Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days current, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period.
You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket. However, all Receivables aging reports include a maximum of the first seven time periods for an aging bucket. If you want to report on additional time periods, you must create custom aging reports. You can also customize the aging buckets that Receivables provides.
Aging buckets that you define here appear as list of values choices in the Print Statements and Print Collection Reports windows. You can make an aging bucket inactive by changing its status to 'Inactive' and then saving your work.
Note: If you have Multi Lingual Support (MLS), you can define aging buckets in each of your installed languages. To enter translations, select Translations from the View menu or click on the globe icon. For more information, see: Oracle Applications Concepts or the Oracle Applications User Guide.
Use the Aging Buckets and Interest Tiers window to also define interest tiers that Receivables can use during late charge calculations. Based on ranges of late days, interest tiers let you charge progressively higher interest charges or penalties on a transaction, as a payment becomes more overdue. See: Calculating Late Charges, Oracle Receivables User Guide.
To set up and use interest tiers, you must complete these steps:
Define interest tiers in the Aging Buckets and Interest Tiers window, using the procedure described below.
Assign the interest tier to a charge schedule.
See: Charge Schedules.
Select the charge schedule on a customer's profile class, or at the customer account or site profile level.
See: Setting Up Late Charges.
Enter a Name for this aging bucket or interest tier.
Choose the Type of aging bucket you are defining. You can choose from the following types:
4-Bucket Aging: Use this type to define an aging bucket with four periods. Receivables displays this aging bucket in the list of values when you print the 'Aging - 4 Buckets' report.
7-Bucket Aging: Use this type to define an aging bucket with seven periods. You can print 7-Bucket Aging reports that sort by either amount or salesperson. Receivables displays this aging bucket in the list of values when you print the 'Aged Trial Balance - 7 Buckets By Amounts' or 'Aging - 7 Buckets By Salesperson' report.
Credit Snapshot: Receivables displays this aging bucket in the list of values of the Print Collections Report window when you print the Customer Credit Snapshot report.
Interest Tier: Use this type to define a range of past due days. You assign an interest tier to a charge schedule. Receivables uses the charge schedule during late charge calculations.
Statement Aging: Use this type to define an aging bucket with five periods. This aging bucket appears on your statements. You can define as many statement aging buckets as you need, but each statement aging bucket must contain five bucket lines, or periods. Receivables displays your active statement aging buckets as list of values choices in the Print Statements window.
Enter a Sequence Number to reflect the order in which Receivables prints your aging bucket period. The default is the sequence in which you define each period (for example, the first period you define is '1', the second '2' and so on).
If you are defining an interest tier, enter the sequence of past due ranges.
Note: Receivables predefines an interest tier, called Interest Tier, with a single range from 1 to 99999.
Enter the Type of aging bucket line you are defining. Choose from the following types:
Current: Display transactions that are not yet due.
Dispute and Pending Adjustment: Display transactions that are in dispute and transactions that have pending adjustments in this line. You can only have one line of this type per aging bucket. You do not specify a Days From and Days To past due range for this type.
Dispute Only: Display transactions that are in dispute with your customer. You can only have one line of this type per aging bucket. If you do not specify a line of this type, Receivables prints disputed debit items in the appropriate aging periods. You do not specify a Days From and Days To past due range for this type.
Future: Display transactions that will be due in the future. For example, if the current date is April 5 and the due date range for this line is Days From: -10 and Days To: -5, items with a due date between April 10 and April 15 will appear in this line.
Past Due: Display transactions that have a number of days past due in the range you specify for this line. For example, if Days From is 10 and Days To is 15 for this line, Receivables displays transactions that are between 10 and 15 days past due in this line.
Note: If you are defining an interest tier, select Past Due.
Pending Adjustment Only: Display transactions that have pending adjustments. You can only have one line of this type per aging bucket. If you do not specify a line of this type, Receivables prints your transactions that have pending adjustments in the appropriate aging periods. You do not specify a Days From and Days To past due range for this type.
Important: You can enter only one Dispute or Pending adjustment line per aging bucket. For example, if you define a line type of Dispute Only, you cannot define a Pending Adjustment Only or Dispute and Pending Adjustments line within this aging bucket.
If this line type is Current, Past Due, or Future, enter the starting day number in the Days From field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '1.'
If this line type is Current, Past Due, or Future, enter the ending day number in the Days To field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '30.'
Enter the column headings to appear in your report above the bucket you are defining. You can enter a maximum of fifteen characters for your column heading.
For example, you define an aging bucket line for transactions from 1 to 30 days past due. If you enter '1 to 30 Days' in the First Column Headings field and 'Past Due' in the Second Column Headings field, your report heading will print like this:
1 to 30 Days
Past Due
Related Topics
Printing a Collection Report, Oracle Receivables User Guide
Accounts Receivable Aging Reports, Oracle Receivables User Guide
Receivables 4 and 7 Bucket Aging Reports, Oracle Receivables User Guide
If your organization assesses late charges on customers, you can use interest tiers to charge progressively higher interest charges or penalties on a transaction, as a payment becomes more overdue. See: Calculating Late Charges, Oracle Receivables User Guide.
First, you define interest tiers, which are based on ranges of late days, in the Aging Buckets and Interest Tiers window. See: Aging Buckets and Interest Tiers.
Next, define a charge schedule in which you assign values to the interest tiers that you previously defined. Receivables uses the charge schedule during late charge calculations.
When you define a charge schedule, you indicate if Receivables should use a flat amount or percentage of the overdue transaction when calculating the late charge. You can also assign effective dates, so that you can predefine charge schedules to take effect on future dates.
Enter a schedule name and description.
Select the interest tier that you want to associate with charges.
Select the schedule type:
Amount
To calculate late charges, Receivables uses a flat amount against overdue transactions that fall within the specified ranges.
Tip: Use the Amount charge schedule type to calculate late and penalty charges using the Charge Schedule Per Tier interest charge type.
Rate
To calculate late charges, Receivables uses a percentage of the overdue transactions that fall within the specified ranges.
Enter the effective date range for this charge schedule. You can optionally enter an end date, if you want to predefine another charge schedule for future use.
In the Tiers field, select a tier. The list of values is populated by the selected interest tier's ranges.
Tip: A charge schedule can include a single interest tier. Using a charge schedule to assign values to tiers provides you with a convenient method to update interest rates or amounts when your late charge policy changes. Otherwise, to change those values, you must update your customer profile classes.
Assign a charge value. This value is either an amount or rate, depending on your selection in the Schedule Type field.
Continue assigning a value to each tier until you have assigned values to all tiers.
To predefine a future charge schedule, return to the Interest Tier field, select a new interest tier, and enter an effective date range for the schedule.
Note: If the effective dates for two charge schedules occur within a charge calculation period, Receivables can use both rates in late charge calculations during that period. To enable this, you must select the Use Multiple Interest Rates box on the customer profile class, or at the customer account or site level. This applies to interest invoices only.
As before, assign a value to each tier in the selected interest tier.
Related Topics
Calculating Late Charges, Oracle Receivables User Guide
Receivables lets you define collectors and assign them to a profile class, or directly to a customer account or site. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers pages, and for your profile classes in the Customer Profile Classes window.
Receivables displays active collectors and their descriptions as list of values choices in the Customers pages and in the Customer Profile Classes window. Receivables does not display inactive collectors in the list of values for these windows.
You can make an existing collector inactive by unchecking the Active check box and then saving your work. If the collector you want to make inactive is associated with an active customer, Receivables displays a warning message.
Receivables integrates with Oracle Advanced Collections to provide you with a complete collections management solution. See: Managing Collections, Oracle Receivables User Guide.
Due to this integration, Advanced Collections requires that collectors defined in Receivables must also be defined as resources in Oracle Resource Manager. For existing Receivables collectors, you can create resources for use in Advanced Collections using one of two methods:
In Oracle Advanced Collections, submit the IEX: AR Collectors to Resource Collectors concurrent program.
Tip: To avoid the creation of duplicate records, submit this concurrent program only once.
See: Create Resources, Oracle Advanced Collections Implementation Guide.
Use Resource Manager to create the resource, and assign the resource a role with a role type of Collections.
See: Assign Roles and Resource Groups, Oracle Advanced Collections Implementation Guide.
For new collectors, you can create resources using Resource Manager. Next, create matching collectors in Receivables using your Receivables responsibility. See: Create Resources, Oracle Advanced Collections Implementation Guide.
Advanced Collections uses the collector that is defaulted from the profile class, or assigned directly to the customer account or site, when assigning a collector to a delinquency.
Tip: If you have purchased a separate license for Advanced Collections, then you can use Territory Manager to determine the collector and automatically populate the collector on the customer record. See: Assign Collectors, Oracle Advanced Collections Implementation Guide.
Enter a Name and Description for this collector. For example, enter the collector's first name in the Name field and full name in the Description field.
Enter a Correspondence Name and Telephone Number for this collector (optional). This information appears on your dunning letters if you enter it when formatting your dunning letters.
If you use the Credit Memo Request Approval workflow, enter the collector's employee name or select it from the list of values. Receivables uses this information to ensure that the collector is also an employee and therefore can receive workflow notifications.
Related Topics
Defining Customer Profile Classes
Receivables Collection Reports, Oracle Receivables User Guide
You can assess late charges against past due debit items for each customer, account, or site. See: Calculating Late Charges, Oracle Receivables User Guide.
The calculation of late charges is determined by your late charge policy. You can set up your policy to control various decisions, such as whether you assess late charges, and how those late charges are calculated.
To set up your organization to assess late charges, complete these steps:
Define your organization's late charge policy.
Set up your late charge documents.
Optionally define tiered interest rates.
Define your late charge policies for your various customers.
Further customize how Receivables calculates late charges for individual customers or transactions.
See: Step 5. Review Late Charge Policies at the Customer or Transaction Levels.
To indicate whether your organization assesses late charges on overdue transactions, you must select the Assess Late Charges box in the System Options window. Receivables reviews this option first, before reviewing the various aspects of your late charge policy.
In the System Options window, you also provide information to process the late charge documents you send to customers, as well as possible interest calculation alternatives for balance forward billing.
See: Transactions and Customers System Options.
You can record late charges as one of three document types:
Adjustments
Debit Memos
Interest Invoices
Follow the setup steps below to indicate how Receivables should record late charges and present them to customers. Complete this step for each organization in which you assess late charges.
If you record late charges as adjustments, then Receivables combines all interest charges relating to an overdue transaction, and creates a single late charge adjustment against that transaction.
To use this document type, complete these steps:
Define a late charge receivable activity and specify the activity's GL account.
See: Receivables Activities.
Optionally create a separate receivables activity for penalties.
Receivables creates penalties as a separate adjustment against the overdue transaction.
Select these activities during your system options setup.
If you record late charges as debit memos, then Receivables creates one debit memo per overdue transaction.
If you record late charges as interest invoices, then Receivables creates a single interest invoice per customer site and currency. The interest invoice consolidates and itemizes charges for a period, and includes details about charges for each overdue transaction.
To use either document type, complete these steps:
Define a late charge batch source with a type of Imported.
Receivables creates a debit memo or interest invoice batch using the Invoice API.
For debit memos, define a transaction type with a class of Debit Memo.
For interest invoices, define a transaction type with a class of Invoice.
Specify the Receivable and Revenue accounts. Receivables uses these accounts instead of AutoAccounting when generating late charges.
Tip: Use a name and description to clearly indicate that this transaction type is used only for late charges.
Select the interest invoice transaction type or debit memo charge transaction type (depending on which document you want to use), and late charge batch source during your system options setup.
Note: Receivables treats interest invoices and debit memos as regular transactions, so tax may be calculated.
You can customize late charges for both interest and penalties by creating interest tiers and tying those tiers to a charge schedule:
Use the Aging Buckets and Interest Tiers window to define a set of interest tiers based on ranges of late days.
Assign amounts or percentages to interest tiers in the Charge Schedules window.
See: Charge Schedules.
You control how late charges are calculated by defining late charge policies in the Customer Profile Classes window. You can define a different late charge policy per customer profile class.
When you assign a customer profile class to a customer, the late charge policy is defaulted to the customer account, but you can change those values. You can also define a late charge policy at the site level.
To define a late charge policy, navigate to the Customer Profile Classes window, query or enter a new customer profile class, and set the options described below. Use both the Late Charge Profile and Profile Class Amounts tab to define a late charge policy:
On the Late Charge Profile tab, enable the assessment of late charges by selecting the Enable Late Charges box.
To assess late charges, you must select both the Assess Late Charges system option and this Enable Late Charges box.
Decide how Receivables should calculate late charges. Select one of three methods:
Average Daily Balance
Calculate late charges based on the average daily balance of overdue invoices.
Use this calculation method if you are sending balance forward bills to your customers. See: Balance Forward Billing, Oracle Receivables User Guide.
Late Payments Only
Calculate late charges based on the number of days between the payment due date and the actual payment date. Receivables uses the paid amount as the overdue invoice amount when calculating the late charge.
Overdue Transactions Only
Calculate late charges for transactions, based on the number of days a payment is late when you submit the Generate Late Charges program.
Overdue Transactions and Late Payments
Calculate late charges on both overdue transactions and late payments. This option levies the largest late charge amount on a customer.
For example, your organization calculates late charges on the 15th and 30th of each month. Your customer has an overdue invoice of $100 that falls due on November 16:
On November 30, you run the Generate Late Charges program.
Receivables calculates late charges for this overdue invoice.
On December 10, your customer pays the invoice.
On December 15, you run the Generate Late Charges program again.
Receivables assesses further charges for the additional 10 days that the payment was overdue.
Decide how Receivables should handle credit items and disputed transactions when calculating late charges:
Select the Credit Items box to have credit items, such as unapplied or on-account receipts, or on-account credits, reduce the total overdue amount. Selecting this option reduces the late charge.
Select the Disputed Transactions box to include disputed transactions in the total overdue amount. Selecting this option increases the late charge.
Indicate how you would like to present late charges to customers assigned with this customer profile class. You can record late charges as one of three document types:
Adjustment
Receivables calculates late charges as an adjustment against the overdue transaction.
If you levy penalty charges, then Receivables creates two adjustments.
If you selected the Credit Items box in the previous step, then credit items reduce the outstanding overdue amount during late charge calculations.
Debit Memo
Receivables creates one debit memo per overdue transaction.
If you levy penalty charges, then Receivables includes a separate line for penalty charges.
If you selected the Credit Items box in the previous step, then credit items reduce the outstanding overdue amount during late charge calculations.
Interest Invoice
Receivables creates a single interest invoice per customer site and currency. The interest invoice consolidates and itemizes charges for a period, and includes details about charges for each overdue transaction.
If you levy penalty charges, then Receivables includes a separate line for penalty charges.
If you selected the Credit Items box in the previous step, then Receivables calculates negative charges on existing credit items, and includes those negative charges as lines on the interest invoice.
If you record late charges as debit memos or interest invoices, then select a payment term to indicate the debit memo or interest invoice's due date.
Note: If balance forward billing is enabled, then this value defaults from the payment term on the balance forward bill.
Select message text to print comments on the debit memo or interest invoice.
See: Standard Messages.
Select the interest calculation formula:
Flat Rate
Use a flat rate to calculate the late charge amount. Receivables ignores the number of days that a payment is overdue. The formula is:
Amount Overdue * (Interest Rate/100)
Simple
Calculate late charges on overdue transactions only. The formula is:
Amount Overdue * (Interest Rate/100) * (Number of Days Late/Number of Days in Period)
Compound
Calculate late charges on the sum of overdue transactions and prior late charges. The formula is:
(Amount Overdue + Prior Late Charges) * (Interest Rate/100) * (Number of Days Late/Number of Days in Period)
Select the interest calculation period:
Daily
Receivables determines the number of days that a payment is overdue to the exact day. For example, if a transaction is 45 days past due, then Receivables calculates late charges based on 45 days.
Monthly
Receivables determines the number of days that a payment is overdue by rounding up to the nearest month. For example, if a transaction is 45 days past due, then Receivables calculates late charges based on 60 days.
Enter the number of days in the interest period. Receivables uses this number when calculating late charges.
Typical values are either 30 or 365 (to represent either a monthly or an annual interest period), but you can enter any value.
Enter the number of receipt grace days after a transaction's due date before late charges will be calculated.
However, after the grace days expire, Receivables calculates the number of days overdue using the original due date.
Indicate if you want transactions that were assessed late charges to be put on hold from future late charge calculations:
Yes
After Receivables assesses late charges on a transaction, that transaction is exempt from future late charge calculations.
No
An overdue transaction will be subject to late charges as long as the transaction remains unpaid.
This option applies only when charges are calculated using the Overdue Transactions Only or Overdue Transactions and Late Payments calculation method.
Optionally enter a charge beginning date, which indicates when to start assessing late charges on customers assigned to this customer profile class.
Use the Use Multiple Interest Rates box to indicate which interest rates Receivables will use when calculating late charges for interest invoices. Use this check box if the late charge period spans multiple periods as defined in the charge schedule:
Select this box to calculate late charges by first multiplying the number of days each rate was effective by the effective interest rate, and then adding all results.
To use only the interest rate that was effective on the invoice due date, leave this box unchecked.
You define interest tiers and related charge schedules, so that Receivables can use different interest rates depending on how late an overdue transaction is. See: Step 3. Define Interest Tiers and Charge Schedules.
Define profile class amounts per currency.
Important: If you do not assign an interest rate to a currency, Receivables does not calculate late charges for past due items in that currency. See: Currencies Without Rates, Oracle Receivables User Guide.
On the Profile Class Amounts tab, use the Minimum Customer Balance and Minimum Invoice Balance fields to indicate whether late charges (not penalties) should be assessed against a customer account or invoice. Receivables assesses late charges if the minimum customer and invoice balances are exceeded.
Define these values as either an amount or percentage of the total overdue amount.
Use the Minimum Charge Per Invoice and Maximum Charge Per Invoice fields to establish limits on whether Receivables will record late charges for an invoice. Receivables assesses late charges provided that the total late charge amount falls within this range.
These values are per calculation period, and ignore any penalties that may already be levied on a customer.
Use the Interest Charge Type, Value, and Charge Schedule fields to indicate how Receivables calculates late charges on overdue transactions. For the charge type, select:
Fixed Amount
Receivables uses the value you specify in the Value field during late charge calculations. This amount does not change as the overdue transaction ages.
Fixed Rate
Receivables uses the interest rate you specify in the Value field during late charge calculations. This rate does not change as the overdue transaction ages.
Charge Schedule Per Invoice
Receivables uses a charge (amount or percentage) for each invoice based on the schedule you specify in the Charge Schedule field. The application applies the charge assigned to each tier to all the invoices in that tier to calculate the total charge amount. For example, if there are two invoices, INVOICE01 and INVOICE02, in a tier and the charge specified for the tier in the charge schedule is an amount of $10, then Receivables calculates the total charge amount as dollar 20.
Charge Schedule Per Tier
Receivables uses a fixed charge (amount) for all the invoices in a tier based on the schedule you specify in the Charge Schedule field. The fixed charge is prorated between the invoices based on the amount due.
Use the Penalty Charge Type, Value, and Charge Schedule fields to indicate how Receivables calculates penalties. Penalties are optional and are calculated separately from late charges. For the charge type, select:
Fixed Amount
Receivables applies the flat fee that you specify in the Value field, in addition to late charges.
Fixed Rate
Receivables calculates the penalty as a fixed percentage of late charges.
Charge Schedule Per Invoice
Receivables uses a penalty charge (amount or percentage) based on the schedule you specify in the Charge Schedule field.
Charge Schedule Per Tier
Receivables uses a fixed penalty charge (amount) for all the invoices in a tier based on the schedule you specify in the Charge Schedule field. The fixed charge is prorated between the invoices based on the amount due. For example, if there are two invoices INVOICE01 and INVOICE02 each with an amount due of $ 100 in a tier, and the fixed charge specified for the tier in the charge schedule is an amount of $10, then Receivables calculates the total charge amount as $10. The application then prorates the total charge between the two invoices as $5 each.
Use the Late Charges tab at the customer account or site levels to review late charge setup details defaulted from the customer profile class. You can change any setup option at either the account or site level.
See: Adding and Updating Account Late Charges, Oracle Receivables User Guide and Adding and Updating Account Site Late Charges, Oracle Receivables User Guide.
Optionally set the AR: Use Statement, Dunning, and Late Charges Site Profiles profile option to control which account site's late charge setup is used by the Generate Late Charges program. See: Adding and Updating Account Site Late Charges, Oracle Receivables User Guide.
If you normally charge late charges for your customers' past due debit items, but you want to exclude a specific debit item from late charge calculations, select the Exempt from Late Charges box in the Transactions window for that item.
Or, exclude a whole class of transactions by selecting the Exclude from Late Charges Calculation box on the transaction type. See: Transaction Types.
Define statement cycles to determine when to send statements to your customers. You enter statement cycles when you define or modify individual customer and site profile classes in the Customer Profile Classes window.
If a customer site is defined as a statement site, Receivables generates a single, consolidated statement for all of this customer's transactions. This statement is sent to this statement site. If you have not defined a statement site for a customer, Receivables creates statements for each customer site to which you have assigned a Bill-To business purpose and for each credit profile that has the Send Statements parameter set to Yes.
You choose a statement cycle when you print your statements. Active statement cycles appear as list of values choices in the Print Statements and Customer Profile Classes windows. Statement cycle dates appear as list of values choices in the Print Statements window.
You can disable a statement cycle by unchecking the Active box, and then saving your work.
Enter a Name and Description for this statement cycle.
Enter the Interval for this statement cycle to indicate how often Receivables will generate your statements. You can choose Weekly, Monthly, or Quarterly.
Select an operating unit.
Enter Statement Dates for this statement cycle. Receivables uses the statement date to determine past due items and calculate late charges.
To prevent Receivables from printing a statement on a specific statement date, check the Skip box.
Note: The Date Printed field displays the last date you printed statements from the Print Statements window for each statement date within a statement cycle. Receivables does not display a printed date for statement dates that you have either elected to skip or have not yet selected for a statement submission.
Receivables populates this field only if you print statements for all customers who are assigned to this statement cycle.
Related Topics
Statements, Oracle Receivables User Guide
Sample Statement, Oracle Receivables User Guide
Printing Statements, Oracle Receivables User Guide
Statements (print parameters, column headings), Oracle Receivables User Guide