This document discusses key setups required for the Accounts Receivables module in Oracle ERP. It outlines workbenches, roles, and various setup tasks needed like managing transaction types, auto accounting rules, and more. The main setups covered are transaction types, transaction sources for numbering, and auto accounting rules to define default general ledger accounts for transactions.

1. Accounts Receivables
Accounts Receivables is the one of the Sub Ledger application is Oracle ERP. It works at BU level In AR we have two
KFF’s
1. Sales Tax KFF
2. Territory KFF
Objectives
1. To determine customer outstanding open balances/ Sales and Receivables at organization level or update
customer balance quickly
2. T0 generate revenue recognition
3. Invoice aging buckets
4 Work benches in the AR application
1. Customer
2. Invoice
3. Receipt
4. Bills Receivables
Roles to be assign
1. Accounts Receivables Manager
2. Accounts Receivables Specialist
3. Billing Manager
4. Billing specialist
5. Billing Accountant
6. Revenue Analyst
Setups
1. Manage Receivables system options
2. Manage Transaction Types
3. Manage Transaction Source
4. Manage Auto accounting rules
5. Manage Receivables Payment Terms
6. Manage statement cycles
7. Collectors creation
8. Manage Receivables customer Profile Class
9. Reference data set for customer site
10.Manage Business Unit set assignment
11.Customer Creation and assign customer profile class at address and site level
12.Create Remit- to- Addresses
13.Create Memo Lines
14.Create Receivable activities
15.Create Receipt classes & Methods
16.Create Receipt Source
17.Manage Data access set to user
18.Open Receivables period

2. 1. Manage Receivables system options
Task Name : Manage Receivables System Options
Click on Go to task Icon
Click on + icon to create the system options
We are creating System options for this BUSINESS UNIT
Select Our Business Unit from the LOV
We could see Google US BUSINESS UNIT here,because we have assigned the Business unit functions- to our
Business unit “Google US Business Unit”
Business Functions like:
 Billing and Revenue Management
 Customer Payments
 Service Request Management
 Collections Management
 Materials Management
 Customer Contract Management
 Sales
 Revenue Compliance and Accountings

3. Go to Billing and Revenue tab give the mandatory field details
o Tax Account : sales tax = Check for the correct account
o Item validation organization : if we select the Item Master inventory Organization here - you can access
the items when you create the transactions with in the receivables
GO to Cash Processing TAB

4. Charge back need to be created on the entered date
Can change the option at the time ofprocessing
 Click on Save and Close
- Rest of the setups and configurations can be done at the time of processing
2. Manage Transaction Types
Transaction type will control the process of the transaction, how you want to create transactions, the transaction need to be
created against the which class of the transaction, if you want to create debit memo transaction or credit memo transaction and
in this transactions which sign amount will enter that is positive or negative.
To define the process of transaction we have to create the transaction type without this you can’t create the transaction in the
receivables
Invoice
Go to setup and maintenance
Setup: Financials
Functional area: Customer billing

5. TASK: MANAGE TRANSACTION TYPES – go to TASK ICON
Click on + create Icon
Give the details and this transaction will assign to business unit go to reference accounts tab
Click on + icon to assign business unit you can one or multiple business units for this
o Transaction type: set is Reference data set,where ever you see the set just you can remember that is data set
o We have 5 transaction classes:
1. Bills receivables
2. Chargeback
3. Credit memo,
4. Debit memo,
5. Invoice - (In this version R13to we don’t have deposit and guarantee in next releases those may
come)
o Transaction status:1. Open, 2. Closed, 3. Pending, 4. Void
o Generate Bill: If we wanted to print the transaction enable yes
o Open receivable :It will update supplier balances
o Allowfright : If it is enable while entering the transaction fright column will appear
o Post to GL : If it is enable then only this transaction will transfer to GL
o Allowadjustment posting :customer amount (bad debts) can be adjust
o Natural application only: When this option is enabled, you can create the receipt equal to transaction amount
only. We cannot create receipt amount and apply to Transaction type when receipt amount is higher than the
Transaction amount.
o Allowover application : The Receipt amount can be more then the Transaction Amount when applied
o Click on + icon to assign this transaction type to BUSINESS UNIT we can assign Same transaction type to no.
of Business Units
o Reference Accounts : and if you want to give the GL Balance Account Details or else we can set as constant

6. o Click on save and close
Debit memo
In AR Debit memo is with positive value but in AP credit memo is with negative value
Credit Memo

7. Charge Back
3. Manage Transaction Source
It will generate the numbering for the transactions when you creating the transactions by using transaction types
Standard Invoice
Go to setup and maintenance
Setup: Financials
Functional area: Customer billing
Select MANAGE TRANSACTION SOURCE- Go to TASK ICON
Click on + to create source

8. Definition
Transaction Source: It is used for assigning Transaction Numbering Manual / Automatic Transaction Numbering for
the Transaction Types - for the transactions created manually / transactions that are imported from legacy system or
from Interfaces that is within Oracle applications (from Order Management – Sales orders)
We can Assign Transaction Numbering
1. Manual =
2. Automatic: we can assign the automatic numbering for the transactions created manually / transactions
that are imported
o Transaction Source Set :Common Set
o Legal Entity:
o Last transaction number:it is nothing but Invoice generation form which number
o Receipt Handling for credits:If customer pay the extra amount then the amount will transferred to next invoice (On
Account)
Debt Memo
Credit Memo

9. Chargeback
No need to create transaction source for charge back system uses pre-defined source. Even if you create you can’t use.
4. Manage Auto accounting rules
- Auto Accounting Rules determines the default generalledger accounts for transactions that you enter manually or
import using AutoInvoice. You must define AutoAccounting before you can enter transactions in Receivables. When
you enter or update transactions, you can override the default general ledger accounts that AutoAccounting creates. It is
used for Invoices, Credit Memos and Debit Memos. Receivables create default accounts for. You must define
AutoAccounting before you can enter transactions in Receivables. You can control the value that AutoAccounting
assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account.
Revenue
Receivable
Freight
Tax
Unearnedrevenue
Unbilled receivable
Finance charges
AutoInvoice clearing(suspense):The clearingaccountforyourimportedtransactions.Receivablesusesthe
clearingaccountto holdany difference betweenthe specifiedrevenue amountandthe sellingprice timesthe quantityfor
importedinvoice lines.Receivable onlyusesthe clearingaccountif youhave enabledthisfeature forthe invoice batch
source of yourimportedtransactions.
Sourcesfor AutoAccounting
a. Bill To Site
b. Salesreps
c. StandardLines
i.For an InventoryItem
ii.For a Memo Line
d.TransactionTypes
4. Validationof the AccountingFlexfieldsegmentsbuiltbyAutoAccounting
Navigation
Go to setup and maintenance
Setup: Financials
Functional area: Customer billing
TASK: MANAGE AUTOACCOUNTINGRULES
Click on + to create auto accounting rules
Give the BU and Account type as receivables and give the segment account values for automatic purpose
Remaining accounting type like auto invoice creating, unbilled receivables, unbilled revenue these will auto account
depends on the concept

10. Receivables
Revenue