Chartwell/Books/Accounting/Oracle/Oracle.txt

Overview of Oracle Receivables

Oracle Receivables provides integrated functionality to perform day-to-day accounts receivable operations. Receivables functionality is managed from these Overview work areas: Billing, Receivables Balances, Revenue Management, and Credit Management.

All work areas provide access to general ledger account activities, including creating accounting, creating manual journal entries, and reviewing journal entries.
Billing Work Area

Use the Billing work area to perform tasks related to customer billing activities. Monitor and review incomplete transactions, and approve and research pending adjustments. Use AutoInvoice to import transactions from other systems and generate invoices and credit memos automatically according to your requirements. You can review and correct AutoInvoice import errors and resubmit AutoInvoice. Create new invoices, debit memos, credit memos, and on-account credit memos. Perform related activities to manage your transactions: update, duplicate, credit, adjust, dispute, and preview a transaction. You can also create a new customer record and manage existing customers from the Billing work area.
Receivables Balances Work Area

Use the Receivables Balances work area to perform tasks related to customer payment activities and the management of accounts receivable balances. Review actionable items, including open receipts and receipt batches, unapplied and on-account receipts and credit memos, receipt remittance batches, and funds transfer errors. Create receipts manually, import receipts using lockbox or spreadsheet, or create automatic receipts. Perform related activities to manage your receipts: apply, unapply, reverse, delete; create invoice adjustments or chargebacks during receipt application; and remit, clear, or risk eliminate factored receipts. You can manage receipt remittances: create, modify, and approve receipt remittance batches. You can also perform tasks related to managing accounts receivables balances, including reconciling receivables to the general ledger and managing receivables accounting period statuses.
Revenue Management Work Area

Use the Revenue Management work area to perform tasks related to revenue recognition and revenue adjustments. Run the Recognize Revenue program to generate revenue distribution records for invoices and credit memos that use invoicing and revenue scheduling rules. Perform revenue adjustments on one or more transactions, including scheduling and unscheduling revenue; reviewing, adding, and expiring revenue contingencies; and transferring sales credits. You can also manage revenue policies, revenue contingencies, and rules that assign revenue contingencies to transactions automatically.
Credit Management Work Area

Use the Credit Management work area to create credit profiles for your customers. The credit profile contains key information for establishing the creditworthiness of each of your customers, including credit classifications, credit limits, and credit review cycles. Review and evaluate specific credit authorization requests; run periodic reviews of the creditworthiness of your existing customers; review customer credit scores, and provide recommendations for customer credit. Build scoring models that calculate a credit score based on credit data specific to a customer; maintain detailed information about customer financial and accounting history; and create templates for different types of credit reviews that are automatically assigned to specific credit scenarios.
Customer Information

From either the Billing or Receivables Balances work area, you have access to manage both customer information and customer account activities, in summary and in detail. You can review customer account information by a single business unit, bill-to site, or across all business units and bill-to sites. For each customer account, you can review transactions and receipts, dispute and adjust transactions, and drill down to current or historical customer account activity.
Simple Configuration to Operate Receivables

You can create an operational Receivables environment with seven configurations. The remaining configurations are either optional or have predefined values.

If applicable, your Receivables configuration must include a plan to migrate your customer information from your legacy system.
Receivables Configuration Tasks

There are seven configuration tasks necessary to create an operational Receivables environment. Before you perform these tasks, you must ensure that you have completed all of the required implementation tasks for Oracle Financials.

Perform these seven tasks in the order indicated:

    Set Receivables System Options

    Set Receivables system options to define your Receivables environment. During Receivables setup, you specify your accounts, customer and invoice parameters, and how the AutoInvoice and Automatic Receipts programs operate.

    Define Receivables Activities

    Define receivables activities to create default accounting for all activities other than transactions and receipts, including, for example, miscellaneous cash, discounts, late charges, adjustments, and write-offs.

    Define AutoAccounting Rules

    Defining AutoAccounting is a required configuration task for processing customer billing.

    Define AutoAccounting to specify how you want Receivables to determine the default general ledger accounts for transactions. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivables, late charges, and AutoInvoice clearing (suspense) accounts using your AutoAccounting setup.

    Define Receipt Classes and Methods

    Defining receipt classes and receipt methods is a required configuration task for processing customer payments.

    Receipt classes determine the required processing steps for receipts to which you assign receipt methods with this class. These steps include confirmation, remittance, and clearance. Receipt methods specify accounting for receipt entries and applications, determine customer remittance bank account information, and configure automatic receipt processing and fund transfer error handling.

    Define Remit-to Addresses

    Define remit-to addresses to let your customers know where to send payment for open receivables. Receivables uses the addresses to provide default remit-to information when you enter transactions.

    You must provide a remit-to address to complete a transaction.

    If you use AutoInvoice, but you haven't defined a remit-to address for a particular customer site, AutoInvoice rejects all transactions for which it couldn't determine a remit-to address.

    Define Approval Limits

    Define approval limits to determine whether a Receivables user can approve adjustments or credit memo requests. You define approval limits by document type, amount, and currency.

    Define Statement Cycles

    Define statement cycles to control when you create customer statements. You assign statement cycles to customer profiles.
    
    
    Predefined Receivables Data in Subledger Accounting
    
    Oracle Receivables provides predefined data for Oracle Subledger Accounting that you can use to integrate the two applications.
    
    When you run Create Receivables Accounting, the program accepts the default accounting information from AutoAccounting without change and uses the predefined data to create accounting in the subledger. Subledger Accounting transfers the final accounting to General Ledger.
    Note
    
    You can optionally define your own subledger accounting rules to overwrite the default accounts from the accounting events.
    
    Receivables predefines one application in Subledger Accounting named Receivables. Most of the data that Receivables predefines for Subledger Accounting is associated with the Receivables application.
    
    This table shows the attribute values that Receivables predefines for the Receivables application:
    
    Field
    	
    
    Value
    
    Application Name
    	
    
    Receivables
    
    Drill-down Procedure
    	
    
    AR_DRILLDOWN_PUB_PKG.DRILLDOWN
    
    Use Security
    	
    
    Yes
    
    Policy Function
    	
    
    XLA_SECURITY_POLICY_PKG.MO_POLICY
    
    Journal Source
    	
    
    Receivables
    
    Third Party Control Account Type
    	
    
    Customer
    
    Subject to Validation
    	
    
    No
    
    Calculate Reporting Currency Amounts
    	
    
    Yes
    
    This table lists the setup information that Receivables predefines for the event entities:
    
    Application
    	
    
    Entity Name
    	
    
    Description
    	
    
    Gapless Event Processing
    
    Receivables
    	
    
    Adjustments
    	
    
    Adjustments
    	
    
    No
    
    Receivables
    	
    
    Receipts
    	
    
    Receipts
    	
    
    No
    
    Receivables
    	
    
    Transactions
    	
    
    Transactions
    	
    
    No
    
    Receivables predefines process categories for the Receivables application. These process categories are:
    
        Adjustments
    
        Miscellaneous Receipts
    
        Standard Receipts
    
        Third Party Merge
    
        Transactions
    
    Additional considerations for Receivables predefined data for subledger accounting include:
    
        Event Classes and Event Class Options
    
        Sources, Source Assignments, and Accounting Attribute Assignments
    
        Journal Line Rules
    
        Account Rules
    
        Journal Entry Rule Set
    
        Accounting Method
    
    Event Classes and Event Class Options
    
    Receivables predefines event classes for each event entity that belongs to the Receivables application.
    
    This table lists the event classes that Receivables predefines for the Receivables application:
    
    Entity
    	
    
    Event Class Name
    
    Adjustments
    	
    
    Adjustment
    
    Receipts
    	
    
    Miscellaneous Receipt
    
    Receipts
    	
    
    Receipt
    
    Transactions
    	
    
    Chargeback
    
    Transactions
    	
    
    Credit Memo
    
    Transactions
    	
    
    Debit Memo
    
    Transactions
    	
    
    Invoice
    
    Accounting event class options define attributes of an event class. Receivables defines the accounting event class options for each predefined event class.
    
    This table lists the accounting event class options that Receivables predefines for the Receivables application:
    
    Event Class
    	
    
    Process Category
    	
    
    Default Journal Category
    	
    
    Transaction View
    	
    
    Balance Types
    
    Adjustment
    	
    
    Adjustments
    	
    
    Adjustment
    	
    
    AR_ADJ_INF_V
    	
    
    Actual
    
    Bills Receivable
    	
    
    Bills Receivable
    	
    
    Bills Receivable
    	
    
    AR_TRX_INF_V
    	
    
    Actual
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipts
    	
    
    Misc Receipts
    	
    
    AR_CR_INF_V
    	
    
    Actual
    
    Receipt
    	
    
    Standard Receipts
    	
    
    Receipts
    	
    
    AR_CR_INF_V
    	
    
    Actual
    
    Chargeback
    	
    
    Transactions
    	
    
    Chargebacks
    	
    
    AR_TRX_INF_V
    	
    
    Actual
    
    Credit Memo
    	
    
    Transactions
    	
    
    Credit Memos
    	
    
    AR_TRX_INF_V
    	
    
    Actual
    
    Debit Memo
    	
    
    Transactions
    	
    
    Debit Memos
    	
    
    AR_TRX_INF_V
    	
    
    Actual
    
    Invoice
    	
    
    Transactions
    	
    
    Sales Invoices
    	
    
    AR_TRX_INF_V
    	
    
    Actual
    Sources, Source Assignments, and Accounting Attribute Assignments
    
    Receivables predefines sources, source assignments, and accounting attribute assignments for Subledger Accounting.
    
    You can't make changes to predefined sources, source assignments, or accounting attribute assignments. However, you can define your own sources.
    
    If you choose to define your own journal line rules or accounting methods, you can override the default accounting attribute assignments.
    
    Use the Manage Subledger Transaction Objects task in Oracle Subledger Accounting to retrieve a list of Receivables sources for an event class:
    
        Navigate to the Manage Subledger Transaction Objects page.
    
        Select a Receivables event class: Adjustment, Bills Receivable, Chargeback, Credit Memo, Debit Memo, Invoice, Miscellaneous Receipt, Receipt.
    
        Click the View Source Assignments button.
    
        In the View Source Assignments page, review the available sources for the event class.
    
    Journal Line Rules
    
    Receivables predefines journal line rules for each predefined event class. Receivables specifies conditions for the use of each journal line rule.
    
    This table lists the journal line rules that Receivables predefines for the Receivables application:
    
    Event Class
    	
    
    Name
    	
    
    Balance Type
    	
    
    Side
    
    Adjustment
    	
    
    Adjustment
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Charge
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Default Receivable
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Deferred Tax
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Charge Nonrecoverable Tax
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Nonrecoverable Tax
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Tax
    	
    
    Actual
    	
    
    Credit
    
    Adjustment
    	
    
    Adjustment Transaction Creation Date
    	
    
    Actual
    	
    
    N/A
    
    Adjustment
    	
    
    Adjustment Transaction Created By
    	
    
    Actual
    	
    
    N/A
    
    Adjustment
    	
    
    Adjustment Transaction Last Updated Date
    	
    
    Actual
    	
    
    N/A
    
    Adjustment
    	
    
    Adjustment Transaction Last Updated By
    	
    
    Actual
    	
    
    N/A
    
    Chargeback
    	
    
    Chargeback Default Receivable
    	
    
    Actual
    	
    
    Debit
    
    Chargeback
    	
    
    Chargeback Revenue
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Default Deferred Tax Application
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Default Application
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Default Tax Application
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Refund Application
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Charges
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Default Receivable
    	
    
    Actual
    	
    
    Debit
    
    Credit Memo
    	
    
    Credit Memo Default Revenue
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Default Tax
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Rounding
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Unbilled Receivable
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Deferred Revenue
    	
    
    Actual
    	
    
    Credit
    
    Credit Memo
    	
    
    Credit Memo Product Type
    	
    
    Actual
    	
    
    N/A
    
    Credit Memo
    	
    
    Credit Memo Transaction Creation Date
    	
    
    Actual
    	
    
    N/A
    
    Credit Memo
    	
    
    Credit Memo Transaction Created By
    	
    
    Actual
    	
    
    N/A
    
    Credit Memo
    	
    
    Credit Memo Transaction Last Updated Date
    	
    
    Actual
    	
    
    N/A
    
    Credit Memo
    	
    
    Credit Memo Transaction Last Updated By
    	
    
    Actual
    	
    
    N/A
    
    Debit Memo
    	
    
    Debit Memo Charges
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Default Receivable
    	
    
    Actual
    	
    
    Debit
    
    Debit Memo
    	
    
    Debit Memo Freight
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Revenue
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Rounding
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Tax
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Unbilled Receivable
    	
    
    Actual
    	
    
    Debit
    
    Debit Memo
    	
    
    Debit Memo Deferred Revenue
    	
    
    Actual
    	
    
    Credit
    
    Debit Memo
    	
    
    Debit Memo Product Type
    	
    
    Actual
    	
    
    N/A
    
    Debit Memo
    	
    
    Debit Memo Transaction Creation Date
    	
    
    Actual
    	
    
    N/A
    
    Debit Memo
    	
    
    Debit Memo Transaction Created By
    	
    
    Actual
    	
    
    N/A
    
    Debit Memo
    	
    
    Debit Memo Transaction Last Updated Date
    	
    
    Actual
    	
    
    N/A
    
    Debit Memo
    	
    
    Debit Memo Transaction Last Updated By
    	
    
    Actual
    	
    
    N/A
    
    Invoice
    	
    
    Invoice Charges
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Default Receivable
    	
    
    Actual
    	
    
    Debit
    
    Invoice
    	
    
    Invoice Freight
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Revenue
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Rounding
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Tax
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Unbilled Receivable
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Deferred Revenue
    	
    
    Actual
    	
    
    Credit
    
    Invoice
    	
    
    Invoice Product Type
    	
    
    Actual
    	
    
    N/A
    
    Invoice
    	
    
    Invoice Transaction Creation Date
    	
    
    Actual
    	
    
    N/A
    
    Invoice
    	
    
    Invoice Transaction Created By
    	
    
    Actual
    	
    
    N/A
    
    Invoice
    	
    
    Invoice Transaction Last Updated Date
    	
    
    Actual
    	
    
    N/A
    
    Invoice
    	
    
    Invoice Transaction Last Updated By
    	
    
    Actual
    	
    
    N/A
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Bank Charges
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Cleared Cash
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Confirmed Cash
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Short Term Debt
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Factored Cash
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Miscellaneous Cash
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Remitted Cash
    	
    
    Actual
    	
    
    Credit
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipt Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt On Account Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Freight
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Revenue
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Rounding
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Suspense Revenue
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Unbilled Revenue
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Application to Earned Revenue
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Bank Charges
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Cleared Cash
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Credit Card Chargeback Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Chargeback Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Confirmed Cash
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Currency Rounding
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Short Term Debt
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Default Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Deferred Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Earned Discount
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Earned Discount on Freight
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Earned Discount Nonrecoverable Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Earned Discount on Revenue
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Earned Discount on Tax
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Exchange Gain
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Exchange Gain Loss
    	
    
    Actual
    	
    
    Gain/Loss
    
    Receipt
    	
    
    Receipt Exchange Loss
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Factored Cash
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Payment Netting Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Prepayment Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Refund Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Remitted Cash
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Unapplied Cash
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Unapplied Cash
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unapplied for Gain Loss lines
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unearned Discount
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Unearned Discount on Freight
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unearned Discount on Nonrecoverable Tax
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Unearned Discount on Revenue
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unearned Discount on Tax
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unidentified Cash
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Write-Off Application
    	
    
    Actual
    	
    
    Credit
    
    Receipt
    	
    
    Receipt Reversed Unapplied for Unidentified Receipt
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Reversed Unidentified Balance Line
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unapplied for Unidentified Receipt
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unidentified Balance Line
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Unapplied Reversed Cash
    	
    
    Actual
    	
    
    Debit
    
    Receipt
    	
    
    Receipt Bill To Site Receivable Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Clearing Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Freight Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Revenue Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Tax Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Unbilled Receivable
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Bill To Site Unearned Account
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Creation Date
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Created By
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Last Updated Date
    	
    
    Actual
    	
    
    N/A
    
    Receipt
    	
    
    Receipt Last Updated By
    	
    
    Actual
    	
    
    N/A
    Account Rules
    
    Receivables predefines account rules. When Subledger Accounting uses the predefined account rules that Receivables provides, it accepts the default accounting that Receivables generates using AutoAccounting without change.
    
    You can optionally define your own account rules for an Accounting Flexfield or for a segment. In this case, Subledger Accounting overrides the default accounts that Receivables generates, or individual segment values in the default accounts, when it creates the draft or final subledger accounting.
    
    The account rules that Receivables predefines for the Receivables application are as follows:
    
        Credit Memo Distribution GL Account
    
        Collection Bank Charges Account
    
        Collection Bank Account Cash Account
    
        Collection Bank Factoring Charges Account
    
        Distribution GL Account
    
        Remit Bank Unapplied Account
    
        System Gain GL Account
    
        System Loss GL Account
    
        Transaction Distribution GL Account
    
        Transaction Distribution GL Account with reference
    
    Journal Entry Rule Sets
    
    Receivables predefines journal entry rule sets that group the predefined journal line rules and account rules within each of the predefined event types. Receivables assigns each predefined journal entry rule set to all event types within an event class.
    
    This table lists the journal entry rule sets that Receivables predefines for the Receivables application:
    
    Event Class
    	
    
    Journal Entry Rule Set Name
    	
    
    Journal Line Rules
    
    Adjustment
    	
    
    Adjustments - Default Accrual
    	
    
    Adjustment, Adjustment Charge, Adjustment Charge Nonrecoverable Tax, Adjustment Default Receivable, Adjustment Deferred Tax, Adjustment Nonrecoverable Tax, Adjustment Tax
    
    Chargeback
    	
    
    Chargebacks - Default Accrual
    	
    
    Chargeback Default Receivable, Chargeback Revenue
    
    Credit Memo
    	
    
    Credit Memos - Default Accrual
    	
    
    Credit Memo Charges, Credit Memo Default Application, Credit Memo Default Deferred Tax Application, Credit Memo Default Receivable, Credit Memo Default Revenue, Credit Memo Default Tax, Credit Memo Default Tax Application, Credit Memo Deferred Revenue, Credit Memo Refund Application, Credit Memo Rounding, Credit Memo Unbilled Receivable
    
    Debit Memo
    	
    
    Debit Memos - Default Accrual
    	
    
    Debit Memo Charges, Debit Memo Default Receivable, Debit Memo Deferred Revenue, Debit Memo Freight, Debit Memo Revenue, Debit Memo Rounding, Debit Memo Tax, Debit Memo Unbilled Receivable
    
    Invoice
    	
    
    Invoices - Default Accrual
    	
    
    Invoice Charges, Invoice Default Receivable, Invoice Deferred Revenue, Invoice Freight, Invoice Revenue, Invoice Rounding, Invoice Tax, Invoice Unbilled Receivable
    
    Miscellaneous Receipt
    	
    
    Miscellaneous Receipts
    	
    
    Miscellaneous Receipt Bank Charges, Miscellaneous Receipt Cleared Cash, Miscellaneous Receipt Confirmed Cash, Miscellaneous Receipt Factored Cash, Miscellaneous Receipt Miscellaneous Cash, Miscellaneous Receipt Remitted Cash, Miscellaneous Receipt Short Term Debt, Miscellaneous Receipt Tax
    
    Receipt
    	
    
    Receipts - Default Accrual
    	
    
    Receipt Bank Charges, Receipt Chargeback Application, Receipt Cleared Cash, Receipt Confirmed Cash, Receipt Credit Card Chargeback Application, Receipt Currency Rounding, Receipt Default Application, Receipt Deferred Tax, Receipt Earned Discount, Receipt Earned Discount Nonrecoverable Tax, Receipt Exchange Gain Loss, Receipt Factored Cash, Receipt On Account Application, Receipt Payment Netting Application, Receipt Prepayment Application, Receipt Refund Application, Receipt Remitted Cash, Receipt Short Term Debt, Receipt Tax, Receipt Unapplied Cash, Receipt Unearned Discount, Receipt Unearned Discount on Nonrecoverable Tax, Receipt Unidentified Cash, Receipt Write-Off Application, Unapplied Cash
    
    Receipt
    	
    
    Receipt - Basis Journal Entry Rule Set
    	
    
    Receipt Application to Earned Revenue, Receipt Application to Freight, Receipt Application to Revenue, Receipt Application to Rounding, Receipt Application to Suspense Revenue, Receipt Application to Tax, Receipt Application to Unbilled Revenue, Receipt Bank Charges, Receipt Cleared Cash, Receipt Confirmed Cash, Receipt Currency Rounding, Receipt Earned Discount, Receipt Earned Discount on Freight, Receipt Earned Discount on Revenue, Receipt Earned Discount on Tax, Receipt Exchange Gain Loss, Receipt Factored Cash, Receipt On Account Application, Receipt Payment Netting Application, Receipt Prepayment Application, Receipt Refund Application, Receipt Remitted Cash, Receipt Short Term Debt, Receipt Unapplied Cash, Receipt Unapplied for Gain Loss lines, Receipt Unearned Discount, Receipt Unearned Discount on Freight, Receipt Unearned Discount on Revenue, Receipt Unearned Discount on Tax, Receipt Unidentified Cash, Receipt Write-Off Application, Unapplied Cash
    Accounting Method
    
    Receivables provides the predefined Receivables Default Accrual accounting method.
    
    Subledger Accounting provides the predefined Standard Accrual subledger accounting method that groups the predefined accounting methods for subledger applications. You can optionally create your own subledger accounting method.
    
    Receivables assigns the predefined Receivables Default Accrual accounting method to the predefined Standard Accrual subledger accounting method. You can assign this subledger accounting method to your ledgers.
    
    This table lists the assignments for the Receivables Default Accrual accounting method that Receivables predefines for the Receivables application:
    
    Event Class Assignments
    	
    
    Event Type Assignments
    	
    
    Create Accounting
    	
    
    Journal Entry Rule Set Assignments
    
    Adjustment
    	
    
    All
    	
    
    Yes
    	
    
    Adjustments - Default Accrual
    
    Chargeback
    	
    
    All
    	
    
    Yes
    	
    
    Chargebacks - Default Accrual
    
    Credit Memo
    	
    
    All
    	
    
    Yes
    	
    
    Credit Memos - Default Accrual
    
    Debit Memo
    	
    
    All
    	
    
    Yes
    	
    
    Debit Memos - Default Accrual
    
    Invoice
    	
    
    All
    	
    
    Yes
    	
    
    Invoices - Default Accrual
    
    Miscellaneous Receipt
    	
    
    All
    	
    
    Yes
    	
    
    Miscellaneous Receipts
    
    Receipt
    	
    
    All
    	
    
    Yes
    	
    
    Receipts - Default Accrual
    
    You can copy the predefined Receivables Default Accrual accounting method and update the accounting method with new attributes, according to your business requirements.
    
    The following steps provide general guidelines for copying and updating the predefined Receivables Default Accrual accounting method:
    
        Create a mapping set for the new attribute values.
    
        Create an accounting rule based on the mapping set.
    
        Duplicate the predefined journal entry rule set you want and assign the new accounting rule.
    
        Duplicate the predefined accounting method assigned to your ledger.
    
        In the new accounting method, assign an end date to the applicable predefined journal entry rule set assignment and assign the new journal entry rule set.
    
        Activate the new accounting method. This sets the journal entry rule sets to Active.
    
        Assign the new accounting method to your ledger.
    
    Related Topics
    
        Accounting Attribute Assignments
        
        
Receivables Accounting Event Model

An accounting event is a business event in Receivables that has an accounting impact. For example, creating or applying a receipt is an accounting event.

Not all business events have an accounting impact, but you can decide which events you want to monitor as accounting events. You can modify the accounting setup to create accounting for some events and not for others.

Subledger Accounting categorizes accounting events as event types. Event types are grouped into event classes that in turn are grouped into event entities. The overall grouping of these components is called an event model. The Receivables accounting event model is predefined for you, and includes each Receivables event class and its life cycle. This accounting event model forms the basis for creating subledger accounting.

As the foundation of the event model, Receivables contains predefined event entities. An event entity enables Subledger Accounting to handle the accounting for similar business events in a consistent manner. The event entities for Receivables are:

    Transactions

    Receipts

    Adjustments

    Bills Receivable

Each event entity is associated with one or more event classes. An event class represents a category of business events for a particular activity or document. Event classes group similar event types and enable the sharing of accounting definitions.

An event type represents a business operation that you can perform for an event class. An accounting event has both an event class and an event type that affect how the Create Receivables Accounting process determines the subledger accounting for it. Event types provide the lowest level of detail for storing accounting definitions.
Transactions Event Entity

This table describes the predefined event classes and event types for the Transactions event entity.

Event Class
	

Event Types

Chargeback
	

Chargeback Created

Credit Memo
	

Credit Memo Created

Credit Memo Updated

Debit Memo
	

Debit Memo Created

Debit Memo Updated

Invoice
	

Invoice Created

Invoice Updated
Receipts Event Entity

This table describes the predefined event classes and event types for the Receipts event entity.

Event Class
	

Event Types

Miscellaneous Receipt
	

Miscellaneous Receipt Created

Miscellaneous Receipt Reverse

Miscellaneous Receipt Updated

Receipt
	

Receipt Created

Receipt Reverse

Receipt Updated
Adjustments Event Entity

This table describes the predefined event classes and event types for the Adjustments event entity.

Event Class
	

Event Types

Adjustment
	

Adjustment Created
Bills Receivable Event Entity

This table describes the predefined event classes and event types for the Bills Receivable event entity.

Event Class
	

Event Types

Bills Receivable
	

Bills Receivable Created

Bills Receivable Updated        
    
    
    Reference Data Sets in Receivables
    
    Use reference data sets to share the values in your Receivables reference data objects either across business units or within one business unit only.
    
    Receivables includes a predefined Common reference data set. Use the Common set to share reference data that you want to make available to all business units. For example, you can make the transaction types and transaction sources created in each business unit available to all other business units.
    Create business unit-specific data sets for reference data for use by one business unit only. For example, each business unit may want to create and maintain its own salespersons and memo lines.
    Note
    You must create business unit-specific reference data sets for Customer Sites and Customer Account Relationships. All other reference data objects can use the predefined Common set.
    This tables lists the reference data objects in Receivables that are assigned a reference data set.
    
    Receivables Reference Data Objects
    Reference Data Object 	Method of Sharing
    Transaction Types 	Common Set or BU-Specific
    Transaction Sources 	Common Set or BU-Specific
    Payment Terms 	Common Set or BU-Specific
    Remit-to Addresses 	Common Set or BU-Specific
    Memo Lines 	Common Set or BU-Specific
    Salespersons 	Common Set or BU-Specific
    Customer Sites 	BU-Specific Only
    Customer Account Relationships 	BU-Specific Only
    AutoCash Rule Sets 	Common Set or BU-Specific
    AutoMatch Rule Sets 	Common Set or BU-Specific
    Application Exception Rule Sets 	Common Set or BU-Specific
    Revenue Scheduling Rules 	Common Set or BU-Specific
    Revenue Contingencies 	Common Set or BU-Specific
Lockboxes 	Common Set or BU-Specific

ranslated Display of Transaction Type, Transaction Source, and Receipt Method

You can display the translated names of your transaction types, transaction sources, and receipt methods in your local language on important Receivables pages and windows.

In certain countries it is a requirement to display the names of these objects in the local language.

Use these three lookup types to create lookup codes with the translation in the local language for each corresponding object:

    Transaction Type: ORA_AR_TRANSLATED_TRX_TYPE lookup type
    Transaction Source: ORA_AR_TRANSLATED_TRX_SOURCE lookup type
    Receipt Method: ORA_AR_TRANSLATED_RCPT_METHOD lookup type

Use these values for each lookup code:

    Lookup Code: Numerical identifier of the object.
    Reference Data Set: Common Set or any custom set.
    Meaning: Translated name of the object in the local language.
    Description: Description of the translated object.

Before you enter lookup codes with translated names under one of these lookup types, complete these prerequisites:

    Collect the numerical identifiers for the transaction types, transaction sources, and receipt methods that you want to display in translation.
    Create a list of translated names in advance of entering the corresponding lookup codes.
    Log in under the language that you intend to enter lookup codes for.

To find the numerical identifiers for transaction types and transaction sources:

    Navigate to the Setup and Maintenance work area.
    Navigate to the Manage Transaction Types page or Manage Transaction Sources page.
    Click the Search button to display all transaction types or transaction sources.
    Select View > Columns > Transaction Type Identifier or Transaction Source Identifier to display this column.
    Make note of the identifiers for the transaction types and transaction sources that you want to translate.

To find the numerical identifiers for receipt methods:

    Navigate to the Setup and Maintenance work area.
    Navigate to the Manage Receipt Class and Methods page.
    Click the Search button to display all receipt classes.
    Open the first receipt class that you want in the Edit Receipt Class and Methods page.
    Select the first receipt method that you want.
    Select View > Columns > Receipt Method Identifier to display this column.
    Make note of the receipt method identifier.
    Repeat these steps for all receipt methods in all receipt classes that you want.

When you have completed translation of the objects you need and collected the corresponding identifiers, use the Manage Receivables Lookups task to enter the lookup codes under each lookup type.

In this example, you want to display the transaction type Invoice_1 in French. The translated name of this transaction type is Facture_1. You confirm that the transaction type identifier for Invoice_1 is 001.

To create the lookup code for this translated transaction type:

    Log in under the French language.
    Navigate to the Setup and Maintenance work area.
    Search for the setup task Manage Receivables Lookups.
    In the Manage Receivables Lookups page, search for the ORA_AR_TRANSLATED_TRX_TYPE lookup type.
    Enter a new row for the lookup code.
    In the Lookup Code field, enter 001.
    In the Reference Data Set field, enter Common Set.
    If not selected, enable the Enabled option.
    In the Start Date field, enter the date from which to display the transaction type in French.
    In the Meaning field, enter Facture_1.
    Note
    There is no validation on the text you enter in lookup code fields. You must ensure that the translated name of the object that you enter in the Meaning field matches the original language name exactly.
    In the Description field, enter French translation of Invoice_1.
    Save your work.

    The French translation of this transaction type will appear on Receivables pages and windows.

Add as many translated name lookup codes that you need for both new and existing transaction sources, transaction types, and receipt methods. You may want to create a procedure for regular updates to all objects that require translated display.

You can create lookup codes under the ORA_AR_TRANSLATED lookup types in all the languages your system supports. You must log in under each language separately and update the translated names and descriptions for each lookup code in that language.
Ledger and Legal Entity Document Sequencing in Receivables

You can set up your primary ledger to use document sequencing in Receivables at the ledger level or legal entity level.

If you enable document sequencing at the legal entity level, then if you have more than one legal entity assigned to the same ledger, you can assign separate document sequences to Receivables transactions, adjustments, and receipts belonging to each legal entity.

Legal entity level document sequencing helps you conform to local and governmental authority requirements, while still being able to organize multiple legal entities under the same primary ledger.

Review these guidelines for document sequencing in Receivables:

    Document Sequencing in Receivables

    Receivables Document Categories

    Chronological Document Sequencing

    Chronological Document Sequencing and Manual Transactions

    Chronological Document Sequencing and AutoInvoice

Document Sequencing in Receivables

To use document sequencing in Receivables, in the Sequencing section of the Specify Options page of your primary ledger, perform one or both of these tasks:

    Set the Sequencing By option to Ledger or Legal Entity.

    Optionally enable the Enforce Document Sequencing option for Receivables.

If you perform step 1 and step 2, then document sequencing is always used in the ledger or all legal entities assigned to the ledger. You must assign a document sequence to every document category generated by Receivables events.

If you perform step 1 but not step 2, then you can optionally assign document sequences to the Receivables document categories that meet your business requirements. For example, you can use sequential numbering for receipt processing only and not for transactions.
Receivables Document Categories

If the primary ledger is enabled for document sequencing at the legal entity level (Sequencing By option set to Legal Entity), then Receivables creates a document category for each of these Receivables events in all legal entities assigned to the ledger:

    Invoice transaction type

    Credit memo transaction type

    Debit memo transaction type

    Bills receivable transaction type

    Standard receipt

    Adjustment

To assign a document sequence to a document category:

    Navigate to the Manage Document Sequence Categories page.

    Search for the document categories that you want.

    You can use the Category Code field to limit your search by entering, for example, Invoice or Receipt.

    Review the search results to find the document category that you want

    If necessary, update the category name according to your requirements.

    Save your changes.

    Navigate to the Manage Receivables Document Sequences page.

    Search for the document sequence name that you want, or create a new document sequence.

    In the Search Results section, update or complete the document sequence setup according to your requirements.

    In the Assignments section, select the document category to assign to this document sequence.

    Save your changes.

For each Receivables event, the document sequence number is generated when the following related action takes place:

    Transactions: At the time of either saving or completing the transaction, depending on the setting of the Receivables system option Document Number Generation Level for the applicable business units.

    Adjustments: When the adjustment is submitted.

    Receipts: When the receipt is submitted.

    Bills Receivable: When the bill receivable is completed.

These rules apply to Receivables document sequencing:

    Document sequence date is the accounting date (not, for example, the transaction date or receipt date).
    Note

    If a bill receivable requires drawee acceptance, then Receivables uses the transaction date instead of the accounting date to assign the document number. This is because a bills receivable document number is generated when the bill is completed, not accepted.

    You can't change the legal entity on any transaction that has a document sequence number.

    By default, you can't delete any transaction or receipt that has a document sequence number. If the Receivables system option Allow payment deletion is enabled, then you can delete receipts and bills receivable transactions only for the applicable business units.

Chronological Document Sequencing

Document sequencing uses the accounting date as the document sequence date. To help ensure reliable document sequencing for your transactions, you can enforce the sequencing of document numbers in chronological order.
Note

Chronological document sequencing applies to invoice, credit memo and debit memo transactions only, either entered manually or imported using AutoInvoice. It doesn't apply to receipts, adjustments, or bills receivable.

To enable chronological document sequencing on Receivables transactions, in the Sequencing section of the Specify Options page of your primary ledger perform these three tasks:

    Set the Sequencing By option to Ledger or Legal Entity.

    Enable the Enforce Document Sequencing option for Receivables.

    Enable the Enforce Chronological Order on Document Date option.

You must perform all three steps for chronological document sequencing. Enabling the Enforce Chronological Order on Document Date option enforces the correlation between the document sequence accounting date and the transaction accounting date. This prevents Receivables from creating a transaction with an accounting date earlier than the accounting date of the last sequenced document within the same document sequence.

For example, you create an invoice with an accounting date of 01-Jan-2014. This invoice is assigned the document number 100. The next invoice you create is assigned the document number 101 provided the accounting date of the invoice is 01-Jan-2014 or later. If the accounting date is earlier than 01-Jan-2014, then Receivables doesn't create the transaction.
Chronological Document Sequencing and Manual Transactions

If you're using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then you can enforce chronological document sequencing on transactions created manually in your transaction type setup.

To enforce chronological document sequencing on transactions created manually:

    Navigate to the Create or Edit Transaction Type page.

    Enable the No future dates with chronological document sequencing option.

    Complete the transaction type setup according to your requirements.

    Assign this transaction type to the applicable transactions.

When you use this transaction type with transactions you create manually, then Receivables won't create the transaction if both the transaction and accounting dates are in the future.
Chronological Document Sequencing and AutoInvoice

If you're using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then for AutoInvoice you must set the Receivables system option Accounting Dates Out of Order. Setting this option determines how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

In the Receivables System Options page: Billing and Revenue tab: AutoInvoice section, set the Accounting Dates Out of Order field to Reject or Adjust:

    Reject: If the transaction accounting date is out of order within the document sequence, reject the transaction and transfer it to the error table.

    Adjust: If the transaction accounting date is out of order within the document sequence, adjust the accounting date to conform to the document sequence accounting date.

Related Topics

    What legal entity is assigned to a transaction?
    Accounting Date Derivation During AutoInvoice Import
    Document Sequences
    Document Sequence Categories

How AutoInvoice Processes Transactions with Document Sequencing

If the primary ledger is enabled for document sequencing, AutoInvoice validates and assigns document numbers to transactions according to the requirements of the ledger settings.
Note

If an imported transaction line already has a document number, then AutoInvoice accepts this document number without further validation.
Settings That Affect AutoInvoice Processing with Document Sequencing

If the primary ledger option Enforce Chronological Order on Document Date is enabled, then you must set the Receivables system option Accounting Dates Out of Order. Setting this option determines how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

Before you run the Import AutoInvoice program, you must also create and assign document sequences to the document categories of the transaction types that you plan to assign to imported transactions.
How Transactions with Document Sequencing Are Processed

For the most complete example, if the primary ledger is set for document sequencing at the legal entity level, AutoInvoice processes transactions in this way:

    Validate and group transaction lines into transactions.

    Derive the legal entity for each transaction and assign the legal entity to the transaction.

    If the transaction doesn't have an accounting date, then derive the accounting date.

    If the primary ledger option Enforce Chronological Order on Document Date isn't enabled:

        Retrieve the document sequence for the document category of each transaction type assigned to transactions.

        Assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

    If the primary ledger option Enforce Chronological Order on Document Date is enabled:

        Order transactions by legal entity and then by transaction type.

        Retrieve the document sequence for the document category of each transaction type assigned to transactions.

        Order transactions by document sequence and then by accounting date in ascending chronological order.

        Compare the document sequence accounting date to the accounting date of the transaction.

        If the transaction accounting date is equal to or later than the document sequence accounting date, assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

        If the transaction accounting date is earlier than the document sequence accounting date, retrieve the value of the Receivables system option Accounting Dates Out of Order.

        If the Accounting Dates Out of Order option is set to:

            Reject: Reject the transaction and transfer the transaction to the error table.

            Adjust: Update the transaction accounting date with the document sequence accounting date.
            Note

            If the document sequence accounting date is in a closed period, then adjust this date to the first open accounting period.

        Assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

Can I share document sequences across ledgers or business units?

If document sequencing is enabled for a ledger, it isn't recommended to share the same document sequence across ledgers or business units.

Document sequencing uses the accounting date as the document sequence date. Because ledgers can have different accounting periods open, each ledger could derive a different accounting date for the same document sequence.

Because a document category is created for each transaction type you create, best practice is to create and maintain a separate set of transaction types in each business unit.
Receivables Activity Types

Receivables activity types provide default accounting information for all activities in Receivables other than transactions and receipts.
Using Receivables Activity Types

Adjustments

You use activities of this type when creating adjustments. You must create at least one activity of this type.

There are also three related activities that are reserved for internal use only:

    Chargeback Adjustment

    Adjustment Reversal

    Chargeback Reversal

You must define general ledger accounts for the Chargeback Adjustment activity before creating chargebacks.

When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities.

Bank Error

You use activities of this type when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Cash Management.

Bills Receivable Funds Recovery

You use activities of this type when you need to unapply a receipt from a bill receivable. Because you can't reverse the receipt in Cash Management, you use this activity to create a negative miscellaneous receipt and apply it to Bills Receivable Funds Recovery.

Claim Investigation

You use activities of this type when you create a claim investigation application against a receipt for a transaction or non-transaction underpayment or overpayment. You must define a general ledger account for claim investigation receipts that use the Claim Investigation activity.

Credit Card Chargeback

You use activities of this type when recording credit card chargebacks. You must define a general ledger clearing account for the Credit Card Chargeback activity that Receivables provides before recording credit card chargebacks.

Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one Credit Card Chargeback activity within a business unit can be active at a time.

Credit Card Refund

You use activities of this type when processing refunds to customer credit card accounts. This activity includes information about the general ledger clearing account to use to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.

Earned Discount

You use activities of this type to adjust a transaction if payment is received within the discount period, as determined by the payment terms on the transaction.

Late Charges

You use activities of this type to define a late charge policy. You must define a Late Charges activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate Late Charges activity for penalties.

Miscellaneous Cash

You use activities of this type when entering miscellaneous receipts. The Miscellaneous Cash activity uses a distribution set to automatically distribute miscellaneous cash across various accounts. You must create at least one activity of this type.

If the Tax Rate Code Source for this activity is Activity, then you must define asset and liability tax rate codes to account for tax on miscellaneous receipts and miscellaneous payments.

Payments

You use activities of this type when applying a receipt against other open receipts. You must define a general ledger clearing account to use when offsetting one receipt against another receipt. Only one Payments activity within a business unit can be active at a time.

Prepayments

You use activities of this type when creating prepayment receipts. You must define a general ledger account for prepayment receipts that use the Prepayments activity. Only one Prepayments activity within a business unit can be active at a time.

Receipt Write-off

You use activities of this type when writing off receipts. You must define the general ledger account to credit when you write off an unapplied amount or an underpayment on a receipt.

Refund

You use activities of this type to process automated non-credit card refunds. You must define the general ledger clearing account to use to clear refunds. You must create at least one activity of this type. Only one Refund activity within a business unit can be active at a time.

Short Term Debt

You use activities of this type to record advances made to creditors by the bank when bills receivable are factored with recourse. You select a short-term debt receivables activity when you create or update remittance banks to use with bills receivable remittance receipt methods.

Unearned Discount

You use activities of this type to adjust a transaction if payment is received after the discount period, as determined by the payment terms on the transaction.

Related Topics

    PCI DSS Credit Card Processing Requirements

GL Account Source

When you define a Receivables activity, you use the GL Account Source to indicate how Receivables derives the accounts for the expense or revenue generated by the activity.
GL Account Source Options

Activity GL Account

Allocate the expense or revenue to the general ledger account that you specify for the Receivables activity. If the activity type is Bank Error, Late Charges, Prepayments, or Receipt Write-off, you can only select this option.

Distribution Set

Allocate the expense or revenue to the distribution set that you specify. This value is only used with Miscellaneous Cash activities.

Revenue on Invoice

Allocate the expense or revenue net of any tax to the revenue accounts specified on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.

If the revenue on the invoice is unearned, then AutoAccounting derives the anticipated revenue accounting distribution accounts and amounts. Receivables then uses this information to allocate the adjustment or discount amount to these derived revenue accounts.

Tax Rate Code on Invoice

Allocate the net portion using the expense/revenue accounts specified by the tax rate code on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.

ax Rate Code Source

When you define a receivables activity, you use the Tax Rate Code Source to indicate how Receivables allocates tax amounts for the activity.
Tax Rate Code Source Options

None

Allocate the entire tax amount according to the GL Account Source you specified. You use this option if you don't want to account for tax separately.

Activity

Allocate the tax amount to the asset or liability tax accounts specified by the activity.

Invoice

Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You can't choose this option if the activity type is Miscellaneous Cash or Late Charges.

Enable the Recoverable option to indicate that the tax for this activity is recoverable. Don't enable this option if tax is nonrecoverable.
Note

In the event of a tax adjustment to an invoice with zero amount tax distributions, you can<61>t set the adjustment activity Tax Rate Code Source to Invoice.

Examples of Using Each AutoCash Rule

You create an AutoCash rule set from a combination of the six AutoCash rules. You enter the rules in the order in which you want to use them to apply a receipt to an open debit item.

The AutoCash rules are:

    Match Payment with Invoice

    Clear the Account

    Clear Past Due Invoices

    Clear Past Due Invoices Grouped by Payment Terms

    Apply to the Oldest Invoice First

    Combo Rule

When you apply a receipt, Receivables uses the first rule in the AutoCash rule set. If the first rule in the set doesn't find a match, Receivables uses the next rule in the sequence, and so on until it can apply the receipt.

These examples illustrate how each rule applies receipts to transactions and updates customer balances.
Match Payment with Invoice

The Match Payment with Invoice rule applies a receipt to a single invoice, debit memo, or chargeback only if the receipt amount exactly matches the amount of the debit item. If more than one debit item has an open amount that matches the receipt amount, Receivables applies the receipt to the item with the earliest due date. If more than one debit item has the same amount and due date, Receivables applies the receipt to the item with the lowest payment schedule ID number (internal identifier).

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the remaining amount due on the debit item. The rule ignores the value of the Apply partial receipts option.

For example, consider the following scenario:

Item/Option
	

Value

Discounts
	

Earned Only

Late Charges
	

No

Receipt
	

$1800

Receipt Date
	

14-JAN-03

Discount Grace Days
	

5

The invoice details are:

Invoice Number
	

Invoice Amount
	

Discount
	

Payment Terms
	

Invoice Date
	

Due Date

600
	

$2000
	

$20
	

10% 10/Net 30
	

01-JAN-03
	

30-JAN-03

The payment terms assigned to this invoice include a 10% discount if the invoice is paid within 10 days, and the open balance calculation on the AutoCash rule set allows for earned discounts. Even though the invoice is paid after the 10 day period, Receivables adds the 5 discount grace days, making this invoice eligible for a 10% discount.

The remaining amount due on the invoice on January 14 is $1800. Since the remaining amount due matches the receipt amount, the receipt is applied. If there had been no discount grace days, Receivables couldn't apply the receipt because the remaining amount of the invoice would be $2000.
Clear the Account

The Clear the Account rule applies a receipt only if the receipt amount exactly matches the customer open balance. Receivables includes all open debit and credit items when calculating the customer open balance. Open credit items include credit memos, on-account credits, and on-account and unapplied cash. The rule ignores the value of the Apply partial receipts option.

The Clear the Account rule uses the following equation to calculate the open balance for each debit item:

Open Balance = Original Balance + Late Charges - Discount

Receivables then adds the balance for each debit item to determine the total account balance. The rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an unapplied or on-account receipt to a debit item.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the customer open balance.

For example, consider the following scenario:

Item/Option
	

Value

Late Charges
	

Yes

Items in Dispute
	

Yes

Receipt
	

$590

This table shows the customer activity:

Past Due Debits/Credits
	

Invoice Amount
	

Late Charges
	

In Dispute

Invoice 45
	

$500
	

$40
	

Yes

Invoice 46
	

$300
	

$0
	

N/A

Credit Memo 100
	

$50
	

N/A
	

N/A

Unapplied Cash
	

$200
	

N/A
	

N/A

Since the Late charges and Items in dispute options are enabled, the open balance for this customer is $590. Because the receipt amount matches the customer open balance, the receipt can be applied.

If the receipt amount didn't exactly match the customer account balance, Receivables would use the next rule in the set to attempt to apply the receipt.
Clear Past Due Invoices

The Clear Past Due Invoices rule applies a receipt only if the receipt amount exactly matches the customer past due account balance. Receivables includes all open past due debit and credit items when calculating the past due account balance. The rule ignores the value of the Apply partial receipts option.

The Clear Past Due Invoices rule only applies the receipt to items that are currently past due. A debit item is considered past due if the invoice due date is earlier than or equal to the date of the receipt currently being applied. Receivables uses the receipt date for unapplied and on-account cash, and the credit memo date for credit memos and on-account credits, to determine whether to include these amounts as part of the customer past due account balance.

For example, if you apply a receipt with a receipt date of 10-JAN-03, all unapplied and on-account cash, and all credit memos and on-account credits, that have a transaction date (receipt date or credit memo date) equal to or earlier than 10-JAN-03 are included when calculating the customer past due account balance.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the customer past due account balance. The settings of the Late charges and Items in dispute options may prevent a past due debit item from being closed, even if the receipt amount matches the customer past due account balance.

For example, consider the following scenario:

Item/Option
	

Value

Late Charges
	

No

Items in Dispute
	

No

Receipt
	

$420

This table shows the customer activity:

Past Due Debits/Credits
	

Invoice Amount
	

Late Charges
	

In Dispute

Invoice 209
	

$300
	

$0
	

N/A

Invoice 89
	

$250
	

$0
	

Yes

Invoice 7
	

$120
	

$30
	

N/A

Since the Late charges and Items in dispute options aren't enabled, Receivables doesn't include Invoice 89 ($250) or late charges for Invoice 7 ($30) in the calculation of the customer past due account balance. Therefore, the past due account balance for this customer is $420. Because the receipt amount matches the customer past due account balance, the receipt is applied. However, Invoice 7 and Invoice 89 are still open, past due debit items.
Clear Past Due Invoices Grouped by Payment Terms

The Clear Past Due Invoices Grouped by Payment Terms rule applies a receipt only if the receipt amount exactly matches the sum of the customer credit memos and past due invoices. This rule is similar to the Clear Past Due Invoices rule, but it first groups past due invoices by payment terms and uses the oldest transaction due date within the group as the group due date.

A debit item is considered past due if the invoice due date is earlier than the date of the receipt currently being applied. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer account balance.

For example, if you apply a receipt with a receipt date of 10-JAN-03, credit memos that have a transaction date equal to or earlier than 10-JAN-03 are included. Credit memos don't have payment terms, and are therefore included in each group.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the sum of the customer credit memos and past due invoices. The settings of the Late charges and Items in dispute options may prevent a past due debit item from being closed, even if the receipt amount matches the sum of the customer credit memos and past due invoices.

For example, consider a $900 receipt applied on 25-JUN. This table shows the related customer activity:

Transaction Number
	

Payment Terms
	

Due Date
	

Invoice Amount

1
	

A
	

25-MAY
	

$500

2
	

A
	

25-JUN
	

$200

3
	

A
	

25-JUN
	

$200

4
	

B
	

20-JUN
	

$900

5
	

C
	

25-MAY
	

$905

Receivables groups these transactions as follows:

    Group 1: Transactions 1,2,3 Amount: $900 Group Due Date: 25-MAY

    Group 2: Transaction 4 Amount: $900 Group Due Date: 20-JUN

    Group 3: Transaction 5 Amount: $905 Group Due Date: 25-MAY

Since both Groups 1 and 2 match the receipt amount, Receivables selects the group with the oldest due date (Group 1) and applies the receipt to the transactions in this group.
Apply to the Oldest Invoice First

The Apply to the Oldest Invoice First rule applies receipts to customer debit and credit items, starting with the item with the oldest due date. Receivables uses the values specified for the AutoCash rule set open balance calculation to determine the oldest outstanding item for the customer.

For example, consider the following scenario:

Item/Option
	

Value

Apply Partial Receipts
	

Yes

Late Charges
	

No

Receipt
	

$200

This table shows the customer activity:

Invoice Number
	

Invoice Amount
	

Late Charges
	

Due Date

801
	

$0
	

$35
	

01-DEC-02

707
	

$450
	

$0
	

01-JAN-03

If you compare only the due dates for the two invoices, invoice 801 is the oldest invoice. However, Receivables also checks the open balance calculation and automatic matching rule options for the AutoCash rule set. Since the Late charges option isn't enabled, Receivables ignores invoice 801 (because the remaining amount only consists of late charges) and applies the $200 receipt to invoice 707.

If the Apply partial receipts option weren't enabled, Receivables couldn't apply this receipt and would look at the next rule in the sequence.
Combo Rule

The Combo Rule applies a receipt to two invoices, debit memos, or chargebacks only if the receipt amount exactly matches the amount of the two debit items. If more than one combination of two debit items has a total open amount that matches the receipt amount, Receivables applies the receipt to the combination of items with the earliest due date. If more than one combination of two debit items has the same amount and due date, Receivables applies the receipt to the combination of items with the lowest payment schedule ID number (internal identifier).

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the remaining amount due on the debit items. The rule ignores the value of the Apply partial receipts option.

For example, a lockbox contains these five open invoices:

Invoice Number
	

Invoice Amount

101
	

$50.00

201
	

$200.00

301
	

$175.00

401
	

$372.00

501
	

$127.00

The lockbox contains a receipt for $572. Using the Combo Rule as the first AutoCash rule, the receipt is applied to invoices 201 and 401.
Example of Using an AutoCash Rule Set

This example demonstrates how to create and use an AutoCash rule set.

You create an AutoCash rule set to manage the payments received from Global Freight Carriers. You have an earned discount arrangement with this company but with no payment or discount grace days, and you don't add late charges for payments received beyond the due date.
Create the AutoCash Rule Set

Create the AutoCash Rule set using these values:

Field
	

Value

Open Balance Calculation: Discounts
	

Earned Only

Open Balance Calculation: Late Charges
	

No

Open Balance Calculation: Items in Dispute
	

No

Automatic Matching Rules: Apply Partial Receipts
	

Yes

Automatic Matching Rules: Remaining Remittance Amount
	

On Account

AutoCash Rule
	

1. Match Payment with Invoice

AutoCash Rule
	

2. Clear The Account

AutoCash Rule
	

3. Apply To The Oldest Invoice First
Process a Payment Using the AutoCash Rule Set

Global Freight Carriers has the following outstanding invoices, none of which are in dispute:

Number
	

Amount Remaining
	

Due Date
	

Discount Date
	

Discount Amount

123
	

$200
	

11-DEC-02
	

01-DEC-02
	

$20

124
	

$300
	

08-DEC-02
	

30-NOV-02
	

$30

125
	

$150
	

13-DEC-02
	

28-NOV-02
	

$15

A payment was entered for Global Freight Carriers for $600 with a deposit date of 10-DEC-02.

Using the AutoCash rule set that you created, Receivables processes the payment in this way:

    AutoCash rule 1, Match Payment with Invoice, fails because none of the customer open items have a remaining amount due that is equal to the amount of the receipt ($600).

    Receivables looks at AutoCash rule 2.

    AutoCash rule 2, Clear the Account, fails because the customer calculated account balance ($650) isn't the same as the amount of the receipt.

    Receivables looks at AutoCash rule 3.

    Receivables uses AutoCash rule 3, Apply to the Oldest Invoice First.

        Receivables first applies the receipt to the oldest invoice, Invoice 124 for $300, and performs these calculations:

            Since the discount date of 30-NOV-02 has passed and the Discount field is set to Earned Only, the $30 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

            Because the Late Charges option is set to No, late charges aren't included in the customer open balance calculation. The remaining receipt amount is now $300.00.

        Receivables now applies $200 to the next oldest invoice, Invoice 123, and performs these calculations:

            As with Invoice 124, the discount date for Invoice 123 has passed and the $20 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

            Because the Late Charges option is set to No, late charges aren't included in the customer open balance calculation. The remaining receipt amount is now $100.

        Receivables applies the remaining $100 to Invoice 125 ($150) as a partial receipt because the Apply partial receipts option is set to Yes.
        Note

        If the Apply partial receipts option were set to No, Receivables couldn't apply the remaining amount to Invoice 125. Instead, it would be placed on account, because the Remaining Remittance Amount option is set to On Account.

            As with the other invoices, the discount date for Invoice 125 has passed and the $15 discount is no longer available.

            If there are no late charges for this invoice, the amount due remaining is reduced from $150 to $50, and remains open.

How is an AutoCash rule set selected and used?

During payment processing, Receivables uses the Match Receipts By rules to attempt to match receipts to open transactions, and either apply receipts automatically or present recommendations for receipt application.

If transactions can't be matched or transaction information isn't available, Receivables uses the AutoCash rule set, defined for the customer profile either at the customer site or customer account level, to apply the receipt.

If the customer doesn't have an AutoCash rule set assigned to a profile, Receivables uses the AutoCash rule set assigned to system options and the number of discount grace days defined in the customer site or customer account profile to apply the receipt.

If none of the rules in the AutoCash rule set apply, Receivables places the remaining amount either unapplied or on-account, depending on the setting of the Remaining Remittance Amount option on the AutoCash rule set.

During lockbox processing, if you set up a Match Payment with Invoice AutoCash rule and a Receipt Application Exception rule with tolerance limits for automatic adjustments, lockbox will look for and apply an underpaid receipt plus tolerance limit amount to an applicable transaction.
Why can't the AutoCash rule apply a receipt to a related customer account?

You can only use the Apply to the Oldest Invoice First rule to pay for transactions of a related customer account.

The rule applies the receipt to the transaction with the oldest due date selected from all transactions belonging to all sites of the related customer account.
How can I use partial receipts?

Use the AutoCash rule set Apply partial receipts option with the Apply to the Oldest Invoice First rule. Enabling this option lets you apply a receipt to a transaction with an amount less than the amount required to close the debit item.

If the AutoCash rule set doesn't use partial receipts but does include late charges in the open balance calculation, then Receivables can interpret a receipt application against a transaction amount plus late charges as a partial receipt.

For example, you intend to close a $100 transaction by applying a $100 receipt, but the transaction has since accumulated a $10 late charge. If the Apply partial receipts option isn't enabled, Receivables can't apply the $100 receipt to the new $110 open debit item.
Approval Limits Document Types

You can define approval limits for your users for specific transaction activities and amount ranges per currency. The document types identify the transaction activities that a user can approve.
Document Types

Adjustment

Define Adjustment approval limits by currency and amount. Receivables uses approval limits that have a document type of Adjustment when you create or approve an adjustment.

When you enter an adjustment outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.

Receipt Write-off

Define Receipt Write-off approval limits by currency and amount. Receivables uses approval limits with this document type whenever you attempt to write off either an unapplied receipt amount or an underpayment on a receipt.

You can't write off a receipt amount outside your approval limit range. In addition, the approval limits for write-offs are separate from, but can't exceed, the Receivables system options write-off amounts.

Credit Memo Refund

Define Credit Memo Refund approval limits by currency and amount. Receivables uses approval limits with this document type whenever you attempt to refund an on-account credit memo.

Related Topics

    How Adjustments to Transactions Are Calculated
    Guidelines for Applying Receipts and On-Account Credit Memos
    Write-offs and Receipts

How can I manage the users that have approval limits?

You can only assign approval limits to valid users that are defined in your organization. The combination of user, document type, and currency identify a specific approval limit record.

You can, for example, define multiple approval limit ranges for the same user and document type in each currency defined in your system.

Be sure to update approval limits when personnel changes occur.

Configure Manual Review of Credit Memo Requests

You can configure manual review and approval of credit memo requests against Receivables transactions using Oracle Business Rules. You can also capture additional information about the credit request and its related workflow notifications.

The manual credit memo request approval flow sends email or online notifications to each designated approver. Each approver can review the details of the credit request, as well as enter and update information related to credit memo approval.
Configure the Manual Workflow Notification Process

Configure these tasks in sequence to enable the manual credit memo request approval flow:

    FinArTrxnsCreditMemosAutomaticManual: By default this task is set to Automatic, for automatic creation of the credit memo (business rule 1=1). You can set this task to Manual to initiate the manual review and approval of the credit request.

    This task by itself doesn't enable the workflow notifications.

    FinArTrxnsCreditMemosCreationPostProcessing: After you enable the manual review of credit requests, use this task to enable the workflow notifications for manual reviews.

    You can configure multiple reviewers for this workflow using the task configuration assignee rules.

To configure the manual workflow notification process:

    Navigate to the BPM Worklist.

    From the user drop-down list, select Administration.

    Click the Task Configuration tab.

    In the Tasks to be Configured: Search field, enter *Credit and click the Go icon.

    This displays the human tasks (HT) available for Credit Memos.

    Select FinArTrxnsCreditMemosAutomaticManual and configure the task for manual credit request reviews using the output value HtOutcmeCreateManualCreditMemo.

    Select FinArTrxnsCreditMemosCreationPostProcessing and configure the workflow process for manual credit request reviews.

    Set up the routing rules for your workflow notifications.

    Set up the BIP template for the notification window according to your requirements.

    You can copy the standard template and modify its content using the BIP editing tools.

You can use additional attributes in Assignee rule conditions to configure the workflow routing rules. These attributes include:

    Salesperson Name

    Salesperson Email ID

    Sum of all Adjustments Amounts

    Sum of all Receipts Amounts

    Credit Memo Reason Code Descriptive Flexfield Attribute 1-15

    Invoice Line Description

    Collector Descriptive Flexfield Attribute 1-15

    Line Level Credit

    Invoice Line Type

    Invoice or Line Adjustments

    Receipts Applied

    Receivables System Options Descriptive Flexfield Attribute 1-15

    Item Number

    Line Amount Requested

    Transaction Information Descriptive Flexfield Attribute 1-15

    Revenue Scheduling Rule Start Date

    Revenue Scheduling Rule End Date

    Revenue Scheduling Rule Number of Periods

    Revenue Scheduling Rule Rule Type

    Revenue Scheduling Rule Name

    Tax Credit Amount Requested

Enable Privileges for Review Credit Memo Request

Use these three privileges to maintain user access to the Review Credit Memo Request page:

    IEX_REVIEW_CREDIT_REQUEST_PRIV (Review Credit Request): This privilege lets an approver:

        Access the Review Credit Request page.

        Use the View Transaction Activities button to access the original transaction activities.

        Enter comments in the Internal Comments field.

    IEX_UPDATE_DISPUTE_TYPE_PRIV (Update Dispute Type on Credit Request): This privilege lets an approver update the value in the Dispute Type field.

    IEX_UPDATE_REBILL_DETAILS_PRIV (Update Rebill Details on Credit Request): This privilege lets an approver update the values in the Rebill Number and Rebill Group fields.

Related Topics

    How You Use Oracle Analytics Publisher to Modify Templates for Use with Formats
    More Setup for Workflow Email Notifications
    Overview of Financials Configurable Workflow Notifications

How You Define Approval Groups for the Credit Memo Workflow

There are two predefined rule sets for the credit memo workflow: Collection agent rule set and Non-collection agent rule set.

These two predefined rule sets refer to two approval groups that aren't predefined. The approval groups are:

    Collection_Manager_Approval_Group

    Billing_Manager_Approval_Group

You must define the two predefined approval groups and assign users to the groups using these steps:

    Create one approval group called Collection_Manager_Approval_Group and one approval group called Billing_Manager_Approval_Group.

    Assign the users that you want to each approval group.
How You Implement Customer Statements

Print statements to provide the bill-to sites of your customer accounts with a complete record of their invoice, debit memo, chargeback, receipt, on-account credit, credit memo, and adjustment activity for a specified period.

To set up for statements, complete these tasks:

    Set Receivables System Options for Statements

    Define Remit-to Addresses

    Define Lookup to Print Custom Statements

    Define Statement Cycles

    Define Customer Site Profiles

Set Receivables System Options for Statements

Set the necessary Receivables system options for statement processing.

To set Receivables system options for statements:

    Navigate to the Create System Options or Edit System Options page.

    Select the applicable business unit.

    Click the Billing and Revenue tab, if it isn't already displayed.

    Enable the Print remit-to address option to print your remit-to addresses on your customer statements.

    Enable the Print home country option to print your home country on transactions and statements that refer to addresses in that country.

    In the Default Country field, select a country to use as your home country. This is the default country value for your remit-to addresses. The home country is also used in tax calculations and for taxpayer ID and tax registration number validation.

    Complete or update the rest of Receivables system options according to your requirements, and save.

Define Remit-to Addresses

Define remit-to addresses to provide customer bill-to sites with default remit-to information on statements and transactions.

To define a remit-to address:

    Navigate to the Create Remit-to Address page.

    In the Remit-to Address Set field, select a reference data set.

    The Country field displays the default country defined in Receivables system options. If necessary, select another country.

    Enter the address details and save.

    In the Receipt from Criteria section, click the Create icon to open the Create Receipt from Criteria window. Use this window to assign the remit-to address you just created to customer bill-to sites in specified locations.

    In the Country field, select a country to assign customer bill-to sites this remit-to address.

    If necessary, use the State field and Postal Code fields to further limit the remit-to address assignment, and save.

Define Lookup to Print Custom Statements

By default, the Create Customer Statements process generates a statement document for every bill-to site belonging to a customer account with a Preferred Delivery Method setting of Paper in the customer account or site profile. To enable the printing of custom statements for individual customer accounts or sites, you must define the AR_PRINT_STATEMENT_BURSTING lookup.

To define the lookup for custom statements:

    Navigate to the Setup and Maintenance work area.

    Search for the setup task Manage Receivables Lookups.

    In the Manage Receivables Lookups page, search for the AR_FEATURES lookup type.

    Enter a new row for the lookup code.

    In the Lookup Code field, enter AR_PRINT_STATEMENT_BURSTING.

    In the Reference Data Set field, select Common Set.

    Select the Enabled option.

    In the Meaning field, enter a description of this lookup code.

    Save your work.

After you define the AR_PRINT_STATEMENT_BURSTING lookup, you can create custom BI Publisher templates to use for the statements of individual customer accounts and bill-to sites with a Preferred Delivery Method of Paper in the customer profile.
Define Statement Cycles

Define statement cycles to determine when to send statements to your customers.

To define a statement cycle:

    Navigate to the Manage Statement Cycles page.

    In the Search Results section, click the Add icon.

    In the Name field, enter a name for this statement cycle.

    In the Interval field, select the interval that determines how often to generate statements: weekly, monthly, quarterly.

    In the Cycle Dates section, click the Add icon.

    In the Business Unit field, select the business unit that will use this statement cycle.

    In the Statement Date field, enter the first date on which to print statements for the statement cycle.

    Repeat steps 5 to 7 until you have the appropriate number of rows for the statement cycle interval for each applicable business unit.

    For example, enter four rows for a quarterly interval or twelve rows for a monthly interval to cover the period of one year.

    Enable the Skip option on a row if you want to skip an interval in the statement cycle.

    For example, after creating a statement cycle with a monthly interval and twelve monthly statement dates, you decide to send statements bi-monthly instead of monthly. You can enable the Skip option on every other row to reduce the number of statements to six per year.

    Complete the remaining fields according to your requirements, and save.

Define Customer Site Profiles

After you define remit-to addresses and statement cycles, you must enable the appropriate profile settings on each customer bill-to site to which you plan to send statements. If you aren't using one statement site for the customer, you can, depending on your requirements, assign a different statement cycle to the bill-to sites belonging to the same customer account. In this way each bill-to site can have its own statement for its site transactions.

To define customer bill-to site profiles for statements:

    Navigate to the Edit Site page of the applicable customer bill-to site.

    Navigate to the Statement and Dunning section.

    Enable the Send statement option.

    In the Statement Cycle field, select the statement cycle to use for this site.

    Click the Late Charges tab.

    Navigate to the Currency Settings section.

    Click the Add icon.

    In the Currency field, select the currency used by this site.

    In the Minimum Statement Amount field, enter the minimum amount required to generate a statement. Receivables generates statements for the site whenever the minimum outstanding balance in the given currency is greater than this amount.

    Complete the remaining fields according to your requirements, and save.

Related Topics

How You Use Statement Cycles

Use statement cycles to determine when to send statements to your customer bill-to sites. You assign statement cycles to customer and site level profiles.

If you print statements for a specific customer, then:

    If you defined a statement site for the customer, Receivables uses the statement cycle defined in the customer account profile as the default statement cycle to use for printing.

    If you didn't define a statement site, Receivables uses the statement cycle defined in the customer site profile for each applicable bill-to site included in the print run.

If you don't select a customer, then Receivables prints statements for all customers that have a statement cycle that matches the statement cycle you enter for the print run.

When you create a statement cycle, you define the interval to use for the cycle (weekly, monthly, quarterly) and the dates on which to print statements for the cycle. You can also indicate if Receivables should skip certain statement dates.

Receivables includes all activity from the last time you printed a statement for this customer to the current statement date, even if the customer statement cycle is set up to skip printing on one or more statement dates. Receivables also includes open debit items from prior periods in the statement.
Scenario

Consider the following criteria:

    System Date: 03-SEP-11

    Statement Date: 01-SEP-11

    Previous Statement Date: 01-JUN-11 (skipped)

    Statement Cycle: Quarterly

The activity included in this statement spans the date the statement was last printed on 01-MAR-11 to the current statement date of 01-SEP-11. The previous statement dated 01-JUN-11 had been skipped, so the activity for that period now shows on the current statement.

This figure illustrates the activity included in this statement:
This figure contains two lines showing transaction activity and statement dates, to illustrate the results of printing a statement according to the criteria specified in the example.

This table provides an explanation of the logic used to include particular transactions on the statement based on transaction date.

Invoice Creation Date
	

Included in Statement?

Invoice Date: 28-FEB-11
	

No, unless the invoice is either still open or was closed between 01-MAR-11 and 31-AUG-11.

Invoice Date: 30-AUG-11
	

Yes, because the invoice date is between the date the statement was last printed and the statement date.

Invoice Date: 02-SEP-11
	

No, because the invoice date is later than the statement date.

How can I create a statement site?

You can designate one of your bill-to sites belonging to a customer account as a statement site. If you create a statement site, Receivables generates a single, consolidated statement for all the customer bill-to sites, rather than a separate statement for each bill-to site.

You can only define a bill-to site as a statement site, and you can only define one active statement site per customer account.

To create a statement site:

    Assign the bill-to site the additional Statements business purpose.

    Set the Statement, Dunning, and Late Charges Site Profiles Used profile option to Yes.

How do on-account and unapplied receipts appear on statements?

All receipts, including on-account and unapplied receipts, appear on the statement of the corresponding bill-to site.

If you create a statement site for the customer account, then Receivables summarizes on-account and unapplied receipts as credits and prints them on a separate page of the consolidated statement, before a summarized listing of subtotals for each of the customer bill-to sites.
Overview of Multifund Accounting

Multifund Accounting is an optional accounting feature that lets you post transactions, adjustments, and receipts to multiple balancing segment values or funds. Multifund Accounting is also known as Detailed Receivables Distributions.

In a default accounting model, multiple revenue, freight, and tax lines of a transaction are consolidated and accounted as a single distribution line. When Multifund Accounting is enabled for a business unit and ledger, then the accounting process creates detailed distributions for each transaction line according to the balancing segment values of the account code combinations.

You can use Multifund Accounting to monitor and track the receipts and usage for each of your balancing segment values. This lets you manage, for example, the disbursement of funds supporting a particular public sector project, such as a general operating fund, endowment fund, and gift fund. Or you can monitor and extract financial information in your organization by division, department, and product, without the need for creating separate invoices for each of these sectors.

The use of Multifund Accounting is for the setup of a new business unit and primary ledger only. Multifund Accounting applies to these Receivables event classes only: standard and miscellaneous receipts, invoices, credit memos, debit memos, and adjustments.

For information about the activities supported for Multifund Accounting in each Receivables event class, see Events Supported for Multifund Accounting, Document ID 2558258.1, on My Oracle Support.
Example of Multifund Accounting

These tables provide an example of multifund accounting on an invoice. In this example, Invoice 101 makes use of funding from two different fund sources.

Invoice 101 has two invoice lines, one in the amount of $1000 and one in the amount of $500:

Line Number
	

Memo Line
	

Quantity
	

Unit Price
	

Amount

1
	

1 year support
	

1
	

1000
	

1000

2
	

1 year additional consultations
	

2
	

250
	

500

The accounting for these invoice lines with detailed distributions splits the Receivable and Revenue across the two funds (the additional $190 is for Tax and Freight):

Line
	

Event
	

Account
	

Class
	

Debit
	

Credit

1
	

Invoice Created
	

02-000-1200-0000-000
	

Receivable
	

1120.00
	

2
	

Invoice Created
	

03-000-1200-0000-000
	

Receivable
	

570.00
	

3
	

Invoice Created
	

02-000-4100-0000-000
	

Revenue
	

	

1000.00

4
	

Invoice Created
	

03-000-4100-0000-000
	

Revenue
	

	

500.00
Reports for Multifund Accounting

Use the available reports to review and reconcile your multifund accounting detailed distributions.

You can manage your multifund accounting detailed distributions using the Receivables to General Ledger Reconciliation Report and the Receivables Aging by General Ledger Account for Multifund Accounting Report.
Note

The use of these reports for reviewing multifund accounting detailed distributions applies only to the ledger and business units set up to use Multifund Accounting.

You can review and reconcile your multifund accounting detailed distributions using the available tools in the Receivables to General Ledger Reconciliation Report. Run the Prepare Receivables to General Ledger Reconciliation process, and then access the summary and detailed reports using the Receivables to General Ledger Reconciliation task.

You can generate and review the aging details for the ledger and business units enabled for Multifund Accounting using the Receivables Aging by General Ledger Account for Multifund Accounting Report. You schedule this report from the Oracle Transactional Business Intelligence Catalog.
Guidelines for Enabling Multifund Accounting

You enable Multifund Accounting as part of your Receivables System Options setup for a business unit.

The use of Multifund Accounting involves preliminary planning and an understanding of the ramifications related to its use. Before you enable this feature, review all of the guidelines indicated in this topic.
Enable Multifund Accounting

To enable Multifund Accounting, follow these steps:

    Navigate to Setup and Maintenance.

    Search for the task Manage Receivables System Options.

    Open the Create or Edit System Options page for the business unit designated for Multifund Accounting.

    If not already displayed, navigate to the Accounting section of the Billing and Revenue tabbed region.

    Enable the Enable multifund accounting option.

    Save your work.

Caution

Once you enable the Enable multifund accounting option and save the System Options record, you can't disable this feature for this business unit.

To complete your setup for Multifund Accounting, you must also create an accounting method in Subledger Accounting for the primary ledger assigned to this business unit.
Requirements for Business Units and Primary Ledger

Even though you enable the setting for Multifund Accounting as part of the Receivables System Options setup for a business unit, the setting actually applies to the primary ledger and all of the Receivables business units associated with this ledger.

These requirements apply to enabling Multifund Accounting for a business unit:

    When you enable the Multifund Accounting feature for a business unit, this feature is also automatically enabled on all business units associated with the same primary ledger.

    If any business unit associated with this primary ledger doesn't require Multifund Accounting, then you must disassociate the business unit from this ledger before enabling the feature.

    You can only enable Multifund Accounting on business units that don't have any transactions.

Requirements for Cash Budget Funding with Receipts

If you intend to use cash budget funding for receipts, the ledger that you enable for Budgetary Control must be associated with a business unit enabled for Multifund Accounting.

Ensure that you select a ledger belonging to a business unit enabled for Multifund Accounting when you enter and complete the setup for budgetary control and cash budget funding with receipts using the Edit Budgetary Control and Encumbrance Accounting page.
Requirements for Migrating Legacy Transactions

These requirements apply to migrating legacy transactions to a business unit enabled for Multifund Accounting:

    You must enable Multifund Accounting for a business unit before migrating transactions from your legacy system to this business unit.

    You can use either an FBDI template or Receivables REST API resources to migrate your transactions.

    Migrate your legacy transactions as open balances for each transaction line.

    After migrating your legacy transactions, post all transactions to General Ledger.

To ensure the posting of all migrated transactions to a single journal, in the Edit Accounting Options page for the applicable ledger, set the General Ledger Journal option Entry Summarization to Summarize by General Ledger Date.

This setting lets you manually reverse the journal so that it won't contradict open balance migrations from General Ledger. This also prevents unwanted entries for Revenue, Freight, and Taxes in the current period.
Subledger Accounting Setup for Multifund Accounting

After you enable a business unit for Multifund Accounting using the Enable multifund accounting option in Receivables System Options, you must complete related setups in Subledger Accounting to use multifund accounting.

Define a Multifund Accounting accounting method and journal entry rule set assignments in Subledger Accounting for the primary ledger assigned to the business unit.

To prepare the primary ledger for Multifund Accounting:

    Create an accounting method for Multifund Accounting.

    Assign the predefined Multifund Accounting journal entry rule sets to the Multifund Accounting accounting method you defined.

    Associate the Multifund Accounting accounting method with the primary ledger.

Caution

You can only set up Subledger Accounting for Multifund Accounting by assigning the predefined Multifund Accounting journal entry rule sets indicated in this task to the Multifund Accounting accounting method. You can't customize the predefined Multifund Accounting journal rules and journal entry rule sets.
Set Up an Accounting Method and Journal Entry Rule Sets for Multifund Accounting

To set up the Multifund Accounting accounting method, complete these steps:

    Navigate to the Manage Accounting Methods task from the Receivables configuration.

    Search for the Accounting Method Standard Accrual.

    In the Edit Accounting Method page for Standard Accrual, select Duplicate from the Actions menu.

    In the Create Accounting Method window, create an accounting method for Multifund Accounting. Enter for example:

        In the Name field, enter Multifund Accounting Method.

        In the Short Name field, enter MULTI_FUND_ACCOUNTING_METD.

        In the Description field, enter "Accounting method to support Multifund Accounting."

        In the Chart of Accounts field, select the chart of accounts.

        Click the Save and Close button.

    In the Journal Entry Rule Set Assignments section of the Edit Accounting Method page for Multifund Accounting, delete the existing rule sets copied from the Duplicate action.

    Enter the predefined Multifund Accounting journal entry rule sets:

        Invoices - Multifund Accounting Balancing Method

        Credit Memos - Multifund Accounting Balancing Method

        Debit Memos - Multifund Accounting Balancing Method

        Adjustments - Multifund Accounting Balancing Method

        Receipts - Multifund Accounting Balancing Method

        Miscellaneous Receipts - Multifund Accounting Balancing Method

    Activate the Multifund Accounting accounting method.

    Save your work.

    Navigate to the Specify Ledger Options task.

    Select the primary ledger associated with the business unit enabled for Multifund Accounting.

    In the Accounting Method field of the Subledger Accounting section of the Specify Ledger Options page, select the accounting method that you defined for Multifund Accounting.

    Complete the remaining fields according to your business requirements

    Save your work.

Set Up Multifund Accounting for Transactions with Invoicing Rules

You can set up Subledger Accounting for multifund accounting to create detailed distributions on Receivables transactions that use invoicing rules. With the appropriate setup, the Receivables account is split on the basis of Unearned Revenue for transactions using the In Advance invoicing rule, and Unbilled Receivables for transactions using the In Arrears invoicing rule.

Example of Multifund Accounting on an Invoice with an Invoicing Rule

The example in the tables below illustrates how the Receivables account is split on an invoice assigned the In Advance invoicing rule. The revenue scheduling rule uses the fixed schedule rule type.

This table shows details of the transaction:

Field
	

Value

Invoice Date
	

1-Mar-20

Invoicing Rule
	

In Advance

Line 1 Amount
	

12000

Line 2 Amount
	

15000

Revenue Scheduling Rule
	

3 Months Fixed

Rule Start Date
	

20-Jan-20

This table shows the resulting Invoice Accounting Entries, with the Receivables account split according to the balancing segment, which is the first segment of the GL account code combination. The corresponding revenue is recognized over the three-month period, as specified by the revenue scheduling rule:

Date
	

Dr/Cr
	

Account Class
	

GL Account
	

Amount

1-Mar-20
	

Debit
	

Receivables
	

01-000-1210-0000-000
	

12000

1-Mar-20
	

Debit
	

Receivables
	

02-000-1210-0000-000
	

15000

1-Mar-20
	

Credit
	

Unearned Revenue
	

01-000-1222-0000-000
	

12000

1-Mar-20
	

Credit
	

Unearned Revenue
	

02-000-1222-0000-000
	

15000

	

	

	

	

1-Mar-20
	

Debit
	

Unearned Revenue
	

01-000-1222-0000-000
	

4000

1-Mar-20
	

Credit
	

Revenue
	

01-000-4110-0000-000
	

4000

1-Mar-20
	

Debit
	

Unearned Revenue
	

02-000-1222-0000-000
	

5000

1-Mar-20
	

Credit
	

Revenue
	

02-000-4110-0000-000
	

5000

	

	

	

	

1-Apr-20
	

Debit
	

Unearned Revenue
	

01-000-1222-0000-000
	

4000

1-Apr-20
	

Credit
	

Revenue
	

01-000-4110-0000-000
	

4000

1-Apr-20
	

Debit
	

Unearned Revenue
	

02-000-1222-0000-000
	

5000

1-Apr-20
	

Credit
	

Revenue
	

02-000-4110-0000-000
	

5000

	

	

	

	

1-May-20
	

Debit
	

Unearned Revenue
	

01-000-1222-0000-000
	

4000

1-May-20
	

Credit
	

Revenue
	

01-000-4110-0000-000
	

4000

1-May-20
	

Debit
	

Unearned Revenue
	

02-000-1222-0000-000
	

5000

1-May-20
	

Credit
	

Revenue
	

02-000-4110-0000-000
	

5000

Setting Up Your Balancing Segment Values

As this example illustrates, you must use the same balancing segment value for the corresponding invoicing rule:

    In Advance: Use the same balancing segment value for the Unearned Revenue and Revenue accounts across periods.

    In Arrears: Use the same balancing segment value for the Unbilled Receivables and Revenue accounts across periods.

Note

Using the same balancing segment values applies whether a balancing segment value is manually overridden using the Review Distributions window or overridden through the segment rules in Subledger Accounting. Otherwise, Intracompany and Intercompany balancing entries are generated.

To use Multifund Accounting on transactions that use invoicing rules and revenue scheduling rules, you must modify the Multifund Accounting accounting method you created for the primary ledger associated with the business unit enabled for Multifund Accounting.

To modify the Multifund Accounting accounting method for invoices with rules, perform these four tasks:

    Create a journal line rule for the Invoice event class and associate it with the journal entry rule set.

    Create a journal line rule for the Debit Memo event class and associate it with the journal entry rule set.

    Modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class.

    Update your Multifund Accounting accounting method with the new rule sets for Invoice, Debit Memo, and Receipt.

Create a Journal Line Rule for Invoice Event Class and Associate the Rule with the Journal Entry Rule Set

To create a journal line rule for the Invoice event class and associate it with the journal entry rule set, complete these steps:

    Navigate to the Journal Line Rules task from the Receivables configuration.

    In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Multifund Invoice Receivable.

    Select Multifund Invoice Receivable and click the Duplicate icon.

    In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Multifund Invoice Receivable journal line rule.

    Click the Save and Close button.

    In the Conditions tabbed region of the Edit Journal Line Rule page, enter the following conditions for the new Multifund Invoice Receivable journal line rule:

    ("Transaction Invoicing Rule" Is not null) 'And' ( "Transaction Distribution Account Class" = TAX 'Or' "Transaction Distribution Account Class" = FREIGHT 'Or' "Transaction Distribution Account Class" = ROUND 'Or' "Transaction Distribution Account Class" = CHARGES 'Or' "Transaction Distribution Account Class" = DEFERRED_TAX 'Or' ( "Transaction Distribution Account Class" = UNBILL 'And' "Receivables Offset Indicator" = Y ) 'Or' ( "Transaction Distribution Account Class" = UNEARN 'And' "Receivables Offset Indicator" = Y ) )

    Caution

    Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.

    Click the Save and Close button.

    Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

    In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Invoices - Multifund Accounting Balancing Method.

    Select Invoices - Multifund Accounting Balancing Method and click the Duplicate icon.

    In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Invoices - Multifund Accounting Balancing Method journal entry rule set.

    Click the Save and Close button.

    In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, click the Plus (+) icon to create a new row.

    In the Journal Line Rule field, select the new Multifund Invoice Receivable journal line rule that you created in steps 1-5.

    In the Account Combination Rule field, select Multifund Transaction Default Receivables GL Account.

    In the Primary Balancing Segment, Second Balancing Segment, and Third Balancing Segment fields, select Copy.

    Click the Save and Close button.

Create a Journal Line Rule for Debit Memo Event Class and Associate the Rule with the Journal Entry Rule Set

Create a journal line rule for the Debit Memo event class and associate the new Debit Memo journal line rule with the journal entry rule set by completing the same steps as you did for the Invoice event class.

Modify the Receipt Application to Multifund Transaction Receivable Journal Line Rule

To modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class, complete these steps:

    Navigate to the Journal Line Rules task from the Receivables configuration.

    In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Receipt Application to Multifund Transaction Receivable.

    Select Receipt Application to Multifund Transaction Receivable and click the Duplicate icon.

    In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Receipt Application to Multifund Transaction Receivable journal line rule.

    Click the Save and Close button.

    In the Conditions tabbed region of the Edit Journal Line Rule page, insert these new condition details:

    'Or' "Transaction Distribution Account Class" = UNEARN 'Or' "Transaction Distribution Account Class" = UNBILL

    before the existing condition details:

    'And' "Distribution Source Type" = REC 'And' "Distribution Multifund Additional Entry" = N

    Caution

    Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.

    Click the Save and Close button.

    Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

    In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Receipts - Multifund Accounting Balancing Method.

    Select Receipts - Multifund Accounting Balancing Method and click the Duplicate icon.

    In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Receipts - Multifund Accounting Balancing Method journal entry rule set.

    Click the Save and Close button.

    In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, select the existing Receipt Application to Multifund Transaction Receivable journal line rule and delete it.

    Click the Plus (+) icon to create a new row.

    In the Journal Line Rule field, select the new Receipt Application to Multifund Transaction Receivable journal line rule that you just created and modified.

    Click the Save and Close button.

Update Your Multifund Accounting Method with the New Rule Sets

To replace the existing rule sets for the Invoice, Debit Memo, and Receipt event class in your Multifund Accounting accounting method, complete these steps:

    Navigate to the Manage Accounting Methods task from the Receivables configuration.

    In the Manage Accounting Methods page, search for and select your Multifund Accounting Method to navigate to the Edit Accounting Method page.

    In the Receivables tabbed region of the Journal Entry Rule Set Assignments section of the Edit Accounting Method page, either delete or apply an end date to the existing rule sets for Invoice, Debit Memo, and Receipt.

    Add the new rule sets that you created for Invoice, Debit Memo, and Receipt and activate them.

    Click the Save and Close button.

Cash Pooling for Multifund Accounting

You can use a cash pooling model to record multifund accounting entries on cash receipts.

Cash pooling is a cash management system that notionally consolidates account balances from several accounts without physically moving funds. An organization can combine credit and debit positions from various bank accounts into a pooled account to provide better visibility into the current state of an organization's business and to facilitate ongoing decision-making.

The cash pool accounting model represents a cash account with the Cleared Cash account class. Other offset cash accounts that reflect an interim receipt status, such as Confirmed Cash or Remitted Cash, aren't used in the cash pool accounting model.

You can implement cash pooling for multifund accounting using either of two methods, depending on the fund management requirements and local accounting conventions of your organization. The two methods are:

    Cash Pooling using Source Transaction Fund Allocation: Represent cash receipts as a direct split of cash account entries according to the source transaction allocation. Balancing segments of applied transaction receivable accounts are the basis for cash account split on a regular receipt; balancing segment miscellaneous cash distribution accounts are the basis for cash account split on a miscellaneous receipt.

    Cash Pooling using Intercompany Balancing Entries: Represent cash receipts as offsetting treasurer's equity and cash owed to an affiliate using intercompany balancing entries.

After you set up cash pooling for multifund accounting using either of these methods, you must create an AR_CASHPOOLING lookup code under the AR_FEATURES lookup type.
Note

Cash pooling only applies to a business unit enabled for Multifund Accounting. You must ensure that you have completed the base setup for Multifund Accounting on the applicable business unit before configuring Cash Pool accounting.
Example of Cash Pooling Methods for Multifund Accounting

This example illustrates the accounting entries for both methods of representing cash pooling for Multifund Accounting.

Invoice XYZ contains three transaction lines for a total of $1600. This table represents the three line amounts:

Account Class
	

Amount

Revenue
	

$600

Revenue
	

$250

Revenue
	

$750

This table represents the accounting entries for Invoice XYZ. The first segments in the account code combinations--B,C,D--are the balancing segments that represent the three funds:

Dr/Cr
	

Reference
	

Account Class
	

Account
	

Amount

Debit
	

Header
	

Receivables
	

B.000.1200.0
	

$600

Debit
	

Header
	

Receivables
	

C.000.1200.0
	

$250

Debit
	

Header
	

Receivables
	

D.000.1200.0
	

$750

Credit
	

Revenue
	

Revenue
	

B.000.4100.0
	

$600

Credit
	

Revenue
	

Revenue
	

C.000.4100.0
	

$250

Credit
	

Revenue
	

Revenue
	

D.000.4100.0
	

$750

Here the Receivables entry is split according to the fund allocation on each Revenue account.

Receipt PQR in the amount of $1600 is applied to Invoice XYZ. This table represents the receipt:

Receipt Amount
	

$1600

Receipt Status
	

Cleared

Applied to
	

XYZ

The resulting receipt accounting entries will differ depending on the Cash Pooling method used.

Accounting Entries for Cash Pooling using Source Transaction Fund Allocation: This table represents the receipt accounting entries with Cash Pooling enabled on a bank account:

Dr/Cr
	

Reference
	

Account Class
	

Account
	

Amount

Debit
	

Receipt
	

Cash
	

G.000.1110.0
	

$1600

Credit
	

Invoice
	

Receivable
	

B.000.1200.0
	

$600

Credit
	

Invoice
	

Receivable
	

C.000.1200.0
	

$250

Credit
	

Invoice
	

Receivable
	

D.000.1200.0
	

$750

	

	

	

	

Debit
	

Invoice
	

Cash
	

B.000.4100.0
	

$600

Debit
	

Invoice
	

Cash
	

C.000.4100.0
	

$250

Debit
	

Invoice
	

Cash
	

D.000.4100.0
	

$750

Credit
	

Receipt
	

Cash
	

G.000.1110.0
	

$1600

Here the Cash Account is originally debited to a generic fund according to the setup defined for the receipt method remittance bank account. It is then reversed and debited back into split cash accounts according to the funds allocation used on the invoice closed by the receipt.

Accounting Entries for Cash Pooling using Intercompany Balancing Entries: This table represents the receipt accounting entries using Treasurer's Equity and Cash to Affiliates accounts as Intercompany Balancing Accounts (and without Cash Pooling enabled on a bank account). The Debit Intercompany entries represent Intercompany Cash Equity in the cash pool and the Credit Intercompany entries represent Intercompany Cash from Affiliate:

Dr/Cr
	

Reference
	

Account Class
	

Account
	

Amount

Debit
	

Receipt
	

Cash
	

T.000.1110.0
	

$1600

Credit
	

Invoice
	

Receivable
	

B.000.1200.0
	

$600

Credit
	

Invoice
	

Receivable
	

C.000.1200.0
	

$250

Credit
	

Invoice
	

Receivable
	

D.000.1200.0
	

$750

	

	

	

	

Debit
	

Invoice
	

Intercompany
	

B.000.1750.T
	

$600

Debit
	

Invoice
	

Intercompany
	

C.000.1750.T
	

$250

Debit
	

Invoice
	

Intercompany
	

D.000.1750.T
	

$750

Credit
	

Receipt
	

Intercompany
	

T.000.2125.B
	

$600

Credit
	

Receipt
	

Intercompany
	

T.000.2125.C
	

$250

Credit
	

Receipt
	

Intercompany
	

T.000.2125.D
	

$750

Here the entire Cash account is initially debited to the Treasurer's Pool. It is then split into various accounts representing the cash contributed by each fund/affiliate as credit intercompany entries, with corresponding debit intercompany entries representing the Equity in Pool for each fund.
Cash Pooling using Source Transaction Fund Allocation

Use the Pooled account option on the applicable bank account to enable default cash pooling entries rather than Intercompany entries. If you don't enable this option, balancing entries are used to manage cash pooling, according to the additional setup for Intercompany Balancing Rules.

This option is available by default on the business unit enabled for Multifund Accounting.
Note

The Pooled account option is commonly used by Payables and Receivables to drive the required fund representation. You should analyze the impact on both your Payables and Receivables activities before deciding on the pooling method to use for funds received or funds expensed through the designated bank account.

After you enable cash pooling on a bank account, set up an AR_CASHPOOLING lookup code under the AR_FEATURES lookup type.

To enable cash pooling for multifund accounting using source transaction fund allocation, complete these steps:

    Navigate to the Manage Bank Accounts page.

    Search for and select the bank account you want.

    In the Bank Account page, navigate to the Controls tabbed region.

    In the Payables and Receivables Controls section, enable the Pooled account option.

    Enabling this option designates this bank account as the bank account to use as the default model for representing the cash pooling.

    Complete the other fields according to your requirements.

    Save your work.

    Navigate to the Manage Standard Lookups page.

    Search for and select the lookup type AR_FEATURES.

    In the AR_FEATURES lookup codes section, click the Plus (+) icon.

    In the Lookup Code field, enter AR_CASHPOOLING.

    Enter a start date, and a meaning and description for this lookup code.

    Check the Enabled option to activate the lookup code.

    Save your work.

Cash Pooling using Intercompany Balancing Entries

Represent multifund accounting cash pooling by using intercompany balancing rules to map the Equity Pool (receivables) and Treasurer's Equity (payables) accounts.

After you configure intercompany balancing rules, set up an AR_CASHPOOLING lookup code under the AR_FEATURES lookup type.
Note

If you use intercompany balancing rules to set up cash pooling, then don't enable the Pooled cash option on a bank account.

To enable cash pooling for multifund accounting using intercompany balancing entries, complete these steps:

    Navigate to the Manage Intercompany Balancing Rules page.

    Navigate to the Chart of Accounts Rules tabbed region.

    Click the Plus (+) icon to open the Create Chart of Accounts Balancing Rules page.

    In the Source field, select Receivables.

    In the Category field, select Receipts.

    In the Chart of Accounts field, select the chart of accounts.

    In the Receivables Account field, enter the account segments for the Equity Pool natural account.

    In the Payables Account field, enter the account segments for the Treasurer's Equity natural account.

    In the Start Date field, enter the date this chart of accounts rule becomes active.

    Save your work.

    This chart of accounts rule applies to all ledgers that use this chart of accounts.
    Note

    If you intend to use more than one balancing segment, use the Additional Intercompany Balancing and Clearing Options page to configure options to balance the second and third balancing segments. These options are used whenever a transaction is balanced by the primary balancing segment, but remains unbalanced by the second or third balancing segment.

    Navigate to the Manage Standard Lookups page.

    Search for and select the lookup type AR_FEATURES.

    In the AR_FEATURES lookup codes section, click the Plus (+) icon.

    In the Lookup Code field, enter AR_CASHPOOLING.

    Enter a start date, and a meaning and description for this lookup code.

    Check the Enabled option to activate the lookup code.

    Save your work.

Can I write messages in different languages?

Yes, you can write a message in any language that suits the needs of your enterprise. For any language, the text of a standard message can't exceed 255 characters. Receivables doesn't perform any other validation on messages.

How can I add a message to a document?

You can print standard messages on customer statements, and on late charge documents presented as debit memos or interest invoices.

For statements, active standard messages appear as list of value choices in the Create Customer Statements process. The message you select appears at the end of the customer statement.

For late charge documents, active standard messages appear in the choice list of the Message Text field in the Late Charges tabbed section of the applicable customer or site profile. The message you select appears in the Notes section of the late charge document for this customer.
What are distribution sets?

Use distribution sets to account for miscellaneous, or non-invoice related, receipts. Distribution sets are groups of general ledger code combinations that you define to determine the credit accounts for positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts.

Why can't I create transactions or generate accounting?

You must open an accounting period before you can perform basic Receivables activities. This is also true of new installations: manually open an accounting period once your installation is complete.

Guidelines for Receivables System Option Settings

Certain Receivables system option settings have critical implications for the way Receivables functions for a given business unit. You may need to do some advance planning before deciding how to set certain Receivables system options.

Considerations for Receivables system option settings include:

    Salespersons

    Header Level Rounding

    Allow Change to Printed Transactions

    Discounts

Salespersons

If you intend to use revenue accounting, you must enable the Require salesperson Receivables system option. Revenue accounting requires that you assign sales credits to all transactions that can be adjusted for either revenue or sales credits.

If you enable the Require salesperson Receivables system option, use the Sales Credit Percent Limit field to limit the percentage of revenue plus non-revenue sales credit that a salesperson can have on any transaction line.

If you don't enter a value in the Sales Credit Percent Limit field, then no sales credit limit validation is performed during revenue accounting.
Header Level Rounding

Depending on the legal requirements of your home country, you may need to round amounts at the transaction header level for the receivable account, and then account for and post the difference in a separate account between this rounded amount and the sum of the rounded line amounts for the respective revenue accounts. To do this, enable the Use header level rounding option and define a Header Rounding Account.

The rounding difference between the header level and line level rounding is assigned to the Header Rounding Account.

If you enable the Use header level rounding option, then Receivables displays a rounding distribution line for all transactions, regardless of currency. If the transaction is in the ledger currency, then the amount of this line is zero.

If you don't enable the Use header level rounding option, Receivables rounds amounts at the line level and posts any rounding difference to the receivable account.
Caution

Once you enable Header Level Rounding and save the Receivables system options record, you can't disable the feature for the applicable business unit.
Allow Change to Printed Transactions

To allow updates to transactions that have been printed, enable the Allow change to printed transactions option. This option also determines whether you can update a customer address when printed, posted, or applied transactions are assigned to that address.
Note

You can't update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, accounting, and assigning the transaction to a balance forward bill.
Discounts

To allow Receivables to accept unearned discounts, enable the Allow unearned discounts option. Unearned discounts are discounts a customer takes after the discount period passes. The Receivables system options record is the only place that determines whether you can accept unearned discounts for the given business unit.

To allow discounts to be taken for partial payments against open debit items, enable the Discount on partial payment option. A partial payment is any payment less than the remaining amount due. If this option is enabled, you can still decide to disallow discounts on partial payments at the transaction level when defining payment terms.

If you never allow discounts on partial payments, then don't enable the Discount on partial payment option.

Related Topics

    Example of Header Level Rounding
    How Discounts Are Calculated
    Implementation Settings for Revenue Recognition

Example of Header Level Rounding

This example illustrates how header level rounding processes currency conversions and accounts for rounding differences.
Scenario

ABC Company uses euros as the ledger currency, and it receives an invoice with three line items in Norwegian krone. For this example, the conversion rate between the krone and the euro is 6.55957.
Transaction Details

The Use header level rounding Receivables system option is enabled for the applicable business unit and a Header Rounding Account is defined.

This table shows the calculations performed to convert each line amount on the invoice:

Item/Description
	

Amount in Krone
	

Conversion Rate
	

Amount in Euros
	

Comment

Paper
	

15.00
	

6.55957
	

2.29
	

rounded up

Pens
	

12.00
	

6.55957
	

1.83
	

rounded up

Envelopes
	

25.00
	

6.55957
	

3.81
	

rounded down

Subtotal
	

52.00
	

N/A
	

7.93
	

sum of items

Rounding Difference
	

N/A
	

N/A
	

- 0.01
	

N/A

Total Amount
	

52.00
	

6.55957
	

7.92
	

rounded down

Because the Use header level rounding Receivables system option is enabled, Receivables must calculate the rounding difference between the currency conversion of the total invoice amount at the header level assigned to the receivable account and the sum of the currency conversions at the line level assigned to each revenue account. This difference is placed in the designated header rounding account.
Conversion Results

Receivables first converts each line item separately from krone to euros, and then adds them together, for a total of 7.93 EUR. Receivables then separately adds the line amounts in the invoice currency (krone) and then converts to the ledger currency, for a total of 7.92 EUR.

The rounding difference of .01 is assigned to the header rounding account as defined in Receivables system options.
AutoInvoice Tuning Segments

Use the AutoInvoice Tuning Segments section of the Billing and Revenue tab of Receivables System Options to designate Accounting and System Items flexfield segments as tuning segments.

Tuning segments help increase performance of AutoInvoice. The tuning segment is the segment most frequently accessed by AutoInvoice.
Accounting Flexfield Tuning Segment

If you want to increase the performance of AutoInvoice and indexes already exist for the GL_CODE_COMBINATIONS table, use the value that you specified for your index as the Accounting Flexfield tuning segment. If you defined a concatenated index, use the first column of your concatenated index.

If no indexes exist for the GL_CODE_COMBINATIONS table, enter the segment with the most distinct values for your Accounting Flexfield tuning segment.
System Items Flexfield Tuning Segment

If you want to increase the performance of AutoInvoice and indexes already exist for the MTL_SYSTEM_ITEMS table, use the value that you specified for your index as your System Items Flexfield tuning segment. If you defined a concatenated index, use the first column of your concatenated index.

If no indexes exist for the MTL_SYSTEM_ITEMS table, enter the segment with the most distinct values for your System Items Flexfield tuning segment.
AutoInvoice Log File Message Levels

In the Log File Message Level field of the AutoInvoice section of the Billing and Revenue tab of Receivables System Options, enter a value from 0 to 5 to indicate the amount of detail to display in the AutoInvoice log file.

For day-to-day business needs and to improve performance, set the level to 0. If you consistently experience errors while running AutoInvoice, you can set the output to a higher level to review more detailed information in the log about the errors.
Log File Message Level Definitions

Message Level 0 provides the following entries in the log file:

    Product Version

    Program Name

    AutoInvoice Start Time

    AutoInvoice Concurrent Request Arguments

    Error and Warning Messages

    AutoInvoice End Time

    AutoInvoice Logical Steps

Message Level 1 provides all of the entries for Message Level 0 plus:

    Time-Stamped function labels

Message Level 2 provides all of the entries for Message Levels 0 and 1 plus:

    Sizes of allocated arrays

    Dynamic SQL statements

    Number of rows updated, inserted, and deleted

Message Level 3 provides all of the entries for Message Levels 0, 1, and 2 plus:

    Method IV SQL array values

Message Level 4 provides all of the entries for Message Levels 0, 1, 2, and 3 plus:

    Values of all variables that are used to call FND or Tax routines

Message Level 5 provides all of the entries for Message Levels 0, 1, 2, 3, and 4 plus:

    Details of all bad lines and rejected lines. This provides all messages needed for C debugging of AutoInvoice.

What's the days per posting cycle?

The Days per Posting Cycle setting lets you process the transactions you're posting in smaller groups to ensure that you don't run out of rollback space during posting.

For example, if your accounting period is 30 days and you set this value to 30, the posting process uses only one cycle. If your accounting period is 30 days and you set this value to 17, the posting process uses two cycles. Best practice is to set this field to a value less than the number of days in your accounting period.
What happens if I allow transaction deletion?

Enable the Allow transaction deletion Receivables system option if you want to let users delete Receivables transactions after the transactions have been saved. If you don't enable this option, all Receivables users are prevented from deleting transactions.

If an installation is legally required to number transactions sequentially with no missing transaction numbers, then best practice is to not enable this option.

If you enable the Allow transaction deletion option, you can still control which users can delete transactions using function security.
How can I determine the memory allocation?

Enter in the Maximum Memory in Bytes field the value that represents the amount of memory to allocate to AutoInvoice for validation. The default is 65535 bytes.

For best results, enter a value equal to the maximum number of records that you import, rounded to an even number, multiplied by 1024. For example, if you use AutoInvoice to import no more than 100 records at a time, enter a value of 102400.

During AutoInvoice processing, if you receive a message that indicates the application failed to allocate memory, then enter a lower number. If you receive a message that the memory isn't large enough, then enter a higher number.
When do I use days to AutoApply a receipt?

Enter in the Days to AutoApply a Receipt field the age in days of receipts that AutoApply considers for application against customer transactions. Use this field if your customers often pay for transactions before they're created.

AutoApply looks for and attempts to apply open receipts to transactions created within the number of days that you specify. For example, if you enter 10, then AutoApply considers all receipts created within the past 10 days for application to transactions. Receipts created longer than 10 days ago aren't considered.

If you don't enter a value in this field, AutoApply only attempts to match receipts once.
What are the exception rule activities?

The active application exception rule set determines the action to perform on overpayment and underpayment amounts after receipt application. You can define the default receivables activity to use to process these payments when the action is either a billing adjustment or a write-off.

The Exception Rule Adjustment Activity field in the Cash Processing tab of Receivables System Options provides the default receivables activity to use for adjustments on overpayments or underpayments. The Exception Rule Write-off Activity field provides the default receivables activity to use for write-offs of overpayments or underpayments.
When are receipts required for a bill-to site?

Enable the Require billing location for receipts Receivables system option to require that a bill-to site be associated with a receipt. If enabled, Receivables doesn't create receipts that don't have a bill-to site.

Use this option for customers without statement sites. If you don't enable this option, and you have receipts for customers without statement sites and without a bill-to site associated with the receipt, the unapplied amount of the receipt won't appear on any of the statements for this customer.
What's the difference between the realized gains and losses accounts and the cross currency rounding account?

The realized gains and realized losses accounts are used to account for the conversion rate gain or loss in the ledger currency resulting from a cross-currency receipt application.

For example, if the conversion rate for a foreign currency invoice is 1.7 and the conversion rate of the payment for this invoice is 2.0, Receivables posts the difference as a gain to the realized gains account.

The cross-currency rounding account is used to record rounding error amounts created during a cross-currency receipt application. You must define a rounding error account if you create cross-currency receipts.
Examples of Using the Transaction and Statement Delivery Email Subject Lines

Use the Email Subject fields in the Transaction Delivery Using Email and Statement Delivery Using Email sections of the Billing and Revenue region of Receivables system options to create an email subject line for the transactions and statements you deliver to customers using email.

Receivables inserts a period after the business unit, transaction number, and statement date, and inserts a space between each of the field values.

The following examples illustrate how the subject line appears depending on the settings you use.
Example 1

The resulting email subject line for the settings in this table is: "Your invoice is now ready for review. Vision Operations. INV1234."

Field
	

Value

Email Subject
	

Your invoice is now ready for review.

Include Business Unit in Email Subject
	

Last

Include Transaction Number in Email Subject
	

Last
Example 2

The resulting email subject line for the settings in this table is: "Vision Operations. Your statement is now ready for review. 01-01-2017."

Field
	

Value

Email Subject
	

Your statement is now ready for review.

Include Business Unit in Email Subject
	

First

Include Statement Date in Email Subject
	

Last
Example 3

The resulting email subject line for the settings in this table is: "Your invoice is now ready for review. INV1234."

Field
	

Value

Email Subject
	

Your invoice is now ready for review.

Include Business Unit in Email Subject
	

Do Not Include

Include Transaction Number in Email Subject
	

Last


How Transaction and Statement Delivery Using Email Works

Print and send Receivables transactions and statements to designated customers using email.

When you run the Print Receivables Transactions process or the Create Customer Statements process, the respective process sends transactions or statements as either a PDF or Zipped PDF file to the designated email addresses of the customer accounts and sites that are set up for email delivery.
Settings That Affect Delivery Using Email

These settings affect print delivery using email:

    Print Option: Set the Print Option to Print or Do Not Print at the customer site or customer account level, depending upon whether you want to print for specific customer sites or all sites belonging to a customer account.

    For transactions, if the Print Option value isn't enabled at the site or account level, then Receivables uses the required Print Option setting on the transaction type. If necessary, you can exclude or include individual transactions in a print run by changing the Print Option setting on transactions.
    Note

    If the transaction type doesn't have the Open Receivable option enabled (for example, a Void transaction), then the email delivery process ignores the Print Option settings at the customer site and account level and uses the setting assigned to the transaction type. You can still override this setting on the transaction.

    Preferred Delivery Method: Set the Preferred Delivery Method field to Email at the customer site or customer account level, depending upon whether you want to deliver using email for specific customer sites or all sites belonging to a customer account.

    Customer contacts: Assign at least one customer contact at the account or site level both an email address and the Bill-to responsibility. To send statements, the contact must be assigned the Statement responsibility in addition to the Bill-to responsibility.

    These rules apply to customer contacts:

        The contact must be active when the Print Receivables Transactions or Create Customer Statements process is run.

        If a customer account or site doesn't have any contact with both an email address and a Bill-to responsibility (and a Statement responsibility for statements), then transactions or statements aren't delivered for this customer account or site.

        For transactions, if a customer account or site does have a contact with both an email address and a Bill-to responsibility, but the same contact email address is also assigned the Collections or Dunning responsibility, then this contact is excluded from email delivery.

        For statements, if the customer has a statement site, then a consolidated statement is created and delivered to this statement site for all bill-to sites belonging to the customer account.

    Email Receivables system options: Use the Transaction and Statement Delivery Using Email sections of the Billing and Revenue tabbed region of the Receivables System Option pages to set up the details of transaction and statement delivery using email for the applicable business units.
    Note

    These are all conditionally required fields. If you plan to enable printing and email delivery of transactions or statements, then you must enter values in these fields to ensure successful delivery.

    Enter the appropriate text and values in the corresponding fields:

        From Name: Name of your enterprise.

        From Email: Email address of your enterprise.

        Reply-to Email: Email address of your enterprise that your customers can send an email to.

        Email Subject: Text of the email subject line.

        Include Business Unit in Email Subject: Option to include the name of your business unit in the subject line.

        Include Transaction Number in Email Subject: Option to include the transaction number in the subject line.

        Include Statement Date in Email Subject: Option to include the statement date in the subject line.

        Email Body: Text of the email message. Include appropriate formatting.
        Note

        You can't use standard messages to create email message text.

How Transactions and Statements are Delivered Using Email

Once your setup is complete, use the Print Receivables Transactions process to print customer transactions, and the Create Customer Statements process to print customer statements. Use the Output File Type parameter to specify the output to use for the print run. For print delivery using email, you must select either PDF or Zipped PDF. If you select Zipped PDF, the file includes an index file of the print run, to identify the first and last page of each printed transaction.

When you create a transaction, Receivables looks in your setup for the Print Option setting to assign to the transaction in this order:

    Customer site profile

    Customer account profile

    Transaction type

During print processing, the email delivery process verifies for each transaction or statement:

    For transactions, the Print Option is set to Print.

    You can update the Print Option setting on individual transactions before printing.

    Preferred Delivery Method field is set to Email for the customer account or site.

    At least one active customer contact has both an email address and the Bill-to responsibility, as well as the Statement responsibility for statement delivery. The email delivery process looks for an email address to send transactions or statements to in this order:

        For transactions, email address of the bill-to customer contact on the transaction.

        Email addresses of the contacts of the customer site that are assigned a Bill-to responsibility (and Statement responsibility for statements), but not assigned the Collections or Dunning responsibility.

        Email addresses of the contacts of the customer account that are assigned a Bill-to responsibility (and Statement responsibility for statements), but not assigned the Collections or Dunning responsibility.

    All fields are completed in the Transaction Delivery or Statement Delivery Using Email section of the Billing and Revenue tabbed region of Receivables System Options.

The name of the output PDF file for transactions delivered using email uses the format:

Why can't I print transactions or statements using email delivery?

Your email delivery setup is incomplete.

This is most likely due to one of two settings:

    In Receivables system options, you must enter an active email address in either the From Email field or the Reply-to Email field of the Transaction or Statement Delivery Using Email section of the Billing and Revenue tabbed region for the applicable business unit.

    At least one customer contact must have both an active email address and a Bill-to responsibility for transaction delivery; and an active email address, a Bill-to responsibility and a Statement responsibility for statement delivery.

    For transactions:

        If the transaction doesn't have a bill-to customer contact, or if that contact doesn't have an email address, then the email delivery process looks for all active customer contacts at the account or site level that have both a Bill-to responsibility and an email address.

        If any exist, then the transaction is delivered to all of these contacts, with the exception of contact email addresses also assigned the Collections or Dunning responsibility.

        If none exist, then the transaction isn't printed.

AutoInvoice Data Preparation

Prepare your Receivables environment for any new data that you want to import. If your original system uses any setup data which isn't yet defined in Receivables, you must define this data before using AutoInvoice.
Data Checklist

Ensure that you have set up and updated the appropriate records in Receivables and related applications.

Add or update this setup data:

    Add or import customers, if your original system contains data for customers that aren't yet defined in Receivables.

    Add units of measure, if your original system uses units of measure not yet defined.

    Add or update in General Ledger this data:

        Currencies, if your original system uses currencies not yet defined.

        Accounting flexfield segment values, if your original system uses values not yet defined.

    Add or update in Tax this tax data:

        Tax rates assigned to tax rate codes that aren't yet defined.

        Tax rates associated with products shipped to specific locations.

        Full or partial customer and item tax exemptions.

    Add or update these Receivables lookup codes:

        Free on Board (FOB) lookup codes, if your original system uses FOB point codes not yet defined.

        Freight carrier lookup codes.

    Add or update this Receivables data:

        AutoAccounting (this is a required setup to use AutoInvoice)

        Payment terms

        Transaction types

        Transaction sources

        Salespersons

        Revenue scheduling rules

AutoInvoice Setup

Review and update Receivables data specific to AutoInvoice.

Review and update this data:

    AutoInvoice Grouping Rules: Define additional grouping rules or update the default grouping rule provided by Receivables. AutoInvoice uses grouping rules to determine how to create transactions.

    AutoInvoice uses the following hierarchy when determining the grouping rule to use:

        Transaction source

        Customer site

        Customer profile

        System options

    AutoInvoice Line Ordering Rules: Define line ordering rules for AutoInvoice to determine how to order transaction lines. AutoInvoice randomly orders lines on your transactions if you don't define line ordering rules.
    AutoInvoice Transaction Source Automatic Receipt Handling: If you want AutoInvoice to automatically evaluate imported credits for receipt handling, select the applicable Receipt Handling for Credits option on the AutoInvoice transaction source.
        On Account: Place imported credits on account.
        Refund: Create refunds for imported credits.

    Receivables System Options: Set Receivables system options for AutoInvoice in the Billing and Revenue tab:

        Customers section: Grouping Rule field: Assign an AutoInvoice grouping rule to use as part of the default hierarchy for selecting a grouping rule during transaction processing.

        AutoInvoice section: Purge interface tables option: Enable this option to purge data automatically after running AutoInvoice.

        AutoInvoice section: Maximum Memory in Bytes field: Enter a value that represents the amount of memory to allocate to AutoInvoice for validation.

        AutoInvoice section: Log File Message Level field: Enter a level from 0 to 5 to indicate the amount of detail that you want to display in the AutoInvoice log file.

        AutoInvoice section: Accounting Dates Out of Order field: Select Reject or Adjust to determine how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.
        Note

        You only use this setting when the primary ledger is enabled for document sequencing.

    Profile Options: Set these profile options for AutoInvoice:

        ID Flexfield Code: Specify the ID of the flexfield code used by AutoInvoice.

        Maximum Lines per AutoInvoice Worker: Specify the maximum number of lines per AutoInvoice worker.

        Source Code: Specify the source code used by AutoInvoice.

        Use Parallel Hint: Enable parallel hints in AutoInvoice.

        AutoInvoice Gather Statistics Allowed: If you set this profile option to Yes, then when you submit AutoInvoice, the program first analyzes the interface tables (RA_INTERFACE_LINES_ALL, RA_INTERFACE_DISTRIBUTIONS_ALL, and RA_INTERFACE SALESCREDITS_ALL) and gathers statistics to determine how best to execute the transaction import.

        If the number of records to be imported and the number of worker processes are approximately the same as the previous submission of AutoInvoice, then you can set this profile option to No and skip this analysis.

Transaction Flexfield

Receivables uses the transaction flexfield to uniquely identify each transaction and transaction line you import using AutoInvoice. Transaction flexfields are also used to reference and link transaction lines.

You must define a Line Transaction Flexfield, and you can optionally define a header-level Invoice Transaction Flexfield. If you define an Invoice Transaction Flexfield, all segments in the Line Transaction Flexfield that refer to header information must also exist in the Invoice Transaction Flexfield. For example, if you define a Line Transaction Flexfield with four segments, and the last two segments refer to line-level information only, define the Invoice Transaction Flexfield using the first two segments.

If you don't create Reference and Link-To Transaction Flexfields, then Receivables uses the Line Transaction Flexfield structure to link and reference different lines. You don't have to define separate Reference and Link-To Transaction Flexfields in this case.

However, if you want to create your own form to enter interface data to display the Reference and Link-To Transaction Flexfields, then you must define these transaction flexfields. These flexfields must have the same flexfield structure as the Line Transaction Flexfield.



AutoInvoice Grouping Rule Attributes

AutoInvoice grouping rules determine how to group transaction lines into transactions during AutoInvoice import.

AutoInvoice grouping rules contain both mandatory and optional transaction attributes. Two or more transaction lines must contain identical transaction attributes for AutoInvoice to group them together in the same transaction.

For example, transaction number (TRX_NUMBER) is a mandatory attribute of all grouping rules. If you have two records in the interface tables with different transaction numbers, AutoInvoice creates separate transactions for each record.

You can't delete a mandatory attribute from any grouping rule, but you can add optional attributes to the mandatory attributes to create a new grouping rule.
Note
If you have Order Management and Revenue Management (OM-RMCS) integration enabled, then the optional transaction attribute sales order date (SALES_ORDER_DATE) is a mandatory attribute for AutoInvoice to import sales orders from Order Management.
Mandatory Transaction Attributes

The AutoInvoice grouping rule provides the following mandatory transaction attributes from the RA_INTERFACE_LINES_ALL table. All of these transaction attributes apply to all transactions created using AutoInvoice grouping rules:

    BILL_PLAN_NAME

    BILL_PLAN_PERIOD

    COMMENTS

    CONS_BILLING_NUMBER

    CONVERSION_DATE

    CONVERSION_RATE

    CONVERSION_TYPE

    CREDIT_METHOD_FOR_ACCT_RULE

    CREDIT_METHOD_FOR_INSTALLMENTS

    CURRENCY_CODE

    CUSTOMER_BANK_ACCOUNT_ID

    CUST_TRX_TYPE_ID

    DOCUMENT_NUMBER

    DOCUMENT_NUMBER_SEQUENCE_ID

    GL_DATE

    HEADER_ATTRIBUTE1-15

    HEADER_ATTRIBUTE_CATEGORY

    HEADER_GDF_ATTRIBUTE1-30

    INITIAL_CUSTOMER_TRX_ID

    INTERNAL_NOTES

    INVOICING_RULE_ID

    ORIG_SYSTEM_BILL_ADDRESS_ID

    ORIG_SYSTEM_BILL_CONTACT_ID

    ORIG_SYSTEM_BILL_CUSTOMER_ID

    ORIG_SYSTEM_SHIP_CONTACT_ID

    ORIG_SYSTEM_SHIP_CUSTOMER_ID

    ORIG_SYSTEM_SOLD_CUSTOMER_ID

    ORIG_SYSTEM_BATCH_NAME

    PAYMENT_SERVER_ORDER_ID

    PAYMENT_SET_ID

    PREVIOUS_CUSTOMER_TRX_ID

    PRIMARY_SALESREP_ID

    PRINTING_OPTION

    PURCHASE_ORDER

    PURCHASE_ORDER_DATE

    PURCHASE_ORDER_REVISION

    REASON_CODE

    RECEIPT_METHOD_ID

    RELATED_CUSTOMER_TRX_ID

    SET_OF_BOOKS_ID

    TERM_ID

    TERRITORY_ID

    TRX_DATE

    TRX_NUMBER

Optional Transaction Attributes

The AutoInvoice grouping rule provides the following optional transaction attributes from the RA_INTERFACE_LINES_ALL table. You can assign one or more of these attributes to transaction classes within a grouping rule:

    ACCOUNTING_RULE_DURATION

    ACCOUNTING_RULE_ID

    ATTRIBUTE1-15

    ATTRIBUTE_CATEGORY

    INTERFACE_LINE_ATTRIBUTE1-15

    INTERFACE_LINE_CONTEXT

    INVENTORY_ITEM_ID

    REFERENCE_LINE_ID

    RULE_START_DATE

    SALES_ORDER

    SALES_ORDER_DATE (mandatory for Order Management - Revenue Management integration)

    SALES_ORDER_LINE

    SALES_ORDER_REVISION

    SALES_ORDER_SOURCE

    TAX_CODE

    TAX_RATE

AutoInvoice Line Ordering Rule Transaction Attributes

AutoInvoice uses line ordering rules to determine how to order and number each line of a transaction, after AutoInvoice has grouped transactions into invoices, debit memos, and credit memos. You can specify a line ordering rule for each AutoInvoice grouping rule that you create.
Transaction Attributes

AutoInvoice provides the following transaction attributes from the RA_INTERFACE_LINES_ALL table for use with line ordering rules:

    ACCOUNTING_RULE_DURATION

    ACCOUNTING_RULE_ID

    ACCOUNTING_RULE_NAME

    AMOUNT

    ATTRIBUTE_CATEGORY

    ATTRIBUTE1-15

    FOB_POINT

    INTERFACE_LINE_ATTRIBUTE1-15

    INTERFACE_LINE_CONTEXT

    ORIG_SYSTEM_SHIP_ADDRESS_ID

    QUANTITY

    QUANTITY_ORDERED

    REASON_CODE

    REASON_CODE_MEANING

    REFERENCE_LINE_ATTRIBUTE1-15

    REFERENCE_LINE_CONTEXT

    REFERENCE_LINE_ID

    SALES_ORDER

    SALES_ORDER_DATE

    SALES_ORDER_LINE

    SALES_ORDER_SOURCE

    SHIP_DATE_ACTUAL

    SHIP_VIA

    TAX_CODE

    UNIT_SELLING_PRICE

    UNIT_STANDARD_PRICE

    UOM_CODE

    UOM_NAME

    WAYBILL_NUMBER
Example of an AutoInvoice Grouping Rule

This example illustrates how to use grouping rules to group transaction lines into transactions during AutoInvoice import.
Scenario

Define an AutoInvoice grouping rule that specifies that to appear on the same invoice, items must match on all mandatory attributes, such as currency (CURRENCY_CODE) and customer bill-to address (ORIG_SYSTEM_BILL_ADDRESS_ID), and must also match on the optional attribute of sales order type (SALES_ORDER_SOURCE).
Transaction Details

During AutoInvoice import, assume that all mandatory attributes match other than currency and customer bill-to address.
This figure illustrates how three imported invoices are created according to the AutoInvoice grouping rule defined in this example:
This figure illustrates the creation of three invoices based on the mandatory grouping rule and the one optional attribute of sales order type

Items A and B share the same currency and sales order type, so they appear on the same invoice (Invoice 1). Item C has the same currency as A and B, but it has a different sales order type, so it appears on its own invoice (Invoice 2). Items D and E share the same currency and sales order type, so they appear on the same invoice (Invoice 3).
Result

Because of the optional attribute of sales order type, AutoInvoice created three invoices. If the grouping rule had designated only mandatory attributes, then AutoInvoice would have created only two invoices.
Why did AutoInvoice reject transactions?

During AutoInvoice processing, if you have transaction lines that fail validation, the import process looks at the value of the Invalid Line field in the transaction source to determine what to do about the transaction.

If the value is Reject Invoice, then AutoInvoice rejects all of the transaction lines that make up one invoice according to the grouping rule, if any one of the transaction lines are invalid. For example, if a grouping rule specifies that three transaction lines should be created as one invoice and one of the transaction lines has an error, AutoInvoice rejects all three transaction lines and doesn't create an invoice.

However, if the value is Create Invoice, AutoInvoice rejects the one invalid transaction line and creates an invoice from the two remaining valid transaction lines.
Why did AutoInvoice create transactions with duplicate transaction numbers?

During AutoInvoice processing, the import process validates that transaction and document numbers are unique after grouping has completed.

In certain cases, AutoInvoice will create multiple invoices in the same group with the same transaction or document number. Once grouping is completed, AutoInvoice checks for duplicate transaction and document numbers and reports any lines that fail validation.

For example, two lines are imported with the same transaction number, but they have different currencies. These lines are split into two separate invoices during grouping due to the different currencies. Once grouping has completed, both of the invoices will fail validation due to identical transaction numbers.
What happens if AutoInvoice processes a transaction class that's not defined for a grouping rule?

If AutoInvoice uses grouping rules and is processing a transaction class not defined for a grouping rule, then AutoInvoice only uses the mandatory transaction attributes to group transactions.

When does a grouping rule need a line ordering rule?

Assign an AutoInvoice line ordering rule to an AutoInvoice grouping rule when you want to organize the transaction lines belonging to a transaction created by the grouping rule in a specific order.

Use the Order By Type to specify whether to order the values belonging to a transaction attribute from least to greatest (Ascending) or greatest to least (Descending).

For example, when importing transactions from Distributed Order Orchestration, you can define a line ordering rule with the attribute SALES_ORDER_LINE to list the items on the invoice in the same order as they appear on the sales order.

Or, you can define a line ordering rule with the attribute AMOUNT and an Order By Type of Descending to ensure that the highest invoice line amounts are listed first on the transactions created by the grouping rule.


Guidelines for Defining Payment Terms

Use payment terms to identify due dates and discount dates on your customer transactions.

After you create payment terms, you can optionally assign them both to customer account and site profiles and to transaction types. The payment terms you assign are then assigned by default to transactions you create manually using the related customer account or site, or transaction type.

Considerations for payment terms include:

    Payment Terms and Customer Profiles

    Payment Terms and Discounts

    Payment Terms and Print Lead Days

    Split Payment Terms with Installments

    Prepayment Payment Terms

Payment Terms and Customer Profiles

The setup of payment terms on customer account and site profiles influences the use and availability of payment terms on transactions you create manually.

When you create a transaction manually, Receivables looks for payment terms to assign to the transaction in this order:

    Payment terms assigned to the site profile of the bill-to customer.

    Payment terms assigned to the account profile of the bill-to customer.

    Payment terms assigned to the transaction type.

You must enable the Override terms option on the customer account or site profile in order to change the payment terms assigned to the transaction. Enabling the Override terms option provides more flexibility in assigning payment terms to manual transactions.

If you don't enable the Override terms option on customer account and site profiles, then:

    You can't change the payment terms assigned by default.

    If you select a bill-to customer, and no payment terms were assigned either to the account or site profiles of this customer or to the transaction type, then no payment terms are available for use on the transaction.

    You can alternatively either select another bill-to customer or select payment terms before selecting a customer.

    If you select payment terms and then select a bill-to customer, and no payment terms were assigned to the account or site profiles of this customer, then you can't change the payment terms originally assigned.

Tip

If you intend to leave the Override terms option disabled on customer account and site profiles, then make sure that you assign payment terms to the transaction types that you intend to use for manual transactions.
Payment Terms and Discounts

Define standard payment terms for your customers to specify the due date and discount date for their open items. Payment terms can include a discount percent for early payment, and you can assign multiple discounts to each line of your payment terms.

For example, the payment terms named 2% 10, Net 30 indicates that a customer is allowed a two percent discount if payment is received within 10 days. After 10 days, the entire balance is due within 30 days of the transaction date with no applicable discount.

Enable the Allow discount on partial payments option to let your customers take discounts for partial payments on items associated with payment terms. A partial payment is a payment less than the remaining amount due. If you do this, you must also ensure that the Discount on partial payment Receivables system option is enabled.

Use the Discount Basis field to determine what amount to use to calculate discounts for the payment terms. If the payment terms use installments, you can assign discount percentages to each installment.

Use the Discount Basis Date field to select the date to use to calculate discounts. The choices are:

    Receipt Date: Date the receipt is created.

    Receipt Application Date: Date the receipt is applied to the transaction.

    Deposit Date: Date the receipt is deposited into the remittance bank.

The discount is applied if the transaction is paid within the payment terms discount date. The formula is: Transaction Date + Discount Due By Period >= Discount Basis Date (Receipt Date/Receipt Application Date/Deposit Date).
Payment Terms and Print Lead Days

The Print Receivables Transactions process prints eligible transactions according to the transaction date. You normally can't print a transaction in advance of the transaction date.

You can use the Print Lead Days field to allow printing of transactions with the applicable payment terms a designated number of days before the transaction date.

Use this field in conjunction with the due date and discount date to print and send customers transactions in advance of the transaction date, for example, to remind customers of due dates and potential discounts.
Split Payment Terms with Installments

Create split payment terms for invoice installments that have different due dates. The payment terms determine the amount of each installment.

Use the Installment Option field to determine how to allocate the freight and tax charged to transactions. You can either distribute tax and freight charges across all installments, or allocate all freight and tax charges to the first installment.

Define the payment schedule for the split payment terms. The payment schedule determines when each installment is due, how much in each installment is due, and how much discount to offer in each installment.
Prepayment Payment Terms

You can optionally define prepayment payment terms by enabling the Prepayment option. You assign prepayment payment terms to transactions to indicate which transactions require prepayment for goods and services.

Prepayment payment terms don't require the capture of funds in advance of invoicing or the delivery of prepaid goods or services. You must establish specific business practices at your enterprise if you want to capture these funds in advance.
Split Payment Terms and Amounts Due

Split payment terms derive different amounts due in each installment of the payment schedule, depending on the setting of the Installment Option field.

If the base amount is different from the relative amount, and you set the Installment Option field to Allocate tax and freight, Receivables prorates the base amount across the relative amounts of the payment schedule based upon the ratio you define. Receivables uses the following equation to determine the original amount due for each installment:

Amount Due = Relative Amount/Base Amount * Invoice Amount

If you set the Installment Option field to Include tax and freight in first installment, the base amount and the relative amounts that you specify for the payment schedule only indicate how the original line amounts of the invoices to which you assign these payment terms are distributed across different installments.

In this case, the original freight and tax amounts are included in the first installment, in addition to the line amount allocated by the ratio of the base amount and the relative amount that you specify for the first payment. Receivables uses the following equation to determine the original amount due for the first installment:

Payment Terms Discount Basis

The payment terms Discount Basis field determines on what basis Receivables calculates the discount amount.
Discount Basis

Invoice Amount

Calculates the discount amount based on the sum of the tax, freight, and line amounts of transactions.

Lines Only

Calculates the discount amount based on only the line amounts of transactions.

Lines, Freight Items and Tax

Calculates the discount amount based on the amount of line items and their freight and tax amounts, but excludes freight and charges at the transaction header level.

Lines and Tax, not Freight Items and Tax

Calculates the discount amount based on the line items and their tax amounts, but excludes freight items and their tax lines.
How Discounts Are Calculated

Receivables uses different formulas to calculate discounts, depending on your setup, the payment terms on the transaction, and the type of payment received.

Receivables provides formulas for these discount events:

    Maximum Discount

    Earned Discounts and Partial Payments Allowed

    Unearned Discounts with Partial Payment Discounts Allowed

    Earned Discounts with Partial Payment Discounts Not Allowed

    Unearned Discounts and Partial Payments Not Allowed

    Discount on Lines Only

Maximum Discount

Receivables uses the following formula to determine the maximum discount amount:

Maximum Discount = (Amount Due Original) * (Highest Discount Percent - Discount Taken)

Earned Discounts and Partial Payments Allowed

If the receipt amount is greater than the remaining amount due, less the discount, Receivables uses the following formula to determine the earned discount:

Earned Discount = Amount Due Remaining * Discount Percent

If the receipt amount is either the equal to or less than the remaining amount due, less the discount, Receivables uses the following formula to determine the earned discount:

Earned Discount = (Receipt Amount * Discount Percent) / (1 - Discount Percent)

Unearned Discounts with Partial Payment Discounts Allowed

Receivables uses the following formula to determine unearned discounts if partial payments are allowed:

Unearned Discount = Maximum Discount - Earned Discount

Earned Discounts with Partial Payment Discounts Not Allowed

If the Allow discount on partial payments option on the payment terms isn't enabled, Receivables only takes earned discounts if the receipt amount closes the installment.

Receivables uses the following formula to determine earned discounts, if partial payment discounts aren't allowed and the receipt amount closes the installment:

Earned Discount = Amount Due Original * Discount Percent

Unearned Discounts and Partial Payments Not Allowed

If the Allow discount on partial payments option on the payment terms isn't enabled, Receivables only takes unearned discounts if the receipt amount closes the installment.

Receivables uses the following formula to determine unearned discounts, if partial payments aren't allowed and the receipt amount closes the installment:

Unearned Discount = (Amount Due Original) * (Maximum Discount Percent - Earned Discount)

Discount on Lines Only

If the Discount Basis field on the payment terms is set to Lines Only, Receivables doesn't take discounts on receipt amounts applied to tax, freight, or late charges. Receivables uses the following formula to determine the discount amount:

Line Percent = Discount Percent * (Sum of Lines + Sum of Line Adjustments - Sum of Line Credits) / (Amount Due Original + Sum of Adjustments - Sum of Credits)

Once you determine the discount line percent, use this as the discount percent in all of these formulas.
Example of Deriving Discount Amounts

This example illustrates how Receivables derives discount information based on the date of the receipt.

When you enter receipts manually, Receivables determines whether discounts are allowed based on the payment terms, discount grace days, Receivables system options, transaction date, and the payment terms discount basis date (receipt date, receipt application date, or receipt deposit date). If discounts are allowed, Receivables determines the amount of both earned and unearned discounts, as determined by the details of your setup.
Scenario

Assume that you're using the following information:

    Unearned Discounts = Yes

    Payment Terms: 10/10, 5/15, Net 30

    Discount Basis Date: Receipt Date

    Discount Grace Days = 0

    Calculate Discount on Lines Only = No

    Allow Discount on Partial Payments = Yes

This table shows the discount details:

Percent
	

Date
	

On Lines Only
	

On Partial Payments

5
	

17-DEC-10
	

NO
	

YES

10
	

12-DEC-10
	

NO
	

YES

Assume these invoice details:

    Invoice #101

    Invoice Date: 02-DEC-10

    Due Date: 01-JAN-11

    Amount: $1100

The following table displays the default discount amounts based on different receipt application dates. You can also see the amount of earned and unearned discounts that your customers can take.

Receipt Date
	

Receipt Amount
	

Default Discount Amount
	

Message Line
	

Earned Discount Allowed
	

Unearned Discount Allowed

From 02-DEC-10 to 12-DEC-10
	

$990
	

$110
	

Discount Earned = 110

Total = 110
	

$110
	

None

After 17-DEC-10
	

$990
	

0

To take the unearned discount, you must update the amount.
	

Discount Earned = 0

Total = 110
	

None
	

$110

From 02-DEC-10 to 12-DEC-10
	

$1000

$10 of the receipt is left as Unapplied after the default discount.
	

$110
	
	
	AutoAccounting Account Types and Segment Values
	
	Define AutoAccounting to specify how to determine the default general ledger accounts for transactions that you enter manually or import using AutoInvoice.
	
	You must define AutoAccounting before you can enter transactions in Receivables. When you enter or update transactions, you can override the default general ledger accounts that AutoAccounting creates.
	Account Types
	
	Define an AutoAccounting record for each type of account. You can then assign either a table name or constant value to each segment of the account.
	
	AutoInvoice Clearing
	
	The clearing account for imported transactions. Receivables uses the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this option on the transaction source used for imported transactions.
	
	Bills Receivable
	
	The bills receivable account for your transactions. Receivables uses this account when you apply transactions to bills receivable.
	
	Factored Bills Receivable
	
	The factored bills receivable account for your bills receivable transactions.
	
	Freight
	
	The freight account for transactions.
	
	Receivable
	
	The receivable account for transactions.
	
	Remitted Bills Receivable
	
	The remitted bills receivable account for your bills receivable transactions.
	
	Revenue
	
	The revenue and late charges account for transactions.
	
	Tax
	
	The tax account for transactions.
	
	Unbilled Receivable
	
	The unbilled receivable account for transactions. Receivables uses this account when the transaction uses the In Arrears invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue before the invoicing rule bills it, Receivables uses this account.
	
	Unearned Revenue
	
	The unearned revenue account for transactions. Receivables uses this account when a transaction uses the In Advance invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue after the invoicing rule bills it, Receivables uses this account.
	
	Unpaid Bills Receivable
	
	The unpaid bills receivable account for your bills receivable transactions.
	Table Names
	
	Enter either the table name or constant value that you want Receivables to use to retrieve information for each accounting flexfield segment of a given account.
	
	Enter a constant value instead of a table name if you want AutoAccounting to always use the same value for a given segment.You must ensure that you enter valid information for this segment.
	
	For example, if you defined your Company segment as a two-character segment with valid values ranging from 00 to 10, you must only enter a two-character value within this range.
	
	Bill-to Site
	
	Use the bill-to site of the transaction to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
	
	Drawee Site
	
	Use the drawee site table to determine this segment of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account.
	
	Remittance Banks
	
	Use the remittance banks table to determine this segment of your factored bills receivable and remitted bills receivable account.
	
	Salesperson
	
	Use the salesperson table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
	
	If you select this option for AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with the salesperson on the transaction. If you select this option for the unbilled receivable account, Receivables uses the receivable account associated with the salesperson on the transaction.
	
	If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
	
	Standard Lines
	
	Use the memo line or inventory item on the transaction to determine this segment of revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue accounts.
	
	If you select this option for AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to the memo line item or inventory item.
	
	If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
	
	Tax
	
	Use the tax account assigned to the tax rate codes on the transaction.
	
	Transaction Types
	
	Use the transaction types table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
	
	If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.




Discount Earned = 110

Total = 110
	

$110
	

None

From 13-DEC-10 to 17-DEC-10
	

$1000

After the default discount of $52.63, the receipt is fully applied. However, a balance of $47.37 remains on the invoice.
	

$52.63

To take the unearned discount, you must update the amount.
	

Discount Earned = 52.63

Total = 110
	

$52.63
	

$57.37

After 17-DEC-10
	

$1000

Since there's no default discount, the receipt is fully applied. A balance of $100 remains on the invoice.
	

0

To take the unearned discount, you must update the amount.
	

Discount Earned = 0

Total = 110
	

None
	

$110

What's the difference between balance forward payment terms and other payment terms?

Balance forward billing payment terms pass the balance forward billing cycle to the Create Balance Forward Bill process. The billing cycle determines when customer balance forward bills are generated.

Because balance forward bills can't be split across installments, all settings related to installments on balance forward billing payment terms are disabled. You can't change existing payment terms back and forth for use as both non-balance forward billing and balance forward billing payment terms.
Guidelines for Creating an AutoAccounting Structure

To implement AutoAccounting, you first define your AutoAccounting structure and then define information for each salesperson, transaction type, product, and tax rate code in order for AutoAccounting to properly create your default accounts.

You must define your AutoAccounting structure before you can enter invoices and credit memos, and you can only define one structure for each account type. During transaction creation, if AutoAccounting can't determine all of the accounting flexfield segments, it derives what it can and displays an incomplete accounting flexfield. You must provide any missing accounting flexfield information before you can complete a transaction.

Review these guidelines for each account type when creating your AutoAccounting structure:

    AutoInvoice Clearing Account

    Freight Account

    Receivable Account

    Revenue Account

    Tax Account

    Unbilled Receivable Account

    Unearned Revenue Account

    Available Information for Each Account

This table indicates the information that you can use to create each type of account. (Rec) and (Rev) indicate whether the account information is taken from the corresponding Receivables or Revenue accounting flexfield.

Information Source / AutoAccounting Type
	

Constant
	

Customer Bill-to Site
	

Salesperson
	

Transaction Type
	

Standard Item
	

Tax Rate Code

AutoInvoice Clearing
	

Yes
	

Yes
	

Yes (Rev)
	

Yes
	

Yes (Rev)
	

No

Freight
	

Yes
	

Yes
	

Yes
	

Yes
	

Yes (Rev)
	

No

Receivable
	

Yes
	

Yes
	

Yes
	

Yes
	

No
	

No

Revenue
	

Yes
	

Yes
	

Yes
	

Yes
	

Yes
	

No

Tax
	

Yes
	

Yes
	

Yes (Rev)
	

Yes
	

Yes (Rev)
	

Yes

Unbilled Receivable
	

Yes
	

Yes
	

Yes (Rec)
	

Yes
	

Yes (Rev)
	

No

Unearned Revenue
	

Yes
	

Yes
	

Yes (Rev)
	

Yes
	

Yes (Rev)
	

No

Notes on the table:

    If AutoAccounting for the AutoInvoice Clearing, Tax, Unbilled Receivable, or Unearned Revenue account is based on Standard Item, Receivables uses the segment from the standard item Revenue accounting flexfield.

    If AutoAccounting for the AutoInvoice Clearing, Tax, or Unearned Revenue account is based on Salesperson, Receivables uses the segment from the salesperson Revenue accounting flexfield.

    If AutoAccounting for Unbilled Receivable is based on Salesperson, Receivables uses the segment from the salesperson Receivable accounting flexfield.

    If the AutoInvoice Clearing, Revenue, Tax, Unbilled Receivable, or Unearned Revenue account is based on Salesperson, and there are multiple salespersons on the transaction, then Receivables creates separate distributions for each salesperson.

AutoInvoice Clearing Account

During AutoInvoice processing, Receivables uses the AutoInvoice clearing account to store any differences between the specified revenue amount and the (price * quantity) for imported invoice lines.

Receivables only uses the AutoInvoice clearing account if you enabled the Create clearing option on the transaction source assigned to imported transactions. However, you must define a clearing account whether or not you enable this option.

You can use constant value, customer bill-to site, salesperson, transaction type, and standard item for your AutoInvoice clearing account. If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.
Freight Account

The freight account controls the account in general ledger to which you post freight amounts. You can use constant value, customer bill-to site, salesperson, transaction type, and standard item to specify your freight account.

If you choose standard item, Receivables uses the specified Revenue accounting flexfield. In addition, you can't import transactions with header-level freight through AutoInvoice.

If the transaction has a line type of LINE with an inventory item of freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
Receivable Account

The receivable account controls the account in your general ledger to which you post receivable amounts. You can use transaction type, customer bill-to site, salesperson, and constant value to specify your receivable account.
Revenue Account

The revenue account controls the account in your general ledger to which you post your revenue amounts. You can use transaction type, customer bill-to site, standard item, salesperson, and constant value to specify your revenue account.
Tax Account

The tax account controls the account in your general ledger to which you post tax amounts. You can use tax rate codes, customer bill-to site, salesperson, transaction type, standard item, and constant value to specify your tax account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.
Unbilled Receivable Account

Receivables uses the unbilled receivable account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction before the invoicing rule bills for the transaction, Receivables posts this amount to the unbilled receivable account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unbilled receivable account.

If you select standard item, Receivables uses the specified Revenue accounting flexfield. If you select salesperson, Receivables uses the salesperson Receivable accounting flexfield.
Unearned Revenue Account

Receivables uses the unearned revenue account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction after the invoicing rule bills for the transaction, Receivables posts this amount to the unearned revenue account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unearned revenue account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.



Options for Posted and Non-Posted Activities using Transaction Types

Use the Open Receivable and Post to GL options on the transaction type to manage posted and non-posted activities on transactions.

If the Open Receivable option is enabled, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on-account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.

If the Post to GL option is enabled, Receivables posts transactions with this transaction type to general ledger. If this option isn't enabled, then no accounting is generated for transactions with this transaction type.

Considerations for defining transaction types include:

    Void Transaction Type

    Updates to Customer Accounts and Aging

    Updates to Accounting Only

Void Transaction Type

You can void a debit memo, credit memo, on-account credit, or invoice by defining a Void transaction type and assigning it to the transaction. To define a Void transaction type, set the Open Receivable and Post to GL options to No. You can void a transaction by changing the transaction type to Void provided:

    No activity exists against the transaction.

    Transaction hasn't posted to general ledger.

This activity isn't included in the Review Customer Account Details page since the activity doesn't modify the customer balance.
Updates to Customer Accounts and Aging

If you set the Open Receivable option to Yes and the Post to GL option to No, Receivables updates customer accounts with the transaction activity of transactions assigned this transaction type. This has no effect on accounting.

Use transaction types with these settings during your initial implementation, where the transaction amount is included in the general ledger beginning balance for the receivable account, but activity still needs to be aged and payment collected against it. All related activities against the transaction, such as credit memos, payments, and adjustments, are accounted as affecting the customer balance. You can review these activities on the Review Customer Account Details page.
Updates to Accounting Only

If you set the Open Receivable option to No and Post to GL option to Yes, Receivables updates accounting without any impact on the customer balance.

Use transaction types with these settings when you want to adjust accounting activity, such as when you rebill a customer in order to reclassify the general ledger account. A credit memo and invoice with the Open Receivable option set to No are created where the credit memo reverses the general ledger account of the original invoice, and the invoice creates accounting with the new general ledger account. This activity is transparent to the customer because the original invoice is used for the cash application when payment is received.

This activity isn't included in the Review Customer Account Details page since the activity doesn't modify the customer balance.

Transactions with the Open Receivable option set to No appear in the Other Accounting section of the Receivables to General Ledger Reconciliation Report, even though transactions post to Receivables accounts assigned the financial category of Accounts Receivable.
Natural Application and Overapplication

The transaction type that you assign to a transaction defines the type of application permitted against the transaction balance. This definition is managed by the Natural Application Only and Allow Overapplication options on the transaction type.

Natural application only lets you apply a payment or credit to a transaction that brings the transaction balance close to or equal to zero. For example, if an invoice has a balance due of $400, you can make applications against this transaction up to $400 only. With natural application, you can only bring the balance to zero.

Overapplication lets you apply more than the balance due on a transaction. For example, if you apply a $500 receipt to a $400 invoice, this overapplies the invoice by $100 and reverses the balance sign from positive to negative.
Use of Natural Application and Overapplication

Whether or not a transaction allows overapplication determines the actions that you can take on that transaction.

If a transaction that allows natural application only is paid in full, then in order to credit the transaction you must first unapply the receipt from the transaction before creating the credit.

If you want to use AutoInvoice to import credit memos against paid invoices and evaluate these credits for automatic receipt handling, then the transaction type of the paid invoices must allow natural application only. However, if the Receipt Handling for Credits option isn't enabled on the transaction source of the transaction, AutoInvoice leaves the related credit memo in the interface tables until you unapply the receipt from the invoice.
Guidelines for Transaction Type Reference Accounts

Define the accounting for transaction types of class Invoice, Chargeback, Credit Memo, and Debit Memo. Receivables uses this information along with your AutoAccounting definition to determine the accounts to use for transactions with the applicable transaction type.
Revenue

Enter a revenue account, unless the transaction type doesn't allow freight.

If the Invoice Accounting Used for Credit Memos profile option is set to No, then a revenue account isn't required for Credit Memo transaction types.
Freight

Enter a freight account, unless the transaction type doesn't allow freight.
Receivable

Enter a receivable account for all transaction types.

If the Post To GL option on the transaction type is enabled, Receivables creates a receivable transaction record using this account in order to transfer accounting to general ledger and create a journal entry.

For Chargeback transaction types, enter the Receivable Chargeback account. The offset to the receivable account on the original debit transaction is generated by the chargeback adjustment.

If the Invoice Accounting Used for Credit Memos profile option is set to No, then a receivable account isn't required for Credit Memo transaction types.
AutoInvoice Clearing

If this is an Invoice or Debit Memo transaction type, enter an AutoInvoice clearing account. Receivables uses this account to hold any difference between the revenue amount specified for the revenue account and the selling price times the quantity for imported invoice lines.

Receivables only uses the AutoInvoice clearing account for imported transactions that have a transaction source with the Create clearing option enabled. If the Create clearing option isn't enabled, then AutoInvoice requires that the revenue amount on the invoice be equal to the selling price times the quantity, or the invoice is rejected.
Tax

If this is an Invoice, Credit Memo, or Debit Memo transaction type, enter a tax account.
Unbilled Receivable

If this is an Invoice or Credit Memo transaction type, enter an unbilled receivable account. This account is for transactions that use the In Arrears invoicing rule.
Unearned Revenue

If this is an Invoice or Credit Memo transaction type, enter an unearned revenue account. This account is for transactions that use the In Advance invoicing rule.


How can I arrange the creation of transaction types?

Create transaction types for each transaction class, and create them in a way that can account for dependencies between transaction types.

Create your transaction types in the following order:

    Credit memo transaction types

    Invoice transaction types

    Debit memo transaction types

    Chargeback transaction types

If applicable, create the transaction types that you want to add to your transaction sources before creating transaction sources.

If you're using late charges, create a transaction type with a class of Debit Memo to present late charges as debit memos, and a transaction type with a class of Invoice to present late charges as interest invoices. Specify the receivable and revenue accounts for these transaction types. Receivables uses these accounts instead of AutoAccounting when generating late charges.
How can I use transaction types to review and update customer balances?

Use the Open Receivable option on the transaction type to implement an approval cycle for any temporary or preliminary transactions.

For example, if you have particularly sensitive debit memos, credit memos, on-account credits, chargebacks, or invoices that you want to review after creation, you can define a transaction type called Preliminary with Open Receivable set to No and assign it to the applicable transactions. This transaction type doesn't update your customer balances.

Once you review and approve these transactions, you can define a transaction type called Final with Open Receivable set to Yes and assign it to the same transactions. This will now update your customer balances on these transactions.


Guidelines for Transaction Numbering

Use the various options on the transaction source assigned to a transaction to manage your transaction numbering requirements.

Refer to these guidelines when defining transaction numbering for transactions assigned to specific transaction sources:

    Document Sequences

    Automatic Transaction Numbering

    Copy Document Numbers to Transaction Numbers

    Allow Duplicate Transaction Numbers

    Credit Memo Transaction Source

Document Sequences

If necessary, define document sequences to assign unique numbers to each transaction, in addition to the transaction number assigned automatically.

Ensure that the necessary setups for document sequences are completed, according to your requirements.
Automatic Transaction Numbering

To automatically number new transactions you create using a transaction source, enable the Automatic transaction numbering option and enter a number in the Last Number field.

For example, to start numbering transactions with 1000, enter a last number of 999. Receivables automatically updates the Last Number fields on transaction sources, so you can review the transaction source later to see the last transaction number that was generated.
Note

The last transaction number on the transaction source is an approximation only, due to caching.

You can use automatic transaction numbering with both Imported and Manual transaction sources.
Copy Document Numbers to Transaction Numbers

If you're using document sequences and you want to use the same number as both the document number and the transaction number for transactions assigned to a transaction source, enable the Copy document number to transaction number option.

If you're using Gapless document sequences, you should enable this option if you require gapless transaction numbering. This ensures that transaction numbers are generated sequentially with no missing numbers.
Allow Duplicate Transaction Numbers

Enable the Allow duplicate transaction numbers option to allow duplicate transaction numbers within a transaction source.

This option is for manual transaction numbering only.
Credit Memo Transaction Source

Assign a credit memo transaction source to an invoice transaction source, if you want to number credit memos differently from the invoices that they credit.
AutoInvoice and Sales Credit Information

During AutoInvoice processing, whether you must provide sales credit information on imported transaction lines depends on the settings of the Allow sales credits option on the transaction source and the Require salesperson Receivables system option.

These are the requirements for passing sales credit information on imported transaction lines:

    If the Require salesperson system option and the Allow sales credits option on the transaction source are both enabled, you must provide sales credit information.

    If the Require salesperson system option isn't enabled and the Allow sales credits option on the transaction source is enabled, you can provide sales credit information, but it isn't required.

    If the Require salesperson system option is enabled and the Allow sales credits option on the transaction source isn't enabled, you must provide sales credit information.

    If neither the Require salesperson system option nor the Allow sales credits option on the transaction source are enabled, you can't provide sales credit information. AutoInvoice ignores any values that you pass.

How AutoInvoice Validates Imported Transactions

Use the AutoInvoice Options and Import Information sections of an Imported transaction source to define how AutoInvoice validates imported transaction lines.

You don't have to pass values for all of the fields that are referenced in the transaction source. If you don't want AutoInvoice to pass certain data, then where available you can set the related option to None.
Note

Even if you set a transaction source data option to None in order to avoid importing this information into the interface tables, AutoInvoice can still validate and reject transaction lines with invalid data.
Settings That Affect the Validation of Imported Transactions

These settings affect the validation of imported transactions:

    Invalid Line field: Indicate how AutoInvoice handles imported transactions with invalid lines by selecting either Reject Invoice or Create Invoice.

        If you select Reject Invoice, AutoInvoice doesn't import this transaction or any of its lines into the interface tables.

        If you select Create Invoice, AutoInvoice creates a transaction with valid lines only. For example, you import an invoice with three invoice lines and one of the lines is invalid. AutoInvoice creates the invoice with the two valid lines only and rejects the invalid line. You can use the Edit Transaction page to add the rejected line.

    Accounting Date in a Closed Period field: Indicate how AutoInvoice handles imported transactions that have lines in the interface lines table that are in a closed accounting period.

        Select Adjust to have AutoInvoice automatically adjust the accounting dates to the first accounting date of the next open or future enterable period.

        Select Reject to reject these transaction lines.

    In the Import Information sections, where applicable select Number, Value, Segment, or ID for each option to indicate how AutoInvoice validates information:

        Select Number to import a record into the interface tables using its assigned number.

        Select Value to import a record into the interface tables using its actual name.
        Note

        Use Value if you intend to use the transaction source to import data from a non-Oracle system.

        Select Segment to use the flexfield segment.

        Select ID to use the internal identifier of the record.

    Select Amount or Percent to indicate how AutoInvoice validates Sales Credits and Revenue Account Allocations on transaction lines.

How Imported Transactions Are Validated

AutoInvoice validates imported transactions based on the settings of the assigned Imported transaction source. Transactions that fail validation appear in the Import AutoInvoice Validation report.

AutoInvoice ensures that certain column values agree with each other. These values can be within an interface table or multiple interface tables. For example, if the transaction source indicates that a revenue scheduling rule can't be used, AutoInvoice ignores any values passed for invoicing rule, revenue scheduling rule, and revenue scheduling rule duration.

AutoInvoice performs these validations on transaction lines with revenue scheduling rules:

    Requires that these transactions also include an invoicing rule, if you import transactions that use revenue scheduling rules.

    Rejects lines, if the revenue scheduling rule has overlapping periods.

    Rejects lines, if the designated accounting periods don't exist for the duration of the revenue scheduling rule.

How You Implement CPQ Cloud and Receivables Processing

Set up CPQ Cloud and Receivables to enable the integrated quote-to-cash cloud service. This integrated service lets you manage the entire process of quote, pricing, order entry, credit checking, and invoicing.

To set up the CPQ Cloud/Receivables integration service, perform one or more of these tasks:

    Set up CPQ Cloud and CPQ Cloud data.

    Set up Receivables transaction sources.

    Set Up for multiple CPQ Cloud Instances.

Set Up CPQ Cloud

Perform the necessary setups in CPQ Cloud using the CPQ Administration pages.

Create a data table definition for each of the integration services used by the CPQ Cloud/Receivables quote-to-cash cloud service:

    Credit Check Service: Service that verifies customer creditworthiness.

    Receivables Invoice Service: Service that transfers order lines from CPQ Cloud to the AutoInvoice interface tables in Receivables.

Each data table definition includes these attributes:

    Endpoint URL: The URL to use to contact the service.

    User Name: The valid user name recognized by the service.

    Password: The accompanying password for the valid user.

Set Up the CPQ Cloud Transaction Source

Receivables provides an Imported transaction source under the Common reference data set to use to configure the CPQ Cloud/Receivables integrated service.

Use this transaction source to:

    Manage the transfer of transaction information from CPQ Cloud to the AutoInvoice interface tables.

    Manage the Call Back service to send Receivables transaction information to CPQ Cloud after the transactions are created.

To set up the transaction source for CPQ Cloud:

    Navigate to the Edit Transaction Source page.

    Open the CPQ Cloud transaction source.

    If applicable, enter the legal entity.

    If applicable, update the From Date and To Date fields.

    In the Oracle CPQ Cloud Integration section, check the Enabled option.

    Click the Define button to open the Define Endpoint Policy window.

    In the URL field, enter the URL to use to contact the Call Back service.

    In the Security Policy field, enter oracle/wss_username_token_over_ssl_client_policy.

    In the User Name field, enter the user name to use for the Call Back service.

    In the Password field, enter the accompanying password for the valid user.

    Click the Save and Close button to exit the Define Endpoint Policy window.

    Save and close the Edit Transaction Source page.

Set Up for Multiple CPQ Cloud Instances

If you plan to have more than one CPQ Cloud instance sending data to Receivables, you must represent each CPQ instance as a business unit and define a transaction source for each instance.

To set up for multiple CPQ Cloud instances:

    Define one reference data set for each CPQ Cloud instance.

    Associate this reference data set to the business unit for the reference object transaction source.

    Create a transaction source for each reference data set:

        Open the Create Transaction Source page.

        In the Transaction Source Set field, select the applicable reference data set for the business unit.

        If applicable, enter the legal entity.

        In the Name and Description fields, enter a name and description for this transaction source.

        In the Type field, select Imported.

        If applicable, update the From Date and To Date fields.

        Complete the remaining fields in the transaction source with the same settings as the predefined transaction source.

        In the Oracle CPQ Cloud Integration section, check the Enabled option and complete the endpoint policy.

        Save and close the Create Transaction Source page.

What do I create before creating transaction sources?

You may want to create certain records before creating your transaction sources.

You can optionally create these objects for Manual or Imported transaction sources:

    Transaction types: Define the transaction types that you want to appear by default on transactions assigned to your transaction sources. You select the transaction type you want for a transaction source in the Standard Transaction Type field.

    Credit memo transaction source: Define one or more transaction sources for credit memos before you define a transaction source for invoices. You then select a credit memo transaction source to accompany the invoice transaction source in the Credit Transaction Source field.

    You can use credit memo transaction sources in these ways:

        Number the credit memos created against invoices differently from the invoices they're crediting.

        Create a manual credit memo transaction source for credit memo request approvals, when the approved credit memo amount is greater than the open balance on the invoice. For these transaction sources, set the Receipt Handling for Credits option to On Account.

You can optionally create these objects for Imported transaction sources only:

    Invoice Transaction Flexfield: Define the reference information that you want to capture in the Invoice Transaction Flexfield and display on imported transactions, such as a purchase order number.

    AutoInvoice grouping rule: Define the grouping rule to appear by default on imported transaction lines.

    AutoInvoice clearing account: Define an AutoInvoice clearing account, if you intend to enable the Create clearing option. AutoInvoice puts any difference between the revenue amount and the selling price times the quantity for a transaction into this account.

How can I manage credit memos with transaction sources?

Special conditions may apply to the creation of transaction sources for credit memos.

Review these considerations for transaction sources assigned to credit memos:

    Define Manual transaction sources for credit memos created by the credit memo request approval process.

    Define credit memo transaction sources to assign to invoice transaction sources using the Credit Transaction Source field. Use credit memo transaction sources on invoice transaction sources under these conditions:

        Number the credit memos created against invoices differently from the invoices they're crediting.

        Create a manual credit memo transaction source for credit memo request approvals, when the approved credit memo amount is greater than the open balance on the invoice. For these transaction sources, set the Receipt Handling for Credits option to On Account.

    Enable the Copy transaction information flexfield to credit memo option on Manual transaction sources used for credit memos, to copy the Invoice Transaction Flexfield reference information to the credit memo crediting the invoice.

    Select the transaction type to assign to the invoice using the Standard Transaction Type field, if the credit memo transaction source requires invoice transaction types that use natural application only.

What happens if I don't enter an AutoInvoice grouping rule?

Assign the AutoInvoice grouping rule to Imported transaction sources that AutoInvoice uses to group imported transaction lines.

If you don't assign a grouping rule to an Imported transaction source, AutoInvoice uses the following hierarchy to determine which rule to use:

    Grouping rule assigned to the transaction source of the transaction line.

    Grouping rule assigned to the bill-to customer site profile of the transaction line.

    Grouping rule assigned to the bill-to customer profile of the transaction line.

    Grouping rule assigned to Receivables system options.

What happens if I don't create a clearing account?

If you don't use an AutoInvoice clearing account, but you enable the Create clearing option on the transaction source, the revenue amount must equal (Selling Price * Quantity) for all transactions AutoInvoice processes. AutoInvoice rejects transaction lines that don't meet this requirement.

Revenue Accounts and Memo Lines

You can optionally associate a revenue account with a memo line.

If AutoAccounting depends on memo line, Receivables uses the revenue account segment values defined for the memo line, in combination with the rest of your AutoAccounting structure, to determine the default revenue, freight, AutoInvoice clearing, tax, unbilled receivable, unearned revenue, and receivable accounts for invoices that include the memo line.

When you create a debit memo or on-account credit memo with memo lines, Receivables uses the revenue account from the original receivable item as the credit account. However, when you create debit memo reversals or chargebacks, Receivables uses instead the revenue flexfield from the original receivable item as the credit account.
When do I use memo lines?

Use memo lines when the item isn't an inventory item. For example, you can define a memo line called Consulting Services to identify charges for consulting activities. You can assign memo lines to debit memos, on-account credits, debit memo reversals, chargebacks, and invoices.

How can I use tax memo lines?

You can only use tax memo lines if your tax definition lets you enter manual tax lines on transactions. After you enter a tax memo line on a transaction, you can specify the amount of tax to assign to the transaction line.

How You Create a Remit-to Address

Create remit-to addresses to specify on transactions and statements where your customers are to send payment for their open receivables.

Considerations for remit-to addresses include:

    Receivables system options > Billing and Revenue tab: You can set these Receivables system options as part of your remit-to address setup:

        Print remit-to address option: Enable this option to print remit-to addresses on your customer statements.

        Print home country option: Enable this option to print your home country on transactions and statements with addresses in that country.

        Default Country field: Select the country to assign by default to the remit-to addresses you create.

    Reference data set: Remit-to addresses belong to a reference data set. You can assign remit-to addresses to the Common set or to business unit-specific sets.

    Receipt from Criteria section: Use this section to assign remit-to addresses by default to the transactions and statements of specific customer bill-to sites.

Note
A remit-to address is required on all Receivables transactions. If you don't set up default remit-to addresses for customer transactions, the Remit-to Address field remains blank on the transaction. You can't update and save any fields on the transaction or complete the transaction without entering a remit-to address. You must ensure that you enter a remit-to address before updating any other fields on the transaction. In the Edit Transaction page, click the Show More link, navigate to the Payment tab, and enter a remit-to address.

To create a remit-to address:

    Navigate to the Create Remit-to Address page.

    In the Remit-to Address Set field, select a reference data set.

    The Country field displays the default country defined in Receivables system options. If necessary, select another country for the remit-to address.

    If you select another country, this may update the required and optional address fields. You may also need to select the reference data set again.

    Enter the address details and save. You return to the Manage Remit-to Addresses page.

    In the Manage Remit-to Addresses page, search for and select the remit-to address you just created.

    In the Receipt from Criteria section, click the Create (+) icon to open the Create Receipt from Criteria window for the remit-to address.

    Use this window to assign the remit-to address to customer bill-to sites.

    In the Country field, select the country you want. By default, the remit-to address is assigned to all customer bill-to sites defined in this country.

    If necessary, use the State and Postal Code fields to restrict the remit-to address assignment to specific regions of the country.

    Save your work.

How can I use remit-to addresses?

The remit-to address lets your customers know where to send payment for their open debit items.

After you create a remit-to address, you can assign it to the bill-to addresses of the customers and customer sites that you designate by country and, if applicable, by region and postal code range.

If the Print remit-to address Receivables system option is enabled, the remit-to address is printed on the related customer dunning letters and statements.
How does AutoInvoice validate remit-to addresses?

During the import process, AutoInvoice rejects all invoices for which it can't determine a remit-to address.

In order for AutoInvoice to import an invoice, you must either define a remit-to address for the geographical location of each applicable bill-to site or define a remit-to address to use as default for one or more locations.
How can I define a default remit-to address?

Create or select a remit-to address, then open the Receipts from Criteria window. Select the country that you want to assign to this remit-to address.

If you only select a country, then all customer bill-to sites in this country are assigned this remit-to address.

If you want to assign this remit-to address to specific locations within the country, you can optionally select a state or region within the country, and a range of postal codes.
Why did the country appear?

When you create a remit-to address, a country appears by default if one was defined in Receivables system options. You can change the default to the applicable country of the remit-to address.

Why do I verify the address?

If you have Trading Community Data Quality installed, you can expose a Verify Address button on the Create and Edit Remit-to Address pages for applicable countries.

After you enter a remit-to address, use the Verify Address button to confirm that the address is in the Trading Community Model registry. If the address doesn't exist, Receivables either presents alternative addresses or lets you optionally add the address you entered to the registry.
Create a Shared Service Model in Receivables

Use service provider relationships to create a shared service model in Receivables to centralize the processing of customer payments.

In the shared service model, you define one servicing business unit for customer payments. You then create a service provider relationship between this servicing business unit and one or more client billing business units.
Note

All business units must belong to the same ledger.

Once you define this relationship, the servicing business unit can receive and process payments for all of its client billing business units. The shared service model for centralized customer payment processing supports all receipt creation methods in Receivables:

    Manual receipts.

    Receipts uploaded using a spreadsheet.

    Lockbox receipts.

    Automatic receipts.

Receivables provides additional functionality for cross-business unit receipt processing, to facilitate the processing of customer payments:

    Allow a billing business unit outside the service provider relationship to have payments for its transactions processed by any other business unit in the same ledger.

    Allow an individual receipt to be applied to transactions of any business unit in the same ledger.

Perform these procedures to manage shared services in Receivables:

    Define Customer Payments Service Providers

    Define Receivables System Options for Cross-Business Unit Receipt Processing

    Enable a Receipt for Cross-Business Unit Processing

Define Customer Payments Service Providers

Perform the steps in this procedure to define a servicing business unit and client billing business units.

    Create a servicing business unit and client business units.

    Assign the appropriate business functions to each business unit:

        Open the Assign Business Functions page for the servicing business unit.

        Assign business functions to the servicing business unit. At a minimum, you must assign the servicing business unit the Customer Payments business function.

        Save your work.

        Open the Assign Business Functions page for the first client business unit.

        Assign business functions to the client business unit. At a minimum, you must assign the client business unit the Billing and Revenue Management business function.

        Save your work.

        Repeat steps 4 to 6 for each client business unit.

    Assign the servicing business unit to each client business unit:

        From the Manage Service Provider Relationships task, open the Manage Service Providers page for the first client business unit.

        In the Customer Payments Service Providers section, click the Add icon.

        In the Search and Select window, select the servicing business unit.

        Save your work.

        Repeat steps 1 to 4 for each client business unit.

Define Receivables System Options for Cross-Business Unit Receipt Processing

Perform the steps in this procedure to allow a billing business unit outside the service provider relationship to have payments for its transactions processed by any other business unit in the same ledger.

    From the Manage Receivables System Options task, open the Edit System Options page for the business unit that you want.

    Navigate to the Billing and Revenue tabbed region.

    Enable the Allow any business unit to process receipts option.

    Save your work.

    This business unit can now have payments for its transactions processed by any other business unit in the same ledger.

Enable a Receipt for Cross-Business Unit Processing

Perform the steps in this procedure to apply an individual receipt to one or more transactions belonging to any business unit in the same ledger.

    Use the Create Receipt page to create a new receipt or the Edit Receipt page to open an unapplied receipt.

    In the Application tabbed section, click the Add Open Receivables button.

    In the Add Open Receivables window, enable the Include transactions from all business units option.

    Search for and select the transactions that you want to apply to the receipt. You can select transactions from any business unit in the same ledger.

    Click the Add button and then the Done button.

    If necessary, update the figure in the Applied Amount field for each applicable transaction.

    Click the Save button to apply the receipt to the selected transactions.


Rules of the Application Rule Set

When you apply a receipt or credit memo to a transaction, the application rule set determines how Receivables reduces the open balance of the line, tax, freight, and late charge amounts on a transaction.

Receivables uses the application rule set assigned to the transaction type to process payment applications. If no application rule set is assigned to the transaction type, then the application rule set assigned to Receivables system options is used.

You can arrange the order of the line types and application rules in an application rule set according to your needs. Each line type must appear in an application rule set, and appear only once. The Overapplication rule is always last in the sequence.
Line First - Tax After Rule

The Line First - Tax After rule first applies the payment to open line amounts, and then applies the remaining amount to the associated tax.

If the payment is greater than the sum of the open line and tax amounts, Receivables attempts to close each remaining open item by applying the remaining amount in the following order, stopping when the payment has been fully applied:

    Freight

    Late charges

After the payment is fully applied, if a receipt amount remains, this amount is managed by the Overapplication rule.
Line and Tax Prorate

The Line and Tax Prorate rule applies a proportionate amount of the payment to open line and tax amounts for each line.

If the payment is greater than the sum of the open line and tax amounts, Receivables attempts to close each remaining open item by applying the remaining amount in the following order, stopping when the payment has been fully applied:

    Freight

    Late charges

After the payment is fully applied, if a receipt amount remains, this amount is managed by the Overapplication rule.
Prorate All

The Prorate All rule applies a proportionate amount of the payment to each open amount associated with a debit item (any line, tax, freight, and late charge amounts for this item).

Receivables uses the following formula to determine the applied amount:

Applied Amount = open application line type amount / sum of application line types in rule details * Receipt Amount

After the payment is fully applied, if a receipt amount remains, this amount is managed by the Overapplication rule.
Overapplication Rule

The Overapplication rule is always the last rule in an application rule set. This rule manages any remaining receipt amount after the open balance of all transaction lines has been reduced to zero.

If the transaction type for the debit item allows overapplication, Receivables applies the remaining amount to transaction lines, making the balance due negative. If the transaction type for the debit item doesn't allow overapplication, you can either place the remaining amount on-account or leave it unapplied.

Examples of Using Application Rules

These examples show how each application rule in an application rule set applies a payment to a transaction.

Invoice 123 contains these details:

Field
	

Value

Line
	

$1000

Tax
	

$140

Freight
	

$200

Total
	

$1340

Your customer remits a partial payment of $1040 for this invoice. This table shows how Receivables applies the payment using each of the three application rules:

Application Rule
	

Total Amount Applied
	

Line Amount Applied
	

Tax Amount Applied
	

Freight Amount Applied

Line First - Tax After
	

1040
	

1000
	

40
	

0

Line and Tax Prorate
	

1040
	

912.28
	

127.72
	

0

Prorate All
	

1040
	

776.12
	

108.66
	

155.22

This table shows the calculations used by each application rule:

Application Rule
	

Calculations

Line First - Tax After
	

    Apply payment to open line amount.

    Apply any remaining amount to tax.

Line and Tax Prorate
	

    (1040/1140) * 1000 = 912.28 (Receipt Amount / Total Line and Tax) * Line Amount = Line Amount Applied

    (1040/1140) * 140 = 127.72 (Receipt Amount / Total Line and Tax) * Open Tax Amount = Tax Amount Applied

Prorate All
	

    (1040/1340) x 1000 = 776.12 (Receipt Amount / Invoice Total) * Open Line Amount = Line Amount Applied

    (1040/1340) x 140 = 108.66 (Receipt Amount / Invoice Total) * Open Tax Amount = Tax Amount Applied

    (1040/1340) x 200 = 155.22 (Receipt Amount / Invoice Total) x Open Freight Amount = Freight Amount Applied

Line First - Tax After

The Line First - Tax After rule first applies the payment to the line amount, reducing the balance due to zero. Receivables then applies the remaining amount ($40) to the tax charges, reducing the open tax amount to $100. Since the payment isn't enough to close these items, the freight balance isn't affected.

This table compares each line type before and after you apply an amount using the Line First - Tax After rule:

Transaction Amount
	

Remaining Amount
	

Line Items
	

Line Items Remaining
	

Tax
	

Tax Remaining
	

Freight
	

Freight Remaining

$1340
	

$300
	

$1000
	

$0
	

$140
	

$100
	

$200
	

$200
Line and Tax Prorate

The Line and Tax Prorate rule applies a proportionate amount to the open line and tax charges. Since the amount applied isn't enough to close these items, the freight balance isn't affected.

This table compares each line type before and after you apply an amount using the Line and Tax Prorate rule:

Transaction Amount
	

Remaining Amount
	

Line Items
	

Line Items Remaining
	

Tax
	

Tax Remaining
	

Freight
	

Freight Remaining

$1340
	

$300
	

$1000
	

$87.72
	

$140
	

$12.28
	

$200
	

$200

This table shows the calculations used to arrive at the proportionate amounts:

Item
	

Calculations

Line Items
	

1000 - 912.28 = 87.72

Amount Line Items - Line Amount Applied = Open Line Amount

Tax
	

140 - 127.72 = 12.28

Tax Original - Tax Amount Applied = Open Tax Amount
Prorate All

The Prorate All rule applies a proportionate amount of the receipt to the line, tax, and freight for this transaction.

This table compares each line type before and after you apply an amount using the Prorate All rule:

Transaction Amount
	

Remaining Amount
	

Line Items
	

Line Items Remaining
	

Tax
	

Tax Remaining
	

Freight
	

Freight Remaining

$1340
	

$300
	

$1000
	

$223.88
	

$140
	

$31.34
	

$200
	

$44.78

This table shows the calculations used to arrive at the proportionate amounts:

Item
	

Calculations

Line Items
	

1000 - 776.12 = 223.88

Amount Line Items - Line Amount Applied = Open Line Amount

Tax
	

140 - 108.66 = 31.34

Tax Original - Tax Amount Applied = Open Tax Amount

Freight
	

200 - 155.22 = 44.78

Freight Original - Freight Amount Applied = Open Freight Amount

Remittance Methods and Clearance Methods

Define a remittance method and clearance method for each receipt class. These settings determine the remittance and clearing behavior for receipts with a given receipt class.
Remittance Methods

Use the remittance method to determine the accounts to use for receipts that you create using the receipt method assigned to this receipt class.

Standard

Use the remittance account for automatic receipts assigned to a receipt method with this receipt class.

Factoring

Use the factoring account for automatic receipts assigned to a receipt method with this receipt class.

Standard and Factoring

Receivables selects receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.

No Remittance

For Manual receipts only. Remittance isn<73>t required for manual receipts assigned to this receipt class.
Clearance Methods

Use the clearance method to require receipts created using a receipt method assigned to this receipt class to be reconciled before posting them to the general ledger cash account.

Directly

This method is for receipts that you don't expect to be remitted to the bank and subsequently cleared.

It<EFBFBD>s assumed that these receipts are cleared at the time of receipt entry and require no further processing.

By Automatic Clearing

Use this method to clear receipts using the Clear Receipts Automatically program.

Guidelines for Defining Automatic Receipt Methods

Define the attributes of an automatic receipt method to determine how automatic receipts are processed against selected transactions.

Review these guidelines when defining the attributes of automatic receipt methods:

    Receipts Inherit Transaction Numbers

    ISO Direct Debit

    Number of Receipts Rule

    Receipt Maturity Date Rule

    Automatic Print Template

    Lead Days

    Customer Payment Method

Receipts Inherit Transaction Numbers

If you're using One per Invoice as the Number of Receipts Rule, you can enable the Receipts inherit transaction numbers option to ensure that the automatic receipt number is always the same as the transaction number that the receipt is applied to. Enabling this option helps track automatic receipts.
Note

Don't enable this option if you're using document sequencing with automatic receipts.
ISO Direct Debit

Enable the ISO direct debit option to create automatic receipts that automatically debit a customer bank account according to the standards of ISO 20022 direct debit.

Enabling this option assumes that you have created a debit authorization agreement with your customers for ISO 20022 direct debit.
Number of Receipts Rule

The Number of Receipts Rule determines the way in which the automatic receipt process creates and applies receipts against transactions.
Note

If you enable the ISO direct debit option, the Number of Receipts Rule is disabled. ISO 20022 direct debit creates one receipt for the prearranged debit amount from your customer and transfers this amount to the remittance bank account defined in the automatic receipt method.

Select one of these rules:

    One per Customer: Create one receipt for each customer.

    One per Customer Due Date: Create one receipt for each customer and due date. This option creates several payments for a customer if the invoices of the customer have several due dates.

    One per Invoice: Create one receipt for each invoice.

    One per Site: Create one receipt for each customer site.

    One per Site Due Date: Create one receipt for each customer site and due date.

Note

The Number of Receipts Rule assumes an additional grouping by payment instrument. For example, if you use the One per Customer rule, and two invoices belonging to the same customer are to be paid from different bank accounts, the automatic receipt process creates two receipts, one for each bank account number.
Receipt Maturity Date Rule

Use the Receipt Maturity Date Rule to pay invoices that have different due dates with a single receipt.

Select Earliest to use the earliest due date of all of the invoices that the receipt covers as the receipt maturity date. Select Latest to use the latest due date of all of the invoices that the receipt covers as the receipt maturity date.

When you remit a receipt, Receivables uses the maturity date to determine when to transfer funds from the customer bank account to your remittance bank account.
Automatic Print Template

Enter the automatic print template to use for transmissions using this receipt method.

Receivables provides one standard receipt print template to format the output of payment selection and creation programs when you create the receipt document. To use a different receipt print template, you must copy and modify this standard receipt print template.
Lead Days

The number of lead days is the number of days before the invoice due date that an invoice can be selected for application by the automatic receipt process using this receipt method.

This option is useful, for example, when customer approval is required. You can set the value to the number of days normally required to receive customer approval.
Customer Payment Method

Select the funds capture payment method that the customer will use to remit payment for automatic receipts using this receipt method.
Note

If you enable the ISO direct debit option, Bank Account Transfer is the only payment method available.

Oracle Payments provides predefined funds capture payment methods, but you can define your own.

Remittance Bank Accounts on Receipt Methods

Define remittance bank account information for each receipt method assigned to a receipt class. Remittance bank account information includes the general ledger accounts to use when you enter or apply receipts.
Remittance Bank Accounts and Receipt Currencies

If you remit receipts in one currency only, you can enter more than one remittance bank account for a receipt method, but you must mark one account as the primary bank account for the receipt method.

If you remit receipts in more than one currency for a receipt method, then you must enter at least one remittance bank account per currency and mark one account per currency as primary.

During receipt entry and processing, Receivables uses the primary bank account as the default remittance bank account for the receipt. You can accept this value or enter any other bank account defined for the receipt method in the same currency as the receipt.
Factored Receipts

If the receipt class of the receipt method allows factoring, you can specify the number of Risk Elimination Days for factored receipts for a given bank account.

When you factor receipts, Receivables creates a short term debt to account for risk in case of customer default. When you clear or risk eliminate these receipts, the debt is cleared after the receipt maturity date plus the number of risk elimination days that you enter.
Cash Budget Funding with Receipts

If you intend to fund a cash control budget in Budgetary Control with application amounts from standard receipt applications and miscellaneous receipt creation, you must complete related setups for receipt methods and remittance bank accounts.

Create and assign a remittance bank account to each receipt method that you will use to process receipts for cash budget funding. You can set up receipt methods for both automatic and manual receipt creation.

During setup, you must assign the same GL cash account to the remittance bank account belonging to the receipt method used for cash budget funding and to the ledger in Budgetary Control enabled for cash budget funding.

Complete these steps for your GL accounts:

    In your Budgetary Control setup, enter the GL cash account in the Accounts in Journals Subject to Cash Controls section of the Edit Budgetary Control page for the applicable ledger.
    In the related remittance bank account, enter the same GL cash account in the Cash field in the GL Accounts section of the Edit Remittance Bank Account page.
    You must only enter the GL cash account in the Cash field. Enter different natural accounts in each of these fields in the GL Accounts section of the same remittance bank account:
        Receipt Confirmation
        Remittance
        Unapplied Receipts
        Unidentified Receipts
        On-Account Receipts

You must enter different natural accounts in these fields to prevent overstating the cash control budget with additional budget activity on the cash account.
How Lockbox File Transmissions Are Validated

The first step in lockbox processing is validating the data imported from your bank file using the lockbox file transmission.

The lockbox process validates the data that you receive from the bank to ensure that:

    entire file was received.

    no duplicate receipts within a batch.

    customers and transactions are valid.

Lockbox also validates that all data is compatible with Receivables by ensuring that the columns in the AR_PAYMENTS_INTERFACE_ALL table reference the appropriate values and columns in Receivables.
Settings That Affect Lockbox Validation

Lockbox checks for duplicate receipts and transactions.

Duplicate receipts have the same receipt number, amount, currency, and customer account number. Lockbox doesn't allow duplicate receipts within the same receipt source for the same customer. This is the same validation Receivables performs when you manually enter receipts.

Transaction numbers are only required to be unique within a receipt source. A customer can have duplicate transaction numbers as long as they belong to different receipt sources. However, lockbox can't automatically apply a payment to these transactions.

If a customer has more than one transaction in the lockbox transmission with the same number, then lockbox can't determine to which transaction to apply the payment. In this case, the receipt is either left as Unapplied (if the customer account number or MICR number is provided) or Unidentified (if the customer account number or MICR number isn't provided).

You can manually apply the receipt according to the transaction recommendations that Receivables presents according to your implementation.
How a Lockbox Transmission Is Validated

When you import a bank file, lockbox completes the following validations:

    Transmission Level Validations

    Lockbox Level Validations

    Batch Level Validations

    Receipt Level Validations

    Overflow Level Validations

    Customer Validations

    Currency Validation

Transmission Level Validations

Lockbox validates the lockbox transmission to ensure that transmission information corresponds to the transmission format. The following attributes are validated:

    Transmission format contains receipt records.

    Either the lockbox number is part of the transmission format, or you specify the lockbox number when you submit the lockbox.

    Accounting date is in an open accounting period.

    Total transmission record count and amount that you supply must match the actual receipt count and amount as determined by lockbox. If the transmission format includes the transmission header or trailer, lockbox counts all records in this transmission. The validated count includes all receipts and detail records transferred to the interim table.

    Origination number is valid, if provided.

Lockbox Level Validations

Lockbox validates the lockbox records to ensure that lockbox information corresponds to the transmission format. The following attributes are validated:

    If the transmission format includes the transmission header or trailer, ensure that the lockbox number is included and is valid.

    Lockbox batch count is correct, if provided.

    Lockbox amount is correct, if provided.

    Lockbox record count is correct, if provided.

    Origination number is valid, if provided.

    No duplicate lockbox numbers.

Batch Level Validations

Lockbox validates the batch records to ensure that batch information corresponds to the transmission format. The following attributes are validated:

    Batch name exists on batch records.

    Batch name is unique within the transmission.

    Batch amount is correct.

    Batch record count is correct.

    Lockbox number exists on batch records, if this number is part of the transmission format.

Receipt Level Validations

Lockbox validates the receipt records to ensure that receipt information corresponds to the transmission format. The following attributes are validated:

    Remittance amount is specified.

    Check number is specified.

    Item number is specified and is unique within a batch, a lockbox, or the transmission, depending on the transmission format.

    Lockbox number is specified (if this number isn't part of the lockbox header or trailer of the transmission format) and batches aren't imported.

    Batch name is specified, if either batch headers or trailers are part of the transmission format.

    Account number is specified, if transit routing number is part of the transmission format.

    Invoice1-8 are either valid or left blank.

    Installment1-8 are either valid installment numbers or are left blank.

    Invoice, debit memo, credit memo, on-account credit, or chargeback number derived from the matching number doesn't belong to a receipt.

    Transaction number is entered where an application amount is specified.

    Sum of all of the Amount Applied columns for a receipt doesn't exceed the remittance amount.

    Customer account number is valid.

    Customer account number and MICR number both reference the same customer, if both are provided.

    Receipt date is specified.

    Receipt method is valid.

    Currency is valid.

Overflow Level Validations

Lockbox validates the overflow records to ensure that overflow information corresponds to the transmission format. The following attributes are validated:

    Batch name is specified, if either batch headers or trailers are part of the transmission format.

    Lockbox number is specified, if either the batch header or trailer isn't specified and the transmission format includes the lockbox number.

    Item number is specified and matches a receipt record.

    Overflow indicator is specified, unless it's the last overflow record.

    Overflow sequence is specified.

    Invoice1-8 are either valid or are left blank.

    Installment1-8 are either valid installment numbers or are left blank.

    Transaction number derived is entered where an application amount is specified.

Note

For Receipt and Overflow validations of Invoice1-8: If you're using matching numbers and a receipt record indicates that multiple transactions are to be paid by this receipt, lockbox assumes that all of the transactions are the same document type, such as invoices, sales orders, or purchase orders.

For example, if the first 2 transactions are invoices, lockbox successfully matches them with this receipt. However, if the next transaction isn't an invoice, lockbox either imports the remaining receipt amount as Unidentified or rejects the entire receipt, depending on the lockbox definition.

If lockbox imports the remaining receipt amount as Unapplied, then Receivables retains the invalid matching numbers.
Customer Validations

Lockbox can either validate customer data based on the following attributes or mark the receipt as Unidentified if no match is found:

    Customer account number is valid.

    MICR number is valid.

    Bill-to customer is from a matched invoice, if matching is enabled.

Currency Validation

Receivables lets you process receipts in multiple currencies. If you pass the currency, conversion type, and receipt date, lockbox attempts to determine the conversion rate. If lockbox is unable to determine the conversion rate, the receipt will fail validation.
Receipt Application Using the Match Receipts By Rule

During lockbox and manual receipt processing, Receivables uses the settings of the Match Receipts By rule to identify the document type to use to match receipts to transactions when customer information isn't available.
Document Types for Receipt Matching

The following six document types are used to match receipts to transactions. During receipt processing, Receivables searches for one of these document types in this order:

    Transaction number

    Sales order number

    Purchase order number

    Balance forward billing number (Lockbox only)

    Shipping reference

    Contract number

Selection of the Match Receipts By Rule

When Receivables finds a document type with the same number as the current search to match the receipt with a transaction, the process checks the locations where Match Receipts By rules are enabled in this order:

    Customer bill-to site

    Customer

    Lockbox (for lockbox processing)

    System options

Receivables looks for a rule that matches the document type of the number in the current search, and stops when a value is found. For example, if Receivables finds a matching transaction number in the first search, it checks the customer site for the Match Receipts By rule. If the rule is set to Transaction, Receivables matches the receipt with this transaction and applies the receipt.

If the Match Receipts By rule at the customer site is a document type other than Transaction, Receivables searches for a number that matches this document type.

If there are no values assigned at the customer site or customer level:

    For lockbox processing, Receivables uses either the Match Receipts By rule assigned to the lockbox or, if the Use match criteria to determine customer option is enabled, the entire document type hierarchy.

    For manual receipt processing, Receivables uses the Match Receipts By settings on the Receivables system options record assigned to the business unit.

If Receivables can't find a match after searching each document type, the process applies the receipt using the AutoCash rule set defined for the customer.

If the AutoCash rule set is unable to apply the receipt, Receivables assigns the receipt a status of Unapplied. You must then manually apply the receipt.
Examples of Matching Rules

Here are two examples of using matching rules.

Example 1: During lockbox processing, a receipt record indicates that a receipt should be applied to open debit item 12345. Receivables first searches for a transaction (invoice, debit memo, chargeback) with this number. Receivables finds an invoice with this number, so the process checks the value of the Match Receipts By parameter at the customer site. The Match Receipts By rule is null for this customer site, so Receivables checks the setting in the customer profile. Match Receipts By is set to Transaction in the customer profile, so Receivables matches and applies the receipt to the invoice.

Example 2: Using the same receipt record information as Example 1, assume that Receivables fails to find a transaction with the number 12345. The process then searches for a sales order with this number. Receivables can't find a sales order with this number, so it now searches for and finds a purchase order with number 12345. Receivables then checks the Match Receipts By rule at the customer site. The Match Receipts By rule is null for this customer site, so Receivables checks the setting in the customer profile. The rule is also null in the customer profile, so Receivables checks the rule for the lockbox. The Match Receipts By rule is set to Purchase Order Number for this lockbox, so the process matches the receipt with this purchase order and applies the receipt to the transaction.
Lockbox Underpaid Receipt Processing

You can set up lockbox processing to automatically close transactions and create adjustment entries for underpaid receipts against customer invoices.

This helps reduce the need for post-processing activities to manually apply receipts and create adjustments.

The lockbox underpaid receipt processing setup uses a combination of:

    Designated AutoCash tolerance limit.
    Match payment with invoice AutoCash rule.
    Receipt Application Exception Rule for underpayments.

During lockbox processing, the underpaid receipt process:

    First looks for a match between an invoice amount and the sum of the underpaid receipt amount and the AutoCash tolerance limit amount.
    If these amounts match, lockbox applies the sum of the receipt amount and tolerance limit to the invoice with the lowest amount.
    If two or more invoices have the same amount, lockbox applies the receipt to the invoice with the oldest due date.

Underpaid receipt processing for lockbox applies to:

    One business unit.
    One customer site within the business unit.
    One currency of the customer site.
    Customer transactions assigned a transaction type enabled for Natural Application Only, where adjustments bring the balance due to zero.

To set up lockbox underpaid receipt processing, complete these steps:

    Create an AutoCash Rule Set enabled for application tolerance.
    Create a Receipt Application Exception Rule for underpayments.
    Update Receivables System Options for the applicable business unit.
    Update the applicable customer site profile with the currency tolerance amount and adjustment reason.

Create AutoCash Rule Set

To create an AutoCash Rule Set for underpaid receipt processing:

    Navigate to the Manage AutoCash Rule Sets page.
    Click the Plus (+) icon to open the Create AutoCash Rule Set page.
    In the Name field, enter the name for this AutoCash rule set.
    In the Description field, enter an optional description.
    In the Set field, select the reference data set you want.
    In the Discount field of the Open Balance Calculations section, select None.

    This exposes the Include application tolerance amount option.
    Enable the Include application tolerance amount option.
    In the Rule Remaining Remittance Amount field of the Automatic Matching Rule section, select Unapplied.
    In the Rules section, click the Plus (+) icon to open a new row.
    In the Sequence field, enter 10.
    In the Rule field, select Match payment with invoice.
    Save your work.

Create Receipt Application Exception Rule

To create a Receipt Application Exception Rule for underpaid receipt processing:

    Navigate to the Manage Receipt Application Exception Rules page.
    Click the Plus (+) icon to open the Create Receipt Application Exception Rules page.
    In the Set field, select the same reference data set you selected for the AutoCash rule set.
    In the Name field, enter the name for this Receipt Application Exception rule.
    In the Description field, enter an optional description.
    In the Exception Rules section, click the Plus (+) icon to open a new row.
    In the Condition field, select Underpayment less than.
    In the Amount field, enter 100.
    In the Percentage field, enter 100.
    In the Action field, select Adjustment.
    Save your work.

Update Receivables System Options

To update Receivables System Options for underpaid receipt processing:

    Navigate to the Manage Receivables System Options page.
    Search for and select the business unit you want to open the Edit System Options page.
    Navigate to the Billing and Revenue tab.
    In the Exception Rule Adjustment Activity field, select the Adjustments Receivables activity.
    In the Exception Rule Adjustment Reason field, select Charges.
    Navigate to the Cash Processing tab.
    In the AutoCash Rule Set field, select the AutoCash rule set you created for automatic adjustments.
    In the Application Exception Rule Set field, select the receipt application exception rule you created for underpayments.
    In the AutoCash Tolerance Amount field, enter 100 (the same amount you entered in the Amount field of the Receipt Application Exception rule).
    Save your work.

Update the Customer Site Profile

To update a customer site profile for underpaid receipt processing:

    Navigate to the Manage Customers page.
    Search for and select the customer you want.
    Open the customer site you want in the Edit Site page.
    Click the Profile History tab.
    In the Site Profile tab of the Edit Site Profile page, navigate to the Receipt Matching section.
    In the AutoCash Rule Set field, select the AutoCash rule you created and entered in Receivables System Options.
    In the Application Exception Rule Set field, select the receipt application exception rule you created and entered in Receivables System Options.
    Navigate to the Invoicing section.
    In the Exception Rule Adjustment Reason field, select Charges.
    Click the Credit Limits and Late Charge tab.
    Navigate to the Currency Settings section.
    In the Currency row you want, enter 100 in the AutoCash Tolerance Amount field.
    Save your work.