Oracle® Fusion
Applications
Financials Implementation Guide 11g Release 1 (11.1.2) Part Number E20375-02 |
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This chapter contains the following:
Creating an Aging Method: Worked Example
Aging methods are periods of time used to group receivables, debit and credit items to achieve an understanding of a customers delinquency profile. Grouping transactions by buckets of time creates an aging view of the customer. Aged information allows the collector to be effective when trying to recover delinquent debt and also allows a collections organization to develop more effective policies to assign work and streamline efficiencies.
Aging is the concept of calculating a customers past due and current transactions. Oracle Fusion Advanced Collections groups overdue debt by time and assigns work based on buckets of debt items. Aging shows the amounts owed to the company by its customers and includes the length of time the amounts have been outstanding. For example, aging categorizes receivables into buckets such as; current, 30 days, 60 days, 90 days, and 120 days and over. Collections aging functionality consists of an Aging Methods Setup screen and a separate Aging tab. Aging methods can be used during the creation of dunning plans. Aging is a view of transaction or receivables data that helps a collector understand the overdue amounts viewed over time. This understanding enables the collector to take a payment or create an adjustment or dispute. Collections delivers preconfigured aging methods and allows the ability to create new aging methods based on company requirements.
This example demonstrates how to create an aging method not predefined in Oracle Fusion Advanced Collections.
Your company requires an aging method that is not a collections predefined aging method. You are to create a new aging method. Use the default values except where indicated. Create an aging method named 1 to 120 Days Method, with the following segments:
Sequence |
Bucket Type |
Aging Days From |
Aging Days To |
Aging Bucket Heading |
---|---|---|---|---|
1 |
Current |
-9999 |
0 |
Current |
2 |
Past Due |
1 |
45 |
45 Past Due |
3 |
Past Due |
46 |
60 |
60 Past Due |
4 |
Past Due |
61 |
90 |
90 Past Due |
5 |
Past Due |
91 |
120 |
120 Past Due |
6 |
Past Due |
121 |
9999 |
121+ Past Due |
Field |
Value |
---|---|
Aging Method Name |
1 to 120 Aging Day Method |
Aging Type |
Statement Aging; 4 bucket and 7 bucket aging are options, depends on the number of buckets for your aging method. |
Enable |
Yes |
Aging Method Set |
Common Set |
Aging Method Description |
Current to 120 Day Aging method. |
Field |
Value |
---|---|
Sequence |
1 |
Bucket Type |
Past Due |
Aging Days From |
1 |
Aging Days To |
45 |
Aging Bucket Heading |
45 Past Due; Click the Create icon to create the row for the next sequence. |
Sequence |
2 |
Bucket Type |
Past Due |
Aging Days From |
46 |
Aging Days To |
60 |
Aging Bucket Heading |
60 Past Due |
The following validation rules are in place when creating or modifying an aging method:
A bucket must contain at least 2 bucket lines and at most 7 lines.
A Bucket Type passes from the user interface as a fixed constant value.
A bucket must have Aging Days From less than Aging Days To.
All buckets must cover the range from -9999 to 9999 and there is no way to update a field with the value of -9999 or 9999.
Aging buckets cannot have any gaps between -9999 to 9999.
Predefined aging methods cannot be modified, however they can be copied, are renamed and allow modifications made to the duplicate. From the Manage Aging Methods page, select one of the delivered aging methods and select the Duplicate button. It is renamed as copy in front of the name of the duplicated aging method. For example a 5 Bucket Aging becomes Copy 5 Bucket Aging, and allows you to make your modifications. Saving your changes creates the modified aging method.