AutoAccounting Rules

AR AutoAccounting Rules

AutoAccounting enables to create default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, late charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts. Based on the setup the receivable account is defaulted on the Invoice line Distributions. It help as an account generator.

Accounts which can be setup to use AutoAccounting

  • Autoinvoice Clearing – Formerly called Suspense Account,  is used to specify the clearing account for your imported transactions. This account holds any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. This account will be used if you enable Create Clearing, in the Autoinvoice Options tab for the batch source of your imported transactions.
  • Bills Receivable – This account is used to record the Receivable amount for a completed or accepted Bills Receivable
  • Factored Bills Receivable – This account is used to record the Receivable amount for Bills
    Receivable transactions remitted as Factored with Recourse
  • Freight – This account will be used to record Freight amounts, it cannot be based on tax code.

Note: If you choose standard item as a source, you will not be able to import invoices with header level freight though Autoinvoice.

  • Receivable – This account  is used to record the Receivable amounts for transactions, it cannot be based on your inventory item or tax code
  • Remitted Bills Receivable – This account is used to record the Receivable amounts when remitting a Bills Receivable with Standard Remittance
  • Revenue – This account is used to record the Revenue amounts, it cannot be based on tax code.
  • Tax – This account is used to record the Tax amounts.
  • Unbilled Receivable – This account is used for transactions which use the Bill in Arrears invoicing rule, it cannot be based on tax code.
  • Unearned Revenue– This account is used for transactions which use the Bill in Advance invoicing rule, it cannot be based on tax code.
  • Unpaid Bills Receivable– This account is used to record the Receivable amount when you mark a Bills Receivable as Unpaid.

Sources for AutoAccounting

Depending upon which of the above accounts you are setting up, the value for the source of each segment can come from various Table Sources as shown in the following table.

GL Account Source Table Name
Autoinvoice Clearing Salesreps
Sites
Standard Lines
Transaction Types
Bills Receivable Transaction Types
Sites
Factored Bills Receivable Remittance Banks
Sites
Transaction Types
Freight Salesreps
Sites
Standard Lines
Transaction Types
Receivable Salesreps
Sites
Transaction Types
Remitted Bills Receivable Remittance Banks
Sites
Transaction Types
Revenue Salesreps
Sites
Standard Lines
Transaction Types
Tax Salesreps
Sites
Standard Lines
Taxes
Transaction Types
Unbilled Receivable Salesreps
Sites
Standard Lines
Transaction Types
Unearned Revenue Salesreps
Sites
Standard Lines
Transaction Types
Unpaid Bills Receivable Sites
Transaction Types

 

Reference: metalink.oracle.com

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AR Transaction Types

AR Transaction Types

Oracle Receivables by seeded provides the following five transaction types:

  1. Invoice
  2. Credit Memo
  3. Projects Credit Memo
  4. Projects Invoice
  5. Intercompany

If need can be setup based on the business scenarios.

Responsibility: Receivables Manager
Navigation: Setup > Transactions > Transaction Types

Create a new Transaction Type:

If a Credit memo needs to be imported, create a new Credit Memo transaction type by just changing the Class as Credit Memo and Sign as Negative.

Importance of each field in the Transaction Type setup are below:

  • Class – indicates the classification of this transaction, valid values are: Bills Receivable, Chargeback, Credit Memo, Debit memo, Deposit, Guarantee, Invoice
  • Creation Sign – indicates the default sign of your transaction, valid values are: Positive, Negative, Any
  • Transaction Status – is the default status of this transaction type, valid values are: Open, Closed, Pending and Void
  • Printing Option – indicates whether transactions using this type can be printed via Invoice Printing, valid values are: Print and Do not Print
  • Credit Memo Type – default transaction type to use when crediting this transaction type, this field is disabled when Class is Bills Receivable or Credit memo
  • Terms – default payment terms for this transaction, this field is disabled when Class is Bills Receivable or Credit memo
  • Open Receivable – indicates whether this transaction’s balance impacts a Customer’s Receivable balance
  • Post to GL – indicates whether the accounting entries of this transaction should post to the General Ledger
  • Natural Application Only
    • Checked – activities against this transaction can only bring its balance towards zero
    • Unchecked – activites against this transaction can increase it’s amount, i.e. a negative balance becomes more negative and a positive balance becomes more positive

  • Exclude from Late Charges Calculation – you can disqualify this transaction type from being included in the generation of late charges
  • Allow Freight – indicates whether or not you can associate freight to this transaction type
  • Default Tax Classification – defaults tax classification code for this transaction. This value is only relevant in release 11.5 or a release 12 instances that are using E-business tax setups defaulted from an upgraded release 11.5 instance
  • Allow Overapplication
    • Checked – activities against this transaction can cause the sign of the balance to change Example: an original positive amount ($150), can change to negative amount (-$50) due to receipt applications
    • Unchecked – activities against transaction cannot exceed its remaining balance

     

Reference: Metalink.oracle.com

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Receivables Profile Options

Receivables Profile Options

1. Security Profile

There are three profile options which govern access to data partitioned by organizations.

MO: Operating Unit 
R11i profile option that will be maintained for those products and customers not leveraging Multiple Organizations.

MO: Security Profile 
The MO Security Profile controls the list of operating units that a responsibility can access. So you would assign the Security Profile that you just created to this profile option. The lowest level you can set the profile option for is the responsibility level.
MO: Default Operating Unit 
This allows you to specify an operating unit that will be the default when you open different subledger application pages. Because users can access multiple operating units, you may want to set up a default operating unit rather than forcing users to constantly have to choose one during data entry.  When we talk about the User Preferences later, you can also specify a different default operating unit than the one assigned to this profile option.

2. AR: AutoInvoice Gather Statistics

This profile option determines if the AutoInvoice Master program analyzes and gathers information about the interface tables each time AutoInvoice is run. Analyzing tables ties up system resources, but in some cases may address AutoInvoice performance issues.

If the value for this profile option is set to Yes, or is null, AutoInvoice analyzes the interface tables and gathers statistics. If the value is set to No, AutoInvoice does not analyze the interface tables.

This profile option can be set by the system administrator at the site, application, responsibility, and user levels. The user can also update this profile option.

3. AR: Default Exchange Rate Type

This option determines the default exchange rate to use when converting foreign currency transactions to your functional currency.

Valid values are:

  • Corporate Exchange Rate – An exchange rate you define to standardize rates. This rate is usually a standard market rate determined by senior financial management for use throughout the organization.
  • Spot Exchange Rate – An exchange rate to perform a conversion based on the rate on a specific date.
  • User Specified Rate – An exchange rate to specify when entering a foreign currency transaction.

Default Exchange Rate Used By AutoInvoice

1. In Order Management navigate to:
Setup > Transaction Types > Define

2. Then query for the transaction type you use.

The transaction type code should be ORDER, if you are using the rate for the order and not each line individually.

3. Then go the Finance tab and check what is the Conversion Type you have specified.

4. Try to change this to the one, you require and save it. 
Then, for those orders using this transaction type, the type you specify would be the conversion type used by the program. 

Please note that you have to set this up from the OM side. 
Once the interface is run, you cannot change the rate.

4. AR: Maximum Lines per AutoInvoice Worker

This profile option lets you set a maximum number of lines per AutoInvoice worker. The value for this option can be set by the system administrator at the site, application responsibility, and user levels, but cannot be updated by the user. This profile option has no default value.

5. AR: Use Invoice Accounting For Credit Memos

This profile option determines whether to assign your credit memo to the same accounts that are assigned to the invoice you are crediting.

The value for this option can be set by the system administrator at the site, application,responsibility, and user levels, but cannot be updated by the user.

Note:

If you are interfacing data from Project Accounting, you need to set this profile to No at the application level for Oracle Projects. This setting will then allow data to be passed into RA_INTERFACE_DISTRIBUTIONS_ALL table for Projects Invoices.

6. Sequential Numbering

Sequential Numbering assigns numbers to documents that you create in Oracle financial products. For example, when you are in a window that creates invoices, each invoice document can be numbered sequentially.

Sequential numbering provides a method of checking whether documents have been posted or lost.
Not all windows within an application can be selected to support sequential numbering.

Sequential Numbering has the following profile option settings:

  • Always Used – You may not enter a document if no sequence exists for it.
  • Not Used  – You may always enter a document.
  • Partially Used – You will be warned, but not prevented from entering a document, when no sequence exists.

Only system administrators can change this profile option. Users can see this profile option, but they cannot update it.

This profile option is visible and updatable at the site, application, and responsibility levels.

Reference: metalink.oracle.com

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Receivables Descriptive Flexfields

Receivables Descriptive Flexfields

Oracle Receivables uses the transaction flexfields to uniquely identify each transaction line that is imported though AutoInvoice.

AutoInvoice is capable of using information from four types of transaction flexfields:

  • Line Transaction Flexfield
  • Link-to Transaction Flexfield
  • Reference Transaction Flexfield
  • Invoice Transaction Flexfield

If Autoinvoice is used it is mandatory to define: (1) Line Transaction Flexfield (line level information) and (2)  Invoice Transaction Flexfield (header level information).

If Link-to and Reference Transaction flexfields is not explicitly defined, Autoinvoice will use the flexfield structure of the Line Transaction Flexfield to determine Link-To and Reference information.

Creating a Line Transaction Flexfield:

The Line Transaction Flexfield must be defined if implementing AutoInvoice. Line Transaction Flexfields are unique for each record in the interface table and therefore can be used as record identifiers.

When defining Line Transaction Flexfield the following must be consider:

  • Unique Identification

The combination of segment values must be defined to uniquely identify each incoming transaction line. Each line must be unique in RA_INTERFACE_LINES_ALL. These unique lines are the basis of the data created in RA_CUSTOMER_TRX_LINES_ALL which contains line items for existing chargebacks, credit memos, debit memos, deposits, and invoices.

  • Grouping

The Grouping Rules to group the segments of the Line Transaction Flexfield, such that identical data in some attributes will create a single invoice.

  • Ordering

The segment values in Line Transaction Flexfield segments with Line Ordering Rules to change the sequence of invoice lines grouped into an invoice.

  • Information

The Line Transaction Flexfield can be seen in invoice lines.  You can define segments of the flexfield to contain descriptive information.  You can later use this descriptive information to query and find your invoices in the Transactions Workbench.

Use columns INTERFACE_LINE_ATTRIBUTE1-15 and INTERFACE_LINE_CONTEXT

The value you provide in INTERFACE_LINE_CONTEXT allows Autoinvoice to verify that you have provided the correct number of segments in your interface data, to match the segments you defined in your Line Transaction Flexfield. Usually it is defined

The following are some examples of Line Transaction Flexfields that are seeded by Oracle for AutoInvoice:

CLAIM 
CONTRACTS 
EXCHANGE INVOICES 
EXCHANGE_XML_INVOICE 
INTERCOMPANY 
LOANS 
OKS CONTRACTS 
ORDER ENTRY 
ORDER MANAGEMENT 
PROJECTS INVOICES 
SERVICE 
STP NETTING

Responsibility: Receivables Manger
Navigation: Setup > Financials > Flexfields > Descriptive > Segments

Query for Application = Receivables, Title = Line Transaction Flexfield

See the Interface line attribute6 is populated Order Line Id:

Now defining  Line Transaction Flexfield structures to bring in transactions from outside sources.

Creating new Line Transaction Flexfield Code: XAOA, Name: AOA Flexfield, Description: All Oracle Apps Flexfield

Click on the Segments button and add two rows as shown below. These two rows are just to demonstrate the flexfield concept, you can add as many rows as necessary to capture the information you want to store. The combination of the values in the segments should uniquely identify each transaction line.

Save your changes, go back to the previous form and this time check the Freeze Flexfield definition checkbox.

Compile the Flexfield Definition as below:

Once this has completed the new transaction flexfield is ready for use. The data from the Line Transaction flexfield is stored in RA_CUSTOMER_TRX_LINES_ALL.INTERFACE_LINE_ATTRIBUTE1-15 and
RA_CUSTOMER_TRX_LINES_ALL.INTERFACE_LINE_CONTEXT.

Creating a Link-to Transaction Flexfield:

Link-To Transaction Flexfields have the same structure as the Line Transaction Flexfield. Link-To Transaction Flexfields are used to relate rows within a batch of interface table data to each other. This is used to import tax and freight charges associated to specific transaction lines.

Use columns LINK_TO_LINE_ATTRIBUTE1-15 and LINK_TO_LINE_CONTEXT to link a Freight or Tax Line to a particular transaction line.

Responsibility:
 Receivables Manager
Navigation: Setup > Financials > Flexfields > Descriptive > Segments

Query for Application = Receivables, Title = Link-to Transaction Flexfield

Unfreeze the Flexfield definition and add a new Context in the Context Field Values section as shown below:

Add records one for Order Id and Line Id. The combination of the values in the segments should uniquely identify each transaction line. The structure should be similar to the Line Transaction Flefield.

Freeze the flexfield definition and compile the Flexfield.

The values in the LINK_TO_ATTRIBUTE* fields in row 2, contain the values in the INTERFACE_ATTRIBUTE* fields in row 1. This indicates that row 2 contains the TAX data for row 1 LINE.

The data from the Link-to Transaction flexfield is stored in RA_CUSTOMER_TRX_LINES_ALL.LINK_TO_ATTRIBUTE1-15 and
RA_CUSTOMER_TRX_LINES_ALL.LINK_TO_CONTEXT.

Creating a Reference Transaction Flexfield:

Reference Transaction Flexfields have the same structure as the Line Transaction Flexfields, this is used to apply a credit memo to an invoice, or associate an invoice to a commitment within the same interface batch data.

Use the REFERENCE_LINE_ATTRIBUTE1-15 and REFERENCE_LINE_CONTEXT columns to contain the line transaction flexfield values of the invoice or commitment this transaction is associated to.

Responsibility: Receivables Manager
Navigation: Setup > Financials > Flexfields > Descriptive > Segments

Query for Application = Receivables, Title = Reference Transaction Flexfield

Create a new Context for AOA REF.

Add new records for Order Id and Legacy Id for reference.

This data interfaces a credit memo against the invoice in the interface table that has INTERFACE_LINE* fields = ORDER 1 and LEGACY LINE 1.

The data from the Reference Transaction flexfield is stored in RA_CUSTOMER_TRX_LINES_ALL.REFERENCE_LINE_ATTRIBUTE1-15 and
RA_CUSTOMER_TRX_LINES_ALL.REFERENCE_LINE_CONTEXT.

Freeze the Flexfield definition and Compile the Flexfield Definition.

Creating an Invoice Transaction Flexfield:

Invoice Transaction Flexfield is for header level segments. If you define this flexfield, then the segments you use here should also be included in the AutoInvoice grouping rules.

Use columns HEADER_ATTRIBUTE1-15 and HEADER_ATTRIBUTE_CATEGORY.

The flexfields captured here are stored at the transaction header level as opposed to the transaction line level used by the previous 3 flexfields.

If  interfacing data from Order Management, the data you populate in the Order header transaction flexfield (Transaction Flexfield for Application = Order Management, Title = Additional Header Information) is interfaced into RA_INTERFACE_LINES.HEADER_ATTRIBUTE_CATEGORY + HEADER_ATTRIBUTE1-15.

Responsibility: Receivables Manager
Navigation: Setup > Financials > Flexfields > Descriptive > Segments

Query for Application = Receivables, Title = Invoice Transaction Flexfield

Unfreeze the Flexfield and create a new context for Header as below:

The combination of the values in the segments should uniquely identify each transaction. The value under Column is not completely shown, the rows have the value INTERFACE_HEADER_ATTRIBUTE1 to INTERFACE_HEADER_ATTRIBUTE3.

The Invoice Transaction Flexfield should contain data that is unique per transaction (and not per transaction line). The structure of this flexfield does not need to correspond to the Line Transaction Flexfield data

Freeze and compile the flexfield definition. The data from the Invoice Transaction Flexfield are stored in RA_CUSTOMER_TRX_ALL.ATTRIBUTE1-15 and RA_CUSTOMER_TRX_ALL.ATTRIBUTE_CATEGORY.

Seeded Line Transaction Flexfield information:

Listed below are the more popularly used seeded Line Transaction Flexfields in AutoInvoice. The table shows the Context Name (INTERFACE_LINE_CONTEXT) and the values in each of the segments associated to the Line Transaction Flexfield.

Context Name RA_INTERFACE_LINES_ALL field Description
CLAIM INTERFACE_LINE_ATTRIBUTE1 Claim Number
INTERFACE_LINE_ATTRIBUTE2 Claim Id
INTERFACE_LINE_ATTRIBUTE3 Claim Line Id
INTERFACE_LINE_ATTRIBUTE4 Earnings Attached Flag
INTERFACE_LINE_ATTRIBUTE5 Customer Reference
INTERFACE_LINE_ATTRIBUTE6 Customer Reason
INTERFACE_LINE_ATTRIBUTE7 Claim Reason
CONTRACTS INTERFACE_LINE_ATTRIBUTE1 Contract Id
INTERFACE_LINE_ATTRIBUTE2 Service Id
INTERFACE_LINE_ATTRIBUTE3 Contract Number
INTERFACE_LINE_ATTRIBUTE4 Billing Id
INTERFACE_LINE_ATTRIBUTE5 Contract Type Id
INTERFACE_LINE_ATTRIBUTE6 Contract Group Id
INTERFACE_LINE_ATTRIBUTE7 Transaction Start Date
INTERFACE_LINE_ATTRIBUTE8 Transaction End Date
INTERFACE_LINE_ATTRIBUTE9 Transaction Amount
INTERFACE_LINE_ATTRIBUTE10 Service Transaction ID
EXCHANGE INVOICES INTERFACE_LINE_ATTRIBUTE1 Billing Party ID
INTERFACE_LINE_ATTRIBUTE2 Billing Site Use ID
INTERFACE_LINE_ATTRIBUTE3 Billing Interface Request ID
INTERFACE_LINE_ATTRIBUTE4 Billing Period
INTERFACE_LINE_ATTRIBUTE5 Billing Activity Type ID
INTERCOMPANY INTERFACE_LINE_ATTRIBUTE1 Order Number
INTERFACE_LINE_ATTRIBUTE2 Order Line Number
INTERFACE_LINE_ATTRIBUTE3 Shipping Warehouse
INTERFACE_LINE_ATTRIBUTE4 Selling Operating Unit
INTERFACE_LINE_ATTRIBUTE5 Shipping Operating Unit
INTERFACE_LINE_ATTRIBUTE6 Order Line ID
INTERFACE_LINE_ATTRIBUTE7 Reference
INTERFACE_LINE_ATTRIBUTE8 Order Org ID
INTERFACE_LINE_ATTRIBUTE9 Price Adjustment ID/Order ID
INTERFACE_LINE_ATTRIBUTE15 Create AP Invoice
LOANS INTERFACE_LINE_ATTRIBUTE1 Loan ID
INTERFACE_LINE_ATTRIBUTE2 Amortization Schedule ID
INTERFACE_LINE_ATTRIBUTE3 Payment Number
INTERFACE_LINE_ATTRIBUTE4 Loan Number
INTERFACE_LINE_ATTRIBUTE5 Line Type
INTERFACE_LINE_ATTRIBUTE6 Payment Order
INTERFACE_LINE_ATTRIBUTE7 Parent Amortization ID
OKS CONTRACTS INTERFACE_LINE_ATTRIBUTE1 CONTRACT_NUMBER1
INTERFACE_LINE_ATTRIBUTE2 CONTRACT_MODIFIER
INTERFACE_LINE_ATTRIBUTE3 INSTANCE_NO
INTERFACE_LINE_ATTRIBUTE4 BILLED_FROM
INTERFACE_LINE_ATTRIBUTE5 BILLED_TO
INTERFACE_LINE_ATTRIBUTE6 AMOUNT
INTERFACE_LINE_ATTRIBUTE7 BILLED_FROM_DATE
INTERFACE_LINE_ATTRIBUTE8 START_DATE
INTERFACE_LINE_ATTRIBUTE9 Line_TYPE
INTERFACE_LINE_ATTRIBUTE10 Bill_Installment_number
ORDER ENTRY INTERFACE_LINE_ATTRIBUTE1 Order Number
INTERFACE_LINE_ATTRIBUTE2 Order Type
INTERFACE_LINE_ATTRIBUTE3 Delivery
INTERFACE_LINE_ATTRIBUTE4 Waybill
INTERFACE_LINE_ATTRIBUTE5 Count
INTERFACE_LINE_ATTRIBUTE6 Line ID
INTERFACE_LINE_ATTRIBUTE7 Picking Line ID
INTERFACE_LINE_ATTRIBUTE8 Bill of Lading
INTERFACE_LINE_ATTRIBUTE9 Customer Item Part
INTERFACE_LINE_ATTRIBUTE10 Warehouse
INTERFACE_LINE_ATTRIBUTE11 Price Adjustment ID
INTERFACE_LINE_ATTRIBUTE12 Shipment Number
INTERFACE_LINE_ATTRIBUTE13 Option Number
INTERFACE_LINE_ATTRIBUTE14 Service Number
ORDER MANAGEMENT INTERFACE_LINE_ATTRIBUTE1 Order Number
INTERFACE_LINE_ATTRIBUTE2 Order Type
INTERFACE_LINE_ATTRIBUTE3 Delivery
INTERFACE_LINE_ATTRIBUTE4 Waybill
INTERFACE_LINE_ATTRIBUTE5 Count
INTERFACE_LINE_ATTRIBUTE6 Line ID
INTERFACE_LINE_ATTRIBUTE7 Picking Line ID
INTERFACE_LINE_ATTRIBUTE8 Bill of Lading
INTERFACE_LINE_ATTRIBUTE9 Customer Item Part
INTERFACE_LINE_ATTRIBUTE10 Warehouse
INTERFACE_LINE_ATTRIBUTE11 Price Adjustment ID
PROJECTS INVOICES INTERFACE_LINE_ATTRIBUTE1 Project Number
INTERFACE_LINE_ATTRIBUTE2 Draft Invoice Number
INTERFACE_LINE_ATTRIBUTE3 Agreement Number
INTERFACE_LINE_ATTRIBUTE4 Project Organization
INTERFACE_LINE_ATTRIBUTE5 Project Manager
INTERFACE_LINE_ATTRIBUTE6 Line Number
INTERFACE_LINE_ATTRIBUTE7 Type
INTERFACE_LINE_ATTRIBUTE8 Line Type
SERVICE INTERFACE_LINE_ATTRIBUTE1 Service Order Number
INTERFACE_LINE_ATTRIBUTE2 Reference Number
INTERFACE_LINE_ATTRIBUTE3 Service Transaction ID
INTERFACE_LINE_ATTRIBUTE4 Termination Start Date
INTERFACE_LINE_ATTRIBUTE5 Termination End Date
INTERFACE_LINE_ATTRIBUTE6 Service Order Line ID
STP NETTING INTERFACE_LINE_ATTRIBUTE1 Customer Ref
INTERFACE_LINE_ATTRIBUTE2 Customer Site
INTERFACE_LINE_ATTRIBUTE3 Batch Source
INTERFACE_LINE_ATTRIBUTE4 Package id
INTERFACE_LINE_ATTRIBUTE5 Trx Number
INTERFACE_LINE_ATTRIBUTE6 Trx Type
INTERFACE_LINE_ATTRIBUTE7 Orig Trx Ref

Reference: Metalink.oracle.com

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Define Common Accounts Receivable Configuration

Define Common Accounts Receivable Configuration

Common Accounts configuration pertains to the Accounting Flexfield setup.

The Accounting Flexfield Setup is done using General Ledger Responsibility. Please find the below screen shot:

This Accounting setup in detail will be discussed in GL.

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