Oracle AR Documentation Index

Sl.No 1 1.1 1.2 2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.3 3.4 4 4.1 4.2 4.3 4.4 4.5 5 5.1 5.2 6 7 Introduction Overview of Accounting Receivables Order to Cash Life Cycle Collection Work-Bench Collecter Payment Terms Statement Cycle Customer Profile Customer Transaction Work-Bench Transaction Source Transaction Type Transaction Adjustment Limits Receipt Work-Bench Receipt Class Bank Receipt Sources Receivabe Activities Receipt Collection Work Bench Aging Bucket Transfer to GL Integration With Other Modules Functional Navigations Topics

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Overview of Accounting Receivables

One of the basis of operating a business is having a means for keeping up with the money that is owed by clients as well as maintaining an accurate record of money received from clients that is to be applied to the amounts they currently owe. In order to perform these functions as well as several other tasks, the principle of Accounts Receivable comes into play.

Here are some highlights of the functions of Accounts Receivable and why those functions are so important to the life of any business.

The basic purpose of accounting is to ensure that any functioning entity has a concise picture of what is happening financially at any given time. Accounts Receivable contributes to the accuracy in several ways. A common function is the billing of customers for services or goods rendered. Typically, it is Accounts Receivable that keeps up with the billing information and customized billing needs of the client.

For instance, a larger customer may receive a percentage discount on monthly goods or services, based on the volume of business conducted with the company. Accounts Receivable would maintain that discount information as part of that customers billing profile, ensuring that all invoices to that client reflect the proper discount. Often, Accounts Receivable has a great deal of input on the look of the invoice, that information is included and how the information is organized.

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Along with creating and distributing invoices to customers, Accounts Receivable is often responsible for receiving payments on those invoices and making sure the payments are applied correctly. While some Accounts Receivable departments tend to post a payment to a customer and apply it to the oldest outstanding invoice, it is more common for a payment to be applied to a specific invoice, even if it is not the oldest outstanding invoice for that client. This allows Accounts Receivable to identify aging on older invoices and work with the client to resolve any issues that may be preventing the payment of invoices that are older than the standard terms of payments.

Accounts Receivable also works closely with the Accounts Payable arm of the accounting process. Just as clients are expected to pay for goods and services rendered, so the company is expected to pay outstanding invoices to their vendors in a timely manner. Accounts Receivable supports Accounts Payable in this function by making sure information about the amount of usable revenue is on hand. With that data available, Accounts Payable is able to schedule and make payments on behalf of the company.

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Each workbench helps find critical information in a flexible way, see the results in a defined format, and selectively take appropriate action. The Receipts and Transactions workbenches let you view records one at a time or as a group. Detail windows display only one receipt or transaction at a time, but provide more information about the record because they contain more fields and tabbed regions. Summary windows, by contrast, can display multiple records at once but require "drill down" to the detail window to view additional information about the current record.

Order to Cash Life Cycle (OTC)

This cycle starts with the Order Management Module where an order is created with 5 lines. This order is then booked and passed to Pick Release.

Pick Release finds and releases the order and creates a move order request. Navigations

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The process of transacting move orders creates a reservation against the source subinventory.

Ship confirm is the process of confirming that items have shipped. Shipping Execution confirms that the delivery lines associated with the delivery have shipped.

ITS creates a trip and related stops for all eligible deliveries that has not been assigned to a trip.

A manual Invoice is created based on the Customer and the items, which are ordered previously.

In order to complete the business cycle, these manually created invoices are then moved to the General Ledger Module by way of a Concurrent Program, and finally after a review of these Journal Entries in the General Ledger they are Auto-Posted in the respective accounts, thus ending the complete cycle.

Oracle Receivables provides three integrated workbenches to perform most of the day-to-day Accounts Receivable operations.

Use the Transactions Workbench to process invoices, debit memos, credit memos, on-account credits, chargebacks, and adjustments.

Use the Receipts Workbench to perform receipt-related tasks Use the Collections Workbench to review customer accounts and perform collection activities such as recording customer calls and printing dunning letters.

Use the Collections workbench to also place a customer account on credit hold, place items in dispute, view the dunning history for a transaction, and correspond with customers by recording customer calls.

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Customer Work-Bench
COLLECTOR
Receivables lets you define collectors and assign them to a profile class or to a customer's credit profile class. When you assign a collector a to profile class, that collector becomes the collector for customers to whom you assign that profile class. You can modify collector assignments for your customers in the Customers window and for your profile classes in the Customer Profile Classes window. You can also print collector names and telephone numbers on dunning letters you send to your customers for past due items. Receivables displays active collectors and their descriptions as list of values choices in the Customers and Customer Profile Classes. Receivables does not display inactive collectors in the list of values for these windows.

PAYMENT TERMS
Receivables lets you define standard payment terms for your customers. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. You can also create split payment terms for invoice installments that have different due dates. You can use your payment terms to determine the amount of each installment. Receivables lets you either distribute tax and freight charges across all installments, or allocate all freight and tax amounts in the first installment of a split term invoice. Receivables displays the active payment terms you define as list of values choices in the Customers, Customer Profile Classes, and Transactions windows.

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Receivables provides two predefined payment terms: 30 NET: The balance of the transaction is due within 30 days. IMMEDIATE: The balance of the transaction is due immediately (i.e. on the transaction date). You can use this payment term with your chargebacks and debit memos.

PAYMENT METHODS
Receivables uses payment methods to account for your receipt entries and applications. information. You can assign multiple remittance banks to each payment method, but only one bank account can be the primary account for each currency. For each remittance bank branch account assigned to a payment method, you must define all of your receipt accounts. The receipt class you assign to each of your payment methods determines the processing steps that Receivables requires for receipts that you create using this payment class. Receivables requires that you specify a payment method when you create your automatic receipts through the Receipt Batches window. You also assign payment methods to invoices when you manually enter them in the Transaction window. Only automatic payment methods can be associated with invoices. method. These steps include whether to require confirmation, remittance, and bank clearance for receipts that you create with a specific receipt Payment methods also determine a customer's remittance bank

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Number of Receipts Rules: When defining payment methods with a receipt class whose creation method is Automatic, you can choose from the following receipts rules: One Per Customer: Create one payment for each customer. One per customer and Due Date: Create one payment for each customer and due date. This option creates several payments for a customer if a customer's invoices have several due dates. One per Site: Create one payment for each site. One per Invoice: Create one payment for each invoice. One per Site and Due Date: Create one payment for each customer site and due date. Prerequisites: Define receipt classes Define banks

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STATEMENT CYCLES
Define statement cycles to determine when to send statements to your customers. You enter statement cycles when you define or modify individual customer and site profile classes in the Customer Profile Classes window. If a customer site is defined as a statement site, Receivables generates a single, consolidated statement for all of this customer's transactions. This statement is sent to this statement site. If you have not defined a statement site for a customer, Receivables creates statements for each customer site to which you have assigned a Bill-To business purpose and whose credit profile has the Send Statements parameter set to Yes. You choose a statement cycle when you print your statements. Active statement cycles appear as list of values choices in the Print Statements and Customer Profile Classes windows. Statement cycle dates appear as list of values choices in the Print Statements window. You can disable a statement cycle by unchecking the Active check box, and then saving your work.

CUSTOMER PROFILE CLASS

Use Customer Profiles to group customers with similar credit worthiness, business volume, and payment cycles. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your finance charges, dunning, and statements for each currency in which you do business. Define your standard customer profiles in the Customer Profile Classes window. These profiles contain generic options you can use to group your customers into broad categories. For example, you might define three categories: one for prompt paying customers with favorable credit limits; one for late paying customers with high finance charge rates; and a third for customers who mostly pay on time, with discount incentives for early payment. You can also use the profile class

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'DEFAULT,' which the system provides. Assign a profile class to each of your customers and addresses in the Customers window. The customer profile class you assign provides the default values, then you can optionally customize these values to meet your specific requirements for each customer or address. If a profile is assigned to both a customer and one of that customer's addresses, the options set for the address take precedence over those set at the customer level. Prerequisites: Define customer profile QuickCodes Define statement cycles Define dunning letters Create dunning letter sets Define collectors Define payment terms Define AutoCash rule sets Define System Options Define grouping rules Define currencies

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PROFILE OPTIONS
During your implementation, you set a value for each Receivables user profile option to specify how Receivables controls access to and processes data. Receivables lets you govern the behavior of many of the windows that use profile options. Profile options can be set at the following levels: Site: This is the lowest profile level. Site level profile option values affect the way all applications run at a given site. Application: These profile option values affect the way a given application runs. Responsibility: These profile option values affect the way applications run for all users of a given responsibility. User: These profile option values affect the way applications run for a specific application user. The values you enter for options at the User level supersede the values that your system administrator has entered for you for these options. Each of these user profile options affect the behavior of Receivables in different contexts. In Receivables, operations that profile options can affect include receipt application, the entry of adjustments, the creation and remittance of automatic receipts and taxes, and posting to your general ledger. You may also have additional user profile options on your system that are specific to applications other than Receivables. To change profile options at the Site, Application, or Responsibility level, choose the System Administrator responsibility, then navigate to the Personal Profile Values window. Query the Profile Name field to display the profile options with their current settings, make your changes, then save your work. You can change profile options at the User level in the Personal Profile Values window. To do this, navigate to the Personal Profile Values window, query the profile option to change, enter a new User Value, then save your work. Generally, your system administrator sets and updates profile values at each level.

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DUNNING LETTER SETS

Receivables provides a dunning letter set entitled 'STANDARD.' This set includes three dunning letters, entitled STANDARD 1 - 3, which are of increasing severity. You can use this dunning letter set or define your own using different dunning letters and dunning letter parameters. Use Oracle Reports to update the content of these letters before you assign them to your dunning letter sets. You can then assign these sets to your customer and site level profiles.

DUNNING LETTERS
Use dunning letters to inform your customers of past due invoices, debit memos, and chargebacks. When you print your dunning letters, Receivables prints a copy of each invoice which has line items that are past due. You can create dunning letter sets in which you group your dunning letters together to vary the tone with each successive letter. When you submit the Dunning Letter Generate program, Receivables compares the number of days that a customer's oldest outstanding debit item is past due with the Days Past Due Date ranges of the dunning letters in this customer's dunning letter set. This comparison determines which dunning letter to print. For each dunning submission, the Dunning Letter Generate program selects and prints letters using the dunning letter sets, customers, and collectors that satisfy your submission criteria.

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QUICK CUSTOMERS
The system lets you enter new and modify existing information about your customers. You can enter multiple addresses for a customer and assign a business purpose for each address. You can also define contact people, bank accounts, payment methods, telephone numbers, and relationships for each customer. The system also lets you change a customer's status from Active to Inactive and specify variable tax information. The mandatory information that is required for a new customer is a customer name, number, and address. If you do not assign a profile class, the system assigns the profile class 'DEFAULT' to each new customer you enter. The profile option AR: Change Customer Name determines whether you can change a customer's name after saving their information. This profile option is set to Yes by default. If you are using the Multiple Organization support feature, you cannot enter a salesperson at the customer level; you can only assign a salesperson to a customer site (for example, Bill To, Ship To, and Dunning site). If you are not using multiple organizations, you can assign a salesperson to a customer and to each of their site uses.

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Transaction Work-Bench
Transaction Types
Use transaction types to define the accounting for the debit memos, credit memos, on-account credits, chargebacks, commitments, and invoices you create in Receivables. Transaction types also determine whether your transaction entries update your customers' balances and whether Receivables posts these transactions to your general ledger. If AutoAccounting depends on transaction type, Receivables uses the general ledger accounts that you enter here, along with your AutoAccounting rules, to determine the default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, and AutoInvoice clearing accounts for transactions you create using this type. You can associate transaction types with your invoice sources in the Transaction Sources window to speed data entry in the Transaction and Credit Transactions windows. Active transaction types appear as list of values choices in the Transactions, Reverse Receipts, Credit Transactions, and Transaction Sources windows. You can also define credit memo and invoice transaction types to use with AutoInvoice. You should define your transaction types in the following order: credit memo transaction types invoice, debit memo, and chargeback transaction types commitment transaction types You must define your invoice transaction types before you define your commitment types. Note: To be able to void a debit memo, credit memo, on-account credit or invoice, define a Void transaction type with 'Open Receivables' and 'Post to GL' set to No. Then, as long as there is no activity against the transaction and it has not been posted to your general ledger, you can make it invalid by simply changing the transaction type to 'Void'. Documentation Navigations

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Transaction Sources
Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables will automatically number your transactions and transaction batches. Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows. You can define two types of transaction batch sources: Manual: Use manual batch sources with transactions that you enter manually in the Transaction and Transactions Summary windows. Imported: Use imported batch sources to import transactions into Receivables using AutoInvoice. You can make a batch source inactive by unchecking the Active check box and then saving your work. Receivables will not display inactive transaction batch sources as list of values choices or let you assign them to your transactions.

Entering Transactions
Use the Transaction window to enter your invoices, debit memos, credit memos, and commitments. You can also query and update your transactions in this window and review your transactions and chargebacks in the Transactions Summary window. When you enter an invoice, Receivables uses your AutoAccounting rules to determine your default general ledger accounts. You can enter transactions one at a time or in a group called a batch. Your system administrator determines whether you can delete a transaction.

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Adjustment Approval Limits

You can define adjustment approval limits for each of your users. Receivables enforces these limits when you either create or approve invoice, debit memo, and chargeback adjustments in the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows. When you enter an adjustment that is outside your approval limit range, Receivables assigns a pending adjustment status until someone with the appropriate approval limits approves or rejects the adjustment. You must specify both lower and upper approval limits for each of your users.

Prerequisites

Define currencies Define application users

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Receipt Work-Bench
Receipt Classes
Define receipt classes to determine the required processing steps for receipts to which you assign payment methods with this class. These steps include confirmation, remittance, and reconciliation. For example, you must create and remit a direct debit, but you must create, confirm, and remit a bill of exchange. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates your receipts as reconciled. Receivables uses the payment method you assign to a receipt class to determine how to account for receipts you create using this receipt class. For each receipt class, you can specify a creation method, remittance method, and whether to require bank clearance for receipts that you assign to this class.

Banks
You can define a bank or a clearing house. Define Banks to record external banks where your customers are the account holders of disbursement accounts. Define Clearing Houses to record banks that process a magnetic tape of your receipt information which you send to them. These clearing institutions then create tapes of your customer receipt information which they forward to each of your remittance banks.

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Receipt Source
Define receipt batch sources to provide default values for the receipt class, payment method, and remittance bank account fields for receipts you add to a receipt batch. Receipt batch sources can use either automatic or manual batch numbering. You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source. If you specify a default receipt batch source, Receivables displays this source in the Receipt Batches window when you create your receipt batches. When you select a receipt batch source to enter receipts, Receivables automatically uses the Cash, Unapplied, Unidentified, On-Account, and Earned and Unearned Discount account information you assigned to the payment method for this batch source. The payment method accounts for the receipt entries and applications you make using this receipt batch source. See: Payment Methods. Receivables will issue a warning if you enter a receipt source that includes a payment method that has activities allocated to more than one company. Allocating activities to more than one company will cause some reconciliation reports to distribute data of previously entered transactions across multiple companies. Therefore, information regarding a particular receipt may be distributed across multiple company reports. For example, the Applied and Earned Discount amounts in the Applied Receipt Register would be shown across multiple company reports if you allocated them to different companies. Receivables provides the automatic receipt source 'Automatic Receipts.' You cannot update this predefined receipt source except for the Last Number field. All of the receipt batch sources you define are created with a Receipt Source Type of Manual.

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Receivables Activities
Define receivables activities to default accounting information for your

miscellaneous receipt, finance charge, chargeback, and adjustment transactions. The activities you define appear as list of values choices in the Receipt and Adjustment windows. You can define as many activities as you need. Receivables uses finance charge activity accounting information when you assess finance charges in your statements and dunning letters. You need to query the Chargeback Adjustment, Chargeback Reversal, and Debit Memo Reversal activities that Receivables provides and specify accounts for each before creating chargebacks or reversing applications in Receivables. Once you define an activity, you cannot change its type. You can only update an existing activity's GL account if you have not previously selected this activity for a transaction. You can make an activity inactive by unchecking the Active check box and then saving your work. Activity Types An activity's type determines whether it uses a distribution set or GL account and in which window your activity will appear. You can choose from the following types: Adjustment: Activities of this type appear in the Adjustments window. You must create at least one activity of this type. Bank Error: Activities of this type appear in the Receipts window when you enter Miscellaneous transactions. You can use this type of activity to help reconcile bank statements when using Cashbook. Finance Charge: You must define a finance charge activity if you include finance charges on your statements or dunning letters. You can only define one activity of this type. Documentation Navigations

Miscellaneous Cash: Activities of this type appear in the Receipts window when you enter Miscellaneous transactions. You must create at least one activity of this type.

Entering Receipts
Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether the receipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied. You can enter two types of receipts in Receivables: Cash receipts: Payment (such as cash or a check) that you receive from your customers for goods or services. Miscellaneous transactions: Revenue earned from investments, interest, refunds, and stock sales. You can apply receipts to invoices, debit memos, deposits, guarantees, on-account credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. You can also create chargebacks or adjustments against these transactions. Receipt Status A receipt can have one of the following statuses: Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts. Confirmed: The customer has approved the application of this receipt and their account balances have been updated within Receivables. This status is only valid for automatic receipts. Remitted: This receipt has been remitted. This status is valid for both automatic Documentation Navigations

and manually entered receipts. Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts. Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non-sufficient funds or if you want to re-enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous transactions. Prerequisites Define receipt classes Define payment methods Define receipt sources Define profile options Open accounting periods

Aging Buckets
Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days past due, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports or view your customer accounts, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period. You can define an unlimited number of aging buckets. You can also customize the aging buckets that Receivables provides. Aging buckets that you define here appear as list of values choices in the Aging, Print Statements, and the Print Collection Reports windows. Documentation Navigations

You can make an aging bucket inactive by changing its status to 'Inactive' and then saving your work. Types of Aging Buckets:-

4-Bucket Aging: Use this type to define an aging bucket with four periods. Receivables displays this aging bucket in the list of values when you print the 'Aging - 4 Buckets' report. 7-Bucket Aging: Use this type to define an aging bucket with seven periods. You can print 7-Bucket Aging reports that sort by either amount or salesperson. Receivables displays this aging bucket in the list of values when you print the 'Aged Trial Balance - 7 Buckets By Amounts' or 'Aging - 7 Buckets By Salesperson' report. Credit Snapshot: Receivables displays this aging bucket in the list of values of the Print Collections Report window when you print the Customer Credit Snapshot report. Statement Aging: Use this type to define an aging bucket with five periods. This aging bucket appears on your statements. You can define as many statement aging buckets as you need. Receivables displays your active statement aging buckets as list of values choices in the Print Statements window.

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Transfer To General Ledger

Posting
To initiate the transfer of Receivables accounting information to your general ledger, run General Ledger Interface. General Ledger Interface transfers data about your adjustments, chargebacks, credit memos, commitments, debit memos, invoices, and receipts to the GL_INTERFACE table and optionally creates unposted journal entry batches in Oracle General Ledger. After running General Ledger Interface, submit the Post Journals program from Oracle General Ledger to update your account balances.

Posting Pro le Option

The profile option AR: GL Transfer Balance Test determines whether General Ledger Interface rejects debit and credit balances that are not equal before posting them to the general ledger. If this profile option is set to Yes, Receivables rejects unbalanced debits and credits before posting to the general ledger. These rejected unbalanced debits and credits are listed in the Unposted Items report. If this profile option is set to No, Receivables does not reject unbalanced debits and credits before posting them to the general ledger.

Journal Import
The Journal Import program transfers data from the Receivables and

GL_INTERFACE table and creates unposted journal entry batches in the Oracle General Ledger tablesGL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES. To run Journal Import when you submit General Ledger Interface, set Run

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Journal Import to Yes. To run Journal Import from Oracle General Ledger, set Run Journal Import to No when you submit General Ledger Interface. After you run Journal Import, use Oracle General Ledger to post the journal entries and update your account balances.

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Receivables Integration
Receivables is integrated with the following modules Cash Management, General Ledger and ipayment in Oracle Financial and have a integration with OM , Pricing , Inventory module within EBS. This can be best understood as:

Lets take some of integration aspect of Oracle AR. Projects to Receivables Normally invoices are transferred from Projects to Receivables for billable projects by running the PRC: Interface Invoices to Receivables request from a Projects Responsibility. Important data in the information flow are: Customer, Line Detail.

Receivables to Cash Management Cash Management selects Receipts directly from the Receivables tables to reconcile with bank statements. Important data in the information flow are: Receipt Number, Receipt Amount, Date, Customer, Application Detail.CashManagement selects Unpaid Invoices and Receipts directly from the Receivables tables as Inflow components in the Cash Forecast. Important data in the information flow are: Amount.

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Cash Management to Receivables Cash Management directly updates Receivables tables with reconciled Receipt information. Important data in the information flow are: Amount Cleared, Receipt Cleared Date, Bank Charges, Bank Errors, Rate Gain/Loss. Receivables to General Ledger Invoices (including Debit Memos and Credit Memos), Receipts (including Miscellaneous), Adjustments, and Charge backs are transferred from Receivables to the General Ledger by running the General Ledger Interface request from a Receivables Responsibility. Important data in the information flow are: Code Combination, Journal Amount.

Receivables to HR AR can access the information of customers and employees through HR module.

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Receivable Integration in OPM The following diagram clearly explain the Receivable Integration in OPM.

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Oracle - Receivables Navigation Paths

Customer Work Bench Define Collectors Define Payment Terms Define Statement Cycle Define Customer Profile Define Customer Set Up->Collections->Collectors Set Up->Transactions->Payment Terms Set Up->Print->Statement Cycles Customers->Customer Profile Classes Customers->Customer Quick Customers->Customer Standard Transaction Work Bench Define Transaction Source Define Transaction Types Define Transaction Define Adjustment Limits Receiving Work Bench Define Receipt Classes Define Bank Define Receipt Sources Define Receivable Activities Define Receipt Collection Work Bench Define Aging Bucket Aging Analysis Concurrent Program Setup -> Collections -> Aging Buckets Collections->Aging View-> Request -> Submit New Request Set Up->Receipts->Receipt Classes Set Up->Receipts->Bank Set Up->Receipts->Receipt Sources Set Up->Receipts->Receivable Activity Receipts->Receipts Set Up->Transactions->Sources Set Up->Transactions->Transaction Types Transactions->Transactions Transactions->Batches Set Up->Transactions->Adjustment Limits

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MANDATORY SET-UPS REQUIRED FOR CUSTOMER DEFINITION:Set up profile class Payment Terms Collectors Statement Cycle Dunning letter set customers NAVIGATIONS FOR CUSTOMER DEFINITION:PERFORM THE FOLLOWING OPERATIONS IN 'RECEIVABLES VISION OPERATIONS (USA)' RESPONSIBILTY

Define Collector:
REQUIRED FIELD: Name (Enter name of the collector)

Define Payment Terms:

REQUIRED FIELDS: Name (payment term) Base Amount Enable the following fields: Allow discount on partial payments Prepayment Credit check Discount basis Print lead days Installment options Enter installments and give discounts for the corresponding installments

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Define Statement Cycle:

SET-UP-->PRINT-->STATEMENT CYCLES REQUIRED FIELDS: Name(statement cycle) Description Interval Enter operating unit and statement date

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Define Profile Class:

CUSTOMERS-->PROFILE CLASSES REQUIRED FIELDS: NAME(PROFILE CLASS) IN 'PROFILE CLASS' TAB FOLLOWING FIELDS HAVE TO BE ENTERED: 1. .In COLLECTORS block enter Collector name Payment term name 2. In terms block enter 3. In receipts block enter match receipts by:(choose transaction number) auto cash rules set:(standard) reminder rule set:(standard) 4. In finance charges enter Days in period 5. In statements block enter Cycle 6. In dunning block enter Letter set:(choose standard) IN 'CREDIT PROFILE' TAB ENTER Classification Periodic review cycle IN 'PROFILE CLASS AMOUNTS' TAB ENTER Currency Currency rates and limits Documentation Navigations

Creation of Customer
1.STANDARD CUSTOMER 2.QUICK CUSTOMER STANDARD CUSTOMER:CUSTOMER-->STANDARD REQUIRED FIELDS TO BE ENTERED NAME:(CUSTOMER NAME) In 'CLASSIFICATION' tab enter PROFILE CLASS In 'ADDRESSES' tab enter 1.COUNTRY,ADDRESS,CITY,STATE,POSTAL CODE 2.SHIP TO AND BILL TO LOCATIONS

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QUICK CUSTOMERS:CUSTOMERS-->QUICK

REQUIRED FIELDS TO BE ENTERED NAME:(CUSTOMER NAME)

In 'CLASSIFICATION' tab enter PROFILE CLASS In 'ADDRESSES' tab enter 1.COUNTRY,ADDRESS,CITY,STATE,POSTAL CODE ENABLE THE REQUIRED FIELDS FROM THE FOLLOWING: BILL TO SHIP TO MARKET STATEMENTS DUNNING LEGAL

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Transaction Work Bench :

Different types of Transactions 1. 2. 3. 4. 5. 6. 7. Bills Receivable Chargeback Credit Memo Debit Memo Deposit Guarantee Invoice

Pre-requisites To Create a Transaction: 1. Transaction Type 2. Transaction source 3. Customer with minimum of 1 bill to and 1 ship to addresses

Creation of a Transaction Types

Setup ->Transactions ->Transaction Types Transaction Types(w) OU=Vision Operations Enter a name for this transaction Choose class value from one of the transaction types Choose Transaction status as open/close/pending/void open --> transaction to be done void --> transaction to be canceled closed --> transaction done and closed pending --> transaction pending (need some more actions to be done) Creation sign any sign for charge-backs and adjustments negative for credit memo rest all positive Open receivables check box must be checked For class = deposit , choose invoice type

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Creation of a Transaction Source

Setup ->Transactions ->Transaction Source -> Enter name for transaction source Type = Imported for importing from legacy systems Manual for rest Enter some description Check automatic batch numbering and give starting number for your transaction batch in last number field Check automatic transaction numbering and give starting number for your transaction in last number field

Creation of a Transaction
Transaction -> Transactions Choose transaction source , class and transaction types created before. Enter Ship to and bill to sites details given by customer. Choose payment terms for this customer. Go to line items , enter item description , quantity , unit price ,tax code. --> Then go to distributions and enter GL account . Save and click on complete.

Note : If transaction class type is 'deposit' then --> click on commitment tab and enter deposit amount .

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Receipt Work-Bench
Define a Receipt Class:
1. Navigate to the Receipt Classes window. 2. Enter a unique Name for your Receipt Class. 3. If you are creating a Notes Receivable receipt class, check the Notes Receivable check box. 4. Choose a Creation Method. If you choose Automatic, you can create receipts with this receipt class using the Automatic Receipt program. If you choose Manual, receipts using this receipt class must either be entered manually in the Receipts or QuickCash window, or imported into Receivables using AutoLockbox. 5. Check the Require Confirmation check box. You need to check this check box to confirm automatic receipts using this receipt class in the Confirm Automatic Receipts window. If you check this check box, the Create Automatic Remittances window does not let you create remittances for unconfirmed receipts that were created using a payment method with this receipt class. See: Confirming Automatic Receipts. 6. If you checked the Require Confirmation check box, choose a Remittance Method. The remittance method determines the accounts that Receivables uses for automatic receipts that you create using payment methods to which you assign this receipt class. Choose one of the following methods: Standard: Use the remittance account for automatic receipts using a payment method with this receipt class. Factoring: Use the factoring account for automatic receipts using a payment method with this receipt class. Standard and Factoring: Choose this method if you want Receivables to select 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. See: Creating Remittance Batches. No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted. 7. To require receipts created using a payment method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods: Documentation Navigations

 Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management. 8. Enter the Payment Method to assign to this receipt class. Save your work.

Creation of Bank:
1. In the Banks window, enter all basic bank information: bank name, branch name, bank number, branch number, and address. Use a bank account name that indicates its usage, for example, "Main Disbursement - USD." 2. Select Bank as the Institution. 3. Optionally enter the EFT (electronic funds transfer) Number. 4. Optionally enter names and information for your bank contacts in the Contact region. 5. Save your work.

Creation of receipt source:

1. Navigate to the Receipt Sources window. 2. Enter a unique Name and Description for this source. 3. Enter a Receipt Class. The receipt class determines the required processing steps for receipts you create using this batch source (for example, confirmation, remittance, and bank clearance). 4. If you entered a Receipt Class, enter a Payment Method (optional). The payment method determines the accounting for your automatic and manual receipts. 5. To associate a remittance bank with this receipt batch source, enter a Bank Account. A remittance bank account is the bank to which you will remit receipts created using this receipt batch source. 6. To manually enter batch numbers for receipt batches you create using this source, choose Manual Batch Numbering. 7. To have Receivables automatically assign sequential batch numbers to receipt batches you create using this source, choose Automatic Batch Documentation Navigations

Numbering. 8. If you chose Automatic Batch Numbering, enter the Last Number you want Receivables to use when numbering your receipt batches. For example, to number receipt batches using this source starting with 1000, enter a last number of 999. 9. Enter the range of dates that this receipt batch source will be active. The default Start Date is the current date, but you can change it. If you do not specify an End Date, this source will be active indefinitely. 10. Save your work.

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Define a receivables activity:

1. Navigate to the Receivables Activities window. 2. Enter a Name and Description for this activity. The activity name should not exceed 30 characters. 3. Choose the Type of activity you are defining. 4. If your activity type is Bank Error or Miscellaneous Cash, enter a valid Accounting Distribution Set (optional). You use distribution sets to automatically distribute miscellaneous cash across various accounts. 5. If your activity type is Adjustment or Finance Charge, enter the GL Account for your receivables activity. If the activity type is Bank Error or Miscellaneous Cash and you did not enter an Accounting Distribution Set, enter a GL Account. 6. Save your work

Entering Receipts
Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether the receipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied. You can enter two types of receipts in Receivables: Cash receipts: Payment (such as cash or a check) that you receive from your customers for goods or services. Miscellaneous transactions: Revenue earned from investments, interest, refunds, and stock sales. You can apply receipts to invoices, debit memos, deposits, guarantees, on-account credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. You can also create chargebacks or adjustments against these transactions.

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Receipt Status A receipt can have one of the following statuses: 1. Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts. 2. Confirmed: The customer has approved the application of this receipt and their account balances have been updated within Receivables. This status is only valid for automatic receipts. 3. Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts. 4. Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts. 5. Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non-sufficient funds or if you want to re-enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous transactions. Applying the Receipt to Invoice 1. If the receipt is unidentified, enter the name or number of the customer who remitted this receipt. 2. Choose Apply. 3. Specify the transactions to which you want to apply this receipt by entering Transaction selection criteria. For example, enter a range of transaction Types, transaction Numbers, Due Dates, or Balances. 4. To place any remaining amount on account, use the down arrow to insert a new record, then enter 'On Account' in the Transaction Number field. The default amount is the unapplied amount of the receipt, but you can change it. 5. When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.

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To define a new Aging Bucket:

1. Navigate to the Aging Buckets window. 2. Enter a Name for this aging bucket. 3. Choose the Type of aging bucket you are defining. 4. Enter a Sequence Number to reflect the order in which Receivables prints your aging bucket period. The default is the sequence in which you define each period (for example, the first period you define is '1', the second '2' and so on). 5. Enter the Type of aging bucket line you are defining. 6. If this line type is Current, Past Due, or Future, enter the starting day number in the Days From field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '1.' 7. If this line type is Current, Past Due, or Future, enter the ending day number in the Days To field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '30.' 8. Enter the column headings to appear in your report above the bucket you are defining. You can enter a maximum of fifteen characters for your column heading. For example, you define an aging bucket line for transactions from 1 to 30 days past due. If you enter '1 to 30 Days' in the First Column Headings field and 'Past Due' in the Second Column Headings field, your report heading will print like this: 1 to 30 Days Past Due 9. Save your work.

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To view a customer's outstanding account balance by aging bucket:

1. Navigate to the Aging window. 2. In the Find Aging window, enter the Customer Name or Number and the Aging Bucket to view. 3. To limit your query, enter selection criteria. For example, enter a specific currency, choose whether to Age or Summarize Open Credits and to include receipts at risk. Leave a field blank if you do not want to limit your display to transactions matching that criteria. 4. Choose Find. 5. To view the past due transactions within an aging bucket, select the bucket to view, then choose Account Details.

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