1Define Common Accounts Receivable Configuration

This chapter contains the following:

Oracle Receivables provides integrated functionality to perform day-to-day accounts receivable operations. Receivables functionality is managed from these Overview work areas: Billing, Receivables Balances, Revenue Management, and Credit Management.

All work areas provide access to general ledger account activities, including creating accounting, creating manual journal entries, and reviewing journal entries.

Billing Work Area

Use the Billing work area to perform tasks related to customer billing activities. Monitor and review incomplete transactions, and approve and research pending adjustments. Use AutoInvoice to import transactions from other systems and generate invoices and credit memos automatically according to your requirements. You can review and correct AutoInvoice import errors and resubmit AutoInvoice. Create new invoices, debit memos, credit memos, and on-account credit memos. Perform related activities to manage your transactions: update, duplicate, credit, adjust, dispute, and preview a transaction. You can also create a new customer record and manage existing customers from the Billing work area.

Receivables Balances Work Area

Use the Receivables Balances work area to perform tasks related to customer payment activities and the management of accounts receivable balances. Review actionable items, including open receipts and receipt batches, unapplied and on-account receipts and credit memos, receipt remittance batches, and funds transfer errors. Create receipts manually, import receipts using lockbox or spreadsheet, or create automatic receipts. Perform related activities to manage your receipts: apply, unapply, reverse, delete; create invoice adjustments or chargebacks during receipt application; and remit, clear, or risk eliminate factored receipts. You can manage receipt remittances: create, modify, and approve receipt remittance batches. You can also perform tasks related to managing accounts receivables balances, including reconciling receivables to the general ledger and managing receivables accounting period statuses.

Revenue Management Work Area

Use the Revenue Management work area to perform tasks related to revenue recognition and revenue adjustments. Run the Recognize Revenue program to generate revenue distribution records for invoices and credit memos that use invoicing and revenue scheduling rules. Perform revenue adjustments on one or more transactions, including scheduling and unscheduling revenue; reviewing, adding, and expiring revenue contingencies; and transferring sales credits. You can also manage revenue policies, revenue contingencies, and rules that assign revenue contingencies to transactions automatically.

Credit Management Work Area

Use the Credit Management work area to create credit profiles for your customers. The credit profile contains key information for establishing the creditworthiness of each of your customers, including credit classifications, credit limits, and credit review cycles. Review and evaluate specific credit authorization requests; run periodic reviews of the creditworthiness of your existing customers; review customer credit scores, and provide recommendations for customer credit. Build scoring models that calculate a credit score based on credit data specific to a customer; maintain detailed information about customer financial and accounting history; and create templates for different types of credit reviews that are automatically assigned to specific credit scenarios.

Customer Information

From either the Billing or Receivables Balances work area, you have access to manage both customer information and customer account activities, in summary and in detail. You can review customer account information by a single business unit, bill-to site, or across all business units and bill-to sites. For each customer account, you can review transactions and receipts, dispute and adjust transactions, and drill down to current or historical customer account activity.

You can create an operational Receivables environment with seven configurations. The remaining configurations are either optional or have predefined values.

If applicable, your Receivables configuration must include a plan to migrate your customer information from your legacy system.

Receivables Configuration Tasks

There are seven configuration tasks necessary to create an operational Receivables environment. Before you perform these tasks, you must ensure that you have completed all of the required implementation tasks for Oracle Financials.

Perform these seven tasks in the order indicated:

  1. Set Receivables System Options

    Set Receivables system options to define your Receivables environment. During Receivables setup, you specify your accounts, customer and invoice parameters, and how the AutoInvoice and Automatic Receipts programs operate.

  2. Define Receivables Activities

    Define receivables activities to create default accounting for all activities other than transactions and receipts, including, for example, miscellaneous cash, discounts, late charges, adjustments, and write-offs.

  3. Define AutoAccounting Rules

    Defining AutoAccounting is a required configuration task for processing customer billing.

    Define AutoAccounting to specify how you want Receivables to determine the default general ledger accounts for transactions. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivables, late charges, and AutoInvoice clearing (suspense) accounts using your AutoAccounting setup.

  4. Define Receipt Classes and Methods

    Defining receipt classes and receipt methods is a required configuration task for processing customer payments.

    Receipt classes determine the required processing steps for receipts to which you assign receipt methods with this class. These steps include confirmation, remittance, and clearance. Receipt methods specify accounting for receipt entries and applications, determine customer remittance bank account information, and configure automatic receipt processing and fund transfer error handling.

  5. Define Remit-to Addresses

    Define remit-to addresses to let your customers know where to send payment for open receivables. Receivables uses the addresses to provide default remit-to information when you enter transactions.

    You must provide a remit-to address to complete a transaction.

    If you use AutoInvoice, but you haven't defined a remit-to address for a particular customer site, AutoInvoice rejects all transactions for which it couldn't determine a remit-to address.

  6. Define Approval Limits

    Define approval limits to determine whether a Receivables user can approve adjustments or credit memo requests. You define approval limits by document type, amount, and currency.

  7. Define Statement Cycles

    Define statement cycles to control when you create customer statements. You assign statement cycles to customer profiles.

Predefined Receivables Data in Subledger Accounting

Oracle Receivables provides predefined data for Oracle Subledger Accounting that you can use to integrate the two applications.

When you run Create Receivables Accounting, the program accepts the default accounting information from AutoAccounting without change and uses the predefined data to create accounting in the subledger. Subledger Accounting transfers the final accounting to General Ledger.

Note: You can optionally define your own subledger accounting rules to overwrite the default accounts from the accounting events.

Receivables predefines one application in Subledger Accounting named Receivables. Most of the data that Receivables predefines for Subledger Accounting is associated with the Receivables application.

This table shows the attribute values that Receivables predefines for the Receivables application:

Field Value

Application Name

Receivables

Drill-down Procedure

AR_DRILLDOWN_PUB_PKG.DRILLDOWN

Use Security

Yes

Policy Function

XLA_SECURITY_POLICY_PKG.MO_POLICY

Journal Source

Receivables

Third Party Control Account Type

Customer

Subject to Validation

No

Calculate Reporting Currency Amounts

Yes

This table lists the setup information that Receivables predefines for the event entities:

Application Entity Name Description Gapless Event Processing

Receivables

Adjustments

Adjustments

No

Receivables

Receipts

Receipts

No

Receivables

Transactions

Transactions

No

Receivables predefines process categories for the Receivables application. These process categories are:

  • Adjustments

  • Miscellaneous Receipts

  • Standard Receipts

  • Third Party Merge

  • Transactions

Additional considerations for Receivables predefined data for subledger accounting include:

  • Event Classes and Event Class Options

  • Sources, Source Assignments, and Accounting Attribute Assignments

  • Journal Line Rules

  • Account Rules

  • Journal Entry Rule Set

  • Accounting Method

Event Classes and Event Class Options

Receivables predefines event classes for each event entity that belongs to the Receivables application.

This table lists the event classes that Receivables predefines for the Receivables application:

Entity Event Class Name

Adjustments

Adjustment

Receipts

Miscellaneous Receipt

Receipts

Receipt

Transactions

Chargeback

Transactions

Credit Memo

Transactions

Debit Memo

Transactions

Invoice

Accounting event class options define attributes of an event class. Receivables defines the accounting event class options for each predefined event class.

This table lists the accounting event class options that Receivables predefines for the Receivables application:

Event Class Process Category Default Journal Category Transaction View Balance Types

Adjustment

Adjustments

Adjustment

AR_ADJ_INF_V

Actual

Miscellaneous Receipt

Miscellaneous Receipts

Misc Receipts

AR_CR_INF_V

Actual

Receipt

Standard Receipts

Receipts

AR_CR_INF_V

Actual

Chargeback

Transactions

Chargebacks

AR_TRX_INF_V

Actual

Credit Memo

Transactions

Credit Memos

AR_TRX_INF_V

Actual

Debit Memo

Transactions

Debit Memos

AR_TRX_INF_V

Actual

Invoice

Transactions

Sales Invoices

AR_TRX_INF_V

Actual

Sources, Source Assignments, and Accounting Attribute Assignments

Receivables predefines sources, source assignments, and accounting attribute assignments for Subledger Accounting.

You can't make changes to predefined sources, source assignments, or accounting attribute assignments. However, you can define your own sources.

If you choose to define your own journal line rules or accounting methods, you can override the default accounting attribute assignments.

Journal Line Rules

Receivables predefines journal line rules for each predefined event class. Receivables specifies conditions for the use of each journal line rule.

This table lists the journal line rules that Receivables predefines for the Receivables application:

Event Class Name Balance Type Side

Adjustment

Adjustment

Actual

Credit

Adjustment

Adjustment Charge

Actual

Credit

Adjustment

Adjustment Default Receivable

Actual

Credit

Adjustment

Adjustment Deferred Tax

Actual

Credit

Adjustment

Adjustment Charge Nonrecoverable Tax

Actual

Credit

Adjustment

Adjustment Nonrecoverable Tax

Actual

Credit

Adjustment

Adjustment Tax

Actual

Credit

Adjustment

Adjustment Transaction Creation Date

Actual

N/A

Adjustment

Adjustment Transaction Created By

Actual

N/A

Adjustment

Adjustment Transaction Last Updated Date

Actual

N/A

Adjustment

Adjustment Transaction Last Updated By

Actual

N/A

Chargeback

Chargeback Default Receivable

Actual

Debit

Chargeback

Chargeback Revenue

Actual

Credit

Credit Memo

Credit Memo Default Deferred Tax Application

Actual

Credit

Credit Memo

Credit Memo Default Application

Actual

Credit

Credit Memo

Credit Memo Default Tax Application

Actual

Credit

Credit Memo

Credit Memo Refund Application

Actual

Credit

Credit Memo

Credit Memo Charges

Actual

Credit

Credit Memo

Credit Memo Default Receivable

Actual

Debit

Credit Memo

Credit Memo Default Revenue

Actual

Credit

Credit Memo

Credit Memo Default Tax

Actual

Credit

Credit Memo

Credit Memo Rounding

Actual

Credit

Credit Memo

Credit Memo Unbilled Receivable

Actual

Credit

Credit Memo

Credit Memo Deferred Revenue

Actual

Credit

Credit Memo

Credit Memo Product Type

Actual

N/A

Credit Memo

Credit Memo Transaction Creation Date

Actual

N/A

Credit Memo

Credit Memo Transaction Created By

Actual

N/A

Credit Memo

Credit Memo Transaction Last Updated Date

Actual

N/A

Credit Memo

Credit Memo Transaction Last Updated By

Actual

N/A

Debit Memo

Debit Memo Charges

Actual

Credit

Debit Memo

Debit Memo Default Receivable

Actual

Debit

Debit Memo

Debit Memo Freight

Actual

Credit

Debit Memo

Debit Memo Revenue

Actual

Credit

Debit Memo

Debit Memo Rounding

Actual

Credit

Debit Memo

Debit Memo Tax

Actual

Credit

Debit Memo

Debit Memo Unbilled Receivable

Actual

Debit

Debit Memo

Debit Memo Deferred Revenue

Actual

Credit

Debit Memo

Debit Memo Product Type

Actual

N/A

Debit Memo

Debit Memo Transaction Creation Date

Actual

N/A

Debit Memo

Debit Memo Transaction Created By

Actual

N/A

Debit Memo

Debit Memo Transaction Last Updated Date

Actual

N/A

Debit Memo

Debit Memo Transaction Last Updated By

Actual

N/A

Invoice

Invoice Charges

Actual

Credit

Invoice

Invoice Default Receivable

Actual

Debit

Invoice

Invoice Freight

Actual

Credit

Invoice

Invoice Revenue

Actual

Credit

Invoice

Invoice Rounding

Actual

Credit

Invoice

Invoice Tax

Actual

Credit

Invoice

Invoice Unbilled Receivable

Actual

Credit

Invoice

Invoice Deferred Revenue

Actual

Credit

Invoice

Invoice Product Type

Actual

N/A

Invoice

Invoice Transaction Creation Date

Actual

N/A

Invoice

Invoice Transaction Created By

Actual

N/A

Invoice

Invoice Transaction Last Updated Date

Actual

N/A

Invoice

Invoice Transaction Last Updated By

Actual

N/A

Miscellaneous Receipt

Miscellaneous Receipt Bank Charges

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Cleared Cash

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Confirmed Cash

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Short Term Debt

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Factored Cash

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Miscellaneous Cash

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Remitted Cash

Actual

Credit

Miscellaneous Receipt

Miscellaneous Receipt Tax

Actual

Credit

Receipt

Receipt On Account Application

Actual

Credit

Receipt

Receipt Application to Freight

Actual

Credit

Receipt

Receipt Application to Revenue

Actual

Credit

Receipt

Receipt Application to Rounding

Actual

Credit

Receipt

Receipt Application to Suspense Revenue

Actual

Credit

Receipt

Receipt Application to Tax

Actual

Credit

Receipt

Receipt Application to Unbilled Revenue

Actual

Credit

Receipt

Receipt Application to Earned Revenue

Actual

Credit

Receipt

Receipt Bank Charges

Actual

Credit

Receipt

Receipt Cleared Cash

Actual

Credit

Receipt

Receipt Credit Card Chargeback Application

Actual

Credit

Receipt

Receipt Chargeback Application

Actual

Credit

Receipt

Receipt Confirmed Cash

Actual

Credit

Receipt

Receipt Currency Rounding

Actual

Credit

Receipt

Receipt Short Term Debt

Actual

Credit

Receipt

Receipt Default Application

Actual

Credit

Receipt

Receipt Deferred Tax

Actual

Credit

Receipt

Receipt Earned Discount

Actual

Credit

Receipt

Receipt Earned Discount on Freight

Actual

Debit

Receipt

Receipt Earned Discount Nonrecoverable Tax

Actual

Credit

Receipt

Receipt Earned Discount on Revenue

Actual

Debit

Receipt

Receipt Earned Discount on Tax

Actual

Debit

Receipt

Receipt Exchange Gain

Actual

Credit

Receipt

Receipt Exchange Gain Loss

Actual

Gain/Loss

Receipt

Receipt Exchange Loss

Actual

Credit

Receipt

Receipt Factored Cash

Actual

Credit

Receipt

Receipt Payment Netting Application

Actual

Credit

Receipt

Receipt Prepayment Application

Actual

Credit

Receipt

Receipt Refund Application

Actual

Credit

Receipt

Receipt Remitted Cash

Actual

Credit

Receipt

Receipt Tax

Actual

Credit

Receipt

Receipt Unapplied Cash

Actual

Debit

Receipt

Unapplied Cash

Actual

Debit

Receipt

Receipt Unapplied for Gain Loss lines

Actual

Debit

Receipt

Receipt Unearned Discount

Actual

Credit

Receipt

Receipt Unearned Discount on Freight

Actual

Debit

Receipt

Receipt Unearned Discount on Nonrecoverable Tax

Actual

Credit

Receipt

Receipt Unearned Discount on Revenue

Actual

Debit

Receipt

Receipt Unearned Discount on Tax

Actual

Debit

Receipt

Receipt Unidentified Cash

Actual

Credit

Receipt

Receipt Write-Off Application

Actual

Credit

Receipt

Receipt Reversed Unapplied for Unidentified Receipt

Actual

Debit

Receipt

Receipt Reversed Unidentified Balance Line

Actual

Debit

Receipt

Receipt Unapplied for Unidentified Receipt

Actual

Debit

Receipt

Receipt Unidentified Balance Line

Actual

Debit

Receipt

Receipt Unapplied Reversed Cash

Actual

Debit

Receipt

Receipt Bill To Site Receivable Account

Actual

N/A

Receipt

Receipt Bill To Site Clearing Account

Actual

N/A

Receipt

Receipt Bill To Site Freight Account

Actual

N/A

Receipt

Receipt Bill To Site Revenue Account

Actual

N/A

Receipt

Receipt Bill To Site Tax Account

Actual

N/A

Receipt

Receipt Bill To Site Unbilled Receivable

Actual

N/A

Receipt

Receipt Bill To Site Unearned Account

Actual

N/A

Receipt

Receipt Creation Date

Actual

N/A

Receipt

Receipt Created By

Actual

N/A

Receipt

Receipt Last Updated Date

Actual

N/A

Receipt

Receipt Last Updated By

Actual

N/A

Account Rules

Receivables predefines account rules. When Subledger Accounting uses the predefined account rules that Receivables provides, it accepts the default accounting that Receivables generates using AutoAccounting without change.

You can optionally define your own account rules for an Accounting Flexfield or for a segment. In this case, Subledger Accounting overrides the default accounts that Receivables generates, or individual segment values in the default accounts, when it creates the draft or final subledger accounting.

The account rules that Receivables predefines for the Receivables application are as follows:

  • Credit Memo Distribution GL Account

  • Collection Bank Charges Account

  • Collection Bank Account Cash Account

  • Collection Bank Factoring Charges Account

  • Distribution GL Account

  • Remit Bank Unapplied Account

  • System Gain GL Account

  • System Loss GL Account

  • Transaction Distribution GL Account

  • Transaction Distribution GL Account with reference

Journal Entry Rule Sets

Receivables predefines journal entry rule sets that group the predefined journal line rules and account rules within each of the predefined event types. Receivables assigns each predefined journal entry rule set to all event types within an event class.

This table lists the journal entry rule sets that Receivables predefines for the Receivables application:

Event Class Journal Entry Rule Set Name Journal Line Rules

Adjustment

Adjustments - Default Accrual

Adjustment, Adjustment Charge, Adjustment Charge Nonrecoverable Tax, Adjustment Default Receivable, Adjustment Deferred Tax, Adjustment Nonrecoverable Tax, Adjustment Tax

Chargeback

Chargebacks - Default Accrual

Chargeback Default Receivable, Chargeback Revenue

Credit Memo

Credit Memos - Default Accrual

Credit Memo Charges, Credit Memo Default Application, Credit Memo Default Deferred Tax Application, Credit Memo Default Receivable, Credit Memo Default Revenue, Credit Memo Default Tax, Credit Memo Default Tax Application, Credit Memo Deferred Revenue, Credit Memo Refund Application, Credit Memo Rounding, Credit Memo Unbilled Receivable

Debit Memo

Debit Memos - Default Accrual

Debit Memo Charges, Debit Memo Default Receivable, Debit Memo Deferred Revenue, Debit Memo Freight, Debit Memo Revenue, Debit Memo Rounding, Debit Memo Tax, Debit Memo Unbilled Receivable

Invoice

Invoices - Default Accrual

Invoice Charges, Invoice Default Receivable, Invoice Deferred Revenue, Invoice Freight, Invoice Revenue, Invoice Rounding, Invoice Tax, Invoice Unbilled Receivable

Miscellaneous Receipt

Miscellaneous Receipts

Miscellaneous Receipt Bank Charges, Miscellaneous Receipt Cleared Cash, Miscellaneous Receipt Confirmed Cash, Miscellaneous Receipt Factored Cash, Miscellaneous Receipt Miscellaneous Cash, Miscellaneous Receipt Remitted Cash, Miscellaneous Receipt Short Term Debt, Miscellaneous Receipt Tax

Receipt

Receipts - Default Accrual

Receipt Bank Charges, Receipt Chargeback Application, Receipt Cleared Cash, Receipt Confirmed Cash, Receipt Credit Card Chargeback Application, Receipt Currency Rounding, Receipt Default Application, Receipt Deferred Tax, Receipt Earned Discount, Receipt Earned Discount Nonrecoverable Tax, Receipt Exchange Gain Loss, Receipt Factored Cash, Receipt On Account Application, Receipt Payment Netting Application, Receipt Prepayment Application, Receipt Refund Application, Receipt Remitted Cash, Receipt Short Term Debt, Receipt Tax, Receipt Unapplied Cash, Receipt Unearned Discount, Receipt Unearned Discount on Nonrecoverable Tax, Receipt Unidentified Cash, Receipt Write-Off Application, Unapplied Cash

Receipt

Receipt - Basis Journal Entry Rule Set

Receipt Application to Earned Revenue, Receipt Application to Freight, Receipt Application to Revenue, Receipt Application to Rounding, Receipt Application to Suspense Revenue, Receipt Application to Tax, Receipt Application to Unbilled Revenue, Receipt Bank Charges, Receipt Cleared Cash, Receipt Confirmed Cash, Receipt Currency Rounding, Receipt Earned Discount, Receipt Earned Discount on Freight, Receipt Earned Discount on Revenue, Receipt Earned Discount on Tax, Receipt Exchange Gain Loss, Receipt Factored Cash, Receipt On Account Application, Receipt Payment Netting Application, Receipt Prepayment Application, Receipt Refund Application, Receipt Remitted Cash, Receipt Short Term Debt, Receipt Unapplied Cash, Receipt Unapplied for Gain Loss lines, Receipt Unearned Discount, Receipt Unearned Discount on Freight, Receipt Unearned Discount on Revenue, Receipt Unearned Discount on Tax, Receipt Unidentified Cash, Receipt Write-Off Application, Unapplied Cash

Accounting Method

Receivables provides the predefined Receivables Default Accrual accounting method.

Subledger Accounting provides the predefined Standard Accrual subledger accounting method that groups the predefined accounting methods for subledger applications. You can optionally create your own subledger accounting method.

Receivables assigns the predefined Receivables Default Accrual accounting method to the predefined Standard Accrual subledger accounting method. You can assign this subledger accounting method to your ledgers.

This table lists the assignments for the Receivables Default Accrual accounting method that Receivables predefines for the Receivables application:

Event Class Assignments Event Type Assignments Create Accounting Journal Entry Rule Set Assignments

Adjustment

All

Yes

Adjustments - Default Accrual

Chargeback

All

Yes

Chargebacks - Default Accrual

Credit Memo

All

Yes

Credit Memos - Default Accrual

Debit Memo

All

Yes

Debit Memos - Default Accrual

Invoice

All

Yes

Invoices - Default Accrual

Miscellaneous Receipt

All

Yes

Miscellaneous Receipts

Receipt

All

Yes

Receipts - Default Accrual

You can copy the predefined Receivables Default Accrual accounting method and update the accounting method with new attributes, according to your business requirements.

The following steps provide general guidelines for copying and updating the predefined Receivables Default Accrual accounting method:

  • Create a mapping set for the new attribute values.

  • Create an accounting rule based on the mapping set.

  • Duplicate the predefined journal entry rule set you want and assign the new accounting rule.

  • Duplicate the predefined accounting method assigned to your ledger.

  • In the new accounting method, assign an end date to the applicable predefined journal entry rule set assignment and assign the new journal entry rule set.

  • Activate the new accounting method. This sets the journal entry rule sets to Active.

  • Assign the new accounting method to your ledger.

FAQs for Define Common Accounts Receivable Configuration

You must open an accounting period before you can perform basic Receivables activities. This is also true of new installations: manually open an accounting period once your installation is complete.

Ledger and Legal Entity Document Sequencing

You can set up your primary ledger to use document sequencing in Receivables at the ledger level or legal entity level.

If you enable document sequencing at the legal entity level, then if you have more than one legal entity assigned to the same ledger, you can assign separate document sequences to Receivables transactions, adjustments, and receipts belonging to each legal entity.

Legal entity level document sequencing helps you conform to local and governmental authority requirements, while still being able to organize multiple legal entities under the same primary ledger.

Review these guidelines for document sequencing in Receivables:

  • Document Sequencing in Receivables

  • Receivables Document Categories

  • Chronological Document Sequencing

  • Chronological Document Sequencing and Manual Transactions

  • Chronological Document Sequencing and AutoInvoice

Document Sequencing in Receivables

To use document sequencing in Receivables, in the Sequencing section of the Specify Options page of your primary ledger, perform one or both of these tasks:

  1. Set the Sequencing By option to Ledger or Legal Entity.

  2. Optionally enable the Enforce Document Sequencing option for Receivables.

If you perform step 1 and step 2, then document sequencing is always used in the ledger or all legal entities assigned to the ledger. You must assign a document sequence to every document category generated by Receivables events.

If you perform step 1 but not step 2, then you can optionally assign document sequences to the Receivables document categories that meet your business requirements. For example, you can use sequential numbering for automatic receipt processing only and not for transactions.

Receivables Document Categories

If the primary ledger is enabled for document sequencing at the legal entity level (Sequencing By option set to Legal Entity), then Receivables creates a document category for each of these Receivables events in all legal entities assigned to the ledger:

  • Invoice transaction type

  • Credit memo transaction type

  • Debit memo transaction type

  • Bills receivable transaction type

  • Standard receipt

  • Adjustment

To assign a document sequence to a document category:

  1. Navigate to the Manage Document Sequence Categories page.

  2. Search for the document categories that you want.

    You can use the Category Code field to limit your search by entering, for example, Invoice or Receipt.

  3. Review the search results to find the document category that you want

  4. If necessary, update the category name according to your requirements.

  5. Save your changes.

  6. Navigate to the Manage Receivables Document Sequences page.

  7. Search for the document sequence name that you want, or create a new document sequence.

  8. In the Search Results section, update or complete the document sequence setup according to your requirements.

  9. In the Assignments section, select the document category to assign to this document sequence.

  10. Save your changes.

For each Receivables event, the document sequence number is generated when the following related action takes place:

  • Transactions: At the time of either saving or completing the transaction, depending on the setting of the Receivables system option Document Number Generation Level for the applicable business units.

  • Adjustments: When the adjustment is submitted.

  • Receipts: When the receipt is submitted.

  • Bills Receivable: When the bill receivable is completed.

These rules apply to Receivables document sequencing:

  • Document sequence date is the accounting date (not, for example, the transaction date or receipt date).

    Note: If a bill receivable requires drawee acceptance, then Receivables uses the transaction date instead of the accounting date to assign the document number. This is because a bills receivable document number is generated when the bill is completed, not accepted.
  • You can't change the legal entity on any transaction that has a document sequence number.

  • By default, you can't delete any transaction or receipt that has a document sequence number. If the Receivables system option Allow payment deletion is enabled, then you can delete receipts and bills receivable transactions only for the applicable business units.

Chronological Document Sequencing

Document sequencing uses the accounting date as the document sequence date. To help ensure reliable document sequencing for your transactions, you can enforce the sequencing of document numbers in chronological order.

Note: Chronological document sequencing applies to invoice, credit memo and debit memo transactions only, either entered manually or imported using AutoInvoice. It doesn't apply to receipts, adjustments, or bills receivable.

To enable chronological document sequencing on Receivables transactions, in the Sequencing section of the Specify Options page of your primary ledger perform these three tasks:

  1. Set the Sequencing By option to Ledger or Legal Entity.

  2. Enable the Enforce Document Sequencing option for Receivables.

  3. Enable the Enforce Chronological Order on Document Date option.

You must perform all three steps for chronological document sequencing. Enabling the Enforce Chronological Order on Document Date option enforces the correlation between the document sequence accounting date and the transaction accounting date. This prevents Receivables from creating a transaction with an accounting date that is earlier than the accounting date of the last sequenced document within the same document sequence.

For example, you create an invoice with an accounting date of 01-Jan-2014. This invoice is assigned the document number 100. The next invoice you create is assigned the document number 101 provided the accounting date of the invoice is 01-Jan-2014 or later. If the accounting date is earlier than 01-Jan-2014, then Receivables doesn't create the transaction.

Chronological Document Sequencing and Manual Transactions

If you are using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then you can enforce chronological document sequencing on transactions created manually in your transaction type setup.

To enforce chronological document sequencing on transactions created manually:

  1. Navigate to the Create or Edit Transaction Type page.

  2. Enable the No future dates with chronological document sequencing option.

  3. Complete the transaction type setup according to your requirements.

  4. Assign this transaction type to the applicable transactions.

When you use this transaction type with transactions you create manually, then Receivables won't create the transaction if both the transaction and accounting dates are in the future.

Chronological Document Sequencing and AutoInvoice

If you are using document sequencing and the primary ledger option Enforce Chronological Order on Document Date is enabled, then for AutoInvoice you must set the Receivables system option Accounting Dates Out of Order. Setting this option determines how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

In the Receivables System Options page: Billing and Revenue tab: AutoInvoice section, set the Accounting Dates Out of Order field to Reject or Adjust:

  • Reject: If the transaction accounting date is out of order within the document sequence, reject the transaction and transfer it to the error table.

  • Adjust: If the transaction accounting date is out of order within the document sequence, adjust the accounting date to conform to the document sequence accounting date.

If the primary ledger is enabled for document sequencing, AutoInvoice validates and assigns document numbers to transactions according to the requirements of the ledger settings.

Note: If an imported transaction line already has a document number, then AutoInvoice accepts this document number without further validation.

Settings That Affect AutoInvoice Processing with Document Sequencing

If the primary ledger option Enforce Chronological Order on Document Date is enabled, then you must set the Receivables system option Accounting Dates Out of Order. Setting this option determines how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

Before you run the Import AutoInvoice program, you must also create and assign document sequences to the document categories of the transaction types that you plan to assign to imported transactions.

How Transactions with Document Sequencing Are Processed

For the most complete example, if the primary ledger is set for document sequencing at the legal entity level, AutoInvoice processes transactions in this way:

  1. Validate and group transaction lines into transactions.

  2. Derive the legal entity for each transaction and assign the legal entity to the transaction.

  3. If the transaction doesn't have an accounting date, then derive the accounting date.

  4. If the primary ledger option Enforce Chronological Order on Document Date is not enabled:

    1. Retrieve the document sequence for the document category of each transaction type assigned to transactions.

    2. Assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

  5. If the primary ledger option Enforce Chronological Order on Document Date is enabled:

    1. Order transactions by legal entity and then by transaction type.

    2. Retrieve the document sequence for the document category of each transaction type assigned to transactions.

    3. Order transactions by document sequence and then by accounting date in ascending chronological order.

    4. Compare the document sequence accounting date to the accounting date of the transaction.

    5. If the transaction accounting date is equal to or later than the document sequence accounting date, assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

    6. If the transaction accounting date is earlier than the document sequence accounting date, retrieve the value of the Receivables system option Accounting Dates Out of Order.

    7. If the Accounting Dates Out of Order option is set to:

      • Reject: Reject the transaction and transfer the transaction to the error table.

      • Adjust: Update the transaction accounting date with the document sequence accounting date.

        Note: If the document sequence accounting date is in a closed period, then adjust this date to the first open accounting period.
    8. Assign the document number to the transaction according to the combination of legal entity, transaction type, document sequence, and accounting date.

FAQs for Ledger and Legal Entity Document Sequencing

If document sequencing is enabled for a ledger, it is not recommended to share the same document sequence across ledgers or business units.

Document sequencing uses the accounting date as the document sequence date. Because ledgers can have different accounting periods open, each ledger could derive a different accounting date for the same document sequence.

Because a document category is created for each transaction type you create, it is recommended to create and maintain a separate set of transaction types in each business unit.

Receivables Activities

Receivables activity types provide default accounting information for all activities in Receivables other than transactions and receipts.

Using Receivables Activity Types

Adjustments

You use activities of this type when creating adjustments. You must create at least one activity of this type.

There are also three related activities that are reserved for internal use only:

  • Chargeback Adjustment

  • Adjustment Reversal

  • Chargeback Reversal

You must define general ledger accounts for the Chargeback Adjustment activity before creating chargebacks.

When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities.

Bank Error

You use activities of this type when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Cash Management.

Bills Receivable Funds Recovery

You use activities of this type when you need to unapply a receipt from a bill receivable. Because you can't reverse the receipt in Cash Management, you use this activity to create a negative miscellaneous receipt and apply it to Bills Receivable Funds Recovery.

Claim Investigation

You use activities of this type when you create a claim investigation application against a receipt for a transaction or non-transaction underpayment or overpayment. You must define a general ledger account for claim investigation receipts that use the Claim Investigation activity.

Credit Card Chargeback

You use activities of this type when recording credit card chargebacks. You must define a general ledger clearing account for the Credit Card Chargeback activity that Receivables provides before recording credit card chargebacks.

Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one Credit Card Chargeback activity within a business unit can be active at a time.

Credit Card Refund

You use activities of this type when processing refunds to customer credit card accounts. This activity includes information about the general ledger clearing account to use to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.

Note: Credit card services are currently not available in Oracle Cloud implementations.
Earned Discount

You use activities of this type to adjust a transaction if payment is received within the discount period, as determined by the payment terms on the transaction.

Late Charges

You use activities of this type to define a late charge policy. You must define a Late Charges activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate Late Charges activity for penalties.

Miscellaneous Cash

You use activities of this type when entering miscellaneous receipts. The Miscellaneous Cash activity uses a distribution set to automatically distribute miscellaneous cash across various accounts. You must create at least one activity of this type.

If the Tax Rate Code Source for this activity is Activity, then you must define asset and liability tax rate codes to account for tax on miscellaneous receipts and miscellaneous payments.

Payments

You use activities of this type when applying a receipt against other open receipts. You must define a general ledger clearing account to use when offsetting one receipt against another receipt. Only one Payments activity within a business unit can be active at a time.

Prepayments

You use activities of this type when creating prepayment receipts. You must define a general ledger account for prepayment receipts that use the Prepayments activity. Only one Prepayments activity within a business unit can be active at a time.

Receipt Write-off

You use activities of this type when writing off receipts. You must define the general ledger account to credit when you write off an unapplied amount or an underpayment on a receipt.

Refund

You use activities of this type to process automated non-credit card refunds. You must define the general ledger clearing account to use to clear refunds. You must create at least one activity of this type. Only one Refund activity within a business unit can be active at a time.

Short Term Debt

You use activities of this type to record advances made to creditors by the bank when bills receivable are factored with recourse. You select a short-term debt receivables activity when you create or update remittance banks to use with bills receivable remittance receipt methods.

Unearned Discount

You use activities of this type to adjust a transaction if payment is received after the discount period, as determined by the payment terms on the transaction.

When you define a Receivables activity, you use the GL Account Source to indicate how Receivables derives the accounts for the expense or revenue generated by the activity.

GL Account Source Options

Activity GL Account

Allocate the expense or revenue to the general ledger account that you specify for the Receivables activity. If the activity type is Bank Error, Late Charges, Prepayments, or Receipt Write-off, you can only select this option.

Distribution Set

Allocate the expense or revenue to the distribution set that you specify. This value is only used with Miscellaneous Cash activities.

Revenue on Invoice

Allocate the expense or revenue net of any tax to the revenue accounts specified on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.

If the revenue on the invoice is unearned, then AutoAccounting derives the anticipated revenue accounting distribution accounts and amounts. Receivables then uses this information to allocate the adjustment or discount amount to these derived revenue accounts.

Tax Rate Code on Invoice

Allocate the net portion using the expense/revenue accounts specified by the tax rate code on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.

Note: In the event of an adjustment to an invoice with zero amount revenue distributions, the adjustment activity GL Account Source must not be set to Revenue on Invoice or Tax Rate Code on Invoice.

When you define a receivables activity, you use the Tax Rate Code Source to indicate how Receivables derives the tax rate code for an activity.

Tax Rate Code Source Options

None

Allocates the entire tax amount according to the GL Account Source you specified. You use this option if you don't want to account for tax separately.

Activity

Allocate the tax amount to the asset or liability tax accounts specified by the activity.

Invoice

Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You can't choose this option if the activity type is Miscellaneous Cash or Late Charges.

Note: In the event of a tax adjustment to an invoice with zero amount tax distributions, the adjustment activity Tax Rate Code Source must not be set to Invoice.

If the Tax Rate Code Source is Activity or Invoice, you must indicate whether tax for this activity is recoverable or nonrecoverable.

AutoCash Rule Sets

You create an AutoCash rule set from a combination of the six AutoCash rules. You enter the rules in the order in which you want to use them to apply a receipt to an open debit item.

The AutoCash rules are:

  • Match Payment with Invoice

  • Clear the Account

  • Clear Past Due Invoices

  • Clear Past Due Invoices Grouped by Payment Terms

  • Apply to the Oldest Invoice First

  • Combo Rule

When you apply a receipt, Receivables uses the first rule in the AutoCash rule set. If the first rule in the set doesn't find a match, Receivables uses the next rule in the sequence, and so on until it can apply the receipt.

These examples illustrate how each rule applies receipts to transactions and updates customer balances.

Match Payment with Invoice

The Match Payment with Invoice rule applies a receipt to a single invoice, debit memo, or chargeback only if the receipt amount exactly matches the amount of the debit item. If more than one debit item has an open amount that matches the receipt amount, Receivables applies the receipt to the item with the earliest due date. If more than one debit item has the same amount and due date, Receivables applies the receipt to the item with the lowest payment schedule ID number (internal identifier).

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the remaining amount due on the debit item. The rule ignores the value of the Apply partial receipts option.

For example, consider the following scenario:

Item/Option Value

Discounts

Earned Only

Late Charges

No

Receipt

$1800

Receipt Date

14-JAN-03

Discount Grace Days

5

The invoice details are:

Invoice Number Invoice Amount Discount Payment Terms Invoice Date Due Date

600

$2000

$20

10% 10/Net 30

01-JAN-03

30-JAN-03

The payment terms assigned to this invoice include a 10% discount if the invoice is paid within 10 days, and the open balance calculation on the AutoCash rule set allows for earned discounts. Even though the invoice is paid after the 10 day period, Receivables adds the 5 discount grace days, making this invoice eligible for a 10% discount.

The remaining amount due on the invoice on January 14 is $1800. Since the remaining amount due matches the receipt amount, the receipt is applied. If there had been no discount grace days, Receivables couldn't apply the receipt because the remaining amount of the invoice would be $2000.

Clear the Account

The Clear the Account rule applies a receipt only if the receipt amount exactly matches the customer open balance. Receivables includes all open debit and credit items when calculating the customer open balance. Open credit items include credit memos, on-account credits, and on-account and unapplied cash. The rule ignores the value of the Apply partial receipts option.

The Clear the Account rule uses the following equation to calculate the open balance for each debit item:

Open Balance = Original Balance + Late Charges - Discount

Receivables then adds the balance for each debit item to determine the total account balance. The rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an unapplied or on-account receipt to a debit item.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the customer open balance.

For example, consider the following scenario:

Item/Option Value

Late Charges

Yes

Items in Dispute

Yes

Receipt

$590

This table shows the customer activity:

Past Due Debits/Credits Invoice Amount Late Charges In Dispute

Invoice 45

$500

$40

Yes

Invoice 46

$300

$0

N/A

Credit Memo 100

$50

N/A

N/A

Unapplied Cash

$200

N/A

N/A

Since the Late charges and Items in dispute options are enabled, the open balance for this customer is $590. Because the receipt amount matches the customer open balance, the receipt can be applied.

If the receipt amount didn't exactly match the customer account balance, Receivables would use the next rule in the set to attempt to apply the receipt.

Clear Past Due Invoices

The Clear Past Due Invoices rule applies a receipt only if the receipt amount exactly matches the customer past due account balance. Receivables includes all open past due debit and credit items when calculating the past due account balance. The rule ignores the value of the Apply partial receipts option.

The Clear Past Due Invoices rule only applies the receipt to items that are currently past due. A debit item is considered past due if the invoice due date is earlier than or equal to the date of the receipt that is currently being applied. Receivables uses the receipt date for unapplied and on-account cash, and the credit memo date for credit memos and on-account credits, to determine whether to include these amounts as part of the customer past due account balance.

For example, if you apply a receipt with a receipt date of 10-JAN-03, all unapplied and on-account cash, and all credit memos and on-account credits, that have a transaction date (receipt date or credit memo date) equal to or earlier than 10-JAN-03 are included when calculating the customer past due account balance.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the customer past due account balance. The settings of the Late charges and Items in dispute options may prevent a past due debit item from being closed, even if the receipt amount matches the customer past due account balance.

For example, consider the following scenario:

Item/Option Value

Late Charges

No

Items in Dispute

No

Receipt

$420

This table shows the customer activity:

Past Due Debits/Credits Invoice Amount Late Charges In Dispute

Invoice 209

$300

$0

N/A

Invoice 89

$250

$0

Yes

Invoice 7

$120

$30

N/A

Since the Late charges and Items in dispute options are not enabled, Receivables doesn't include Invoice 89 ($250) or late charges for Invoice 7 ($30) in the calculation of the customer past due account balance. Therefore, the past due account balance for this customer is $420. Because the receipt amount matches the customer past due account balance, the receipt is applied. However, Invoice 7 and Invoice 89 are still open, past due debit items.

Clear Past Due Invoices Grouped by Payment Terms

The Clear Past Due Invoices Grouped by Payment Terms rule applies a receipt only if the receipt amount exactly matches the sum of the customer credit memos and past due invoices. This rule is similar to the Clear Past Due Invoices rule, but it first groups past due invoices by payment terms and uses the oldest transaction due date within the group as the group due date.

A debit item is considered past due if the invoice due date is earlier than the date of the receipt that is currently being applied. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer account balance.

For example, if you apply a receipt with a receipt date of 10-JAN-03, credit memos that have a transaction date equal to or earlier than 10-JAN-03 are included. Credit memos don't have payment terms, so they are included in each group.

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the sum of the customer credit memos and past due invoices. The settings of the Late charges and Items in dispute options may prevent a past due debit item from being closed, even if the receipt amount matches the sum of the customer credit memos and past due invoices.

For example, consider a $900 receipt applied on 25-JUN. This table shows the related customer activity:

Transaction Number Payment Terms Due Date Invoice Amount

1

A

25-MAY

$500

2

A

25-JUN

$200

3

A

25-JUN

$200

4

B

20-JUN

$900

5

C

25-MAY

$905

Receivables groups these transactions as follows:

  • Group 1: Transactions 1,2,3 Amount: $900 Group Due Date: 25-MAY

  • Group 2: Transaction 4 Amount: $900 Group Due Date: 20-JUN

  • Group 3: Transaction 5 Amount: $905 Group Due Date: 25-MAY

Since both Groups 1 and 2 match the receipt amount, Receivables selects the group with the oldest due date (Group 1) and applies the receipt to the transactions in this group.

Apply to the Oldest Invoice First

The Apply to the Oldest Invoice First rule applies receipts to customer debit and credit items, starting with the item with the oldest due date. Receivables uses the values specified for the AutoCash rule set open balance calculation to determine the oldest outstanding item for the customer.

For example, consider the following scenario:

Item/Option Value

Apply Partial Receipts

Yes

Late Charges

No

Receipt

$200

This table shows the customer activity:

Invoice Number Invoice Amount Late Charges Due Date

801

$0

$35

01-DEC-02

707

$450

$0

01-JAN-03

If you compare only the due dates for the two invoices, invoice 801 is the oldest invoice. However, Receivables also checks the open balance calculation and automatic matching rule options for the AutoCash rule set. Since the Late charges option is not enabled, Receivables ignores invoice 801 (because the remaining amount only consists of late charges) and applies the $200 receipt to invoice 707.

If the Apply partial receipts option were not enabled, Receivables couldn't apply this receipt and would look at the next rule in the sequence.

Combo Rule

The Combo Rule applies a receipt to two invoices, debit memos, or chargebacks only if the receipt amount exactly matches the amount of the two debit items. If more than one combination of two debit items has a total open amount that matches the receipt amount, Receivables applies the receipt to the combination of items with the earliest due date. If more than one combination of two debit items has the same amount and due date, Receivables applies the receipt to the combination of items with the lowest payment schedule ID number (internal identifier).

Receivables uses the values specified for the AutoCash rule set open balance calculation and the number of discount grace days assigned to the customer profile to determine the remaining amount due on the debit items. The rule ignores the value of the Apply partial receipts option.

For example, a lockbox contains these five open invoices:

Invoice Number Invoice Amount

101

$50.00

201

$200.00

301

$175.00

401

$372.00

501

$127.00

The lockbox contains a receipt for $572. Using the Combo Rule as the first AutoCash rule, the receipt is applied to invoices 201 and 401.

This example demonstrates how to create and use an AutoCash rule set. You create an AutoCash rule set to manage the payments received from Global Freight Carriers. You have an earned discount arrangement with this company but with no payment or discount grace days, and you don't add late charges for payments received beyond the due date.

Create the AutoCash Rule Set

Create the AutoCash Rule set using these values:

Field Value

Open Balance Calculation: Discounts

Earned Only

Open Balance Calculation: Late Charges

No

Open Balance Calculation: Items in Dispute

No

Automatic Matching Rules: Apply Partial Receipts

Yes

Automatic Matching Rules: Remaining Remittance Amount

On Account

AutoCash Rule

1. Match Payment with Invoice

AutoCash Rule

2. Clear The Account

AutoCash Rule

3. Apply To The Oldest Invoice First

Process a Payment Using the AutoCash Rule Set

Global Freight Carriers has the following outstanding invoices, none of which are in dispute:

Number Amount Remaining Due Date Discount Date Discount Amount

123

$200

11-DEC-02

01-DEC-02

$20

124

$300

08-DEC-02

30-NOV-02

$30

125

$150

13-DEC-02

28-NOV-02

$15

A payment was entered for Global Freight Carriers for $600 with a deposit date of 10-DEC-02.

Using the AutoCash rule set that you created, Receivables processes the payment in this way:

  1. AutoCash rule 1, Match Payment with Invoice, fails because none of the customer open items have a remaining amount due that is equal to the amount of the receipt ($600).

  2. Receivables looks at AutoCash rule 2.

  3. AutoCash rule 2, Clear the Account, fails because the customer calculated account balance ($650) is not the same as the amount of the receipt.

  4. Receivables looks at AutoCash rule 3.

  5. Receivables uses AutoCash rule 3, Apply to the Oldest Invoice First.

    1. Receivables first applies the receipt to the oldest invoice, Invoice 124 for $300, and performs these calculations:

      • Since the discount date of 30-NOV-02 has passed and the Discount field is set to Earned Only, the $30 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

      • Because the Late Charges option is set to No, late charges are not included in the customer open balance calculation. The remaining receipt amount is now $300.00.

    2. Receivables now applies $200 to the next oldest invoice, Invoice 123, and performs these calculations:

      • As with Invoice 124, the discount date for Invoice 123 has passed and the $20 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

      • Because the Late Charges option is set to No, late charges are not included in the customer open balance calculation. The remaining receipt amount is now $100.

    3. Receivables applies the remaining $100 to Invoice 125 ($150) as a partial receipt because the Apply partial receipts option is set to Yes.

      Note: If the Apply partial receipts option were set to No, Receivables couldn't apply the remaining amount to Invoice 125. Instead, it would be placed on account, because the Remaining Remittance Amount option is set to On Account.
      • As with the other invoices, the discount date for Invoice 125 has passed and the $15 discount is no longer available.

      • If there are no late charges for this invoice, the amount due remaining is reduced from $150 to $50, and remains open.

FAQs for AutoCash Rule Sets

During payment processing, Receivables uses the Match Receipts By rules to attempt to match receipts to open transactions, and either apply receipts automatically or present recommendations for receipt application. If transactions can't be matched or transaction information is not available, Receivables uses the AutoCash rule set, defined for the customer profile either at the customer site or customer level, to apply the receipt.

If the customer doesn't have an AutoCash rule set assigned to a profile, Receivables uses the AutoCash rule set assigned to system options and the number of discount grace days defined in the customer site or customer profile to apply the receipt.

If none of the rules in the AutoCash rule set apply, Receivables places the remaining amount either unapplied or on-account, depending on the setting of the Remaining Remittance Amount option on the AutoCash rule set.

Use the AutoCash rule set Apply partial receipts option with the Apply to the Oldest Invoice First rule. If you enable this option, you can apply a receipt to a transaction that is less than the amount required to close the debit item.

If the AutoCash rule set doesn't use partial receipts but does include late charges in the open balance calculation, then Receivables can interpret a receipt application against a transaction amount plus late charges as a partial receipt.

For example, you intend to close a $100 transaction by applying a $100 receipt, but the transaction has since accumulated a $10 late charge. If the Apply partial receipts option is not enabled, Receivables can't apply the $100 receipt to what is now a $110 open debit item.

Approval Limits

You can define approval limits for your users for specific transaction activities and amount ranges per currency. The document types identify the transaction activities that a user can approve.

Document Types

Adjustment

Define Adjustment approval limits by currency and amount. Receivables uses approval limits that have a document type of Adjustment when you create or approve an adjustment.

When you enter an adjustment that is outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.

Receipt Write-off

Define Receipt Write-off approval limits by currency and amount. Receivables uses approval limits with this document type whenever you attempt to write off either an unapplied receipt amount or an underpayment on a receipt.

You can't write off a receipt amount that is outside your approval limit range. In addition, the approval limits for write-offs are separate from, but can't exceed, the Receivables system options write-off amounts.

Credit Memo Refund

Define Credit Memo Refund approval limits by currency and amount. Receivables uses approval limits with this document type whenever you attempt to refund an on-account credit memo.

FAQs for Approval Limits

You can only assign approval limits to valid users that are defined in your organization. The combination of user, document type, and currency identify a specific approval limit record. You can, for example, define multiple approval limit ranges for the same user and document type in each currency defined in your system.

Be sure to update approval limits when personnel changes occur.

Credit Memo Workflow

You can configure manual review and approval of credit memo requests against Receivables transactions using Oracle Business Rules. You can also capture additional information about the credit request and its related workflow notifications.

The manual credit memo request approval flow sends email or online notifications to each designated approver. Each approver can review the details of the credit request, as well as enter and update information related to credit memo approval.

Configure the Manual Workflow Notification Process

Configure these tasks in sequence to enable the manual credit memo request approval flow:

  • FinArTrxnsCreditMemosAutomaticManual: By default this task is set to Automatic, for automatic creation of the credit memo (business rule 1=1). You can set this task to Manual to initiate the manual review and approval of the credit request.

    This task by itself doesn't enable the workflow notifications.

  • FinArTrxnsCreditMemosCreationPostProcess: After you enable the manual review of credit requests, use this task to enable the workflow notifications for manual reviews.

    You can configure multiple reviewers for this workflow using the task configuration assignee rules.

To configure the manual workflow notification process:

  1. Navigate to the BPM Worklist.

  2. From the user drop-down list, select Administration.

  3. Click the Task Configuration tab.

  4. In the Tasks to be Configured: Search field, enter *Credit and click the Go icon.

    This displays the human tasks (HT) available for Credit Memos.

  5. Select FinArTrxnsCreditMemosAutomaticManual and configure the task for manual credit request reviews using the output value HtOutcmeCreateManualCreditMemo.

  6. Select FinArTrxnsCreditMemosCreationPostProcess and configure the workflow process for manual credit request reviews.

  7. Set up the routing rules for your workflow notifications.

  8. Set up the BIP template for the notification window according to your requirements.

    You can copy the standard template and modify its content using the BIP editing tools.

You can use additional attributes in Assignee rule conditions to configure the workflow routing rules. These attributes include:

  • Salesperson Name

  • Salesperson Email ID

  • Sum of all Adjustments Amounts

  • Sum of all Receipts Amounts

  • Credit Memo Reason Code Descriptive Flexfield Attribute 1-15

  • Invoice Line Description

  • Collector Descriptive Flexfield Attribute 1-15

  • Line Level Credit

  • Invoice Line Type

  • Invoice or Line Adjustments

  • Receipts Applied

  • Receivables System Options Descriptive Flexfield Attribute 1-15

  • Item Number

  • Line Amount Requested

  • Transaction Information Descriptive Flexfield Attribute 1-15

  • Revenue Scheduling Rule Start Date

  • Revenue Scheduling Rule End Date

  • Revenue Scheduling Rule Number of Periods

  • Revenue Scheduling Rule Rule Type

  • Revenue Scheduling Rule Name

  • Tax Credit Amount Requested

Enable Privileges for Review Credit Memo Request

Use these three privileges to maintain user access to the Review Credit Memo Request page:

  • IEX_REVIEW_CREDIT_REQUEST_PRIV (Review Credit Request): This privilege lets an approver:

    • Access the Review Credit Request page.

    • Use the View Transaction Activities button to access the original transaction activities.

    • Enter comments in the Internal Comments field.

  • IEX_UPDATE_DISPUTE_TYPE_PRIV (Update Dispute Type on Credit Request): This privilege lets an approver update the value in the Dispute Type field.

  • IEX_UPDATE_REBILL_DETAILS_PRIV (Update Rebill Details on Credit Request): This privilege lets an approver update the values in the Rebill Number and Rebill Group fields.

The privilege Review Credit Request is included by default with the duty roles Billing Management Duty and Collections Management Basic.

You can add the privileges Update Dispute Type on Credit Request and Update Rebill Details on Credit Request to the required duty roles according to your business practices for specific users.

There are two predefined rule sets for the credit memo workflow: Collection agent rule set and Non-collection agent rule set.

These two predefined rule sets refer to two approval groups that are not predefined. The approval groups are:

  • Collection_Manager_Approval_Group

  • Billing_Manager_Approval_Group

You must define the two predefined approval groups and assign users to the groups using these steps:

  1. Create one approval group called Collection_Manager_Approval_Group and one approval group called Billing_Manager_Approval_Group.

  2. Assign the users that you want to each approval group.

Note: You must assign the user with the Billing Manager role to the Billing_Manager_Approval_Group.

Statements

Print statements to provide your customers with a complete record of their invoice, debit memo, chargeback, receipt, on-account credit, credit memo, and adjustment activity for a specified period.

To set up for statements, complete these tasks:

  • Set Receivables System Options for Statements

  • Define Remit-to Addresses

  • Define Statement Cycles

  • Define Customer Site Profiles

Set Receivables System Options for Statements

Set the necessary Receivables system options for statement processing.

To set Receivables system options for statements:

  1. Navigate to the Create System Options or Edit System Options page.

  2. Select the applicable business unit.

  3. Click the Billing and Revenue tab, if it is not already displayed.

  4. Enable the Print remit-to address option to print your remit-to addresses on your customer statements.

  5. Enable the Print home country option to print your home country on transactions and statements that refer to addresses in that country.

  6. In the Default Country field, select a country to use as your home country. This is the default country value for your remit-to addresses. The home country is also used in tax calculations and for taxpayer ID and tax registration number validation.

  7. Complete or update the rest of Receivables system options according to your requirements, and save.

Define Remit-to Addresses

Define remit-to addresses to provide default remit-to information on statements and transactions.

To define a remit-to address:

  1. Navigate to the Create Remit-to Address page.

  2. In the Remit-to Address Set field, select a reference data set.

  3. The Country field displays the default country defined in Receivables system options. If necessary, select another country.

  4. Enter the address details and save.

  5. In the Receipt from Criteria section, click the Create icon to open the Create Receipt from Criteria window. Use this window to assign the remit-to address you just created to customer bill-to sites in specified locations.

  6. In the Country field, select a country to assign customer bill-to sites this remit-to address.

  7. If necessary, use the State field and Postal Code fields to further limit the remit-to address assignment, and save.

Define Statement Cycles

Define statement cycles to determine when to send statements to your customers.

To define a statement cycle:

  1. Navigate to the Manage Statement Cycles page.

  2. In the Search Results section, click the Add icon.

  3. In the Name field, enter a name for this statement cycle.

  4. In the Interval field, select the interval that determines how often to generate statements: weekly, monthly, quarterly.

  5. In the Cycle Dates section, click the Add icon.

  6. In the Business Unit field, select the business unit that will use this statement cycle.

  7. In the Statement Date field, enter the first date on which to print statements for the statement cycle.

  8. Repeat steps 5 to 7 until you have the appropriate number of rows for the statement cycle interval for each applicable business unit.

    For example, enter four rows for a quarterly interval or twelve rows for a monthly interval to cover the period of one year.

  9. Enable the Skip option on a row if you want to skip an interval in the statement cycle.

    For example, after creating a statement cycle with a monthly interval and twelve monthly statement dates, you decide to send statements bi-monthly instead of monthly. You can enable the Skip option on every other row to reduce the number of statements to six per year.

  10. Complete the remaining fields according to your requirements, and save.

Define Customer Site Profiles

After you define remit-to addresses and statement cycles, you must enable the appropriate profile settings on each customer bill-to site to which you plan to send statements. If you are not using one statement site for the customer, you can, depending on your requirements, assign a different statement cycle to the bill-to sites belonging to the same customer account. In this way each bill-to site can have its own statement for its site transactions.

To define customer site profiles for statements:

  1. Navigate to the Edit Site page of the applicable customer site.

  2. Navigate to the Statement and Dunning section.

  3. Enable the Send statement option.

  4. In the Statement Cycle field, select the statement cycle to use for this site.

  5. Click the Late Charges tab.

  6. Navigate to the Currency Settings section.

  7. Click the Add icon.

  8. In the Currency field, select the currency used by this site.

  9. In the Minimum Statement Amount field, enter a minimum amount to generate statement. Receivables generates statements for the site whenever the minimum outstanding balance in the given currency is greater than this amount.

  10. Complete the remaining fields according to your requirements, and save.

Use statement cycles to determine when to send statements to your customers. You assign statement cycles to customer and site level profiles.

If you print statements for a specific customer, then:

  • If you defined a statement site for the customer, Receivables uses the statement cycle defined in the customer account profile as the default statement cycle to use for printing.

  • If you didn't define a statement site, Receivables uses the statement cycle defined in the customer site profile for each applicable bill-to site included in the print run.

If you don't select a customer, then Receivables prints statements for all customers that have a statement cycle that matches the statement cycle you enter for the print run.

When you create a statement cycle, you define the interval to use for the cycle (weekly, monthly, quarterly) and the dates on which to print statements for the cycle. You can also indicate if Receivables should skip certain statement dates.

Receivables includes all activity from the last time you printed a statement for this customer to the current statement date, even if the customer statement cycle is set up to skip printing on one or more statement dates. Receivables also includes open debit items from prior periods in the statement.

Scenario

Consider the following criteria:

  • System Date: 03-SEP-11

  • Statement Date: 01-SEP-11

  • Previous Statement Date: 01-JUN-11 (skipped)

  • Statement Cycle: Quarterly

The activity included in this statement spans the date the statement was last printed on 01-MAR-11 to the current statement date of 01-SEP-11. The previous statement dated 01-JUN-11 had been skipped, so the activity for that period now shows on the current statement.

This figure illustrates the activity included in this statement:

This figure contains two lines showing transaction activity
and statement dates, to illustrate the results of printing a statement
according to the criteria specified in the example.

This table provides an explanation of the logic used to include particular transactions on the statement based on transaction date.

Invoice Creation Date Included in Statement?

Invoice Date: 28-FEB-11

No, unless it is either still open or was closed between 01-MAR-11 and 31-AUG-11.

Invoice Date: 30-AUG-11

Yes, because the invoice date is between the date the statement was last printed and the statement date.

Invoice Date: 02-SEP-11

No, because the invoice date is later than the statement date.

FAQs for Statements

You can designate one of the sites belonging to a customer account as a statement site. If you create a statement site, Receivables generates a single, consolidated statement for all the customer bill-to sites, rather than a statement for each site. You can only define one active statement site per customer account.

To create a statement site:

  • Assign the site the Statements business purpose.

  • Set the Statement, Dunning, and Late Charges Site Profiles Used profile option to Yes.

All receipts, including on-account and unapplied receipts, appear on the statement of the corresponding bill-to site.

If you create a statement site for the customer, then Receivables summarizes on-account and unapplied receipts as credits and prints them on a separate page of the consolidated statement, before a summarized listing of subtotals for each of the customer bill-to sites.

FAQs for Standard Messages

Yes, you can write a message in any language that suits the needs of your enterprise. For any language, the text of a standard message can't exceed 255 characters. Receivables doesn't perform any other validation on messages.

You can print standard messages on customer statements, and on late charge documents presented as debit memos or interest invoices.

For statements, active standard messages appear as list of value choices in the Create Customer Statements process. The message you select appears at the end of the customer statement.

For late charge documents, active standard messages appear in the choice list of the Message Text field in the Late Charges tabbed section of the applicable customer or site profile. The message you select appears in the Notes section of the late charge document for this customer.

FAQs for Distribution Sets

Use distribution sets to account for miscellaneous, or non-invoice related, receipts. Distribution sets are groups of general ledger code combinations that you define to determine the credit accounts for positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts.