Advanced Collections 20A Student Guide

Oracle Financials Cloud:
Advanced Collections
Fundamemtals for 20A
Student Guide
March 2020
1
Oracle Financials Cloud: Collections

Fundamentals Overview
Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Course Objectives
After completing this course, you should be able to:

• Identify the key concepts of Oracle Financials Cloud: Advanced Collections
• Explain implementation resources
• Navigate the applications and Functional Setup Manager
• Discuss the required setups for Collections
• Describe Notes capabilities and Aging methods
• Discuss the functions available to Collectors
• Explain scoring and strategies
• Explore Collections predefined reports
Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 2

Course Schedule
This course is designed to generally follow this agenda:

• Day One:
– Chapter 1 Oracle Financials Cloud: Advanced Collections Overview
– Chapter 2 Introducing Financials Navigation
– Chapter 3 Using Personalizations and Setup Pages
– Chapter 4 Configuring Collections
– Chapter 5 Designing and Using Scoring and Strategies
• Day Two:
– Chapter 6 Setting Up Customers and Transactions
– Chapter 7 Using Collections
– Chapter 8 Reviewing Reports and Analytics

Lesson Objectives
After completing this lesson, you should be able to:

• Discuss Oracle Financials Cloud applications
• Provide an overview of the Collections application
• Describe the key features of the Collections work area and infotiles

Introduction to Oracle Cloud Applications
Oracle Cloud Applications are:

• An integrated suite of business applications
• Engineered to work together
• Designed to ensure that you can model your enterprise

• An integrated suite of business applications that:
- Connects and automates the entire flow of business processes across both front and back
office operations
- Addresses the needs of a global enterprise
• Engineered to work together, enabling users to streamline the setup process by sharing common
setup data across applications
• Designed to ensure that you can model your enterprise to meet legal and management objectives
The decisions about your implementation of Oracle Cloud Applications are affected by your:
• Industry
• Business unit requirements for autonomy
• Business and accounting policies
• Business functions performed by business units and, optionally, centralized in shared service
centers
• Locations of facilities

Oracle Cloud Strategy
The Oracle Cloud Applications strategy sets the standard for innovation with its complete, standards-based
platform and service-oriented architecture. The Oracle Cloud Applications strategy is built on two main
pillars:
• Complete Solutions: Based on a complete and integrated product strategy
• Complete Choice: Offers customers the option of plugging into other Oracle and non-Oracle
solutions on the Oracle Cloud
The Oracle Cloud Applications strategy adapts quickly to changing business needs while lowering
integration costs and other short and long-term costs.
The Oracle Financials Cloud strategy provides:
• A complete and integrated financial management solution that sets the foundation for good
governance and consistent growth
• Tools that help organizations make better decisions, increase efficiency, reduce costs, and continue
innovation
• A comprehensive solution that supports financial reporting with the right information at the right time

Oracle Cloud Applications: Product Families
• Financial Management
• Human Capital Management
• Supply Chain Management
• Project Portfolio Management
• Procurement
• Customer Relationship Management
• Enterprise Governance, Risk, and Compliance Management
Oracle Cloud Applications provide:

• A complete, modular suite of applications. You have a choice of functionality—whether it’s an
individual module, product family, or the complete suite on the Oracle Cloud.
• A broad scope, with a few exceptions, in terms of global coverage
• Strong support for North America, Western Europe, Asia-Pacific, and Latin America
• A way to work that matches what end users do through role-based dashboards, embedded business
intelligence, and collaboration tools that dramatically increase productivity and improve decision
making
• Flexible implementation of applications in a modular fashion using delivery strategies that meet the
customer’s enterprise information technology strategy on the Oracle Cloud
Oracle Financials helps companies meet their obligations in key areas such as:
• Compliance
• Financial Control
• Regulatory Reporting
• Cost Containment
• Risk Management

Oracle Financials Cloud: Overview
Oracle Financials Cloud is a complete and integrated financial management

solution with:
• Automated financial processing
• Effective management control
• Real-time visibility into financial results
Oracle Financials Cloud with Oracle Cloud Applications provides:

• Open, standards-based enterprise applications that function in the cloud through a web browser
• A broad suite of capabilities, including:
- General Ledger
- Accounts Payable
- Accounts Receivable
- Fixed Assets
- Expenses
- Cash Management
- Centralized accounting, tax, payment, and intercompany engines
• Improved performance, lower IT costs, and better analysis and reporting results

Financials Cloud: Key Features
• Multidimensional reporting platform

• Multiple reporting requirements
• Role-based dashboards
• Embedded transactional intelligence Financials
• Imaging integration
• Spreadsheet integration
• Innovative, embedded, multidimensional reporting platform

• Simultaneous accounting of multiple reporting requirements
• Role-based dashboards that push issues and work to users
• Embedded transactional intelligence that guides users’ decisions
• Imaging integration for supplier invoices
• Extensive spreadsheet integration across finance functions

Advanced Collections: Overview
Collections provides a streamlined and user-friendly user interface for collections professionals to easily
identify delinquent customers and manage collections activities for which they are responsible. This
simplifies the collector's job and promotes restoring the customer back into good standing.
Collectors can:
• Navigate easily from the Collections work area to the Customer work area
• Focus on collecting for specific delinquent customers
• Treat each customer uniquely
• Improve customer relations to achieve higher collectability and a lower Days Sales Outstanding
(DSO)
Real-time tools facilitate the tasks of:
• Managing assigned work
• Sending dunning correspondence
• Taking a payment
• Processing a dispute
• Making an adjustment
Managers can:
• Schedule background processes to refresh the Collections work area data, automatically
• Identify delinquent bills
• Quickly oversee Collectors’ progress

Collections Work Area
Use the Collections work area to:

• Gain comprehensive control of your assigned delinquent customers and collections
tasks
• Prioritize your work with at-a-glance reviews of your current collections data,
conveniently summarized into four infotiles
• Take immediate action on pending items in the detail tables
• Drill down to individual pages for more complex activities
Click
Collections
Navigate to Collections > Collections.

In the Collections work area, the Collector can:
• View and process the assigned work
• Search on a customer
• Display the open tasks and delinquent customer information for the collector assigned to a given
customer
The work statuses available on the Collections Dashboard include:
• Open: Indicates the delinquent customer is available for collections and can contact the identified
delinquent customer
• Follow-up: Indicates the collector wants to follow up with the customer at a future date
• Ignore: Indicates the collector wants to ignore a customer until a future date
• Hold: Indicates that the collector does not want the Update Collections Dashboard Summary
process to change the work status

Collections Work Area Infotiles
Use the four infotiles on the Collections work area to:

• Review summary information on each infotile in the corresponding detail table
Infotiles
Detail
Table
Navigate to Collections.
The collector can review their customers and assigned work in the following four infotiles:
• Delinquent Customers
• Promises
• Strategy Tasks
• Activities

Summary
In this lesson, you should have learned how to:

• Discuss Oracle Financials Cloud applications
• Provide an overview of the Collections application
• Describe the key features of the Collections work area and infotiles

2
Introducing Financials Navigation

Objectives

• Navigate Oracle Applications
• Describe the News Feed home page layout
• Explore dashboards, panels, and infolets
• Examine the Collections work area and infotiles

Getting Started in Oracle Cloud Applications: Newsfeed Home Page
Administrators can set the default home page layout to any of the following:
• Panel
• Banner
• Newsfeed
Navigate to: Select the SupremoFitness theme > click ERP and SCM Cloud Login > sign in with your
assigned user name and password.
• Designed from the ground up, using the latest technology advances and incorporating best practices
gathered from thousands of customers.
• Completely open, service-enabled enterprise applications.
• Designed with features for the best-in-class user-interface designs and workflows that optimize
usability and deliver business value.
All functionality revolves around an Oracle Cloud Applications Home Page, which you can personalize:
• Get a quick glance at your work-related conversations and announcements.
• Use the Application link icons to navigate to pages and dashboards.
• Access the Navigator to access additional applications.
The Newsfeed home page layout with the SupremoFItness theme is a modern theme with a unique icon
style. The global header icons render in an Outline style:
• Show Help and Access Accessibility Settings are in the Settings and Actions menu.
• Set Help Options to enable the help icons that appear by default on the pages.
• Leads the industry trends by offering a content rich, yet simple to use interface that presents
enterprise information to help you make informed decisions and take quick actions. Easy navigation
that is consistent across various devices such as desktop, tablet, and smartphone.
When set, this home page contains:
• An Applications section.
• A series of updates with important information that you can view at a glance, such as Things to
Finish, News and Announcements, and Analytics.
• A list of quick actions, if available to quickly perform some key tasks.

Sections: Things to Finish and News and Announcements
• Things to Finish Section shows:

– My Work Items
– My Notifications
• Use Show More and Show Less to
toggle between these views.
• News and Announcements Section

shows:
– Employee News
– Active Announcements
Things to Finish section:

• Provides you with a count of any pending notifications that are assigned to you and may require an
action from you.
• A new count link named Created by Me lists the approval requests that you have created. Click the
link to navigate to a full list of notifications pertaining to that count.
• Items listed in the Things to Finish section are same as the notifications listed in the global header.
- The list displays the latest notifications first and allows you to scroll horizontally to view more
notifications. You can clear a notification from the list by clicking the Close icon.
- When you clear a notification, the count does not change since no action is taken on the
notification.
News and Announcements
• The News and Announcements section displays all active announcements available to you.
- Click an announcement image to view more details.
- Use the Previous and Next icons to navigate through various announcements.
• When no active announcements are available, this section does not display any content.
• Administrators must create an announcement and add an image to display it in the News and
Announcements section of the home page. If no image is added, only the subject of the
announcement is displayed on the home page.

Analytics Section
• The Analytics section displays:

– A set of infolets.
– Other configurable pages as tabs.
• Use the Refresh link to load or refresh the content in this section when the refresh data
message appears.
In Financials there are currently four choices of Analytics displays:

• Cash Management Infolets
• General Accounting Infolets
• User-Defined Infolets
• Order to Cash Infolets
Use the Infolet list icon at the top of the section to select your infolets.

SupremoFitness Navigator
1. The Navigator reflects the

contemporary look of the
SurpemoFitness theme home page
layout.
2. Some global header features are not
available, such as:
a. The Watchlist
b. Favorites
c. Recent Items
The Navigator has:

• Page entries for work areas such as Sandboxes, Appearance, Structure, Business Objects and
Application Composer move from the Tools group to a group called Configuration.
• Page entries for standalone work areas, such as Getting Started, Social, My Dashboard,
Marketplace, and Setup and Maintenance, are part of a Others group.
• A contemporary look of the Newsfeed home page layout with the SupremoFItness theme. Its content
is displayed to provide a top level group or cluster view for easy navigation or an expanded list view.
Tips And Considerations
Administrators can define the display settings of the home page sections using the Home Page Layout page
of the Appearance work area. You can use the Visible field for a section to show or hide it on the home
page, and the Move Up and Move Down icons to adjust the relative positions of the sections on the home
page.
For groups on the Navigator or Springboard, administrators can use the Navigate: Configuration > Structure
to change the group’s settings.
To launch the applications on your mobile device, ensure that you have disabled the pop-up blocker for your
device

Predefined Themes for Newsfeed Home Page Layout
• Many predefined themes exist for you to choose from and apply to your application.
• The icon type called Outline is available.
SupremoFitness
Theme
To support the default home page layout, Newsfeed, a theme named SupremoFitness is part of the
predefined themes available for selection on the Themes page of the Appearance work area by
administrators using a sandbox. A wide range of many predefined themes exist for you to choose from and
apply to your application.
An icon type called Outline is available, which you can set for your existing themes using the Themes page
of the Appearance work area using a sandbox by the administrator.
Note: In the OU database you will be using for this course is a company called Supremo Fitness that has
been acquired by Vison Corporation and a theme created to support its business functions and users.

User Interface
Global Header
Panel Tabs
Panel
Section
Navigate to: Others > Financial Reporting Center.

Each page can be divided into components. The slide shows an example of the main components in the
Oracle Cloud User Interface.
• Global Area: Contains links to help you navigate user interfaces, personalized links and tools, and
the name of the user who is signed in.
• Section: Contains the transaction or form that requires creation, editing, or review.
• Panel: Contains links to tasks, process, and reports and enables search on some panels.
• Panel Tabs: Opens several different panels including the Tasks, Search, and Report panels.

General Accounting Dashboard
Navigate to: General Accounting > General Accounting Dashboard.

The General Accounting Dashboard is the main dashboard for Oracle General Ledger functionality including
Journals and Period Close.
The General Accounting Dashboard contains the following sections:
• Account Monitor
• Intercompany Transactions
• Journals
• Closing Status
• Process Monitor
The General Accounting Dashboard contains the following functionality with direct links:
• Journals
• Period Close
• Inquiry and Reporting
• Planning and Budgeting

Work Areas
Navigate to: General Accounting > Period Close.

A work area is a grouping of similar tasks. The Period Close work area includes tasks for opening and
closing accounting periods for Oracle General Ledger and subledgers.

Panel
Click on the Tasks icons to open the panel. Use the panel tabs to:
• Access features without leaving the current application.
• Perform searches.
• Run reports. Tasks Panel Tab
Tasks
Panel
Navigate to: Receivables > Billing.

The panel, an anchored component on the right side of a page, contains one or more vertical tabs to
perform actions to enable you to search, run reports, and view integrated conversations in the context of the
current task.
• Open the panel by clicking one of the panel tabs. The panel is collapsed by default.
• Use the slide-out panel to access features directly from any screen without leaving the current
application or navigating through different roles or hierarchies.
• View the tasks available for your user role.

Search Panel: Overview
Use the Search panel to perform local searches on the work area you are currently using.
Search Panel
Navigate to: Receivables > Billing

Use the Search panel to perform a local search based on the work area you are currently using. Click the
Search panel tab to expand the Search panel and perform a search.
For example, in the Billing work area, you can quickly search for an invoice by Transaction number,
Transaction date and Bill to Customer Account number using the Search panel.

Practice 2-1 Overview: Running Session Warmers
This practice covers the following topics:

• Signing in to Oracle Cloud Applications
• Running session warmer scripts

Practice 2-2 Overview: Getting Started in Oracle Cloud Applications

• Exploring the following user interfaces:
– Global Area, including:
— Accessibility
— Help
— Search
— Personalize
— Setting and Actions Menu
— Navigator and Welcome Springboard
— General Accounting Infolets
– Work Area and Panels
– Search
• Signing out of Oracle Cloud Applications

Infolets in the SupremoFitness Theme
• Use the Analytics section of the Newsfeed Springboard.

• Use the scroll bar to scroll to the desired infolets.
• Use the Infolets Repository Icon to select or deselect infolets.
Navigate to: Newsfeed Home page Analytics section> Order to Cash Infolets.
The infolet repository displays the available set of infolets based on your access privileges.
• Click the Infolet Repository icon in the upper right hand corner of the page to reorder the Order to
Cash Infolets.
• Click the Actions menu in the upper right hand corner to hide the infolet.
• Use Order to Cash infolets to aggregate key information for a specific area, for example Open
Shipment lines, Shipment exceptions etc.,

Infolet Repository
The Infolet Repository displays the infolets available for each infolet dashboard.
Infolets Repository Icon
Navigate to: Newsfeed Home page Analytics section> General Accounting Infolets dot.
The infolet repository displays the available set of infolets based on your access privileges.
• Click the Infolet Repository icon in the upper right hand corner of the page, and then select or
deselect the infolets you want to use and drag and drop infolets in the order that you want them
displayed.
• Click the Actions menu in the upper right hand corner to view a list of actions that can be performed
for that infolet. The list varies by infolet. For example, actions include:
- View the last updated date on which the process ran.
- Run extracts.
- Refresh the view.
- Edit title and enable views.
- Hide the infolet.
• Use infolets to aggregate key information for a specific area, for example, your sales pipeline,
employee turnover, or other business transactions.


tasks
Click
Collections
Navigate to: Collections > Collections.

In the Collections work area, the collector can:
• View and process the assigned work
• Search on a customer
• Display the open tasks and delinquent customer information for the collector assigned to a given
customer
The work statuses available in the work area include:
• Open: Indicates the delinquent customer is available for collections and can contact the identified
delinquent customer
• Follow-up: Indicates the collector wants to follow up with the customer at a future date
• Ignore: Indicates the collector wants to ignore a customer until a future date
• Hold: Indicates that the collector does not want the Update Collections Summary Data process to
change the work status

Use the four infotiles on the Collections work area to:

Infotiles
Detail
Table
Navigate to: Collections > Collections.

The collector can review their customers and assigned work in the following four infotiles:
• Promises
• Strategy Tasks
• Activities

Delinquent Customer Infotile
Use the Delinquent infotile to review:

• Delinquent customers assigned to you
• By customer the total amount due, work status, work status date, number of
delinquencies, days late, last paid date, contact, strategy, and customer score
Navigate to: Collections > Collections > Delinquent.

The Delinquent Customers table lists all the delinquent customers assigned to the collector or collector
group.
• The level displayed for each customer is based on the customer's collections level which can be
uniquely assigned when setting up the customer. For example, one customer could be set at the
customer level and another on the site level.
• A default customer setting is assigned on the Manage Collections Preferences page.
A collector can select delinquent customer information hyperlinks based on:
• Customer name
• Work status
• Aging bucket

Delinquent Customer Infotile and Delinquent Customer Detail
Use the delinquent customer detail and:

• Select a customer name
• Drill into details
• Click the icon
• Select an account or site
• Review the information
Navigate to: Collections > Delinquent Customer infotile > Customer Name > Customer Hierarchy.
After drilling into a delinquent customer’s detail:
• Click the Transactions tab.
• Click the Customer Hierarchy icon to the right of the selected name to display the customer’s
hierarchy.
• Select an account or site in the Customer Hierarchy window.
• The information displayed on the page is refreshed focusing on the selected account or site.
• You can now review the information about the particular account or site.

Promises Infotile
The Promises detail table displays information about delinquent customers, account
transactions, promised amount, promised date, and status.
Use the Promises infotile to review detailed information on:
• All collectible promises
• A subset of promises that have been broken
Navigate to: Collections > Collections > Promises infotile.

The Promises table details the information on both broken and open promises. The table:
• Displays individual promises made by customers assigned to you
• Shows the status, promise date, and promised amount from the table
The Promise to Pay section has the following tables:
• Selected Transactions: Identifies transactions for promise to pay
• Transaction Details: Provides the status, state, amount promised, and promise date
• Mass Promise: Displays the multiple transactions the customer has committed to pay in full
Managing delinquent customer accounts include the following:
• Canceling a promise made in error if it is prior to the promise due date.
• The ability to track the expected payment automatically.
• Collecting the full amount. You cannot enter partial payments for mass promise to pay transactions.
The promise information is updated by scheduling the Promise Reconciliation concurrent program daily.
- Navigate to Tools > Schedule Processes > Schedule New Process > Promise Reconciliation.
- The process verifies reconciled payments against open promises and updates the promise
state and status in the Collector's work area.
- Schedule after cash has been applied to open transactions.

Promise to Pay Status and State
The status indicates the specific condition of the promise or promises. The following table
provides the possible statuses:
Status Result
Broken Promise date was not met.
Cancelled Payment entered in error or no longer valid.
Closed Payment was made on or before the promise date.
Collectible Open promise that has been created or not yet reached the
commitment date.
Fulfilled Promise date and amount were met.
Promise to Pay State

• Promise state: Open commitment detailing the amount to be paid and date promised
• Broken: Commitment date was not met to make payment

Strategy Tasks Infotile
In the Strategy Tasks detail table you can:

• Review detailed information about all manual strategy tasks assigned to you
• Complete, cancel, and reassign strategy tasks
Navigate to: Collections > Strategy Tasks infotile.

The Strategy Tasks table enables you to review the number of open manual and assigned tasks.
You can also view the list of the individual items and due dates.

Activities Infotile
In the Activities detail table, you can review detailed information on:
• Overdue activities
• Open activities
Navigate to: Collections > Activities infotile

The Activities table lists all the activities assigned to the collector which need immediate attention.
• Tasks displayed are only for the collector viewing the page.
• The collector can edit existing activities and create new ones.
Note: This table is independent of the Delinquent Customers table.

Use Metrics
The Collections Manager Dashboard enables insight into metrics, known as Key
Performance Indicators.
Use these two indicators to:
• Understand the financial health of your customers and the effectiveness of your
collections organization
• Score customers and assess the ability to collect their delinquent transactions
Metrics
Navigate to: Collections > Collections > Metrics to access the metrics.
Navigate to Tools > Schedule Process > Schedule New Process to run the Initialize and Load Collections
Metrics.
The Initialize and Load Metrics process initially loads transactions and receipts for the calculation and
creation of the metrics.
Collections metrics uses industry standard formulas to calculate these metrics.
• Use metrics to score customers and assess the ability to collect their delinquent transactions.
• As new transactions are added and receipts are applied, run the Incremental Metrics Load program.
This routine maintenance program updates all the data and dimensions.
Multidimensional analysis:
• Uses the Manager Dashboard and Smart View, an Excel-based ad hoc reporting tool
• Allows you to view statistics using different dimensions on the same data, and drill up, down, and
through on any hierarchy level
The Key Performance Indicators can be aggregated across a number of dimensions and hierarchies such
as:
• Business Unit
• Customer, Account, and Site
• Collector and Salesperson
• Profile Class and Aging Bucket
• Country, State, Province, City, or ZIP Code

Demonstration 2-3 Overview: Exploring Infolets and Infotiles
This demonstration covers the following topics:

• Exploring infolets
• Examining the Collections work area
• Reviewing Collections infotiles

Summary

• Navigate Oracle Applications
• Describe the News Feed home page layout
• Explore dashboards, panels, and infolets
• Examine the Collections work area and infotiles

3
Using Personalizations and Setup Pages

Objectives

• Describe personalizations
• Explain the benefits and key concepts of Financials setup pages
• Use the opt in feature to enable offerings, functional areas, and features after upgrades
• Describe the setup pages for ongoing maintenance
• Examine Collections resources and preferences

Personalizing the Newsfeed Home Page
With the Personalize Springboard feature you can:

• Remove Application Icon Links
• Add Application Icon Links
• Remove Application Groupings
Navigate to: From any Application Grouping name, click on the Plus sign to use the Personalize
Springboard feature.

Adding and Removing Applications from the Springboard
Navigate to: Newsfeed Home Page Springboard > Click on the Plus sign.
The Personalize Springboard feature enable you to:
• Add an Application: For an application that are not visible on the springboard, select the checkbox
next to the application. For example, check the box next to File Import and Export application under
the Tools grouping name to activate that application on your springboard. Note: You must have the
privilege for that application otherwise it is not available to be added to the grouping.
• Remove an Application: For applications that are no longer needed but might be needed in the
future, deselect the checkbox.
• Remove the Application Grouping Name: To remove the entire Application Grouping name, deselect
all the checkboxes under that grouping. For example, if you are done with your implementation and
want to remove My Enterprise from you springboard; deselect Offerings, Enterprise, and New
Features.
Note: Removing an application or an application grouping name does not remove it from the Navigator.
Therefore, if you need to get to an application that you have removed from your springboard you can still get
to through the Navigator.

Setting User Preferences
Navigate to: Your username > Set Preferences.

User preferences enable you to set many defaults that affect your user experience. The preferences include
the following tasks:
• Regional: You can set your territory, date format, time format, number format, currency, and time
zone.
• Language: You can set which language you want for your:
- Default Language: The setting that displays the language used at initial sign in.
- Current Session Language: This setting overrides the default language for the current
session only. For example, your default language is set to Spanish and you need to process
several reports in English. Rather than having to set the report language process option for
each report to English, you can set your current session language to English to have all of
the reports’ output be in English.
- Display Name Language: The setting that displays all person names including your own
name in the global area, in a specific language. For example, if your display name language
is Spanish and your name is Alexander, then you see your name as Alejandro.
• Accessibility: You can set the accessibility as the default mode or you can choose to use a screen
reader. You can also set the color contrast to standard or high and you can set the font size to large
or medium.
• Password: You can change your password according to you company’s policy.

• Proxies: You can designate another user as a proxy to sign in to the application and perform tasks
on your behalf. Proxies are helpful when you can't perform the tasks in person during a specific
period.
• Watchlist: You can set which categories or items you want to include in your watchlist. You can
access your watchlist from the Watchlist icon on the home springboard. For example, you might
want to track your expense reports.
• Oracle WebCenter Portal: You can set your general preferences, password, my accounts,
messaging, APPLCORE_PORTRAIT, presence, subscriptions, search, and email. The Oracle
WebCenter Portal is a web platform that enables organizations to quickly and easily create intranets,
extranets, composite applications, and self-service portals, providing users a more secure and
efficient way of consuming information and interacting with applications, processes, and other users.

Structure Work Area
• Enables administrators to configure an infolet page as the default landing page for users.
• Set the Default Landing Page field for an infolet to Yes, No, or Expression Language
(EL) expression.
Navigate to: Configuration > Structure.

The Structure work area enables administrators configure an infolet page as the default landing page for
users.
On the Home Configuration tab of the Structure work area, an administrator can set the Default Landing
Page field for an infolet to Yes, No, or EL expression which allows page authors to use simple expressions
to dynamically access data from JavaBeans components.
Steps to Enable: An administrator can set an infolet page as the default landing page using the Home
Configuration tab of the Structure work area.
Tips And Considerations: The option to set an infolet page as the default landing page is available on the
Home Configuration page for only specific infolet pages.

Saved Searches
Using saved searches, you can:

• Create any number of saved searches.
• Make a default search.
• Have it run automatically.
Navigate to: Receivables > Billing > Tasks panel tab > Manage Transactions
A saved search captures search criteria and other settings so that you can easily run the same search again
later. These saved searches in the local area aren't the same as those for the global search.
You can change the settings, rename, or delete any of your saved searches.

Configuring Table Columns
You can perform the following actions on

columns directly from the table:
• Sort data
• Reorder
• Adjust the widths
You can perform the following actions on
columns from the Manage Columns
window:
• Hide or show
• Reorder
Changes to columns become a user
personalization and persist between
sessions.
Navigate to: Journals > Tasks panel > Manage Journals

From the tables, you can:
• Sort either ascending or descending on a specific column.
• Reorder the columns by dragging them to the desired location.
• Adjust the widths by dragging the side of the column.
From the Manage Columns window, you can
• Hide or show any of the available columns.
• Reorder any of the visible columns.

Practice 3-1 Overview: Using Personalizations

• Setting user preferences
• Creating a saved search
• Configuring columns

What Is Functional Setup Manager?
Plan Opt In
Functional Setup Manager provides an
integrated, end-to-end applications
Maintain setup and administration process.
Set Up
Deploy
The Oracle Cloud Functional Setup Manager facilities initial setup and ongoing maintenance. The
Functional Setup Manager guides you through the ongoing steps including:
• Planning: Identify the offerings you want to implement. Evaluate what functional areas and features
to opt into and prepare accordingly for their setup requirements.
• Opting In: Select the offerings, functional areas, and features that best fit your business
requirements by enabling them.
• Setting Up: Use setup tasks to enter setup data necessary for your enabled offerings and functional
areas.
• Deploying: Move your verified setup data from the test environment to a production environment
and deploy to all users to start transaction processing.
• Maintaining: Update setup data or opt into configuration of the functional areas and features as
necessary. Setup Manager.
• The Application Implementation Consultant job role has full access to perform all Functional Setup
Manager-related activities. Other users must include the Functional Setup User role in addition to
other roles or privileges needed to perform specific setup activities.
• For more detailed information about security requirements for Functional Setup Manager, refer to the
Security Reference for Oracle Applications Cloud Common Features guide in the All Books for
Oracle Cloud page of the Oracle Help Center (docs.oracle.com).

Functional Setup Manager Benefits
1
Centralized Setup Guided Process 2
There is a single interface for all Task lists guide you through
Oracle Cloud Applications. the recommended setup.
Easier Management of
Configurable
3 Setup Data
Opt into functional areas and 4
features to fit business needs. No guessing with built-in
prerequisites and dependencies.
5
Setup Data Migration Reporting 6
Export and import setup data It allows comprehensive reporting
between environments. for setup data validation.
The screenshot of the Offerings shows the wide range of offerings available with Oracle Cloud. All of these
offerings use the Functional Setup Manager, which provides you with many benefits including:
• Centralized Setup: A single interface for all your Oracle Cloud applications.
• Guided Process: The offering task lists guide you through the recommended setup tasks.
• Configurable: An opt in approach to functional areas and features that can be configured to your
business needs.
• Easier Management of Setup Data: The built-in prerequisites and dependencies eliminate
uncertainty and eases the management of setup data.
• Setup Data Migration: The export and import process move setup data smoothly between
environments.
• Reporting: The comprehensive validation reporting exists to help you confirm your setup data is
valid.
Functional Setup Manager also offers the following:
• Standardized application configuration and setup experience
• Flexible processes for managing setup:
- Setup by functional areas for an adopt-as-you-go approach
- Implementation projects to manage exception setup situations
- Upload functionally to enter setup data in bulk

Key Concepts
Offerings Functional Areas Features
Navigate to: My Enterprise > Offerings.

• Offerings: Functional groupings within Oracle Cloud Applications representing enterprise business
processes that are subscribed and administered as a unit.
• Functional Areas: Functional modules such as business sub-processes within an offering.
• Features: Optional or alternative business methods and practices applicable to a functional area.
Depending on the setup requirements for a feature, you can:
- Select if the feature either applies or it does not.
- Select one choice to apply to the feature out of multiple choices.
- Select many choices to apply to the feature out the multi-choices available.

Reviewing Offerings and Preparing to Opt In
• Navigate to My Enterprise > Offerings.

• Select the offering you want to
implement.
• View a detailed description.
• Check the status to determine if the
offering is enabled.
• Use the Opt In Features button to
manage opt in configuration.
• Optionally, expand the Related
Documents to learn about
implementation requirements.
Before using any Oracle Cloud Applications, you must opt into relevant offerings and their features by
enabling them.
Two Financials related offerings are available. Select one or both of them according to your subscription.
• Financials offering: Includes Oracle General Ledger and Oracle Subledger Accounting application
features, as well as at least one of the subledger financial applications
• Oracle Accounting Hub offering: Includes Oracle General Ledger and Oracle Subledger
Accounting application features integrated with an existing enterprise resource planning (ERP)
system or third-party application to enhance the current reporting and analysis
Select an offering by clicking on the icon to see a detailed description. The current status of the offering is
also shown. In the beginning, the offering status shows Not enabled.
Use the Opt In Features button to opt into the features that are applicable to your business requirements.
• If you need to change the opt in configuration of the offering, use the same button.
• Before you proceed to opt in, expand the Related Documents section to review details about the
implementation requirements of the offering to help you plan your implementation.

Opting into Offerings, Functional Areas, and Features
Offering, functional areas, and sub

functional areas are shown in a hierarchy.
1. Check Enable to opt in:
a. A child cannot be enabled unless
the parent is enabled.
b. A non optional functional area is
enabled automatically when the
parent is enabled.
2. Use Edit icon to open Edit Features to
opt into related features.
Navigate to: My Enterprise > Offering > select your offering > Opt In button.
In the Opt In page:
• The first row shows the Offering and the subsequent rows show the offering’s functional areas. If sub
functional areas exist they are shown underneath their parents.
• To opt in, select the Enable checkboxes of the offering and the functional areas.
- If a child is not optional, then the child is enabled and displayed as read-only when the parent
is enabled. For example, when the Supplier Invoice Processing parent is opted into, the
Payables child functional area is enabled. Child functional areas that are not optional, are
enabled or disabled automatically when their parent is enabled or disabled.
- A child cannot be enabled unless its parent is enabled. For example, to enable Collections,
Customer Invoice Processing must be enabled first.
• Click the Edit icon in the Features column to enable and opt into related features.

Reviewing What’s New and Opting into New Features After Upgrade
After an upgrade of the Oracle Cloud

applications, go to the New Features page.
• Review newly introduced features for
your enabled offerings.
• Enable the Show Help icon to display
the Learn More column.
• Use the Opt In button to go to the Edit
Features pages to enable the new
features.
Navigate to: My Enterprise > New Features.

Consult additional help topics from the Learn More icon to better understand the new features.

Maintaining Setup Data Using Functional Areas
Using the functional areas setup method is

the best practice for maintaining your Oracle
Cloud applications.
To do so:
• Navigate to the Setup and Maintenance
page.
• Select the desired functional area.
• Check the Shared link to see other
offerings sharing this functional area.
Note: All enabled functional areas based on

the opt-in configuration of the offering are
displayed.
The offerings you enable determine:

• The order of the setup sequence that helps you avoid data dependency errors
• The content in the Shared link which indicates if more than one enabled offering contains that
functional area
• If the setup tasks are mandatory. An asterisk indicates if the functional area has mandatory setup
tasks.

Related Setup Tasks
Navigate to: Others > Setup and Maintenance.

When a functional area is selected, the related setup tasks are listed in the Task section.
• If the functional area has mandatory setup tasks then those are shown by default.
• Use the Show drop down list to select All Tasks to display optional tasks.
• If the functional area has NO mandatory tasks, then ALL setup tasks are displayed.
Display order of the tasks reflects the sequence in which they should be performed to address data
dependencies.
To change setup data, drill down on the task name to open the appropriate page.

Tasks with Scope
Navigate to: Others > Setup and Maintenance.

Some tasks require a context called Scope before their setup data can be entered. If setup data is
segmented by a specific context or scope, you can perform the setup task iteratively, such as assigning
different ledger options to different primary ledgers. For example: Ledger Options for the Vision Brazil
primary ledger can be different from ledger options assigned to the Vision Canada primary ledger.
Use the link in the Scope column to:
• Select a scope value if not already selected.
• Changed the currently selected scope value.

Searching for a Task
If you know the name of the task, you can easily perform a search.
Navigate to: Others > Setup and Maintenance > Task panel > Search
You can use the search feature in Functional Setup Manager.
• Search for a task using the full or partial name of the task.
• Use of a partial name does not require wildcards and is not case sensitive.
The search feature can also be used for ongoing maintenance.
Note: Some of the tasks and features are not accessible using the search feature if scope is required or if
the offering has not been enabled.

Practice 3-2 Overview: Exploring Functional Setup Manager

• Navigating to Functional Setup Manager
• Selecting the Financials offering
• Exploring Cash Management setup tasks

Learn More: Video Tutorials and User Guides
Video Tutorials • Importing Setup Data from Configuration

• Configure Offerings Packages
• Reviewing and Opting Into New • Export/Import Setup Data Using CSV
Features
• Setting Up Offerings Functional Setup Manager Guide
• Set up Offerings with Scope • Using Functional Setup Manager
• Exporting Offering Setup
• Importing Offering Setup Product-Specific Guides
• Exporting Setup Data to Configuration • Getting Started Guides
Packages • Implementation Guides
Link to the Oracle Help Center Financials page:

https://docs.oracle.com/en/cloud/saas/financials/20a/index.html to learn more about Functional Setup
Manager by using:
• The videos listed in the slide, which are found under the Videos link on the Oracle Help Center
Financials page
• The Functional Setup Manager guide and other product specific guides

Managing Collections Preferences: Overview
Oracle Collections provides a user interface to guide you through the collection preferences.
The three setup sections are:
• Global Preferences
• Preferences
• Correspondence
Navigate to: Others > Setup and Maintenance > Setup: Financials > Collections > Manage Collections
Preferences.
You answer questions and make decisions about how the applications functions, such as date rangers and
defaults.
Global preferences:
• Affect the Collections work area, such as display of closed or open transactions and setting date
range parameters
Preferences:
• Can be set uniquely for a specific Reference Data Set
• Impact the default settings, such as preference set and default method to send notifications
Correspondence settings:
• Impact dispute, payment, and promise notices

Global Preferences
Selections made in the Global Preference section impact what the collectors see from the
Collections Work Area. Global Preferences define the following:
• Default transaction class that appears
• Display of open and closed transactions
• Number of days for prior and future transactions to be displayed
• Number of days to reschedule work in the Collections work area
• Default aging method
• Delimiter used to separate data and the number of characters required to do a search
• Sender or return email address for dunning correspondence
• Maximum grace days before a promise is broken
• Maximum number of days for a promise due date
• Enable bankruptcy
Preferences.
Global Preferences are not business unit specific and they impact the entire Collections system. The Global
Preferences are:
• Transactions Tab: Default Transaction Class: Select All, Bills Receivables, Charge Back, Credit
Memo, Debit Memo, Invoice, or Receipt.
• Transactions Tab: Automatically Display Closed Transaction: Yes or No. Select Yes to view
closed transactions as part of the customers history.
• Transactions Tab: Automatically Display Current Transactions: Yes or No. Selected Yes to view
current or open transactions the customer has pending.
• Transactions Tab from Date Range: Number of Days Prior to the Current Date: Enter the number
of days before the current date the transaction date range should start. 1 to 9999 is the range that
can be used.
• Transactions Tab to Date Range: Enter the number of days after the current date the transaction
date range should end. 0 to 9999 is the range that can be used.
• Work Status Update: Maximum Number of Days Work Can Be Rescheduled: Enter the maximum
number of days work can be rescheduled on the Collections work area. 0 to 9999 is the range that
can be used.
• Default Aging Method: Use a predefined Aging Method or define your owned based on several
aging buckets.
• Delimiter Used to Separate Customer, Account, and Site: The symbols include the pipe, greater
than, dash, underscore, and colon.

• Minimum Number of Characters Required to Perform a Search: Three characters is
the Oracle recommended number for a search. 1-9999 is the range that can be used
• Send or Return Email for Dunning Correspondence: The default return Email for
customers to respond.
• Number of Grace Days Before a Promise is Broken: 0 to 9999 is the range that can be
used.
• Maximum Number of Days to Make a Promise: 0 to 9999 is the range that can be used.
The maximum number of days out that a customer can promise to pay.
• Common Currency for Metric Calculations: Select the most prevalent currency within
your organization.
• Past Date to Be Used for Metric Calculations: Select a date as far back as you need to
view history.
• Enable Bankruptcy: Select Yes or No. This setting activates the Bankruptcy tab under the
Profile tab.

Preferences
Selections made in the Preference section impact the defaults the collector encounters
when going through the collection process. Preferences define the following
• Preference set
• Collections business level
• Summarize or age credits
• Default conversion rate
• Send method of dunning
• Default contact for unknown dunning recipients
Preferences.

Correspondence
The settings include:

• Collections Preference Set
• Send Dispute Notice
• Dispute Template
• Send Payment Notice
• Send Payment Template
• Send Promise Notice
• Promise Template
Preferences.
• Collections Preference Set: Select the Common Set or a user defined Reference Data Set. This
setting enables you to have some business unit specific settings.
• Send Dispute Notice: Select yes to notify the customer of disputes made to their account.
• Dispute Template: A predefined template named Dispute Confirmation Letter is available.
• Send Payment Notice: Select yes to notify the customer of payments applied to their account.
• Send Payment Template: A predefined template named Payment Confirmation Letter is available.
• Send Promise Notice: Select yes to notify the customer of promises made to their account.
• Promise Template: A predefined template named Promise Confirmation Letter is available.

Demonstration 3-3 Overview: Verifying Collections Preferences and
Correspondence
• Verifying Collections Preference Set preference settings
• Verifying Collections Preference Set correspondence settings

Summary

• Describe personalizations
• Explain the benefits and key concepts of Financials setup pages
• Use the opt in feature to enable offerings, functional areas, and features after upgrades
• Describe the setup pages for ongoing maintenance
• Examine Collections resources and preferences

4
Configuring Collections

Objectives

• Discuss shared setup with other financial applications
• Describe the setups that are required in Oracle Advanced Collections
• Create aging methods
• Set up and create a collector and resource
• Manage dunning configuration for aged or staged dunning
• Create and edit dunning letters

Collections Shared Setups: Overview
• Before you implement Collections,

Oracle
you must set up other Oracle Receivables
applications.
• Some steps are mandatory while
others are optional steps that
extend or add functionality to Oracle
Collections. General Oracle HRMS
Ledger
Oracle
Payments
• Oracle Receivables: Create transaction types, receipts, payment methods, and adjustment
approval limits.
• Oracle Human Resource Management System: Create employees, jobs, and roles prior to starting
a Financials implementation project.
• Oracle General Ledger: Create financial structures such as business units, chart of accounts,
accounting periods, and financial reporting.
• Oracle Payments: Set funds capture settings to support payment processing.

Required Shared Setups
Collections requires the following items to be implemented:

• Banks • Receipt methods
• Currencies • Credit memo workflow
• Daily conversion rate • Approval limits
types and daily rates • Collectors
• Aging buckets • Transaction types
• Lockboxes
• Customers
You can set up many of these items in either Cash Management, Receivables, or Collections.
• When setting up transaction types, do not allow negative numbers for invoices or debit memos.
• When entering customer contact information, specify the address and phone number that you want
to display in Collections by selecting the Preferred check box and entering Collections as the
purpose.
Lockboxes
For those companies that use a lock box they must set up the Lockbox in in the application.
Lockboxes are a service provided by a bank, whereby the bank receives, processes, and deposits all of a
company's receivables.
Lockboxes are used to deposit receipts (cash and checks) that some companies use that in most cases are
provided by the institution they are banking with at that time.
For example, when you send a payment to a PO Box, in most cases it is a lockbox that the bank has
established and the receipts are usually processed on the next business day and applied to the customer’s
account.

Collections Implementation Tasks
After you complete your setup, you must complete these tasks:
• Create aging methods.
• Set up and create a collector.
• Manage dunning configuration for aged or staged dunning methods.
• Create, edit, and understand scoring formulas and data points.
• Define collection strategy groups.
• Assign scoring and strategies.
• Aging methods: Periods of time used to group receivables, debit and credit items to achieve an
understanding of a customer's delinquency profile
• Collector: An individual or a group of individuals, assigned to a customer to conduct various
collections work
• Dunning methods:
- Aged Dunning method: Used by companies sending collection letters to their customers
based on the oldest aged transaction
- Staged Dunning method: Based on the number of days since the last dunning letter was
sent, rather than the number of days transactions are past due
• Scoring formulas: The foundation for your collections activities
- Create delinquencies and scored collections objects, such as 30 day and 60 day past due
invoices, delinquency amount, and number of delinquencies.
- Use data points about the customer to determine collectability.
• Strategies: A series of manual or automated activities, known as tasks that are linked together in the
order they are to be executed
• Scoring and Strategy assignments: Provides flexibility to the collectors for managing the scoring
and strategy assignments of customers, helps in increasing the collections efficiency, and improve
the cash flow

Aging Method: Overview
Aging methods:
• Provide an understanding of a customer's delinquency profile
• Are periods of time used to group receivables, debit, and credit
• Provide an aging view of the customer by grouping transactions by buckets of time
• Groups overdue debt by time and assigns work based on buckets of debt items
For example, aging categorizes receivables into buckets such as:
120 Days and

Current 30 Days 60 Days 90 Days
Over
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > Manage Aging Methods.
Aging is the concept of calculating a customer's past due and current transactions. Aging:
• Shows the amounts owed to the company by its customers and includes the length of time the
amounts have been outstanding
• Provides a view of transaction or receivables data that helps a collector understand the overdue
amounts viewed over time. This helps the collector prioritize which transactions to focus their
collection efforts.
Aging Methods are used during the creation of aged dunning plans. Collections delivers the following
predefined aging methods:
• 4-Bucket Aging
• 5-Bucket Aging
• 7-Bucket Aging
• Statement

Creating an Aging Method
The Manage Aging Methods page consists of two sections:

• Aging Methods
• Aging Method Details
Advanced Collections delivers preconfigured aging methods, but you can also configure new
aging methods based on your company requirements.
The Aging Method user interface has two sections:

• Aging Methods page where you:
- Enter the name
- Select the type
- Enable the method
- Assign the set
- Provide a description of the method
• Aging Method Details page where you:
- Order your sequence and bucket type, set your day ranges
- Provide your display information for reporting
You can create new aging methods based on company requirements. You:
• Cannot modify these delivered aging methods
• Can copy any delivered aging method. The application renames it with the prefix Copy which
enables you to modify the copied aging method.
Note: Certain validation rules are in place when creating or modifying an aging method.

Practice 4-1 Overview: Creating an Aging Method
This practice covers creating an aging method.

Collector: Overview
A collector is an individual or a group of individuals assigned to a customer to conduct

various collections work. Tasks include:
Sending Reviewing Customer Collecting Customer

Correspondence History Payments
Note: Prior to creating a collector, set up the individual as an employee in Oracle

Human Resources.
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > Manage Collectors.
Points to consider when setting up individuals as collectors:
• A collector can individually be assigned to one or more customers.
• Evaluate what are the most appropriate collection needs for your organizations.
• Collectors can be assigned at the customer, account, or site level.
• Determine the business level at which your organization normally collects from customers.
• Research how your organization divides the work and tasks among collectors. Tasks include
sending correspondence, reviewing customer history, and collecting payment from customers.
• Collections organization structures can be created in several ways based on the number of
customers. For example, you can group customers according to size, small to large, or divide
customers regionally or by the monetary volume you do with a customer.
• For workload balancing and performance purposes, consider how many collectors are assigned to
customers.
• A collector must also have the Collections Agent role.
The difference between an employee assignment and a group assignment is an employee assignment is a
collector assigned to one customer.
Note: You must create individuals as employees before you can set them up as users, resources, or
collectors.

Collectors Descriptive Flexfield
One descriptive flexfield named Collectors is available in Collections.

• Has 15 segments available
• Used to add modified attributes for collector information, such as a geographical region
and collections experience
• For example, create a descriptive flexfield to identify the collector location that can be
used to assign them to customers in or near their location
Defining Descriptive Flexfield Segments

• Use the Manage Descriptive Flexfields task to define a segment or segments for a descriptive
flexfield.
• Add more information related to collectors based on your collection needs.
Activating Descriptive Flexfields
• Activate a descriptive flexfield after you have defined value sets and segment values by deploying
the flexfield.
• Sign out and sign in to the application to see your descriptive flexfield.
Note: Global segments are not available for the Collectors Descriptive Flexfield.

Practice 4-2 Overview: Creating a Collector
This practice covers creating a collector.

Dunning Configuration
Dunning is the business practice of

Dunning
advising delinquent customers about their Address
overdue payments.
• Contact is usually through
correspondence of print, fax, or email. Dunning
Dunning
• Types of dunning configurations vary. Method
Notice
Types of
Dunning
Configurations
Dunning Dunning
Contact Template
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > Manage Dunning
Configurations.
Dunning targets collection correspondence to the right customer contact at the right time. Dunning notices
are sent to contacts at the bill-to sites.
The dunning process is made up of the following:
• Dunning Address: The customer address where the dunning notice is sent. The notice can be sent
to the customer, account, or bill-to site level.
• Dunning Notice: The correspondence sent to a delinquent customer notifying them of one or more
overdue payments.
• Dunning Template: A form letter or series of form letters escalating the need to pay. You can use
the four predefined templates.
• Dunning Contact: The name of the individual who is contacted during the Dunning process. The
default is the Account Payables manager.
• Dunning Method: The correspondence method of print, fax, or email for sending Dunning notices.
• Business Intelligence Publisher (BIP): The technology used to create dunning letters and
generate reports for dunning correspondence.

Dunning Features
After dunning is set up, the collector can use these features:
• Preconfigured dunning letters
• Creation of modified dunning letters to meet unique requirements of deploying
organizations
• Exclude From Dunning feature, to prevent specific customers from receiving dunning
notices
• Assignment of follow-up dunning call activities to collections agents
Navigate to Tools > Scheduled Processes > Schedule New Process > Validate Dunning Setup Report.
Additional dunning features include:
• Resending a previously sent dunning letter to the customer to speed the collections process
• Recording and displaying dunning correspondence activity for collections agents working with
customers
• Sending letters by print, fax, and Email for improved customer service and operational efficiency

Aged or Staged Dunning Methods: Overview
You can use either of these dunning methods to set up customer correspondence:
• Aged
• Staged
Dunning methods are supported at the following levels:
• Customer
• Account
• Bill-to Site
Aged Dunning Type

• Based on the oldest aged transaction. Managers identify the dunning letter to be sent for each aging
bucket.
• Delinquent transactions are identified automatically when the Delinquency Identification concurrent
process is run.
• As the oldest aged transaction moves into the next aging bucket, the content of the dunning letter
can change.
Staged Dunning Type
• Based on the age of the oldest transaction and the number of days since the last letter was sent.
Managers specify how long to wait before executing the next stage.
• Delinquent transactions are identified automatically when the Delinquency Identification concurrent
process is run.
• Dunning letters sent at delayed intervals defined in the Dunning Configuration process. These
intervals control the timing of each letter.
For both methods, managers decide whether or not to manually schedule a follow-up call if the delinquency
is not resolved.

Implementation Considerations for Dunning
Dunning Configuration:
• Review for aged and staged dunning.
• Modify letters to reflect business needs.
• Review letter severity for each aging bucket.
• Define details of the aging bucket prior to enabling dunning.
Modify the dunning letters and assign the appropriate aging buckets accordingly.
If changes are needed in the Aging Method Detail, you must delete the last row first and move up.
• The delete icon is enabled only when you are on the last record.
• This prevents you from deleting rows in the middle of the sequence.
If your Dunning process ends in error, verify that:
• The Business Intelligence Publisher (BIP) server has been set properly.
• The customer information under the Profile tab is accurate and up-to-date.
• A customer contact has been configured.
If the Dunning process ends successfully, but no dunning letter is sent, verify that:
• Minimum dunning amount is set properly, which is the total amount set for all overdue transactions to
have correspondence generated.
• Minimum dunning invoice amount is set properly, which is the amount set for an overdue transaction
to have correspondence generated.
• Customers are set up properly. Run the Validation Dunning Setup Report for customers dunning
setup to verify

Predefined Dunning Templates
• Use the Send Dunning Letter process to

perform and send correspondence.
• Dunning letter templates are stored in
the Business Intelligence Publisher
(BIP) server.
• Collections predefines four dunning
letter templates.
Navigate to Tools > Scheduled Processes > Schedule New Process > Send Dunning Letter.
Predefined dunning letter templates are available or create your own dunning notice templates.
• The templates are associated with aging buckets or stages in the dunning configuration process.
• Best practice is to use the copy feature to edit a predefined dunning template.
- The copy feature automatically prefixes the name with the word Copy.
- You can then use the Edit icon to make the appropriate changes.
Dunning also supports the ability to create different dunning configurations for different reference data sets,
depending on operational and business requirements.
A single consolidated letter can be sent to eliminate sending multiple aged dunning letters to the same
customer who has more than one delinquent transaction.
The four predefined templates are:
• Soft Dunning Letter
• Medium Dunning Letter
• Hard Dunning Letter
• Final Demand Letter

Customer Dunning Configuration
Configure dunning plans and letters to facilitate regular correspondence with your
customers.
All of the following options, except rerun the dunning process, are created in
Correspondence Configuration in Functional Setup Manager:
• Dunning letter options
• Delivery options for dunning letters
• Dunning configuration set
• Dunning transactions
• Rerun the dunning process
Dunning Letter Options

Configure dunning to run in one of two methods:
• Aged Dunning is based on the oldest past due debit item.
• Staged Dunning is based on the number of days since the previous letter was sent.
Dunning letter delivery methods are:
• Email
• Fax
• Regular mail
Dunning can be configured by one business unit or multiple business units. Consider the following:
• A set defines a subset of a master list of business objects, such as suppliers, customers, or in this
case a Dunning Configuration Set.
• A Set Determinant is a business object, usually a type of organizational unit, that has a 1 to 1
relationship to Set. When Set Determinant is visible, a Set can be hidden
• A Set of business objects can be associated with an organizational unit, such as Business Unit or
Legal Entity, to enforce data security. Then, when you are associated with organizational units, they
automatically see only the subset of business objects appropriate for their organizational units.
• A Set or Set Determinant field appears to you as a lookup code that determines which subset of a
master list of objects their organizational unit uses. For example, if you are performing a Purchasing
transaction, the Set or Set Determinant value would determine which Suppliers can be used.

Select the transactions and charges to include in the dunning letters.
• The Dunning Letter Generate program can include current invoices, disputed invoices, and credit
memos.
• The dunning letters can include current transactions.
• Finance charges can be included as a line item.
• When you select the Include Disputed Invoices, the transactions awaiting dispute resolution are
displayed and included in the total.
Rerun the dunning process to correct errors or regenerate dunning letters:
• Rerun the dunning process if an error occurs during any phase of the program.
• Regenerate a previous dunning letter if a customer request another copy.
Keep customers from receiving dunning letters by indicating them as Exclude from dunning on the Profile
tab.

Practice 4-3 Overview: Creating a Dunning Configuration
This practice covers creating a dunning configuration.

Summary

• Discuss shared setup with other financial applications
• Describe the setups that are required in Oracle Advanced Collections
• Create aging methods
• Set up and create a collector and resource
• Manage dunning configuration for aged or staged dunning
• Create and edit dunning letters

5
Designing and Using Scoring and Strategies

Objectives

• Describe Collections scoring
• Discuss scoring formulas and data points
• Explain Collections strategies
• Assign strategies

Scoring and Strategies: Overview
Collections supports:
• Scoring and strategies that run at the customer, account, bill-to, or delinquency levels
• Using collections scores to dynamically change the strategies as the scores change
• Planning of collection strategies and related work items at the level appropriate for your
business
Scoring Formulas:
• Provides an effective way to manage your collection resources and strategies
• Are delivered and allow you to apply, copy, or modify formulas to meet your specific business needs
Note: Cloud customers must submit a service request to create, edit, or modify scoring data points used in
formulas.
Strategies are:
• A series of work items a collector performs after the customer has been scored
• Predefined and delivered to be used without modifying
• Accessible so you can create or modify strategies to enhance your collections

Scoring Formulas: Overview
Scoring formulas are the foundation for your collections activities.

• Collections scores invoices and debit memos from Accounts
Receivables.
• Collections uses scoring in two ways:
– Determines transaction status as:
— Current
— Delinquent
— Predelinquent
– Determines the collectability of each customer at the customer,
account, or bill-to site level by using data points
• The score generated for each customer enables the application to
apply a strategy to the customer.
Scoring formula features consist of:

• High and low scores
• One or more weighted data points that must sum to 1
• Data point details you define to cover all possible values
• Status used only in the case of scoring transactions
• A segment which enables you to run against a subset or segment of the database
• A review where you can test your formula
Implementation Considerations and Recommendations
• You should test all data points and scoring formulas in a test environment using a portion or all of
your production data.
• After you are satisfied with the scoring results and performance, you can move your tested scoring
formulas to your production environment.

Scoring Formula Data Points: Overview
• Data points are used in formulas to Must return

single
calculate a score given to customers.
numeric
• A data point is the first component you value
define for a scoring formula. Must be
• A data point can be either a select contiguous Created for
and not the database
statement or a database function. overlap Criteria for entity
Data
Point Details
Can be Account for a

positive or certain range
negative of numbers
Advanced Collections delivers a set configured data points designed to give customers with a high score a
better chance to collect and a lower score to customers who are at risk for collecting on their past due
transactions.
• A data point must account for the range of numbers from -999,999,999 to 999,999,999.
• The values calculated by a data point are weighted and used in the scoring formula.
• Collections deliver formulas where a higher score indicates a better chance of collectability and a
lower score indicates a lower chance of collectability.
• You can configure formulas where higher scores result in lower chance of collectability and lower
scores a higher chance of collectability.
Note: Cloud customers must submit a Service Request to create, edit, or modify scoring data points used in
formulas.

Scoring Formula Status and Segment
A scoring formula status is only applicable when the scoring formula type value is
Transaction. Assign one of the following statuses:
• Current: All transactions are within the due date
• Delinquent: When a customer has past due transactions
• Predelinquent: Usually applied to customers with an invoice that becomes due in the
next 5 days and their score is between 100-95
A scoring formula segment is a subset of the objects being scored.
If you want to score customers in the United States based on different criteria than customers based in
Japan, you can create two different formulas and attach two different segments to those formulas.
The segment is a database view and must be created by your Database Administrator.

Data Points and Formulas: Example
Data Points Weighted Value Past Due 1 to 30 Days Past Due 31+ Days Data
Data Point Mapping Point Mapping
1-20 Past Due
Number of Delinquencies .5 21+ Past Due Transactions
Transactions
Number of Delinquencies Score 80 20
Amount Over Due .5 $1-$99 $100 +
Amount Over Due Score 70 30
Formula Results
Number of Delinquencies Score X .5 + Amount Over Due Score X .5 = Customer Score
The table illustrates two very simple data points and provides the formula results based on those data
points.
• The two data points are weighted equally at .5, the weighted total must equal 1.0.
• The Past Due 1 to 30 Days and the Past Due 31+Days are the mappings defined in the data points.
• Customers having 1-20 past due transactions are given a score of 80 and customer having 21 or
more past due transactions are given a score of 20. This makes up half of the scoring formula.
• The overdue amount makes up the other half of the scoring formula. Customers owing less than
$100 are given the score of 70 and those owing $100 or more are given the score of 30.
• Result Examples:
- A customer having 10 past due transactions but owing more than $100 is given the score of
55: (10 past due score = 80/.5) 40 + 15 (> or = to $100 amount due score = 30/.5) = 55.
- A customer having 22 past due transactions but owing less than $100 is given the score of
40: (22 past due score = 10/.5) 5 + 35 (<$100 amount due score = 70/.5) = 40.

How Data Points, Scoring Formulas, and Strategies Work Together
• Use a combination of meaningful data points to determine scores for your customers.
• Define strategies to cover the range of scores.
• Apply the strategies to customers accordingly.
Strategy Range of Score Work Item 1 Work Item 2

Easy 50-100 Call Customer Reminder Letter
Difficult 1-49 Legal Action Letter` Escalate to Legal Dept.
Two strategies are defined, each covering a range of scores, and with different tasks or work items assigned
to them:
• Easy Strategy covers the range of 50 to 100 with 2 work items:
- Call Customer
- Reminder Letter
• Difficult Strategy covers the range of scores from 1-49 with 2 work items:
- Legal Action Letter
- Escalate to Legal Dept
Based on the scoring formula example:
• The customer with the score of 55 = Easy Strategy.
• The customer with the score of 40 = Difficult Strategy.

Practice 5-1 Overview: Creating a Scoring Formula
This practice covers creating a scoring formula.

Expanded Scoring Data Points
Collections provides data points to:

• Build more sophisticated scoring formulas
• Increase score accuracy and improve collections effectiveness
Data Point categories can be grouped by:
• Customer
• Account
• Site
The scoring formulas leverage available additional scoring data points:

• Write Off Amount: Total write off amount in the past 24 months in USD
• Total Amount: Total past due amount in USD excluding disputes, on-account or unapplied cash
• Percent of Outstanding 30 Days Past Due: Percent of balance more than 30 days past due
• Weighted Average Days Outstanding: Average days late weighted by invoice amount
• Weighted Average Days Paid: Average days to make a payment weighted by payment amount
For example:
• Customer Write Off Amount: Customer’s total write off amount in the past 24 months in USD
• Account Write Off Amount: Accountant’s total write off amount in the past 24 months in USD
• Site Write Off Amount: Site’s total write off amount in the past 24 months in USD

How Collections Strategies Support Activities
Collections strategies support activities based on the following:

• Your business requirements
• Scoring rules
• Alternative to dunning plans
• To collect on delinquent transactions
• Simple to complex collections activities
You can use strategies in the following ways:

• Associate to customers, accounts, or bill-sites depending on the data level you do business.
• Leverage information from the Collections scoring engines that identifies delinquent transactions and
score delinquent objects.
Note: You can use either strategies, dunning plans or both to manage your delinquencies.

Managing Collections Strategies
Strategies are a series of manual or automated tasks linked together in the order they are to
be executed. Strategies are:
• Determined by the collection method
• Assigned at the business level
• Based on scoring
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > All Tasks > Manage
Collection Methods.
Strategies can be more effectively used than dunning plans by enabling both automated and manual tasks
and combining the tasks into a strategy.
Managers can:
• Define strategies to different collection situations and categories of customers at one of the following
levels:
- Customer
- Account
- Bill-to site
• Relate scoring to strategies. Scoring contains criteria used to analyze customers and score them
using data points.

Setting Up Strategies
Set up your strategies in the following order:
Create collections Create collections Assign collections Assign task to

tasks strategies method name strategies
A strategy consists of the following:

• Create Strategy Template Group: Used to define your general information about the strategy
• Customer Segment: Identifies the grouping and unique attribute for this strategy
• Strategies: Lists the various stages and scores for your strategy
• Tasks: Lists the tasks in sequential order and defines the details for each. Tasks are grouped by
one of two work types:
- Manual: A task to be completed by a collector or specialist
- Automatic: A task completed by an automated process. This includes tasks such as sending
emails, faxes, or sending documents to be printed.

Collections Strategies Tasks: Example
• A series of manual or automated

activities, known as tasks, that are Calling the
linked together in the order they are to customer to
be executed collect
• Each task is a collections activity used

to collect a delinquency
Examples of Tasks
Escalating to a Sending a letter,

supervisor fax, or email
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > Manage Collections
Strategy Tasks.
A task executed manually or automatically is driven by a workflow.
• The workflow notifies the collector to perform a task or initiates the automated process.
• Every task has an associated workflow.
Strategy Management enables you to:
• Configure tasks that are unique to your business and to group tasks into a strategy
• Apply that strategy to a customer based on the customer's collection score
Create a task or tasks to assign to strategies and include:
• Name: Name of the task
• Manual: A task to be completed by a collector or specialist.
When you complete the task it is closed from the queue. The categories for this type are:
- Phone Call
- Personal Visit
- Review
• Automatic: The categories for this type are:
- Send Email
- Send Fax
- Send to Printer

If a task is escalated:
• The manager receives an escalation notification automatically
• The task remains assigned to the collector
Note: You can create several tasks and reuse them in many strategies.
• Wait for: Determine and enter the wait times for:
- How Long the Strategy Waits Until It Executes Task in either UOM of Day, Hour, Minute,
Month, Week, or Year
- How Long the Strategy Waits After It Executes Task in either UOM of Day, Hour, Minute,
Month, Week, or Year
• Optional: Escalate the task.

Strategy Processes: Overview
A series of processes must occur BEFORE using strategies. The following is the
process flow for strategies:
Create a Strategy
Score Collections Aggregate
for Delinquent
Objects Customer Data
Objects
• Each strategy is assigned based on the score applied to it.

• The score determines how aggressively or softly the strategy treats delinquent
customers.
Navigate to Tools > Schedule Process:> Search for and run:

• Score collections objects by running the Collections Scoring program
• Aggregate customer data by running the Update Collections Summary Data program
• Run the Strategy Management concurrent program to create a strategy for each delinquent object
The strategies are based on the scoring engine results. The concurrent program results in the following:
• Oracle SOA BPEL initiates and manages tasks and sends notifications to the designated person.
• Oracle BI Publisher sends correspondence.

Practice 5-2 Overview: Creating Collections Strategy Tasks
This practice covers creating collections strategy tasks.

Collections Strategies for Individual Transactions
Define and run strategies and strategy tasks for individual transactions.
• Use the Manage Strategy Tasks page to specify when the strategy task is applicable to
a transaction.
• Define different strategy tasks with different parameters.
• The strategy processing background process determines if a transaction meets the
appropriate conditions.
• Disputed transactions are adjusted when the conditions are evaluated.
• Setup involves enabling the feature and defining the Transaction Level Strategy and
Strategy Group.
Strategy Tasks task.
• You can define:
- One strategy task, Send Soft Dunning Letter for example, to run for transactions that are
more than 10 days late
- Another task, Send Medium Dunning Letter, to run for transactions more than 30 days late
• The strategy processing background process:
- Evaluates if a transaction meets the conditions defined in the strategy task definition
- Runs the strategy tasks for the transaction accordingly
If a transaction is disputed, the number of days that it is in dispute is subtracted from the number of days
late when the condition is evaluated. To enable the feature:
• Click Navigator > My Enterprise > Offerings.
• On the Offerings page > select Financials > Click the Opt In Features button.
• On the Opt In: Financials page, click the Features icon for Collections to display a list of Collections
features.
• Enable the check box for the Collections Strategies for Individual Transactions feature.
• Click Done.
Ensure the prerequisite features Collections Scoring and Strategy Assignments by Segment and
Automatically Initiate or Fulfill Collections Tasks in Third Party Systems are enabled.

Collections Scoring and Strategy Assignments by Segment
Collectors can perform the following functions:
Categorize Assign different Define Assign predelinquent

customers based on scoring formulas and predelinquency strategy groups to
segments delinquent strategy settings customers
groups to segments
The Collections Scoring and Strategy Assignments by Segment feature:

• Provides enhanced flexibility to collectors for managing the scoring and strategy assignments of
customers
• Increases collections efficiency and improve cash flow
The two major components to this feature are:
• New setup user interface for scoring and strategy assignments
• Enhanced background processes to determine delinquencies and predelinquencies, to calculate
scores, and to assign strategies to customers

Managing Collections Strategy Assignments Types
To access the Manage Collections Scoring and Strategy Assignments task, use Functional
Setup Manager in the Setup and Maintenance work area.
The three types of assignments you can capture are:
2
3
Navigate to Others > Setup and Maintenance > Setup: Financials > Collections > Show All Tasks: Manage
Collections Scoring and Strategy Assignments.
• The predefined scoring formulas and delinquent strategy groups are populated by default.
• Change the default assignments to any scoring formulas or strategy groups according to business
requirements.
Three types of assignments:
• Default Assignments assigned by business level:
- Customer
- Account
- Site
• Default Strategy Assignments by Segment
• Predelinquent Strategy Assignments by Segment

Default Strategy Assignments by Segment
You can assign scoring formulas and delinquent strategy groups by business level,
business unit, or profile class.
This screenshot shows an example of when Amount Overdue Lower Threshold and Below
Threshold Strategy Group are used.
In addition, thresholds for remaining amounts due can be set up and delinquent strategy groups used when
the amount is below or above the thresholds.
Scoring Formula and Delinquent Strategy Group are the columns shown by default, and are the main
functionality of this table.
The hidden-by-default columns which you can populate are:
• Amount Overdue Lower Threshold: Used to capture a lower threshold for remaining amount due
• Amount Overdue Upper Threshold: Used to capture an upper threshold for remaining amount due
• Above Threshold Strategy Group: Used to assign the delinquent strategy group when the amount
is above the upper threshold
• Below Threshold Strategy Group: Used to assign the delinquent strategy group when the amount
is below the upper threshold
• For example, the first row in the table specifies that the strategy group Customer Low Strategy
should be used, when the remaining amount due is below 700,000.00 USD, in the business unit
Vision Operations for the business level Customer.

Predelinquent Strategy Assignments by Segment
Define the amount and day thresholds to use to:

• Determine predelinquencies
• Assign predelinquent strategy groups by business level and business unit
In addition to managing the delinquent strategy assignments, define the amount and day thresholds to use
in order to determine predelinquencies and to assign predelinquent strategy groups by business level and
business unit.
• For example, if the Amount Threshold is 150,000.00 USD and the Day Threshold is 7, it means a
transaction is considered predelinquent when the remaining amount due is more than 150,000.00
USD and becomes past due in 7 days.
Note: The delinquent and predelinquent strategy assignments by segment are optional. If they are not set
up, the default assignments are used.

Viewing Predelinquent Strategy Assignments
To view predelinquent strategy assignments, use either the:

• Collections Work Area landing page: Navigate to Collections > Delinquent.
• Strategies tab on the Customer page: Navigate to Collections > Delinquent > Click the
Customer name.
Strategies tab
Collection's work area and the Customer page are enhanced to support the new Collections Scoring and
Strategy Assignments by Segment feature.
For example:
• Multiple strategies running against the same customer are now displayed under the Strategies tab in
the Customer page.
• Predelinquent strategies, are also displayed on the landing page, if the setup process is complete.

Viewing Strategy Manual Tasks
The manual strategy tasks display in the Strategy Tasks information tile and the associated
table on the Collections Work Area landing page:
Collections
Work Area
Navigate to Collections > Strategy Tasks.

• A manual task is completed by a collector or specialist.
• When you complete a manual task it is closed from the queue.
• Manual tasks examples are:
- Personal visit
- Phone call
- Contact by a salesperson

Practice 5-3 Overview: Creating a Collections Strategy
This practice covers creating a collections strategy.

Collections Delinquency Management Process
The Collections Delinquency Management process:

• Marks the delinquency and predelinquency status of transactions, customers, accounts,
and sites
• Is based on the business level and predelinquency settings
You can schedule this process to run on a regular basis.
Navigate to Tools > Scheduled Process > Schedule New Process.

After the Collections Delinquency Management process is successfully completed, run the second process
Collections Scoring and Strategy Assignments. The Collections Scoring and Strategy Assignments:
• Assigns the scoring formula based on the segmentation
• Calculates the scores
• Assigns strategies also based on the segmentation
• Enable the Collections Scoring and Strategy Assignments before you run the process.
• To run the Scoring and Strategy Assignments Scheduled Process:
- Navigate to Scheduled Process > Click Schedule New Process.
- Enter or select the desired parameters to run the process. Click Submit.
• Run the Promise Reconciliation process to analyze payment received and match them to promises
made. Run the Update Collections Summary Data to refresh the data on the Collections landing
page that contains the infotiles about delinquent customers and strategy tasks.
To enable the Collections Scoring and Strategy Assignments:
• Click Navigator > My Enterprise > Offerings.
• On the Offerings page > select Financials > Click the Opt In Features button.
• On the Opt In: Financials page, click the Features icon for Collections to display a list of Collections
features.
• Enable the check box for the Collections Scoring and Strategy Assignments feature.
• Click Done.

Collections Scoring and Strategy Assignment Process
• Retrieves the scoring formula and delinquent strategy group based on the Manage
Collections Scoring and Strategy Assignments setup
• Calculates the scores and assigns the strategies to delinquent customers accordingly
If predelinquent strategy group assignments are defined, predelinquent strategies are
assigned as well.
Navigate to Tools > Scheduled Process > Schedule New Process.

Note: Delinquent strategies and predelinquent strategies can run in parallel for the same customer.

Summary

• Describe Collections scoring
• Discuss scoring formulas and data points
• Explain Collections strategies
• Assign strategies

6
Setting Up Customers and Transactions

Objectives

• Describe the customer model
• Discuss customer profile classes
• Create a customer
• Merge customers
• Describe how to create and process transactions
• Create and copy invoices

Customers and Parties
• Create customers to properly record and account for sales transactions, as well as
identify other attributes of the selling relationship.
• Key concepts related to customers and customer activities include:
– Party
– Customer
– Customer Account
– Site
– Relationship
– Contact
• A party is an organization or a person that can enter into a business relationship with another party.
A party exists separately from the business relationship in the Trading Community Model.
• A customer is a party with whom you have a selling relationship, such as the purchase of products
and services, or the negotiation of terms and conditions for future purchases.
• A customer account represents the attributes of the business relationship that a party can enter into
with another party. The customer account has information about the terms and conditions of doing
business with the party.
• A site is a point in space described by an address. A party site is the place where a party is
physically located. An account site is a party site used in the context of a customer account.
• A party relationship is the role of the party in the context of another party, such as affiliate,
subsidiary, or partner. An account relationship between different customer accounts of a party
enables the sharing of billing, shipping, and payment information.
• A contact is a person who communicates for or acts on behalf of a party or customer account.

The Trading Community Model
Customers are part of the Trading Community Model. They are global entities and are not created within a
business unit or within any other organizational context. However, the customer sites are assigned to
business units and can be assigned to more than one business unit.
The TCM enables the creation of one entity being used for multiple purposes in the Cloud applications.
The Oracle Enterprise Data Quality application includes a matching engine that can perform matching
checks against all external parties including customers, legal entities, suppliers, banks, and branches. You
can configure the types of parties to consider for matching, such as customers and suppliers, to be checked
for similar and exact name matches. For example, if a company exists as a supplier, the user is informed so
that they can decide whether the party can be used as a customer. If selected, the existing party is used to
establish the customer.
The graphic in the slide illustrates that the ABC Corporation entity can be created as both a supplier and a
customer. The customer ship-to site address can be created from the supplier purchasing site purpose and
the customer bill-to site can be created from the pay site purpose.
The Trading Community Model ensures the integrity of your Master tables.

Managing Customers
Managing customers includes these activities:

• Create customer profile classes.
• Create customer, customer account, and customer site records. Create at least one customer
account for each customer record, and at least one customer site with a bill-to site business purpose
for each customer account.
• Note: You must have a bill-to site to create transactions under the customer account.
• Assign profile classes to customer accounts and customer bill-to sites.
• Define relationships between parties and between customer accounts (both reciprocal and
nonreciprocal). You use customer account relationships to manage the sharing of billing and
shipping services and payment activities between two accounts.
• Review and update customer information. If you use the Oracle Trading Community Model, you can
also manage the control of duplicate and redundant party information.

Managing Customer Profile Classes
Profile classes are a required element for defining customer accounts and sites.
• Use profile classes to organize customer accounts and sites into categories that reflect the needs of
your enterprise.
• The profile class record contains generic options that you can set in different ways to group your
customers into broad categories, such as by industry, location, size, creditworthiness, business
volume, or payment cycles.
• After you assign a profile class to an account or site, you can modify details of the customer account
or site profile to meet specific requirements for that account or site. For example, a particular site
may transact business in a separate currency, or the site may be subject to additional late charges or
penalty charges. These updates apply only to that particular account or site and do not affect the
profile class record itself.
• You manage profile class updates and assignments by means of effective date ranges.
• Each profile class that you assign or update supersedes the previous profile class for the given date
range. In this way, you can manage over time the changes that take place in customer behavior or
customer requirements.

Profile Class Tab
The Profile Class tab defines:

• Credit and Collections Options
• Balance Forward Billing Options
• Terms
• Receipt Matching
• Statement and Dunning
• Invoicing
The Profile Class tab defines:

• Credit and Collections: Define the following:
- Collector
- Credit Classification
- Credit Limit
- Tolerance
- Conversion Rate Type
- Include in Credit Check
- Expiration Offset Days
• Balance Forward Billing:
- Enable
- Bill Level: Account or Site
- Bill Type: Detail, Summary, or Imported
• Terms:
- Payment Terms
- Discount Grace Days
- Allow Discount
- Override Terms

• Receipt Matching:
- Match Receipts By: The choices are Balance Forward Billing Number, Contract Number,
Purchase Order, Sales Order, Shipping Reference, and Transaction Number.
- AutoMatch Rule Set
- Automatically Update Receipt Match By
- AutoCash Rule Set
- Remainder Rule Set
- Application Exception Rule Set
- Receipt Clearing Days
- AutoReceipts Include Disputed Items
• Statement and Dunning: If enabled, include:
- Statement Cycle
- Send Credit Balance
- Send dunning Letters
- Preferred Contact Method: Email, Fax, or Print.
- Statement Preferred Delivery Method: Email, Fax, or Print.
• Invoicing:
- Grouping Rule
- Preferred Delivery Method: Email or Paper
• Credit Profile
- Effective Start/End Dates
- Credit Analyst
- Credit Classification
- Credit Limit
- Order Amount Limit
- Credit Currency
- Tolerance
- Risk Code
- Risk Code
- Credit Rating
- Conversion Rate Type
- Expiration Offset Days
- Credit Review Cycle
- Last Review Date
- Next Review Date
- Include in credit check
- Credit hold

Late Charges Tab
The Late Charges tab includes:

• Charges and reductions
• Charge calculation setup
• Currency settings
If late charges are enabled, you must define:

Charges and Reductions:
• Late Charge Calculation Method
• Charge Reductions
Charge Calculation Setup:
• Late Charge Type
• Payment Terms
• Interest Calculation Formula
• Interest Calculation Period
• Use Multiple Interest Rates
• Receipt Grace Days
• Interest Days Period
• Assess Late Charges Once
• Charge Start Date
• Message Text

Currency Settings:
• Currency
• Conversion Rate Type
• Minimum Receipt Amount
• Minimum Statement Amount
• Minimum Dunning Amount
• Minimum Dunning Invoice Amount
• Late Charges Rates and Conditions (per currency)

Practice 6-1 Overview: Defining a Customer Profile Class
This practice covers defining a customer profile class for a moderate risk customer.

Customer Model
The graphic in this slide illustrates all the different information that can be part of the customer record. This
lesson covers the required information needed to create invoices and record receipts.

Header
The header information includes:

• Organization Information
• Account Information
Navigate to Receivables > Billing > Tasks panel tab > Customers > Create Customer.
The header information applies to all the sites under the Customer and Customer Account. It includes:
Organization Information
• Name: To avoid duplicates, the Data Quality process checks for similar parties. You can also do a
search for a customer or party before creating a new name.
• Registry ID: This represents the organization’s party number. No Receivables transactions are
performed with the registry ID. A Customer is assigned two numbers, the party number and the
customer account number.
• D-U-N-S Number: If you have a Dun and Bradstreet service, you can provide the customer’s
qualified number.
• Taxpayer Identification Number: This is needed for tax reports.
Account Information
• Account Number: A Customer party can have more than one account. You need to create at least
one account and one account site with a bill-to purpose under the customer record to properly record
and account for both sales transactions with the party and other attributes of the selling relationship
with the party. This can be system generated or manually created.
• Account Description (Optional): You can provide a meaningful description.
• Account Type:
- External: Third-party customers not associated with your company
- Internal: Used for intercompany billing. Your legal entity parties can be created as internal
customers.
• Customer Class: Used for federal agencies and public sector companies
• Account Established and Termination Dates

Address
Consider these points when entering and updating customer address information:
• Reference data set for account sites
• Update sharing
• Account address details
• Address business purposes
• Reference accounts
When you create a customer, you must enter account and address information. This address becomes an
account site record of the customer.
When you create additional customer accounts for the customer, you can either:
• Enter new address information to create a new account site, or
• Use an existing account site. If you assign an existing account site to the new account, you can
modify the address information itself, but you receive a warning if this address is shared by other
parties.
Reference Data Set for Account Sites: Before creating or importing customers, you must create a reference
data set for use with customer account sites. You can share this reference data set across one or more
business units, according to your requirements. To access the new reference data set on customer account
sites, provision the appropriate data role to the designated users to grant them access to the job role for the
given business units and reference data sets.
Update Sharing: If you update an address due to incorrect or missing information, these updates are shared
with all account sites that use this address. Update sharing applies only to address information, and not to
account address details or business purposes.
Account Address Details: Use the Account Address Details subsection to identify these values for the
account site:
• Customer Category Code: Used to classify this customer according to the needs of your
enterprise. You define these category codes under the Oracle Trading Community Model.
• Translated Customer Name: Used to enter the customer name in another language. The translated
name replaces the customer name on external documents.
• Address Business Purposes: See the next slide for more details.
• Reference Accounts: Assign distributions for revenue, freight, receivable, AutoInvoice clearing, tax,
unbilled receivable, and deferred revenue accounts to customer bill-to sites. If AutoAccounting
depends on Bill-to Site, then Receivables uses the bill-to site of the transaction to determine the
related segment for these distributions.

Address Business Purposes
Used to identify the functions performed by each particular customer account site. The most
common are:
• Bill-to
• Ship-to
• Deliver-to
• Bills of lading
• Dunning
• Late charges
Assign address business purposes to account sites to identify the functions performed by each particular
customer account site. You can designate one account site as Primary for each address business purpose.
Common address business purposes include:
• Bill-to: Assign the bill-to business purpose to account sites designated to receive and process bills.
You must create at least one bill-to site to process transactions for a customer.
• Ship-to: Assign the ship-to business purpose to account sites designated to receive goods
purchased by the customer account. If you create a ship-to business purpose, you must indicate the
related bill-to site that processes the bills for the shipped goods. Bill-to sites available for association
with ship-to sites either belong to the same customer account or to related customer accounts.
• Deliver-to: Assign the deliver-to business purpose to sites that receive all or part of goods sent to a
ship-to site.
• Bills of lading: Assign the bills of lading business purpose to sites that manage contracts for
carriers that ship customer goods.
• Dunning: Assign the dunning business purpose to sites that receive dunning letters from you.
• Late Charges: Assign the late charges business purpose to the site that is assigned the late charge
policy for this customer account.
If the Statement, Dunning, and Late Charges Site Profiles Used profile option is set to Yes, then
Receivables uses the late charge policy assigned to the late charge site to calculate late charges on
transactions. If the profile option is set to No, then Receivables uses the late charge policy assigned to the
bill-to site assigned to the transaction.

Simplified Customer Upload
Use the Upload Customers from Spreadsheet task to open the Manage Customer Uploads page to transfer
large amounts of customer data using a spreadsheet template:
1. Download the customer spreadsheet template using the Download Customer Spreadsheet Template
button on the Manage Customer Uploads page. The spreadsheet template contains four worksheets:
Customers, Contacts, Reference Accounts, and Customer Bank Accounts.
2. Populate the template with your customer data and generate the zip file
3. Upload the zip file using the Upload Customers from Spreadsheet button on the Manage Customers
Upload page. The upload process prompts you for a batch name that you can use to track the status
of the upload.
4. Track upload errors using the Unsuccessful Records column on the Manage Customer Uploads
page.
5. Click the link to open the error correction spreadsheet.
6. Correct the errors and resubmit the batch.

Practice 6-2 Overview: Creating a Customer

• Creating a customer
• Creating an address and site
• Creating a reference account
• Attaching a profile class

Oracle Receivables: Overview
Oracle Receivables provides the capability to correctly bill customers, record payments, and perform
adjustments to customer accounts. These transactions include invoices, credit memos, debit memos, bills
receivable, and chargebacks.
The Receivables process consists of these major steps:
• Enter Customers: Creates information for the customer record, creates accounts and account
sites (addresses) for the customer record, and defines the business purposes for each site
• Create Invoices: You can use AutoInvoice for imported transactions or manually create
invoices to bill customers for goods and services.
• Print Invoices: Produces invoices to mail to customers
• Post Receipts: Posts customer payments as they are received
• Perform Collections: Collectors use Oracle Advanced Collections to perform timely and accurate
collection activities.
• Create Accounting Using Subledger Accounting: This process transfers the Receivables
Transaction and Receipt accounting to the General Ledger.
The Create Invoices and Print Invoices steps are discussed in this topic.

Transactions: Overview
Transactions can be entered manually or imported from Projects, Order Orchestration, Intercompany, and
non-Oracle systems using AutoInvoice.
When you complete the transaction:
• Tax is calculated on each transaction line using Oracle Tax
• Default accounting is generated from your AutoAccounting setup
• Customer balances are updated
• Aging is initiated
• Transactions are printed, and, if applicable, automatically sent to the customer

Invoice Components
Invoice General Information

• Transaction Class: Provides a drop-down list of classes of transactions: Invoice, credit memo, debit
memo, chargeback, and bills receivable.
• Business Unit: The business unit that owns the invoice. The legal entity is then derived during
invoice creation for the specified business unit.
• Transaction Source: Controls transaction and transaction batch numbering and provides default
transaction types for transactions in batch. It also indicates from where the transaction originated.
• Transaction Type: Categorizes the type of billing charges that are on the invoice. They can also be
used on AutoAccounting Rules to derive the accounting.
• Transaction Number: If the transaction source specifies automatic invoice numbering, then
Receivables assigns a number when you save the transaction. If automatic numbering is not
specified, then enter the number manually.
• Transaction Date: The date the transaction is created.
• Accounting Date: Sets the General Ledger period for posting of transaction distributions.
• Salesperson: The salesperson who receives the sales credits.
• Currency: The currency for the transaction. If the transaction is in a currency other than the ledger
currency, the system converts the amounts to the ledger currency.
• Transaction, Lines, Tax, and Freight Totals: Receivables calculates the lines, taxes, and freight
for the transaction total when the invoice is saved. Transaction total is the balance due from the
customer.

Customer Information
• Bill-to Address: Send the invoice to this customer address.
• Ship-to Address (Optional): Ship goods or provide services at this customer address.
• Sold-to: The customer the goods or services are sold to but not necessarily billed to. By default,
Receivables uses the bill-to customer as the sold-to customer.
• Paying Customer: The customer paying for the goods or services if the ship-to customer is not the
same customer. By default, Receivables uses the bill-to customer as the paying customer.
• Payment Details: The payment details section identifies the receipt method, payment instrument,
and remit-to address. The payment details are supplied from the customer account or site, but you
can change them.
Lines
• Item: Goods or services defined in the Item Master tables.
• Description: Use this field to enter a transaction line without using invoice items or memo lines.
• Memo Line: If set up, memo lines provide a description of the goods and services, the unit of
measure, and the price.
• Unit of Measure (Optional): Use if the price is based on the unit of measure.
• Price: Unit price of the item or service.
• Quantity: Displays the number of items ordered for goods. Displays 1 for services.
Sales Credits
• Salesperson Name: The person or persons who receive credit for the revenue
• Revenue Allocation: The commission allocated to one or more salespeople for the revenue
generated, expressed as either a percentage or amount. If a percentage, then the sum of all
percentages for all salespersons must total 100%.
• Nonrevenue Allocation: Additional incentive-based sales credits, expressed as either a percentage
or amount. If a percentage, the sum of all percentages for all salespersons does not have to total
100%.
Distributions
• Account Class: Associated with a line type, for example, revenue, tax, and receivables. This works
with subledger accounting to generate the accounting events for the general ledger Create
Accounting process.
• Distributions: The account combination associated with each account class.
• Allocations: Each account class can be allocated over one or more distributions.

Creating and Processing Transactions
• Use the Manage Transactions page to view detailed or summary information about your
invoices, credit memos, debit memos, and chargebacks.
• Along with standard search and display functions, you can perform these activities on
selected transactions:
– Review installments.
– View balance details.
– View transaction activities.
Navigate to Receivables > Billing > Task panel > Create Transaction.
Review Installments: You can now use the Review Installments window to easily update the unpaid portion
of the installment amount, update the installment due date, and add or delete installments to reflect the
changes to a payment schedule.
If the AR: Update Due Date profile option is set to Yes, you can update the due date on an installment.
Updating the due date recalculates the days late and due days for the installment based on the new due
date.
View Balance Details: View complete information for a specific transaction, including the original
transaction amount, the total amount of payments against the transaction, any credits, refunds, adjustments,
or charges applied to the transaction, and any discounts taken. The Balance Details window:
• Indicates the receipt, credit, or discount that was applied to the transaction, and the type of
adjustments that were created. For example, a single transaction might have two adjustments
against it, one of type Charges and another of type Freight. Similarly, the transaction might have one
credit memo applied against it at the line level and another at the tax level.
• Displays the total amount of each action affecting a transaction in the Total column and displays how
the line, tax, freight, and charge balances were affected in the Balance row.

Creating an Invoice Manually
When creating a standard invoice manually, you must enter the:

• General and Customer Information: Identify the business unit, the transaction type, the customer,
and so on.
• Invoice Lines: Record goods and services to be invoiced.
• Sales Credits: Optionally record sales commissions.
• Freight Lines: Optionally record freight charges.
If necessary, edit the General Ledger distribution accounts created by preconfigured AutoAccounting Rules.
Save and Complete the invoice to finish the process by calculating the tax, lines totals, and freight for the
transaction total and prepares the invoice for printing.

Transaction Defaults
Transaction defaults save data entry time and reduce errors. These defaults have several sources.
• Transaction Source:
- Transaction type
- Transaction numbering
- Legal entity
• Transaction Type:
- Transaction class
- Payment terms (if not set at the customer level)
- Legal entity
- Accounting
- Credit memos for invoices
• AutoAccounting:
- Accounts for transactions
- Validates accounts
• Customer Record:
- Ship-to and bill-to address
- Payment terms
- Salesperson

• Revenue Scheduling Rules: Default value provided by the item or memo line, if used.
• Statement Cycles: Default value provided by the customer profile class.
• Payment Terms for Balance Forward Billing: Default value provided from either the customer
account or customer account site profile, depending on the Bill Level setting.

Invoice Lines
• Use invoice lines to enter the goods or services to bill the customer on an invoice. You
can create invoice lines in three ways: enter an inventory item, enter a memo line, or
enter a free text line description.
• Consider these points when entering and updating invoice line information:
– Entering inventory items
– Entering the unit price
– Displaying tax inclusive amounts
– Updating tax lines
Entering Inventory Items:

• Enter a warehouse name to indicate the ship-from location for the item.
• Use the inventory item and warehouse name to create accounting flexfield information if
AutoAccounting is based on standard lines.
• Use multiple inventory organizations.
• For example: Enter an item and warehouse that AutoAccounting uses to create the product segment
of your revenue account.
Entering the Unit Price:
• Enter the unit price for the invoice line item.
• Enter a positive or a negative number.
• Use the default value of zero for the unit price for tax and freight lines.
• Enter a memo line item to use the default unit price defined for the memo line. You can accept this
price or enter the actual selling price.
Note: If the currency of the invoice is different from the ledger currency, the formula for calculating the
default unit price is Standard Price / Currency Conversion Rate.
Displaying Tax Inclusive Amounts:
• Amount Includes Tax field values indicate whether the amount for the line includes tax amounts.
• Default value is Use Tax Rate.
• Display of inclusive amounts depends on the setting of the Inclusive Tax option of the tax rate code
for this line.
• Change this setting if the Allow Override option for this tax rate code is enabled. If you change this
setting, Receivables recalculates the line amount.

Updating Tax Lines:
• Change the tax rate code on the invoice if the Allow Override option for this tax rate code is enabled.
• Or manually create new tax lines with the correct tax rate, or to reflect other changes to the invoice,
such as including a tax exemption.

Invoice Distributions
The invoice distributions are:

• Default accounts for each invoice line
• Derived from AutoAccounting rules
• Visible in the Edit Distributions window
• The default accounting that AutoAccounting creates is considered only interim accounting.
- Use the Create Receivables Accounting program to actually create accounting entries in
subledger accounting.
- Receivables uses predefined setup in subledger accounting so that the Create Receivables
Accounting process accepts the default accounts that AutoAccounting derives without
change.
• Revenue scheduling rules:
- Requires running Revenue Recognition before you can review and update accounting
distributions.
- Recognizes revenue over multiple general ledger periods.
• If the invoice is a project-related invoice, then no distribution information is displayed.
• One or more rows can refer to the same transaction line, depending on the distributions.
- Change the transaction account assigned to each distribution
- Do not create new lines or delete existing lines.
• If you change a row that has already posted to the General Ledger, Receivables:
- Does not alter the posted entry.
- Creates adjustments through additional accounting entries.
• The default percent amount of each invoice line assigned to a transaction account is 100 percent,
unless AutoAccounting is based on salesperson:
- Salesperson assignment is split.
- Either accept this percentage or enter another one.

Completing Transactions
When all required information has been entered, click Complete and Create Another or Complete and
Review to complete the invoice.
• Payment installments and aged receivable amounts are calculated.
• Completed transactions can be transferred to General Ledger.
• Only completed transactions can be printed.
These validations apply to a standard invoice (invoice without rules):
• The invoice must have at least one line.
• The accounting date of the invoice must be in an Open or Future period.
• The invoice sign must agree with the creation sign of the transaction type.
• The sum of the distributions for each line must equal the invoice line amount.
• If freight was entered for the invoice, you must specify a freight account.
• If the Require Salesperson Receivables system option is enabled, you must assign one or more
salespeople to each line.
• If salespeople are assigned to each line, the total revenue sales credit percentage must equal 100
percent.
• All the activity date ranges for the setup values, for example, payment terms, must be valid for the
invoice date.
• If the invoice uses an automatic receipt method, you must enter customer bank, branch, and account
information.

These validations apply to an invoice with rules:
• The invoice must satisfy the validations for a standard invoice.
• Each line must have a revenue scheduling rule and a rule start date.
• Each line must have valid account sets.
• Tax that is calculated or entered must have valid account sets.
These validations apply to a standard credit memo:
• The credit memo must satisfy the validations for a standard invoice.
• You must enter at least one credit memo line and specify revenue account assignments for each
line.
• You must specify a valid receivable account.
• If your credit memo is crediting tax, you must specify valid tax accounts.
• If your credit memo is crediting freight, you must specify valid freight accounts.

Practice 6-3 Overview: Creating a Manual Invoice

• Creating a manual invoice for your customer
• Copying the invoice three times
• Completing the invoice

Summary

• Describe the customer model
• Discuss customer profile classes
• Create a customer
• Merge customers
• Describe how to create and process transactions
• Create and copy invoices

7
Using Collections

Objectives

• Use and manage the Collections work area
• Use the key Collections pages of Transactions, Aging, Contact, History, Communication,
and Notes
• Manage customer correspondence
• Explain the bankruptcy process
• Use the Managers dashboard
• Analyze Collections metrics


tasks
Click
Collections
Navigate to Collections > Collections.

The Collections work area allows the collector to view and process the assigned work.

Use the four infotiles in the Collections work area to:

Infotiles
Detail
Table
Navigate to Collections.
The Collections work area displays the open tasks and delinquent customer information for the collector
assigned to a given customer.
The collector can search on a customer and drill down to each infotile to review the customer information,
open promises, strategy tasks, and activities from the each detailed table.
The collector can review their customers and assigned work in the following infotiles:
• Promises
• Strategy Tasks
• Activities

Delinquent Infotile
The majority of a collector’s work is done using the Delinquent infotile.
2
3
Navigate to Collections > Delinquent infotile > select a Customer.

Review the seven tabs:
• Profile: Enter customer details, determine a strategy method, select currency limits.
• Transactions: Manage transactions such as pay, disputes, adjustments, and promises. Create a
case folder.
• Aging: Select aging method details including the type of aging method and aging bucket.
• Contact: Create, edit, delete, and set primary contact.
• History: Select and send a correspondence letter.
• Communication: Add phone numbers and addresses, manage contact preferences.
Tip: Access case folder notes and Receivables transaction notes associated with the transaction
installment.

Profile Tab
• Review collection details.

Business
• Make changes to the collections Level
process.
• Explore strategies that are assigned to
the customer.
Preferred
Statement
Profile Tab Contact
Cycle
Method
Payment
Terms
Navigate to Collections > Delinquent infotile > select a Customer > Profile > Details or Strategies.
To change the Business Level under the Profile tab, you must have a customer selected in the customer
hierarchy.
Dunning is impacted by indicating if letters are sent and how they are sent, using the preferred method
feature.

Options for Profile Details
Navigate to Collections > Delinquent infotile > select a Customer > Profile > Details.
The fields in the Profile Details are:
• Collector: Name of the Collector assigned to the customer.
• Business Level: Select the collection level: Customer, Account, or Bill to site.
• Enable Send dunning letters and Send statement check boxes.
• Status: Customer status is listed current, delinquent, or predeliquent.
• Preferred Contact Method: Select Email, Fax, or Print.
• Payment Terms: Select the payment term. For example, payment of the transaction balance is due
within 60 days, then select the payment term of 60 days.
• Statement Cycle: Select how often you want your billing statements to be generated, weekly,
monthly, or quarterly.
• Discount Grace Days: Number of days after the discount term that your customer can take earned
discounts.
- Your customer must have discounts specified in their payment terms before discount grace
days can be used.
- For example, with 10 discount grace days, the customer can earn a 2% discount on the
original invoice if the payment is received within 10 days of the original discount term.

• Profile Class: Group customers with similar credit worthiness, business volume, and payment
cycles. For example, you might define three profile classes that reflect customer payment behavior:
- Customers who pay promptly.
- Late paying customers with high late charge rates.
- Customers who for the most part pay on time, with discount incentives for early payment.
Currency Limits: Minimum statement amount, dunning amount, and dunning invoice amount.
Metrics: Key Performance indicators:
• Provide you an understanding of your customers financial health and the effectiveness of your
collections organization.
• Use this indicators to strategically allocate collections resources more effectively.
- Average Days Delinquent
- Beginning Balance
- Best DSO
- Broken Promise Amount
- Broken Promise Count
- Broken Promise Percent
- Broken Promised Amount Percent
- CEI
- Credit Sales
- Current Receivables
- Day Sales Outstanding
- Ending Balance
- Over 90 Days Delinquent
- Percent Current
- Percent Over 90 Days Delinquent
- Promise Amount
- Promise Count
- Sales Weighted DSO
- True DSO
- Weighted Average Days Late
- Weighted Average Days Paid
- Weighted Average Terms

Options for Profile Strategies
Collectors review, change, and update strategies for a customer.
Navigate to Collections > Delinquent infotile > select a Customer > Profile > Strategies.
Review and change strategies for the customer.
• Edit tasks in the strategy.
• Mark tasks as complete.
• Mark tasks as skipped.
• Resent letters.
• Cancel a task.
• Reassign a task to another collector.

Options for Transactions Details
Actions Available
Navigate to Collections > Delinquent infotile > select a Customer > Transactions.
View the following actions you can perform on transactions by clicking the Action tab:
• Export to Excel
• Create Case Folder
• Pay: Record a payment on the transaction.
• Dispute: Mark a dispute on the transaction.
• Adjust: Enter an adjustment on the transaction.
• Promise: Input a customer’s promise to pay.

Advanced Collections Case Folder
Use the Advanced Collections Case

Folder to:
• Group similar transactions
together
• Perform various collections
activities against the entire
group simultaneously
• Increase your collections
efficiency
These transactions have a common
attribute that is used to process
them as a group through the
collections cycle.
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Create
Case Folder.
The transactions that you group together typically have a common attribute, such as: a bill-to customer,
which is used by a collector to take action during the collections cycle.
The following is required to create a case folder:
• Transactions must be of the class Invoice, Debit Memo, or Chargeback.
• Transactions must be of same currency.
• Transactions must belong to same Bill-to Customer. You can have different Sold-to Customers.
• Transactions must not belong to another case.
Note: The Case Folder Status can only be Open or Closed.

Performing Collection Activities from the Case Folder
On your new Case Folder page:

• Review selected transactions, and add or delete transactions.
• Perform collections activities against the entire set of transactions.
• Pay
Search • Promise
and
Select
Selected
Transactions
Notes
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > select multiple
transactions > Actions > Create Case Folder.
In the Notes section you can add information such as creation date or author to further define you case
folder.

Practice 7-1 Overview: Running Scheduled Processes and Viewing
the Collections Dashboard
• Running scheduled processes
• View the Collections dashboard

Practice 7-2 Overview: Sending Dunning Letters
This practice covers using the Send Dunning Letters process to send a dunning letter to a
customer contact.

Pay
• Collections provides key functionality for collectors to process customer payments.

• You can process payments with bank electronic funds transfers through integration with
Oracle Payments.
• Payments provide real-time authorization and validation.
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Pay.
Collections supports the following when taking customer payments:
• Process payments one transaction at a time.
• Process electronic fund transfers, also known as ACH, from the customer's bank account.
Collectors can:
• Use the list of values selection for previously defined bank accounts tied to the selected customer
• Create new accounts to be added as needed
• Enter a note that others can refer to for additional information on this payment
You can encrypt the account information appropriately to secure and protect confidential customer
information. This masking is configured in Oracle Payment set ups.
Payment features include the following:
• Payment currency can be different than the original currency.
• Entry of payment is done in the original currency with the ability to convert to and view the equivalent
value in the selected currency.
• The currency of the selected transaction is the default value.
• Payment can be taken on both delinquent and current open receivables.
• Overpayment of a transaction is not permitted.
• Collections defaults the total amount remaining in the amount paid field for the selected transaction.

• The payment amount field can be updated to allow for partial payment.
• Collectors cannot enter negative numbers or zero.
• Approving or denying electronic fund transfer payments is per Oracle Payment standards.
Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

Practice 7-3 Overview: Creating a Payment
This practice covers creating a payment for a transaction.

Dispute
• It allows the collector to record and request a dispute on various sections of the
customer's transaction.
• Select a transaction, enter a reason for the dispute, and submit the dispute for
processing.
• Forward it to the appropriate levels of approval in the BPM Worklist Credit Memo
Request Approval process.
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Dispute.
Navigate to Tools > Scheduled Processes > Schedule New Process > BPM Worklist Credit Memo Request
Approval process.
• If the dispute is approved, the appropriate credit memo is created automatically.
• You can only submit one dispute at a time.
• For example, if you are disputing tax and shipping on the same transaction; the tax would be one
dispute while shipping is a different dispute.
• Use the following task and rule name when setting up approval rules for disputes:
- BPM Task Name for Disputes: FinArTrxnsCreditMemosApproval
- Rule Name: Collection Agent Workflow Routing Participants
Disputing a transaction allows the collector to select one of the following sections:
• Line subtotal: Full amount
• Percent: Must be greater than zero and less than or equal to 100
• Shipping: Full amount
• Specific lines: Modify the quantities in whole numbers. Partial amounts or quantities are not allowed
• Tax: Full amount
• Total: Full amount

FAQs for Process Collections Disputes
How does the dispute apply to the customer outstanding balance?

• The dispute must be put through an approval process in Receivables and, if approved, a credit
memo is created.
• After the credit memo is created, it is available to be applied to the customer's transaction that
was disputed before updating their outstanding balance.
What's the difference between freight and shipping?
• Freight is the industry standard term for the compensation paid for any goods, cargo, or lading
transported for pay by water, land, or air. Freight distribution lines pertain to shipping plus other
charges levied for moving goods and services.
• Shipping is the base transportation cost charged to the customer for transporting goods.
Additional Points
• Entering a dispute reason and amount are required to process the dispute.
• Amounts and quantities cannot be greater than the current amount or quantity.
• Once the dispute is submitted, it goes through an approval process.
• Designated users in Receivables approve or deny the dispute.

Practice 7-4 Overview: Creating a Dispute
This practice covers creating a dispute to a transaction.

Adjust
• Use the Adjustment feature to make an adjustment to a customer transaction.

• The Adjust button is enabled when you select a transaction.
2 3
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Adjust.
The approval of an adjustment is based on the approval limit given to the submitter.
• Usually an amount range is set up for the user by currency,
• For example, a new user may have adjustment amounts that range from -$10 to -$50.
If the adjustment:
• Is within the submitters limit, it is automatically approved
• Exceeds the limit, the adjustment goes through an approval process and is approved or rejected by
someone with the appropriate approval limit
When creating an adjustment, enter adjustment details including:
• Receivables Activity:
- Indicates the type of adjustment, such as bad debt write off or freight charges
- Determines the transaction distribution account to use for the expense or revenue generated
by the adjustment
• Adjustment Type: Part of the transaction being adjusted such as invoice, line, tax
• Adjustment amount
• Adjustment and accounting dates
• Adjustment reason such as charges, refund, tax
After submitting the adjustment, check the Adjustment Status. Examples of status are: Pending approval,
More research, Approved, or Rejected.

Adjustment Actions
Review and update adjustments on the Billing work area or the Approve Adjustment page.
Status Action
Pending approval Approve, reject, or request more information.
Approved Records adjustment. No more actions permitted.
Rejected Adjustment not recorded. No more actions permitted.
More research Allow you to edit, approve, or reject all fields.
• If you approve or reject the adjustment, the customer account is updated accordingly.
• You can only record adjustments that have the status Approved or Rejected.
• You cannot approve a pending adjustment in either of these cases:
- Transaction associated with the adjustment is selected for automatic receipt creation.
- Invoices with Unconfirmed Receipts profile option is set to Credit or None.
• There are two actions that set an adjustment to the status More research:
- Selecting the Request Information action to request more information.
- Selecting the Withdraw action to withdraw an adjustment in Pending approval status.
If you need to reverse an approved adjustment, for example, an adjustment approved in error, create a new
adjustment with the same information and amount with the opposite sign to the previous adjustment
amount.

Practice 7-5 Overview: Creating an Adjustment
This practice covers creating an adjustment to a transaction.

Promise to Pay
The Promise to Pay feature helps you manage a delinquent customer who is unable to
make a payment immediately.
Use Promise to Pay when you want to:
• Record a payment commitment and schedule a promise to pay date
• Apply to one or more delinquent transactions
• Review the outstanding customer account transactions with a customer
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Promise.
Navigate to Tools > Scheduled Processes > Schedule New Process > Promise Reconciliation.
When you manage delinquent customer accounts you can:
• Cancel a promise made in error if it is prior to the promise due date
• Track the expected payment automatically
• Update promise information by scheduling the Promise Reconciliation concurrent program daily
- Schedule the program after cash has been applied to open transactions.
- The program verifies reconciled payments against open promises and updates the promise
state and status in the Collector's Work Area.
Note: Mass promise to pay amounts must be the full amount. You cannot enter partial payments for mass
promise to pay transactions.

Promise to Pay Work Area
Create a promise to pay for a single transaction for a partial amount of the balance and a
mass promise to pay for all transactions that are 60 days past due.
Condition
of the
promise
2
Overall
standing of
3 the promise
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Actions > Promise.
The Promise to Pay section has the following three tables:
• Selected Transactions: Identifies transactions for promise to pay
• Transaction Details: Provides the status, state, amount promised, and promise date
• Mass Promise: Displays the multiple transactions the customer has committed to pay in full
When entering a promise to pay, complete these fields:
• Promise Amount: Enter a partial or full amount of the transaction. Partial amounts can only be
entered for individual transactions.
• Promise Date: Agreed upon date for payment to be made. You can only enter a date in the future.
• Payment Method: Optionally, choose the preferred customer method. Only automatic fund transfers
can be accepted for immediate payment.
Promise to pay is updated when:
• Submitted and is immediately recorded on the customer account. A confirmation letter can be
enabled and sent automatically upon submission.
• Promise Reconciliation process is run. Navigate to: Tools > Scheduled Processes > Schedule New
Process > Promise Reconciliation.
- Analyzes payment received and attempts to match them to promises made
- Assigns the status of either Fulfilled or Broken based on the promise date

Promise to Pay Status and State
The status indicates the specific condition of the promise or promises.
Status Result
Broken Promise date was not met
Cancelled Payment entered in error or no longer valid
Closed Promise was made on or before the promise date
Collectible Open promise that has been created or has not yet reached the
commitment date
Fulfilled Promise date and amount were met
Promise to Pay States:

• Promise: Open commitment detailing the amount to be paid and date promised.
• Broken: Payment was not received by the commitment date.

Practice 7-6 Overview: Creating a Promise
This practice covers creating a promise to a transaction.

Preview
Use the Preview feature to view or print a

copy of your invoice.
Navigate to Collections > Delinquent infotile > select a Customer > Transactions tab > Preview.

Aging
Aging methods:
• Provide an understanding of a customer's delinquency profile
• Are periods of time used to group receivables, debit, and credit
• Provide an aging view of the customer by grouping transactions by buckets of time
For example, aging categorizes receivables into buckets such as:
120 Days and

Current 30 Days 60 Days 90 Days
Over
Navigate to Collections > Delinquent infotile > select a Customer > Aging tab.
Aging:
• Is the concept of calculating a customer's past due and current transactions
• Shows the amounts owed to the company by its customers and includes the length of time the
amounts have been outstanding
• Helps the collector prioritize which transactions to focus their collection efforts
Aging Methods are used during the creation of aged dunning plans. Collections delivers the following
predefined aging methods:
• 4-Bucket Aging: Current plus three past due periods of time
• 5-Bucket Aging: Current plus four past due periods of time
• 7-Bucket Aging: Current plus six past due periods of time as illustrated
• Statement: List of outstanding transactions
Aging buckets: Time periods in which you age and can review your debit items. For example, you can
define an aging bucket that includes all debit items that are 1 to 30 days past due.

Aging
Navigate to Collections > Delinquent infotile > select a Customer > Aging tab.
The Aging page provides detailed aging information about your customer transactions grouped by age.
• Business Unit: Select the Business Unit.
• Aging Method: Select the predefined or your aging methods.
• Open Credits: Select:
- Age: To display Aging Method details
- Summarize: To display Open Credit details
• Recalculate: Click to display the results based on your selections.

Contact
Navigate to Collections > Delinquent infotile > select a Customer > Contacts tab.
The Contacts page provides detailed information about your contacts.
You can complete the following actions:
• Create Contact: Add a new contact by completing the information in the Create contact page.
• Edit Contact: Update an existing contact with new information.
• Delete Contact: Highlight the contact in your list that you want to delete.
• Set Primary Contact:
- Select a contact from your list that you want to designate as primary contact.
- Click Select Contact. A green check mark displays next to their contact name.

History
Provides a detailed list of a customer’s correspondence and collection activities

• The correspondence tab shows details such as:
– Letter name
– Sending method
– Date sent
– Contact
– Address
– Delivery status
• Click a letter name to view the letter.
Navigate to Collections > Delinquent infotile > select a Customer > History tab > Correspondence tab.
• Resend: Click to resend a letter.
• Final Demand Letter: Transactions section contains the list of transactions which remain
outstanding.
Activity tab: Shows the following information:
• Activity
• Status
• Activity Date
• Amount
• Currency
• Business Unit
Both sets of information can be exported to Excel for more analysis.

Communication
• It provides a customer’s primary site information, including phone numbers, email,

and addresses.
• Complete various tasks using the Actions drop-down menu in each area.
• Use View to change the view for your transaction to show all columns, remove
columns, sort or reorder columns.
Navigate to Collections > Delinquent infotile > select a Customer > Communication tab.
In the Phone Numbers and Email section, you can complete the following actions:
• Add Row.
• Delete.
• Set a primary phone number or email indicated with a green check mark.
• Set a primary by purpose indicated with a green check mark.
• Manage Contact Preferences.
In the Addresses section, you can:
• Create a new address
• Delete an address
• Move an address using the Move Address screen
• Edit an address using the Edit Address screen
• Set an address as the Primary address indicated with a green check mark
• Manage Contact Preferences

Enhanced Notes Capabilities
Access transaction notes associated with the transaction installment from the Collections
Delinquent Customer Transaction tab of the customer account.
Notes Created for

the Transaction
Enter Note Text.
Navigate to Collections > Delinquent infotile > select a Customer > Transaction tab > Select a transaction >
Click Notes icon > Actions > Create.
• During the collections process the Collections agent can enter notes related to transactions under
dispute or to collections activity on specific transaction installments.
• If a Note is associated with your selected transaction it displays.
• Click on the date to display the note.
• To create a Note, click Actions > Create.
- In the Create Note dropdown, select General, Reference, or Special type.
- Enter your information in the text box and click Save and Close.

Managing Customer Correspondence
Collections provides a user interface to guide you through the setup of the Correspondence
feature. There are three setup sections on the Manage Collections Preferences page:
• Global Preferences
• Preferences
• Correspondence
Preferences.
Selections made in the Correspondence table impact the defaults the collector encounters when sending
correspondence during the collection process. Correspondence defines the following:
Correspondence settings:
• Collections Preference Set: Select your value.
• Send Dispute Notice: Select yes to notify the customer of disputes made to their account.
• Dispute Template: Activated by selecting yes to the Send Dispute Notice.
• Send Payment Notice: Select yes to notify the customer of payments made to their account.
• Payment Template: Activated by selecting yes to the Send Payment Notice. Select the delivered
template.
• Send Promise Notice: Select yes to notify the customer of promises to pay on their account.
• Promise Template: Activated by selecting yes to the Send Promise Notice. Select the delivered
template.

Prerequisite for Requesting a Bankruptcy
To place a customer into bankruptcy status:

1. Navigate to Others > Setup and Maintenance > Setup: Financials > Collections >
Manage Collections Preferences.
2. Set Request Bankruptcy to Yes. This setting activates the Bankruptcy tab in the Profile
tab.
3. Click Save and Close.
Caution: Once set to Yes, the Enable bankruptcy preference can not be set back to No.
The bankruptcy must be applied at the customer level, which includes all transactions at the customer,
account, and site levels.

Requesting a Bankruptcy
1. Navigate to Collections > Delinquent infotile > select a customer > Profile tab >
Bankruptcy.
2. Click Request and select a reason for the bankruptcy from the Reason drop-down list.
3. Click Attachments to add any supporting attachments.
4. Click Save and Close.
Detailed information such as claims, attorneys involved, filing location, and any other legal information can
be attached.

Processing a Bankruptcy Request
A collector can take the following actions when processing a bankruptcy request:
Request Type Request Status Bankruptcy Status
Bankruptcy Request Request Pending Request Pending
Bankruptcy Request Request Approved Request Approved
Bankruptcy Request Request Rejected Request Rejected
Bankruptcy Withdraw Withdraw Pending Request Approved
Bankruptcy Withdraw Withdraw Approved Withdraw Approved
Bankruptcy Withdraw Withdraw Rejected Withdraw Rejected
You initialize the request for bankruptcy on behalf of the customer.

A submitted bankruptcy request is sent to the appropriate person for approval and the bankruptcy is either
approved or rejected.
Once the bankruptcy is approved, the status changes to approved and the following occurs with all the
customer transactions:
• Collection activities are suspended.
• Delinquent transactions no longer appear on the Collections Dashboard.
• The customer has a status of Bankrupt.
Withdrawing Bankruptcy request:
• You can withdraw a bankruptcy after a bankruptcy request has been approved.
• If bankruptcy is not approved, you cannot withdraw the bankruptcy.
• The collector must contact the person approving the request to reject it.

Demonstration 7-7: Viewing the Bankruptcy Request Process
This demonstration covers creating and reverting a bankruptcy.

Collection Manager Dashboard: Manage Resources
Use the Manage Resources page for the following:

• Assign collectors to new or different customers.
• Reassign collectors to all or selected customers.
• Assign backup collectors to cover for absent collectors.
Manage
Resources
Navigate to Collections > Collections > Manage Resources.

Note: Prior to creating a collector, the individual must be set up as an employee in Oracle Human
Resources.

Collections Manager Dashboard: Metrics
The Collections Manager Dashboard enables insight into advanced metrics, known as Key
Performance Indicators – Metrics and Resources.
Use these two indicators to:
• Understand the financial health of your customers and the effectiveness of your
collections organization
• Score customers and assess the ability to collect their delinquent transactions
Performance
Indicators
Navigate to Collections > Collections > Metrics.

Navigate to Tools > Schedule Process > Schedule New Process > Initialize and Load Collections Metrics.
The Metrics process does the initial load of transactions and receipts for calculation of metrics. After you run
the Initialize and Load Metrics program, the metrics are created.
Collections metrics enable you to measure and view the performance of the collections organization at
various levels.
It uses industry standard formulas to calculate these metrics. Use metrics to score customers and assess he
ability to collect their delinquent transactions.
As transactions are added and receipts are applied, you must run the Incremental Metrics Load program.
This routine maintenance program updates all the data and dimensions.
Multidimensional analysis is possible with the Manager Dashboard and SMART View, an Excel-based ad
hoc reporting tool.
You can instantly view statistics using different dimensions on the same data, and drill up, down, and
through on any hierarchy level.

The Key Performance Indicators can be aggregated across a number of dimensions and hierarchies such
as:
• Business Unit
• Customer, Account, and Site
• Collector
• Profile Class
• Country, State, Province, City, or ZIP Code
• Salesperson
• Aging Bucket

Collection Metrics
Use Collections metrics to:

• Measure and view the performance of
Increase
the collections organization at various efficiency
Expose
levels potential
of a
problem
• Score customers and assess the ability collections
areas.
organization.
to collect their delinquent transactions
Alter collections
strategies based on
results.

Collection Metrics
Collection Effectiveness Index:

• Accurately expresses the effectiveness of collection efforts over time
• Measures collection effectiveness, amounts that are collectible, and those that are
actually collected
• Evaluates individuals, subgroups, and overall groups
The closer to 100%, the more effective the collection efforts. Index
is the quality of collecting receivables, not of time.
This metric is used to evaluate individuals, subgroups, and overall groups.

Collection Effectiveness Index Formula
(Beginning Balance + Credit Sales minus Ending Balance) / N / (Beginning Balance + Credit Sales minus
Current Receivables) / N * 100.
• Where N = number of days in the period.
• Current Receivables is the current amount of receivables transactions not in dispute or past due.

Collection Metrics
• Currency that the metric uses for

Metrics Common reporting, which is defined when setting
Currency
Collections Preferences.
• Date the customer balance begins the

Inception Date calculation. No balance is calculated
prior to the inception date.
• This date drives what bucket of time the

Activity Date document is grouped into our metrics.
The activity date is typically the
accounting date of the document.
Inception Date
• The Inception Date is set in Collections Preferences.
• When calculating metrics the first time, any unpaid open transaction that is prior to the inception falls
on this date.
• For example, if a customer has open transactions in calendar year 2012 totaling 100,000 USD and
the inception date is January 1, 2013. Then the beginning balance for the customer on January 1,
2013 is 100,000 USD.
Activity Date
This date drives what bucket of time the document is grouped into our metrics.
Each document has a corresponding activity date. The documents include:
• Receipt application
• Credit memos
• Adjustments
• Unapplied receipts
Note: Balances and metrics can be calculated from the current time going backward to the inception date
based on the activity dates of the corresponding documents.

Practice 7-8 Overview: Viewing Metrics
This practice covers viewing the metrics of a customer.

Current and Delinquent Formulas
Percent Current = Current Receivables

Percent /Ending balance X 100.
Current
The total amount that is past 90 days due.

Over 90
Days
Delinquent Percent Over 90 Days Delinquent =
Percent Receivables greater than 90 days
Over 90
Overdue/Ending balance X 100.
Days
Delinquent
Beginning Balance and Ending Balance

• Beginning Balance = Total outstanding open receivables at the beginning of the period.\
• Ending Balance = Total outstanding open receivables at the end of the period.
Credit Sales
• Revenues generated by an entity that it allowed to the customers on credit, less all sales returns and
sales allowances.

Days Sales Outstanding Metrics
Collections provides formulated metrics for

Days Sales Outstanding (DSO). DSO
Five of the metrics pertaining to Days Sales

Outstanding are displayed in the chart.
Days
True DSO
Delinquent
Sales
DSO Best
Weighted
Possible
DSO
Days Sales Outstanding (DSO)

Calculating Days Sales Outstanding Metrics
This example illustrates five of the metrics pertaining to Days Sales Outstanding and
provides formulas with sample calculations.
Invoice Date Aging Bucket Dollars in Bucket Credit Sales in

Period
9/28/11 Current 3,000 USD 5,000 USD
8/28/11 1-30 days past due 3,000 USD 6,000 USD
7/28/11 31-60 days past due 2,000 USD. 5,000 USD
Total Open Receivables NA 8,000 USD 16,000 USD
Collections provides formulated metrics for Days Sales Outstanding (DSO).

Calculating Various DSO
For each of the DSO metrics, the calculations are explained and the formula is provided in the example.
DSO
This example expresses the (aggregate) average time, in days, that receivables are outstanding. It helps to
determine if a change n receivables is due to a change in sales, selling terms, or other factors.
An analyst might compare the days' sales outstanding with the company's credit terms as an indication of
how efficiently the company manages its receivables.
• DSO = Ending Balance * N / Credit Sales
• N = Number of days in the period.
• With the preceding data, the 3rd Quarter DSO = ($8,000 / $16,000) x 91 = 45.5 days DSO
True DSO
This uses an average balance over the period rather than Ending Balance snapshot to calculate DSO.
Number of days from invoice date to reporting date x (invoice amount/net credit sales for the month in which
the sale occurred) = True DSO per invoice.

The sum of True DSO for all open invoices = True DSO per total accounts receivable. True DSO =
(Beginning Balance + Ending Balance / 2) x N / Credit Sales
• September Invoice = ($3,000 / $5,000) x 2 = 1.2 days
• August Invoice = ($3,000 / $6,000) x 33 = 16.5 days
• July Invoice = ($2,000 / $5,000) x 64 = 25.6 day
• Sum of True DSO for all open invoices = True DSO per total accounts receivable 1.2 + 16.5 + 25.6 =
43.3 True DSO
Best Possible DSO
This example expresses the best possible level of receivables. Best Possible DSO looks only at the current
receivables to calculate the best length of time you can turn over those receivables.
• Best Possible DSO = Current Receivables x N / Credit Sales
• Calculation based on the data: ($3,000 / $16,000) x 91 = 17 days Best Possible DSO.
Sales Weighted DSO
This example expresses the (aggregate) average time, in days, that receivables are outstanding weighted
by the age of the receivables.
Sales Weighted DSO = ((Current Age Category / Credit Sales of Current Period) + (1 to 30 Day Age
Category / Credit Sales of Prior Period) + (31 to 60 Day Age Category / Credit Sales of 2nd Prior Period) +
(61 to 90 Day Age Category / Credit Sales of 3rd Prior Period) + (91 to 120 Day Age Category / Credit Sales
of 4th Prior Period) ) x 30
(($3,000 / $5,000) + ($3000 / $5,000) + ($2,000 / $6,000)) x 30 = (0.6 + 0.5 + 0.4) x 30 = 45 days Sales
Weighted DSO.
Average Days Delinquent
This example expresses, in days, the average time from the invoice due date to the paid date, or the
average days invoices are past due.
• Average Days Delinquent = Standard DSO - Best Possible DSO.
• 45.5 DSO - 17 BPDSO = 28.5 average days delinquent

Calculating Weighted Average Metrics
• Collections delivers formulated metrics for Weighted Average Metrics.

• The metrics pertaining to Weighted Average Metrics are:
Weighted Average Weighted Average Weighted Average

Terms Days Late Days Paid
Weighted Average Terms

Weighted Average Terms calculates the average number of days allowed for a customer before payment is
due that is weighted according to the item amount.
The calculation is based on the due date of the installment and the terms offered.
Only closed and fully paid transactions are included in the calculation.
Customer payment terms impose limits on the allowable days and a customer can buy with multiple
payment terms.
Some invoices can be due immediately others are offered terms such as:
• NET 30
• 30 / 60 / 90
These terms imply the credit health of the customer. Generally, more favorable terms are offered to credit
worthy customers and less favorable to customers at risk.
Formula:
Sum (Original Amount Due x Terms) / Sum (Original Amount Due).

Weighted Average Days Late
The average days late weighted by invoice amount. This only applies to closed invoices with at least one
late payment.
Days late are the number of days between the due date and the accounting date of the item activity that
closed the item.
For example: The Weighted Average Days Late calculation informs you that the customer pays on
average, 5 days late.
However, that number is more meaningful when you know that the customer had an average of 25 days to
make payments.
Formula:
Sum (Amount Due Remaining * Days Late) / Sum (Original Amount Due).

Weighted Average Days Paid
Weighted Average Days Paid is the number of days a customer takes to make payments.
The following table provides an example:
Invoice or Amount Due or General Days Late Calculation

Receipt Number Ledger Date
Invoice 1 1000 USD 7/01/2012 NA NA
Receipt 1 1000 USD 7/25/2012 24 24 x 100=24,000 Weighted
Invoice 2 20 USD 8/31/2012 NA NA
Receipt 2 15 USD 1/01/2011 123 123 x 15 (partial payment =

1845 weighted
The average is weighted by the payment amount, on the assumption that a larger payment is more
significant than a smaller payment.
For example: The weighted average terms are 25, plus the Weighted Average Days Late is 5. This means
that the customer pays an average of 30 days from the invoice date. The 25 days that were allowed plus the
5 extra days taken.
Formula:
(Sum (Date Paid - Invoice Date) x Amount Paid) / Total Payments.
Using the information from the table the calculations are:
• 24,000 + 1,845 = 25,845 total weighted days.
• 21,000 + 15 = 1,015 USD total receipts.
• Weighted Average Days Late: 25,845 / 1,015 = 25.

Promise Metrics
Use Promise metrics to measure customer promises in nominal and currency terms. The
following illustrates the metric results for the customer:
Promise Metric Resulting Value
Promise Count 1000 USD
Promise Amount 1000 USD
Broken Promise Count 20 USD
Broken Promise Percent 15 USD
Broken Promise Amount 700 USD
Broken Promise Amount Percent 70%
Collections delivers the following formulated metrics for Promises:

• Broken Promise Amount
• Broken Promise Count
• Broken Promise Percent
• Broken Promise Amount Percent
• Promise Amount
• Promise Count
This example illustrates the results of the delivered metrics.
Scenario
You are discussing the outstanding transactions with a customer and they indicated they are willing to
provide payment to 10 of their transactions on an agreed upon date.
You create 10 promises totaling 1,000 USD for the promised date.
The customer fails to make 700 USD payment on the promised due date for 5 of the transactions.
The information in the table above illustrates the metric results for the customer.

Practice 7-9 Overview: Using Strategy Tasks
This practice covers using a strategy task on an existing customer.

Summary

• Use and manage the Collections work area
• Use the key Collections pages of Transactions, Aging, Contact, History, Communication,
and Notes
• Manage customer correspondence
• Explain the bankruptcy process
• Use the Managers dashboard
• Analyze Collections metrics

8
Reviewing Reports and Analytics

Objectives

• Describe Collections predefined reports
• Schedule and run aging, dunning, and promises reports
• Describe the key insights for each type of report
• Explain the report parameters for each report

Collections Predefined Reports
Collections provides predefined reports that are used in various stages throughout the
collections process. The reports cover the following areas:
• Aging
• Dunning
• Promises
Schedule and run the reports from:
• Scheduled Processes
• Reports and Analytics
To run predefined reports, navigate to the Scheduled Processes work area and follow the steps:
• Click the Schedule New Process button.
• Search on the Process Name.
• Enter the parameters.
• Enter the applicable process options and schedule.
• Click Submit.
Navigate to: Tools >Reports and Analytics > BI Catalog.

Collections Predefined Reports by Type
Collections predefined reports by type include:
Aging Reports Dunning Report Promises Report
• Aging by Common • Validate Customer • Promise

Currency Dunning Setup Reconciliation
• Aging 4 Bucket
• Aging by Collector 7
Bucket
Who uses the reports? Financial managers and financial specialists use the reports.
When do you use the reports? Use the reports to:
• Review aging typically on a daily or weekly basis.
• Understand the aging and risk exposure of outstanding receivables.
What can you do with the reports? Use the reports to formulate strategies with task or tasks to collect on
outstanding delinquent customers’ balances..
What tool are the reports created in? Oracle Business Intelligence Publisher.

Collections Aging Reports
Aging Reports list customer open transaction information using the:

• Four bucket aging method
• Seven bucket aging method
• Collector
Use the reports to:
• Create collection strategies and tasks
• View customers’ open transactions based on the aging buckets
you have defined

Collections Aging 4 Bucket Report
Displays customers’ open transaction information based on the four bucket aging method
Report Parameters
• Aging Bucket Method: Either Staged or Aged, based on your company setup.
• Order By: Select by Customer or Transaction Type.
• Report Summary: Yes to display in summary, No to display in detail.
• Show Open Credits: Yes or No to display open credits.
• Show Receipts At Risk: Yes or No to display receipts at risk.

Practice 8-1 Overview: Running the Collections Aging 4 Bucket
Report
This practice covers running the Collections Aging 4 Bucket report.

Collections Aging By Collector 7 Bucket Report
Displays customers’ open transaction information by collector by using the seven bucket
aging method
Report Parameters
• Aging Bucket Method: Either Staged or Aged, based on your company setup.
• As-of Accounting Date: Period start date for the report.
• Order By: Select by Customer or Transaction Type.
• Report Format: Select the format such as HTML, PDF, or Excel.
• Report Summary: Yes to display in summary, No to display in detail.

Practice 8-2 Overview: Running the Collections Aging by Collector 7
Bucket Report
This practice covers running the Collections Aging by Collector 7 Bucket report.

Collections Aging by Common Currency Report
Converts all open transaction to one common currency for all business units or a specific
business unit
Report Parameters
• Targeted Currency: Type of currency you want to display in the report. Default is USD.
• Aging Bucket Method: Either staged or aged based on setup.

Practice 8-3 Overview: Running the Aging by Common Currency
Report
This practice covers running the Collections Aging by Common Currency report.

Validate Customer Dunning Setup Report
• Verify and identify gaps for setting up dunning configurations for customers.
• This report shows only those customers who have open transactions.
Displays customer dunning setup issues and provides solution. For example, the report can display missing
customer email, or contact name,
You can use this report to validate and identify gaps in the dunning setup for customers, accounts, or by
collector.
Report Parameters
• Business Unit: Select the appropriate business unit.
• From Collector Name: Starting range of collectors.
• To Collector Name: Ending range of collectors.
• From Customer Account: Starting range of customer accounts.
• To Customer Account: Ending range of customer accounts.
• From Customer Name: Starting range of customer names.
• To Customer Name: Ending range of customer names.

Practice 8-4 Overview: Running the Validate Customer Dunning
Setup Report
This practice covers running the Validate Customer Dunning Setup report.

Collections Promise Reconciliation Report
• Displays promise information by collector based on business unit and date range
• Used for reconciling promises to pay with broken promises
Report Parameters
• Business Unit: Select the appropriate business unit.
• Collector Name: Specify by collector if appropriate.
• Currency: Select the appropriate currency.
• Date From: Starting date range.
• Date To: Ending date range.
• Report Format: Select format such as HTML, PDF, or Excel.

Practice 8-5 Overview: Running the Promise Reconciliation Report
This practice covers running the Promise Reconciliation report.

Summary

• Describe Collections predefined reports
• Schedule and run aging, dunning, and promises reports
• Describe the key insights for each type of report
• Explain the report parameters for each report

A
Additional Resources

Lesson Objectives

• Find additional application resources
• Use the Oracle Help Center to find additional information
• Access helpful video content to learn more about specific features
Oracle Financials Cloud: Advanced Collections Fundamentals A - 2

Oracle Cloud Implementation Resources
Classroom and Other Resources:

• Oracle Financials Cloud: Advanced Collections Fundamentals Student Guide (this guide
and its companion course)
• Oracle Cloud Applications Help in the Applications
• Oracle Technology Library on OTN
• My Oracle Support (MOS)
• Oracle Financials Cloud Library
• Oracle Fusion Technology Library on OTN: (http://www.oracle.com/technetwork/index.html)

• My Oracle Support (MOS): (https://support.oracle.com/ ) including these documents:
- Getting Started with Oracle Cloud Applications: Common Implementation, Article ID
1387777.1 on Oracle Support
- Oracle Cloud Applications: Financials Reporting (Document 1458904.1)
• Oracle Help Center: (https://docs.oracle.com/en/) including these Oracle Financials Cloud books:
- Getting Started with Your Financials Cloud Implementation
- Implementing Enterprise Structures and General Ledger
- Security Reference for Oracle Financials Cloud
- Creating Analytics and Reports
- Using Analytics and Reports

Oracle Help Center: docs.oracle.com
Oracle Help Center is:

• Central hub for all documentation and tutorials.
• Organized by major product categories including Cloud, Applications, Middleware, and Database.

Cloud Application Services Pages
Links to application families and to Get Started.

Consistent organization, content, and link format for Cloud service pages:. Friendly task panel to use to
change focus from Cloud to:
• Cloud Applications
• Cloud Infrastructure
• Cloud Platform
• Cloud Marketplace
• Cloud at Customer

Financials Home Page
The Financials Home Page in Oracle Help Center gives you access to:
• The ability to select your update.
• List of help topics by task.
• Links to videos and books (guides).
• Option to start your subscription.
• Links to the new features.

Video Subject Areas on the Oracle Help Center
Link to the Video Area in Oracle Help Center

• Get Started
• Use General Ledger
• Use Accounting Hub
• Use Subledger Accounting
• Use Payables invoice to Pay
• Use Receivables Credit to Cash
• Use Other Oracle Financial Cloud Products
• Implement
• Configure and Extend
• Analyze and Report
Navigate to the videos: Oracle Help Center (https://docs.oracle.com/en/) > Applications > Fusion Cloud
Apps link > Financials link > Videos
The Customize Oracle Applications Cloud includes the following videos related to Budgetary Control:
• Customize the Navigator and springboard
• Customize Help
The Get Started with Oracle Financials Cloud includes the following videos related to Budgetary Control:
• Use infolets to identify issues and prioritize tasks.
• Use work areas to streamline business processes.
Note: New videos are constantly being added to the video area in the Oracle Help Center.

Reference Guides
• File Based Data Import includes links to:

– Spreadsheets templates
– Load and import processes
• Tables and Views includes:
– Columns
– Primary and Foreign Keys
– Indexes
• SOAP (Simple Object Access Protocol)
Web Services
Navigate to: Oracle Help Center (https://docs.oracle.com/en/) > Applications > Fusion Cloud Apps link >
Financials link > Books. The guides are in the Development section.
• File Based Data Import (FBDI) is used to load data into Oracle Cloud Applications from external
sources, such as legacy systems and third-party applications. The File Based Data Import for Oracle
Financials Cloud Guide includes links to:
- Spreadsheets used to load data into Oracle Cloud Applications from external sources, such
as legacy systems and third-party applications. The spreadsheet templates help to structure,
format, and generate the data file according to the requirements of the target application
tables.
- File-based load process to load the data files into the interface tables.
- Application-specific data import processes to transfer data from interface tables to the
application tables in your Oracle Cloud Applications.
• Tables and Views for Oracle Financials Cloud Guide includes:
- The tables with the basic information about the table columns, primary and foreign keys, and
indexes.
- The views, columns, and query details that are associated with each view.
• SOAP (Simple Object Access Protocol) Web Services for Oracle Financials Cloud Guide include:
- Business Object Services relationships, operations, and security
- Service Data Objects relationships and attributes
Note: Use SOAP web services to integrate with or extend Oracle Applications Cloud. Through web
services, you can integrate heterogeneous applications within the enterprise or expose business functions
to Oracle Cloud partners and customers over the Internet.

Friendly Search
Navigate to: Oracle Help Center (https://docs.oracle.com/en/) > Applications and type a word or phrase in
the Search box. You can:
• Enter a simple search entry: Just type your topic in the field.
• Review a comprehensive view of search results: Results show the guide as well as the topic with
direct links to the topic.
• View the number of results and context displayed.
• Refine the Search task pane to reduce the number of results.
• Follow the breadcrumbs that appear at the top of topics you select to allow easy return to the list of
results.

Summary

• Find additional application resources
• Use the Oracle Help Center to find additional information
• Access helpful video content to learn more about specific features

Advanced Collections 20A Student Guide

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advanced Collections 20A Student Guide

Uploaded by

Copyright:

Available Formats

Oracle Financials Cloud:

Oracle Financials Cloud: Collections

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

After completing this course, you should be able to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 2

This course is designed to generally follow this agenda:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 3

After completing this lesson, you should be able to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 4

Oracle Cloud Applications are:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Cloud Applications are:

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 5

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 6

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Cloud Applications provide:

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 7

Oracle Financials Cloud is a complete and integrated financial management

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud with Oracle Cloud Applications provides:

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 8

• Multidimensional reporting platform

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

• Innovative, embedded, multidimensional reporting platform

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 9

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 10

Use the Collections work area to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Navigate to Collections > Collections.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 11

Use the four infotiles on the Collections work area to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 12

In this lesson, you should have learned how to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 1 - 13

Introducing Financials Navigation

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

After completing this lesson, you should be able to:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 2

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 3

• Things to Finish Section shows:

• News and Announcements Section

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Things to Finish section:

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 4

• The Analytics section displays:

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

In Financials there are currently four choices of Analytics displays:

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 5

1. The Navigator reflects the

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

The Navigator has:

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 6

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Oracle Financials Cloud: Advanced Collections Fundamentals 2 - 7

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.