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Oracle® Fusion Applications Financials Implementation Guide
11g Release 1 (11.1.2)
Part Number E20375-02
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29 Manage Receivables System Options

This chapter contains the following:

Updating System Option Records: Critical Choices

Using Header Level Rounding: Example

Tax Invoice Printing Options

Tuning Segments: Explained

Log File Message Levels: Explained

FAQs for Receivables System Options

Updating System Option Records: Critical Choices

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

Considerations for system option settings include:

Salespersons

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

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

If you do not enter a value in the Sales Credit Percent Limit field, then no sales credit limit validation is performed during revenue accounting.

Header Level Rounding

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

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

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

If you do not enable the Use header level rounding option, Receivables rounds amounts at the line level and posts any rounding difference to the receivable account.

Important

Once you enable Header Level Rounding and save the system options record, you cannot disable the feature.

Allow Change to Printed Transactions

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

Important

You cannot update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, accounting, and including the transaction on a balance forward bill.

Discounts

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

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

If you never allow discounts on partial payments, set this option to No.

Using Header Level Rounding: Example

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

Scenario

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

Transaction Details

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

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


Item/Description

Amount in Kroners

Conversion Rate

Amount in Euros

Comment

Paper

15.00

6.55957

2.29

rounded up

Pens

12.00

6.55957

1.83

rounded up

Envelopes

25.00

6.55957

3.81

rounded down

Subtotal

52.00

N/A

7.93

sum of items

Rounding Difference

N/A

N/A

- 0.01

N/A

Total Amount

52.00

6.55957

7.92

rounded down

Analysis

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

Conversion Results

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

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

Tax Invoice Printing Options

The Tax Invoice Printing Options system option identifies the method Oracle Fusion Receivables uses to print tax amounts on transactions. The value you enter here becomes the default value for customer profile classes.

Tax Invoice Printing Options

European Tax Format

Does not itemize tax information for each line, but does print tax rates as the last column of invoice lines. Prints freight items last. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of taxable amounts and tax charged for each tax rate code.

Itemize and Sum

Itemizes tax information for each invoice line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code. At the end of the invoice, Receivables prints the invoice subtotal, tax, shipping, and invoice total.

Itemize Taxes

Itemizes tax information for each invoice line.

Itemize With Recap

Itemizes tax information for each invoice line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code.

Recap

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code.

Sum Taxes

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code. At the end of the invoice, Receivables prints the invoice subtotal, tax, shipping, and invoice total.

Summarize By Tax Name

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each printed tax name and rate.

Total Tax Only

Displays only the total tax amount at the bottom of the document.

Tuning Segments: Explained

You can designate Accounting and System Items flexfield segments as tuning segments, to help increase performance of AutoInvoice. The tuning segment is the segment most frequently accessed by AutoInvoice.

Accounting Flexfield Tuning Segment

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

If no indices exist for the GL_CODE_COMBINATIONS table, enter the segment with the most distinct values for your Accounting Flexfield tuning segment.

System Items Flexfield Tuning Segment

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

If no indices exist for the MTL_SYSTEM_ITEMS table, enter the segment with the most distinct values for your System Items Flexfield tuning segment.

Log File Message Levels: Explained

Enter a log file message level from 0 to 5 to indicate the amount of detail that you want to display in the AutoInvoice log file.

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

Meaning of the Log File Message Levels

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

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

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

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

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

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

FAQs for Receivables System Options

What's the days per posting cycle?

The Days per Posting Cycle setting lets you process the transactions you are posting in smaller groups to ensure that you do not run out of rollback space during posting.

For example, if your accounting period is 30 days and you set this value to 30, the posting program uses only one cycle. If your accounting period is 30 days and you set this value to 17, the posting program uses two cycles. It is recommended to set this field to a value that is less than the number of days in your accounting period.

What happens if I allow transaction deletion?

Enable the Allow transaction deletion option if you want to let users delete transactions from Oracle Fusion Receivables after the transactions have been saved. If you do not enable this option, all Receivables users are prevented from deleting transactions. If an installation is legally required to number transactions sequentially with no missing transaction numbers, then you should not enable this option.

If you enable the Allow transaction deletion option, you can still control which users can delete transactions using function security.

How can I determine the memory allocation?

Enter in the Maximum Memory in Bytes field the value that represents the amount of memory to allocate to AutoInvoice for validation. The default is 65535 bytes. For best results, enter a value that is the maximum number of records that you import, rounded to an even number, multiplied by 1024. For example, if you use AutoInvoice to import no more than 100 records at a time, enter a value of 102400.

During AutoInvoice processing, if you receive a message that indicates the application failed to allocate memory, then enter a lower number. If you receive a message that the memory is not large enough, then enter a higher number.

When do I use days to AutoApply a receipt?

Enter in the Days to AutoApply a Receipt field the number of days that AutoApply attempts to apply a receipt to a transaction. Use this field if your customers often pay for transactions before they are created. AutoApply looks for and attempts to apply open receipts for the number of days that you specify.

If you do not enter a value in this field, AutoApply tries to apply the receipt only once.

What are the exception rule activities?

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

The Exception Rule Adjustment Activity field provides the default receivables activity to use for adjustments on overpayments or underpayments. The Exception Rule Write-off Activity field provides the default receivables activity to use for write-offs of overpayments or underpayments.

When are receipts required for a bill-to site?

Enable the Require billing location for receipts option to require that a bill-to site be associated with a cash receipt. If enabled, Oracle Fusion Receivables does not create receipts that do not have a bill-to site.

It is recommended to use this option if you have customers without statement sites. If you do not enable this option, and you have receipts for customers without statement sites and without a bill-to site associated with the receipt, the unapplied amount of the receipt will not appear on any of the statements for this customer.

What's the difference between the realized gains and losses accounts and the cross currency rounding account?

The realized gains and realized losses accounts are used to account for the conversion rate gain or loss in the ledger currency resulting from a cross currency receipt application. For example, if the conversion rate for a foreign currency invoice is 1.7 and the conversion rate of the payment for this invoice is 2.0, Oracle Fusion Receivables posts the difference as a gain to the realized gains account.

The cross currency rounding account is used to record rounding error amounts created during a cross currency receipt application for currencies that have a fixed rate relationship. You must define a rounding error account if you create cross currency receipts.