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06-Jun-2011
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Whitepaper on R12 Customer Acceptance
Functionality
These are the two broad flows that OM supports – the Pre-billing and Post-billing
acceptances
Pre-Billing Acceptance:
In case of the pre-billing acceptance, the acceptance comes into picture before the
Invoicing activity.
The list of activities in pre-billing acceptance is as follows.
-> Record Acceptance – explicit or implicit
-> Line status moves to closed and line gets interfaced to AR
-> Invoice generation and Revenue Recognition happen subsequently.
Another feature that can be observed in this flow is that the Sales Order Line will be in
a new status called "Pending Pre-billing Acceptance"
Post-Billing Acceptance:
In case of the post-billing acceptance, the acceptance comes into picture after the
Invoicing activity.
The list of activities in post billing acceptance is as follows.
-> Invoice generation –> Revenue recognition
-> Record Acceptance – explicit or implicit
Line status moves to closed
Revenue Recognition happens once acceptance is completed
Another feature that can be observed in this flow is that the Sales Order Line will be in
Apart from the above, there are two more kinds of Acceptance viz.
Explicit acceptance
Implicit acceptance
In Explicit Acceptance Customer or Customer Sales Representative (CSR) logs into the
Order Information Portal or uses order import to record acceptance explicitly.
Once the expiration date has got elapsed, the above set of concurrent programs are
submitted and the Acceptance is recorded
Set up
======
There are two important setups that are required for the Customer Acceptance.
1. Enabling of the fulfillment Acceptance at the Order
Management System parameters form.
Navigation: Order Management Super User-> Setup->Parameters->Values.
Process flow:
To explain the functionality in detail for Custom acceptance we will take up three
different flows.
Step 1.
Deferral reason in Receivables Revenue Management should be setup.
Revenue Management Super User -> Contingency Definition
Step 2.
Enter the sales order from the Order Management Super User responsibility and select
the Acceptance name from the 'Others' tab of the sales order line.
Book the order, Pick-release the order and Ship-confirm the same.
Step 3.
After the line has been shipped run the Workflow Background Process for the OM order
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Whitepaper on R12 Customer Acceptance
Functionality
Line. A new status of the sales order line "Pending pre-billing acceptance" can be seen.
Step 4.
Explicit Acceptance can be done from Actions-> Fulfillment Acceptance. The same is
shown in Diag7.
The Fulfillment Acceptance action attribute has to be clicked to launch the OIP to record
explicit acceptance of goods and services.
Step 5.
Fulfillment Acceptance action attribute launches the OIP page.
In this page Acceptance Date is not populated and the Acceptance Status is 'Pending'.
To initiate Acceptance click on 'Go' button.
Step 6.
On the click of 'Go'
The user can enter information related to acceptance like Acceptance comments and
signature. The details given here will be available in Sales Order on re-querying.
Step 7.
On click of the Submit button, a confirmation message comes up indicating that
Acceptance/ rejection have been completed successfully.
After the confirmation the change in Acceptance date and Acceptance status is reflected
on the OIP, the Acceptance status is changed to 'Accepted' and the 'Acceptance Date' is
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Whitepaper on R12 Customer Acceptance
Functionality
populated with date value on which the Acceptance was done.
Step 8.
Customer Acceptance information recorded in the OIP page can be found on the others
tab of the sales order line. The same is shown in Diag12
Step 9.
After the Auto invoice concurrent program is run in Receivables responsibility, the
Invoice can be generated and the revenue recognition would follow.
Summary
With the Introduction of Customer Acceptance feature in Release 12, the order
fulfillment flow now has an additional step called "customer acceptance", where
customer accepts the goods either before or after billing happens.
This feature enables customer to defer invoicing and/or revenue recognition for the
shipped goods till the customer receives the shipment and accepts the material.
This paper deals with the setups for various Customer Acceptance set ups in AR's
Revenue Management module and Order Management where OM defaults the customer
acceptance deferral reason and its attributes from Receivables onto the sales order line