Oracle Financials Volume I Guide

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ORACLE FINANCIALS
VOL - I
THEORY GUIDE
ORACLE FINANCIALS
Oracle Financials Volume I
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Multiple Organizations
Use a single installation of any Oracle Applications product to support any number
organizations, even if those organizations use different ledgers
of
Support flexible organizational models

Secure access to data so that users can only access relevant information
Access one or more operating units using a single responsibility
Major Features
Multiple Organizations in a Single Installation

You can define multiple organizations and the relationships among them in a single
Installation of Oracle Applications. These organizations can be ledgers, business
groups,
Legal entities, operating units, or inventory organizations.
Secure Access
Data Security
Inventory Organization Security by Responsibility
Responsibility Determines Operating Unit
Receive Goods Into Any Inventory Organization
Automatic Accounting for Internal Requisitions
Multiple Organizations Reporting
Types of Organizations
1
Business Group
The business group represents the highest level in the organization structure, such as
the consolidated enterprise, a major Branch, or an operation company. The business
group secures human resources information.
For example, when you request a list of employees, you see all employees assigned to
the business group of which your organization is a part.
Multiple ledgers can share the same business group if they share the same business
group attributes, including HR flexfield structures.
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2
LEDGER
Ledgers takes the place of second level in the multi org structure, only based on
which the legal entity and operating units are going to be decided on. Also
remember it is not mandatory for a ledger to have a Legal entity.
Only based on the definition of ledger, the multi org structure is designed /
finalized.
Therefore it is very vital to perform the ledger setup keeping in mind that it has a
greater
Impact on the multi organization structure to be followed by the client and setup by the
Implementation team.
Even though Ledgers takes place second level in the above figure, one can say it is
the starting point of Multi org structure, since setting up of a business group or
validations / functionalities related to business group are less complicated when
compared to other elements in the Multi org structure.
In total there are two types of Ledgers available, they are:
Primary Ledger
Secondary ledger
Reporting Currencies (Ledger)
3
Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers
and other legal entity information to this type of organization.
You can define legal entities using Legal Entity Configurator or Accounting Setup
Manager in General Ledger.
Operating Unit
An organization that uses Oracle subledgers, such as Oracle Cash Management,

Order
Management, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related

products. It may be a sales office, a Branch, or a department.
Operating units are not associated with legal entities.

Operating units are assigned to ledgers and a default legal context.
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Information is secured by operating unit for these applications using

responsibilities. Each user can access, process, and report on data only for the
operating units assigned to the MO: Operating Unit (or) MO: Security Profile option.
The MO: Operating Unit profile option only provides access to one operating unit.
The MO: Security Profile provides access to multiple operating units from a
single responsibility.
You can define operating units from the Define Organization window in Oracle HRMS
or from Accounting Setup Manager in General Ledger.
5
Inventory Organization
An organization for which you track inventory transactions and balances, and/or an
Organization that manufactures or distributes products.
Examples include manufacturing plants, warehouses, distribution centers, and

sales offices.
The following applications secure information by inventory organization: Oracle
Inventory, Bills of Material, Engineering, Work in Process
. To run any of these applications, you must choose an organization that has been
classified as an inventory organization.
You can create ledgers using the Accounting Setup Manager in Oracle
General Ledger and define organizations using the Define Organization window.
HR Organization
HR organizations represent the basic work structure of any enterprise. They usually
represent the functional management, or reporting groups that exist within a
business group.
In addition to these internal organizations, you can define other organizations for
tax and government reporting purposes, or for third party payments.
Organizations in Oracle Projects
Oracle Projects allows you to define organization hierarchies to reflect your
company's organizations structure.
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You can add Oracle Projects-specific organization types to the organization
hierarchy (for example, projects organizations or Expenditure organizations) to
help you manage your project control requirements.
You assign project and expenditure hierarchies to operating units.
Asset Organizations
An asset organization is an organization that allows you to perform asset-related
activities for a specific Oracle Assets corporate book.
Oracle Assets uses only organizations designated as asset organizations
Information Shared Across Organizations

The following information is global. It must be set up once for the enterprise:
Flexfield definitions
Customer Header (customer site is at the operating unit level)
Supplier Header (supplier site is at the operating unit level)
Setup and Implementation Multi-Org
Setting Up a Multiple Organization Enterprise
Steps to implement the Multiple Organization support feature in Oracle Applications.
1. Develop the Organization Structure
2. Define Accounting Setups
3. Assign Balancing Segment Values by Legal Entity (optional),
4. Define Locations,
5. Define Business Groups (optional),
6. Define Organizations,
7. Define Organization Relationships,
8. Define Responsibilities,
9. Associate Responsibilities with Business Groups,
10.
Define Security Profile and Multiple Organizations (MO) Profile Options,
11.
Verify Order Management System Parameter Settings,
12.
Set Application-Specific Profile Options Specific to Operating Units,
13.
Define Inventory Organization Security (optional),
14.
Implement the Applications Products,
15.
Run the Multiple Organizations Setup Validation Report (recommended),
16.
Implement Document Sequencing (optional),
17.
Set Conflict Domains (optional),
18.
Specify User-Level Multiple Organizations Preferences (optional),
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LEDGER
A Ledger is a container of all accounting related information captured through
various other modules. Oracle General Ledger Module owns ledgers.
One has to design the ledger in an appropriate way keeping in mind what
information it needs to hold.
One can have as many ledgers as they want based on their business requirement
and operations point of view.
A ledger saves the accounting information in an organized way as directed by the
conditions specified in the accounting options for that ledger.
Implementer defines the format, rules, restrictions for a particular ledger using
different setup screens making the user to only enter the information what is
relevant for Oracle General Ledger to process further.
One may collect much additional information in different modules as per their
business requirement, whereas those are of least importance, since they are all
only data which are not subjected to any further processing by oracle.
A well planned/designed ledger saves a lot of time for the company in processing
the data and preparing MIS reports for the management in key decision makings.
One will also be knowing that Business intelligence module does this job of
producing excellent reports on the daily operations of company and points out key
areas and red flags.
However, business intelligence can be used to best effect, only when the base
setups, which are in place, are efficient.
Ledger being the foremost setup for any financial modules in E business Suite, one
must understand the power, importance and its usage at later stage in many other
areas
within e Business suite.
Ledger is nothing but a combination of all those components.
Without usage of components, ledger cannot function on its own.
The components of a ledger are:
1) Chart of Accounts
2) Calendar
3) Currency
4) Accounting Method
They are also termed as 4 Cs.
Chart of Accounts
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The definition of Chart of Accounts structure is one of the most complex part, there
has
to be a brainstorming and many levels of discussions between Client and the
Implementation team to decide on a structure that best suits the business need.
In short, COA decides on what information needs to be collected for every
transaction that is being transacted by the business, considering different
parameters and key factors.
Calendar
Calendar presents the period for which the business is carried forward. Calendar
here represents Accounting calendar.
One will be deciding on the calendar based on their statutory requirement.
Even though every accounting period is going to have a span of 12 months in it,
however there is a greater difference on the start and end date of the accounting
period.
Currency
Currency represents the list of currencies in which the customer is having businesses.
One needs to define/enable the currencies as per their business requirement; there is no
harm in enabling all currencies.
Accounting Method
Every business has to follow an accounting method to record their transactions in
order to comply with the legal commitments.
Oracle by default has provided seeded accounting methods for usage, however if
the clients business demands for customization of an accounting method or
creation of new accounting method as per the statutory regulations, then they can
create their own accounting method as well.
All the above-discussed components are mandatory in order to define a primary ledger.
For a secondary ledger, in addition to the above component, one needs to select the
method of Data Conversion Level followed.
Primary Ledger
It is mandatory that every accounting operation must have one primary ledger
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It acts as a Primary repository, which records all accounting related information
related to that particular Primary Ledger. One cannot carry out setups without having
primary ledger in place.
Primary ledger replaces the Set of books (Ledger in R12) used in earlier versions prior
to Release 12.
Secondary Ledger
It is not mandatory to have a secondary ledger.
One can have one or more secondary ledgers based on their business requirement.
One can never have a secondary ledger without primary ledger is in place.
Since secondary ledger does not perform any new operation on its own, it only
represents the information contain in primary ledger in a different way.
Mostly it is used for satisfying the reporting needs.
It is necessary for one to know when one should have a Secondary ledger.
One needs to maintain accounting records in a way, when there is a difference in
any of the parameters below from the primary ledger: Chart of Accounts, Currency,
Calendar, Accounting Method and Ledger processing options.
Reporting Currencies (Ledger)

Reporting currencies are purely a representation of transactions saved in the
Primary or Secondary ledger in different currency.
This concept was available in Release 11 in the name of Reporting Set of books
(Ledger in R12); it is exactly the same in R12, no change apart from the
terminology.
Reporting currencies are maintained at different currency conversion levels.
Even though it is not a separate ledger as such, still it can be

considered as a different ledger since it acts as a different container apart from
the primary or secondary ledger information.
LEDGER TYPE PURPOSE
Primary Ledger
Mandatory for any setup related to financial modules
Every transaction of the company will be recorded
Acts as a base repository / container of all accounting information.
Secondary Ledger
When Client wants Multiple Accounting Representations
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When Client wants to represent the information in a different calendar.
When Client wants to represent the information in a different chart of Accounts.
Reporting Currencies
When the Client wants to report their information in different currency
HOW TO DECIDE ON A PERFECT LEDGER STRUCTURE

I would explain the usage of the ledgers with a Business scenario.
Business Scenario is:
Company SKR GROUPS is implementing Oracle Financials for their business. The
summary
of their business operations is as follows:
SKR GROUPS, which is based in India, is having their business operation in three
countries:
1) Branch I - India
2) Branch II - Australia
3) Branch III - France
And the accounting and reporting requirements are:
Branch
Branch
Branch
Branch
Accounting Method Chart of Accounts Accounting Period

I Accrual As per Indian Statute April to March
II Cash As per Australia Statute January to December
III Accrual As per France Statute October to September
Please advice on the ideal Ledger structure to be designed for the company SKR
GROUPS?
Now from the above lets us see how many primary ledgers can be created?
One cannot use the same primary ledger if one of its components is different.
Branch Chart of Accounts Currency Calendar
Branch I
Branch II
Indian Statute
Accounting Method
INR Apr Mar Accrual
Australia Statute AUD Jan Dec Cash
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Branch III
France Statute EUR Oct - Sep Accrual
From the above table, it is clear that none of the Branches have all 4 components as
similar; therefore we need to have 3 Primary ledgers defined for it.
Now apart from that, we need to think of the following practical scenario as well,
Even though Branch II is located in Australia, it has to finally consolidate all its operations
to INDIA at a later stage, therefore it must also follow the rules of accounting and
statutory regulations in India, so as Branch III.
Therefore, Branch II Should have a secondary ledger, which will represent the
transactions as per the Indian Statute.
Branch III Should have a secondary ledger, which will represent the transactions as per
the Indian Statute.
However it is not necessary for Branch I to have secondary ledgers, since the
company is based in INDIA, therefore it need not have multiple accounting
representations.
If the client insists on it, we can have 2 secondary ledgers for Branch I, to comply with
Australian and France statute.
Now the Branches situated in France and Australia, must be reporting to the
company in
INDIA on a daily basis, for which they need to convert their business transactions values
in to Indian currencies and then report it to the management.
For performing this operation, we require two Reporting currencies as well.
As discussed earlier, reporting currencies are part of primary ledger setup.
Therefore
Australia and France primary ledger should have defined INR as its Reporting currencies.
To sum up, the ideal ledger structure would be as follows:
Branch
Primary Ledger
Branch I
Branch II
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1
1
Secondary
Ledger
Reporting
Currencies
Not Necessary
1
Not Necessary
1
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Branch III
TOTAL
Also there can be one more primary ledger created to consolidate the data between
Branch I, II and III,
QUESTION AND ANSWER SECTION

1. Is it mandatory that every ledger must have a legal entity attached to it?
One can have a ledger with no legal entity as per their business requirement. It is not
mandatory that every ledger must have a legal entity attached to it. There could be
ledgers, which have been created for consolidation purposes alone.
2. Can there be a Secondary ledger without a Primary ledger?
No, it cannot be.
3. Can we have one secondary ledger associated with more than one primary ledger?
No, it is not possible.
4. Can we have more than one secondary ledger for a primary ledger?
Yes, you can have one or more secondary ledgers also there is no restriction imposed
anywhere on number of primary ledgers one can create.
5. Is it possible to convert a Primary Ledger to Secondary Ledger or vice versa?
No, not possible.
Data Access set

Data Access Set is a new feature in Release 12, which is owned by General Ledger.
It helps in providing Role Based Access Control to the users.
Every user has access to the data through Responsibilities, these Data Access Sets
controls the behavior of a Responsibility when the user tries to access the ledger
which is the repository of all accounting related information.
It can control the level of access to be provided and on what information the
access can be restricted for a given ledger and responsibility.
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We will see about it in more detail in further slides.
It can provide Read only, Read and Write access to an Ledger
It can restrict access to MSV (Management Segment Values) and BSV (Balancing
Segment Values)
The ledgers and Ledger Sets which are assigned to a Data Access Set must share
the same Chart of Accounts, Calendar and Period Type.
General Ledger automatically creates a Data Access Set whenever a Ledger and/or
Ledger Set are created.
Following are the three types of Data Access Sets,
Full Ledger
Balancing Segment Value
Management Segment Value
FULL LEDGER
As the name suggests all changes / restrictions defined under this type of
Data Access Set will apply to whole of a Ledger or a Ledger Set.
Either you can have a Read and Write privilege to a Ledger or Read only
privilege to a Ledger.
For example, You have the Auditors visiting your premises who requires
access to all accounting information, instead of using system administrator to
create a new responsibility with lots of menu exclusions, you can just have a
responsibility with the Data Access Set, assigned as READ ONLY. So that the
auditors will only have access to view the data and not to edit it (Intentionally or
unintentionally!)
BALANCING SEGMENT VALUE (BSV)
Instead of providing access to the whole ledger, if you wanted to provide
access only to particular Balancing segment value combinations in a ledger,
you can do so.
MANAGEMENT SEGMENT VALUE (BSV) Instead of providing access to the whole
ledger, if you wanted to provide access only to particular Management segment
value
combinations in a ledger, you can do so.
Management Segment is a segment which has the Management Segment Qualifier
attached. Values belonging to that segment are termed as Management Segment
Values.
Advantages
Role Based Access Control
Security on Data Access
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Simplified Setups to create Data Access Security
It does not override the security rules and Cross validation rules
Limitations
A Responsibility can have only one Data Access Set
One can have ledgers sharing the same chart of accounts and calendar alone
in the single Data Access Set.
In case of BSV or MSV type Data Access Sets, if you select the check box for
ALL that does not include all BSV or MSV values.
So many parameters need to be considered before defining it, since it may
clash with other setups at General Ledger level resulting in errors.
Following items should have been already defined before creating a Data Access
Set, they are:
Chart of Accounts
Calendar and Period Type
Ledgers should be defined using the above Chart of Accounts and
alendar/period Type
If you want to use Management Segment Value type Data Access Set, you
must assign Management segment qualifier to one of your segments well in
advance
Information required for setup
Following information must be collected before proceeding with the setups:
Name to be provided for Data Access Set
Description for the Data Access Set
Chart of Accounts to be Used
Calendar / Period Type to be used
Access Set Type required
Ledger or Ledger Set Name
In case of BSV or MSV access set types, the list of segment values to be
defined.
Which value requires Read only access and which value requires Read and
Write access.
Questions & Answers
6. Which type of Data Access Set is advisable for usage?
The Full Ledger access set type provides better system performance than the
Balancing Segment Value or Management Segment Value access set type.
7. Can we have a Data Access Set without defining what type it is?
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You must specify one of the three types for each data access set.
8. Can one change the type of Data Access Set after defining?
Once defined, you cannot alter the type. You can only add or delete ledgers/ledger
sets and segment values specified in the data access set
9. When one should be creating Data Access Set.
When you want the user to be restricted based on the BSV or MSV, you need
to create a Data Access Set.
If you are planning to grant full access to ledger, then you are not required to
create a Data Access Set,
since system automatically creates a Data access set whenever a Ledger or
Ledger Set is created, with the type Full ledger having read and write access.
You can make use of that. How can I find or trace out the system generated
Data Access Set.
The system-generated data access set for a ledger/ledger set uses the same
name as the ledger/ledger set.
10.
Does my Data Access Set override the restrictions provided by Security Rules
and Cross Validation Rules?
No, Data Access set does not override Security rules or Cross validation rules.
11.
What precaution needs to be taken care for defining Data Access Set with
Balancing Segment Values?
One must make sure that the BSV values used in the Data access sets must
correspond to the BSV values assigned to Legal Entity, using Accounting Setup
Manager.
12.
What precaution needs to be taken care for defining Data Access Set with
Management Segment Values?
Make sure that you do not restrict read and write access to segment values which
are used in default accounts, such as Retained Earnings Account etc...
13.
Can we have multiple Data Access Sets for a Responsibility?
We can define multiple Data Access Sets for a ledger; however we can assign only
one Data Access set per responsibility.
LEDGER SET
In release 12, the concept of Set of books (Ledger in R12) has been
enhanced and termed as Ledgers.
Ledgers are of different types, I.e. Primary and Secondary ledgers.
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To make working with ledgers easier, the new feature called LEDGER SET has
been introduced. As the name suggests it is nothing but a Set or Group of
ledgers.
It helps the user in saving time on repetitive tasks performed on ledgers.
FEATURES / PURPOSE
A Ledger Set can contain any number of ledgers, there is no specific ceiling
proposed so far.
A Ledger Set can include another ledger set within.
A Ledger Set can only have those ledgers which are sharing the same:
Chart of Accounts
Calendar/Period Type
A Ledger Set can have Primary, Secondary and Reporting currencies
attached to it, but they need to have the same Chart of Accounts and
Calendar/Period Type combination.
A single ledger can be made use of in Multiple Ledger Sets.
ADVANTAGES
One can run concurrent programs or processes for multiple ledgers easily.
Opening and Closing periods
Generating recurring journals, etc
One can generate reports for multiple ledgers in no time.
Reports relating to consolidation
Financial Statement Generator Reports, etc
In case of a ledger set, which contains more than one ledger/ledger set in it,
user can optionally set a default ledger for effective usage.
Ledger set can be secured by having a Definition Access Set.
LIMITATIONS
You cannot add ledgers that do not share the same chart of accounts and
Calendar/Period Type to a Ledger Set.
You cannot have a reporting currency which is of type Balance Level in the
Ledger set, even if it shares the same Chart of Accounts and Calendar/Period
Type.
PREREQUISITES OF SETUP
Chart of Accounts
One needs to define a chart of accounts structure in place.
Period Type
Period types needs to be defined, which in turn will be used by
Accounting Calendar
Calendar
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One has to define an Accounting Calendar
Existing Ledgers or Ledger Sets
One must have few pre defined ledgers or ledger sets in place.
The following details are required in order to define a ledger set.
Ledger Set
Short Name
Description
Chart of Accounts
Calendar
Period Type
Default Ledger
Ledger/Ledger Set
Questions & Answers
14.
Can a Ledger Set be created without any ledgers in it
No you cannot create a ledger set without ledgers; you must have at least one
ledger or ledger set assigned.
15.
Can a Ledger Set be deleted after defining
No one cannot delete a ledger set which has been created.
16.
Can one modify the Ledger Set which is already defined?
Yes, you can add or remove Ledgers / Ledger Sets
17.
After setting up the Ledger Set, is there any additional setup required before
using the same?
You must assign the Ledger Set to the profile option GL: Data Access Set.
Oracle General Ledger automatically creates a Data Access Set, whenever a
Ledger or Ledger Set is created.
SUBLEDGER ACCOUNTING
Accounting system will have a number of subsidiary ledgers (called subledgers) for
items such as cash, accounts receivable, accounts payable, inventory, purchasing
likewise.
All the entries that are entered (called posted or booked) to these subledgers will
transact through the general ledger account.
For example, when a credit sale posted in the account receivable subledger turns
into cash due to a payment, the transaction will be posted to the general ledger
and the two (cash and accounts receivable) subledgers as well.
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There are instances when items will go directly to the general ledger without any
subledger. These items will be linked to your balance sheet but not to your profit
and loss statement.
The Concept is more or less addressed same in newly R12 SLA accounting, therefore you should note:
A transactional application that generates accounting impact.
Used to store detailed information not needed for a general ledger
Subledgers post summarized activity to a general ledger periodically to maintain
centralized account balances for the company
All accounting performed before transfer to the GL and this is achieved by user
setup who can do by definable accounting rules.
At the data level, its a big change for all the subledgers, though there is a first
generation changes we have noticed sometime when 11i Payables where concept
of Accounting Events introduced first time and accounting performed at subledger
level first before moving into GL.
The same idea has been incorporated in new sub ledger accounting model ,
indeed a was a real need because of some uneven functionality likes:
1. Inconsistencies in Accounting Generation like Summary vs. Detail
2. Direct to General Ledger vs. Open Interface
3. Inconsistent Drilldown from General Ledger
Also it has been seen inconsistent Mechanisms for controlling Accounting as
certain options has been used in existing version:
1. flex biller
2. Account Generator
3. Automatic Offsets
What is sub ledger mean for a non finance person?
A new transactional application that generates accounting impact Used to store
detailed information not needed for a general ledger
Sub ledgers post summarized activity to a general ledger periodically to maintain
centralized account balances for the company
Why SLA and what does it do?
Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application
Release 12 (R12).
It is used to derive all attributes required to account a transaction in Oracle
General Ledger.
In R12, SLA is used to derive the very basic accounting attributes like
entered amount, accounted amount, Date, Currency code etc and the
complex attributes like Ledger, Code Combination ID, Periods etc.
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After deriving these accounting attributes the transactions are then
interfaced to GL from SLA.
Thus in R12 no sub ledgers (AP, PO, PA etc) interfaces the transactions
directly to GL, but all the transactions are interfaced to GL in following 2
steps:
1. Sub ledgers interface the data to SLA.
2. SLA derives the accounting information and interfaces the data to GL.
SLA gives the flexibility to manage the entire accounting rule at one place,
which acts as a single source of truth for GL.
Note: There is no separate responsibility to access SLA setup or the view the
transactions generated by SLA. Rather we can access SLA setup and review
accounted transactions with extended menus attached to each sub ledger
module
How does SLA works?

1. Register sub ledger transactions in SLA.
After validating / approving / costing the transaction in the respective module,
the sub ledger calls SLA API to create a reference of the validated transaction in
SLA.
This reference is known as EVENT. Events are created by calling the public API
xla_events_pub_pkg.create_events provided by SLA.
It is up to the sub ledgers on how to call the API.
For example Oracle Projects call this API from concurrent program PRC:
Generate Cost Accounting Events and Oracle Payables calls this API while user
creates accounting for the Invoice.
While calling xla_events_pub_pkg.create_events, oracle passes a unique id and
event class (Will discuss in next step).

Unique ID can be an invoice id or a po_distribution id or an expenditure_item_id
etc.
As soon as the sub ledger generates event in SLA, SLA returns unique event_id.
This event_id will then act as a reference to all the accounting entries
generated by the SLA.
Once event is successfully created in SLA, means that the transaction is
registered in SLA for accounting.
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Taking the example of Oracle Projects in 11i where after costing the transaction
user need to run the PRC: Interface Cost to General Ledger followed by
Journal Import followed by PRC: Tieback process.
But in R12 user only need to run PRC: Generate Cost Accounting Events which
will register events in SLA and thereafter SLA will take care of accounting the
transaction and interfacing it to GL.
There is no tieback process in R12, as there is one to one reference of event id
between SLA and sub ledger tables.
2. How does SLA understand whether unique id is invoice id or a

po_distribution id or an expenditure_item_id as SLA uses same table to
store all the identifier?
Above we discussed that while creating the event we also need to pass event
class. This event class is used to distinguish between the types of transaction
passed for processing. To understand this better we will go thru the seeded
oracle information
MONTHEND/YEAR END CLOSE PROCESS

I)
ORACLE PAYABLES
1.
2.
3.
4.
5.
Complete All Transactions for the Period Being Closed

Run the Payables AutoApproval Process for All Invoices / Invoice Batches
Review & Resolve Amounts to Post to the General Ledger
Reconcile Payments to Bank Statement Activity for the Period
Transfer All Approved Invoices Payments, Reconciled Payments to the General
Ledger
Review the Payables to General Ledger Posting Process After Completion
Submit the Unaccounted Transactions Sweep Program
Close the Current Oracle Payables Period
Accrue Uninvoiced Receipts
Reconcile Oracle Payables Activity for the Period
Run Mass Additions Transfer to Oracle Assets
Open the Next Payables Period
Run Reports for Tax Reporting Purposes (Optional)
Run the Key Indicators Report (Optional)
Purge Transactions (Optional)
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
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II)
Purchasing
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Review the Current and Future Commitments (Optional)
Review the Outstanding and Overdue Purchase Orders (Optional)
Follow up Receipts-Check with Suppliers
Identify and Review Un-invoiced Receipts (Period End Accruals)
Follow Up Outstanding Invoices
Complete the Oracle Payables- Period End Process
Run Receipt Accruals - Period End Process
Reconcile Accounts - Perpetual Accruals
Perform Year End Encumbrance Processing. (Optional)
Close the Current Purchasing Period.
Open the Next Purchasing Period.
Run Standard Period End Reports (Optional)
III)
Inventory/WIP
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Complete All Transactions for the Period Being Closed.

Check Inventory and Work In Process Transaction Interfaces.
Check Oracle Order Management Transaction Process.
Review Inventory Transactions.
Balance the Perpetual Inventory.
Validate Work In Process Inventory.
Transfer Summary or Detail Transactions
Close the Current Oracle Payables and Oracle Purchasing Periods
Close the Current Inventory Period
Open the Next Inventory Period
Run Standard Period End Reports (Optional)
IV)
Order Management
1. Complete All Transactions for the Period Being Closed

2. Ensure all Interfaces are Completed for the Period (Optional)
3. Review Open Orders and Check the Workflow Status
4. Review Held Orders
5. Review Discounts
6. Review Backorders
7. Review and Correct Order Exceptions
8. Reconcile to Inventory
9. Reconcile to Receivables (Optional)
10.
Run Standard Period End Reports
V)
Receivables
1.
2.

Reconcile Transaction Activity for the Period
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3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Reconcile Outstanding Customer Balances

Review the Unapplied Receipts Register
Reconcile receipts.
Reconcile Receipts to Bank Statement Activity for the Period
Post to the General Ledger
Reconcile the General Ledger Transfer Process
Reconcile the Journal Import Process
Print Invoices
Print Statements (Optional)
Print Dunning (Reminder) Letters (Optional)
Close the Current Oracle Receivables Period
Reconcile Posted Journal Entries
Review Unposted Items Report
Open the Next Oracle Receivables Period
Run Archive and Purge programs (Optional)
VI)
Assets
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Assign All Assets to Distribution Lines
Run Calculate Gains and Losses (Optional)
Run Depreciation
Create Journal Entries
Rollback Depreciation and/or Rollback Journal Entries (Optional)
Create Deferred Depreciation Journal Entries (Optional)
Depreciation Projections(Optional)
Review and Post Journal Entries
Reconcile Oracle Assets to Oracle General Ledger Using Reports.
Run Responsibility Reports (Optional)
Archive and Purge Transactions (Optional)
VII)
Project Accounting
1. Change the Current Oracle Projects Period Status from Open to Pending Close
2. Open the Next Oracle Projects Period
3. Complete All Maintenance Activities
4. Run Maintenance Processes
5. Complete All Transaction Entry for the Period Being Closed
6. Run the Final Cost Distribution Processes
7. Interface Transactions to Other Applications (AP, GL, FA)
8. Generate Draft Revenue for All Projects
9. Generate Invoices
10.
Run Final Project Costing and Revenue Management Reports
11.
Transfer Invoices to Oracle Receivables
12.
Interface Revenue to General ledger (Project Billing Only)
13.
Run Period Close Exception and Tieback Reports
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14.
Change the Current Period Oracle Projects Status from Pending Close to
Closed
15.
Advance the PA Reporting Period (Optional)
16.
Update Project Summary Amounts
17.
Restore Access to User Maintenance Activities
18.
Permanently Close the Oracle Projects Period (Optional)
19.
Reconcile Cost Distribution Lines with General Ledger (Optional)
VIII) Cash Management
1. Load Bank Statements
2. Reconcile Bank Statements
3. Create Miscellaneous Transactions
4. Review Auto Reconciliation Execution Report
5. Resolve Exceptions on the Auto Reconciliation Execution Report
6. Run Bank Statement Detail Report
7. Run Transactions Available for Reconciliation Report
8. Resolve Un-reconciled Statement Lines
9. Run the GL Reconciliation Report
10.
Run the Account Analysis Report for the General Ledger Cash Account
11.
Review the Account Analysis Report
12.
Correct any Invalid Entries to the General Ledger Cash Account (Optional)
13.
Perform the Bank Reconciliation
IX)
General Ledger
1. Ensure the Next Accounting Period Status is Set to Future Entry

2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General
Ledger
4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)
5. Generate Reversal Journals (Optional)
6. Generate Recurring Journals (Optional)
7. Generate Mass Allocation Journals (Optional)
8. Review and Verify Journal Details of Unposted Journal Entries
9. Post All Journal Batches
10.
Run General Ledger Trial Balances and Preliminary Financial Statement
Generator Reports (FSGs)
11.
Revalue Balances (Optional)
12.
Translate Balances (Optional)
13.
Consolidate Sets of Books (Optional)
14.
Review and Correct Balances (Perform Reconciliations)
15.
Enter Adjustments and / or Accruals and Post
16.
Perform Final Adjustments
17.
Close the Current Oracle General Ledger Period
18.
Open the Next Oracle General Ledger Period
19.
Run Financial Reports for the Closed Period
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20.
21.

Perform Encumbrance Year End Procedures (Optional)
Account Payables
It is an ERP solution to effectively manage creditors. The main task is to pay the supplier
for the goods &services. It captures information with respect to purchase invoice
transaction & payments to supplier.
The task of effective control of payables can be achieved using the following tools of
management.
1. Timely recording of invoices & suppliers liability.
2. Effective payments to suppliers through invoices validation a approval
process & exercising hold whenever needed & availing maximum credit
wherever possible.
3. Paying on the due date to avoid overdue interest. You can pay early as per
vendor agreement to available maximum discount & the proper mode for
payment.
4. It is a subsidiary ledger to GL. It is integrated to other modules like: GL,
Assets, Purchasing, Cash Management, Inventory, Projects, Human
Resources, Receivables, Invoice Gateways (Oracle Ecommerce), Internet
Express, Property Management.
Business Flow
Business flow of payables is as under,
1. Invoice Recording: Based on purchasing order suppliers will provide goods & services
invoices. In payables invoices are recorded based on invoices received, purchase order,
receipt of material & services.
2. Invoice Approval Process: Dunning approval process, placed to delay payment for any
variation in purchase order in invoices/receipt of materials.
3. Invoice Accounting: The validated & approval invoices will be accounted.
4. Debit memo issue/Credit memo/receipts/Recording/Accounting: For any variation in
purchase order, invoices/receipts/debit memo/credit memo will be issued, which will be
recorded & accounted.
5. Advance Payment approval process: Any advance payment to suppliers requesting
approval before payment.
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6. Payments of Approval invoices: Approval invoices will be paid by using payment
documents. It can be single/multiple payments.
7. Payments Accounting: Once payments are a affected, they will be accounted.
8. Refund receipts/record/accounting: Any excess payment will be refunded by the
supplier which will be recorded & Accounted.
9. Review of suppliers liability Outstanding: Done periodically.
10. Transfer periodically to General Ledger.
APPLICATION FLOW
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Assign General ledger Set of books (Ledger in R12) (Ledger in R12).

Define lookups (purchasing, payables, Employee).
Define payment terms.
Define Distribution set: Full/Skeleton
Set of defaults &controls in financial & payable options.
Create supplier & supplier site.
Standard invoices/credit memo/Mixed invoice entry/Employee expense invoices
generation, Approval, Accounting.
Prepayment invoices generation/Debit memo issue recording, approval,
accounting process.
Define payable formats, Bank account, payable documents.
Issues of payments, Approval Accounting.
Recording of refunds & accounting.
Transfer approved invoice transactions & payment transaction to GL.
Information Flow
Data can be predefined in following levels shown in ascending order of

hierarchy.
Financial options
Payables options
Supplier level
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Supplier site level
Invoice leader level
Distribution lines/level
Schedule payment line

level
Financial Options:
Certain values can be predefined & control options enabled. Values defined
at this level will act as default values access various modules like payables,
purchasing & asset modules. These values & options cascade documents to next
lower level.
Payable Option:
Some additional values & options can be defined. The values are defined at
payables options level act as default exclusively for payables module only. The
values define at this level will default to every new supplier being defined.
Supplier level:
Values & options that defaulted from payables options can either be
accepted/overwritten with new values & options. The values options defined at this
level will default to site being defined at the site level.
Supplier Site level:
Values & options can either be accepted/overwritten if required; It will default to
Invoice header level.
Invoices Header level:
Values & options defaulted from supplier site level can be accepted
/overwritten. It will default to the following 2 level.
Distribution lines level
Schedule payment line level
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Transactions
Purchase Invoice
Payments
This transaction will be in functional or foreign currency.

Purchase Invoice Transactions:
Standard invoices
Credit Memo
Debit Memo
Mixed invoice
Po default Standard invoice
Quick match standard invoice
Prepayment invoice
Expense report invoice
Withholding tax invoice
Interest invoice
Payment Transaction:
Manual payment
Quick payment
Refund
Basic Setups
1. Choose Set of books (Ledger in R12)(Ledger in r12)
2. Define financial options
3. Define payable options
4. Open period in payables
5. Define payment terms
6. Define lookups
7. Define discount sets
8. Define supplier & supplier sites
9. Define bank formats
10.
Define bank account& payable document.
Financial options
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After choosing GL Set of books (Ledger in R12), define financial options which have
following regions.
Accounting
Supplier Entry
Supplier payables
Supplier Purchasing
Encumbrance
Tax
Human resources
Account payable, purchasing, FA module share these options. Information flow starts
from financial option. It defines the defaulting accounting flexfields for Oracle Payables
financial transactions which create oracle GL journal entities.
Navigation:
Setup
Options
Financials
Accounting tab:
Future tab:
Number of future periods that we may use in our Set of books (Ledger in R12). In
payables there is various period statuses
Never open
Future
Open
Close
Permanently close period.
Never Open: Cannot enter transaction at all

Future: It can be entered but they cannot be processed/ posted in GL.
Open:
Enter post & transfer to GL.
Close: Cannot enter transaction but can generate statement like open period.
Permanently Closed: It will work for all close period. In close period we can toggle to
open period but here u cannot.
GL Account:
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Liability Default liable account for all new suppliers created this value can be
overridden during supplier creation.
Prepayment: Default account for each line entered in prepayment type invoice
Future dated payment: This default to all new supplier & bank account for all future
data payment.
Discount taken: Discount taken on payment
PO rate variance gain/loss: Rate variance when we match invoice to purchasing
order/receipts.
Expense clearing: payments through credit card, oracle internal expense.
Misc: Misc charges when invoices are imposed through XML gateway (or) high supplier
port
Supplier Entry tab:
RFQ only site: If we enable this all suppliers will be defined as only RFQ only site. For
these sites no purchase order can be generated.
Hold unmatched invoices: To place a hold on invoice during invoice validation when it is
not matched to either purchase order/receipts until the hold is released invoice remain
unpaid.
Invoice match option: Purchase order/receipts. It indicates how to match invoices.
Supplier Number Entry: Manually/Automatically. It can be changed at any time. But
before changing make sure that the next available now for automatic enter is larger than
largest no: already recorded.
Type: Alphanumeric/Numeric
It can be changed at any time, however changing from a no. numeric only is
allowed only if all current suppliers no are numeric.
Next automatic no: Top value to be entered at the time of financial option setup for
generating unique sequential supplier no.
Supplier Payables tab:
Payment terms: Immediate/No of days (used to car due dates, discount dates for each
invoice entered in invoice workbench.
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Payment method: Check/clearing/Electronic/wire recording payments to
internal/departmental/inter cost centre.. etc
Electronic: Information about supplier payment is captured by magnetic media which is
delivered to a bank through electronic data interchange gateway. The banker uses this
information to electronically to the fundamentals from our account to supplier account.
Check: Written order to bank to pay a specific sum of money on demand to a specific
person/order.
Wire: To telegraphic is used to manually record. Receipt acceptance days: It refers to
grace days to avoid into being added to the invoices for delayed payments. If we enable
an option to recalculate schedule payments at another level, payable option approval
recalculates the invoices due date based on this value also.
Always take disc: Payables always take disc from my supplier no matter when to make
payments.
Pay alone: We can pay each invoice by each payable document. If we dont enable, we
can combine payments of several invoices & pay by single payables documents.
Supplier Purchasing tab:
Options defined at this region were default for purchase region from the supplier in
supplier window. The inventory organization field is applicable to purchasing module.
Ship to location:
Inventory Org
: For purchase module transaction use.
Ship via
: Default mode of the operation of freight carrier which will duplicate
usually to the supplier like road, air, rail...
Freight on board (FoB): Specify the term at which the vendor liability classes
Freight items: Specifying freight terms payments methods
Whether it is prepaid /paid by vendor or pay & collect it from supplier/no freight terms.
Encumbrance: It means year making/reserving funds from Out of a budget for a specific
use. Encumbrance in application is defined in this region. Controls specified here will be
used for payables & purchasing In Purchasing modules, it is used for requisition
&purchase order. In payables, encumbrance for unmatched invoices & also for variance,
it matches invoices & purchase order.
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Use requisition encumbrance: If you enable this you got to Choose the encumbrance
type. And the encumbrance type for the requisition is commitment.
Reserve @ completion: If it is enabled, encumbrance can be created by their preparing
requisition, otherwise only the approvers of requisition can create encumbrance.
Use PO encumbrance: You got to choose its encumbrance type, PO& the normally
obligation Encumbrance for PO journal for this purchase definition at this level.
Invoice encumbrance level: Encumbrance type to be used for creating encumbrance
journal for invoice.
TAX:
Default tax code:
It defaults to invoice tax code option in the supplier window. If you choose a tax code for
which we have defined different tax for different effective dates, payables will
automatically use the tax applicable for each invoices based on invoice date.
VAT Registration: Member state: Location of outcomes to find out whether the company
is located in the member state of the E.U.
VAT registration no: Enable recoverable tax:flatRecoverable /Non recoverable
Flat tax type discount as recoverable for reporting, purpose split taxes into
recoverable& non recoverable lines, automatically calculate tax &profit rate it back into
GL account of the taxable distribution.
Default recovery rate:
Specify a rate that will default to tax recovery rules & tax codes which we define.
Calculate rules:
Rounding rule: No round tax amount in payables & purchase. Up/down/nearest
Precision: Enter a one digit whole no: to indicate which decimal place you want to round
automatically to calculate tax amounts in payables & purchase.
Minimum Account table unit:
The smallest monetary unit you want to round the tax amount.
Human resources:
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Business group:
Define your company as a single business group/there is several major

Branches/operating unit each may be defined as a business group. While defining
employer, specifying the business group to which they belong.
Expense reimbursement address: Home/office
The default employee address to which the reimbursement object is to be
specified. The value entered here defaults to new employees you create in the
persons window when you can optionally over side it.
Use approval hierarchies: On HR you define positions & their hierarchies.
The job of individual within an organization.
For e.g.: Account clerkjob
Enable it to define approval pass for documents within purchasing.
Employee number: Method Manual/Automatic
Payable Options
It will simplify supplier entry, automatic payment processing, invoice entry. Most of
the options can be updated for future transaction any time. There are specification
payables modules only. There are 14 tabs /region.
1. Accounting methods,
2. Transaction to GL
3. Payment accounting
4. Currency
5. Supplier
6. invoice
7. matching
8. interest
9. Expense report
10.
Payment
11.
Invoice tax
12.
Withholding tax
13.
Tax defaults & rules
14.
Reports
Setupoptionspayables
In payable options window we can define control options & default used
throughout payables.
Accounting method
Primary accrual
Secondarycash
Accrual/Cash basis method of Accounting:

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Accrual accounting is mandatory in certain countries. Secondary accrual accounting. Set

of books (Ledger in R12) is maintained in few countries in Europe that too on cash basis
in order to meet sales tax reporting requisition.
Here sales tax output is by deducting the input tax i.e. tax on supplier invoices from
output tax i.e. tax On customer invoices. Input tax can be set of against opening tax only
on efficiency an accruing them in the books of account as evidence of payments. It will
be captured in separate books maintained on a cash basis & field along with the return.
So the transaction in payables can be journalized in to GL Set of Books (Ledger in R12)
based on two type of accounting methods.
For the primary accounting method based on accrual basis, the GL SET OF BOOKS
(LEDGER IN R12) will automatically default from the SET OF BOOKS (LEDGER IN
R12) .
Secondary SET OF BOOKS (LEDGER IN R12) can be optionally maintained internally
even if is not mandatory. But you have to specify the basis on how to journalize the
transaction. The options available are accrual/cash/none.
Automatic offset method:
To create multiple liability lines in payable in such a way that all balancing
segments are equalized in terms of debits. Credits automatically during invoice
validations process.
None/Balancing/Accounting
Unbalanced journal:
Invoice Transaction
Unbalanced
Journal
Dr
C1
100
6420
1000
C2
200
6420
2000
C1
000
2210
C1
100
6420
1000
C2
200
6420
2000
Cr
3000
Balance:
ORACLE FINANCIALS
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C1
000
2210
1000
C2
000
2210
2000
C1
100
6420
1000
C2
200
6420
2000
C1
100
2210
1000
C2
200
2210
2000
Account
The offset entries are created only at the terms of invoice validation process. These
types of offset entries are created for prepayment entities to in case of company want to
prevent prepayment application.
Accordingly for balancing segments enables the relevant check box.
AP Payable option Transaction to GL:
How payables transacts to a GL interface.
In detail
Summarize by accounting date
Summarize by accounting period.
In detail
As many accounting lines (as number of lines in each invoice) transactions are
transfered to GL.
Summarize by accounting date:
Lines summarized account to account date
Summarize by accounting period: It will create the least no of lines because it will sum
up a pair accounting for a part period &there one line would be generated.
TR. Reporting books:
Applicable only if we have a reporting SET OF BOOKS (LEDGER IN R12) when we run
payables to GL for our primary SET OF BOOKS (LEDGER IN R12) , TR also takes place in
repository SET OF BOOKS (LEDGER IN R12) without any explicit program for the same.
Submit journal import:
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If you dont enable transaction when Transfer to GL by the program Transfer to GL will
not import it to GL, it will be in the interface. In GL we have to run the program to import
it from interface if enabled, the latter program will automatically run.
Allow override at program submission:
Above control if you want to override at the program submission enable it, if you enable
it at the time of submitting payable Transfer to GL in the parameters you can override
this submission whether to submit journal import/not & change from Transfer in details to
summarize by accounting date or period.
Payment Accounting
Accounting for payment:
When payment document is issued/ when payment document class.
When both are enabled, it gives the functionality to allow reconciliation accounting
.Payment entries that will be created when payment is issued.
Regular payment: AP liability accounting or to cash clearing account.
Future dated payment: On the date of issue AP liability account or to future dated
payment account
On the date of maturity: Future dated payment account
To cash clearing account. They are unreconciled payment entries once payment is
cleared, cash clearing account can be converted to cash account after reconciliation in
Cash management module.
Accounting for gain/loss: Foreign currency transaction account for gain /loss when
accrual/cash basis is used.
Cash basis: Account for currency gain/loss but payment time & payment clearing date.
For future dated payment, it will account for payment issued date & payment maturity
date & payment maturity date & payment clearing date.
Accrual basis: Between the invoice date & payment issue date.
Future dated payment:
Invoice date
Pay issues date
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Pay maturing date

Pay clearing date.
Calculate gain/loss:
For each invoice

For total payment
Use future dated payment account:
From payment document

From supplier site
Currency
Use multiple currencies
Require exchange rate entry daily rate /periodic rate
Calculate user exchange rate : If invoice/payment is entered in a currency other than
functional currency or an associated fixed rate currency I.e. euro derived currency.
Exchange rate type:
Corporate A standard make rate by senior management for use throughout the
organization
Reporting:
Spot Daily exchange rate that is a quoted market rate

User - Used to manually enter in own exchange
Rate during invoice entry at payment time:

If functional currency amount is known for any foreign currency invoices, then one can
enable this option for the system to calculate the user exchange rate. It is used mainly to
import invoices through payables open interfaces.
GL ACCOUNT Realized
Gain
6842
Loss
Rounding
6844
6826
Supplier
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Invoices tolerance: To allow variance between invoice, purchase order receipt & tax
information, you can specify here the percentage based/amount based tolerance for
suppliers.
Pay Group: Normally defined in purchasing lookup. This is to assign pay group for any
new supplier for payment in batches& reporting purposes (standard/employee pay
group)
Invoice currency: USD
Terms date basis:
System/goods receive/invoice/invoice received (It decides the date based on due
date basis/discount date basis & prepare the schedule for payment).
Invoice:
calculate.
Terms date will be decided as invoice date & account due date will be
Invoice received: The date on which we receive the invoice.

Pay date basis: Discount/due override @ supplier & supplier site .If invoices are to be
paid by exercising discount option, then the schedule payment is as per the due rate. If
they are paid based on due date, then system schedule payment as per due date.
Book charge bearer: Payment of book charges.
Internal/supplier/Negotiation: Supplier/Standard
Supplier Negotiation: Supplier will bear the book charges at negotiated rate.
Supplier standard: Supplier will bear book charges at standard rate.
Tax reporting: Combined filling program.
A use pay at region supplier site will default as tax region same will be default in
the distribution lines level.
Income tax region: Only when both check boxes are enabled overrides at invoice
discount level.
Invoice (tab):
Use invoice approval workflow: If disabled, Cant submit invoice for approval to
higher hierarchies.
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Allow force approval: Override the invoice approval.
Workflow process: Approve manually at the user level can forcefully approve even if
the approval workflow process is not complete.
Requesting validation before approval:
Allow adjustment to paid invoices:
Recalculate schedule payment:
Automatically create fright discount: If you enable that check box, it uses the freight
distribution for the invoice from the next default option freight account. Freight discount
will appear as a single line in invoice.
Confirm date as invoice no: When invoice no is not entered, then date will become
the invoice no, In such situation a caution in popup window will come.
Allow online validation: Users can select invoices for validation in the invoice
workbench to the invoice action window/those validation buttons is invoice batches.
Allow document category override: For invoices besides recording invoice no in case
us to wants a special sequence numbering process for entity of invoice in invoice
workbench.
They can adopt a document category sequence numbering you have to enable this
checkbox & can use add category sequential numbering.
GL date basis: Basis on which invoice will have the default accounting data.
Invoice date
System
Goods record/invoice date
Goods record/system date
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Prepayment:
Prepayment invoice - Immediate for advance payment.
Payment terms: Default payment terms for all
Settlement date: No of days to be adapted to the system date for calculating the date
which prepayment can be settled/ applied against any invoices like the prepayment will
not be available for application/settlement against any invoices.
Bill prepayment accounts when matching:
Disabled - prepaid account code combination i.e. defined in the supplier site would be
defaulted for the prepayment line discount.
Enabled- When matching which PO/Receipts, the prepayment item discount lines will be
built taking into account, the natural account segment from the supplier site prepayment
account & other segment from the responsible purchase order discount lines/receipt
discount lines.
Matching
Allow final matching:
Final match of an invoice to the PO is done by enabling it. Here for any subsequent
invoice matched to PO after final match, the system hold will be placed for want of PO
equivalent & this hold cannot be released manually.
Allow discount level matching:
Enable: Matching of invoice to PO discount matching of 1/more PO discount with
an invoice is possible here disabled. Payable will allow only matching an invoice to a full
PO shipment.
Allow matching account overview:
Enable- You can override an account for invoice discount created by matching to a PO
matched invoice discount account is overridden in invoice workbench/any imported
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invoices. In case of using encumbrance accounting/perpetual receipt accrual/PO is
project related/PO discount is inventory then such overridden option is not possible.
Tr PO descriptive Flexfield information:
When matching an invoice to PO payables automatically to the descriptive Flexfield
information from PO to invoice if this check box is enabled provided the structure of
Flexfield in PO discount is the same as that in invoice discount.
Interest: Controls & options for calculate of information for override invoice/others.
Allow interest invoice: Enable system will calculate information for override invoice
& automatically generate interest invoices.
Prorate access overdue invoice: Enable prorate the interest amount of the overdue
invoice access item discount.
Minimum interest amount: For calculating interest is below this value, and then payable
will ignore the calculate interest does not generate any interest invoices.
Interest invoice account codes: Expense &liability Incase if the second checkbox above
is disabled, then a single line discount is created for the total interest & overdue invoice
with this account code combination.
Expense 6820 Liability: whenever allow interest invoice is enabled, then you have to
specify the interest invoice liability account code combination in this field -2250 it is used
as prepayment process.
Expense Reports
Default template:
To enter details of expense of employee is form/template with
regular expense codes/names can be created & used as default template have this will
appear in expense report window. The default value/codes/names/which specified can be
overridden at the expense report window.
Payment terms: Select a default payment term for expense report payment. It will be
assigned to the employee when the employee is made as a supplier during expense
report/import.
Expense report pay group:
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Employee can be grouped for expense report reimbursement purpose & the pay
group can be created at purchasing lookups which can be attached here.
Payment priority: 99 (1- higher priority 99- lowest priority)
Apply advances: To apply advances given to the employee against expense report.
Override this option at expense report window.
Automatically create employee as supplier:
At the time payable expense report else
he has to be defined in the supplier window with classification as employee & by linking
employee name & number.
Hold unmatched expense report: Unmatched expense report invoices will be placed on
hold during invoice validation.
Payment
Bank account: Default internal bank for our company. It will be used for payment to
supplier. It will be default in payment window & payment in batches.
Payment Batch limit: Maximum amount payable for the payment batch, if the
payable amount is the batch exceeds this limit, the system shows a warning
message but the excess can be optionally allowed. This limit is per payment batch.
EFT user no: EFT customer identifying number: allocated to you by user.
Banker/clearing organization. It is incorporated in the pay document sent to
buyers.
Additional pay through days:
The number given here is added to default pay through date while initialing a
regular payment batch. No of days specified here are the days but the regular payment
date & default pay through date. In case it is 10, payable add to the system date & then
arrive at default pay date when we run a payment batch.
Allow document category Override:
Separate numbering of payments as voucher number: Besides payable document
number sequential numbering can be assigned for payment & the payment voucher will
be accordingly numbered sequentially. If you want, you can define a different sequential
numbering & override the default setup, if the checkbox is enabled.
DISCOUNT:
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Exclude task from disc calculation: Enabled tax amount will be subtract from
invoice header amount discount will be calculated.
Three system of accounting discount Taken:
System account: All discounts Taken will be credited to the system disc taken
account define in the financial option level.
Prorate expense: Prorate any disc across invoice discount lines, if exclude tax from
discount line is enabled, then disc will prorated across discount expense lines only
& not for tax lines.
Prorate task: Prorate to tax discount line only as percentage of the discount
amount equal to the percent of tax distribution.
E.g. tax distribution line 20 % of the total distribution amount, then payable prorate 20%
of the discount amount against tax lines, only the remaining 80% of discount amount is
accounted as discount taken account.
SINGLE PAYMENT:
Allow print: To print payments while effecting quick payment.
Allow pre date: We can create payment date prior to system date.
Allow void reissues: Of checks, in cases a check is spoiled, you can void & reissue
another check bearing new cheque number in line of the same cheque through
payments.
Allow address change: Change address of supplier site at the time of payment
instead of sending it to supplier site adds as per the invoice.
XML PAYMENTS:
Automatic confirmation:
If System Company uses XML payments, and this check box is enabled then system will
allow automatic confirmation of payment batches based on process payment
requirement. XML message from in book indicates that xml payment was successful. If it
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is enabled, the user will receive workflow information at the confirmation of the payment
batch.
REMIT TO BANK ACCOUNT:
Allow remit- to account override:
Normally for direct remittance to supplier bank account, the supplier site will be
having a default primary bank account. Enabled in the payment batch window, the user
has got an option to change the remit to supplier bank account.
BANK CHARGES:
Use bank charges: Enabled you can enter bank charges provided in the supplier
region of the payable option bank charge bearer option is exercised.
INVOICE TAX
Requisition tax entry at header:
We can enter the tax amount of the tax code of the invoice at invoice header level itself
at invoice workbench. When tax is accounting like this, then distribution lines are
generated based on invoice amount after subtracting the tax amount. Not applicable for
imported invoices/for credit & debit memos in invoice workbench.
Use automatic tax calculation: Based on the tax code tax calculation automatically
without entering the amount.
CALCULATION LEVEL:
For automatic tax calculation,
Level at which tax has to be calculated.
Header Header level amount is split into line & tax amount.
Tax code Based on tax code attached at header level.
Line This is always inclusive.
Line: - Tax amount calculation on distribution line amount, It can be inclusive / exclusive
if inclusive then check box includes tax in distribution line level should be enabled;
otherwise it will be exclusive tax.
Tax code: Calculating tax more/less in the same way as line level tax except that at the
time of calculation of tax amount, tax lines which the same tax codes can be grouped &
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then rounding of tax is done .Rounding off is not done on each tax line but done in tax
code grouping level only.
Allow calculation level override: The default level of tax calculation selected in
calculation level can be overridden at the supplier site level only if it is enabled.
Distribution amount inclusive tax: - tax calculation at line level/tax code level at
inclusive tax then it is to be enabled.
Allow override: if the above check box is enabled, then to override the default
method of calculation of tax at supplier site level, enable this,
WITHHOLDING TAX
Use withholding tax: For supplier & to automatically calculate the same for supplier
based on withholding tax groups.
Allow manual withholding: You can enter withholding tax manually in invoice
distribution tax window.
Tax group: Specify the default withholding group for all supplier inclusive new suppliers
only if a use withholding tax option enabled.
WITHHOLDING AMOUNT BASIS:

Include disc amount:
You can make payables to inclusive discount amount also for
calculation withholding tax amount.
Include tax amount: You can include invoice tax amount also for calculation of
withholding tax.
Apply Withholding Tax:
Never: Never to apply on supplier invoices

At invoice validation time
At payment time
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Creating withholding Tax:
Never: If the company does not want to calculation withholding tax & create
Invoices automatically, then enable this
At invoice validation time
At payment time.
Include income tax type on withholding distributions:

Enable payables to automatically create distribution types for withholding tax .for 1
to 99 supplier under automatic withholding tax calculation options to report on federal IT
with held for those supplier. In case of manual withholding tax the amount is to be
entered manually for reporting.
TAX DEFAULTS AND RULES
Enforce tax from account:
To set up hierarchies for selecting tax code from various levels.
Allow payables to select tax code from GL tax assignment for the relevant natural
account.
Enforce tax from PO: To select tax from PO shipment PO i.e. is matched to the invoice.
Tax Code Defaults:
Seven levels from which tax code can default.
1.
2.
3.
4.
5.
6.
7.
PO for matched invoices

Supplier site
Supplier in case of multi org support structure, entry
Accounting of tax code at supplier window is not allowed
Financial options
Invoice header
Template
ACCOUNTS RECEIVABLE
Effective customer Management is the key of any organization.

Accounts receivable Modules help on enterprise to manage to customer
base, sales invoice and receipts from customer effectively.
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ACCOUNTS RECEIVABLE- A SUBLEDGER
Accounts Receivable is a subsidiary ledger in which one can track customer,
customer transactions, receipts and collection activities.
SUBSIDIARY LEDGER TO ORACLE GENERAL LEDGER
It is subsidiary ledger to oracle General ledger and its fully integrated with
General Ledger.
All the accounting Transactions will flow to General Ledger with full Audit
capabilities likewise one can drill down from the general ledger journal
entries to the oracle receivable accounting flexfields distribution details.
Mainly deals with sales invoices, receipts and collection activities
The main focus that accounts receivable is customer entry, sales invoices,
cash receipts and collection transaction.
BUSINESS FLOW:
Customer-Purchase item: A customer will place a purchase order.

Generate sales order: Then Generate sales order based on credit limit of
the customer and availability of inventory.
Based on the sales order, Invoice is raised with appropriate payment term.
Receive the payment from customer: payment is received from customer.
Remit (or) factor receipts with bank
The payment either received is remitted or factored with bank.
If payment from customer is not received then collection activity is initiated.
CUSTOMER
Purchase order SALES
credit limit &
(po)
stock
ORDER
yes
REMIT/FACTOR
RECEIPTS
INVOICE
payment
term
PAYMENT
no
Collection
activities
AR FLEXFIELDS:
Sales Tax Location flexfield:
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The sales tax rate is determined by the customer state, county and city.
The sales tax location flexfield structure helps one to capture different rate as per
the capture location.
Application: General ledger
Setup->financials->flexfields->key->segments;
Application:
Title:
Sales tax location
receivables
flexfields
CODE
TITLE
DESCRIPTION
State. country.
State. country.
State, Country,
City
city
city become field
VIEW NAME
AR_LOC_flex
_USA
This is the default structure.

Predefined Segment:
NAME
WINDOWS
Click segments to view the 3 separate segment structure.
COLUMN
VALUESET
DISABLED
ENABLED
PROMPT
State
State
Location_ID_Segment AR_LOC_STATE
Country Country
Location_ID_Segment AR_LOC_COUNTRY
City
Location_ID_Segment AR_LOC_City
City
2) Territory flex field:
It is primarily used to define the reporting territory and capturing territory

information.
It also facilitates customized reporting on territory information with respect to sales
person, customers and transactions. The usage is optional in accounts
receivables.
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Key Flexfield segment window:
Application: Receivables
Flexfield Title: Territory Flexfield
CODE
TITLE
Customer_ Customer
DESCRIPTION
VIEW NAME
Customers
Territory_
Territory
territory
Flexfield
flexfield
flexfield
Segment
Click
Segment summary window->(territory flexfield)->customer territory flexfield

Name
1.Area
Window Prompt
Area
Column
Segment
Value set
Displayed
Territory Area
2.Country Country
Segment Territory Country
3. Region Region
Segment
Value set
Enabled
Territory Region
Flexfield Qualifiers
New
Open
Information flow:
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1)
System option:
One has the system option to specify the following. (i.e.) ones accounting
method Set of books (Ledger in R12), tax method, an accounts, customer and
invoice parameter, further, one has to specify how AUTO-INVOICE and AUTOMATIC
RECEIPT Program run
2) Customer Profile class: One can define the customer Profile class to group the
customer accounts with
1. similar credit worthiness,
2. business volume,
3. payment cycles,
4. Credit limits,
5. payment terms,
6. statement cycles,
7. invoicing and
8. Discount information.
One can also define amount limits for ones finance charge dunning statements for
each currency in which one transact this to the customers. Then this Profile class is
assigned to the customer. So that it will flow to the customer standard.
Customer standard:
Where one can enters the details of the customer.
Customer Address Level: Then from the customer standard level, the information
will flow to the customer address level and further flow to the business level.
Customer business purpose level: Where bill to and ship to address details are
given.
3) Transaction Level:
The information will flow to the transaction level where the transactions are
enabled.
System option
Accounting method
Customer Profile class
Group Customer with similar
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Customer standard
details of customer
Customer address level
address
Customer business level
Transaction level
Bill to/ship to
Accounting code combination
System Options:
Receivable system options is used for setting up values which flows to
lower level in the information hierarchy system option is made up of tabs.
1.
2.
3.
4.
5.
6.
7.
Accounting tab
Tax
Tax Defaults and rules
Trans and customers
Revenue Policy
Claims
Miscellaneous
Setup; System; System option
System option (KARTHIK PR E-Demo Receivables (CO1-LOC1))

Accounting
Tax
Tax Default
and Rules
Trans and
customers
Revenue
policy
Claims
Miscellane
ous
Accounting tab:
Operating unit: Vision operation
Name: Vision operation (USA)
Accounting Method: Accrual (accrual/cash)
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Finance charge Activity
Finance Charges
Realized Gain Account
PR-740-7830-0000-000
Realized losses Account
PR-740-7840-0000-000
Tax Account
PR-000-2520-0000-000
Unallocated Revenue Account
PR-000-4150-0000-000
Cross Currency Rate Type
Corporate
Cross Currency Rounding Accounts: PR-740-7826-0000-000

Heading Account: PR-740-7827-0000-000
Automatic Journal Import

Header level Rounding
Day per posting cycle
30
-Accounting Flexfield Description
Name of the operating unit

Name of the Set of books (Ledger in R12)
Name of the accounting method whether accrual->to record revenue from
debit memo ,invoices, charge backs cash basis->recognize revenue at the
time when one receives payment for invoice, debit memo, charge backs.
Finance charge activity: This default provided by the receivables. One can
have ones own activity defined.
To account the difference in exchange rate gain/loss
Realize loss account to account the differences in exchange rate losses.
One has to enter the tax account to enter the tax codes and rates.
Unallocated revenue account is used when cash basis is used and one can
apply cash receipts with norms zero balance and invoice with zero balance.
Cross currency Rate Type:

The default is exchange rate type, the receivable will use in case the
receipts and transactions are into different currencies.
Cross currency Rounding Account:
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The receivable will use this account to record rounding amounts created
during cross currency receipt application.
Header Rounding Account: This field is only optional. Receivable use this
account to record any rounding differences that arise when converting
foreign currency transactions to ones functional currency.
If automatic journal import is enabled, to import the batches of transactions
to posted once in general ledger.
One has to enter the number of days per posting cycle to avoid system over
load. One has to enter the number of days.
E.g. 10 days is given here but the number of accounting days is 30, then
there are three cycles.
If header rounding account is given then the header level rounding check box
should be enabled.
2. Tax Tab:
Tax Method:
Sales tax
Location Flexfield Structure
Postal code Range
State .country. city
0000-99999-9999
Address validation
No validation
Invoice Printing
Item size and sum
Tax registration number 98-1234567
Tax vendor views
oracle
Sales tax Geo over ride
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Inclusive tax used

Rounding Option
Calculation level
Line
Rounding level
nearest
Reporting Currency
Precision
USD
2
Min accountable unit 0.5

Allow Over ride
This tab is used to calculate the taxes.
One can enter either sales taxes (or) value added taxes.
So that receivable uses this tax method.
Sales tax is based on the location of the customer receiving ones goods and
services / whereas value added tax is imposed on the value added to each
goods and services at each stage of supply.
One has to enter the ones sales tax location Flexfield structure state;
country; city. It is used as Predefined location flexfield structure.
One has to enter the postal code range that will be default to tax, location
and rates window.
Address validation: One can make the system to have the validation check
on the address format. Three values
1. Error
2. No validation
3. Warning
Invoice Printing: Select the method to print tax amount on the invoices.
One has to enter the sales invoice Tax registration number for the same to be
printed on the invoice.
Tax vendor views is used to calculate the tax select one from the invoices.
Enable inclusive tax used checkbox. When one wants to use inclusive tax codes.
Calculation level field: default line level. Line, header, one can opt to calculate
either at line level or header level.
The system will calculate tax at each line level. If it is header means one will
calculate tax for each invoice for each rate.
Rounding rule-> up, down, nearest.
o Up -> round the calculation at the greater amount
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o Down -> round the tax calculation at the lowest level
o Nearest -> round the tax calculation at the nearest decimal point (or)
integer.
Reporting currency will have the same currency US dollar as your reporting
currency.
Precision is the number of decimal places to be displayed.
Minimum accountable unit is the smallest denomination used in the currency.
Rounding rules example
Precision -> 2.
Minimum accountable unit is .02
Rounding rule unit Price rounds to
up
down
nearest
3.444,3.445,3.446
3.444,3.445,3.446
3.444
3.445
3.446
3.45
3.44
3.44
3.45
3.45
If allow over ride is enabled, one can specify the tax calculation and tax rounding
both at the customer level (or) site level.
3) Tax default and rules tab:
Enforce tax from revenue account
Calculate tax on credit memo during auto invoice
Tax code defaults
Customer site
Customer
Product
Revenue account
System option
Hierarchy
1
2
3
4
5
Tax code
Exception Rates
Use customer Exemptions
Use item Exemptions (B)
Use item tax rate Exception (G)
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If enforce tax from revenue account is enabled then it is optionally set up
ones system to ensure that the tax code from ones invoice lines is same
as the tax code one has assigned to the account segment for ones revenue
account.
Enable calculate tax on credit memo during auto invoice if one want to
calculate tax on credit memo automatically during the importing of credit
memos using auto invoice.
Tax code defaults -> one can enter the hierarchy by entering the sequence
number for each. This hierarchy determines the order in which receivables
derive the default tax rate when one manually enters transaction or during
running auto invoice Program.
Exception rates:
Enable Use customer Exemptions to one can include customer exemption for
when calculating tax for ones transaction.
Enable use item Exemption one can include item exemption for calculating
tax on one transaction.
Enable use item tax rate exception when one uses tax rate one define for
specify Product for based on customer ship to address
Trans and customer tab:
Allow change to Printed transaction (J)

Allow payment of unrelated transaction (Q)
Allow transaction Deletion (K)
Show billing number (Z)
Document number generation level When saved

Auto invoice
Tuning segments
Accounting flex: Account
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System items
Territory
: Item
: Area
Max memory (in bytes) 131070

Log file message level
Purge interface tables

Customer
Automatic Customer numbering
Automatic site numbering
Create reciprocal customer
Grouping rule name default
Enable allow change to Printed transaction one can update the transaction that
have been Printed.
Enable allow payment of unrelated transaction one can allow receipt
application to debit items of unrelated customers (or) to allow bills
receivables assignments to transaction of unrelated customers.
Enable allow transaction deletion one can delete transaction after they
have been saved.
Enable allow billing number By doing this receivable assigns a unique
invoice billing number when one print a draft or final version of ones
consolidated billing invoices.
One can select the point when invoices generate a document number for
ones transaction.
There are 3 document number generation level.
None
When completed
When saved
Auto invoice
Process of transferring the transactions from other system (OM 0r Legacy
system) into AR.
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One has to enter the accounting flexfield, system items and territory flexfield
segments that are most often selected by auto invoice.
Enable automatic customer numbering by during this system will assign a unique
number to every new customer.
Enable automatic site numbering system will automatically assign number to one
customer business purposes.
Enable create reciprocal customer by doing this one can create the reciprocal
relationship during customer.
E.g. A and B are customer .A pay for B likewise B can Pay for A. Now A and B are
related.
Grouping rule name:
One can enter the default grouping rule name which the auto invoice will
use.
The auto invoice will use this rule to group revenue and credit transaction,
debit memos and credit memos.
Miscellaneous Tab:
Split amount
2500
Discount basis:
Invoice amount
Auto cash rule set
standqrd
Days in day sales

Outstanding calculation
90
Sales credit percent limit ->

Write off limits per receipt
100
3000
Allow interest
Allow unearned discounts
Discount on partial payment
Require billing location for receipts

Print remit address
Point home country
Trade accounting installed

Bills receivable enabled
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Require sales person
Minimum refund amount
Credit card payment method
Bank account payment method
Auto receipts
Invoices per commit
500
receipt per commit
Chargeback due date
open invoice due date
Default country
United States
Source of territory
salesrep
Application rule set
Line and tax Prorate
500
By specifying split amount, the system will determine the number of invoices over
and under this amount as well as the total amount outstanding.
Discount Basis -> Receivables will use this value (lines only) as default discount
basis in payment terms windows other discount basis.
Line only
Invoice amount
Lines, freight items and tax
Lines and tax, not freighting items and tax.
Lines only -> The system will use only the line amount of ones invoices for
calculating the discount.
Lines, freight item and tax -> The system will use the line items, freight and tax of
one invoice but not the freight and charges at the invoice header level as the basis
for calculating discount.
Lines and tax, not freight item and tax-> The system will use the line item and tax
amount but not the freight items and tax lines for ones invoices as basis for
calculating discount.
Invoice amount-> system will sum the tax, freight charges and line amounts of
ones invoice and use as basis for calculating the discount.
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Auto cash rule set:

Receivable will use this field when one enter receipt for the customer whose
Profile class has not been assigned on the auto cash rule set.
Days in days sales outstanding calculation: The number of days when one enters
here will be used while calculating ones conventional days sales outstanding for
the collection effectiveness indicators report.
The formula used for calculating the days outstanding.

Conventional days
Sales outstanding = Total outstanding receivables
Total sales for last DSO days
DSO days -> Days outstanding
DSO Days
Sales credit percent limit: One can specify the limit on the percentage of revenue
plus nonrevenue, sales credit that sales person can have on any transaction line.
Write-off-limits per Receipt -> one can specify the range for write-off-amounts.so
that one cannot write off less than or greater than the amount one specify here
Enable accrue interest -> receivable will update the balance to the finance charges
of our transaction that are positive.
Enable require billing location for receipts -> receivable will associate a built
location to cash receipts.
Enable allow unearned discounts-> receivables will allow the customer to take
discounts even if he pays after the expiry of credit period allowed.
Enable Print remit to address-> when one enables this, receivable will Print remit
to address on the customers statement.
Enable discount on partial payment -> Receivables will discount on partial
payment that is the customer is making us payment which is less than the amount
outstanding for a transaction.
Enable Print home country -> System will print the home country on ones invoices
and statements.
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Enable trade accounting installed -> When one wants to use the trade accounting
features then one has to enable the check box for this one has to use the
responsibility of AR trade accounting.
Minimum refund amount -> Auto invoice automatically, create refunds for credit
memos that are imported against paid invoices Provided the request amount are
equal or greater than the minimum amount that one specify here.
Credit card payment method -> By selecting the default payment method, one can
pay the transaction through credit card.
Bank account payment method -> ACH one has to attach the default payment
method which is to be paid on the Automatic clearing house bank account
transfer.
Require Sales person -> one can enter the sales person while entering transaction.
Auto receipts:
Invoice per commit -> one has to enter the number of invoices. One want to
Process in the automatic receipts Program.
Receipts per commit -> One has to enter the number of receipts one wants
Process in the automatic receipt Program.
Change back due date -> one has to enter the default charge back due date.
The options are.
Current date: use todays date as current date.
Deposit date: Use date of receipt deposit as a default date.
Open invoice date: use date of the invoice (or) debit memo as default date.
Receipt date: use date of receipt one enters as default date.
Default country -> Receivables will use country one enters here as the home
country for tax calculation, flexible bank structure, flexible address format
and tax country and tax registration number validation.
Source of territory -> Receivables will use one territory enter here to default
into sales person transactions and customer window.
Values are
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Bill to site -> Receivable will use the customer bill to address as default.
None -> need not enter default territory.
Sales rep -> receivables will use the territory which has been assigned to the
customer as the Primary sales person default.
Ship to site -> Receivables will use customer ship to address as default.
Application rule set -> One has to attach the application rule set which will
determine the default payment steps. When one use the application window
post the cash to apply receipts.
Line and tax Prorate
Line first Tax after
Prorate all
NOT USED IN AR When ORDER MANAGENENT is used consider these tabs.
6) Revenue policy tab:

Standard refund policy
days
Payment term threshold
days
Select credit classification for deferring revenue.

First selection :
Section Selection:
Third selection:
7) Claim tab:
Lock box and post quick cash claim handling
Unmatched remittance line:
Prepare for claim creation
Negative lines
Positive lines
Matched remittance line:
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Prepare for claim creation
Exclude credit memos
Payment terms:
It decides the payment schedule and discount information.
Predefined payment term
1. Immediate
2. 30 net
Other payment terms include
3. Fixed date payment term
4. Installment payment term
5. Proxima payment term
Navigation: setup; transaction; payment terms
AR collectors: Setup; collections; collectors
Collectors who are involved in collection activities.
8) Customer Profile class:
- 3 tabs
Customer Profile class enables one to default many of the values such as
collectors, Receipts parameters, statement parameters, dunning parameters, payment
terms parameters, finance charges parameters, invoicing and consolidated billing
format.
Tab 1) Profile class

1.
2.
3.
4.
5.
6.
7.
Collectors
Receipts
Statement
Dunning
Terms
Finance charges
Invoicing and consolidated billing format
Tab 2) Credit Profile

1. Classification
2. Periodic review cycle
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3. Analyst
4. Tolerance
Tab 3) Profile class amounts
Currency rates and limits. They need to maintain ones customer and one
can group customer with similar characteristics into ones particular class.
Navigation:
Customer; Profile class
Customer Profile classes:
Name
Active
PR Customer Profile
class
Credit Profile
Profile class amount
PR CUS PROF CLS
Profile class
Click Profile class
Collectors
Name
PR Collector
Terms
Payment term :
PR IMMTR
Allow override
Allow discount
Discount Grace days 0
Receipt Grace days
Receipt
Match Receipts By
Auto cash rule set
Remainder Rule set
Auto receipts include disputed
items
Finance charges
Statements
Send statements
Invoicing
Tax Printing European tax format
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Charge interest
Compound interest
Days in period
360
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Send credit balance
Grouping rule default
monthly
Cycle
Consolidated billing formats

Enable type
Dunning
Send letters
Letter set
detail
Standard
Click credit Profile

Classification
Periodic review cycle
Analyst
Tolerance
Credit check
Tab 3
Profile class amounts
Currency rates and limits

USD finance charges interest rate
10%
Max interest per invoice

Min customer balance for finance charges
Min invoice balance for finance charges
Min receipt amount
Min statement amount
Min dunning amount
Min dunning invoice amount
Credit limit
Order credit limit

a) Cycle may monthly, quarterly, weekly, yearly.
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b) Letter-set: Standard, Standard staged
Standard letter set
Standard letter set for staged dunning
Staged No fin CHG -> standard no finance charges

CH standard -> Standard dunning let set vision Switzerland
Credit Profile
1. Classification -> credit classification such as
a) high risk
b) low risk
c) moderate risk
2. Periodic review cycle -> This review cycle specifies how often one has to perform
credit review in credit management.
3. Analyst -> One has to select the default credit analyst for the customer Profile class to
do the credit review
4. Tolerance -> One has to enter the credit check tolerance (ie) percentage check over
the credit limit.
When credit check enabled, oracle order management will check the customer credit
before creating a new order.
Tab 3: Profile class amounts
Finance charges -> this interest rates which will be the customer
Max interest per invoice -> receivable will charge only if the calculated
interest amount is greater than the amount entered.
Min customer balance for finance charges -> receivable will apply interest
only if the balance is more than the one specified here.
Min invoice balance for finance charges -> receivable will apply interest only
if the positive invoice balance is more than the amount one specify here.
Min receipt amount -> Receivables will generate automatic receipt only when
the receipt amount is more than the one specified here.
Min statement amount -> receivables will generate the statement for the
customers only when the customer amount balances is more than the one
specified here.
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Min dunning amount -> receivables will generate the dunning letter for the
customer only if the positive balance is more than the amount one specified
here.
Min dunning invoice amount -> receivables will generate the dunning letter
for the customer only if the debit balance of each positive item is more than
the amount one specify here.
Credit limit -> one has to enter the credit limit here.
Order credit limit

Click save and close
Allow natural application: Invoice 100. Max allow to Rs.100 only.
9) Tax location and rates:

One can enter the location and the associate tax rates in the tax location and
rates window.
Receivables use location such as
1. State
2. Country
3. City
And associates tax rates to create tax authorities.
It also uses the location to validate customer address.
Navigation: setup ; tax ; locations
Find
Find
State
Location
State
PR STATE
Description
PR STATE
Tax amount
PR-000-2520-0000-000
Rate
ORACLE FINANCIALS
Page 66 of 173
Tax rate%
Override
from
5%
To from
01 Jan 07
Click
To
00000
99999-9999
just to view
Tax accounting
Then select country and attach the state

Just defined
Find
Given state PR STATE
country
Location
Find
Country
Description
PR country
Tax account
PR country
RATES
Effective dates
Tax rates%
Override
Postal codes
from
to
from
1 Jan 2011- 00000
to
99999-9999
Then select city and attach the country just defined

Find
Given country
City
PR
Find
Customer standard, address and business purpose level:

Defining customer:
Generally customer is one who we enter transaction for sale of goods and
services.
a) Customer standard level
ORACLE FINANCIALS
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Where we
1) Select customer type
2) Define name of the customer
3) Classification attach the Profile class for our customer
b) Address level
1) Enter the address
2) Attach the location -> State, country, city
c) Business purposes level
Bill to
Ship to
Statement
Dunning
Legal and marketing
Profile transaction
Attach the Profile class.
Navigation for defining customer is
Customerstandard.
Transaction types: One can use the transaction types to
1.
2.
3.
4.
5.
Assign the payment terms,

revenue account,
tax account,
Freight account and
Creation sign for ones account receivables transaction.
The customers balance and create journal ledger transactions. One can define the
following transaction types, namely
Invoices
Debit memo
Charge back
Credit memo
Commitment
Deposit
Name
Class
ORACLE FINANCIALS
Page 68 of 173
Open receivables Post to GL

Transaction states
Allow freight
Tax calculation
Creation sign
Natural application only
Allow over application.
Navigation: SetupTransactionTransaction types

Transaction types (recievables vision operation USA)
Operating unit vision operation:
Name: PR invoice
Description: PR invoice
Class invoice
open receivables
Post to GL
Printing options: Print

Transaction status: open
Allow freight
Creation sign: Positive sign
Tax calculation
Natural application only
Invoice type
Allow over application
Start date : 1 jan 2011 credit memo date:

End date:
Accounts Bill receivables deposit:

Click account tab:
Receivable a/c: Pr-001-0001-0000-0790 freight a/c:
ORACLE FINANCIALS
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Revenue a/c: PR-110-9003-0000-000 Clearing a/c: Pr-110-1250-000-000
Name of invoice in name.
Class as invoice from the following
Bill receivables
Chargeback
Credit memo
Debit memo
Deposit
Guarantee
Invoice
Open receivables and post to GL are enabled by default if open receivable check
box is disabled, then the customer balance will not get updated.
If post to GL ids disabled, the balances will not be posted to GL.
The open receivables and post to GL check box is used to approve hierarchy.
Printing optionPrint (or) do not Print
Transaction status is required to implement the invoice approval system
Closed where the money is received
Open - which the customer has not made payment
Pending the higher authorities have not approve payment
Void - the transaction will cease to have any effect.
Enable allow freight will allow to enter freight
Enable tax calculation will allow to calculate tax
Creation sign can be
a) Positive sign
b) Negative sign
c) Any sign
Natural application only /allow over application

Any one check box should be enabled both check boxes add control to determine how
applications can be effect balances remaining on a transaction.
If natural application only check box is yes and allow over application is NO then even if
one receives excess money than the balances due from the customer, then it will
consider only to the balance due not the excess amount.
Open receivables and post to GL is seen and now we see the relevant transaction
Open receivables
ORACLE FINANCIALS
Post to GL
Page 70 of 173
Relevant transaction types
Data entry operator
Account receivables manager
Account Manager
Transaction Sources
It controls the standard transaction types which are assigned to the transaction
whether the receivables automatically numbers one transaction batches or not
Name
Numbering details
Copying the numbers
Navigation: Setuptransaction source
Transaction source:
Operating unit: Vision operation
Name: PR source
Type: manual
Batch source tab:

Description
PR source
Active
Automatic transaction numbering
Automatic batch numbering
Copy document number to transaction number
Copy transaction information flexfield to credit
ORACLE FINANCIALS
Page 71 of 173
Effective date : 1-jan-2008
to
Last number : 99
Last number :999
Receipt handling for credits
Reference field default value interface attribute 1
Standard transaction type PR invoice
Credit memo batch source
Name the source and enter the description.
Typemanual & imported
If imported when one has to import transaction into receivables using order
invoice.
If one want to give the automatic batch number, enable the automatic batch
number and give the last number used.
Similarly, give for automatic transaction numbering.
When one want to use the same number for both document number and
transaction number then one can enable this check boxcopy document
number to transaction number.
When one want to copy invoice, transactions information flexfields data to a
related credit memo that use this copy transaction information flexfield to
credit memo check box.
Entering the transaction
To enter the transaction, one can use the transaction window to enter invoices, debit
memo; credit memo and commitment .one can also query and update ones transaction
in the transaction window.
We can give header level details like...
1.
2.
3.
4.
5.
6.
7.
8.
9.
Source
Transaction number
Class of transaction
Type of transaction
Date
Currency
Terms
Ship TO details
Bill To details
ORACLE FINANCIALS
Page 72 of 173
Then enter the line level details
1.
2.
3.
4.
5.
6.
7.
Item select
Description
Give the unit of measurement
Quantity
Unit Price
Amount
Tax code
Finally complete the transaction

Navigation: Transaction transactions
Transaction line Freight
Entering a transaction with freight
Header level:
Enter the level details

Enter the header level freight
Enter the line level details
Complete the transaction
Line level:
Enter the header level details

Enter the line level details
Enter the line level freight
a. Entering the transaction information with freight either at the header level or line
level when freight charges have been incurred
for all the invoices lines, we enter the freight charges at the header level. At the
header level we enter the header level details header level freight, line level
details and finally complete the transaction.
b. When freight charges have been incurred for specific invoice line, then we use
enter freight charges at lines level. At the line level, we enter the header level details;
line level details line transaction freight and finally complete the transaction
Example: Transaction with freight:
Sales invoice
ORACLE FINANCIALS
Page 73 of 173
Customer name:
Address details: PR Customer Invoice no:
Tax Registration:
Invoice date:
Payment term: PRIMMTR
Sno
Item
Qty
PRITEM
Tax
Freight
Rate
75
Amount (USD)
1000
75000
1570
Total:
76570
Debit memo:
Debit memos are used to bill a customer for additional charges in relation to a
previously invoice sale.
Memo lines:
These may be other range of situation in which we have to use debit memos.
Such when one wants to bill the customer for charges, freight and tax in such
situation, one can use memo lines.
DEBIT MEMO WITHOUT MEMO LINES:

SET UP THE TRANSCATION TYPE OF DEBIT MEMO.
ENTER THE TRANSACTION TYPE AS DEBIT MEMO.
FINALLY WE CROSS REFERENCE A TRANSACTION TO DEBIT MEMO IS LINKED.
NAVIGATION: Setup; transaction; transaction type

DEBIT MEMO WITH CHARGES
Setup; transactions; memo lines.

Standard memo lines
Operating unit: vision operations
Name: PR charges memo line
Description: PR charges memo line
ORACLE FINANCIALS
Page 74 of 173
Type: charges
Active date: 1 Jan -2011.
Click save and close.
Attach this memo line by creating a transaction in the transaction window and attach
this memo line charges in the description of the line item window.
NUM
ITEM DESCRIPTION
PR CHARGES MEMO
LINE
UO
M
QUANTITY
UNIT PRICE
10000
In more tabs attach another transaction in the cross reference and complete the
transaction by clicking the complete button.
Click details button to view the balances in detail.
2) Credit memo:
A credit memo is used to reduce the charges which are related to previously invoice
sale. A credit memo decreases the account balance by the credit memo amount.
Setup the transaction type.

Enter a credit memo.
Complete the transaction.
Query the transaction
Apply either the % or amount.
Apply the whole as credit memo.
Split term method
FIFO
LIFO
PRORATE
Setup the transaction type: PR CREDIT MEMO
As we create the debit memo before, similarly credit memo with creative
sign: negative (to reduce the customer balance).
Enter a transaction for the class credit memo.
Select the source: transaction source PR source
Select the class as credit memo & type as PR credit memo.
Give the date & GL date & currency.
Select the customer (PR customer), so that the ship to and bill to details get
filled up.
Click the line details to give the negative amount.
ORACLE FINANCIALS
Page 75 of 173
NUM
ITEM
DESCRIPTIO
N
FESTIVE
OFFER
QUANTITY
UNIT PRICE
AMOUNT
-500.00
Click save & close the line window.

Complete the transaction by clicking the complete window.
Click details to view the details of the amount and we can see the negative amount to
indicate the reduction amount in customer balance.
ANOTHER METHOD FOR CREDIT MEMO:
Retrieve the existing transaction with class as invoice and immediate payment
term and balance due is 10,000.
In order to reduce the transaction balance
Go to menu
actions
credit
It will go to the credit transaction window.

Credit transaction (vision operation: USD) PR, customer new.
Credited transaction
NUMBE
R
2975
1021
SOURCE
PR SOURCE
CREDIT MEMO
Batch: none
batch name
Source PR source
NUMBE
R
date: 1-nov -2011
complete transaction
105
2
Reference type: PR credit memo

Reason
ORACLE FINANCIALS
Page 76 of 173
GL date: 1-nov-2011
rule method: split term method
Currency: USD
TRANSACTION
AMOUNT
MORE
Transaction amount tab

Credit memo
credit transaction
LINE TAX
FREIGHT
AMOUNT
ORIGINAL
BALANCE DUE
3.8464
-2000
52000
50,000
TOTAL
3.8462
<2000.0>
52000
50,000
COMPLETE
CREDIT BALANCE
CREDIT LINES
We can either specify the percentage or ve amount.

If we specify the ve amount, it will automatically calculate the %.
Click complete button to complete the transaction.
It automatically generates the transaction number 1052.
Close the window.
Click on the refresh button in the 1021 invoice to see the reduction in the balance
due amount.
Click details to view the details of the amount.
Credit balance:
Another way to reduce the entire amount of the transaction is by clicking the
credit balance. It displays the message box.
APP-AR-11641
The balance amount of the transaction has been credited. Please save
your changes & complete the credit memo.
OK
Click ok & save.
We can see the following transaction amount
ORACLE FINANCIALS
AMOUNT
ORIGINA
L
BALANCE
DUE
Page 77 of 173
LINE TAX
FREIGHT
100.00
0
10000.0
0
10000.0
0
0.00
100.00
0
0.00
0.00
0.00
0.00
TOTAL
100.00
0
10000.0
0
0.00
10000.0
0
0.00
WE CAN SEE THE BALANCE DUE REDUCED TO ZERO.

Credit lines button:
Another way to reduce the amount is by clicking CREDIT LINES. Button on the
credit transaction window.
N
U
M
ITEM
DESCRI
PTION
U
O
M
QUANT
ITY
UNI
T PR
ICE
AMOUN
T
TAX
CODE
Commitments / Deposit:
Deposit is an advance from customer against supply & goods. The
customer agrees to deposit an amount on the ordering of goods.
Setup the transaction type of class deposit
Enter the header level details of transaction of class deposit.
Enter commitment details.
Complete the deposit transaction.
Enter the regular transaction
Attach the commitment to the transaction.
Navigation; Transaction; Transaction Type
Operating unit. Vision OPERATION

Name.
PR Deposit Description PR Deposit
Class.
Deposit
open receivable
Printing Option Print
Transaction Status Open
Allow freight
Creation Sign. Positive Sign
Application Rule Set
ORACLE FINANCIALS
post to GL
Tax Calculation
Natural Application only
Allow over application
Page 78 of 173
Invoice Type.PR Invoice
Start Date
1 Jan 2011
Credit memo Type

End date
Allocation Basis Lines only

Receivable Account
Offset Account.PR-110-1210-0000-000
GL Account Description PR-110-8300-0000-000
Select the class as Deposit and
Uncheck the allow freight and tax calculation
o Click save and close.
If Line, Tax and Freight is also selected from the Allocation basis, then also
Allow freight and Tax calculation is disabled, we cant select it.
Now enter the transaction in the transaction window. Select the transaction
source, class deposit Type, ship to Name. Give the GL date, Date, Currency.
Give the Line Details in the Line window by clicking the Line details button.
If the class->Deposit is selected, a commitment Tab is displayed. In the
commitment Tab, Give the follow details or amount and date.
Commitment Tab.
Effective date 10-nov-2011
Amount.5000.00
Item.
Memo line
Description Advance Payment
Transaction
The invoice Number 1034 is entered on 10-Nov-2011 or Date is 10Nov-2011.
See, you have entered a transaction with deposit as class but now enter the
transaction with class as invoice and Line amount as 20,000.
Now attach the Deposit Transaction Number 1034 to the Commitment field in the
main window.
Commitment->1034
Click save and complete.
On completing the transaction, we can see the balance amount as 15000.
Click details button to view the details.
Commitment Guarantee:
ORACLE FINANCIALS
Page 79 of 173
A guarantee is a documentation of a Promise made by the customer to
obtain the goods from the organization. In this case, no money is received from the
customer.
Setup the transaction type of class guarantee.

Enter the header level details of transaction of class guarantee
Enter the commitment details
Complete the guarantee details
Enter a regular transaction
Attach the commitment to the transaction.
Setup the transaction type of class guarantee

Create a transaction type PR guarantee with class guarantee and give
remaining values as given for the PR debit memo.
Enter the transaction type of class guarantee in the transaction window.
Select the transaction source, class as guarantee, type as PR guarantee, ship
to name as PR customer.
Give date (1 nov 2011) ,GL date, currency & payment as immediate.
Give commitment amount and date in the commitment tab as 1 nov 2011
&5,000.0
Save and complete the transaction.
Now enter another transaction of class->invoice, type->PR invoice and
balance due for the particular transaction is 20000.
Now attach the guarantee transaction number (1035) in the commitment
field of the regular invoice transaction & complete the transaction. Now still
we can see the balance due amount as20, 000 even after applying
guarantee. so, guarantee is nothing but a documentation of Promise made
by the customer to obtain goods from organization.
Click save & complete the transaction.
Click the details button to view the details of transaction. Here we can see a
new field.
Applied to commitment 5,000 will be displayed.
Consolidated billing invoice:
One can print a single monthly bill, which includes all customer transaction for a
particular period.
In this case, we will go for a consolidated billing invoice. There is no need separate
invoice foe each transaction.
Prerequisite for consolidated billing invoice.
ORACLE FINANCIALS
Page 80 of 173
Enable show billing in system option -> Trans & customer tab.
Attach the Proximal payment term in the customer Profile class.
Enable consolidation billing formats in customer Profile class -> save the
class.
Enter a transaction with Proxima payment term.
Enter more transaction by using action-> copy to from the menu bar. Or
Run the Program Print draft consolidated billing invoice.
After selecting the entire Prerequisite enter the regular invoice transaction
with payment term as Proxima payment and give the line details and
complete the transaction.
Select action->copy to from the menu bar, it displays the copy transaction
window. OR
Transaction -> copy transaction & give Trans number.
Copy transaction (vision operation)
Model transaction:
Source PR source
Trans number: 1036
Currency USD
reference:
Bill to PR customer
number: 4090
Term: PR Proximal
type: PR invoice
Date: 1-nov-2011
transaction amount: 13440.00
Due date: 20-nov-2011 GL date: 1-nov-2011
------------------------------------------Schedule-------------------------------------------Rule
days
number of times: 5
Number of days: 1
1 st transaction date: 1-nov-2011
First GL date: 1-nov-2011
request ID: 2764851
New transaction discount number
TRANSACTION
NUMBER
1037
1040
TRANS
DATE
1 NOV
2011
2 NOV
2011
3 NOV
2011
4 NOV 07
1041
5 NOV 07
1038
1039
ORACLE FINANCIALS
GL DATE
1 NOV
07
2 NOV
07
3 NOV
07
4 NOV
07
5 NOV
07
DUE DATE
20 NOV 07
20 NOV 07
20 NOV
2011
20 NOV
2011
20 NOV
2011
AMO
UNT
1344
0
1344
0
1344
0
1344
0
1344
0
Page 81 of 173
o On saving, it will generate the 5 new transaction number generated
having different transaction date, since the number of days is 1, and
also it creates a new request ID.
Now, run the Program->consolidated billing invoice.
Click Print document-> consolidated billing invoice.
It displays a new window. Select a single request and click ok.
This allows submitting an individual request.
It displays the Print consolidated billing invoice window.
Print consolidated billing invoice.
Run this request.
Name:Print draft consolidated billing invoice:
On selecting this, it will create new window-parameter
Parameters
Customer 4090
PR customer
Bill of date 9684 PR customer
Cut of date 15 Nov 2011
Last day of month no
Payment term: PR Proximal
Currency: USD
Type->detailed consolidated billing invoice (summary also available)
Pre-Printed stationery: no
OK
CANCEL
CLEAR
HELP
Click OK & submit the request.
(1)A request ID is generated .check whether request is completed by going on
the
(2)View->request->find.
ii) Click view output button to view the output. We can see consolidated report for
various dates.
iii) Close the report as well as request.
Transaction batches:
One can enter many transactions in a single batch.
One can view the differences between the control and actual totals as one
enters the transaction.
This will alert the data entry operator about the data entry error or missing
or lost transaction or duplicate entry.
Enter a transaction batch.
Enter the count.
Enter the amount.
Enter individual transaction.
View the transaction summary.
Navigation: transaction: batches.
ORACLE FINANCIALS
Page 82 of 173
Transaction batches: PR Tran bat
Source: PR sources
Name: 100 ->transaction batch number generated on sources.
Batch date: 1 nov-2011
GLdate: 1- nov-2011
Currency: USD
Status: new
Comment
Partially purged
Totals
Count
amount
Control
300000.00
Actual
300000.00
Difference
Transaction summary
transaction
There are 4 statuses

i) New->
ii) Open->
iii) Closed->
iv) Out of balance->
If control total is 3 & amount 300000 then enter 3 transactions by clicking. TRANSACTION
button & the total amount of 3 transaction should be 300000.00 if it is more than 300000
on then we can change the amount.
If 1 transaction is entered, then it transaction batch window, it shows the difference as 2.
Control
Actual
Difference
ORACLE FINANCIALS
3
1
2
300000
100000
200000
Page 83 of 173
Now change the status manually from new to out of balance, till the difference is
zero.
After entering 3 transaction & the amount equal to 300000.
Control
3
300000
Actual
1
100000
Difference
0
0
When we change the status to OPEN the actual count & the amount is equal to the
control count & amount.
We change the status to CLOSED when the actual count & the amount of the
transaction. Equals control count & amount & each transaction in the batch is
closed by applying receipt against it.
Click TRANSACTION SUMMARY to view the individual transaction.
Invoice with rule-accounting rules
Accounting rules determines the total revenue record in each accounting period.
3 accounting rules
1. Fixed duration
2. Variable duration
3. Deferred duration
Fixed duration:
Accounting rule & type is of fixed duration.
AR will prorate revenue recognition evenly over a Predefined period of time.
Variable duration:
Accounting rule & type can be of variable duration.
One has to specify the number of period in which one wants to recognize
revenue for which one assigns this rule of accounting.
Deferred duration or variable deferred:
One can use the deferred accounting rule by enabling the deferred revenue
check box in the INVOICING & ACCOUNTING RULES.
Window when one defines this rule. One can use this deferred accounting
rule to recognize the revenue by different %s over a period of time by using
action wizard.
One can use deferred accounting rule only for invoices that assign the bill in
advance invoicing rule.
ORACLE FINANCIALS
Page 84 of 173
FIXED
NAME
PERIOD
TYPE
NO .OF PERIOD
NAME
PERIOD
TYPE
NO .OF PERIOD
NAME
PERIOD
TYPE
ENABLE DEFERRED
REVENUE
VARIABLE
DEFERRED
NAVIGATION: Setup: transaction: accounting rules.

Invoicing & accounting rules (AR vision operation (USA))
Name: PR fixed acct rule description: PR fixed account rule
Type: accounting fixed duration
active
Period month
No. of periods: 5
Deferred revenue
Schedule
period
1
2
3
4
5
Total
Percent date
20
20
20
20
20
100
Click on the schedule period to display the period automatically.

Click save & close.
Variable duration accounting rule:
Name: PR variable acct rule description: PR variable account rule
Type: accounting variable duration
active
Period month
no. of periods: 1
Deferred revenue
ORACLE FINANCIALS
Page 85 of 173
Period
%
1
date
20
Total
20
Save the accounting rule;
The number of periods will be sat to 1 automatically.
Variable deferred accounting rule:
Name: PR def variable acct rule description: PR deferred account rule
Type: accounting variable duration
active
Period month
no. of periods: 1
Deferred revenue
Period
%
1
date
100
Total
100
Save the accounting rule;
The number of periods will be set to 1 automatically.

We need this rule when we enter transaction with invoicing new rules.
Invoicing rule-> in arrears fixed
These rules define when to recover the receivables, expand more than 1
accounting period.
Invoice rule-in arrear with accounting rule fixed 1 has to use this rule to
recognize the receivable at the end of the revenue recognition schedule.
Enter a transaction:
Attach the invoicing rule-in arrears at the header level
Attach the accounting rule fixed duration at the line level complete the
transaction.
Run the revenue recognition Program.
Finally view the journal entries.
Now transaction: transaction.
Select the source, class as invoice, type as PR invoice, customer.
Give the date, GLdate, currency.
Select the invoicing rule in arrears
Invoicing rule in arrears
Rules tab is also added in the line window.
ORACLE FINANCIALS
Page 86 of 173
Num
1
Click on the LINE ITEM button.

Line window->main tab.
item description
uom
PR item 2 wheeler
each
Amount location
quantity
100
100
10,000.00 exempt.
Num
1
Item
description
PR item 2
wheeler
unit Price
Click RULES TAB.

Accounting
Duration
1 st date
PR fixed acct
rule
1-nov-2011
Click saves & close this transaction while saving gets a note saying
APP-AR-11426------transaction date has been set to 1-mar-2011
OK
Click OK & also it says.
APP-AR-11425------GL date has been set to 1-mar-2011
OK
Click OK & close the lines window & complete the transaction.
Balance due is 10,000.
In order to view the accounting entries, run revenue recognition Program.
Note: transaction num 1057.
Run the Program.
Control > accounting > revenue recognition
Enable single request > radio button & click OK.
RUN this request----Name: revenue recognition
on selecting this it will ask for parameters window
Parameter
Print format DETAIL
Commit work
YES
ORACLE FINANCIALS
Page 87 of 173
OK CANCEL
CLEAR HELP.
Click OK & SUBMIT.

Once the request is completed, click view output.
Go to transaction num 1057 in the query mode of transaction window & execute by
Pressing ctrl+F11 key.
Click view > accounting to view the journal entries
Line type
receivable
REVENUE
REVENUE
REVENUE
REVENUE
ROUNDING
DISTRIBUTION
TAX
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
UNBILLED RECEIVABLE
Account
PR-000-1210-0000-000
PR-000-9003-0000-000
PR-000-9003-0000-000
PR-000-9003-0000-000
PR-000-9003-0000-000
PR-000-7827-0000-000
PR-000-2520-0000-000
PR-000-1232-000-000
PR-000-1232-000-000
PR-000-1232-000-000
PR-000-1232-000-000
PR-000-1232-000-000
PR-000-1232-000-000
PR-000-1232-000-000
Debit
10000
Credit
2000
2000
2000
2000
0.00
0.00
2000
2000
2000
2000
2000
2000
10,000
INVOICE RULE (II) in arrears with accounting rule variable.

Invoicing rule-in arrears with accounting rule variable.
Enter the transaction -attach the invoicing rule in arrears at the header
level.
Attach the Accounting rule variable duration at the line level.
Run the REVENUE RECOGNITION PROGRAM.
View the journal entries.
Enter the transaction as regular invoice transaction but select invoicing rule
as in arrears.
Invoice rule: in arrears
Click line item button to enter the like item details & accounting rules.
Go to rule tab select the accounting rule as accounting:PR VAR ACCT RULE
Rule tab
Num
ORACLE FINANCIALS
Item
descriptio
n
Pr item 1
2 wheeler
Accountin
g
Duration
1 st date
PR VAR
ACCT
RULE
1-NOV2011
Page 88 of 173
CLICK SAVE. On saving it displays a 2 note as we get while entering Previous invoices
[(i.e.) in arrear fixed date invoices]
Save & complete the transaction.
Run the revenue recognition Program to view the journal entries.
Journal entries.
LINE TYPE
ACCOUNT
DEBI
T
RECEIVABLE
PR-000-1210-0000-000
2000
0
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
ROUNDING
DISTRIBUTION
TAX
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
PR-740-7827-0000-000
400
0
400
0
400
0
400
0
400
0
0.00
PR-000-2520-0000-000
PR-000-1232-0000-000
4000
PR-000-1232-0000-000
4000
PR-000-1232-0000-000
4000
PR-000-1232-0000-000
4000
PR-000-1232-0000-000
4000
PR-000-1232-0000-000
CRE
DIT
0.00
20,0
00
INVOICE RULE (III) IN ADVANCE FIXED.

INVOICE RULE IN ADVANCE with accounting rule fixed.
Enter a transaction
Attach the invoice rule in advance at the header level.
Attach the accounting rule fixed duration at the line level.
Run the revenue recognition Program
View the journal entries.
Enter regular transaction attach the invoicing rule in the transaction window
Invoice rule: in advance
Payment term: PR IMM TR.
ORACLE FINANCIALS
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GIVE THE Accounting rule in the Accounting tab.
Num
Item
descriptio
n
Pr item 1
2 wheeler
Accountin
g
Duration
1 st date
PR VAR
ACCT
RULE
1-NOV2011
Click save, it displays 2 note click OK for those 2 notes & close the lines window.
Run the revenue recognition Program to view the journal entries.
Query the transaction 1056 & view the journal entries from the tools menu.
LINE TYPE
ACCOUNT
DEB
IT
CRE
DIT
RECEIVABLE
PR-000-1210-0000-000
200
00
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
REVENUE
PR-000-9003-0000-000
ROUNDING
DISTRIBUTION
TAX
PR-740-7827-0000-000
400
0
400
0
400
0
400
0
400
0
0.00
PR-000-2520-0000-000
0.00
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
UNBILLED
RECEIVABLE
PR-000-1232-0000-000
DE
TAI
L
1
1
1
1
1
1
1
PR-000-1232-0000-000
PR-000-1232-0000-000
PR-000-1232-0000-000
PR-000-1232-0000-000
400
0
400
0
400
0
400
0
400
0
PR-000-1232-0000-000
1
1
1
1
20,0
00
11) Invoice rules IV: in advance deferred

1) Invoicing rule-in advance with accounting rule-deferred.
2) Prerequisite: at the system option level. Enter the sales credit Present limit (100) &
enable require sales person in sales credit Present limit (100) miscellaneous tab.
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3) Enter a transaction
Attach the invoicing rule- in advance at the header level.
Attach the accounting rule-deferred at the line level.
4) Run the revenue recognition Program.
5) Run the revenue accounting Program.
Enter the scheduling revenue.
Enter the transfer sales credit.
6) View journal entries.
Enter the transaction with invoicing as in advance.
Give the accounting rule in line details window.
Rules tab: accounting: PR def VAR rule.
NUM
ITEM
DESCRIPTION
PR ITEM 2
WHEELER
ACCOUNTING
DURATION
FIRST DATE
PR DEF VER RULE
01 NOV 2011
Click save & close line window

Run revenue recognition Program
Po control: accounting: revenue recognition: revenue
Click revenue recognition & ok.
4. View the journal entry by tools - view accounting

View the journal entry.
receivable
ROUND LINE
TAX
UNEARNED
REVENUE
PR-080-12100800-000
PR-740-78270800-000
PR-000-25200000-000
PR-000-25500000-000
10000
0.00
0.00
10000
THE REVENUE IS NOT ALLOCATED TO TRANSFER A PERCENTEGE OF UNEARNED REVENUE

TO REVENUE IN THE REVENUE ACCOUNTING WINDOW.
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RUN THE REVENUE ACCOUNTING PROGRAM.
Control: Accounting: revenue accounting.
Find transaction window is opened.
Give the transaction number1059.
Transaction no:
1059
Select customer.
Click find.
It display revenue accounting & sales credit window revenue Accounting & sales creditPR customer
TRANSACTION
In transactions
ACTION HISTORY
NUMBER
1080
TYPE
PR INVOICE
SOURCE
REFERENCES
CUSTOMER
LINE TYPE
NAME
PR SOURCE
DATE
CURRENCY
ACTIONS
CATEGORY
1 NOV-2011
USD
PR
CUSTOMER
ITEM
DESCRIPTION
PR ITEM 1 2
WHEELER
REVENUE
SCHEDULED
UNSCHEDULED
AMOUNT
SCHEDULED
10000
0.00
RULE
PR DEF VAR RULE
10,000.00
UNSCHEDULE
D
10,000.00
DURATION
2
LINE DISTRIBUTIN
GL DATE
1 NOV 2011
AMOU
NT
10,000
CLASS
100.
00
UNEARN
ED
REVENU
E
ACCOU
NT
PR-00025500000000
HERE we can see that the amount is NOT SCHEDULED. To schedule the amount
Click action button
A window pop us
Choose 1 of the following
Unscheduled revenue
scheduled revenue
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Page 92 of 173
transfer sales credit

add non revenue sales credit
record acceptance
CANCEL
BACK
NEXT
CHOOSE scheduled revenue & click NEXT button.

A window to choose the amount or % of revenue to be displayed.
Choose the amount or % of revenue u wish to adjust.
TRANSACTION CURRENCY
TOTAL VALUE OF SELECTED LINES
ADJUSTABLE REVENUE
USD
10,000
10,000
All adjustable revenue (z)

% of total value of selected lines(y)
Amount
Select any 1 radio button & click NEXT button.
Here we select % & total value of selected lines radio button & click next
Another window is displayed.
Step 5:
Amend the GL date if required & select a reason for the revenue adjustment.
GL DATE : 1-NOV-2011
TYPE: EARN REVENUE
REASON: REVENUE ADJUSTMENT
COMMENT:
CANCEL BACK FINISH
Select reason & click FINISH button.
4 reasons are there
1. Incorrect sales person
2. Other
3. Revenue adjustment
4. Revenue management engine.
An action result window is displayed.
Action result
LINE TYPE
1
ITEM
DESCRIPTION
PR ITEM 1 2
WHEELER
RULE
PR DEF VAR RULE
ORACLE FINANCIALS
CATEGORY
AMOUNT
SCHEDULED
UNSCHEDULED
10000
5000.00
5000.00
DURATION
5
Page 93 of 173
LINE DISTRIBUTIN
GL DATE
AMOUNT
1 NOV 2011
<5000>
50
1 NOV 2011
5000
50.0
0
CANCEL
CLAS
S
ACCOUN
T
PR-00090030000000
PR-00025500000000
SAVE
Clicks save.
On save, we can see the adjusted 50% from unearned revenue to revenue for the
month of 1-nov-2011.so, I have transfer 50% amount from the unearned revenue
to revenue.
GL DATE
AMO
UNT
CLASS
ACCO
UNT
1 NOV-2011
1000
0.00
10
0
UNEA
RNED
REVEN
UE
1 NOV 2011
<500
0>
50
5000
50
.0
0
PR00025500000000
PR000900
3000
0000
PR000255
0000
0000
1 NOV 2011
REVEN
UE
UNEA
RNED
REVEN
UE
Acti
on
nu
mb
er
1265
1265
Then in revenue accounting & sales credits window ,we can see in the revenue
item as
scheduled
unscheduled
ORACLE FINANCIALS
5000
5000
Page 94 of 173
Similarly do for the remaining 5000 balance unscheduled
Choose the scheduled revenue in step 1 & click NEXT.
Choose sales credit type if transferring sales credit in step2 do not select at
Present click NEXT.
Choose which lines to adjust in step 3. Nothing to select. Default select
All lines are selected & click NEXT.
Choose the amount in step4
All adjustable revenue radio buttons as I selected % before & click NEXT.
Choose the GL date as 1 dec-2011 in step5 & click finish.
Clicks save.
All the amounts are scheduled.
GL
DATE
AMOUN
T
CLASS
1 NOV2011
10000.
00
100
UNEARN
ED
REVENUE
1 NOV
2011
<5000
>
50
1 NOV
2011
5000
1 DEC
2011
1 DEC
2011
5000
50.
00
50
5000
-50
REVENUE
UNEARN
ED
REVENUE
REVENUE
UNEARN
ED
REVENUE
ACCOUN
T
Actio
n
numb
er
PR-000-25500000-000
PR-000-90030000-000
1265
PR-000-25500000-000
1265
PR-000-90030000-000
PR-000-25500000-000
1266
1266
In the revenue Accounting & sales credit window. We can see revenue
scheduled
unscheduled
5000
0
Tool- view Accounting to view the journal entry.

LINE TYPE
ACCOUNT
RECEIVABLE
PR-000-1210-0000000
REVENUE
PR-000-9003-0000000
ORACLE FINANCIALS
D
E
BI
T
CRED
IT
TRA
N
LIN
E
NU
M
5000
DETA
IL
LINE
NUM
1
0
0
0
0
Page 95 of 173
REVENUE
UNEARNED
REVENUE
PR-000-9003-0000000
PR-740-7827-0000000
PR-000-2520-0000000
PR-000-2520-0000000
UNEARNED
REVENUE
PR-000-2520-0000000
UNEARNED
REVENUE
PR-000-2520-0000000
ROUNDING
DISTRIBUTION
TAX
5000
0.00
0.00
1
1
5
0
0
0
5
0
0
0
10,00
0
Tax setup (1)

Enterprise has to bill the customers with tax amount, collect the sale & then pay to
the tax authorities.
System options: location based tax.
A)navigation: system: system option
b) In tax tab we are going to use,
Tax method-sales tax
Close the system option: as there is Predefined location based tax with state
country & city with rates also.
2) Setup > tax codes
Tax code for which the tax calculation base is before discount.
Tax code for which the tax calculation base is after discount.
Tax code is based on quantity.
Adhoc tax code.
Tax inclusive tax code.
Prior tax code.
Entering the transaction location based tax
Enter the transaction in the application window with source, class as invoice,
customer, .give the date, GL date.
Click LINE ITEM button give the item details such as quality, unit Price &
amount field is filled.
Select the tax code as LOCATION. Tax code = location(location, exempt)
Select tax button on the button on click this tax button, tax is calculated at
the rate of 12%.as we defined rates for state as 5, country as 5, city as 2, tax
will be calculated for the particular transaction.
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Close the tax& line window & complete the transaction.
We see the calculation of tax follows
Balance due
Line
Tax
Freight
Charges
Total
10000
1250
0.00
0.00
11250
ii) How to setup the tax code

Tax code for which the tax calculation base is before discount.
Ex: tax is calculated before deducting the discount.
SNO
ITEM
PR
ITEM
QT
Y
10
RATE
AMOUNT(USD)
1000
10000.00
SUBTOTAL
= 0.00
TAX (AMOUNTTAXCODE/100)
10000PR BEFORE DIS /100)
100005/100=1000.00
IF PAYMENT is made within 15 days we get 5%discount as we attach PR 30
DAYS D as payment term-PR 30 days with discount.
Here tax is calculated before deducting the discount.
Payment term should be some payment term for which discount have been
defined.
Define the tax code
Setup > tax codes
Tax codes & rates window gets open.
Rate tab
Tax code
PR
before
DIS
Tax
type
SALES
TAX
Taxable
basis
BEFORE
DISCOUNT
Tax
rate
10
Tax
amount
Sign
credit
EFFECTIVE TAB
Tax code
PR before dis
From
01-jan2011
To
Enabled
Clicks save to save the particular tax code & close.

There are 5 taxable bases
1. Before discount
2. After discount
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3. Quantity
4. PL/SQL
5. Prior tax
Enter this transaction with this particular tax code
Select source, class as invoice, type as PR invoice, customer. Give date & GL date.
Click line item button & give line details.
Now, select tax code as PR before discount tax codePR before discount & click
tax button to view calculation.
Click save & close & complete the transaction.
c) Tax code for which the tax calculation base is after discount.
Receipt setup:1. Receipt setup, cheques, bank transfers and all other forms of receipt payment
received from a customer is called receipt.
2. Primary function of oracle receivable is to receive payments against the open
invoices. The payment received has to be applied against the invoices.
Setup the bank:
Enter the bank details

Enter the account code under the receivable options.
Setup the bank first:

One can use the same bank details used in the payables or one can define your bank
and enter the bank details namely the name of bank, branch, and account number. One
has to enter the account codes under the receivable options.
Application window to define the bank: Navigation: Setup; Receipts; Banks.
It displays the bank window to enter the details of the bank.
Set up the receipt class:The definition of receipt class determines the Processing step for manual or
automatic receipts.
Attach the relevant method for the receipt class.
Enter the payment method.
Attach the bank account details.
Updating of GL accounts
Finally attach the formatting Programs.
Save the receipt class.
Define the receipt class in application window: Navigation: Setup; Receipts; Receipt
classes.
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Page 98 of 173
It goes to the receipt class window.
Receipt class (vision operations)

---Receipt class----------------------------------------------------------------Name :
Notes receivables.
PR Receipt class manual
Creation method:
Require confirmation.
Manual
Remittance method:
Standard and Factoring

By automatic clearing
Clearance method:
----Payment method-----------------------------------------------------------Name :
Printed name:
PR payment method
PR Payment method
Effective dates:
1-Jan-2011
Automatic
Manual
Bills receivable
Bills receivable
remittance
Manual tab:
Debit memo inherit receipt numbers.

Bank Accounts
Name the receipt class in the name field.

Select any one of the following method.
Automatic
Bills receivable
Bills receivable remittance
Manual
No remittance
Select manual-> if it is manual, one has to enter it manually in receipt or quick cash
window or import using auto lock box.
Select one of the remittance method and clearance method.

Select remittance method as standard and factoring from the following.
Standard
Factoring
Standard and factoring
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No remittance.
Select the clearance method as By automatic clearing from the following:
Directly
By automatic clearing
By matching -> cash management is needed
Specify the payment method to identify the nature of payments such as
cash, cheque, or credit card.
Enable the check box debit memos inherit receipt numbers
Click bank accounts button. It displays the remittance bank details.
Remittance banks (vision operation) PR receipt class format, PR payment method

manual.
Bank name: PR Main Bank
Branch name: PR BANK BRANCH
Account name: PR CURRENT Currency: USD

ACCOUNT
Minimum receipt amt:
Risk elimination days:
Clearing days:
Effective dates:
01-Jan-2011
-Override bank
Primary [ ]
GL accounts
Cash:
Bills receivables
Formatting Program.
Unapplied receipt:
Receipt:
Unidentified receipt:
Confirmation:
On account receipt:
Remittance:
Unearned discounts:
Factoring:
Earned discounts:
Short term debt:

Bank charges:
Select the bank DS main bank; the branch name will be displayed.
Select the account name, ass the account details will be displayed.
Formatting Program tab -> attach the format.
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Remittance transmission:
Remittance Print:
Factoring transmission:
Factoring Print
French bills receivable remittance

Print bank remittances Program
Print bank remittance Program.
Click save and close the window.

Receipts -> standard:
Receipt -> enter and confirm.
Enter the receipt details and view the accounting lines
Enter the customer details and view the accounting lines.
Apply the receipt to a transaction and view the accounting lines.
Receipts -> Remittance:
Create the remittance
Attach the remittance method as standard , receipt class, payment
method.
Attach the bank details and select the receipt / receipt batch.
Approve, format the remittance
Query the receipt to check the status as remitted.
View the accounting line.
Receipts -> clearance:
Automatic clearing for receipts
Query the receipt and view the accounting lines.
Navigation for entering a receipt:
Receipts -> Receipts.
Receipts > factoring remittance:
Enter the receipt:
Enter the receipt with receipt date and maturity date.
Remit the receipt:
Enter the remittance date. Attach the remittance method as factoring.
Clear the receipt:
Run the automatic clearing for receipt on clearance date.
Eliminate bank risk as NO.
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Run the automatic

clearing for receipt on
maturity date.
Eliminate bank risk as YES.
01 Nov 2011
Factoring will enable one
01 Nov 2011
to remit the receipt to
Maturity date
20 Nov 2011
ones bank. So that the
bank lend money against the receipt prior to the maturity date.
Enter the receipt with receipt date and maturity date.
Apply the receipt to the transaction.
Enter a receipt in Receipts > receipts.
Payment
Receipt number
Receipt amt
Receipt type
Status
Receipt date
GL date
PR payment method
PR RS 006
USD
Standard
Select the payment method: PR payment method.

Give the amount receipt date, GL date and maturity date ( 20 days or 10 day
from the receipt date). Clicks save and initially the status is confirmed.
Select the PR customer for the customer list of values.
Click save and search and apply button to select the invoice.
A search and apply (vision operations) PR RS 006 window is displayed.
Click Preview button in this screen and a window with lot of invoice created
will be displayed.
Select the invoice, apply date, amount applied and save it.
Go to the receipts; remittance to select the receipts.
In the remittance window, give the batch date, GL date, currency and bank,
click account number to display the account number.
Select the remittance method: factoring.
Batch date: 01 Nov 2011
Select a bank and bank detail gets filled.

Click manual create button at the bottom.
Go to view-> find all. It lists all the receipts for remitting.
Select the receipts that needs to be remitted i.e., PR RS 006.
Give the bank charges as 100 charged by the bank for this particular receipt.
Since I am going to mature the receipt before maturity date.
First approve the receipt by clicking approve button and click yes in the
decision message box.
Note down the request id check whether the request is completed.
Click view output details. It says the receipts have remitted. Close this
request and output window.
Note down the batch number and Requery the batch number. The Process
status shows completed approval in the remittance window.
Process status: Completed approval.
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Now we need to format this receipt. Click format button. It display a message
box with message submit one batch for format.
Click yes.
Note down the request number and its completion.
Now the Process status shows completed format and close the remittance
window.
Query the receipt number and we can see the status as remitted.
Status: Remitted.
Clearing the receipt is the next step
First we will run the automatic clearing for receipt on clearance date and
bank risk parameter as no. the status of the receipt is cleared.
Second we will the automatic clearing for receipt Program on maturity date
and bank risk parameter as yes the status of the receipt is risk eliminated.
Lets see the clearing of the receipt with clearance date.
Run the clear / risk eliminate Program.
Receipt : clear / risk eliminate
Submit a single request.
Select the Program Automatic clearing for receipt in the name field of the
clear / risk eliminate window and give the parameter eliminated bank risk as
no.
Give the clear date and GL date as Nov 2011, and receipt number and
customer name.
Submit this request.
Note down the request id and check its status in view request find menu.
View the output by clicking the view output button.
Close this window and query the receipt number in the receipt work bench
and the status as cleared form remitted in the receipt window.
Status: cleared.
Again, run the clear / risk eliminated Program on the maturity date and enter
single receipt radio button and click ok.
Select Automatic clearing for receipt Program and select eliminate bank
risk parameter as yes.
Give the clearing date and GL date as 20-nov-2011.
Select receipt number, customer name from the list of values.
Submit the request by clicking ok and check its completed status.
On view the output, I can risk eliminated by clicking the view output button.
Query the receipt number in the receipt window and see the status as Risk
eliminated.
Status: Risk eliminated.
5) Receipts > Adjustments:
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PR RS 007
Page 103 of 173

One can create adjustments to increase or decrease the balance due for a invoice,
debit memo, chargeback or commitment.
Prerequisites:
Define a receivable activity.
Enter the approval limit.
Set the approval limits: (but it is already defined)
Navigation: Setup; transaction; approval limits.
User
name
Docume
nt type
Oflinu
x1
Oflinu
x1
Adjustme
nt
Receipts
write off
Reas
on
Curren
cy
From
amou
nt
To
amou
nt
USD
<100
0>
0.00
0.00
USD
Prima
ry
3000.
00

Setup > receipts > receivable activities.
Receivable activities (receivables vision operation (USA))
Operating unit
Name
Description
Type
Vision operations
PR receivable activity
Adjustments.
Active
Adjustments:
Adjustment, bank error, earned discount, endorsement, finance charge, miscellaneous,
cash , short term debt, unearned discount, receipt write off, claim investigation ,
Prepayment etc..
Accounting
GL account source
Tax code source
Activity GL account
Distribution set
GL account description
Activity GL account
None
PR-000-5230-0000-000
Karthikraja co-no department- standard
adjustment- no sub account- no Product

I) Enter a receipt.
ORACLE FINANCIALS
Page 104 of 173
Apply to a transaction
Click adjustments
Attach the receivable activity
Query the transaction.
II) Enter the new receipt by
Selecting payment method: PR payment method.

Give the receipt number and receipt amount.
Give the receipt date, GL date, maturity date as 1 Nov 2011
Select customer PR customer from list of values
Click apply button.
Select the transaction from the list in the apply to field.
For eg: Transaction amount

=
10000
Receipt amount applied = 9800
--------Balance due
=
200
Apply date: 4 Nov 2011.
Click adjustment button to adjust this balance 200. Adjustment window popup.
Adjustments (vision operations) PR customer 1038, 1
Installment
Or
igi
na
l
Ba
la
nc
e
Li
n
e
T
a
x
Fr
ei
g
ht
1
0
0
0
0
2
0
0
0
.
0
0
0.
0
0
0
.
0
0
0.
0
0
Ch
ar
ge
s
T
o
t
a
l
1
0
0
0
0
2
0
0
0.
00
Adjustment 0.00
Pending adjustments: 0.00
----------------- Adjustments -----------------------------------------Main
Account,IDS
comments
Number
Activity name
Type invoice
Amount
GL date
3665
PR receivable
activity
Invoice
200
1 Nov 2011
ORACLE FINANCIALS
Adjustment
date
1 Nov 2011
Page 105 of 173
6) Auto adjustments:
One can run auto adjustments to automatically run auto adjustments for the
remaining balances of all open invoices, debit memos, credit memos and charge backs.
Prerequisite:
Since, we have already defined a receivable activity for adjustment we could use it.
Create auto adjustments.
i) Generate report only:
We will generate report to find the invoices and the amount to be generated
to create adjustments
Ii) Create adjustments.
Query the transaction to see the amount adjusted.
Navigation: Control > Adjustments > create auto adjustments.
Create auto adjustments (vision operation)
---- Selection----------------------------------Invoice currency
Remaining amount
Remaining
Due date
Transaction type
Customer name
Customer number
Transaction
USD
-1000 to 1000
%
1 Nov 2011 to 10 Nov 2011
PR customer
Parameter:
Activity
Type
GL date
Reason
Request id
Invoice adjustment
1 Nov 2011
Option
Generate report only.
Create adjustment.
ORACLE FINANCIALS
Page 106 of 173

Adjust related invoices.
Submit
Type:
Charge adjustment, freight adjustment
Invoice adjustment, line adjustment
Tax adjustment.
First click generate report only to create the report and see the adjustments
to be adjusted.
Click submits and the request id is generated. Verify whether it is completed.
Note: please create transaction and receipts with balance due less than 1000
to verify the adjustments working fine or not.
Once it generate only job is over. Verify the report and submit another report
by selecting create adjustment radio button and click submit.
Verify the job request is completed and view click output to see the output
details.
Note down invoice number and go back to transaction and query the invoice
to check whether the balance due is got adjusted. Click details button to see
original and adjusted balances.
Receipt source:One can use the receipt source to number either automatic or manual receipt
batch.
Name of the receipt source.

Attach the receipt class, payment method and bank a/c.
Enter the type of batch numbering and the last number entered.
Enter the effective dates.
Navigation:Setup > receipt > receipt sources.

Receipts write off:
In oracle receivable, one can write if and apply the receipt amount.
Prerequisite:
Enter the approval limit for receipt write off.
ORACLE FINANCIALS
Page 107 of 173

We have already defined the receivable activity for adjustment. Similarly
create the PR receipt write off by selecting the receipt write-off type and
other details are same and save and close the activity window.
Approval limit also have been defined already for up to 3000.
Enter a receipt:
Apply to a transaction
Select receipt write-off for excess unapplied amount to write off.
Select on account of receipt write off for excess amount to be in on account.
Enter the receipt with payment method as PR payment method; receipt
number PR RS 0021, receipt amount. 11500 and receipt date, GL date,
Maturity date 25 Nov 2011.
Select the customer: PR customer and Press enter and save the receipt and
click apply button.
Select the transaction by clicking on the list of values in the apply to field.
Transaction number is 1103 having balance due of 11000. Change the apply
date 25 Nov 2011, amount applied as 10000 and click save.
There are 500 which is an unapplied amount. Now we need to write off the 500.
Select receipts write off.
AR STEPS:
Based on purchase order issued by customer, receipt we recd..
Generate sale order.
Invoice is raised and payment made.
Flexfield -> sales tax location field (M)

Territory flexfield (O).
System option accounting method.
Tax-> sales tax=defined in state, country, city flexfield and VAT= no
validation
Specify the location tags;
Hierarchy of tax.
Define the payment terms.
Define the collectors, customer Profile class.=== for creating customers.
Define the customer === give the customer Profile and collectors here and
payment terms.
Define tax location rates for state, country and city.
For invoice, we need transaction type. In that give receivable, revenue,
unbilled receivable, tax and GL A/C need to be specified.
Define transaction source.
After defining
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Page 108 of 173

Apply to field and apply date 25 Nov 2011 and amount applied is 500 and
give the activity as PR receipt write off and click save and closes the
application window.
Store the excess amount in the on account.
1-4 steps are same. Instead of writing off the amount lying as unapplied we
can keep the excess amount in the on account which can be used for some
other transaction.
Select on account in the apply to field for the excess 500 and save the
record. So now the excess amount is move to on account.
If we want to use this on account amount to some other amount, Give the
amount applied as zero the amount goes to unapplied status. Then we can
use this amount for some other transaction.
Automatic receipt write off:
One can run automatic receipt write off Program to write off multiple receipts
advanced individual receipts returns.
The concurrent Program creates a write off and closes receipts.
Prerequisite:
Define a receivable activity for receipts write off.

Activity GL account: PR-000-1345-0000-000 -> Receipt write off.
Create automatic receipt write off:Generate report only:
Generate report will written off receipts which are to be write off.
Create adjustments.
Enter receipts with a difference of 0 to 3000 amount that is more than the
original transaction.
In order to create receipt writes off.
Navigation: control > write off receipts
A window receipt writes off is displayed.
Create receipt write off:
Selection:
Receipt currency
Unapplied amount
Payment method
Customer name
Customer no
USD
3000
PR payment method
PR customer
4090
Parameters:
Activity
ORACLE FINANCIALS
PR receipt write off
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Apply date
GL date
25 Nov 2011
25 Nov 2011
Option:
Generate report only.
Report writes off.
Submit
Generate report
only so submit the report by clicking submit to list the
written off receipts which needs to be adjusted.
Now give the same details again click create write off receipts radio button.
Request id is generated click view request find to check the completion of
report.
Requery the query and see the write off is created.
Application rule set:The application rule set determines the order in which receivable reduces the
balance due for the transaction like line, freight, tax and finance charges.
Prerequisite:
Create an application rule set.

Attach the application rule set to the transaction type.
Enter a receipt
Apply the receipt against the transaction
Query the transaction
Creation of application rule set: Navigation: setup > receipts > application
rule.
Give a name for application rule set: PR application rule set.
Receivable will automatically assign the over application rules by default this
rule will be the last in the sequence for any application rule set.
One has to enter the rule detail for the application rule. The rule details
section describes the type and tax treatment for this rule.
Save and enter the application rule detail type: line, freight, charges. Tax
treatment = Prorate, before, after, none.
Application rule sets:
Description
Freeze.
ORACLE FINANCIALS
PR application rule set

PR application rule set.
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Application rule sets:
Rules details
Sequence
Rule
Rounding
collection
Type
Tax treatment
1.
Line
Line
Before
2.
Freight
Freight
None
3.
Charges
Charges
None
4.
Over application rule
A) The system will Proportionality reduces the net amount for the line and associated tax
amount when I select Prorate.
B) The system will first reduces the tax amount and then apply the remaining amount to
line when I select the before option.
C) When I select after, it first reduces the line amount then it applies the remaining
amount to tax.
6) Click save and after saving enable the freeze check box.
7) A decision box will be displayed.
Pending data changes will be saved. Save changes and continue?
Click on yes button.
YES
NO
8) Close application rule set.
Attach the application rule set to the transaction type:

Query the transaction invoice PR invoice in the transaction window and
attach the PR application rule set in the application rule set field.
Application rule set: PR application rule set.
After attaching rule set, click save and close the window.
Enter the receipt by selecting payment method; enter the receipt number,
amount, receipt type (standard), receipt date, GL date, and maturity date.
Select the customer and save this window.
A) click apply button to select a transaction from the list of values having balance
11100 with receipt entered amount 10000. So balance due is 1100.
B) Save and close this application and receipt window.
4) Query the transaction number 1146 in the transaction window
transaction > transaction.
ORACLE FINANCIALS
by going into
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5) execute the query by Pressing ctrl +F11. The transaction is retrieved and we can see
balance due of 1100. Where line 600 and freight 500 so total 1100.
6) First tax has been applied and the remaining amount is applied to line amount.
7) The application is based on the application rule set defined.
8) Close the balance and transaction window.
Receipt reversal:
One can reverse the receipt with customer stops payments or receipts come from
an account with insufficient funds.
Standard receipts reversal:
Query the receipts
Reverse the receipts.
Debit memo reversal:
Query the receipts.
Enter a debit memo reversal.
Query at the transaction work bench.
Category:o
o
o
o
Non sufficient fund

Reverse payment
Stop payment.
Standard receipt reversal:
One can create a standard reversal for a receipt and receivable automatically creates
reversal journal entry for ones GL and reopens all debits and credits which originally
closed by the receipts.
Query the receipts number in the receipts window. (PRRS 001)
To reverse the receipt, click reverse button on the receipt window. A reverse
window will be displayed.
Reverse:
Date
Category
Reason
Comment
18 Nov 2011
GL date
Non-sufficient funds
20 Nov 2011
Insufficient funds
Debit memo reversal.

Account type
ORACLE FINANCIALS
Document num:
Page 112 of 173
Reverse
Cancel
Click reverse button and we can see the status in the receipt window as Reversed.
Status : Reversed
Journal entry:
Line num
Cash
Cash
Confirmation
Confirmation
Confirmation
Receivable
Receivable
Receivable
Receivable
Remittance
Remittance
Remittance
Unapplied
Unapplied
Unapplied
Unapplied
Unapplied
Unapplied
Unidentified
Unidentified
Account
PR-000-11100000-000
1110
1240
1240
1240
1210
1210
1210
1210
1245
1245
1245
1240
1240
1240
1240
1240
1240
2990
2990
Dr
Cr
10000
Tran. Line
10000
0.00
10000
10000
10000
10000
10000
10000
0.00
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
Debit memo reversal:

When one creates debit memo reversal, receivable reverses the receipt but does not
update any other receipt activity that is associated with the original receipt.
Query a receipt that has been applied to a transaction.

Here we take PRRS004 where entire amount is paid
Reverse the receipt.
Even though the receipt has been reversed, the status of the receipt remains
the same.
It creates a debit memo transaction like newly created transaction the
amount needs to be paid.
Reverse window:
Date
Category
Reason
Comment
ORACLE FINANCIALS
20 Nov 2011
Reverse payment
Payment reversal
GL date
20 Nov
2011
Reverse payment
Payment was reversed.
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Account type
Debit memo
reversal.
Reverse
Document num:
Cancel
Click reverse button to reverse transaction.

Take the receipt number and it will be the newly created transaction number PR RS
004.
Query the transaction in transaction window.
Source
Number
Class
Type
Debit memo reversal

PRRS004
Debit memo
Click line details.

We will see a new line created with description Debit memo for reversal of
payment of PR RS 004.
Miscellaneous receipts:
These are receipts which are non-operational income such as income earned
from investment, interest, refund and towards sale of stock.
Prerequisite:
Set up a distribution set
Set up a receivable activity
Miscellaneous receipt
Enter a miscellaneous receipt.
I) a) set up a distribution set:
Navigation: Setup > receipts > distribution sets.
It displays the distribution set window to enter the distribution.
Give a name for distribution set.
Give the distribution set lines for 100%.
b) Set up a receivable activity:
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Setup > receipts > receivable activity.
Receivable activity
Operating unit
Name
Description
Type
Active.
Vision operation
PR MIS REC ACT
PR miscellaneous receivable activity
Miscellaneous cash
GL account source
Distribution set
Tax code source
None
Activity GL account
Distributions set
PR MIS DIS set
GL account description
Asset tax code
Liability tax code
Click save and close the receivable activity window.
Distribution set:
Operating unit
Name
Description
Active.
Vision operation
PR MIS DIS set
PR miscellaneous Distribution set
Distribution set lines:

%
30
40
40
Account
PR-110-4150-0000-000
PR-120-4150-0000-000
PR-130-4150-0000-000
Description
Miscellaneous revenue for dept 110
Total 100%
Clicks save and close the distribution set.
Reference
Post mark date
1. Customer
2. Customer number
3. Location
4. Taxpayer ID
5. Customer bank
6. Name
7. Account
8. Payment server id
9. Approval code
10.
Remittance bank
11.
Name
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12.
Branch
Receipt
history
Account
Reverse
Search
and apply
Distribution
Click distribution window.

It displays the distribution window to enter details.
Enter the receipt:

Enter the receipts with receipt type as miscellaneous.
Receipt type =Miscellaneous
Enter the payment method, receipt number, receipt amount, receipt date, GL
date.
Receipt
Payment method
Receipt number
Receipt amount
Receipt type
Status
Receipt date
GL date
Maturity date
Functional amount
Main
PR payment method
PR RS MIS0001
USD 10000
Miscellaneous
Confirmed
1 Nov 2011
1 Nov 2011
10000
More
Main tab:
Paid by: (name)
Purpose:
Activity: PR MIS REC ACT
Distribution set: PR MIS DIS SET
Tax code:
Tax amount:
Tax rate %:
Description:
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Chargeback:
Setup a transaction type

Enter a receipt
Enter the amount as zero.
Select a transaction
Enter the chargeback details.
Query at the transaction workbench.
Set up a transaction type:One has to use chargeback to create a new debit item for ones customer in the
place of existing debit items which is to be closed.
Set up > transaction > transaction type
Receipt batches -> Manual & quick:
Auto cash rule set:
Create an auto cash rule set.

Attach the auto cash rule set to the Profile class.
Query the customer to check whether the Profile class got updated.
Select manual quick receipt batch.
Enter the quick cash details
Post the quick cash.
Auto cash rule set:
Receivable once post the quick cash Program that uses the auto cash rule set to
determine how to attach the receipt against the customer open transaction. One has to
specify and sequence these rules as the set which is defined in the auto cash rule set.
Creation of auto cash rule set:
Navigation: Setup > receipts > auto cash rule.
Auto cash rule sets (Receivables vision operation (USA)
Name: PR auto cash rule
Description: PR auto cash rule.
Active.
Items in disputes.
Finance charges.
Open balance calculation:
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Discounts: Earned only.
Automatic matching rule:
Remaining remittance amount: Unapplied.
Apply partial receipts.
Auto cash rules:
Seq auto cash rule:
Apply to the oldest invoices first.

Clear past due invoices.
Clear past due invoices grouped by payment term.
Match payment with invoice.
Clear the account.
Click save and close this window.
Discounts -> earned only -> the customer can take only earned discount.
Earned and unearned -> can take both earned and unearned discount.
Unearned discount is one that can even been taken after the discount period
is over
None -> cannot take any discount.
Remaining remittance account: on account and unapplied.
After defining the auto cash rule set, now we will attach the auto cash rule
set with the Profile class.
Query a Profile by going to customers Profile classes and query a Profile class
: PR CUS PROF CLS
Attach the auto cash rule set: PR Auto cash rule in this window. Auto cash
rule set: PR Auto cash rule set.
Click save and click update all Profiles radio button and click ok and check for
the request is completed.
Close all the windows.
Query the customer to check whether the Profile class got updated
customer; standard.
Enter the customer name and click find.
Go to Profile -> transaction tab and see the auto cash rule. Set has been
attached.
Go to address tan and click open and go to Profile transaction tab and
check whether the auto cash rule set got attached.
Close the customer window.
Enter receipts with batch type as manual quick.
Batch type: Manual quick.
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B) Select the batch source.
Batch source: PR receipt source.
C) Enter the batch date, GL date, deposit date as 10 Nov 2011
D) Enter the receipt class.
Receipt class: PR receipt class manual 1.
E) Enter the count and amount.
Count
3
0
0
3
Control
Actual
Reversed
Difference
Amount
100000.00
0.00
0.00
100000.00
F) click save and click receipt button to enter the receipts number.
Receipt number
PRRS001
PRRS002
PRRS003
Receipt date
16 Nov 2011
16 Nov 2011
16 Nov 2011
Amount
10000
30000
60000
Application type
Single
Multiple
Auto cash rule set
If application type is multiple then click multiple buttons to select the multiple
transaction number.
100044 -> 10000
100048 -> 10000
100049 -> 10000
Click save and close application window.
G) Select the customer for all the receipt.
H) After entering all the 3 list i.e., the last row should auto cash rule. Set attached
to the application type.
I) Click post quick cash button.
Submit 1 batch for quick cash posting?
J) A decision box is displayed.
YES
NO
K) Click yes button and check the request is completed.

L) Click view output button to see the details and output of this rule.
It selects the old invoices first and applies the invoices.
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M) Close the request window and quick cash window and see the status as control
cunt and amount is equal and status as open.
N) On saving the status will be closed and the difference will come as 3 and
100000.
Count
3
0
0
3
Control
Actual
Reversed
Difference
Amount
100000.00
0.00
0.00
100000.00
Receipt batches Automatic:One can use automatic receipt future to automatically generate receipts for
customers with whom one has Predefined agreements. The creation of automatic
receipts involves three steps:
Create: it involves selecting the invoices that one want to include automatic
receipts.
Approve: It involves deleting, updating and approving the receipts that one
have selected.
Format: It involves formatting ones automatic receipts on to paper and send
to one customer for confirmation or notification.
Need to create some setup step before creating automatic receipts.

Setup the customer bank.
Set up receipt class automatic.
Create a sequence in general ledger
Attach the customer bank and payment method automatic to the customer.
Enter a transaction.
Copy the transaction to create more
Enter a receipt batch automatic
Create, approve and format the receipt batch -automatic.
Maintain the receipt batch.
Query the individual receipts.
Setup the customer bank.
Setup > receipts > banks
Bank name: PR customer bank
Branch name: PR customer branch.
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Institution: bank
Click bank accounts button.
Bank account
Operating unit : vision operations.
Name : PR customer account

Account use: customer
Number: 90001
Currency : USD
Click save and close the window.
Setup receipt class Automatic
Setup > receipts > receipt classes.
Name: PR receipt class automatic.
Creation method : automatic
Remittance method: no remittance
Clearance method: directly.
1. Give a name for payment method.
2. Payment method:
3. Name: PR payment method auto
4. Effective date: 2 Jan 2011
Automatic tab:
Debit memos inherit receipt numbers.
Receipts inherit transaction numbers.
Number of receipts rule: one per invoice.

Receipt maturity date rule : earliest
Automatic Print Program: Print receipts Program
Payment type:
Lead days:
Merchant ref:
Bank accounts
Click on the bank account button.

Select bank name as PR main bank and select PR current account and all details
gets filled up.
Effective date: 1 Jan 2005
Formatting Program tab:
1. Remittance transmission: Transmit bank remittance Program.
2. Remittance Print: Print bank remittance Program.
3. Factoring transmission: Transmit bank remittance Program.
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4. Factoring Print: Print bank remittance Program.
Create a sequence in general ledger:
Setup > financial > sequence > define.
Name
Applicati
on
Receivab
le
PR sequence
From
Type
1 Jan
2011
Automati
c
Initial
value
1

Setup > financial > sequence > assign.
Application
Receivables
Click
Category
PR payment
method
automatic
Set of
books
(Ledge
r in
R12)
Metho
d
Vision
operat
ion
(USA)
Autom
atic
Seque
nce
St
art
da
te
1
Jan
20
11
PR
seque
nce
save and close.

Switch to receivables.
Customer > standard.
Name: PR customer.
Click find button.
Bank account tab:
Account name
Number
From
PR customer
bank account
Payment account tab:
954212
1 Jan 2011
Payment method
From
PR payment method Automatic
1 Jan 2011
Primary
Primary
Clicks save.
Select address tab and click open button.
Bank account tab:
Account name
Number
From
PR customer bank
account
954212
1 Jan 2011
Primary
Payment account tab:
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Payment method
From
PR payment method Automatic
1 Jan 2011
Primary
Enter a transaction and complete the transaction and copy the transaction to
create more transaction
Create a automatic receipt batch.
Receipt batches: select batch type automatic.
Batch type
Batch date
GL date
Currency
Receipt class
Payment method
Automatic
15 Nov 2011
15 Nov 2011
USD
PR receipt class automatic
PR payment method automatic
Click create button and select customers and click ok and check completion of
report.
Requery with batch number 30112 and Process status is completed creation. Click
approve button and check completion of request.
Requery and click format button and check completion of request.
Requery and click maintain button and we can see the receipt number generated
close the entire window.
Query individual receipts by going into receipts and see the status as cleared.
Bills receivable: standard or factoring:

Bills receivable is a negotiable instruments signed between 2 parties.
The drawer and the Drawee.
The drawer is one who draws the bill and the Drawee is the one who accepts to
draw the bill.
One can use the bills receivable window, to manually create a bills receivable and
assigns transaction to the bill.
1. Set up a transaction type.
2. Set up a transaction source
3. Set up a receipt class
4. Update customer as Drawee
5. Enter a bills receivable transaction
6. Enter the bills receivable details
7. Assign to a transaction
8. Complete, accept the transaction
9. Remit the bills receivable transaction. Select the remittance method
standard or factoring. Create, approve, format the remittance.
10.
Run the bills receivable maturity and risk Program.
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11.
Setup the transaction type: PR bills receivable. Select the class as bills
receivable class: bills receivable. Format Program name: French bills
receivable. Other details are same, click save and close.
12.
Setup a transaction source: PR BR source.
Setup > transaction > Sources.
Name: PR BR source
Type: manual
Active
Automatic transaction numbering: 1999
Click save and close this window.
Setup a receipt class.
Setup > receipts > receipt classes.
Name: PR BR Receipt classes
Creation method: Bills receivable remittance
Remittance method: standard and factoring
Clearance method: by automatic clearing
Payment method:
Name: PR payment method BR
Receipt inherits transaction numbers.
Click bank account button to give the bank details.
Bank name: PR main bank (internal bank a/c)
A/c name: PR current account
Claim investigation : claim investigation
Short term debt: short term debt factoring
Remittance: PR:000-1245-0000-000
Formatting Programs:
Remittance transmission
Factoring transmission
Remittance Print
Print bank remittances PGM
Factoring Print
Update the customer as Drawee:
Query the customer and click find.
Address tab -> open -> business purpose tab.
Select drawee below ship to and save a number is generated.
Enter a bills receivable transaction:
Navigation: bills receivable > transactions
ORACLE FINANCIALS
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It opens bill receivable window

Bill receivable ( vision operation : USD) (New)
Number:100001
Source: PR BR source
Currency: USD
Issue date: 1 Nov 2011
Document number:
Status:
Maturity date:
Type: PR bills receivable
Amount:
GL date:
Complete.
Main
More
Bank account
Notes
Main tab:
Name: PR customer
Number: 4090
Taxpayer ID:
Location:
Address:D2 Glass made
Sannathi road,
Velachery, Chennai, PR city, PR state.
Print option: Print
Last Print date:
Acceptance date:
Remittance date:
Remittance batch:
Signed
Isssed by drawee
Incomplete
Accept
Quick assign
Click assignments
button, the assignment
window opens. Assignments
Assignments (vision operations: USD)-PR customer, 100001
Drawee name: PR customer
Drawee number: 4090
Taxpayer ID: Amount USD: 20000.00
Assigned: 20000.00 Unassigned:0.00
Assigned
Saved
ORACLE FINANCIALS
Transaction Installment
Amount
Due date
Page 125 of 173

number
1141
Customer number
4090
Customer name
PR customer
assigned
20000
1 Nov
2011
Transaction type
PR invoice
Complete
Reciprocal relationship:
Reciprocal account relationship enables parties to apply receipts against each
other transactions and enter invoices against each other commitments.
Prerequisites:
Enable create reciprocal customer. Check box under the region transaction
and customers in system options.
Update the reciprocal relationship at the customer standard level.
Enter a receipt and during application both the customers transaction are
listed.
Update the reciprocal relationship at the customer standard level.
Select the customer and click find button.
Select the relationship tabs from the more tab and relate this particular
customer with other customer.
Name: SS customer
Number: 4086
Type: all.
There are three types: All, Parent & Reciprocal.
Save and close the customer window.
III) a) Enter the receipts and select the payment method, enter receipt number, amount
as 10000 and receipt date 5 Nov 2011.
b) Select the customer and click apply button to select a transaction and select a
transaction because it displays both PR customer and SS customer transaction. Select
any one transaction and save and close the entire window.
10) Collection activity:
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o Receivable let ones to view the customer account information in a variety of
ways.
o Define collector and attach to the customer Profile class. PR collector already
defined and attached.
o Review the customer accounts.
o Query the customer
o View the account details
o Overview the account period
o View the payment and other details by clicking key indicators.
o To view the customer accounts.
Navigation: Collections > customer accounts
It displays the find customer accounts window.
Accounts statements:
Account statements will Provide the customer complete record of the invoices,
debit memos, chargeback, deposit receipt, on account, credits, credit memo and
adjustment activity for a specific period.
Set up the statement cycle

Print the statement by
Attaching the statement cycle to Profile class.
Submit the statement.
Navigation for creating a statement cycle:

Setup > Print > statement cycles.
Give a name for the statement cycle
Description
Select interval as monthly from the list of values ( monthly, quarterly,
weekly)
Then I want to generate my statement cycle.
Name: PR statement cycle monthly
Description: PR statement cycle- monthly
Customer calls:
One can contact the customer through phone for any transaction that is positive. One
can use customer calls window to record the results of ones conversation details by
recording the details of one conversation. One can create a record of contract and can
recommend any further collection actions.
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Select the collector

Select the customer
Enter the contact person details
Record the response of the contact call made.
Follow the action, Promise, forecast of the response.
Alert the management of the outcome of the call if necessary.
For a particular transaction or receipt what is the follow up action taken.
Navigation: Collection > customer calls.

Customer accounts merge: One can use customer account merge to consolidate
any duplicate customer or transfer of site which is no longer active.
After successful merge, all the activities that was Previously associate with old customer
associated with the new customer or site.
I have two customers: PR customer, SS customer
Merge two customer account.- Merge PR customers with SS customer
Finally after merging,
Query the old customer who is merged with the new customer. Find out old
customer or not and any transaction is existing in the old customer.
Navigation for crating customer account merge:
Customers > account merge.
General ledger transfer:
Accounts receivable transfer to general ledger.
The balances in accounts needs to be transferred to general ledger on a daily
periodical basis and before that one has to run reconciliation report. This report helps
one to reconcile ones account receivable activities.
Run the accounts receivable reconciliation report.
Navigation: Control > request > run
Submit a single request radio button and click ok.
Name: AR reconciliation report.
Fixed Assets
Purpose:
1. Record, Retrieve and maintain
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Functional information of assets-Tax law
Budget information of assets-record, retrieve
Physical information of assets
Can be maintained as per the needs and local law of the country and as per
representation of tax, Dep, we can maintain multiple books for source assets.
Can be recorded as per needs and requirements and for control\purpose.
Employment, Dep of asset, reveals facts as to the actual usage of asset by depts.
2. SYSTEM FLOW:
1.
Creation of books
Corp book and budget book, budget book

2. Key flexfield (should be defined):-structure-values
Category flexfields
Location flexfields
Asset key flexfields (values for these three flexfields should be defined)
3. System controls:
Should be created using these structure and for setting up automatic number for
assets.
4. Financial options:
Those are common to purchase, pay, rev
5. Dep methods, Rates and ceilings:
As per corporate book and tax book should be defined
6. Asset category:
Values of flexfields, Dep for each category defined
7. Location:
By combining values location field
8. Asset addition:
Could be created Individual/Mass Allocations
9. Depreciation runs to crystallize the asset addition.
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10. Mass copy in tax books.
11. Capitalization of CIP Assets (Periodically)
12. Transfer/Mass transfer
13. Adjustment/Mass adjustment
14. Reclassification (revising asset category)
15. Revaluation (bring assets to market value)
16. Retirement/Mass retirement
17. Reinstatement/Mass reinstatement
18. Journal Entries creation
3. DEFINITION OF ASSETS
1.
2.
3.
4.
5.
6.
Item owned by the business

Item can be tangible or intangible
Tangible items can be movable /immovable
Normal life is more than 1 year
Unlike inventory it is not meant for resale to customer.
Used for manufacturing process & support the Business activities for
effective operations.
7. Normally it is depreciable over the period of life.
4. TYPES OF ASSET
A) Based on physical attributes:
1) Tangible assets-immovable, movable assets
2) Intangible assets-Goodwill, patent etc
B)
1. Capitalized asset
2. Construction in process (CIP assets)
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3. Expensed assets
5. ASSET BOOKS
1. Corporate Book: Recording financial information and details of Dep for Business
purpose.
2. Tax Book: Record FI and details of Dep for tax purpose
3. Budget Book: To record the budget information of assets of the enterprise.
PRE REQ:
1.
2.
3.
4.
5.
6.
Fiscal years calendar

Department
Prorate calendar
GL SET OF BOOKS (LEDGER IN R12)
Journal source and category
FISCAL YEAR
1. Fiscal year is the yearly calendar for Akg Co,

2. Fiscal year have to be defined from the year earliest to the oldest date placed in
service of asset in the enterprise
3. If the asset Book and asset are to be created only from the current fiscal year, then
define fiscal year from the previous year.
4. The fiscal year calendar for the corporate book and tax Book is the source
8. FA PERIOD IN ORACLE ASSETS
There are only two periods
Open period
close period
Period status is control by the system

Only one period will be open at any point of time
Depreciation run program closes the current period and open the next periods and open
the next periods
9. DEPRICIATION CALENDAR
Dep Cal decides the periodicity of running Dep
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The name of the period in Dep calendar must be same as in the GL Akg calendar.
One common depreciation cal can be used for multiple Dep books
Corp Book depreciation calendar can be different from tax Book Dep calendar
whereas corp. BOOK fiscal year name must be same for tax BOOK
10. Prorate Calendar
1. Prorate calendar decide the periodicity for calculations Dep
2. Prorate calendar is used to determine the prorate date and prorate
period, when to Dep an asset during the first and last yr.
3. Prorate calendar is used for determine the prorate convention
4. Prorate calendar is used mainly for table based method Dep
Prorate calendar selects the Dep rate with respect to the date placed in service for table
based method
KEY FLEXFIELDS IN ASSET
Flexfield is an intelligent key code combination of various business dimensions/business
segments for any transaction
Key flexfields are vital and recurring in nature
Types of flexfields:
1. category flexfield -mandatory
2. location flexfields -Mandatory
3. asset key flexfields -optional
FA CATEGORY FLEXFIELD
Grouping of assets based Dep method and rates
Category flexfield is the field in which we specify the name of the category of assets
Structure of category flexfield
1. Name
2. Segment
A) Main Category
b) Sub category
3. Value sets
Values of category flexfields segments:
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1. Main category values
2. Sub category
FA LOCATION FLEXFIELD
Location Flexfield is a key Flexfield to record the location details of the asset
Structure of location flexfield
i)Name
ii) Segment
iii) Values sets
Values of location flexfield segment
1. Building
2. Area
3. City
4. State
5. Country
FA ASSET KEY FLEXFIELD
Asset key flexfield: used to group assets on the basis of its functionality
Structure of asset key flexfields
i) Name
ii) Segments
iii) Value sets
Value of asset key flexfield segments
1. Asset key
20. FA SYSTEM CONTROL
After defining key flexfields comes the system ctrl setup
Specify the enterprise name
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Specify the date placed in service of the oldest asset in the enterprise
Choose the asset flexfield structure
1. Category flexfield
2. Location flexfield
3. Asset key flexfield
Choose automatic asset numbering system
1. Specify starting asset no
2. Last asset no: used automatically updated by system
22. FA PRORATE CONVENTIONS
Prorate convention are method to the first& last year Dep of asset as per the prorate
period &prorate date
Normal prorate conventions types
1. Current period convention
2. Next period convention
3. Prior period convention
Retirement convention decide the annual Dep
Of the asset for year in which it is returned
Retirement convention types:
1. Can be the same as prorate convention
2. Also facilitates changes in convention from the default rules at time of addition or
@the time of retirement
1. Depreciation methods
Dep: Decrease in the value of assets normally due to wear and tear
Dep Basis
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1. Cost basis> straight level
2. Net book value basis (NBV) WDV
Methods of Dep:
1. calculate method-cost only
2. Flat rate-cost &NBV
3. Production-cost only
4. Table method-cost NBV
5. Formula method-cost NBY
Bonus Dep & ceilings
In some countries additional Dep will be changed knows as bonus Depreciation
Bonus Depreciation
1. One time
2. multiple times
Dep ceilings (for tax books only)
1. Cost ceiling
2. Expense ceiling>exp Depreciation
6. ASSET CATEGORY
Category of asset on the basis of Dep methods and rates
Setup for creating asset category:
1. specify/select a name the ass category by combining
Main category value
Subcategory value
Description
C. category type
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d. Ownership
owned
lease
e. Property type
i. real
ii. Reversal
iii. Others
F. select controls- enable /capitalize /in physical inventory
2. Specify GL BK & A/Cs
3. Specify default Dep rules
Second window specify GL a/c
Choose corporate Book/Tax Book
Specify A/C code combination for:
1. Asset cost
2. Asset clearing
3. Dep exp segment
4. Account Dep
5. Bonus expense
6. Bonus reserve
7. Revaluation reserve
8. Revaluation amortization
9. CIP cost
10. CIP control
Go To default rules-To specify default Dep rules.
Placed in service date effective
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Specify def for the asset cat
1. Dep method/rate/life
2. Bonus rule
3. Prorate rule
4. Retirement convention
5. Salvage value in %
6. Cost /exp ceiling
7.Price index
8. Subcomponent life rule with mini life
9. Straight line method for retirement
10. Dep limit usage %/amt
11. Capital gain threshold yrs limit
8. QUICK CODES
Give quick codes for giving values for:
1. Asset description: land, building, machinery
2. Lease periods: annuity, quarterly
3. Property type: real, personal, tangible, and intangible
4. Retirement types: full, partial, Reinstatement
Setup> asset system> Quick Codes
10. DISTRIBUTION SETS THEORY

Distribution set is useful for single or multiple asset segment of the physical distribution
of asset automatically
To various location/exp employee while adding assets in detail addition mode/mass
addition mode
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the automatic assignment will be as per the predefined % assignment in the
Distribution set
the distribution set in assets module should be a full distribution set
each distribution set must have unique name & will be specify for a particular asset
book
you can have any number of distributions set for any ass category
you can have any number of distributions set as per the dates placed in service
you can have distribution sets based on rate of dates placed in service
12 .TRANSACTION IN ASSET
1. Addition
2. CIP addition
3. Transfer
4. Adjustment
5. CIP adjustments
6. Depreciation
7. Depreciation adjustments
8. Reclassification
9. Revaluation
10.
Retirement
13. ADDITIONS METHOD
First transaction in FA module in addition
Mode of addition of assets
1. Quick addition: To add assets quickly with minimum details& by using default rules as
per asset category in a single screen
2. Detailed additions: To record complete details of assets including source lines, sub
components, leased assets, short year asset &also to over side default Dep rules
Details to be recorded in four screens
1.
2.
3.
4.
asset details screen

source line screen
books
assignment
3) Mass addition: to import mass data from payables or external system to oracle assets
14. ADDITIONAL CAPITALIZED ASSETS
Same as in addition of asset. Here, capitalized asset are taken into consideration
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15. EXPENSES ASSET THEORY
Expensed asset are asset whose values is less than prescribed value ,permitted by tax
authorities for creative it as overvalue expenses or off in a year. Are mainly captured for
physical verification
Asset type: expensed
(The check box capitalized should be unchecked in the relevant asset category)
Quick, detailed, mass:
While reporting from payables the exp line item should be manually tracked as assets
18. Production DATA THEORY

Production data for production based asset
1. Production capacity of the asset & its unit of unit of measure should have been
recorded while recorded while adding a Production based asset
2. Periodical Production details to be uploaded /recorded in the Production window.
Actual Production details can be recorded for a date range within the current period for
dep.
Unit of measures for actual Production should be the same as the unit of measure
entitled for Production capacity in addition workbench.
Overlap in date range is not allowed.
Combined Production details for more than one period are not allowed
20. Depreciation & Roll back Dep (Oracle 11i)

Periodical Dep is calculated by running the depreciate run program
1) Dep is first run for corp. book
a) Without enabling the checkbox close period in run Dep screen
b) By enabling the checkbox close period.
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2) in case depreciation is run without enabling the check box close period, for making
any changes in the asset addition/transaction during the current period, the pre request
to run the program Roll back depreciation for the current period
3) Once Dep is run by enabling the check box close period, the current period is
permanently closed in the asset & the next period is open automatically
4) There are only 2 period statusesopen; close
21. FA DEP RUN PROGRAM
Nav: Dep>run Dep
Give book name
Period-gets (before running ensure are the transaction correct)
RUN-Request
View>field>
Default
Reports run & their purpose
Dep programs which run in box end are:
1. Generate a/c: creating a/c entries
2. Dep run request: Running programs
3. Calculate gain &loss: sale/retirement of assets
4. Dep Run: calculate Dep & same is charged in dep. Books
5. Journal entry reserve ledger report: enables to know how much Dep exp is charged for
acc period
6. Process pending transaction: updating future transaction
Pending in asset book for next period
Query assets to know Dep charged
Book
name
Give
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Query: find >books
View details
WK4: how Dep changedCost of asset-salvage value1/12r of Dep
Production: cost no. of units produced/total cap
Flat NBY with bonus: as salvage excluded not enabled cost-salvage is taken for Dep cal
Bonus on call
To know bonus rule: go to bonus &query
CIP ADITIONS
Construction in process: is construction of assets by purchasing

component/materials required, recurring cost on labor & other charges in building
the assets
CIP assets are recorded through quick addition, detailed addition and moss
addition mode.
Costs to CIP asset are added through the source line in detailed addition & mass
addition
CIP assets are not usable till these are fully built .so we dep express is changed on
CIP assets
2. CIP ADDITIONAL THEORY

CIP is building the asset
ASSET TYPE: CIP
1. QUICK ADDITION: TO add CIP assets quickly with NIL cost by using default rules as per
asset category in a single screen.
Cost addition cannot be added through Quick addition
2. DETAILED ADDITION: To add CIP assets will NIL cost further to add cost to CIP ASSET
through source lines screen
3. MASS ADDITION: To import mass data of CIP assets from payables a external system to
oracle assets
Conversion of CIP assets to capitalized assets
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If want to date of capitalization or add any invoices
Go to cap assetsquery book>asset type-CAP> reverse it>Query the asset in asset
work bench
The asset no: will be reversed to CIPand can add source line.
4. MASS ADDITION PROCESS IN PAYABLES

Mass addition is the process by which many asset are added automatically in oracle
asset using data of assets from external sources
Normally mass addition is done the oracle payables or any other feeds system using the
interfaces
invoices for purchase of fixed asset are normally recorded in payables in invoices
distribution lines, the items of capitalization asset type are recorded with Asset clearing
a/c code combination as change a/c & the items of CIP Cost clearing a/c code
combination as change a/c which are automatically enabled in the distribution window to
be tracked as assets
In case of other charges to purchase of capitalized assets/construction of CIP assets like
freight, tax miscellaneous exp & also for exp asset charges account, these lines records
in the invoice distribution windows are to be normally tracked as assets by enabling the
relevant checkbox.
Validation & create a/cg of the invoice relating to purchase of assets
Run the program payable transfer to GL with journal import parameter
Ensure that the program payable transfer to GL is successfully completed & the invoice
details are transferred to GL interface
next run the program mass addition create which performs transferring invoice details
of assets to which are transferred to assets interface and analyze the report to confirm
that all the relevant line records relating to assets are transferred to assets interface to
asset database
1. Prepare mass additions:
Add as new asset (cap/ cip /exp)
Merge line records & add as new asset
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Add cost to existing asset (capitalized/ cip /exp)
Split line records & add as new assets
Place on hold incomplete line records
Place on review line records for assets transaction pending approval or reg review
2. Post the mass addition by the concurrent program Post Mass addition
3.Delete the mass addition line records which are transferred to asset database or
marked for deletion by running concurrent program delete mass addition
Mass addition Queue status in assets
In prepare mass addition workbench when lines are imported from payables to assets
1) Modules the status will be NEW: when line modules are open and if
2) Details are updated and saved-on hold if field are entered & reg approved from
authorities the status can be changed to
3) On-review
Asset lines are completed- it can be posted to asset database & incorporate in asset
book, the queue status can be manually changed which will be ready for posting?
4) These records can be posted to asset book by running post mass addition program
5) Irrelevant line records not pertaining to assets module can be deleted by selecting
status as delete
6) In case line records are need to cost adjustment to cap. Assets/CIP asset. If these line
records are adjusted to these relevant assets & if selected for posting, status becomes
cost adjust.
7) In invoices source lines are to be merged clubbed into single asset record, then we
can choose merge, when line gets merge with parents line, the line status will be
merged.
8) When invoice is split into several records Eg: furniture can be split into chair & tables
(2 line records)
9) Capitalization
10) Posted
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DELETE MASS ADDITION:
Give Para sub view Req view o/p.
Prepare Mass query your book could not find any invoice
Query book can details of asset in mass addition
7. TRANSACTION TYPES.
Future add / future adj / future capitalize:
Under certain circumstances, running of Dep run program with close period
option may get delayed with the result. Current period/ reuse past period / as per
system date may not be opened in the asset book.
So, Assets transactions for such current/past periods as per system date cannot be
captured in asset book unless and until the relevant period is opened in asset
book.
But to record these transactions as and when they occur, oracle Assets enables
us to record/capture the same in prepare mass addition work bench as the toll
type transactions to be transferred to asset book database in future.
1. Addition as future Add trans type
2. CIP additions as future Add trans type
3. Cost adjustment to capitalized assets & CIP assets as future adjust trans
type
4. Capitalization of CIP assets as future cap trans type
The recorded future type asset transactions for the Asset book are temporarily
stored in the interface & these transactions become effective for the asset book
only when the relevant period is open in asset book.
The process which opens the relevant period of the asset book is the Dep run
program with enabled check box for close period for the previous period which
closes the previous period & opens the relevant period as current period.
Oracle Assets automatically update the transactions in asset database of the
recorded future type transaction Details the concurrent program Process pending
transactions in Dep run.
CAPITALISE CIP ASSET ON FUTURE DATE:
Click capitalize find select one CIP asset done (give trans date)
Enter book name find you can see one lap
Dep Run Give book name Close period
9. LEASED ASSET THEORY
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Lease is a contractual argument but the lessor & lessee with predetermined
payments terms using the asset/s of the lessor by the lessee for the lease
period.
Leased assets are operating leased assets unless they satisfy lap test &
opted for the lap by the lessee
Leased assets can be lap if any one of the following ----------------1. Transfer of ownership
2. Bargain per option
3. If the lease period equals and exceeds 75% of ECO life of the leased
asset
4. If the present value of the lease payments equals/exceeds 90% of fair
unit value.
10. LEASED ASSET PAYMENT SCHEDULE
Oracle calculates present value using the pay schedule for a pre-determined pay
amount for a period of time including interest , if any
View amortization will show the total income lease as the difference but the
present value & total lease rental payments
Request to define payment schedule:
1) Name of the payment schedule
2) Lease date
3) Interest date
4) Compounding frequency of cal of interest monthly/q-ly/semi-annually/annually
5) Start date of payment
6) Rental Payment amount
7) No. of installments
8) Payment type: Annually /Balloon Payment / Bargain per option / Bargain renewal
option /Guaranteed Residual Values / Penalties
11. Foreign EXPORT LEASE PAYMENTS TO PAYABLES

Lease payments are exported to payables automatically through payables
interfaces
Queries the base payments from the menu. Lease Payment to payables for exp.
All the lease payments status will be new initially. Select lease payment to be
exported for changing the status to post, save it &export the lease payments
Export lease payments to payables program is run automatically after export
(clicking)
Run the program Payable Open Interface import in Oracle payables. Only then the
lease payments details are imported from the payable interface to payable
database as Invoice as lease rental payments
In payables, Query the invoice work bench the invoice number as appeared in the
interface import report for the lease payment. Validate app,create aleg & eff
payment of the invoice on time
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13. DEP / ROLL BACK DEP
Periodical Dep is cal by running the Dep run programs.
Dep is first run for corp. book w/o enabling check box
1. W
from last ----Enabling the check box closed period
14. ROLL BACK DEP LAB
Dep Run Dep Run for Jan 12 to calculate depreciation
Process pending will not be running since the period is not closed
View Request find clo
Dep changed
Roll back dep to bring it to original .su
Give asset in asset work bench finance >
Dep for Jan will not be found.
15. DEP FOR FUTURE ASSET
Close & run dep
Dep run Dep close period Request find >
Query asset book give book name select asset
What if Analysis
What if analysis is a tool to analyze the effect of use/changes in dep method/Rates /

Salvage value/ Bonus rate / prorate convention for a prescribed no of periods from the
current period to future period with respect to
1) Existing assets
a) Under one asset category
b) Placed in service in a Date range
c) Asset number range
(Including fully reserved assets)
2) Hypothetical assets
Under one asset category with proposed date place in service ,estimated cost for
purchase as new & in case of proposed purchase of used asset , additional
information of estimated Accumulated dep , if any
3) Insurance
asset insurance window captures information such as policy number , insurance co,
calculation method, Base insurance value ,Insured amt, ins under & current values,
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Insurance coverage category (Acc, fire,theft,third party), Hazard class ( valuable,
fragile, Explosive, Portable)
INSURANCE:
Three types of cal. method are provided in Oracle Assets
1) Value as new: This method cal current value on cost bases{re cost price index
factor for the rate period}
2) Market value: This method calculates current value on NBV (i.e. NBV price
index factor for the relevant period / price factor for the previous period)
3) Manual value: There is no actual cal, we enter the current value manually
Run the program insurance calculation routine for current value

Insurance can be queried & also the ins com details can be updated the maintain
window
WARRANTY THEORY
Warranty is a service contract given by the manufacturer to vendor for any asset
purchase
In Oracle assets warranty info details the warranty number ,Desc, start date vs.
End date,cost,supplier name and no, ee assignment for warranty
Predefined warranty can be assigned to any asset
Warranty once assigned to any asset cannot be updated / deleted
Same warranty can be assigned to any no. of assets
Using the warranty num, we can query the assets
8. SCHEDULE MAINTENANCE EVENT THEORY
Schedule maintenance events capture the information on events of Repair &

service of assets
Details of time schedule of periodical/half yearly/Annual service maintenance can
be planned and recorded
The maintenance event is used for corp book
Maintenance schedule can be rec. by selecting details
Time schedule
Corp book
Asset number range
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Date placed in service range
Asset location
Assembly
Events name and Desc
Frequency in dates/days of maintenance
Maintenance cost
Supplier name & no, Contact name & no
Run the asset maintenance scheduling program
9. VIEW /PURGE MAINTENANCE DETAIL

To view maintenance details of assets ,select the asset no: /Des / asset category
/tag no: /serial no: / Asset key Query mode
Initially the maintenance status is Due
As & when the supplier completes the maintenance events, the status column
need to be updated as completed
Purging of main details can be done for old data as per req
The selection criteria for purge: 1. Book 2. Asset no: range 3. Maintenance date
range 4.Asset category 5. Status of maintenance
11. TAX BOOK THEORY

Tax book is maintained for changing dep on assets as per tax rules of the country &
PO claim tax relief on Business income. Tax book is the deferred income tax
liability by comparing with corp. book
More than one tax book can be maintained and copy the details of assets other
than dep details from the corp. book
The transactions of all assets in corp. book is copied to tax book
1. Initial mass copy
2. Periodic mass copy
Tax books are created in book control by selecting the classified as tax which
shows the tax rules to be adopted
12. TAX BOOKS LAB

Su Asset sys save new
KR Tax book - class book
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Ass: PN corp. book
Dep same as corp. or new have same current period (LOV) Dec07
Dep if retires in first year
ALCG RULES:
Natural Account: Shift F5 auto copied from corp.
The tax rule region / tab Transactions to be copied from corp. book to tax book
1.
2.
3.
4.
5.
6.
Allow
Allow
Allow
Allow
Allow
Allow
res adjustment
inv tax
CIP assets
cost ceilings
exp ceilings
mass copy
Additions
Adj
Returns
Salvage value
Group ass addition
Member asset assignment
Journal categories:
Journal: Assets & other details
Tax rules:
1.
2.
3.
4.
5.
6.
All
All
All
All
All
All
res adjustment if (YES) allow s to acc dep in tax book

inv taxes (NO)
CIP assets want to add as per corp book but (NO)
cost online: (YES) Dep on lost
Exp : (YES) Dep Exp
Mass copy: (YES) copy add, adj, return book, corp book
Sal Value want copy

Group Rules:
Gr ass addtn : want copied
Save close
13. TAX BOOK INITIAL MASS COPY THEORY
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Initial mass copy is the process by which all the information of existing assets
are copied from corp book to tax book excepting dep details. For the copied
assets in the tax book, the dep rules are default from relevant asset category of
tax book
To copy all the existing assets of corp book to tax book run the program Initial
Mass Copy. First time copying is done the initiate mass program
Initial mass copy program can be run more than once to copy all the existing
assets & this will not duplicate any trans
Corp book period is to be closed before running initial mass copy for the
relevant period up to which assets are to be copied
Assets retired before the end of that fiscal year & asset addition after the end of
the year are not copied in Initial mass copy
14. TAX BOOK PERIODIC MASS COPY THEORY

Periodic mass copy is the process of updating tax book for each period.
Subsequent to Initial mass copy as per the corp book
Periodic mass copy program copies all the transactions for each period subsequent
to Initial mass copy to tax book from corp book
Periodic mass copy is done only after closing the current period of corp book & by
bringing the current period as open in tax book
Periodic mass copy program copies the following info to tax book from the corp
book during current period as per tax rules in the tax book
1. Addition
2. Adj
3. Retirement
4. Reinstatement
15. TAX BOOK INITIAL PERIODIC LAB
After def tax book
Create Exp ceiling & cost ceiling
Su dep ceilings
Enable cost to enter cost ceiling
Ceiling : PN Cost ceiling
Des :
Currency : USD
Dates placed in service
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From date
01/jan/2005
2006
To date
31/dec/2005
2006
Ceiling
4,00,000
4.50%
If an asset cost is 5l it
will dep on 4l not ou sl
Save
Click exp : down ous
Ceiling
D.S
Currency
From date
01/12/05
01/01/06
To date
31/12/05
31/01/06
Year of life
1
2
1
Ceiling
3,000
3,000
Save & close

Asset category -- to define tax
Su Ass sys Ass category
query F11
Go & GL & press down arrow

Book : TB
Asset cost : -5321-
tools
-1570Default rules:
Give dep method NBV
PR KRPDC
2) Goodwill: Flat NBV 15/15 PRORATE NPC

3) L & B Building NBV 10%/12% ppc
Ceiling will be fixed only when govt imposes dep on particular asset
4) Land
5) Computer NBV- 20
6) Copies Flat NBV
7) Machine flat WBI SPC
8) Flat NBV
9) Las Flat NBV-ceiling cost
10) Trucks flat NBV SPC exp ceiling
Close
Initial mass copy: (from corp book to tax book)
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Tax initial mass copy enter book name submit
View find close
Inquiry find inj assets select book
Can view both books
Tax book dep should be run as it will not be copied from corp book
Dep run dep give tax book close run
Inq find infbk corp name find ceiling
Check dep cost 22/100 1/12
Truck 3000/12 = 250..
PERIODIC MASS COPY:
Tax periodic mass copy tax book jan 2008 ok
Ok sub req
Check corp book to know whether assets are copied
16. CAPITAL BUD THEORY
Capital Budget is an estimate of cap exp for pur or cons of asset in future
Cap Bud can be entered manually or by uploading from other sys the budget
interface
In Oracle assets, we capture annual cap budgets for bud book
1. Asset category wire
2. Dep Exp A/C wire
3. Periodic limits
17. BUDGET REPORT THEORY

Cap Budgets are used to gen the for repo
1.
2.
3.
4.
Estimate of Cap exp

Periodical comparison of cap bud vs. actual
Cap spending report
Projected dep Exp based on cap budget
These reports serve as tools to ctcl the cap exp & also guide cach flow & fund flow
planning
18. BUDGET BOOK
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Su Ass sys book control
Query corp book save down arrow budget book
Class budget
Give des
Associate corp book KR corp book
Give details
No in Accounting rule
Natural account shift F5
Our category
Save & close
Bud uploadto create Budget book
Give book name
Enable create Bud book save
Enter budget enter amount
Book :
Categ: Mach
Expact 120-7330
Enter amount :1l , 4l, 5l
Save & close
Asset wk bench & query Bud book can view for every uth finan eq
Run reports: Other Run req Budget rep Sub view o/p
Sub new req Bud to act Rep give book name, Dec -07. Ok view o/p
cl-cl
bud upload another bud delete existing & upload new
19. DEP PROJECTIONS
Dep projections program is used to calculate projected dep of existing asset for
current / future periods
It is used as a tool to adopt correct Dep method &rates
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It is mainly used for generating rep details for cost center & assets
It can be submitted for four books at a time
The pre req is projection calendar (Dep calendar)
20. DEP PROJECTION LAB

Cannot be a PDF based method asset
Dep projections
Proj : KR calendar
No period
Starting period: jan 01
Book: give book name attach Tax/exp
Run
View/ Req
TRANSFER AND MASS TRANSFER
Transfer of asset is a change in the assignment of asset in any one or more of the
foll details
Employee assign
Dep Exp assign
Location Exp
This is financial impact on transfer of assets in the case of change in Dep Exp
assignment
Transfer of assets can be for individual asset or more than one asset
Transfer of multiple assets is done the mass transfer by preview & final run
The selection criteria for mass transfer
1) Single Dep exp act & range of A/C
2) One location to another location
3) One employee to another employee
3. CHANGES THEORY
Changes mean adj in cost of an asset or Dep of an single asset (Fin & Dep inf)
In book ctrl enable allowances changes in a/c rules
Changes for an individual asset involves any of following adjustments:
1. Cost addition to capitalized asset
2. Change in current cost of capitalized asset
3. CIP cost addition
4. Salvage value
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5. Dep methods/rates
6. Bonus rule
7. Date placed in service
8. Prorate convention
9. Ceiling in case
10. Unplanned Dep
5. MASS CHANGES
Mass changes means update in Dep inf for multiple assets

In book ctrl enable allow mass changes in accounting rules
Mass changes in Dep for cap assets can be done by selecting the following criteria
1. Asset no. range
2. Dates placed in service range
3. Asset category
4. Asset type
5. Fully reversed asset
Mass changes can be made to any of the following existing values to a
corresponding new values ( mandatory both values ) for the above selection
criteria assets ( by pur view, Run & review )
Prorate convention
Dep methods, rates / life in years & months
Bonus rule & group assets ( stand alone/min)
5. MASS CHANGE LAB

ASS Ass wk bench query book find select one asset books . Give book
name give current cost cost defaulted. Things in mandatory field can be changed
to amt & amt can be changed Dep method can be dwith diff/same date
Date placed in service can also be changed. Bonus rule can also be changed done.
Requery the same asset financial inq changes can be viewed
MASS CHANGE
Mass tan changes choose book status new can be done amortization
changespreview id view
Requerypart no
Status previewed run
3 req are run
Mass Review report
ORACLE FINANCIALS
Page 155 of 173

Mass program report
6. REVALUATION THEORY
Revaluation is a process to adjust the book value of the asset as per the inflation or
deflation rates in order to bring it to mkt value
Revaluation is done for
1. Prior period asset which are not fully retired
2. Assets added in current open period
3. Pending retirement assets
Revaluation is not automatically copied to tax books rev of asset has to be
performed separately in each tax book which is associated to the corp book
Rev is done by specifying the default rev rules in the book ctrl which has over
option in mass rev work bench
1. rev fully reversed assets
2. Maximum fully res revaluation
3. Life extension factor
4. Life extension ceiling
5. Revaluation ceiling
Rev is done either by selecting the asset category on asset no with the percentage
of inc/decrease
REVALUATION BOOK CONTROLS
MAIN PRE REQ IN BOOK CTRLS TO DO REV OF ASSETS

Allow rev check box enabled
Optionally check boxes against the following can be selected in book controls as
per co requirements
Revalue Accumulated dep or not
Revalue YTD Dep or not
Retire Rev res
Amortize Rev reserve
Further, optionally choose the following default rev rules also in book controls
which u can override in mass rev work bench
Rev fully res assets
Maximum fully reserved Rev
Life extension factor
Life extension ceiling
Revaluation ceiling
8. RETIREMENT IND ASSET THEORY

Retirement of an individual asset is done in asset work bench by selecting
ORACLE FINANCIALS
Page 156 of 173

1. Asset
2. Click ret button & go to ret screen
3. Select book: corp./tax book
4. Retirement date
5. Units & cost retired
6. Retirement type
7. Ret convention
8. Proceeds of sales
9. Cost of removal
10. Check invoice no:
11. Sold to
12. Trade in asset & des
13. Group asset(red rate res retired, prior year ,res retired; choose as to rec
gain min or not)
14. Select sub components retired with parent assets
9. RET INDIVIDUAL LAB

When asset is lost, damaged or sold
INDIVIDUAL RETIREMENT: Ass Ass work bench select asset retirements give lost
Ret type: sale
Done & save
Dep run cal gain & loss to calculate gain from sale
Inq find inq to view details of ret asset select retired books lost history
trans full ret details status processed
Cal of P or L:
Proceeds of sale: xxx
Less cost
: xxx
Net proceeds:
Less current cost:
Add acc Dep
MASS RET: Query book in ass work bench find select ass which has been retired
already tools view a/c
10. RETIREMENT RUN STATEMENT THEORY
ORACLE FINANCIALS
Page 157 of 173

An asset is to be said as retired in books whenever sold, damaged/discarded
Retirement can be full or partial
Retirement of assets can be for individual asset or mass assets
Assets added during the current period cannot be retired in the current period
To cal gain or loss on retirement, run cal gains/losses
Rectification of wrong ass can be done by reinstatement in the asset work bench
or in mass ret window
Reinstatement can be done within that fiscal year only
After reinstatement ,again the program cal gains & losses is to run to reserve the
original ret transaction
11. RUNST IND LAB
Ass ass work bench set any set
Query no which was set retirement undo retirement
Del retirement transaction
Dep cal gain/loss sub
Ass work bench query Retirement Query ass processed ref no: reins
Gain run cal gain/loss
Inq find query book
IMPORTANT TERMS
1.
2.
3.
4.
5.
6.
Debit : Benefit receiving aspect of a transaction

Credit : Benefit giving aspect of a transaction
Cash basis:
Mercantile/Accrual:
Asset : anything of value owned by a business
Fictitious asset: shown along with other assets but actually representing
unadjusted losses
7. : statement prepared by a seller of goods to be sent to the buyer, showing net
amount payable
8. Voucher: written record & evidence of transaction
Factoring: Parties factor (financial intermediary ) client

Is an argument where the receivables out of sales of gls are sold to factor thereby
transferring the title of goods & ser to the factor & the right to rev amount receivables
ORACLE FINANCIALS
Page 158 of 173

Types Recourse & without recourse
If the buyer fails to pay the client will pay to the factor
For f: is financing of receivables pertaining to international trade. Always without
recourse
Clean bills: these bills are not accompanied by any documents that show that the
trade has taken place. High interest
12. MASS RETIREMENT

Retirement of a mass assets by a single process is known as MASS RETIREMENT
Selection criteria of name ret:
1. Book : corp. book/ tax book
2. Ret date
3. Ret type
4. Units
5. Total proceeds of rate
6. Total cost of remaining
7. Option to ret sub components
8. Project no & task no : relating to CIP assets
9. Ret criteria
Retirement criteria:
1. Asset type : cap/CIP/expensed
2. Option to retire fully res assets
3. Exp accounts range
4. Location
5. Employee name/no
6. Asset category
7. Asset key
8. Cost range
9. Asset no : range
10. Dates in service range
Additional criteria:
1. Tag number
2. Serial number
3. Manufacturer
4. Model
5. Group asset association
6. Group asset
ORACLE FINANCIALS
Page 159 of 173

13. MASS RETIREMENT TRANSACTION PROCESS
1. Create or prepare for mass retirement with complete retirement data
2. Retire & review if the enter transaction is to be through
3. Discard the process if correction is to be done. The recorded Mass Ret
Agreement fails or alternate better offer to be recorded
4. Instead of discarding enter mass retirement transactions, corrections if
any, can be made the
Prepare mass retirement work bench
Post mass retirement program
5. Run cal gains/losses program
6. Rec of wrong mass ret trans can be done by querying the rel mass
transaction no & clicking retirement button & run again cal gain/loss
program
15. RECLASSIFICATION THEORY

The assets are reclassified from the existing category to new asset category th
mass reclassification which updates if , correct any errors or consolidate categories
To do mass reclassification enable check box Allow mass changes in the
accounting rules region of the book control window
Reclassification to the same category will have no effect
By default reclassification of asset without changes in Dep rules of the old category
of the asset can be done
Reclassification of asset to new category by inheriting the Dep rules of new
category can also be done by enabling the req check box. Any resulting Dep adj
can be either exp off in current period or amortized
For reclassification of any asset for which previously amortized adj was done ,the
check box amortized adj need to be enabled else Reclassification will fail
Assets are reclassified according to:
1. Asset type: Capitalized/CIP/Exp/Group
2. Dep exp a/c
3. Location
4. ee name
5. Asset category
6. Asset key
7. Cost range
8. Asset no: range
9. Dates in service range
10. Fully res assets
On reclassification, Des flex field info for the assets entered in the old category will
get copied only if enable the check box for Copy category Des flex field to new
category subject to one change in the main category of the asset cat segment
Run the programs for preview, Final run & review
ORACLE FINANCIALS
Page 160 of 173
17. UNPLANNED DEPRICIATION THEORY
1. A special Dep expenses mainly used in Netherland & Germany

2. Unplanned Dep for an asset can be entered in the asset work bench in book screen
by selecting the button unplanned Dep
3. Initially unplanned Dep will always be positive & subsequent unplanned Dep for
the same asset can be positive/ -ve as per the req of the Dep adjustments
4. Unplanned Dep can be entered for the corp. book and/or for the tax book
5. Unplanned Dep can be entered for current period only
6. Unplanned Dep can be amortized from the period for assets for which amortize adj
check box is enabled
7. Unplanned Dep feature is not available for assets using table based Dep methods
8. Unplanned Dep exp must not exceed current N/B value
18. LAB UNPLANNED DEP

Query asset book in asset work bench select an asset books enter a book name
fin info will be def unplanned Dep should not exceed NBY
Excess Dep can be amortized
Click unplanned
Type: Storm dam
Amount: 25,000
Exp A/C:
Amortize
Go to final query: additional dep will be changed
19. PHYSICAL INVOICE THEORY

1. Physical invoice is periodic reconciliation of phy inv data of assets with oracle
assets
2. Physical inv can be recorded manually or by automatically using barcode scanner
in to a file
3. The collection of data are reconciled, if there are any discrepancies
4. The physical inv data should contain at least the following info
1. Asset no
2. Location
3. No of units
ORACLE FINANCIALS
Page 161 of 173

5. For comparison, run the physical inv comparison program & the res can be viewed
in the phy inv window or by running the phy inv comparison rep
6. The discrepancies, if any are updates manually for the respective assets in the
asset work bench by the co or in the phy inv report by the auditors till such time in
both reports the status is reconciled
20. PHYSICAL INVOICE LAB

Phy inv enter
Give name:
Open
Give asset no: Give locations, units
Save & close
Run comparison
Compare run comparison Id
View inventory no find statusreconciled
Enter Give book
21. JOURNAL ENTRY ASSET

1. Assets transactions from asset module are to be transferred to GL
2. Use the navigation : JE standard & run the concurrent program create
journal entries with parameters :Asset book & period
Prereq to run the above programs
1. Run Dep programs
Without closing period
Closing period
2. create journal entries program can be run any no. of times for the same period
with closing the period for monitoring & drilldown operations by GL control
3. Rollback JE is to be done in case of run option
Then only rerun of the journal entries program can be done after running
Dep program by enabling closing period
22. JOURNAL ENTRIES LAB

ORACLE FINANCIALS
Page 162 of 173

Dep STDbook give period & e20
Run
Go to GL Enter Ba%DS% find
Review journal check funds Res fund Id
Requery
Inq avg
Give a/c period:
1520 show journal details
24. DEFERRED DEP JOURNAL ENTRIES

Def Dep is the diff b/w corp. book Dep & tax book dep. It is useful to cal. Projected
future IT liability. Run the program Create def Dep JE with parameters tax book, tax
period & associated corp. period for deferred Dep exp journal.
Multiple times running of the program for the same period is not possible. Roll back
of Dep J.E.
Setup Ass sys Book control
Query tax book enable allow GL posting
J.E DF
Tax book: PN tax books tax period: dec07
Corp period
Submit
Switch to GL: J.E Batch: %BH% Tax% find
Review journal check funds Res funds post Requery
---------------------------------------------------------------------------------------------------ACCOUNTING ENTRIES
1.
S.NO
BACK TO BACK
PARTICULARS
ORACLE FINANCIALS
DR
CR
SPL NOTES
ACCOUNT IS PULLED
SPECIFIC
OPTION AVAILABLE
Page 163 of 173

I
Back to Back
Sales Order Entry

No Accounting
Creation of Requisition
No Accounting
Creation of Purchase Order

No Accounting
Receipt
Receiving A/c
100
AP Accrual A/c
5
100
At PO Price
Receiving Option
Setup
ORG
At PO Price
Inventory Org Setup
ORG
Delivery
Raw Material Sub Inventory
A/c
80
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
Pur.. Price Variance A/c
20
Diff between PO Standard
Inventory Org Setup
ORG
At PO Price
Receiving Option
Setup
ORG
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
Org Level A/c willl

get defaulted
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
Org Level A/c willl

get defaulted
Receiving A/c
6
Reservation
No Accounting
Picking
100
Staging Sub Inventory A/c
80
Sub Inventory A/c

8
80
Org Level A/c willl

get defaulted
Shipping
COGS
80
80
At Standard Cost
Item
At Standard Cost
Sub-inventory
Material A/c Setup
Org Level A/c willl

get defaulted,
OMTT
SUB-INV
Org Level A/c willl

get defaulted
2. DROP SHIP
PARTICULARS
I
Drop Ship
Sales Order Entry
D
R
C
R
SPL NOTES
ACCOUNT IS
PULLED
SPECIFIC
OPTION
AVAILABLE
No Accounting
ORACLE FINANCIALS
Page 164 of 173

2
No Accounting
Creation of Purchase
Order
No Accounting
Receipt
Receiving A/c
10
0
10
0
AP Accrual A/c
5
Receiving Option
Setup
ORG
At PO Price
Inventory Org Setup
ORG
Delivery
Raw Material Sub
Inventory A/c
80
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
PPV A/c
20
Diff between PO Stnd
Inventory Org Setup
ORG
At PO Price
Receiving Option
Setup
ORG
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
Org Level A/c willl

get defaulted
At Standard Cost
Sub-inventory
Material A/c Setup
SUB-INV
Org Level A/c willl

get defaulted
At Standard Cost
Item
At Standard Cost
Sub-inventory
Material A/c Setup
10
0
Receiving A/c
6
At PO Price
Org Level A/c willl

get defaulted
Reservation
No Accounting
Picking
Staging Sub Inventory
A/c
80
Sub Inventory A/c

8
80
Shipping
COGS
80
Staging Sub Inventory

A/c
80
Org Level A/c willl

get defaulted, OMTT
SUB-INV
Org Level A/c willl

get defaulted
3. SO-WORKORDER FLOW
PARTICULARS
1 At the time of material issue
WIP Material A/c
Subinventory material A/c
DR
CR
100
100
SPL NOTES
ACCOUNT IS PULLED
SPECIFIC
OPTION
AVAILABLE
WIP Class
Org/Subinventory
2 Resource Valuation
ORACLE FINANCIALS
Page 165 of 173

WIP Resource valuation A/c
Resource Absorption A/c
100
WIP Class
Resource Definition Form
100
3 Overhead Cost (Material)

WIP Material overhead A/c
10
Sub inventory material

overhead A/c
4 Overhead Cost (Indirect)
WIP Overhead A/c
Overhead absorption A/c
WIP Class
10
Org/Subinventory
100
WIP Class
Overheads Definition Form
100
5 WIP Job Completion

Staging/Completion Subinventory A/c
WIP Material A/c
WIP Resource valuation A/c
WIP Material overhead A/c
WIP Overhead A/c
Std Cost
Diff bet. Actual STD

WIP Material Variance A/c

WIP Resource Variance
A/c
WIP Overhead Variance A/c
Org/Subinventory
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
5 Picking
100
Sub Inventory A/c
100
At Standard Cost
Sub-inventory Material A/c

Setup
SUB-INV
Org Level A/c

willl get defaulted
At Standard Cost

Setup
SUB-INV
Org Level A/c will

get defaulted
6 Shipping
COGS
100
100
Org Level A/c

willl get
defaulted, OMTT
At Standard Cost
Item
At Standard Cost

Setup
SUB-INV
Org Level A/c

willl get defaulted
4. INTER ORG/INTERNAL SALES ORDERS
SR.NO
1
PARTICULARS
DR
CR
SPL
NOTES
ACCOUNT IS PULLED
FOB Point is set to Receipt without Charges &

Freight - Using Transaction Type - In transit
Entry at the time of ISSUE
ORACLE FINANCIALS
SPECIFI
Page 166 of 173

Intransit Inventory A/c ( Sending Org )
100
Sub Inventory A/c ( Sending Org )
100
At Std
Cost
At Std
Cost
Shipping Network
Setup
ORG
Shipping Network
ORG
Shipping Network
Setup
ORG
Shipping Network
ORG
Shipping Network
Setup
ORG
Shipping Network
ORG
Shipping Network
Shipping Network
At Transaction Level
Shipping Network
Shipping Network
Setup
Shipping Network
Shipping Network
ORG
ORG
Shipping Network
Setup
Shipping Network
Shipping Network
ORG
ORG
Entry at the time of RECEIPT

InterOrganization Receivable( Sending Org )
Sub Inventory A/c ( Receiving Org )
100
At Std
Cost
At Std
Cost
100
At Std
Cost
At Std
Cost
100
100
InterOrganization Payable ( Receiving Org )
100
At Std
Cost
At Std
Cost
At Std
Cost
At Std
Cost
100
ORG
FOB Point is set to Receipt with Charges &

Freight - Using Transaction Type - Intransit
100
ORG

Freight Expense A/c ( Sending Org )
InterOrg. Transfer Credit ( Sending Org )
Subinventory A/C (Receiving Org)
Purchase Price Variance(Receiving Org)
InterOrganization Payable (Receiving Org)
100
15
15
10
10
At Std
Cost
100
25
125
ORG
ORG
FOB Point is set to Shipment without Charges

& Freight - Using Transaction Type - Intransit
InterOrganization Receivable (Sending Org)
100

Intransit Inventory A/c (Receiving Org)
Inter - Organization Payable (Receiving Org)
100
100
At Std
Cost
At Std
Cost
100
ORG
ORG
ORG

Sub Inventory A/c (Receiving Org)
Intransit Inventory A/c (Receiving Org)
ORACLE FINANCIALS
100
100
At Std
Cost
At Std
Cost
Sub-Inventory Material A/c

Setup
ORG
Shipping Network
ORG
Page 167 of 173
Direct InterOrganization Transfer without FOB

being Receipt and without transfer credit and
freight
100
Sun Inventory A/c (Sending Org)
100
100
100
At Std
Cost
At Std
Cost
At Std
Cost
At Std
Cost
Shipping Network
Setup
Setup
ORG
Shipping Network
ORG
Shipping Network
Setup
Shipping Network
At transaction level
ORG
ORG
ORG
Direct InterOrganization Transfer with FOB

being Receipt with transfer credit and freight
Entry at the SOURCE
120
Sub Inventory A/c (Sending Org)

InterOrg. Transfer Credit ( Sending Org )
Freight Expense A/c ( Sending Org )
100
10
10
At Std
Cost
ORG
ORG
ORG
Entry at the DESTINATION

Purchase Price Variance (Receiving Org)
At Std
Cost
100
20
120

Setup
Shipping Network
Shipping Network
ORG
ORG
ORG
If the Standard Cost is different in Sending &

Receiving Org
Intransit Inventory A/c (Sending Org)
100
100
At Std
Cost
At Std
Cost
Shipping Network
Setup
ORG
ORG

Purchase Price Variance (Receiving Org)
At Std
Cost
120
100
20

Setup
Shipping Network
Shipping Network
5. PROCURE TO PAY
PARTICULARS
No Accounting
DR
CR
SPL NOTES
ACCOUNT IS PULLED
SPECIFIC
Creation of Purchase Order

No Accounting
ORACLE FINANCIALS
ORG
Page 168 of 173

3
Receipt
Receiving A/c
AP Accrual A/c
Delivery
Raw Material Sub Inventory
A/c
PPV A/c
Receiving A/c
Invoice matching with PO
AP Accrual Liability A/c
Invoice Price Variance A/c
AP Liability A/c
On making Payment
Liability A/c
Cash
100
At PO Price
At PO Price
Receiving Option Setup

Inventory Org Setup
ORG
ORG
100
At Standard Cost
Diff between PO - Stnd
At PO Price
(Org Level A/c will get defaulted)

Setup
Inventory Org Setup
SUB-INV
ORG
ORG
ORG
Inventory Org Setup

Financial Options/Supplier Site
ORG
110
At PO Price
Diff between Invoice PO
AT INV Price
110
At Invoice Price
At Invoice Price
Financial Options/Supplier Site

Bank A/c Setup
100
80
20
100
10
110
6. Order To Cash Cycle
PARTICULARS
Sales order entry
No Accounting
Sales Order Pick
D
R
SPL NOTES
ACCOUNT IS PULLED
100
At Standard Cost
At Standard
Cost(Staging)

Setup
Setup
100
It can be fetched
from five places
From Sub Inventory A/c

To Sub Inventory A/c
3
100
OPTION AVAILABLE
ORG
ORG
Sales Order Issue
COGS
To Sub Inventory A/c
4
C
R
100
At Standard Cost
Master Item/Org/Order
Type/Line Type/Shipping
Parameters
Setup
Master org/shipping
parameters/order
type/Inv org
Transaction type
sales rep/customer site
Transaction level
Receivable A/c
120
Tax A/c
10
Tax codes
Transaction type/sales
reps/customer bill to
site/Standard lines
Freight A/c
10
Transaction type
sales rep/customer bill

to site/standard lines
100
Transaction type
sales rep/customer bill

to site/standard lines
Revenue A/c
ORACLE FINANCIALS
Page 169 of 173

Receipts
Receipts with no remittance

method
Cash
Unapplied A/c
100
Unapplied A/c
Receivables A/c
100
Cash A/c
100
After application of
the receipt to the
transaction
100
Unidentified A/c
Unidentified A/c
Unapplied A/c
Before application of
the receipt
100
100
In case of receipt
without customer or
transaction
when customer
indentified
100
100
Receipt class
Receipt class
Bank Definition Form

Receipt class
Receipt class

Receipt class
Receipt class
Receipt class
Receipt class

Receipt class
Receipt class

Receipt class
Receipt class

Receipt class
Receipt class

Receipts with remittance

method.
Confirmed receipts A/c

Unapplied A/c
100
Remitted receipts A/c

Confirmed receipts A/c
100
Cash
Remitted receipts A/c
100
At the time receipt

entry
100
On remittance to
bank
100
On clearance of
cheque
100
Receipts with discount/unearned

discounts
Cash
Discount earned A/c
Receivable A/c
90
10
Cash
Discount unearned A/c
Receivables A/c
90
10
ORACLE FINANCIALS
At the time earned

discounts
100
At the time of
unearned discount
100
Bank
Receivable activity
Transaction Type
Bank
Receivable activity
Transaction type
Page 170 of 173

7. Adjustments in AR
D
R
PARTICULARS
Adjustments
Adjustment A/c
Receivable A/c
SPL
NOTES
CR
100
ACCOUNT IS PULLED
SPECIFIC
Receivable activity
Transaction type
100
OPTION AVAILABLE
Sales Rep/Customer Site
8. STANDARD COST UPDATE
D
R
PARTICULARS
Inventory Std cost update
10
0
Sub Inventory A/c

Cost Adjustment A/c
ACCOUNT IS PULLED
SPECIFI
C
Sub-inventory Material A/c Setup

At the Standard Cost update request
level
ORG
10
0
Shipping Network
At the Standard Cost update request
level
ORG
10
0
Intransit material Std Cost

Update
10
0
Intransit Inventory A/c

Cost Adjustment A/c
3
C
R
WIP Material Std Cost Update

10
0
WIP Material A/c
WIP Accounting Class

10
0
WIP Accounting Class
9. Miscellaneous Receipts in AR
PARTICULARS
1
D
R
C
R
SPL NOTES
ACCOUNT IS PULLED
SPECIFIC
OPTION
AVAILABLE
Miscellaneous Receipt
at receivables
Accounting
Cash
Misc Cash A/c
ORACLE FINANCIALS
10
0
Entered Receipt
Amount
100
Bank Account
Definition
Receivable activity
Bank(Internal)
Distribution set
Page 171 of 173
Miscellaneous
Issue/Receipt At
Inventory
Issue
10
0
Misc Issue A/c

Sub Inventory A/c
100
At Misc Issue form

level
Org/Subinventory level
100
Org/Subinventory level
At Misc receipt form
level
ORG
Receipt
10
0
Sub Inventory A/c

Misc Receipt A/c
ORG
10. MISC PAYMENTS
PARTICULARS
DR
On entering a
Misc.Invoice
Charge A/c
ACCOUNT IS PULLED
OPTION
AVAILABLE
100
From the supplier site
100
From the Supplier site

From the Bank A/c's
Definition
100
From the supplier site

From the Bank A/c's
Definition
100
From the Bank A/c's

Definition
From the Bank A/c's
Definition
Financial
Options
On making the Payment
Liability A/c
100
Cash
SPL NOTES
A dummy Misc.Vendor is
created for this purpose and
the details are captured in the
DFF.
Distribution Set/PO charge

A/c
100
Liability A/c
2
CR
Financial
Options
On making Payment
(when Cash Mgmt is
implemented)
On Payment
Liability A/c
100
Cash Clearing A/c
Financial
Options
On Clearing
Cash Clearing A/c
100
Cash
ORACLE FINANCIALS
Page 172 of 173
11. Manual WorkOrder
PARTICULARS
At the time material issue
WIP Material A/c
D
R
At Standard Cost
Sub-inventory Material
A/c Setup
ORG
100
WIP Class
10
0
Resource Definition
Form
Overhead Cost (Material)

WIP Material overhead
A/c
10
Sub inventory material

overhead A/c
Overhead Cost (Indirect)
WIP Overhead A/c
WIP Class
10
100
Org/Subinventory
ORG
WIP Class
10
0
Overhead absorption A/c
WIP Class
10
0
Resource Absorption A/c
OPTION
AVAILABLE
ACCOUNT IS PULLED
Resource Valuation
WIP Resource valuation
A/c
SPL NOTES
100
Sub Inventory A/c

2
C
R
Overheads Definition
Form
Outside Processing (In

case of fixed standard
cost to resource)
WIP OSP A/c
Variance A/c
Resource A/c
100
WIP Class
95
Resource Definition
Form
Org Parameters
Resource Definition
Form
Receiving Options
Oracle AIM
ORACLE FINANCIALS
Page 173 of 173

Oracle's Application Implementation Methodology (AIM)
1. DEFINITION - KICK OFF MEETING

FEASIBILITY
PROJECT PLANNING
RESOURCES
AS IS - BP 40- Mapping Current Business Process
2. TO BE
PROCESS LEVEL
BP 80- MAPPING CURRENT BP IN ORACLE(BP- BUSINESS PROCESS)
3. TRANSACTION LEVEL
RD 20 TRANSACTION LEVEL
RD 30- MAPPING WITH ORACLE RD 20
4. SOLUTION DESIGN
GAPS, WORK AROUND, CUSTOMISATION,

EXTENSION, PERSONALIZATION
GAP ANALYSIS (IF CUSTOMISATION)
MD50(functional) & MD70(technical)
MD 50 (REQUIREMENTS GIVEN TO TECHNICAL)
MD 70 (RECEIVE SOLUTIONS FROM TECHNICAL)
5. BUILD (Development,TEST,Production)
(PTP, OTC)
BR 100 SETUP DOCUMENT
6. TRANSACTION- TRAINING,CRP,UAT,CUSTOMER POINT,
TE 20- UNIT TEST (ONE MODULE TEST)
TE 40- INTEGRATION TEST (OVERALL MODULES)
7. GO LIVE
Production Support
ORACLE FINANCIALS

Oracle Financials Volume I Guide

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Page 1 of 173

Oracle Financials Volume I

Support flexible organizational models

Multiple Organizations in a Single Installation

Legal entities, operating units, or inventory organizations.

Multiple Organizations Reporting

Oracle Financials Volume I

An organization that uses Oracle subledgers, such as Oracle Cash Management,

Management, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related

Operating units are not associated with legal entities.

Oracle Financials Volume I

Information is secured by operating unit for these applications using

Organization that manufactures or distributes products.

Examples include manufacturing plants, warehouses, distribution centers, and

Inventory, Bills of Material, Engineering, Work in Process

Oracle Financials Volume I

Information Shared Across Organizations

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

Reporting Currencies (Ledger)

Even though it is not a separate ledger as such, still it can be

Oracle Financials Volume I

HOW TO DECIDE ON A PERFECT LEDGER STRUCTURE

Accounting Method Chart of Accounts Accounting Period

INR Apr Mar Accrual

Australia Statute AUD Jan Dec Cash

Oracle Financials Volume I

France Statute EUR Oct - Sep Accrual

Oracle Financials Volume I

QUESTION AND ANSWER SECTION

Data Access set

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

Oracle Financials Volume I

How does SLA works?

While calling xla_events_pub_pkg.create_events, oracle passes a unique id and

event class (Will discuss in next step).

Oracle Financials Volume I

2. How does SLA understand whether unique id is invoice id or a

MONTHEND/YEAR END CLOSE PROCESS

Complete All Transactions for the Period Being Closed

Oracle Financials Volume I

Complete All Transactions for the Period Being Closed

Complete All Transactions for the Period Being Closed.

1. Complete All Transactions for the Period Being Closed

Complete All Transactions for the Period Being Closed

Oracle Financials Volume I

Reconcile Outstanding Customer Balances

Complete All Transactions for the Period Being Closed

Oracle Financials Volume I

1. Ensure the Next Accounting Period Status is Set to Future Entry

Oracle Financials Volume I

Run Reports for Tax Reporting Purposes (Optional)

Oracle Financials Volume I

Assign General ledger Set of books (Ledger in R12) (Ledger in R12).

Data can be predefined in following levels shown in ascending order of

Oracle Financials Volume I