r12 receivables guidegreenchain.biz/pdf/r12receivables_part_i.pdf · 19 auto accounting ... the...

GreenChain Software Solutions Pvt. Ltd. 1

Oracle Applications Release 12.1.1

Accounts Receivables

White Paper

GreenChain Software Solutions Pvt Ltd

www.greenchain.biz


Table of Contents

1 CUSTOMER PROFILE CLASSES ......................................................................................................................................... 4

2 CUSTOMERS ............................................................................................................................................................................ 6

3 TRANSACTIONS .................................................................................................................................................................... 10

4 BILLS RECEIVABLES .......................................................................................................................................................... 18

5 NOTES RECEIVABLES ........................................................................................................................................................ 28

6 BALANCE FORWARD BILLING ........................................................................................................................................ 36

7 RECEIPTS ............................................................................................................................................................................... 41

8 REMITTANCES ...................................................................................................................................................................... 51

9 MISCELLANEOUS RECEIPTS ............................................................................................................................................ 57

10 PAYMENT NETTING .......................................................................................................................................................... 58

11 AGING BUCKETS ................................................................................................................................................................ 60

12 INVOICES WITH RULES ................................................................................................................................................... 61

13 AGING .................................................................................................................................................................................... 70

14 PAYMENT TERMS .............................................................................................................................................................. 72

15 TRANSACTION TYPES ...................................................................................................................................................... 75

16 TRANSACTION SOURCES ................................................................................................................................................ 78

17 STANDARD MEMO LINES ................................................................................................................................................ 80

18 ACCOUNTING RULES ....................................................................................................................................................... 81

19 AUTO ACCOUNTING ......................................................................................................................................................... 83

20 APPROVAL LIMITS ............................................................................................................................................................ 84

21 RECEIVABLES ACTIVITIES ............................................................................................................................................ 85

22 APPLICATION RULE SETS ............................................................................................................................................... 89

23 DISTRIBUTION SETS ......................................................................................................................................................... 91

24 RECEIPT SOURCES ............................................................................................................................................................ 91

25 RECEIPT CLASSES ............................................................................................................................................................. 92

26 STATEMENT CYCLES ....................................................................................................................................................... 94

27 STANDARD MESSAGES ..................................................................................................................................................... 95

28 REMIT-TO ADDRESSES .................................................................................................................................................... 96

29 SYSTEM OPTIONS .............................................................................................................................................................. 97


30 AR ACCOUNTING PERIODS .......................................................................................................................................... 103

31 ACCOUNTING ENTRIES ................................................................................................................................................. 104

32 MULTIPLE CHOICE QUESTIONS ................................................................................................................................. 113

33 FREQUENTLY ASKED QUESTIONS ............................................................................................................................. 117


1 Customer Profile Classes Use Customer Profiles to group customer accounts with similar credit worthiness, business volume, and payment cycles. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your finance charges, dunning, and statements for each currency in which you do business.

For example, you might define three categories: one for prompt paying customers; one for late paying customers with high finance charge rates; and a third for customers who mostly pay on time, with discount incentives for early payment. You can also use the profile class 'DEFAULT,' which Oracle Receivables provides.

You can assign a profile class to customers and addresses through the Customers-Standard window. The customer profile class you assign provides the default values, which you can optionally customize to meet specific requirements for each customer or address.

If a profile is assigned to a customer and an address of the same customer, the options set at the address level take precedence over those set at the customer level. For statement site and dunning site profile amounts, however, Receivables uses the options at the address level only if you set the AR: Use Statement Site & Dunning Site Profiles profile option to Yes.

Prerequisites

Define statement cycles

Define customer profile lookups

Define credit analysis

Define dunning letters

Define collectors

Define grouping rules

Define payment terms

Define AutoCash rule sets

Define System Options Navigate to profile class window (Navigation: customer: profile classes)


Credit Profile

Customer Profile Classes Profile Class Amounts


2 Customers Customer and Customer sites define customer name and address information to bill customers goods and services rendered. Minimally, customer records have three components: a customer record, a customer site record, and a customer site business purpose record. The one-customer-to-many-customer-sites architecture allows one customer record to have one or more site records. Understanding and utilizing the one-customer-to-many-customer-sites concept is critical for Oracle Receivables to run as efficiently and effectively as possible Strict in-house naming standards, customer verification procedures, and data entry procedures will improve the Oracle Receivables system and in-house business processes. Customer and customer site records may be converted or imported. A review of the active customer and address records in the legacy system should occur. The number of records should determine if the customer conversion process is manual or automated. Both conversion strategies require users to clean the data. The current customer data must be extracted and the users must review the data. The one-customer-to-many-customer-sites architecture must be established and duplicates must be eliminated. In addition, consistent in-house naming standards must be applied. Then the customer data may be entered manually or via a conversion program. Fortunately, there is a delivered customer interface. However, the customer conversion program must still be written in-house or delivered by a consulting organization. In addition, the user community must have strict procedures as to what system owns the customer and customer site data.

Customer Site Architecture The third record is the customer site use record. This data indicates the business purpose of the customer address data such as the bill-to address or the ship-to address data. The appropriate site will appear in the List of Values during data entry. For example, in the bill-to customer site field, only the sites with a business purpose of Bill To will display. (i) Some of the Oracle Receivables table names start with the prefix RA because prior releases of Oracle Receivables included the Oracle Revenue Accounting (RA) application which is now included within the Oracle Receivables application. Customer Entry The Oracle Receivables displays the customer entry find window when opening the window 1. From the Receivables menu Customers Standard. 2. The system displays search window. Enter the customer name and say go. To verify the customer record

doesnt already exist to avoid accidental duplicate customer records.

GCSS Associates

Customers

Hyderabad

Green Chain

BK Guda-32

Customer site

Vijaywada

Siddhartha,

Bandar Road

Customer site

Bill To

Customer Site Purpos

Ship To

Customer site purpose


3. Press go to execute the query. If the customer exists, the matching records will be displayed. If the customer name doesnt exist, the system displays no result found. Press create to create a customer record.

Find/Enter Customer

1. Customer window will appear. 2. Enter the name of the organization. 3. Profile class, account type and customer status. 4. Give relevant address and bill to, ship to address. 5. Say save and apply. Then it will display status active and again say apply. 6. Address will appear in the address field.

Customer Address

Oracle Receivables lets you add, change, or deactivate business purpose information for a specific address. Since customer accounts can have multiple addresses, business purposes let you describe which functions are performed


at a particular customer account site. For example, assign a ship-to business purpose to the address where you ship your goods and a Dunning business purpose to the address where you will send Dunning Letters.

When you assign a business purpose to an address, its default status is Active. You can make the business purpose inactive by unchecking the Active check box in the Business Purposes tabbed region.

Addresses can have multiple business purposes, such as shipping, billing, or sending statements, dunning letters, marketing collateral, and legal documents. You can also define your own business purposes in the Receivables Lookups window.

Note: An address assigned to a ship-to business purpose is also referred to as a 'Ship-To site', an address assigned to a Dunning business purpose is referred to as a 'Dunning site', and so on.

Business Purposes and Multiple Organization Support

If you are using the Multiple Organization support feature, you can assign a salesperson to a customer account site. If you are not using multiple organizations, you can assign a salesperson to a customer account and to each of their site uses. You can also create a centralized statement and dunning site for each customer account in a multiple organization environment.

Business purposes in a multiple organization environment are organization specific. For example, only the transactions associated with a bill-to site for a specific organization appear on a statement or dunning letter. If the same bill-to site is used by more than one organization, then you must set up the address and associated business purpose of this bill-to site in each organization. Then, for each organization, you must run separate statements and dunning letters for this same bill-to site.

Consolidated statements and dunning letters for a single customer are also organization specific. When you run a consolidated statement or dunning letter, Receivables consolidates all organization-specific transactions for the customer into a single document and sends the document to the bill-to address with the relevant business purpose (Statement or Dunning).

For example, Sites A and B belong to organization MiniCo, and sites B and C belong to organization BigCo. Receivables will record transactions for site B in both organizations. However, when you run consolidated documents, only the transactions created by MiniCo appear on MiniCo documents and only the transactions created by BigCo appear on BigCo documents. Because MiniCo and BigCo are separate organizations, the activity for site B is not duplicated on both organizations' documents.

Common Types of Business Purposes

Bill To: Send invoices to this address. The bill-to address can be different from this customer account's ship-to address.

Drawee: Designate this address as a customer account drawee. A customer drawee is a customer account site responsible for paying bills receivable.

Ship To: Send your goods or services to this address. The ship-to address can be different from this customer account's bill-to address.


Business purpose usage


3 Transactions The following setup steps are important for entering transactions in the application:

Transaction Source

Transaction Type

Customer

Auto Accounting

Standard Transaction (Navigation: transactions: transactions)

Transaction Main Tab

Source Select the Transaction Source. The Source specifies automatic or manual and invoice numbering, the standard transaction type, determines which attribute of the Invoice Transaction Flex field is used to default into the Reference field.

Number Enter the transaction number if automatic numbering is not enabled. If automatic numbering is specified, Receivables generates a number

Class Select the Invoice Class from the list

Type Select the Transaction Type. Transaction types determine whether a transaction updates open receivables, can be posted to GL, if Receivables calculates tax, the transactions creation sign, whether transactions with this type use natural application only or will allow over application, provide the default transaction class, payment term, and printing options for each transaction.

Date Enter the transaction date; the default is the current date

GL Date Enter the GL date; the default is the current date. if the current date is not in an open period, the default is the last date of the most recent open period

Legal Entity

Default legal entity will be populated. This can be changed based security access

Ship To Enter customer ship to address. All other details will be populated by Oracle

Bill To Enter customer Bill to address. All other details will be populated by Oracle

Payment Term

Select the payment term applicable to the customer. Oracle will calculate the due date based on this


More Tab:

Transaction More Tab

Notes Tabbed Region:

Transaction Lines


Freight window reference

Sales Credits Window Reference:

Distributions Window Reference:


Complete: Completing an invoice means that payment schedules and aged receivable amounts are calculated, and this

transaction can be transferred to the GL. When all required information has been entered, click the Complete button. Only completed transactions can be printed.

Press on complete button then go to number tab there one icon will appear press on it then view following window.

Exhibit Completed Transaction

Exhibit Credit Transaction (nav: transactions: credit transactions)


Apply credit amount to open transaction

Say find credit transactions window will appear and click on credit lines following window will appear. Enter number, description, quantity in minus and amount. Save the data.

Query Original Transaction:

Original Transaction Query Credit Memo Transaction which system automatically crated and open the Reference Information Tabbed Region and see the Original Transaction effected Information


Credit Memo Reference Information


Deposit Transaction

Prerequisites

Deposit Transaction Type Process:

Create Deposit Transaction

Create normal transaction and Apply to Commitment (Deposit) Transaction

Open Commitment Tabbed Region and enter commitment amount and Effective Dates

Enter Commitment Amount

Commitment Transaction Create normal transaction and Apply to Commitment (Deposit) Transaction


Run COMMITMENT BALANCE REPORT to know available balance in a Commitment


4 Bills receivables Standard Remitted Bills Receivable Bills receivables is the provision through which organization can get customer transaction amount balance on or before the actual payment by customer. Prerequisites: 1. Customer should be a Drawee

2. There should be a completed transaction of that customer (Drawee)

3. Define transaction type for bills receivables transaction (nav: setup: transactions: transaction types)


Note: Code Combinations (accounts) will be populated from auto accounting (assumed that auto accounting set-up is completed).

4. Define Transaction source for Bills Receivables Transaction ( nav : setup: transactions : sources)


5. Define Receipt Class

Procedure: Now we can create bills receivables transaction

1. N: bills receivable transaction 2. select the transaction type, source, currency, GL date, issue date, customer details 3. click on assign tab 4. select the transaction number save complete 5. bills receivable transaction number will come

Bills Receivables form (1)


Assignment window (3)

Bills receivable transaction status changes from incomplete to pending remittance after completion Remit bills receivable transaction: 1. N: bills receivables remittance. 2. select remittance method, receipt class, payment method, remittance bank etc 3. click on manual creation/auto create 4. N:click on action tabselect createok 5. status becomes started creation then changes to complete creation

Remittance window

Select manual create


Maintain remittance bank

After completion of creation, status changes from started creation to completed creation

Now approve and format


First the status is started approval then changes to completed approval


Factored Bills Receivables

1. Define Receipt Class with remittance method Factoring.( nav: setup: receipt : receipt class)

2. Create a Bills Receivable Transaction( nav: bills receivable : transaction)

Remit the Bills Receivables Complete the transaction and navigate to remittances window (nav: bills receivable: remittances)


Click on maintain to maintain remittance

5. After successful completion of the above programs the status of Bills Receivables will be changed to Factored. 6. Automatically system will create a receipt for the Factored Bills Receivable with receipt number same as Bills

Receivable number.


And you can see the accounting entry for the receipt as follows.

7. After reconciliation/manual clearing in Cash Management the status of the receipt will be changed to Cleared.

And you can see the accounting entry as follows


5 Notes Receivables Receivables let you enter and track future-dated payments. These types of payments can either be a future dated check or a formal document called a promissory note. A promissory note is a formal, printed document in which the issuer promises to a pay a specific amount on a specific date to another party (the note holder). The date that payment is due is called the note maturity date. Promissory notes are guaranteed by the bank that issues the note.

When a promissory note is created, the issuer specifies the amount due, the maturity date, and the bank branch from which the holder can receive the payment. When the note reaches its maturity date, the holder submits it to their bank. The bank then submits the note to a clearing institution, which transfers the payment from the issuer's bank to the holder's bank.

Notes issued by the customer can also be returned to the supplier prior to the maturity date if, for example, the note had been issued as a deposit, advance payment, or as payment for existing customer invoices.

When a promissory note or future dated check is received as payment for goods or services, it is called a Note Receivable.

Prerequisites to complete notes receivables:

1. Define a Receipt class with notes receivables enabled


2. Create & Complete a normal transaction

We can classify the notes receivables based on their remittance method

Standard remittance notes receivables

Factored remittance notes receivables


Standard remittance

1. N:receiptsreceipts

2. Enter receipt payment method, receipt number, receipt amount, * notes receivable issuer details( in more tab page)

3. Apply the receipt amount to the completed transaction.

Process of remitting:

1. N: receiptsremittance

2. select the remittance method, receipt class, receipt payment method, bank etc

3. Click on manual/ auto create

4. Select the receipt approve format.


Note: the status will be started approvalcompleted approvalstarted formatting completed formatting

5. Go to receipt the status changes from conformed to remitted

6. N: tools view accounting (to see the accounting entries)


7. Go to cash management and reconcile the receipt with bank statement

8. In receipt the status changes from remitted to cleared

9. N: tools view accounting(to see the accounting entries)


Factored remittance

Prerequisite:

Define a Receipt Class & the Remittance method should be Factored/Standard &Factoring

Procedure: to create the receipt

1. N: receipts receipts 2. Create a receipt payment method, receipt amount, * notes receivable issuer details (in more tab page) 3. Apply the receipt amount to the completed transaction.

Process: for remittance

N: receipts remittance

Select the remittance method as factor, receipt class, payment method, bank etc

Click on manual / auto create select the receipt approve format


The status becomes completed formatting.

In receipt the status changes from conformed to remitted

6. Switch over to Cash Management and reconcile the receipt with the bank statement. The status of the receipt changes from remitted to cleared

1. Run the clear/ risk elimination program and see the status and entries in receipt


6 Balance Forward Billing Step 1 - Set Up System Option

Select Show Billing Number option (Trans & Customers Tabbed Region) check box to display the forward billing number in Receivables windows and reports.

Step 2 - Define Payment Terms

Create one or more proxima payment terms for use with consolidated billing invoices. The Consolidated Billing Invoice program uses the cutoff date and payment terms that you specify in the submission parameters to select the transactions to include on a consolidated billing invoice.

When defining proxima payment terms for consolidated billing, perform the following:

Enter a Cutoff Day - The program uses this day to select transactions for a consolidated billing invoice.

Enter a single due date in the Day of Month field - You cannot use multiple due dates (i.e. split payment terms) with consolidated billing invoices. Additionally, when defining the due date, enter a value for the Months Ahead field. Do not enter a value in the Days or Date fields; the Consolidated Billing Invoice program does not use either field.

You can define more than one payment term for use with consolidated billing invoices. These payment terms can use the same or a different cutoff day. When printing consolidated billing invoices, you can specify which payment term to use.

Step 3 Define - New or Update Existing Customer Profiles

A customer's profile class indicates whether a customer should receive consolidated billing invoices and whether the invoice format is Detail or Summary. The profile class also determines the payment term on the consolidated billing invoice.


Consolidated billing invoices are generated at the bill-to site only. Customers with multiple bill-to sites cannot receive a single invoice that consolidates transactions across customer sites.

If a customer has multiple bill-to sites, the level at which you define a consolidated billing profile class determines the number of consolidated bills that are printed for that customer. When you define a consolidated billing profile class at the customer level only, Receivables will print many consolidated billing invoices, one for each bill-to site. When you define a consolidated billing profile class at a bill-to site only, Receivables will print a single consolidated billing invoice specific to that bill-to site.

Update the profile class at the customer and/or the customer site level to enable consolidated billing:

Check the Enable (X) check box.

Choose a consolidated billing format.

Choose a Format of Summary, Detail, or Imported. Choose the Detail format to list the item description, quantity, and unit price for each item on each invoice; choose the Summary format to list only the total amount of each transaction.

Attention: The Imported format is for use with the Imported Billing Number feature. The Imported format will not be printed through the Consolidated Billing Print program. Use custom invoices instead.

Assign a proxima payment term and uncheck the Override Terms box.

You must assign a proxima payment term at either the customer site or the business purpose level for any bill-to site that you want to send a consolidated bill to.

Do not check the Override Terms box on the customer profile. The Consolidated Billing Invoice program ignores the payment terms assigned to individual invoices when selecting transactions. Receivables, however, uses the payment terms on individual invoices to calculate aging and finance charges. If you check this box, then individual invoices may have payment terms that are different from the consolidated bill's payment terms. Consequently, a customer could receive a consolidated bill that includes invoices that are already past due and incurring finance charges. By not checking the Override Terms box, Receivables automatically defaults payment terms for invoices from the customer profile. All invoices for a given bill-to site, therefore, will have the same payment term as the consolidated billing invoice.

Suggestion: If you want to print a consolidated billing invoice for all of a customer's bill-to sites, enable consolidated billing at the customer level and enter the proxima payment term at the business purpose level for all the bill-to sites.

Exhibit Customer Profile Transactions-Terms


Consolidated Bill

1. Enter Transactions and Create Accounting 2. Submit Concurrent Program (Request or Function)


Next Period


7 Receipts

Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether the receipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied.

You can enter two types of receipts in Receivables:

Standard: Payment (such as cash or a check) that you receive from your customers for goods or services.

Miscellaneous: Revenue earned from investments, interest, refunds, and stock sales.

You can apply receipts to invoices, debit memos, deposits, guarantees, on-account credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. You can also create chargebacks or adjustments against these transactions.

If you do not specify a customer for a receipt, the receipt is unidentified. In this case, the receipt amount appears in the Unidentified field in the Receipts window. You cannot apply an unidentified receipt.

Note: You can view the detail accounting lines for an existing receipt in the form of a balanced accounting entry (i.e., debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as t-accounts.

Receipt Status

A receipt can have one of the following statuses:

Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.

Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed.

Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts.

Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts.

Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non-sufficient funds or if you want to re-enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous transactions.


Standard Receipts

1. Enter the receipt information, including Receipt Number, Currency, Receipt Amount, GL Date, and Receipt Date. The default Receipt Date is the current date, but you can change it. If the Receipt Date is not in an open period, Receivables changes the GL Date to the last date of the most recent open period. You can change the GL Date, but it must be in an open or future period.

You can enter transactions in any currency defined in the system if you have at least one remittance bank account with a Receipts Multi-Currency flag set to Yes. If no such bank account exists, you are limited to entering only those currencies in which bank accounts exist. (The currency of a multiple currency bank account must be the same as your functional currency.)

If the currency for this receipt is different from your functional currency and you have not defined daily conversion rates, enter exchange rate information.

2. Enter a Payment Method. Receivables use the payment method to determine the accounting and remittance bank accounts for this receipt. You can only select payment methods that have remittance bank accounts that are in the same currency as the receipt.

3. If you are using manual document numbering, enter a unique Document Number. If you are using automatic document numbering, Receivables assigns this transaction a unique number when you save.

4. To help identify the customer for this receipt, enter a Transaction number (optional). Receivables display the customer associated with this transaction. If multiple customers have transactions with the number you entered, Receivables displays a window from which you can select a customer. If you enter a number here, Receivables displays the customer number in the Applications window when you apply this receipt.

5. If you did not enter a Transaction number and the receipt is not unidentified, enter customer information for this receipt, including Customer Name or Number and Bill-To Location. When you enter the customer, Receivables enters this customer's primary Bill-To Location, if one exists (you can change this value). If the system option Require Billing Location for Receipts is set to Yes, you must enter a Bill-To Location.

Attention: If you do not enter a Bill-To Location and the customer has no statement site, any unapplied or on-account receipt amounts will not appear on statements sent to this customer.

6. If you are manually entering an automatic receipt, enter a Bank Name or Account Number.

7. Open the Remittance tabbed region, then enter the receipt Deposit Date (optional). The default is either the deposit date entered at the batch level or, if there is no batch information, the receipt date. The default receipt maturity date is the deposit date.

8. Receivables derive the default remittance bank account from the payment method you entered. You can accept this value or enter any bank account assigned to the payment method if the bank account is in the same currency as that of the receipt or the Multi-Currency flag for the remittance bank is set to yes. Only bank accounts that are in your functional currency can accept multiple currency deposits.

9. To prevent the receipt Remittance bank from being automatically overridden during the remittance process, choose Don't Allow in the Override Bank Account field (optional). If you choose Allow, Receivables can automatically change the receipt remittance bank to the remittance batch bank during the remittance process.

10. If bank charges apply, enter an amount for Bank Charges. Bank charges may apply if the receipt's creation status is 'Cleared' (the clearance method of the associated receipt class must be set to 'Directly').

11. Save your work. If you entered a customer, the receipt amount appears in the unapplied field. Otherwise, the entire receipt amount appears in the unidentified field.

- Unidentified Receipt


Enter Header level information only

To view the accounting entries Tools>View Accounting Accounting Entries for Unidentified Receipt


Unapplied Receipt:

Enter the Customer Name and Press Tab button amount transferred from Unidentified to Unapplied

View the accounting for Unapplied Receipt

Applied Receipt: Press from the receipt window and enter specific transaction you can see the particular transaction or all the transaction of the customer.


On Account Receipts: 1. Enter Receipt & select customer 2. Press Apply button 3. Select On Account from the list of values and save.

Accounting for On Account Receipt

Chargeback (Receipt) Transaction

1. Enter Normal Transaction 2. Enter Partial Receipt 3. Apply receipt amount to transaction & create chargeback 4. Find Chargeback Transaction


Apply to Transaction & Save

Enter the Type as Chargeback

Enter the new due date and save, system will assign a Chargeback Number.

Query the charge back Transaction from Transaction window.


Transaction Class & Type will be Chargeback.

Due date will be the date which you entered at the time of chargeback in Receipt. Press more tab and see the Original Transaction number applied to Chargeback

Query Original Transaction

The balance of Original Transaction will be Zero.

Whenever you receive the amount from the customer apply that amount to Chargeback Transaction.


Receipt Adjustments

Prerequisites

Receivable Activity

Process:

Enter Standard Receipt

Apply to Open Transaction

Apply to Adjustments & Select Adjustment Activity

Apply to Open Transaction Select Activity Name from List of Values and save, system will assign a number for adjustment


Apply to Adjustment & Selecting Activity Name

Activity names Accounting entry for adjustment & observe Transaction Number applied to (for Adjustment system will pickup account code combination from Receivable Activity which you selected for)

Accounting for Adjustment


8 Remittances

Standard Remittance Prerequisites:

Receipt Class

Bank Process: 1. Enter Receipt 2. Standard Remittance 3. Select Receipts 4. Approve 5. Format

Different Statuses of Remittance Batch

Started Creation

Completed Creation

Started Approval

Completed Approval

Started Formatting

Completed Format

Standard Receipt


Standard Remittance Enter Dates, Remittance Method as Standard, Receipt Class, Payment Method, Bank Details and Press Receipt.

Selecting Receipt for Remittance Select Receipts which you want to remit to Bank and save. Press Approve and system will populate a Decision Box press yes


After Completed Approval re-query remittance batch and press Format button system will populate a Decision Box Press Yes

Receipt Status will be changed from Confirmed to Remitted

After successful receipt remittance go to Cash management and Select receipt and press clear transaction (Manually clear receipt)

Receipt Status will be changed from Remitted to Cleared

View Receipt History from Receipt window


Factored Remittance Prerequisites

Receipt Class with Remittance method Factored or Standard and Factoring Process Steps a) Create Receipt b) Remittance with Factoring c) Select Receipt for which you want to Factor d) Submit Approval/Format e) Clear Transaction in CM(optional) f) Run Automatic Clearing for Receipts Program a) Create Receipt

b) Remittance with Factoring

c) Select Receipts for which you want to Factor


d) Submit Approval/Format Your can submit format without submitting approval, first system will run approval process and after format process.

Receipt status will be changed from Confirmed to Remitted

View accounting entries for Confirmed and Factored Receipts

e) Clear Transaction in CM (optional) After this process go to Cash Management and manually clear transaction Accounting entry will be

Dr Cash Cr Short Term Dept

And Receipt Status will changed from Remitted to Cleared f) Run Request Automatic Clearing for Receipts and view output file

Automatic Clearing for Receipts


Automatic Clearing for Receipts Program output After successful completion of the above program accounting entry will be

Dr Short Term Dept Cr Factor

Receipt status will changed from Cleared to Risk Eliminated


9 Miscellaneous Receipts Prerequisites:

Miscellaneous Cash Receivable Activity Process:

Enter Receipt

Select Receipt Type as Miscellaneous

Select Activity Purpose from list of values


Accounting Entry for Miscellaneous Receipt

10 Payment Netting You can net receipts in Receivables. To net receipts, you apply a receipt against another open receipt, and then apply the resulting unapplied receipt balance to a transaction.

Open receipts include receipts that have:

Unapplied cash

On-account cash

Attention: When netting receipts, both receipts must be in the same currency.

Prerequisites:

Receivable Activity Payment Netting

Process:

a) Create Standard Receipt ( On-Account/Unapplied) b) Create another Standard Receipt & Apply to on Account/Unapplied receipt

a) Create one receipt and apply the amount to on account.

b) Create another receipt and apply to on account receipt and open transaction


Observe New Receipt applied amount

View Accounting Entry for new receipt

Observe old receipt i.e., On Account Receipt changed to Applied Receipt


11 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 consists of four periods: -999 to 0 days past due, 1 to 30 days past due, 31-61 days past due, and 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.

Aging Buckets

Ageing Report View

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