Oracle Receivables An Overview

Oracle Receivables An Overview
Day 1
Agenda
Order to Cash lifecycle overview
Overview of Receivables Process
Setups
Manage Parties and Customer accounts
Process Invoice and Auto Invoicing
Process Receipts and Manual receipts
Period Close Process
Copyright 2006 Deloitte Development LLC. All rights reserved.
Order to Cash lifecycle overview
Order to Cash Lifecycle

Order Management
Enter
Shipping Execution
Book
Pick Release
Ship Confirm
AutoInvoice
Receivables
Invoice
Cash Management
Receipt
Bank Reconciliation
Order to Cash Lifecycle

Ordering:
Entering the order, pricing the order, booking the order,

scheduling (which can include checking ATP, placing demand, and reserving
on-hand Inventory), running pick release, and shipping the order.
Collecting:
Running AutoInvoice, generating invoices, collection efforts,

and receipt of payments.
Accounting:
Receipt information which is available to be used by Cash

Management to reconcile the bank statement and transferring accounting
information to the General Ledger.
Integration with other applications

Customer
Customer
Master
ORDER
Orders
MANAGEMENT
CRM Suite
Pricing
Inventory
Item
Information
Shipping
Invoices
Accounting
Accounting
General
Ledger
Receipts
Receivables
Cash
management
Order Management Process

Orders can be created from a number of different sources. New orders can be created by
entering the information or by copying existing orders. It can also be brought from EDI,
CRM, and other interfaces
Import from
*CRM or other
systems
EDI
Enter order
or return online
Copy an
order or return
Order Import
*Customer Relationship
Management includes:
iService, iStore,
Teleservice, Telesales,
Sales Online, iSupport
Pricing Process & Shipping Process

Pricing Process
The pricing engine supplies the initial unit price from a price list or customer agreement. It
will also apply any modifiers for which the order qualifies. Modifiers can either raise or lower
the initial unit price. They can be set to be applied manually or automatically. They can also
be set to only be applied after certain events like saving, booking, or shipping.
Entered
order line
Price list or
agreement
Modifiers
Unit price
Shipping Process
When the item is ready, it is pick released.
This creates the move order which can automatically detail where to get the item.
The items are brought from Inventory to the staging area.
The pick confirmation process in the system can automatically occur when you run pick
release.
Once the items are loaded on the truck from the staging area you can run the ship
confirm process.
When you run the ship confirm process the system can decrement Inventory and
update the sales order.
The information can then be transferred through AutoInvoice to Receivables for
invoicing the customer.
AutoInvoice Process
AutoInvoice Process
Invoice data can be sourced from a number of locations for example: Order
Management, Contracts or legacy systems.
When the data is brought into the Interface Tables, errors are pushed to the Interface
Exceptions Table to be corrected.
Correct data gets pushed into Receivables as invoices.
AutoInvoice Exceptions: Errors are sent to the Interface Exceptions Table where they
can be corrected. Once the lines are corrected, AutoInvoice can be rerun and invoices
created from the corrected lines.
Interface Tables
Invoice Data
Corrected Records
Invoices
Interface Exceptions
Receivables Process
Imported Invoices &

Manually created
Invoices
Post Receipts
Review and
Correct Data
Print Invoices
Collect Payments
Send Invoices
10
Cash Management Process

The final step of the process is to post entries to the General Ledger. The entries
travel from Cash Management to Receivables and then to the General Ledger.
Receive Bank
Statement
Post to
General Ledger
Load and Verify

Bank Statement
Enter Manual
Entries
Perform
Reconciliation
Review Results
11
Receivables overview
12
Receivables Overview in Order to Cash Process

The transactions are created either by importing them or by manually creating them. The
transactions can then be reviewed and corrected before being completed. Once completed,
they are ready to be printed and sent to the customer for payment. However, there is a
system option Allow Changes to Printed Transactions, which will allow the correction of
printed transactions as well. Then the transactions go through the collection process. Once
collected, the receipts are enter and applied. The transactions can be transferred to the
General Ledger once they are completed. Finally, the receipts can be transferred once they
are completely entered.
Transactions
Transfer to
General Ledger
Review and
Correct Data
Print and Send

Invoices
Enter Receipts
Collect Payments
13
Overview of Receivables Integration

Inventory
Legacy
General
Ledger
Item
Information
Orders
Orders &
Shipment
Receivables
Accounting
Contracts
Receipts
Order
Management
Service
Cash
Management
Leasing
14
Overview of the Transaction Process

Transactions can be copied in Receivables. A standard transaction would follow the path of
being reviewed, corrected, completed, printed, and sent to the customer. A receipt would be
entered against the transaction. The accounting information would be transferred to the
General Ledger after the transaction was completed.
Standard Transaction
Copy
Review and make corrections
Valid
transaction
Invalid
transaction
Complete, print and send to customer

Enter receipt
Void
Delete
Interface to
General Ledger
15
Overview of Other Invoice Operations

You can use an invoice to make copies. This process can be applied for invoices which will
be the same over a period of time.
Invoices can be created with or without rules. Invoices with rules can be imported or
manually created. The accounting rule indicates when revenue recognition should take
place. The invoicing rule indicates whether to bill in advance (the first period) or to bill in
arrears (the last period).
Invoice with Rules
Original Invoice
Invoice Copies
Accounting
Rules
Invoice Rules
Installments
16
Overview of Adjustments
Adjustments are entered into the system and proceed through a validation process before
being approved. Adjustments can increase or decrease the remaining balance. Each user
can have a different approval limit. If the adjustment is within the approval limit it is
automatically approved. If it exceeds the approval limit it is placed in a pending status
until approved by a user with the appropriate approval limit.
Adjustment
entry
Approval limit
$500
Validation
process
Approved
or Pending
17
Overview of Credit Memos

You use the Credit Transactions window to enter, update, and review credit memos
against specific invoices, debit memos, or commitments.
You create credit memos to reduce the balance due for a transaction. When you credit
a transaction, Receivables creates the appropriate accounting entries and reverses any
sales credit assigned to your salespeople.
Receivables lets you credit an entire invoice or specific invoice lines.
Enter
Update
Credit Transactions
Credit memos
Review
Invoices
Debit memos
Commitments
18
Overview of Receipts and Remittances

Receipts can be entered in one of three ways:
Manual: Which includes cash and miscellaneous receipts.
QuickCash: Which includes cash and AutoLockbox.
Automatic: Which includes credit cards, bills of exchange, direct debits, and ACH bank
account transfers.
Remittances are a group of receipts remitted to the same bank and bank account, similar to
bank deposit tickets.
Enter Receipts and
Remittances
Apply to invoice or
customer account
Transfer to General
Ledger
Update customer
balance
Reconcile
Reverse or Reapply
19
Overview of Collections
Identify past due items by reviewing information online and printing collections reports.
Contact the customer by sending statements, dunning letters or by a telephone call.
Record the customer contact activity and resolve any disputed items. Apply adjustments
and record bad debt
Identify past due

items
Record
bad debt
Contact customer
Apply
adjustments
Record activity
Resolve
disputed
items
Record
receipts
20
Setups
21
Required Setup Steps for Transactions

Before you can use customer invoices, the following must be set up:
Customers: Define Customers including Bill To and Ship To address for transaction
processing.
Receivables Transaction Types: Assign to transactions. Transaction types add
default information to the transactions..
AutoAccounting: Specifies the General Ledger accounts of transactions that you
enter manually or import using AutoInvoice.
Payment Terms: Determine the payment schedule and cash discount information
for customer invoices, debit memos, and commitments.
Transaction Sources: Assign to transactions to control transaction and batch
numbering and provide default information.
Remit-to addresses: Informs customers where to send payments.
System and Profile Options: Provides default values for some Receivables
operations, such as how Receivables processes data and controls the actions users
can perform.
22
Receivables Transaction Types

Receivables, Vision Operations (USA) (N) > Setup > Transactions > Transaction Types
You must set up transaction types before you can enter invoices.
Transaction Type determines:
If the transaction can be posted to the General Ledger (GL).
If the transaction is an open receivable.
If tax must be calculated, or freight can be entered.
The default credit memo type for an invoice.
The default invoice type, payment terms, etc.
Creation Sign: The creation sign of each transaction type is also controlled with a
setup here.
Transaction classes: Transaction types are dependent on seeded Transaction classes,
which are seven Invoice, DM, CM , Deposit, Guarantee, Chargeback, Bills Receivable.
Note
For guarantees and deposits, the creation sign must be Positive.
Transaction Type is setup at OU level.
23
AutoAccounting
Receivables, Vision Operations (USA) > Setup > Transactions > AutoAccounting
Oracle Receivables provides flexible setup for transaction accounting by using AutoAccounting
and determines the General Ledger (GL) accounts for invoices by determining a value for
each segment of the accounting flexfield.
Invoice
Salesperson = Joe Adams
Transaction Type = Invoice
1. Wrist Pad 2 @ 1,000
Revenue Account = 01-100-4505-201
Salesperson = Joe Adams
Account Type = Revenue
Segment Constant Value
Table Name
CO
01
CC
Salesreps
Account
Trans. Types
Product
Standard Line
Transaction Type = Invoice
Standard Line = Wrist Pad
24
Auto Accounting
Auto Accounting: This screen displays the Auto Accounting Segments

25
Payment Terms
Receivables, Vision Operations (USA) > Setup > Transactions > Payment Terms
Define standard payment terms to determine payment schedules and percentages of
discounts allowed.
The formula used to determine the amount due is:
Amount Due = Relative Amount/Base Amount x Invoice Amount.
For example: Relative Amount = 60%/Base Amount = 100% would be 60%
of Invoice amount.
Select the Credit Check check box to trigger Order Management credit check.
Enter the number of days before the due date that the invoice should be printed.
Allow discounts on partial payments by selecting the Allow Discount on Partial
Payments checkbox.
Specify how to allocate tax and freight on invoices with split terms: in the first
installment, or prorated across all installments.
Select the Last Day of Month check box or a specific day to send consolidated
invoices.
26
Payment Terms
Payment Terms: This screen displays the Payment Terms extended to customers. These
payment terms are used on invoices
27
Transaction Sources
Transaction sources are used to control transaction batching, numbering, and specify default
transaction types.
Select validation options for imported transactions.
Assign batch sources to invoices, debit memos, commitments, credit memos, and onaccount credits.
When setting up the Credit Memo Workflow, assign a Manual source.
Select the Copy Document Number to Transaction Number check box to use the same
value for both the document number and the transaction number for transactions
assigned to this source. You must check the box if using Gapless document sequences.
Control
10001
Invoice Batch
Defaults
10002
10003
Numbering
28
Transaction Sources
Transaction Source: This screen displays the Transaction Sources

29
System Options Relating to Transactions

Receivables, Vision Operations (USA) > Setup > System > System Options
Header Level Rounding: Assigning a special account for rounding differences when
converting foreign currency transactions to your functional currency. The Header Level
Rounding is enabled on the Accounting tab. Caution: It cannot be disabled once the box
has been selected and Header Level Rounding adds an additional line to every
transaction regardless of the currency.
Automatic Journal Import: Automatically import the batches you transfer by checking
this box on the Accounting tab. The value becomes the default value on the Run GL
journal Import field in the Run General Ledger Interface window.
Allow Change to Printed Transactions: Allow updates to printed transactions by
checking this box on the Trans and Customer tab.
Allow Transaction Deletion: Allow transaction to be deleted from Receivable after it
has been saved by checking this box on the Trans and Customer tab. Caution: Do not
enable this option if using gapless numbering of transactions.
30
System Options
System Options: This screen is used to define System Options

31
System Options

32
System Options

33
Overview of Receipt Setup

Set up receipts in the following order:
Receivables
activities
Remittance
bank
Bank
accounts
Receipt
source
Receipt
class and
payment
methods
Setup options:
AutoCash Rule Sets
Application Rule Sets
34
Types of Receivables Activities

You determine how Oracle Receivable accounts for various Receivables Activities by
specifying accounting rules.
Adjustment: You use activities of this type in the Adjustments window. You must
create at least one activity of this type.
Bank Error: You use activities of this type in the Receipts window when entering
Miscellaneous transactions. You can use this type of activity to help reconcile bank
statements using Oracle Cash Management.
Earned Discount: You use activities of this type in the Adjustments and the
Remittance Banks windows. Use this type of activity to adjust a transaction if payment
is received within the discount period (determined by the transaction's payment term).
Finance Charge: You use activities of this type in the Customers and System Options
window. You must define a finance charge activity if you include finance charges on
your statements or dunning letters. You can only define one activity of this type.
Miscellaneous Cash: You use activities of this type in the Receipts window when
entering Miscellaneous transactions. You must create at least one activity of this type.
Unearned Discount: You use activities of this type in the Adjustments and the
Remittance Banks windows. Use this type of activity to adjust a transaction if payment
is received after the discount period (determined by the transaction's payment terms).
35
Receivables Activity Setup

1. Select Type of Activity
2. GL Activity Source Options:
1.
Activity GL Account: Uses the General Ledger (GL) Account on the

Receivables Activity Screen.
2.
Revenue on Invoice: Uses the GL Account on the Invoice.
3.
Tax Code on Invoice: Uses the GL Account on the Tax Accounting window of
the Tax Code form.
4.
Distribution Set: Uses a predefined set of GL Accounts for miscellaneous cash

type activities only.
36
Receipt Class, Payment Method & Bank Account Relationship

The relationship between receipt class, payment, and bank account enables default
accounting. When a receipt is entered, a payment method and bank account are specified.
Then Oracle Receivables processes the receipt according to the receipt class that the
payment method is associated with, and the accounting for the receipt is derived from the
bank account of the payment method
Receipt class
Payment method
Payment method
Bank account
GL account
Bank account
GL account
37
Defining Banks
Before receipts can be recorded, banks must be defined.
Enter bank information, such as address, contact person, institution type, and
transmission and printing programs.
Define customer and supplier banks as well as internal banks.
Share banks with Oracle Payables, which uses these banks for remittance of payments.
Reconcile payments and receipts through Oracle Cash Management, which shares the
same bank information.
Receivables, Vision Operations (USA)v > Setup > Receipts > Banks
Banks can have one or more bank accounts for each physical bank.
Enter a separate bank account for each currency used at a given bank branch.
Select the Multiple Currency Receipts check box in the Receivables Options
tabbed region to allow deposits in currencies other than the currency of the bank
account.
The Multiple Currency Receipts check box can be selected only if the bank
account is in the functional currency.
Enter a cash account to debit for receipts that are remitted to each bank account.
Enter information about the contact person for each remittance bank account.
38
Bank Account and Branch definition
Banks: This screen displays the listing of Banks, country wise

39
Bank Account and Branch Creation
Banks: This screen displays the creation of new Banks and related branches.
40
Defining Receipt Classes

Receivables > Setup > Receipts > Receipt Classes
Receipt classes determine how Oracle Receivables processes receipts, by specifying:
Entry Method
Manual: Standard, quick, and lockbox receipts
Automatic: Automatic and credit card receipts
Remittance Method
No Remittance: Receipts that are not remitted.
Standard: Regular remittance.
Standard and Factoring: Both types in a batch.
Note: Cash receipts that will be reconciled in Oracle Cash Management must be
remitted.
Clearance Method
Direct: Clears receipt status as soon as the receipt is entered.
By Automatic Clearing: Runs a program to clear receipts.
By Matching: Clears receipts by reconciling them in Oracle Cash Management.
Note: Clearing happens when the receipt has cleared from the bank. This usually
indicates the funds are available, which is important for cash flow.
Payment method
You can define one or many payment methods to use for a receipt class.
Payment methods determine the automatic receipt attributes.
41
Receipt Classes
Receipt Classes: This screen is used to define receipt classes

42
Collectors
Collectors Collectors are defined in Receivable module and are attached to Customer /
Customer site.
43
Collections Aging Buckets
Use the Receivables Aging reports to review information about outstanding receivables
as of a specific date about your customer's current and past due invoices, debit memos, and
chargebacks. Receivables also gives you the option to age or summarize on-account credits,
unidentified payments, and on-account and unapplied cash amounts.
44
Profile Options
System Administrator > Profile > System
Profile Options control many functions in Receivables. Some examples are:
AR: Allow Over application in Lockbox: Controls how AutoLockbox handles
receipts when the payment amount is greater than the balance due of a transaction.
AR: CashAllow Actions: Determines whether you can create adjustments and
chargeback's when applying receipts in the Applications window.
AR: CashDefault Amount Applied: Determines the default value of the Amount
Applied field in the Receipts, Applications, and QuickCash windows when you enter an
application.
AR: Create Bank Charges: Determines whether users can create bank charges when
entering receipts in Receivables.
AR: Include Receipts at Risk in Customer Balance: Controls whether Receivables
displays items at risk and includes them calculating account balances in the Account
Details, Account Overview, and Customer Account windows.
AR: Invoices with Unconfirmed Receipts: Select whether to adjust or credit
invoices selected for automatic receipt.
45
System Profiles
System Profiles: This screen is used to define system profiles
46
Summary - Day 1
Today we have covered the following topics:
Overview of Order to Cash Cycle.
Overview of Receivables Process
Note: Appendix includes some screenshots of Order to Cash flow as well.
47
End of Day 1
48
Appendix - Screenshots
49
Order Entry
Order Entry Screen: This screen is for creating Sales Orders. Underlying Table is
OE_ORDER_HEADERS_ALL
50
Line Level & Other Information
Order Entry Screen: The Line Items Tab is used to enter details of Items ordered.
51
Book Order
Book Order:
The
FLOW_STATU
S_CODE
Column of
OE_ORDER_L
INES_ALL
changes from
Entered to
Booked.
52
Pick Release
Pick Release Screen: This screen is used to Pick & Release the orders which are Booked.
53
Shipping Transactions Form
Pick & Ship Screen: This screen is used to Ship the orders after Pick Release.
54
Price List
Price List: Price List screen shows the Prices attached with an Item. Same item may have
different prices at different time eg: seasonal Items like AC, Woolen Sweaters
55
Modifiers
Modifiers: The modifier provides price adjustments such as discounts, price breaks,
surcharges, coupons, item and term substitutions, and other item discounts.
56
Concurrent Program
Concurrent Program: The Pick Selection List Generation program is kicked off as a
background process.
57
Other Concurrent Programs
Concurrent Program: Other Concurrent Programs are also kicked off as a background
process as indicated above.
58
Delivery Tab
Shipping Transactions Screen: Delivery Tab shows deliveries that are created as part of
Shipping Process.
59
Ship Confirm
SO Screen: Flow_Status_Code changes to Shipped in Lines table as visible on Lines Tab.

60
Create Invoice
Run workflow background Process.
Navigation: Order Management >view >Requests
Workflow Background Process inserts the records RA_INTERFACE_LINES_ALL with
INTERFACE_LINE_CONTEXT
=
INTERFACE_LINE_ATTRIBUTE1 =
INTERFACE_LINE_ATTRIBUTE3 =
ORDER ENTRY
Order_number
Delivery_id
and spawns Auto invoice Master Program and Auto invoice import program which creates
Invoice for that particular Order.
61
Auto Invoice Import
Auto Invoice: Auto Invoice, a seeded concurrent program creates invoices against orders.
62
Invoice
The Invoice created can be seen using the Receivables responsibility.
Navigation: Receivables Super User> Transactions> Transactions
Query with the Order Number as Reference.
Underlying tables:
RA_CUSTOMER_TRX_ALL will have the Invoice header information.
The column INTERFACE_HEADER_ATTRIBUTE1 will have the Order Number.
RA_CUSTOMER_TRX_LINES_ALL will have the Invoice lines information.
The column INTERFACE_LINE_ATTRIBUTE1 will have the Order Number.
63
Invoice
Invoice: This screen shows the invoice created against SO. The reference filed indicates the
64
SO Number .
Invoicing & Accounting Rules
Invoicing and Accounting Rules: This screen is used to define the accounting rules for
invoices.
65
Transaction Types
Transaction Types: This screen is used to define valid Transaction Types.

66
Profile Values
Profile Values: This screen displays the values set for various profile options
67
GL Accounts
GL Accounts: This screen is used to define General Ledger Accounts

68
Tax Accounts
Tax Accounts: This screen is used to define Tax Accounts, state wise
69

Oracle Receivables An Overview

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Oracle Receivables An Overview

Copyright 2006 Deloitte Development LLC. All rights reserved.

Order to Cash lifecycle overview

Copyright 2006 Deloitte Development LLC. All rights reserved.

Order to Cash Lifecycle

Copyright 2006 Deloitte Development LLC. All rights reserved.

Order to Cash Lifecycle

Entering the order, pricing the order, booking the order,

Running AutoInvoice, generating invoices, collection efforts,

Receipt information which is available to be used by Cash

Copyright 2006 Deloitte Development LLC. All rights reserved.

Integration with other applications

Copyright 2006 Deloitte Development LLC. All rights reserved.

Order Management Process

Copyright 2006 Deloitte Development LLC. All rights reserved.

Pricing Process & Shipping Process

Copyright 2006 Deloitte Development LLC. All rights reserved.

Imported Invoices &

Copyright 2006 Deloitte Development LLC. All rights reserved.

Cash Management Process

Copyright 2006 Deloitte Development LLC. All rights reserved.

Load and Verify

Copyright 2006 Deloitte Development LLC. All rights reserved.

Receivables Overview in Order to Cash Process

Copyright 2006 Deloitte Development LLC. All rights reserved.

Print and Send

Overview of Receivables Integration

Copyright 2006 Deloitte Development LLC. All rights reserved.

Overview of the Transaction Process

Complete, print and send to customer

Copyright 2006 Deloitte Development LLC. All rights reserved.

Overview of Other Invoice Operations

Invoice with Rules

Copyright 2006 Deloitte Development LLC. All rights reserved.

Copyright 2006 Deloitte Development LLC. All rights reserved.

Overview of Credit Memos

Copyright 2006 Deloitte Development LLC. All rights reserved.

Overview of Receipts and Remittances

Copyright 2006 Deloitte Development LLC. All rights reserved.

Identify past due

Copyright 2006 Deloitte Development LLC. All rights reserved.

Copyright 2006 Deloitte Development LLC. All rights reserved.

Required Setup Steps for Transactions

Receivables Transaction Types

Copyright 2006 Deloitte Development LLC. All rights reserved.

Auto Accounting: This screen displays the Auto Accounting Segments

Transaction Source: This screen displays the Transaction Sources

System Options Relating to Transactions

Copyright 2006 Deloitte Development LLC. All rights reserved.

System Options: This screen is used to define System Options

System Options: This screen is used to define System Options

System Options: This screen is used to define System Options

Overview of Receipt Setup

Copyright 2006 Deloitte Development LLC. All rights reserved.

Types of Receivables Activities

Receivables Activity Setup

Activity GL Account: Uses the General Ledger (GL) Account on the

Revenue on Invoice: Uses the GL Account on the Invoice.

Distribution Set: Uses a predefined set of GL Accounts for miscellaneous cash

Copyright 2006 Deloitte Development LLC. All rights reserved.

Receipt Class, Payment Method & Bank Account Relationship

Bank Account and Branch definition

Banks: This screen displays the listing of Banks, country wise