Transaction Types

[ Receivables in R12 ] By: - Ankit Verma

In which order Transaction types have to be defined? 1. Credit memo 2. Invoice 3. Debit memo 4. Chargeback 5. Deposit
6. Guarantee

How to define Transaction types in Receivables?

Navigation:

Example Invoice Transaction Type Screen:

Example Credit Memo Transaction Type Screen:

Details about the columns given in the above screens: Fields Class Description Categorize transaction types by assigning them to a class of Invoice, Credit Memo, Debit Memo, Deposit, Guarantee, or Chargeback. Transaction types are displayed in windows as lists of values Creation Sign Positive, Negative, or Any Sign for initial sign of transaction. Positive required for guarantees and deposits Transaction Status Assign a status of Open, Closed, Pending, or Void to this transaction Note: When creating transactions via Autoinvoice, even if you use a transaction type that is setup with Transaction Status = Closed, once the data is interfaced, it will have an OPEN status. Autoinvoice does not provide a feature to interface CLOSED or INCOMPLETE transactions. Printing Option Terms Specify whether to print transactions with this transaction type default payment terms for this transaction, this field is disabled when Class is Bills Receivable or Credit memo Open Receivable Select this check box to have transactions update customer balances and aging reports. Required for deposits and guarantees. This simply indicates whether this transaction's balance impacts a Customer's Receivable balance Post to GL Select this check box to post transactions with this transaction type to the Oracle General Ledger. Required for deposits and guarantees

Allow Freight

indicates whether or not you can associate freight to this transaction type

Default Tax Classification

defaults tax classification code for this transaction. This value is only relevant in release 11.5 or a release 12 instances that are using Ebusiness tax setups defaulted from an upgraded release 11.5 instance

Natural Application Only

Restrict the direction in which invoices, debit memos, deposits, guarantees, credit memos, and on-account credits can be updated by applications entered against them. Natural application does not apply to adjustments and chargebacks. If Natural Application Only is selected, clear the Allow Overapplication check box

Allow Over application

Allow items to be overapplied. Check box defaults to cleared for guarantees and deposits. If this check box is selected, clear Natural Application Only check box. In other words, activities against this transaction can cause the sign of the balance to change Example: an original positive amount ($150), can change to negative amount (-$50) due to receipt applications

Interaction between Natural Application Only and Allow Over application

"Natural Application Only" Checked and "Allow Overapplication" Not Checked Oracle Receivables allows any application, other than adjustments and chargebacks, that reduces the transaction amount toward or to zero without changing the sign of the transaction. "Natural Application Only" Unchecked and "Allow Overapplication" Checked or Unchecked Oracle Receivables allows any application that reduces or increases the transaction, even if the application changes the sign of the transaction.

Receivable and Revenue accounts Freight Account

for all classes of transaction types

if Allow Freight is selected and the transaction type class is set to Invoice, Debit Memo, Credit Memo, or Chargeback.

Clearing Account

if the transaction type class is set to Invoice, Debit Memo, Credit Memo, or Chargeback. The account holds differences between the revenue amount and selling price (pro-rated discounts from Oracle Order Entry).

Unbilled Account

if the transaction type class is set to Invoice, Debit Memo, Credit Memo, or Chargeback. Used when billing in arrears

Unearned Account Tax Account

if the transaction type class is set to Invoice, Debit Memo, Credit Memo, or Chargeback. Used when billing in advance. if Tax Calculation is selected and the transaction type class is set to Invoice, Debit Memo, Credit Memo, or Chargeback

You cannot change following options of a transaction type which has been once used Class Creation Sign Open Receivable checkbox Post to GL checkbox Allow Adjustment posting checkbox

Transaction Type with BR class always has Transaction Status as Open.

Creation Sign of Transaction Type of Bills Receivable class, Deposit class & Guarantee class is always Positive Sign. Moreover you cannot Uncheck/Check boxes of: Open Receivable checkbox Post to GL checkbox Natural Application Only checkbox [ Allow Overapplication checkbox cannot be checked] Allow Freight checkbox Default Tax Classification checkbox You cannot define Invoice Type if class of Transaction Type is one of the following: Invoice Bills Receivable Credit Memo Debit Memo

Payment Terms & Credit Memo Type cannot be defined if class of Transaction Type is either Bills Receivable or Credit Memo. Transaction Defaults: Transaction Source: Can default the transaction type Determines the transaction numbering

 Transaction type can default: The transaction class Payment terms (if not set at the customer) Customer can default: Ship-to and bill-to address Payment terms Salesperson If the transaction type assigned to this invoice allows freight charges, enter freight amounts. If the transaction type does not allow over-application, an amount that would reverse the sign of the balance of the debit item cannot be entered. Assign a rule set to each of transaction types and enter a default rule set in the System Options window. Receivables uses the following hierarchy to determine which application rule set to use, stopping when one is found: Transaction Type System Options Overapplication Rule This rule applies any remaining receipt amount after the balance due for all charges has been reduced to zero. If the transaction type for the debit item has the Allow Overapplication check box set to Yes, Receivables applies the remaining amount to the lines, making the balance due negative. If the item's transaction type has Allow Overapplication set to No, you can either place the remaining amount on-account or leave it 'Unapplied'. When Receipt is reversed you may create a Debit Memo by selecting a Debit Memo Transaction Type. It automatically reverses entries passed and the deposit/invoice again gets available for receipt. The Account Details window does not display receipts, credit memos, onaccount credits, adjustments, and debit items that have a transaction type with Open EAS Oracle Apps(N) CollectionsCustomer Accounts transaction type with Open Receivables set to No. Transactions assigned to a transaction type with Open Receivables set to No do not update customer balances and therefore are not included in the standard aging and collection process.