The system maintains debt on each individual obligation for an account. An account's debt is the sum of its obligations' debt. The following points are high level descriptions of the various financial transaction supported
Adjustments are used for many different financial effects on a obligation, including tax assessments, penalties, interest, and fees. The following points highlight important concepts related to adjustments
Over time, an obligation may have many adjustments.
An adjustment has a related financial transaction. The financial transaction contains the financial effects of the adjustment on the obligation's debt and on the general ledger.
Canceling an adjustment cancels the financial transaction. If the adjustment is eventually canceled, another financial transaction will be linked to the adjustment to reverse its financial effect. The cancellation financial transaction appears on the next bill produced for the account as an adjustment.
Over time, many payments may be applied to an account's debt. The following points highlight important concepts related to payments:
A payment amount is ultimately directed towards an obligation via a payment segment.
If an account has multiple obligations that are in debt, the various payment segments created for the obligations may be grouped into a single Payment for the account.
A payment segment has a related financial transaction. A financial transaction contains the financial effects of the segment on the obligation's current and payoff balances and on the general ledger.
Canceling a payment cancels the financial transaction. If the payment is eventually cancelled, another financial transaction will be linked to the related payment segment(s) to reverse their financial effect. The cancellation financial transaction appears on the next bill produced for the account as a negative payment.
For bill based taxes, many bills are produced for an account over time. The following points highlight important concepts related to bills:
A bill is produced for an account for one or more of its bill-based obligations. Over time, many bills may be produced for an account.
Bills contain bill segments. A bill segment is created to levy charges for a bill-based obligation. You may configure your system to generate a single bill for a single obligation. For example you may generate one bill for your property tax obligation's charges. You may also include bill segments for multiple obligations in a single bill. For example you may generate a bill that includes bill segments for all the personal property obligations.
Bill segments contain calculation details. A bill segment contains information showing how the segment was calculated and how it should be printed on the taxpayer's bill.
A bill segment has a financial transaction. A bill segment has a related financial transaction. A financial transaction contains the financial effects of the bill segment on the obligation's current and payoff balances and on the general ledger.
Canceling a bill cancels the financial transaction. If the bill segment is eventually cancelled, another financial transaction will be linked to the bill segment to reverse its original financial transaction. The cancellation financial transaction appears on the next bill produced for the account as a bill correction.
Copyright © 2011, Oracle and/or its affiliates. All rights reserved.