Simply put , under receivables process Invoice is generated Amount against which payment is received & revenue recognized. However basic business process remaining the same, Oracle Fusion Receivables provides considerable business efficiency over earlier releases. Lets see how,where & exactly how Fusion Receivables simplifies processes to enable business focus on more important issues like Making calls to resolve Delinquencies,Customer Queries.... rather than worrying about records stuck in Autoinvoice.

Continuing from Previous article we where discussed about overall Receivables process,Setups to create an Invoice & apply receipt to it. In this article we will continue with details of setups and more details of invoicing,receipts , access & setups related to accounting in Receivables

& Continue discussing late charges , revenue management , creating write-offs & finally posting Receivables journals to Oracle Fusion General ledger in following article.

Job Roles and Duty Roles for Performing Receivables Activities

The pre-defined job roles have the following duty roles associated to them

Custom Security needs can be met by managing the duty role assignments

To enable a Business Unit to process receivables, enable the following business functions.

•Billing and Revenue Management

•Customer Payments

•Assign your business unit to one primary ledger and a default legal entity This assignment is mandatory for business units with business functions that produce financial transactions .

Determination of Business Units,Ledger & LE on Receivable transactions is derived by

In additional to the ability to schedule creating accounting process, you can run accounting on-line after you complete the invoice and view the generated accounting on-line from the invoice.You can create accounting an view accounting from Review Transaction page and Manage Transaction page.  Under the Action menu, you will see the following account related actions:

•Account and Post to Ledger

•Account in Draft

View Accounting

•Receivables generate distributions based on AutoAccounting rules

•Receivables pass distributions to SLA

•SLA generates accounting entries based subledger accounting rule

•General Ledger Imports subledger accounting entries to create journal entries

General Ledger post journal entries to update account balances

Following sources are used by autoaccounting to derive the accounting on transactions. The available sources are based on the account type. For each segment in your Accounting Flexfield, enter either the source name that you want Receivables to use to get information or a constant value.

Here is an example of how AutoAccounting uses the sources

(a)Below is an example of “Invoice” .   In Oracle Fusion Receivables , AutoAccounting generates the distributions which are used as default to generate the final accounting.

Given the predefined accounting rules, this is the accrual accounting for Invoice.  The default accounting in Fusion is at the detail level, showing the final accounting. However, we set transfer to GL in ‘summary’ mode, resulting in one receivables entry per invoice.

(b)example of “Line Adjustment” prorated over Lines.

Given the Receivables predefined rules, this is the accrual accounting for Adjustment.  The default accounting in Fusion results in one receivables entry for each revenue line.  However, we set transfer to GL in ‘summary’ mode, resulting in one receivables entry per invoice.

Setting up Auto-Accounting as explained above is completed on following screen

Navigator--> Setup & Maintenance--> Manage Accounting Rules

Various Receivables transactions can be either created manually or through automated process & can also be imported from external systems or via excel spreadsheets

The upstream application sends the data to the interface table.

AutoInvoice then selects data from the interface tables and creates transactions in Oracle Fusion Receivables. Receivables rejects transactions with invalid information to ensure the integrity of the data.

The invalid data  (exceptions) are pushed to users for correction. Users use the Fusion Desktop Excel Integration , which is an excel interface that is more familiar, to review data and correct the error using better user interface and faster turn around.

You can expedite Receivables entries by using default values as defined below

Use grouping rule to group imported lines to invoice based on specific business needs .  

Out of box, Receivables provides the DEFAULT grouping rule which contains all of the mandatory attributes. You can add optional attributes to the DEFAULT grouping rule to create new grouping rules. You cannot delete any mandatory attributes from a grouping rule

Accounting date for invoices is derived using the following criteria

• Does a GL date exist for this invoice in the interface table?

• Does the invoice use rules?

• What is the setting of the Derive Date option for this Transaction Batch Source (Yes

or No)?

• What is the setting of the accounting date in a Closed Period option for this Transaction

Batch Source (Adjust or Reject)?

If the accounting Date in a Closed Period field for your transaction source is set to 'Reject' and you pass a general ledger date that is in a Closed or Not Opened period, AutoInvoice will

reject the line.

If the Accounting Date in a Closed Period field for your transaction source is set to 'Adjust' and you pass a general ledger date that is in a Closed or Not Opened period, AutoInvoice will change the date to an open or future enterable period.

Tax Determination for invoice lines is based on following

Tax calculations are done using Oracle Tax Module in context of receivables below are the tasks that needs to be performed by application to derive correct tax rates for applicable invoice lines

1. Determine Applicable Tax Regimes and Candidate Taxes

2. Determine Place of Supply and Tax Jurisdiction

3. Determine Tax Applicability

4. Determine Tax Registration

5. Determine Tax Status

6. Determine Tax Rate

7. Determine Taxable Basis

8. Calculate Taxes

Taxes are calculated at the time of saving and competing the transaction.You can update and view taxes for the entire transaction or for each line.You access the tax details from:

1)Tax Edit icon on the Transaction

2)Edit Tax Action on the Transaction Line table

After you enter all required information, you can complete the invoice. When you complete an invoice, Receivables creates payment schedules based on the payment terms and invoice date you specified and includes the invoice in the standard aging and collection process if the transaction type has Open Receivables set to Yes.

When you complete a standard invoice, receivables will validate the following:

• The invoice must have at least one line.

• The accounting date of the invoice must be in an Open or Future period.

• The invoice sign must agree with the creation sign of the transaction type.

• The sum of distributions for each line must equal the invoice line amount.

•If the Calculate Tax field for the transaction type is set to Yes, tax is required for each line (except lines of type Charges).

• If freight was entered for this transaction, you must specify a freight account.

• If the system option Require Salesperson is Yes, salespersons must be assigned to each line.

• If salespeople are assigned to each line, the total revenue sales credit percentage equal 100%.

• All the activity date ranges for the setup values (for example, payment terms) must be valid for the invoice date.

• If this transaction uses an automatic receipt method, you must enter Customer bank, branch, and account information.

Receipts of Monies Against invoices created in Oracle Fusion Receivables

Fusion Receivables supports a variety of receipt creation methods to meet the needs of your organization.

Receipts via Spreadsheet integrates with Microsoft Excel to efficiently capture Receipts data while offline in a field office. The spreadsheet can be later uploaded to the system to create receipt batches

conveniently search existing receipts in system to load Remittance information.

Directly load the entered information from Excel Workbook.

Lockbox eliminates manual data entry by automatically processing receipts that are sent directly to the bank including how this information is transmitted ,how Receivables validates the data, creates receipt batches. Lockbox can also automatically identify customer who remitted the receipt and determine how to apply the receipts to customer's outstanding debit items.This feature supports:

•multiple lockbox transmission file formats

•error correction via spreadsheet for ease of use

Fusion Receivables expedites user discovery and correction of authorization and funds capture errors if they are not automatically corrected, by pushing these errors to:

1.On Watch-list

On Receivables Balances Overview page

SmartReceipts application engine increases the hit rate based on remittance advice from your customer, and also factors related to customer payment history when remittance advice is missing or incorrect.Allows users to specify threshold scores above which recommendations are generated and automatically accepted.SmartReceipts also streamlines exception cases when the Customer has either overpaid or underpaid

Manual standard receipt entry uses sophisticated defaulting to reduce the amount of data that needs to be entered to create a receipt. It also leverages the enhancements to the automatic receipt application engine to immediately match the entered remittance advice information to open receivables transactions and apply the receipts.

Automatic Receipts integrates with Oracle Fusion Payments to provide Credit Card and Bank Account Transfer payments.   It automatically generates receipts for customers with whom you have predefined agreements that let you collect payments on time by transferring funds from the customer's bank account to yours on the receipt maturity date.

There are few special considerations to automatic receipts that enables error free & efficient receipt application that business needs to consider & implement.

Similar to automatic receipts below are few decisions for Automatch rule set to optimize receipts

That’s it for now,next & final article on this subject will detail how to address customer inquiries, create late charges,standard reports & Oracle General Ledger Reconciliations with Fusion Receivables

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