Prepayment Concept, Prepayment Statuses, Accounting Entries for Prepayment Concept.

It is advance payment that we pay to the supplier to supply the goods/ services. There are two types of Prepayments, they are Permanent and Temporary  In case of Permanent Prepayment it acts like deposit with the suppliers. It will be adjusted only after converting Permanent Prepayment to Temporary Prepayment. In case temporary prepayment we adjust the prepayment amount at the immediate invoice received. The following are the different statuses in the invoice.
1. Never validated ( Before Validation of Prepayment Invoice)
2. Unpaid ( After Validation of Prepayment Invoice and when payment is not made)
3. Permanent ( Permanent Prepayment) (After Payment to Prepayment Invoice)
4. Avaliable ( Temparory Prepayment) (After Payment to Prepayment Invoice)
5. Fully Applied. ( In case Prepayment Amount is applied fully to a Standard Invoice)
Accounting Entries:
For Prepayment Invoice:
               Prepayment A/c..........Dr
                            To liability a/c...................Cr
For Payment to Prepayment Invoice
               Liability A/c ............Dr
                            To Cash A/c.......................Cr.
In Case Of Standard Invoice
               Expenses A/c .............Dr
                            To Liability A/c...................Cr
Apply the Prepayment to Standard Invoice
               Liability A/c ...........Dr
                            To Prepayment A/c .............Cr

AutoCash 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.
The importance of the five rules are explained below.
Clear the Account: Post QuickCash uses this rule only if your customer's account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer's account balance, Post QuickCash uses the next rule in the set.
Apply to the Oldest Invoice First: This rule matches receipts to debit and credit items starting with the oldest item first. This rule uses the transaction due date when determining which transaction to apply to first.
Clear Past Due Invoices: This rule is similar to the 'Clear the Account' rule because it applies the receipt to your customer's debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due.
Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the 'Clear Past Due Invoices' rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date. When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer's credit memos and past due invoices.
Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or chargeback that has a remaining amount due exactly equal to the receipt amount.
If none of the AutoCash Rules apply, the remaining amount is placed as Unapplied or On-Account depending on the Remaining Remittance Amount option specified in your AutoCash Rule Set.

Auto Lockbox

Lock box is a service offered by banks to companies in which the company receives payments from their customers and deposits the same company’s bank account. 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. You 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.

AutoAccounting Concept in Accounts Receivables

Auto accounting is used to default the accounting information for manual transactions or imported transaction using autoinvoice. Auto accounting will be defined for:

             Receivables Account A/c 

             Revenue Account A/c 

             Tax A/c 

             Freight A/c 

             Unearned Revenve A/c 

             Unbilled Receivables A/c 

             AutoInvoice clearing A/c

To set default accounting there are two options in Auto Accounting concept. They are Tables name and Constant 

1. Table name: Incase of auto accounting with Table Name. We have Options like Salesreps, Transaction Type, Standard Lines and Taxes.
Salesreps: Accounting will be picked for above a/c's from the associated a/c's of salesperson.
Transaction Type: Accounting will be picked for above a/c's from the transaction Type selected in the AR invoice.
Standard Lines: Select this option, to use standard memo line item or inventory item to select your revenve a/c
Taxes: Enter this option to use tax codes when determining your tax account.
2. Constant: Enter the constant segment value to default the accounting to transaction.

Unable to apply Prepayment to standard Invoice. System not showing any error Message.

Problem Identification: In Prepayment Invoice distribution line the user has reversed the distribution line and then, the negative amount reversal line he made it zero and validated the invoice. As header amount and distribution are equal. System has validated the invoice. while applying standard invoice to Prepayment system is not showing prepayment invoice.
Solution: From SQL Query, I have verified the AP_Invoices_All and AP_Invoice_distributions_all Tables and found that, reversal_flag column as 'Yes' (Which should be Nil) and Prepayment_remaining_amount column as nil(As prepayment status is available Prepayment_remaining_amount column should have available prepayment amount value). Now, with update SQL Query, we have set Reversal_flag column as null and Prepayment_remaining_amount column with available amount. Now, system show Prepayment invoice, while applying with standard Invoice.

Automatic offset Method

This feature is used to create offset credit side liability a/c's in payables in such a way that all balancing segment of debit should be equal to credit. There are three type of automatic offset Method
          1) Balancing Account.
          2) Natural Account.
          3) None
Balancing: If you are select balancing as your automatic offset method, To create offset credit lines, Payables picks the balancing segment part accounting from Invoice Distribution lines a/c and remaining code combination will be picked up from Supplier Liability a/c.
Natural Account: If you are select natural as your automatic offset method then to create offset credit lines, The system will pick natural a/c part from Supplier Liability a/c and remaining code combination will be picked from Invoice Distribution a/c.
None:If you are select none as your automatic offset method. It means automatic offset method concept is not applicable.
Illustration:
Invoice “123” is created on Supplier “ABC” for an amount of Rs.10000/-. The invoice distribution accounts given as 01-001-0001-0001-000 The liability account defined at the supplier site is “01-002-0002-0002-000”.
The current accounting entry is
Account Combination                             Debit              Credit
01-001-0001-0001-000                           10000
01-002-0002-0002-000                                                   10000
For Balancing automatic offset method the desired accounting entry will be as follows
Account Combination                             Debit               Credit
01-001-0001-0001-000                           10000
01-002-0002-0002-000                                                   10000
For Natural automatic offset method the desired accounting entry will be as follows
Account Combination                             Debit               Credit
01-001-0001-0001-000                           10000
01-001-0002-0001-000                                                   10000

After Ship Confirmation, The Delivery status is closed but Sales Order status is "Picked". After running Interface Trip Stop SRS program again but Sales Order line is Still with "Picked" Status. Unable to interface the Sales Order

Solution: It's Foreign Currency Sales order. Currency Conversion Type and Conversion Rate are not defined at the Sales Order Level. Now, Updated Conversion Types and Currency Rate. and Rerun Interface trip Stop SRS Program, The sales order line status will changed to "Shipped" and then Run workflow background program, Now the status of sales Order will change to" Closed". Now run the autoinvoice master program, the invoice will be successfully imported to Accounts Receivable.

In India - Debtors Ledger Report particular customer Name and customer No is not found.

Solution: The user has not not created customer in Customer additional info Form. After creating the same, the name of that particular customer appeared in the India - Debtors Ledger Report parameters.

Payables Period Closing Procedure

1. Review and Complete All Open Transactions for the Period Being Closed. (Complete all pending Invoices, Expenses Report Export Program, Unvalidated Invoices, Clear holds, Journal Import). 
Use the following Reports to complete Pending Transactions.  
    A) Invoice Register (with Unvalidated Invoices parameter as “YES”).

    B) Invoice on Hold Report.

    C) Unaccounted Transaction Report.
2. Run the Payables Auto Approval Process for All Invoices / Invoice Batches.
3. Complete all Payment against the period being closed. Ensure you process all Payment Process request(PPR) before you close the period.
4. Reconcile Payments to Bank Statement for the Period.
5. Run Create Accounting Program. It will create and transfer accounting for Payables Modules to General Ledger.
6. Review the Payables to General Ledger Posting Process After Completion
7. Submit the Unaccounted Transactions Sweep Program
8.  Run Mass Additions Transfer to Oracle Assets
9. Close the Current Oracle Payables Period
10. Open the Next Payables Period
11. Reconcile with the General Ledger. The following standard reports from payables module can be used for reconciliation.
     A) Account Payables Trial Balance.   
     B) Posted Invoice Register.
     C) Posted Payment register.

Requisition Not Getting Imported for Drop Shipment Order

Step 1:You will need to run: 
select * from PO_Requisitions_interface_all 
and see what the transaction_id is 
Then run 
update po_requisitions_interface_all 
set request_id = null 
, process_flag = null 
where transaction_id = (from above) 
Then rerun the Requisition Import. 

Step 2:Please run Run "Requisition Import Exceptions Report" & choose yes in delete exceptions in parameter.