TRIUNE TECHNOLOGIES

ACCOUNTS RECEIVABLES

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ACCOUNTS RECEIVABLES PROCESS FLOW

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TRANSACTIONS IN AR
• TYPES OF TRANSACTIONS IN AR -
– Debit memos
– Credit memos
– On-account credits
– CHARGEBACKS ( Definition: A credit card transaction that is billed back to the
merchant after the sale has been settled. Chargebacks are initiated by the card issuer on
behalf of the cardholder. Typical cardholder disputes involve product delivery failure or
product/service dissatisfaction)
– Commitments
– Invoices

You should define your transaction types in the following order:

– Credit memo transaction types
– Invoice, debit memo, and chargeback transaction types
– Commitment transaction types

INVALIDATING A TRXN TYPE – To be able to void a debit memo, credit memo, on-account
Credit or invoice, define a Void transaction type with ’Open Receivables’ and ’Post to GL’ set
to
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No. Then, as long as there is no activity against the transaction and it has not been posted to your
BILLS RECEIVABLE REMITTANCE
• STANDARD BILL RECEIVABLE:
 You remit bills receivable to your bank, and the bank manages the collection process.
 On the bill receivable maturity date, the bank collects payment in full from your customers and transfers
the funds directly to your bank account, less any fees or other charges.
 With standard remittances, you bear the financial risk of customer default.

• FACTORED BILL RECEIVABLE:

 You remit bills receivable as collateral in return for cash advances or loans from your bank.
 Receivables creates a receipt for the bill receivable upon remittance. If the bill receivable is factored with
recourse, you bear the financial risk of customer default, and Receivables records a short-term debt for
the default risk.
 If the bill receivable is factored without recourse, the bank assumes the risk of customer default, and
Receivables closes the bill upon creation of the receipt.

When you create a bills receivable remittance, the receipt class determines the remittance processes, and the
bills receivable remittance payment method that is assigned to the receipt class determines the accounting for
the bills receivable.

Receivables selects qualifying bills receivable for remittance and groups them according to the remittance bank
that is assigned to each bill. You can specify additional selection criteria to limit the bills receivable that are
selected for remittance.
ACCOUNTING RULES

Define accounting rules to create revenue recognition schedules for your invoices. Accounting rules
determine the number of periods and percentage Revenue to record in each accounting period You
can use accounting rules for Transactions that you import into Receivables using Auto Invoice and
with
invoices you create manually in the Transaction windows. You can define an unlimited of accounting
rules.

When you run the Revenue Recognition program for an invoice that is associated with one or more
accounting rules, Receivables creates the invoice’s revenue distributions in the period or periods in
which
the rules fall.

Note: Revenue Recognition creates accounting distributions for all periods of status Open, Future, or
Not Open. If any period has a status of Closed or Close Pending, then Revenue Recognition creates
the distributions in the next Open, Future, or Not Open period.

DEFINING ACCOUNTING RULES –

ACCOUNTING TYPES –
’Accounting, Fixed Duration’ to prorate revenue recognition evenly over a predefined period
of time.
’Accounting, Variable Duration’ to be able to specify the number of over which you want to
recognize revenue for invoices to which you assign rule.
4.
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AGING BUCKETS

Aging buckets are time periods you can use to review and report on your open receivables.
For example, the 4-Bucket Aging bucket that Receivables provides of four periods: -999 to 0 days past
due, 1 to 30 days past due, 31-60 days past 61-91 days past due.
When you create your Collections reports or view your customer accounts, you can specify an aging bucket
and ’as of date’, and Receivables will group the transactions and their amounts in the appropriate days past
due period.
 You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket.
However, all Receivables aging reports include a maximum of the first seven time periods for an aging
bucket.
Aging buckets that you define here appear as list of values choices in the Aging, Print Statements, and the
Print Collection Reports windows.
You can make an aging bucket inactive by changing its status to ’Inactive’ and then saving your work.
4-Bucket Aging: Use this type to define an aging bucket with four periods. Receivables displays this aging
bucket in the list of values when you print the ’Aging - 4 Buckets’ report.
7-Bucket Aging: Use this type to define an aging bucket with seven periods. You can print 7-Bucket Aging
reports that sort by either amount or salesperson. Receivables displays this aging bucket in the list of values
when you print the ’Aged Trial Balance 7 Buckets By Amounts’ or ’Aging - 7 Buckets By Salesperson’
report.
Credit Snapshot: Receivables displays this aging bucket in the list of values of the Print Collections Report
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window when you print the Customer Credit Snapshot report.
AGING BUCKETS
AGING BUCKET LINE TYPES –

Current: Display transactions that are not yet due.

Past Due: Display transactions that have a number of days past due in the range you specify for this line. For
example, if Days From is 10 and Days To is 15 for this line, Receivables displays transactions that are
between 10 and 15 days past due in this line.

Dispute Only: Display transactions that are in dispute with your customer. You can only have one line of
this type per aging bucket. If you do not specify a line of this type, Receivables prints disputed debit items in
the appropriate aging periods. You do not specify a Days From and Days To past due range for this type.

Pending Adjustment Only: Display transactions that have pending adjustments. You can only have one line
of this type per aging bucket. If you do not specify a line of this type, Receivables prints your transactions
that have pending adjustments in the appropriate aging periods. You do not specify a Days From and Days
To past due range for this type.

Dispute and Pending Adjustments: Display transactions that are in dispute and transactions that have
pending adjustments in this line. You can only have one line of this type per aging bucket. You do not specify
a Days From and Days To past due range for this type.

Future: Display transactions that will be due in the future. For example, if the current date is April 5 and the
due date range for this line is Days From: -10 and Days To: -5, items with a due date between April 10 and
April 15 will appear in this line.
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 APPLICATION RULE SETS

Application rule sets specify the default payment steps for your receipt applications and how discounts affect
the open balance for each type of associated charges. By defining your own application rule set, you can
determine how Receivables reduces the balance due for a transaction’s line, tax, freight, and finance charges.

Receivables provides the following application rules:

• Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the
following order: tax, freight, and then finance charges.
• Line and Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax
amount for each line. Apply any remaining amount to freight and then to finance charges.
• Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.

TAX TREATMENT –
If you chose a Type of ’Line’, choose a Tax Treatment. Choose one of the following:
Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated
tax.

ROUNDING CORRECTION - When an amount is prorated among several line types, Receivables must use
one of the line types to account for the rounding adjustment. Each application rule set must have one and only
one rounding correction line type.

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NOTE- Assign the Rounding Correction to the line type that is usually the largest portion of your invoices.
APPROVAL LIMITS
Use the Approval Limits window to define approval limits for:
Adjustments: When you enter an adjustment that is outside your approval limit range,
Receivables assigns the adjustment a status of Pending until someone with the appropriate
approval limits either approves or rejects it.
Receivables uses approval limits that have a document type of Adjustment when you create
an adjustment in the Adjustments, Submit Auto Adjustments, and Approve Adjustments
windows. Define Adjustment approval limits by currency and amount.
Credit Memo Requests: The Credit Memo Request Approval Workflow uses approval
limits that have a document type of Credit Memo when forwarding credit memo requests
from I-Receivables. The workflow sends a notification to an approver if the request is
within the approval limit range for the currency and reason code specified.
Credit Memo Refunds: When you attempt to electronically refund an on-account credit
memo, Receivables uses approval limits that have a document type of Credit Memo
Refund.
Receipt Write-Offs: When you write off an unapplied receipt amount or an underpayment
on a receipt, Receivables uses approval limits that have a document type of Receipt Write-
off. You cannot write off a receipt amount that is outside your approval limit range.
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AUTO ACCOUNTING
Auto Accounting is used by Oracle Receivables to derive the segment values for the GL accounts. Auto
Accounting is called when creating transactions manually or through Auto invoice. It is used for Invoices,
Credit Memos and Debit Memos. Auto Accounting is the process that builds the full accounting flex field
account for the various GL accounts used in Receivables. TYPES OF ACCOUNTS –

• Receivable Account – This account is used to specify your receivable amounts. This account cannot be
based on your inventory item or tax
• Revenue Account – This account is used to specify your revenue amounts. This account cannot be based
on tax code.
• Freight – This account is used to specify your freight amounts. This account cannot be based on tax code.
Note:
• Tax – This account is used to specify how you want Receivables to determine the account for your sales
tax lines.
• Unbilled Receivable – This account is used for transactions with invoice and accounting rules. If your
accounting rule recognized revenue before your invoicing rule bills it, this amount will be posted to your
unbilled receivable account.
• Unearned Revenue – This account is used for transactions with invoice and accounting rules. If your
accounting rule recognized revenue after your invoicing rule bills it, this amount will be posted to your
unearned revenue account.
• Auto Invoice Clearing – This account is used to specify the clearing account for your imported
transactions. This was formerly referred to as the suspense account. Oracle Receivables uses this clearing
account to hold any difference between the specified revenue amount and the selling price times the 10
quantity for imported invoice lines.
AUTO ACCOUNTING

Auto Accounting is used in conjunction with the GL Accounting Key Flex field. The accounting flex field is
the full account number. It is comprised of multiple segments, such as Company, Account and Department.
Each segment is based on either a constant value or a value based on a table.
TYPES OF TABLES : Transaction Type, Bill To Site, Sales Reps, Standard lines, Taxes
Transaction Types - This will take the account segment from the Transaction type that is populated on the
Transaction. When you choose this table, make sure to enter the corresponding accounts for you transaction
types. To set these up Menu: Setup > Transactions > Transaction Types
Sales Reps – This will take the account segment from the Salesperson attached to your transaction. When you
choose this table, make sure to enter the corresponding revenue and receivable accounts in the Salesperson
form. To set these up Menu: Setup > Transactions > Salespersons.
Standard Lines – This will take the account segment from the inventory item or the standard memo line
item. This account cannot be used for the Receivable account. To set up the sales accounts for an inventory
item, Menu: Setup > Transactions > Items > Define Items > Invoicing Tab.
Taxes – This will take the account segment from the tax code or in the case of a location based tax code, the
tax location. A default tax code is set up in the System Options form. Menu: Setup > System > System
Options > Accounting Tab. This default tax account will be used to derive the account segment if no tax
account is assigned to the tax code or tax location. If a tax code is used on a Transaction, the account
segment will be derived from the account that you enter on the tax code form. Menu: Setup > Tax > Codes >
More Tab. If a location based tax code is used on a Transaction, the account segment will be derived from
the account on the Tax Location and Rates form. Menu: Setup > Tax > Locations. The ship-to address 11 of
the transaction will be used to determine which location to pull the tax account from the Tax Location and
 AUTO ACCOUNTING
Bill-to Site - This will take the account segment from the transactions bill-to customer location.
Make sure the bill-to location for the customer has accounts define. Navigate: Customers > Standard
Constants - The constants can be entered as alphanumeric. To force these to be entered as an
numeric or a certain range, you would need to define this in your Accounting Flex field. A validation
set can be attached to the account segment. A range can be set up on the value

EXAMPLE-
For the Company Segment , enter a Constant value of 01. For the Account Segment enter the table
name of Transaction Type and for the Department Segment enter the table name of Standard
Lines. Auto accounting will determine the revenue account on your invoices as follows:
For the first segment , it is a constant of 01.
For the second segment, it is based on the Transaction Type. Menu: Setup > Transactions >
Transaction Types Query on the Transaction type that you are using on your invoice. Note
the Revenue account. Assume it is 01-04-78. That means the second segment of 04 will be
used.
For the third segment, it is based on Standard Lines. If the invoice contains an item that you have
defined. Menu: Setup > Transactions > Items > Define Items Query your inventory item.
Go to the invoicing tab and note the Sales Account. In this case 02-04-08. This means that the
third segment of 08 will be used. Auto accounting would build the following account for
revenue on your invoice: 00-04-08. The account or code combination of 00-04-06 must be
valid in GL and must be enabled and postable.
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AUTOCASH RULE SETS

Auto Cash Rule Sets determine the sequence of Auto Cash Rules that Post Quick
Cash uses to update your customer’s account balances. You specify the sequence and
the Auto Cash Rules for each Auto Cash Rule Set. The Auto Cash Rule Sets you
define display as list of values choices in the Customer Site, Customer Profile
Classes, and the System Options windows. Post Quick Cash first checks the customer
site, then the customer profile class, and finally at the system options level to
determine the Auto Cash Rule Set to use.
AUTO CASH RULES –
1. APPLY TO THE OLDEST INVOICE FIRST: This rule matches receipts to debit
and credit items starting with the oldest item first. This rule uses the transaction due
date when determining which transaction to apply to first. This rule uses the values
you specified for this Auto Cash Rule Set’s open balance calculation to determine
your customer’s oldest outstanding debit item.
2. CLEAR THE ACCOUNT: This rule is used only if your customer’s account
balance exactly matches the amount of the receipt. If the receipt amount does not
exactly match this customer’s account balance, Post Quick Cash uses the next rule in
the set.
3. CLEAR PAST DUE INVOICES: This rule is similar to the ’Clear the Account’
rule because it applies the receipt to your customer’s debit and credit items only if the
total of these items exactly matches the amount of this receipt. However, this rule
only applies the receipt to items that are currently past due. 13
AUTOCASH RULE SETS

4. CLEAR PAST DUE INVOICES GROUPED BY PAYMENT TERM: This rule is similar
to the ’Clear Past Due Invoices’ rule, but it first groups past due invoices by their payment
term, and then uses the oldest transaction due date within the group as the group due date.
When using this rule, Receivables can only apply the receipt if the receipt amount exactly
matches the sum of your customer’s credit memos and past due invoices.
5. MATCH PAYMENT WITH INVOICE: This rule applies the receipt to a single invoice,
debit memo, or charge back that has a remaining amount due exactly equal to the receipt
amount.

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AUTO INVOICE
• WHAT? Data for creating invoices comes in from various sources such as external systems,
Order Management, Oracle Projects, Oracle Services and so on. The interface loading
program is run to populate the interface tables. When the Auto invoice Master Program and
Import Program are run, the data passes through certain validation processes and finally
populates the tables of the Oracle Receivables module.
The feeder program populates data into the interface tables,
namely RA_INTERFACE_LINES_ALL,
RA_INTERFACE_DISTRIBUTIONS_ALL and
RA_INTERFACE_SALESCREDITS_ALL
When the Auto invoice program is run, data is populated into the
tables listed
below:
1. RA_BATCHES_ALL
2. RA_CUSTOMER_TRX_ALL
3. RA_CUSTOMER_TRX_LINES_ALL
4. RA_CUST_TRX_LINE_GL_DIST_ALL
5. RA_CUST_TRX_LINE_SALESREPS_ALL
6. AR_RECEIVABLE_APPLICATIONS_ALL
7. AR_PAYMENT_SCHEDULES_ALL
8. RA_INTERFACE_ERRORS_ALL
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AUTO INVOICE
LINE ORDERING RULES –
• These rules are used by Auto invoice to determine the order of the transaction lines on a particular
invoice. When line ordering rules are not defined, Auto invoice orders lines randomly on the
transaction.
• In the Transaction Attribute field, enter the transaction attribute by which lines are to be ordered.

GROUPING RULES –
• Auto invoice uses grouping rules to group lines to create one transaction. Mandatory grouping
attributes cannot be dropped. However, users can add optional grouping attributes.
• The grouping rule ‘DEFAULT’ , is a seeded value, which contains all the mandatory grouping
attributes.
• Lines which have identical values in the columns for mandatory attributes and the optional
attributes, defined in the grouping rule, are grouped into one single transaction.

In the Transaction Class field, enter the class of transaction

name, to which this grouping rule should apply.
Auto invoice uses the following hierarchy to determine the
grouping rule that is to be used: Transaction batch source,
Customer site level , Customer profile level, System Options
Window
NOTE: If a grouping rule is not specified, either, at the
Transaction Source or at the Customer Site level or in the
Customer Profile Classes window, Auto invoice uses the
default grouping rule specified in the System Options.
AUTO INVOICE GROUPING RULES

Auto Invoice uses the following hierarchy to determine which grouping rule to use for a transaction line:
1) The grouping rule specified in the Transaction Sources window for the batch source of the transaction line
2) The grouping rule specified in the Customer Profile Classes window for the bill-to site use of the transaction line
3) The grouping rule specified in the Customer Profile Classes window for the bill-to customer of the transaction line
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4) If you do not specify a rule in either the Transaction Sources or Customer Profile Classes window, Auto Invoice
uses the default grouping rule specified in the System Options window
AUTO INVOICE
TRANSACTION BATCH SOURCE –
• Select a transaction source of type ‘Imported’ from the list of values. Imported batch sources only can be used for Auto invoice.

• Copy Transaction Number to Document Number To use the same value, as both the document number and the transaction number for
transactions assigned to this source, select the Copy Document Number to Transaction Number check box. Checking this box ensures that
transaction numbers are generated sequentially without gaps.

• Last Number The last number is entered in this field. Transactions are created beginning with the next number. Oracle Receivables
automatically updates the last number fields. In order to know the last transaction number that has been used, review the transaction batch
source window.

• Reference Field Default Value The value of the column that you enter here, defaults in the Reference field in your Transactions window ,
just below the Transaction number field. The columns are those which form part of your Invoice Transaction flexfield.

• Credit Memo Batch Source To associate a default credit memo source with this transaction source, enter a credit memo batch source in
this field. This enables numbering the credit memos using a different sequence.

AUTO INVOICE OPTIONS –

• Invalid Line – If “Reject Invoice” is selected and the grouping rule specifies that three transaction lines are to be created as one invoice
and one of the transaction lines has an error, Auto invoice rejects all the three transaction lines and does not create an invoice. However, if
Create Invoice is selected, Auto invoice rejects only the invalid transaction line and creates an invoice for the remaining two valid
transaction lines.

• GL Date in a Closed Period - If set to “Adjust” AI automatically adjusts the GL date to the first GL date of the next open or future
enterable periods or select Reject to reject these transactions, from being processed by Auto invoice.

• Create Clearing Auto invoice requires that the revenue amount should be equal to the selling price times the quantity for all of the
transactions it is processing. Select the Create Clearing check box to put any difference between the revenue amount and the selling price
times the quantity for a transaction, into the Auto invoice Clearing account.

• AUTO INVOICE ACCOUNTING ASSIGNMENTS - Provide the account assignment information by populating the
RA_INTERFACE_DISTRIBUTIONS_ALL table. The CODE_COMBINATION_ID or SEGMENT 1- 30 is to be populated depending
on the batch source setup.
BANKS
• Receivables and Payables, share bank definitions
• Each bank branch can have multiple bank accounts, and each bank account you define can be associated
with
• Payables payment documents and/or Receivables payment methods.
• A “ Clearing House” is set up to record banks that process electronic versions of your receipt information
which you send to them. These clearing institutions then create copies of your customer receipt
information which they forward to each of your remittance banks.

• COLLECTORS - Define collectors and assign them to a profile class or to a customer’s credit profile
class. When you assign a collector to a profile class, that collector becomes the collector for all customers
assigned that profile class. You can print collector names and telephone numbers on dunning letters you
send to your customers for past due items.

• DISTRIBUTION SETS –
– Used to account for your non-invoice related receipts.
– Can include refunds, revenue from the sale of stock, as well as interest and investment income.
– Distribution sets are predefined groups of general ledger accounting codes that determine the credit accounts for
positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts.
– Let you speed your receivables accounting by reducing time spent on data entry.

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 DUNNING LETTERS
• Receivables lets you create dunning letters using two different methods. You can use one of
the ten dunning letters that Receivables provides, or create your own, custom dunning letters in
the Dunning Letters window.
• The ten dunning letters that Receivables provides include text files that you can customize to
suit your dunning needs. Each of these letters (entitled USER1 - 10) includes two flat files: one
for the body of your dunning letter text and the other for footer information. These files reside
in the Receivables $AR_TOP/reports directory. For example, the dunning letter USER1 has a
body file of ardl1b.txt and a footer file of ardl1f.
• You can also use the Dunning Letters window to create the body and footer text of your own,
custom dunning letters. You can create as many dunning letters as you need using this window.
SUBSTITUTION VARIABLES –
Embed field variables in your body text and footers using &_field.
Receivables supports the following field variables:
&F_collector_name: Collector Name
&F_collector_telephone: Telephone Number of Collector
&F_customer_name: Customer Name
&F_customer_number: Customer Number
For example, the text "Dear &F_customer_name" expands to "Dear ACME
Pharmaceuticals" when you print your dunning letters for this customer.
When you use these variables in the templates USER1 - USER10, you must enter
them as shown above (i.e. initial capital letter followed by all lowercase letters).
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DUNNING LETTERS
Quick notes for Dunning Letter in EBS R12
• The AR Dunning Letters is obsolete in R12.
• The AR Collections Workbench is obsolete in Release 12.
• You will need to install the Oracle Advanced Collections application.
• The basic Collections functionality is available in Oracle Advanced Collections without any extra cost.
– However, if you wish to use the more complex functionality in the Oracle Advanced Collections, you will need
to pay for license cost.
• In R12 Advanced collections, you will now need to run Oracle Advanced Collections Dunning Plans instead.
• To using the Dunning Plan basic functionality you do not require Oracle Advanced Collections license.
• The Dunning process in R12 Collections is based on Scoring. You can set it up so that a particular score is associated
to a Dunning Letter Plan. Then only allow that one customer to get that score.
• Dunning Plans in Advanced Collections replace Dunning Letters in 11i AR , thus dunning Plans will need to be
setup.
• Staged Dunning Letters does not exist in R12 Collections rather can be used the Standard Dunning Plans in R12 of
Collections. However, for a more complex timing and use of Dunning letters you will want to setup the highly
configurable Strategies and send your letters in this manner.
• Customer interactions and correspondence, transaction processing, and dunning activities are consider as basic
functionality whereas scoring, collections strategies, enhanced payment and promise processing, automated promise
tracking, and automated collector work assignment are consider as advance feature of product.
• In R12, dunning functionality is executed by XML Publisher.
• These are some of seeded template for Dunning in R12.
• It is anticipated that Dunning Letters can be delivered via e-mail, fax or print.
• IEX is application code 782 is product code for Advance Collections.
• Dunning Plans include aging bucket parameters for all data levels (customer, account, bill-to, transaction) in Oracle
Advanced Collections. That mean A collections manager can configure dunning plans that look at the oldest aged
invoice for each customer, along with the score, and have the system send different dunning letters to customers in
 FREIGHT CARRIERS
• Define freight carriers to assign additional freight charges to your transactions. You use freight
carriers for internal transfers between organizations as well as shipments to and from customers and
vendors.

DEFINING FREIGHT CARRIERS –

1. Navigate to the Freight Carriers window.
2. Enter a unique Carrier Name.
3. Enter a Description for this carrier (optional).
4. Enter the general ledger Distribution Account that collects the costs associated with using this carrier. You use this
account when you perform an inter-organization transfer and specify freight charges.
5. Enter the date that this carrier is Inactive After (optional). As of this date, you can no longer assign the freight
carrier to any function within Receivables.

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 LOCKBOXES
• WHAT? Auto Lockbox is a service that commercial banks offer corporate customers to
enable them to outsource their accounts receivable payment processing. Auto Lockbox
eliminates manual data entry by automatically processing receipts that are sent directly to
your bank. You can also use Auto Lockbox for historical data conversion. For example, you
can use Auto Lockbox to transfer receipts from your previous accounting system into
Receivables. Auto Lockbox ensures that the receipts are accurate and valid before
transferring them into Receivables.
Auto Lockbox is a three step process:
1. Import: During this step, Lockbox reads and formats the data from your bank file into
interface table AR_PAYMENTS_INTERFACE_ALL using a SQL *Loader script.
2. Validation: The validation program checks data in this interface table for compatibility with
Receivables. Once validated, the data is transferred into Quick Cash tables
(AR_INTERIM_CASH_RECEIPTS_ALL and AR_INTERIM_CASH_RCPT_LINES_ALL)
. At this point, you can optionally query your receipts in the Quick Cash window and change
how they will be applied before submitting the final step, Post Quick Cash.
3. Post Quick Cash: This step applies the receipts and updates your customer’s balances.

• NOTE - These steps can be submitted individually or at the same time from the submit
Lockbox Processing window. After you run Post Quick Cash, Receivables treats the receipts
like any other receipts, you can reverse and reapply them and apply any unapplied,
unidentified, or on-account amounts.
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LOCKBOXES

HOW AUTOLOCKBOXES IDENTIFIES CUSTOMERS FOR A RECEIPT

– Customer Number: If you provide a customer number for receipts that you import
through Auto Lockbox, Receivables can identify the customer to which the
receipt belongs .
- MICR Number: The MICR (Magnetic Ink Character Recognition) number that
appears on each receipt relates the customer to a bank. Lockbox only uses MICR
numbers to associate a customer with a receipt if both of the following are true:
1. The customer number is not included in the transmission format
2. The MICR number is passed: A MICR number consists of two segments. The
first segment is the Transit Routing number, this identifies the bank from which
your customer draws their check. The second segment identifies your customer’s
account at that bank.
- Auto Associate: If the customer cannot be identified from either the MICR number
or the customer number (for example, if the transmission does not include this
information), you can use Auto Associate to determine the customer using
matching numbers. A matching number can be a transaction number,
consolidated billing invoice number, sales order number, purchase order number
or another custom defined number.
- Associate Receipts with Billing Locations: Receivables also lets you track receipts
for each of your customer’s billing locations. To use this feature, you must
include a billing location in your transmission format, data file and the flag
Require Billing Location should be set to Yes. This option should be set to yes
both at system options and at the setup of Lockbox. If the box is checked at the
Lockbox, the receipt will be validated only if the billing location is provided.
The setting at the system options level determines whether Post Quick Cash can
process receipts with / without billing locations.
LOCKBOXES
HOW AUTOLOCKBOXES APPLIES RECEIPTS –
If Lockbox is able to identify the customer for a receipt and the transaction number is provided ,
Lockbox applies the receipt to this transaction. If the transaction number is not provided and Auto
Associate is set to Yes, Post Quick Cash uses the matching rules defined for the customer site, customer
or Lockbox to apply the receipt. The setting of Match Receipts By Option tells what type of matching
number is passed in the transmission. If Matching Rules fail, Post Quick Cash applies the receipt using
the Auto Cash rules set . If Auto Cash rules also fail, Lockbox assigns the receipt a status of Unapplied.
If the transaction number is not provided and Auto Associate is set to No, Post Quick Cash assigns the
receipt a status of Unapplied.
PAYMENT METHODS –
• Payment methods are used to account for your receipt entries and applications. Payment methods also
determine a customer’s remittance bank information.
• You can assign multiple remittance banks to each payment method, but only one bank account can be
the primary account for each currency.
Number of Receipts Rules
• When defining payment methods for a receipt class with an Automatic creation method, you can choose
from the following receipts rules:
– One Per Customer: Create one payment for each customer.
– One Per customer and Due Date: Create one payment for each customer and due date. This option creates
several payments for a customer if a customer’s invoices have several due dates.
– One Per Site: Create one payment for each site.
– One Per Invoice: Create one payment for each invoice.
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One Per Site and Due Date: Create one payment for each customer site and due date.
PAYMENT TERMS -
• Receivables lets you define standard payment terms for your
customers to specify the due date and discount date for their
open items.
• Payment terms can include a discount percent for early
payment and you can assign multiple discounts to each
payment term line.
EXAMPLE: The payment term ’2% 10, Net 30’ indicates
that a customer is allowed a two percent discount if payment
is received within 10 days; after 10 days, the entire balance is
due within 30 days of the transaction date with no applicable
discount. DISCOUNT INFORMATION –
Receivables lets you either distribute tax and freight charges across
all Receivables lets you assign discounts to
installments, or allocate all freight and tax amounts in the first your payment terms. You can also assign
installment of a split term invoice. multiple discount line terms to each
DEFAULT PAYMENT TERM HIERARCHY – installment of your payment terms.
1. Bill-to site Example: you might give your customer a
2. Customer Address 10% discount if they pay within 10 days,
3. Customer but only a 5% discount if they pay 11 to 20
4. Transaction Type days after the invoice date.
PREDEFINED PAYMENT TERMS –
• 30 NET: The balance of the transaction is due within 30
days.
• IMMEDIATE: The balance of the transaction is due
immediately (i.e. on the transaction date). You can use 26
this payment term with your charge backs and debit
RECEIVABLE ACTIVITIES -
Receivables activities are used to default accounting information for certain activities, such as miscellaneous
cash,
discounts, finance charges, adjustments, and receipt write-off applications.
ACTIVITY TYPES –
– Adjustment: You use activities of this type in the Adjustments window.
– Bank Error: You use activities of this type in the Receipts window when entering miscellaneous receipts.
You can use this type of activity to help reconcile bank statements using Oracle Cash Management.
– Claim Investigation: You use activities of this type in the Receipts Applications and Quick Cash windows
when placing receipt overpayments, short payments, and invalid Lockbox transactions into claim
investigation.
– Credit Card Refund: You use activities of this type in the Receipts Applications window when processing
refunds to customer credit card accounts.
– Earned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows.
– Electronic Refund: Use activities of this type in the Applications window, off the Transactions Summary
window, when processing electronic refunds for on-account credits.
– Endorsements: The endorsement account is an offsetting account that records the endorsement of a bill
receivable.
– Finance Charge: You use activities of this type in the Customers and System Options window.
– Miscellaneous Cash: You use activities of this type in the Receipts window when entering miscellaneous
receipts.
– Payment Netting: You use activities of this type in the Applications window and in the QuickCash Multiple
Application window when applying a receipt against other open receipts.
– Prepayments: Receivables uses activities of this type in the Applications window when creating prepayment
receipts.
– Receipt Write-off: You use activities of this type in the Receipts Applications and the Create Receipt Write-
off windows.
– Short Term Debt: You use activities of this type in the GL Account tabbed region of the Remittance Banks
window. The short-term debt account records advances made to creditors by the bank when bills receivable
are factored with recourse.
27
– Unearned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows.
SALESPERSONS -
• You set up your salespersons and assign sales territories using the Resource window.
• Receivables lets you define multiple salespersons to which you can assign sales credits when entering
invoices.
• If Auto Accounting depends on salesperson, Receivables uses the general ledger accounts that you enter
here in combination with your Auto Accounting rules to determine the default revenue, freight, and
receivable accounts for your invoices.

28
STANDARD MEMO LINES

Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for
example, ’Consulting Services’). You can assign memo lines to debit memos, on-account credits, debit memo
reversals, charge backs, commitments, and invoices.

STANDARD MESSAGES –
• Standard messages are used to provide the text that Receivables prints on the bottom of your customer’s
statements. You can use messages to inform your customers of special promotions or to make your
statements more personal.

STATEMENT CYCLES –
• Define statement cycles to determine when to send statements to your customers. You enter statement
cycles when you define or modify individual customer and site profile classes in the Customer Profile
Classes window. If a customer site is defined as a statement site, Receivables generates a single,
consolidated statement for all of this customer’s transactions. This statement is sent to this statement site.
• If you have not defined a statement site for a customer, Receivables creates statements for each customer
site to which you have assigned a Bill-To business purpose and for each credit profile that has the Send
Statements parameter set to Yes.
• You choose a statement cycle when you print your statements. Statement cycle dates appear as list of
values choices in the Print Statements window.

29
RECEIVABLES SYSTEM OPTIONS

• Define system options to customize your Receivables environment. During Receivables setup, you
specify your accounting method, set of books, tax method and accounts, customer and invoice
parameters, and how the Auto Invoice and Automatic Receipts programs will run.
1. If your accounting method is Accrual, enter your Realized Gains and Realized Losses Accounts.
Receivables posts changes in your functional currency to your Realized Gains or Losses account in
your general ledger if there are differences in exchange rate gains or losses.
2. Enter the Tax Account to use as the default value in the Tax Codes and Rates window.
3. If your accounting method is Cash Basis, enter your Unallocated Revenue Account. Receivables
uses this account when you apply a cash receipt with a balance other than zero to an invoice with a
zero balance.
4. In the Cross Currency Rate Type field, enter the default exchange rate type that Receivables uses
when the receipt and transaction currency are different and the two currencies do not have a fixed
rate relationship.
5. Enter a Cross Currency Rounding Account. Receivables uses this account to record any rounding
error amounts created during a cross currency receipt application for currencies that have a fixed
rate relationship.
6. Enter the number of Days per Posting Cycle. This lets you process the transactions you are posting
in smaller groups to ensure that you do not run out of rollback space during posting. For example, if
your accounting period is 30 days and you set this value to 30, the posting program uses only one
cycle. If your accounting period is 30 days and you set this value to 17, the posting program uses
two cycles. It is recommend that you set this field to a value that is less than the number of days in
your accounting period.

30
 TRANSACTIONS AND CUSTOMERS SYSTEM OPTIONS

• To allow updates to transactions that have been printed, check the Allow Change to Printed Transactions box. This
option also determines whether you can update a customer’s address when printed, posted, or applied transactions are
assigned to that address.
• To allow transactions to be deleted from Receivables after they have been saved, check the Allow Transaction Deletion
box.
• To allow receipt applications to debit items of unrelated customers, or to allow bills receivable assignments to
transactions of unrelated customers, check the Allow Payment of Unrelated Transactions box.
• To allow receipt applications to debit items of unrelated customers, or to allow bills receivable assignments to
transactions of unrelated customers, check the Allow Payment of Unrelated Transactions box.
• Check the Show Billing Number check box if you want Receivables to display the consolidated billing invoice number
on certain reports and windows.
• From the Document Number Generation Level pull down list, select the point at which Receivables generates a
document number for your transactions. Choose one of the following:
– When the transaction is committed - When the transaction is completed
• Enter the Accounting, System Items, and Territory Flex field segments that are most often selected by Auto Invoice.
• To activate SQL trace for Auto Invoice, check the SQL Trace box.
• Enter the Maximum Memory (in bytes) to allocate to Auto Invoice for validation. For best results, enter a value that is
the maximum number of records that you import (rounded to an even number) multiplied by 1024. For example, if you
use Auto Invoice to import no more than 100 records at a time, enter a value of 102400.
• To automatically purge the Auto Invoice Interface tables after running Auto Invoice, check the Purge Interface Tables
box.
• Enter a Log File Message Level. This number (from 0 to 3) indicates the amount of detail you want Auto Invoice to
display in the Auto Invoice log .le. The higher the number, the greater the detail. 31
• Enter the default Grouping Rule Name you want Auto Invoice to use.
NATURAL APPLICATION/OVERAPPLICATION
RULES
• The transaction type that you assign to a transaction indicates the type
of application that is permitted for that transaction: natural application
only, or over application.
• The Natural Application Only and Allow Over application options
determine how applications can affect the balance due for transactions
using this type.
• Natural Application refers to the type of application, either positive or
negative, that a transaction requires to become closer to zero. For
example, invoices have a positive balance, so to reduce the balance due
you need to create a negative application (such as apply a receipt).
• Over application indicates whether you can over apply transactions
using this type. For example, if you apply a $500 receipt to a $400
invoice, you over apply the invoice and reverse its sign (from positive
to negative). 32