2Manage Receivables System Options

This chapter contains the following:

Certain Receivables system option settings have critical implications for the way Receivables functions for a given business unit. You may need to do some advance planning before deciding how to set certain Receivables system options.

Considerations for Receivables system option settings include:

  • Salespersons

  • Header Level Rounding

  • Allow Change to Printed Transactions

  • Discounts

Salespersons

If you intend to use revenue accounting, you must enable the Require salesperson Receivables system option. Revenue accounting requires that you assign sales credits to all transactions that can be adjusted for either revenue or sales credits.

If you enable the Require salesperson Receivables system option, use the Sales Credit Percent Limit field to limit the percentage of revenue plus non-revenue sales credit that a salesperson can have on any transaction line.

If you don't enter a value in the Sales Credit Percent Limit field, then no sales credit limit validation is performed during revenue accounting.

Header Level Rounding

Depending on the legal requirements of your home country, you may need to round amounts at the transaction header level for the receivable account, and then account for and post the difference in a separate account between this rounded amount and the sum of the rounded line amounts for the respective revenue accounts. To do this, enable the Use header level rounding option and define a Header Rounding Account.

The rounding difference between the header level and line level rounding is assigned to the Header Rounding Account.

If you enable the Use header level rounding option, then Receivables displays a rounding distribution line for all transactions, regardless of currency. If the transaction is in the ledger currency, then the amount of this line is zero.

If you don't enable the Use header level rounding option, Receivables rounds amounts at the line level and posts any rounding difference to the receivable account.

Caution: Once you enable Header Level Rounding and save the Receivables system options record, you can't disable the feature for the applicable business unit.

Allow Change to Printed Transactions

To allow updates to transactions that have been printed, enable the Allow change to printed transactions option. This option also determines whether you can update a customer address when printed, posted, or applied transactions are assigned to that address.

Note: You can't update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include payments, credit memos, adjustments, accounting, and assigning the transaction to a balance forward bill.

Discounts

To allow Receivables to accept unearned discounts, enable the Allow unearned discounts option. Unearned discounts are discounts a customer takes after the discount period passes. The Receivables system options record is the only place that determines whether you can accept unearned discounts for the given business unit.

To allow discounts to be taken for partial payments against open debit items, enable the Discount on partial payment option. A partial payment is a payment that is less than the remaining amount due. If this option is enabled, you can still decide to disallow discounts on partial payments at the transaction level when defining payment terms.

If you never allow discounts on partial payments, then do not enable the Discount on partial payment option.

This example illustrates how header level rounding processes currency conversions and accounts for rounding differences.

Scenario

ABC Company uses euros as the ledger currency, and it receives an invoice with three line items in Norwegian krone. For this example, the conversion rate between the krone and the euro is 6.55957.

Transaction Details

The Use header level rounding Receivables system option is enabled for the applicable business unit and a Header Rounding Account is defined.

This table shows the calculations performed to convert each line amount on the invoice:

Item/Description Amount in Krone Conversion Rate Amount in Euros Comment

Paper

15.00

6.55957

2.29

rounded up

Pens

12.00

6.55957

1.83

rounded up

Envelopes

25.00

6.55957

3.81

rounded down

Subtotal

52.00

N/A

7.93

sum of items

Rounding Difference

N/A

N/A

- 0.01

N/A

Total Amount

52.00

6.55957

7.92

rounded down

Analysis

Because the Use header level rounding Receivables system option is enabled, Receivables must calculate the rounding difference between the currency conversion of the total invoice amount at the header level assigned to the receivable account and the sum of the currency conversions at the line level assigned to each revenue account. This difference is placed in the designated header rounding account.

Conversion Results

Receivables first converts each line item separately from krone to euros, and then adds them together, for a total of 7.93 EUR. Receivables then separately adds the line amounts in the invoice currency (krone) and then converts to the ledger currency, for a total of 7.92 EUR.

The rounding difference of .01 is assigned to the header rounding account as defined in Receivables system options.

The Tax Invoice Printing Options Receivables system option identifies the method Receivables uses to print tax amounts on transactions. The value you enter here becomes the default value for customer profile classes.

Tax Invoice Printing Options

European Tax Format

Does not itemize tax information for each line, but does print tax rates as the last column of invoice lines. Prints freight items last. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of taxable amounts and tax charged for each tax rate code.

Itemize and Sum

Itemizes tax information for each invoice line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code. At the end of the invoice, Receivables prints the invoice subtotal, tax, shipping, and invoice total.

Itemize Taxes

Itemizes tax information for each invoice line.

Itemize With Recap

Itemizes tax information for each invoice line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code.

Recap

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code.

Sum Taxes

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each tax rate code. At the end of the invoice, Receivables prints the invoice subtotal, tax, shipping, and invoice total.

Summarize By Tax Name

Does not itemize tax information for each line. At the end of the invoice, the Tax Summary by Tax Name section includes a summary of the tax charged for each printed tax name and rate.

Total Tax Only

Displays only the total tax amount at the end of the document.

Use the AutoInvoice: Tuning Segments section of the Billing and Revenue tab of the Create and Edit Receivables System Options pages to designate Accounting and System Items flexfield segments as tuning segments. Tuning segments help increase performance of AutoInvoice. The tuning segment is the segment most frequently accessed by AutoInvoice.

Accounting Flexfield Tuning Segment

If you want to increase the performance of AutoInvoice and indexes already exist for the GL_CODE_COMBINATIONS table, use the value that you specified for your index as the Accounting Flexfield tuning segment. If you defined a concatenated index, use the first column of your concatenated index.

If no indexes exist for the GL_CODE_COMBINATIONS table, enter the segment with the most distinct values for your Accounting Flexfield tuning segment.

System Items Flexfield Tuning Segment

If you want to increase the performance of AutoInvoice and indexes already exist for the MTL_SYSTEM_ITEMS table, use the value that you specified for your index as your System Items Flexfield tuning segment. If you defined a concatenated index, use the first column of your concatenated index.

If no indexes exist for the MTL_SYSTEM_ITEMS table, enter the segment with the most distinct values for your System Items Flexfield tuning segment.

In the Log File Message Level field of the AutoInvoice section of the Billing and Revenue tab of the Create or Edit System Options page, enter a value from 0 to 5 to indicate the amount of detail that you want to display in the AutoInvoice log file.

For day-to-day business needs and to improve performance, set the level to 0. If you consistently experience errors while running AutoInvoice, you can set the output to a higher level to review more detailed information in the log about the errors.

Log File Message Level Definitions

Message Level 0 provides the following entries in the log file:

  • Product Version

  • Program Name

  • AutoInvoice Start Time

  • AutoInvoice Concurrent Request Arguments

  • Error and Warning Messages

  • AutoInvoice End Time

  • AutoInvoice Logical Steps

Message Level 1 provides all of the entries for Message Level 0 plus:

  • Time-Stamped function labels

Message Level 2 provides all of the entries for Message Levels 0 and 1 plus:

  • Sizes of allocated arrays

  • Dynamic SQL statements

  • Number of rows updated, inserted, and deleted

Message Level 3 provides all of the entries for Message Levels 0, 1, and 2 plus:

  • Method IV SQL array values

Message Level 4 provides all of the entries for Message Levels 0, 1, 2, and 3 plus:

  • Values of all variables that are used to call FND or Tax routines

Message Level 5 provides all of the entries for Message Levels 0, 1, 2, 3, and 4 plus:

  • Details of all bad lines and rejected lines. This provides all messages needed for C debugging of AutoInvoice.

FAQs for Manage Receivables System Options

The Days per Posting Cycle setting lets you process the transactions you are posting in smaller groups to ensure that you don't run out of rollback space during posting.

For example, if your accounting period is 30 days and you set this value to 30, the posting program uses only one cycle. If your accounting period is 30 days and you set this value to 17, the posting program uses two cycles. Best practice is to set this field to a value that is less than the number of days in your accounting period.

Enable the Allow transaction deletion Receivables system option if you want to let users delete Receivables transactions after the transactions have been saved. If you don't enable this option, all Receivables users are prevented from deleting transactions.

If an installation is legally required to number transactions sequentially with no missing transaction numbers, then best practice is to not enable this option.

If you enable the Allow transaction deletion option, you can still control which users can delete transactions using function security.

Enter in the Maximum Memory in Bytes field the value that represents the amount of memory to allocate to AutoInvoice for validation. The default is 65535 bytes. For best results, enter a value that is the maximum number of records that you import, rounded to an even number, multiplied by 1024. For example, if you use AutoInvoice to import no more than 100 records at a time, enter a value of 102400.

During AutoInvoice processing, if you receive a message that indicates the application failed to allocate memory, then enter a lower number. If you receive a message that the memory is not large enough, then enter a higher number.

Enter in the Days to AutoApply a Receipt field the age in days of receipts that AutoApply considers for application against customer transactions. Use this field if your customers often pay for transactions before they are created.

AutoApply looks for and attempts to apply open receipts to transactions created within the number of days that you specify. For example, if you enter 10, then AutoApply considers all receipts created within the past 10 days for application to transactions. Receipts created longer than 10 days ago are not considered.

If you don't enter a value in this field, AutoApply only attempts to match receipts once.

The active application exception rule set determines the action to perform on overpayment and underpayment amounts after receipt application. You can define the default receivables activity to use to process these payments when the action is either a billing adjustment or a write-off.

The Exception Rule Adjustment Activity field in the Cash Processing tab of Receivables System Options provides the default receivables activity to use for adjustments on overpayments or underpayments. The Exception Rule Write-off Activity field provides the default receivables activity to use for write-offs of overpayments or underpayments.

Enable the Require billing location for receipts Receivables system option to require that a bill-to site be associated with a receipt. If enabled, Receivables doesn't create receipts that don't have a bill-to site.

Use this option for customers without statement sites. If you don't enable this option, and you have receipts for customers without statement sites and without a bill-to site associated with the receipt, the unapplied amount of the receipt won't appear on any of the statements for this customer.

The realized gains and realized losses accounts are used to account for the conversion rate gain or loss in the ledger currency resulting from a cross-currency receipt application. For example, if the conversion rate for a foreign currency invoice is 1.7 and the conversion rate of the payment for this invoice is 2.0, Receivables posts the difference as a gain to the realized gains account.

The cross-currency rounding account is used to record rounding error amounts created during a cross-currency receipt application. You must define a rounding error account if you create cross-currency receipts.

E-Mail Delivery

Use the E-Mail Subject fields in the Transaction Delivery using E-Mail and Statement Delivery Using E-Mail sections of the Billing and Revenue tabbed region of Receivables system options to create an e-mail subject line for the transactions and statements you deliver to customers using e-mail.

Receivables inserts a period after the business unit, transaction number, and statement date, and inserts a space between each of the field values.

The following examples illustrate how the subject line appears depending on the settings you use.

Example 1

The resulting e-mail subject line for the settings in this table is: "Your invoice is now ready for review. Vision Operations. INV1234."

Field Value

E-Mail Subject

Your invoice is now ready for review.

Include Business Unit in E-Mail Subject

Last

Include Transaction Number in E-Mail Subject

Last

Example 2

The resulting e-mail subject line for the settings in this table is: "Vision Operations. Your statement is now ready for review. 01-01-2017."

Field Value

E-Mail Subject

Your statement is now ready for review.

Include Business Unit in E-Mail Subject

First

Include Statement Date in E-Mail Subject

Last

Example 3

The resulting e-mail subject line for the settings in this table is: "Your invoice is now ready for review. INV1234."

Field Value

E-Mail Subject

Your invoice is now ready for review.

Include Business Unit in E-Mail Subject

Do Not Include

Include Transaction Number in E-Mail Subject

Last

Print and send Receivables transactions and statements to designated customers using e-mail.

When you run the Print Receivables Transactions process or the Create Customer Statements process, the respective process sends transactions or statements as either a PDF or Zipped PDF file to the designated e-mail addresses of the customer accounts and sites that are set up for e-mail delivery.

Settings That Affect Delivery Using E-Mail

These settings affect print delivery using e-mail:

  • Print Option: Set the Print Option to Print or Do Not Print at the customer site or customer account level, depending upon whether you want to print for specific customer sites or all sites belonging to a customer account.

    For transactions, if there is no Print Option value enabled at the site or account level, then Receivables uses the required Print Option setting on the transaction type. If necessary, you can exclude or include individual transactions in a print run by changing the Print Option setting on transactions.

    Note: If the transaction type doesn't have the Open Receivable option enabled (that is, it is a Void transaction), then the e-mail delivery process ignores the Print Option settings at the customer site and account level and uses the setting assigned to the transaction type. You can still override this setting on the transaction.
  • Preferred Delivery Method: Set the Preferred Delivery Method field to E-Mail at the customer site or customer account level, depending upon whether you want to deliver using e-mail for specific customer sites or all sites belonging to a customer account.

  • Customer contacts: Assign at least one customer contact at the account or site level both an e-mail address and the Bill-to purpose or Statement purpose. These rules apply to customer contacts:

    • The contact must be active when the Print Receivables Transactions or Create Customer Statements process is run.

    • If a customer account or site doesn't have any contact with both an e-mail address and a Bill-to purpose or Statement purpose, then transactions or statements are not delivered for this customer account or site.

    • For transactions, if a customer account or site does have a contact with both an e-mail address and a Bill-to purpose, but the same contact e-mail address is also assigned the Collections or Dunning purpose, then this contact is excluded from e-mail delivery.

    • For statements, if the customer has a statement site, then a consolidated statement is created and delivered for all billing sites belonging to the customer account.

  • E-Mail Receivables system options: Use the Transaction and Statement Delivery using E-Mail sections of the Billing and Revenue tabbed region of the Receivables System Option pages to set up the details of transaction and statement delivery using e-mail for the applicable business units.

    Note: These are all conditionally required fields. If you plan to enable printing and e-mail delivery of transactions or statements, then you must enter values in these fields to ensure successful delivery.

    Enter the appropriate text and values in the corresponding fields:

    • From Name: Name of your enterprise.

    • From E-Mail: E-mail address of your enterprise.

    • Reply-to E-Mail: E-mail address of your enterprise that your customers can send an e-mail to.

    • E-Mail Subject: Text of the e-mail subject line.

    • Include Business Unit in E-Mail Subject: Option to include the name of your business unit in the subject line.

    • Include Transaction Number in E-Mail Subject: Option to include the transaction number in the subject line.

    • Include Statement Date in E-Mail Subject: Option to include the statement date in the subject line.

    • E-Mail Body: Text of the e-mail message. Include appropriate formatting.

      Note: You can't use standard messages to create e-mail message text.

How Transactions and Statements are Delivered Using E-Mail

Once your setup is complete, use the Print Receivables Transactions process to print customer transactions, and the Create Customer Statements process to print customer statements. Use the Output File Type parameter to specify the output to use for the print run. For print delivery using e-mail, you must select either PDF or Zipped PDFs. If you select Zipped PDFs, the file includes an index file of the print run, to identify the first and last page of each printed transaction.

When you create a transaction, Receivables looks in your setup for the Print Option setting to assign to the transaction in this order:

  • Customer site profile

  • Customer account profile

  • Transaction type

During print processing, the e-mail delivery process verifies for each transaction or statement:

  • For transactions, the Print Option is set to Print.

    You can update the Print Option setting on individual transactions before printing.

  • Preferred Delivery Method field is set to E-Mail for the customer account or site.

  • At least one active customer contact has both an e-mail address and Bill-to purpose or Statement purpose. The e-mail delivery process looks for an e-mail address to send transactions or statements to in this order:

    • For transactions, e-mail address of the bill-to customer contact on the transaction.

    • E-mail addresses of the contacts of the customer site that are assigned a Bill-to purpose or Statement purpose, but not assigned the Collections or Dunning purpose.

    • E-mail addresses of the contacts of the customer account that are assigned a Bill-to purpose or Statement purpose, but not assigned the Collections or Dunning purpose.

  • All fields are completed in the Transaction Delivery or Statement Delivery using E-Mail section of the Billing and Revenue tabbed region of Receivables System Options.

The name of the output PDF file for transactions delivered using e-mail uses the format:

<INV_NUMBER>_<INSTALLMENT_NUMBER>.PDF

FAQs for E-Mail Delivery

Your e-mail delivery setup is incomplete.

This is most likely due to one of two settings:

  • In Receivables system options, you must enter an active e-mail address in either the From E-Mail field or the Reply-to E-Mail field of the Transaction or Statement Delivery Using E-Mail section of the Billing and Revenue tabbed region for the applicable business unit.

  • At least one customer contact must have both a Bill-to purpose or Statement purpose assignment and an active e-mail address.

  • For transactions:

    • If the transaction doesn't have a bill-to customer contact, or if that contact doesn't have an e-mail address, then the e-mail delivery process looks for all active customer contacts at the account or site level that have both a Bill-to purpose and an e-mail address.

    • If any exist, then the transaction is delivered to all of these contacts, with the exception of contact e-mail addresses also assigned the Collections or Dunning purpose.

    • If none exist, then the transaction is not printed.

OAGIS 10.1 and UBL 2.1 XML

Overview of OAGIS 10.1 XML Transaction Delivery for Receivables

Use the Open Applications Group Integration Specification (OAGIS) 10.1 XML format to deliver Receivables transactions to your customers as XML documents.

XML transaction delivery makes use of the Collaboration Messaging Framework (CMK) to send transactions to customers and receive confirmation messages from customers.

Receivables OAGIS 10.1 XML provides these capabilities:

  • Deliver invoices, credit memos, debit memos, and chargebacks to customers (trading partners) in OAGIS 10.1 XML format using Collaboration Messaging Framework.

  • Deliver XML transactions to your trading partners with or without service providers.

  • Receive acknowledgment of transaction delivery from customers by means of a Confirmation Business Object Document (CBOD). The CBOD also uses the OAGIS 10.1 XML format.

  • Include user-defined attributes, in addition to the standard mapped attributes, in the XML document. Receivables supports the inclusion of UserArea extension attributes at the invoice header, invoice line, and invoice tax line level of OAGIS 10.1 XML transactions.

  • Include transaction header level attachments in the OAGIS 10.1 XML delivery.

  • Review the XML transaction delivery using Collaboration Messaging Framework.

Use the Feature Opt-in page in Functional Setup Manager (FSM) to enable Receivables Invoice Delivery in Open Applications Group Integration Specification (OAGIS) 10.1 XML Format.

You also use the same Feature Opt-in to enable Universal Business Language (UBL) 2.1 XML transaction delivery.

You then need to complete the related setups in Receivables and Collaboration Messaging Framework (CMK) to deliver OAGIS 10.1 or UBL 2.1 XML transactions to customers.

Complete these setups using the related Receivables and Collaboration Messaging Framework setup tasks. If you are using service providers to deliver XML documents, you can also use the Customer Import FBDI template to import both the CMK setup required for XML transaction delivery and the related Receivables customer account profile information.

Note: If you are using the existing Receivables XML Invoicing feature through the Service Oriented Architecture (SOA) business-to-business (B2B) gateway, you should only change over to OAGIS 10.1 XML transaction delivery when your customers are ready to receive transactions in OAGIS 10.1 XML format. When you do change over, you must redo your service provider and trading partner setups in Collaboration Messaging Framework.

UBL 2.1 XML Transaction Delivery for Receivables

Use the Universal Business Language (UBL) 2.1 XML format to deliver Receivables transactions to your customers as XML documents.

The UBL 2.1 format is now required for business-to-government electronic invoicing in certain countries.

As with OAGIS 10.1, the UBL 2.1 XML transaction delivery makes use of the Collaboration Messaging Framework (CMK) to send transactions to customers and receive confirmation messages from customers.

How You Configure the Universal Business Language (UBL) 2.1 XML Format

To use UBL 2.1 XML transaction delivery, you must enable the Receivables Invoice Delivery in Open Applications Group Integration Specification (OAGIS) 10.1 XML Format feature in the Feature Opt-in page in Functional Setup Manager. The Universal Business Language (UBL) 2.1 format feature is then enabled by default.

You must complete all of the required setups for OAGIS 10.1 XML transaction delivery, but with the following modifications and restrictions to use UBL 2.1 XML:

  • In the Manage Collaboration Messaging Service Providers task, the supported delivery method types in CMK for UBL 2.1 XML are B2B Adapter and Email.

  • In the Manage Collaboration Messaging Service Providers task, the outbound collaboration message definition in CMK for UBL 2.1 XML is UBL_2.1_INVOICE_OUT.

  • You can add additional attributes to the UBL 2.1 XML transaction using the User-Defined Attributes of the Receivables XML feature.

    You map additional attributes to the UBL 2.1 XML transaction by modifying the delivered UBL 2.1 XSLT using the Manage Collaboration Message Definitions task, available from the Collaboration Messaging Framework work area.

Note: If you want to deliver UBL 2.1 XML transactions using any delivery method other than those supported by CMK, or if you need to add certificates and signatures to the UBL 2.1 transaction, you must use a third party service provider.

Set up Receivables for OAGIS 10.1 XML transaction delivery, as part of the implementation to enable sending transactions to customers in OAGIS 10.1 XML format.

Along with completing the setups in Receivables, you must also complete the related setups in Collaboration Messaging Framework. Once you complete the setups in both products, you can make use of XML transaction delivery.

To set up Receivables for OAGIS 10.1 XML transaction delivery, complete these tasks:

  • Set up XML invoicing on customer account profiles.

  • Set up an attachment category for XML transactions (optional).

Note: You must first use the Feature Opt-in page in Functional Setup Manager to enable Receivables Invoice Delivery in Open Applications Group Integration Specification (OAGIS) 10.1 XML Format before completing these setups. Enabling OAGIS 10.1 XML transaction delivery also enables the Universal Business Language (UBL) 2.1 XML transaction delivery.

Set Up XML Invoicing on Customer Account Profiles

Set up the Receivables customer account profiles of customers that you intend to define as trading partners for XML transaction delivery. The settings that you use apply to all sites belonging to the customer account.

To set up a customer account for XML transaction delivery:

  1. Navigate to the Billing work area.

  2. Select the Manage Customers task.

  3. In the Manage Customers page, search for the customer that you want to enable for XML transaction delivery.

  4. In the Edit Account page, click the Profile History tab.

  5. In the Invoicing section, set the Preferred Delivery Method to XML.

  6. Select the Enable for XML Invoicing check boxes for the applicable transactions for this customer: Invoice, Debit Memo, Chargeback, Credit Memo.

    Receivables selects all eligible transactions whenever you run the Generate and Transfer XML Transactions process for this customer account.

  7. Save your work.

  8. Repeat steps 3 to 7 for each applicable customer account.

Set Up an Attachment Category for XML Transactions

You can optionally define an attachment category for including transaction header attachments in the XML transaction.

During a run of the Generate and Transfer XML Transactions process, attachments to the transaction associated with the XML attachment category you define are embedded in the OAGIS 10.1 XML.

To set up an attachment category for XML transactions:

  1. Navigate to the Setup and Maintenance work area.

  2. Select the Manage Attachment Categories task.

  3. In the Manage Attachment Categories page, click the Plus (+) icon to create a new attachment category.

    Note: You can also use an existing attachment category.
  4. Complete the fields for the XML transaction attachment category. For example:

    • Category Name: XML_INVOICE

    • User Name: XML invoice

    • Description: Attachments embedded in the XML invoice header

  5. In the Attachment Entities section, click the Plus (+) icon.

  6. In the Entity Name field, enter RA_CUSTOMER_TRX_ALL to associate attachments with the transaction header.

  7. Save your work.

  8. Select the Manage Receivables Profile Options task.

    Now associate the attachment category with the Bill Presentment profile option for printing attachments (AR_BPA_PRINT_ATTACH_CATEGORY).

  9. In the Manage Receivables Profile Options page, search for the AR_BPA_PRINT_ATTACH_CATEGORY profile option.

  10. In the Profile Values section, click the Plus (+) icon.

  11. In the Profile Level field, enter Site.

  12. In the Profile Value field, enter the name of the attachment category that you defined in step 4.

  13. Save your work.

    This site profile value allows attachments belonging to the AR_BPA_PRINT_ATTACH_CATEGORY category on the transaction header to be embedded in the XML transaction.

  14. In the Attachments window of Create Transaction pages, use the attachment category that you created and associated with the AR_BPA_PRINT_ATTACH_CATEGORY profile option to add an attachment intended for inclusion in an XML transaction.

How You Set Up Collaboration Messaging for OAGIS 10.1 XML Transaction Delivery

Set up the Collaboration Messaging Framework for OAGIS 10.1 XML transaction delivery, as part of the implementation to enable sending Receivables transactions to customers in XML format.

Along with completing the setups in Collaboration Messaging, you must also complete the related setups in Receivables. Once you complete the setups in both products, you can make use of OAGIS 10.1 XML transaction delivery.

The Collaboration Messaging setup involves enabling Collaboration Messaging for Order to Cash documents, and creating service providers and trading partners and associating them with trading partner customer accounts.

To set up Collaboration Messaging for XML transaction delivery, complete these tasks:

  • Enable collaboration messaging for Receivables.

  • Set up service providers.

  • Set up B2B trading partners.

  • Associate service providers and trading partners with customer accounts.

Note: You must first use the Feature Opt-in page in Functional Setup Manager to enable Receivables Invoice Delivery in Open Applications Group Integration Specification (OAGIS) 10.1 XML Format before completing these setups.

Enable Collaboration Messaging for Receivables

Configure your outbound message processing and enable the Order to Cash business process.

To enable collaboration messaging for Receivables:

  1. Navigate to the Setup and Maintenance work area.

  2. Select the Manage Collaboration Messaging Configuration task.

  3. In the General Setup tabbed region of the Manage Collaboration Messaging Configuration page, enter your company identifier in the Global Sender ID field.

    This identifier is used by your service providers and trading partners to identify you as the sender of XML transactions.

  4. If you are planning to send attachments with XML transactions, in the Maximum Attachment Size field enter in megabytes the maximum size of an attachment that can be embedded in an XML transaction.

    If the size of an attachment in the transaction header exceeds this limit, the attachment is not embedded in the XML transaction delivery.

  5. Click the Business Process Setup tab.

  6. In the Collaboration Business Process table, check the Enable box for the Order to Cash business process.

  7. Save your work.

Set Up Service Providers

Use the Manage Collaboration Messaging Service Providers task to create service providers. Service providers are the intermediaries that exchange messages between Oracle Applications Cloud and trading partners (customers).

For each service provider, define the delivery method, outbound collaboration message, and inbound collaboration message for OAGIS 10.1 XML transaction delivery.

Note: If you plan to send XML transactions directly to trading partners without a service provider, skip this task and complete the tasks to set up B2B trading partners and to associate service providers and trading partners with customer accounts.

To set up a service provider:

  1. Navigate to the Setup and Maintenance work area.

  2. Select the Manage Collaboration Messaging Service Providers task.

  3. In the Manage Collaboration Messaging Service Providers page, click the Plus (+) icon to open the Create Collaboration Messaging Service Provider window.

  4. In the Name field, enter the name that you want to use for the service provider.

  5. In the Provider ID field, enter the identifier for the service provider.

  6. In the ID Type field, select Generic.

  7. In the Description field, you can enter a description that identifies this service provider for XML transaction delivery.

  8. Click the Save and Close button.

  9. In the Edit Collaboration Messaging Service Provider page, click the Delivery Methods tab.

  10. Click the Plus (+) icon to open a delivery method row.

  11. In the Name field, enter the name of the XML message delivery method, according to your agreement with the service provider.

  12. In the Delivery Method Type field:

    • Select Web Service for OAGIS 10.1 XML.

    • Select B2B Adapter or Email for UBL 2.1 XML.

  13. In the Service Name field, select CollaborationMessage.Process for synchronous service or CollaborationMessage.ProcessAsync for asynchronous service.

  14. Complete the remaining fields for the delivery method according to your business requirements.

  15. Click the Outbound Collaboration Messages tab.

  16. Click the Plus (+) icon to open an outbound collaboration messages row.

  17. In the Name field, enter a name to identify this outbound collaboration message, for example, AR_Invoice.

  18. In the Collaboration Message field, select:

    • OAGIS_10.1_PROCESS_INVOICE_COLLAB_MSG_OUT for outbound OAGIS XML transaction delivery.

    • UBL_2.1_INVOICE_OUT for outbound UBL 2.1 XML transaction delivery.

  19. In the Status field, select Active.

  20. In the Delivery Method Name field, enter the XML message delivery method you defined in the Delivery Methods tab.

  21. If your service provider has agreed to send an acknowledgment in OAGIS 10.1 CBOD format for XML transactions received, click the Inbound Collaboration Messages tab to define the inbound collaboration message.

  22. Click the Plus (+) icon to open an inbound collaboration messages row.

  23. In the Name field, enter a name to identify the inbound collaboration message, for example, AR_CBOD.

  24. In the Collaboration Message field, select OAGIS_10.1_CONFIRM_BOD_COLLAB_MSG_IN.

  25. In the Status field, select Active.

  26. Click the Outbound Collaboration Messages tab again.

  27. In the Status field, select Inactive.

    This lets you edit the fields in the outbound collaboration message.

  28. In the Confirmation Message Name field enter the name of the CBOD message that you just defined.

    This associates the inbound CBOD message with the outbound transaction message to receive acknowledgment of the XML transaction.

  29. In the Status field, select Active.

  30. Save your work.

Set Up B2B Trading Partners

Trading partners are the customers that you designate to receive Receivables transactions in XML format. Each trading partner is required to have a trading partner identifier, known to you and to your service provider. This identifier is included in the XML message and is used by the service provider to identify the trading partner receiving the XML document.

You must also set up the Receivables customer account profile for each customer that you intend to define as a trading partner for XML transaction delivery.

After you create the trading partner, you must associate the outbound collaboration message and inbound CBOD collaboration message that you defined for the service provider with the trading partner.

To set up a trading partner:

  1. Navigate to the Collaboration Messaging work area.

  2. Select the Manage B2B Trading Partners task.

  3. In the Manage B2B Trading Partners page, click the Plus (+) icon to open the Create Trading Partner window.

  4. In the Service Provider field, select the service provider to use for this trading partner for XML delivery.

    If you plan to send XML transactions to the trading partner directly without using a service provider, select None.

  5. In the Trading Partner ID field, enter the identifier for the trading partner.

  6. In the Partner ID Type field, select the category of the trading partner identifier.

    Valid values are: D-U-N-S, Generic (if you use the customer account number to identify the trading partner), GLN, MISC, PHONE, TAXID, Name (if you use the customer account name to identify the trading partner).

  7. Click the Save and Close button.

  8. In the Collaboration Documents for Service Provider section of the Edit Trading Partner page, enter in the Documents column the outbound collaboration message and inbound CBOD collaboration message for this service provider.

  9. Save your work.

Associate Service Providers and Trading Partners with Customer Accounts

After setting up your service providers and trading partners, associate both the service provider and trading partner to the related customer account.

If you plan to send XML transactions to the trading partner directly without using a service provider, you must still associate the service provider value None with the related customer account.

To associate a service provider and trading partner to a customer account:

  1. Navigate to the Collaboration Messaging work area.

  2. Select the Manage Customer Account Collaboration Configuration task.

  3. In the Manage Customer Account Collaboration Configuration page, search for the customer account you want.

  4. Select the customer account and click the Edit Collaboration Configuration button.

  5. In the Associated Service Providers section of the Edit Customer Account Collaboration Configuration page, click the Plus (+) icon to open a service provider row.

  6. Enter the service provider and the related trading partner ID. This associates the service provider and trading partner with the customer account.

  7. In the Collaboration Documents for Service Provider section, click the Plus (+) icon to open a collaboration documents row.

  8. In the Document field, enter the outbound collaboration message associated with the service provider.

    You don't need to enter the inbound CBOD collaboration message, because it is already associated with the service provider.

  9. In the Associated Status field, select Enabled.

  10. Save your work.

Use the Customer Import FBDI (File-Based Data Import) to complete certain setups for OAGIS 10.1 XML transaction delivery.

You can use the RA_CUSTOMER_PROFILES_INT_ALL worksheet of the Customer Import Template to complete these setups in Collaboration Messaging Framework and in Receivables:

  • Collaboration Messaging: B2B trading partners.

  • Collaboration Messaging: Customer account collaboration configuration.

  • Receivables: Customer account profiles. You can either update an existing customer account profile or create a new customer account profile.

The data in this worksheet is imported into the RA_CUSTOMER_PROFILES_INT_ALL interface table for transfer to Receivables.

Note: You can only use the Customer Import FBDI to import setup data for OAGIS 10.1 XML transaction delivery if you are using a service provider to send XML documents.

Before you can import setup data using the Customer Import Template, you must complete these tasks:

  • Use the Feature Opt-in page in Functional Setup Manager to enable the Receivables Invoice Delivery in Open Applications Group Integration Specification (OAGIS) 10.1 XML Format feature.

  • Use the Manage Collaboration Messaging Service Providers task to create service providers for XML transaction delivery.

To import setup data for XML transaction delivery:

  1. Download the Customer Import Template.

  2. Click the RA_CUSTOMER_PROFILES_INT_ALL tab.

    The RA_CUSTOMER_PROFILES_INT_ALL worksheet displays the columns for Receivables customer account profiles. The Collaboration Messaging columns are hidden by default.

  3. Display the Collaboration Messaging columns:

    1. Highlight the XML Invoicing for Credit Memo column and the next column.

    2. Right-click to display the Collaboration Messaging columns.

  4. Complete the Collaboration Messaging columns:

    1. Enable Collaboration Messaging Configuration: Select Y to import Collaboration Messaging setup data for the customer account.

    2. Service Provider Name: Enter the name of the service provider that you defined using the Manage Collaboration Messaging Service Providers task.

    3. Trading Partner ID: Enter the code that identifies the customer account as a trading partner to receive XML transactions.

    4. Trading Partner ID Type: Select the category of the trading partner identifier.

      Valid values are: D-U-N-S, Generic (if you use the customer account number to identify the trading partner), GLN, MISC, PHONE, TAXID, Name (if you use the customer account name to identify the trading partner).

    5. Receivables Outbound XML Transaction Document: Select Y to indicate that the trading partner is enabled to receive Receivables transactions in XML format.

    6. Receivables Inbound Confirmation Document: Select Y to indicate that the trading partner is enabled to send back a confirmation BOD after receiving an XML transaction.

  5. Complete the Receivables customer account profile columns according to your requirements.

  6. Submit the Data Import Batch to import the Receivables and Collaboration Messaging setup data into the corresponding tables.

B2B XML

Send Receivables transactions electronically in XML format to designated customers using the Oracle B2B outbound service. Oracle B2B is a SOA Suite component that manages the interactions between your enterprise and your customers.

A customer designated for receiving transactions in XML format is called a trading partner. You set up your customer trading partners in Oracle B2B to send XML transactions using one of these transmission methods:

  • Directly to the customer.

  • Using Oracle Supplier Network.

  • Using a third-party service.

In Receivables, you must set up the related customer accounts for B2B XML using the Invoicing section of the account profile. The settings that you use apply to all sites belonging to the customer account.

To set up a customer account for B2B XML invoicing:

  1. In the Invoicing section of the Account Profile tab, select XML in the Preferred Delivery Method field.

  2. In the B2B Trading Partner Code field, enter the connecting identifier of the trading partner.

    If applicable, you can assign the same trading partner code to multiple customer accounts.

    Caution: This is a required value for XML delivery. If you don't enter the connecting identifier, then you can't send transactions in XML format to this customer account.
  3. Using the Enable for XML Invoicing check boxes, select the transactions that you want to send to this trading partner in XML format. Receivables selects all eligible transactions whenever you run the XML Invoicing Program for this customer account.

After you set up your customer accounts for B2B XML invoicing, you can use the XML invoice template to enhance the information included in the invoice output by mapping Receivables attributes to attributes in the User Area section of the template.

Once your setup is complete, use the XML Invoicing Program to send customer transactions in XML format. If any transactions fail during the transmission process, use the Manage Transactions page to review failed transactions and pursue corrective actions. You can then resend these transactions using the XML Invoicing Program.

Use the XML Invoicing Program to send Receivables transactions to your customer trading partners.

These restrictions apply to the transactions you send:

  • Transactions belong to customer accounts set up for XML invoicing.

  • Transactions are complete.

  • Transactions have a status of Print Pending.

  • Transactions (invoice, credit memo, debit memo, chargeback) are enabled for XML invoicing in the related customer account profiles.

  • Transactions have the printing option on the transaction type set to Print.

New Transactions

Select New Transactions Only in the Transactions Included field to send new transactions in XML format to your customers. You can process all eligible transactions for all business units and customers, or you can use the available parameters to limit the transactions processed according to your needs.

Failed Transactions

Transactions can fail to transmit correctly at one of three stages in the transmission process.

These three stages are:

  • Receivables process

  • SOA process

  • B2B process

This table describes the potential errors that can occur at each stage of the B2B XML transmission process:

XML

Process Error Condition Error Notification Corrective Action

Receivables

Customer Account is missing the B2B trading partner code.

Transaction marked as Failed with corresponding error reason.

Add the B2B trading partner code to the appropriate account.

SOA

Receivables system or server is down.

Transaction is not marked because it was not processed. System error notification only on the EM console.

System administrator restarts and reinitiates SOA for the transaction.

SOA

Transformation errors.

Transaction marked as Failed with corresponding error reason.

System administrator fixes the transformation errors.

SOA

B2B server is down.

Transaction marked as Failed with corresponding error reason.

System administrator restarts the B2B server.

B2B

B2B setup is either incomplete or incorrect.

Transaction marked as Failed with corresponding error reason.

B2B administrator fixes the B2B setup errors.

Set Up Oracle B2B to Send Receivables XML Transactions

Oracle B2B Server is an Oracle SOA Suite component that manages interactions between deploying companies and trading partners. Oracle Receivables supports an outbound Oracle B2B flow using Oracle B2B Server to send transactions to customer trading partners in XML format.

The setup of the Oracle B2B flow for Receivables makes use of these existing elements:

  • XML Schema document guideline

  • OAG-7.2.1-PROCESS_INVOICE_002-OAG_DEF document definition

  • Host trading partner MyCompany

To set up Oracle B2B to send Receivables transactions in XML:

  • Configure the host and remote trading partners

  • Configure agreements between the host and remote trading partners

Configure Trading Partners

Configure your enterprise as the host trading partner, and all of your customers that receive XML documents as remote trading partners.

To configure trading partners:

  1. Log in to the Oracle B2B Server.

  2. Navigate to the Administration page.

  3. Click the Document tab.

  4. Load the OAG-7.2.1-PROCESS_INVOICE_002-OAG_DEF document definition file.

  5. Click the Types tab.

  6. Add a new Internal Identifier with the name B2B Trading Partner Code.

    This name matches the field name on the customer account profile.

  7. Navigate to the Partners page.

  8. In the Partner section, select the default host partner MyCompany.

  9. If necessary, update the default host partner name to reflect your enterprise.

  10. Click the Documents tab.

  11. Verify that the OAG-7.2.1-PROCESS_INVOICE_002-OAG_DEF document definition is assigned to the host trading partner.

  12. Ensure that the Sender option is enabled.

  13. In the Partner section, click the Add icon.

  14. Enter the name of a remote trading partner.

  15. Select the Internal Identifier Type B2B Trading Partner Code that you previously created and enter the Value for the identifier.

    This is the value that you will enter in the B2B Trading Partner Code field on the customer account profile of this remote trading partner.

  16. Click the Documents tab.

  17. Click the Add icon to associate the OAG-7.2.1-PROCESS_INVOICE_002-OAG_DEF document definition with the remote trading partner.

  18. Enable the Receiver option.

  19. Click the Channel tab.

  20. Define a channel for the remote trading partner.

    The channel determines how the XML transaction is delivered to the remote trading partner from B2B: directly; using the Oracle Supplier Network (OSN), or using a third party service.

    If you are communicating using Oracle Supplier Network (OSN), select the Generic Identifier and enter the IP Address for OSN.

  21. Repeat steps 13 to 20 for each remote trading partner.

Configure Agreements

A trading partner agreement defines the terms that enable two trading partners, the sender and the receiver, to exchange business documents. The agreement identifies the trading partners, trading partner identifiers, document definitions and channels.

An agreement consists of two trading partners, the host trading partner and one remote trading partner, and represents one type of business transaction between these partners. For example, if the host trading partner MyCompany and the remote trading partner ABC Solutions regularly exchange both purchase orders and invoices, then two separate agreements are needed for each document definition.

To configure agreements between the host and remote trading partners:

  1. Log in to the Oracle B2B Server.

  2. Navigate to the Partners page.

  3. In the Agreement section, click the Add icon to open a new agreement for the host trading partner MyCompany.

  4. Enter the agreement ID and Name.

  5. Enter the agreement parameters.

  6. Select the Document Definition OAG-7.2.1-PROCESS_INVOICE_002-OAG_DEF for this agreement.

  7. Select the remote trading partner to include in this agreement.

  8. Select the channel for the remote trading partner.

  9. Add identifiers for the remote trading partner.

  10. Click Save to save the agreement.

  11. Click Validate to validate the agreement.

  12. Click Deploy to deploy the agreement.

    Deployment is the process of activating an agreement from the design-time repository to the run-time repository.

  13. Repeat steps 3 to 12 for each agreement between the host trading partner and this remote trading partner.

FAQs for B2B XML

You configure and maintain B2B XML invoicing parameters in the related customer account profile. Customer sites share the settings of the related customer account.

Detailed Receivables Distributions

Detailed Receivables Distributions is an optional accounting feature that lets you post transactions, adjustments, and receipts to multiple balancing segment values or funds. The Detailed Receivables Distributions feature is also known as Multifund Accounting.

In a default accounting model, multiple revenue, freight, and tax lines of a transaction are consolidated and accounted as a single distribution line. When Detailed Receivables Distributions is enabled for a business unit and ledger, then the accounting process creates detailed distributions for each transaction line according to the balancing segment values of the account code combinations.

You can use Detailed Receivables Distributions to monitor and track the receipts and usage for each of your balancing segment values. This lets you manage, for example, the disbursement of funds supporting a particular public sector project, such as a general operating fund, endowment fund, and gift fund. Or you can monitor and extract financial information in your organization by division, department, and product, without the need for creating separate invoices for each of these sectors.

The use of Detailed Receivables Distributions is for the setup of a new business unit and primary ledger only. Detailed distributions apply to these activities only: standard and miscellaneous receipts, invoices, credit memos, debit memos, and adjustments.

Example of Detailed Receivables Distributions

These tables provide an example of the creation of detailed receivables distributions for an invoice. In this example, Invoice 101 makes use of funding from two different fund sources.

Invoice 101 has two invoice lines, one in the amount of $1000 and one in the amount of $500:

Line Number Memo Line Quantity Unit Price Amount

1

1 year support

1

1000

1000

2

1 year additional consultations

2

250

500

The accounting for these invoice lines with detailed distributions splits the Receivable and Revenue across the two funds (the additional $190 is for Tax and Freight):

Line Event Account Class Debit Credit

1

Invoice Created

02-000-1200-0000-000

Receivable

1120.00

2

Invoice Created

03-000-1200-0000-000

Receivable

570.00

3

Invoice Created

02-000-4100-0000-000

Revenue

1000.00

4

Invoice Created

03-000-4100-0000-000

Revenue

500.00

Reports for Detailed Receivables Distributions

Use the available reports to review and reconcile your detailed receivables distributions.

You can manage your detailed receivables distributions using the Receivables to General Ledger Reconciliation Report and the Receivables Aging by General Ledger Account for Multifund Accounting Report.

Note: The use of these reports for reviewing detailed receivables distributions applies only to the ledger and business units set up to use Multifund Accounting.

You can review and reconcile your detailed receivables distributions using the available tools in the Receivables to General Ledger Reconciliation Report. Run the Prepare Receivables to General Ledger Reconciliation process, and then access the summary and detailed reports using the Receivables to General Ledger Reconciliation task.

You can generate and review the aging details for the ledger and business units enabled for Multifund Accounting using the Receivables Aging by General Ledger Account for Multifund Accounting Report. You schedule this report from the Oracle Transactional Business Intelligence Catalog.

You enable Detailed Receivables Distributions as part of your Receivables System Options setup for a business unit.

The deployment of Detailed Receivables Distributions is for the setup of a new business unit and primary ledger only. The use of Detailed Receivables Distributions involves preliminary planning and an understanding of the ramifications related to its use. Before you enable this feature, review all of the guidelines indicated in this topic.

Note: For implementation purposes, the predefined data for the Detailed Receivables Distribution feature is referred to as Multifund Accounting.

Enable Detailed Receivables Distributions

To enable Detailed Receivables Distributions, follow these steps:

  1. Navigate to Setup and Maintenance.

  2. Search for the task Manage Receivables System Options.

  3. Open the Create or Edit System Options page for the business unit created for Detailed Receivables Distributions.

  4. If not already displayed, navigate to the Accounting section of the Billing and Revenue tabbed region.

  5. Enable the Enable multifund accounting option.

  6. Save your work.

Caution: Once you enable the Enable multifund accounting option for Detailed Receivables Distributions and save the System Options record, you can't disable this feature for this business unit.

To complete your setup for Detailed Receivables Distributions, you must also create an accounting method in Subledger Accounting for the primary ledger assigned to this business unit.

Requirements for Business Units and Primary Ledger

Even though you enable the setting for this feature as part of the Receivables System Options setup for a business unit, the setting actually applies to the primary ledger and all of the Receivables business units associated with this ledger.

These requirements apply to enabling Detailed Receivables Distributions for a business unit:

  • When you enable the Detailed Receivables Distributions feature for a business unit, this feature is also automatically enabled on all business units associated with the same primary ledger.

  • If any business unit associated with this primary ledger doesn't require Detailed Receivables Distributions, then you must disassociate the business unit from this ledger before enabling the feature.

  • You can only enable Detailed Receivables Distributions on business units that don't have any transactions. Because of this, the use of this feature is only for the implementation of a new business unit and ledger.

Requirements for Migrating Legacy Transactions

These requirements apply to migrating legacy transactions to a business unit enabled for Detailed Receivables Distributions:

  • You must enable Detailed Receivables Distributions for a business unit before migrating transactions from your legacy system to this business unit.

  • You can use either an FBDI template or Receivables REST API resources to migrate your transactions.

  • Migrate your legacy transactions as open balances for each transaction line.

  • After migrating your legacy transactions, post all transactions to General Ledger.

To ensure the posting of all migrated transactions to a single journal, in the Edit Accounting Options page for the applicable ledger, set the General Ledger Journal option Entry Summarization to Summarize by General Ledger Date.

This setting lets you manually reverse the journal so that it won't contradict open balance migrations from General Ledger. This also prevents unwanted entries for Revenue, Freight, and Taxes in the current period.

After you enable a business unit for Detailed Receivables Distributions using the Enable multifund accounting option in Receivables System Options, you must complete related setups in Subledger Accounting to use Detailed Receivables Distributions.

Note: For implementation purposes, the predefined data for the Detailed Receivables Distribution feature is referred to as Multifund Accounting.

Set Up a Multifund Accounting Method and Journal Entry Rule Sets

Create a Multifund accounting method and journal entry rule set assignments in Subledger Accounting for the primary ledger assigned to the business unit.

To prepare the primary ledger for Detailed Receivables Distributions:

  • Create an accounting method for Multifund Accounting.

  • Assign the predefined journal entry rule sets for the multifund accounting balancing method to the accounting method.

  • Associate the accounting method for Multifund Accounting with the primary ledger.

To set up the Multifund accounting method, complete these steps:

  1. Navigate to the Manage Accounting Methods task from the Receivables configuration.

  2. Search for the Accounting Method Standard Accrual.

  3. In the Edit Accounting Method page for Standard Accrual, select Duplicate from the Actions menu.

  4. In the Create Accounting Method window, create an accounting method for Multifund Accounting. Enter for example:

    1. In the Name field, enter Multifund Accounting Method.

    2. In the Short Name field, enter MULTI_FUND_ACCOUNTING_METD.

    3. In the Description field, enter "Accounting method to support Multifund Accounting."

    4. In the Chart of Accounts field, select the chart of accounts.

    5. Click the Save and Close button.

  5. In the Journal Entry Rule Set Assignments section of the Edit Accounting Method page for Multifund Accounting, delete the existing rule sets copied from the Duplicate action.

  6. Enter the predefined Multifund Accounting rule sets:

    • Invoices - Multifund Accounting Balancing Method

    • Credit Memos - Multifund Accounting Balancing Method

    • Debit Memos - Multifund Accounting Balancing Method

    • Adjustments - Multifund Accounting Balancing Method

    • Receipts - Multifund Accounting Balancing Method

    • Miscellaneous Receipts - Multifund Accounting Balancing Method

  7. Activate the Multifund Accounting accounting method.

  8. Save your work.

  9. Navigate to the Specify Ledger Options task.

  10. Select the primary ledger associated with the business unit enabled for Multifund Accounting.

  11. In the Accounting Method field of the Subledger Accounting section of the Specify Ledger Options page, select the accounting method that you defined for Multifund Accounting.

  12. Complete the remaining fields according to your business requirements

  13. Save your work.

Set Up Detailed Receivables Distributions for Transactions with Invoicing Rules

You can set up Subledger Accounting to create detailed distributions on Receivables transactions that use invoicing rules. With the appropriate setup, the Receivables account is split on the basis of Unearned Revenue for transactions using the In Advance invoicing rule, and Unbilled Receivables for transactions using the In Arrears invoicing rule.

Example of Detailed Receivables Distributions on an Invoice with an Invoicing Rule

The example in the tables below illustrates how the Receivables account is split on an invoice assigned the In Advance invoicing rule. The revenue scheduling rule uses the fixed schedule rule type.

This table shows details of the transaction:

Field Value

Invoice Date

1-Mar-20

Invoicing Rule

In Advance

Line 1 Amount

7-Nov-32

Line 2 Amount

24-Jan-41

Revenue Scheduling Rule

3 Months Fixed

Rule Start Date

20-Jan-20

This table shows the resulting Invoice Accounting Entries, with the Receivables account split according to balancing segment values 01 and 02. The corresponding revenue is recognized over the three-month period, as specified by the revenue scheduling rule:

Date Dr/Cr Account Class GL Account Amount

1-Mar-20

Debit

Receivables

01-000-1210-0000-000

1200

1-Mar-20

Debit

Receivables

02-000-1210-0000-000

1500

1-Mar-20

Credit

Unearned Revenue

01-000-1222-0000-000

1200

1-Mar-20

Credit

Unearned Revenue

02-000-1222-0000-000

1500

1-Mar-20

Debit

Unearned Revenue

01-000-1222-0000-000

4000

1-Mar-20

Credit

Revenue

01-000-4110-0000-000

4000

1-Mar-20

Debit

Unearned Revenue

02-000-1222-0000-000

5000

1-Mar-20

Credit

Revenue

02-000-4110-0000-000

5000

1-Apr-20

Debit

Unearned Revenue

01-000-1222-0000-000

4000

1-Apr-20

Credit

Revenue

01-000-4110-0000-000

4000

1-Apr-20

Debit

Unearned Revenue

02-000-1222-0000-000

5000

1-Apr-20

Credit

Revenue

02-000-4110-0000-000

5000

1-May-20

Debit

Unearned Revenue

01-000-1222-0000-000

4000

1-May-20

Credit

Revenue

01-000-4110-0000-000

4000

1-May-20

Debit

Unearned Revenue

02-000-1222-0000-000

5000

1-May-20

Credit

Revenue

02-000-4110-0000-000

5000

Setting Up Your Balancing Segment Values

As this example illustrates, you must use the same balancing segment value for the corresponding invoicing rule:

  • In Advance: Use the same balancing segment value for the Unearned Revenue and Revenue accounts across periods.

  • In Arrears: Use the same balancing segment value for the Unbilled Receivables and Revenue accounts across periods.

Note: Using the same balancing segment values applies whether a balancing segment value is manually overridden using the Review Distributions window or overridden through the segment rules in Subledger Accounting. Otherwise, Intracompany and Intercompany balancing entries are generated.

To use Detailed Receivables Distributions on transactions that use invoicing rules and revenue scheduling rules, you must modify the Multifund accounting method you created for the primary ledger associated with the business unit enabled for Multifund Accounting.

To modify the Multifund accounting method for invoices with rules, perform these four tasks:

  1. Create a journal line rule for the Invoice event class and associate it with the journal entry rule set.

  2. Create a journal line rule for the Debit Memo event class and associate it with the journal entry rule set.

  3. Modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class.

  4. Update your Multifund accounting method with the new rule sets for Invoice, Debit Memo, and Receipt.

Create a Journal Line Rule for Invoice Event Class and Associate the Rule with the Journal Entry Rule Set

To create a journal line rule for the Invoice event class and associate it with the journal entry rule set, complete these steps:

  1. Navigate to the Journal Line Rules task from the Receivables configuration.

  2. In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Multifund Invoice Receivable.

  3. Select Multifund Invoice Receivable and click the Duplicate icon.

  4. In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Multifund Invoice Receivable journal line rule.

  5. Click the Save and Close button.

  6. In the Conditions tabbed region of the Edit Journal Line Rule page, enter the following conditions for the new Multifund Invoice Receivable journal line rule:

    ("Transaction Invoicing Rule" Is not null) 'And' ( "Transaction Distribution Account Class" = TAX 'Or' "Transaction Distribution Account Class" = FREIGHT 'Or' "Transaction Distribution Account Class" = ROUND 'Or' "Transaction Distribution Account Class" = CHARGES 'Or' "Transaction Distribution Account Class" = DEFERRED_TAX 'Or' ( "Transaction Distribution Account Class" = UNBILL 'And' "Receivables Offset Indicator" = Y ) 'Or' ( "Transaction Distribution Account Class" = UNEARN 'And' "Receivables Offset Indicator" = Y ) )
    Caution: Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.
  7. Click the Save and Close button.

  8. Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

  9. In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Invoices - Multifund Accounting Balancing Method.

  10. Select Invoices - Multifund Accounting Balancing Method and click the Duplicate icon.

  11. In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Invoices - Multifund Accounting Balancing Method journal entry rule set.

  12. Click the Save and Close button.

  13. In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, click the Plus (+) icon to create a new row.

  14. In the Journal Line Rule field, select the new Multifund Invoice Receivable journal line rule that you created in steps 1-5.

  15. In the Account Combination Rule field, select Multifund Transaction Default Receivables GL Account.

  16. In the Primary Balancing Segment, Second Balancing Segment, and Third Balancing Segment fields, select Copy.

  17. Click the Save and Close button.

Create a Journal Line Rule for Debit Memo Event Class and Associate the Rule with the Journal Entry Rule Set

Create a journal line rule for the Debit Memo event class and associate the new Debit Memo journal line rule with the journal entry rule set by completing the same steps as you did for the Invoice event class.

Modify the Receipt Application to Multifund Transaction Receivable Journal Line Rule

To modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class, complete these steps:

  1. Navigate to the Journal Line Rules task from the Receivables configuration.

  2. In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Receipt Application to Multifund Transaction Receivable.

  3. Select Receipt Application to Multifund Transaction Receivable and click the Duplicate icon.

  4. In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Receipt Application to Multifund Transaction Receivable journal line rule.

  5. Click the Save and Close button.

  6. In the Conditions tabbed region of the Edit Journal Line Rule page, insert these new condition details:

    'Or' "Transaction Distribution Account Class" = UNEARN 'Or' "Transaction Distribution Account Class" = UNBILL

    before the existing condition details:

    'And' "Distribution Source Type" = REC 'And' "Distribution Multifund Additional Entry" = N
    Caution: Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.
  7. Click the Save and Close button.

  8. Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

  9. In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Receipts - Multifund Accounting Balancing Method.

  10. Select Receipts - Multifund Accounting Balancing Method and click the Duplicate icon.

  11. In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Receipts - Multifund Accounting Balancing Method journal entry rule set.

  12. Click the Save and Close button.

  13. In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, select the existing Receipt Application to Multifund Transaction Receivable journal line rule and delete it.

  14. Click the Plus (+) icon to create a new row.

  15. In the Journal Line Rule field, select the new Receipt Application to Multifund Transaction Receivable journal line rule that you just created and modified.

  16. Click the Save and Close button.

Update Your Multifund Accounting Method with the New Rule Sets

To replace the existing rule sets for the Invoice, Debit Memo, and Receipt event class in your Multifund accounting method, complete these steps:

  1. Navigate to the Manage Accounting Methods task from the Receivables configuration.

  2. In the Manage Accounting Methods page, search for and select your Multifund Accounting Method to navigate to the Edit Accounting Method page.

  3. In the Receivables tabbed region of the Journal Entry Rule Set Assignments section of the Edit Accounting Method page, either delete or apply an end date to the existing rule sets for Invoice, Debit Memo, and Receipt.

  4. Add the new rule sets that you created for Invoice, Debit Memo, and Receipt and activate them.

  5. Click the Save and Close button.