This chapter covers the following topics:
|Oracle General Ledger||Items such as accruals, accrual adjustments, and discounts are tracked in Oracle General Ledger. Once the integration with Oracle General Ledger is complete you can track items such as offer-related accruals, claims or deductions with promotional accruals or earnings settled by credit memo or check.|
|Oracle Advanced Pricing||Advanced options, which is an Oracle Advanced Pricing feature, enables you to define groups of modifiers.
Modifiers enable you to set up price adjustments (for example, discounts and surcharges), benefits (for example, free goods, coupons) and freight and special charges.
Also, all offers types except scan data, net accrual and lumpsum are stored as modifiers in Advanced Pricing. This includes accrual and off invoice offers.
|Oracle Costing||Oracle Costing provides information on the actual Cost of Goods Sold. This information is used for calculating the promotional return on investment.|
|Oracle Discoverer||Oracle Discoverer is a tool that you can access from Oracle Trade Management. Depending upon how Oracle Discoverer is implemented in your organization, you can use it as either a query tool for extracting customer information from the database, or as a page with predefined reports that you can run.|
|Oracle Inventory||Oracle Trade Management integrates with the product and product category definitions in Oracle Inventory. All the modules in Oracle Trade Management use these products and product definitions.|
|Oracle iStore||The Funds Accrual Engine fetches information from all ordering channels including Oracle iStore. Therefore, in the Budgets module, you can track any accrual offer that applies on Oracle iStore.|
|Oracle Marketing||You can associate campaigns, programs, and events created in Oracle Marketing with offers and budgets in Oracle Trade Management.|
|Oracle Partner Management (PRM)||Fund requests related to Special Pricing, Soft Funds, and Referrals, created in Oracle Partner Request are sourced from budgets in Oracle Trade Management. You can specify the budget source as a profile value. Offers and claims for PRM flows are automatically created in Oracle Trade Management; these claims are settled by the claims user.|
|Oracle Payables||Promotional payments related to Oracle Trade Management can be made and adjusted through checks in Oracle Payables. Budgets and offers are updated with the payment information.|
|Oracle Receivables||When customers make payments, the payment information is updated in Oracle Trade Management. When customers take deductions or pay in excess, Deductions and Overpayment claims are automatically created in Oracle Receivables and passed on to Oracle Trade Management.|
|Oracle Task Management||Oracle Trade Management integrates with Oracle Task Management for:
|Oracle Trading Community Architecture (TCA) - Data Quality Management (DQM)||During Chargeback and Third Party Accrual data processing, information about end customers such as sales, identification, and PO number is captured and stored. End-customers are created as parties and accounts in Oracle TCA. The Chargeback module integrates with the DQM application available in TCA to search for duplicate data. During Chargeback or Third Party Accrual submission, based on data checking rules that are set up in DQM, the chargeback system finds the corresponding party ID that has been set up in TCA. If the party does not exist, a new party will automatically be created in TCA.|
|Oracle Territory Management||Territories that are used in Oracle Trade Management for budget allocation, quota allocation, and defining markets and claim assignment, are created in Oracle E-Business Suite Territory Management module.|
|Oracle Order Management||Orders are created in Order Management. Reference information about the order such as product number, units, quantity, value and discount, as well as the offer details are updated in Oracle Trade Management. Budgets and offers are also updated with this information.|
|Oracle E-Business Tax Engine||The Oracle E-Business Tax Engine provides the quote of the estimated tax amount for a claim. The Oracle E-Business Tax Engine provides an estimate of taxes before transactions|
Oracle Trade Management integrates with many applications in the Oracle E-Business Suite to provide the required functionality. This chapter provides information on the mandatory prerequisites and integrations of Oracle Trade Management. It also contains information on the conditional Dependencies.
The following Oracle applications and modules provide underlying infrastructure and support to Oracle Trade Management. You must implement these dependencies before beginning an Oracle Trade Management implementation.
Oracle Human Resources
Oracle Human Resources provides the underlying technology stack, schema, and structure for Oracle Trade Management. You must implement this application before implementing Oracle Trade Management. For more information, see the Oracle HRMS Implementation Guide.
Oracle Inventory is the repository for products or collateral used in conjunction with Oracle Trade Management promotions. It is also used by the ROI Calculator. Integration with this application enables you to create and execute Accrual offers, Off-invoice offers, and Budgets. This application is not required for Lump sum and Scan Data offers.
Oracle General Ledger
Oracle General Ledger enables you to post transactions to General Ledger and track accruals, accrual adjustments, and discounts. By integrating Oracle Trade Management with Oracle General Ledger, you can track:
Off-invoice promotion expenses
Claims or deductions with promotional accruals or earnings, which are settled by credit memo or check
For more information, see the Oracle General Ledger User Guide..
You can optionally integrate certain applications with Oracle Trade Management to extend and enhance the product functionality. Based on your business requirements, you can integrate some or all of the following Oracle E-Business Suite applications. The setups are partial and are limited to the functions necessary for Oracle Trade Management to function as required.
Account Derivation Rules
Implement Oracle Subledger Accounting to define your own account derivation rules for dynamically deriving Oracle General Ledger account codes.
Integrate Oracle Trade Management with Oracle Receivables to manage and settle claims by credit, and manage and settle deductions and overpayments. For more information, see the Oracle Receivables User Guide.
Integrate Oracle Trade Management with Oracle Payables to settle claims by check. For more information, see the Oracle Payables User Guide.
Advanced Pricing provides the offer logic. Price lists and offers that are created in Oracle Trade Management, are stored in the Advanced Pricing schema.
Integrate Oracle Trade Management with Advanced Pricing to create and execute Accrual offers, Off-invoice offers, and Budgets. This application is not required for Lump sum and Scan Data offers. For more information, see the Oracle Advanced Pricing Implementation Manual.
Oracle Order Management
Integrate Oracle Trade Management with Order Management to execute offers, track accruals, update budgets, and create return material authorizations (RMAs) to settle claims. For more information, see the Oracle Order Management Implementation Guide.
Oracle E-Business Tax Engine
Integration with the Oracle E-Business Tax engine is recommended if your business operates in a country where you must charge taxes, or if you have business units that are subject to taxes. The claims module in Oracle Trade Management provides the ability to obtain the estimated tax quote. This minimizes errors arising out of tax amount mismatches that result in Payables invoices being rejected.
Oracle Partner Management (OPM)
Integrate Oracle Trade Management with Oracle Partner Management to support, execute, or fund some key partner flows such as Special Pricing, Soft Funds, or Referral flow. This integration provides the ability to automatically generate offers and claims in Oracle Trade Management. For more information, see the Oracle Partner Management Implementation and Administration Guide.
Data Quality Management (DQM)
Data Quality Management is a tool from the trading community architecture (TCA) group that is used to check for potential duplicate customer, contact address, and contact points for a given customer, contact, or address. See Set Up DQM Integration for more information.
Oracle Trade Management depends on Oracle Costing to get the Cost of Goods for a product. This Cost of Goods is used to calculate the Return On Investment (ROI) in Offer Forecast. The Cost of Goods is obtained by calling the API CST_COST_API.get_item_cost with the Product and the Organization ID. For more information, see the Oracle Trading Community Architecture Implementation Guide..
Oracle Collections leverages Trade Management to track invoice disputes (tracked as claims in Oracle Trade Management.) For more details, see the Oracle Collections User Guide.
Resource Manager- This component enables you to use application resources regardless of where they are created. Acting as a central repository, Resource Manager enables the creation of various types of resources, groups, teams, and roles. You can import resources such as employees, suppliers, parties, or partners, created in other applications. Once imported, the resource becomes available for other applications to use. For more details, see the Oracle Trade Community Architecture Technical Implementation Guide.
Task Manager- Task Manager provides a mechanism for your application to respond to customer needs in a timely manner. Using Task Manager you can create, assign, manage, sort, and prioritize tasks. If implementing task transition rules, after defining a rule and assigning it an appropriate responsibility, set the profile Task Manager: Default Task Status. If no rules are assigned to a responsibility, all statuses will be displayed in the Status List of Values (LOV). In this case, the Task Manager: Default Task Status does not need to be set.
Interaction History- provides a common framework for capturing and accessing all interaction data associated with customer contact. Acting as a central repository, it provides a consistent API for tracking all customer interactions within the Oracle E-Business Suite. For example, if using the tracking mechanism within Web marketing, each response (each time a customer responds to a Web ad) is tracked in Interaction History. For more details, see the Oracle Common Application Calendar Implementation Guide
Notes and Note Types- Use the Notes module to create, maintain, and share notes related to customers, opportunities, service requests, and other business objects. Setting up note types is also optional. Although Oracle Notes comes with a set of predefined note types, you can create customized note types.Oracle Common Application Calendar Implementation Guide
Assignment Manager- The Assignment engine determines the best resource to be assigned to tasks based on availability and skill set. This engine is used by the various CRM modules to automatically assign tasks to a resource or a group of people.
Territory Manager- Territory Manager provides an infrastructure to define territories based on flexible criteria, such as geography, zip code, area code. This engine creates automatic assignment of transactions across the entire CRM suite. For example, territories are used in Oracle Trade Management to automatically assign claims to owners (Oracle Trade Management users) based on criteria defined in the territory setup. See Oracle Territory Manager documentation for more information. Oracle Territory Manager Implementation Guide
Oracle Product Lifecycle Management (PLM) - PLM provides a product hierarchy located in the OLTP schemas. This hierarchy is maintained by the user in a product catalog and is expanded to a de-normalized table (designed for efficient traversal) by the Oracle Sales and Marketing applications. Oracle Product Lifecyclye Management Implementation Guide
Oracle Sales Oracle Sales, an application designed for sales representatives, sales managers, and executives, provides a complete set of tools allowing sales teams to manage the sales cycle from beginning to end. Sales Online features include comprehensive customer management, Lead and opportunity management, forecasting, quote generation, order placement, and sales methodologies. Oracle Sales Implementation Guide
Oracle Telesales (OTS) - OTS is an application designed for inside sales professionals, inbound telesales agents, or outbound telemarketing agents. OTS offers a multi-channel selling solution that manages leads, opportunities and forecasts across all sales channels: over the phone, the Web or through mobile devices. It provides a set of tools to help the inside sales team manage the sales cycle from prospecting for customers to booking the order. Oracle Common TeleSales Implementation Guide.
Oracle Interaction Center (Scripting)- Oracle Interaction Center is an integrated series of products designed for consistent and effective handling of customer interactions. It provides sophisticated routing, media queuing and enhanced screen pop integration. Interaction center reduces the cost, complexity and risk associated with deploying applications. Interaction Center includes modules such as Advanced Inbound, Advanced Outbound, email Center, Interaction Center Intelligence, Scripting, and Universal Work Queue.
Oracle Scripting is a set of tools to facilitate the process of gathering of information through guided decision flows, consisting of text, questions, and answers. Oracle Scripting is composed of several components: the Script Author, the Scripting Engine, the Scripting Administration console, and the Survey Administration console. Oracle Interaction Center Intelligence Implementation Guide.
Descriptive flexfields (DFFs) allow you to extend Oracle applications to meet business requirements without the need for programming. You can use descriptive flexfields in the Oracle Trade Management UI to gather information , important and unique to your business, that would not otherwise be captured.
You can customize a descriptive flexfield to capture just the information your organization needs. The flexfield structure can depend on the value of a context field and display only those fields (segments) that apply to the particular type of context. For example, if the asset category were "desk, wood", your descriptive flexfield could prompt for style, size and wood type. If the asset category were "computer, hardware", your flexfield could prompt for CPU chip and memory size. You can even add to the descriptive flexfield later as you acquire new categories of assets.
Oracle Channel Revenue Management uses the following descriptive flexfields, which provide customizable expansion space on a page:
|Application||DFF Name||Table Name|
|Marketing||List Lines DFF for non QP based offers||FND_DESCRIPTIVE_FLEXS_VL|
Note: The flexfields, QP_LIST_HEADERS and QP_LIST_LINES, are defined in Oracle Advanced Pricing. See the Oracle Advanced Pricing Implementation Guide for more information.
See the Oracle E-Business Suite Flexfields Guide for information on setting up flexfields.
See Oracle HRMS Configuring, Reporting, and System Administration Guide for more information.
Use the following procedures to set up HRMS for Oracle Channel Revenue Management:
Note: Complete all of the following procedures only if you are implementing Oracle Trade Management as a standalone application.
Shared HRMS license: Create employees using CRM Foundation.
Responsibility: CRM Administrator
Navigation: CRM > Resource Manager: Maintain Resources> Resources
Full HRMS license: Create employees using HRMS.
Responsibility: HRMS Manager
Navigation: People > Enter and Maintain
The business group is the largest organizational unit representing the enterprise. A business group can correspond to a company or corporation, or to a holding or parent company in large enterprises. It can be an organization with a physical location, or an abstract legal entity that employs people assigned to work in organizations beneath it.
Multiple sets of books can share the same business group if they share the same business group attributes including HR flexfield structures.
For more information on business groups, see Oracle Applications Multiple Organizations Implementation Guide.
Set up the Business Group as the first organization; all other organizations belong to the business group. The business group includes internal organizations such as branches, departments or sections in which employees work. Classify an organization as an HR Organization to enable the assignment of employees to an internal organization.
To create Organizations for work structures, log on with the US Super HRMS Manager Responsibility .
Notes: You can proceed with this field only if the classification that you selected has additional information.
Use the profile, HR: Security Profile, to define the security level for specific Oracle Channel Revenue Management responsibilities. This profile enables access (based on responsibility) to a single business group. For information on assigning the security profile, see the Oracle HRMS Configuring, Reporting, and System Administration Guide.
Use this procedure to create a Legal Entity, Operating Unit, and HR Organization. Oracle Trade Management supports a Legal Entity and Operation Unit definition through various flows and screens. For additional information, see the Oracle HRMS Configuring, Reporting, and System Administration Guide.
To create a new Business Unit, log in to Oracle with the appropriate HRMS Responsibility. For information on creating a business unit, , see the Oracle HRMS Configuring, Reporting, and System Administration Guide.
Org-striping restricts certain transaction types and setups to specific operating units within an organization. Org-striping can be applied to:
Transactions types: Transaction types such as customer parties and accounts, are visible to all operating units within an organization. Other transaction types are restricted to a particular operating unit. For example, orders, transactions, receipts, and checks can be org-striped.
Setups: Setups such as customer account sites, and vendor sites can also be org-striped.
The org-striped transactions and setups that are used in Oracle Trade Management are listed in the following table:
|Trade Management Module||Transactions/Setups|
|Offers||Oracle Partner Relationship Management and Oracle Marketing integrations|
|Quota allocation||Territories and historical sales usage in quota allocation|
|Account Manager Dashboard||Display and use of sales data
Display of budget data
|Budgets||Fully accrued budget
Territories and historical sales usage in quota allocation
|Claims||Setups such as claim types and reasons.
Approval rules, claim settlement methods, and claim summary view.
Creation, update, and settlement of claims, debit claims, deductions, and overpayments.
|Indirect Sales Management||Usage of price lists in chargeback transactions
Third Party Accrual pricing simulation
|Supplier Ship and Debit||Creation of ship and debit requests and ship and debit batches. Supplier trade profile setup.|
|Supplier Trade Profile Setup||Creating supplier trade profiles|
The non org-striped transactions and setups in Oracle Trade Management include the basic administration setups such as custom setups, locking and mandatory rules, and user status.
You can assign multi-org responsibilities to a selected Oracle Trade Management responsibility. This displays the appropriate Business Unit when using that responsibility.
See Oracle Applications Multiple Organizations Implementation Guide for more information.
Accruals, accrual adjustments, and discounts are tracked in Oracle General Ledger (GL). However, accounting entries for these are first created in Oracle Subledger Accounting, corrected, and balanced before being posted to Oracle General Ledger. Oracle Subledger Accounting is an intermediate step between each of the subledger applications and Oracle General Ledger. Examples of subledger applications are Oracle Channel Revenue Management, Oracle Receivables, and Oracle Payables.
Oracle Subledger Accounting creates the final accounting for subledger journal entries and transfers the accounting to Oracle General Ledger. It stores a complete and balanced subledger journal entry in a common data model for each business event that requires accounting. In addition, it enables you to create and store multiple accounting representations for a single business event in primary, adjustment secondary, and reporting ledgers. When you set up rules in Oracle Subledger Accounting, you can define journal line types for your subledger application’s event classes, descriptions, and accounts to store on journal entries. Oracle Subledger Accounting partitions data by subledger application, while storing the information in a common model.
In Channel Revenue Management, accounting occurs for the accounting entities of Accrual and of Claim Settlement. For accruals that occur as a result of various offers such as Accrual, Lump sum, Scan Data, Volume, and Off-invoice accounting events are raised on:
Off-invoice offer accrual creation
Paid adjustment creation using only the public API
Similarly for claim settlements, accounting events are raised after promotional earnings are associated and claim settlement initiated for the following settlement methods:
AP Invoice Settlement – Check/ Wire/ EFT/ AP Default
AR Credit Memo
AR Debit Memo.
Accounting Only (for Ship & Debit Internal Requests)
AP Debit Memo
AR Custom Settlement
AP Custom Settlement
These accounting events in turn create the following accounting entries.
When accruals occur:
Debit Sales or Expense Account
Credit Liability Account
If the off-invoice posting option is enabled, it creates the following entries when the sales order line with the offer applied has been invoiced:
Debit Sales/Expense/Charge (set up in Trade Management)
Credit Revenue (from AR)
For negative adjustments made to accruals, the following reversal entries are created:
Debit Liability Account
Credit Sales or Expense Account
When a claim or deduction is associated with promotional accruals or earnings, and the claim is being settled by credit memo, Oracle Trade Management passes the Receivables Clearing Account to Oracle Receivables and creates the following entries:
Debit Liability Account
Credit Receivables Clearing Account
When a claim or deduction is associated with promotional accruals or earnings, and the claim is being settled by check, Oracle Trade Management passes the Vendor Clearing Account to Oracle Payables and creates the following entries:
Debit Liability Account
Credit Vendor Clearing Account
These are the required default GL accounts. You can customize the way in which an entire GL accounting combination is derived or individual account segments or flexfields are derived when defining account derivation rules in Oracle Subledger Accounting.
To integrate both Subledger Accounting and General Ledger with Oracle Channel Revenue Management, complete the following procedures:
|Profile Name||Required||Level||Description and Settings|
|OZF : Show GL Accounts on Screen||No||Site
|If Yes, then General Ledger accounts are displayed on the budget, system parameters, and claim type setup pages. Oracle General Ledger postings are visible when you drill down the budget Earned column.
Example: set sales user to No and finance user to Yes.
|OZF: Common Currency for Trade Management||No||Site||Sets a common currency for use in inventory tracking.|
Application Accounting Definition - specifies the product or subledger for which you are setting up the accounting method
Journal Lines – specifies the event class, the journal line type, the conditions for the use of the journal line type, and the balance type, side and summarization,
Account Derivation Rules and Mapping Sets - specifies the derivation of accounting flexfield combinations for the journal entry lines and the conditions that determine when subledger journal entry accounts and lines are created
Journal Sources - specifies the transaction objects from which to get transaction information for the journal entry lines
The diagram below illustrates these components.
For more information, see the Oracle Subledger Accounting Implementation Guide.
Validate Application Accounting Definitions
This program validates defined event classes and event types for Channel Revenue Management. If validation fails for an event class and type, accounting is not generated for it.
Transactions Objects Diagnostics
This program helps diagnose issues with transaction information in journal lines.
This program creates accounting entries for a business or accounting event. It also processes transactions lying in the Subledger Accounting interface tables. You can drill down to the transaction from the subledger journal entry that is created to verify that all is well before the accounting is transferred to GL. You can choose to run this program to create accounting in Subledger Accounting, transfer these to General Ledger interface tables, and post them into General Ledger tables all in the same run.
The Posting program in General Ledger.
Refer to the Oracle General Ledger User Guidefor more information.
Accounting entries use base General Ledger accounts from Oracle Trade Management setups in the following order:
Note: This is informational information. You do not have to set these up now.
Budget set up
Budget category set up
System parameter set up
However, if you are resolving a claim in Trade Management, accounting entries use base General Ledger accounts from Oracle Trade Management setups in this order:
System Parameters. See Set System Parameters.
Budget details. See the Oracle Channel Rebate and Point-of-Sale Management User Guide for more information.
Alternately, if you define your own account derivation rules in Oracle Subledger Accounting, then these base accounts are configured dynamically.
To verify that General Ledger periods are open follow these steps:
Log on with General Ledger User responsibility.
Enter fiscal years, period number or leave blank.
Click find and verify data.
Sequence assignment is mandatory for the credit memos, debit memos, chargebacks, and invoices that Oracle Trade Management interfaces to Oracle Receivables and Oracle Payables. Oracle recommends verifying the sequence assignments before using them in Oracle Trade Management.
You can verify document sequences, define or query document categories, and assign document sequence to categories.
To verify the sequence assignment, log in with a System Administrator responsibility and follow these steps:
Navigate to Application : Document.
Verify the data in the Define, Categories, and Assign Documents screens addresses your business needs.
Validate if proper document sequencing exists for Oracle Receivable credit memos, debit memos, and chargeback.
Make sure the Oracle Payables invoices and Order Management orders are valid.
Save your work.
Whether Oracle Trade Management should integrate with General Ledger.
Whether General Ledger should create entries for off-invoice discounts
Default General Ledger accounts
General Ledger balancing segment
General Ledger date type
In System Parameters, the ledger and the accounting method Trade Management uses are already designated. The ledger specified here defines the functional currency. An equivalent functional currency is created in the background when Oracle Trade Management users work with other currencies to perform tasks such as creating budgets and offers.
Note: General Ledger accounts (Sales Expense, Accrual Liability, Receivables Clearing, and Vendor Clearing) for Oracle Trade Management should exist before you set up System Parameters.
To set up System Parameters, log in to Oracle Trade Management and follow these steps:
Navigate to Trade Management: Administration > Trade Management > Setup > System Parameters.
Click the search icon for an Operating Unit and select the appropriate Operating Unit.
Select the Post to GL check box.
Important: You must select this check box to integrate Trade Management with General Ledger. If not selected, the two applications will not be integrated.
Select the Create GL Entries for Off-Invoice Discounts check box if applicable.
Create the following General Ledger entries:
Debit Sales/Expense/Charge (Trade Management)
Credit Revenue (Oracle Receivables)
Select a General Ledger date type.
Click the Search icons for the account fields and select the appropriate accounts.
Post to GL: Select this check box to integrate Oracle Trade Management with General Ledger. Else, the two applications will not be integrated.
Create GL entries for Off-invoice discounts: When selected, the General Ledger entries you previously selected are created.
Debit Sales/Expense/Charge (Oracle Trade Management)
Credit Revenue (Oracle Receivables)
Setting up currency conversion rate types is an optional step, but is required if you plan to set up daily conversion rates. Set up currency conversion rates after setting up currency conversion rate types.
See the Oracle General Ledger User's Guide for more information.
In Oracle Subledger Accounting, enable the Calculate Gain or Loss currency conversion option for Oracle Channel Revenue Management so Subledger Accounting can perform the required currency conversions and calculations for the reporting and secondary ledgers in case of multi-currency transactions.
For information on how currency conversion is used in processing accruals and claims when using multiple currencies, see the Oracle Accounts Receivables Deductions Settlement User Guide.
To report account balances in multiple currencies, set up additional ledgers for each reporting currency. Your primary ledger should reflect your functional currency. Each reporting ledger should use one of your reporting currencies. See the Oracle General Ledger User Guide for the procedure for creating a ledger.
Oracle Channel Revenue Management integrates with Oracle Receivables to manage and settle deductions and overpayments. The following steps describe the flow of information between the two applications.
Payment is received from a customer in Oracle Receivables.
Cash is applied with discrepancies in Oracle Receivables.
An overpayment or deduction is created in Oracle Trade Management.
An owner is assigned to the deduction or overpayment in Oracle Trade Management.
The deduction or overpayment is researched in Oracle Trade Management.
The settlement is approved in Oracle Trade Management.
Transactions are created and receipts are adjusted in Oracle Receivables.
By integrating Oracle Receivables with Oracle Trade Management, the following settlement methods are automated:
Credit memo-on account
To integrate Oracle Receivables with Oracle Trade Management, complete the following procedures:
OZF: AR Credit Method for Rule
OZF: AR Credit Method for Installment
OZF : Select Write-off Activities Based on GL Balancing Segments
OZF : Automate Deduction/Overpayment Settlement
OZF : Automate RMA Settlement
OZF : Allow Un-Related Ship To on Claims
OZF : Modifier to adjust unit price for RMA settlement
Claim type and reason
You must define the defaults listed above in order for deductions and overpayments to be passed to Oracle Trade Management. Select the Assignment Manager check box in Oracle Trade Management System Parameters to set up territories for automatic claim owner assignment.
For instructions on defining these and other claim defaults, see Setting Up Claim Defaults in the Claims chapter.
You can set up defaults in System Parameters and in other places. The claim type and reason, if set up on the Claim Defaults page, overrides the settings for deductions and overpayments from Oracle Receivables on the System Parameters page.
Transaction types drive accounting, tax and cash applications rules. All Oracle Receivables transactions require a transaction type. For integration with Oracle Accounts Receivable Deductions Settlement, you must create transaction types for credit memos, debit memos, and chargebacks.
These transaction types and Receivable activities are mandatory in Oracle Receivables and Order Management. If you do not enter them as a claim type in System Parameters, the corresponding settlement methods will not work.
To create transaction types, see the Oracle Receivables User Guide.
Define transaction types in Accounts Receivable.
Select transaction types in System Parameters, Claim Types or Claim Source Defaults.
When a claim is settled by debit memo or credit memo, Trade Management sends the transaction details to the Accounts Receivables interface tables. The Trade Management Autoinvoice program selects these details to create transactions. The Autoinvoice program requires that transactions have a source which gathers data and also drives validations.
The transaction source also determines whether on-account credit and debit memos created through Oracle Trade Management affect sales credits.
This set up is optional because existing transaction sources can be used for Oracle Trade Management. Create a transaction source specifically for Oracle Trade Management:
For tracking purposes.
If validation requirements for credit and debit memos generated through Oracle Trade Management are different from others.
To create a transaction source for claim-related credit and debit memos, log on with Receivables Super User responsibility.
Navigation: Setup > Transactions > Sources.
Follow these guidelines to complete the Transaction Sources form:
Name: Enter a name for the transaction source
Type: Select Imported
Batch Source tab: Open the Reference Field Default Value LOV and select interface_header_attribute1
Autoinvoice Options tab: Accept the defaults
Customer Information tab: Choose ID for all options
Accounting Information tab: Choose ID or Percent for all options
Other Information tab: Choose ID or Code for all options
Sales Credit Data Validation tab: Choose ID or Percent for all options
Save your work.
Claims Aging is an optional setup that summarizes all claim amounts by customer and days due. The claims processor can use this view to determine which customer has the largest number of outstanding claims and work on those claims first.
You can configure an aging bucket in Oracle Receivables for Oracle Channel Revenue Management to use to review and report open claims. It is defined by a specific time period. Each aging bucket can have multiple bucket lines (time periods) including Current, Past Due, and Future.
Define buckets in the following order:
For a description of these see the section titled Aging Buckets in the Oracle Receivables User Guide.
If aging buckets are already defined in Oracle Receivables, you can reuse them for Oracle Channel Revenue Management. Create one specifically for Oracle Channel Revenue Management only if claim aging bucket definitions are different from others.
Oracle recommends defining buckets in the following order:
Past Due buckets
To avoid duplication of amounts on claims aging, use a consistent aging bucket type for each bucket setup. For example, to set up a claims aging bucket view, set up a complete past due setup for an aging bucket without any overlapping buckets.
Creating an Aging Bucket for Oracle Trade Management
Complete the following steps to create an aging bucket for Oracle Channel Revenue Management.
Set up an aging bucket using the instructions listed in the Oracle Receivables User Guide.
Run the cOZF: Claims Aging Populating concurrent program.
Select the aging bucket you have set up for Oracle Channel Revenue Management when you are prompted to enter a parameter.
After the bucket is created, run the OZF : Claims Aging Populating program using the bucket defined. The details are automatically available.
You can add Oracle Channel Revenue Management concurrent requests to the Oracle Receivables user responsibility. Users with Oracle Receivables responsibilities often need to run claim-related requests, and it is much easier for them to do so from within their Oracle Receivables responsibility. Also, the Oracle Receivables user does not need to be assigned a Trade Management responsibility simply to run concurrent programs.
Similarly, you can add any Oracle Receivables concurrent request to a request group that is associated to a Oracle Trade Management responsibility.
To attach Oracle Channel Revenue Management requests to Oracle Receivables user responsibility, follow these steps:
Log in with System Administrator Responsibility.
Navigate to Security > Responsibility > Request Groups
Query for Group = Receivables All.
Under the Request table, add any program used by Trade Management.
Save your work.
To add concurrent requests to the Trade Management responsibility, query for Group = Trade%.
Select the Trade Management responsibility and add the Oracle Receivables concurrent requests you need.
Save your work.
Creation of non-invoice deduction and overpayment by applying to claims. investigation.
Settlement of non-invoice deduction and overpayment by write off.
To set up receivable activity, see Receivable Activities in the Oracle Receivables User Guide.
Note: When setting up receivable activity, accept the defaults for GL Account Source and Tax Code Source. In the Activity GL Account field, select the account that will hold amounts from nontransaction-related claims while they are being investigated and click OK.
Verify Receivable Activity Set Up
Complete the following steps to verify that you have successfully set up receivable activity.
Create a receipt in Oracle Receivables and designate it for claim investigation.
Your receivable activity should be listed in the Activity column LOV.
Complete the following procedure to set up integration for claim creation for using the auto lockbox feature. This setup determines the types of unmatched remittances for which you want to create claims, and also the process to handle claims for matched remittances.
If you do not want to create deductions for credit memos, you can exclude credit memos on the system options in Oracle Receivables, so that the lockbox process does not create deductions for any short payments against credit memos.
To verify Receivables System Options, follow these steps:
Log in with the Oracle Receivables responsibility.
Navigate to Setup > System > System Options.
Open the Claims tab.
Select the Exclude Credit Memos box if you want Receivables to exclude credit memos from automatic claim creation.
For information on lockboxes refer to the section titled Lockboxes in Oracle Accounts Receivable User Guide.
For large volume claim management, lockbox integration automatically creates deductions and overpayments and uses the Quickcash feature. This reduces deduction creation time and improves deduction processing efficiency. Previously, unmatched amounts had to be handled manually. The lockbox receives payments and automatically creates a claim for any differences between the payments received and invoices. Oracle Receivables interprets the lockbox entries based on settings in the System Option and Lockbox setup windows. For more information, see Lockbox Integration in the Oracle Accounts Receivable Deductions Settlement Implementation Guide.
To use the Lockbox Integration feature, you must perform some steps in Oracle Receivables.
To set up Lockbox integration refer to the section titled Lockboxes in Oracle Accounts Receivable User Guide:
Flexfield on receivable application is passed into Oracle Channel Revenue Management as the deduction flexfield.
Invoice Transaction Flexfield and Line Transaction flexfield are used to pass information from Oracle Channel Revenue Management to Oracle Receivables for transactions such as Credit memo, Debit memo and Chargeback. These flexfields should not be modified.
For the mapping to be consistent, flexfield segments that are enabled for Receipt Application Information, Deductions, and Transaction Information must be evaluated and enabled appropriately.
Additionally, the Invoice Transaction flexfield has been seeded with a new context, CLAIM, which has the following segments:
Perform the following procedure to verify receivable application transaction flexfields.
Log on with System Administrator responsibility.
Navigation: Application > Flexfield > Descriptive > Segments.
Open the search mode.
In the Application field, enter Receivables.
In the Title field, enter Receipt Application Information.
Perform a Query
Uncheck the Freeze Flexfield Definition box.
In the Context Field Values table, under the Code column, create a new context code, for example Claim Investigation. Enter a code, name, and description.
Click Segments, and on the Segment Summary screen, enter Number, Name, Window Prompt, and Column.
Save, and close the Segment Summary screen.
Check the Freeze Flexfield Definition box.
Open the search mode.
In the Application field, enter Marketing.
In the Title field, enter Deductions.
Perform a Query
Uncheck the Freeze Flexfield Definition box.
In the Context Field Values table, under the Code column, create a new context code.
The context code must be the same as the one defined previously.
Click Segment, then enter Name, Window Prompt, and Column
Check the Freeze Flexfield Definition box.
You need to make do this setup if you are settling non invoice
To set up the write-off Limit in the Oracle Receivables application, log on with Receivables responsibility.
Navigation: Setup > System > System Options > Miscellaneous tab.
Mapping invoice reasons involves mapping a specific claim reason for chargebacks or debit memos in Oracle Channel Revenue Management to an invoice reason in Oracle Receivables. When a claim is submitted for payment processing, the invoice reason is populated automatically based on the mapping that you have created.
For example, if you have mapped the claim reason, Promotional Claims, with the invoice reason, Payment of Promotions, then this invoice reason is populated on the invoice for all claims with that particular reason.
If a claim does not have any reason, then Oracle Receivables always defaults "Invalid Claims" as the reason for chargeback transaction.
When a chargeback is created to settle a deduction, the chargeback reason must be passed from Oracle Channel Rebate and Point-of-Sale Management to Oracle Receivables for integration purposes. Optionally, credit memo reasons can also be passed from Oracle Accounts Receivable Deductions Settlement to credit memos in Oracle Receivables.
Log into Oracle Trade Management with an Oracle Trade Management User responsibility.
Navigation: Trade Management > Administration >Trade Management
Click the Admin tab to display Setup System Parameter page.
In the Claims section, select a value for the Claim reason to pass invoicing reason for chargeback and debit memos interfaced to Accounts Receivable from Oracle Trade Management.
Note: If no mapping is provided on claim reason setup, Accounts Receivable will always default “Invalid Claims” as the reason for chargeback transactions.
Auto Invoice determines which interface lines combine to form one transaction. To be included in a group, the transaction lines must match on all of the predefined mandatory attributes and on all of the optional attributes included in a grouping rule.
The grouping rule can be defined for a transaction class in:
Receivables > Setup > Transactions > Autoinvoice> Define Grouping Rules
The hierarchy for rule usage is batch source and AR system parameters.
If claims and deductions are settled by on account credit memo/debit memo/RMA, only one AR transaction is created. To ensure this, the grouping rule for transaction classes, both credit memo and debit memo, must have grouping by attribute interface_line_attribute1 set.
Accounts Payable Default Payment
See Payment Settlement Methods for detailed information on Payables related settlement methods.
Bill back requests are entered in Oracle Accounts Receivable Deductions Settlement as claims. Claims can be associated with promotional earnings and accruals. They can be settled by check, credit memo or RMA (which creates a credit memo). When the customer is paid by check, Oracle Accounts Receivable Deductions Settlement uses Open Interface Import in Oracle Payables (AP) to create a Payables invoice. The invoice is then converted to a check.
To implement Oracle Payables for Oracle Channel Revenue Management, complete the following procedures:
When settling a claim with a check, Oracle Accounts Receivable Deductions Settlement populates the Oracle Payables invoice interface tables with the Payables invoice details. A source is required for this purpose. For additional information, refer to the Oracle Payables User Guide.
Note: Select the source that you define here in System Parameters in Oracle Trade Management.
To create a source for identifying Oracle Payables invoices generated by Oracle Accounts Receivable Deductions Settlement, log in with the Payables Responsibility.
Navigation: Setup > Lookups > Payables.
Query for Type = SOURCE, and add the Source code to be used by Oracle Trade Management.
When settling a claim with a check, Oracle Accounts Receivable Deductions Settlement populates the Oracle Payables invoice interface tables with Payables invoice details. After an Oracle Payables payment term is created in Oracle Payables, it can be selected in the System Parameters setup screen in Oracle Channel Revenue Management. While populating the Oracle Payables invoice interface tables, Oracle Accounts Receivable Deductions Settlement passes this payment term to create the invoice.
For more details, see the Oracle Payables User Guide.
To verify Oracle Payables payment term set ups, log in with the Payables Responsibility.
Navigation: Setup > Invoice > Payment Terms.
Review the Payment Terms you intend to pass from Oracle Channel Revenue Management to Oracle Payables.
The interface with Oracle Payables that is used in claims integration with Oracle Payables requires reference to the tax options that are set up in the Payables system options. See the Oracle Payables User Guide for the specific steps.
To view the Oracle Payables Options, log in with Payables responsibility.
Navigation: Setup: Options > Payables Options.
Note: You can use Oracle Channel Revenue Management Trade Profiles to link customers and vendors.
Provides Promotion (offer) logic
Price lists that are created in Oracle Channel Revenue Management are stored in the Advanced Pricing schema
Offers created in Oracle Channel Rebate and Point-of-Sale Management are stored in the Oracle Advanced Pricing schema
When an offer or price list is created in Oracle Channel Rebate and Point-of-Sale Management, a call to the Oracle Advanced Pricing APIs is made.
To implement Oracle Advanced Pricing for Oracle Channel Revenue Management, complete the following procedures:
Oracle Channel Rebate and Point-of-Sale Management offers are created in Advanced Pricing as modifiers of type Promotion. Users can modify offers from within Advanced Pricing, as determined by the profile option QP: Source System Code set at either the site, application or user level.
For Oracle Channel Revenue Management, you can set this profile option to either:
Oracle Pricing: Advanced Pricing users can edit Oracle Channel Rebate and Point-of-Sale Management offers.
Oracle Marketing: Advanced Pricing users cannot edit Oracle Channel Rebate and Point-of-Sale Management offers.
Because offers typically go through an approval process, we recommend setting this profile to Oracle Pricing.
Note: Modifiers that are created in Advanced Pricing directly cannot be updated directly in Oracle Channel Rebate and Point-of-Sale management.
Oracle Accounts Receivable Deductions Settlement provides the ability to handle rebates and chargeback claims from customers and wholesaler networks for point of sale. Three types of gateways can be used to import customer information in batches: XML Gateway, EDI or WebADI.
From this data, chargebacks and third party accruals are created automatically.
You can also create special pricing requests in this functionality. Indirect Sales uses a price list to store the terms and conditions between the company (manufacturer) and its end customer for chargeback claim scenarios.
You can also use the Indirect Inventory tracking feature to track distributor inventory levels. After the preliminary inventory level is established, the inventory is updated based on order management and POS [Point of Sales] data imports. All data coming from Order management is referred to as 'Inventory In' while POS data is referred to as 'Inventory Out'. This process ensures that your customers claim only the amount to which they are entitled. Adjustments to inventory can be made manually. The Inventory data is updated on this screen based on a concurrent job.
To implement this functionality in Advanced Pricing, set the profile option QP: Return Manual Discounts to Yes, so that all adjustments (manual and automatic) are returned by the pricing engine.
Set QP: Promotional Limits Installed to Yes at the site level. This profile enables the promotional limit feature.
Set QP: Limit Exceed Action, at site, responsibility, or user levels. For this profile select one of the following settings:
Soft - Full Benefit Amount: Sends the Oracle Trade Management user a warning message when promotional limits are being violated. Although the warning appears, the order process can proceed.
Hard - Adjust Benefit Amount: Puts the order on hold when promotional limits are violated.
These settings enable the actual limit amount of each offer to have a cap amount. Oracle Trade Management passes this amount to Advanced Pricing and Oracle Trade Management as the promotional limit.
For more details, see the Oracle Advanced Pricing Implementation Guide.
Pricing formulas are defined in Oracle Advanced Pricing, and are used in Oracle Trade Management to handle complex pricing and promotion scenarios. See the Oracle Advanced Pricing Implementation Guide for the detailed procedure that describes how to define pricing formulas.
You can use pricing formulas in many different situations including the following scenarios:
When the discount values on a product fluctuate due to the price of base products, the discount amounts can be managed automatically. For example, the discounts on dairy products may vary based on the price of milk. The discount on a product may also vary depending on the territory under which the customer falls under.
|Advanced Pricing||Oracle Channel Rebate and Point-of-Sale Management offers are passed directly into the Advanced Pricing schema. Although they reside in the Advanced Pricing schema, they are executed in Oracle Channel Rebate and Point-of-Sale Management. No setups are required for this integration.|
|Channel Rebate and Point-of-Sale Management Budgets - Order Management||After an offer is applied to a sales order, an off-invoice discount or accrual adjustment is created for the order. AMS Funds Accrual Engine fetches the order (and the related offer adjustment information), ultimately updating the budget utilized column. No setups are required for this integration.|
|Oracle Accounts Receivable Deductions Settlement Claims - Order Management:||When customers return products (for any reason), they can apply a deduction or claim simultaneously. For this reason, claims and deductions can be triggered by customer returns. Oracle Trade Management provides the ability to create a Return Materials Authorization (RMA), which is passed directly into Order Management in with the status Booked. When this RMA goes through Oracle Trade Management processes and generates a credit memo, Oracle Trade Management can automatically locate it by using the Claims Settlement Fetcher program. This program enables automatic closure of a claim or deduction using the credit memo. Several setups are required for this integration. For details see Setting Up Transaction Types.|
For more details on how to setup Order Management, see the Oracle Order Management Implementation Manual.
For integration with Order Management, you must verify the Oracle Channel Revenue Management Transaction Type Setup. The life-cycle of an order is driven by its transaction type and the workflow set up behind it. For an RMA, the workflow determines many factors, such as whether or not the return order will affect inventory.
To set up transaction types in Order Management, follow these steps:
Log in with the Order Management Responsibility.
Navigate to Setup > Transaction Types > Define.
Query for the transaction type. Query for the type you plan on using for Trade Management RMAs.
Verify that the transaction type code is ORDER.
Verify that Order Category is either Mixed or Return.
Note the Order Workflow.
On the Main tab, verify that there is a Default Return Line Type populated.
On the header, click the Assign Line Flows button.
Verify that Order Type is populated.
In the Assign Workflow Processes table:
Find the Return Line Type entered on the Main tab, and note the Process Name.
For Oracle Accounts Receivable Deductions Settlement workflow determines whether a credit is generated for the RMA. A credit memo is generated if the workflow contains an Invoicing Activity function. This function must be checked using Oracle Workflow Builder, a mandatory setup for RMAs to work in Oracle Accounts Receivable Deductions Settlement.
After workflow does its basic check, it contains an Invoicing Activity, which generates a credit.
Verify that the workflow is assigned to a valid transaction type.
Assign this in the Oracle Channel Revenue Management System Parameters and/or Claim Types or both.
Save your work.
Oracle Inventory serves as the repository for items that can be used in Oracle Trade Management. Use Oracle Inventory to create new products or collateral. After creating new inventory products/items you can add them to an offer or campaign. Items stored in Oracle Inventory reside in the MTL_SYSTEM_ITEMS table.
Oracle Inventory requires one Inventory Organization to be identified. Typically this is the Master Inventory Organization. In a multiple operating unit environment, the Master Inventory Organization should consist of all products from all operating units; it is the highest organizational level. Optionally, to separate products (sold from each operating unit) into different Inventory Organizations, create a separate Inventory Organization for each operating unit. These operating units should exist only as subsets of the Master Inventory Organization.
See the Oracle Inventory User's Guide for the procedure on implementing Oracle Inventory.
Oracle Accounts Receivable Deductions Settlement integrates with the Oracle E-Business Tax engine to get a tax quote. This helps claim analysts to get an idea about the tax calculated by either AR/AP. Tax quote is asked before the claim is submitted for settlement.
Oracle Accounts Receivable Deductions Settlement integrates with the Oracle E-Business Tax engine to facilitate the claim settlement process by providing tax estimates to claim users. When a claim user researches or settles a claim, the Oracle E-Business Tax engine fetches the estimated tax amount. The claim user can use this information to validate the accuracy of the claim.
The Oracle E-Business Tax engine call enables you to estimate the tax amount of your claim. The estimate enables you to validate your research and look for the right information knowing the tax impact of the resulting resolutions.
In Oracle Accounts Receivable Deductions Settlement instead of the existing tax codes on the claim lines screen, there are tax classification codes defined in the Oracle E-Business Tax application. The tax classification code values are determined by whether a settlement method integrates with Accounts Receivable or Accounts Payable.
Based on the business process of an organization, the claims submitted by customers may be either inclusive or exclusive of taxes. Deductions and overpayments are generally inclusive of taxes.
Note: The tax quote provided by the Oracle E-Business Tax engine is only an estimate, which the claim user can use to validate a claim. The actual tax amount is calculated from Oracle Receivables, Oracle Payables, or Order Management, depending on the settlement method.
Oracle Receivables: a tax classification code known as "Output" is derived from the "ZX_OUTPUT_TAX_CLASSIFICATION" (Order to Cash O2C) lookup type.
Oracle Payables: a tax classification code known as "Input" is derived from the "ZX_INPUT_TAX_CLASSIFICATION" Payment Flow (P2P) lookup type.
Tax Classification code varies depending on whether this settlement will go into an O2C flow or a P2P flow. Oracle Trade Management supports tax quote requests only for some settlement methods.
In Oracle Trade Management you can select whether you want to use the settlement method O2C or P2P to display either output or input taxes.
If you click the search icon for the tax classification code without selecting a settlement method or if you select an unsupported settlement method, the system displays the following error message:
“Tax Classification Code and Tax Actions are not available for this settlement method."
If you select an Action and click Go without selecting a settlement method, select an unsupported settlement method or if you do not select a tax classification code:
" Tax Action not applicable."