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ORACLE FINANCIALS VOL - I

THEORY GUIDE

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J. Sureshraja M.com., MBA., CA (f).,

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Multiple Organizations Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different ledgers Support flexible organizational models Secure access to data so that users can only access relevant information Access one or more operating units using a single responsibility Major Features Multiple Organizations in a Single Installation You can define multiple organizations and the relationships among them in a single Installation of Oracle Applications. These organizations can be ledgers, business groups,

Legal entities, operating units, or inventory organizations. Secure Access Data Security Inventory Organization Security by Responsibility Responsibility Determines Operating Unit Receive Goods Into Any Inventory Organization Automatic Accounting for Internal Requisitions

Multiple Organizations Reporting

Types of Organizations 1 Business Group

The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major Branch, or an operation company. The business group secures human resources information. For example, when you request a list of employees, you see all employees assigned to the business group of which your organization is a part. Multiple ledgers can share the same business group if they share the same business group attributes, including HR flexfield structures.
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2 LEDGER Ledgers takes the place of second level in the multi org structure, only based on which the legal entity and operating units are going to be decided on. Also remember it is not mandatory for a ledger to have a Legal entity. Only based on the definition of ledger, the multi org structure is designed / finalized. Therefore it is very vital to perform the ledger setup keeping in mind that it has a greater Impact on the multi organization structure to be followed by the client and setup by the Implementation team. Even though Ledgers takes place second level in the above figure, one can say it is the starting point of Multi org structure, since setting up of a business group or validations / functionalities related to business group are less complicated when compared to other elements in the Multi org structure. In total there are two types of Ledgers available, they are: Primary Ledger Secondary ledger Reporting Currencies (Ledger)

Legal Entity

A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization. You can define legal entities using Legal Entity Configurator or Accounting Setup Manager in General Ledger.

Operating Unit An organization that uses Oracle subledgers, such as Oracle Cash Management, Order

Management, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales office, a Branch, or a department. Operating units are not associated with legal entities. Operating units are assigned to ledgers and a default legal context. Information is secured by operating unit for these applications using responsibilities. Each user can access, process, and report on data only for the operating units assigned to the MO: Operating Unit (or) MO: Security Profile option. The MO: Operating Unit profile option only provides access to one operating unit.

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The MO: Security Profile provides access to multiple operating units from a single responsibility.

You can define operating units from the Define Organization window in Oracle HRMS or from Accounting Setup Manager in General Ledger. 5 Inventory Organization An organization for which you track inventory transactions and balances, and/or an

Organization that manufactures or distributes products. Examples include manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization: Oracle

Inventory, Bills of Material, Engineering, Work in Process . To run any of these applications, you must choose an organization that has been classified as an inventory organization. You can create ledgers using the Accounting Setup Manager in Oracle General Ledger and define organizations using the Define Organization window.

HR Organization HR organizations represent the basic work structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group. In addition to these internal organizations, you can define other organizations for tax and government reporting purposes, or for third party payments. Organizations in Oracle Projects Oracle Projects allows you to define organization hierarchies to reflect your company's organizations structure. You can add Oracle Projects-specific organization types to the organization hierarchy (for example, projects organizations or Expenditure organizations) to help you manage your project control requirements. You assign project and expenditure hierarchies to operating units. Asset Organizations

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An asset organization is an organization that allows you to perform asset-related activities for a specific Oracle Assets corporate book. Oracle Assets uses only organizations designated as asset organizations

Information Shared Across Organizations The following information is global. It must be set up once for the enterprise: Flexfield definitions Customer Header (customer site is at the operating unit level) Supplier Header (supplier site is at the operating unit level) Setup and Implementation Multi-Org Setting Up a Multiple Organization Enterprise Steps to implement the Multiple Organization support feature in Oracle Applications. 1. Develop the Organization Structure 2. Define Accounting Setups 3. Assign Balancing Segment Values by Legal Entity (optional), 4. Define Locations, 5. Define Business Groups (optional), 6. Define Organizations, 7. Define Organization Relationships, 8. Define Responsibilities, 9. Associate Responsibilities with Business Groups, 10. Define Security Profile and Multiple Organizations (MO) Profile Options, 11. Verify Order Management System Parameter Settings, 12. Set Application-Specific Profile Options Specific to Operating Units, 13. Define Inventory Organization Security (optional), 14. Implement the Applications Products, 15. Run the Multiple Organizations Setup Validation Report (recommended), 16. Implement Document Sequencing (optional), 17. Set Conflict Domains (optional), 18. Specify User-Level Multiple Organizations Preferences (optional),

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LEDGER A Ledger is a container of all accounting related information captured through various other modules. Oracle General Ledger Module owns ledgers. One has to design the ledger in an appropriate way keeping in mind what information it needs to hold. One can have as many ledgers as they want based on their business requirement and operations point of view. A ledger saves the accounting information in an organized way as directed by the conditions specified in the accounting options for that ledger. Implementer defines the format, rules, restrictions for a particular ledger using different setup screens making the user to only enter the information what is relevant for Oracle General Ledger to process further. One may collect much additional information in different modules as per their business requirement, whereas those are of least importance, since they are all only data which are not subjected to any further processing by oracle. A well planned/designed ledger saves a lot of time for the company in processing the data and preparing MIS reports for the management in key decision makings. One will also be knowing that Business intelligence module does this job of producing excellent reports on the daily operations of company and points out key areas and red flags. However, business intelligence can be used to best effect, only when the base setups, which are in place, are efficient. Ledger being the foremost setup for any financial modules in E business Suite, one must understand the power, importance and its usage at later stage in many other areas within e Business suite. Ledger is nothing but a combination of all those components. Without usage of components, ledger cannot function on its own. The components of a ledger are: 1) Chart of Accounts 2) Calendar 3) Currency 4) Accounting Method They are also termed as 4 Cs. Chart of Accounts The definition of Chart of Accounts structure is one of the most complex part, there has

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to be a brainstorming and many levels of discussions between Client and the Implementation team to decide on a structure that best suits the business need. In short, COA decides on what information needs to be collected for every transaction that is being transacted by the business, considering different parameters and key factors. Calendar Calendar presents the period for which the business is carried forward. Calendar here represents Accounting calendar. One will be deciding on the calendar based on their statutory requirement. Even though every accounting period is going to have a span of 12 months in it, however there is a greater difference on the start and end date of the accounting period. Currency Currency represents the list of currencies in which the customer is having businesses. One needs to define/enable the currencies as per their business requirement; there is no harm in enabling all currencies. Accounting Method Every business has to follow an accounting method to record their transactions in order to comply with the legal commitments. Oracle by default has provided seeded accounting methods for usage, however if the clients business demands for customization of an accounting method or creation of new accounting method as per the statutory regulations, then they can create their own accounting method as well. All the above-discussed components are mandatory in order to define a primary ledger. For a secondary ledger, in addition to the above component, one needs to select the method of Data Conversion Level followed. Primary Ledger It is mandatory that every accounting operation must have one primary ledger It acts as a Primary repository, which records all accounting related information related to that particular Primary Ledger. One cannot carry out setups without having primary ledger in place. Primary ledger replaces the Set of books (Ledger in R12) used in earlier versions prior to Release 12. Secondary Ledger

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It is not mandatory to have a secondary ledger. One can have one or more secondary ledgers based on their business requirement. One can never have a secondary ledger without primary ledger is in place. Since secondary ledger does not perform any new operation on its own, it only represents the information contain in primary ledger in a different way. Mostly it is used for satisfying the reporting needs. It is necessary for one to know when one should have a Secondary ledger. One needs to maintain accounting records in a way, when there is a difference in any of the parameters below from the primary ledger: Chart of Accounts, Currency, Calendar, Accounting Method and Ledger processing options.

Reporting Currencies (Ledger) Reporting currencies are purely a representation of transactions saved in the Primary or Secondary ledger in different currency. This concept was available in Release 11 in the name of Reporting Set of books (Ledger in R12); it is exactly the same in R12, no change apart from the terminology. Reporting currencies are maintained at different currency conversion levels. Even though it is not a separate ledger as such, still it can be considered as a different ledger since it acts as a different container apart from the primary or secondary ledger information. LEDGER TYPE PURPOSE Primary Ledger Mandatory for any setup related to financial modules Every transaction of the company will be recorded Acts as a base repository / container of all accounting information. Secondary Ledger When Client wants Multiple Accounting Representations When Client wants to represent the information in a different calendar. When Client wants to represent the information in a different chart of Accounts. Reporting Currencies When the Client wants to report their information in different currency

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HOW TO DECIDE ON A PERFECT LEDGER STRUCTURE I would explain the usage of the ledgers with a Business scenario. Business Scenario is: Company SKR GROUPS is implementing Oracle Financials for their business. The summary of their business operations is as follows: SKR GROUPS, which is based in India, is having their business operation in three countries: 1) Branch I - India 2) Branch II - Australia 3) Branch III - France And the accounting and reporting requirements are: Branch Accounting Method Chart of Accounts Accounting Period Branch I Accrual As per Indian Statute April to March Branch II Cash As per Australia Statute January to December Branch III Accrual As per France Statute October to September

Please advice on the ideal Ledger structure to be designed for the company SKR GROUPS? Now from the above lets us see how many primary ledgers can be created? One cannot use the same primary ledger if one of its components is different. Branch Chart of Accounts Currency Calendar Branch I Branch II Branch III Accounting Method

Indian Statute INR Apr Mar Accrual Australia Statute AUD Jan Dec Cash France Statute EUR Oct - Sep Accrual

From the above table, it is clear that none of the Branches have all 4 components as similar; therefore we need to have 3 Primary ledgers defined for it. Now apart from that, we need to think of the following practical scenario as well, Even though Branch II is located in Australia, it has to finally consolidate all its operations

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to INDIA at a later stage, therefore it must also follow the rules of accounting and statutory regulations in India, so as Branch III. Therefore, Branch II Should have a secondary ledger, which will represent the transactions as per the Indian Statute. Branch III Should have a secondary ledger, which will represent the transactions as per the Indian Statute. However it is not necessary for Branch I to have secondary ledgers, since the company is based in INDIA, therefore it need not have multiple accounting representations. If the client insists on it, we can have 2 secondary ledgers for Branch I, to comply with Australian and France statute. Now the Branches situated in France and Australia, must be reporting to the company in INDIA on a daily basis, for which they need to convert their business transactions values in to Indian currencies and then report it to the management. For performing this operation, we require two Reporting currencies as well. As discussed earlier, reporting currencies are part of primary ledger setup. Therefore Australia and France primary ledger should have defined INR as its Reporting currencies. To sum up, the ideal ledger structure would be as follows:
Branch Primary Ledger Secondary Ledger Reporting Currencies

Branch I Branch II Branch III


TOTAL

1 1 1
3

Not Necessary 1 1
2

Not Necessary 1 1
2

Also there can be one more primary ledger created to consolidate the data between Branch I, II and III,

QUESTION AND ANSWER SECTION 1. Is it mandatory that every ledger must have a legal entity attached to it?
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One can have a ledger with no legal entity as per their business requirement. It is not mandatory that every ledger must have a legal entity attached to it. There could be ledgers, which have been created for consolidation purposes alone. 2. Can there be a Secondary ledger without a Primary ledger? No, it cannot be. 3. Can we have one secondary ledger associated with more than one primary ledger? No, it is not possible. 4. Can we have more than one secondary ledger for a primary ledger? Yes, you can have one or more secondary ledgers also there is no restriction imposed anywhere on number of primary ledgers one can create. 5. Is it possible to convert a Primary Ledger to Secondary Ledger or vice versa? No, not possible.

Data Access set Data Access Set is a new feature in Release 12, which is owned by General Ledger. It helps in providing Role Based Access Control to the users. Every user has access to the data through Responsibilities, these Data Access Sets controls the behavior of a Responsibility when the user tries to access the ledger which is the repository of all accounting related information. It can control the level of access to be provided and on what information the access can be restricted for a given ledger and responsibility. We will see about it in more detail in further slides. It can provide Read only, Read and Write access to an Ledger It can restrict access to MSV (Management Segment Values) and BSV (Balancing Segment Values) The ledgers and Ledger Sets which are assigned to a Data Access Set must share the same Chart of Accounts, Calendar and Period Type. General Ledger automatically creates a Data Access Set whenever a Ledger and/or Ledger Set are created. Following are the three types of Data Access Sets, Full Ledger Balancing Segment Value
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Management Segment Value FULL LEDGER As the name suggests all changes / restrictions defined under this type of Data Access Set will apply to whole of a Ledger or a Ledger Set. Either you can have a Read and Write privilege to a Ledger or Read only privilege to a Ledger. For example, You have the Auditors visiting your premises who requires access to all accounting information, instead of using system administrator to create a new responsibility with lots of menu exclusions, you can just have a responsibility with the Data Access Set, assigned as READ ONLY. So that the auditors will only have access to view the data and not to edit it (Intentionally or unintentionally!) BALANCING SEGMENT VALUE (BSV) Instead of providing access to the whole ledger, if you wanted to provide access only to particular Balancing segment value combinations in a ledger, you can do so. MANAGEMENT SEGMENT VALUE (BSV) Instead of providing access to the whole ledger, if you wanted to provide access only to particular Management segment value combinations in a ledger, you can do so. Management Segment is a segment which has the Management Segment Qualifier attached. Values belonging to that segment are termed as Management Segment Values. Advantages Role Based Access Control Security on Data Access Simplified Setups to create Data Access Security It does not override the security rules and Cross validation rules Limitations A Responsibility can have only one Data Access Set One can have ledgers sharing the same chart of accounts and calendar alone in the single Data Access Set. In case of BSV or MSV type Data Access Sets, if you select the check box for ALL that does not include all BSV or MSV values. So many parameters need to be considered before defining it, since it may clash with other setups at General Ledger level resulting in errors.

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Following items should have been already defined before creating a Data Access Set, they are: Chart of Accounts Calendar and Period Type Ledgers should be defined using the above Chart of Accounts and alendar/period Type If you want to use Management Segment Value type Data Access Set, you must assign Management segment qualifier to one of your segments well in advance Information required for setup Following information must be collected before proceeding with the setups: Name to be provided for Data Access Set Description for the Data Access Set Chart of Accounts to be Used Calendar / Period Type to be used Access Set Type required Ledger or Ledger Set Name In case of BSV or MSV access set types, the list of segment values to be defined. Which value requires Read only access and which value requires Read and Write access. Questions & Answers 6. Which type of Data Access Set is advisable for usage? The Full Ledger access set type provides better system performance than the Balancing Segment Value or Management Segment Value access set type. 7. Can we have a Data Access Set without defining what type it is? You must specify one of the three types for each data access set. 8. Can one change the type of Data Access Set after defining? Once defined, you cannot alter the type. You can only add or delete ledgers/ledger sets and segment values specified in the data access set 9. When one should be creating Data Access Set.

When you want the user to be restricted based on the BSV or MSV, you need to create a Data
Access Set.

If you are planning to grant full access to ledger, then you are not required to create a Data
Access Set,

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since system automatically creates a Data access set whenever a Ledger or Ledger Set is
created, with the type Full ledger having read and write access.

You can make use of that. How can I find or trace out the system generated Data Access Set. The system-generated data access set for a ledger/ledger set uses the same name as the
ledger/ledger set. 10. Does my Data Access Set override the restrictions provided by Security Rules and Cross Validation Rules? No, Data Access set does not override Security rules or Cross validation rules. 11. What precaution needs to be taken care for defining Data Access Set with Balancing Segment Values? One must make sure that the BSV values used in the Data access sets must correspond to the BSV values assigned to Legal Entity, using Accounting Setup Manager. 12. What precaution needs to be taken care for defining Data Access Set with Management Segment Values? Make sure that you do not restrict read and write access to segment values which are used in default accounts, such as Retained Earnings Account etc... 13. Can we have multiple Data Access Sets for a Responsibility? We can define multiple Data Access Sets for a ledger; however we can assign only one Data Access set per responsibility.

LEDGER SET

In release 12, the concept of Set of books (Ledger in R12) has been enhanced and termed as
Ledgers.

Ledgers are of different types, I.e. Primary and Secondary ledgers. To make working with ledgers easier, the new feature called LEDGER SET has been introduced.
As the name suggests it is nothing but a Set or Group of ledgers.

It helps the user in saving time on repetitive tasks performed on ledgers.


FEATURES / PURPOSE A Ledger Set can contain any number of ledgers, there is no specific ceiling proposed so far. A Ledger Set can include another ledger set within. A Ledger Set can only have those ledgers which are sharing the same: Chart of Accounts
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Calendar/Period Type A Ledger Set can have Primary, Secondary and Reporting currencies attached to it, but they need to have the same Chart of Accounts and Calendar/Period Type combination. A single ledger can be made use of in Multiple Ledger Sets. ADVANTAGES One can run concurrent programs or processes for multiple ledgers easily. Opening and Closing periods Generating recurring journals, etc One can generate reports for multiple ledgers in no time. Reports relating to consolidation Financial Statement Generator Reports, etc In case of a ledger set, which contains more than one ledger/ledger set in it, user can optionally set a default ledger for effective usage. Ledger set can be secured by having a Definition Access Set. LIMITATIONS You cannot add ledgers that do not share the same chart of accounts and Calendar/Period Type to a Ledger Set. You cannot have a reporting currency which is of type Balance Level in the Ledger set, even if it shares the same Chart of Accounts and Calendar/Period Type. PREREQUISITES OF SETUP Chart of Accounts One needs to define a chart of accounts structure in place. Period Type Period types needs to be defined, which in turn will be used by Accounting Calendar Calendar One has to define an Accounting Calendar Existing Ledgers or Ledger Sets One must have few pre defined ledgers or ledger sets in place. The following details are required in order to define a ledger set. Ledger Set Short Name Description Chart of Accounts
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Calendar Period Type Default Ledger Ledger/Ledger Set

Questions & Answers 14. Can a Ledger Set be created without any ledgers in it No you cannot create a ledger set without ledgers; you must have at least one ledger or ledger set assigned. 15. Can a Ledger Set be deleted after defining No one cannot delete a ledger set which has been created. 16. Can one modify the Ledger Set which is already defined? Yes, you can add or remove Ledgers / Ledger Sets 17. After setting up the Ledger Set, is there any additional setup required before using the same? You must assign the Ledger Set to the profile option GL: Data Access Set. Oracle General Ledger automatically creates a Data Access Set, whenever a Ledger or Ledger Set is created. SUBLEDGER ACCOUNTING Accounting system will have a number of subsidiary ledgers (called subledgers) for items such as cash, accounts receivable, accounts payable, inventory, purchasing likewise. All the entries that are entered (called posted or booked) to these subledgers will transact through the general ledger account. For example, when a credit sale posted in the account receivable subledger turns into cash due to a payment, the transaction will be posted to the general ledger and the two (cash and accounts receivable) subledgers as well. There are instances when items will go directly to the general ledger without any subledger. These items will be linked to your balance sheet but not to your profit and loss statement. The Concept is more or less addressed same in newly R12 SLA accounting, therefore you should note: A transactional application that generates accounting impact. Used to store detailed information not needed for a general ledger Subledgers post summarized activity to a general ledger periodically to maintain centralized account balances for the company

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All accounting performed before transfer to the GL and this is achieved by user setup who can do by definable accounting rules. At the data level, its a big change for all the subledgers, though there is a first generation changes we have noticed sometime when 11i Payables where concept of Accounting Events introduced first time and accounting performed at subledger level first before moving into GL. The same idea has been incorporated in new sub ledger accounting model , indeed a was a real need because of some uneven functionality likes: 1. Inconsistencies in Accounting Generation like Summary vs. Detail 2. Direct to General Ledger vs. Open Interface 3. Inconsistent Drilldown from General Ledger Also it has been seen inconsistent Mechanisms for controlling Accounting as certain options has been used in existing version: 1. flex biller 2. Account Generator 3. Automatic Offsets What is sub ledger mean for a non finance person? A new transactional application that generates accounting impact Used to store detailed information not needed for a general ledger Sub ledgers post summarized activity to a general ledger periodically to maintain centralized account balances for the company Why SLA and what does it do? Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application Release 12 (R12). It is used to derive all attributes required to account a transaction in Oracle General Ledger. In R12, SLA is used to derive the very basic accounting attributes like entered amount, accounted amount, Date, Currency code etc and the complex attributes like Ledger, Code Combination ID, Periods etc. After deriving these accounting attributes the transactions are then interfaced to GL from SLA. Thus in R12 no sub ledgers (AP, PO, PA etc) interfaces the transactions directly to GL, but all the transactions are interfaced to GL in following 2 steps: 1. Sub ledgers interface the data to SLA. 2. SLA derives the accounting information and interfaces the data to GL. SLA gives the flexibility to manage the entire accounting rule at one place, which acts as a single source of truth for GL. Note: There is no separate responsibility to access SLA setup or the view the transactions generated by SLA. Rather we can access SLA setup and review accounted transactions with
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extended menus attached to each sub ledger module

How does SLA works? 1. Register sub ledger transactions in SLA.

After validating / approving / costing the transaction in the respective module, the sub ledger calls
SLA API to create a reference of the validated transaction in SLA. This reference is known as EVENT. Events are created by calling the public API xla_events_pub_pkg.create_events provided by SLA. It is up to the sub ledgers on how to call the API.

For example Oracle Projects call this API from concurrent program PRC: Generate Cost Accounting
Events and Oracle Payables calls this API while user creates accounting for the Invoice.

While calling xla_events_pub_pkg.create_events, oracle passes a unique id and event class (Will
discuss in next step). Unique ID can be an invoice id or a po_distribution id or an expenditure_item_id etc. As soon as the sub ledger generates event in SLA, SLA returns unique event_id. This event_id will then act as a reference to all the accounting entries generated by the SLA.

Once event is successfully created in SLA, means that the transaction is registered in SLA for
accounting.

Taking the example of Oracle Projects in 11i where after costing the transaction user need to run
the PRC: Interface Cost to General Ledger followed by Journal Import followed by PRC: Tieback process.

But in R12 user only need to run PRC: Generate Cost Accounting Events which will register
events in SLA and thereafter SLA will take care of accounting the transaction and interfacing it to GL.

There is no tieback process in R12, as there is one to one reference of event id between SLA and sub ledger tables.

2. How does SLA understand whether unique id is invoice id or a po_distribution id or an expenditure_item_id as SLA uses same table to store all the identifier?

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Above we discussed that while creating the event we also need to pass event class. This event class is used to distinguish between the types of transaction passed for processing. To understand this better we will go thru the seeded oracle information

MONTHEND/YEAR END CLOSE PROCESS


I) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. ORACLE PAYABLES Complete All Transactions for the Period Being Closed Run the Payables AutoApproval Process for All Invoices / Invoice Batches Review & Resolve Amounts to Post to the General Ledger Reconcile Payments to Bank Statement Activity for the Period Transfer All Approved Invoices Payments, Reconciled Payments to the General Ledger Review the Payables to General Ledger Posting Process After Completion Submit the Unaccounted Transactions Sweep Program Close the Current Oracle Payables Period Accrue Uninvoiced Receipts Reconcile Oracle Payables Activity for the Period Run Mass Additions Transfer to Oracle Assets Open the Next Payables Period Run Reports for Tax Reporting Purposes (Optional) Run the Key Indicators Report (Optional) Purge Transactions (Optional)

II) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Purchasing Complete All Transactions for the Period Being Closed Review the Current and Future Commitments (Optional) Review the Outstanding and Overdue Purchase Orders (Optional) Follow up Receipts-Check with Suppliers Identify and Review Un-invoiced Receipts (Period End Accruals) Follow Up Outstanding Invoices Complete the Oracle Payables- Period End Process Run Receipt Accruals - Period End Process Reconcile Accounts - Perpetual Accruals Perform Year End Encumbrance Processing. (Optional) Close the Current Purchasing Period.

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12. 13. III) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. IV) Open the Next Purchasing Period. Run Standard Period End Reports (Optional) Inventory/WIP Complete All Transactions for the Period Being Closed. Check Inventory and Work In Process Transaction Interfaces. Check Oracle Order Management Transaction Process. Review Inventory Transactions. Balance the Perpetual Inventory. Validate Work In Process Inventory. Transfer Summary or Detail Transactions Close the Current Oracle Payables and Oracle Purchasing Periods Close the Current Inventory Period Open the Next Inventory Period Run Standard Period End Reports (Optional) Order Management

1. Complete All Transactions for the Period Being Closed 2. Ensure all Interfaces are Completed for the Period (Optional) 3. Review Open Orders and Check the Workflow Status 4. Review Held Orders 5. Review Discounts 6. Review Backorders 7. Review and Correct Order Exceptions 8. Reconcile to Inventory 9. Reconcile to Receivables (Optional) 10. Run Standard Period End Reports V) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Receivables Complete All Transactions for the Period Being Closed Reconcile Transaction Activity for the Period Reconcile Outstanding Customer Balances Review the Unapplied Receipts Register Reconcile receipts. Reconcile Receipts to Bank Statement Activity for the Period Post to the General Ledger Reconcile the General Ledger Transfer Process Reconcile the Journal Import Process Print Invoices

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11. 12. 13. 14. 15. 16. 17. 18. VI) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. VII) Print Statements (Optional) Print Dunning (Reminder) Letters (Optional) Close the Current Oracle Receivables Period Reconcile Posted Journal Entries Review Unposted Items Report Open the Next Oracle Receivables Period Run Reports for Tax Reporting Purposes (Optional) Run Archive and Purge programs (Optional) Assets Complete All Transactions for the Period Being Closed Assign All Assets to Distribution Lines Run Calculate Gains and Losses (Optional) Run Depreciation Create Journal Entries Rollback Depreciation and/or Rollback Journal Entries (Optional) Create Deferred Depreciation Journal Entries (Optional) Depreciation Projections(Optional) Review and Post Journal Entries Reconcile Oracle Assets to Oracle General Ledger Using Reports. Run Responsibility Reports (Optional) Archive and Purge Transactions (Optional) Project Accounting

1. Change the Current Oracle Projects Period Status from Open to Pending Close 2. Open the Next Oracle Projects Period 3. Complete All Maintenance Activities 4. Run Maintenance Processes 5. Complete All Transaction Entry for the Period Being Closed 6. Run the Final Cost Distribution Processes 7. Interface Transactions to Other Applications (AP, GL, FA) 8. Generate Draft Revenue for All Projects 9. Generate Invoices 10. Run Final Project Costing and Revenue Management Reports 11. Transfer Invoices to Oracle Receivables 12. Interface Revenue to General ledger (Project Billing Only) 13. Run Period Close Exception and Tieback Reports 14. Change the Current Period Oracle Projects Status from Pending Close to Closed 15. Advance the PA Reporting Period (Optional)
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16. Update Project Summary Amounts 17. Restore Access to User Maintenance Activities 18. Permanently Close the Oracle Projects Period (Optional) 19. Reconcile Cost Distribution Lines with General Ledger (Optional) VIII) Cash Management

1. Load Bank Statements 2. Reconcile Bank Statements 3. Create Miscellaneous Transactions 4. Review Auto Reconciliation Execution Report 5. Resolve Exceptions on the Auto Reconciliation Execution Report 6. Run Bank Statement Detail Report 7. Run Transactions Available for Reconciliation Report 8. Resolve Un-reconciled Statement Lines 9. Run the GL Reconciliation Report 10. Run the Account Analysis Report for the General Ledger Cash Account 11. Review the Account Analysis Report 12. Correct any Invalid Entries to the General Ledger Cash Account (Optional) 13. Perform the Bank Reconciliation IX) General Ledger

1. Ensure the Next Accounting Period Status is Set to Future Entry 2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger 3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger 4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional) 5. Generate Reversal Journals (Optional) 6. Generate Recurring Journals (Optional) 7. Generate Mass Allocation Journals (Optional) 8. Review and Verify Journal Details of Unposted Journal Entries 9. Post All Journal Batches 10. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs) 11. Revalue Balances (Optional) 12. Translate Balances (Optional) 13. Consolidate Sets of Books (Optional) 14. Review and Correct Balances (Perform Reconciliations) 15. Enter Adjustments and / or Accruals and Post 16. Perform Final Adjustments 17. Close the Current Oracle General Ledger Period 18. Open the Next Oracle General Ledger Period
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19. Run Financial Reports for the Closed Period 20. Run Reports for Tax Reporting Purposes (Optional) 21. Perform Encumbrance Year End Procedures (Optional)

Account Payables
It is an ERP solution to effectively manage creditors. The main task is to pay the supplier for the goods &services. It captures information with respect to purchase invoice transaction & payments to supplier. The task of effective control of payables can be achieved using the following tools of management. 1. Timely recording of invoices & suppliers liability. 2. Effective payments to suppliers through invoices validation a approval process & exercising hold whenever needed & availing maximum credit wherever possible. 3. Paying on the due date to avoid overdue interest. You can pay early as per vendor agreement to available maximum discount & the proper mode for payment. 4. It is a subsidiary ledger to GL. It is integrated to other modules like: GL, Assets, Purchasing, Cash Management, Inventory, Projects, Human Resources, Receivables, Invoice Gateways (Oracle Ecommerce), Internet Express, Property Management. Business Flow Business flow of payables is as under, 1. Invoice Recording: Based on purchasing order suppliers will provide goods & services invoices. In payables invoices are recorded based on invoices received, purchase order, receipt of material & services. 2. Invoice Approval Process: Dunning approval process, placed to delay payment for any variation in purchase order in invoices/receipt of materials. 3. Invoice Accounting: The validated & approval invoices will be accounted. 4. Debit memo issue/Credit memo/receipts/Recording/Accounting: For any variation in purchase order, invoices/receipts/debit memo/credit memo will be issued, which will be recorded & accounted. 5. Advance Payment approval process: Any advance payment to suppliers requesting approval before payment. 6. Payments of Approval invoices: Approval invoices will be paid by using payment documents. It can be single/multiple payments.

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7. Payments Accounting: Once payments are a affected, they will be accounted. 8. Refund receipts/record/accounting: Any excess payment will be refunded by the supplier which will be recorded & Accounted. 9. Review of suppliers liability Outstanding: Done periodically. 10. Transfer periodically to General Ledger.

APPLICATION FLOW 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Assign General ledger Set of books (Ledger in R12) (Ledger in R12). Define lookups (purchasing, payables, Employee). Define payment terms. Define Distribution set: Full/Skeleton Set of defaults &controls in financial & payable options. Create supplier & supplier site. Standard invoices/credit memo/Mixed invoice entry/Employee expense invoices generation, Approval, Accounting. Prepayment invoices generation/Debit memo issue recording, approval, accounting process. Define payable formats, Bank account, payable documents. Issues of payments, Approval Accounting. Recording of refunds & accounting. Transfer approved invoice transactions & payment transaction to GL. Information Flow Data can be predefined in following levels shown in ascending order of hierarchy. Financial options

Payables options

Supplier level

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Supplier site level

Invoice leader level

Schedule payment line level

Financial Options:

Certain values can be predefined & control options enabled. Values defined at this level will act as default values access various modules like payables, purchasing & asset modules. These values & options cascade documents to next lower level. Payable Option: Distribution lines/level Some additional values & options can be defined. The values are defined at payables options level act as default exclusively for payables module only. The values define at this level will default to every new supplier being defined. Supplier level: Values & options that defaulted from payables options can either be accepted/overwritten with new values & options. The values options defined at this level will default to site being defined at the site level. Supplier Site level: Values & options can either be accepted/overwritten if required; It will default to Invoice header level. Invoices Header level: Values & options defaulted from supplier site level can be accepted /overwritten. It will default to the following 2 level. Distribution lines level Schedule payment line level

Accepted/Overwritten

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Transactions

Purchase Invoice

Payments

This transaction will be in functional or foreign currency. Purchase Invoice Transactions: Standard invoices Credit Memo Debit Memo Mixed invoice Po default Standard invoice Quick match standard invoice Prepayment invoice Expense report invoice Withholding tax invoice Interest invoice

Payment Transaction: Basic Setups 1. 2. 3. 4. 5. 6. 7. 8. Choose Set of books (Ledger in R12)(Ledger in r12) Define financial options Define payable options Open period in payables Define payment terms Define lookups Define discount sets Define supplier & supplier sites Manual payment Quick payment Refund

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9. Define bank formats 10. Define bank account& payable document. Financial options After choosing GL Set of books (Ledger in R12), define financial options which have following regions. Accounting Supplier Entry Supplier payables Supplier Purchasing Encumbrance Tax Human resources

Account payable, purchasing, FA module share these options. Information flow starts from financial option. It defines the defaulting accounting flexfields for Oracle Payables financial transactions which create oracle GL journal entities. Navigation: Setup Options Financials

Accounting tab: Future tab: Number of future periods that we may use in our Set of books (Ledger in R12). In payables there is various period statuses Never open Future Open Close Permanently close period.

Never Open: Cannot enter transaction at all Future: It can be entered but they cannot be processed/ posted in GL. Open: Enter post & transfer to GL. Close: Cannot enter transaction but can generate statement like open period.
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Permanently Closed: It will work for all close period. In close period we can toggle to open period but here u cannot. GL Account: Liability Default liable account for all new suppliers created this value can be overridden during supplier creation. Prepayment: Default account for each line entered in prepayment type invoice Future dated payment: This default to all new supplier & bank account for all future data payment. Discount taken: Discount taken on payment PO rate variance gain/loss: Rate variance when we match invoice to purchasing order/receipts. Expense clearing: payments through credit card, oracle internal expense. Misc: Misc charges when invoices are imposed through XML gateway (or) high supplier port Supplier Entry tab: RFQ only site: If we enable this all suppliers will be defined as only RFQ only site. For these sites no purchase order can be generated. Hold unmatched invoices: To place a hold on invoice during invoice validation when it is not matched to either purchase order/receipts until the hold is released invoice remain unpaid. Invoice match option: Purchase order/receipts. It indicates how to match invoices. Supplier Number Entry: Manually/Automatically. It can be changed at any time. But before changing make sure that the next available now for automatic enter is larger than largest no: already recorded. Type: Alphanumeric/Numeric It can be changed at any time, however changing from a no. numeric only is allowed only if all current suppliers no are numeric. Next automatic no: Top value to be entered at the time of financial option setup for generating unique sequential supplier no. Supplier Payables tab: Payment terms: Immediate/No of days (used to car due dates, discount dates for each invoice entered in invoice workbench.
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Payment method: Check/clearing/Electronic/wire recording payments to cost centre.. etc internal/departmental/inter

Electronic: Information about supplier payment is captured by magnetic media which is delivered to a bank through electronic data interchange gateway. The banker uses this information to electronically to the fundamentals from our account to supplier account. Check: Written order to bank to pay a specific sum of money on demand to a specific person/order. Wire: To telegraphic is used to manually record. Receipt acceptance days: It refers to grace days to avoid into being added to the invoices for delayed payments. If we enable an option to recalculate schedule payments at another level, payable option approval recalculates the invoices due date based on this value also. Always take disc: Payables always take disc from my supplier no matter when to make payments. Pay alone: We can pay each invoice by each payable document. If we dont enable, we can combine paym ents of several invoices & pay by single payables documents. Supplier Purchasing tab: Options defined at this region were default for purchase region from the supplier in supplier window. The inventory organization field is applicable to purchasing module. Ship to location: Inventory Org : For purchase module transaction use. Ship via : Default mode of the operation of freight carrier which will duplicate usually to the supplier like road, air, rail... Freight on board (FoB): Specify the term at which the vendor liability classes Freight items: Specifying freight terms payments methods Whether it is prepaid /paid by vendor or pay & collect it from supplier/no freight terms. Encumbrance: It means year making/reserving funds from Out of a budget for a specific use. Encumbrance in application is defined in this region. Controls specified here will be used for payables & purchasing In Purchasing modules, it is used for requisition &purchase order. In payables, encumbrance for unmatched invoices & also for variance, it matches invoices & purchase order. Use requisition encumbrance: If you enable this you got to Choose the encumbrance type. And the encumbrance type for the requisition is commitment.

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Reserve @ completion: If it is enabled, encumbrance can be created by their preparing requisition, otherwise only the approvers of requisition can create encumbrance. Use PO encumbrance: You got to choose its encumbrance type, PO& the normally obligation Encumbrance for PO journal for this purchase definition at this level. Invoice encumbrance level: Encumbrance type to be used for creating encumbrance journal for invoice. TAX: Default tax code: It defaults to invoice tax code option in the supplier window. If you choose a tax code for which we have defined different tax for different effective dates, payables will automatically use the tax applicable for each invoices based on invoice date. VAT Registration: Member state: Location of outcomes to find out whether the company is located in the member state of the E.U. VAT registration no: Enable recoverable tax:flatRecoverable /Non recoverable Flat tax type discount as recoverable for reporting, purpose split taxes into recoverable& non recoverable lines, automatically calculate tax &profit rate it back into GL account of the taxable distribution. Default recovery rate: Specify a rate that will default to tax recovery rules & tax codes which we define. Calculate rules: Rounding rule: No round tax amount in payables & purchase. Up/down/nearest Precision: Enter a one digit whole no: to indicate which decimal place you want to round automatically to calculate tax amounts in payables & purchase. Minimum Account table unit: The smallest monetary unit you want to round the tax amount. Human resources:

Business group:

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Define your company as a single business group/there is several major Branches/operating unit each may be defined as a business group. While defining employer, specifying the business group to which they belong. Expense reimbursement address: Home/office The default employee address to which the reimbursement object is to be specified. The value entered here defaults to new employees you create in the persons window when you can optionally over side it. Use approval hierarchies: On HR you define positions & their hierarchies. The job of individual within an organization. For e.g.: Account clerkjob Enable it to define approval pass for documents within purchasing. Employee number: Method Manual/Automatic Payable Options It will simplify supplier entry, automatic payment processing, invoice entry. Most of the options can be updated for future transaction any time. There are specification payables modules only. There are 14 tabs /region. 1. Accounting methods, 2. Transaction to GL 3. Payment accounting 4. Currency 5. Supplier 6. invoice 7. matching 8. interest 9. Expense report 10. Payment 11. Invoice tax 12. Withholding tax 13. Tax defaults & rules 14. Reports Setupoptionspayables In payable options window we can define control options & default used throughout payables.

Accounting method
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Secondarycash Accrual/Cash basis method of Accounting:

Accrual accounting is mandatory in certain countries. Secondary accrual accounting. Set of books (Ledger in R12) is maintained in few countries in Europe that too on cash basis in order to meet sales tax reporting requisition. Here sales tax output is by deducting the input tax i.e. tax on supplier invoices from output tax i.e. tax On customer invoices. Input tax can be set of against opening tax only on efficiency an accruing them in the books of account as evidence of payments. It will be captured in separate books maintained on a cash basis & field along with the return. So the transaction in payables can be journalized in to GL Set of Books (Ledger in R12) based on two type of accounting methods. For the primary accounting method based on accrual basis, the GL SET OF BOOKS (LEDGER IN R12) will automatically default from the SET OF BOOKS (LEDGER IN R12) . Secondary SET OF BOOKS (LEDGER IN R12) can be optionally maintained internally even if is not mandatory. But you have to specify the basis on how to journalize the transaction. The options available are accrual/cash/none. Automatic offset method: To create multiple liability lines in payable in such a way that all balancing segments are equalized in terms of debits. Credits automatically during invoice validations process. None/Balancing/Accounting Unbalanced journal:
Invoice Transaction Unbalanced Journal Dr C1 C2 C1 100 200 000 6420 6420 2210 1000 2000 3000 Cr

Balance:

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C1 C2 C1 C2 100 200 000 000 6420 6420 2210 2210 1000 2000 1000 2000

Account C1 C2 C1 C2 100 200 100 200 6420 6420 2210 2210 1000 2000 1000 2000

The offset entries are created only at the terms of invoice validation process. These types of offset entries are created for prepayment entities to in case of company want to prevent prepayment application. Accordingly for balancing segments enables the relevant check box. AP Payable option Transaction to GL: How payables transacts to a GL interface. In detail As many accounting lines (as number of lines in each invoice) transactions are transfered to GL. Summarize by accounting date: Lines summarized account to account date In detail Summarize by accounting date Summarize by accounting period.

Summarize by accounting period: It will create the least no of lines because it will sum up a pair accounting for a part period &there one line would be generated. TR. Reporting books: Applicable only if we have a reporting SET OF BOOKS (LEDGER IN R12) when we run payables to GL for our primary SET OF BOOKS (LEDGER IN R12) , TR also takes place in repository SET OF BOOKS (LEDGER IN R12) without any explicit program for the same.
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Submit journal import: If you dont enable transaction when Transfer to GL by the program Transfer to GL will not import it to GL, it will be in the interface. In GL we have to run the program to import it from interface if enabled, the latter program will automatically run. Allow override at program submission: Above control if you want to override at the program submission enable it, if you enable it at the time of submitting payable Transfer to GL in the parameters you can override this submission whether to submit journal import/not & change from Transfer in details to summarize by accounting date or period.

Payment Accounting Accounting for payment: When payment document is issued/ when payment document class. When both are enabled, it gives the functionality to allow reconciliation accounting .Payment entries that will be created when payment is issued. Regular payment: AP liability accounting or to cash clearing account. Future dated payment: On the date of issue AP liability account or to future dated payment account On the date of maturity: Future dated payment account To cash clearing account. They are unreconciled payment entries once payment is cleared, cash clearing account can be converted to cash account after reconciliation in Cash management module. Accounting for gain/loss: Foreign currency transaction account for gain /loss when accrual/cash basis is used. Cash basis: Account for currency gain/loss but payment time & payment clearing date. For future dated payment, it will account for payment issued date & payment maturity date & payment maturity date & payment clearing date. Accrual basis: Between the invoice date & payment issue date. Future dated payment: Invoice date Pay issues date Pay maturing date

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Pay clearing date.

Calculate gain/loss: For each invoice For total payment

Use future dated payment account: From payment document From supplier site

Currency Use multiple currencies Require exchange rate entry daily rate /periodic rate Calculate user exchange rate : If invoice/payment is entered in a currency other than functional currency or an associated fixed rate currency I.e. euro derived currency. Exchange rate type: Corporate A standard make rate by senior management for use throughout the organization Reporting: Spot Daily exchange rate that is a quoted market rate User - Used to manually enter in own exchange

Rate during invoice entry at payment time: If functional currency amount is known for any foreign currency invoices, then one can enable this option for the system to calculate the user exchange rate. It is used mainly to import invoices through payables open interfaces.
GL ACCOUNT Realized Gain Loss Rounding 6842 6844 6826

Supplier

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Invoices tolerance: To allow variance between invoice, purchase order receipt & tax information, you can specify here the percentage based/amount based tolerance for suppliers. Pay Group: Normally defined in purchasing lookup. This is to assign pay group for any new supplier for payment in batches& reporting purposes (standard/employee pay group) Invoice currency: USD Terms date basis: System/goods receive/invoice/invoice received (It decides the date based on due date basis/discount date basis & prepare the schedule for payment). Invoice: Terms date will be decided as invoice date & account due date will be calculate. The date on which we receive the invoice.

Invoice received:

Pay date basis: Discount/due override @ supplier & supplier site .If invoices are to be paid by exercising discount option, then the schedule payment is as per the due rate. If they are paid based on due date, then system schedule payment as per due date. Book charge bearer: Payment of book charges. Internal/supplier/Negotiation: Supplier/Standard Supplier Negotiation: Supplier will bear the book charges at negotiated rate. Supplier standard: Supplier will bear book charges at standard rate. Tax reporting: Combined filling program. A use pay at region supplier site will default as tax region same will be default in the distribution lines level. Income tax region: Only when both check boxes are enabled overrides at invoice discount level. Invoice (tab):

Use invoice approval workflow: If disabled, Cant submit invoice for approval to higher hierarchies.

Allow force approval: Override the invoice approval.

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Workflow process: Approve manually at the user level can forcefully approve even if the approval workflow process is not complete.

Requesting validation before approval:

Allow adjustment to paid invoices:

Recalculate schedule payment:

Automatically create fright discount: If you enable that check box, it uses the freight distribution for the invoice from the next default option freight account. Freight discount will appear as a single line in invoice.

Confirm date as invoice no: When invoice no is not entered, then date will become the invoice no, In such situation a caution in popup window will come.

Allow online validation: Users can select invoices for validation in the invoice workbench to the invoice action window/those validation buttons is invoice batches.

Allow document category override: For invoices besides recording invoice no in case us to wants a special sequence numbering process for entity of invoice in invoice workbench. They can adopt a document category sequence numbering you have to enable this checkbox & can use add category sequential numbering. GL date basis: Basis on which invoice will have the default accounting data. Invoice date System Goods record/invoice date Goods record/system date

Prepayment: Prepayment invoice - Immediate for advance payment. Payment terms: Default payment terms for all
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Settlement date: No of days to be adapted to the system date for calculating the date which prepayment can be settled/ applied against any invoices like the prepayment will not be available for application/settlement against any invoices.

Bill prepayment accounts when matching: Disabled - prepaid account code combination i.e. defined in the supplier site would be defaulted for the prepayment line discount. Enabled- When matching which PO/Receipts, the prepayment item discount lines will be built taking into account, the natural account segment from the supplier site prepayment account & other segment from the responsible purchase order discount lines/receipt discount lines.

Matching

Allow final matching: Final match of an invoice to the PO is done by enabling it. Here for any subsequent invoice matched to PO after final match, the system hold will be placed for want of PO equivalent & this hold cannot be released manually.

Allow discount level matching: Enable: Matching of invoice to PO discount matching of 1/more PO discount with an invoice is possible here disabled. Payable will allow only matching an invoice to a full PO shipment.

Allow matching account overview: Enable- You can override an account for invoice discount created by matching to a PO matched invoice discount account is overridden in invoice workbench/any imported invoices. In case of using encumbrance accounting/perpetual receipt accrual/PO is project related/PO discount is inventory then such overridden option is not possible.

Tr PO descriptive Flexfield information:

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When matching an invoice to PO payables automatically to the descriptive Flexfield information from PO to invoice if this check box is enabled provided the structure of Flexfield in PO discount is the same as that in invoice discount. Interest: Controls & options for calculate of information for override invoice/others.

Allow interest invoice: Enable system will calculate information for override invoice & automatically generate interest invoices.

Prorate access overdue invoice: Enable prorate the interest amount of the overdue invoice access item discount. Minimum interest amount: For calculating interest is below this value, and then payable will ignore the calculate interest does not generate any interest invoices. Interest invoice account codes: Expense &liability Incase if the second checkbox above is disabled, then a single line discount is created for the total interest & overdue invoice with this account code combination. Expense 6820 Liability: whenever allow interest invoice is enabled, then you have to specify the interest invoice liability account code combination in this field -2250 it is used as prepayment process. Expense Reports Default template: To enter details of expense of employee is form/template with regular expense codes/names can be created & used as default template have this will appear in expense report window. The default value/codes/names/which specified can be overridden at the expense report window. Payment terms: Select a default payment term for expense report payment. It will be assigned to the employee when the employee is made as a supplier during expense report/import. Expense report pay group: Employee can be grouped for expense report reimbursement purpose & the pay group can be created at purchasing lookups which can be attached here. Payment priority: 99 (1- higher priority 99- lowest priority) Apply advances: To apply advances given to the employee against expense report. Override this option at expense report window. Automatically create employee as supplier: At the time payable expense report else he has to be defined in the supplier window with classification as employee & by linking employee name & number.
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Hold unmatched expense report: Unmatched expense report invoices will be placed on hold during invoice validation. Payment Bank account: Default internal bank for our company. It will be used for payment to supplier. It will be default in payment window & payment in batches. Payment Batch limit: Maximum amount payable for the payment batch, if the payable amount is the batch exceeds this limit, the system shows a warning message but the excess can be optionally allowed. This limit is per payment batch. EFT user no: EFT customer identifying number: allocated to you by user. Banker/clearing organization. It is incorporated in the pay document sent to buyers. Additional pay through days: The number given here is added to default pay through date while initialing a regular payment batch. No of days specified here are the days but the regular payment date & default pay through date. In case it is 10, payable add to the system date & then arrive at default pay date when we run a payment batch. Allow document category Override: Separate numbering of payments as voucher number: Besides payable document number sequential numbering can be assigned for payment & the payment voucher will be accordingly numbered sequentially. If you want, you can define a different sequential numbering & override the default setup, if the checkbox is enabled. DISCOUNT: Exclude task from disc calculation: Enabled tax amount will be subtract from invoice header amount discount will be calculated. Three system of accounting discount Taken: System account: All discounts Taken will be credited to the system disc taken account define in the financial option level. Prorate expense: Prorate any disc across invoice discount lines, if exclude tax from discount line is enabled, then disc will prorated across discount expense lines only & not for tax lines. Prorate task: Prorate to tax discount line only as percentage of the discount amount equal to the percent of tax distribution.

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E.g. tax distribution line 20 % of the total distribution amount, then payable prorate 20% of the discount amount against tax lines, only the remaining 80% of discount amount is accounted as discount taken account. SINGLE PAYMENT:

Allow print: To print payments while effecting quick payment.

Allow pre date: We can create payment date prior to system date.

Allow void reissues: Of checks, in cases a check is spoiled, you can void & reissue another check bearing new cheque number in line of the same cheque through payments.

Allow address change: Change address of supplier site at the time of payment instead of sending it to supplier site adds as per the invoice.

XML PAYMENTS: Automatic confirmation: If System Company uses XML payments, and this check box is enabled then system will allow automatic confirmation of payment batches based on process payment requirement. XML message from in book indicates that xml payment was successful. If it is enabled, the user will receive workflow information at the confirmation of the payment batch. REMIT TO BANK ACCOUNT:

Allow remit- to account override: Normally for direct remittance to supplier bank account, the supplier site will be having a default primary bank account. Enabled in the payment batch window, the user has got an option to change the remit to supplier bank account. BANK CHARGES: Use bank charges: Enabled you can enter bank charges provided in the supplier region of the payable option bank charge bearer option is exercised.
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INVOICE TAX

Requisition tax entry at header: We can enter the tax amount of the tax code of the invoice at invoice header level itself at invoice workbench. When tax is accounting like this, then distribution lines are generated based on invoice amount after subtracting the tax amount. Not applicable for imported invoices/for credit & debit memos in invoice workbench. Use automatic tax calculation: Based on the tax code tax calculation automatically without entering the amount. CALCULATION LEVEL: For automatic tax calculation, Level at which tax has to be calculated. Header Header level amount is split into line & tax amount. Tax code Based on tax code attached at header level. Line This is always inclusive.

Line: - Tax amount calculation on distribution line amount, It can be inclusive / exclusive if inclusive then check box includes tax in distribution line level should be enabled; otherwise it will be exclusive tax. Tax code: Calculating tax more/less in the same way as line level tax except that at the time of calculation of tax amount, tax lines which the same tax codes can be grouped & then rounding of tax is done .Rounding off is not done on each tax line but done in tax code grouping level only.

Allow calculation level override: The default level of tax calculation selected in calculation level can be overridden at the supplier site level only if it is enabled.

Distribution amount inclusive tax: - tax calculation at line level/tax code level at inclusive tax then it is to be enabled.

Allow override: if the above check box is enabled, then to override the default method of calculation of tax at supplier site level, enable this,

WITHHOLDING TAX
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Use withholding tax: For supplier & to automatically calculate the same for supplier based on withholding tax groups. Allow manual withholding: You can enter withholding tax manually in invoice distribution tax window. Tax group: Specify the default withholding group for all supplier inclusive new suppliers only if a use withholding tax option enabled.

WITHHOLDING AMOUNT BASIS: Include disc amount: You can make payables to inclusive discount amount also for calculation withholding tax amount. Include tax amount: You can include invoice tax amount also for calculation of withholding tax. Apply Withholding Tax: Never: Never to apply on supplier invoices At invoice validation time At payment time

Creating withholding Tax: Never: If the company does not want to calculation withholding tax & create Invoices automatically, then enable this At invoice validation time At payment time.

Include income tax type on withholding distributions: Enable payables to automatically create distribution types for withholding tax .for 1 to 99 supplier under automatic withholding tax calculation options to report on federal IT with held for those supplier. In case of manual withholding tax the amount is to be entered manually for reporting. TAX DEFAULTS AND RULES Enforce tax from account: To set up hierarchies for selecting tax code from various levels. Allow payables to select tax code from GL tax assignment for the relevant natural account.
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Enforce tax from PO: To select tax from PO shipment PO i.e. is matched to the invoice. Tax Code Defaults: Seven levels from which tax code can default. 1. 2. 3. 4. 5. 6. 7. PO for matched invoices Supplier site Supplier in case of multi org support structure, entry Accounting of tax code at supplier window is not allowed Financial options Invoice header Template

ACCOUNTS RECEIVABLE

Effective customer Management is the key of any organization. Accounts receivable Modules help on enterprise to manage to customer base, sales invoice and receipts from customer effectively.

ACCOUNTS RECEIVABLE- A SUBLEDGER Accounts Receivable is a subsidiary ledger in which one can track customer, customer transactions, receipts and collection activities. SUBSIDIARY LEDGER TO ORACLE GENERAL LEDGER It is subsidiary ledger to oracle General ledger and its fully integrated with General Ledger. All the accounting Transactions will flow to General Ledger with full Audit capabilities likewise one can drill down from the general ledger journal entries to the oracle receivable accounting flexfields distribution details. Mainly deals with sales invoices, receipts and collection activities The main focus that accounts receivable is customer entry, sales invoices, cash receipts and collection transaction. BUSINESS FLOW: Customer-Purchase item: A customer will place a purchase order.

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Generate sales order: Then Generate sales order based on credit limit of the customer and availability of inventory. Based on the sales order, Invoice is raised with appropriate payment term. Receive the payment from customer: payment is received from customer. Remit (or) factor receipts with bank The payment either received is remitted or factored with bank. If payment from customer is not received then collection activity is initiated.

CUSTOMER SALES ORDER Purchase order credit limit &


(po) yes stock

INVOICE
payment term

REMIT/FACTOR RECEIPTS
no

PAYMENT

Collection activities

AR FLEXFIELDS: Sales Tax Location flexfield: The sales tax rate is determined by the customer state, county and city. The sales tax location flexfield structure helps one to capture different rate as per the capture location. Application: General ledger Setup->financials->flexfields->key->segments; Application: Title:

receivables

Sales tax location flexfields

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CODE TITLE DESCRIPTION State, Country, city become field VIEW NAME AR_LOC_flex _USA

State. country. City

State. country. city

This is the default structure. Predefined Segment: Click segments to view the 3 separate segment structure.

NAME

WINDOWS PROMPT

COLUMN

VALUESET

DISABLED ENABLED

State

State

Location_ID_Segment AR_LOC_STATE Location_ID_Segment AR_LOC_COUNTRY Location_ID_Segment AR_LOC_City

Country Country City City

2) Territory flex field: It is primarily used to define the reporting territory and capturing territory information. It also facilitates customized reporting on territory information with respect to sales person, customers and transactions. The usage is optional in accounts receivables.

Key Flexfield segment window: Application: Receivables Flexfield Title: Territory Flexfield

CODE

TITLE

DESCRIPTION Customers territory

VIEW NAME

Customer_ Customer Territory_ Territory

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Flexfield flexfield flexfield

Click

Segment

Segment summary window->(territory flexfield)->customer territory flexfield Name 1.Area Window Prompt Area Column Value set Displayed Enabled

Segment Territory Area Segment Territory Country Segment Territory Region

2.Country Country 3. Region Region

Value set

Flexfield Qualifiers

New

Open

Information flow: 1) System option: One has the system option to specify the following. (i.e.) ones accounting method Set of books (Ledger in R12), tax method, an accounts, customer and invoice parameter, further, one has to specify how AUTO-INVOICE and AUTOMATIC RECEIPT Program run

2) Customer Profile class: One can define the customer Profile class to group the customer accounts with 1. similar credit worthiness, 2. business volume, 3. payment cycles,
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4. Credit limits, 5. payment terms, 6. statement cycles, 7. invoicing and 8. Discount information. One can also define amount limits for ones finance charge dunning statements for each currency in which one transact this to the customers. Then this Profile class is assigned to the customer. So that it will flow to the customer standard. Customer standard: Where one can enters the details of the customer.

Customer Address Level: Then from the customer standard level, the information will flow to the customer address level and further flow to the business level. Customer business purpose level: Where bill to and ship to address details are given.

3) Transaction Level: The information will flow to the transaction level where the transactions are enabled.

System option

Accounting method

Customer Profile class

Group Customer with similar

Customer standard

details of customer

Customer address level

address

Customer business level

Bill to/ship to

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Transaction level - Accounting code combination

System Options: Receivable system options is used for setting up values which flows to lower level in the information hierarchy system option is made up of tabs. 1. 2. 3. 4. 5. 6. 7. Accounting tab Tax Tax Defaults and rules Trans and customers Revenue Policy Claims Miscellaneous

Setup; System; System option

System option (KARTHIK PR E-Demo Receivables (CO1-LOC1))


Accounting Tax Tax Default and Rules Trans and customers Revenue policy Claims Miscellaneous

Accounting tab: Operating unit: Vision operation Name: Vision operation (USA) Accounting Method: Accrual (accrual/cash)

Finance charge Activity Realized Gain Account Realized losses Account Tax Account

Finance Charges PR-740-7830-0000-000 PR-740-7840-0000-000 PR-000-2520-0000-000

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Unallocated Revenue Account Cross Currency Rate Type PR-000-4150-0000-000 Corporate

Cross Currency Rounding Accounts: PR-740-7826-0000-000 Heading Account: PR-740-7827-0000-000

Automatic Journal Import Header level Rounding -Accounting Flexfield Description Day per posting cycle

30

Name of the operating unit Name of the Set of books (Ledger in R12) Name of the accounting method whether accrual->to record revenue from debit memo ,invoices, charge backs cash basis->recognize revenue at the time when one receives payment for invoice, debit memo, charge backs. Finance charge activity: This default provided by the receivables. One can have ones own activity defined. To account the difference in exchange rate gain/loss Realize loss account to account the differences in exchange rate losses. One has to enter the tax account to enter the tax codes and rates. Unallocated revenue account is used when cash basis is used and one can apply cash receipts with norms zero balance and invoice with zero balance.

Cross currency Rate Type: The default is exchange rate type, the receivable will use in case the receipts and transactions are into different currencies. Cross currency Rounding Account: The receivable will use this account to record rounding amounts created during cross currency receipt application. Header Rounding Account: This field is only optional. Receivable use this account to record any rounding differences that arise when converting foreign currency transactions to ones functional currency.
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If automatic journal import is enabled, to import the batches of transactions to posted once in general ledger. One has to enter the number of days per posting cycle to avoid system over load. One has to enter the number of days. E.g. 10 days is given here but the number of accounting days is 30, then there are three cycles. If header rounding account is given then the header level rounding check box should be enabled.

2. Tax Tab: Tax Method:

Sales tax State .country. city

Location Flexfield Structure

Postal code Range

0000-99999-9999

Address validation

No validation

Invoice Printing

Item size and sum

Tax registration number

98-1234567

Tax vendor views

oracle

Sales tax Geo over ride

Inclusive tax used Rounding Option


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Calculation level Rounding level Line nearest

Reporting Currency USD Precision 2

Min accountable unit 0.5 Allow Over ride This tab is used to calculate the taxes. One can enter either sales taxes (or) value added taxes. So that receivable uses this tax method. Sales tax is based on the location of the customer receiving ones goods and services / whereas value added tax is imposed on the value added to each goods and services at each stage of supply. One has to enter the ones sales tax location Flexfield structure state; country; city. It is used as Predefined location flexfield structure. One has to enter the postal code range that will be default to tax, location and rates window. Address validation: One can make the system to have the validation check on the address format. Three values 1. Error 2. No validation 3. Warning Invoice Printing: Select the method to print tax amount on the invoices. One has to enter the sales invoice Tax registration number for the same to be printed on the invoice. Tax vendor views is used to calculate the tax select one from the invoices. Enable inclusive tax used checkbox. When one wants to use inclusive tax codes. Calculation level field: default line level. Line, header, one can opt to calculate either at line level or header level. The system will calculate tax at each line level. If it is header means one will calculate tax for each invoice for each rate. Rounding rule-> up, down, nearest. o Up -> round the calculation at the greater amount o Down -> round the tax calculation at the lowest level o Nearest -> round the tax calculation at the nearest decimal point (or) integer. Reporting currency will have the same currency US dollar as your reporting currency.
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Precision is the number of decimal places to be displayed. Minimum accountable unit is the smallest denomination used in the currency. Rounding rules example Precision -> 2. Minimum accountable unit is .02 Rounding rule unit Price rounds to
up down nearest 3.444,3.445,3.446 3.444,3.445,3.446 3.444 3.445 3.446 3.45 3.44 3.44 3.45 3.45

If allow over ride is enabled, one can specify the tax calculation and tax rounding both at the customer level (or) site level. 3) Tax default and rules tab: Enforce tax from revenue account Calculate tax on credit memo during auto invoice
Tax code defaults Customer site Customer Product Revenue account System option Hierarchy 1 2 3 4 5

Tax code

Exception Rates Use customer Exemptions Use item Exemptions (B) Use item tax rate Exception (G)

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If enforce tax from revenue account is enabled then it is optionally set up ones system to ensure that the tax code from ones invoice lines is same as the tax code one has assigned to the account segment for ones revenue account. Enable calculate tax on credit memo during auto invoice if one want to calculate tax on credit memo automatically during the importing of credit memos using auto invoice. Tax code defaults -> one can enter the hierarchy by entering the sequence number for each. This hierarchy determines the order in which receivables derive the default tax rate when one manually enters transaction or during running auto invoice Program. Exception rates: Enable Use customer Exemptions to one can include customer exemption for when calculating tax for ones transaction. Enable use item Exemption one can include item exemption for calculating tax on one transaction. Enable use item tax rate exception when one uses tax rate one define for specify Product for based on customer ship to address

Trans and customer tab: Allow change to Printed transaction (J) Allow payment of unrelated transaction (Q) Allow transaction Deletion (K) Show billing number (Z)

Document number generation level Auto invoice Tuning segments Accounting flex: Account
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When saved

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System items Territory : Item : Area

Max memory (in bytes) 131070 Log file message level 3

Purge interface tables Customer Automatic Customer numbering Automatic site numbering Create reciprocal customer Grouping rule name default

Enable allow change to Printed transaction one can update the transaction that have been Printed. Enable allow payment of unrelated transaction one can allow receipt application to debit items of unrelated customers (or) to allow bills receivables assignments to transaction of unrelated customers. Enable allow transaction deletion one can delete transaction after they have been saved. Enable allow billing number By doing this receivable assigns a unique invoice billing number when one print a draft or final version of ones consolidated billing invoices. One can select the point when invoices generate a document number for ones transaction. There are 3 document number generation level. None When completed When saved

Auto invoice Process of transferring the transactions from other system (OM 0r Legacy system) into AR. One has to enter the accounting flexfield, system items and territory flexfield segments that are most often selected by auto invoice.
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Enable automatic customer numbering by during this system will assign a unique number to every new customer. Enable automatic site numbering system will automatically assign number to one customer business purposes. Enable create reciprocal customer by doing this one can create the reciprocal relationship during customer. E.g. A and B are customer .A pay for B likewise B can Pay for A. Now A and B are related. Grouping rule name: One can enter the default grouping rule name which the auto invoice will use. The auto invoice will use this rule to group revenue and credit transaction, debit memos and credit memos.

Miscellaneous Tab: Split amount

2500

Discount basis: Auto cash rule set Days in day sales Outstanding calculation

Invoice amount standqrd 90 100 3000

Sales credit percent limit -> Write off limits per receipt

Allow interest Allow unearned discounts Discount on partial payment Trade accounting installed Bills receivable enabled
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Require billing location for receipts Print remit address Point home country

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Require sales person Minimum refund amount Credit card payment method Bank account payment method

Auto receipts Invoices per commit

500

receipt per commit

500

Chargeback due date Default country Source of territory Application rule set

open invoice due date United States salesrep Line and tax Prorate

By specifying split amount, the system will determine the number of invoices over and under this amount as well as the total amount outstanding. Discount Basis -> Receivables will use this value (lines only) as default discount basis in payment terms windows other discount basis. Line only Invoice amount Lines, freight items and tax Lines and tax, not freighting items and tax.

Lines only -> The system will use only the line amount of ones invoices for calculating the discount. Lines, freight item and tax -> The system will use the line items, freight and tax of one invoice but not the freight and charges at the invoice header level as the basis for calculating discount. Lines and tax, not freight item and tax-> The system will use the line item and tax amount but not the freight items and tax lines for ones invoices as basis for calculating discount. Invoice amount-> system will sum the tax, freight charges and line amounts of ones invoice and use as basis for calculating the discount.
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Auto cash rule set: Receivable will use this field when one enter receipt for the customer whose Profile class has not been assigned on the auto cash rule set. Days in days sales outstanding calculation: The number of days when one enters here will be used while calculating ones conventional days sales outstanding for the collection effectiveness indicators report.

The formula used for calculating the days outstanding. Conventional days Sales outstanding = Total outstanding receivables Total sales for last DSO days DSO days -> Days outstanding

DSO Days

Sales credit percent limit: One can specify the limit on the percentage of revenue plus nonrevenue, sales credit that sales person can have on any transaction line. Write-off-limits per Receipt -> one can specify the range for write-off-amounts.so that one cannot write off less than or greater than the amount one specify here Enable accrue interest -> receivable will update the balance to the finance charges of our transaction that are positive. Enable require billing location for receipts -> receivable will associate a built location to cash receipts. Enable allow unearned discounts-> receivables will allow the customer to take discounts even if he pays after the expiry of credit period allowed. Enable Print remit to address-> when one enables this, receivable will Print remit to address on the customers statement. Enable discount on partial payment -> Receivables will discount on partial payment that is the customer is making us payment which is less than the amount outstanding for a transaction.
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Enable Print home country -> System will print the home country on ones invoices and statements. Enable trade accounting installed -> When one wants to use the trade accounting features then one has to enable the check box for this one has to use the re sponsibility of AR trade accounting. Minimum refund amount -> Auto invoice automatically, create refunds for credit memos that are imported against paid invoices Provided the request amount are equal or greater than the minimum amount that one specify here. Credit card payment method -> By selecting the default payment method, one can pay the transaction through credit card. Bank account payment method -> ACH one has to attach the default payment method which is to be paid on the Automatic clearing house bank account transfer. Require Sales person -> one can enter the sales person while entering transaction. Auto receipts: Invoice per commit -> one has to enter the number of invoices. One want to Process in the automatic receipts Program. Receipts per commit -> One has to enter the number of receipts one wants Process in the automatic receipt Program.

Change back due date -> one has to enter the default charge back due date. The options are. Current date: use todays date as current date.

Deposit date: Use date of receipt deposit as a default date. Open invoice date: use date of the invoice (or) debit memo as default date. Receipt date: use date of receipt one enters as default date. Default country -> Receivables will use country one enters here as the home country for tax calculation, flexible bank structure, flexible address format and tax country and tax registration number validation.

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Source of territory -> Receivables will use one territory enter here to default into sales person transactions and customer window. Values are Bill to site -> Receivable will use the customer bill to address as default. None -> need not enter default territory. Sales rep -> receivables will use the territory which has been assigned to the customer as the Primary sales person default. Ship to site -> Receivables will use customer ship to address as default. Application rule set -> One has to attach the application rule set which will determine the default payment steps. When one use the application window post the cash to apply receipts. Line and tax Prorate Line first Tax after Prorate all NOT USED IN AR When ORDER MANAGENENT is used consider these tabs.

6) Revenue policy tab: Standard refund policy Payment term threshold days days

Select credit classification for deferring revenue. First selection : Section Selection: Third selection:

7) Claim tab: Lock box and post quick cash claim handling Unmatched remittance line:

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Prepare for claim creation Negative lines Positive lines Matched remittance line: Prepare for claim creation Exclude credit memos Payment terms: It decides the payment schedule and discount information. Predefined payment term 1. Immediate 2. 30 net Other payment terms include 3. Fixed date payment term 4. Installment payment term 5. Proxima payment term Navigation: setup; transaction; payment terms

AR collectors: Setup; collections; collectors Collectors who are involved in collection activities. 8) Customer Profile class: - 3 tabs

Customer Profile class enables one to default many of the values such as collectors, Receipts parameters, statement parameters, dunning parameters, payment terms parameters, finance charges parameters, invoicing and consolidated billing format.

Tab 1) Profile class 1. Collectors


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2. 3. 4. 5. 6. 7. Receipts Statement Dunning Terms Finance charges Invoicing and consolidated billing format

Tab 2) Credit Profile 1. Classification 2. Periodic review cycle 3. Analyst 4. Tolerance Tab 3) Profile class amounts Currency rates and limits. They need to maintain ones customer and one can group customer with similar characteristics into ones particular class.

Navigation: Customer; Profile class Customer Profile classes: Name

PR CUS PROF CLS

Profile class Click Profile class

Active PR Customer Profile class Credit Profile Profile class amount

Collectors Name

Terms Payment term :

PR Collector

PR IMMTR

Allow override Allow discount Discount Grace days 0


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Receipt Grace days Receipt Match Receipts By Auto cash rule set Remainder Rule set Auto receipts include disputed items Finance charges Charge interest Compound interest Days in period

360

Statements Send statements Send credit balance Cycle

Invoicing Tax Printing Grouping rule

European tax format default

monthly

Dunning Send letters Letter set

Consolidated billing formats Enable type

detail

Standard

Click credit Profile Classification Periodic review cycle Analyst Tolerance

0%

Credit check

Tab 3

Profile class amounts

Currency rates and limits USD finance charges interest rate


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Max interest per invoice Min customer balance for finance charges Min invoice balance for finance charges Min receipt amount Min statement amount Min dunning amount Min dunning invoice amount Credit limit

Order credit limit a) Cycle may monthly, quarterly, weekly, yearly. b) Letter-set: Standard, Standard staged Standard letter set Standard letter set for staged dunning Staged No fin CHG -> standard no finance charges CH standard -> Standard dunning let set vision Switzerland

Credit Profile 1. Classification -> credit classification such as a) high risk b) low risk c) moderate risk 2. Periodic review cycle -> This review cycle specifies how often one has to perform credit review in credit management. 3. Analyst -> One has to select the default credit analyst for the customer Profile class to do the credit review 4. Tolerance -> One has to enter the credit check tolerance (ie) percentage check over the credit limit. When credit check enabled, oracle order management will check the customer credit before creating a new order.

Tab 3: Profile class amounts


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Finance charges -> this interest rates which will be the customer Max interest per invoice -> receivable will charge only if the calculated interest amount is greater than the amount entered. Min customer balance for finance charges -> receivable will apply interest only if the balance is more than the one specified here. Min invoice balance for finance charges -> receivable will apply interest only if the positive invoice balance is more than the amount one specify here. Min receipt amount -> Receivables will generate automatic receipt only when the receipt amount is more than the one specified here. Min statement amount -> receivables will generate the statement for the customers only when the customer amount balances is more than the one specified here. Min dunning amount -> receivables will generate the dunning letter for the customer only if the positive balance is more than the amount one specified here. Min dunning invoice amount -> receivables will generate the dunning letter for the customer only if the debit balance of each positive item is more than the amount one specify here. Credit limit -> one has to enter the credit limit here.

Order credit limit Click save and close Allow natural application: Invoice 100. Max allow to Rs.100 only.

9) Tax location and rates: One can enter the location and the associate tax rates in the tax location and rates window. Receivables use location such as 1. State 2. Country 3. City And associates tax rates to create tax authorities. It also uses the location to validate customer address. Navigation: setup ; tax ; locations Find

State

Find J. Sureshraja M.com., MBA., CA (f).,

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Location State PR STATE Description PR STATE Tax amount PR-000-2520-0000-000

Rate Tax rate% 5% Override from To from 00000 To 99999-9999

01 Jan 07 -

Click

just to view Tax accounting

Then select country and attach the state Just defined Find

country

Given state

PR STATE

Location

Find

Country PR country RATES

Description PR country

Tax account

Effective dates Tax rates% 3 Override from to

Postal codes from to

1 Jan 2011- 00000

99999-9999

Then select city and attach the country just defined Find

City

Given country

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Find
Customer standard, address and business purpose level: Defining customer: Generally customer is one who we enter transaction for sale of goods and services. a) Customer standard level Where we 1) Select customer type 2) Define name of the customer 3) Classification attach the Profile class for our customer b) Address level 1) Enter the address 2) Attach the location -> State, country, city c) Business purposes level Bill to Ship to Statement Dunning Legal and marketing

Profile transaction Attach the Profile class. Navigation for defining customer is Customerstandard. Transaction types: One can use the transaction types to 1. 2. 3. 4. Assign the payment terms, revenue account, tax account, Freight account and

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5. Creation sign for ones account receivables transaction. The customers balance and create journal ledger transactions. One can define the following transaction types, namely Invoices Debit memo Charge back Credit memo Commitment Deposit Name Class Open receivables Post to GL Transaction states Allow freight Tax calculation Creation sign Natural application only Allow over application.

Navigation: SetupTransactionTransaction types Transaction types (recievables vision operation USA) Operating unit vision operation: Name: PR invoice Description: PR invoice

Class invoice

open receivables

Post to GL

Printing options: Print Transaction status: open

Allow freight

Creation sign: Positive sign


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Tax calculation

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Application rule set Invoice type Natural application only Allow over application

Start date : 1 jan 2011 credit memo date: End date:

Accounts Bill receivables deposit: Click account tab: Receivable a/c: Pr-001-0001-0000-0790 freight a/c: Revenue a/c: PR-110-9003-0000-000 Clearing a/c: Pr-110-1250-000-000 Name of invoice in name. Class as invoice from the following

Invoice Open receivables and post to GL are enabled by default if open receivable check box is disabled, then the customer balance will not get updated. If post to GL ids disabled, the balances will not be posted to GL. The open receivables and post to GL check box is used to approve hierarchy. Printing optionPrint (or) do not Print Transaction status is required to implement the invoice approval system Closed where the money is received Open - which the customer has not made payment Pending the higher authorities have not approve payment

Bill receivables Chargeback Credit memo Debit memo Deposit Guarantee

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Void - the transaction will cease to have any effect.

Enable allow freight will allow to enter freight Enable tax calculation will allow to calculate tax Creation sign can be
a) Positive sign b) Negative sign c) Any sign

Natural application only /allow over application Any one check box should be enabled both check boxes add control to determine how applications can be effect balances remaining on a transaction. If natural application only check box is yes and allow over application is NO then even if one receives excess money than the balances due from the customer, then it will consider only to the balance due not the excess amount. Open receivables and post to GL is seen and now we see the relevant transaction
Open receivables Relevant transaction types Post to GL

Data entry operator

Account receivables manager

Account Manager

Transaction Sources It controls the standard transaction types which are assigned to the transaction whether the receivables automatically numbers one transaction batches or not

Name Numbering details Copying the numbers

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Navigation: Setuptransaction source Transaction source: Operating unit: Vision operation Name: PR source Batch source tab: Description PR source Type: manual

Active

Automatic transaction numbering

Automatic batch numbering Copy document number to transaction number Copy transaction information flexfield to credit Effective date : 1-jan-2008 Last number : 99 Last number :999 Receipt handling for credits Reference field default value interface attribute 1 Standard transaction type PR invoice Credit memo batch source Name the source and enter the description. Typemanual & imported If imported when one has to import transaction into receivables using order invoice. If one want to give the automatic batch number, enable the automatic batch number and give the last number used. Similarly, give for automatic transaction numbering. to

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When one want to use the same number for both document number and transaction number then one can enable this check boxcopy document number to transaction number. When one want to copy invoice, transactions information flexfields data to a related credit memo that use this copy transaction information flexfield to credit memo check box. Entering the transaction To enter the transaction, one can use the transaction window to enter invoices, debit memo; credit memo and commitment .one can also query and update ones transaction in the transaction window. We can give header level details like... 1. 2. 3. 4. 5. 6. 7. 8. 9. Source Transaction number Class of transaction Type of transaction Date Currency Terms Ship TO details Bill To details

Then enter the line level details 1. 2. 3. 4. 5. 6. 7. Item select Description Give the unit of measurement Quantity Unit Price Amount Tax code

Finally complete the transaction Navigation: Transaction transactions Transaction line Freight Entering a transaction with freight Header level: Enter the level details
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Enter the header level freight Enter the line level details Complete the transaction Line level: Enter the header level details Enter the line level details Enter the line level freight Complete the transaction

a. Entering the transaction information with freight either at the header level or line level when freight charges have been incurred for all the invoices lines, we enter the freight charges at the header level. At the header level we enter the header level details header level freight, line level details and finally complete the transaction.

b. When freight charges have been incurred for specific invoice line, then we use enter freight charges at lines level. At the line level, we enter the header level details; line level details line transaction freight and finally complete the transaction Example: Transaction with freight: Sales invoice Customer name: Address details: PR Customer Invoice no: Tax Registration: Invoice date: Payment term: PRIMMTR

Sno Item 1 2 3 PRITEM Tax Freight

Qty 75

Rate 1000

Amount (USD) 75000

1570 Total: 76570

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Debit memo: Debit memos are used to bill a customer for additional charges in relation to a previously invoice sale. Memo lines: These may be other range of situation in which we have to use debit memos. Such when one wants to bill the customer for charges, freight and tax in such situation, one can use memo lines.

DEBIT MEMO WITHOUT MEMO LINES: SET UP THE TRANSCATION TYPE OF DEBIT MEMO. ENTER THE TRANSACTION TYPE AS DEBIT MEMO. FINALLY WE CROSS REFERENCE A TRANSACTION TO DEBIT MEMO IS LINKED.

NAVIGATION: Setup; transaction; transaction type DEBIT MEMO WITH CHARGES Setup; transactions; memo lines. Standard memo lines Operating unit: vision operations Name: PR charges memo line Description: PR charges memo line Type: charges Active date: 1 Jan -2011. Click save and close.

Attach this memo line by creating a transaction in the transaction window and attach this memo line charges in the description of the line item window.
NUM 1 ITEM DESCRIPTION PR CHARGES MEMO LINE UOM QUANTITY 1 UNIT PRICE 10000

Click save and close. In more tabs attach another transaction in the cross reference and complete the transaction by clicking the complete button.
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Click details button to view the balances in detail. 2) Credit memo: A credit memo is used to reduce the charges which are related to previously invoice sale. A credit memo decreases the account balance by the credit memo amount. Setup the transaction type. Enter a credit memo. Complete the transaction. Query the transaction Apply either the % or amount. Apply the whole as credit memo. Split term method FIFO LIFO PRORATE Setup the transaction type: PR CREDIT MEMO As we create the debit memo before, similarly credit memo with creative sign: negative (to reduce the customer balance). Enter a transaction for the class credit memo. Select the source: transaction source PR source Select the class as credit memo & type as PR credit memo. Give the date & GL date & currency. Select the customer (PR customer), so that the ship to and bill to details get filled up. Click the line details to give the negative amount.

NUM

ITEM DESCRIPTION FESTIVE OFFER

QUANTITY

UNIT PRICE

AMOUNT

-500.00

Click save & close the line window. Complete the transaction by clicking the complete window. Click details to view the details of the amount and we can see the negative amount to indicate the reduction amount in customer balance.

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ANOTHER METHOD FOR CREDIT MEMO: Retrieve the existing transaction with class as invoice and immediate payment term and balance due is 10,000. In order to reduce the transaction balance Go to menu actions credit

It will go to the credit transaction window. Credit transaction (vision operation: USD) PR, customer new. Credited transaction NUMBER 2975 1021 SOURCE PR SOURCE

CREDIT MEMO Batch: none Source PR source NUMBER batch name date: 1-nov -2011 1052 complete transaction

Reference type: PR credit memo Reason GL date: 1-nov-2011 Currency: USD TRANSACTION AMOUNT MORE rule method: split term method

Transaction amount tab Credit memo


LINE TAX FREIGHT % 3.8464 AMOUNT -2000

credit transaction
ORIGINAL 52000 BALANCE DUE 50,000

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TOTAL 3.8462 <2000.0> 52000 50,000

COMPLETE

CREDIT BALANCE

CREDIT LINES

We can either specify the percentage or ve amount. If we specify the ve amount, it will automatically calculate the %. Click complete button to complete the transaction. It automatically generates the transaction number 1052. Close the window. Click on the refresh button in the 1021 invoice to see the reduction in the balance due amount. Click details to view the details of the amount. Credit balance: Another way to reduce the entire amount of the transaction is by clicking the credit balance. It displays the message box. APP-AR-11641 The balance amount of the transaction has been credited. Please save your changes & complete the credit memo. OK Click ok & save. We can see the following transaction amount

% LINE TAX FREIGHT 100.000 100.000

AMOUNT -10000.00 0.00 0.00

ORIGINAL 10000.00 0.00

BALANCE DUE 0.00 0.00 0.00

TOTAL

100.000

-10000.00

10000.00

0.00

WE CAN SEE THE BALANCE DUE REDUCED TO ZERO. Credit lines button: Another way to reduce the amount is by clicking CREDIT LINES. Button on the credit transaction window.

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N U M ITEM DESCRIPT ION U O M QUANTI TY UNI T PR ICE A TAX CODE M O U N T

Commitments / Deposit: Deposit is an advance from customer against supply & goods. The customer agrees to deposit an amount on the ordering of goods. Setup the transaction type of class deposit Enter the header level details of transaction of class deposit. Enter commitment details. Complete the deposit transaction. Enter the regular transaction Attach the commitment to the transaction. Complete the transaction. Navigation; Transaction; Transaction Type

Operating unit. Vision OPERATION Name. PR Deposit Description PR Deposit Class. Deposit open receivable Printing Option Print Transaction Status Open Allow freight Creation Sign. Positive Sign Application Rule Set Invoice Type.PR Invoice Start Date 1 Jan 2011

post to GL

Tax Calculation Natural Application only Allow over application Credit memo Type End date

Allocation Basis Lines only Receivable Account Offset Account.PR-110-1210-0000-000 GL Account Description PR-110-8300-0000-000

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Select the class as Deposit and Uncheck the allow freight and tax calculation o Click save and close. If Line, Tax and Freight is also selected from the Allocation basis, then also Allow freight and Tax calculation is disabled, we cant select it. Now enter the transaction in the transaction window. Select the transaction source, class deposit Type, ship to Name. Give the GL date, Date, Currency. Give the Line Details in the Line window by clicking the Line details button. If the class->Deposit is selected, a commitment Tab is displayed. In the commitment Tab, Give the follow details or amount and date. Commitment Tab. Effective date 10-nov-2011 Amount.5000.00 Item. Memo line Description Advance Payment Transaction The invoice Number 1034 is entered on 10-Nov-2011 or Date is 10-Nov-2011. Click save and close. See, you have entered a transaction with deposit as class but now enter the transaction with class as invoice and Line amount as 20,000. Now attach the Deposit Transaction Number 1034 to the Commitment field in the main window. Commitment->1034 Click save and complete. On completing the transaction, we can see the balance amount as 15000. Click details button to view the details. Commitment Guarantee: A guarantee is a documentation of a Promise made by the customer to obtain the goods from the organization. In this case, no money is received from the customer. Setup the transaction type of class guarantee. Enter the header level details of transaction of class guarantee Enter the commitment details Complete the guarantee details Enter a regular transaction

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Attach the commitment to the transaction. Complete the transaction. Setup the transaction type of class guarantee Create a transaction type PR guarantee with class guarantee and give remaining values as given for the PR debit memo. Enter the transaction type of class guarantee in the transaction window. Select the transaction source, class as guarantee, type as PR guarantee, ship to name as PR customer. Give date (1 nov 2011) ,GL date, currency & payment as immediate. Give commitment amount and date in the commitment tab as 1 nov 2011 &5,000.0 Save and complete the transaction. Now enter another transaction of class->invoice, type->PR invoice and balance due for the particular transaction is 20000. Now attach the guarantee transaction number (1035) in the commitment field of the regular invoice transaction & complete the transaction. Now still we can see the balance due amount as20, 000 even after applying guarantee. so, guarantee is nothing but a documentation of Promise made by the customer to obtain goods from organization. Click save & complete the transaction. Click the details button to view the details of transaction. Here we can see a new field. Applied to commitment 5,000 will be displayed. Consolidated billing invoice: One can print a single monthly bill, which includes all customer transaction for a particular period. In this case, we will go for a consolidated billing invoice. There is no need separate invoice foe each transaction. Prerequisite for consolidated billing invoice. Enable show billing in system option -> Trans & customer tab. Attach the Proximal payment term in the customer Profile class. Enable consolidation billing formats in customer Profile class -> save the class. Enter a transaction with Proxima payment term. Enter more transaction by using action-> copy to from the menu bar. Or Run the Program Print draft consolidated billing invoice. After selecting the entire Prerequisite enter the regular invoice transaction with payment term as Proxima payment and give the line details and complete the transaction.

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Select action->copy to from the menu bar, it displays the copy transaction window. OR Transaction -> copy transaction & give Trans number. Copy transaction (vision operation) Model transaction: Source PR source Trans number: 1036 Currency USD reference: Bill to PR customer number: 4090 Term: PR Proximal type: PR invoice Date: 1-nov-2011 transaction amount: 13440.00 Due date: 20-nov-2011 GL date: 1-nov-2011 ------------------------------------------Schedule-------------------------------------------Rule days number of times: 5 Number of days: 1 1 st transaction date: 1-nov-2011 First GL date: 1-nov-2011 request ID: 2764851 New transaction discount number
TRANSACTION NUMBER 1037 1038 1039 1040 1041 TRANS DATE 1 NOV 2011 2 NOV 2011 3 NOV 2011 4 NOV 07 5 NOV 07 GL DATE 1 NOV 07 2 NOV 07 3 NOV 07 4 NOV 07 5 NOV 07 DUE DATE 20 NOV 07 20 NOV 07 20 NOV 2011 20 NOV 2011 20 NOV 2011 AMO UNT 13440 13440 13440 13440 13440

o On saving, it will generate the 5 new transaction number generated having different transaction date, since the number of days is 1, and also it creates a new request ID. Now, run the Program->consolidated billing invoice. Click Print document-> consolidated billing invoice. It displays a new window. Select a single request and click ok. This allows submitting an individual request. It displays the Print consolidated billing invoice window. Print consolidated billing invoice. Run this request. Name:Print draft consolidated billing invoice: On selecting this, it will create new window-parameter Parameters Customer 4090 PR customer Bill of date 9684 PR customer
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Cut of date 15 Nov 2011 Last day of month no Payment term: PR Proximal Currency: USD Type->detailed consolidated billing invoice (summary also available) Pre-Printed stationery: no OK CANCEL CLEAR HELP Click OK & submit the request. (1) A request ID is generated .check whether request is completed by going on the (2) View->request->find. ii) Click view output button to view the output. We can see consolidated report for various dates. iii) Close the report as well as request. Transaction batches: One can enter many transactions in a single batch. One can view the differences between the control and actual totals as one enters the transaction. This will alert the data entry operator about the data entry error or missing or lost transaction or duplicate entry. Enter a transaction batch. Enter the count. Enter the amount. Enter individual transaction. View the transaction summary. Navigation: transaction: batches. Transaction batches: PR Tran bat Source: PR sources Name: 100 ->transaction batch number generated on sources. Batch date: 1 nov-2011 GLdate: 1- nov-2011 Currency: USD Status: new
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Comment Partially purged Totals Count Control Actual Difference Transaction summary There are 4 statuses i) New-> ii) Open-> iii) Closed-> iv) Out of balance-> transaction 3 3 amount 300000.00 300000.00

If control total is 3 & amount 300000 then enter 3 transactions by clicking. TRANSACTION button & the total amount of 3 transaction should be 300000.00 if it is more than 300000 on then we can change the amount. If 1 transaction is entered, then it transaction batch window, it shows the difference as 2. Control Actual Difference 3 1 2 300000 100000 200000

Now change the status manually from new to out of balance, till the difference is zero. After entering 3 transaction & the amount equal to 300000. Control Actual Difference 3 1 0 300000 100000 0

When we change the status to OPEN the actual count & the amount is equal to the control count & amount.

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We change the status to CLOSED when the actual count & the amount of the transaction. Equals control count & amount & each transaction in the batch is closed by applying receipt against it. Click TRANSACTION SUMMARY to view the individual transaction. Invoice with rule-accounting rules Accounting rules determines the total revenue record in each accounting period. 3 accounting rules 1. Fixed duration 2. Variable duration 3. Deferred duration

Fixed duration: Accounting rule & type is of fixed duration. AR will prorate revenue recognition evenly over a Predefined period of time.

Variable duration: Accounting rule & type can be of variable duration. One has to specify the number of period in which one wants to recognize revenue for which one assigns this rule of accounting.

Deferred duration or variable deferred: One can use the deferred accounting rule by enabling the deferred revenue check box in the INVOICING & ACCOUNTING RULES. Window when one defines this rule. One can use this deferred accounting rule to recognize the revenue by different %s over a period of time by using action wizard. One can use deferred accounting rule only for invoices that assign the bill in advance invoicing rule. FIXED NAME TYPE PERIOD NO .OF PERIOD VARIABLE NAME PERIOD
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DEFERRED NAME PERIOD TYPE ENABLE DEFERRED REVENUE

NAVIGATION: Setup: transaction: accounting rules. Invoicing & accounting rules (AR vision operation (USA)) Name: PR fixed acct rule description: PR fixed account rule Type: accounting fixed duration active Period month No. of periods: 5 Deferred revenue Schedule period 1 2 3 4 5 Total

Percent date 20 20 20 20 20 100

Click on the schedule period to display the period automatically. Click save & close. Variable duration accounting rule: Name: PR variable acct rule description: PR variable account rule Type: accounting variable duration active Period month no. of periods: 1 Deferred revenue Period % 1 20 Total 20 Save the accounting rule; The number of periods will be sat to 1 automatically. date

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Variable deferred accounting rule: Name: PR def variable acct rule description: PR deferred account rule Type: accounting variable duration active Period month no. of periods: 1 Deferred revenue Period % 1 100 Total 100 Save the accounting rule; The number of periods will be set to 1 automatically. We need this rule when we enter transaction with invoicing new rules. Invoicing rule-> in arrears fixed These rules define when to recover the receivables, expand more than 1 accounting period. date

Invoice rule-in arrear with accounting rule fixed 1 has to use this rule to recognize the receivable at the end of the revenue recognition schedule. Enter a transaction: Attach the invoicing rule-in arrears at the header level Attach the accounting rule fixed duration at the line level complete the transaction. Run the revenue recognition Program. Finally view the journal entries. Now transaction: transaction. Select the source, class as invoice, type as PR invoice, customer. Give the date, GLdate, currency. Select the invoicing rule in arrears Invoicing rule in arrears Rules tab is also added in the line window. Click on the LINE ITEM button. Line window->main tab. Num item description uom quantity unit Price 1 PR item 2 wheeler each 100 100 Amount location
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10,000.00 exempt.
Num 1 Item description PR item 2 wheeler Accounting PR fixed acct rule

Click RULES TAB.


Duration 5 1 st date 1-nov-2011

Click saves & close this transaction while saving gets a note saying APP-AR-11426------transaction date has been set to 1-mar-2011 OK Click OK & also it says. APP-AR-11425------GL date has been set to 1-mar-2011 OK Click OK & close the lines window & complete the transaction. Balance due is 10,000. In order to view the accounting entries, run revenue recognition Program. Note: transaction num 1057. Run the Program. Control > accounting > revenue recognition Enable single request > radio button & click OK. RUN this request----Name: revenue recognition on selecting this it will ask for parameters window Parameter Print format DETAIL Commit work YES OK CANCEL CLEAR HELP. Click OK & SUBMIT. Once the request is completed, click view output.
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Go to transaction num 1057 in the query mode of transaction window & execute by Pressing ctrl+F11 key. Click view > accounting to view the journal entries
Line type receivable REVENUE REVENUE REVENUE REVENUE ROUNDING DISTRIBUTION TAX UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE Account PR-000-1210-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-7827-0000-000 PR-000-2520-0000-000 PR-000-1232-000-000 PR-000-1232-000-000 PR-000-1232-000-000 PR-000-1232-000-000 PR-000-1232-000-000 PR-000-1232-000-000 PR-000-1232-000-000 Debit 10000 Credit 2000 2000 2000 2000 0.00 0.00 2000 2000 2000 2000 2000 2000 10,000

INVOICE RULE (II) in arrears with accounting rule variable. Invoicing rule-in arrears with accounting rule variable. Enter the transaction -attach the invoicing rule in arrears at the header level. Attach the Accounting rule variable duration at the line level. Complete the transaction. Run the REVENUE RECOGNITION PROGRAM. View the journal entries. Enter the transaction as regular invoice transaction but select invoicing rule as in arrears. Invoice rule: in arrears Click line item button to enter the like item details & accounting rules. Go to rule tab select the accounting rule as accounting:PR VAR ACCT RULE Rule tab
Num 1 Item description Pr item 1 2 wheeler Accounting PR VAR ACCT RULE Duration 5 1 st date 1-NOV-2011

CLICK SAVE. On saving it displays a 2 note as we get while entering Previous invoices [(i.e.) in arrear fixed date invoices] Save & complete the transaction. Run the revenue recognition Program to view the journal entries. Journal entries.

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LINE TYPE RECEIVABLE REVENUE REVENUE REVENUE REVENUE REVENUE ROUNDING DISTRIBUTION TAX UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE ACCOUNT PR-000-1210-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-740-7827-0000-000 PR-000-2520-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 DEBIT 20000 4000 4000 4000 4000 4000 0.00 0.00 4000 4000 4000 4000 4000 20,00 0 CRED IT

INVOICE RULE (III) IN ADVANCE FIXED. INVOICE RULE IN ADVANCE with accounting rule fixed. Enter a transaction Attach the invoice rule in advance at the header level. Attach the accounting rule fixed duration at the line level. Complete the transaction. Run the revenue recognition Program View the journal entries. Enter regular transaction attach the invoicing rule in the transaction window Invoice rule: in advance Payment term: PR IMM TR. GIVE THE Accounting rule in the Accounting tab.
Num 1 Item description Pr item 1 2 wheeler Accounting PR VAR ACCT RULE Duration 5 1 st date 1-NOV-2011

Click save, it displays 2 note click OK for those 2 notes & close the lines window. Run the revenue recognition Program to view the journal entries. Query the transaction 1056 & view the journal entries from the tools menu.

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LINE TYPE ACCOUNT DEBI T CRED IT D E T A I L

RECEIVABLE REVENUE REVENUE REVENUE REVENUE REVENUE ROUNDING DISTRIBUTION TAX UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE UNBILLED RECEIVABLE

PR-000-1210-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-000-9003-0000-000 PR-740-7827-0000-000 PR-000-2520-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000 PR-000-1232-0000-000

2000 0 4000 4000 4000 1 4000 4000 0.00 0.00 4000 4000 1 4000 4000 1 4000 20,00 0 1 1 1 1 1 1 1

1 1 1

11) Invoice rules IV: in advance deferred 1) Invoicing rule-in advance with accounting rule-deferred. 2) Prerequisite: at the system option level. Enter the sales credit Present limit (100) & enable require sales person in sales credit Present limit (100) miscellaneous tab. 3) Enter a transaction Attach the invoicing rule- in advance at the header level. Attach the accounting rule-deferred at the line level. Complete the transaction. 4) Run the revenue recognition Program. 5) Run the revenue accounting Program. Enter the scheduling revenue. Enter the transfer sales credit. 6) View journal entries.
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Enter the transaction with invoicing as in advance. Give the accounting rule in line details window. Rules tab: accounting: PR def VAR rule.
NUM 1 ITEM DESCRIPTION PR ITEM 2 WHEELER ACCOUNTING PR DEF VER RULE DURATION 5 FIRST DATE 01 NOV 2011

Click save & close line window Complete the transaction. Run revenue recognition Program Po control: accounting: revenue recognition: revenue Click revenue recognition & ok. Complete the transaction.

4. View the journal entry by tools - view accounting View the journal entry.
receivable ROUND LINE TAX UNEARNED REVENUE PR-080-1210-0800-000 PR-740-7827-0800-000 PR-000-2520-0000-000 PR-000-2550-0000-000 10000 0.00 0.00 10000 1 1 1

THE REVENUE IS NOT ALLOCATED TO TRANSFER A PERCENTEGE OF UNEARNED REVENUE TO REVENUE IN THE REVENUE ACCOUNTING WINDOW. RUN THE REVENUE ACCOUNTING PROGRAM. Control: Accounting: revenue accounting. Find transaction window is opened. Give the transaction number1059. Transaction no: 1059 Select customer. Click find. It display revenue accounting & sales credit window revenue Accounting & sales credit-PR customer
TRANSACTION In transactions ACTION HISTORY

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NUMBER SOURCE REFERENCES CUSTOMER NAME 1080 PR SOURCE PR CUSTOMER TYPE DATE CURRENCY ACTIONS PR INVOICE 1 NOV-2011 USD REVENUE SCHEDULED UNSCHEDULED

10,000.00

LINE TYPE 1

ITEM DESCRIPTION PR ITEM 1 2 WHEELER

CATEGORY

AMOUNT 10000

SCHEDULED 0.00

UNSCHEDULED 10,000.00

RULE PR DEF VAR RULE LINE DISTRIBUTIN


GL DATE 1 NOV 2011 AMOUNT 10,000 % 100.00

DURATION 2

CLASS UNEARNED REVENUE

ACCOUNT PR-00025500000-000

HERE we can see that the amount is NOT SCHEDULED. To schedule the amount Click action button A window pop us Choose 1 of the following Unscheduled revenue scheduled revenue transfer sales credit add non revenue sales credit record acceptance CANCEL BACK NEXT CHOOSE scheduled revenue & click NEXT button. A window to choose the amount or % of revenue to be displayed. Choose the amount or % of revenue u wish to adjust.
TRANSACTION CURRENCY TOTAL VALUE OF SELECTED LINES ADJUSTABLE REVENUE USD 10,000 10,000

All adjustable revenue (z) % of total value of selected lines(y) Amount Select any 1 radio button & click NEXT button.
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Here we select % & total value of selected lines radio button & click next Another window is displayed. Step 5: Amend the GL date if required & select a reason for the revenue adjustment. GL DATE : 1-NOV-2011 TYPE: EARN REVENUE REASON: REVENUE ADJUSTMENT COMMENT: CANCEL BACK FINISH Select reason & click FINISH button. 4 reasons are there 1. Incorrect sales person 2. Other 3. Revenue adjustment 4. Revenue management engine. An action result window is displayed. Action result
LINE TYPE 1 ITEM DESCRIPTION PR ITEM 1 2 WHEELER RULE PR DEF VAR RULE CATEGORY AMOUNT 10000 SCHEDULED 5000.00 UNSCHEDULED 5000.00

DURATION 5

LINE DISTRIBUTIN
GL DATE 1 NOV 2011 AMOUNT <5000> % 50 CLASS ACCOUNT PR-0009003-0000000 PR-0002550-0000000

1 NOV 2011

5000

50.00

CANCEL

SAVE

Clicks save. On save, we can see the adjusted 50% from unearned revenue to revenue for the month of 1-nov2011.so, I have transfer 50% amount from the unearned revenue to revenue.
GL DATE AMOUNT % CLASS ACCOUNT Action number

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1 NOV-2011 10000.00 100 UNEARNED REVENUE REVENUE PR-00025500000-000 PR-00090030000000 PR-00025500000000

1 NOV 2011

<5000>

50

1265

1 NOV 2011

5000

50.00

UNEARNED REVENUE

1265

Then in revenue accounting & sales credits window ,we can see in the revenue item as
scheduled unscheduled 5000 5000

Similarly do for the remaining 5000 balance unscheduled Choose the scheduled revenue in step 1 & click NEXT. Choose sales credit type if transferring sales credit in step2 do not select at Present click NEXT. Choose which lines to adjust in step 3. Nothing to select. Default select All lines are selected & click NEXT. Choose the amount in step4 All adjustable revenue radio buttons as I selected % before & click NEXT. Choose the GL date as 1 dec-2011 in step5 & click finish. Clicks save. All the amounts are scheduled.
GL DATE 1 NOV2011 1 NOV 2011 1 NOV 2011 1 DEC 2011 1 DEC 2011 AMOUNT 10000.00 <5000> 5000 5000 5000 % 100 50 50.00 50 -50 CLASS UNEARNED REVENUE REVENUE UNEARNED REVENUE REVENUE UNEARNED REVENUE ACCOUNT PR-000-2550-0000000 PR-000-90030000-000 PR-000-25500000-000 PR-000-90030000-000 PR-000-25500000-000 Action number

1265 1265 1266 1266

In the revenue Accounting & sales credit window. We can see revenue
scheduled unscheduled 5000 0

Tool- view Accounting to view the journal entry.


LINE TYPE ACCOUNT D E B I T CREDIT TRAN LINE NUM DETAIL LINE NUM

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RECEIVABLE PR-000-1210-0000-000 1 0 0 0 0 5000 5000 0.00 0.00 5 0 0 0 5 0 0 0 10,000 1 1 1

REVENUE REVENUE ROUNDING DISTRIBUTION TAX UNEARNED REVENUE

PR-000-9003-0000-000 PR-000-9003-0000-000 PR-740-7827-0000-000 PR-000-2520-0000-000 PR-000-2520-0000-000

1 1 1

UNEARNED REVENUE

PR-000-2520-0000-000

UNEARNED REVENUE

PR-000-2520-0000-000

Tax setup (1) Enterprise has to bill the customers with tax amount, collect the sale & then pay to the tax authorities. System options: location based tax. A)navigation: system: system option b) In tax tab we are going to use, Tax method-sales tax Close the system option: as there is Predefined location based tax with state country & city with rates also. 2) Setup > tax codes Tax code for which the tax calculation base is before discount. Tax code for which the tax calculation base is after discount. Tax code is based on quantity. Adhoc tax code. Tax inclusive tax code. Prior tax code. Entering the transaction location based tax Enter the transaction in the application window with source, class as invoice, customer, .give the date, GL date.
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Click LINE ITEM button give the item details such as quality, unit Price & amount field is filled. Select the tax code as LOCATION. Tax code = location(location, exempt) Select tax button on the button on click this tax button, tax is calculated at the rate of 12%.as we defined rates for state as 5, country as 5, city as 2, tax will be calculated for the particular transaction. Close the tax& line window & complete the transaction. We see the calculation of tax follows Balance due
Line Tax Freight Charges Total 10000 1250 0.00 0.00 11250

ii) How to setup the tax code Tax code for which the tax calculation base is before discount. Ex: tax is calculated before deducting the discount.
SNO 1 ITEM PR ITEM QTY 10 RATE 1000 AMOUNT(USD) 10000.00

SUBTOTAL = 0.00 TAX (AMOUNTTAXCODE/100) 10000PR BEFORE DIS /100) 100005/100=1000.00 IF PAYMENT is made within 15 days we get 5%discount as we attach PR 30 DAYS D as payment term-PR 30 days with discount. Here tax is calculated before deducting the discount. Payment term should be some payment term for which discount have been defined. Define the tax code Setup > tax codes Tax codes & rates window gets open. Rate tab
Tax code PR before DIS Tax type SALES TAX Taxable basis BEFORE DISCOUNT Tax rate 10 Tax amount Sign credit

EFFECTIVE TAB
Tax code PR before dis From 01-jan-2011 To Enabled

Clicks save to save the particular tax code & close.


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There are 5 taxable bases 1. Before discount 2. After discount 3. Quantity 4. PL/SQL 5. Prior tax Enter this transaction with this particular tax code Select source, class as invoice, type as PR invoice, customer. Give date & GL date. Click line item button & give line details. Now, select tax code as PR before discount tax codePR before discount & click tax button to view calculation. Click save & close & complete the transaction. c) Tax code for which the tax calculation base is after discount. Receipt setup:1. Receipt setup, cheques, bank transfers and all other forms of receipt payment received from a customer is called receipt. 2. Primary function of oracle receivable is to receive payments against the open invoices. The payment received has to be applied against the invoices. Setup the bank: Enter the bank details Enter the account code under the receivable options.

Setup the bank first: One can use the same bank details used in the payables or one can define your bank and enter the bank details namely the name of bank, branch, and account number. One has to enter the account codes under the receivable options. Application window to define the bank: Navigation: Setup; Receipts; Banks. It displays the bank window to enter the details of the bank. Set up the receipt class:The definition of receipt class determines the Processing step for manual or automatic receipts. Attach the relevant method for the receipt class. Enter the payment method. Attach the bank account details.
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Updating of GL accounts Finally attach the formatting Programs. Save the receipt class.

Define the receipt class in application window: Navigation: Setup; Receipts; Receipt classes. It goes to the receipt class window.

Receipt class (vision operations) ---Receipt class----------------------------------------------------------------Name : Creation method: Remittance method: Clearance method:

PR Receipt class manual Manual Standard and Factoring By automatic clearing


Printed name:

Notes receivables. Require confirmation.

----Payment method-----------------------------------------------------------Name : Effective dates: Manual

PR Payment method 1-Jan-2011


Automatic Bills receivable

PR payment method
Bills receivable remittance

Manual tab:

Debit memo inherit receipt numbers. Bank Accounts

Name the receipt class in the name field. Select any one of the following method. Automatic Bills receivable Bills receivable remittance Manual No remittance

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Select manual-> if it is manual, one has to enter it manually in receipt or quick cash window or import using auto lock box. Select one of the remittance method and clearance method. Select remittance method as standard and factoring from the following. Standard Factoring Standard and factoring No remittance. Select the clearance method as By automatic clearing from the following: Directly By automatic clearing By matching -> cash management is needed Specify the payment method to identify the nature of payments such as cash, cheque, or credit card. Enable the check box debit memos inherit receipt numbers Click bank accounts button. It displays the remittance bank details.

Remittance banks (vision operation) PR receipt class format, PR payment method manual. Bank name: PR Main Bank Branch name: PR BANK BRANCH

Account name: PR CURRENT Currency: USD


ACCOUNT Minimum receipt amt: Clearing days: Effective dates: -01-Jan-2011 Override bank Primary [ ] GL accounts Bills receivables Formatting Program. Risk elimination days:

Cash: Receipt: Confirmation:

Unapplied receipt: Unidentified receipt: On account receipt:

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Remittance: Factoring: Short term debt: Bank charges: Unearned discounts: Earned discounts:

Select the bank DS main bank; the branch name will be displayed. Select the account name, ass the account details will be displayed. Formatting Program tab -> attach the format.
Remittance transmission: Remittance Print: Factoring transmission: Factoring Print French bills receivable remittance Print bank remittances Program French bills receivable remittance Print bank remittance Program.

Click save and close the window. Receipts -> standard: Receipt -> enter and confirm. Enter the receipt details and view the accounting lines Enter the customer details and view the accounting lines. Apply the receipt to a transaction and view the accounting lines.

Receipts -> Remittance: Create the remittance Attach the remittance method as standard , receipt class, payment method. Attach the bank details and select the receipt / receipt batch. Approve, format the remittance Query the receipt to check the status as remitted. View the accounting line.

Receipts -> clearance: Automatic clearing for receipts Query the receipt and view the accounting lines. Navigation for entering a receipt: Receipts -> Receipts.
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Receipts > factoring Enter the Enter receipt date date. Remit the receipt:

Payment Receipt number Receipt amt Receipt type Status Receipt date GL date

PR payment method PR RS 006 USD Standard 01 Nov 2011 01 Nov 2011

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remittance: receipt: the receipt with and maturity

Maturity date

20 Nov 2011

Enter the remittance date. Attach the remittance method as factoring. Clear the receipt: Run the automatic clearing for receipt on clearance date. Eliminate bank risk as NO. Run the automatic clearing for receipt on maturity date. Eliminate bank risk as YES. Factoring will enable one to remit the receipt to ones bank. So that the bank lend money against the receipt prior to the maturity date. Enter the receipt with receipt date and maturity date. Apply the receipt to the transaction. Enter a receipt in Receipts > receipts.

Select the payment method: PR payment method. Give the amount receipt date, GL date and maturity date ( 20 days or 10 day from the receipt date). Clicks save and initially the status is confirmed. Select the PR customer for the customer list of values. Click save and search and apply button to select the invoice. A search and apply (vision operations) PR RS 006 window is displayed. Click Preview button in this screen and a window with lot of invoice created will be displayed. Select the invoice, apply date, amount applied and save it. Go to the receipts; remittance to select the receipts. In the remittance window, give the batch date, GL date, currency and bank, click account number to display the account number. Select the remittance method: factoring. Batch date: 01 Nov 2011 Select a bank and bank detail gets filled. Click manual create button at the bottom. Go to view-> find all. It lists all the receipts for remitting.
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Select the receipts that needs to be remitted i.e., PR RS 006. Give the bank charges as 100 charged by the bank for this particular receipt. Since I am going to mature the receipt before maturity date. First approve the receipt by clicking approve button and click yes in the decision message box. Note down the request id check whether the request is completed. Click view output details. It says the receipts have remitted. Close this request and output window. Note down the batch number and Requery the batch number. The Process status shows completed approval in the remittance window. Process status: Completed approval. Now we need to format this receipt. Click format button. It display a message box with message submit one batch for format. Click yes. Note down the request number and its completion. Now the Process status shows completed format and close the remittance window. Query the receipt number and we can see the status as remitted. Status: Remitted. Clearing the receipt is the next step First we will run the automatic clearing for receipt on clearance date and bank risk parameter as no. the status of the receipt is cleared. Second we will the automatic clearing for receipt Program on maturity date and bank risk parameter as yes the status of the receipt is risk eliminated. Lets see the clearing of the receipt with clearance date. Run the clear / risk eliminate Program. Receipt : clear / risk eliminate Submit a single request. Select the Program Automatic clearing for receipt in the name field of the clear / risk eliminate window and give the parameter eliminated bank risk as no. Give the clear date and GL date as Nov 2011, and receipt number and customer name. Submit this request. Note down the request id and check its status in view request find menu. View the output by clicking the view output button. Close this window and query the receipt number in the receipt work bench and the status as cleared form remitted in the receipt window. Status: cleared. Again, run the clear / risk eliminated Program on the maturity date and enter single receipt radio button and click ok.

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Select Automatic clearing for receipt Program and select eliminate bank risk parameter as yes. Give the clearing date and GL date as 20-nov-2011. Select receipt number, customer name from the list of values. Submit the request by clicking ok and check its completed status. On view the output, I can risk eliminated by clicking the view output button. Query the receipt number in the receipt window and see the status as Risk eliminated. Status: Risk eliminated. 5) Receipts > Adjustments: PR RS 007

One can create adjustments to increase or decrease the balance due for a invoice, debit memo, chargeback or commitment. Prerequisites: Define a receivable activity. Enter the approval limit. Set the approval limits: (but it is already defined) Navigation: Setup; transaction; approval limits.
User name Oflinux1 Oflinux1 Document type Adjustment Receipts write off Reason Currency From amount <1000> 0.00 To amount 0.00 3000.00 Primary

USD USD

Define a receivable activity. Setup > receipts > receivable activities. Receivable activities (receivables vision operation (USA))
Operating unit Name Description Type Vision operations PR receivable activity PR receivable activity Adjustments.

Active

Adjustments:

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Adjustment, bank error, earned discount, endorsement, finance charge, miscellaneous, cash , short term debt, unearned discount, receipt write off, claim investigation , Prepayment etc.. Accounting
GL account source Tax code source Activity GL account Distribution set GL account description Activity GL account None PR-000-5230-0000-000 Karthikraja co-no department- standard adjustmentno sub account- no Product

Click save and close. I) Enter a receipt. Apply to a transaction Click adjustments Attach the receivable activity Query the transaction. II) Enter the new receipt by Selecting payment method: PR payment method. Give the receipt number and receipt amount. Give the receipt date, GL date, maturity date as 1 Nov 2011 Select customer PR customer from list of values Click apply button. Select the transaction from the list in the apply to field.

For eg: Transaction amount = 10000 Receipt amount applied = 9800 --------Balance due = 200 Apply date: 4 Nov 2011. Click adjustment button to adjust this balance 200. Adjustment window popup. Adjustments (vision operations) PR customer 1038, 1 Installment
Original Balance Line 10000 200 Tax 0.00 0.00 Freight 0.00 0.00 Charges 0.00 Total 10000 200

Adjustment 0.00 Pending adjustments: 0.00 ----------------- Adjustments -----------------------------------------ORACLE FINANCIALS

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Main Account,IDS comments

Number 3665

Activity name PR receivable activity

Type invoice Invoice

Amount 200

GL date 1 Nov 2011

Adjustment date 1 Nov 2011

6) Auto adjustments: One can run auto adjustments to automatically run auto adjustments for the remaining balances of all open invoices, debit memos, credit memos and charge backs. Prerequisite: Define a receivable activity. Since, we have already defined a receivable activity for adjustment we could use it. Create auto adjustments. i) Generate report only: We will generate report to find the invoices and the amount to be generated to create adjustments Ii) Create adjustments. Query the transaction to see the amount adjusted. Navigation: Control > Adjustments > create auto adjustments. Create auto adjustments (vision operation) ---- Selection----------------------------------Invoice currency Remaining amount Remaining Due date Transaction type Customer name Customer number Transaction USD -1000 to 1000 % 1 Nov 2011 to 10 Nov 2011 PR customer

Parameter:
Activity Type GL date Reason Request id PR receivable activity Invoice adjustment 1 Nov 2011

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Option Generate report only. Create adjustment.

Adjust related invoices. Type: Charge adjustment, freight adjustment Invoice adjustment, line adjustment Tax adjustment.

Submit

First click generate report only to create the report and see the adjustments to be adjusted. Click submits and the request id is generated. Verify whether it is completed. Note: please create transaction and receipts with balance due less than 1000 to verify the adjustments working fine or not. Once it generate only job is over. Verify the report and submit another report by selecting create adjustment radio button and click submit. Verify the job request is completed and view click output to see the output details. Note down invoice number and go back to transaction and query the invoice to check whether the balance due is got adjusted. Click details button to see original and adjusted balances. Receipt source:One can use the receipt source to number either automatic or manual receipt batch. Navigation:Setup > receipt > receipt sources. Receipts write off: In oracle receivable, one can write if and apply the receipt amount.
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Name of the receipt source. Attach the receipt class, payment method and bank a/c. Enter the type of batch numbering and the last number entered. Enter the effective dates.

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Prerequisite: Define a receivable activity. Enter the approval limit for receipt write off. We have already defined the receivable activity for adjustment. Similarly create the PR receipt write off by selecting the receipt write-off type and other details are same and save and close the activity window. Approval limit also have been defined already for up to 3000. Enter a receipt: Apply to a transaction Select receipt write-off for excess unapplied amount to write off. Select on account of receipt write off for excess amount to be in on account. Enter the receipt with payment method as PR payment method; receipt number PR RS 0021, receipt amount. 11500 and receipt date, GL date, Maturity date 25 Nov 2011. Select the customer: PR customer and Press enter and save the receipt and click apply button. Select the transaction by clicking on the list of values in the apply to field. Transaction number is 1103 having balance due of 11000. Change the apply date 25 Nov 2011, amount applied as 10000 and click save. There are 500 which is an unapplied amount. Now we need to write off the 500. Select receipts write off. AR STEPS: Based on purchase order issued by customer, receipt we recd.. Generate sale order. Invoice is raised and payment made. Flexfield -> sales tax location field (M) Territory flexfield (O). System option accounting method. Tax-> sales tax=defined in state, country, city flexfield and VAT= no validation Specify the location tags; Hierarchy of tax. Define the payment terms. Define the collectors, customer Profile class.=== for creating customers. Define the customer === give the customer Profile and collectors here and payment terms. Define tax location rates for state, country and city.

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For invoice, we need transaction type. In that give receivable, revenue, unbilled receivable, tax and GL A/C need to be specified. Define transaction source. After defining Apply to field and apply date 25 Nov 2011 and amount applied is 500 and give the activity as PR receipt write off and click save and closes the application window. Store the excess amount in the on account. 1-4 steps are same. Instead of writing off the amount lying as unapplied we can keep the excess amount in the on account which can be used for some other transaction. Select on account in the apply to field for the excess 500 and save the record. So now the excess amount is move to on account. If we want to use this on account amount to some other amount, Give the amount applied as zero the amount goes to unapplied status. Then we can use this amount for some other transaction. Automatic receipt write off: One can run automatic receipt write off Program to write off multiple receipts advanced individual receipts returns. The concurrent Program creates a write off and closes receipts. Prerequisite: Define a receivable activity for receipts write off. Activity GL account: PR-000-1345-0000-000 -> Receipt write off. Create automatic receipt write off:Generate report only: Generate report will written off receipts which are to be write off. Create adjustments.

Enter receipts with a difference of 0 to 3000 amount that is more than the original transaction. In order to create receipt writes off. Navigation: control > write off receipts A window receipt writes off is displayed. Create receipt write off: Selection:
Receipt currency Unapplied amount USD 3000

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Payment method Customer name Customer no PR payment method PR customer 4090

Parameters:
Activity Apply date GL date PR receipt write off 25 Nov 2011 25 Nov 2011

Option: Generate report only. Report writes off.

Submit
Generate report only so submit the report by clicking submit to list the written off receipts which needs to be adjusted. Now give the same details again click create write off receipts radio button. Request id is generated click view request find to check the completion of report. Requery the query and see the write off is created. Application rule set:The application rule set determines the order in which receivable reduces the balance due for the transaction like line, freight, tax and finance charges. Prerequisite: Create an application rule set. Attach the application rule set to the transaction type. Enter a receipt Apply the receipt against the transaction Query the transaction

Creation of application rule set: Navigation: setup > receipts > application rule. Give a name for application rule set: PR application rule set. Receivable will automatically assign the over application rules by default this rule will be the last in the sequence for any application rule set. One has to enter the rule detail for the application rule. The rule details section describes the type and tax treatment for this rule. Save and enter the application rule detail type: line, freight, charges. Tax treatment = Prorate, before, after, none.
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Application rule sets:


Application rule set Description Freeze. PR application rule set PR application rule set.

Application rule sets: Sequence 1. 2. 3. 4. Rule Line Freight Charges

Rules details Rounding collection Type Line Freight Charges Tax treatment Before None None

Over application rule

A) The system will Proportionality reduces the net amount for the line and associated tax amount when I select Prorate. B) The system will first reduces the tax amount and then apply the remaining amount to line when I select the before option. C) When I select after, it first reduces the line amount then it applies the remaining amount to tax. 6) Click save and after saving enable the freeze check box. 7) A decision box will be displayed.
Pending data changes will be saved. Save changes and continue? YES NO

Click on yes button.

8) Close application rule set.

Attach the application rule set to the transaction type: Query the transaction invoice PR invoice in the transaction window and attach the PR application rule set in the application rule set field. Application rule set: PR application rule set. After attaching rule set, click save and close the window.

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Enter the receipt by selecting payment method; enter the receipt number, amount, receipt type (standard), receipt date, GL date, and maturity date. Select the customer and save this window. A) click apply button to select a transaction from the list of values having balance 11100 with receipt entered amount 10000. So balance due is 1100. B) Save and close this application and receipt window. 4) Query the transaction number 1146 in the transaction window by going into transaction > transaction. 5) execute the query by Pressing ctrl +F11. The transaction is retrieved and we can see balance due of 1100. Where line 600 and freight 500 so total 1100. 6) First tax has been applied and the remaining amount is applied to line amount. 7) The application is based on the application rule set defined. 8) Close the balance and transaction window. Receipt reversal: One can reverse the receipt with customer stops payments or receipts come from an account with insufficient funds. Standard receipts reversal: Query the receipts Reverse the receipts. Debit memo reversal: Query the receipts. Enter a debit memo reversal. Query at the transaction work bench. Category:o o o o Non sufficient fund Reverse payment Stop payment. Standard receipt reversal:

One can create a standard reversal for a receipt and receivable automatically creates reversal journal entry for ones GL and reopens all debits and credits which originally closed by the receipts. Query the receipts number in the receipts window. (PRRS 001) To reverse the receipt, click reverse button on the receipt window. A reverse window will be displayed.

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Reverse:
Date 18 Nov 2011 GL date 20 Nov 2011

Category Reason Comment

Non-sufficient funds Non-sufficient funds

Non-sufficient funds Insufficient funds

Debit memo reversal. Account type Document num:

Reverse
Status : Reversed Journal entry:
Line num Cash Cash Confirmation Confirmation Confirmation Receivable Receivable Receivable Receivable Remittance Remittance Remittance Unapplied Unapplied Unapplied Unapplied Unapplied Unapplied Unidentified Unidentified Account PR-000-1110-0000000 1110 1240 1240 1240 1210 1210 1210 1210 1245 1245 1245 1240 1240 1240 1240 1240 1240 2990 2990 Dr

Cancel

Click reverse button and we can see the status in the receipt window as Reversed.

Cr 10000

Tran. Line

10000 0.00 10000 10000 10000 10000 10000 10000 0.00 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

Debit memo reversal: When one creates debit memo reversal, receivable reverses the receipt but does not update any other receipt activity that is associated with the original receipt. Query a receipt that has been applied to a transaction.

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Here we take PRRS004 where entire amount is paid Reverse the receipt. Even though the receipt has been reversed, the status of the receipt remains the same. It creates a debit memo transaction like newly created transaction the amount needs to be paid. Reverse window:
Date Category Reason Comment 20 Nov 2011 Reverse payment Payment reversal GL date 20 Nov 2011 Reverse payment Payment was reversed.

Debit memo reversal.


Account type Debit memo reversal. Document num:

Reverse

Cancel

Click reverse button to reverse transaction. Take the receipt number and it will be the newly created transaction number PR RS 004. Query the transaction in transaction window.
Source Number Class Type Debit memo reversal PRRS004 Debit memo Debit memo reversal.

Click line details. We will see a new line created with description Debit memo for reversal of payment of PR RS 004. Miscellaneous receipts: These are receipts which are non-operational income such as income earned from investment, interest, refund and towards sale of stock. Prerequisite: Set up a distribution set Set up a receivable activity Miscellaneous receipt Enter a miscellaneous receipt. I) a) set up a distribution set:
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Navigation: Setup > receipts > distribution sets. It displays the distribution set window to enter the distribution. Give a name for distribution set. Give the distribution set lines for 100%.

b) Set up a receivable activity: Setup > receipts > receivable activity. Receivable activity
Operating unit Name Description Type Active. GL account source Tax code source Activity GL account Distributions set GL account description Asset tax code Liability tax code Click save and close the receivable activity window. Distribution set: Operating unit Name Description Active. Distribution set lines: % 30 40 40 Account PR-110-4150-0000-000 PR-120-4150-0000-000 PR-130-4150-0000-000 Description Miscellaneous revenue for dept 110 Miscellaneous revenue for dept 120 Miscellaneous revenue for dept 130 Vision operation PR MIS DIS set PR miscellaneous Distribution set Vision operation PR MIS REC ACT PR miscellaneous receivable activity Miscellaneous cash

Distribution set None PR MIS DIS set

Total 100% Clicks save and close the distribution set. Reference Post mark date
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1. Customer 2. Customer number 3. Location 4. Taxpayer ID 5. Customer bank 6. Name 7. Account 8. Payment server id 9. Approval code 10. Remittance bank 11. Name 12. Branch Account

Reverse

Receipt history

Search and apply

Distribution

Click distribution window. It displays the distribution window to enter details. Receipt
Payment method Receipt number Receipt amount Receipt type Status Receipt date GL date Maturity date Functional amount PR payment method PR RS MIS0001 USD 10000 Miscellaneous Confirmed 1 Nov 2011 1 Nov 2011 10000

Enter the receipt: Enter the receipts with receipt type as miscellaneous. Receipt type =Miscellaneous Enter the payment method, receipt number, receipt amount, receipt date, GL date.

Main

More

Main tab: Paid by: (name)


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Purpose: Activity: PR MIS REC ACT Distribution set: PR MIS DIS SET Tax code: Tax amount: Tax rate %: Description: Chargeback: Setup a transaction type Enter a receipt Enter the amount as zero. Select a transaction Enter the chargeback details. Query at the transaction workbench.

Set up a transaction type:One has to use chargeback to create a new debit item for ones customer in the place of existing debit items which is to be closed. Set up > transaction > transaction type Receipt batches -> Manual & quick: Auto cash rule set: Create an auto cash rule set. Attach the auto cash rule set to the Profile class. Query the customer to check whether the Profile class got updated. Select manual quick receipt batch. Enter the quick cash details Post the quick cash. Auto cash rule set:

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Receivable once post the quick cash Program that uses the auto cash rule set to determine how to attach the receipt against the customer open transaction. One has to specify and sequence these rules as the set which is defined in the auto cash rule set. Creation of auto cash rule set: Navigation: Setup > receipts > auto cash rule. Auto cash rule sets (Receivables vision operation (USA) Name: PR auto cash rule Description: PR auto cash rule. Active. Items in disputes. Finance charges. Open balance calculation: Discounts: Earned only. Automatic matching rule: Remaining remittance amount: Unapplied. Apply partial receipts. Auto cash rules: Seq auto cash rule: Apply to the oldest invoices first. Clear past due invoices. Clear past due invoices grouped by payment term. Match payment with invoice. Clear the account. Click save and close this window. Discounts -> earned only -> the customer can take only earned discount. Earned and unearned -> can take both earned and unearned discount. Unearned discount is one that can even been taken after the discount period is over None -> cannot take any discount. Remaining remittance account: on account and unapplied.
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After defining the auto cash rule set, now we will attach the auto cash rule set with the Profile class. Query a Profile by going to customers Profile classes and query a Profile class : PR CUS PROF CLS Attach the auto cash rule set: PR Auto cash rule in this window. Auto cash rule set: PR Auto cash rule set. Click save and click update all Profiles radio button and click ok and check for the request is completed. Close all the windows. Query the customer to check whether the Profile class got updated customer; standard. Enter the customer name and click find. Go to Profile -> transaction tab and see the auto cash rule. Set has been attached. Go to address tan and click open and go to Profile transaction tab and check whether the auto cash rule set got attached. Close the customer window. Enter receipts with batch type as manual quick. Batch type: Manual quick. B) Select the batch source. Batch source: PR receipt source. C) Enter the batch date, GL date, deposit date as 10 Nov 2011 D) Enter the receipt class. Receipt class: PR receipt class manual 1. E) Enter the count and amount.
Control Actual Reversed Difference Count 3 0 0 3 Amount 100000.00 0.00 0.00 100000.00

F) click save and click receipt button to enter the receipts number.
Receipt number PRRS001 PRRS002 PRRS003 Receipt date 16 Nov 2011 16 Nov 2011 16 Nov 2011 Amount 10000 30000 60000 Application type Single Multiple Auto cash rule set

If application type is multiple then click multiple buttons to select the multiple transaction number. 100044 -> 10000 100048 -> 10000
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100049 -> 10000 Click save and close application window. G) Select the customer for all the receipt. H) After entering all the 3 list i.e., the last row should auto cash rule. Set attached to the application type. I) Click post quick cash button. J) A decision box is displayed.

Submit 1 batch for quick cash posting? YES NO

K) Click yes button and check the request is completed. L) Click view output button to see the details and output of this rule. It selects the old invoices first and applies the invoices. M) Close the request window and quick cash window and see the status as control cunt and amount is equal and status as open. N) On saving the status will be closed and the difference will come as 3 and 100000.
Control Actual Reversed Difference Count 3 0 0 3 Amount 100000.00 0.00 0.00 100000.00

Receipt batches Automatic:One can use automatic receipt future to automatically generate receipts for customers with whom one has Predefined agreements. The creation of automatic receipts involves three steps: Create: it involves selecting the invoices that one want to include automatic receipts. Approve: It involves deleting, updating and approving the receipts that one have selected. Format: It involves formatting ones automatic receipts on to paper and send to one customer for confirmation or notification.

Need to create some setup step before creating automatic receipts.


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Setup the customer bank. Set up receipt class automatic. Create a sequence in general ledger Attach the customer bank and payment method automatic to the customer. Enter a transaction. Complete the transaction Copy the transaction to create more Enter a receipt batch automatic Create, approve and format the receipt batch -automatic. Maintain the receipt batch. Query the individual receipts. Setup the customer bank. Setup > receipts > banks Bank name: PR customer bank Branch name: PR customer branch. Institution: bank Click bank accounts button. Bank account

Operating unit : vision operations. Name : PR customer account Account use: customer Number: 90001 Currency : USD Click save and close the window. Setup receipt class Automatic Setup > receipts > receipt classes. Name: PR receipt class automatic. Creation method : automatic Remittance method: no remittance Clearance method: directly. 1. Give a name for payment method. 2. Payment method: 3. Name: PR payment method auto 4. Effective date: 2 Jan 2011 Automatic tab: Debit memos inherit receipt numbers.
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Receipts inherit transaction numbers. Number of receipts rule: one per invoice. Receipt maturity date rule : earliest Automatic Print Program: Print receipts Program Payment type: Lead days: Merchant ref:

Bank accounts
Click on the bank account button. Select bank name as PR main bank and select PR current account and all details gets filled up. Effective date: 1 Jan 2005 Formatting Program tab: 1. Remittance transmission: Transmit bank remittance Program. 2. Remittance Print: Print bank remittance Program. 3. Factoring transmission: Transmit bank remittance Program. 4. Factoring Print: Print bank remittance Program. Create a sequence in general ledger: Setup > financial > sequence > define.
Name Application From 1 Jan 2011 Type Automatic PR sequence Receivable Click save and close. Setup > financial > sequence > assign. Application Category Initial value 1

Receivables

PR payment method automatic

Set of books (Ledger in R12) Vision operation (USA)

Method Start date Automatic 1 Jan 2011

Sequence

PR sequence

Click save and close. Switch to receivables. Customer > standard. Name: PR customer. Click find button. Bank account tab:

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Account name PR customer bank account Payment account tab: Payment method PR payment method Automatic Number 954212 From 1 Jan 2011 Primary

From 1 Jan 2011

Primary

Clicks save. Select address tab and click open button. Bank account tab:
Account name Number From Primary

PR customer bank account

954212

1 Jan 2011

Payment account tab: Payment method

From

Primary

PR payment method - Automatic

1 Jan 2011

Enter a transaction and complete the transaction and copy the transaction to create more transaction Create a automatic receipt batch. Receipt batches: select batch type automatic.
Batch type Batch date GL date Currency Receipt class Payment method Automatic 15 Nov 2011 15 Nov 2011 USD PR receipt class automatic PR payment method automatic

Click create button and select customers and click ok and check completion of report. Requery with batch number 30112 and Process status is completed creation. Click approve button and check completion of request. Requery and click format button and check completion of request. Requery and click maintain button and we can see the receipt number generated close the entire window. Query individual receipts by going into receipts and see the status as cleared.

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Bills receivable: standard or factoring: Bills receivable is a negotiable instruments signed between 2 parties. The drawer and the Drawee. The drawer is one who draws the bill and the Drawee is the one who accepts to draw the bill. One can use the bills receivable window, to manually create a bills receivable and assigns transaction to the bill. 1. Set up a transaction type. 2. Set up a transaction source 3. Set up a receipt class 4. Update customer as Drawee 5. Enter a bills receivable transaction 6. Enter the bills receivable details 7. Assign to a transaction 8. Complete, accept the transaction 9. Remit the bills receivable transaction. Select the remittance method standard or factoring. Create, approve, format the remittance. 10. Run the bills receivable maturity and risk Program. 11. Setup the transaction type: PR bills receivable. Select the class as bills receivable class: bills receivable. Format Program name: French bills receivable. Other details are same, click save and close. 12. Setup a transaction source: PR BR source. Setup > transaction > Sources. Name: PR BR source Type: manual Active Automatic transaction numbering: 1999 Effective date: 1 Jan 2011 Click save and close this window. Setup a receipt class. Setup > receipts > receipt classes. Name: PR BR Receipt classes Creation method: Bills receivable remittance Remittance method: standard and factoring Clearance method: by automatic clearing Payment method:
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Name: PR payment method BR Effective date: 1 Jan 2011 Receipt inherits transaction numbers. Click bank account button to give the bank details. Bank name: PR main bank (internal bank a/c) A/c name: PR current account Effective date: 1 Jan 2011 Claim investigation : claim investigation Short term debt: short term debt factoring Remittance: PR:000-1245-0000-000 Formatting Programs: Remittance transmission French bills receivable remittance Factoring transmission Remittance Print Print bank remittances PGM Factoring Print Click save and close. Update the customer as Drawee: Query the customer and click find. Address tab -> open -> business purpose tab. Select drawee below ship to and save a number is generated. Enter a bills receivable transaction: Navigation: bills receivable > transactions It opens bill receivable window Bill receivable ( vision operation : USD) (New) Number:100001 Source: PR BR source Currency: USD Issue date: 1 Nov 2011 Document number: Status: Maturity date: Type: PR bills receivable Amount: GL date: Complete.
More Bank account Notes

Main

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Main tab: Name: PR customer Number: 4090 Taxpayer ID: Location: Address:D2 Glass made Sannathi road, Velachery, Chennai, PR city, PR state. Print option: Print Last Print date: Acceptance date: Remittance date: Remittance batch: Signed Isssed by drawee

Incomplete

Accept

Quick assign

Assignments

Click assignments button, the assignment window opens. Assignments (vision operations: USD)-PR customer, 100001 Drawee name: PR customer Drawee number: 4090 Taxpayer ID: Amount USD: 20000.00 Assigned: 20000.00 Unassigned:0.00 Assigned Saved Transaction number 1141 Installment 1 Amount assigned 20000 Due date 1 Nov 2011

Customer number 4090

Customer name PR customer

Transaction type PR invoice

Complete
Reciprocal relationship:

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Reciprocal account relationship enables parties to apply receipts against each other transactions and enter invoices against each other commitments. Prerequisites: Enable create reciprocal customer. Check box under the region transaction and customers in system options. Update the reciprocal relationship at the customer standard level. Enter a receipt and during application both the customers transaction are listed. Update the reciprocal relationship at the customer standard level. Select the customer and click find button. Select the relationship tabs from the more tab and relate this particular customer with other customer. Name: SS customer Number: 4086 Type: all. There are three types: All, Parent & Reciprocal. Save and close the customer window. III) a) Enter the receipts and select the payment method, enter receipt number, amount as 10000 and receipt date 5 Nov 2011. b) Select the customer and click apply button to select a transaction and select a transaction because it displays both PR customer and SS customer transaction. Select any one transaction and save and close the entire window. 10) Collection activity: o Receivable let ones to view the customer account information in a variety of ways. o Define collector and attach to the customer Profile class. PR collector already defined and attached. o Review the customer accounts. o Query the customer o View the account details o Overview the account period o View the payment and other details by clicking key indicators. o To view the customer accounts. Navigation: Collections > customer accounts
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It displays the find customer accounts window. Accounts statements: Account statements will Provide the customer complete record of the invoices, debit memos, chargeback, deposit receipt, on account, credits, credit memo and adjustment activity for a specific period. Set up the statement cycle Print the statement by Attaching the statement cycle to Profile class. Submit the statement.

Navigation for creating a statement cycle: Setup > Print > statement cycles. Give a name for the statement cycle Description Select interval as monthly from the list of values ( monthly, quarterly, weekly) Then I want to generate my statement cycle. Name: PR statement cycle monthly Description: PR statement cycle- monthly

Customer calls: One can contact the customer through phone for any transaction that is positive. One can use customer calls window to record the results of ones conversation details by recording the details of one conversation. One can create a record of contract and can recommend any further collection actions. Select the collector Select the customer Enter the contact person details Record the response of the contact call made. Follow the action, Promise, forecast of the response. Alert the management of the outcome of the call if necessary. For a particular transaction or receipt what is the follow up action taken.

Navigation: Collection > customer calls. Customer accounts merge: One can use customer account merge to consolidate any duplicate customer or transfer of site which is no longer active.
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After successful merge, all the activities that was Previously associate with old customer associated with the new customer or site. I have two customers: PR customer, SS customer Merge two customer account.- Merge PR customers with SS customer Finally after merging, Query the old customer who is merged with the new customer. Find out old customer or not and any transaction is existing in the old customer. Navigation for crating customer account merge: Customers > account merge. General ledger transfer: Accounts receivable transfer to general ledger. The balances in accounts needs to be transferred to general ledger on a daily periodical basis and before that one has to run reconciliation report. This report helps one to reconcile ones account receivable activities. Run the accounts receivable reconciliation report. Navigation: Control > request > run Submit a single request radio button and click ok. Name: AR reconciliation report.

Fixed Assets Purpose: 1. Record, Retrieve and maintain Functional information of assets-Tax law Budget information of assets-record, retrieve Physical information of assets Can be maintained as per the needs and local law of the country and as per representation of tax, Dep, we can maintain multiple books for source assets. Can be recorded as per needs and requirements and for control\purpose. Employment, Dep of asset, reveals facts as to the actual usage of asset by depts.

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2. SYSTEM FLOW: 1. Creation of books

Corp book and budget book, budget book 2. Key flexfield (should be defined):-structure-values Category flexfields Location flexfields Asset key flexfields (values for these three flexfields should be defined) 3. System controls: Should be created using these structure and for setting up automatic number for assets. 4. Financial options: Those are common to purchase, pay, rev 5. Dep methods, Rates and ceilings: As per corporate book and tax book should be defined 6. Asset category: Values of flexfields, Dep for each category defined 7. Location: By combining values location field 8. Asset addition: Could be created Individual/Mass Allocations 9. Depreciation runs to crystallize the asset addition. 10. Mass copy in tax books. 11. Capitalization of CIP Assets (Periodically) 12. Transfer/Mass transfer 13. Adjustment/Mass adjustment 14. Reclassification (revising asset category)
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15. Revaluation (bring assets to market value) 16. Retirement/Mass retirement 17. Reinstatement/Mass reinstatement 18. Journal Entries creation

3. DEFINITION OF ASSETS 1. 2. 3. 4. 5. 6. Item owned by the business Item can be tangible or intangible Tangible items can be movable /immovable Normal life is more than 1 year Unlike inventory it is not meant for resale to customer. Used for manufacturing process & support the Business activities for effective operations. 7. Normally it is depreciable over the period of life.

4. TYPES OF ASSET A) Based on physical attributes: 1) Tangible assets-immovable, movable assets 2) Intangible assets-Goodwill, patent etc

B) 1. Capitalized asset 2. Construction in process (CIP assets) 3. Expensed assets 5. ASSET BOOKS 1. Corporate Book: Recording financial information and details of Dep for Business purpose. 2. Tax Book: Record FI and details of Dep for tax purpose
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3. Budget Book: To record the budget information of assets of the enterprise. PRE REQ: 1. 2. 3. 4. 5. 6. Fiscal years calendar Department Prorate calendar GL SET OF BOOKS (LEDGER IN R12) Journal source and category FISCAL YEAR

1. Fiscal year is the yearly calendar for Akg Co, 2. Fiscal year have to be defined from the year earliest to the oldest date placed in service of asset in the enterprise 3. If the asset Book and asset are to be created only from the current fiscal year, then define fiscal year from the previous year. 4. The fiscal year calendar for the corporate book and tax Book is the source 8. FA PERIOD IN ORACLE ASSETS There are only two periods Open period close period

Period status is control by the system Only one period will be open at any point of time Depreciation run program closes the current period and open the next periods and open the next periods 9. DEPRICIATION CALENDAR Dep Cal decides the periodicity of running Dep The name of the period in Dep calendar must be same as in the GL Akg calendar. One common depreciation cal can be used for multiple Dep books Corp Book depreciation calendar can be different from tax Book Dep calendar whereas corp. BOOK fiscal year name must be same for tax BOOK

10. Prorate Calendar 1. Prorate calendar decide the periodicity for calculations Dep
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2. Prorate calendar is used to determine the prorate date and prorate period, when to Dep an asset during the first and last yr. 3. Prorate calendar is used for determine the prorate convention 4. Prorate calendar is used mainly for table based method Dep Prorate calendar selects the Dep rate with respect to the date placed in service for table based method KEY FLEXFIELDS IN ASSET Flexfield is an intelligent key code combination of various business dimensions/business segments for any transaction Key flexfields are vital and recurring in nature Types of flexfields: 1. category flexfield -mandatory 2. location flexfields -Mandatory 3. asset key flexfields -optional FA CATEGORY FLEXFIELD Grouping of assets based Dep method and rates Category flexfield is the field in which we specify the name of the category of assets Structure of category flexfield 1. Name 2. Segment A) Main Category b) Sub category 3. Value sets Values of category flexfields segments: 1. Main category values 2. Sub category FA LOCATION FLEXFIELD

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Location Flexfield is a key Flexfield to record the location details of the asset Structure of location flexfield i)Name ii) Segment iii) Values sets Values of location flexfield segment 1. Building 2. Area 3. City 4. State 5. Country FA ASSET KEY FLEXFIELD Asset key flexfield: used to group assets on the basis of its functionality Structure of asset key flexfields i) Name ii) Segments iii) Value sets Value of asset key flexfield segments 1. Asset key 20. FA SYSTEM CONTROL After defining key flexfields comes the system ctrl setup Specify the enterprise name Specify the date placed in service of the oldest asset in the enterprise Choose the asset flexfield structure
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1. Category flexfield 2. Location flexfield 3. Asset key flexfield Choose automatic asset numbering system 1. Specify starting asset no 2. Last asset no: used automatically updated by system 22. FA PRORATE CONVENTIONS Prorate convention are method to the first& last year Dep of asset as per the prorate period &prorate date Normal prorate conventions types 1. Current period convention 2. Next period convention 3. Prior period convention Retirement convention decide the annual Dep Of the asset for year in which it is returned Retirement convention types: 1. Can be the same as prorate convention 2. Also facilitates changes in convention from the default rules at time of addition or @the time of retirement

1. Depreciation methods Dep: Decrease in the value of assets normally due to wear and tear Dep Basis 1. Cost basis> straight level 2. Net book value basis (NBV) WDV
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Methods of Dep: 1. calculate method-cost only 2. Flat rate-cost &NBV 3. Production-cost only 4. Table method-cost NBV 5. Formula method-cost NBY Bonus Dep & ceilings In some countries additional Dep will be changed knows as bonus Dep reciation Bonus Depreciation 1. One time 2. multiple times Dep ceilings (for tax books only) 1. Cost ceiling 2. Expense ceiling>exp Depreciation

6. ASSET CATEGORY Category of asset on the basis of Dep methods and rates Setup for creating asset category: 1. specify/select a name the ass category by combining Main category value Subcategory value Description C. category type d. Ownership
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owned lease e. Property type i. real ii. Reversal iii. Others F. select controls- enable /capitalize /in physical inventory 2. Specify GL BK & A/Cs 3. Specify default Dep rules Second window specify GL a/c Choose corporate Book/Tax Book Specify A/C code combination for: 1. Asset cost 2. Asset clearing 3. Dep exp segment 4. Account Dep 5. Bonus expense 6. Bonus reserve 7. Revaluation reserve 8. Revaluation amortization 9. CIP cost 10. CIP control Go To default rules-To specify default Dep rules. Placed in service date effective Specify def for the asset cat
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1. Dep method/rate/life 2. Bonus rule 3. Prorate rule 4. Retirement convention 5. Salvage value in % 6. Cost /exp ceiling 7.Price index 8. Subcomponent life rule with mini life 9. Straight line method for retirement 10. Dep limit usage %/amt 11. Capital gain threshold yrs limit 8. QUICK CODES Give quick codes for giving values for: 1. Asset description: land, building, machinery 2. Lease periods: annuity, quarterly 3. Property type: real, personal, tangible, and intangible 4. Retirement types: full, partial, Reinstatement Setup> asset system> Quick Codes

10. DISTRIBUTION SETS THEORY Distribution set is useful for single or multiple asset segment of the physical distribution of asset automatically To various location/exp employee while adding assets in detail addition mode/mass addition mode the automatic assignment will be as per the predefined % assignment in the Distribution set the distribution set in assets module should be a full distribution set each distribution set must have unique name & will be specify for a particular asset book
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you can have any number of distributions set for any ass category you can have any number of distributions set as per the dates placed in service you can have distribution sets based on rate of dates placed in service 12 .TRANSACTION IN ASSET 1. Addition 2. CIP addition 3. Transfer 4. Adjustment 5. CIP adjustments 6. Depreciation 7. Depreciation adjustments 8. Reclassification 9. Revaluation 10. Retirement 13. ADDITIONS METHOD First transaction in FA module in addition Mode of addition of assets 1. Quick addition: To add assets quickly with minimum details& by using default rules as per asset category in a single screen 2. Detailed additions: To record complete details of assets including source lines, sub components, leased assets, short year asset &also to over side default Dep rules Details to be recorded in four screens 1. 2. 3. 4. asset details screen source line screen books assignment

3) Mass addition: to import mass data from payables or external system to oracle assets 14. ADDITIONAL CAPITALIZED ASSETS Same as in addition of asset. Here, capitalized asset are taken into consideration 15. EXPENSES ASSET THEORY
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Expensed asset are asset whose values is less than prescribed value ,permitted by tax authorities for creative it as overvalue expenses or off in a year. Are mainly captured for physical verification Asset type: expensed (The check box capitalized should be unchecked in the relevant asset category) Quick, detailed, mass: While reporting from payables the exp line item should be manually tracked as assets

18. Production DATA THEORY Production data for production based asset 1. Production capacity of the asset & its unit of unit of measure should have been recorded while recorded while adding a Production based asset 2. Periodical Production details to be uploaded /recorded in the Production window. Actual Production details can be recorded for a date range within the current period for dep. Unit of measures for actual Production should be the same as the unit of measure entitled for Production capacity in addition workbench. Overlap in date range is not allowed. Combined Production details for more than one period are not allowed

20. Depreciation & Roll back Dep (Oracle 11i) Periodical Dep is calculated by running the depreciate run program 1) Dep is first run for corp. book a) Without enabling the checkbox close period in run Dep screen b) By enabling the checkbox close period. 2) in case depreciation is run without enabling the check box close period, for making any changes in the asset addition/transaction during the current period, the pre request to run the program Roll back depreciation for the current period
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3) Once Dep is run by enabling the check box close period, the current period is permanently closed in the asset & the next period is open automatically 4) There are only 2 period statusesopen; close 21. FA DEP RUN PROGRAM Nav: Dep>run Dep Give book name Period-gets (before running ensure are the transaction correct) RUN-Request View>field> Default Reports run & their purpose Dep programs which run in box end are: 1. Generate a/c: creating a/c entries 2. Dep run request: Running programs 3. Calculate gain &loss: sale/retirement of assets 4. Dep Run: calculate Dep & same is charged in dep. Books 5. Journal entry reserve ledger report: enables to know how much Dep exp is charged for acc period 6. Process pending transaction: updating future transaction Pending in asset book for next period Query assets to know Dep charged Book name Give Query: find >books View details

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WK4: how Dep changedCost of asset-salvage value1/12r of Dep Production: cost no. of units produced/total cap Flat NBY with bonus: as salvage excluded not enabled cost-salvage is taken for Dep cal Bonus on call To know bonus rule: go to bonus &query CIP ADITIONS Construction in process: is construction of assets by purchasing component/materials required, recurring cost on labor & other charges in building the assets CIP assets are recorded through quick addition, detailed addition and moss addition mode. Costs to CIP asset are added through the source line in detailed addition & mass addition CIP assets are not usable till these are fully built .so we dep express is changed on CIP assets

2. CIP ADDITIONAL THEORY CIP is building the asset ASSET TYPE: CIP 1. QUICK ADDITION: TO add CIP assets quickly with NIL cost by using default rules as per asset category in a single screen. Cost addition cannot be added through Quick addition 2. DETAILED ADDITION: To add CIP assets will NIL cost further to add cost to CIP ASSET through source lines screen 3. MASS ADDITION: To import mass data of CIP assets from payables a external system to oracle assets Conversion of CIP assets to capitalized assets If want to date of capitalization or add any invoices Go to cap assetsquery book>asset type-CAP> reverse it>Query the asset in asset work bench The asset no: will be reversed to CIPand can add source line.

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4. MASS ADDITION PROCESS IN PAYABLES Mass addition is the process by which many asset are added automatically in oracle asset using data of assets from external sources Normally mass addition is done the oracle payables or any other feeds system using the interfaces invoices for purchase of fixed asset are normally recorded in payables in invoices distribution lines, the items of capitalization asset type are recorded with Asset clearing a/c code combination as change a/c & the items of CIP Cost clearing a/c code combination as change a/c which are automatically enabled in the distribution window to be tracked as assets In case of other charges to purchase of capitalized assets/construction of CIP assets like freight, tax miscellaneous exp & also for exp asset charges account, these lines records in the invoice distribution windows are to be normally tracked as assets by enabling the relevant checkbox. Validation & create a/cg of the invoice relating to purchase of assets Run the program payable transfer to GL with journal import parameter Ensure that the program payable transfer to GL is successfully completed & the invoice details are transferred to GL interface next run the program mass addition create which performs transferring invoice details of a ssets to which are transferred to assets interface and analyze the report to confirm that all the relevant line records relating to assets are transferred to assets interface to asset database 1. Prepare mass additions: Add as new asset (cap/ cip /exp) Merge line records & add as new asset Add cost to existing asset (capitalized/ cip /exp) Split line records & add as new assets Place on hold incomplete line records Place on review line records for assets transaction pending approval or reg review 2. Post the mass addition by the concurrent program Post Mass addition 3.Delete the mass addition line records which are transferred to asset database or marked for deletion by running concurrent program delete mass addition
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Mass addition Queue status in assets In prepare mass addition workbench when lines are imported from payables to assets 1) Modules the status will be NEW: when line modules are open and if 2) Details are updated and saved-on hold if field are entered & reg approved from authorities the status can be changed to 3) On-review Asset lines are completed- it can be posted to asset database & incorporate in asset book, the queue status can be manually changed which will be ready for posting? 4) These records can be posted to asset book by running post mass addition program 5) Irrelevant line records not pertaining to assets module can be deleted by selecting status as delete 6) In case line records are need to cost adjustment to cap. Assets/CIP asset. If these line records are adjusted to these relevant assets & if selected for posting, status becomes cost adjust. 7) In invoices source lines are to be merged clubbed into single asset record, then we can choose merge, when line gets merge with parents line, the line status will be merged. 8) When invoice is split into several records Eg: furniture can be split into chair & tables (2 line records) 9) Capitalization 10) Posted DELETE MASS ADDITION: Give Para sub view Req view o/p. Prepare Mass query your book could not find any invoice Query book can details of asset in mass addition

7. TRANSACTION TYPES. Future add / future adj / future capitalize: Under certain circumstances, running of Dep run program with close period option may get delayed with the result. Current period/ reuse past period / as per system date may not be opened in the asset book.
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So, Assets transactions for such current/past periods as per system date cannot be captured in asset book unless and until the relevant period is opened in asset book. But to record these transactions as and when they occur, oracle Assets enables us to record/capture the same in prepare mass addition work bench as the toll type transactions to be transferred to asset book database in future. 1. Addition as future Add trans type 2. CIP additions as future Add trans type 3. Cost adjustment to capitalized assets & CIP assets as future adjust trans type 4. Capitalization of CIP assets as future cap trans type The recorded future type asset transactions for the Asset book are temporarily stored in the interface & these transactions become effective for the asset book only when the relevant period is open in asset book. The process which opens the relevant period of the asset book is the Dep run program with enabled check box for close period for the previous period which closes the previous period & opens the relevant period as current period. Oracle Assets automatically update the transactions in asset database of the recorded futu re type transaction Details the concurrent program Process pending transactions in Dep run.

CAPITALISE CIP ASSET ON FUTURE DATE: Click capitalize find select one CIP asset done (give trans date) Enter book name find you can see one lap Dep Run Give book name Close period

9. LEASED ASSET THEORY Lease is a contractual argument but the lessor & lessee with predetermined payments terms using the asset/s of the lessor by the lessee for the lease period. Leased assets are operating leased assets unless they satisfy lap test & opted for the lap by the lessee Leased assets can be lap if any one of the following ----------------1. Transfer of ownership 2. Bargain per option 3. If the lease period equals and exceeds 75% of ECO life of the leased asset 4. If the present value of the lease payments equals/exceeds 90% of fair unit value. 10. LEASED ASSET PAYMENT SCHEDULE Oracle calculates present value using the pay schedule for a pre-determined pay amount for a period of time including interest , if any View amortization will show the total income lease as the difference but the present value & total lease rental payments Request to define payment schedule:
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1) 2) 3) 4) 5) 6) 7) 8) Name of the payment schedule Lease date Interest date Compounding frequency of cal of interest monthly/q-ly/semi-annually/annually Start date of payment Rental Payment amount No. of installments Payment type: Annually /Balloon Payment / Bargain per option / Bargain renewal option /Guaranteed Residual Values / Penalties

11. Foreign EXPORT LEASE PAYMENTS TO PAYABLES Lease payments are exported to payables automatically through payables interfaces Queries the base payments from the menu. Lease Payment to payables for exp. All the lease payments status will be new initially. Select lease payment to be exported for changing the status to post, save it &export the lease payments Export lease payments to payables program is run automatically after export (clicking) Run the program Payable Open Interface import in Oracle payables. Only then the lease payments details are imported from the payable interface to payable database as Invoice as lease rental payments In payables, Query the invoice work bench the invoice number as appeared in the interface import report for the lease payment. Validate app,create aleg & eff payment of the invoice on time 13. DEP / ROLL BACK DEP Periodical Dep is cal by running the Dep run programs. Dep is first run for corp. book w/o enabling check box 1. W from last ----Enabling the check box closed period 14. ROLL BACK DEP LAB Dep Run Dep Run for Jan 12 to calculate depreciation Process pending will not be running since the period is not closed View Request find clo Dep changed Roll back dep to bring it to original .su Give asset in asset work bench finance > Dep for Jan will not be found. 15. DEP FOR FUTURE ASSET Close & run dep Dep run Dep close period Request find >
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Query asset book give book name select asset

What if Analysis

What if analysis is a tool to analyze the effect of use/changes in dep method/Rates / Salvage value/ Bonus rate / prorate convention for a prescribed no of periods from the current period to future period with respect to 1) Existing assets a) Under one asset category b) Placed in service in a Date range c) Asset number range (Including fully reserved assets) 2) Hypothetical assets Under one asset category with proposed date place in service ,estimated cost for purchase as new & in case of proposed purchase of used asset , additional information of estimated Accumulated dep , if any 3) Insurance asset insurance window captures information such as policy number , insurance co, calculation method, Base insurance value ,Insured amt, ins under & current values, Insurance coverage category (Acc, fire,theft,third party), Hazard class ( valuable, fragile, Explosive, Portable) INSURANCE: Three types of cal. method are provided in Oracle Assets 1) Value as new: This method cal current value on cost bases{re cost price index factor for the rate period} 2) Market value: This method calculates current value on NBV (i.e. NBV price index factor for the relevant period / price factor for the previous period) 3) Manual value: There is no actual cal, we enter the current value manually

Run the program insurance calculation routine for current value Insurance can be queried & also the ins com details can be updated the maintain window

WARRANTY THEORY

Warranty is a service contract given by the manufacturer to vendor for any asset purchase
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In Oracle assets warranty info details the warranty number ,Desc, start date vs. End date,cost,supplier name and no, ee assignment for warranty Predefined warranty can be assigned to any asset Warranty once assigned to any asset cannot be updated / deleted Same warranty can be assigned to any no. of assets Using the warranty num, we can query the assets

8. SCHEDULE MAINTENANCE EVENT THEORY Schedule maintenance events capture the information on events of Repair & service of assets Details of time schedule of periodical/half yearly/Annual service maintenance can be planned and recorded The maintenance event is used for corp book Maintenance schedule can be rec. by selecting details Time schedule Corp book Asset number range Date placed in service range Asset location Assembly Events name and Desc Frequency in dates/days of maintenance Maintenance cost Supplier name & no, Contact name & no Run the asset maintenance scheduling program

9. VIEW /PURGE MAINTENANCE DETAIL To view maintenance details of assets ,select the asset no: /Des / asset category /tag no: /serial no: / Asset key Query mode Initially the maintenance status is Due As & when the supplier completes the maintenance events, the status column need to be updated as completed Purging of main details can be done for old data as per req The selection criteria for purge: 1. Book 2. Asset no: range 3. Maintenance date range 4.Asset category 5. Status of maintenance

11. TAX BOOK THEORY


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Tax book is maintained for changing dep on assets as per tax rules of the country & PO claim tax relief on Business income. Tax book is the deferred income tax liability by comparing with corp. book More than one tax book can be maintained and copy the details of assets other than dep details from the corp. book The transactions of all assets in corp. book is copied to tax book 1. Initial mass copy 2. Periodic mass copy Tax books are created in book control by selecting the classified as tax which shows the tax rules to be adopted

12. TAX BOOKS LAB Su Asset sys save new KR Tax book - class book Ass: PN corp. book Dep same as corp. or new have same current period (LOV) Dec07 Dep if retires in first year ALCG RULES: Natural Account: Shift F5 auto copied from corp.

The tax rule region / tab Transactions to be copied from corp. book to tax book 1. 2. 3. 4. 5. 6. Allow res adjustment Allow inv tax Allow CIP assets Allow cost ceilings Allow exp ceilings Allow mass copy Additions Adj Returns Salvage value Group ass addition Member asset assignment

Journal categories: Journal: Assets & other details


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Tax rules: 1. 2. 3. 4. 5. 6. All res adjustment if (YES) allow s to acc dep in tax book All inv taxes (NO) All CIP assets want to add as per corp book but (NO) All cost online: (YES) Dep on lost All Exp : (YES) Dep Exp All Mass copy: (YES) copy add, adj, return book, corp book

Sal Value want copy Group Rules: Gr ass addtn : want copied Save close 13. TAX BOOK INITIAL MASS COPY THEORY Initial mass copy is the process by which all the information of existing assets are copied from corp book to tax book excepting dep details. For the copied assets in the tax book, the dep rules are default from relevant asset category of tax book To copy all the existing assets of corp book to tax book run the program Initial Mass Copy. First time copying is done the initiate mass program Initial mass copy program can be run more than once to copy all the existing assets & this will not duplicate any trans Corp book period is to be closed before running initial mass copy for the relevant period up to which assets are to be copied Assets retired before the end of that fiscal year & asset addition after the end of the year are not copied in Initial mass copy

14. TAX BOOK PERIODIC MASS COPY THEORY Periodic mass copy is the process of updating tax book for each period. Subsequent to Initial mass copy as per the corp book Periodic mass copy program copies all the transactions for each period subsequent to Initial mass copy to tax book from corp book Periodic mass copy is done only after closing the current period of corp book & by bringing the current period as open in tax book Periodic mass copy program copies the following info to tax book from the corp book during current period as per tax rules in the tax book 1. Addition 2. Adj 3. Retirement
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4. Reinstatement 15. TAX BOOK INITIAL PERIODIC LAB After def tax book Create Exp ceiling & cost ceiling Su dep ceilings Enable cost to enter cost ceiling Ceiling : PN Cost ceiling Des : Currency : USD Dates placed in service
From date 01/jan/2005 2006 To date 31/dec/2005 2006 Ceiling 4,00,000 4.50% If an asset cost is 5l it will dep on 4l not ou sl

Save Click exp : down ous Ceiling D.S Currency


From date 01/12/05 01/01/06 To date 31/12/05 31/01/06 Year of life 1 2 1 Ceiling 3,000 3,000

Save & close Asset category -- to define tax Su Ass sys Ass category Go & GL & press down arrow Book : TB Asset cost : -5321- tools -1570Default rules:
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Give dep method NBV PR KRPDC 2) Goodwill: Flat NBV 15/15 PRORATE NPC 3) L & B Building NBV 10%/12% ppc Ceiling will be fixed only when govt imposes dep on particular asset 4) Land 5) Computer NBV- 20 6) Copies Flat NBV 7) Machine flat WBI SPC 8) Flat NBV 9) Las Flat NBV-ceiling cost 10) Trucks flat NBV SPC exp ceiling Close Initial mass copy: (from corp book to tax book) Tax initial mass copy enter book name submit View find close Inquiry find inj assets select book Can view both books Tax book dep should be run as it will not be copied from corp book Dep run dep give tax book close run Inq find infbk corp name find ceiling Check dep cost 22/100 1/12 Truck 3000/12 = 250.. PERIODIC MASS COPY: Tax periodic mass copy tax book jan 2008 ok Ok sub req Check corp book to know whether assets are copied 16. CAPITAL BUD THEORY Capital Budget is an estimate of cap exp for pur or cons of asset in future Cap Bud can be entered manually or by uploading from other sys the budget interface In Oracle assets, we capture annual cap budgets for bud book
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1. Asset category wire 2. Dep Exp A/C wire 3. Periodic limits

17. BUDGET REPORT THEORY Cap Budgets are used to gen the for repo 1. 2. 3. 4. Estimate of Cap exp Periodical comparison of cap bud vs. actual Cap spending report Projected dep Exp based on cap budget

These reports serve as tools to ctcl the cap exp & also guide cach flow & fund flow planning 18. BUDGET BOOK Su Ass sys book control Query corp book save down arrow budget book Class budget Give des Associate corp book KR corp book Give details No in Accounting rule Natural account shift F5 Our category Save & close Bud uploadto create Budget book Give book name Enable create Bud book save Enter budget enter amount Book : Categ: Mach
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Expact 120-7330 Enter amount :1l , 4l, 5l Save & close Asset wk bench & query Bud book can view for every uth finan eq Run reports: Other Run req Budget rep Sub view o/p Sub new req Bud to act Rep give book name, Dec -07. Ok view o/p cl-cl bud upload another bud delete existing & upload new 19. DEP PROJECTIONS Dep projections program is used to calculate projected dep of existing asset for current / future periods It is used as a tool to adopt correct Dep method &rates It is mainly used for generating rep details for cost center & assets It can be submitted for four books at a time The pre req is projection calendar (Dep calendar)

20. DEP PROJECTION LAB Cannot be a PDF based method asset Dep projections Proj : KR calendar No period Starting period: jan 01 Book: give book name attach Tax/exp Run View/ Req TRANSFER AND MASS TRANSFER Transfer of asset is a change in the assignment of asset in any one or more of the foll details Employee assign Dep Exp assign Location Exp
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This is financial impact on transfer of assets in the case of change in Dep Exp assignment Transfer of assets can be for individual asset or more than one asset Transfer of multiple assets is done the mass transfer by preview & final run The selection criteria for mass transfer 1) Single Dep exp act & range of A/C 2) One location to another location 3) One employee to another employee

3. CHANGES THEORY Changes mean adj in cost of an asset or Dep of an single asset (Fin & Dep inf) In book ctrl enable allowances changes in a/c rules Changes for an individual asset involves any of following adjustments: 1. Cost addition to capitalized asset 2. Change in current cost of capitalized asset 3. CIP cost addition 4. Salvage value 5. Dep methods/rates 6. Bonus rule 7. Date placed in service 8. Prorate convention 9. Ceiling in case 10. Unplanned Dep

5. MASS CHANGES Mass changes means update in Dep inf for multiple assets In book ctrl enable allow mass changes in accounting rules Mass changes in Dep for cap assets can be done by selecting the following criteria 1. Asset no. range 2. Dates placed in service range 3. Asset category 4. Asset type 5. Fully reversed asset Mass changes can be made to any of the following existing values to a corresponding new values ( mandatory both values ) for the above selection criteria assets ( by pur view, Run & review ) Prorate convention Dep methods, rates / life in years & months Bonus rule & group assets ( stand alone/min)

5. MASS CHANGE LAB

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ASS Ass wk bench query book find select one asset books . Give book name give current cost cost defaulted. Things in mandatory field can be changed to amt & amt can be changed Dep method can be dwith diff/same date Date placed in service can also be changed. Bonus rule can also be changed done. Requery the same asset financial inq changes can be viewed MASS CHANGE Mass tan changes choose book status new can be done amortization changespreview id view Requerypart no Status previewed run 3 req are run Mass Review report Mass program report 6. REVALUATION THEORY Revaluation is a process to adjust the book value of the asset as per the inflation or deflation rates in order to bring it to mkt value Revaluation is done for 1. Prior period asset which are not fully retired 2. Assets added in current open period 3. Pending retirement assets Revaluation is not automatically copied to tax books rev of asset has to be performed separately in each tax book which is associated to the corp book Rev is done by specifying the default rev rules in the book ctrl which has over option in mass rev work bench 1. rev fully reversed assets 2. Maximum fully res revaluation 3. Life extension factor 4. Life extension ceiling 5. Revaluation ceiling Rev is done either by selecting the asset category on asset no with the percentage of inc/decrease

REVALUATION BOOK CONTROLS MAIN PRE REQ IN BOOK CTRLS TO DO REV OF ASSETS Allow rev check box enabled

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Optionally check boxes against the following can be selected in book controls as per co requirements Revalue Accumulated dep or not Revalue YTD Dep or not Retire Rev res Amortize Rev reserve Further, optionally choose the following default rev rules also in book controls which u can override in mass rev work bench Rev fully res assets Maximum fully reserved Rev Life extension factor Life extension ceiling Revaluation ceiling

8. RETIREMENT IND ASSET THEORY Retirement of an individual asset is done in asset work bench by selecting 1. Asset 2. Click ret button & go to ret screen 3. Select book: corp./tax book 4. Retirement date 5. Units & cost retired 6. Retirement type 7. Ret convention 8. Proceeds of sales 9. Cost of removal 10. Check invoice no: 11. Sold to 12. Trade in asset & des 13. Group asset(red rate res retired, prior year ,res retired; choose as to rec gain min or not) 14. Select sub components retired with parent assets

9. RET INDIVIDUAL LAB When asset is lost, damaged or sold INDIVIDUAL RETIREMENT: Ass Ass work bench select asset retirements give lost Ret type: sale Done & save Dep run cal gain & loss to calculate gain from sale
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Inq find inq to view details of ret asset select retired books lost history trans full ret details status processed Cal of P or L: Proceeds of sale: xxx Less cost : xxx

Net proceeds: Less current cost: Add acc Dep

MASS RET: Query book in ass work bench find select ass which has been retired already tools view a/c 10. RETIREMENT RUN STATEMENT THEORY An asset is to be said as retired in books whenever sold, damaged/discarded Retirement can be full or partial Retirement of assets can be for individual asset or mass assets Assets added during the current period cannot be retired in the current period To cal gain or loss on retirement, run cal gains/losses Rectification of wrong ass can be done by reinstatement in the asset work bench or in mass ret window Reinstatement can be done within that fiscal year only After reinstatement ,again the program cal gains & losses is to run to reserve the original ret transaction 11. RUNST IND LAB Ass ass work bench set any set Query no which was set retirement undo retirement Del retirement transaction Dep cal gain/loss sub Ass work bench query Retirement Query ass processed ref no: reins Gain run cal gain/loss Inq find query book

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IMPORTANT TERMS 1. 2. 3. 4. 5. 6. 7. 8. Debit : Benefit receiving aspect of a transaction Credit : Benefit giving aspect of a transaction Cash basis: Mercantile/Accrual: Asset : anything of value owned by a business Fictitious asset: shown along with other assets but actually representing unadjusted losses : statement prepared by a seller of goods to be sent to the buyer, showing net amount payable Voucher: written record & evidence of transaction

Factoring: Parties factor (financial intermediary ) client Is an argument where the receivables out of sales of gls are sold to factor thereby transferring the title of goods & ser to the factor & the right to rev amount receivables Types Recourse & without recourse

If the buyer fails to pay the client will pay to the factor For f: is financing of receivables pertaining to international trade. Always without recourse Clean bills: these bills are not accompanied by any documents that show that the trade has taken place. High interest

12. MASS RETIREMENT Retirement of a mass assets by a single process is known as MASS RETIREMENT Selection criteria of name ret: 1. Book : corp. book/ tax book 2. Ret date 3. Ret type 4. Units 5. Total proceeds of rate 6. Total cost of remaining 7. Option to ret sub components 8. Project no & task no : relating to CIP assets 9. Ret criteria Retirement criteria: 1. Asset type : cap/CIP/expensed
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2. Option to retire fully res assets 3. Exp accounts range 4. Location 5. Employee name/no 6. Asset category 7. Asset key 8. Cost range 9. Asset no : range 10. Dates in service range Additional criteria: 1. Tag number 2. Serial number 3. Manufacturer 4. Model 5. Group asset association 6. Group asset

13. MASS RETIREMENT TRANSACTION PROCESS 1. Create or prepare for mass retirement with complete retirement data 2. Retire & review if the enter transaction is to be through 3. Discard the process if correction is to be done. The recorded Mass Ret Agreement fails or alternate better offer to be recorded 4. Instead of discarding enter mass retirement transactions, corrections if any, can be made the Prepare mass retirement work bench Post mass retirement program 5. Run cal gains/losses program 6. Rec of wrong mass ret trans can be done by querying the rel mass transaction no & clicking retirement button & run again cal gain/loss program

15. RECLASSIFICATION THEORY The assets are reclassified from the existing category to new asset category th mass reclassification which updates if , correct any errors or consolidate categories To do mass reclassification enable check box Allow mass changes in the accounting rules region of the book control window Reclassification to the same category will have no effect By default reclassification of asset without changes in Dep rules of the old category of the asset can be done
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Reclassification of asset to new category by inheriting the Dep rules of new category can also be done by enabling the req check box. Any resulting Dep adj can be either exp off in current period or amortized For reclassification of any asset for which previously amortized adj was done ,the check box amortized adj need to be enabled else Reclassification will fail Assets are reclassified according to: 1. Asset type: Capitalized/CIP/Exp/Group 2. Dep exp a/c 3. Location 4. ee name 5. Asset category 6. Asset key 7. Cost range 8. Asset no: range 9. Dates in service range 10. Fully res assets On reclassification, Des flex field info for the assets entered in the old category will get copied only if enable the check box for Copy category Des flex field to new category subject to one change in the main category of the asset cat segment Run the programs for preview, Final run & review

17. UNPLANNED DEPRICIATION THEORY

1. A special Dep expenses mainly used in Netherland & Germany 2. Unplanned Dep for an asset can be entered in the asset work bench in book screen by selecting the button unplanned Dep 3. Initially unplanned Dep will always be positive & subsequent unplanned Dep for the same asset can be positive/ -ve as per the req of the Dep adjustments 4. Unplanned Dep can be entered for the corp. book and/or for the tax book 5. Unplanned Dep can be entered for current period only 6. Unplanned Dep can be amortized from the period for assets for which amortize adj check box is enabled 7. Unplanned Dep feature is not available for assets using table based Dep methods 8. Unplanned Dep exp must not exceed current N/B value

18. LAB UNPLANNED DEP Query asset book in asset work bench select an asset books enter a book name fin info will be def unplanned Dep should not exceed NBY
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Excess Dep can be amortized Click unplanned Type: Storm dam Amount: 25,000 Exp A/C: Amortize

Go to final query: additional dep will be changed

19. PHYSICAL INVOICE THEORY 1. 2. 3. 4. Physical invoice is periodic reconciliation of phy inv data of assets with oracle assets Physical inv can be recorded manually or by automatically using barcode scanner in to a file The collection of data are reconciled, if there are any discrepancies The physical inv data should contain at least the following info 1. Asset no 2. Location 3. No of units 5. For comparison, run the physical inv comparison program & the res can be viewed in the phy inv window or by running the phy inv comparison rep 6. The discrepancies, if any are updates manually for the respective assets in the asset work bench by the co or in the phy inv report by the auditors till such time in both reports the status is reconciled

20. PHYSICAL INVOICE LAB Phy inv enter Give name: Open Give asset no: Give locations, units Save & close Run comparison Compare run comparison Id View inventory no find statusreconciled Enter Give book
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21. JOURNAL ENTRY ASSET 1. Assets transactions from asset module are to be transferred to GL 2. Use the navigation : JE standard & run the concurrent program create journal entries with parameters :Asset book & period Prereq to run the above programs 1. Run Dep programs Without closing period Closing period 2. create journal entries program can be run any no. of times for the same period with closing the period for monitoring & drilldown operations by GL control 3. Rollback JE is to be done in case of run option Then only rerun of the journal entries program can be done after running Dep program by enabling closing period

22. JOURNAL ENTRIES LAB Dep STDbook give period & e20 Run Go to GL Enter Ba%DS% find Review journal check funds Res fund Id Requery Inq avg Give a/c period: 1520 show journal details

24. DEFERRED DEP JOURNAL ENTRIES Def Dep is the diff b/w corp. book Dep & tax book dep. It is useful to cal. Projected future IT liability. Run the program Create def Dep JE with parameters tax book, tax period & associated corp. period for deferred Dep exp journal. Multiple times running of the program for the same period is not possible. Roll back of Dep J.E. Setup Ass sys Book control
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Query tax book enable allow GL posting J.E DF Tax book: PN tax books tax period: dec07 Corp period Submit Switch to GL: J.E Batch: %BH% Tax% find Review journal check funds Res funds post Requery ---------------------------------------------------------------------------------------------------ACCOUNTING ENTRIES

1.

BACK TO BACK

S.NO

PARTICULARS

DR

CR

SPL NOTES

ACCOUNT IS PULLED

SPECIFIC

OPTION AVAILABLE

I 1

Back to Back Sales Order Entry No Accounting Creation of Requisition No Accounting Creation of Purchase Order No Accounting Receipt Receiving A/c AP Accrual A/c 100 100 At PO Price At PO Price Receiving Option Setup Inventory Org Setup
ORG ORG

Delivery Raw Material Sub Inventory A/c Pur.. Price Variance A/c Receiving A/c 80 20 100 At Standard Cost Diff between PO Standard At PO Price Sub-inventory Material A/c Setup Inventory Org Setup Receiving Option Setup
SUB-INV ORG ORG

Org Level A/c willl get defaulted

Reservation No Accounting Picking

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Staging Sub Inventory A/c Sub Inventory A/c 8 Shipping Org Level A/c willl get defaulted, OMTT
SUB-INV

80 80

At Standard Cost At Standard Cost

Sub-inventory Material A/c Setup Sub-inventory Material A/c Setup

SUB-INV SUB-INV

Org Level A/c willl get defaulted Org Level A/c willl get defaulted

COGS Staging Sub Inventory A/c

80 80

At Standard Cost At Standard Cost

Item Sub-inventory Material A/c Setup

Org Level A/c willl get defaulted

2. DROP SHIP

PARTICULARS I 1 Drop Ship Sales Order Entry No Accounting 2 Creation of Requisition No Accounting Creation of Purchase Order No Accounting 4 Receipt Receiving A/c AP Accrual A/c 5 Delivery Raw Material Sub Inventory A/c PPV A/c Receiving A/c 6 Reservation No Accounting 7 Picking Staging Sub Inventory A/c Sub Inventory A/c

DR

CR

SPL NOTES

ACCOUNT IS PULLED

SPECIFIC

OPTION AVAILABLE

100 100

At PO Price At PO Price

Receiving Option Setup Inventory Org Setup

ORG ORG

80 20 100

At Standard Cost Diff between PO Stnd At PO Price

Sub-inventory Material A/c Setup Inventory Org Setup Receiving Option Setup

SUB-INV ORG ORG

Org Level A/c willl get defaulted

80 80

At Standard Cost At Standard Cost

Sub-inventory Material A/c Setup Sub-inventory Material A/c Setup

SUB-INV SUB-INV

Org Level A/c willl get defaulted Org Level A/c willl get defaulted

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8 Shipping COGS Staging Sub Inventory A/c 80 80 At Standard Cost At Standard Cost Item Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted, OMTT Org Level A/c willl get defaulted

3. SO-WORKORDER FLOW

PARTICULARS 1 At the time of material issue WIP Material A/c Subinventory material A/c 2 Resource Valuation WIP Resource valuation A/c Resource Absorption A/c 3 Overhead Cost (Material) WIP Material overhead A/c Sub inventory material overhead A/c 4 Overhead Cost (Indirect) WIP Overhead A/c Overhead absorption A/c 5 WIP Job Completion Staging/Completion Subinventory A/c WIP Material A/c WIP Resource valuation A/c WIP Material overhead A/c WIP Overhead A/c WIP Material Variance A/c WIP Resource Variance A/c WIP Material Variance A/c WIP Overhead Variance A/c 5 Picking Staging Sub Inventory A/c

DR

CR

SPL NOTES

ACCOUNT IS PULLED

SPECIFIC

OPTION AVAILABLE

100 100

WIP Class Org/Subinventory

100 100

WIP Class Resource Definition Form

10 10

WIP Class Org/Subinventory

100 100

WIP Class Overheads Definition Form

Std Cost

Org/Subinventory WIP Class WIP Class WIP Class WIP Class WIP Class WIP Class WIP Class WIP Class

Diff bet. Actual STD Diff bet. Actual STD Diff bet. Actual STD Diff bet. Actual STD

100

At Standard Cost

Sub-inventory Material A/c Setup

SUB-INV

Org Level A/c willl get defaulted

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Sub Inventory A/c 6 Shipping Org Level A/c willl get defaulted, OMTT SUB-INV Org Level A/c willl get defaulted 100 At Standard Cost Sub-inventory Material A/c Setup SUB-INV Org Level A/c will get defaulted

COGS Staging Sub Inventory A/c

100 100

At Standard Cost At Standard Cost

Item Sub-inventory Material A/c Setup

4. INTER ORG/INTERNAL SALES ORDERS

SR.NO 1

PARTICULARS FOB Point is set to Receipt without Charges & Freight - Using Transaction Type - In transit Entry at the time of ISSUE Intransit Inventory A/c ( Sending Org ) Sub Inventory A/c ( Sending Org ) Entry at the time of RECEIPT InterOrganization Receivable( Sending Org ) Intransit Inventory A/c ( Sending Org ) Sub Inventory A/c ( Receiving Org ) InterOrganization Payable ( Receiving Org ) FOB Point is set to Receipt with Charges & Freight - Using Transaction Type - Intransit Entry at the time of ISSUE Intransit Inventory A/c ( Sending Org ) Sub Inventory A/c ( Sending Org ) Entry at the time of RECEIPT InterOrganization Receivable( Sending Org ) Intransit Inventory A/c ( Sending Org ) InterOrganization Receivable( Sending Org ) Freight Expense A/c ( Sending Org ) InterOrganization Receivable( Sending Org ) InterOrg. Transfer Credit ( Sending Org ) Subinventory A/C (Receiving Org)

DR

CR

SPL NOTES

ACCOUNT IS PULLED

SPECIFIC

100 100

At Std Cost At Std Cost

Shipping Network Sub-inventory Material A/c Setup

ORG ORG

100 100 100 100

At Std Cost At Std Cost At Std Cost At Std Cost

Shipping Network Shipping Network Sub-inventory Material A/c Setup Shipping Network

ORG ORG ORG ORG

100 100

At Std Cost At Std Cost

Shipping Network Sub-inventory Material A/c Setup

ORG ORG

100 100 15 15 10 10 100

At Std Cost At Std Cost

Shipping Network Shipping Network Shipping Network At Transaction Level Shipping Network Shipping Network Sub-inventory Material A/c

ORG ORG ORG ORG

At Std

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Cost Purchase Price Variance(Receiving Org) InterOrganization Payable (Receiving Org) FOB Point is set to Shipment without Charges & Freight - Using Transaction Type - Intransit Entry at the time of ISSUE InterOrganization Receivable (Sending Org) Sub Inventory A/c ( Sending Org ) Intransit Inventory A/c (Receiving Org) Inter - Organization Payable (Receiving Org) Entry at the time of RECEIPT Sub Inventory A/c (Receiving Org) Intransit Inventory A/c (Receiving Org) 100 100 At Std Cost At Std Cost Sub-Inventory Material A/c Setup Shipping Network ORG ORG 100 100 100 100 At Std Cost At Std Cost Shipping Network Sub-inventory Material A/c Setup Shipping Network Shipping Network ORG ORG ORG ORG 25 125 Setup Shipping Network Shipping Network ORG

Direct InterOrganization Transfer without FOB being Receipt and without transfer credit and freight At Std Cost At Std Cost At Std Cost At Std Cost

InterOrganization Receivable (Sending Org) Sun Inventory A/c (Sending Org) Sub Inventory A/c (Receiving Org) Inter - Organization Payable (Receiving Org)

100 100 100 100

Shipping Network Sub-inventory Material A/c Setup Sub-inventory Material A/c Setup Shipping Network

ORG ORG ORG ORG

Direct InterOrganization Transfer with FOB being Receipt with transfer credit and freight Entry at the SOURCE InterOrganization Receivable (Sending Org) Sub Inventory A/c (Sending Org) InterOrg. Transfer Credit ( Sending Org ) Freight Expense A/c ( Sending Org ) Entry at the DESTINATION Sub Inventory A/c (Sending Org) Purchase Price Variance (Receiving Org) Inter - Organization Payable (Receiving Org) If the Standard Cost is different in Sending & Receiving Org 100 20 120 At Std Cost Sub-inventory Material A/c Setup Shipping Network Shipping Network ORG ORG ORG

120 100 10 10 At Std Cost

Shipping Network Sub-inventory Material A/c Setup Shipping Network At transaction level

ORG ORG ORG ORG

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Entry at the time of ISSUE Intransit Inventory A/c (Sending Org) Sub Inventory A/c (Sending Org) Entry at the time of RECEIPT Sub Inventory A/c (Receiving Org) Inter - Organization Payable (Receiving Org) Purchase Price Variance (Receiving Org) 120 100 20 At Std Cost Sub-inventory Material A/c Setup Shipping Network Shipping Network ORG 100 100 At Std Cost At Std Cost Shipping Network Sub-inventory Material A/c Setup ORG ORG

5. PROCURE TO PAY
PARTICULARS Creation of Requisition No Accounting Creation of Purchase Order No Accounting Receipt Receiving A/c AP Accrual A/c Delivery Raw Material Sub Inventory A/c PPV A/c Receiving A/c Invoice matching with PO AP Accrual Liability A/c Invoice Price Variance A/c AP Liability A/c 6 On making Payment Liability A/c Cash DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC

100 100

At PO Price At PO Price

Receiving Option Setup Inventory Org Setup (Org Level A/c will get defaulted) Sub-inventory Material A/c Setup Inventory Org Setup Receiving Option Setup

ORG ORG

80 20 100

At Standard Cost Diff between PO - Stnd At PO Price

SUB-INV ORG ORG

100 10 110

At PO Price Diff between Invoice PO AT INV Price

Receiving Option Setup Inventory Org Setup Financial Options/Supplier Site

ORG ORG

110 110

At Invoice Price At Invoice Price

Financial Options/Supplier Site Bank A/c Setup

6. Order To Cash Cycle


PARTICULARS Sales order entry No Accounting DR CR SPL NOTES ACCOUNT IS PULLED OPTION AVAILABLE

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2 Sales Order Pick Sub-inventory Material A/c Setup Sub-inventory Material A/c Setup

From Sub Inventory A/c To Sub Inventory A/c 3 Sales Order Issue 100

100

At Standard Cost At Standard Cost(Staging)

ORG ORG

COGS To Sub Inventory A/c 4 Transaction level Receivable A/c

100 100

It can be fetched from five places At Standard Cost

Master Item/Org/Order Type/Line Type/Shipping Parameters Sub-inventory Material A/c Setup

Master org/shipping parameters/order type/Inv org

120

Transaction type

sales rep/customer site Transaction type/sales reps/customer bill to site/Standard lines sales rep/customer bill to site/standard lines sales rep/customer bill to site/standard lines

Tax A/c Freight A/c Revenue A/c Receipts Receipts with no remittance method

10 10 100

Tax codes Transaction type Transaction type

Cash Unapplied A/c

100 100

Before application of the receipt

Receipt class Receipt class

Bank Definition Form Bank Definition Form

Unapplied A/c Receivables A/c Cash A/c

100 100 100

After application of the receipt to the transaction

Receipt class Receipt class Receipt class

Bank Definition Form Bank Definition Form Bank Definition Form

Unidentified A/c

100

In case of receipt without customer or transaction when customer indentified

Receipt class

Bank Definition Form

Unidentified A/c Unapplied A/c Receipts with remittance method.

100 100

Receipt class Receipt class

Bank Definition Form Bank Definition Form

Confirmed receipts A/c Unapplied A/c

100 100

At the time receipt entry

Receipt class Receipt class

Bank Definition Form Bank Definition Form

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On remittance to bank 100 On clearance of cheque 100

Remitted receipts A/c Confirmed receipts A/c

100

Receipt class Receipt class

Bank Definition Form Bank Definition Form

Cash Remitted receipts A/c Receipts with discount/unearned discounts

100

Receipt class Receipt class

Bank Definition Form Bank Definition Form

Cash Discount earned A/c Receivable A/c

90 10 100

At the time earned discounts

Bank Receivable activity Transaction Type

Cash Discount unearned A/c Receivables A/c

90 10 100

At the time of unearned discount

Bank Receivable activity Transaction type

7. Adjustments in AR
PARTICULARS Adjustments Adjustment A/c Receivable A/c DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

100 100

Receivable activity Transaction type

Sales Rep/Customer Site

8. STANDARD COST UPDATE


PARTICULARS Inventory Std cost update Sub Inventory A/c Cost Adjustment A/c 2 Intransit material Std Cost Update Intransit Inventory A/c Cost Adjustment A/c 100 100 Shipping Network At the Standard Cost update request level ORG DR CR ACCOUNT IS PULLED

SPECIFIC

100 100

Sub-inventory Material A/c Setup At the Standard Cost update request level

ORG

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3 WIP Material Std Cost Update WIP Material A/c WIP Material Variance A/c 100 100 WIP Accounting Class WIP Accounting Class

9. Miscellaneous Receipts in AR
PARTICULARS 1 Miscellaneous Receipt at receivables Accounting Entered Receipt Amount 100 Bank Account Definition Receivable activity DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Cash Misc Cash A/c Miscellaneous Issue/Receipt At Inventory Issue

100

Bank(Internal) Distribution set

Misc Issue A/c Sub Inventory A/c Receipt Sub Inventory A/c Misc Receipt A/c

100 100

At Misc Issue form level Org/Subinventory level

ORG

100 100

Org/Subinventory level At Misc receipt form level

ORG

10. MISC PAYMENTS OPTION AVAILABLE

PARTICULARS

DR

CR

SPL NOTES A dummy Misc.Vendor is created for this purpose and the details are captured in the DFF.

ACCOUNT IS PULLED

On entering a Misc.Invoice

Charge A/c Liability A/c 2 On making the Payment

100 100

Distribution Set/PO charge A/c From the supplier site Financial Options

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Financial Options

Liability A/c Cash On making Payment (when Cash Mgmt is implemented) On Payment Liability A/c Cash Clearing A/c On Clearing Cash Clearing A/c Cash

100 100

From the Supplier site From the Bank A/c's Definition

100 100

From the supplier site From the Bank A/c's Definition

Financial Options

100 100

From the Bank A/c's Definition From the Bank A/c's Definition

11. Manual WorkOrder


OPTION AVAILABLE

PARTICULARS At the time material issue WIP Material A/c Sub Inventory A/c

DR

CR

SPL NOTES

ACCOUNT IS PULLED

100 100 At Standard Cost

WIP Class Sub-inventory Material A/c Setup ORG

Resource Valuation WIP Resource valuation A/c Resource Absorption A/c

100 100

WIP Class Resource Definition Form

Overhead Cost (Material) WIP Material overhead A/c Sub inventory material overhead A/c

10 10

WIP Class Org/Subinventory ORG

Overhead Cost (Indirect) WIP Overhead A/c Overhead absorption A/c

100 100

WIP Class Overheads Definition Form

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Outside Processing (In case of fixed standard cost to resource) WIP OSP A/c Variance A/c Resource A/c 100 95 5 WIP Class Resource Definition Form Resource Definition Form Org Parameters Receiving Options

Oracle AIM
Oracle's Application Implementation Methodology (AIM)

1. DEFINITION - KICK OFF MEETING FEASIBILITY PROJECT PLANNING RESOURCES AS IS - BP 40- Mapping Current Business Process 2. TO BE PROCESS LEVEL BP 80- MAPPING CURRENT BP IN ORACLE(BP- BUSINESS PROCESS)

3. TRANSACTION LEVEL RD 20 TRANSACTION LEVEL RD 30- MAPPING WITH ORACLE RD 20 4. SOLUTION DESIGN GAPS, WORK AROUND, CUSTOMISATION, EXTENSION, PERSONALIZATION GAP ANALYSIS (IF CUSTOMISATION) MD50(functional) & MD70(technical)

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J. Sureshraja M.com., MBA., CA (f).,

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MD 50 (REQUIREMENTS GIVEN TO TECHNICAL) MD 70 (RECEIVE SOLUTIONS FROM TECHNICAL) 5. BUILD (Development,TEST,Production) (PTP, OTC) BR 100 SETUP DOCUMENT 6. TRANSACTION- TRAINING,CRP,UAT,CUSTOMER POINT, TE 20- UNIT TEST (ONE MODULE TEST) TE 40- INTEGRATION TEST (OVERALL MODULES) 7. GO LIVE Production Support

ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,