Oracle Applications Order to Cash (O2C) Implementation Steps

1.      Define responsibilities for Order Management, Receivables, Inventory, Cash Management, GL and HRMS and assign to a user.

2.      Attach function ‘Choose Set of Books’ to the menu of Receivables responsibility.

3. Define a new flexfield structure for Sales Tax Location Flexfield (e.g. Structure Name is Indian States) (Let there be one segment called States with qualifiers Automatic Exemption at this level, State and Tax Account). Use the value set AR_LOC_STATE (the associated Table Name is AR_LOCATION_VALUES)
4. Define a GL Set of Book
5. Define the locations for Business Group and other organization entities.
6. Define a Business Group.
7. Set up system profile option HR: Security Profile for all the responsibilities that are organization specific. HR: Business Group will be populated automatically.
8. Log on with the new user and create at least one GRE/Legal Entity and one Operating Unit
9. Create Organization Hierarchy.
10. Set up GL: Set of Books Name at the user level.
11. Set up System Profile option Default Country as India for Order Management and Receivables responsibilities.
12. Set up MO: Operating Unit for all responsibilities that operate at the Operating Unit level and then run Replicate Seed Data.
13. Choose Set of Books.
14. Set up System Options.

Receivables: Setup > System > System Options

15. Define a Receivable Activity for finance charge and link to System Options.

Receivables: Setup > Receipts > Receivable Activities

16. Define one Inventory Organization and two subinventories (one source and one destination) with Accounting Information and Inventory Information.

Inventory: Setup > Organizations > Organizations

Inventory: Setup > Organizations > Subinventories

17. Set up Parameter (Item Validation Organization) from Order Management.

OM: Setup > Parameters

18. Set up two Transaction Sources – 1 imported and the other manual and for the imported one select id’s rather than values.

Receivables: Setup > Transactions > Sources

19. Define Transaction Types in Receivables for Invoice, Credit Memo, Debit Memo, Deposit, Guarantee and Chargeback.

Receivables: Setup > Transactions > Transactions Type

20. Set up AutoAccounting for all accounts.

Receivables: Setup > Transactions > AutoAccounting

21. Define Receivable Activities for Earned Discount, Unearned Discount, Adjustment, Miscellaneous Cash and Receipt Write-Off.  Query on a Receivable Activities called Chargeback Adjustment attach a GL Account.

      Receivables: Setup > Receipts > Receivable Activities

22. Define Receipt Source, Receipt Class, Bank and Bank Account.

      Receivables: Setup > Receipts > Banks

      Receivables: Setup > Receipts > Receipts Classes

      (Create One Class with Creation Method: Manual, Remittance Method: No 

       Remittance and Clearance Method: Directly and link to the Bank Account)

      (Create One Class with Creation Method: Manual, Remittance Method: Standard 

        and Clearance Method: By Matching and link to the Bank Account)

      Receivables: Setup > Receipts > Receipt Sources

23. Define Release Rule, Release Sequence Rule, Picking Rule and Pick Slip Grouping Rule.

      OM: Setup > Shipping > Picking > Define Release Rule Form

      OM: Setup > Shipping > Picking > Define Release Sequence Rules

      OM: Setup > Shipping > Picking > Define Pick Slip Grouping Rules

24. Define two Document Sets for Pick Release and Ship Confirm

      OM: Setup > Shipping > Documents > Document Sets

25. Setup Shipping Parameters

OM: Setup > Shipping > Shipping Parameters

26. Define Freight Carriers.

      OM: Setup > Shipping > Freight Carriers, Cost type > Freight Carriers

27. Define the Cost Types

      OM: Setup > Shipping > Freight Carriers, Cost type > Freight Cost Types

28. Define Transit Times

     OM: Setup > Shipping > Freight Carriers, Cost type > Shipment Transit Times

29. Define two items and a container item in inventory and setup container load details.

Inventory: Items > Master Items

      OM: Setup > Shipping > Container Load Details

30. Setup System Profile option QP: Item Validation Organization for the Order Management responsibility.

Sysadmin: Profile > System

31. Define a Price List for the two inventory items

OM: Pricing > Price List > Price List Setup

32. Define Transaction Types in Order Management – 1 header type and 1 line type and 1 return type (Refer to Scrn 2,3 and 4)

OM: Setup > Transaction Types > Define

33. Setup the following OM System Profile Options:

       OM: Invoice Numbering Method

       OM: Invoice Source

       OM: Invoice Transaction Type

             OM: Credit Memo Transaction Type

             OM: Item Flexfield

             OM: Payment method for Credit Card Transactions

             OM: Source Code

             OM: Source Code2-1-1-1-1

             OM: View Cancel Lines

             OM: View Closed Lines

             OM: Default Salesrep

             OM: Discounting Privileges

             OM: Included Item Freeze Method

             OM: Negative Pricing

             OM: Notification Approver

             OM: Sales Order Form: Restrict Customers

             OM: Schedule Line on Hold

             OM: Set of Books

34. Set up the following QP Profile Options:

       QP: Multi Currency Installed

       QP: Item Validation Organization

       QP: Negative Pricing

       QP: Price Rounding

       QP: Security Control

       QP: Source System Code     

35. Setup Sequential Numbering for the Header transaction type.

Define Sequence

Sysadmin: Application > Document > Define

               Assign Sequence

            Sysadmin: Application > Document > Assign

36. Set up profile option Sequential Numbering.

      Sysadmin: Profile > System

37. Setup Role and grant to user.

OM: Setup > Shipping > Grants and Role Definitions > Define Roles

      OM: Setup > Shipping > Grants and Role Definitions > Grants

38. Setup the Defaulting Rules (Refer to Scrn.04)

OM: Setup > Rules > Defaulting

39. Setup additional Processing Constraints (if required) (Refer to Scrn.05)

      OM: Setup > Rules > Processing Constraints

40. Tax Setup.

Define a Location Based Tax Code

      Receivables: Setup > Tax > Codes

      Setup the location rates

      Receivables: Setup > Tax > Locations

      Define Authorities

      Receivables: Setup > Tax > Authorities

41. Detect the structure id of your Sales Tax Location Flex structure After defining the Authority, put your cursor on any of the authorities and go to Help > Diagnostics > Examine. Change Field to LOCATION_STRUCTURE_ID and note down the value. (Refer to Scrn.01)
42.  Query on the DFF’s Item Exception Rate Assignment and Item Exception Rate Location and at the context value attach your structure id. The value set for Item Exception Rate Assignment should be AR_SALES_TAX_RATES and for Item Exception Rate Location the value set should be AR_LOC_STATE.
43. Define a Salesperson

      Receivables: Setup > Transactions > Define Resources

44. Define a Payment Term

      Receivables: Setup > Transactions > Payment Terms

45. Define one Employee.

HRMS: People > Enter and Maintain

46. Define a Collector

      Receivables: Setup > Collections > Collectors

47. Define a Statement Cycle

      Receivables: Setup > Print > Statement Cycles

48. Define a Profile Class

      Receivables: Customers > Profile Classes

49. Define two Customers

OM: Customers > Standard

50. Setup Tax Exemptions and Exceptions

      Receivables: Setup > Tax > Exemptions

      Receivables: Setup > Tax > Exceptions

51. Define Remit-to Address.

Receivables: Setup > Print > Remit-to Addresses.

52. Setup Approval Limits for Adjustment and Write Off

      Receivables: Setup > Transactions > Approval Limits

53. Open period in GL

GL: Setup > Open/Close

54.  Open period for Receivables

Receivables: Control > Accounting > Open/Close Periods

55. Open Period for Inventory

Inventory: Accounting Close Cycle > Inventory Accounting Periods

56. Create Miscellaneous Receipts for both inventory items.

Inventory: Transactions > Miscellaneous Transactions

57. Schedule the Workflow Background Engine every 1-minute.

Inventory > Workflow background Engine

58. In order to enable Returns from customers, set up Financial Options, Purchasing Options and Receiving Options.

OM: Purchasing > Setup > Organization > Financial Options

               OM: Purchasing > Setup > Organization > Purchasing Options

            OM: Purchasing > Setup > Organization > Receiving Options

59.  Open Purchasing Period.

               OM: Purchasing > Setup > Financials > Accounting > Control Purchasing Periods

60.                        Setup for cash Management

Setup > System Parameters
Setup Validation Transactions

1. Create a Sales Order and Book
2. Release the order and ship
3. Create a Return Order and book.
4. If after booking the return, the status of the Return Line is ‘Booked’, step 5 is not required.
5. If the status of the Return Line is ‘Awaiting Return’, receive the Returns If it is received in Receiving; make another Receiving Transaction to take into subinventory.
6. Run the Workflow background Engine
7. Run Autoinvoice
8. One invoice and one credit memo will be created in Receivables.

Receivables Transactions (Invoicing)

 

1.      Create an Invoice, add Freight, view sales credit, Complete and view accounting.

2.      Create a Credit Memo from Credit Transactions and relate to the invoice created in the previous step, complete and view accounting.

3.      Create a Debit Memo, complete and view accounting.

4.      Create a new customer

Create a Deposit on the customer and complete

View the Customer Account

Create an Invoice and relate to the Deposit.

            View the Customer Account

            Apply a Receipt to the Deposit

            View the Customer Account

5.      Create a New Customer

Create a Guarantee on the customer and complete

View the Customer Account

Create an Invoice and relate to the Guarantee.

            View the Customer Account

            Apply a Receipt to the Invoice

      View the Customer Account

6.      Create an Invoice and complete.

Apply a partial receipt to it and create a Chargeback for the balance amount.

7.      Create an Invoice and complete.

            Apply a partial receipt to it and create an Adjustment for the balance amount.

 

Receivables Transactions (Receipts)

 

1.      Create a Unidentified Receipt (Cash) and View Accounting

2.      Create a Unapplied Receipt (Cash) and View Accounting

3.       Create an On Account Receipt (Cash) and View Accounting

4.       Create a Regular Receipt (Cash) and View Accounting

5.       Create a Mass Application

6.      Create two Miscellaneous Receipts, both positive and negative amounts and View Accounting

7.       Apply an On Account receipt to an Invoice.

8.      Create three receipts with a remittance type of payment method (the status would be ‘Confirmed’)

9.      Create a Remittance batch, approve and format (the status of the individual receipts will change to ‘Remitted’ and they will be eligible for application to outstanding debit items)

 

    Cash Management

1.      Create a Bank Statement

2.       Run AutoReconciliation

3.       Create transactions from bank statement

4.       Reverse Cheques

5.       Define a Forecast Template

6.       Run Cash Forecasting by Days/ Cash Forecasting by GL Periods

 

    Closing Receivables Period

1.      Transfer accounting information to GL

2.      Run Incomplete Invoice Report

3.      Close Period (Note : Receivables and Payables closes at the Book Level, not at the Operating Unit level)