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Copyright (c) 2020, Oracle. All rights reserved. Oracle Confidential.

How To Setup Freight For AutoInvoice And The Transactions Workbench (Doc ID 1096942.1)

In this Document

Goal
Solution
1. Check Freight Setup
a. Transaction Type Setup
b. Freight As An Inventory Item
c. System Profile Options
d. Settings In Order Management
e. Summary
2. Troubleshooting Freight
3. Still Have Questions?
References

APPLIES TO:

Oracle Receivables - Version 11.5.10.0 and later

Information in this document applies to any platform.
Executable:RAXMTR - AutoInvoice Master Program
Executable:RAXTRX - AutoInvoice Import Program
Form:RAXSUCTT.FMB - Define Transaction Types
Form:ARXTWMAI.FMB - Transactions

GOAL

NOTE: In the images below and/or the attached document, user details / company name / address / email / telephone number
represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance). Any similarity to actual persons,
living or dead, is purely coincidental and not intended in any manner.

Oracle Receivables (AR): AutoInvoice Information Center >Troubleshooting AutoInvoice for Oracle Receivables Release
11.5 Through 12 > Note 1096942.1

Oracle Receivables (AR): Transactions Workbench Information Center > Note 1096942.1

This note is intended to facilitate troubleshooting issues regarding freight in AutoInvoice and the Transactions Form.

This note should be used in conjunction with:

Note 1075757.1, Troubleshooting AutoInvoice for Oracle Receivables Release 11.5 Through 12
Note 764297.1, How Tax on Freight Works in R12 E-Business Tax (EBTax) Order to Cash
Note 1315056.1, Troubleshooting Freight Issues in AutoInvoice and the Transactions Workbench

SOLUTION

When processing freight in Receivables, you have two options:

1. Recognize Revenue On Freight

If you want to recognize revenue on freight and calculate taxes against it, then you need to set up freight as an inventory
item. Additionally, there are profile options and system parameters you need to set up, please check Section 1 below. If you

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set up Freight as an Inventory item, then multiple freight lines will be at the invoice line level rather than a single freight at the
header level.

2. Do Not Recognize Revenue On Freight

If you just want a simple freight charge for additional services such as shipping and handling or courier fees, without
recognizing any revenue against the freight amount or calculating taxes against it, then you do not need to setup freight as an
inventory item.

1. Check Freight Setup

The most important thing to review when encountering issues regarding Freight is to review your setup. Typical issues are:

Error message: Please correct the freight account assignment, or

the segments of your GL account is not what you expected

are resolved by reviewing the Freight setup.

a. Transaction Type Setup

If you need to associate a freight charge to a transaction, ensure that your setup for the Transaction Type allows freight.

Responsibility: Receivables Manager

Navigation: Setup > Transactions > Transaction Types

b. Freight As An Inventory Item

By default, Receivables does not calculate tax on freight charges. If you need to calculate tax on freight, you must set up
freight as an inventory item.

Responsibility: Receivables Manager

Navigation: Setup > Transactions > Items > Define Items

Create an inventory item for freight and note the following:

In the Main tab:

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Display Attributes = All

Unit of measure = Each
User Item Type = Freight (Only Items with User Item Type = Freight)

Note: In Release 12.1, there is now a System Parameter "Inventory Item for Freight" in Order Management that
needs to be set instead of the profile option eBTax: Inventory Item for Freight Profiles.
For OM Functionality around "Invoicing Interfacing the Charges to AR" to work, it is sufficient to set the value of the
OM System Parameter "Inventory Item for Freight" to the appropriate value.
Please note that user would also have to set the value for OM System Parameter "Invoice Freight as Revenue" to
"Yes".

The eBTax profile options "eBTax: Inventory Item for Freight" and "eBTax: Invoice Freight as Revenue" need NOT
be set and are now obsolete and replaced by the OM System Parameters.

For more information on the replacement of the profile options, please review Note 1451654.1 Error Setting Profile
Option EBTax: Inventory Item For Freight.

In the Invoicing tab:

Invoiceable Item = checked

Invoice Enabled = checked

The value in Sales Account is picked up by AutoAccounting if you source from Standard Lines. Please see Note
1080995.1, Troubleshooting AutoAccounting in AutoInvoice for additional information.

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NOTE: You will need to create a Freight Inventory Item for EACH organization in which you want to
interface Freight as Revenue.

c. System Profile Options

If you process freight as revenue and you want tax to be calculated against the freight, then you must setup the following
system profile options for your Order Management (if you interface transaction from Order Management) and Receivables
Manager responsibilities:

Release Profile Option Valid Values Description

11.5 Tax: Invoice Yes/No Yes, if you want tax

Freight as Revenue calculated on freight lines.
No, if you do not.

Tax: Inventory an Inventory Item with User Item Type = Specify the inventory item
Item for Freight Freight, e.g. Freight Charge from previous associated with freight.
step

12.x eBTax: Invoice Yes/No Yes, if you want tax

Freight as Revenue calculated on freight lines.
No, if you do not.

eBTax: Inventory an Inventory Item with User Item Type = Specify the inventory item
Item for Freight Freight, e.g. Freight Charge from previous associated with freight.
step

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d. Settings In Order Management

The following is only applicable from Release 12 onwards.

If you are interfacing/importing invoices from Order Management, do the following:

Responsibility: Order Management Super User

Navigation: Setup > System Parameters > Values

Parameter Value Description

Inventory Item for an Inventory Item with User Item Type = Specify the inventory item
Freight Freight, e.g. Freight Charge from previous associated with freight.
step

Invoice Freight as Yes/No

Revenue Yes, freight lines will be interfaced
with a LINE_TYPE of LINE

No, freight lines will be interfaced

with a LINE_TYPE of FREIGHT

NOTE: The values set for the Order Management system parameters above are used in conjunction with the Profile
Option: Invoice Freight as Revenue. If the profile option is Yes, and if a freight line is interfaced with a LINE_TYPE of

LINE, taxes will be calculated against the freight amount.

FREIGHT, taxes won't be calculated against the freight amount.

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e. Summary

The following table summarizes the impact of the above settings:

User Item OM System OM System Profile Profile RA_INTERFACE_LINES_ALL. Are Taxes

Name of Type of Parameter Parameter Option Option LINE_TYPE Calculated
Inventory Inventory On Freight
Item for Item Invoice Inventory Invoice Inventory
Freight Freight item Freight as Item for
as Revenue for Freight Revenue Freight
Freight Freight Yes Freight Yes Freight LINE Yes
Charges Charges Charges

Freight Freight No Freight Yes Freight FREIGHT No

Charges Charges Charges

Freight Freight Yes Freight No Freight LINE No

Charges Charges Charges

Freight Freight No Freight No Freight FREIGHT No

Charges Charges Charges

2. Troubleshooting Freight

Please review Note 1315056.1, Troubleshooting Freight Issues in AutoInvoice and the Transactions Workbench

3. Still Have Questions?

To discuss this information further with Oracle experts and industry peers, we encourage you to review, join or start a discussion in the
My Oracle Support Receivables Community.

To provide feedback on this note, click on the Rate this document link.

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If you feel that a Service Request is needed, please be sure to provide the information listed below.

If you are encountering the issue in AutoInvoice:

Are you able to replicate the issue with a manual invoice created via the Transactions Workbench?
Include the AutoInvoice Exception Report (if any).
Include the AutoInvoice Concurrent Process log file (see Note 1079666.1).
Enable and include the FND debug log file generated by AutoInvoice (see Note 1079666.1).
Include output from the following Oracle Diagnostics:
Oracle Receivables AutoInvoice Interface Data Collection Test - this will Support what your interface data looks like.
Oracle Receivables Transaction Data Setup Test - this will show Support what the created transaction looks like.

For information on Oracle Diagnostics, please review the Diagnostic catalogs for your release as noted below:

Release 11.5: see Note 179661.1, E-Business Suite Diagnostics 11i Test Catalog
Release 12.x: see Note 421245.1, E-Business Suite Diagnostics References for R12

Once you have identified your release, locate the note for the specific diagnostic you would like to run. For example, in 12.0.6, Note
732187.1, R12.0.6+ : Oracle Receivables AutoInvoice Interface Data Collection Test.

REFERENCES

NOTE:1067402.1 - AutoInvoice Setup for Release 12: A Case Study Using a Simple Script
NOTE:1075757.1 - Troubleshooting AutoInvoice for Oracle Receivables Release 11.5 Through 12
NOTE:421245.1 - E-Business Suite Diagnostics References for R12
NOTE:1079666.1 - How to Capture a Debug Log or Trace File and Diagnostics for AutoInvoice in 11i and R12
NOTE:179661.1 - E-Business Suite Diagnostics 11i Test Catalog
Didn't find what you are looking for?

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