11g Release 1 (11.1.3)
Part Number E20371-03
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Oracle® Fusion
Applications Enterprise Contracts Implementation Guide 11g Release 1 (11.1.3) Part Number E20371-03 |
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This chapter contains the following:
Define AutoInvoice Line Ordering Rules
Define AutoInvoice Line Grouping Rules
Define Salesperson Reference Accounts
Specify Customer Contract Management Business Function Properties
AutoInvoice uses line ordering rules to determine how to order and number each line after your transactions have been grouped into invoices, debit memos and credit memos. You can specify a line ordering rule for each grouping rule.
Oracle Fusion Receivables provides the following transaction attributes from the RA_INTERFACE_LINES_ALL table that you can use for AutoInvoice line ordering rules:
ACCOUNTING_RULE_DURATION
ACCOUNTING_RULE_ID
ACCOUNTING_RULE_NAME
AMOUNT
ATTRIBUTE_CATEGORY
ATTRIBUTE1-15
FOB_POINT
INTERFACE_LINE_ATTRIBUTE1-15
INTERFACE_LINE_CONTEXT
ORIG_SYSTEM_SHIP_ADDRESS_ID
QUANTITY
QUANTITY_ORDERED
REASON_CODE
REASON_CODE_MEANING
REFERENCE_LINE_ATTRIBUTE1-15
REFERENCE_LINE_CONTEXT
REFERENCE_LINE_ID
SALES_ORDER
SALES_ORDER_DATE
SALES_ORDER_LINE
SALES_ORDER_SOURCE
SHIP_DATE_ACTUAL
SHIP_VIA
TAX_CODE
UNIT_SELLING_PRICE
UNIT_STANDARD_PRICE
UOM_CODE
UOM_NAME
WAYBILL_NUMBER
Assign an AutoInvoice line ordering rule to an AutoInvoice grouping rule when you want to organize the transaction lines belonging to a transaction created by the grouping rule in a specific order. Use the Order By Type to specify whether to order the values belonging to a transaction attribute from least to greatest (Ascending) or greatest to least (Descending).
For example, if you are importing transactions from Oracle Fusion Distributed Order Orchestration, you can define a line ordering rule with the attribute SALES_ORDER_LINE to list the items on the invoice in the same order as they appear on the sales order.
Or, you can define a line ordering rule with the attribute AMOUNT and an Order By Type of Descending to ensure that the highest invoice line amounts are listed first on the transactions created by the grouping rule.
AutoInvoice grouping rules contain transaction attributes that must be identical for all items on the same transaction. For example, transaction number (TRX_NUMBER) is a mandatory attribute of all grouping rules. If you have two records in the interface tables with different transaction numbers, AutoInvoice creates separate transactions for each record.
Oracle Fusion Receivables provides both mandatory and optional transaction attributes for imported transactions. You cannot delete a mandatory attribute from any grouping rule, but you can add optional attributes to the mandatory attributes to create a new grouping rule.
Receivables provides the following mandatory transaction attributes from the RA_INTERFACE_LINES_ALL table that must apply to all transactions created using AutoInvoice grouping rules:
COMMENTS
CONS_BILLING_NUMBER
CONVERSION_DATE
CONVERSION_RATE
CONVERSION_TYPE
CREDIT_METHOD_FOR_ACCT_RULE
CREDIT_METHOD_FOR_INSTALLMENTS
CURRENCY_CODE
CUSTOMER_BANK_ACCOUNT_ID
CUST_TRX_TYPE_ID
DOCUMENT_NUMBER
DOCUMENT_NUMBER_SEQUENCE_ID
GL_DATE
HEADER_ATTRIBUTE1-15
HEADER_ATTRIBUTE_CATEGORY
HEADER_GDF_ATTRIBUTE1-30
INITIAL_CUSTOMER_TRX_ID
INTERNAL_NOTES
INVOICING_RULE_ID
ORIG_SYSTEM_BILL_ADDRESS_ID
ORIG_SYSTEM_BILL_CONTACT_ID
ORIG_SYSTEM_BILL_CUSTOMER_ID
ORIG_SYSTEM_SHIP_CONTACT_ID
ORIG_SYSTEM_SHIP_CUSTOMER_ID
ORIG_SYSTEM_SOLD_CUSTOMER_ID
ORIG_SYSTEM_BATCH_NAME
PAYMENT_SERVER_ORDER_ID
PAYMENT_SET_ID
PREVIOUS_CUSTOMER_TRX_ID
PRIMARY_SALESREP_ID
PRINTING_OPTION
PURCHASE_ORDER
PURCHASE_ORDER_DATE
PURCHASE_ORDER_REVISION
REASON_CODE
RECEIPT_METHOD_ID
RELATED_CUSTOMER_TRX_ID
SET_OF_BOOKS_ID
TERM_ID
TERRITORY_ID
TRX_DATE
TRX_NUMBER
Receivables provides the following optional transaction attributes from the RA_INTERFACE_LINES_ALL table that you assign to transaction classes within an AutoInvoice grouping rule:
ACCOUNTING_RULE_DURATION
ACCOUNTING_RULE_ID
ATTRIBUTE1-15
ATTRIBUTE_CATEGORY
INTERFACE_LINE_ATTRIBUTE1-15
INTERFACE_LINE_CONTEXT
INVENTORY_ITEM_ID
REFERENCE_LINE_ID
RULE_START_DATE
SALES_ORDER
SALES_ORDER_DATE
SALES_ORDER_LINE
SALES_ORDER_REVISION
SALES_ORDER_SOURCE
TAX_CODE
TAX_RATE
During AutoInvoice processing, if you have transaction lines that fail validation, Oracle Fusion Receivables looks at the value of the Invalid Line field in the transaction source to determine the grouping of transactions.
If the value is Reject Invoice, then AutoInvoice rejects all of the transaction lines that make up one invoice according to the grouping rule, if any one of the transaction lines are invalid. For example, if a grouping rule specifies that three transaction lines should be created as one invoice and one of the transaction lines has an error, AutoInvoice rejects all three transaction lines and does not create an invoice.
However, if the value is Create Invoice, AutoInvoice rejects the one invalid transaction line and creates an invoice from the two remaining valid transaction lines.
During AutoInvoice processing, Oracle Fusion Receivables validates that transaction and document numbers are unique after grouping has completed. In certain cases, AutoInvoice will create multiple invoices in the same group with the same transaction or document number. Once grouping is completed, AutoInvoice checks for duplicate transaction and document numbers and reports any lines that fail validation.
For example, two lines are imported with the same transaction number, but they have different currencies. These lines are split into two separate invoices during grouping due to the different currencies. Once grouping has completed, both of the invoices will fail validation due to identical transaction numbers.
If AutoInvoice uses grouping rules and it is processing a transaction class that is not defined for a grouping rule, then AutoInvoice only uses the mandatory transaction attributes to group transactions.
Define AutoAccounting to specify how to determine the default general ledger accounts for transactions that you enter manually or import using AutoInvoice. You must define AutoAccounting before you can enter transactions in Oracle Fusion Receivables. When you enter transactions, you can override the default general ledger accounts that AutoAccounting creates.
Account Types
Define an AutoAccounting record for each type of account. You can then assign either a table name or constant value to each segment of the account.
AutoInvoice Clearing
The clearing account for imported transactions. Receivables uses the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this option on the transaction source used for imported transactions.
Freight
The freight account for transactions.
Receivable
The receivable account for transactions.
Revenue
The revenue and late charges account for transactions.
Tax
The tax account for transactions.
Unbilled Receivable
The unbilled receivable account for transaction. Receivables uses this account when the transaction uses the In Arrears invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue before the invoicing rule bills it, Receivables uses this account.
Unearned Revenue
The unearned revenue account for transactions. Receivables uses this account when a transaction uses the In Advance invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue after the invoicing rule bills it, Receivables uses this account.
Table Names
Enter either the table name or constant value that you want Receivables to use to retrieve information for each accounting flexfield segment of a given account.
Enter a constant value instead of a table name if you want AutoAccounting to always use the same value for a given segment. You must ensure that you enter information that is valid for this segment. For example, if you defined your Company segment as a two-character segment with valid values ranging from 00 to 10, you must enter a two-character value within this range.
Bill-to Site
Use the bill-to site of the transaction to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
Salesperson
Use the salesperson table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
If you select this option for AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with the salesperson on the transaction. If you select this option for the unbilled receivable account, Receivables uses the receivable account associated with the salesperson on the transaction.
If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
Standard Lines
Use the memo line or inventory item on the transaction to determine this segment of revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue accounts.
If you select this option for AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to the memo line item or inventory item.
If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
Tax
Use the tax account assigned to the tax rate codes on the transaction.
Transaction Types
Use the transaction types table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.
If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.
AutoAccounting derives the default accounting for each accounting event in Oracle Fusion Receivables according to your setup. AutoAccounting assigns valid Accounting flexfields to invoices and credit memos, and automatically generates valid Accounting flexfields for all related accounts: freight, receivable, revenue, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue.
When you submit the Create Receivables Accounting program, this creates the subledger accounting entries. Oracle Fusion Subledger Accounting transfers the final accounting to Oracle Fusion General Ledger.
You can optionally define your own accounting rules in Subledger Accounting to create accounting that meets your business requirements. If you customize the Subledger Accounting setup to create your own accounting, then Subledger Accounting overwrites the default accounts, or individual segments of accounts, that AutoAccounting originally derived during transaction entry.
Use the Open Receivable and Post to GL options on the transaction type to manage posted and non-posted activities on transactions.
If the Open Receivable option is enabled, Oracle Fusion Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on-account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.
If the Post to GL option is enabled, Receivables posts transactions with this transaction type to general ledger. If this option is not enabled, then no accounting is generated for transactions with this transaction type.
Considerations for defining transaction types include:
Creating a Void Transaction Type
Updating Customer Accounts and Aging
Updating Accounting Only
You can void a debit memo, credit memo, on-account credit or invoice by defining a Void transaction type. When you define a Void transaction type, set the Open Receivable and Post to GL options to No. Then, as long as there is no activity against the transaction, and it has not been posted to general ledger, you can make the transaction invalid by changing the transaction type to Void.
This activity is not included on the Review Customer Account Details page since the activity does not modify the customer balance.
If you set the Open Receivable option to Yes and Post to GL option to No, Receivables updates customer accounts with the transaction activity of transactions assigned this transaction type. Receivables also includes these transaction in aging reports. There is no effect on accounting.
Use transaction types with these settings during your initial implementation, where the transaction amount is included in the general ledger beginning balance for the receivable account, but activity still needs to be aged and payment collected against it. All related activities against the transaction, such as credit memos, payments, and adjustments, are accounted as affecting the customer balance. You can review these activities on the Review Customer Account Details page.
If you set the Open Receivable option to No and Post to GL option to Yes, Receivables updates accounting without any impact on the customer balance.
Use transaction types with these settings when you want to adjust accounting activity, such as when you rebill a customer in order to reclassify the general ledger account. A credit memo and invoice with the Open Receivable option set to No are created where the credit memo reverses the general ledger account of the original invoice, and the invoice creates accounting with the new general ledger account. This activity is transparent to the customer because the original invoice is used for the cash application when payment is received.
This activity is not included on the Review Customer Account Details page since the activity does not modify the customer balance.
The transaction type that you assign to a transaction defines the type of application that is permitted against the transaction balance. This definition is managed by the Natural Application Only and Allow Overapplication options.
Natural application lets you only apply a payment or credit to a transaction that brings the transaction balance close to or equal to zero. For example, if an invoice has a balance due of $400, you can make applications against this transaction up to $400 only. With natural application, you can only bring the balance to zero.
Overapplication lets you apply more than the balance due on a transaction. For example, if you apply a $500 receipt to a $400 invoice, this overapplies the invoice by $100 and reverses the balance sign from positive to negative.
Whether or not a transaction allows overapplication determines the actions that you can take on that transaction.
If a transaction that allows natural application only is paid in full, then in order to credit the transaction you must first unapply the transaction from the receipt before creating the credit.
If you want to use AutoInvoice to import credit memos against paid invoices and evaluate these credits for automatic receipt handling, then the transaction type of the paid invoices must allow natural application only. However, if the Receipt Handling for Credits option is not enabled on the transaction source of the transaction, AutoInvoice leaves the related credit memo in the interface tables until you unapply the invoice from the receipt.
Define the accounting for transaction types of class Invoice, Chargeback, Credit Memo, and Debit Memo. Oracle Fusion Receivables uses this information along with your AutoAccounting definition to determine the accounts to use for transactions with the applicable transaction type.
There are points to consider for each reference account on a transaction type:
Revenue
Freight
Receivable
AutoInvoice Clearing
Tax
Unbilled Receivable
Unearned Revenue
Enter a revenue account, unless the transaction type does not allow freight.
If the Invoice Accounting Used for Credit Memos profile option is set to No, then a revenue account is not required for Credit Memo transaction types.
Enter a freight account, unless the transaction type does not allow freight.
Enter a receivable account for all transaction types.
If the Post To GL option on the transaction type is enabled, Receivables creates a receivable transaction record using this account in order to transfer accounting to general ledger and create a journal entry.
For Chargeback transaction types, enter the Receivable Chargeback account. The offset to the Receivable account on the original debit transaction is generated by the chargeback adjustment.
If the Invoice Accounting Used for Credit Memos profile option is set to No, then a receivable account is not required for Credit Memo transaction types.
If this is an Invoice or Debit Memo transaction type, enter an AutoInvoice clearing account. Receivables uses this account to hold any difference between the revenue amount specified for the revenue account and the selling price times the quantity for imported invoice lines.
Receivables only uses the AutoInvoice clearing account for imported transactions that have a transaction source with the Create clearing option enabled. If the Create clearing option is not enabled, then AutoInvoice requires that the revenue amount on the invoice be equal to the selling price times the quantity.
If this is an Invoice, Credit Memo or Debit Memo transaction type, enter a tax account.
If this is an Invoice or Credit Memo transaction type, enter an unbilled receivable account. This account is for transactions that use the In Arrears invoicing rule.
If this is an Invoice or Credit Memo transaction type, enter an unearned revenue account. This account is for transactions that use the In Advance invoicing rule.
Define your transaction types in the following order:
Credit memo transaction types
Invoice transaction types
Debit memo transaction types
Chargeback transaction types
If applicable, define the transaction types that you want to add to your transaction sources before defining transaction sources.
If you are using late charges, define a transaction type with a class of Debit Memo for debit memos, and a transaction type with a class of Invoice for interest invoices. Specify the receivable and revenue accounts for these transaction types. Oracle Fusion Receivables uses these accounts instead of AutoAccounting when generating late charges.
You can use the Open Receivable option on the transaction type to implement an approval cycle for any temporary or preliminary transactions.
For example, if you have particularly sensitive debit memos, credit memos, on-account credits, chargebacks, and invoices that you want to review after creation, you can define a transaction type called Preliminary with Open Receivable set to No and assign it to the applicable transactions. This transaction type does not update your customer balances.
When you review and approve the transaction, you can define a transaction type called Final with Open Receivable set to Yes and assign it to the same transactions. This will now update your customer balances on these transactions.
Use the various options on the transaction source assigned to a transaction to manage your transaction numbering requirements.
There are these points to consider when defining transaction numbering for transactions assigned to specific transaction sources:
Defining Document Sequences
Using Automatic Transaction Numbering
Copying Document Numbers to Transaction Numbers
Allowing Duplicate Transaction Numbers
Using the Credit Memo Transaction Source
If necessary, define document sequences to assign unique numbers to each transaction, in addition to the transaction number automatically assigned by Oracle Fusion Receivables.
To automatically number new transactions you create using a transaction source, enable the Automatic transaction numbering option and enter a number in the Last Number field.
For example, to start numbering transactions with 1000, enter a last number of 999. Receivables automatically updates the Last Number fields on transaction sources, so you can review the transaction source later to see the last transaction number that was generated.
Note
The last transaction number on the transaction source is an approximation only, due to caching.
You can use automatic transaction numbering with both Imported and Manual transaction sources.
If you are using document sequences and you want to use the same value for both the document number and the transaction number for transactions assigned to a transaction source, enable the Copy document number to transaction number option.
If you are using Gapless document sequences, you should enable this option if you require gapless transaction numbering. This ensures that transaction numbers are generated sequentially and that there are no missing numbers.
Enable the Allow duplicate transaction numbers option to allow duplicate transaction numbers within a transaction source.
You cannot use this option with automatic transaction numbering.
Assign a credit memo transaction source to an invoice transaction source, if you want to number credit memos differently from the invoices that they credit.
During AutoInvoice processing, whether you must provide sales credit information on imported transaction lines depends on the settings of the Allow sales credits option on the transaction source and the Require salesperson system option.
These are the requirements for passing sales credit information on imported transaction lines:
If the Require salesperson system option and the Allow sales credits option on the transaction source are both enabled, you must provide sales credit information.
If the Require salesperson system option is not enabled and the Allow sales credits option on the transaction source is enabled, you can provide sales credit information, but it is not required.
If the Require salesperson system option is enabled and the Allow sales credits option on the transaction source is not enabled, you must provide sales credit information.
If neither the Require salesperson system option nor the Allow sales credits option on the transaction source are enabled, you cannot provide sales credit information. AutoInvoice ignores any values that you pass.
Use the AutoInvoice Options and Import Information regions of an Imported transaction source to define how AutoInvoice validates imported transaction lines assigned a particular transaction source.
You do not have to pass values for all of the fields that are referenced in the transaction source. If you do not want AutoInvoice to pass certain data, then where available you can set the related option to None.
Note
Even if you set a transaction source data option to None in order not to import this information into the interface tables, AutoInvoice can still validate and reject transaction lines with invalid data.
These settings affect the validation of imported transactions:
Invalid Line field: Indicate how AutoInvoice handles imported transactions with invalid lines by selecting either Reject Invoice or Create Invoice.
If you select Reject Invoice, AutoInvoice does not import this transaction or any of its lines into the interface tables.
If you select Create Invoice, AutoInvoice creates a transaction with valid lines only. For example, you import an invoice with three invoice lines and one of the lines is invalid. AutoInvoice creates the invoice with only the two valid lines and rejects the invalid line. You can use the Edit Transaction page to add the rejected line.
Accounting Date in a Closed Period field: Indicate how AutoInvoice handles imported transactions that have lines in the interface lines table that are in a closed period.
Select Adjust to have AutoInvoice automatically adjust the accounting dates to the first accounting date of the next open or future enterable period.
Select Reject to reject these transaction lines.
In the Import Information subregions, where applicable select Number, Value, Segment or ID for each option to indicate how AutoInvoice validates information.
Select Number to import a record into the interface tables using its assigned number.
Select Value to import a record into the interface tables using its actual name.
Note
Use Value if you intend to use the transaction source to import data from a non-Oracle system.
Select Segment to use the flexfield segment.
Select ID to use the internal identifier of the record.
Select Amount or Percent to indicate how AutoInvoice validates Sales Credits and Revenue Account Allocations on transaction lines.
AutoInvoice validates imported data based on the settings of the applicable Imported transaction source. Transactions that fail validation appear in the Import AutoInvoice Validation report.
AutoInvoice ensures that certain column values agree with each other. These values can be within an interface table or multiple interface tables. For example, if the transaction source indicates not to use a revenue scheduling rule, AutoInvoice ignores any values passed for invoicing rule, revenue scheduling rule, and revenue scheduling rule duration.
AutoInvoice performs these validations on transaction lines with revenue scheduling rules:
Requires that these transactions also include an invoicing rule, if you import transactions that use revenue scheduling rules.
Rejects lines, if the revenue scheduling rule has overlapping periods.
Rejects lines, if all of the accounting periods do not exist for the duration of the revenue scheduling rule.
You may want to create certain records before creating your transaction sources.
You can optionally create these objects for all transaction sources:
Transaction types: Define the transaction types that you want to appear by default on transactions assigned to your transaction sources.
Invoice transaction flexfield: Define the reference information that you want to capture in the invoice transaction flexfield and display on imported transactions, such as a purchase order number.
Credit memo transaction source: Define a transaction source for credit memos before you define a transaction source for invoices. Use this transaction source to number the credit memos created against invoices differently from the invoices they are crediting.
You can optionally create these objects for Imported transaction sources:
AutoInvoice grouping rule: Define the grouping rule to appear by default on imported transaction lines.
AutoInvoice clearing account: Define an AutoInvoice clearing account, if you intend to enable the Create clearing option. AutoInvoice puts any difference between the revenue amount and the selling price times the quantity for a transaction into this account.
Special conditions may apply to the creation of transaction sources for credit memos.
Review these considerations for transaction sources assigned to credit memos:
Define Manual transaction sources for credit memos created by the credit memo request approval process.
Enable the Copy transaction information flexfield to credit memo option on Manual transaction sources used for credit memos, to copy the invoice transaction flexfield reference information to the credit memo that is crediting the invoice.
Define and assign transaction sources for credit memos to transaction sources for invoices, if you want to number the credit memos created against invoices differently from the invoices they are crediting.
Assign the AutoInvoice grouping rule to Imported transaction sources that AutoInvoice uses to group imported transaction lines.
If you do not assign a grouping rule to an Imported transaction source, AutoInvoice uses the following hierarchy to determine which rule to use:
Grouping rule assigned to the transaction source of the transaction line.
Grouping rule assigned to the bill-to customer site profile of the transaction line.
Grouping rule assigned to the bill-to customer profile of the transaction line.
Grouping rule assigned to system options.
If you do not use an AutoInvoice clearing account and enable the Create clearing option on the transaction source, AutoInvoice requires that the revenue amount be equal to the selling price times the quantity for all of the transactions it processes. AutoInvoice rejects any transaction line that does not meet this requirement.
Assign general ledger accounts to your salespersons. When AutoAccounting depends on salesperson, Oracle Fusion Receivables uses the account references that you define here to derive the accounts to use on transactions that are assigned a particular salesperson.
The remit-to address lets your customers know where to send payment for their open debit items. After you create a remit-to address, you can assign it to the bill-to addresses of the customers and customer sites that you designate by country and, if applicable, by region and postal code range.
If the Print remit-to address system option is enabled, Oracle Fusion Receivables prints the remit-to address on the related dunning letters and statements.
During the import process, AutoInvoice rejects all invoices for which it cannot determine a remit-to address. In order for AutoInvoice to import an invoice, you must either define a remit-to address for the geographical location of each applicable bill-to site or define a remit-to address to use as default for one or more locations.
Create or select a remit-to address, then open the Receipts from Criteria dialog box. Select the country that you want to assign to this remit-to address. If you only select a country, then all customer bill-to sites in this country are assigned this remit-to address.
If you want to assign this remit-to address to specific locations within the country, you can optionally select a state (region) within the country, and a range of postal codes.
When you create a remit-to address, a country appears by default if one was defined in system options. You can change the default to the applicable country of the remit-to address.
If you have Oracle Fusion Trading Community Data Quality installed, you can expose a Verify Address button on the Create and Edit Remit-to Address pages for applicable countries.
After you enter a remit-to address, use the Verify Address button to confirm that the address is in the Oracle Fusion Trading Community Model registry. If it is not, Oracle Fusion Receivables either presents alternative addresses or lets you optionally add the address you entered to the registry.
Bill plans and revenue plans provide you with the ability to create a consolidated set of billing attributes that can be shared across contract lines within a contract. Create bill plans and revenue plans within a contract, and associate them to one or more contract lines.
Configure the regions of a bill plan and revenue plan according to your invoicing and revenue recognition requirements. The regions are:
Hold option
Invoice or Revenue Method Name
General Information
Billing Extensions
Schedules and Overrides
Enable the hold option to prevent transactions associated with contract lines using the bill plan or revenue plan from being included in invoice or revenue generation.
Determine how you want to invoice or recognize revenue for the contract lines that use the bill plan or revenue plan. Select the invoice method or revenue method that has a method classification with the invoicing or revenue recognition instructions that meet your requirements.
Define customer information, invoicing instructions and invoice summarization options for the bill plan. Select the associated contract lines for the bill plan or revenue plan.
The following table explains the options.
|
Feature |
Description |
|---|---|
|
Customer Information |
The invoice customer, site, and contact person that receives the invoice for project-related work on contract lines that use the bill plan. |
|
Invoice Information |
Instructions for the billing currency, billing cycle, payment terms, billing offset days, and the bill set number for the invoices. Enter any specific comments that you want to appear on the customer invoice. Also enter any instructions for the billing administrator to follow during invoice preparation. |
|
Invoice Summarization Options |
Select the labor, nonlabor, and event formats that group transactions on invoice lines. |
|
Associated Contract Lines |
Select the contract lines that you want to use the bill plan or revenue plan. Each bill plan or revenue plan can be associated with multiple contract lines within a contract. However, a contract line can only be linked to one bill plan or revenue plan. Note Associate contract lines to the bill plan or revenue plan when the contract is in Draft status. After the contract is approved, you must place the contract under amendment to change or add contract lines. |
Optionally, add a billing extension to calculate the invoice or revenue event amounts for contract lines using the bill plan or revenue plan. If the invoice or revenue method uses a billing extension, it is automatically copied onto the bill plan or revenue plan.
The billing extension status must be Active for the invoice or revenue generation process to call the billing extension.
Important
Select whether you want the billing extension to calculate an event for either the Associated Project or the Contract Line. If you select Contract Line, the event amount will be for all projects associated with a contract line.
Select the labor and nonlabor schedules that determine the origin of the standard bill rates, burdening, or transfer prices for contract lines associated with the bill plan. Enter any applicable discount information for standard bill rate schedules.
Optionally, enter any overrides or multipliers that will take precedence over the standard bill rate schedules, if applicable.
Note
Schedules and overrides are only available for bill plans and revenue plans that use a rate-based invoice or revenue method classification.
To use intercompany billing or interproject billing , your implementation team must configure a number of distinct features within Oracle Fusion Enterprise Contracts. These features work in cohesion with financial and project features to create internal invoices and transfer revenue between organizations.
Select the intercompany billing option on a contract type to identify a contract as enabled for intercompany billing. This option permits editing of the internal billing options of contracts of that contract type. These internal billing options include the attributes required to create the intercompany payables invoice such as expenditure type, expenditure organization, receiver project, receiver task, and the provider business unit.
Select the interproject billing option on a contract type to identify a contract as enabled for interproject billing. This option permits editing of the internal billing options of contracts of that contract type. These internal billing options include the attributes required to create the interproject payables invoice such as expenditure type, expenditure organization, receiver project, and the receiver task.
Review and update the customer contract management business function options to control the processing of interproject billing. This table lists the internal billing options that must be defined for the contract business unit.
|
Feature Name |
Description |
|---|---|
|
Invoice Numbering Method |
|
|
Invoice Batch Source |
Specify the invoice batch source for the interproject contract invoices that are transferred to Oracle Fusion Receivables. |
After you create an internal contract, link a contract line to the receiver project and task. This allows for the cross-charge transactions that are charged to the project and task to be billed from the provider business unit to the receiver business unit.
By default, the receiver project is also the associated project for the contract line, and you cannot add another associated project or change the associated project for that contract line. However, the associated task and receiver task can be different, so you can select another associated task for the project if necessary.
The receiver project must have the same legal entity as the internal customer.
Note
Only one receiver project can be linked to a contract line. The intercompany invoice generation process automatically groups invoice lines by the contract lines. Interproject invoices have a fixed format.
Using the Specify Customer Contract Management Business Function Properties task, available by navigating to Setup and Maintenance work area and searching on the task name, you can specify a wide variety of business function settings for customer contracts in a specific business unit. The selections you make for these business functions impact how Oracle Fusion Enterprise Contracts behaves during contract authoring.
Using the Specify Customer Contract Management Business Function Properties task, manage these business function properties:
Enable related accounts
Set currency conversion details
Manage project billing options
Set up the Contract Terms Library
The setup options available for the Contract Terms Library are applicable to both customer and supplier contracts, and are described in the business unit setup topic for the Contract Terms Library. That topic is available as a related link to this topic.
Contract authors can specify bill-to, ship-to, and other accounts for the parties in a contract. Enable the related customer accounts option if you want accounts previously specified as related to the contract party to be available for selection.
If your organization plans to transact project-related business in multiple currencies, then select the multicurrency option. This allows a contract author to override a contract's currency, which defaults from the ledger currency of the business unit. It also enables the contract author to specify currency conversion attributes to use when converting from the bill transaction currency to the contract currency and from the invoice currency to the ledger currency.
In the Bill Transaction Currency to Contract Currency region, enter currency conversion details that will normally be used, by all contracts owned by this business unit, to convert transaction amounts in the bill transaction currency to the contract currency. Newly created contracts contain the default currency conversion values, but you can override the values on any contract, if needed.
In the Invoice Currency to Ledger Currency region:
Enter invoice transaction conversion details if the invoice and ledger currencies can be different.
Enter revenue transaction conversion details if the revenue and ledger currencies can be different for as-incurred and rate-based revenue.
The options available for selection in the Project Billing region control the behavior of project invoicing and revenue recognition for contracts with project-based work.
Project billing can behave differently for external contracts (customer billing) or intercompany and interproject contracts (internal billing).
Set these options, which apply to all contracts:
Select the Transfer Revenue to General Ledger option if you want to create revenue accounting events and entries, and transfer revenue journals to the general ledger. If this option is not selected, then revenue can still be generated, but will not be transferred to the general ledger.
Indicate if a reason is required for credit memos that are applied to invoices.
There are two sets of the following options, one for customer billing and a second for internal billing:
Select an invoice numbering method, either Manual or Automatic. The invoice numbering method is the method that Oracle Fusion Receivables uses to number its invoices, upon release of draft invoices from Project Billing.
If the invoice numbering method is Manual, then select an invoice number type, which sets the type of Receivables invoice numbers that are allowed. Valid values are Alphanumeric and Numeric.
If the invoice numbering method is Automatic, then enter the next invoice number to use when generating Receivables invoice numbers.
Select the Receivables batch source to use when transferring invoices to Receivables.
Set this option only for customer billing:
Indicate if you want contract authors to manually enter the Receivables transaction type on the customer contracts they create.
You can specify a wide variety of Contract Terms Library settings for either customer or supplier contracts within each business unit, by using either the Specify Customer Contract Management Business Function Properties or the Specify Supplier Contract Management Business Function Properties tasks. These tasks are available by navigating to the Setup and Maintenance work area and searching on the task name.
For the Contract Terms Library in each business unit, you can:
Enable clause and template adoption.
Set the clause numbering method.
Enable the Contract Expert feature.
Specify the layout for printed clauses and contract deviation reports.
If you plan to use clause adoption in your implementation, then set up the following:
Specify a global business unit
You must designate one of the business units in your organization as the global business unit by selecting the Global Business Unit option. This makes it possible for the other local business units to adopt and use approved content from that global business unit. If the Global Business Unit option is not available for the business unit you are setting up, this means that you already designated another business unit as global.
Enable automatic adoption
If you are implementing the adoption feature, then you can have all the global clauses in the global business unit automatically approved and available for use in the local business by selecting the Autoadopt Global Clauses option. If you do not select this option, the employee designated as the Contract Terms Library Administrator must approve all global clauses before they can be adopted and used in the local business unit. This option is available only for local business units.
Specify the administrator who approves clauses available for adoption
You must designate an employee as the Contract Terms Library administrator if you are using adoption. If you do not enable automatic adoption, then the administrator must adopt individual clauses or localize them for use in the local business unit. The administrator can also copy over any contract terms templates created in the global business unit. The clauses and contract terms templates available for adoption are listed in the administrator's Terms Library work area.
You can set up automatic clause numbering for the clauses in the business unit by selecting Automatic in the Clause Numbering field and entering a Document Sequence Category you previously set up in the Clause Sequence Category field. If clause numbering is manual, contract terms library administrators must enter unique clause numbers each time they create a clause.
You can choose to display the clause number in front of the clause title in contracts by selecting the Display Clause Number in Clause Title option.
You must select the Enable Contract Expert option to be able to use the Contract Expert feature in a business unit. This setting takes precedence over enabling Contract Expert for individual contract terms templates.
For each business unit, you can specify the Oracle BI Publisher RTF file that serves as the layout for:
The printed contract terms
Enter the RTF file you want used for formatting the printed clauses in the Clause Layout Template field.
The contract deviations report
The RTF file you select as the Deviations Layout Template determines the appearance of the contract deviations report PDF. This PDF is attached to the approval notification sent to contract approvers.
If you do not see the internal billing features on a contract, check the attributes on the contract type. The internal billing options of a contract are only visible if the contract type is designated as either intercompany or interproject.
You can optionally associate a revenue account with a memo line.
If AutoAccounting depends on memo line, Oracle Fusion Receivables uses the revenue account segment values defined for the memo line, in combination with the rest of your AutoAccounting structure, to determine the default revenue, freight, AutoInvoice clearing, tax, unbilled receivable, unearned revenue, and receivable accounts for invoices that include the memo line.
When you create a debit memo or on-account credit memo with memo lines, Receivables uses the Revenue account from the original receivable item as the credit account. However, when you create debit memo reversals or chargebacks, Receivables uses instead the Revenue flexfield from the original receivable item as the credit account.
Use memo lines on your transactions when the item is not an inventory item. For example, you can define a memo line called Consulting Services to identify charges for consulting activities. You can assign memo lines to debit memos, on-account credits, debit memo reversals, chargebacks, and invoices.
You can use tax memo lines on transactions if your tax definition lets you enter manual tax lines on transactions. After you enter a tax memo line on a transaction, you can specify the amount of tax to assign to the transaction line.
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