Definition: It is
used to record the any type of collection amount from external sources
Order to Cash Cycle
Sales order--->pick order--->shipping--->invoice--->receipts--->Reconciliation--->cash
management
AR Integration: AR is
integrated by CE, GL, FA, and I Receivable.
AR Responsibility
Step1: define AR
Responsibility
Nav:
System administrator--->Security--->Responsibility--->Define
Menu:
AR_Navigate_Gui
Step2: Assign Profile
option to AR Responsibility
Nav: System administrator--->Profile--->System
Step3: Assign
Responsibility to User
Nav: System administrator--->Security--->User--->Define
Order Management Responsibility
Step1: define OM
Responsibility
Nav:
System administrator--->Security--->Responsibility--->Define
Menu:
ADS_OM_Supermenu
Step2: Assign Profile
option to OM Responsibility
Nav: System administrator--->Profile--->System
Step3: Assign
Responsibility to User
Nav: System administrator--->Security--->User--->Define
Step4: Assign Item
Validation in Organization
Nav: Tcs OM--->Setup--->System parameters--->Values
Operating
Unit: Tcs Software
Select
Item Validation Organization: TCS
Software Org --->Save--->Ok
AR Flexfields: They
are two key Flexfields in AR i.e.
1. Sales Tax Location Flexfields
2. Territory Flexfields
Sales Tax Location
Flexfields: It is mandatory flexfield which is used to calculate the tax
based on the location. We can define up to 10 segments under this location.
Step1: Define Sales
Tax Location Flexfield Structure
Nav: Tcs AR--->Setup--->Financial--->Flexfield--->Key--->Segment
Application: Receivables Flexfields: Sales Tax Location
Add the our item i.e. Tcs Sales Tax--->Go to Segments
1. Country Country Loc_Id_Segment1 Ar_Loc_County
2. State State Loc_Id_Segment2 Ar_Loc_State
3. City City Loc_Id_Segment3 Ar_Loc_City
Save--->Ok (W)
Ø Place
cursor on County--->go flexfield qualifiers--->Enable County--->ok--->Save
Ø Place
cursor on State--->go flexfield qualifiers--->Enable State, Tax,
Automatic Exception --->ok--->Save
Ø Place
cursor on City--->go flexfield qualifiers--->Enable City--->ok--->Save
Enable Dynamic Inserts
Enable Freeze Flexfield qualifiers --->Ok --->Compile (2)
Territory Flexfield:
It is optional flexfield which is used following purpose
1. To
identify where sales is taking place
2. To
identify profit for each sales territory
Note: We cannot define new
Territory flexfield structure but we can define segments up to 20
Step1: Define
Territory Flexfield
Nav: Tcs AR--->Setup--->Financial--->Flexfield--->Key--->Segment
Application: Receivables
Flexfield: Territory
Flexfield
Un
Freeze Flexfield Definitions--->Go to Segments
Note: Just check
and Save--->Close
Enable
Freeze Flexfield Definitions--->Compile
System Options: System
options are nothing but controlling features of an operating unit level
Step1: define System options
Nav: Tcs AR--->Setup--->System--->System options
Operating (T):
Ctrl+F11--->Name: Tcs Hyd Gl
Realigned gain a/c: 7880
-------------- Loss a/c:7880
Tax a/c: 7710
Unallocated: 4150
Cross currency rate type: Tcs exchange rate
type
Cross currency Rounding A/c: 7827
Header Rounding A/c: 7826
2. Terms and Condition (T)
3. Miscellaneous (T)
Open Periods:
Nav: Tcs AR--->Control--->Accounting --->Open/close Periods
Payment terms:
Payment terms are used to determine the payment schedule for various invoices
Step1: Define
Payment term
Nav: Tcs AR--->setup--->Transactions--->Payment terms
Statement Cycle: This
Cycle will determine the when to sent statement to the Customer
Step1: Define Statement Cycle
Nav: Setup--->Print--->Statement Cycle
Collectors: The
Person who are collecting the money from the customer is called Collectors
Step1: Define Collector
Nav: Setup--->Collectors--->collector
Remit to Address: An
Address where customer to send receipt information
Step1: Define Remit to Address
Nav: Setup--->Print--->Remit to Address
Step2: Create Receipt from location
for remit to address
Nav: Setup--->Print--->Remit to Address
Application Rule set:
This is used to determine how to apply receipt amount against invoice
component, the invoice component are Line, Tax, Fright and Finance charges
Step1; Define Application Rule set
Nav: Setup--->Receipts--->Application rule set
Assign Tax Profile to
Operating Unit:
1.
Nav: System administrator--->User--->Define
2.
Tax manager--->Parties--->Parties tax
Profile
Customer Profile
Class: Customer profile class is used to classify the customer based on
certain parameters, generally we can classify Three ways i.e. 1. Good
Customers, 2. Average Customers, 3. Below Average Customers
Step1: Define good customer profile class
Nav: Tcs AR--->Customer--->Profile classes
Customer: Either
person or organization who are selling goods or services is called a customer.
They
are three level of information
1. Customer
Header (Head Office)
2. Address
Site (Branch Office)
3. Business
Purpose site (Location)
Step1: Create Customer
Nav: Tcs OM--->Customer--->Standard
Note: Customer
information is global specific
Customer Address site and business
purpose site is Operating unit specific
Run validate
application accounting definition prog:
Nav:
Tcs AR--->view--->request--->submit a new request--->select single
request--->ok
Name: Validation application
accounting definition
Ledger:
Tcs Hyd Gl
Appli:
Receivables
Owner:
Oracle
Ok--->Submit--->No--->find
Transaction: Transaction
can be created by Org and send to the customer they are three levels of
information i.e. 1. Header 2. Lines, 3. Distribution
Transaction
can be entering in two ways 1. Manual, 2. Auto Invoice
They are
various types of transaction these are
1. Invoice
2. Debit
memo
3. Credit
memo
4. Deposit
5. Guarantee
6. Charge
back
- Manual Transaction: Manual Transaction can be enter in two ways i.e.
- Single Transaction
- Transaction Batch
Single Transaction: We using this transaction create invoice
transaction
Step1: Create Invoice Transaction Type: This is used to define the
features of various transactions this features are like print option, post to
GL options Etc.
Nav:
Tcs AR--->Setup--->Transaction--->Transaction Types
Transaction Source: This source will determine numbering for single
transaction and batch transaction and also it will determine transaction type
for various transactions they are two types of transaction i.e.
1.
Manual
2.
Imported
Step2.1: Define Manual Transaction Source
Nav: Tcs AR--->Setup--->Transaction--->Source
Step2.2: Define Imported Transaction Source
Nav: Tcs AR--->Setup--->Transaction--->Source
Create Invoice
Transaction:
Nav:
Tcs AR--->Transaction--->Transaction
Customer Balance:
Nav:
Tcs AR--->Accounting Details
Receivable Activity: This
are used to default the accounting information for various receipt it can be
defined for Earned discount, Mislenious, Unearned discount Etc.
Step1: Define Earned
discount receivable activity
Nav:
Tcs AR--->Setup--->Receipts--->Receivable
activity
Gl Account: 01.001.7825.000
Step2: Define
Unearned discount receivable activity
Nav:
Tcs AR--->Setup--->Receipts--->Receivable
activity
Gl Account: 01.001.7824.000
Bank Account
Step1: define receivable controls
features in the bank account
Nav: Tcs AR--->Setup--->Receipts--->Banks
Go to Bank Branch
Come
to Account Controls (T) --->Receivable
Control---> Enable Multiple Currency Receipts --->Save and next
Come
to Account Access (T):--->Go to Option--->Receivable options--->Gl
Accounts
Bank
charges: 7870 confirmed: 1210
Factored:
1210 remitted: 1245
Short
debit: 2120 AR debit
short: 2120
UN
identified: 2120 Unpaid:
2140
On
Accounts: 2120
Come to Receivable Activities
Unearned discount:
Tcs Unearned discount, Earned discount:
Tcs Earned discount
Save --->apply--->apply--->finish
Receipt classes:
Receipt class will determine receipt creating method, remittance method,
Clearance method, Receipt method and Bank account for various receipts.
They are
two types of receipt class i.e. 1. Manual, 2. Automatic
Step1: define manual
receipt class
Nav:
Tcs AR--->Setup--->Receipts--->Receipt Classes
Step2: define
automatic receipt class
Nav:
Tcs AR--->Setup--->Receipts--->Receipt Classes
Receipt Source: It
will be determine the receipt class, Payment method, Bank accounts and
Numbering for receipt batches
They
are two types of receipt sources i.e. 1. Manual 2. Automatic
Step1: Define Manual
receipt source
Nav:
Tcs AR--->Setup--->Receipts--->Receipts sources
Step2: Define
Automatic receipt source
Note: it not crated by us these is
automatically created by system we run replicate seed data program one
operating unit can have only one receipt source
Receipts:
Recording collection information in Oracle AR is called Receipts.
These
Receipts enter in to two ways 1. Single receipts
2. Receipt batch
1. Single Receipt
Step1: Create a
single request
Nav: Tcs AR--->Receipts--->Receipts
Auto Accounting: This
feature is used to default the accounting information at time of transaction
creation. It can be defined for receivable accounts, Revenue, Fright, and
Tax Etc.
Step1: Define
Receivable Account
Nav:
Tcs AR--->Setup--->Transaction--->Auto Account
Type:
Receivable
Account: 1410
Step2: Define Revenue
Account
Nav:
Tcs AR--->Setup--->Transaction--->Auto Account
Type:
Receivable
Account:
4166
Step3: Define fright Account
Nav:
Tcs AR--->Setup--->Transaction--->Auto Account
Type:
Fright
Account:
7220
Step4: Define unbilled receivable Account
Nav:
Tcs AR--->Setup--->Transaction--->Auto Account
Type: Fright
Account:
1232
Step5: Define
unbilled revenue Account
Nav:
Tcs AR--->Setup--->Transaction--->Auto Account
Type:
Fright
Account:
2550
Debit memo: When
Customer is under charged debit memo will be created by Org and send to the
Customer.
Memo Lines: Memo
lines are used to enter the description information at the time of transaction
creation
Step1: Define or Create memo lines
Nav: Tcs AR--->Setup--->Transaction --->Memo lines
Step2: Define Transaction Type
Nav: Setup--->Transaction--->Transaction Type
Step3: Define
Debit memo Transaction Source
Nav: Setup--->Transaction--->Sources
Step4: Create a
Debit memo
Nav: Tcs AR--->Transaction--->Transactions
Credit memo: When
Customer is over charged credit memo will be created by Org and send to the Customer
Note: If you have
credit memo against specific transaction then system will be reduce original
transaction balance view amount.
They are two types of Credit memo
1. Create
memo against specific transaction
2. On
Account Credit memo
Step1: Create Memo lines
Nav: Tcs AR--->Setup--->Transaction --->Memo lines
Step2: Define Transaction Type
Nav: Setup--->Transaction--->Transaction Type
Step3: Define Credit memo Transaction Source
Nav: Setup--->Transaction--->Sources
Step4: Assign Credit memo transaction source to the invoice transaction
Source.
Nav: Setup--->Transaction --->Source
F11
Name: Tcs Invoice Manual
Credit memo batch source: Tcs Credit
memo source
Step5: Create Credit memo
Nav: Setup--->Transaction--->Credit transaction
Note:
here we take transaction Number and move to credit lines
Step6: Check the customer balance
Nav: Tcs AR--->Account Details
2. On Account Credit
Memo: It will be crated against total customer account balance so it will
not be specific transaction
Step1: Create a Credit memo
Nav: Transaction--->Transaction
Step2: Check the customer account
balances
Nav: Tcs AR--->Account details
Deposit: Its
advance amount which is received from the Customer later it will be adjusted
against future invoice it will come under commitment transaction
Step1: Define deposit transaction type
Nav: Setup--->Transaction--->Transaction type
Step2: Define Deposit Transaction Source
Nav: Setup--->Transaction--->Source
Step3: Create
Deposit Transaction
Nav: Tcs AR--->Transaction--->Transaction
Step4: Create Receipt and apply
against deposit
Nav: Receipts--->Receipts
Step5: Check deposit transaction
balance details
Nav: Tcs AR--->Transaction--->Transaction
Step6: Create
invoice transaction and apply or adjust deposit
Nav: Tcs AR--->Transaction--->Transaction
Step7: Check
deposit transaction balance details
Nav: Tcs AR--->Transaction--->Transaction
Guarantee: It is
assurance from the customer to buy a good/ service it will come under
commitment transaction
Note: same as above deposit steps
Charge Back: Charge
back nothing but a closing the old transaction and create new transaction
Step1: Define charge back receivable
activity
Nav: Setup--->Receipts--->Receivable
activity
Ctrl+f11--->Query:
Charge back adjustment
Type: Adjustment
GL Accounts:
01.001.5030.000
Step2: Create Charge back Transaction type
Nav: Setup--->Transaction--->Transaction
type
Step3: Create Charge
back Transaction Source
Nav: Setup--->Transaction--->Source
Step4: Create
Invoice Transaction
Nav: Transaction --->Transaction
Step5: Enter receipt
and apply against invoice and also create charge back transaction for remaining
amount
Nav: Receipts--->Receipts
Step6:
Query the charge back transaction in the transaction window
Nav: Transaction ---> Transaction
Invoice Rules: Invoice rules will
determine the accounting period in which receivable amount will be
recognized.
Note: Mainly it used Contract
Business
They are two types 1. Bill in advance
2. Bill in arrears (Sum unpaid)
- Bill in Advance: Under this invoice rule system will total receiving amount starting of contract the recognize.
- Bill in Arrears: If we use bill in arrears invoice rule system will recognize total of end of the contract
Accounting Rules: It
determine the accounting period in use recognize amount
They are 4
types accounting rules i.e. 1. Fixed Schedule
2. Variable Schedule
3. Daily Revenue Rate all Periods
4. Daily Revenue Rate partial periods
- Fixed schedule: If used fixed schedule accounting rules duration of the project and revenue percentage of each period will be entering at the time of accounting rule definition
Step1: Define fixed schedule accounting rule
Nav:
Setup---> Transaction--->accounting rule
Note: Total must be 100% equal
- Variable schedule: Under this rule duration of the project will be entered at the time of invoice creation while enter define rule we can enter only revenue percentage of first period for remaining period system automatically
Step1: Define Variable schedule accounting rule
Nav:
Setup---> Transaction--->accounting rule
Period Present Rate
1 30%
Create invoice with
accounting rule is fixed schedule and invoice rule is bill in advance
Step1: Create invoice
Nav: Transaction ---> Transaction
Invoice rule: Bill
Advance
Go to lines --->
Come to Rules (T)---> Accounting: Tcs Fixed Schedule
Step2: Run Revenue Reconciliation
Program
Nav: view---> request--->submit
a new request--->select single request--->ok
Name: Revenue
Reconciliation
Create invoice with
accounting rule is Variable schedule and invoice rule is bill in arrears
Step1: Create invoice
Nav: Transaction ---> Transaction
Invoice rule: Bill
arrears
Go to lines --->
Come to Rules (T)---> Accounting: Tcs Variable
Step2: Run Revenue Reconciliation
Program
Nav: view---> request--->submit
a new request--->select single request--->ok
Name: Revenue
Reconciliation
Batch Transaction:
Step1: Create Transaction Batch
Nav: Transaction ---> Batches
Note1: Control amount is less than
transaction amount that time status is In of balance
Note2: Control amount is Greater
than transaction amount that time status is Out of balance
Note3: Control amount
is Equal than transaction amount that time status is Closed
Receipt Batch: They
are three types receipt batches i.e. 1. Manual regular batch
2. Manual
quick
3. Automatic
- Manual regular batch: This batch is receivable update customer balance and as soon as save the receipt details
Step1: Create Manual regular receipt batch
Nav: Receipts--->Batches
Manual Quick: Under
this batch receivable will not outdated customer balance when we are the
receipt balance customer balance will be updated when we run Post quick cash
program
Step1: define auto cash rule set
It is
used to determine the how the receipt amount apply against customer transaction
Auto cash rule set has five rules i.e.
1.
Clear the
account
2. Clear past due invoice
3. Clear past due invoice grouped by payment
term
4. Match payment not with invoice
5. Apply the oldest invoice first
Nav: Setup--->Receipts--->Auto cash rule set
Step2: Create manual
quick back
Nav:
Receipts--->batches
Unidentified: We
received the receipt but not identify the customer
Unapplied: Nothing
but a identify the customer but not a apply receipt amount against invoice
On Account: Identified
the customer but receipt amount is transfer in to the account
Applied: We have
identify the customer and apply receipt amount against invoice transaction
Miscellaneous Receipts: Non invoice related receipt is called
miscellaneous that receipt such as Interest on deposit, divedent,
Step1: Create
miscellaneous receivable activity
Nav:
Setup--->Receipts--->Receivable activity
Step2: Create
Miscellaneous Receipts
Nav:
Receipts--->Receipts
Receipt Reversal: It
is used to reverse the receipts they are two are types of reversal method 1.
Standard Reversal 2. Debit memo reversal
Remittance: Sending
receipts information for collection to the bank is called remittance so they
are two types remittance 1. Standard 2. Factory
Standard: Under
this method check will be deposit in the bank for collection so bank will
collect many from customer and transfer organization
Factory: Under
this method org will take loan on receipts from bank on maturity date bank will
collect amount from the customer then bank will deduct loan amount and
remaining amount will be paid to the org
Remittance batches
can be created by two ways 1. Manual 2. Automatic
Manual: Creating
remittance batch manually is called manual remitted enter method it contains
three setup 1. Create 2. Approve 3. Format
Step1: Create remittance batch
Nav: Receipts---> Remittance
Step2: Approve the
remittance Batch
Nav: Receipts---> Remittance
Step3: Format the
remittance Batch
Nav: Receipts--->
Remittance
Step4: Check the
requested receipt status
Nav: Receipts--->Receipts
Refund: It
features is used to refund the excess amount to the customer so when we perform
refund transaction in AR one invoice will be created in AP against customer
Balance Forward
Billing Cycle: This method is used to generate the consociation bulling for
customer
Step1: Enable show billing number or system
option
Nav: Tcs AR--->Setup--->System--->System option--->ctrl+f11
Step2: Defined
Balance forward billing cycle
Nav:
Setup--->Print --->BFBC
Step3: Define BFBC
Payments terms
Nav: Setup--->Transaction--->Payments--->Payments terms
Step4: Create
customer BFBC profile class
Nav: Customer--->Profile class
Step5: Create new
customer
Nav: Tcs OM--->Customer --->Standard
Step6: Create Invoice
against new customer
Nav: Tcs AR--->Transaction --->Transaction
Step7: Create
receipt and apply against invoice transaction
Nav: Receipts--->Receipts
Step8: Generate
BFBC
Nav: Print document--->Balance forward bills--->Select single
request--->ok
Name:
Generate balancing forward bills
Writ off: Its
nothing but a recording the uncollected amount from the customer
Step1: Define writ of receipts activity
Nav: Setup--->Receipts--->Receivable activity
Step2: Enter writ
off limits at system option
Nav: Setup--->System --->system options
Step3: Define writ
off limits for user
Nav: Setup--->Transaction--->Approval limits
Step4: Check
Customer balance
Nav: Tcs AR--->Account details
Step5: Enter the
receipts and create writ off transaction
Nav: Receipts--->receipts
Step6: Check
Customer balance
Nav: Tcs AR--->Account details
Create customer bank
account
Step1: create customer bank account
Nav; Tcs OM--->Customer--->Standard
Trans for to General
Ledger
Nav:
view--->request---->submit a new request --->single request--->ok
Name: Trans for to
general ledger
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