Multi Org Access Control (MOAC).

Release 12 came with a new feature of accessing the multiple Operating Units with the single responsibility. In R12, this concept is named as Multi-Org Access Control (MOAC). In earlier versions, we can access only one operating unit with single responsibility, for "n" no of operating units we need to create "n" no of  responsibilities. Multi Org Access Control (MOAC) enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process and report on data for an unlimited number of operating units within a single applications responsibility.
There are two Security profiles:
1. Security Profile: It is used for the selection of Operating unit from the same business group.
2. Global Security Profile: It is used for the selection of Operating Units from the different business group.
Features of Multi Org Access Control:
• User can access the multiple operating unit data with single responsibility
• Reduces time and can submit single request for multiple operating unit data.
• Reporting can be managed at different organization levels like, Business Group, Ledger, Operating unit etc
This Multi Org Access Access Control (MOAC) should be assigned to the Profile Option (MO: Security Profile). So that it allows to access multiple Operating Units data.
Step 1: Create Multi Org Access Control Security Profile:
Navigation: HRMS Responsibility --> Security --> Profile
• Enter Name
• Enter your Business Group
• Select Security Type: Secure Organizations by Organization Hierarchy and/or organization list.

Step 2: Submit Security List Maintenance Program.

Navigation: Processes and Reports --> Submit Processes and Reports.
• Program Name: Security List Maintenance
• Generate Lists for: All Security Profiles
• Process: Current people Only, Static User Processing: Process all static Users.

User is unable to Void the payment.

Illustration- 1 : User is unable to Void the payment.
Solution: You cannot void payment on a payment document that pays a prepayment that you have applied. You must first unapply prepayment, and then Account the Prepayment Unapplied Event on Standard Invoice. 

Illustration -2: Unable to release the system generated hold.
Solution: 

Step 1: Disable the trigger ja_in_ap_aida_before_trg 
ALTER TRIGGER ja_in_ap_aida_before_trg DISABLE; 
Step 2: Release the hold. 

Step 3: Cancel the Invoice 

Step 4: Enable the trigger again 
ALTER TRIGGER ja_in_ap_aida_before_trg ENABLE; 

Illustration-3: User is unable to Void the payment.
The payments are made against the invoices in the payment window. 
Invoice No's
1) MDPL/RENT/12-13/010
2) MDPL/RENT/12-13/011
3) MDPL/RENT/13-14/001.
These payment status should be "Cleared" but the payment status is showing as "Reconciled". 

Now I want to void the payment but can not do so.
 The void option is disabled and we are not using the cash management for reconciliation.
Solution: Received the patch from oracle support.

Issue: APP-SQLAP-10000: ORA-20010: Error while validating  TDS AP Invoice.

Solution: The above is shown when wrong TDS code is attached to distribution line, In such case reverse the wrong tds attached distribution line and Update a new line with correct TDS tax code and validate and apply prepayment.

Illustration:   Query which is used to change the PO status from "Pre- Approved" to "Incomplete"
Module: Purchasing
update po_line_locations_all 
set closed_code='', 
closed_date='', 
CLOSED_FLAG='N', 
Qty_Rcv_Exception_Code='NONE'
where po_header_id in(335398)   ---Update PO header Id         
and   org_id= 595;                         ---- Update Org ID

update po_lines_all 
set closed_code='', 
closed_date='', 
CLOSED_FLAG='N' 
where po_header_id in(335398)      
and   org_id= 595; 

update po_headers_all 
set closed_code='', 
closed_date='' , 
WF_ITEM_TYPE = NULL,
APPROVED_DATE='',  
APPROVED_FLAG='',
Authorization_Status='INCOMPLETE'  
where po_header_id in(335398,335370)         

and   org_id= 595; 

==============================================
Select * from PO.PO_headers_All where Segment1='4709' and org_id=''

==============================================

Order to Cash (O2C) Cycle

Order to Cash (O2C) Concept is a Process that is followed by an organisation for Selling a Product or Services to the customer and receive payment for it. The following is the flow for Order to Cash(O2C) Cycle. 
          

1) Enter Sales Order.
2) Book Sales Order. 
3) Stock Reservation.
4) Pick Release.
5) Ship Confirmation.
6) Workflow background Process Engine Program.
7) Auto invoice Import Program.
8) Query the transaction in AR and complete the transaction.
9) Create Receipt against imported transaction.
10) Clear the transaction in Cash Management.
11)Transfer to General Ledger.

Accounting Entries for O2C Cycle.At Pick Release:
           Inventory Stage A/c................Dr.
                       To Inventory Finished Goods A/c .................Cr.
At Ship Confirmation:
            COGS A/c ..............................Dr.
                       To Inventory Organisation A/c.........................Cr.
At Transaction in AR:
            Receivable A/c.......................Dr.
                        To Revenue A/c .................................Cr.                                            To Tax A/c....................................Cr.
                        To Freight A/c ....................................Cr.
At Receipt in AR:
             Cash A/c................................Dr.
                        To Receivable.....................................................Cr.

Auto Invoice Setup.

1) In OM System Parameters Window, For item Validation Organisation assign Master Inventory(MI) or Actual Inventory (AI).

2) Create Transaction Type for line and order.
3) Define Document Sequence for the transaction type.
4) Assign Document Sequence and Document Category in Document Assignment window
5) For OM Responsibility assign " QP Item Validation Organisation".
6) Assign you item in advance pricing form.
7) Define Carrier Method.
8) Define Release Sequence Rule.
9) Define Pick Slip Grouping Rule.
10) Define Release Rules.
11) Define Document Set for Pick Release.
12) Define Document Set for Ship Confirmation.
13) Define Ship Confirmation Rules.
14) Shipping Parameters.
15) Define Picker Role.
16) Define Shipper Role.
17) Define grants to shipper and picker
18) Open Periods in Inventory, Purchasing and General Ledger Modules.
19) Create Receivables Transaction Type
20) Create Imported Transaction Source
21) Assign Receivable transaction type and sources to Transaction type create in OM.

Procure to Pay Cycle (P2P).

Procure to Pay (P2P) Concept is a Process that is followed by an organisation for Procuring a Product or Services from the supplier/vendor and make payment for it. The following is the flow for Procure to Pay(P2P) Cycle.

1) Requisition.2) Request For Quotation (RFQ).
3) Receiving Quotations.
4) Quotation Analysis
5) Purchase Order (PO)
6) Receiving
7) Receiving Transaction (Delivery).
8) Create Invoice
9) Payment.
10) Clear the invoice in Cash Management.
11) Transfer to Geneal Ledger.

Requisition: Depending on the requirement of the organization, the required department raises the requisitions material.
Request for Quotation (RFQ): Based on Requisition, the organization will approach the supplier for quotations.
Receiving Quotations: Based on the RFQ’s the supplier will be sending the quotations. 
Quotation Analysis: After receiving quotations are received from supplier, Select the best quotations by which all requirement are fulfilled.
Purchase Order: Once the best quotation is finalized, raise purchase order against that supplier for delivering the goods/services. There are four types of purchase orders
            1. Standard Purchase Order.
            2. Planned Purchase Order.
            3.  Blanket Purchase Order.
            4. Contract Purchase Order.
Receipt: Based on the Purchase Order, The supplier will deliver the goods/services to the organization. The organization will receiving the goods and will be placed at the staging area.
Receiving Transactions: Moving the goods from staging area to particular rack or warehouse.
Invoice: Creating invoice in payables modules against supplier for supplying goods and services. 
Payment: Make payment to supplier for invoice amount. 
Reconciliation: It means clearing the transaction in cash management Module.
Transfer to General Ledger: Accounting will be transferred from purchasing, Payables, Cash Management modules to GL.

Now, Let's see how accounting is generated in P2P CycleAccounting defers based on item type (Expense Item, Inventory Asset Item, Inventory Expense item). The following is the accounting entries generated by the system for Expense item type. 

Note: Requisition, Request for Quotation, Receiving Quotations, Quotation Analysis and for Raising Purchase Order (Till Step 5) no accounting is generated. Accounting will be start generating from Receipt ( From Step 6).Receipt at Purchasing Module:
         Receiving Inventory A/c ..................................Dr
                         To AP Accural A/c......................Cr
At Delivery at Purchasing Module:
         Expenses A/c .................................Dr
                         To Inventory Receiving A/c ..........Cr
                         To Purchase Price Variance ..........Cr
Note: Purchase Price Variance (PPV) is the difference between PO price and Standard Cost.
Payable invoice when matched to PO:     
      AP Accural (92001) A/c..........................Dr
                         To Liability A/c..................................Cr
                         To Invoice Price Variance ............... Cr
Note: Invoice Price Variance (IPV) is the difference between Invoice Price and PO Price.
Payment made to Supplier/ Vendor in Payables modules:
              Liability A/c .............................Dr
                          To Cash Clearing A/c ...................Cr
When Payment is cleared in bank
              Cash Clearing A/c ..............................Dr
                          To Cash A/c ..................................Cr

Fixed Assets

                                  Key flexfields in FA.
There are three Key Flex Fields in Fixed Assets:
            1. Category KFF.
            2. Asset Location KFF.
            3. Asset Key KFF.
I. Category Flex Field: Category Flex field is used to categorize the assets. It is mandatory flex field. We can define minimum 2 segments and Maximum up to 7 Segments. One is Major segment another one is Minor Segment.
II. Location Flex Field: It is mandatory flex field which is used to track assets are located in which place and to identify what are all assets located in a particular place. We cannot define new location structure, we can use standard one available. We can add up to 7 segments. 
III. Asset key Flex Field: It is optional Flex field, which is used to group the Assets based on the Organization requirement. We cannot define new structure but we can add up to 10 segments. No FFQ to Asset Key Flex Field Segment. 

System Controls.

System Control form is used to specify your Company name,Asset numbering scheme, Key Flex field structures, Oldest date of asset placed in service as 01- Jan- 1850. 

Calendars.

There are three types of calendars
                 1. Fiscal Calendar
                 2. Depreciation Calendar        

                3. Prorate convention Calendar 
Fiscal Calendar: Based on the asset life we have to create Fiscal Calendar. For example 1976 to 2030. 
Enter Name for your Fiscal year Specify the start and end dates of each fiscal year for a fiscal year name. 
Create fiscal years from the oldest date placed in service through at least one fiscal year beyond the current fiscal year. 
Depreciation will fail if the current fiscal year is the last fiscal year. 
You can set up multiple fiscal years in this window. 
You can assign different fiscal years to your different corporate books. 
The calendar for a tax book must use the same fiscal year name as the calendar for the associated tax book. 
Place cursor on from date and press ↓ down arrow 
System will be creating fiscal years automatically. 
Depreciation Calendar:
The Depreciation Calendar determines the number of accounting periods in a fiscal year. Depreciation calendar is used to calculate depreciation. 
Prorate Calendar:
The Prorate Calendar determines the number of prorate periods in your fiscal year and to prorate the depreciation from which date to which date we have to consider.

Depreciation Methods

Depreciation means gradual and permanent decrease in the value of the asset due to the usage of asset, loss or theft of an asset. There are five standard depreciation methods in Oracle.
                       1. Flat                       
                       2. Calculated
                       3. Production
                       4. Table
                       5. Formula 
Straight line method: We will set a fixed amount for a fixed period as depreciation. For example: Asset cost 1 Lac, asset life 5 years, so depreciation per year 1 Lac / 5 = 20000 
Diminution method: depreciation will be calculated on written down value of asset. 
For example:
Year 1 

Asset value 500000
Depreciation 10% 50000
Balance 450000
Year 2 

Depreciation 10% 45000
Balance 405000
Year 3 

Depreciation 10% 40500
Balance 355000 
Production Base: Depreciation will be calculated on the production units. 

Asset Book 

In Assets Module, Journals will be created based on the asset book. This Asset book will be associated with the particular Ledger. Asset book will determine the:  

               1. Calendar 
               2. Accounting Rules 
               3. Natural Accounts 
Pre requisites to create Asset Book: 
               1. Specify System Controls 
               2. Define Calendars 
               3. Set up your Account segment values and combinations 
               4. Set up your journal entry formats. 
In Fixed Assets we have three types of books: 
               1. Corporate Book 
               2. Tax Book 
               3. Budget Book 
Corporate Book: 
This is also called Depreciation book, Asset book and Asset Register. Corporate book is used to maintain the Asset information and to maintain Depreciation information. Depreciation information will be maintained as per Companies Act. 

Tax Book: 
We will maintain the depreciation information as per Income tax Act. We will copy the Asset information from the corporate book to Tax book. We maintain companies Act and IT Act for depreciation, if the % of depreciation is different for companies act and IT act. 
Budget book: 
We will maintain capital Budget information. The Asset information also required in the tax book. It is an automatic activity. We will copy the asset information from the corporate book to the tax book. We have 2 options to copy the information: 
                1. Initial mass copy. 

                2. Periodic mass copy. 

Asset Categories

Asset Category is used to group the Assets based on the Depreciation method and Rate, and also building a relationship with the Asset book. Category information is common for a group of assets. Oracle Assets defaults these depreciation rules when you add an asset, to help you add assets quickly. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify. 

Pre requisites to set up Asset categories: 
      Set up Category Flex Field
      Set up depreciation Book     

      Setup Depreciation Calendar & Prorate Convention Calendar 
      Setup Depreciation Methods 
Type of Assets 
Assets are again 3 types as per Fixed Assets 
                 1. Capitalized 
                 2. CIP 
                 3. Group Assets 
Capitalized: Which Assets are ready to use and are ready to place in service.
CIP: Construction in process: An asset which is under construction, for example building under construction. CIP asset will changed to capitalized when it starts service.
Group Assets: Grouping the assets related to same group.

Asset Addition.

Creation of assets information in the oracle Assets application is called Asset additions. There are 3 types of Asset additions.        
                1. Detailed Addition
                2. Quick Addition
                3. Mass addition
Difference between Detailed addition and Quick addition:
For detailed additions we have to navigate several windows to enter an asset. (Additions, Book and Assignments). Whereas through quick addition button asset information will be maintained by navigating single window only. Latter detailed information would be updated. 
Detailed Addition. It is used to add a new asset with detailed information to the system. Through Detailed addition we can perform transaction such as retirement, adjustments and transfers.
Step 1: In Asset Workbench window, Click on "addition" button to create a new asset.
Step 2: Give mandatory info like Asset type, Asset Category, Description and units.
Step 3: Click on Continue, In books window, Select the corporate book and give mandatory info such as current cost, Salvage value, Depreciation Method, date in service and Prorate Conversion.
Step 4: In assignment Window, give employee Name, Expenses A/c and Location.

Mass Addition

Process of transferring fixed assets related data from Accounts Payables to Fixed Assets is called Mass additions. After transferring data from AP, data will store in interface tables.
AP --> FA Mass additions interface tables --> FA
The data which is there in “FA Mass additions interface tables” we can see from FA application. If you want to convert the invoices information to Assets, we can add necessary data at interface tables, then the data will store in FA base tables.

Setup Step:
Step 1: Create Standard Invoice in Accounts Payables. Choose Account as “Asset clearing Account” in the distribution. 
Step 2: Place curser on Account field --> Show Field and click on "Track as Asset".
Step 3: Transfer to invoice to General Ledger.
Step 4: Run Journal Import program from GL
Step 5: Run Mass Additions create in AP. This program will transfer AP data to FA.
Step 6: Prepare Mass additions in F.A.
Step 7: Run Post Mass additions program.
Step 8: Query the Asset in the Asset work bench.

Conversion of CIP to Capitalize asset.

Asset which is there under construction is called a CIP Asset. Simply we can say, the asset is not at used (i.e., not placed in service.)
Step: 1 Create a CIP Asset
Step: 2 Convert CIP Asset to Capitalize Asset.
Step: 3 Query the Asset and enter detailed information.

Asset Transfer

Asset transfer refers to changes in the assignment of 
               1. Employee          
               2. Expenses Account 
               3. Location Asset transfer can be done in 2 ways. 
               1. Individual Asset transfer. 
               2. Mass Asset transfer. 

Asset Changes

Asset Changes can be made to the Assets for the following fields:                     1. Asset Cost
                2. Life of the Asset 
                3. Depreciation Method and Rate
It can be done in 2 ways: 
                 1. Individual Changes 
                 2. Mass Changes 

Asset Revaluation

Asset Revaluation is used to increase or decrease in the asset cost. Revaluation can be done in two ways.
                1. Individual Asset.
                2. Mass Revaluation.

Asset Reclassification

Make changes for Asset Category is called Reclassification. In Oracle reclassification can be carried out only for Asset Category. It can be done in 2 ways.          

      1. Individual Asset reclassification 
      2. Mass Assets reclassification 

Retirement 

For every asset there will be a useful life of period. Once this period completed every asset should me retired. Some other reasons for retirement: Sale of Asset, Theft, Life of asset and Damage of asset. Run depreciation before retirement of asset

Roll back depreciation

If we run the depreciation without period close, then we cannot make any modifications. Then if we want to do any modifications we have to do “Roll back depreciation”.

Split

Split is dividing the Assets into individual units of assets. 
Example: We purchased 5 plants at a time for Rs 5 Lacks and we received only one invoice for all the plants. We enter this invoice through Accounts payables. Now we are sending this information to FA through Mass Additions. Now we want that 5 plants information differently. So we will split that into 5 plants. 

Merge

Merge is a process of adding multiple assets to a single Asset. Example: We have one asset like Computer. Now we are purchasing first monitor and then CPU.Now we are having 2 invoices in AP. Now this will be transfer to FA through Mass addition.These two invoices should be merged because they are single Asset.

Accounts Receivables

System Options (AR) 

Define system options to customize your Receivables environment. Is is used to set some default and control on receivables module. You can specify your accounting information, customer and invoice parameters, and how the Auto Invoice and Automatic Receipts programs will run.
There are two types of Flexfields
              1. Sales Tax Location KFF
              2. Territory KFF
Sales Tax Location KFF: It is used to calculate tax based on the different locations. In general we have different tax rates in different states.
Territory KFF: Territory KFF is used to track sales information location wise. Sales tax location KFF & Territory KFF is an optional KFF's.

Customer Profile Class

Profile class is used to group the customers based on certain parameters like with similar creditworthiness, business volume, payment cycles, and late charge policies. The pre-requiste for creation of Customer Profile Class are Payment Terms, Collectors and Statement Cycle.

Application Rule Set

It will determine how to apply receipt amount against invoice components. The invoice components are item, tax, freight, financial charges. Oracle provides by default three appliction rule set. We can define as per our requirement. The three default one are:
                1. Line First--Tax Prorate
                2. Line First--Tax After
                3. Prorate All.

Transaction Types

Transaction type will determine the following features that defaults to the transactions. They are
               1. The Accounting Information for the debit memos, credit memos, on-account credits, charge backs, commitments, invoices, and bills receivable you create in Receivables.
               2. Whether to Post in General ledger or not.
               3. Whether we can print the invoice or not.
               4. Amount Sign "+ " or "-".
               5. Tax Information.
               6. Freight Information.
               7. Natural Application Only or Allow Over application.

Transaction Sources

Transaction source will determine the numbering for individual transactions and batch transactions. And also it will determine “Transaction type”. There are 2 types of transaction Source.
           1. Manual Transaction Source.
           2. Imported (Automatic) transaction source is used to import the transactions into AR using Auto Invoice

                                      Receivable Activities
Receivable activities are used to default the accounting information for various activities. The activities are like Adjustment, Bank Error, Earned Discount, Endorsement, Finance Charges Miscellaneous Cash, Short term Debt, Unearned Discount, Receipt Write Off.
                                         Auto Accounting
Auto Accounting is used to default the accounting information into various transactions. Auto Accounting will be defined for:

                  1. Receivables Account 

                  2. Revenue Account 

                  3. Tax 

                  4. Freight
                  5. Unearned Revenue
                  6. Unbilled Receivables......etc.

Receipt Class

Receipt class will determine the:
            1. Receipt creation method
            2. Remittance method
            3. Clearance method
            4. Receipt method for various receipts Creation Methods: 

            1. Manual
            2. Automatic
            3. AP / AR Netting
            4. Bills receivables
Remittance Method:
The remittance method determines the accounts that Receivables uses for automatic receipts that you create using the receipt method assigned to this receipt class. Choose one of the following methods:
           1. No Remittance
           2. Standard
           3. Factoring
           4. Standard and factoring.
Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a receipt method with this receipt class.
Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a receipt method with this receipt class.
Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.
No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted. Note: If the creation method is Automatic, then you cannot select No Remittance as the Remittance Method.
Clearance Method:
To require receipts created using a receipt method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods:
              1. Directly
              2. By Matching
              3. By Automatic clearing
Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. (Receipts using this method can also be cleared in Oracle Cash Management.)
By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.
Receipt Method:
                  1. Check
                  2. EFT
                  3. Wire
                  4. Clearing.

Receipt Source

Receipt Source will determine:
                 1. Receipt class
                 2. Payment method
                 3. Numbering for receipt batches
                 4. Bank Account
There are 2 types of receipt sources
                 1. Manual Receipt Source.
                 2. Automatic Receipt Souce.

Remit to Address

Remit to address is an address where customer is sending the receipt details of checks and Payments to.

Aging Buckets

Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days current, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period. There are two types:
              1. Four Aging Buckets
              2. Seven Aging Bukets.
Four Aging Buckets allows to define an aging bucket with four periods. Wheres as Seven Aging Buckets allows to define an aging bucket with Seven periods.

Statement Cycle 

Statement cycle will determine when to send statements to customer. For example: Monthly, quarterly, half-yearly or Yearly.

Earned Discount & Unearned Discount

Earned discount you will receive if payment made within the due date. In some situations you will receive discount if you are not paid within due date also, this is called unearned discount.We have to create receivable activity for the other income stating that what is the reason we are receiving money on.

                                     Invoice ( Sales Invoice)
When you sell goods to record normal sales we use Invoice.
Accounting Entry:
           Receivables A/c.........................Dr
                          To Revenve.............................Cr.
                          To Freight A/c ........................Cr.
                          To Tax A/c..............................Cr.

Debit Memo

When the customer is undercharged to increase customer balance we use Debit Memo. Debit Memo is Positive sign invoice.
Accounting Entry:
              Receivables A/c.........................Dr
                           To Revenue.............................Cr.
                           To Freight A/c ........................Cr.
                           To Tax A/c..............................Cr.

Credit Memo.

When the customer returns goods or overcharged to decrease customer balance we use Credit Memo. Debit Memo is Negative sign invoice.
Accounting Entry:
                 Revenue A/c...................Dr.
                 Tax A/c ..........................Dr.
                 Freight A/c.....................Dr.
                              To Receivables A/c..................Cr.

Deposits. 

If we received advance from our customer, to record the same we use “Deposit” Transaction. Lather it will be adjusted against future invoices or future Liability. We call it as Commitment Transaction.
Steps:
1) Define Deposit Transaction Type.
2) Define Deposti Transaction Source.
3) Create a Deposit Transaction and enter detials in commitment Tab
4) Record the Receipt against deposit transaction.
5) Enter Standard Transaction and apply against Deposit Transaction Number.
6) Query the Deposit Transaction and check on Details button to check Commitment Amt.
Accounting Entry:
When you enter a deposit, Receivables creates the following journal entry:
             Receivable A/c......................Dr.
                            To Unearned Revenve A/c..............Cr.
When you enter an invoice against this deposit, Receivables creates the following journal entries:
            Receivables A/c......................Dr.
                            To Revenve A/c.............................Cr.
                            To Tax A/c.....................................Cr.
                            To Freight A/c................................Cr.
            Unearned Revenve A/c .............Dr
                            To Receivables A/c........................Cr.

Guarantee

Guarantee Transaction means that our customer will agree to purchase from us for a particular amount to avail some discount. It is known as commitment Transaction.
Steps:
1) Define Guarantee Transaction Type.
2) Define Guarnatee Transaction Source.
3) Create a Guarantee Transaction and enter details in commitment Tab
4) Enter Standard Transaction and apply against Guarantee Transaction Number.
5) Record the Receipt against Standard Transaction.
6) Query the Guarantee Transaction and check on Details button to check Commitment Amt.
Accounting Entry:
When you enter a guarantee transaction, Receivables creates the following journal entry:
           Unbilled Receivable A/c ...................Dr.
                       To Unearned Revenue A/c....................Cr
When you enter an invoice against this Guarantee Transaction, Receivables creates the following journal entries:
           Receivables A/c.........................Dr
                        To Revenue A/c.............................Cr.
                        To Tax A/c......................................Cr.
                        To Freight A/c ...............................Cr.
          Unearned Revenue A/c...................Dr.
                        To Unbilled Receivables A/c..........Cr.

Charge back Transaction

Charge back transactions are used to close the open invoice and to open new transaction with new terms. For example: Customer agreed to pay the total invoice amount on a particular date but failed to pay total invoice amount. But customer is able to pay part of the invoice amount on agreed date and requested to extend the due date without charging any interest on balance amount. In this case we have to close the existing invoice and to open a new invoice for balance amount with extended due date without charging any interest on the balance amount.
Steps:
1) Define Charge back Transaction Type
2) Define Charge back Transaction Source.
3) Define Charge back Receivable Activity.
4) Create Standard Invoice
5) Record charge back Receipt against Standard invoice and create charge back transaction for remaining amount.
6) Query the Charge back invoice No.

AP/AR Netting.

AP/ AR netting allows you to net off the payable invoice balances against receivable invoice balances for whose customers who is also your supplier. For example, If you have a customer who is also your supplier, then rather than him paying you and then you paying him, AP/AR netting allows you to pay the net difference between how much you owe the supplier and how much he owes you. After establishing a netting agreement with such trading partners, you set up the agreement and the rules associated with it in e Business Suite and you can then start to net AP and AR transactions.
Setup Steps:
1) Netting Bank A/c and create PPP.
2) Enable "Allow payment to unrelated transaction" in Receivable Options.
3) Create Receipt Class for AP/ AR Netting and give bank account Details.
4) Define Document Sequence and assign Document Category to Document Sequence in assignment window for Payable and receivables.
5) Define Netting Agreement.
6) Create Netting Batch.

Revenve Recognition

In Revenue Recognition we have two concept in oracle apps.
                 1. Invoicing Rule.
                 2. Accounting Rule.
Invoicing Rule:
Invoice rules will be determined the accounting period in which receivables are recognized.
There are 2 types of Invoice Rules:
                 1. Bills in advance
                 2. Bills in Arrears
Bills in advance: System will recognize the invoice amount as a advance or starting of a project. In case of Bill in advance " Unearned Revenue " will come into the picture.
If you enter an invoice with a Bill in Advance invoicing rule, Receivables creates the following journal entries.
In first Period:
                 Receivables A/c .....Dr
                                 To Unearned Revenue A/c......Cr
                                  To Tax A/c ...........................Cr
                                  To Freight A/c.......................Cr
In all periods of the rule for the portion that is recognized:
                  Unearned Revenue A/c ......Dr
                                  To Revenue...........Cr
Bills in Arrears: System will recognize amount at the end of the contract or project. In case of Bills in Arrears " Unbilled Receivable" will come into the picture. If you enter an invoice with a Bill in Arrears invoicing rule, Receivables creates the following journal entry:
In first Period:
                   Unbilled Receivable A/c.......Dr
                                  To Revenue ..............Cr
In all periods of Rule, for the portion that is recognized:
                   Receivables A/c..............DR
                                   To Unbilled Receivables A/c.............Cr
                                   To Tax.........................................Cr
                                   To Freight...................................CR
Accounting Rules:
Accounting Rules will determined the Accounting Period in which Revenues are recognized.
There are 2 types of accounting rules:
                        1. Fixed Schedule
                        2. Variable Schedule
Fixed Schedule:
We will define duration of the project and % of Revenue of each accounting period, at the time of fixed scheduled accounting rule setup.
Step: 1 Define Fixed Schedule Accounting Rule.
Step: 2 Create Invoice with Fixed Schedule accounting rule with Bills in advance invoice rule. Now system will automatically pic the " Unearned Revenue" & Revenve A/c from autoAccounting setup. Save and complete the transaction
Step -3: Run Revenue Recognisation program
Now, Run create accouting program and see the ouput in subledger accounting.
Variable Schedule:
At the time of set up the Variable Schedule Rule we will not enter duration of the project & % of Revenue for each accounting period.
We enter only first period Revenue % at the time of accounting rule set up. Duration of the project will be entered at the time of invoice entry.
Step – 2:
Create Invoice with Fixed Schedule accounting rule with Bills in advance invoice rule.
Step -3: Run Revenue Recognition program
Now, Run create accounting program and see the output in subledger accounting.

Deferred COGS

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing, the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles.

Standard Memo lines

Items are maintained at Inventory module. If an item is not maintained at inventory module, for example “Service charges”, which is a non inventory item, can be maintained in “Receivables” module only.

Customer Refund

Refund is noting returning back excess receipt amount recevied more than transaction amount.
Steps:
1) Define Refund Receivable Activity
2) Create Standard Transaction.
3) Create receipt with excess amount and adjust invoice and keep remaining amount as unapplied or on account.
4) Complete Remittance Process like create, approve and format.
5) Query the receipt which you need to refund excess amount to customer. Apply the excess amount to Refund. Now, click on refund attributes and give refund payment method (I.e check, wire)
6) Copy Invoice No in receipt window from Refund Status.
7) Query the invoice in AP and make payment to it.

Receipt Write-off 

You can write off unapplied cash receipt balances. Receipt write off functionality is Provided to account for small overpayments that you do not intend to refund or maintain as unapplied amounts or On account balance.
Steps:
1) Define write off limits in receivables system options window.
2) Define Receipt write off receivables activity.
3) Set Write off limit for particular user.
4) Create transaction in AR
5) Create Receipt with access amount then transation amount and apply against receipt amount against transaction invoice.
6) Now place curser in "Applied To" tab and press down arrow, apply unapplied amount to receipt write-off and save it.

Remittance.

Remittance is nothing but sending receipt information to the bank for collection. There are 2 types of Remittance Method.
             1. Manual
             2. Automatic (Refund)
There are 3 steps in the remittance process.
             1. Create
             2. Approve
             3. Format.
Steps:
1) Create a remittance batch, by giving remittance Method, Receipt Class, Receipt Method, bank, bank branches, bank account.
2) Now click on " Manual Create" Button, Now status will change form "Started Create" to " Create Completed".
3) In Main Tab, Place cursor on Receipt Method, Press "Ctrl+F11" and Select the checks you wish to send to bank and click on " Approve" Button. Now status will be " Started Approve" , when " Automatic remittance execution" concurrent request completed, Status will change to "completed Approval"
4) Click on "Format" Button, Status will be " Started Format", when Print remittance program completed status will change to "Completed Format".

Transaction Batch

Transaction batch is used to enter group of transactions based on the certain parameters.

Receipt Batch

Receipt batch is used to group the Receipts based on certain parameters. There are 3 types of Receipts batches:
                1. Manual Regular
                2. Manual Quick
                3. Automatic

Miscellaneous Receipts

Non invoice related receipts is called miscellaneous receipts, such as interest on investment, dividend etc. For creating miscellaneous receipt, we have create Miscellaneous account and give GL account in Receivable activities window.

Auto Cash Rule Set

Receivables provides five AutoCash rules that we can use to create our own AutoCash rule sets. When we run Post QuickCash to apply customer's receipts, Receivables tries to use each AutoCash rule within an AutoCash rule set. If the first rule in the set does not find a match, Receivables uses the next rule in the sequence, and so on until it can apply the receipt. Auto cash rule set is used to apply receipt amount against invoices. The following are the five Rules:
             1. Clear the account
             2. Clear the past due invoices
             3. Clear the past due invoices grouped by payment terms
             4. Match payment with invoice
             5. Apply to the oldest invoice first

Receipt Reversal

Receipt reversal is nothing but a kind of cancellation of Receipt. There are 2 types of Receipt Reversal Methods:
               1. Standard Reversal.
               2. Debit Memo Reversal.
Standard Reversal: When we reverse receipt with the standard reversal, all the transactions which are associated with that receipt will get reversed.
Debit Memo Reversal: When we reverse receipt using debit memo reversal all associated transactions will not get reversed, but new debit Memo get created with same amount.

Auto Lockbox

Lockbox is a service offered by banks to companies in which the company receives payments from their customers by mail to a post office box and the bank picks up the payments and deposits it in the company’s bank account. In away, the company is outsourcing its AR function of collecting the checks and depositing it in the bank. The bank then informs the company of all the payments received. They normally send a Flat file (text file) to the company that gives all the details of the deposits made in the bank account. The details captured in the flat file depend on the arrangement between the bank and the company. This flat file is referred to as the Lockbox file. The company can then import this Lock box file in their system to create receipts and apply these receipts to the open invoices. Oracle Receivables provide a standard functionality to import the lock box file to create the receipts. It also provides you with the flexibility to define customized lock box formats to enable you to accept the lock box file in any format for any of the banks. The Oracle Lock box functionality can also be extended to convert Receipts information from any other legacy system or from the remittance advice the company gets directly from their customers.
Setup'sYou need to setup the following before running the Lockbox process
1) Bank and Bank Accounts: You define your internal bank accounts in Accounts Receivables. This is the bank account where the customer payments are deposited.
2) Receipt Class: The Receipt Class determines the processing steps for the receipts and you assign Receipt Methods to your Receipt Class. The processing steps for any Receipt include confirmation, remittance and reconciliation.
3) Receipt Method: Receipt Method is assigned to a receipt class and it determines how to account for the receipts using the Receipt Class. For one Receipt Class, you can have more than one Receipt Methods. You associate bank accounts and the GL account combinations for Cash, Remittance, and Bank Charges etc with the Receipt Method.
4) Receipt Source: You define Receipt Batch Sources to provide default values for Receipt Class, Receipt Method and the Remittance Bank Account. Your Receipt Source also determines if the batch numbering system is manual or automatic.
5) Lockbox: Define a lockbox for your Lockbox service from each bank. The lockbox setup includes a Lockbox number (You get a Lockbox number from your bank).
6) Lockbox Transmission Formats: Oracle Receivables AutoLockbox uses the Transmission format while importing
the data from the lockbox file into Receivables. Transmission formats indicate how the data in the Lockbox file is organized.
7) AutoCash Rule Sets: AutoCash Rule Sets determines the sequence of AutoCash Rules that Post QuickCash
program uses to apply the receipt amount to the customer account open items.
Control file: A Control file is a sql loader file to load the lockbox file in Receivables payment interface table(ar_payments_interface_all). This file should have the ‘.ctl’ extension and should be placed in the $AR_TOP/bin directory. Lock box Processing Steps:
Start the lockbox processing by copying lockbox data file in required Folder.
Run Submit lockbox process.
Data is imported to AR_Payments_Interface_all tables. Validation process starts, If any errors found, Recify the same using Maintain transimission Data window.
If no error found, it will completed validation and quick cash batch is created.
Post quick cash program will run
Finally receipts applied and customer balances updated. Here end the process.