3Define Customer Billing Configuration

This chapter contains the following:

AutoInvoice

To ensure that the AutoInvoice process works properly, you need to prepare your Receivables environment for any new data that you want to import. If your original system uses any setup data which is not yet defined in Receivables, you must define this data before using AutoInvoice.

Data Checklist

Ensure that you have set up and updated the appropriate records in Receivables and related applications.

Add or update this setup data:

  • Add or import customers, if your original system contains data for customers that are not yet defined in Receivables.

  • Add units of measure, if your original system uses units of measure not yet defined.

  • Add or update in General Ledger this data:

    • Currencies, if your original system uses currencies not yet defined.

    • Accounting flexfield segment values, if your original system uses values not yet defined.

  • Add or update in Tax this tax data:

    • Tax rates assigned to tax rate codes that are not yet defined.

    • Tax rates associated with products shipped to specific locations.

    • Full or partial customer and item tax exemptions.

  • Add or update these Receivables lookup codes:

    • Free on Board (FOB) lookup codes, if your original system uses FOB point codes not yet defined.

    • Freight carrier lookup codes.

  • Add or update this Receivables data:

    • AutoAccounting (this is a required setup to use AutoInvoice)

    • Payment terms

    • Transaction types

    • Transaction sources

    • Salespersons

    • Revenue scheduling rules

AutoInvoice Setup

Review and update Receivables data specific to AutoInvoice.

Review and update this data:

  • AutoInvoice Grouping Rules: Define additional grouping rules or update the default grouping rule provided by Receivables. AutoInvoice uses grouping rules to determine how to create transactions.

    AutoInvoice uses the following hierarchy when determining the grouping rule to use:

    • Transaction source

    • Customer site

    • Customer profile

    • System options

  • AutoInvoice Line Ordering Rules: Define line ordering rules for AutoInvoice to determine how to order transaction lines. AutoInvoice randomly orders lines on your transactions if you don't define line ordering rules.

  • AutoInvoice Transaction Source Automatic Receipt Handling: If you want AutoInvoice to automatically evaluate imported credits for receipt handling, enable the Receipt Handling for Credits option on the AutoInvoice transaction source.

  • Receivables System Options: Set Receivables system options for AutoInvoice in the Billing and Revenue tab:

    • Customers section: Grouping Rule field: Assign an AutoInvoice grouping rule to use as part of the default hierarchy for selecting a grouping rule during transaction processing.

    • AutoInvoice section: Purge interface tables option: Enable this option to purge data automatically after running AutoInvoice.

    • AutoInvoice section: Maximum Memory in Bytes field: Enter a value that represents the amount of memory to allocate to AutoInvoice for validation.

    • AutoInvoice section: Log File Message Level field: Enter a level from 0 to 5 to indicate the amount of detail that you want to display in the AutoInvoice log file.

    • AutoInvoice section: Accounting Dates Out of Order field: Select Reject or Adjust to determine how AutoInvoice processes transactions when the accounting date is out of order within the document sequence.

      Note: You only use this setting when the primary ledger is enabled for document sequencing.
  • Profile Options: Set these profile options for AutoInvoice:

    • ID Flexfield Code: Specify the ID of the flexfield code used by AutoInvoice.

    • Maximum Lines per AutoInvoice Worker: Specify the maximum number of lines per AutoInvoice worker.

    • Source Code: Specify the source code used by AutoInvoice.

    • Use Parallel Hint: Enable parallel hints in AutoInvoice.

    • AutoInvoice Gather Statistics Allowed: If you set this profile option to Yes, then when you submit AutoInvoice, the program first analyzes the interface tables (RA_INTERFACE_LINES_ALL, RA_INTERFACE_DISTRIBUTIONS_ALL, and RA_INTERFACE SALESCREDITS_ALL) and gathers statistics to determine how best to execute the transaction import.

      If the number of records to be imported and the number of worker processes are approximately the same as the previous submission of AutoInvoice, then you can set this profile option to No and skip this analysis.

Transaction Flexfield

Receivables uses the transaction flexfield to uniquely identify each transaction and transaction line you import using AutoInvoice. Transaction flexfields are also used to reference and link transaction lines.

You must define both a line-level and a header-level transaction flexfield. All segments in the line-level transaction flexfield that refer to header information must also exist in the header-level transaction flexfield. For example, if you define a line-level transaction flexfield with four segments, and only the last two segments refer to line-level information, define the header-level transaction flexfield using the first two segments.

If you don't create Reference and Link-to transaction flexfields, then Receivables uses the line-level transaction flexfield structure to link and reference different lines. You don't have to define separate Reference and Link-to transaction flexfields in this case.

However, if you want to create your own form to enter interface data to display the Reference and Link-to transaction flexfields, then you must define these transaction flexfields. These flexfields must have the same flexfield structures as the line-level transaction flexfield.

This example illustrates how to use grouping rules to group transaction lines into transactions during AutoInvoice import.

Scenario

Define an AutoInvoice grouping rule that specifies that to appear on the same invoice, items must match on all mandatory attributes, such as currency (CURRENCY_CODE) and customer bill-to address (ORIG_SYSTEM_BILL_ADDRESS_ID), and must also match on the optional attribute of sales order type (SALES_ORDER_SOURCE).

Transaction Details

During AutoInvoice import, assume that all mandatory attributes match other than currency and customer bill-to address.

This figure illustrates how three imported invoices are created according to the AutoInvoice grouping rule defined in this example:

This figure illustrates the creation of three invoices
based on the mandatory grouping rule and the one optional attribute
of sales order type

Analysis

Items A and B share the same currency and sales order type, so they appear on the same invoice (Invoice 1). Item C has the same currency as A and B, but it has a different sales order type, so it appears on its own invoice (Invoice 2). Items D and E share the same currency and sales order type, so they appear on the same invoice (Invoice 3).

Result

Because of the optional attribute of sales order type, AutoInvoice created three invoices. If the grouping rule had designated only mandatory attributes, then AutoInvoice would have created only two invoices.

AutoInvoice grouping rules contain transaction attributes that must be identical for all items on the same transaction. For example, transaction number (TRX_NUMBER) is a mandatory attribute of all grouping rules. If you have two records in the interface tables with different transaction numbers, AutoInvoice creates separate transactions for each record.

The AutoInvoice grouping rule provides both mandatory and optional transaction attributes for imported transactions. You can't delete a mandatory attribute from any grouping rule, but you can add optional attributes to the mandatory attributes to create a new grouping rule.

Mandatory Transaction Attributes

The AutoInvoice grouping rule provides the following mandatory transaction attributes from the RA_INTERFACE_LINES_ALL table. All of these transaction attributes apply to all transactions created using AutoInvoice grouping rules:

  • BILL_PLAN_NAME

  • BILL_PLAN_PERIOD

  • COMMENTS

  • CONS_BILLING_NUMBER

  • CONVERSION_DATE

  • CONVERSION_RATE

  • CONVERSION_TYPE

  • CREDIT_METHOD_FOR_ACCT_RULE

  • CREDIT_METHOD_FOR_INSTALLMENTS

  • CURRENCY_CODE

  • CUSTOMER_BANK_ACCOUNT_ID

  • CUST_TRX_TYPE_ID

  • DOCUMENT_NUMBER

  • DOCUMENT_NUMBER_SEQUENCE_ID

  • GL_DATE

  • HEADER_ATTRIBUTE1-15

  • HEADER_ATTRIBUTE_CATEGORY

  • HEADER_GDF_ATTRIBUTE1-30

  • INITIAL_CUSTOMER_TRX_ID

  • INTERNAL_NOTES

  • INVOICING_RULE_ID

  • ORIG_SYSTEM_BILL_ADDRESS_ID

  • ORIG_SYSTEM_BILL_CONTACT_ID

  • ORIG_SYSTEM_BILL_CUSTOMER_ID

  • ORIG_SYSTEM_SHIP_CONTACT_ID

  • ORIG_SYSTEM_SHIP_CUSTOMER_ID

  • ORIG_SYSTEM_SOLD_CUSTOMER_ID

  • ORIG_SYSTEM_BATCH_NAME

  • PAYMENT_SERVER_ORDER_ID

  • PAYMENT_SET_ID

  • PREVIOUS_CUSTOMER_TRX_ID

  • PRIMARY_SALESREP_ID

  • PRINTING_OPTION

  • PURCHASE_ORDER

  • PURCHASE_ORDER_DATE

  • PURCHASE_ORDER_REVISION

  • REASON_CODE

  • RECEIPT_METHOD_ID

  • RELATED_CUSTOMER_TRX_ID

  • SET_OF_BOOKS_ID

  • TERM_ID

  • TERRITORY_ID

  • TRX_DATE

  • TRX_NUMBER

Optional Transaction Attributes

The AutoInvoice grouping rule provides the following optional transaction attributes from the RA_INTERFACE_LINES_ALL table. You can assign one or more of these attributes to transaction classes within a grouping rule:

  • ACCOUNTING_RULE_DURATION

  • ACCOUNTING_RULE_ID

  • ATTRIBUTE1-15

  • ATTRIBUTE_CATEGORY

  • INTERFACE_LINE_ATTRIBUTE1-15

  • INTERFACE_LINE_CONTEXT

  • INVENTORY_ITEM_ID

  • REFERENCE_LINE_ID

  • RULE_START_DATE

  • SALES_ORDER

  • SALES_ORDER_DATE

  • SALES_ORDER_LINE

  • SALES_ORDER_REVISION

  • SALES_ORDER_SOURCE

  • TAX_CODE

  • TAX_RATE

AutoInvoice uses line ordering rules to determine how to order and number each line of a transaction, after AutoInvoice has grouped transactions into invoices, debit memos, and credit memos. You can specify am AutoInvoice line ordering rule for each AutoInvoice grouping rule that you create.

Transaction Attributes

AutoInvoice provides the following transaction attributes from the RA_INTERFACE_LINES_ALL table for use with line ordering rules:

  • ACCOUNTING_RULE_DURATION

  • ACCOUNTING_RULE_ID

  • ACCOUNTING_RULE_NAME

  • AMOUNT

  • ATTRIBUTE_CATEGORY

  • ATTRIBUTE1-15

  • FOB_POINT

  • INTERFACE_LINE_ATTRIBUTE1-15

  • INTERFACE_LINE_CONTEXT

  • ORIG_SYSTEM_SHIP_ADDRESS_ID

  • QUANTITY

  • QUANTITY_ORDERED

  • REASON_CODE

  • REASON_CODE_MEANING

  • REFERENCE_LINE_ATTRIBUTE1-15

  • REFERENCE_LINE_CONTEXT

  • REFERENCE_LINE_ID

  • SALES_ORDER

  • SALES_ORDER_DATE

  • SALES_ORDER_LINE

  • SALES_ORDER_SOURCE

  • SHIP_DATE_ACTUAL

  • SHIP_VIA

  • TAX_CODE

  • UNIT_SELLING_PRICE

  • UNIT_STANDARD_PRICE

  • UOM_CODE

  • UOM_NAME

  • WAYBILL_NUMBER

FAQs for AutoInvoice

During AutoInvoice processing, if you have transaction lines that fail validation, the import process looks at the value of the Invalid Line field in the transaction source to determine what to do about the transaction.

If the value is Reject Invoice, then AutoInvoice rejects all of the transaction lines that make up one invoice according to the grouping rule, if any one of the transaction lines are invalid. For example, if a grouping rule specifies that three transaction lines should be created as one invoice and one of the transaction lines has an error, AutoInvoice rejects all three transaction lines and does not create an invoice.

However, if the value is Create Invoice, AutoInvoice rejects the one invalid transaction line and creates an invoice from the two remaining valid transaction lines.

During AutoInvoice processing, the import process validates that transaction and document numbers are unique after grouping has completed. In certain cases, AutoInvoice will create multiple invoices in the same group with the same transaction or document number. Once grouping is completed, AutoInvoice checks for duplicate transaction and document numbers and reports any lines that fail validation.

For example, two lines are imported with the same transaction number, but they have different currencies. These lines are split into two separate invoices during grouping due to the different currencies. Once grouping has completed, both of the invoices will fail validation due to identical transaction numbers.

If AutoInvoice uses grouping rules and it is processing a transaction class that is not defined for a grouping rule, then AutoInvoice only uses the mandatory transaction attributes to group transactions.

Assign an AutoInvoice line ordering rule to an AutoInvoice grouping rule when you want to organize the transaction lines belonging to a transaction created by the grouping rule in a specific order. Use the Order By Type to specify whether to order the values belonging to a transaction attribute from least to greatest (Ascending) or greatest to least (Descending).

For example, if you are importing transactions from Distributed Order Orchestration, you can define a line ordering rule with the attribute SALES_ORDER_LINE to list the items on the invoice in the same order as they appear on the sales order.

Or, you can define a line ordering rule with the attribute AMOUNT and an Order By Type of Descending to ensure that the highest invoice line amounts are listed first on the transactions created by the grouping rule.

Payment Terms

Use payment terms to identify due dates and discount dates on your customer transactions.

After you create payment terms, you can optionally assign them both to customer account and site profiles and to transaction types. The payment terms you assign are then assigned by default to transactions you create manually using the related customer account or site, or transaction type.

Considerations for payment terms include:

  • Payment Terms and Customer Profiles

  • Payment Terms and Discounts

  • Split Payment Terms with Installments

  • Prepayment Payment Terms

Payment Terms and Customer Profiles

The setup of payment terms on customer account and site profiles influences the use and availability of payment terms on transactions you create manually.

When you create a transaction manually, Receivables looks for payment terms to assign to the transaction in this order:

  1. Payment terms assigned to the site profile of the bill-to customer.

  2. Payment terms assigned to the account profile of the bill-to customer.

  3. Payment terms assigned to the transaction type.

You must enable the Override terms option on the customer account or site profile in order to change the payment terms assigned to the transaction. Enabling the Override terms option provides more flexibility in assigning payment terms to manual transactions.

If you do not enable the Override terms option on customer account and site profiles, then:

  • You cannot change the payment terms assigned by default.

  • If you select a bill-to customer, and no payment terms were assigned either to the account or site profiles of this customer or to the transaction type, then no payment terms are available for use on the transaction.

    You can alternatively either select another bill-to customer or select payment terms before selecting a customer.

  • If you select payment terms and then select a bill-to customer, and no payment terms were assigned to the account or site profiles of this customer, then you cannot change the payment terms originally assigned.

Tip: If you intend to leave the Override terms option disabled on customer account and site profiles, then make sure that you assign payment terms to the transaction types that you intend to use for manual transactions.

Payment Terms and Discounts

Define standard payment terms for your customers to specify the due date and discount date for their open items. Payment terms can include a discount percent for early payment, and you can assign multiple discounts to each line of your payment terms.

For example, the payment terms named 2% 10, Net 30 indicates that a customer is allowed a two percent discount if payment is received within 10 days. After 10 days, the entire balance is due within 30 days of the transaction date with no applicable discount.

Enable the Allow discount on partial payments option to let your customers take discounts for partial payments on items associated with payment terms. A partial payment is a payment that is less than the remaining amount due. If you do this, you must also ensure that the Discount on partial payment Receivables system option is enabled.

Use the Discount Basis field to determine what amount to use to calculate discounts for the payment terms. If the payment terms use installments, you can assign discount percentages to each installment.

Use the Discount Basis Date field to select the date to use to calculate discounts. The choices are:

  • Receipt Date: Date the receipt is created.

  • Receipt Application Date: Date the receipt is applied to the transaction.

  • Deposit Date: Date the receipt is deposited into the remittance bank.

The discount is applied if the transaction is paid within the payment terms discount date. The formula is: Transaction Date + Discount Due By Period >= Discount Basis Date (Receipt Date/Receipt Application Date/Deposit Date).

Split Payment Terms with Installments

Create split payment terms for invoice installments that have different due dates. The payment terms determine the amount of each installment.

Use the Installment Option field to determine how to allocate the freight and tax charged to transactions. You can either distribute tax and freight charges across all installments, or allocate all freight and tax charges to the first installment.

Define the payment schedule for the split payment terms. The payment schedule determines when each installment is due, how much in each installment is due, and how much discount to offer in each installment.

Prepayment Payment Terms

You can optionally define prepayment payment terms by enabling the Prepayment option. You assign prepayment payment terms to transactions to indicate which transactions require prepayment for goods and services.

Prepayment payment terms do not require the capture of funds in advance of invoicing or the delivery of prepaid goods or services. You must establish specific business practices at your enterprise if you want to capture these funds in advance.

Split payment terms derive different amounts due in each installment of the payment schedule, depending on the setting of the Installment Option field.

If the base amount is different from the relative amount, and you set the Installment Option field to Allocate tax and freight, Receivables prorates the base amount across the relative amounts of the payment schedule based upon the ratio you define. Receivables uses the following equation to determine the original amount due for each installment:

Amount Due = Relative Amount/Base Amount * Invoice Amount

If you set the Installment Option field to Include tax and freight in first installment, the base amount and the relative amounts that you specify for the payment schedule only indicate how the original line amounts of the invoices to which you assign these payment terms are distributed across different installments.

In this case, the original freight and tax amounts are included in the first installment, in addition to the line amount allocated by the ratio of the base amount and the relative amount that you specify for the first payment. Receivables uses the following equation to determine the original amount due for the first installment:

Amount Due = (Relative Amount/Base Amount * Base Line Amount) + Base Freight Amount + Base Tax Amount

The payment terms Discount Basis field determines on what basis Receivables calculates the discount amount.

Discount Basis

Invoice Amount

Calculates the discount amount based on the sum of the tax, freight, and line amounts of transactions.

Lines Only

Calculates the discount amount based on only the line amounts of transactions.

Lines, Freight Items and Tax

Calculates the discount amount based on the amount of line items and their freight and tax amounts, but excludes freight and charges at the transaction header level.

Lines and Tax, not Freight Items and Tax

Calculates the discount amount based on the line items and their tax amounts, but excludes freight items and their tax lines.

Receivables uses different formulas to calculate discounts, depending on your setup, the payment terms on the transaction, and the type of payment received.

Receivables provides formulas for these discount events:

  • Maximum Discount

  • Earned Discounts and Partial Payments Allowed

  • Unearned Discounts with Partial Payment Discounts Allowed

  • Earned Discounts with Partial Payment Discounts Not Allowed

  • Unearned Discounts and Partial Payments Not Allowed

  • Discount on Lines Only

Maximum Discount

Receivables uses the following formula to determine the maximum discount amount:

Maximum Discount = (Amount Due Original) * (Highest Discount Percent - Discount Taken)

Earned Discounts and Partial Payments Allowed

If the receipt amount is greater than the remaining amount due, less the discount, Receivables uses the following formula to determine the earned discount:

Earned Discount = Amount Due Remaining * Discount Percent

If the receipt amount is either the equal to or less than the remaining amount due, less the discount, Receivables uses the following formula to determine the earned discount:

Earned Discount = (Receipt Amount * Discount Percent) / (1 - Discount Percent)

Unearned Discounts with Partial Payment Discounts Allowed

Receivables uses the following formula to determine unearned discounts if partial payments are allowed:

Unearned Discount = Maximum Discount - Earned Discount

Earned Discounts with Partial Payment Discounts Not Allowed

If the Allow discount on partial payments option on the payment terms is not enabled, Receivables only takes earned discounts if the receipt amount closes the installment.

Receivables uses the following formula to determine earned discounts, if partial payment discounts are not allowed and the receipt amount closes the installment:

Earned Discount = Amount Due Original * Discount Percent

Unearned Discounts and Partial Payments Not Allowed

If the Allow discount on partial payments option on the payment terms is not enabled, Receivables only takes unearned discounts if the receipt amount closes the installment.

Receivables uses the following formula to determine unearned discounts, if partial payments are not allowed and the receipt amount closes the installment:

Unearned Discount = (Amount Due Original) * (Maximum Discount Percent - Earned Discount)

Discount on Lines Only

If the Discount Basis field on the payment terms is set to Lines Only, Receivables does not take discounts on receipt amounts applied to tax, freight, or late charges. Receivables uses the following formula to determine the discount amount:

Line Percent = Discount Percent * (Sum of Lines + Sum of Line Adjustments - Sum of Line Credits) / (Amount Due Original + Sum of Adjustments - Sum of Credits)

Once you determine the discount line percent, use this as the discount percent in all of these formulas.

This example illustrates how Receivables derives discount information based on the date of the receipt.

When you enter receipts manually, Receivables determines whether discounts are allowed based on the payment terms, discount grace days, Receivables system options, transaction date, and the payment terms discount basis date (receipt date, receipt application date, or receipt deposit date). If discounts are allowed, Receivables determines the amount of both earned and unearned discounts, as determined by the details of your setup.

Scenario

Assume that you are using the following information:

  • Unearned Discounts = Yes

  • Payment Terms: 10/10, 5/15, Net 30

  • Discount Basis Date: Receipt Date

  • Discount Grace Days = 0

  • Calculate Discount on Lines Only = No

  • Allow Discount on Partial Payments = Yes

This table shows the discount details:

Percent Date On Lines Only On Partial Payments

5

17-DEC-10

NO

YES

10

12-DEC-10

NO

YES

Assume these invoice details:

  • Invoice #101

  • Invoice Date: 02-DEC-10

  • Due Date: 01-JAN-11

  • Amount: $1100

The following table displays the default discount amounts based on different receipt application dates. You can also see the amount of earned and unearned discounts that your customers can take.

Receipt Date Receipt Amount Default Discount Amount Message Line Earned Discount Allowed Unearned Discount Allowed

From 02-DEC-10 to 12-DEC-10

$990

$110

Discount Earned = 110

Total = 110

$110

None

After 17-DEC-10

$990

0

To take the unearned discount, you must update the amount.

Discount Earned = 0

Total = 110

None

$110

From 02-DEC-10 to 12-DEC-10

$1000

$10 of the receipt is left as Unapplied after the default discount.

$110

Discount Earned = 110

Total = 110

$110

None

From 13-DEC-10 to 17-DEC-10

$1000

After the default discount of $52.63, the receipt is fully applied. However, there is still a remaining balance of $47.37 on the invoice.

$52.63

To take the unearned discount, you must update the amount.

Discount Earned = 52.63

Total = 110

$52.63

$57.37

After 17-DEC-10

$1000

Since there is no default discount, the receipt is fully applied. There is a remaining balance of $100 on the invoice.

0

To take the unearned discount, you must update the amount.

Discount Earned = 0

Total = 110

None

$110

FAQs for Payment Terms

Balance forward billing payment terms pass the balance forward billing cycle to the Create Balance Forward Bill program. The billing cycle determines when customer balance forward bills are generated.

Because balance forward bills can't be split across installments, all settings related to installments on balance forward billing payment terms are disabled. You can't change existing payment terms back and forth for use as both non-balance forward billing and balance forward billing payment terms.

AutoAccounting

Define AutoAccounting to specify how to determine the default general ledger accounts for transactions that you enter manually or import using AutoInvoice. You must define AutoAccounting before you can enter transactions in Receivables. When you enter or update transactions, you can override the default general ledger accounts that AutoAccounting creates.

Account Types

Define an AutoAccounting record for each type of account. You can then assign either a table name or constant value to each segment of the account.

AutoInvoice Clearing

The clearing account for imported transactions. Receivables uses the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this option on the transaction source used for imported transactions.

Bills Receivable

The bills receivable account for your transactions. Receivables uses this account when you apply transactions to bills receivable.

Factored Bills Receivable

The factored bills receivable account for your bills receivable transactions.

Freight

The freight account for transactions.

Receivable

The receivable account for transactions.

Remitted Bills Receivable

The remitted bills receivable account for your bills receivable transactions.

Revenue

The revenue and late charges account for transactions.

Tax

The tax account for transactions.

Unbilled Receivable

The unbilled receivable account for transactions. Receivables uses this account when the transaction uses the In Arrears invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue before the invoicing rule bills it, Receivables uses this account.

Unearned Revenue

The unearned revenue account for transactions. Receivables uses this account when a transaction uses the In Advance invoicing rule. If the revenue scheduling rule on the transaction recognizes revenue after the invoicing rule bills it, Receivables uses this account.

Unpaid Bills Receivable

The unpaid bills receivable account for your bills receivable transactions.

Table Names

Enter either the table name or constant value that you want Receivables to use to retrieve information for each accounting flexfield segment of a given account.

Enter a constant value instead of a table name if you want AutoAccounting to always use the same value for a given segment. You must ensure that you enter information that is valid for this segment. For example, if you defined your Company segment as a two-character segment with valid values ranging from 00 to 10, you must enter a two-character value within this range.

Bill-to Site

Use the bill-to site of the transaction to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.

Drawee Site

Use the drawee site table to determine this segment of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account.

Remittance Banks

Use the remittance banks table to determine this segment of your factored bills receivable and remitted bills receivable account.

Salesperson

Use the salesperson table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.

If you select this option for AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with the salesperson on the transaction. If you select this option for the unbilled receivable account, Receivables uses the receivable account associated with the salesperson on the transaction.

If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.

Standard Lines

Use the memo line or inventory item on the transaction to determine this segment of revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue accounts.

If you select this option for AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to the memo line item or inventory item.

If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.

Tax

Use the tax account assigned to the tax rate codes on the transaction.

Transaction Types

Use the transaction types table to determine this segment of revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.

If the transaction has a line type of Line with an inventory item of Freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.

To implement AutoAccounting, you first define your AutoAccounting structure and then define information for each salesperson, transaction type, product, and tax rate code in order for AutoAccounting to properly create your default accounts.

You must define your AutoAccounting structure before you can enter invoices and credit memos, and you can only define one structure for each account type. During transaction creation, if AutoAccounting can't determine all of the accounting flexfield segments, it derives what it can and displays an incomplete accounting flexfield. You must provide any missing accounting flexfield information before you can complete a transaction.

Review these guidelines for each account type when creating your AutoAccounting structure:

  • AutoInvoice Clearing Account

  • Freight Account

  • Receivable Account

  • Revenue Account

  • Tax Account

  • Unbilled Receivable Account

  • Unearned Revenue Account

  • Available Information for Each Account

This table indicates the information that you can use to create each type of account. (Rec) and (Rev) indicate whether the account information is taken from the corresponding Receivables or Revenue accounting flexfield.

Information Source / AutoAccounting Type Constant Customer Bill-to Site Salesperson Transaction Type Standard Item Tax Rate Code

AutoInvoice Clearing

Yes

Yes

Yes (Rev)

Yes

Yes (Rev)

No

Freight

Yes

Yes

Yes

Yes

Yes (Rev)

No

Receivable

Yes

Yes

Yes

Yes

No

No

Revenue

Yes

Yes

Yes

Yes

Yes

No

Tax

Yes

Yes

Yes (Rev)

Yes

Yes (Rev)

Yes

Unbilled Receivable

Yes

Yes

Yes (Rec)

Yes

Yes (Rev)

No

Unearned Revenue

Yes

Yes

Yes (Rev)

Yes

Yes (Rev)

No

Notes on the table:

  • If AutoAccounting for the AutoInvoice Clearing, Tax, Unbilled Receivable, or Unearned Revenue account is based on Standard Item, Receivables uses the segment from the standard item Revenue accounting flexfield.

  • If AutoAccounting for the AutoInvoice Clearing, Tax, or Unearned Revenue account is based on Salesperson, Receivables uses the segment from the salesperson Revenue accounting flexfield.

  • If AutoAccounting for Unbilled Receivable is based on Salesperson, Receivables uses the segment from the salesperson Receivable accounting flexfield.

  • If the AutoInvoice Clearing, Revenue, Tax, Unbilled Receivable, or Unearned Revenue account is based on Salesperson, and there are multiple salespersons on the transaction, then Receivables creates separate distributions for each salesperson.

AutoInvoice Clearing Account

During AutoInvoice processing, Receivables uses the AutoInvoice clearing account to store any differences between the specified revenue amount and the (price * quantity) for imported invoice lines.

Receivables only uses the AutoInvoice clearing account if you enabled the Create clearing option on the transaction source assigned to imported transactions. However, you must define a clearing account whether or not you enable this option.

You can use constant value, customer bill-to site, salesperson, transaction type, and standard item for your AutoInvoice clearing account. If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.

Freight Account

The freight account controls the account in general ledger to which you post freight amounts. You can use constant value, customer bill-to site, salesperson, transaction type, and standard item to specify your freight account.

If you choose standard item, Receivables uses the specified Revenue accounting flexfield. In addition, you can't import transactions with header-level freight through AutoInvoice.

If the transaction has a line type of LINE with an inventory item of freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.

Receivable Account

The receivable account controls the account in your general ledger to which you post receivable amounts. You can use transaction type, customer bill-to site, salesperson, and constant value to specify your receivable account.

Revenue Account

The revenue account controls the account in your general ledger to which you post your revenue amounts. You can use transaction type, customer bill-to site, standard item, salesperson, and constant value to specify your revenue account.

Tax Account

The tax account controls the account in your general ledger to which you post tax amounts. You can use tax rate codes, customer bill-to site, salesperson, transaction type, standard item, and constant value to specify your tax account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.

Unbilled Receivable Account

Receivables uses the unbilled receivable account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction before the invoicing rule bills for the transaction, Receivables posts this amount to the unbilled receivable account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unbilled receivable account.

If you select standard item, Receivables uses the specified Revenue accounting flexfield. If you select salesperson, Receivables uses the salesperson Receivable accounting flexfield.

Unearned Revenue Account

Receivables uses the unearned revenue account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction after the invoicing rule bills for the transaction, Receivables posts this amount to the unearned revenue account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unearned revenue account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.

This example illustrates how to derive default accounting flexfield segments in AutoAccounting.

Receivables uses AutoAccounting to derive the default accounting on transactions, and uses the predefined setup in Subledger Accounting so that the Create Receivables Accounting program accepts the default accounts that AutoAccounting derives without change. However, if you modify the Subledger Accounting setup, you can instead select a constant value for all accounting flexfield segments.

These two scenarios illustrate how Receivables uses the AutoAccounting structure you define to determine your accounting flexfield defaults.

Flexfield with Four Definitions

You want to define a four segment revenue flexfield: 00-000-0000-000 (Company-Cost Center-Account-Product). You can define AutoAccounting to derive defaults for each segment:

  • Company, the first segment, is the constant 01.

  • Cost Center, the second segment, derives from the salesperson (John Doe).

  • Account, the third segment, derives from the transaction type (Standard Invoice).

  • Product, the fourth segment, derives from the standard line (20 Megabyte Hard Disk).

Salesperson John Doe enters a one line Standard Type invoice for a 20 Megabyte Hard Drive.

This figure illustrates how AutoAccounting derives the revenue flexfield based on a separate definition for each segment:

This figure illustrates the revenue flexfield created
from a separate definition for each segment

Flexfield with Two Definitions

You redefine the structure so that AutoAccounting only uses information from the transaction type (Standard Invoice) for segments 1 and 2, and standard line (consulting services) for segments 3 and 4.

This figure illustrates how AutoAccounting derives the revenue flexfield based on the same definitions for segments 1 and 2 and segments 3 and 4:

This figure illustrates the revenue flexfield created
using the same definition for segments 1 and 2, and using the same
definition for segments 3 and 4

FAQs for AutoAccounting

AutoAccounting derives the default accounting for each transaction accounting event in Receivables according to your setup. AutoAccounting assigns valid accounting flexfields to invoices and credit memos, and automatically generates valid accounting flexfields for all related accounts: freight, receivable, revenue, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue.

When you submit the Create Receivables Accounting program, this creates the subledger accounting entries. Subledger Accounting transfers the final accounting to General Ledger.

You can optionally define your own accounting rules in Subledger Accounting to create accounting that meets your business requirements. If you change the Subledger Accounting setup to create your own accounting, then Subledger Accounting overwrites the default accounts, or individual segments of accounts, that AutoAccounting originally derived during transaction entry.

Transaction Types

Use the Open Receivable and Post to GL options on the transaction type to manage posted and non-posted activities on transactions.

If the Open Receivable option is enabled, Receivables updates your customer balances each time you create a complete debit memo, credit memo, chargeback, or on-account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.

If the Post to GL option is enabled, Receivables posts transactions with this transaction type to general ledger. If this option is not enabled, then no accounting is generated for transactions with this transaction type.

Considerations for defining transaction types include:

  • Void Transaction Type

  • Updates to Customer Accounts and Aging

  • Updates to Accounting Only

Void Transaction Type

You can void a debit memo, credit memo, on-account credit, or invoice by defining a Void transaction type. When you define a Void transaction type, set the Open Receivable and Post to GL options to No. Then, as long as there is no activity against the transaction, and it has not been posted to general ledger, you can make the transaction invalid by changing the transaction type to Void.

This activity is not included on the Review Customer Account Details page since the activity does not modify the customer balance.

Updates to Customer Accounts and Aging

If you set the Open Receivable option to Yes and Post to GL option to No, Receivables updates customer accounts with the transaction activity of transactions assigned this transaction type. There is no effect on accounting.

Use transaction types with these settings during your initial implementation, where the transaction amount is included in the general ledger beginning balance for the receivable account, but activity still needs to be aged and payment collected against it. All related activities against the transaction, such as credit memos, payments, and adjustments, are accounted as affecting the customer balance. You can review these activities on the Review Customer Account Details page.

Updates to Accounting Only

If you set the Open Receivable option to No and Post to GL option to Yes, Receivables updates accounting without any impact on the customer balance.

Use transaction types with these settings when you want to adjust accounting activity, such as when you rebill a customer in order to reclassify the general ledger account. A credit memo and invoice with the Open Receivable option set to No are created where the credit memo reverses the general ledger account of the original invoice, and the invoice creates accounting with the new general ledger account. This activity is transparent to the customer because the original invoice is used for the cash application when payment is received.

This activity is not included on the Review Customer Account Details page since the activity does not modify the customer balance.

The transaction type that you assign to a transaction defines the type of application that is permitted against the transaction balance. This definition is managed by the Natural Application Only and Allow Overapplication options on the transaction type.

Natural application only lets you apply a payment or credit to a transaction that brings the transaction balance close to or equal to zero. For example, if an invoice has a balance due of $400, you can make applications against this transaction up to $400 only. With natural application, you can only bring the balance to zero.

Overapplication lets you apply more than the balance due on a transaction. For example, if you apply a $500 receipt to a $400 invoice, this overapplies the invoice by $100 and reverses the balance sign from positive to negative.

Use of Natural Application and Overapplication

Whether or not a transaction allows overapplication determines the actions that you can take on that transaction.

If a transaction that allows natural application only is paid in full, then in order to credit the transaction you must first unapply the receipt from the transaction before creating the credit.

If you want to use AutoInvoice to import credit memos against paid invoices and evaluate these credits for automatic receipt handling, then the transaction type of the paid invoices must allow natural application only. However, if the Receipt Handling for Credits option is not enabled on the transaction source of the transaction, AutoInvoice leaves the related credit memo in the interface tables until you unapply the receipt from the invoice.

Define the accounting for transaction types of class Invoice, Chargeback, Credit Memo, and Debit Memo. Receivables uses this information along with your AutoAccounting definition to determine the accounts to use for transactions with the applicable transaction type.

Revenue

Enter a revenue account, unless the transaction type doesn't allow freight.

If the Invoice Accounting Used for Credit Memos profile option is set to No, then a revenue account is not required for Credit Memo transaction types.

Freight

Enter a freight account, unless the transaction type doesn't allow freight.

Receivable

Enter a receivable account for all transaction types.

If the Post To GL option on the transaction type is enabled, Receivables creates a receivable transaction record using this account in order to transfer accounting to general ledger and create a journal entry.

For Chargeback transaction types, enter the Receivable Chargeback account. The offset to the receivable account on the original debit transaction is generated by the chargeback adjustment.

If the Invoice Accounting Used for Credit Memos profile option is set to No, then a receivable account is not required for Credit Memo transaction types.

AutoInvoice Clearing

If this is an Invoice or Debit Memo transaction type, enter an AutoInvoice clearing account. Receivables uses this account to hold any difference between the revenue amount specified for the revenue account and the selling price times the quantity for imported invoice lines.

Receivables only uses the AutoInvoice clearing account for imported transactions that have a transaction source with the Create clearing option enabled. If the Create clearing option is not enabled, then AutoInvoice requires that the revenue amount on the invoice be equal to the selling price times the quantity, or the invoice is rejected.

Tax

If this is an Invoice, Credit Memo, or Debit Memo transaction type, enter a tax account.

Unbilled Receivable

If this is an Invoice or Credit Memo transaction type, enter an unbilled receivable account. This account is for transactions that use the In Arrears invoicing rule.

Unearned Revenue

If this is an Invoice or Credit Memo transaction type, enter an unearned revenue account. This account is for transactions that use the In Advance invoicing rule.

FAQs for Transaction Types

Create transaction types for each transaction class, and create them in a way that can account for dependencies between transaction types.

Create your transaction types in the following order:

  • Credit memo transaction types

  • Invoice transaction types

  • Debit memo transaction types

  • Chargeback transaction types

If applicable, create the transaction types that you want to add to your transaction sources before creating transaction sources.

If you are using late charges, create a transaction type with a class of Debit Memo to present late charges as debit memos, and a transaction type with a class of Invoice to present late charges as interest invoices. Specify the receivable and revenue accounts for these transaction types. Receivables uses these accounts instead of AutoAccounting when generating late charges.

Use the Open Receivable option on the transaction type to implement an approval cycle for any temporary or preliminary transactions.

For example, if you have particularly sensitive debit memos, credit memos, on-account credits, chargebacks, or invoices that you want to review after creation, you can define a transaction type called Preliminary with Open Receivable set to No and assign it to the applicable transactions. This transaction type does not update your customer balances.

Once you review and approve these transactions, you can define a transaction type called Final with Open Receivable set to Yes and assign it to the same transactions. This will now update your customer balances on these transactions.

Transaction Sources

Use the various options on the transaction source assigned to a transaction to manage your transaction numbering requirements.

Refer to these guidelines when defining transaction numbering for transactions assigned to specific transaction sources:

  • Document Sequences

  • Automatic Transaction Numbering

  • Copy Document Numbers to Transaction Numbers

  • Allow Duplicate Transaction Numbers

  • Credit Memo Transaction Source

Document Sequences

If necessary, define document sequences to assign unique numbers to each transaction, in addition to the transaction number assigned automatically.

Ensure that the necessary setups for document sequences are completed, according to your requirements.

Automatic Transaction Numbering

To automatically number new transactions you create using a transaction source, enable the Automatic transaction numbering option and enter a number in the Last Number field.

For example, to start numbering transactions with 1000, enter a last number of 999. Receivables automatically updates the Last Number fields on transaction sources, so you can review the transaction source later to see the last transaction number that was generated.

Note: The last transaction number on the transaction source is an approximation only, due to caching.

You can use automatic transaction numbering with both Imported and Manual transaction sources.

Copy Document Numbers to Transaction Numbers

If you are using document sequences and you want to use the same number as both the document number and the transaction number for transactions assigned to a transaction source, enable the Copy document number to transaction number option.

If you are using Gapless document sequences, you should enable this option if you require gapless transaction numbering. This ensures that transaction numbers are generated sequentially and that there are no missing numbers.

Allow Duplicate Transaction Numbers

Enable the Allow duplicate transaction numbers option to allow duplicate transaction numbers within a transaction source.

This option is for manual transaction numbering only.

Credit Memo Transaction Source

Assign a credit memo transaction source to an invoice transaction source, if you want to number credit memos differently from the invoices that they credit.

During AutoInvoice processing, whether you must provide sales credit information on imported transaction lines depends on the settings of the Allow sales credits option on the transaction source and the Require salesperson Receivables system option.

These are the requirements for passing sales credit information on imported transaction lines:

  • If the Require salesperson system option and the Allow sales credits option on the transaction source are both enabled, you must provide sales credit information.

  • If the Require salesperson system option is not enabled and the Allow sales credits option on the transaction source is enabled, you can provide sales credit information, but it is not required.

  • If the Require salesperson system option is enabled and the Allow sales credits option on the transaction source is not enabled, you must provide sales credit information.

  • If neither the Require salesperson system option nor the Allow sales credits option on the transaction source are enabled, you cannot provide sales credit information. AutoInvoice ignores any values that you pass.

Use the AutoInvoice Options and Import Information sections of an Imported transaction source to define how AutoInvoice validates imported transaction lines.

You don't have to pass values for all of the fields that are referenced in the transaction source. If you don't want AutoInvoice to pass certain data, then where available you can set the related option to None.

Note: Even if you set a transaction source data option to None in order to avoid importing this information into the interface tables, AutoInvoice can still validate and reject transaction lines with invalid data.

Settings That Affect the Validation of Imported Transactions

These settings affect the validation of imported transactions:

  • Invalid Line field: Indicate how AutoInvoice handles imported transactions with invalid lines by selecting either Reject Invoice or Create Invoice.

    • If you select Reject Invoice, AutoInvoice doesn't import this transaction or any of its lines into the interface tables.

    • If you select Create Invoice, AutoInvoice creates a transaction with valid lines only. For example, you import an invoice with three invoice lines and one of the lines is invalid. AutoInvoice creates the invoice with the two valid lines only and rejects the invalid line. You can use the Edit Transaction page to add the rejected line.

  • Accounting Date in a Closed Period field: Indicate how AutoInvoice handles imported transactions that have lines in the interface lines table that are in a closed accounting period.

    • Select Adjust to have AutoInvoice automatically adjust the accounting dates to the first accounting date of the next open or future enterable period.

    • Select Reject to reject these transaction lines.

  • In the Import Information sections, where applicable select Number, Value, Segment, or ID for each option to indicate how AutoInvoice validates information:

    • Select Number to import a record into the interface tables using its assigned number.

    • Select Value to import a record into the interface tables using its actual name.

      Note: Use Value if you intend to use the transaction source to import data from a non-Oracle system.
    • Select Segment to use the flexfield segment.

    • Select ID to use the internal identifier of the record.

  • Select Amount or Percent to indicate how AutoInvoice validates Sales Credits and Revenue Account Allocations on transaction lines.

How Imported Transactions Are Validated

AutoInvoice validates imported transactions based on the settings of the assigned Imported transaction source. Transactions that fail validation appear in the Import AutoInvoice Validation report.

AutoInvoice ensures that certain column values agree with each other. These values can be within an interface table or multiple interface tables. For example, if the transaction source indicates that a revenue scheduling rule can't be used, AutoInvoice ignores any values passed for invoicing rule, revenue scheduling rule, and revenue scheduling rule duration.

AutoInvoice performs these validations on transaction lines with revenue scheduling rules:

  • Requires that these transactions also include an invoicing rule, if you import transactions that use revenue scheduling rules.

  • Rejects lines, if the revenue scheduling rule has overlapping periods.

  • Rejects lines, if the designated accounting periods don't exist for the duration of the revenue scheduling rule.

Set up CPQ Cloud and Receivables to enable the integrated quote-to-cash cloud service. This integrated service lets you manage the entire process of quote, pricing, order entry, credit checking and invoicing.

To set up the CPQ Cloud/Receivables integration service, perform one or more of these tasks:

  • Set up CPQ Cloud and CPQ Cloud data.

  • Set up Receivables transaction sources.

  • Set Up for multiple CPQ Cloud Instances.

Set Up CPQ Cloud

Perform the necessary setups in CPQ Cloud using the CPQ Administration pages.

Create a data table definition for each of the integration services used by the CPQ Cloud/Receivables quote-to-cash cloud service:

  • Credit Check Service: Service that verifies customer creditworthiness.

  • Receivables Invoice Service: Service that transfers order lines from CPQ Cloud to the AutoInvoice interface tables in Receivables.

Each data table definition includes these attributes:

  • Endpoint URL: The URL to use to contact the service.

  • User Name: The valid user name recognized by the service.

  • Password: The accompanying password for the valid user.

Set Up the CPQ Cloud Transaction Source

Receivables provides an Imported transaction source under the Common reference set to use to configure the CPQ Cloud/Receivables integrated service.

Use this transaction source to:

  • Manage the transfer of transaction information from CPQ Cloud to the AutoInvoice interface tables.

  • Manage the Call Back service to send Receivables transaction information to CPQ Cloud after the transactions are created.

To set up the transaction source for CPQ Cloud:

  1. Navigate to the Edit Transaction Source page.

  2. Open the CPQ Cloud transaction source.

  3. If applicable, enter the legal entity.

  4. If applicable, update the From Date and To Date fields.

  5. In the Oracle CPQ Cloud Integration section, check the Enabled option.

  6. Click the Define button to open the Define Endpoint Policy window.

  7. In the URL field, enter the URL to use to contact the Call Back service.

  8. In the Security Policy field, enter oracle/wss_username_token_over_ssl_client_policy.

  9. In the User Name field, enter the user name to use for the Call Back service.

  10. In the Password field, enter the accompanying password for the valid user.

  11. Click the Save and Close button to exit the Define Endpoint Policy window.

  12. Save and close the Edit Transaction Source page.

Set Up for Multiple CPQ Cloud Instances

If you plan to have more than one CPQ Cloud instance sending data to Receivables, you must represent each CPQ instance as a business unit and define a transaction source for each instance.

To set up for multiple CPQ Cloud instances:

  1. Define one reference set for each CPQ Cloud instance.

  2. Associate this reference set to the business unit for the reference object transaction source.

  3. Create a transaction source for each reference set:

    1. Open the Create Transaction Source page.

    2. In the Transaction Source Set field, select the applicable reference set for the business unit.

    3. If applicable, enter the legal entity.

    4. In the Name and Description fields, enter a name and description for this transaction source.

    5. In the Type field, select Imported.

    6. If applicable, update the From Date and To Date fields.

    7. Complete the remaining fields in the transaction source with the same settings as the predefined transaction source.

    8. In the Oracle CPQ Cloud Integration section, check the Enabled option and complete the endpoint policy.

    9. Save and close the Create Transaction Source page.

FAQs for Transaction Sources

You may want to create certain records before creating your transaction sources.

You can optionally create these objects for Manual or Imported transaction sources:

  • Transaction types: Define the transaction types that you want to appear by default on transactions assigned to your transaction sources. You select the transaction type you want for a transaction source in the Standard Transaction Type field.

  • Credit memo transaction source: Define one or more transaction sources for credit memos before you define a transaction source for invoices. You then select a credit memo transaction source to accompany the invoice transaction source in the Credit Transaction Source field.

    You can use credit memo transaction sources in these ways:

    • Number the credit memos created against invoices differently from the invoices they are crediting.

    • Create a manual credit memo transaction source for credit memo request approvals, when the approved credit memo amount is greater than the open balance on the invoice. For these transaction sources, set the Receipt Handling for Credits option to On Account.

You can optionally create these objects for Imported transaction sources:

  • Invoice transaction flexfield: Define the reference information that you want to capture in the invoice transaction flexfield and display on imported transactions, such as a purchase order number.

  • AutoInvoice grouping rule: Define the grouping rule to appear by default on imported transaction lines.

  • AutoInvoice clearing account: Define an AutoInvoice clearing account, if you intend to enable the Create clearing option. AutoInvoice puts any difference between the revenue amount and the selling price times the quantity for a transaction into this account.

Special conditions may apply to the creation of transaction sources for credit memos.

Review these considerations for transaction sources assigned to credit memos:

  • Define Manual transaction sources for credit memos created by the credit memo request approval process.

  • Define credit memo transaction sources to assign to invoice transaction sources using the Credit Transaction Source field. Use credit memo transaction sources on invoice transaction sources under these conditions:

    • Number the credit memos created against invoices differently from the invoices they are crediting.

    • Create a manual credit memo transaction source for credit memo request approvals, when the approved credit memo amount is greater than the open balance on the invoice. For these transaction sources, set the Receipt Handling for Credits option to On Account.

  • Enable the Copy transaction information flexfield to credit memo option on Manual transaction sources used for credit memos, to copy the invoice transaction flexfield reference information to the credit memo that is crediting the invoice.

  • Select the transaction type to assign to the invoice using the Standard Transaction Type field, if the credit memo transaction source requires invoice transaction types that use natural application only.

Assign the AutoInvoice grouping rule to Imported transaction sources that AutoInvoice uses to group imported transaction lines.

If you don't assign a grouping rule to an Imported transaction source, AutoInvoice uses the following hierarchy to determine which rule to use:

  1. Grouping rule assigned to the transaction source of the transaction line.

  2. Grouping rule assigned to the bill-to customer site profile of the transaction line.

  3. Grouping rule assigned to the bill-to customer profile of the transaction line.

  4. Grouping rule assigned to Receivables system options.

If you don't use an AutoInvoice clearing account and enable the Create clearing option on the transaction source, AutoInvoice requires that the revenue amount be equal to the selling price times the quantity for all of the transactions it processes. AutoInvoice rejects any transaction line that does not meet this requirement.

Memo Lines

You can optionally associate a revenue account with a memo line.

If AutoAccounting depends on memo line, Receivables uses the revenue account segment values defined for the memo line, in combination with the rest of your AutoAccounting structure, to determine the default revenue, freight, AutoInvoice clearing, tax, unbilled receivable, unearned revenue, and receivable accounts for invoices that include the memo line.

When you create a debit memo or on-account credit memo with memo lines, Receivables uses the revenue account from the original receivable item as the credit account. However, when you create debit memo reversals or chargebacks, Receivables uses instead the revenue flexfield from the original receivable item as the credit account.

FAQs for Memo Lines

Use memo lines on your transactions when the item is not an inventory item. For example, you can define a memo line called Consulting Services to identify charges for consulting activities. You can assign memo lines to debit memos, on-account credits, debit memo reversals, chargebacks, and invoices.

You can use tax memo lines on transactions only if your tax definition lets you enter manual tax lines on transactions. After you enter a tax memo line on a transaction, you can specify the amount of tax to assign to the transaction line.

Balance Forward Billing

You can enable and maintain balance forward billing details at the customer account level and customer site level. The rules governing the interaction between the customer account and customer sites determine what sites are included in balance forward bills.

Rules for Account and Site Balance Forward Billing

These rules apply to balance forward billing at the account level and site level:

  • Account level customer profile values become the default values for the related customer sites when you create site profiles.

  • If balance forward billing is enabled at the account level, you still need to enable balance forward billing on the related site profiles if you want to include these sites in the account-level balance forward bill.

    In the Balance Forward Billing section of site profiles:

    • Set the Enable option.

    • In the Bill Level field, select Account.

    • In the Bill Type field, select the bill type defined at the account level.

  • You can define separate balance forward billing details for a particular site. In the Balance Forward Billing section of site profiles:

    • Set the Enable option.

    • In the Bill Level field, select Site.

    • In the Bill Type field, select the bill type to use for this site.

    Once you create a site profile and define separate balance forward billing details, the site profile no longer references the account profile.

  • Balance forward billing definitions at the site level take precedence over balance forward billing definitions at the account level.

This example demonstrates how to set up balance forward billing for the customer Business World. The example includes the setup of a balance forward billing cycle, balance forward billing payment terms, and the Business World customer profile.

This table summarizes key decisions for this scenario.

Decisions to Consider In This Example

What billing cycle is used?

Monthly

What day of the month is used on the payment terms?

15th

How are balance forward bills consolidated?

Account level

Can the customer exclude transactions from the balance forward bill?

Yes

Summary of the Tasks

To generate balance forward bills for a customer:

  1. Define a balance forward billing cycle.

  2. Define balance forward billing payment terms.

  3. Set up the customer profile class for balance forward billing.

  4. Assign the profile class to the Business World customer account.

Define a Balance Forward Billing Cycle

Define the balance forward billing cycle to use for this customer:

  1. Open the Balance Forward Billing Cycle window.

  2. Complete the fields, as shown in this table:

    Field Value

    Name

    Name that identifies this balance forward billing cycle for this customer.

    Frequency

    Monthly

    Repeat Every

    1

    Day of Month

    Last Day of Month

Define Balance Forward Billing Payment Terms

Define the balance forward billing payment terms to use for this customer:

  1. Open the Create Payment Terms page.

  2. Complete the fields, as shown in this table:

    Field Value

    Name

    Name that identifies these payment terms for this customer.

    Billing Cycle

    The billing cycle you defined in the previous step.

    Due By Day of Month

    15

Set Up the Customer Profile Class for Balance Forward Billing

Set up the customer profile for Business World for balance forward billing:

  1. Open the Create Receivables Customer Profile Class page.

  2. Complete the general required fields for the profile class.

  3. Complete the fields on the Profile Class tab, as shown in this table:

    Field Value

    Balance Forward Billing Enable

    Enable this option.

    Bill Level

    Account

    Bill Type

    Detail

    Payment Terms

    The balance forward billing payment terms you defined in the previous step.

    Override terms

    Enable this option.

    Note: The Override terms option makes available to transactions both non-balance forward billing payment terms and the one balance forward billing payment terms you defined in the previous step. This lets you exclude individual transactions from balance forward billing by assigning the transaction non-balance forward payment terms.

Assign the Profile Class to the Business World Customer Account

Assign the profile class to the Business World account:

  1. Open the Edit Account page for Business World.

  2. Click the Profile tab.

  3. Open the Insert Account Profile page and update the Business World customer account with the profile you defined in the previous step.

  4. Make sure that balance forward billing is enabled at the site profile level for all sites belonging to the customer account that you want to include in balance forward billing.

Balance Forward Billing Email Delivery

Email Delivery of Balance Forward Bills

Deliver balance forward bills by email as PDF attachments to your customer account or site level contacts.

You can email balance forward bills directly to your customers, in addition to the existing capability of printing bills.

Setups for Email Delivery of Balance Forward Bills

You must opt in to enable this feature, and then complete the related setups in Receivables.

Setups for email delivery of balance forward bills include:

  • Receivables System Options: Transaction Delivery Using E-Mail

  • Customer account and site profiles

  • Customer account and site contacts

Updates to Balance Forward Bill Processes

Once you enable and set up Email Delivery of Balance Forward Bills, the following scheduled processes are available for generating balance forward bills:

  • Create Balance Forward Bills: Generate balance forward bills as PDFs and send them by email.

  • Deliver Balance Forward Bills: Deliver previously delivered balance forward bills using the designated delivery method (Paper or Email).

  • Print Summary Balance Forward Bills and Print Detailed Balance Forward Bills: Continue to deliver previously delivered balance forward bills using the delivery method Paper.

The Create Balance Forward Bills process contains the additional parameter Draft Email ID. When you create balance forward bills in Draft mode (Print Option parameter = Print draft balance forward bills), you can use this parameter to send the draft bill to the email address of your choice for testing and review.

The Draft Email ID parameter is a free text field, but the email address you enter must conform to the standard format for email addresses (abc@xyz.pqr). When you run the Create Balance Forward Bills process with an email address in this parameter, this email address receives a PDF of all balance forward bills generated by the process run for customers enabled for email delivery only.

The Create Balance Forward Bills process doesn't generate an error under any of the following conditions:

  • Email address you entered doesn't exist.

  • Email address you entered exists, but it isn't the one you intended.

  • Email recipient inbox is full.

Deliver Balance Forward Bills Process

The Email Delivery of Balance Forward Bills feature enables the Deliver Balance Forward Bills process to deliver previous balance forward bills (Paper or Email) for the applicable customers.

Use the Deliver Balance Forward Bills process to deliver previously created balance forward bills to customers. Enter in the Process ID parameter the process ID of a previous run of balance forward bills. The process delivers the bills by email as a PDF attachment for all customer account and site profiles enabled for email delivery.

If you use Balance Forward Billing, you can enable the delivery of balance forward bills by email as PDF attachments to your customer account or site level contacts.

You must opt in to enable the Email Delivery of Balance Forward Bills feature. After you opt in, you must complete the following setups to deliver balance forward bills by email:

  • Set up the Transaction Delivery Using E-Mail section in the Billing and Revenue tab of Receivables System Options.

  • Set up the applicable customer account and site profiles for balance forward billing and email delivery.

  • Set up contacts for each customer account and site that receives balance forward bills by email.

Receivables System Options

You must complete the fields in the Transaction Delivery Using E-Mail section of Receivables System Options for the applicable business unit.

If you are already using this section for email delivery of transactions, you can either use the same values for balance forward bills or update individual fields according to your requirements. For example, you may need to edit the E-Mail Subject and E-Mail Body fields to accommodate both transactions and balance forward bills.

To set up Receivables System options for email delivery of balance forward bills:

  1. In the Create or Edit System Options page for the business unit you want, navigate to the Transaction Delivery Using E-Mail section of the Billing and Revenue tab.

  2. Complete all fields in this section for email delivery of balance forward bills.

    These fields are conditionally required. You must enter values in these fields to ensure successful delivery of balance forward bills by email.

  3. Save your work.

Customer Account and Site Profiles

You must set up balance forward billing in the applicable customer account and site profiles, and set a preferred delivery method of E-Mail.

Note: You can't use XML delivery with the Email Delivery of Balance Forward Bills feature. This feature considers a preferred delivery method of XML as Paper.

To set up a customer account or site for email delivery of balance forward bills:

  1. Navigate to the Edit Account or Edit Site page for the customer account or site you want.

  2. Click the Profile History tab.

  3. Update or Insert a profile for the customer account or site.

  4. In the Balance Forward Billing section of the Profile tab, complete these fields:

    • Enable: Enable this option to activate balance forward billing.

    • Bill Level: Select the level at which to generate balance forward bills: Account or Site.

      For customer site profiles, select the bill level Account to include transactions belonging to the site in the account-level balance forward bill. Select the bill level Site to deliver a separate balance forward bill for transactions belonging to the site.

      Note: You must set up an active customer profile at both the customer account and site levels for balance forward billing to process successfully, no matter which Bill Level setting you use.
    • Bill Type: Select the format to use for balance forward bills.

  5. In the Terms section, select in the Payment Terms field the balance forward billing payment terms to use for this account or site.

  6. In the Invoicing section, select E-Mail in the Preferred Delivery Method field:

    • If the Bill Level setting in the profile is Account, the Create Balance Forward Bills process references the Preferred Delivery Method setting in the customer account profile.

    • If the Bill Level setting in the profile is Site, the Create Balance Forward Bills process references the Preferred Delivery Method setting in the customer site profile.

  7. Complete the profile according to your requirements and save.

Customer Account and Site Contacts

You must set up at least one customer contact for each account or site that receives balance forward bills by email.

To receive balance forward bills by email, a customer contact must have all of these settings:

  • Role Type assignment of Contact.

  • Active email address.

  • Responsibility type assignment of any responsibility other than Collections or Dunning.

Note: If you designate a customer contact as Primary, balance forward bills are still sent by email to all contacts assigned to the applicable customer account or site.

To set up a contact for a customer account or site for email delivery of balance forward bills:

  1. Navigate to the Edit Account or Edit Site page for the customer account or site you want.

  2. Click the Communication tab.

  3. Click the Edit Contacts button.

  4. Click the applicable Plus (+) icon (Create Contact or Add Contact) either to create a new person record for a contact or to add an existing person record as a contact.

  5. Enter the name of the contact and related job information, according to your requirements.

  6. In the Role Type field, select Contact.

  7. Optionally click the Set Primary Contact icon for this contact.

  8. In the Contact Points section, click the Plus (+) icon to open a Create Contact Point window.

  9. In the Contact Point Type field, select E-Mail.

  10. In the Email field, enter the email address for the contact.

  11. In the From Date and To Date fields, enter the dates that this contact point is active for this contact.

  12. Optionally click the Set Primary icon for this contact point.

  13. In the Responsibilities section, click the Plus (+) icon to create a responsibility row.

  14. In the Responsibility Type field, select a responsibility for this contact.

  15. Optionally click the Plus (+) icon again to create additional responsibilities for the contact.

    For email delivery of balance forward bills, you can assign any responsibilities to a contact except Collections or Dunning.

  16. To set a primary responsibility for the contact, select a responsibility and click the Set Primary Responsibility icon.

  17. Save your work.

FAQs for Balance Forward Billing

The balance forward billing cycle determines the dates in the year to generate balance forward bills, and the transactions that are included in balance forward bills. You assign balance forward billing cycles to payment terms.

When you run the Create Balance Forward Bill program, you must select a billing cycle. You can also select specific customers, customer sites, and payment terms. A run of the Create Balance Forward Bill program includes all transactions not included on a previous balance forward bill that are assigned the payment terms with the selected billing cycle, or a subset of these payment terms as determined by the other program parameters.

Remit-to Addresses

Create remit-to addresses to specify on transactions and statements where your customers are to send payment for their open receivables.

Considerations for remit-to addresses include:

  • Receivables system options > Billing and Revenue tab: You can set these Receivables system options as part of your remit-to address setup:

    • Print remit-to address option: Enable this option to print remit-to addresses on your customer statements.

    • Print home country option: Enable this option to print your home country on transactions and statements with addresses in that country.

    • Default Country field: Select the country that is assigned by default to the remit-to addresses you create.

  • Reference data set: Remit-to addresses belong to a reference data set. You can assign remit-to addresses to the Common set or to business unit-specific sets.

  • Receipt from Criteria section: Use this section to assign remit-to addresses by default to the transactions and statements of specific customer bill-to sites.

    If you don't set up default remit-to addresses for your customer transactions, you must still assign a remit-to address in order to complete the transaction.

To create 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 for the remit-to address.

    If you select another country, this may update the required and optional address fields. You may also need to select the reference data set again.

  4. Enter the address details and save. You return to the Manage Remit-to Addresses page.

  5. In the Manage Remit-to Addresses page, search for and select the remit-to address you just created.

  6. In the Receipt from Criteria section, click the Create (+) icon to open the Create Receipt from Criteria window for the remit-to address.

    Use this window to assign the remit-to address to customer bill-to sites.

  7. In the Country field, select the country you want. By default, the remit-to address is assigned to all customer bill-to sites defined in this country.

  8. If necessary, use the State and Postal Code fields to restrict the remit-to address assignment to specific regions of the country.

  9. Save your work.

FAQs for Remit-to Addresses

The remit-to address lets your customers know where to send payment for their open debit items. After you create a remit-to address, you can assign it to the bill-to addresses of the customers and customer sites that you designate by country and, if applicable, by region and postal code range.

If the Print remit-to address Receivables system option is enabled, the remit-to address is printed on the related customer dunning letters and statements.

During the import process, AutoInvoice rejects all invoices for which it cannot determine a remit-to address. In order for AutoInvoice to import an invoice, you must either define a remit-to address for the geographical location of each applicable bill-to site or define a remit-to address to use as default for one or more locations.

Create or select a remit-to address, then open the Receipts from Criteria dialog box. Select the country that you want to assign to this remit-to address.

If you only select a country, then all customer bill-to sites in this country are assigned this remit-to address.

If you want to assign this remit-to address to specific locations within the country, you can optionally select a state or region within the country, and a range of postal codes.

When you create a remit-to address, a country appears by default if one was defined in Receivables system options. You can change the default to the applicable country of the remit-to address.

If you have Trading Community Data Quality installed, you can expose a Verify Address button on the Create and Edit Remit-to Address pages for applicable countries.

After you enter a remit-to address, use the Verify Address button to confirm that the address is in the Trading Community Model registry. If it is not, Receivables either presents alternative addresses or lets you optionally add the address you entered to the registry.

FAQs for Salesperson Reference Accounts

Assign general ledger accounts to your salespersons. When AutoAccounting depends on salesperson, Receivables uses the account references that you define here to derive the accounts to use on transactions that are assigned a particular salesperson.