2. 2
Overview of Oracle Receivables
CONTENTS
Oracle Receivables
I. Overview of Accounts Receivables
II. Creating Receivables Responsibility
III. Oracle Receivables Set up
1. System Options
2. Defining Customer
a. Creating Customer Profile Class
b. Creating Customer
3. Transaction Setups
a. Transaction Types
b. Transaction Sources
4. Auto Accounting
5. Open or close Accounting Periods
6. Tax Managers
7. Receivable Activities
8. Receipts Setups
a. Receipts Classes
b. Receipts Sources
9. Validate Application Accounting Definations
10. Document Sequences
IV. Creating Transactions
a. Transaction
b. Credit memo
c. Deposit Transaction
d. Apply Deposit to Next Transaction
V. Creating Receipts
1. Creating Receipts
2. Receipt Adjustment
3. Credit Card Receipts
VI. Creating Remittances
1. Creating Remittance Batches
VII. Integration with General Ledger
1. Month end Process
2. Closing Accounting Periods
3. 3
Overview of Oracle Receivables
I. Overview of Oracle Receivables
Oracle Receivables allows you to streamline invoicing, receipt, and customer deduction
processing while improving cash flow, optimizing customer relationships, and providing
strategic information. As a subledger, Oracle Receivables provides the flexibility to meet the
demands of a global market with strong financial controls to assist in instilling corporate and
fiscal discipline.
Enhance Value by Combining with the Entire Oracle E-Business Suite
Oracle Receivables works seamlessly with other Oracle E-Business Suite products to drive
better decision-making, sustainable financial discipline, regulatory compliance, and
optimized business processes at the lowest cost.
Benefits
Streamline Your Operations and Increase Your Cash Flow
Oracle Receivables seamlessly manages your invoicing needs and offers importing
capabilities to extend this service to non-Oracle ordering systems. Facilitate account
collection with correspondence tracking, instant access to current customer account
information, and collector task scheduling.
Instill Corporate and Fiscal Discipline
Ensure compliance with accounting standards and company policies by mapping your
business model to the appropriate revenue schedules. Promote strong internal controls
through function security, approval processes, and appropriate dissemination of
information.
Expand to Global Markets
With Oracle Receivables, your enterprise has the flexibility to respond to global needs,
support diverse regulatory requirements, and optimize customer relationships in the
global economy.
4. 4
Accounting in Receivables
Accounting in Receivables
You create accounting entries for invoices and other transactions in Oracle Receivables using
the Oracle Sub ledger accounting architecture.
Oracle Sub ledger Accounting is a rule-based accounting engine, toolset, and repository that
centralizes accounting across the E-Business Suite. Acting as an intermediate step between
each of the Sub ledger applications and Oracle General Ledger, Oracle Sub ledger Accounting
creates the final accounting for Sub ledger journal entries and transfers the accounting to
Oracle General Ledger.
Receivables includes a set of predefined accounting rules that Sub ledger Accounting uses to
create accounting, but you can define your own detailed accounting rules using a centralized
accounting setup in a common user interface.
Leveraging this accounting architecture, Receivables lets you:
Store a complete and balanced Sub ledger journal entry in a common data model for
each business event that requires accounting
Maintain multiple accounting representations for a single business event, resolving
conflicts between corporate and local fiscal accounting requirements
Retain the most granular level of detail in the Sub ledger, with different
summarization options in the general ledger, allowing full audit ability and
reconciliation because the link between transaction and accounting data is preserved
II. Creating Accounts Receivables Responsibility
Responsibilities Window
Use this window to define a responsibility. Each application user is assigned at least one
responsibility.
A responsibility determines whether the user accesses Oracle Applications or Oracle Mobile
Applications; which applications functions a user can use; which reports and concurrent
programs the user can run; and which data those reports and concurrent programs can access.
Responsibilities cannot be deleted. To prevent a responsibility from being used, set the
Effective Date's to field to a past date and restart Oracle Applications.
Before defining your responsibility, do the following:
Use the Data Groups window to list the ORACLE username your responsibility's
concurrent programs reference on an application-by-application basis.
Use the Request Groups window to define the Request Group you wish to make
available with this responsibility.
Use the Menus window to view the predefined Menu you can assign to this
5. 5
Creating Accounts Receivables Responsibility
responsibility.
Responsibilities Block
An application name and a responsibility name uniquely identify a responsibility.
Responsibility Name
If you have multiple responsibilities, a pop-up window includes this name after you sign on.
Application
The owning application for the responsibility.
This application name does not prevent the user of this responsibility from accessing other
applications' forms and functions if you define the menu to access other applications.
Responsibility Key
This is the internal key for the responsibility that is used by loader programs, (concurrent
programs that load messages, user profiles, user profile values, and other information into
Oracle Applications tables). The responsibility key is unique per application.
Effective Dates (From/To)
Enter the start/end dates on which the responsibility becomes active/inactive. The default
value for the start date is the current date. If you do not enter an end date, the responsibility
is valid indefinitely.
You cannot delete a responsibility, because its information helps to provide an audit trail.
You can deactivate a responsibility at any time by setting the end date to the current date. If
you wish to reactivate the responsibility later, either change the end date to a date after the
current date, or clear the end date.
Available From
This is the navigator from which the responsibility will be available (Oracle Applications forms
navigator, mobile navigator).
A responsibility may be associated with only one Applications system.
Data Group
Note: Data groups are used for backward compatibility only. Oracle Application Framework
does not support the data groups feature.
Name/Application
6. 6
Creating Accounts Receivables Responsibility
The data group defines the pairing of application and ORACLE username.
Select the application whose ORACLE username forms connect to when you choose this
responsibility. The ORACLE username determines the database tables and table privileges
accessible by your responsibility. Transaction managers can only process requests from
responsibilities assigned the same data group as the transaction manager.
Menu
The menu whose name you enter must already be defined with Oracle Applications.
Request Group - Name/Application
If you do not assign a request security group to this responsibility, a user with this
responsibility cannot run requests, request sets, or concurrent programs from the Submit
Requests window, except for request sets owned by the user. The user can access requests
from a Submit Requests window you customize with a request group code through menu
parameters.
Menu Exclusions Block
Note: Menu exclusions should be used for backward compatibility only.
Define function and menu exclusion rules to restrict the application functionality accessible
to a responsibility.
Type
Select either Function or Menu as the type of exclusion rule to apply against this
responsibility.
When you exclude a function from a responsibility, all occurrences of that function
throughout the responsibility's menu structure are excluded.
When you exclude a menu, all of its menu entries, that is, all the functions and menus
of functions that it selects are excluded.
Name
Select the name of the function or menu you wish to exclude from this responsibility. The
function or menu you specify must already be defined in Oracle Applications.
HTML-Based Applications Security
Oracle HTML-based applications use columns, rows and values in database tables to define
what information users can access. Table columns represent attributes that can be assigned
to a responsibility as Securing Attributes or Excluded Attributes. These attributes are defined
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Creating Accounts Receivables Responsibility
in the Web Application Dictionary.
Excluded Items
Use the List of Values to select valid attributes. You can assign any number of Excluded
Attributes to a responsibility.
Securing Attributes
Use the List of Values to select valid attributes. You can assign any number of securing
attributes to the responsibility.
Creating Accounts Payables Responsibility
Steps:
Create a super user to use as a logon name during setup and assign the super user the
required setup responsibilities.
1. Switch to System Administrator Responsibility
2. File > Switch Responsibility > System Administrator
3. N: Security > Responsibility > Define
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Credit Card Receipts (for Credit Card Payments made by customer)
Click on Create
Click on Apply
Click on Apply
188. 188
Credit Card Receipts (for Credit Card Payments made by customer)
Click on Apply
Click on Complete
Click on OK and Close.
Batching Receipts for Easy Entry and Retrieval
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Credit Card Receipts (for Credit Card Payments made by customer)
Use the Receipt Batches window to create receipt batches or to query existing batches.
Batching receipts lets you:
View the difference between your control and actual batch counts and amounts as you
process your receipts. These differences can alert you to data entry errors, missing or lost
receipts, or duplicate entries.
Group related receipts together to share default attributes such as receipt class, receipt
method, and automatic numbering.
Manage the time-consuming task of data entry. For example, you have many receipts to enter
and want to divide the work among several people. You can create one batch and have each
person entering receipts add them to the same batch.
You can add duplicate receipts to a batch. Duplicate receipts are receipts that have the same
number, amount, and customer information.
You can post a receipt batch to your general ledger regardless of its status. You can delete a
receipt batch only if it does not contain any receipts.
Receivables let you add receipts denominated in different currencies to a batch. However,
the total in the Receipt Batches window reflects amounts entered in currencies, not the
batch currency. For example, if there are two receipts in a batch, one for 400 USD and one
for 200 EUR, the total amount for this batch is 600, regardless of the batch currency.
Note: You can specify how many spaces are available to the right of the decimal point when
displaying numbers representing different currencies using the profile option Currency: Mixed
Currency Precision.
Attention: The GUI versions of Oracle Receivables let you enter receipts both individually and
as part of a batch. Previous versions (i.e. character mode) required that you either entered
receipts as part of a batch entered them individually (in the latter case, you could not
create batches at all). As a result, if you are using Receivables in character mode, you can
only query receipts that were entered in the GUI version if they are part of a batch.
Batch Statuses
A batch has a status that indicates whether it is complete. Receivables automatically update
the status of a receipt batch when you add new or apply existing receipts in the batch. A
batch can have one of the following statuses:
New: This is a new batch that does not yet contain any receipts.
Out of Balance: The actual count and amount of receipts in this batch do not equal the
control count and amount.
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Credit Card Receipts (for Credit Card Payments made by customer)
Open: The actual count and amount equal your control count and amount. However, you have
one or more receipts that are unidentified or unapplied.
Closed: The actual count and amount match the control count and amount and there are no
receipts that are either unidentified or unapplied.
N: - Receipts-> Batches
To create a batch of receipts:
1. Navigate to the Receipt Batches or the Receipt Batches Summary window.
2. Choose a Batch Type of Manual Regular.
3. Enter a Batch Source. If you have defined the profile option AR: Receipt Batch Source,
Receivables uses this as the default batch source, but you can change it. The batch
source determines default attributes for receipts within this batch, including receipt
method, receipt class, and whether receipt numbers are assigned automatically.
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Credit Card Receipts (for Credit Card Payments made by customer)
4. Receivables use the receipt method to determine the accounting and remittance bank
accounts for this receipt. The receipt class determines the processing steps for this
receipt.
Note: If a user has access to multiple organizations, Receivables does not default the
receipt batch source in Receipt Batches and Receipt Batches Summary windows.
5. Enter a unique Batch Name. If Automatic Batch Numbering for the batch source you
entered is Yes, Receivables assigns a batch name when you save.
Suggestion: If you use good naming conventions for your batches, you can easily find a
batch or individual receipts within a batch for review.
6. If the currency for this batch is different from your functional currency, enter the
Currency and exchange rate information.
Note: Receivables uses the batch currency as the default for each receipt that you add
to this batch. However, you can add receipts to a batch that are in different
currencies.
7. Enter the Batch, GL, and Deposit Dates for this batch (optional). The default batch
and deposit date is the current date, but you can enter a different date. The default
batch GL date is the last day of the most recent open period. You can change this
date, but it must be in an open or future enterable period. The batch GL date provides
the default GL date for each receipt in this batch.
Receivables use the deposit date as the exchange date when the receipt currency is
different from your functional currency. If you later change the deposit date, then
Receivables also updates the exchange date.
8. Enter the Receipt Class, Receipt Method, and Bank Name for this batch. The batch
source provides default values, but you can change them.
Note: You can only enter receipt methods assigned to this receipt class. You can enter
any bank account assigned to the receipt method if the account is in the same
currency as the receipt, or the Receipt Multi-Currency flag for this remittance bank is
set to Yes.
9. Enter the total number and amount of receipts that you want to add to this batch in
the Control Count and Control Amount fields.
10. To add receipts to this batch, choose Receipts. Receivables save your batch
information.
When you add receipts to this batch or apply, unapply, reverse, or adjust receipts that
are part of this batch, Receivables updates the batch totals.
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VI.Remittances
Save and Close
VI.Remittances
Remit automatic receipts to your bank to initiate the transfer of payments from your
customers. You remit your automatic receipts after approval or confirmation, if confirmation
is required. You can also remit manual receipts to your bank.
The remittance process is very similar to the automatic receipt creation process. You must
Create, Approve, and Format your remittances. You can combine these operations into a
single step or perform each separately.
Receivables let you make cross currency deposits. You can deposit receipts into remittance
bank accounts that are either in the currency of the receipt or that are in your functional
currency, but have the Receipts Multi-Currency field set to Yes. This provides greater
flexibility in determining your remittance bank accounts.
Receivables support two types of remittances:
Standard Remittances: For automatic receipts, you remit receipts to your bank
so the bank can transfer funds from the customer's account to your account on
the receipt maturity date. For manual receipts, the bank credits your account
when the customer's check clears.
Factored Remittances: Remit receipts to your bank so the bank can lend you
money against the receipts either before the maturity date (for automatic
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Creating Remittance Batches
receipts) or before clearing (for manual receipts). After clearing factored
receipts, Receivables creates a short term debt for the borrowed amount to
track your liability in case of customer default.
1. Creating Remittance Batches
Create remittance batches to automatically select receipts to be remitted. You can create
unapproved, approved, or approved and formatted remittance batches.
You can control the total remittance amount by specifying values for the Remittance Total
range. If there are not enough receipts to meet the minimum amount, Receivables will not
create the remittance batch. To ensure that the maximum amount is not exceeded receipts
that meet your search criteria are identified and then ordered by maturity date, followed by
amount. The program picks up receipts starting with the oldest eligible receipt and continues
until it reaches the maximum of the remittance total range. When creating remittance
batches, Receivables only includes receipts with payment methods whose receipt class
requires remittance.
You can either create one remittance batch per remittance bank account or choose a clearing
institution. If you choose a clearing institution, Receivables will select all the receipts
belonging to remittance banks that have this clearing institution assigned to them.
Receivables let you make cross-currency deposits. You can deposit receipts into remittance
bank accounts that are either in the currency of the receipt or are in your functional currency
but have the Multiple Currency Receipts field set to Yes.
If you choose to approve and format your batch when you create it, Receivables initiates an
additional process which creates the formatted batch information.
Depending upon the function security options set up by your system administrator, you may
be able to create, format, and approve remittance batches in one step.
You can delete a remittance batch only if its status is either Started Creation or Completed
Creation. When you delete a remittance batch, all receipts within the batch become available
for selection the next time you create a remittance batch.
To create a remittance batch:
1. Navigate to the Remittances window.
2. Enter the Currency for this batch. The default is your functional currency, but you
can change it.
3. Enter the Batch and GL Date. The default Batch Date is the current date, but you
can change it. The GL date must be in an open accounting period. Receivables use the
GL Date to determine when to post this remittance batch to your general ledger.
4. Choose a Remittance Method. Choose Standard to remit this batch of receipts on
the maturity date. Choose Factoring to borrow money against the receipts before the
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Creating Remittance Batches
maturity date. Receivables only select receipts using the remittance method you
specify here when creating this remittance batch. Receivables select all receipts that
have a remittance method of Standard and Factoring.
5. Enter the Receipt Class, Payment Method, and Remittance Bank information for this
batch, or select from the list of values. You can select both inactive and active
payment methods for your remittance batches. You must select a remittance bank
that has accounts assigned to the payment method you entered.
Note: The default remittance bank is generally the primary remittance bank account
associated with the payment method and currency of your invoice. However, if it finds that a
non-primary account for the same currency is the same as the customer account, Receivables
uses this account. This avoids bank charges and allows funds to transfer more quickly.
6. To create this remittance batch automatically, choose Auto Create. Receivables
save your batch information.
7. Enter selection criteria for creating this remittance batch (optional). For example,
enter the low and high values of the Maturity and Receipt Dates, Receipt and
Document Numbers, and Customer Names or Numbers to select only those receipts for
this batch. Leave a field blank if you do not want to limit the search to transactions
matching that criteria. You can use both active and inactive customers as criteria for
your remittance batches.
Receivables will select all confirmed automatic receipts and manual receipts that
match the criteria you specify and whose receipt class has Require Remittance set to
Yes.
Note: Receivables keeps a running total of the total count and amount of the remittance
batch, so you can ensure that it does not exceed a certain value. This is particularly useful if
you intend to factor a remittance batch and you do not want to exceed the bank's short term
loan limit.
8. To approve and format this remittance batch, check the Approve and Format check
boxes.
9. Choose OK, then choose Yes to acknowledge the message. Receivables assign a
unique Request ID number for your concurrent request. Receivables also assign a batch
name using the next batch number of the Automatic Receipts source. Use the Request
ID to check the status of your remittance process in the View Concurrent Requests
window.
Receivables create the Automatic Receipts and Remittances Execution report when
you submit your request. This report lists the number and amount of remittances in
this batch.
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Creating Remittance Batches
Manually Creating a Remittance Batch
1. Choose Manual Create.
2. Specify which receipts to include in this batch by selecting and deselecting
transactions. You can control which transactions Receivables displays by modifying
Selection Criteria. Enter a range of Payment Methods and Maturity Dates to display
only those receipts, or choose from the following:
Query Batch Only: If you check this check box, Receivables will only display receipts
that are associated with this batch. If this is a new batch, this check box is not
checked by default.
Ignore Override: Check this check box to display all receipts matching the selection
criteria, regardless of the batch remittance bank and the receipt Override Bank
Account flag. Leave this check box unchecked to display all confirmed automatic
receipts and manual receipts that have the same remittance bank as the batch and
whose receipt class has Require Remittance set to Yes.
Select All: Check this check box to automatically mark all transactions that
Receivables displays for inclusion in this remittance batch.
Note: Receivables keeps a running total of the count and amount of the remittance batch, so
you can ensure that it does not exceed a certain value. This is useful if you intend to factor a
remittance batch and do not want to exceed the bank's short term loan limit.
3. Query the receipts.
4. Check the check box next to each receipt to add to this batch. Uncheck the check
box next to transactions you do not want to include in this batch.
5. To create the batch, save your work. To create and approve the batch in one step,
choose Approve. To create, approve, and format the batch in one step, choose
Format. Receivables assign a unique Request ID number for your concurrent request.
Receivables also assign a batch name using the next batch number of the Automatic
Receipts source. Use the Request ID to check the status of your remittance process in
the View Concurrent Requests window.
N: - Receipts-> Remittances
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Creating Remittance Batches
Click on Manual Create or if required to create automatically then click on Auto Create
Enable three check boxes
Create
Approve
Format
Then click on OK button system Automatically runs the Create Remittance, Appove and
Format the Remittances
Approving Remittance Batches
After you create your remittance batch, you can review the receipts in the batch and add,
delete, or update them. Before you submit the batch for approval, you can update the
maturity date, remittance bank, customer bank, and bank charges information for each
individual receipt.
When you submit your request, Receivables assigns a concurrent request number. You can use
this number to check the status of your remittance process in the View Concurrent Requests
window. This concurrent process also produces a report giving you details of the batches that
have been processed. If you choose to approve and format a batch simultaneously,
Receivables initiates an additional process that creates the formatted batch information.
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Creating Remittance Batches
You can only make changes to a remittance batch if its status is Started Creation or Creation
Completed.
Click on Approve
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Creating Remittance Batches
N: - Receipts-> Remittances
Formatting Remittance Batches
You format approved automatic receipt remittance batches on either paper or magnetic
media to send to your remittance banks to initiate the transfer of funds from your customer's
account to your own. You format approved, manually entered remittance batches so the bank
will credit your account when your customer's checks clear.
You can assign different remittance formats to your remittance banks and clearing
institutions. You assign the formats to your remittance banks when you define payment
methods and to your clearing institutions when you define the clearing institution itself.
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Creating Remittance Batches
You can customize the program Receivables uses to format your remittances to suit your
specific needs.
There is no limit to the number of times you can format a remittance batch.
Press ctrl+F11 to Query data
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Integration with General Ledger
Check the State as Remitted
Close the form
VII. Integration with General Ledger
Month End Process
N: - Control-> Requests-> Run
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Closing Accounting Periods
To open or close an accounting period:
1. Navigate to the Open/Close Accounting Periods window.
2. To update the status of an accounting period, place the cursor in the Status field
next to that period, then enter a new status.
3. To Close the selected accounting period after the Latest Close Period, choose
Period. Receivables change the status of the period to 'Close'.
4. Save your work.
