AR Upgrade Considerations

ORACLE RECEIVABLES
Release 12 Upgrade Considerations

AGENDA
Balance Forward Billing
Credit Card Chargeback
Legal Entity
eBusiness Tax
Subledger Accounting in
Receivables
Obsolescence and
Replacement of Features
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
Revenue Contingencies
COGS and Revenue
Matching
Multi-Org Access Control
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
NEW AND CHANGED FEATURES FOR BALANCE
FORWARD BILLING
Balance Forward Billing provides enhanced billing options that
replace the consolidated billing functionality of prior releases with
a more complete and flexible solution.
BALANCE FORWARD BILLING DESCRIPTION
Generate bills based on new Billing Cycles
Easily create daily, weekly, monthly, bi-monthly, quarterly, and
annual billings
Bill on specific days of the month, or days of the week
Choose to exclude weekends
Consolidate billing activity at the level of customer Account
or Site
Consolidated activity across account sites, or by each billing site
Not all billing sites need to consolidate their invoices, or be
included in account level billing
specific invoices can be excluded from the Bill
BALANCE FORWARD BILLING DESCRIPTION
Enhanced viewing and printing
Bill Presentment Architecture (BPA) configured formats provide a
more appealing layout that can be easily modified
View the completed bill online
Streamline processing with fewer programs to run and
maintain
Three programs compared to five used by consolidated billing
feature
BALANCE FORWARD BILLING BENEFITS
Increased flexibility provides billing consistent with business
practices and customer needs
Expanded billing period definitions, varied levels of consolidation,
exclusion of specified invoices, unlimited print formats
Clearer communication with the customer
User views the balance forward bill online exactly as the customer
sees it
Improved accuracy of Aging
All invoices on the same bill have the same
due date, guaranteeing the individual
invoices will age simultaneously
BALANCE FORWARD BILLING SETUP AND
PROCESS
Define
Payment Term and
assign Billing Cycle
Enable
Balance Forward
Billing for Customer
Account or Site
Manually Create
Transactions
Import
Transactions
Automated process
Define
Billing Cycle
SETUP PROCESS
Run Generate
Balance Forward
Bill Program
Run Confirm
Balance Forward
Bills Program
Run BPA
Balance Forward
Print Program
BALANCE FORWARD BILLING SETUP
DEFINE BILLING CYCLE
When setting up Balance Forward Billing:
For Daily, choose how often and whether to use work days
only
For Weekly, choose how often and day of week
The form changes based on the Frequency you choose.
DEFINE BILLING CYCLE
When setting up Monthly Balance Forward Billing Cycles:
Choose the number of months to create bi-weekly, quarterly or bi-
annual billing
Choose a specific date or multiple dates
Choose to create exclude weekends
DEFINE PAYMENT TERM
Billing Cycle is a new attribute of the Payment term
A billing cycle must be assigned to the payment term to
process balance forward billing.
Not updateable if the payment term has been used
Cutoff Date information is setup on the billing cycle
CUSTOMER PROFILE CLASS
The Profile Class tab includes:
Ability to enable:
Bill Level
Account, Site
Type
Summary, Detail, Imported (if Level = Site)
Payment Term
Balance Forward (if Enabled), Non-Balance Forward (if not
enabled)
Override Terms
Default term can be updated
ACCOUNT & SITE PROFILE
You must enable Balance Forward at Account and Site
Profile
The Bill Level is set ONLY at the Account level
Allow override of terms to exclude invoices from the bill
ACCOUNT LEVEL BILL EXAMPLE
Use
Use
Ignore
Bill Level
Primary Bill-To
SITE LEVEL BILL EXAMPLE
Use
Use
Ignore
Bill Level
ORACLE BPA RULES SETUP
Rules for Balance Forward Bills use the Primary Data
Source of Oracle Receivables Balance Forward
Use existing BPA templates or create your own
For the same print formatting as Consolidated Bills, use the
attribute Display Format
BALANCE FORWARD BILLING PROCESS
ENTER TRANSACTION
Payment Term defaults:
from Site profile if Bill Level = Site
from Account profile if Bill Level = Account
Billing Date is derived from transaction date and billing cycle
Due Date is derived from billing date and payment term
Select non-Balance Forward term if Override Terms = Yes
IMPORTED TRANSACTIONS
AutoInvoice derives the billing date
Billing Date is a new mandatory grouping rule
Billing Date value is mandatory if cycle = External
Transaction API derives the billing date
Billing Date value is mandatory if cycle = External
Legacy Invoices must be imported with specific billing date
if the seeded External cycle is assigned to the payment
term
Imported Billing Number feature used by OKL and legacy
systems is still supported and does not use the balance
forward programs
CREATING BILLS
Generate Balance Forward Bills program
Replaces Print Draft Consolidated Billing Invoices
Replaces Print New Consolidated Billing Invoices
Confirm Balance Forward Bill program
Replaces Accept Consolidated Billing Invoices
Replaces Reject Consolidated Billing Invoices
BPA Balance Forward Print Program
Replaces Reprint Consolidated Billing Invoices
GENERATING BILL LOGIC
BALANCE FORWARD BILLING USE CASES
Case 1:
Billing Cycle = 10th of every month
Last Bill Generated = Dec 10, 2004
Todays Run Date = Jan 12, 2005
1 bill generated for Jan 10, 2005
Case 2:
Billing Cycle = 10th of every month
Last Bill Generated = Dec 10, 2004
Todays Run Date = Jan 8, 2005
No bill generated
Run date must be Jan 10, 2005 or later
GENERATE BILL PROGRAM
Generate Balance Forward Bills Program Parameters:

Choose Print Option
Draft bill
Final bill
Print Output
Default Yes calls the BPA Print Program
Must be Yes to view online
No, if plan to print later
Specify Billing Cycle
This limits customer and available payment terms to chose from
CONFIRM BILL
Program Parameters for confirming a bill include:
Confirm Option
Accept
Reject
Concurrent Request ID
ID from Generate Run
Allows batch confirmation
Required if no other parameters selected
Use other parameters to limit the bills affected
SUMMARY BALANCE FORWARD BILL EXAMPLE
DETAIL BALANCE FORWARD BILL
All lines for
each invoice
Balance and
Summary information
BPA PRINT PROGRAM
BPA Print Program:
Can be initiated from Generate Program
Print draft bills
Print final bills
Can be used to Reprint
Select specific bill number, batch or customer
DISABLE PAYMENT TERMS
To bill the existing invoices:
Generate a final balance forward bill that picks up existing
transactions
Change the payment term on all existing transactions to a non-
balance forward billing payment term
To bill future invoices:
Change the default payment term on the customer account
Disable balance forward billing at the site
and change the default payment term
CHANGE PAYMENT TERMS
Change the billing cycle for a customer by changing the
payment term on the customer profile
Existing transactions with the old payment term, billing date,
and due date are picked up on the next bill run
Transactions that do not have activity against them inherit the
Payment term, billing date, and due date from the new payment
term
Transactions that have activity do not inherit the new payment
term, billing date, and due date
BALANCE FORWARD BILLING
DEPENDENCIES AND INTERACTIONS
Oracle Bill Management
This product provides the user interface and the customer
print format for all Balance Forward Bills
It also provides the rules engine that determines what
print/display format will be used
It delivers seeded rules that perform the same as the
consolidated billing functionality (summary vs. detail)
Users can create new rules and print templates
FUNCTIONAL UPGRADE SCRIPT
The upgrade script runs automatically to update
consolidated billing proxima payment terms to billing
cycle terms
It creates cycles based on the cut-off dates of existing
proxima terms
It assigns them to the existing payment terms
Balance forward billing payment terms cannot be assigned to
Transaction Types and customer Site Uses
If a consolidated (proxima) term was assigned at these
levels prior to upgrade, the upgrade script will override the
assignment with a null value
Enable Balance Forward Billing
Checkbox is enabled at the account and site level for all validated
consolidated billing customers
If payment term assigned to customer was not updated to billing
terms, Enable checkbox is null
Bill Level
Is set to Site level because consolidated billing was only done at
the site level.
Users must update the customer record after
upgrade to create bills at the account level
Type
Not be changed by the script
Detail or Summary values used by default print formats
Customers with the Type of Imported not be included in the
upgrade
Allow Override of Terms
Not changed by the script
Causes different functionality if default payment term is
overridden on an invoice
If checked, payment term other than the default can be
assigned to an invoice.
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
CREDIT CARD CHARGEBACK DESCRIPTION
What is a Credit Card Chargeback?
A credit card chargeback takes place when:
A credit card holder disputes a charge with the credit card company
The credit card company issues a chargeback to the customer for
the disputed amount
The credit card company notifies the vendor that they have issued
a chargeback to the customer
CREDIT CARD CHARGEBACK DESCRIPTION
Request
chargeback
Issue
chargeback
Request
chargeback
Issue
chargeback
Notify vendor that a
chargeback has
taken place
Register that
the card
issuer has
issued the
customer a
chargeback
Credit Card
Company
Vendor
Customer
Vendor
Customer
CREDIT CARD CHARGEBACK BENEFITS
Reduce costs by automating the credit card chargeback
process
CREDIT CARD CHARGEBACK PROCESS
Receive
notification
from card issuer
PROCESS
Find Receipt
Apply
credit card chargeback
activity
Subtract the amount of the
from the application line
Generates
Chargeback
valid?
Create credit
memo to credit
invoice
Yes
No, Can prove that
the chargeback was
invalid
Find Receipt
Restore the original
amount
on the application line
Un-apply the
activity
The
Negative
Misc.
Receipt
Reverses
Negative
Misc.
Receipt
The process to record a credit card chargeback
consists of three steps:
1. Receive Receipt
2. Record Credit Card Chargeback
3. Validate Credit Card Chargeback
acknowledge the credit card chargeback or
prove the credit card chargeback to be invalid
RECEIVE RECEIPT
Vendor
Credit Card
Company
Customer
Place
order for
$100
Notify
receipt of
$100
Create Invoice
DR Receivables $100
CR Revenue $100
Receive Receipt
DR Cash $100
CR Unapplied $100
Apply to Invoice
DR Unapplied $100
CR Receivables $100
RECEIVE RECEIPT
Vendor
Credit Card
Company
Customer
File
dispute
for $25
Notify a
chargeback
of $25
Un-apply the receipt
DR Receivables $25
CR Unapplied $25
Apply the credit card
chargeback
DR Unapplied $25
CR Credit Card Chargeback
$25
Misc. receipt is generated
DR Credit Card Chargeback
$25
CR Cash $25
Credited
$25
RECORD CREDIT CARD CHARGEBACK
Chargeback Process for Vendor:
1. Find receipt
2. Un-apply the receipt
3. Decrease the value on the receipt application line to $75
4. Apply $25 to receipt activity Credit Card Chargeback
(creates a negative misc. receipt of $25)
VALIDATE CREDIT CARD CHARGEBACK
The vendor can either:
Acknowledge the credit card chargeback or
Prove the credit card chargeback to be invalid
Vendor acknowledges the credit card chargeback
Vendor
Credit the invoice by creating a credit
memo
DR Revenue $25
CR Receivables $25
Vendor proves the chargeback to be invalid
Vendor
Credit Card
Company
Prove that
chargeback
was invalid
Agree that
chargeback
was invalid
Un-apply the credit card chargeback
DR Credit Card Chargeback $25
CR Unapplied $25
Misc. receipt is automatically reversed
DR Cash $25
CR Credit Card Chargeback $25
Reapply the receipt
DR Unapplied $25
CR Receivables $25
CREDIT CARD CHARGEBACK SETUP
Create
Receivables Activity
of type Credit Card
Chargeback
SETUP
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
LEGAL ENTITY BACKGROUND
Legal Entity identifies the legal owner of a debt or an
asset
Oracle Applications did not have an object called Legal
Entity in 11i
Different representations of Legal Entity throughout
Oracle Applications
Ambiguous representations left the concept open to
misuse and misinterpretation
R12.0 Legal Entity solution provides a centralized,
secure setup that is used across the E-Business Suite for
reporting and other legal compliance
LEGAL ENTITY MODEL
Inv Org = Inventory Organization
OU = Operating Unit
BG = Business Group
Nodirect
relationship
X
Legal Entity
Ledger
OU
Inv Org
Bank
Account
BG
Primary
LEGAL ENTITY BACKGROUND
Trading Community Architecture (TCA) is used to model
Legal Entities
Legal Entities are considered Parties
First Party and Third Party Legal Entities are involved in a
transaction
LE uptake pertains to the First Party Legal Entity only
LEGAL ENTITY DESCRIPTION
Legal Entity information is available in all Receivables
Workbenches
Receivables stamps each transaction and receipt header
with the Legal Entity
The user may be required to select or update the Legal
Entity assignment
Each transaction belongs to only one Legal Entity
Assigning Legal Entity to all transactions enables tax
calculation, supporting the centralized tax solution
LEGAL ENTITIES AND ACCOUNTING
Legal Accounting Environment Type: Exclusive
Ledger records the accounting for one Legal Entity
Ledger mapped to LE

Legal Accounting Environment Type: Shared
Ledger records the accounting for more than one Legal Entity
Balancing Segment Values
mapped to LE

BSV = Balancing Segment Value
Legal Entity Ledger
Legal Entity
Ledger
BSV
LEGAL ENTITIES AND SHARED ACCOUNTING
Ledger
OU 2 OU 1
BSV 6 7
LE 2 LE 1
LE = Legal Entity
BSV = Balancing Segment Value
OU = Operating Unit
BSV 1 5
DEFAULTING FOR TRANSACTIONS
Exclusive vs. Shared Accounting Environment:
Exclusive: Single Legal Entity (LE) assigned to Ledger
LE derived from Operating Unit
The LE value cannot be updated
Shared: Legal Entities share the same Ledger
Users must set up the hierarchy to derive LE
The default LE can be updated by the user
DEFAULTING FOR TRANSACTIONS
Legal Entity derivation hierarchy for transactions
Transaction Type
Batch Source
Assigning a Legal Entity to a transaction type or batch
source is optional
Only the Legal Entity's mapped to the Ledger associated
with the OU are available to assign
User should chose only one layer in the hierarchy to
minimize set up replication
DEFAULTING FOR RECEIPTS
Remittance or Internal Bank Account linked to Legal Entity
Bank Account is assigned to Receipt Method
Receipt Method is required on all receipts
Receipt
Method
Receipt
Header
Bank
Account
Legal
Entity
Default LE
LEGAL ENTITY BENEFITS
Effectively supports central initiative for legal compliance
and flexible business management
Stamping identifies the owning legal entity on legal documents
accounted for in Oracle Applications
Easily manages transactional data by legal entity
Tracking data from the legal perspective enables detailed reporting
at legal entity, establishment, and registration level
Accurately provides tax calculation for legal entity
Assists with enforcement of tax calculation
and reporting for all jurisdictions
LEGAL ENTITY SETUP AND AUTOMATED
PROCESS
Update
Transaction
Batch Source
AutoInvoice
LE Not Passed
Assign LE to
invoice line
LE exist on
Transaction
Type?
Create invoice
User update
LE value for lines
No
Yes
Automated
process
Update
Transaction
Type
SETUP PROCESS
LE exist on
Batch Source?
Group lines
by LE
Generate Error
Yes
No
Shared Accounting
Environment Only
Is LE Valid?
No
LEGAL ENTITY SETUP
UPDATE TRANSACTION TYPE
Query Transaction Type
Select Legal Entity value
If the type of transaction typically indicates the owner of the
transaction, assign the Legal Entity to the transaction type
within each organization.
LEGAL ENTITY SETUP
UPDATE BATCH SOURCE
Query transaction
Batch Source
Select Legal Entity value
If the source of the transaction typically indicates the legal
owner of a transaction, then assign the Legal Entity to the
batch source within the organization.
LEGAL ENTITY PROCESS - AUTOINVOICE
Importing invoices
AutoInvoice assumes the LE is correct, if it is active
If LE is not passed, AutoInvoice attempts to default the LE
AutoInvoice Validation report displays Invalid Legal Entity
If Legal Entity is not valid, or
If Legal Entity cannot be determined
User corrects errors via the Interface Lines
Forms
After Import
If the invoice can be incompleted, you can update the
defaulted value in a shared-accounting environments
The invoice must have no activity, not be posted and not printed
If System Option Allow Change to Printed Transactions is turned
on, Receivables still does not allow changes to LE
If you change the LE value, the eTax engine recalculates
tax
Importing Regular Credit Memos
Credit memo LE should be same as LE of the original
invoice
If feeder system does not pass LE, AutoInvoice stamps
credit memos with same LE of original invoice
If LE is inactivated between invoice import and credit
memo import, the credit memo is created with the
inactive LE
You cannot update a system stamped value
Legal Entity is a new mandatory grouping rule
LEGAL ENTITY SETUP AND MANUAL PROCESS
Update Transaction
Batch Source
Enter Manual
Transaction header
Assign LE to
invoice Header
LE exist
on Transaction
Type?
User assign LE
No
Yes
Automated
process
Update Transaction
Type
SETUP
PROCESS
LE exist on
Batch Source?
Yes
No
User continue
invoice creation
Shared Accounting
Environment Only
LEGAL ENTITY PROCESS MANUAL
TRANSACTION
If an invoice is created manually, the default hierarchy
determines which LE is assigned to a transaction.
If none is found, you must assign one before continuing to create
an invoice.
The LE can be changed as long as the invoice is
incomplete.
The standard rules for completing an invoice still pertain, except if
the invoice has been printed, the LE cannot be changed regardless
of the Allow Changes to Printed Invoices System Option.
LEGAL ENTITY PROCESS ON ACCOUNT
CREDIT MEMOS
The application of On-Account Credit Memos performs
much the same as in 11i
Application must be to transactions in the same Operating
Unit
Application across Legal Entities is allowed as long as all
transactions are of the same OU
When cross-Legal Entity applications occur, SLA performs
inter-company accounting
LEGAL ENTITY PROCESS BILLS RECEIVABLE
Bills Receivables use same logic as transactions for
stamping the LE
Manual Assignments are limited to transactions that are
stamped with the same LE as the BR
LE is mandatory selection and batching criteria during Bills
Receivable Batching process
If LE on the transactions are different, then multiple BRs are
created.
If a BR is exchanged for another BR, they
must belong to the same LE
LEGAL ENTITY PROCESS - RECEIPTS
All receipts inherit the LE from the bank account:
Manual, Automatic, Lockbox and Post Quick Cash
Programs
Refunds automatically inherit LE from the original receipt
LE is mandatory selection and grouping criteria for
transaction during automated receipt batch creation
process
Receipt application across Legal Entities is allowed if the
receipt and transactions are in same OU
SLA performs inter-company accounting for cross-LE
receipt applications or cross-LE receipt clearing
LEGAL ENTITY PROCESS CLAIM LE
DEFAULTING
LE Default

Data Flow

Receipt
Method
Receipt
Header
Bank
Account
Legal
Entity
Receipt
Application
Invoice
Claim
Non-Invoice
Claim
Invoice

Claim
Resolution
IMPLEMENTATION CONSIDERATIONS
Are there business flows in your organization that need a
centralized setup to be used across the E-Business Suite
for reporting and other legal compliance?
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
E-BUSINESS TAX
Central application that manages the following for all E-
Business Suite products:
Tax setups
Enforcement of tax rules, regulations, and legislation
Tax data
Tax reporting
Generic integration point for third-party tax products and
services (Taxware, Vertex, etc)
RECEIVABLES E-BUSINESS TAX INTEGRATION
KEY BENEFITS
Centralized setup, maintenance, and reporting of tax.
Centralized control over the applicability of tax and tax
rate(s) based on user-defined rules.
Rapid adoption of new rates or rules based on changes
to local tax laws or rates using centralized setups and
included test utilities.
Consistent taxation across Oracle products, operations,
and business lines.
Open interface for integration to Taxware,
Vertex, or other vendors and products.
E-BUSINESS SUITE TAX PRIOR TO RELEASE
12
Payables
Tax
Engine
Data
Repository

Tax
Reporting
Receivables
Tax
Engine
Data
Repository

Tax
Reporting
Tax Partner
Tax Content Tax Services
Other Applications
Tax
Engine Data
Repository

Tax
Reporting
E-BUSINESS SUITE TAX INTEGRATION
12.0
Tax
Administration
Services
Tax
Content
Services
Tax
Determination
Services
Partner Tax
Services
Interface
Partner Tax
Content
Interface
Tax Services Request Manager
Tax Services Tax Content
Tax Partner
Services
Oracle E-Business Tax
Content
Repository
Record
Repository
E-Business Suite
Transaction Tax Data Transaction Data
ARCHITECTURE OF A TAX LINE IN E-BUSINESS
TAX
Tax lines require all of the following:
Tax Regime (UK VAT, US Sales Tax, etc.)
Tax (UK VAT, US State Sales Tax, etc.)
Tax Status (Standard, Zero Rated, Exempt)
Tax Jurisdiction (UK VAT, Quebec PST, etc.)
Tax Rate (0%, 5%, 10%, 17.5%, 30%, etc.)
EXAMPLE OF US SALES TAX IN 12.0

Tax
Regime
Tax
Tax
Status
Tax
Rate
Operating
Unit Tax
Accounts
Regime Tax Jurisdiction Status Rate Account
US Sales
Tax
State
Sales
Tax
California
State Sales
Tax
Standard 7.25% 01.005.004.033
US Sales
Tax
County
Sales
Tax
San Mateo
County
Sales Tax
Standard 1.0% 01.005.004.033
US Sales
Tax
City
Sales Tax
Belmont
City Sales
Tax
Standard 0% 01.005.004.033
Tax
Jurisdiction
Flows
Optional Flows
EXAMPLE OF UK VAT TAX IN 12.0

Flows
Optional Flows

Tax
Regime
Tax
Tax
Status
Tax
Rate
Regime Tax Jurisdiction Status Rate Recovery
UK VAT UK VAT UK VAT Standard 17.5% 100%
UK VAT UK VAT UK VAT Reduced 8.0% 100%
UK VAT UK VAT UK VAT Zero Rated 00%
UK VAT UK VAT UK VAT Exempt 00%
Tax
Jurisdiction
Operating
Unit Tax
Accounts
Recovery
Rate
MIGRATING TAXES FROM 11.5 TO 12.0
Migrated tax setups:
Tax Definition Hierarchy
Tax Configuration Ownership
AR Tax Defaulting Hierarchy
AR Tax Codes/Groups
Location Based Tax
AR System Options for Tax
Tax profiles
Migrated Tax (Transactional) Data
Invoice, Credit memo tax lines
Associated adjustments and receipt discounts
MIGRATING OF TAX CODES AND TAX GROUP
CODES
Tax Codes
AA, BB
Tax Group
Codes
CC
Tax Rate
Codes

AA, BB, CC
Tax Rule
AA, BB, CC
Output Tax
Classification
Codes

AA, BB, CC
USE OF TAX RATE CODES IN RECEIVABLES
Tax rate codes correspond to 11.5 tax codes
Specific numeric rate
Link to GL accounts (within E-Business Tax)
Assigned where a numeric rate is required for offline (non-
recoverable) tax calculations
Receivable Activities (nonrecoverable adjustments, discounts,
misc receipts)
USE OF TAX CLASSIFICATIONS IN
RECEIVABLES
Tax classifications are used to identify specific
(legacy) tax calculations
Simple lookup code, contains no tax-specific settings
Used to prompt or seed specific tax calculations for
transactional data in eBusiness Tax
Transaction Lines form
Memo Lines setup form
Customer (TCA) setup
Tax classifications are a legacy element they
only exist for migrated taxes, not new or pure R12
tax setups.
SETTING UP NEW TAXES IN E-BUSINESS TAX
Tax Configuration tab
Tax Manager responsibility
New tax definitions include:
Jurisdiction, Regime, Status, Tax, and Tax Rate
Tax rules (determine applicability of tax)
Tax accounts
Test your setups using the Tax Simulator
SETTING UP NEW TAXES IN E-BUSINESS TAX
Set up on the Tax Configuration form:
Tax Regimes ( UK VAT, US Sales Tax, etc.)
Taxes ( UK VAT, US State Sales Tax, etc.)
Tax Statuses (Standard, Zero Rated, Exempt, etc.)
Tax Jurisdictions (UK VAT, Quebec PST, etc.)
Tax Recovery Rates (100%, 50%, etc.)
Tax Rates (0%, 5%, 10%, 17.5%, 30%, etc.)
Tax Rules (Determine Tax Applicability, Place of Supply,
etc.)
RECEIVABLES SPECIFIC TAX SETUPS
Receivables Specific Tax Setups:
System Options
Customer
Transaction type
Receivables activity
Standard memo lines
SYSTEM OPTIONS
Most of the tax setups that used to reside on the System
Options form have been migrated to the
E-Business Tax Product Options form.
Options that now appear on the E-Business Tax Product
Options form include:
Tax defaults
Hierarchy information
Rounding information
CUSTOMER TAX
The Tax Profile tab includes Tax setups related to
specific customer accounts or sites, including:
Tax rounding
Registration
Reporting
Fiscal classification
Customer exemption
TRANSACTION TYPE
The tax classification field on the transaction lines form is
now optional
When selected, the tax classification is defaulted on each
transaction line based on the migrated tax hierarchy
The requirement for tax lines on the transaction is now
monitored by E-Business Tax so transactions without tax
lines will no longer raise errors when saved or completed
RECEIVABLES ACTIVITY
Receivables Activities form
The Tax Code on the previous versions of this form was
replaced with Tax Rate Code
The numeric rate associated with this tax rate is used to calculate
non-recoverable taxes internally within Receivables.
New multi-line area on the form where you can associate
the correct tax rates for each supported Legal Entity
ADJUSTMENTS, RECEIPT DISCOUNTS, AND
RECOVERABLE TAX
Adjustments and Receipt Discounts are recoverable
when the receivable activity contains the following:
Tax code source = Invoice
Recoverable checked
When an adjustment or discount is recoverable,
Receivables calls E-Business Tax to:
Prorate the activity between tax and lines
Record the activity in the tax repository
This means that recoverable activities decrease your tax
liability. Non-recoverable activities are not reflected in the
tax repository or your tax reporting.
STANDARD MEMO LINES
Standard Memo Lines Form:
Tax code is now Tax Classification
May be defaulted on transaction lines based on your tax defaulting
hierarchy
New Tax Product Category field
Defaulted on your transaction lines and passed to E-Business Tax
during tax calculations
Used to determine the correct taxes to apply and tax amounts due
LEGAL ENTITY AND SHIP TO
Legal Entity is required on all transactions and receipts
Defaulted from transaction type, batch source, organization
Credit memos default legal entity from target transaction
Adjustments assume legal entity from target transactions
Receipts default legal entity from remittance bank account
Ship to customer and address information can now be
recorded at the line-level
Ship to is now an optional grouping rule for transactions
A transaction can have multiple ship-to addresses
TRANSACTIONS AND MIGRATED TAXES
No change to taxes migrated from previous releases
Same rate as previously defined (now a tax rate code)
Same tax accounts (migrated to E-Business Tax)
Tax classification defaults on each line using hierarchy
User can specify tax classification manually for each line
Resulting tax calculation will be identical to pre-12.0
Note: Tax calculation only occurs for migrated taxes if
the output tax classification is present on the invoice
line.
TRANSACTIONS AND MIGRATED TAXES:
KEY DIFFERENCES
Transaction type no longer enforces existence of tax lines
on your transactions
Presence or absence of tax classification does not dictate
tax calculations
The ability to enter manual tax lines or modify existing tax
lines now controlled by E-Business Tax
Credit Memos always use E-Business Tax for tax
calculations
TRANSACTIONS AND NEW TAXES
New taxes are calculated based on:
Applicability (tax rules) defined in E-Business Tax
Content of the transaction in Receivables
NOTE: Tax classification is not required or used for non-migrated
taxes
Calculation is entirely hands-free
TRANSACTIONS AND MANUAL TAXES
Tax Lines Form:
Can be displayed from either the transaction header or
transaction lines forms
Use to:
Enter a manual tax line
Override an existing tax line
Manual tax lines now require the following information:
Regime
Tax
Jurisdiction
Status
Rate
E-Business Tax was designed around a robust and flexible
rule-based applicability feature.
When properly configured, the E-Business Tax engine
should be able to determine the correct taxes based on
customer, location, item, or any combination of dozens of
other transaction attributes.
The decision for the applicability of any given tax should
made during setup and testing, not during transaction entry.
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
SUBLEDGER ACCOUNTING OVERVIEW
Rule-based accounting engine, toolset & repository
Allows multiple accounting representations for a single
business event
Common data model and UI across subledgers
Supports all 11i functionality
SUBLEDGER ACCOUNTING BENEFITS
Enable compliance with multiple legislative, industry or
geography requirements concurrently in a single instance
through configurable rules
Increase transparency and enable full audit of the
transaction and accounting data through the new data
model
Improve accounting reconciliation
SUBLEDGER ACCOUNTING IN RECEIVABLES
OVERVIEW
Receivables predefines setup data to maintain R11i
functionality
Default accounting that Auto Accounting creates is
interim accounting only. You must refer to SLA for
your accounting entries
Receivables distribution is no longer your accounting. It is
used as a source for predefined accounting derivation rule
SLA creates accounting and SLA transfers
accounting entries to GL
Obsolete: General Ledger Interface concurrent program
Obsolete: CCID Corrections Form
New: Submit Accounting concurrent program
BENEFITS
Multiple accounting representations
Legal and Management reporting
Accrual and Cash Basis accounting
Multi-Fund Receivables accounting
Infrastructure to support new feature:
Line Level Cash Application
PROCESS SUBMIT ACCOUNTING PROGRAM
Submit Accounting Program:
Receivables concurrent program to create accounting
entries in SLA
When you run Submit Accounting, the Revenue Recognition
program is automatically run before creating accounting
entries in SLA
You can choose to create draft accounting or final
accounting.
PROCESS CREATE/VIEW ACCOUNTING
You can create and view accounting entries from
Receivables transactions and receipts workbenches
To create accounting for transactions, run the Submit
Accounting concurrent program
To create accounting online go to Tools>Create Accounting
on the transactions workbench or receipt workbench.
To view accounting entries for a transaction, bring up the
transaction, and then go to Tools>View Accounting
SUBLEDGER ACCOUNTING IN
RECEIVABLES PROCESS ONLINE
CREATE ACCOUNTING
Create Accounting form options:
Create Final Accounting Post to GL
Create Final Accounting
Create Draft Accounting
You can view draft accounting, which gives you the
flexibility to make changes before creating final
accounting.
To view the accounting entries, bring up the
transaction, and then go to Tools>View Accounting
Refer to SLA documentation for detailed information
on the Create Accounting parameters
SETUP
No AR specific setup is required to continue using 11i
functionality
Receivables has predefined the setup
Resultant accounting is the same as in R11i
The next few slides describe AR predefined setup
To define your own SLA setup, please refer to SLA
documentation
RECEIVABLES SETUP LEDGERS
AND SLAMS
Ledger
Subledger Accounting Method
Application Accounting Definition
Journal Lines Definitions
Event
Class & Type
Journal
Line Type
Line
Description
Account
Derivation
Rules
Assigned to
Assigned to
Assigned to
Assigned to
SETUP SOURCES FOR ACCOUNTING
DEFINITIONS
Invoice Event Class
Item
Customer Name
Transaction Type Revenue Account
Tax Code
Currency
Invoice Number
Operating Unit
Salesperson
Entered Amount
PO Number
RECEIVABLES SETUP PREDEFINED
EVENT CLASSES/TYPES
Event Class* Event Types
*Event Class = Receivables Document
Invoice
Credit Memo
Receipt
Create
Update
Create
Update
Create
Update
Reverse
SETUP
AR PREDEFINED EVENT CLASSES/TYPES
Event Class Event
Type
Journal Definition Assignment
Adjustments All Adjustments Default Accrual
Bills Receivable All Bills Receivables Default Accrual
Chargeback All Chargeback Default Accrual
Credit Memo All Credit Memo Default Accrual
Debit Memo All Debit Memo Default Accrual
Deposit Memo All Deposit Memo Default Accrual
Guarantee All Guarantee Default Accrual
Invoices All Invoices Default Accrual
Misc Receipt All Misc Receipt Default Accrual
Receipt All Receipt Default Accrual
RECEIVABLES SETUP ANATOMY OF
A JOURNAL ENTRY

Date: 10-Jan-2002 Description: Domestic invoice number A4576, issued Jan 5th 2002
Line Type Account Description Debit Credit
Receivable 01.1210.000 Paco Terremoto S.A. 5,600
Revenue 01.4110.000 Widgets X-123 5,000
Tax 01.5350.000 Domestic input VAT 600
Subledger Accounting Entry
Descriptions
Account Derivation
Rules
Journal Line Types
RECEIVABLES SETUP JOURNAL
LINE TYPES
Journal Line Types Setup:
The Side field determines how Receivables will account for
the Line Type
The Switch Debit/Credit field determines how negative
amounts will be handled
Note that Transfer to GL is done in Summary
RECEIVABLES SETUP ACCOUNT
DERIVATION RULE
Account Derivation Rules Setup:
Account Derivation Rules determine which account to use
for the Journal Line Type for a particular transaction
You can define your own:
Subledger accounting methods
Application Accounting Definitions
Journal Line Definitions
Journal Line Types
Line Descriptions
Account Derivation Rules
SETUP JOURNAL LINE DEFINITION OF
INVOICES
The Journal Line Definition is comprised of:
Journal Line Types (JLT)
Line Descriptions
Account Derivation Rules (ADR)
RECEIVABLES SETUP ASSIGNING THE
JLD TO THE AAD
Application Accounting Definitions Form
Journal Line Definitions (JLD) are assigned to the
Application Accounting Definition per Event Class or Event
Type
Journal Line Definitions must be validated to enable
accounting
SUBLEDGER ACCOUNTING IN RECEIVABLES SETUP
ASSIGNING THE AAD TO THE SLAM
Subledger Accounting Methods Form
Application Accounting Definitions (AAD) are assigned to
Subledger Accounting Methods
ASSIGNING THE SLAM TO THE LEDGER
The subledger accounting method is defined and shipped
by Oracle.
This is indicated by the subledger accounting owner field which
shows Oracle.
User defined subledger accounting methods show the user in the
subledger accounting owner field.
There is a 1:1 relationship between a ledger and a SLAM.
The Use Cash Basis Accounting flag should be disabled
when using an accrual SLAM
PREDEFINED SLAMS
Standard Accrual
Application Accounting Definition Name: Receivables Default
Accrual
Standard Cash
Application Accounting Definition Name: Receivables Default Cash
Basis Accounting Definition
US Federal Accounting
Application Accounting Definition Name: Multi-Fund Account
Receivables Accrual - Balancing Method
RECEIVABLES PROCESS INVOICE
ACCOUNTING
11i Accounting

DR Receivables $360
CR Revenue $100
CR Revenue $200
CR Tax $ 10
CR Tax $ 20
CR Freight $ 30
R12 AR Default Accounting

DR Receivables $360
CR Revenue $100
CR Revenue $200
CR Tax $ 10
CR Tax $ 20
CR Freight $ 30
Item 1 $100
Tax $ 10
Freight $ 30
Item 2 $200
Tax $ 20

Total $360
PROCESS MULTI-FUND RECEIVABLES
ACCOUNTING
R12 AR Default Accounting

DR Receivables $100
DR Receivables $200
DR Receivables $ 10
DR Receivables $ 20
DR Receivables $ 30
CR Revenue $100
CR Revenue $200
CR Tax $ 10
CR Tax $ 20
CR Freight $ 30
Item 1 $100
Tax $ 10
Freight $ 30
Item 2 $200
Tax $ 20

Total $360
PROCESS
ADJUSTMENT ACCOUNTING
11i Adjustment Accounting

DR Write Off $ 60
CR Receivables $ 60
R12 Default Accounting

DR Write Off $ 20
DR Write Off $ 40
CR Receivables $ 20
CR Receivables $ 40
$60 LINE* Adjustment
PROCESS RECEIPT APPLICATION
ACCOUNTING
11i Receipt Accounting

DR Unapp $150

CR Receivables $150
R12 Default Receipt Accounting

DR Unapp $ 150
CR Receivables $ 50
CR Receivables $100
CR Receivables $ 5
CR Receivables $ 10
CR Receivables $ 15
CR Receivables -$ 10 *
CR Receivables -$ 20 *
Default Accrual Accounting
$150 Receipt Application
PROCESS RECEIPT APPLICATION
ACCOUNTING
11i CASH BASIS

DR Unapp $150
CR Revenue $ 50
CR Revenue $100
CR Tax $ 5
CR Tax $ 10
CR Freight $ 15
CR Adjustment -$ 10
CR Adjustment -$ 20
R12 CASH BASIS

DR Unapp $ 150
CR Revenue $ 50
CR Revenue $100
CR Tax $ 5
CR Tax $ 10
CR Freight $ 15
CR Adjustment -$ 10
CR Adjustment -$ 20
Default Cash Basis Accounting
$150 Receipt Application*
SLA
Transactions
Accounting
Events
Receivables
Journal Entry
Setup
Accounting
Program
Subledger
Balances
GL
Journal
Entries
and
Balances
Accounting
Configurations
Subledger
Journal Entries
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
OBSOLESCENCE AND REPLACEMENT OF
FEATURES DESCRIPTION
Receivables Collections Workbench
Oracle Advanced Collections replaces the existing
workbench
Work is pushed to the user
Users work primarily within one main screen
The Account Details and Activities forms are still available
for research by non-collector personnel
Bills of Exchange
Bills of exchange are financial instruments used primarily
outside of the USA
Bills of exchange were originally implemented as a type of
receipt
The Bills Receivable feature replaces the bills of exchange
functionality creating unique documents
Bills Receivable has its own workbench
Trade Accounting
Provided a way to handle customer deductions and overpayments
Replaced by Deductions Management, using Trade Accounting
and Credit Management
Tax Setup and Reporting
Receivables tax reports and setup are replaced with equivalent
functionality in Oracle E-Business Tax
CCID Correction Form
Provided a way to update invalid accounting before importing into
General Ledger
Centralized Sub-Ledger Accounting draft accounting can be
corrected prior to interfacing with General Ledger, replacing need
for the corrections form
COGS and Revenue Matching Report
Report compared Revenue to potential COGS
Replaced by COGS and Revenue Matching feature
AR Customer Supplier Netting Report
Report listed Payables and Receivables by customer
Replaced by AP/AR Netting feature
On Account Credit Memo Refund
Manually initiate refund from On Account credit memo
Functionality enhanced with direct integration to Oracle Payables
Consolidated Billing
Consolidated customer invoices into one monthly bill
Replaced by more flexible Balance Forward Billing feature
Customer Standard User Interface Redesign
Redesigned as an HTML-based user interface
Provides a more streamlined and intuitive customer data
management flow
Customer data entry is coupled with data quality
management tools to maintain the integrity of customer data
Late Charges functionality
Enables you to create standard late charge policies that can
be assigned to customer accounts or account sites
Flexible policy configurations include:
Multiple interest calculation formulas
Transaction and account balance thresholds
Currency-level rate setups
FEATURES BENEFITS
Improve functionality by aligning with mandated or generally
accepted business practices
Reduce maintenance by providing centralized functionality
Increase user productivity and effectiveness with more
automation, easier navigation and extended functionality
TRANSITION TO NEW FEATURES
COLLECTIONS WORKBENCH
What changed:
Forms removed or modified in Receivables
Reports retired or modified in Receivables
Required steps:
Setup Oracle Advanced Collections
For more information:
Migrating to Oracle Advanced Collections: An Overview for Oracle
Receivables Users white paper
COLLECTIONS WORKBENCH - MENU
AND FORMS
Items removed (menu and forms):
Account Overview
Aging
Correspondence
Customer Accounts
Customer Calls
Scheduler
Items changed (menu and program):
Account Details modified as research tool
for non-collections users
Dunning Letters program is now Historical
Dunning Letters only
Replaced with:
Collectors Work Queue
Collections
Search
COLLECTIONS WORKBENCH -
ACCOUNT DETAILS
Account Details:
Still exist in R12 to provide non-collector users the ability to perform
research.
Are available directly from the Navigator, and can be used for
either transactions or receipts as it is today.
Are still available from the transactions workbench when you select
Installments from the Tools/Action menu
The Account Details form has been modified to remove
references to Dunning, and Call functionality.
Dunning creation and history, and Call
functionality are now available in
Advanced Collections.
COLLECTIONS WORKBENCH - DUNNING
REPRINT
Dunning Reprint allows printing of Historical Days Overdue
type dunning letters in the event of foreclosure or other legal
issues.
The Program is called Dunning Letter Reprint-Historical
Receivables Only
Items changed:
Program name: Dunning Letter Reprint-Historical Receivables Only
Output: Historical Receivables Days Overdue
Dunning letters
TRANSITION TO NEW FEATURES BILLS
RECEIVABLE
What Changed:
The System Option to enable Bills Receivable is removed,
Bills Receivable is automatically enabled
Required Steps
Setup for Bills Receivable
If you have transitioned to Bills Receivable prior to
upgrading, no action is required
If you plan to transition to Bills Receivable
before or after the upgrade, review the
white paper: Oracle Receivables Bills
of Exchange Obsolescence
TRANSITION TO NEW FEATURES TRADE
ACCOUNTING
What Changed:
System Option to Enable Trade Accounting is removed
Deductions Management will automatically be enabled if you
setup Trade Management
Required steps:
If you upgraded to Deductions Management solution prior to
R12.0, no actions are required
Setup Oracle Trade Management and Credit Management
E-Business Suite Solutions for Deduction
Management, An Oracle White Paper
Release 11i.10
CUSTOMER STANDARD FORM
What changed:
Old Standard customer forms replaced by HTML UI
Updates to Customer Profile Class form
Required steps:
No actions required
TAX SETUP AND CALCULATION
What changed:
Tax reports retired
Tax setup removed from AR
Oracle E-Business Tax provides all setup and calculation
functionality for tax
TAX REPORTING
No longer in Receivables:
Tax Code Listing
Tax Exceptions Listing
Tax Exempt Customer
report
Tax Exempt Product
Report
Tax Group Listing Report
Sales Tax Listing
Sales Tax Rate Interface
TAX: Setup Verification
Report
Tax Partner: AR Effective
Tax Rate Update
Supported in E-Business Tax:
Financial Tax Register
Tax Received Report
Tax Reconciliation Report
Tax Register
Tax-only: open invoices
report
US Sales Tax report for tax
partners
SUBLEDGER ACCOUNTING
What changed:
SLA draft Accounting provides a draft view of accounting prior to
posting
Changes can be made to accounting setup, negating need for
CCID Corrections form
Required steps:
No action required if AutoAccounting is adequate
setup SLA if you need more robust account creation functionality
than AutoAccounting
COGS AND REVENUE MATCHING
What changed:
Report removed
Revenue Recognition triggers COGS recognition via API called by
Costing product
Required steps:
No action required in Receivables
AR CUSTOMER SUPPLIER NETTING
What changed:
AR Customer Supplier Netting Report retired
Replaced by centralized, automated netting feature
Required steps:
Setup AP/AR Netting
ON ACCOUNT CREDIT MEMO REFUND
What changed:
Refund no longer creates miscellaneous receipt
Interface to Payables via Oracle Payments will create refund
automatically
Required steps:
Setup refund Receivables Activity in AR
Oracle Payments Setup
CONSOLIDATED BILLING
What changed:
Consolidated Billing creation and print programs retired
New Balance Forward Billing feature
Required steps:
No Action required for existing consolidated billing
Define Balance Forward Billing Cycles
Assign Billing Cycle to Payment Terms
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
CENTRALIZED PAYMENT PROCESS
DESCRIPTION
Common Engine for Payment Transactions
Oracle
Payables
Oracle
Receivables
Oracle Order
Management
Other Oracle
Modules

Oracle
Payments

Financial
Institutions
Credit Card
Processors
DESCRIPTION
Leverages Oracle Payments Funds Capture
Oracle Payments stores external bank accounts and
payment information
Centralized data encryption
Centralized processing for automatic payment method
DESCRIPTION
R12 New prompt: Receipt Method
AR Payment Method is renamed to Receipt Method
Receivables UI modified for payment attributes:
Transactions Workbench
Receipts Workbench
Receipt Classes Setup forms
Funds Transfer Error Handling Form
Bills Receivables
New Payment Details tab on Customer Standard form
SETUP AND PROCESS
Remittance
Processing
Method of creation:
Automatic Receipt
Receipts API
Prepayment API
Receipt Workbench
Automated process
SETUP
PROCESS
Configure Funds
Capture Processing
(Oracle Payments)
Create receipt classes
and receipt methods
(Oracle Receivables)
Assign receipt methods
and instruments to
customer site or
account
(Oracle Receivables)
Create Receipt
Oracle Payments
performs:
(1) Funds capture or
(2) Remittance file
creation
Method of creation:
Auto Invoice
Invoice API
Transaction Workbench
Create Invoice
CENTRALIZED PAYMENT PROCESS SETUP
CREATE RECEIPT CLASS/METHOD
Create automatic receipt method:
1. Enter Automatic for Creation Method
When a Creation Method of Automatic is selected
A Remittance Method = No Remittance is not allowed
The only values available for the Remittance Method are
Standard, Factoring, and Standard and Factoring
2. Enter Payment Method for funds transfer processing
Note that this payment method has been defined in Oracle
Payments.
Changes:
Receipt Method was previously called Payment Method
Payment Method under Funds Transfer Processing region was
previously called Payment Type
PROCESS INVOICE PAYMENT
When you create an invoice, payment details are defaulted
from the customer setup
You may overwrite the information.
Select Instrument button invokes a new window in which
you can either:
Select from an existing list of instrument numbers
Create a new instrument number
CENTRALIZED PAYMENT PROCESS ERROR
HANDLING
The Correct Funds Transfer Error form is used for:
Credit Card and Bank Account Transfer errors
Error Handling for automatic payments
CENTRALIZED PAYMENT PROCESS SETUP
CUSTOMERS PAYMENT DETAILS
Use the Payments tab to:
Assign primary Receipt Method for the customer
Zoom in to Payment Instruments to view existing
instruments such as:
Credit card
Bank transfer accounts
Zoom in to Payment Instruments to create new payment
instruments
Oracle Payments
New data model for customer accounts
New data model for payment information
Transaction Payment-Extension entity
UI components
Upstream products
Interface key reference to transaction payment-extension entity
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
AUTOMATED REFUNDS DESCRIPTION
Automate refund process for non-credit card transactions
Leverage AP workflow approval
AP transacts refunds via Oracle Payments
AUTOMATED REFUNDS SETUP AND PROCESS
Request
Refund
Process
Refunds
or On
Account?
Fund Disbursement
(Oracle Payments)
On account
Refund
Automated
process
SETUP PROCESS
Setup Receivables
Activity for Refund
Create on account
credit
Workflow approval
process
Workflow
remittance process
Oracle Payables
Setup Transaction
Source: Receipt
Handling for Credits
Create credit memo
(Auto Invoice)
AUTOMATED REFUNDS SETUP RECEIVABLES
ACTIVITY
Refund activity type is applicable for automated non-credit
card refunds
You must create a Receivables Activity with this Refund
type to process your automated AP refund.
Credit Card Refund activity type is still available for credit
card refund only.
AUTOMATED REFUNDS SETUP TRANSACTION
SOURCES
Set Receipt Handling for Credits to Refund in your
transaction source
Applicable for both automated credit card refunds and
automated AP (non-credit card) refunds
For credit card transactions, Receivables submit the
refund request to Oracle Payments directly
For non-credit card transactions, Receivables
submits the refund request to AP, which in turn
submits the request to Oracle Payments
Credit Card Refund has been replaced with Refund
for Receipt Handling for Credits
AUTOMATED REFUNDS SETUP TRANSACTION
SOURCES
No user interaction is needed.
Create credit memos via Auto Invoice
Refunds are automated
View refund status in AP workbench
AUTOMATED REFUNDS PROCESS
APPLICATIONS FORM
To create manual refund, apply the receipt to Refund
For Refund application, the button Refund Attributes is
enabled
Click on this button to view and update your refund attributes
AUTOMATED REFUNDS PROCESS
NEW REFUND ATTRIBUTES FORM
Refund Attributes:
Customer Name
Default
Customer Number
Refund Payment Method
Customer Address
Party Bank Account
Delivery Channel
Pay Alone
Remittance Message 1,2,3
AUTOMATED REFUNDS PROCESS VIEW
REFUND STATUS
Use Refund Status to view the refund status in AP
Refund status is not applicable for credit card refund
Oracle Payables
Automated refund for non-credit card transactions
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
AP/AR NETTING DESCRIPTION
AP/AR Netting automatically compares Payables to
Receivables and creates the appropriate transaction in each
system to net supplier invoices and customer invoices
A receivables user can
View netted receipt details directly from the receipt
Create Netting Agreements and Netting Batches
The AR Customer Supplier Netting Report has been retired
AP/AR NETTING BENEFITS
Increase user productivity and effectiveness with more
automation and integration
AP/AR NETTING PROCESS ACCESS
You can now access forms for creating and updating:
Netting Batches
Netting Agreements
AP/AR NETTING PROCESS ACCESSING
After Querying a netted receipt, you can view details about
the batch by selecting AP/AR Netting from the Action menu
Netted Receipts are created automatically by the AP/AR
Netting process
You cannot update Netted Receipts from the Receipts
Workbench
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
DAILY REVENUE DESCRIPTION
Daily Revenue enables accurate revenue distribution over
all accounting periods, including full and partial periods
It fulfills stringent accounting standards introduced by the
US GAAP and SOX for recognizing revenue
Example of a contract that spans from Jan 14th, 2006
through Apr 13th, 2006. We assume the accounting period
defined is Monthly.
This contract spans across 4 accounting monthly periods as
illustrated below:
Jan Feb Mar Apr
|------|----------|------------|------|
1/14 2/1 3/1 4/1 4/13
January and April are partial periods
February and March are full periods
Revenue accuracy is to the number of days in the
accounting period.
Formula to calculate Daily Revenue Rate:
Daily Rate =
Total Revenue
Total Number of Days (for the entire duration)
Example:
Contract valid from 14-Jan-2006 to 13-Apr-2006 (90 days
total)
Assume total revenue is $900
Daily Rate = $900/90days = $10/day
Revenue amount per accounting period is based on Daily
Revenue Rate
R11i vs. R12 revenue distributions
Example: 6 months service (17-Apr-2006 to 16-Oct-2006) at $600 total.
Calculated daily revenue rate: 600/183 = 3.28
GL Date Revenue
Period
R11i
Revenue
R12 Daily Rev.
All Periods
R12 Daily Rev.
Partial Periods
# of Days
Apr 17 Month of Apr 100 45.91 45.91 14
May 17 Month of May 100 101.64 100.33 31
June 17 Month of Jun 100 98.36 100.33 30
July 17 Month of July 100 101.64 100.33 31
Aug 17 Month of Aug 100 101.64 100.33 31
Sept 17 Month of Sept 100 98.36 100.33 30
Oct 16 Month of Oct ----- 52.45 52.44 16
600 600 600 183
DAILY REVENUE SETUP AND PROCESS
Create an invoice line
With accounting rule.
(manual or imported)
Create
accounting
Is it
daily revenue
rule?
Enter Rule
End Date
Post accounting
View accounting
Adjust accounting
Yes
No
Automated process
Create accounting
rule with
Daily Revenue type
SETUP PROCESS
DAILY REVENUE SETUP ACCOUNTING RULES
Two new accounting rule types have been added for Daily
Revenue:
Daily Revenue Rate, All Periods. For this type, all periods use daily
revenue rate.
Daily Revenue Rate, Partial Periods. For this type, partial periods
use daily revenue rate, full periods are prorated.
Two existing accounting rule types have been renamed:
Fixed Schedule (Previously named Fixed Duration)
Variable Schedule (Previously named Variable Duration)
DAILY REVENUE PROCESS CREATE INVOICE
LINE
Invoice line can be created via:
Auto Invoice or Invoice API
Transactions Workbench
For the Daily Revenue rule, you must enter a Rule End
Date
The Rule End Date must be on or after Rule Start Date
General Ledger
Define accounting periods in General Ledger
Order Management, and Service Contracts
Interface invoice lines to Receivables
Default or assign Daily Revenue accounting rules onto sales order
lines or service lines
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
REVENUE CONTINGENCIES OVERVIEW
US GAAP and SOX compliance for revenue recognition
User definable revenue contingencies
User definable assignment rules
Enhanced RAM wizard or Revenue Adjustment API
Increase security with restricted access
REVENUE CONTINGENCIES DESCRIPTION
Automatically time revenue recognition in accordance with
the removal of Revenue Contingencies as required by US
GAAP and IAS
Enhancements to Event Based Revenue Management
functionality
Enabled for imported and manual transactions
User definable contingencies. New UI in Receivables.
User definable defaulting rules for contingencies assignment
Support for parent-child (e.g. Product and Service)
relationship.
REVENUE CONTINGENCIES DESCRIPTION
Pre-billing Customer Acceptance is supported by Order
Management, Service Contracts and Receivables
Manage contingencies or revenue using Revenue
Accounting Module (RAM) wizard and API
Revenue Managers Responsibility restricted access
REVENUE CONTINGENCIES SETUP AND
PROCESS
Define
contingencies
Define
defaulting rules
Create invoice line
Evaluate
assignment rules
Is the
revenue
policy
met?
Assign Customer
Creditworthiness,
Extended Payment
Term, and/or
Refund
contingencies
Defer Revenue if
contingencies
exist
Assign contingencies if
criteria is met
No
Yes
Automated process
Define policy
threshold
SETUP PROCESS
Recognize revenue or
continue deferring revenue
Assign
Contingencies
Recognize Revenue
Run Revenue Contingency
Analyzer to detect expired
contingencies
REVENUE CONTINGENCIES SETUP POLICY
THRESHOLD
On the Revenue Policy form, you must setup a policy
for each operating unit:
Select an Operating Unit
Enter customer credit classifications
Enter your company policy threshold
REVENUE CONTINGENCIES SETUP
SEEDED CONTINGENCIES
Receivables seeds the contingencies
You cannot update or delete seeded contingencies.
You can duplicate the contingencies and modify the copy as
needed, or you can create new contingencies
Receivables also seeds removal events
You cannot delete, modify or create removal events
Removal events available are: Contingency Expiration, Customer
Acceptance, Invoicing, Payment, and Proof of Delivery
REVENUE CONTINGENCIES SETUP
CONTINGENCY CODES/ID
R11i mapped to R12
Contingency Code
AR_ACCEPTANCE
AR_CUSTOMER_CREDIT

AR_COLLECTIBILITY
AR_PAYMENT_TERM
AR_CANCELLATION
AR_FISCAL_FUNDING
AR_REFUND
AR_FORFEITURE
OKL_COLLECTIBILITY

LNS_IMPAIRED_LOAN
ID Contingency Name
2 Explicit Acceptance
3 Customer
Creditworthiness
4 Doubtful Collectibility
5 Extended Payment Term
7 Cancellation
8 Fiscal Funding Clause
9 Refund
10 Forfeitures
12 Leasing Doubtful
Collectibility
13 Impaired Loans
REVENUE CONTINGENCIES SETUP CREATE
RULES
Define your assignment rules to meet your business needs
Receivables does not seed any rule for revenue
contingency
You must set up all rules using any of the seeded matching
criteria attributes
REVENUE CONTINGENCIES PROCESS
CONTINGENCY ASSIGNMENT
Create invoice line
Evaluate
assignment rules
Is the
revenue
policy
met?
Assign Customer
Creditworthiness,
Extended Payment
Term, and/or Refund
contingencies
Defer Revenue if
contingencies
exist
Assign contingencies if
criteria is met
No
Yes
Automated process
PROCESS
Run Revenue Analyzer
to detect expired
contingencies
Recognize revenue or
continue deferring
revenue
Assign Contingencies
Recognize Revenue
Feeder Systems such
as Order
Management and
Service Contracts
Manual Transactions
REVENUE CONTINGENCY PROCESS
MANAGE CONTINGENCIES
The Revenue Accounting form is used to manage your
revenue
To view your contingencies, go to Line Revenue
Contingencies region
To expire or remove a contingency, set the Estimated
Expiration Date to todays date.
You cannot:
Add a new contingency
Update contingency name
Auto Invoice and Invoice API
You may interface contingencies
Auto Invoice or Invoice API default contingencies
Manual transactions
Receivables defaults contingencies
Order Management, and Service Contracts
Support Pre-billing Acceptance
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
COGS AND REVENUE MATCHING
DESCRIPTION
Ensures that COGS and Revenue recognition occur
in the same accounting period
Developed by Costing, Order Management and
Receivables. This TOI covers the Receivables part
Receivables provides the ratio between earned and
unearned revenue to Costing
Obsolescence of Receivables COGS and Revenue
Matching report.
For complete information on this feature, please
refer to Costing and Order Management
documentation.
COGS AND REVENUE MATCHING BENEFITS
Automate the synchronization of the Revenue and COGS
recognition
Obsolescence of Receivables COGS and Revenue
Matching report
COGS AND REVENUE MATCHING PROCESS
COGS RECOGNITION
No user interaction is needed in AR.
Cost Management
Performs COGS recognition (or Cost Accounting)
Integrates with Receivables for revenue information
Order Management
Provides order and return information to Costing
Integrates with Receivables for invoice creation
Notifies Costing when an order is closed without billing
AGENDA
Legal Entity
eBusiness Tax
Receivables
Obsolescence and
Centralized Payment
Process
Automated Refunds
AP/AR Netting
Daily Revenue
COGS and Revenue
Matching
MULTI-ORG ACCESS CONTROL DESCRIPTION
Belgium
OU

EMEA-1
Responsibility
Perform tasks for multiple operating
units without changing responsibilities
Holland
OU

EMEA-1
Responsibility
Denmark
OU

EMEA-1
Responsibility
MULTI-ORG ACCESS CONTROL BENEFITS
Improve efficiency
Easily access transactions from different operating units
Improve Shared Services operations
Provide more information for decision making
Global consolidated view of transactions across operating units
Reduce Costs
Cut down processing time
RECEIVABLES & MULTI-ORG ACCESS
CONTROL
The Operating Unit field:
Is mandatory
Defaults from the value that has been set for profile MO:
Default Operating Unit
Is attached to a list of values that lists all operating units that
you have access to
Is not used with:
Payment terms
Aging bucket forms
CONTROL
Multi-Org Access Control functionality is also available on
Transactions and Bills Receivables forms
Sources are defined per operating unit
The list of values for Source shows all Sources for the
operating units that exist for the user session
CONTROL
Multi-Org Access Control functionality is also available on
the Receipts form.
Receipt Methods have remittance banks, which are defined
per operating unit
The list of values for Receipt Method shows all Receipt Methods
that have banks in the operating units that exist for the user
session
MULTI-ORG ACCESS CONTROL PROCESS
You can submit Concurrent requests for all
operating units in the user session or for a specific
operating unit that you select.
You can select the operating unit from a list of
values that lists all the Operating Units to which you
have access.
Many concurrent processes can run for all
operating units in your security profile, including:
Auto Invoice
Auto Receipt Creation
Statements
Revenue Contingency
MULTI-ORG ACCESS CONTROL REPORTING
All reports can be submitted for just one operating unit
Cross organization accounting reports can still be submitted
for a whole ledger
These reports now run for all operating units to which you have
access when the reporting level is set to Ledger
MULTI-ORG ACCESS CONTROL REPORTING
PROCESS
Submit reports
The reports that can run for all operating units in the users
security profile are listed in the notes for this slide.

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