Pending or Running statuses refresh the requests till completion as shown below.
After running and completing these three requests go to Order Management Module and submit
another request
Responsibility: Order Management Super User
Navigation:
In order to see the credit limit position of the customer for whom we set the credit limit we need
to run a request for a report called “Credit Exposure Report”.
Enter all the mandatory parameters

After having made all the required settings for the credit limits process we need to start with the
process. As the O2C cycle goes we need to proceed with the drafting of Sales Order.
3 Drafting of Sales Order

Responsibility : Order Management SuperUser
Navigation:
Enter all the details pertaining to the order like name of the customer the sales person and
others details . Also enter the Price list from where the system will capture the price for the item
to be ordred as shown below.
Since we did the set up with “Acomrede” as the custeomer so we will take “Acomrede” as the
customer to test the settings.
As we can see that we have selected the price list . This is required so that the moment we enter
the line items the system should automatically populate and pick the price of the item provided
the price for that item has been defined in the inventory module.
2.1 Line Items:

After entering the main and other details we need to enter the Line Items
Before saving the line items we need to Check the Availablity of inventory for that item so that
we will not get holds during pick release at the time of shipping.
So Click
Save it
So after saving you can see that the sales order number has been generated by the system.
Click “Book Order”

As we can see that we have got Credit Check Hold
Reason is that the amount of the order exceeds the credit limit earlier set for the customer.
4 Shipping of the Order

After booking of the order we need to do the shipping of the same. So the required navigation is
Navigation :
Now Query with your sales order number so booked

Click
As we can see that the results are infront of us. As mentioned we need to start with the Pick
Relese of the order
The various steps in shipping are
4.1 Auto-Create Delivery:

In order to do it just click on the “Details” field and then go for right click of the mouse and select
“Auto-create Delivery” as shown below.
After this step as you can see that we the delivery number has been generated automatically.
Launch Pick Release:

In order to do it just click on the “Details” field and then go for right click of the mouse and select
“Launch Pick Release” as shown below.
After doing all these processes for Pick Release we need to find the status of a concurrent
request so automatiucally run from the system.
Refersh till completion
As we can see that we have completed the process of “Pick Release” but we have got a
warning. So the reason for this warning is the “Credit Check Hold” which we got earlier .
Resolving Credit Limit and Credit Hold Issue:

As we can see that we have completed the process of “Pick Release” but we have got a
warning. So the reason for this warning is the “Credit Check Hold” which we got earlier .Being
more precise the reason is the amount of the order exceeds the credit limit earlier set for the
customer.So in order to release the hold automatically go to receivables and issue a receipt on
account of the extra amount.
So for this we need the amount of sales order booked. So in order to know the same go to Order
Organizer and check the Sales order amount
Sales Order
Amount
Switch Responsibility to Receivables Manager
Responsibility : Receivables Manager
Navigation:
Click to apply the receipt

Since we need to deposit the recipt amount to his account so select the “On Account” option for
applying this receipt.
Save it
Again run the “Credit Exposure Report” as earlier shown to confirm the thing.
Switch Responsibility to Order Management
Continue the process of shipping
Navigation :
Query with your sales order number
Click
1) Launch Pick Release

Ship Confirm :
Click
As you can see that the is unchecked
So we need to uncheck the option to complete the process or else we need to do this step as a
part of the process separately manually which takes lot of time.
OK
5 Auto-invoice
5.1 Auto-Invoice Master Programme

Switch responsibility to Receivables
Navigation:
Click “No”
Refresh till Completion
In order to view the output of the request Click
As you can see that in the output so generated after running of the request states that the
processes selcted for the request have been processed successfully.
Viewing of the Invoice
Navigation:
Click find button
Select the shipped Sales Order Number and try to see the invoice.
Click
Click to view the invoice
Create Accounting :
After creation of receipts we need to do create accounting for this transaction. so for this
Go to Tools >Create Accounting >Create Final Accounting as shown below

View Accounting
After succesfully creating accounting we need to view the accounting events . So for this
Go to Tools>View Accounting
6 Receipts
Navigation :
Enter the required Receipt Number and the receipt method and also the transaction number as
shown below.
Click and apply to the Invoice Number
Save it
6.1 Create Accounting

After creation of receipts we need to do create accounting for this transaction. so for this
Go to Tools >Create Accounting >Create Final Accounting as shown below

6.2 View Accounting

After succesfully creating accounting we need to view the accounting events . So for this
Go to Tools>View Accounting
7 Remittances
Navigation :
Select the receipt numbers and the customer details as shown below
Click “Auto Create”

Click “Yes”
8 Clearing of the Receipts

Switch Responsibility to “Cash Management”
Navigation :
Click
Select the required receipt

Click
9 Bank Reconciliation
Navigation:
Click
In order to check the avialability of any transactions for reconcliation.

Click
Click “Find”
Select the required receipt
Click
Click
In the above screenshot you can see that the selected receipt is not present in the list. This is
the evidence of the fact that the selected receipts has been succesfully reconciled.
Here we can see that the “Receipt Control Totals” and “Receipt Line Totals” don’t match
So let’s match both the sides

So now you can see that both the line Total and the Control Totals are matching as shown in the
above screenshot.
Click
So here you can see that the previously selected receipt transaction is not in the list. This is the
evfidence of the fact that the selected receipt transaction is reconciled.
Save it
10 Transfer to GL:
Switch Responsibility to Receivables Manager
Submit a request for transfering the transactions performed as part of O2C cycle to the General
Ledger (GL)
Refersh till Completion
So here you can see that the request ran by us is complete but has error. This error most
probably is due to the SLA settings.
11 CONCLUSION :
The document gives a step by step description of the Order to Cash Cycle. This document can
be taken as a manual for underatnding of the O2C process from the perspective of cedit limits
process and includes description of all the required settings for the credit limits process.

Oracle Order To Cash (O2C) Process With Credit Limits Training Manual

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Oracle Order To Cash (O2C) Process with Credit Limits Training Manual O2C

2.1 Line Items:......................................................................................................................... 18

4.1 Auto-Create Delivery:....................................................................................................... 21

5.1 Auto-Invoice Master Programme....................................................................................... 33

6.1 Create Accounting ............................................................................................................ 43

So the prerequisites of the O2C process is to

2) Running of three requests viz

a) Initialize Credit Summaries Table

b) Credit Exposure Import

c) Credit Check Processor

d) Credit Exposure Report

2 Setting up of the Credit Limit

Query for your Customer

So enter the Site Details

Since Credit limit is a part of the profile definition

So to make the desired and required settings Click TAB

In order to save the settings Click and then

order to enter the amount Click

In order to define the currency Click TAB

So search for the required currency and select it as shown below

Save the settings changed

Apply the settings changed as shown

a) Initialize Credit Summaries Table

b) Credit Exposure Import

c) Credit Check Processor

d) Credit Exposure Report

a) Initialize Credit Summaries Table :

So Go to View>Request>Submit a New Request

Enter the parameters

Submit the request by clicking the “Submit” button

b) Credit Exposure Import

c) Credit Check processor

Responsibility: Order Management Super User

Enter all the mandatory parameters

3 Drafting of Sales Order

2.1 Line Items:

Click “Book Order”

As we can see that we have got Credit Check Hold

4 Shipping of the Order

Now Query with your sales order number so booked

The various steps in shipping are

4.1 Auto-Create Delivery:

Launch Pick Release:

Refersh till completion

Resolving Credit Limit and Credit Hold Issue:

Switch Responsibility to Receivables Manager

Responsibility : Receivables Manager

Click to apply the receipt

Switch Responsibility to Order Management

Continue the process of shipping

Query with your sales order number

1) Launch Pick Release

As you can see that the is unchecked

5.1 Auto-Invoice Master Programme

Refresh till Completion

In order to view the output of the request Click

Viewing of the Invoice

Click find button

Click to view the invoice

Go to Tools >Create Accounting >Create Final Accounting as shown below

Click and apply to the Invoice Number

6.1 Create Accounting

Go to Tools >Create Accounting >Create Final Accounting as shown below