Monday, September 9, 2013

Account Receivable

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

  1. Manual Transaction: Manual Transaction can be enter in two ways i.e.
    1. Single Transaction
    2. 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)

  1. Bill in Advance: Under this invoice rule system will total receiving amount starting of contract the recognize.
  2. 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

  1. 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
  1. 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

  1. 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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