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Receivables are used to maintain Customer information, Sales invoices and

receipts from customers. Any form of money coming into the organization
will be recorded in the Account receivables.

I. We maintain the following in Accounts Receivables:

 Customers information
 Sales invoice information
 Receipts information

II. Key Flex Fields in AR: 2

1. Sales Tax Location KFF (Mandatory)
2. Territory KFF (Optional)

 Sales tax location KFF is used to calculate tax based on the different
locations. In general we have different tax rates in different states.
Sales tax location KFF is mandatory.

 Territory means Place or location. Territory KFF is used to track sales

information location wise.
This KFF is optional.

III. Work Benches in AR: 4

1. Transaction work bench
2. Receipt work bench
3. Bills receivables work bench
4. Collections work bench

 Transaction work bench is used to maintain all types of transaction

information.

 Receipts work bench is used for all receipts information such as cash
and check receipts.

 Through Bills Receivables work bench we maintain bills receivables

information.

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 Collections work bench is used for follow up with customers such as

collection process information, reminder letters and Collector’s
information.

IV. Transaction types: 8

For each and every invoice type we have to create one transaction type.
Through the transaction type we use the transactions and also we can
determine that:
 Data transfer to GL
 Balances get updated
 Tax information
 Accounts information
 Freight information
 Amount signs (-) or (+)

We have 8 transaction types:

1. Invoice (Sales invoice)
2. Credit Memo (-)
3. Debit Memo (+)
4. Deposit
5. Guarantee
6. Copy transaction
7. Charge back transaction
8. Bills receivables

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 When you sell goods to record normal sales we use Invoice.

 When customer return goods, to reduce customer balance we

use Credit Memo (-) sign.

 To increase customer balance we use Debit Memo (+) sign.

 If we received advance from our customer, to record the same

we use “Deposit”

 “Guarantee” means that our customer will agree to purchase

from us for a particular amount to avail some discount.

 Deposit & Guarantee we call as “Commitment”

 For recurring type of transactions we use “Copy Transactions”

 “Charge back transactions” are used to close the open invoice

and to open new transaction with new terms.

For example: Customer agreed to pay the total invoice amount

on a particular date but failed to pay total invoice amount.

But customer is able to pay part of the invoice amount on agreed

date and requested for to extend the due date without charging
any interest on balance amount.

In this case we have to close the existing invoice and to open a

new invoice for balance amount with extended due date without
charging any interest on the balance amount.

 Copy transactions & Charge back transactions are automatically

created by system.

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V. Receipts work bench

We maintain two types of Receipts in Receipts work bench.

1. Standard Receipt
2. Miscellaneous Receipt

 Standard receipts are used for the amounts received from the
customers against the standard sales invoices raised.
 Miscellaneous receipts are used for the amounts received for scrap
sales are other incomes which are received with out raising a standard
invoice.
 If we receive miscellaneous income also, if we raise a standard Invoice
against that, we have to use Standard receipt only.

VI. Details required maintaining invoice in Accounts Receivables

1. Customer name and address
2. Transaction date and amount
3. Item details & quantity
4. Sales account
5. Remit to address
6. Payment terms
7. Collector details (person who collect amount from customers, could be
our employee or a third party agent)
8. Ship to address
9. Bill to address

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VII. Comparison of AR with AP

AP invoice types AR Invoice types

Standard invoice = Invoice
Debit Memo = Credit Memo
Credit Memo = Debit Memo
Prepayment = Deposit
Recurring invoice = Copy transaction

VIII. We can classify the customer information into two:

1. Customer header
2. Customer address

Customer header information is Global, address information is local.

Header information of Customer & Supplier are called as master data.

IX. Transaction Source

Transaction source is used to set the numbering to the transaction types.

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X. System Options
System options are used to set the behavior of Receivables application.
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.

The following are tabs in System options:

1. Accounting
2. Tax
3. Tax Defaults and Rules
4. Trans and Customers
5. Revenue policy
6. Claims
7. Miscellaneous

XI. Auto Accounting

Auto Accounting is used to create accounting entries for all type of
transactions which are entered manually and also imported transactions
from other applications.

XII. Standard memo lines

Items are maintained at Inventory module. If an item is not maintained at
inventory module, for example “Service charges”, which is an non inventory
item can be maintained in “Receivables” module only.

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XIII. Customer Profile class

Based on the past history customers are segregated into classes. These
classes are called customer profile classes. We maintain collector, statement
cycle, payment terms and dunning letters through profile classes.

At the time of creating Customer, if you assign the customer profile class to
Customer, all information maintained through customer profile class will be
copied to Customer account.

XIV. Receipt Class

Through receipt class we can specify payment method, bank account details
and generating receipt automatic or Manual.

XV. Earned Discount & Unearned Discount

Earned discount you will receive if payment made with in the due date. In
some situations you will receive discount if you are not paid with in due date
also, this is called unearned discount.
We have to create receivable activity for the other income stating that what
the reason that we are receiving money is.

XVI. Receipt source

Receipt source is used to create numbering for the receipts

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AR Setup

 KFF
 System options
 Auto Accounting
 Standard memo lines
 Collector
 Dunning Letters
 Dunning letter set
 Statement cycle
 Payment terms
 Customer profile classes
 Receipt class
 Earned Discount / Unearned discount (Receivable activity)
 Receipt source

Navigations for AR Steps

1. Update or define Segment values for territory flex fields

(Define Country, Region and Area etc.)
Setup  Financials  Flex Fields  Key  Values
2. Define or register territory values
Setup  Transactions  Territories

3. Define Receivables quick codes

Setup  System  Quick codes  Receivables

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4. Define freight Carriers

Setup  System  Quick codes  Freight Carriers

5. Define statement cycle

Setup  Print  Statement Cycles

6. Maintain dunning letters

Setup  Print  Dunning letters

7. Maintain dunning letters sets

Setup  Print  Dunning letter sets

8. Define tax codes and rates

Setup  Tax codes

9. Define collectors
Setup  Collections  Collectors

10. Define Distribution sets

Setup  Receipts  Distribution Sets

11. Define Banks

Setup  Receipts  Banks

12. Define Payment terms

Setup  Transactions  Payment terms

13. Define Auto Cash rule sets

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Setup  Receipts  Auto cash rule sets

14. Maintain profile classes

Customers  Profile classes

15. Maintain Customers

Customers  Standard

16. Define transaction types

Setup  Transactions  Transaction types

17. Define transaction Source

Setup  Transactions  Sources

18. Maintain Transactions

Transaction  Transactions

19. Maintain Credit Transactions

Transactions  Credit Transactions

20. Maintain Receipts

Receipts  Receipts

21. Review Customer account information

Collections  Customer Accounts

22. review trends in customer accounts

Collections  Account overview

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23. Define aging buckets

Setup  Collections  Aging buckets

24. Review aging for customers

Collections  Aging

Order to Cash Cycle (O 2 C)

 Sales Order
 Pick release
 Shipping
 Invoices (Transactions)
 Receipt
 Reconciliation
 Transfer to GL

Modules used in O2C cycle:

 Sales Order, Pick release and shipping: Order Management
 Invoices and Receipts: AR
 Reconciliation: Cash Management

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Auto Log Box

Every day we receive several receipts from customers.

To avoid manual work, with auto log box concept, by using the file sent by
bank, automatically system will create:
1. Automatically create receipts
2. Automatically apply to transactions also.

For that base we have to set rules:

1. Auto cash rule set

2. Application rule set

Auto cash rule set:

Setting up rules or we specify how to apply the receipts to which invoices,
oldest invoices, after that recent invoices

Application rule set:

To set up rules to apply partial amount to which account to applicable,
whether? Item, Tax, Freight line items or prorate on all the lines.

Steps:

1. Import the file from bank

2. Validate the imported file
3. Post quick cash (Balance will updated in the system)

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Auto Invoice

Order management Steps:

 Recording order
 Booking Order
 Pick release
 Ship confirmation

OM  Tables, AR interface  AR

If any sales order status is “Ship Confirm” in OM, condition is that

information will transferred to AR interface table automatically, this can be
done through work flow.

To transfer data from AR interface table to AR, we have to run “Auto invoice
master Program”.

Steps:

1. Basic set up to be completed in AR and OM

2. Define Imported transaction source
3. Define Grouping Rules
4. Define Line Ordering Rules
5. Descriptive flex field (Invoice transaction flex field)
6. Run Program – Auto invoice master

** To group the multiple lines of sales invoice into one group is grouping
rules

** Setting order for grouped lines is line ordering rules

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Application Rule Set

Setup  Receipts  Application Rule Sets
Application rule set is determined, how to apply the receipt amount against
various invoice components.
Invoice Components are:
- Item
- Tax
- Freight
- Financial Charges

Steps:

 Name your Application rule set

 Enter application rules & rule details.

Application rules Rule details

Seq Rules Type Tax Treatment Rounding
Over application rule
1 Line Line before √
2 freight Freight None √
3 Finance Charges Charges None √

Over application rule = Excess amount received.

Save
√ Freeze

Save your work.

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Customers Profile Class

Profile class is used to group the customers based on certain parameters.

We can classify the customers as Good, Average and below average.

Define Profile class

Navigation: Customers  Profile Classes

 Name your Customer Profile class

 Enable √ Active Check box
 Grouping rule: Default
 Choose Payment terms
 Choose Statement cycle
 Choose collector
 Choose Auto cash rule set
 Choose profile class amounts

Transaction Types
Navigation: Setup  Transaction  Transaction type

Transaction type will determine the features of Transactions:

The Features are:

1. Accounting information
2. Whether post to GL or not
3. Whether we can print invoices or not

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Transaction Source

 Transaction source will determine the numbering for individual

transactions and batch transactions. And also it will determine
“Transaction type”.
 There are 2 types of transaction Source.
1. Manual
2. Imported (Automatic)
 Imported transaction source is used to import the transactions in to AR

Define import transaction source.

Navigation: Setup  Transaction  Sources

 Choose OU & LE
 Name your transaction source
 Choose type as IMPORTED

 Go to “Batch Source” tab

 Enter Description

 Enter Automatic batch numbering & Automatic transaction numbering

 Choose standard transaction type

Go to “Auto invoice options” tab

 Invoice line: Reject invoice
 GL date closing period: Adjust
 Grouping rule: Default

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Receivable Activities
Setup  Receipts  Receivable Activities

Receivable activities are used to default the accounting information for

various receivable activities.

Those are:

1. Adjustment
2. Bank Error
3. Endorsment
4. Earned Discount
5. Unearned Discount
6. Finance Charge
7. Miscellaneous Cash
8. Short term Debt

Steps:

 Name your Receivable Activity

 Type: Choose type from the above 8 types
 GL Account Source: Activity GL Account
 Tax rate code source: None
 Activity GL Account: Discount taken (Earned) Account

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23. Receipt Class

Receipt class will determine the:

- Receipt creation method
- Remittance method
- Clearance method
- Receipt method for various receipts

Step: 1 Create Manual Receipt class

Setup  Receipts  Receipt class

 Name your Receipt class

 Creation method: Manual
 Remittance method: Standard and Factoring
 Clearance method: By matching
 Receipt Method: Check

 Click on “Bank Accounts” button

 Choose bank account details

 GL Accounts will be copied by system automatically
 Choose Unearned discount receivable activity
 Choose earned discount receivable activity
Enable:
√ Over ride
√ Primary

** Each currency should have one primary

Save your work

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Notes:

Creation Methods:
1. Manual
2. Automatic
3. AP / AR Netting
4. Bills receivables
5. Bills receivables remittance

Remittance Method:
1. No Remittance
2. Standard
3. Factoring
4. standard and factoring

Clearance Method:
1. Directly
2. By Matching
3. By Automatic clearing

Receipt Method:
1. Check
2. EFT
3. Wire
4. Clearing

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Receipt Class – Automatic

Navigation: Setup  Receipts  Receipt class

 Name your Receipt class

 Creation method: Automatic
 Remittance method: Standard and Factoring
 Clearance method: By matching
 Receipt Method: Check

 Click on “Bank Accounts” button

 Choose bank account details
 GL Accounts will be copied by system automatically
 Choose Unearned discount receivable activity
 Choose earned discount receivable activity

Enable:
√ Over ride
√ Primary

** Each currency should have one primary

Save your work

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Receipt Source
Setup  Receipts  Receipt Sources
 It will determine:
- Receipt class
- Payment method
- Numbering for receipt batches
- Bank Account

 There are 2 types of receipt sources

1. Manual
2. Automatic

Define Manual Receipt Source

 Choose your Operating Unit

 Name your Receipt Source
 Receipt Source type: Manual

Choose:
 Receipt class
 Payment Method
 Bank Account

Batch Numbering: Automatic

Last used: 0
Save your work.

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Define Automatic Receipt Source

** We cannot define automatic Receipt Source. We need to use default

automatic receipt source.

 Choose operating unit

 Name: Automatic receipts Query Ctl F11
 Receipt source type: Automatic

Receipts – Individual Receipts

 Choose Receipt method: Check
 Enter receipt date
 Enter receipt number manually (Check number of customer)
 Enter receipt amount
 Receipt type: Standard
 State: Confirmed

** Now the status is “unidentified”

 Go to “Main” tab
 Choose name of the customer Or Transaction number
 Choose Remittance bank (Internal bank account)

Now the status is: Unapplied

Click on the button “Search and Apply”

Uncheck all the fields and enable only √ Invoice check box

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Click on “Apply”
Save.
Now the Status is “Applied”.

** Earned Discount: is coming from payment terms

If you modify in the receipts latter, then balance will show as unearned
discount
 Go to: Tools  Create Accounting
Journal Entry:
Confirmed Cash A/c Dr 135000
Earned Discount A/c Dr 6750
To Receivables 135000
To On Account Cash 6750

 Query the transaction to check the status

Navigation: Transactions  Transaction

F11
Enter transaction Number
CTL F11
Now you can see balance due as zero

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Auto Accounting
Auto accounting is used to default the accounting information into various
transactions.
Auto accounting will be defined for:
- Receivables Account
- Revenue Account
- Tax
- Freight etc.

Navigation: Setup Transactions  Auto accounting

 Choose operating unit
 Type: Receivables
 Choose values for segments from “table name” or “Constant”

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Debit Memo

Debit Memo will be created when customer is under charged.

Memo lines are used to create transactions without item information.

Steps:

1. Define Memo lines (Setup  Transactions  Memo Lines)

2. Define Debit memo transaction type (Positive Sign)
3. Define Debit Memo Transaction Source
4. Create Debit Memo

 Choose Source, automatically other fields will be copied by system

 Enter customer details in Bill to fields
 Choose payment terms

Go to “More” tab
Choose “Standard Invoice number” under cross reference field
Click on “Line Items”
 Choose “Memo Line” in description column
 Enter qty and price
 Save and close this window

Go to “Distribution” button to see GL accounts information

Save and close this window
Say “Complete”

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Credit Memo

When customer return goods, to reduce customer balance we use

Credit Memo (-) sign.

Steps:

1. Define Memo lines (Setup  Transactions  Memo Lines)

2. Define Credit memo transaction type (Negative Sign)
3. Define Credit Memo Transaction Source
4. Assign Credit Memo source to the Invoice Source
5. Create Credit Memo against specific transaction.

Navigation: Transactions  Credit transactions

Choose Invoice number Say “Find”

 Enter reason for credit memo
 Click on “Credit Lines”
 Go to Main Tab
 Enter Num: 1
 Enter quantity
 Unit price in negative amount
 Save and close this window

Say “Complete”

Step: 6 On Account Credit Memo

Navigation: Transactions  Transactions
** On Account credit memo will be created against customer account.
 Choose source: Credit memo source
 Choose customer name
 Go to “Line Items”
 Choose Memo line under description and enter credit amount as
negative Say Complete

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Deposit
Deposit is an advance payment made by customer to the Organization.
Latter it will be adjusted for future invoice or apply to future liability.

Step: 1 Define Deposit transaction type

Navigation: Setup  Transactions  Transaction type

 Name your Transaction type

 Class: Deposit
 Creation Sign: Positive sign
 Invoice type: Invoice transaction type
 Choose credit memo transaction type
 Choose Application rule set
 Choose terms
 Allocation Basis: Lines only
 Choose Receivable Account
 Save your work

Step: 2 Define Deposit Source

Navigation: Setup  Transactions  Sources

 Name your deposit source

 Enter automatic batch numbering
 Enter automatic transaction numbering
 Choose standard transaction type as Deposit transaction type

Save your work

Step: 3 Create Deposit Transactions

Navigation: Transactions  Transactions

 Choose Deposit Source

 Choose customer details
 Choose payment terms as “Immediate”

Go to “Commitment” tab

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 Enter Deposit Amount

 Enter Description: Generic Commitment

Go to “Distributions” tab to view accounts

Save and close this window
Say Complete.

Step: 4 Record the Receipt against Deposit

Navigation: Receipts  Receipts

 Choose receipt method: Check

 Enter Receipt Number
 Enter receipt amount
 Receipt type: Standard

Go to “Main” tab
 Choose Deposit transaction number
 Say “Apply”
Save.

Step: 5 Check the Deposit Balance Status

Navigation: Transactions  Transactions

Step: 6
Create one standard invoice and adjust against deposit amount
Navigation: Transactions  Transactions

 Choose Invoice source

 Choose Customer details
 Payment terms: Immediate
 Choose Deposit invoice number under “Commitment” field

Click on “Line Items” button

Enter Item and Quantity details

Go to “distributions” tab Say “Complete”

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Guarantee

It is an assurance from the Customer to buy goods or services from the

Organization.

Under guarantee transactions, amount will be collected from customers

when we create invoice transactions only.

Setup Steps
Step: 1 Define Guarantee transaction type
Navigation: Setup  Transactions  Transaction type

Step: 2 Define Guarantee Transaction Source

Navigation: Setup  Transactions  Source

Step: 3 Create and Complete Guarantee Transaction

Navigation Transactions  Transaction

Step: 4 Create invoice transaction with reference of

Guarantee
Navigation Transactions  Transaction

Step: 5 Receive money from the customer against invoice

transaction
Navigation Receipts  Receipts

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Charge Back

Charge back is nothing but closing the existing invoice and creating new
invoice with new due dates.

Step: 1 Define charge back receivable activity

Navigation: Setup  Receipts  Receivable Activity

F11
Query Name “Charge back adjustment” (CTL F11)
Type: Adjustment
Activity GL Account: Charge back Burden account

Step: 2 Define charge back transaction type

Navigation: Setup  Transactions  Transaction type

 Name your Charge back transaction type

 Creation Sign: Positive Sign
 Enter GL Accounts

Step: 3 Define charge back transaction source

Navigation: Setup  Transactions  Sources

Step: 4 Create Standard invoice

Navigation: Transactions  Transactions

Step: 5
Enter the receipt for partial amount and create charge back for
remaining amount

Navigation: Receipts  Receipts

 Choose the Invoice number as per step 4

 Receive partial payment
Click on “Apply”
Place the cursor on “Balance Due” field
Click on “Charge backs” button

Choose Type: Charge back transaction type

Enter Comment
Enter new due date Save your work
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Step: 6 Query the charge back invoice number

Navigation: Transactions  Transactions

F11
Choose Source: Charge Back
CTL F11

Step: 7 Query old invoice (Standard original invoice)

Navigation: Transactions  Transactions

Invoice Rules

Invoice rules will be determined the accounting period in which receivables

are recognized.
There are 2 types of Invoice Rules:
1. Bills in advance
2. Bills in Arrears

Bills in advance: System will recognize the invoice amount as a advance or

starting of a project.

Bills in Arrears: System will recognize amount at the end of the contract or
project.

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Accounting Rules

Accounting Rules will determined the Accounting Period in which Revenues

are recognized.

There are 4 types of accounting rules:

1. Daily Revenue Rates, All periods

2. Daily Revenue Rates, Partial Period
3. Fixed Schedule
4. Variable Schedule

Fixed Schedule – Accounting Rule

We will define duration of the project and % of Revenue of each accounting

period, at the time of fixed scheduled accounting rule setup.

Step: 1 Define Fixed Schedule Accounting Rule

Navigation: Setup  Transactions  Accounting Rules

 Enter Name and Description

 Type: Fixed Schedule
 Enter Number of periods
 System divide the 100% in to the number of periods

Step: 2
Create Invoice with Fixed Schedule accounting rule with Bills in
advance invoice rule.

Navigation: Transactions  Transactions

 Enter Standard invoice as usual

 Payment terms: Immediate
 Choose Invoice rule: In Advance
Go to Line Items to enter item, qty and price details
Go to “Rules” tab
Choose accounting rule: Fixed Schedule
Enter start date
Save and close this window Say “Complete”.

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Step: 4 Run Revenue Recognisation program

Navigation: View  Request

 Submit a new request

 Single request
Name of the program: Revenue Recognition

Variable Schedule - Accounting Rules

 At the time of set up the Variable Schedule Rule we will not enter
duration of the project & % of Revenue for each accounting period.
 We enter only first period Revenue % at the time of accounting rule
set up.
 Duration of the project will be entered at the time of invoice entry.

Step: 1 Define Accounting Rule

Navigation: Setup  Transactions  Accounting Rule

Step: 2
Create invoice with variable Schedule accounting Rule with Bills in
Arrears invoice Rule
Navigation: Transactions  Transactions

Step: 3 Run revenue Recognition Program

Navigation: View  Request

 Submit a new request

 Single request
Name of the program: Revenue Recognition

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Transaction Batch

Transaction batch is used to group the transactions based on the certain

parameters.
Navigation: Transactions  Batches

 Choose invoice source

 Status: New
 Enter Control count and Control Amount
 Save
 Change status to “Open”

Click on “Transactions”
 Enter standard Transactions as usual
Say Complete

Click on “New” button to create more transactions.

Click on “Transaction Summary” to view transactions

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30. Auto Cash Rule Set

Auto cash rule set is used to apply receipt amount against invoices.
It is having 5 Rules:
1. Clear the account
2. Clear the past due invoices
3. Clear the past due invoices grouped by payment terms
4. Match payment with invoice
5. Apply to the oldest invoice first

Define Auto Cash Rule Set

Navigation: Setup  Receipts  Auto cash rule set

 Enter Name for Auto cash rule set

 Discounts: Earned and unearned
 Remaining Remittance amount: Unapplied
 Choose the sequence of Auto cash rule set

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31. Receipt Batch

Receipt batch is used to group the Receipts based on Certain parameters.
There are 3 types of Receipts batches:
1. Manual Regular
2. Manual Quick
3. Automatic

Manual Regular – Receipt Batch

Customer balances will be updated as soon as you save the receipts.
Create Manual Regular batch
Navigation: Receipts  Batches

Click on “Open” or “New”

 Receipt Method: Check
 Receipt Number: 5
 Enter Receipt Amount
 Receipt type: Standard
 Status: Confirmed
 Apply
 Save

Manual Quick – Receipt Batch

Customer balances will not be updated when we save the receipt

information.
Customer balances will be updated when we run Post Quick cash
program with the help of auto cash rule set.

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Define Manual Quick Batch

Navigation: Receipts  Batches
 Batch Type: Manual – Quick
 Batch Source: Manual Receipt Source
 Currency: INR
 Enter control count and Amount
 Click on “Receipts”

Click on “Multiple”
Save and close this window

Click on ”Post quick cash”

Ensure program completed Normal

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32. Miscellaneous Receipt

Non invoice related receipts is called miscellaneous receipts, such as interest

on investment, dividend etc.

Step: 1 Define Miscellaneous receivable activity

Navigation: Setup Receipts  Receivable activities

Step: 2 Receipt of miscellaneous cash

Navigation: Receipts  Receipts

 Choose Receipt Method

 Enter receipt number
 Enter receipt amount
 Receipt type: Miscellaneous
 Paid by: Enter customer name
 Purpose: Activity: Choose Misc receivable activity

Click on “Distributions” button

Say “OK”
Save

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33. Receipt Reversal

Receipt reversal is nothing but a kind of cancellation of Receipt.
There are 2 types of Receipt Reversal Methods:
1. Standard Reversal
2. Debit Memo Reversal

1. Standard Reversal

When we reverse receipt with the standard reversal, all the transactions
which are associated with the receipt will get reversed.

Step: 1 Query the invoice to check the balance due

Navigation: Transactions  Transactions

Step: 2 reverse the receipt

Navigation: Receipts  Receipts

Click on “Reverse” button

 Choose Reversal Date

 Choose Category and reason for reversal
 Click on “Reverse” button

2. Debit Memo Reversal

When we reverse receipt using debit memo reversal all associate

transactions WILL NOT get reversed, but new debit get created with same
amount.

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Step: 1 Query the receipt which you want to reverse

Navigation: Receipts  Receipts

Click on “Reverse” button

 Choose Reversal Date
 Choose Category and reason for reversal
 Choose debit memo reversal type and Account
 Click on “Reverse” button

System will generate debit memo transaction

Go to “More” tab to view details

Step: 2 Query Debit memo transactions

Navigation: Transactions  Transaction

Query debit memo transaction created by system

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34. Remittance
Remittance is nothing but sending receipt information to the bank for
collection.
There are 2 types of Remittance Method.
1. Manual
2. Automatic (Refund)

There are 3 steps in the remittance process.

1. Create
2. Approve
3. Format

Step: 1 Create remittance batch

Navigation: Receipt  Remittance

 Batch type: Remittance

 Currency: INR
 Remittance Method: Standard
 Choose Receipt class
 Choose Receipt method
 Choose remittance bank

Save your work

System will generate Remittance batch number
Process status: Completed Creation
Click on “Manual Create” button
Go to “Main” tab

Place the cursor on “Receipt Method” Say CTL F11

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Select the checks you wish to send to bank

 Save
 Approve

Close this window

Now process status is: Started Approval

Go to View Request
Ensure program completed normal View output

Step: 2 Format the remittance batch

Navigation: Receipts  Remittances

Query approved remittance batch number

Click on “Format”
Now Process status is: Started Format

Go to View  Request
Ensure “Print Remittance” program completed normal

Step: 3 query the remittance batch t see the process status

Navigation: Receipts  Remittances

Now the process status is: Completed Format

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35. Refund process

Refund is returning the receipt amount back to the Customer.

Step: 1 Define Refund receivable activity

Navigation: Setup  Receipts  Receivable Activity

 Name your receivable activity

 Type: Refund
 Choose: Refund GL Account
 Save your work

Step: 2 create one invoice

Navigation: Transactions  Transactions

Choose payment terms: Immediate

Complete the invoice

Step: 3
Create receipt with excess amount and adjust invoice and keep
remaining Amount as unapplied or on account

Navigation: Receipts  Receipts

Step: 4 Create remittance receipt to Bank (Automatic Remittance)

Navigation: Receipts  Remittances

Click on “Auto Create”

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 Choose Customer details

 Actions: Create, Approve and Format
 Say “OK”
 Process status: Started Creation
 System assign batch number

Go to View  Request
Ensure “Automatic Receipts Remittances Execution report” program
completed normal.
View output.

Step: 5 Approve and Format Remittance batch

Navigation: Receipts  Remittances

Query your remittance batch

Now status is: Completed creation
Click on “Receipts”
You will see system will selected the receipts automatically
Click on “Format”
Now system will approve & Format also.

Go to View  Request
Ensure Programs Completed Normal
View output

Now the process status is: Completed Format

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Step: 6
Query the receipt which you received excess to refund to customer
Navigation: Receipts  Receipts

Click on “Apply”
Apply Apply to Amount applied Activity
√ Refund 50000 RIL Ltd Refund
√ On Account 0

Place cursor on Refund

Click on “Refund attributes”
 Choose Customer
 Choose Refund payment method: Check

Click on “Apply”
Save.
System will generate invoice in AP
One more button will come “Refund”
Validate the invoice
Make payment.

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36. Transfer to GL
For each and every transactions or receipts we have to create accounting.
Step: 1 Run create accounting program
Navigation: View  Request
 Submit a new request
 Single request
 Program name: Create accounting

Parameters:

Ensure program completed Normal

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Step: 2 Query the un posted journals in GL and post

Navigation: Journals  Enter
Review the journals and post

Step: 3 To run import program in GL

Navigation: Journals  Import  Run

Choose:
 Source: Receivables
 Choose your ledger
 Selection Criteria: All group Ids

Click on “Import”

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37. Period End Close

Accounts Receivables period Closing Procedures

 
1.                                     Run the final Auto Invoice Interface.
Interfaces Auto Invoice  Autoinvoice Master Program
2.                                      Correct all the Autoinvoice rejects and re-run.
3.                                      Complete the manual invoices, credit memos & corrections
for the period, to find the detail run “Incomplete Invoices Report”.
       Action: Go to transaction Window and Complete the Transaction
4.                                      Run the Journal Entries Report.
5.                                      Review the Journal Entries reports for 'unusual' accounts and
correct as needed.
6.                                      Run the Receivables Reconciliation Report (AR
Reconciliation Report) to make sure that you balance with receivables.
7.                                      Run the final post to General Ledger.
Interface General Ledger: General Ledger Transfer Program
8.                                      Post GL batches
9.                                      Run the Unposted Items Report - verify that there are no
unposted items.
10.                                  Reconcile Accounts Receivable balances to General Ledger.
11.                                  Close accounting period in Oracle Receivables
12.                                  Open the next accounting period in Oracle Receivables
 

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4.1  Opening/Closing of AR periods

 
Module: AR Module.
 
Navigation: Control  Accounting > Open/Close Periods.
 
1.    Complete the Transfer to General Ledger from the Receivables for the period
to be closed.
2.    Select the period to close. Select ‘Closed’ from list of values in the Period
Status and save the record.
3.    Select the Next period to open. Click Open Next Period Button
 
 

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