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ABSTRACT
Tips for how to successfully implement Oracle Receivables including: converting data from your old
system and how to take advantage of the tools that Oracle provides. Sales tax packages, setting up your
lockbox and critical decisions regarding defining your Transaction Types and AutoAccounting. Typical
customizations and procedures you may want to develop.
When it comes time to implement Oracle Receivables, you need to map out exactly how you want it to
work in your environment before you jump into the task of actually implementing this system. You need to
determine: how you will use the system, how to customize it for your needs, and what it really does.
Because every business has unique needs, answering these questions is not always easy. But by
properly identifying your specific needs and utilizing the capabilities in the product, you can be successful.
Oracle Receivables has some inherent challenges, so Ill provide tips you can use to make the system
meet your business needs and give you suggestions on what to watch for. Youll learn how to take
advantage of the tools available to successfully implement Oracle Receivables in Release 10.
DATA CONVERSION
In most cases, you want to move copies of your data from your existing Accounts Receivable system
(your legacy system) into Oracle Receivables so you have all the information you need in one place - this
process is referred to as data conversion. DONT UNDERESTIMATE the amount of time it takes to
convert data from your legacy system into Oracle Receivables, I have seen it take from two to four
months. How long your conversion takes will depend on: the ease with which you can select the data from
your existing system, the number of legacy systems from which you will be extracting data, and the
differences in the data structures between the legacy data and the Oracle data. At a minimum, you
probably will be converting customers, including addresses and contacts; invoices; credit memos;
payments; and adjustments.
Oracle provides three interface programs-Customer Interface, AutoInvoice, and Automatic Lockbox-that
simplify data conversion. Customer Interface helps you load and update customers, addresses, contacts,
telephone numbers, and credit rules (profiles). Use AutoInvoice for invoices, credit memos, on-account
credits, and debit memos. You can also use AutoInvoice to import adjustments or write-offs as debit
and/or credit memos. Oracles Automatic Lockbox feature can be used to import payment history even if
you wont be using Automatic Lockbox for your daily processing. These three programs are very complex
and do hundreds of edits and cross-validations of your data to ensure that what you import will work. You
can find more-detailed documentation in the Oracle Financials and Oracle Government Financials Open
Interfaces manual set.
If you have reasonably few customers and addresses and dont really trust the data in your old system,
you may wish to key the information directly into Oracle Receivables instead of writing a conversion
program. A good case for this would be if you had few customers and had over-abbreviated entries to get
them to fit in database fields that were too small. You can key information into a test environment once
and then write a quick program to load it from your test system into your production system. Make sure
you account for customers added between the time you create the test environment and when you go
live. You may want to enter new customers into both systems during testing. Or, if you know the ending
customer number of your last extract, do another extract using only those customer numbers higher than
the last number extracted. Another option, if you have a reasonably small number of customers, is to
download the customer information into a spreadsheet, and do whatever cleanup, assigning collectors
etc. within the spreadsheet and then load the resulting data into Oracle Receivables.
When defining addresses, you have the option of letting Oracle Receivables assign a number to the
location or giving it a value yourself. I suggest you choose the latter and provide a value such as the city
name to serve as the location name. Doing this provides more useful information to the people who are
actually entering orders, by helping them determine which address is which. If you have more than one
customer in the same city, you may want to append something more to make each address unique.
CUSTOMER ISSUES
- Postal Standard Compliance: You can get a free booklet from your post office that provides current U.S.
Postal Service standards for bulk-mailing addresses. Try to incorporate these standards into your
conversion. For example, put any suite and mail-stop information on the line above the actual street
address.
- Customer Names: Use the full customer name rather than introducing any abbreviations. By using alluppercase letters for customer names, you always know what case to use when querying or selecting by
customer name.
- Free-Form Addresses: Oracle Receivables requires that city, state, and postal codes be separate fields.
Meeting this requirement can be quite difficult and will have a significant impact on the time it takes to
convert your data if the fields are not separate in your legacy system.
- Customer-Entry Control: When you are initially going live with Oracle Receivables, it is a good idea to
allow only one or two highly trained staff members access to customer-entry and maintenance functions.
This avoids confusion and helps you control what happens to your data. When entering new customers,
always check first to see if the customer already exists. Set standards to ensure that you always enter the
information in a consistent manner. For example, always use the name exactly as it appears on the
purchase order or on the clients business card. Also, heed the warning messages that appear when you
enter a customer that already exists.
- Customer-Entry Screens: The Quick Customer Entry screen in Oracle Receivables is easy to use and
comes up as the default when you are entering an order for an undefined customer. However, this screen
omits numerous fields, including the Descriptive Flexfields. If you do not need the missing fields, use the
Quick Customer Entry screen; otherwise, use the more complex Enter Customer Information screen.
Always use the same screen to enter and maintain customer data so that the users always have a
consistent method.
AutoInvoice is a complex tool that lets you convert invoices, credit memos, on-account credits, and debit
memos into Oracle Receivables. On-account credits are tied to the customer but not to an invoice and are
often called negative invoices in legacy systems. These transactions can come from your legacy system
via conversion, an external billing system (ongoing), Oracle Order Entry, and/or Oracle Project
Accounting. AutoInvoice ensures that the data you create in Oracle Receivables is valid, because it will
not create transactions with invalid data. Once you load data into interface tables (generally using
SQL*Loader), AutoInvoice checks it for validity and passes valid data into Oracle Receivables. Invalid
data is retained in the interface tables until either the related data is fixed (for example, Sales Accounting
Flexfields are entered for the parts indicated) or the bad data has been updated. Numerous fields used by
AutoInvoice must first be defined within Oracle Receivables. If they are not, the imported data will fail the
edits and real records will not be created. Be sure to coordinate your setups with the values you will
import. Currently the only way to directly fix invalid data in the interface tables is to update it using
SQL*Plus.
Oracle Receivables provides a default format for converting payments from your legacy system. This
format is called arconv.ctl, can be found in the bin directory for AR. It is also defined as called CONVERT
in the Define Transmission Format screen. You can modify these format definitions as needed-but be sure
to keep them synchronized. To convert payments, you only have to provide about six basic fields. You can
go the easy way and create one receipt for each application, or you can import as a single receipt with
multiple invoices to be paid.
CONVERT TRANSACTIONS
Use the information from the Oracle Financials and Oracle Government Financials Open Interfaces
manual set to map the data from your legacy system to Oracle Receivables, field by field. The chapter
Integrating Oracle Order Entry with Oracle Receivables describes what Oracle Order Entry is passing
when it converts shipped orders into invoices. (This gives you a good idea of what you should pass to
AutoInvoice.) You can pass either a value (easier for conversion) or an ID (faster and what Order Entry
mainly does). Specify what you will pass when you define your batch source (Define Batch Source
screen), and use a different batch source for converted data than you do for the data you will be creating
when you are live. That way, if something looks off, you know where it came from.
Transaction numbers are based on the batch source you use. Converted data should use the transaction
numbers from your legacy system to ensure that payments are applied correctly. After the conversion, use
a source with automatic numbering that has a starting number higher than those used for your converted
data. You can build intelligence into the automatically created numbers. Start the numbers for each
source with a different first digit, and make order numbers notably different from invoice numbers - use
200001 for orders and 500001 for invoices, for example. That way you can identify items from their
numbers. Try to keep invoice numbers fewer than eight digits, so you will always see the full numbers on
screens and in standard reports.
Processing data through AutoInvoice is iterative. You may need to make multiple changes before you get
it exactly right. Be sure to use representative samples for early test conversions, and do at least two or
three full loads prior to going live. Have your users verify that the data is correct; they will know if
something does not look right. For complete loads of historical data, run a full aging on the legacy system
when you extract the data, and then run a full aging in Oracle Receivables when you complete your
import. If these are not identical, you need to find out why and determine what needs to be done to fix it.
You can also create a temporary table with the invoice numbers and balances from the legacy system
and then compare it with the numbers and balances in Oracle Receivables to determine what is different
and why.
TRANSACTION ISSUES
In converting historical data from legacy systems to Oracle Receivables, youll probably encounter several
transaction-related issues. Knowing what issues could come up will help you prepare to deal with them:
- Negative lines on a positive invoice: Change the Transaction Type definitions (Define Transaction
Types). Change the value for Creation Sign to Any Sign. Be sure to change it back to Positive Sign when
you go live.
- Negative invoices in your legacy system: It is best to import these as credit memos in Oracle
Receivables-you may want to use a special transaction type to identify them as former negative invoices.
I do not suggest that you create negative invoices in Oracle Receivables.
- General Ledger (GL) dates for historical data: You can either open all old periods or (preferably) create
all converted invoices with the invoice date equal to the true invoice date and the GL date equal to a date
in the prior to you go live period. Write a script that changes the GL dates to match the invoice dates once
you have imported all of your data. Do this for credits and receipts as well.
- You are concerned that you will post to your General Ledger more than once: Either run GL Interface
and delete the batch prior to posting it or write a script to update GL_POSTED_DATE and
POSTING_CONTROL_ID in the applicable tables. This applies to all records, including invoices, credit
memos, on-account credits, and receipts.
- It takes too long to convert data: Get the latest performance patches for AutoInvoice from Oracle
Support. An alternative is to create a simple script to pre-load the part ID instead of letting the system
derive it. You can also run AutoInvoice with multiple instances (spawned processes).
If you dont charge U.S. sales tax, you can implement Oracle Receivables without buying a tax package
by changing the following setups and updating system options:
- Add a tax code with the type of VAT (Define Tax Rate Codes).
- Change Transaction Types to Tax Calculation = No (Define Transaction Types) - Change Tax Method to
VAT
- Select State.City as the (Sales Tax) Location Flexfield Structure (Define System Options)
- Change Address Validation to Warning (Define System Options)
AUTOMATIC LOCKBOX
Skip this section if you do not have an automated lockbox system in which the bank sends or transmits
electronic copies of your payments on a regular basis. The lockbox process is documented in the Oracle
Financials and Oracle Government Financials Open Interfaces manuals. Note that there are certain fields
that Oracle requires, whereas other fields are optional. Work with your bank to ensure that you are getting
the data you need. Ask the bank for a copy of the layout for the data it is currently sending. Print a copy of
a current data file from the bank, and verify that it matches the layout. Then print the default Oracle
Receivables layout (it is in the bin directory for AR and is called ardeft.ctl and in the Define Transmission
Formats screen), and compare the two layouts. Determine the following:
- Are you getting a check number?
- Are you getting the MICR Number (transit-routing and bank-account information)?
- Do you get both the invoice number and the amount to be paid for each invoice, or just the invoice
numbers?
- How does the bank handle customer deductions (negative amounts)?
- Can more than 398 invoices be paid with one check?
I tend to use the default layout from Oracle Receivables whenever possible, but there are a few
exceptions. If your customers tend to short-pay their invoices, include both the invoice number and the
amount to be paid for each invoice. That way, the Automatic Lockbox process will apply the amount as
indicated on the remittance advice instead of applying full balances until it runs out of money. Another
exception is the Oracle Receivables default for the number of overflow records-a two-digit field. If you
have four invoice numbers per overflow record, you can apply only one receipt to 398 invoices. To allow
for more, expand this field by at least one digit (which then shifts everything else on the line). I have seen
it take eight weeks for a bank to make just this change.
Work closely with your bank representative to:
- Define exactly what you want the bank to send.
- Describe how the data the bank sends will be laid out.
- Plan how you will test the data the bank sends you, to ensure that it will work.
page wrapping can make this quite a challenge. When you actually go live on Oracle Receivables, you
may want to include a letter with your invoices that describes the new layout to your customers.
You need to determine what will be done in Order Entry and what will be done in Receivables, especially
relative to corrections to data being passed from one to the other.
CONCLUSIONS
You have lots of work ahead, and with proper planning and by knowing the things to watch for, you can
succeed. You need to start now on those tasks that could have the biggest impact on your schedule - data
conversion, custom invoice printing, layout and programming, and working with the bank on Automatic
Lockbox.
Good Luck!