Category Archives: AR

Receivables System Options

Receivables System Options

The settings in System Options that impact AutoInvoice are in the Trans and Customers tab. The following screenshot shows recommended settings for fields in the ‘AutoInvoice’ Section. Also highlighted is the Grouping rule we defined earlier.

Log file message level = 10 provides the most detailed debug messages, and is useful when you are debugging or troubleshooting.

 Receivables Manager
Navigation: Setup > System > System Options

Receivables Customer Profile Classes

Receivables Customer Profile Classes:

Setting up a customer profile class enables to default information into new customer records and enhances ability to quickly setup and define new customers.

Use Customer Profiles to group customer accounts with similar creditworthiness, business volume, payment cycles, and late charge policies.

Responsibility: Receivables Manager
Navigation: Customers > Profile Classes

setup information impacting Late Charges:

Information in the Profile Class Amounts tab allows you to set default values for various Currency/Amount related fields. The details you provide in the Currency Rates and Limits section help you define thresholds for how much business you can conduct with a customer in this profile class and receipt and statement amounts. In the Tolerance section you define data that is used for Late Charge calculation.

Receipt Classes and Methods Setup

Receipt Classes and Methods

Receipt Class Setup:

Defining Receipt Classes to determine the required processing steps for receipts to which receipt methods with this class are assigned. Receivables uses the receipt method assigned to a receipt class to determine how to account for receipts created using this receipt class. For each receipt class  a creation mentioned, remittance method, and whether to require bank clearance for receipts should be specified that assigns to this class.

Responsibility: Receivables Manager
Navigation: Setup > Receipts > Receipt Classes

Select the Bank Accounts button and setup the bank account and GL accounts associated to this method.

Transaction Sources

Transaction Sources

Transaction Source Overview

Transaction Source setup plays a key role in determining the behavior of the Transactions form as well as how AutoInvoice validates data to be imported. When you create a transaction, and associate it to a Transaction Source, several attributes of the Source are defaulted into the transaction The following functionality is controlled by your transaction source setup:

  • Transaction Numbering – Automatic or Manual
  • GL Date Derivation
  • Grouping Rules
  • Customer Information – Values Passed (ID, Value, Segment)
    • Bill To and Ship To
    • Address
    • Contact
    • Payment Method
  • Accounting Information – Values Passed (ID, Value, Segment)
    • Invoicing Rule
    • Payment Terms
  • Sales Credit Validation
  • How to process Invalid Lines
  • How to Process GL Dates in a Closed Period

Active transaction sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows.  For Bills Receivable, the transaction batch sources appear in the Bills Receivable and Bills Receivable Transaction Batches windows.

There are two types of transaction sources:

  • Manual: Used for transactions created manually in the Transactions Workbench.
  • Imported: Used for importing transactions using AutoInvoice.

The following lists the 6 tabbed regions in the Transaction Source form. Only the first tab is enabled when creating Manual  transaction sources. For Imported transaction sources, all 6 tabbed regions are enabled.

1. Batch Source
2. AutoInvoice Options
3. Customer Information
4. Accounting Information
5. Other Information
6. Sales Credit Validation

Oracle Receivables provides the following seeded Transaction Sources:


  • Global Intercompany
  • Intercompany
  • Order Entry Delivery Invoicing
  • PA Internal Invoices
  • Property Manager Batch Source
  • Trade Management
  • Work Order Billing


  • Chargeback
  • DM Reversal
  • Loans

Batch sources define default information such as transaction type and automatic numbering. There are two types available: Manual and Imported. AutoInvoice requires a batch of type Imported.

 Receivables Manager
Navigation: Setup > Transactions > Sources

  • Batch Source Name –Tip: If you have installed multiple organization support (multi-org), define an imported batch source with the same name in each organization (these sources can have the same or different settings). This enables you to import  order lines that belong to different organizations in Oracle Order Management “into corresponding organizations” in Receivables.
Note:  The Batch Source parameter selected must match the value in the interface table.  For this reason, local language names are not displayed in the LOV when running AutoInvoice
  • Automatic Batch Numbering
    • Checked – indicates batches are automatically numbered, using the sequence provided in Last Number
    • Unchecked – indicates batches will require users to enter a batch number manually
  • Automatic Transaction Numbering
    • Checked – indicates the transactions within this batch will be numbered automatically from the sequence value provided in Last Number
    • Unchecked – indicates manual transaction numbering, which will require users to enter a transaction number manually during data entry
  • Copy Document Number to Transaction Number – indicates whether you want the document number generated to overlay the transaction number. This feature is necessary to implement gapless transaction numbers
    • Allow Duplicate Transaction Numbers – indicates whether duplicate numbers should be prevented or not during data entry
    • Copy Transaction Information Flexfield to Credit Memo – indicates whether the descriptive flexfield information from an Invoice should be copied into the Credit memo that credits the transaction
      • Generate Line Level Balances – indicates whether you want transactions in this batch to maintain line level balances useful for Line Level Cash Applications
      • Receipt Handling for Credits – for cases where you are interfacing a credit memo against an Invoice that has already been fully paid, you have the option of unapplying the receipts so that AutoInvoice can continue crediting the transaction. Available options are:
        1) Refund – to issue a credit card refund for the receipt or
        2) On-Account – put the receipt in On-Account
      • Reference Field Default Value – indicates which line transaction flexfield segment, i.e. RA_INTERFACE_LINES_ALL.INTERFACE_* field, you want to appear in the Reference field in the Transaction form
      • Standard Transaction Type – is the default transaction type for transactions in this batch
      • Credit Memo Batch Source – is the default batch source Receivables will use when creating Credit Memos against transactions within this batch source

The AutoInvoice Options tab highlights the Grouping rule created earlier.  The setup indicates this batch will group data as specified in this grouping rule. The Payment Details Defaulting Hierarchy is set to Parent of Bill-To Customer.

    • Invalid Line – indicates the action to take when an interface line has an error, valid values are:
      Reject Invoice and Create Invoice
    • GL Date in a Closed Period – indcates the action to take when the GL date provided in interface falls in a closed period, valid values are: Adjust and Reject
    • Grouping Rule – indicates the default Grouping rule to use for interface lines using this batch source.
    • Payment Details Defaulting Hierarchy – this field has 2 possible values:


      • Parent of Bill-To Customer – this is the default value and uses the defaulting hierarchy:
        1. Primary receipt method of the parent primary bill-to site
      • 2. Primary receipt method of the parent customer

        3. Primary receipt method of the bill-to site
        4. Primary receipt method of the bill-to customer
    • Bill-To Customer – this uses the following defaulting hierarchy:
      1. Primary receipt method of the bill-to site
      2. Primary receipt method of the bill-to customer
      3. Primary receipt method of the parent primary bill-to site
      4. Primary receipt method of the parent customer
  • Create Clearing – when checked, any differences between the specified revenue amount and the price multiplied by the quantity for imported invoice lines are stored in a clearing account. You must define a clearing
    account if you enable this.
  • Allow Sales Credit – when checked, indicates that sales credits can be entered for transactions using this source

The following screenshots show the rest of the sub-tabs of this form, including Customer, Accounting, Salescredit and other information. You need to define whether the data you will interface provides the Value or the ID so that AutoInvoice can validate the data.

Customer Information tab:

Accounting Information tab:

Other Information tab:

Sales Credit Validation tab:

Batch Source for use in the Transactions Workbench

Responsibility: Receivables Manager
Navigation: Setup > Transactions > Sources


Receivables Payment Terms

Receivables Payment Terms

Defining payment terms allows to specify the due date, installment and discount date for open items.

Define balance forward payment terms to bill customers periodically (daily, weekly, or monthly) at the account or site level using Balance Forward Billing. This in detail will be discussed in another post as this is a new feature in R12.

Create split payment terms for invoice installments that have different due dates can be setup.

NOTE:  Once a payment term has transactions associated to it, it cannot be updated.  A new payment term would need to be created.

Receivables uses the following hierarchy to determine the default payment term for your transactions, stopping when one is found:

  • Bill-to site, set at the Site level profile of the customer record
  • Customer, set at the Account level profile of the customer record
  • Transaction Type

Notes about Defaulting Payment terms:

  1. The defaulting hierarchy described above is only used for manually entered transactions. When AutoInvoice is used then either a TERM_ID or TERM_NAME in RA_INTERFACE_LINES_ALL (depending on how you have set up your transaction batch source) needs to be provided.  AutoInvoice will not default a payment term for, as doing so would significantly slow down the performance of the process.
  2. When using the Balance Forward Billing (BFB)  feature, and the customer you are interfacing data for is BFB enabled, the payment term associated to the customer profile (either site level or account level, depending on the Bill Level setup) is defaulted in by AutoInvoice.If  in the customer profile, you have Override Terms checkbox checked, you still cannot override the payment term if the following conditions are true:
    • The customer you are interfacing data for is a BFB enabled customer
    • The payment term you are providing in the interface tables is a BFB term that is different from the default payment term you have set up at the Account or Site profile

    If on the other hand, the payment term you are providing in the interface table is not a BFB term, then AutoInvoice will allow you to override the default BFB term.

    The behavior described above is in line with the concept of Balance Forward Billing, which provides a mechanism for outstanding transactions of a particular customer (or site) to all have a common due date based on a billing cycle. Hence, it is illogical to allow a customer or site’s transactions to be associated to many different BFB terms as that defeats the purpose of defining a billing cycle.

Receivables provides the following predefined payment terms:

  • 30 NET: The balance of the transaction is due within 30 days.
  • IMMEDIATE: The balance of the transaction is due immediately.

If you need to define payment terms specific for your business requirements, you can create additional payment terms.

Responsibility: Receivables Manager
Navigation: Setup > Transactions > Payment Terms

The setup shown below is for a payment term that has a due date 40 days from the transaction date. If the invoice amount is payed in 10 Days then 2 Percent discount will be given to the Invoice.