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Oracle U.S. Federal Financials User Guide
Release 12.1
Part Number E13551-04
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Receivables Management Procedures

Receivables Management Procedures

The Receivables Management features enable federal agencies to comply with the requirements of the Debt Collection Act regarding the collection of interest and penalties on late payments.

The Assign Finance Charges procedure selects customers and invoices for which finance charges are to be accrued during the Accrue Finance Charges process, based on customer classes specified in the Define Finance Charge Groups window

The Waive Finance Charges window waives subsequent finance charges on selected customers or invoices.

The Accrue Finance Charges procedure lets you perform these tasks:

You can select an invoice and its associated debit memos and write-off all remaining balances in one step in the Invoice Write-off window, users.

You can enter manual cash receipts for customers and invoices to be applied, as appropriate, to previously created finance charge debit memos, invoices, or on account in the Cash Receipts window.

The Lockbox Finance Charge Application process lets you make automatic applications of federal finance charges prior to the principal application when processing receipts using the AutoLockbox process.

The Finance Charges Inquiry and Finance Charges Detail Inquiry windows provide summary data and details of the finance charges assessed respectively for each customer receivable.

The 1099-C Setup procedure creates an initial table of 1099-C data.

You can view and update the 1099-C data prior to producing the 1099-C forms or data files in the Maintain 1099-C Information window.

The 1099G Electronic Media process enables agencies to submit the 1099G Tape Report which summarizes 1099-G-Certain Government Payments information and associated 1096 information in electronic format as required by the IRS.

You can assign invoice statuses to overdue invoices, which enables the generation of the Receivables Activity Worksheet and the delinquent invoice electronic file in the Invoice Status window.

Related Topics

For information on the Receivables Management reports, see Receivables Management Report Procedures.

For information on the Receivables Management process, see Receivables Management Process.

Prerequisites

Related Topics

Oracle U.S. Federal Financials Setup Overview,Oracle U.S. Federal Financials Implementation Guide

Receivable Types Setup,Oracle U.S. Federal Financials Implementation Guide

Finance Charges Setup,Oracle U.S. Federal Financials Implementation Guide

Defining Receivables System Options, Oracle Receivable User Guide.

Overview of AutoInvoice, Oracle Receivables User Guide.

Specify Profile Options,Oracle U.S. Federal Financials Implementation Guide

Lockboxes, Oracle Receivables User Guide.

QuickCash, Oracle Receivables User Guide.

Assigning Finance Charges

To assign the finance charges defined in the Define Finance Charges window to all applicable customers and invoices not previously assigned finance charges, select Assign Finance Charges using the Submit Request window.

Note: The Assign Finance Charges Report is automatically printed on completion of the Assign Finance Charges process.

See: Using Standard Request Submission, Oracle Applications User Guide

See: Receivables Management Report Procedures

Waiving Finance Charges

To prevent finance charges from being assigned or accrued on selected customers or invoices or to resume accrual of previously waived finance charges, navigate to the Waive Finance Charges window.

Note: To waive charges on all existing invoices for a particular customers, select Cascade to Invoices.

The following table describes selected fields on the Waive Finance Charges window.

Waive Finance Charges Window Description
Field Name Description
Operating Unit You can select the operating unit without having to switch the responsibility.
Charge Type Charge to be waived
Waive Indicates charge is waived on all future invoices
Cascade to Invoices Indicates charges on all existing invoices for customer are waived

Accruing Finance Charges Report

The Accruing Finance Charges report provides information on debit memos generated during the Accrue Finance Charges process.

You must run the Accrue Finance Charges procedure for each organization.

For finance charges accrued on Split Pay or Installment term invoices, the latest due date is used to calculate the accrual amount for all finance charges except interest when the Accrue for Installments check box is not selected.

New debit memos are created through the AutoInvoice process in Receivables. If the AutoInvoice completes, but not all debit memo transaction records are processed in the interface table, you must correct these records in the Receivables forms designated for correcting AutoInvoice exceptions. You then submit the AutoInvoice program from Receivables.

Report Parameters

Finance Charge Transaction Date

Enter the finance charge transaction date for the report.

If Original Invoice Date is selected, then the transaction date of the original invoice is the transaction date for the newly created finance charge debit memos and the terms from the original invoice are applied. If Original Invoice Due Date is selected, then the due date of the original invoice is the transaction date for the newly created finance charge debit memos. If System Date is selected, then the system date is the transaction date for the newly created finance charge debit memos.

GL Date

Enter the general ledger date for the process. The general ledger date entered will be used as the general ledger date for the newly created finance charge debit memos.

Report Headings

The following table shows the report headings.

In this heading... Accrue Finance Charges Detail Report prints...
Organization The name of the organization.
Ledger The ledger you are printing the report for.

Column Headings

The following table shows the column headings.

In this column... Accrue Finance Charges Detail Report prints...
Transaction Number The number for your transaction.
Line Number The journal entry line number for each journal entry line.
Finance Charge Type The type of finance charge.
Amount The transaction amount.

Related Topics

Overview of AutoInvoice, Oracle Receivables User Guide

Using Standard Request Submission, Oracle Applications User Guide

Writing Off Invoices

To write-off an invoice and all associated finance charge debit memos with remaining balances, navigate to the Invoice Write-off window.

Note: The Invoice Write-off window provides only invoice level full write-offs. To write-off at other than the invoice level or partial write-offs, use the Oracle Public Sector Receivables Adjustments window.

The following table describes selected fields on the Invoice Write-off window.

Invoice Write-off Window Description
Field Name Description
Operating Unit You can select the operating unit without having to switch the responsibility.
GL Account Accounting Flexfield; default from Activity Name
GL Date Current date; must be open general ledger period
Type Type; invoice or debit memo
Write Off Type write-off type; invoice only
Write-Off processes the write-off

Applying Cash Receipts

To enter manual cash receipts for customers and invoices to be applied to previously created finance charge debit memos in order of priority, invoices, or on account, as appropriate, navigate to the Cash Receipts window.

Note: To automatically apply receipts to finance charges, the Cash Receipts window must be used. The Enter Receipts window in Receivables does not provide this functionality.

The following table describes selected fields in the Cash Receipts window.

Cash Receipts Window Description
Field Name Description
Operating Unit You can enter the operating unit without having to switch the responsibility.
Batch Name Batch name; must be unique
Deposit Date Current date
GL Date Current date; must be open general ledger period
Currency Currency code of the batch. Invoice applications must be of the same currency defined at the batch level. Debit memos are paid off in the same currency as the invoices
Receipt Class Populated when batch source entered
Receipt Method Populated when batch source entered
Bank Account Populated when batch source entered
Rate Date Date for which rate is selected
Rate Type Multiple currency exchange rates for the same date. Values include user, corporate, spot, fixed, or other self-defined type. User refers to a rate that is not preseeded in the database a
Rate Exchange rate used to convert foreign currency amounts into ledger currency. If the rate type selected is user, then the user must enter the exchange rate. The rate entered cannot be
Control Number and total of all receipts on file; must be greater than zero
Actual Number and total of all receipts entered
Difference Difference between control and actual; must be zero to submit

The following table describes selected fields on the Cash Receipts window, Receipt Information tab

Cash Receipts Window Description, Receipt Information Tab
Field Name Description
Customer Name Customer name; defaults if invoice number entered
Location Bill-to location for customer; defaults if invoice number field entered
Invoice Number Invoice number; must have open status or non-zero balance; not required if customer name entered; cannot be duplicated in same batch

Note: If no invoice number is specified, all invoices for the specified customer are retrieved in date order. For each invoice selected, finance charges are paid first, in order of priority, until all cash is applied or all invoices are paid. Any remaining amount is put on account.

Receipt Number Receipt number; cannot be duplicated for customer
Receipt Amount Receipt amount; must be greater than zero
Receipt Origin Receipt source description

The following table describes selected fields on the Cash Receipts window, Misc. Information tab

Cash Receipts Window Description, Misc. Information Tab
Field Name Description
Customer Name Customer name; defaults if invoice number entered
Location Bill-to location for customer; defaults if invoice number field entered
Invoice Number Invoice number; must have open status or non-zero balance; not required if customer name entered; cannot be duplicated in same batch

Note: If no invoice number is specified, all invoices for the specified customer are retrieved in date order. For each invoice selected, finance charges are paid first, in order of priority, until all cash is applied or all invoices are paid. Any remaining amount is put on account.

Line Number Invoice line level cash application; applies only to invoices with MFAR transaction types
Receipt Date Date of the receipt

Generating the Lockbox Finance Charge Application

When running AutoLockbox in Receivables, the Lockbox Finance Charge Application process is automatically initiated after completion of the Validation phase of the Lockbox process.

See: Running AutoLockbox, Oracle Receivables User Guide

To initiate the Lockbox Finance Charge Application process when the receipt application has been changed after the completion of the Validation phase but prior to the completion of the Post QuickCash phase of the Lockbox process:

  1. Navigate to the Submit Request window.

  2. In the Name field, select Lockbox Finance Charge Application.

  3. In the Operating field, select an operating unit.

  4. In the Transmission Name field, select a transmission name.

Note: By submitting the Lockbox Finance Charge Application process, the federal finance charges are automatically applied prior to the principal of the new receipt application.

The Lockbox Finance Charge Application process should be submitted in these cases:

Finance Charges Inquiry

To view summary and detail finance charge data for a particular customer receivable, navigate to the Finance Charges Inquiry window.

The following table describes selected fields on the Finance Charges Inquiry window.

Finance Charges Inquiry Window Description
Field Name Description
Invoice Number Transaction number for the principal invoice.
Invoice Issue Date Transaction date.
Amount Invoiced Transaction amount for the principal invoice.
Finance Charges All finance charge amounts assessed for the principal invoice.
Liquidations Amounts that reduce the principal invoice and finance charges assessed.
Balance Amount Invoiced + Finance Charges - Liquidations
Document button Opens the Finance Charges Detail Inquiry window.

The following table describes selected fields on the Finance Charges Detail Inquiry window.

Finance Charges Detail Inquiry Window Description
Field Name Description
Document Number Transaction number for the finance charge.
GL Date General ledger date for the finance charge transaction.
Line Finance charge transaction line.
Charge Type Finance charge type of the transaction.
Liquidations Amounts that reduce the finance charge transaction line.
Balance Amount Invoiced + Finance Charges - Liquidations for the finance charge transaction line.

Generating the 1099-C Setup

To extract invoice information for 1099-C reporting, navigate to the Submit Request window.

Note: Run the 1099-C Setup process when ready to submit the 1099-C output forms.

  1. In the Name field, select 1099-C Setup Process.

  2. In the Operating Unit field, select an operating unit.

  3. In the Creditors TIN field, enter the agency tax identification number.

  4. In the Calendar Year field, select a year.

  5. In the Receivables Activity field, select a type of receivables.

    Note: If more than one Write-off Receivables activity exists, the 1099-C Report must be set up for each one.

  6. In the Include Finance Charges field, select Yes or No.

    Note: If No is selected, the process excludes finance charge write-off activity.

See: Using Standard Request Submission, Oracle Applications User Guide

Maintaining 1099-C Information

To view or update Form 1099-C information for an organization, navigate to the Maintain 1099-C Information window.

The following table describes selected fields in the Maintain 1099-C Information window.

Field Name Description
Reportable Default selected; if selected, indicates that all invoice information in window to be included in 1099-c report.
Creditors Name Agency name as entered in define federal options window
Creditor's Federal ID Agency name tax identification number
Date Canceled Debt cancellation date
Amount Invoice amount
Finance Charges Amount of finance charges against invoice
Debt Description User-enterable description of debt
Account Number User-enterable account number for debtor
Bankruptcy Indicates whether debt canceled due to bankruptcy
Fair Market Value of Property Value of foreclosure or abandonment of property that occurred in connection with cancellation of debt

Assigning an Invoice Status

To assign an invoice status to overdue invoices, navigate to the Invoice Status window.

  1. Enter search criteria in the Find Invoices window.

  2. To view the invoice or invoices queried, click Find.

  3. To view the amount due on the displayed invoices and the number of days the invoices are past due, select the Amount/Days Late tab.

  4. To view the receivable type for each invoice displayed, select the Receivable Type tab.

  5. To assign an invoice status to an overdue invoice, select the appropriate record and click Status.

    The Invoice Status window appears letting you assign additional status entries or maintain statuses for the invoices displayed.

  6. To assign an additional invoice status, select an invoice status from the Status field.

  7. To deactivate an invoice status, select the record and record a value in the end date column.

    The invoice status is moved from the Invoice Status window to the Invoice Status History window.

  8. To view the history records of each status assigned to an invoice, click History in the Invoices window.

The following table describes selected fields on the Invoices window.

Invoices Window Description, Amount/Days Late Tab
Field Name Description
Operating Unit You can select the operating unit based on your security profile and responsibility
Amount Due Amount due on invoice
Days Late Number of days invoice is past due; system calculation based on current date
History Opens the Invoice Status History window, which displays the history of each status assigned to the invoice
Status Opens the Invoice Status window, where users can assign an invoice status to an overdue invoice or delete statuses for an invoice

The following table describes selected fields on the Invoice Status Window.

Invoice Status Window Description
Field Name Description
Status System-defined; status available to be assigned to each overdue invoice; cannot be deleted
Start Date Invoice status start date; defaults to system date; cannot be changed once a row is saved
End Date Invoice status end date; cannot be later than the system date

Related Topics

Federal Finance Charges Open Interface in the Integration Repository, http://irep.oracle.com/ .