Simple Configuration to Operate Receivables

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

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

Receivables Configuration Tasks

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

Perform these seven tasks in the order indicated:

1. Set Receivables System Options

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

2. Define Receivables Activities

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

3. Define AutoAccounting Rules

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

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

4. Define Receipt Classes and Methods

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

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

5. Define Remit-to Addresses

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

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

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

6. Define Approval Limits

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

7. Define Statement Cycles

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