AR Upgrade Considerations

8/12/2019 AR Upgrade Considerations

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ORACLERECEIVABLES

Release 12 Upgrade Considerations


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AGENDA

Balance Forward Billing

Credit Card Chargeback

Legal Entity

eBusiness Tax

Subledger Accounting inReceivables

Obsolescence andReplacement of Features

Centralized Payment

Process

Automated Refunds

AP/AR Netting

Daily Revenue

Revenue Contingencies

COGS and RevenueMatching

Multi-Org Access Control


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AGENDA



Legal Entity

eBusiness Tax



Centralized Payment

Process

Automated Refunds

AP/AR Netting

Daily Revenue





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NEWANDCHANGEDFEATURESFORBALANCEFORWARDBILLING

Balance Forward Billing provides enhanced billing options thatreplace the consolidated billing functionality of prior releases witha more complete and flexible solution.


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BALANCEFORWARDBILLINGDESCRIPTION

Generate bills based on new Billing Cycles

Easily create daily, weekly, monthly, bi-monthly, quarterly, andannual billings

Bill on specific days of the month, or days of the week

Choose to exclude weekends Consolidate billing activity at the level of customer Account

or Site

Consolidated activity across account sites, or by each billing site

Not all billing sites need to consolidate their invoices, or be

included in account level billing specific invoices can be excluded from the Bill


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BALANCEFORWARDBILLINGDESCRIPTION

Enhanced viewing and printing

Bill Presentment Architecture (BPA) configured formats provide amore appealing layout that can be easily modified

View the completed bill online

Streamline processing with fewer programs to run andmaintain

Three programs compared to five used by consolidated billingfeature


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BALANCEFORWARDBILLINGBENEFITS

Increased flexibility provides billing consistent with businesspractices and customer needs

Expanded billing period definitions, varied levels of consolidation,exclusion of specified invoices, unlimited print formats

Clearer communication with the customer User views the balance forward bill online exactly as the customer

sees it

Improved accuracy of Aging

All invoices on the same bill have the same

due date, guaranteeing the individualinvoices will age simultaneously


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BALANCEFORWARDBILLINGSETUPANDPROCESS

Define

Payment Term andassign Billing Cycle

EnableBalance ForwardBilling for Customer

Account or Site

Manually CreateTransactions

ImportTransactions

Automated process

DefineBilling Cycle

SETUP PROCESS

Run GenerateBalance ForwardBill Program

Run ConfirmBalance ForwardBills Program

Run BPABalance ForwardPrint Program


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BALANCEFORWARDBILLINGSETUPDEFINEBILLINGCYCLE

When setting up Balance Forward Billing: For Daily, choose how often and whether to use work days

only

For Weekly, choose how often and day of week

The form changes based on the Frequency you choose.


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BALANCEFORWARDBILLINGSETUPDEFINEBILLINGCYCLE

When setting up Monthly Balance Forward Billing Cycles: Choose the number of months to create bi-weekly, quarterly or bi-

annual billing Choose a specific date or multiple dates Choose to create exclude weekends


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BALANCEFORWARDBILLINGSETUPDEFINEPAYMENTTERM

Billing Cycle is a new attribute of the Payment term

A billing cycle must be assigned to the payment term toprocess balance forward billing.

Not updateable if the payment term has been used

Cutoff Date information is setup on the billing cycle


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BALANCEFORWARDBILLINGSETUPCUSTOMERPROFILECLASS

The Profile Class tab includes:

Ability to enable:

Bill Level

Account, Site

Type

Summary, Detail, Imported (if Level = Site)

Payment Term

Balance Forward (if Enabled), Non-Balance Forward (if notenabled)

Override Terms

Default term can be updated


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BALANCEFORWARDBILLINGSETUPACCOUNT& SITEPROFILE

You must enable Balance Forward at Account and SiteProfile

The Bill Level is set ONLY at the Account level

Allow override of terms to exclude invoices from the bill


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BALANCEFORWARDBILLINGSETUPACCOUNTLEVELBILLEXAMPLE

UseUse

Ignore

Bill Level

Primary Bill-To


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BALANCEFORWARDBILLINGSETUPSITELEVELBILLEXAMPLE

Use

UseIgnore

Bill Level


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ORACLEBPA RULESSETUP

Rules for Balance Forward Bills use the Primary DataSource of Oracle Receivables Balance Forward

Use existing BPA templates or create your own

For the same print formatting as Consolidated Bills, use the

attribute Display Format


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BALANCEFORWARDBILLINGPROCESSENTERTRANSACTION

Payment Term defaults:

from Site profile if Bill Level = Site

from Account profile if Bill Level = Account

Billing Date is derived from transaction date and billing cycle

Due Date is derived from billing date and payment term

Select non-Balance Forward term if Override Terms = Yes


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BALANCEFORWARDBILLINGPROCESSIMPORTEDTRANSACTIONS

AutoInvoice derives the billing date

Billing Date is a new mandatory grouping rule

Billing Date value is mandatory if cycle = External

Transaction API derives the billing date

Billing Date value is mandatory if cycle = External

Legacy Invoices must be imported with specific billing dateif the seeded External cycle is assigned to the paymentterm

Imported Billing Number feature used by OKL and legacysystems is still supported and does not use the balanceforward programs


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BALANCEFORWARDBILLINGPROCESSCREATINGBILLS

Generate Balance Forward Bills program

Replaces Print Draft Consolidated Billing Invoices

Replaces Print New Consolidated Billing Invoices

Confirm Balance Forward Bill program

Replaces Accept Consolidated Billing Invoices Replaces Reject Consolidated Billing Invoices

BPA Balance Forward Print Program

Replaces Reprint Consolidated Billing Invoices


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BALANCEFORWARDBILLINGPROCESSGENERATINGBILLLOGIC


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BALANCEFORWARDBILLINGUSECASES

Case 1:

Billing Cycle = 10th of every month

Last Bill Generated = Dec 10, 2004

Todays Run Date = Jan 12, 2005

1 bill generated for Jan 10, 2005

Case 2:

Billing Cycle = 10th of every month

Last Bill Generated = Dec 10, 2004

Todays Run Date = Jan 8, 2005

No bill generated

Run date must be Jan 10, 2005 or later


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BALANCEFORWARDBILLINGPROCESSGENERATEBILLPROGRAM

Generate Balance Forward Bills Program Parameters:

Choose Print Option

Draft bill

Final bill

Print Output

Default Yes calls the BPA Print Program

Must be Yes to view online

No, if plan to print later Specify Billing Cycle

This limits customer and available payment terms to chose from


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BALANCEFORWARDBILLINGPROCESSCONFIRMBILL

Program Parameters for confirming a bill include:

Confirm Option

Accept

Reject

Concurrent Request ID ID from Generate Run

Allows batch confirmation

Required if no other parameters selected

Use other parameters to limit the bills affected


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SUMMARYBALANCEFORWARDBILLEXAMPLE


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DETAILBALANCEFORWARDBILL

All lines foreach invoice

Balance andSummary information


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BALANCEFORWARDBILLINGPROCESSBPA PRINTPROGRAM

BPA Print Program:

Can be initiated from Generate Program

Print draft bills

Print final bills

Can be used to Reprint Select specific bill number, batch or customer


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BALANCEFORWARDBILLINGPROCESSDISABLEPAYMENTTERMS

To bill the existing invoices:

Generate a final balance forward bill that picks up existingtransactions

Change the payment term on all existing transactions to a non-balance forward billing payment term

To bill future invoices:

Change the default payment term on the customer account

Disable balance forward billing at the siteand change the default payment term


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BALANCEFORWARDBILLINGPROCESSCHANGEPAYMENTTERMS

Change the billing cycle for a customer by changing thepayment term on the customer profile

Existing transactions with the old payment term, billing date,and due date are picked up on the next bill run

Transactions that do not have activity against them inherit thePayment term, billing date, and due date from the new paymentterm

Transactions that have activity do not inherit the new paymentterm, billing date, and due date


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BALANCEFORWARDBILLINGDEPENDENCIESANDINTERACTIONS

Oracle Bill Management

This product provides the user interface and the customerprint format for all Balance Forward Bills

It also provides the rules engine that determines what

print/display format will be used

It delivers seeded rules that perform the same as theconsolidated billing functionality (summary vs. detail)

Users can create new rules and print templates


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BALANCEFORWARDBILLINGFUNCTIONALUPGRADESCRIPT

The upgrade script runs automatically to updateconsolidated billing proxima payment terms to billingcycle terms

It creates cycles based on the cut-off dates of existingproxima terms

It assigns them to the existing payment terms

Balance forward billing payment terms cannot be assigned toTransaction Types and customer Site Uses

If a consolidated (proxima) term was assigned at theselevels prior to upgrade, the upgrade script will override theassignment with a null value


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Enable Balance Forward Billing

Checkbox is enabled at the account and site level for all validatedconsolidated billing customers

If payment term assigned to customer was not updated to billingterms, Enable checkbox is null

Bill Level

Is set to Site level because consolidated billing was only done atthe site level.

Users must update the customer record afterupgrade to create bills at the account level


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TypeNot be changed by the script

Detail or Summary values used by default print formats

Customers with the Type of Imported not be included in the

upgrade

Allow Override of TermsNot changed by the script

Causes different functionality if default payment term is

overridden on an invoice If checked, payment term other than the default can be

assigned to an invoice.


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AGENDA



Legal Entity

eBusiness Tax



Centralized PaymentProcess

Automated Refunds

AP/AR Netting

Daily Revenue





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CREDITCARDCHARGEBACKDESCRIPTION

What is a Credit Card Chargeback?

A credit card chargeback takes place when:

A credit card holder disputes a charge with the credit card company

The credit card company issues a chargeback to the customer for

the disputed amount The credit card company notifies the vendor that they have issued

a chargeback to the customer


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CREDITCARDCHARGEBACKDESCRIPTION

Requestchargeback

Issuechargeback

Requestchargeback

Issuechargeback

Notify vendor that achargeback hastaken place

Register thatthe cardissuer hasissued thecustomer achargeback

Credit CardCompany

Vendor

Customer

Vendor

Customer


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CREDITCARDCHARGEBACKBENEFITS

Reduce costs by automating the credit card chargebackprocess


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CREDITCARDCHARGEBACKPROCESS

ReceiveCredit Card Chargebacknotification

from card issuer

PROCESS

Find Receipt

Applycredit card chargebackactivity

Subtract the amount of thecredit card chargebackfrom the application line

Generates

Chargebackvalid?

Create creditmemo to creditinvoice

Yes

No, Can prove thatthe chargeback was

invalid

Find Receipt

Restore the originalamounton the application line

Un-apply thecredit card chargebackactivity

TheNegative

Misc.Receipt

Reverses

NegativeMisc.Receipt


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CREDITCARDCHARGEBACKPROCESS

The process to record a credit card chargebackconsists of three steps:1. Receive Receipt

2. Record Credit Card Chargeback

3. Validate Credit Card Chargeback acknowledge the credit card chargeback or

prove the credit card chargeback to be invalid


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CREDITCARDCHARGEBACKPROCESSRECEIVERECEIPT

Vendor

Credit CardCompany

Customer

Placeorder for$100

Notifyreceipt of$100

Create Invoice DR Receivables $100 CR Revenue $100

Receive Receipt DR Cash $100 CR Unapplied $100

Apply to Invoice DR Unapplied $100 CR Receivables $100


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CREDITCARDCHARGEBACKPROCESSRECORDCREDITCARDCHARGEBACK

Chargeback Process for Vendor:

1. Find receipt

2. Un-apply the receipt

3. Decrease the value on the receipt application line to $75

4. Apply $25 to receipt activity Credit Card Chargeback(creates a negative misc. receipt of $25)


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CREDITCARDCHARGEBACKPROCESSVALIDATECREDITCARDCHARGEBACK

The vendor can either: Acknowledge the credit card chargeback or

Prove the credit card chargeback to be invalid


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Vendor acknowledges the credit card chargeback

Vendor

Credit the invoice by creating a creditmemo DR Revenue $25 CR Receivables $25


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Vendor proves the chargeback to be invalid

Vendor

Credit CardCompany

Prove thatchargebackwas invalid

Agree thatchargebackwas invalid

Un-apply the credit card chargeback DR Credit Card Chargeback $25 CR Unapplied $25

Misc. receipt is automatically reversed DR Cash $25 CR Credit Card Chargeback $25

Reapply the receipt DR Unapplied $25 CR Receivables $25


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CREDITCARDCHARGEBACKSETUP

CreateReceivables Activityof type Credit Card

Chargeback

SETUP


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AGENDA



Legal Entity

eBusiness Tax




Automated Refunds

AP/AR Netting

Daily Revenue





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LEGALENTITYBACKGROUND

Legal Entity identifies the legal owner of a debt or anasset

Oracle Applications did not have an object called LegalEntity in 11i

Different representations of Legal Entity throughoutOracle Applications

Ambiguous representations left the concept open tomisuse and misinterpretation

R12.0 Legal Entity solution provides a centralized,

secure setup that is used across the E-Business Suite forreporting and other legal compliance


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LEGALENTITYMODEL

Inv Org = Inventory OrganizationOU = Operating UnitBG = Business Group

Nodirectrelationship

XLegal Entity

Ledger

OU

Inv Org

BankAccount

BG

Primary


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LEGALENTITYBACKGROUND

Trading Community Architecture (TCA) is used to modelLegal Entities

Legal Entities are considered Parties

First Party and Third Party Legal Entities are involved in a

transaction LE uptake pertains to the First Party Legal Entity only


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LEGALENTITYDESCRIPTION

Legal Entity information is available in all ReceivablesWorkbenches

Receivables stamps each transaction and receipt headerwith the Legal Entity

The user may be required to select or update the LegalEntity assignment

Each transaction belongs to only one Legal Entity

Assigning Legal Entity to all transactions enables taxcalculation, supporting the centralized tax solution


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LEGALENTITIESANDACCOUNTING

Legal Accounting Environment Type: Exclusive

Ledger records the accounting for one Legal Entity

Ledger mapped to LE

Legal Accounting Environment Type: Shared Ledger records the accounting for more than one Legal Entity

Balancing Segment Valuesmapped to LE

BSV = Balancing Segment Value

Legal Entity Ledger

Legal Entity

LedgerBSV


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LEGALENTITIESANDSHAREDACCOUNTING

Ledger

OU 2OU 1

BSV 67

LE 2LE 1

LE = Legal EntityBSV = Balancing Segment ValueOU = Operating Unit

BSV 15


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LEGALENTITYDESCRIPTIONDEFAULTINGFORTRANSACTIONS

Exclusive vs. Shared Accounting Environment:

Exclusive: Single Legal Entity (LE) assigned to Ledger

LE derived from Operating Unit

The LE value cannot be updated

Shared: Legal Entities share the same Ledger Users must set up the hierarchy to derive LE

The default LE can be updated by the user


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LEGALENTITYDESCRIPTIONDEFAULTINGFORRECEIPTS

Remittance or Internal Bank Account linked to Legal Entity

Bank Account is assigned to Receipt Method

Receipt Method is required on all receipts

ReceiptMethod

ReceiptHeader

BankAccount

LegalEntity

Default LE


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LEGALENTITYBENEFITS

Effectively supports central initiative for legal complianceand flexible business management

Stamping identifies the owning legal entity on legal documentsaccounted for in Oracle Applications

Easily manages transactional data by legal entity Tracking data from the legal perspective enables detailed reporting

at legal entity, establishment, and registration level

Accurately provides tax calculation for legal entity

Assists with enforcement of tax calculation

and reporting for all jurisdictions


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LEGALENTITYSETUPANDAUTOMATEDPROCESS

UpdateTransactionBatch Source

AutoInvoiceLE Not Passed

Assign LE toinvoice line

LE exist on

TransactionType?

Create invoice

User updateLE value for lines

No

Yes

Automatedprocess

UpdateTransactionType

SETUP PROCESS

LE exist onBatch Source?

Group linesby LE

Generate Error

Yes

No

Shared AccountingEnvironment Only

Is LE Valid?

No


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LEGALENTITYSETUPUPDATEBATCHSOURCE

Query transaction

Batch Source

Select Legal Entity value

If the source of the transaction typically indicates the legal

owner of a transaction, then assign the Legal Entity to thebatch source within the organization.


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LEGALENTITYPROCESS- AUTOINVOICE

Importing invoices

AutoInvoice assumes the LE is correct, if it is active

If LE is not passed, AutoInvoice attempts to default the LE

AutoInvoice Validation report displays Invalid Legal Entity

If Legal Entity is not valid, or

If Legal Entity cannot be determined

User corrects errors via the Interface LinesForms


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After Import

If the invoice can be incompleted, you can update thedefaulted value in a shared-accounting environments

The invoice must have no activity, not be posted and not printed

If System Option Allow Change to Printed Transactions is turnedon, Receivables still does not allow changes to LE

If you change the LE value, the eTax engine recalculatestax


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Importing Regular Credit Memos Credit memo LE should be same as LE of the original

invoice

If feeder system does not pass LE, AutoInvoice stamps

credit memos with same LE of original invoice If LE is inactivated between invoice import and credit

memo import, the credit memo is created with theinactive LE

You cannot update a system stamped value

Legal Entity is a new mandatory grouping rule


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LEGALENTITYPROCESSMANUALTRANSACTION

If an invoice is created manually, the default hierarchydetermines which LE is assigned to a transaction.

If none is found, you must assign one before continuing to createan invoice.

The LE can be changed as long as the invoice isincomplete.

The standard rules for completing an invoice still pertain, except ifthe invoice has been printed, the LE cannot be changed regardlessof the Allow Changes to Printed Invoices System Option.


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LEGALENTITYPROCESSONACCOUNTCREDITMEMOS

The application of On-Account Credit Memos performsmuch the same as in 11i

Application must be to transactions in the same OperatingUnit

Application across Legal Entities is allowed as long as alltransactions are of the same OU

When cross-Legal Entity applications occur, SLA performsinter-company accounting


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LEGALENTITYPROCESSBILLSRECEIVABLE

Bills Receivables use same logic as transactions forstamping the LE

Manual Assignments are limited to transactions that arestamped with the same LE as the BR

LE is mandatory selection and batching criteria during BillsReceivable Batching process

If LE on the transactions are different, then multiple BRs arecreated.

If a BR is exchanged for another BR, they

must belong to the same LE


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LEGALENTITYPROCESS- RECEIPTS

All receipts inherit the LE from the bank account: Manual, Automatic, Lockbox and Post Quick Cash

Programs Refunds automatically inherit LE from the original receipt LE is mandatory selection and grouping criteria for

transaction during automated receipt batch creationprocess

Receipt application across Legal Entities is allowed if thereceipt and transactions are in same OU

SLA performs inter-company accounting for cross-LE

receipt applications or cross-LE receipt clearing

L E P C LE


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LEGALENTITYPROCESSCLAIMLEDEFAULTING

LE Default

Data Flow

ReceiptMethod

ReceiptHeader

BankAccount

LegalEntity

ReceiptApplication

InvoiceClaim

Non-InvoiceClaim

Invoice

ClaimResolution


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IMPLEMENTATIONCONSIDERATIONS

Are there business flows in your organization that need acentralized setup to be used across the E-Business Suitefor reporting and other legal compliance?


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AGENDA



Legal Entity

eBusiness Tax




Automated Refunds

AP/AR Netting

Daily Revenue





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E-BUSINESSTAX

Central application that manages the following for all E-Business Suite products:

Tax setups

Enforcement of tax rules, regulations, and legislation

Tax data

Tax reporting

Generic integration point for third-party tax products andservices (Taxware, Vertex, etc)


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RECEIVABLESE-BUSINESSTAXINTEGRATIONKEYBENEFITS

Centralized setup, maintenance, and reporting of tax.

Centralized control over the applicability of tax and taxrate(s) based on user-defined rules.

Rapid adoption of new rates or rules based on changes

to local tax laws or rates using centralized setups andincluded test utilities.

Consistent taxation across Oracle products, operations,and business lines.

Open interface for integration to Taxware,

Vertex, or other vendors and products.

E BUSINESS SUITE TAX PRIOR TO RELEASE


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E-BUSINESSSUITETAXPRIORTORELEASE12

Payables

TaxEngine

DataRepository

TaxReporting

Receivables

TaxEngineData

Repository

TaxReporting

Tax PartnerTax Content Tax Services

Other Applications

TaxEngineData

Repository

TaxReporting

E-BUSINESS SUITE TAX INTEGRATION


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E-BUSINESSSUITETAXINTEGRATION12.0

TaxAdministrationServices

TaxContentServices

TaxDeterminationServices

Partner Tax

ServicesInterface

Partner Tax

ContentInterface

Tax Services Request Manager

Tax ServicesTax ContentTax Partner

Services

Oracle E-Business Tax

ContentRepository

Record

Repository

E-Business Suite

Transaction Tax DataTransaction Data

ARCHITECTURE OF A TAX LINE IN E BUSINESS


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ARCHITECTUREOFATAXLINEINE-BUSINESSTAX

Tax lines require all of the following: Tax Regime (UK VAT, US Sales Tax, etc.)

Tax (UK VAT, US State Sales Tax, etc.)

Tax Status (Standard, Zero Rated, Exempt)

Tax Jurisdiction (UK VAT, Quebec PST, etc.) Tax Rate (0%, 5%, 10%, 17.5%, 30%, etc.)


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EXAMPLEOFUS SALESTAXIN12.0

TaxRegime

TaxTaxStatus

TaxRate

OperatingUnit Tax

Accounts

Regime Tax Jurisdiction Status Rate Account

US Sales

Tax

State

Sales

Tax

California

State Sales

Tax

Standard 7.25% 01.005.004.033

US Sales

Tax

County

Sales

Tax

San Mateo

County

Sales Tax

Standard 1.0% 01.005.004.033

US Sales

Tax

City

Sales Tax

Belmont

City Sales

Tax

Standard 0% 01.005.004.033

TaxJurisdiction

Flows

Optional Flows


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EXAMPLEOFUK VAT TAXIN12.0

Flows

Optional Flows

TaxRegime Tax

TaxStatus

TaxRate

Regime Tax Jurisdiction Status Rate Recovery

UK VAT UK VAT UK VAT Standard 17.5% 100%

UK VAT UK VAT UK VAT Reduced 8.0% 100%

UK VAT UK VAT UK VAT Zero Rated 00%

UK VAT UK VAT UK VAT Exempt 00%

TaxJurisdiction

Operating

Unit TaxAccounts

RecoveryRate


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MIGRATINGTAXESFROM11.5 TO12.0

Migrated tax setups:

Tax Definition Hierarchy

Tax Configuration Ownership

AR Tax Defaulting Hierarchy

AR Tax Codes/Groups

Location Based Tax

AR System Options for Tax

Tax profiles

Migrated Tax (Transactional) Data

Invoice, Credit memo tax linesAssociated adjustments and receipt discounts

MIGRATING OF TAX CODES AND TAX GROUP


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MIGRATINGOFTAXCODESANDTAXGROUPCODES

Tax Codes

AA, BB

Tax GroupCodes

CC

Tax RateCodes

AA, BB, CC Tax Rule

AA, BB, CC

Output TaxClassificationCodes

AA, BB, CC


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USEOFTAXRATECODESINRECEIVABLES

Tax rate codes correspond to 11.5 tax codes

Specific numeric rate

Link to GL accounts (within E-Business Tax)

Assigned where a numeric rate is required for offline (non-recoverable) tax calculations

Receivable Activities (nonrecoverable adjustments, discounts,misc receipts)

USE OF TAX CLASSIFICATIONS IN


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USEOFTAXCLASSIFICATIONSINRECEIVABLES

Tax classifications are used to identify specific(legacy) tax calculations Simple lookup code, contains no tax-specific settings Used to prompt or seed specific tax calculations for

transactional data in eBusiness Tax Transaction Lines form Memo Lines setup form Customer (TCA) setup

Tax classifications are a legacy elementthey

only exist for migrated taxes, not new or pure R12tax setups.


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SETTINGUPNEWTAXESINE-BUSINESSTAX

Tax Configuration tab

Tax Manager responsibility

New tax definitions include:

Jurisdiction, Regime, Status, Tax, and Tax Rate

Tax rules (determine applicability of tax) Tax accounts

Test your setups using the Tax Simulator


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SETTINGUPNEWTAXESINE-BUSINESSTAX

Set up on the Tax Configuration form:

Tax Regimes ( UK VAT, US Sales Tax, etc.)

Taxes ( UK VAT, US State Sales Tax, etc.)

Tax Statuses (Standard, Zero Rated, Exempt, etc.)

Tax Jurisdictions (UK VAT, Quebec PST, etc.)

Tax Recovery Rates (100%, 50%, etc.)

Tax Rates (0%, 5%, 10%, 17.5%, 30%, etc.)

Tax Rules (Determine Tax Applicability, Place of Supply,

etc.)


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RECEIVABLESSPECIFICTAXSETUPS

Receivables Specific Tax Setups: System Options

Customer

Transaction type

Receivables activity Standard memo lines


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SYSTEMOPTIONS

Most of the tax setups that used to reside on the SystemOptions form have been migrated to theE-Business Tax Product Options form.

Options that now appear on the E-Business Tax Product

Options form include: Tax defaults

Hierarchy information

Rounding information


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CUSTOMERTAX

The Tax Profile tab includes Tax setups related tospecific customer accounts or sites, including: Tax rounding

Registration

Reporting Fiscal classification

Customer exemption


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TRANSACTIONTYPE

The tax classification field on the transaction lines form isnow optional

When selected, the tax classification is defaulted on eachtransaction line based on the migrated tax hierarchy

The requirement for tax lines on the transaction is nowmonitored by E-Business Tax so transactions without taxlines will no longer raise errors when saved or completed


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RECEIVABLESACTIVITY

Receivables Activities form

The Tax Code on the previous versions of this form wasreplaced with Tax Rate Code

The numeric rate associated with this tax rate is used to calculate

non-recoverable taxes internally within Receivables. New multi-line area on the form where you can associate

the correct tax rates for each supported Legal Entity

ADJUSTMENTS RECEIPT DISCOUNTS AND


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ADJUSTMENTS, RECEIPTDISCOUNTS,ANDRECOVERABLETAX

Adjustments and Receipt Discounts are recoverablewhen the receivable activity contains the following:

Tax code source = Invoice

Recoverable checked

When an adjustment or discount is recoverable,Receivables calls E-Business Tax to:

Prorate the activity between tax and lines

Record the activity in the tax repository

This means that recoverable activities decrease your tax

liability. Non-recoverable activities are not reflected in thetax repository or your tax reporting.


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STANDARDMEMOLINES

Standard Memo Lines Form:

Tax code is now Tax Classification

May be defaulted on transaction lines based on your tax defaultinghierarchy

New Tax Product Category field Defaulted on your transaction lines and passed to E-Business Tax

during tax calculations

Used to determine the correct taxes to apply and tax amounts due


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LEGALENTITYANDSHIPTO

Legal Entity is required on all transactions and receipts Defaulted from transaction type, batch source, organization

Credit memos default legal entity from target transaction

Adjustments assume legal entity from target transactions

Receipts default legal entity from remittance bank account Ship to customer and address information can now be

recorded at the line-level

Ship to is now an optional grouping rule for transactions

A transaction can have multiple ship-to addresses


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TRANSACTIONSANDMIGRATEDTAXES No change to taxes migrated from previous releases

Same rate as previously defined (now a tax rate code) Same tax accounts (migrated to E-Business Tax)

Tax classification defaults on each line using hierarchy

User can specify tax classification manually for each line

Resulting tax calculation will be identical to pre-12.0

Note: Tax calculation only occurs for migrated taxes ifthe output tax classification is present on the invoiceline.

TRANSACTIONS AND MIGRATED TAXES:


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TRANSACTIONSANDMIGRATEDTAXES:KEYDIFFERENCES

Transaction type no longer enforces existence of tax lineson your transactions

Presence or absence of tax classification does not dictatetax calculations

The ability to enter manual tax lines or modify existing taxlines now controlled by E-Business Tax

Credit Memos always use E-Business Tax for taxcalculations


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TRANSACTIONSANDNEWTAXES

New taxes are calculated based on:

Applicability (tax rules) defined in E-Business Tax

Content of the transaction in Receivables

NOTE: Tax classification is not required or used for non-migrated

taxes Calculation is entirely hands-free


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TRANSACTIONSANDMANUALTAXES

Tax Lines Form: Can be displayed from either the transaction header or

transaction lines forms

Use to:

Enter a manual tax line Override an existing tax line

Manual tax lines now require the following information: Regime

Tax

Jurisdiction Status

Rate


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E-Business Tax was designed around a robust and flexiblerule-based applicability feature.

When properly configured, the E-Business Tax engineshould be able to determine the correct taxes based oncustomer, location, item, or any combination of dozens ofother transaction attributes.

The decision for the applicability of any given tax shouldmade during setup and testing, not during transaction entry.


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AGENDA

Balance Forward Billing Credit Card Chargeback

Legal Entity

eBusiness Tax

Subledger Accounting in

Receivables Obsolescence and

Replacement of Features


Automated Refunds AP/AR Netting

Daily Revenue


COGS and Revenue

Matching Multi-Org Access Control


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SUBLEDGERACCOUNTINGOVERVIEW

Rule-based accounting engine, toolset & repository

Allows multiple accounting representations for a singlebusiness event

Common data model and UI across subledgers

Supports all 11i functionality


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SUBLEDGERACCOUNTINGBENEFITS

Enable compliance with multiple legislative, industry orgeography requirements concurrently in a single instancethrough configurable rules

Increase transparency and enable full audit of thetransaction and accounting data through the new datamodel

Improve accounting reconciliation

SUBLEDGERACCOUNTINGINRECEIVABLES


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OVERVIEW

Receivables predefines setup data to maintain R11ifunctionality

Default accounting that Auto Accounting creates isinterim accounting only. You must refer to SLA for

your accounting entriesReceivables distribution is no longer your accounting. It is

used as a source for predefined accounting derivation rule

SLA creates accounting and SLA transfers

accounting entries to GLObsolete: General Ledger Interface concurrent program

Obsolete: CCID Corrections Form

New: Submit Accounting concurrent program



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BENEFITS

Multiple accounting representations Legal and Management reporting

Accrual and Cash Basis accounting

Multi-Fund Receivables accounting

Infrastructure to support new feature:

Line Level Cash Application



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PROCESSSUBMITACCOUNTINGPROGRAM

Submit Accounting Program: Receivables concurrent program to create accounting

entries in SLA

When you run Submit Accounting, the Revenue Recognition

program is automatically run before creating accountingentries in SLA

You can choose to create draft accounting or finalaccounting.



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PROCESS CREATE/VIEWACCOUNTING

You can create and view accounting entries fromReceivables transactions and receipts workbenches

To create accounting for transactions, run the SubmitAccounting concurrent program

To create accounting online go to Tools>Create Accountingon the transactions workbench or receipt workbench.

To view accounting entries for a transaction, bring up thetransaction, and then go to Tools>View Accounting

RECEIVABLESPROCESSONLINE


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CREATEACCOUNTING

Create Accounting form options:Create Final Accounting Post to GL

Create Final Accounting

Create Draft Accounting

You can view draft accounting, which gives you theflexibility to make changes before creating finalaccounting.

To view the accounting entries, bring up the

transaction, and then go to Tools>View Accounting Refer to SLA documentation for detailed information

on the Create Accounting parameters



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SETUP

No AR specific setup is required to continue using 11ifunctionality

Receivables has predefined the setup

Resultant accounting is the same as in R11i

The next few slides describe AR predefined setup

To define your own SLA setup, please refer to SLAdocumentation

RECEIVABLESSETUPLEDGERS

SLAM


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ANDSLAMSLedger

Subledger Accounting Method

Application Accounting Definition

Journal Lines DefinitionsEventClass & Type

JournalLine Type

LineDescription

AccountDerivationRules

Assigned to

Assigned to

Assigned to

Assigned to

SUBLEDGERACCOUNTINGINRECEIVABLESSETUPSOURCESFORACCOUNTING


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DEFINITIONS

Invoice Event Class

Item

Customer Name

Transaction Type Revenue Account

Tax CodeCurrency

Invoice Number

Operating Unit

Salesperson

Entered Amount

PO Number

RECEIVABLESSETUPPREDEFINEDE C /T


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EVENTCLASSES/TYPESEvent Class* Event Types

*Event Class = Receivables Document

Invoice

Credit Memo

Receipt

Create

Update

Create

Update

Create

Update

Reverse

SETUPAR P E C /T


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AR PREDEFINEDEVENTCLASSES/TYPES

Event Class Event

Type

Journal Definition Assignment

Adjustments All AdjustmentsDefault Accrual

Bills Receivable All Bills ReceivablesDefault Accrual

Chargeback All ChargebackDefault Accrual

Credit Memo All Credit Memo

Default Accrual

Debit Memo All Debit Memo Default Accrual

Deposit Memo All Deposit MemoDefault Accrual

Guarantee All GuaranteeDefault Accrual

Invoices All Invoices

Default Accrual

Misc Receipt All Misc ReceiptDefault Accrual

Receipt All ReceiptDefault Accrual

RECEIVABLESSETUPANATOMYOF

J E


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AJOURNALENTRY

Date: 10-Jan-2002 Description: Domestic invoice number A4576, issued Jan 5th 2002

Line Type Account Description Debit CreditReceivable 01.1210.000 Paco Terremoto S.A. 5,600Revenue 01.4110.000 Widgets X-123 5,000

Tax 01.5350.000 Domestic input VAT 600

Subledger Accounting Entry

DescriptionsAccount DerivationRules

Journal Line Types

RECEIVABLESSETUPJOURNALL T


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LINETYPES

Journal Line Types Setup: The Side field determines how Receivables will account for

the Line Type

The Switch Debit/Credit field determines how negative

amounts will be handled Note that Transfer to GL is done in Summary

RECEIVABLESSETUPACCOUNTD R


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DERIVATIONRULE

Account Derivation Rules Setup: Account Derivation Rules determine which account to use

for the Journal Line Type for a particular transaction

You can define your own:

Subledger accounting methodsApplication Accounting Definitions

Journal Line Definitions

Journal Line Types

Line Descriptions

Account Derivation Rules

SUBLEDGERACCOUNTINGINRECEIVABLESSETUPJOURNALLINEDEFINITIONOF


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INVOICES

The Journal Line Definition is comprised of: Journal Line Types (JLT)

Line Descriptions

Account Derivation Rules (ADR)

RECEIVABLESSETUPASSIGNINGTHEJLD AAD


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JLD TOTHEAAD

Application Accounting Definitions Form Journal Line Definitions (JLD) are assigned to the

Application Accounting Definition per Event Class or EventType

Journal Line Definitions must be validated to enable

accounting


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SUBLEDGERACCOUNTINGINRECEIVABLESSETUP

ASSIGNINGTHEAAD TOTHESLAM

Subledger Accounting Methods Form Application Accounting Definitions (AAD) are assigned to

Subledger Accounting Methods



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ASSIGNINGTHESLAM TOTHELEDGER

The subledger accounting method is defined and shippedby Oracle.

This is indicated by the subledger accounting owner field whichshows Oracle.

User defined subledger accounting methods show the user in the

subledger accounting owner field. There is a 1:1 relationship between a ledger and a SLAM.

The Use Cash Basis Accounting flag should be disabledwhen using an accrual SLAM



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PREDEFINEDSLAMS

Standard AccrualApplication Accounting Definition Name: Receivables DefaultAccrual

Standard Cash

Application Accounting Definition Name: Receivables Default Cash

Basis Accounting Definition

US Federal Accounting

Application Accounting Definition Name: Multi-Fund AccountReceivables Accrual - Balancing Method

RECEIVABLESPROCESSINVOICEA


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ACCOUNTING

11i Accounting

DR Receivables $360

CR Revenue $100CR Revenue $200CR Tax $ 10CR Tax $ 20CR Freight $ 30

R12 AR Default Accounting

DR Receivables $360

CR Revenue $100CR Revenue $200CR Tax $ 10CR Tax $ 20CR Freight $ 30

Item 1 $100Tax $ 10Freight $ 30

Item 2 $200Tax $ 20

Total $360

SUBLEDGERACCOUNTINGINRECEIVABLESPROCESSMULTI-FUNDRECEIVABLESA


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ACCOUNTING

R12 AR Default Accounting

DR Receivables $100DR Receivables $200DR Receivables $ 10DR Receivables $ 20DR Receivables $ 30

CR Revenue $100CR Revenue $200CR Tax $ 10CR Tax $ 20

CR Freight $ 30

Item 1 $100Tax $ 10Freight $ 30

Item 2 $200Tax $ 20

Total $360

SUBLEDGERACCOUNTINGINRECEIVABLESPROCESS


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ADJUSTMENTACCOUNTING

11i Adjustment Accounting

DR Write Off $ 60

CR Receivables $ 60

R12 Default Accounting

DR Write Off $ 20DR Write Off $ 40

CR Receivables $ 20CR Receivables $ 40

$60 LINE* Adjustment

SUBLEDGERACCOUNTINGINRECEIVABLESPROCESSRECEIPTAPPLICATIONA


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ACCOUNTING

11i Receipt AccountingDR Unapp $150

CR Receivables $150

R12 Default Receipt AccountingDR Unapp $ 150

CR Receivables $ 50CR Receivables $100CR Receivables $ 5

CR Receivables $ 10CR Receivables $ 15CR Receivables -$ 10 *CR Receivables -$ 20 *

Default Accrual Accounting

$150 Receipt Application


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I C


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SLA

Transactions

AccountingEvents

Receivables

Journal EntrySetup

AccountingProgram

SubledgerBalances

GL

JournalEntriesandBalances

AccountingConfigurations

SubledgerJournal Entries

A


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AGENDA


Legal Entity

eBusiness Tax






Daily Revenue


COGS and Revenue


OBSOLESCENCEANDREPLACEMENTOFF D


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FEATURESDESCRIPTION

Receivables Collections Workbench Oracle Advanced Collections replaces the existing

workbench

Work is pushed to the user

Users work primarily within one main screen The Account Details and Activities forms are still available

for research by non-collector personnel

OBSOLESCENCEANDREPLACEMENTOFFEATURES DESCRIPTION


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FEATURESDESCRIPTION

Bills of Exchange Bills of exchange are financial instruments used primarily

outside of the USA

Bills of exchange were originally implemented as a type of

receipt The Bills Receivable feature replaces the bills of exchange

functionality creating unique documents

Bills Receivable has its own workbench



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FEATURESDESCRIPTION

Trade Accounting Provided a way to handle customer deductions and overpayments

Replaced by Deductions Management, using Trade Accountingand Credit Management



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FEATURESDESCRIPTION

Tax Setup and Reporting Receivables tax reports and setup are replaced with equivalent

functionality in Oracle E-Business Tax

CCID Correction Form

Provided a way to update invalid accounting before importing into

General Ledger Centralized Sub-Ledger Accounting draft accounting can be

corrected prior to interfacing with General Ledger, replacing needfor the corrections form



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FEATURESDESCRIPTION

COGS and Revenue Matching Report Report compared Revenue to potential COGS

Replaced by COGS and Revenue Matching feature

AR Customer Supplier Netting Report

Report listed Payables and Receivables by customer

Replaced by AP/AR Netting feature



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FEATURESDESCRIPTION

On Account Credit Memo Refund Manually initiate refund from On Account credit memo

Functionality enhanced with direct integration to Oracle Payables

Consolidated Billing

Consolidated customer invoices into one monthly bill

Replaced by more flexible Balance Forward Billing feature



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FEATURESDESCRIPTION

Customer Standard User Interface Redesign Redesigned as an HTML-based user interface

Provides a more streamlined and intuitive customer datamanagement flow

Customer data entry is coupled with data qualitymanagement tools to maintain the integrity of customer data



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FEATURESDESCRIPTION

Late Charges functionality Enables you to create standard late charge policies that can

be assigned to customer accounts or account sites

Flexible policy configurations include:

Multiple interest calculation formulas Transaction and account balance thresholds

Currency-level rate setups

OBSOLESCENCEANDREPLACEMENTOFFEATURES BENEFITS


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FEATURESBENEFITS

Improve functionality by aligning with mandated or generallyaccepted business practices

Reduce maintenance by providing centralized functionality

Increase user productivity and effectiveness with moreautomation, easier navigation and extended functionality

TRANSITIONTONEWFEATURESCOLLECTIONS WORKBENCH


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COLLECTIONSWORKBENCH

What changed: Forms removed or modified in Receivables

Reports retired or modified in Receivables

Required steps:

Setup Oracle Advanced Collections

For more information:

Migrating to Oracle Advanced Collections: An Overview for OracleReceivables Users white paper

COLLECTIONSWORKBENCH- MENUAND FORMS


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ANDFORMS

Items removed (menu and forms):Account Overview

Aging

Correspondence

Customer AccountsCustomer Calls

Scheduler

Items changed (menu and program):Account Details modified as research tool

for non-collections users

Dunning Letters program is now HistoricalDunning Letters only

Replaced with: Collectors Work Queue Collections Search

COLLECTIONSWORKBENCH-ACCOUNT DETAILS


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ACCOUNTDETAILS

Account Details: Still exist in R12 to provide non-collector users the ability to perform

research.

Are available directly from the Navigator, and can be used foreither transactions or receipts as it is today.

Are still available from the transactions workbench when you selectInstallments from the Tools/Action menu

The Account Details form has been modified to removereferences to Dunning, and Call functionality.

Dunning creation and history, and Call

functionality are now available inAdvanced Collections.

TRANSITIONTONEWFEATURESCOLLECTIONSWORKBENCH- DUNNINGREPRINT


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REPRINT

Dunning Reprint allows printing of Historical Days Overduetype dunning letters in the event of foreclosure or other legalissues.

The Program is called Dunning Letter Reprint-HistoricalReceivables Only

Items changed:

Program name: Dunning Letter Reprint-Historical Receivables Only

Output: Historical Receivables Days OverdueDunning letters

TRANSITIONTONEWFEATURESBILLSRECEIVABLE


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RECEIVABLE

What Changed:The System Option to enable Bills Receivable is removed,

Bills Receivable is automatically enabled

Required Steps

Setup for Bills Receivable If you have transitioned to Bills Receivable prior to

upgrading, no action is required

For more information: If you plan to transition to Bills Receivable

before or after the upgrade, review thewhite paper: Oracle Receivables Billsof Exchange Obsolescence

TRANSITIONTONEWFEATURESTRADEACCOUNTING


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ACCOUNTING

What Changed:System Option to Enable Trade Accounting is removed

Deductions Management will automatically be enabled if yousetup Trade Management

Required steps: If you upgraded to Deductions Management solution prior to

R12.0, no actions are required

Setup Oracle Trade Management and Credit Management

For more information: E-Business Suite Solutions for Deduction

Management, An Oracle White PaperRelease 11i.10

TRANSITIONTONEWFEATURESCUSTOMER STANDARD FORM


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CUSTOMERSTANDARDFORM

What changed: Old Standard customer forms replaced by HTML UI

Updates to Customer Profile Class form

Required steps:

No actions required

TRANSITIONTONEWFEATURESTAX SETUP AND CALCULATION


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TAXSETUPANDCALCULATION

What changed: Tax reports retired

Tax setup removed from AR

Oracle E-Business Tax provides all setup and calculationfunctionality for tax

TRANSITIONTONEWFEATURESTAX REPORTING


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TAXREPORTING

No longer in Receivables: Tax Code Listing

Tax Exceptions Listing

Tax Exempt Customerreport

Tax Exempt ProductReport

Tax Group Listing Report

Sales Tax Listing

Sales Tax Rate Interface TAX: Setup Verification

Report

Tax Partner: AR EffectiveTax Rate Update

Supported in E-Business Tax: Financial Tax Register

Tax Received Report

Tax Reconciliation Report

Tax Register

Tax-only: open invoicesreport

US Sales Tax report for taxpartners

TRANSITIONTONEWFEATURESSUBLEDGER ACCOUNTING


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SUBLEDGERACCOUNTING

What changed: SLA draft Accounting provides a draft view of accounting prior to

posting

Changes can be made to accounting setup, negating need forCCID Corrections form

Required steps: No action required if AutoAccounting is adequate

setup SLA if you need more robust account creation functionalitythan AutoAccounting

TRANSITIONTONEWFEATURESCOGS AND REVENUE MATCHING


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COGSANDREVENUEMATCHING

What changed: Report removed

Revenue Recognition triggers COGS recognition via API called byCosting product

Required steps:

No action required in Receivables

TRANSITIONTONEWFEATURESAR CUSTOMER SUPPLIER NETTING


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AR CUSTOMERSUPPLIERNETTING

What changed:AR Customer Supplier Netting Report retired

Replaced by centralized, automated netting feature

Required steps:

Setup AP/AR Netting

TRANSITIONTONEWFEATURESON ACCOUNT CREDIT MEMO REFUND


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ONACCOUNTCREDITMEMOREFUND

What changed: Refund no longer creates miscellaneous receipt

Interface to Payables via Oracle Payments will create refundautomatically

Required steps:

Setup refund Receivables Activity in AR

Oracle Payments Setup

TRANSITIONTONEWFEATURESCONSOLIDATED BILLING


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CONSOLIDATEDBILLING

What changed: Consolidated Billing creation and print programs retired

New Balance Forward Billing feature

Required steps:

No Action required for existing consolidated billing

Define Balance Forward Billing Cycles

Assign Billing Cycle to Payment Terms

AGENDA


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AGENDA


Legal Entity

eBusiness Tax



Centralized Payment

Process


Daily Revenue




CENTRALIZEDPAYMENTPROCESSDESCRIPTION


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DESCRIPTIONCommon Engine for Payment Transactions

OraclePayables

Oracle

Receivables

Oracle OrderManagement

Other OracleModules

OraclePayments

FinancialInstitutions

Credit CardProcessors



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DESCRIPTION

Leverages Oracle Payments Funds Capture Oracle Payments stores external bank accounts and

payment information

Centralized data encryption

Centralized processing for automatic payment method



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SC O

R12 New prompt: Receipt MethodAR Payment Method is renamed to Receipt Method

Receivables UI modified for payment attributes:Transactions Workbench

Receipts WorkbenchReceipt Classes Setup forms

Funds Transfer Error Handling Form

Bills Receivables

New Payment Details tab on Customer Standard form

CENTRALIZEDPAYMENTPROCESSSETUPANDPROCESS


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RemittanceProcessing

Method of creation:Automatic ReceiptReceipts APIPrepayment APIReceipt Workbench

Automated process

SETUP PROCESS

Configure FundsCapture Processing(Oracle Payments)

Create receipt classes

and receipt methods(Oracle Receivables)

Assign receipt methodsand instruments tocustomer site or

account(Oracle Receivables)

Create Receipt

Oracle Paymentsperforms:

(1) Funds capture or(2) Remittance file

creation

Method of creation:Auto InvoiceInvoice APITransaction Workbench

Create Invoice

CENTRALIZEDPAYMENTPROCESSSETUPCREATERECEIPTCLASS/METHOD


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Create automatic receipt method:1. Enter Automatic for Creation Method

When a Creation Method of Automatic is selected

A Remittance Method = No Remittance is not allowed

The only values available for the Remittance Method areStandard, Factoring, and Standard and Factoring

2. Enter Payment Method for funds transfer processing Note that this payment method has been defined in Oracle

Payments.

Changes:

Receipt Method was previously called Payment Method

Payment Method under Funds Transfer Processing region waspreviously called Payment Type

CENTRALIZEDPAYMENTPROCESSPROCESSINVOICEPAYMENT


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When you create an invoice, payment details are defaultedfrom the customer setup

You may overwrite the information.

Select Instrument button invokes a new window in whichyou can either:

Select from an existing list of instrument numbers

Create a new instrument number

CENTRALIZEDPAYMENTPROCESSERRORHANDLING


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The Correct Funds Transfer Error form is used for: Credit Card and Bank Account Transfer errors

Error Handling for automatic payments

CENTRALIZEDPAYMENTPROCESSSETUPCUSTOMERSPAYMENTDETAILS


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Use the Payments tab to: Assign primary Receipt Method for the customer

Zoom in to Payment Instruments to view existinginstruments such as:

Credit card

Bank transfer accounts

Zoom in to Payment Instruments to create new paymentinstruments



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Oracle Payments New data model for customer accounts

New data model for payment information

Transaction Payment-Extension entity

UI components

Upstream products Interface key reference to transaction payment-extension entity

AGENDA


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Legal Entity

eBusiness Tax





Daily Revenue




AUTOMATEDREFUNDSDESCRIPTION


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Automate refund process for non-credit card transactions Leverage AP workflow approval

AP transacts refunds via Oracle Payments

AUTOMATEDREFUNDSSETUPANDPROCESS


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RequestRefundProcess

Refundsor On

Account?

Fund Disbursement(Oracle Payments)

On account

Refund

Automatedprocess

SETUP PROCESS

Setup ReceivablesActivity for Refund

Create on account

credit

Workflow approvalprocess

Workflowremittance process

Oracle Payables

Setup TransactionSource: ReceiptHandling for Credits

Create credit memo(Auto Invoice)

AUTOMATEDREFUNDSSETUPRECEIVABLESACTIVITY


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Refund activity type is applicable for automated non-creditcard refunds

You must create a Receivables Activity with this Refundtype to process your automated AP refund.

Credit Card Refund activity type is still available for credit

card refund only.

AUTOMATEDREFUNDSSETUPTRANSACTIONSOURCES


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Set Receipt Handling for Credits to Refund in yourtransaction sourceApplicable for both automated credit card refunds and

automated AP (non-credit card) refunds

For credit card transactions, Receivables submit therefund request to Oracle Payments directly

For non-credit card transactions, Receivablessubmits the refund request to AP, which in turnsubmits the request to Oracle Payments

Credit Card Refundhas been replaced withRefundfor Receipt Handling for Credits

AUTOMATEDREFUNDSSETUPTRANSACTIONSOURCES


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No user interaction is needed. Create credit memos via Auto Invoice

Refunds are automated

View refund status in AP workbench

AUTOMATEDREFUNDSPROCESSAPPLICATIONSFORM


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To create manual refund, apply the receipt to Refund For Refund application, the button Refund Attributes is

enabled

Click on this button to view and update your refund attributes

AUTOMATEDREFUNDSPROCESSNEWREFUNDATTRIBUTESFORM


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Refund Attributes: Customer Name

Default

Customer Number

Refund Payment Method Customer Address

Party Bank Account

Delivery Channel

Pay Alone Remittance Message 1,2,3

AUTOMATEDREFUNDSPROCESSVIEWREFUNDSTATUS


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Use Refund Status to view the refund status in AP Refund status is not applicable for credit card refund



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Oracle PayablesAutomated refund for non-credit card transactions

AGENDA


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Legal Entity

eBusiness Tax





Daily Revenue




AP/AR NETTINGDESCRIPTION


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AP/AR Netting automatically compares Payables toReceivables and creates the appropriate transaction in eachsystem to net supplier invoices and customer invoices

A receivables user can

View netted receipt details directly from the receipt

Create Netting Agreements and Netting Batches

The AR Customer Supplier Netting Report has been retired

AP/AR NETTINGBENEFITS


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Increase user productivity and effectiveness with moreautomation and integration

AP/AR NETTINGPROCESSACCESS


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You can now access forms for creating and updating: Netting Batches

Netting Agreements

AP/AR NETTINGPROCESSACCESSING


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After Querying a netted receipt, you can view details aboutthe batch by selecting AP/AR Netting from the Action menu

Netted Receipts are created automatically by the AP/ARNetting process

You cannot update Netted Receipts from the Receipts

Workbench

AGENDA


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Legal Entity

eBusiness Tax


Receivables




Daily Revenue


COGS and Revenue

Matching


DAILYREVENUEDESCRIPTION


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Daily Revenue enables accurate revenue distribution overall accounting periods, including full and partial periods

It fulfills stringent accounting standards introduced by theUS GAAP and SOX for recognizing revenue



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Example of a contract that spans from Jan 14th, 2006through Apr 13th, 2006. We assume the accounting perioddefined is Monthly.

This contract spans across 4 accounting monthly periods asillustrated below:

Jan Feb Mar Apr|------|----------|------------|------|

1/14 2/1 3/1 4/1 4/13

January and April are partial periods

February and March are full periods



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Revenue accuracy is to the number of days in theaccounting period.

Formula to calculate Daily Revenue Rate:

Daily Rate =Total Revenue

Total Number of Days (for the entire duration)


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R11i vs. R12 revenue distributions

Example: 6 months service (17-Apr-2006 to 16-Oct-2006) at $600 total.Calculated daily revenue rate: 600/183 = 3.28

GL Date Revenue

Period

R11i

Revenue

R12 Daily Rev.

All Periods

R12 Daily Rev.

Partial Periods

# of Days

Apr 17 Month of Apr 100 45.91 45.91 14

May 17 Month of May 100 101.64 100.33 31

June 17 Month of Jun 100 98.36 100.33 30

July 17 Month of July 100 101.64 100.33 31

Aug 17 Month of Aug 100 101.64 100.33 31

Sept 17 Month of Sept 100 98.36 100.33 30

Oct 16 Month of Oct ----- 52.45 52.44 16

600 600 600 183

DAILYREVENUESETUPANDPROCESSSETUP PROCESS


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Create an invoice lineWith accounting rule.(manual or imported)

Createaccounting

Is itdaily revenuerule?

Enter Rule

End Date Post accounting

View accounting

Adjust accounting

Yes

No

Automated process

Create accountingrule withDaily Revenue type

SETUP PROCESS

DAILYREVENUESETUPACCOUNTINGRULES


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Two new accounting rule types have been added for DailyRevenue:

Daily Revenue Rate, All Periods. For this type, all periods use dailyrevenue rate.

Daily Revenue Rate, Partial Periods. For this type, partial periodsuse daily revenue rate, full periods are prorated.

Two existing accounting rule types have been renamed:

Fixed Schedule (Previously named Fixed Duration)

Variable Schedule (Previously named Variable Duration)

DAILYREVENUEPROCESSCREATEINVOICELINE


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Invoice line can be created via:Auto Invoice or Invoice API

Transactions Workbench

For the Daily Revenue rule, you must enter a Rule EndDate

The Rule End Date must be on or after Rule Start Date



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General Ledger Define accounting periods in General Ledger

Order Management, and Service Contracts

Interface invoice lines to Receivables

Default or assign Daily Revenue accounting rules onto sales order

lines or service lines

AGENDA


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Legal Entity

eBusiness Tax


Receivables




Daily Revenue


COGS and Revenue

Matching


REVENUECONTINGENCIESOVERVIEW


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US GAAP and SOX compliance for revenue recognition User definable revenue contingencies

User definable assignment rules

Enhanced RAM wizard or Revenue Adjustment API

Increase security with restricted access

REVENUECONTINGENCIESDESCRIPTION


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Automatically time revenue recognition in accordance withthe removal of Revenue Contingencies as required by USGAAP and IAS

Enhancements to Event Based Revenue Managementfunctionality

Enabled for imported and manual transactions User definable contingencies. New UI in Receivables.

User definable defaulting rules for contingencies assignment

Support for parent-child (e.g. Product and Service)relationship.

REVENUECONTINGENCIESDESCRIPTION


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Pre-billing Customer Acceptance is supported by OrderManagement, Service Contracts and Receivables

Manage contingencies or revenue using RevenueAccounting Module (RAM) wizard and API

Revenue Managers Responsibility restricted access

REVENUECONTINGENCIESSETUPANDPROCESS

SETUP PROCESS


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Definecontingencies

Definedefaulting rules

Create invoice line

Evaluateassignment rules

Is therevenue

policymet?

Assign CustomerCreditworthiness,Extended PaymentTerm, and/or

Refundcontingencies

Defer Revenue if

contingenciesexist

Assign contingencies ifcriteria is met

No

Yes

Automated process

Define policythreshold

SETUP PROCESS

Recognize revenue orcontinue deferring revenue

AssignContingencies

Recognize Revenue

Run Revenue ContingencyAnalyzer to detect expiredcontingencies

REVENUECONTINGENCIESSETUPPOLICYTHRESHOLD


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On the Revenue Policy form, you must setup a policyfor each operating unit:

Select an Operating Unit

Enter customer credit classifications

Enter your company policy threshold

REVENUECONTINGENCIESSETUPSEEDEDCONTINGENCIES


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Receivables seeds the contingencies You cannot update or delete seeded contingencies.

You can duplicate the contingencies and modify the copy asneeded, or you can create new contingencies

Receivables also seeds removal events

You cannot delete, modify or create removal events Removal events available are: Contingency Expiration, CustomerAcceptance, Invoicing, Payment, and Proof of Delivery

REVENUECONTINGENCIESSETUPCONTINGENCYCODES/ID


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R11i mapped to R12

Contingency Code

AR_ACCEPTANCE

AR_CUSTOMER_CREDIT

AR_COLLECTIBILITY

AR_PAYMENT_TERM

AR_CANCELLATION

AR_FISCAL_FUNDING

AR_REFUND

AR_FORFEITURE

OKL_COLLECTIBILITY

LNS_IMPAIRED_LOAN

ID Contingency Name

2 Explicit Acceptance

3 Customer

Creditworthiness

4 Doubtful Collectibility

5 Extended Payment Term

7 Cancellation

8 Fiscal Funding Clause

9 Refund

10 Forfeitures

12 Leasing DoubtfulCollectibility

13 Impaired Loans

REVENUECONTINGENCIESSETUPCREATERULES


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Define your assignment rules to meet your business needs Receivables does not seed any rule for revenue

contingency

You must set up all rules using any of the seeded matchingcriteria attributes

REVENUECONTINGENCIESPROCESSCONTINGENCYASSIGNMENT

PROCESS


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Create invoice line

Evaluateassignment rules

Is therevenuepolicymet?

Assign CustomerCreditworthiness,Extended PaymentTerm, and/or Refund

contingencies

Defer Revenue if

contingenciesexist

Assign contingencies ifcriteria is met

No

Yes

Automated process

Run Revenue Analyzerto detect expiredcontingencies

Recognize revenue orcontinue deferringrevenue

Assign Contingencies

Recognize Revenue

Feeder Systems suchas OrderManagement andService Contracts

Manual Transactions

REVENUECONTINGENCYPROCESSMANAGECONTINGENCIES


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The Revenue Accounting form is used to manage yourrevenue

To view your contingencies, go to Line RevenueContingencies region

To expire or remove a contingency, set the Estimated

Expiration Date to todays date. You cannot:

Add a new contingency

Update contingency name



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Auto Invoice and Invoice API You may interface contingencies

Auto Invoice or Invoice API default contingencies

Manual transactions

Receivables defaults contingencies

Order Management, and Service Contracts Support Pre-billing Acceptance

AGENDA


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Legal Entity

eBusiness Tax






Daily Revenue


COGS and Revenue


COGSANDREVENUEMATCHINGDESCRIPTION


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Ensures that COGS and Revenue recognition occurin the same accounting period

Developed by Costing, Order Management andReceivables. This TOI covers the Receivables part

Receivables provides the ratio between earned andunearned revenue to Costing

Obsolescence of Receivables COGS and RevenueMatching report.

For complete information on this feature, pleaserefer to Costing and Order Managementdocumentation.

COGSANDREVENUEMATCHINGBENEFITS


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Automate the synchronization of the Revenue and COGSrecognition

Obsolescence of Receivables COGS and RevenueMatching report

COGSANDREVENUEMATCHINGPROCESSCOGS RECOGNITION


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No user interaction is needed in AR.



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Cost Management Performs COGS recognition (or Cost Accounting)

Integrates with Receivables for revenue information

Order Management

Provides order and return information to Costing

Integrates with Receivables for invoice creation Notifies Costing when an order is closed without billing

AGENDA


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Legal Entity

eBusiness Tax






Daily Revenue


COGS and Revenue


MULTI-ORGACCESSCONTROLDESCRIPTION


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BelgiumOU

EMEA-1

Responsibility

Perform tasks for multiple operatingunits without changing responsibilities

HollandOU

EMEA-1

Responsibility

DenmarkOU

EMEA-1

Responsibility

MULTI-ORGACCESSCONTROLBENEFITS


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Improve efficiency Easily access transactions from different operating units

Improve Shared Services operations

Provide more information for decision making

Global consolidated view of transactions across operating units

Reduce Costs Cut down processing time

RECEIVABLES& MULTI-ORGACCESSCONTROL


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The Operating Unit field: Is mandatory

Defaults from the value that has been set for profile MO:Default Operating Unit

Is attached to a list of values that lists all operating units thatyou have access to

Is not used with: Payment terms

Aging bucket forms



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Multi-Org Access Control functionality is also available onTransactions and Bills Receivables forms

Sources are defined per operating unit

The list of values for Source shows all Sources for theoperating units that exist for the user session



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Multi-Org Access Control functionality is also available onthe Receipts form.

Receipt Methods have remittance banks, which are definedper operating unit

The list of values for Receipt Method shows all Receipt Methods

that have banks in the operating units that exist for the usersession

MULTI-ORGACCESSCONTROLPROCESS


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You can submit Concurrent requests for alloperating units in the user sessionor for a specificoperating unit that you select.

You can select the operating unit from a list ofvalues that lists all the Operating Units to which youhave access.

Many concurrent processes can run for alloperating units in your security profile, including:Auto Invoice

Auto Receipt Creation

Statements

Revenue Contingency

MULTI-ORGACCESSCONTROLREPORTING


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All reports can be submitted for just one operating unit Cross organization accounting reports can still be submitted

for a whole ledger

These reports now run for all operating units to which you haveaccess when the reporting level is set to Ledger

MULTI-ORGACCESSCONTROLREPORTINGPROCESS

S b it t


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Submit reports

The reports that can run for all operating units in the userssecurity profile are listed in the notes for this slide.

Date post:	03-Jun-2018
Category:	Documents
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