Monday, August 4, 2008

Accounting For Oracle Receivables

Flow of Accounting Information:

- If you are using Oracle Order Entry (without customizations), no accounting information is available until you run AutoInvoice. You pass the transactions to Oracle Receivables using the Receivables Interface. You then run AutoInvoice which creates the actual transactions and uses AutoAccounting to derive the segment values for the GL Accounts. If you are using Oracle Projects the account segment values are derived by a Projects’ process also called AutoAccounting and passed as values to Oracle Receivables via the Streamline process, also using AutoInvoice.

- Whether you are manually entering your receipts or processing them through AutoLockbox, the accounting information is automatically determined by Oracle Receivables when you create and apply the receipts (not when it is still a "QuickCash" batch). The values used are based on the setup values for the bank where the receipts were deposited and the invoices they are paying.

General Ledger Interface:
- You pass accounting information from Oracle Receivables to Oracle General Ledger using the General Ledger Interface. If you have properly set up Oracle Receivables, you should never have to create manual journal entries in your General Ledger and the two systems should always be in sync.

- When you invoke the General Ledger Interface process, you initiate multiple programs that:
Finds all of the records for the period you specified that have not yet been passed to the General Ledger;
1. Determines if the debits equal the credits;
2. Passes the data to GL for editing; and
3. Marks the records as having been passed (so they will not pass twice).

- If you have specified that you want the Journal Import to also run, this process verifies that the individual segments and combinations of segments are valid. Only when the Journal Import completes successfully are the Journals available for posting.

Tips:
1. Always run the General Ledger Interface using the starting date of the period through the last day of the period. This is applicable no matter when you are running the process or if you know you will never have activity for that date, since sometimes the system uses dates other than the dates you expect.
2. Depending on which patches you have applied, you may or may not see the Unposted Items Report. If this report does run, always check each page to ensure that you have no items that could not be passed to the General Ledger. If anything besides headings appears, work with your IT department to resolve (since this is usually caused by a bug).
Verify that the amounts in the General Ledger Interface Report are reasonable and that the debits equal the credits.
3. Verify that the Journal Import has a status of "SUCCESS." If not, you had a problem that will need to be resolved or none of the items in the batch will be available for posting. Generally you have a problem if an account was valid when the activity was created, as you know, you cannot save with invalid values but, someone has since disabled either a segment or the combination. An example of this is your Accounts Receivable account that may have been valid when the invoice was originally created but it is not longer valid, and a receipt was just applied against it. When you apply a receipt to an invoice it always causes an offsetting entry against the original Accounts Receivable account.
Should this occur, then
1. Re-enable the segment or combination;
2. Re-run the Journal Import (in GL -- be sure to include the applicable id);
3. Create a manual journal entry (also in GL) to move the activity from the bad account to the proper account (this is my one exception to never creating manual journal entries); and
4. Re-disable the segment or combination.
By making the corrections in this way you are able to keep your GL in sync with your AR activity and you have an audit trial of what you did to make the correction. You have the option to correct in the Import Corrections form (in GL), but you lose the audit trail of what you did and why. Note what you did and why and storing the notes in a handy binder so you will be prepared when the auditors ask why you did what you did.

Journal Entries Reports: The Journal Entries reports are the best way to verify the actual accounting for Oracle Receivables’ activities and the only way to view the accounting for the foreign currency gains and losses. There are actually four reports that give you varying levels of details regarding the journal entries you will be creating or have already created. These reports may be run at anytime before or after you run the General Ledger Interface. Your options are: Detail by Account (very large), Summary by Account, Detail by Category (also large) and Summary by Category.

Tip: Run the Summary by Category and review to insure that there are no invalid or illogical accounts, prior to running the General Ledger Interface. If you find funny accounts, you can correct or create offsetting entries prior to posting. Run the Detail by Category (just for that category and account) to see which specific activities used the funny account. Correct the activity if possible. If not possible (i.e., adjustment), create an offsetting entry using the proper account.
Tip: If you run this report for Unposted Items only, you must leave the Posted Date range blank or nothing will appear on the report.

Period Close Procedures:

Tip:Never have more than one AR period open at one time. There have been problems with entries appearing partially in one period and partially in another. Also, you may accidentally enter activities in a period other than the period you intended.
Create a checklist to insure that you always know where you are and what you have to do next, so you will not forget anything.
Balance your AR activity to the Aging:

Old Aging Balance -----(Aged Trial Balance - 7 Buckets by Account)
________________________________________________
+ New Invoices -------Transaction Register
+ Debit Memos ------- Transaction Register
+ Chargebacks --------Transaction Register
- Credit Memos ------ Transaction Register
- Receipts Applied ---- Unapplied Receipts Register
+/- Adjustments ------Adjustment Register
- Items Not Aged ----- Invoice Exceptions Report
____________________________________
New Aging Balance --- Aged Trial Balance - 7 Buckets by Account

Also balance your AR activity to your GL activity using the Journal Entries Report - Summary by Category and the Account Analysis report (in GL). Note any manual journal entries that used "your" accounts.

Accounting Details
The GL Accounts may or may not appear on the form (depending on what you are doing) but almost every activity you perform has an accounting impact. In order to understand this impact it is necessary to know:
1) what accounts are impacted by each transaction;
2) what are the related set ups;
3) what you may change and/or override and what is out of your control.

AutoAccounting : AutoAccounting a very powerful setup feature that tells Oracle Receivables how to determine the individual segment values for your Transactions (invoices, debit memos, credit memos, chargebacks and commitments) using the rules that you specify. You may use this feature when creating Transactions manually or through AutoInvoice. The types of accounts impacted by AutoAccounting include:
- (Accounts) Receivable
- Revenue
- Tax
- Freight
- Unearned Revenue (for deferred revenue recognition)
- Unbilled Receivable (for deferred receivables recognition)
- AutoInvoice Clearing (for problems with extended amount)
- Possible sources of this information are the values you set up for the following:
- Transaction Types
- Salesreps
- Standard Lines (Items or Memo Lines)
- Taxes
- And/or hard coded values.

You may get one segment value for one type of account from a different place than for another. See Appendix 1 for an example of a typical AutoAccounting setup.
You can use a similar worksheet to test the setup of your AutoAccounting rules. List your Accounting Flexfield segments in the left column. For each type of account select the source of each segment (based on the list of available sources) and fill in that box. Test your theory by listing what all the setup accounts would be for a Transaction Type, Salesrep, Item, Tax and Memo Line. Then use a white-board and fill in each segment, for each type of account, with the values from each of the related sources. Verify that the combinations are actually valid, if not, redesign how they will be set up or redefine your AutoAccounting rules. Once you are satisfied with the results, enter your AutoAccounting rules into your test system and start creating manual invoices. Verify that you have not created invalid account values as the defaults.
Tip: I prefer to assign all segments to sources versus using hard coded values. This seems more flexible for future changes.

Invoices: When you create an invoice either through AutoInvoice or manually, you take advantage of AutoAccounting to provide the default Accounting Flexfield values. For manual invoices you have the option to override the default values.
For a standard Invoice:
DR : AR (AutoAccounting - may override)
CR : Revenue (AutoAccounting - may override)
:Tax (AutoAccounting - may override)
:Freight (AutoAccounting - may override)

You may also create invoices with special accounting and invoicing rules that allow you to defer revenue recognition for the percentage and number of periods that you specify. The following is an example of an invoice created with deferred revenue recognition for $12,000 split evenly over 12 periods:

For invoices with deferred revenue: a) When first created:
DR : AR (AutoAccounting - may override) 12000
CR :Unearned Revenue (AutoAccounting) 1000
DR : Unearned Revenue (AutoAccounting) 12000
CR : Revenue (AutoAccounting - may override) 1000

b) For each of the next 11 periods:
DR : Unearned Revenue (AutoAccounting) 1000
CR : Revenue (AutoAccounting) 1000

If you are using deferred revenue recognition, you need to run the revenue recognition process for each period (Run Revenue Recognition) and runs automatically as part of the General Ledger Interface.

Tip: To reduce the time it takes to close the period, run Revenue Recognition prior to the time when you are actually closing (e.g., the night before the close). This will process the majority of the updates prior to the actual close.
Recurring Invoices (Transaction Copy) are treated like regular invoices, except they have different GL dates. Once you have created an invoice copy, it really is just another invoice with different dates.

Debit Memos: Debit memos work just like standard invoices (you even create them on the same forms) -- taking advantage of AutoAccounting but with overridable segments. If you defined Memo Lines for use with your debit memos, they will provide the default accounting segments if you have set up AutoAccounting to use Standard Lines values for your Revenue accounts.

Credit Memos And On Account Credits: There are two types of credit memos: credit memos that you create to offset an individual invoice are called "Credit Memos." Credit memos that impact a customer’s account but are not initially tied to a specific invoice are called "On-Account Credits." On-account credits may be tied to invoice(s) using the Receipts Applications window, at any time. The accounting for Credit Memos usually offsets the applicable accounts from the original invoice (if you set your System Profile option AR: Use Invoice Account For Credit Memo to "Yes"). Credit memos and on-account credits that are created using AutoInvoice take advantage of AutoAccounting and/or hard coded values. You may override the default values if you are entering manually.

Credit Memo tied to an invoice:
DR : Revenue (from the related invoice - may override)
: AR (from the related invoice - may override)
: Tax (from the related invoice - may override)
CR : Freight (from the related invoice - may override)

On-account credits take advantage of AutoAccounting and Standard Lines (Memo Lines) depending on how you set up your AutoAccounting rules for the default credit and debit GL Accounts. You may override the default values at entry time if you are entering manually.

DR : Revenue (Memo Line - may override)
CR : AR (AutoAccounting - may override)

When you apply an on-account credit to invoice(s), you debit the credit account you used when you created the on-account credit. The Accounts Receivable account for the invoice being offset is credited. You may not override these values.
DR : AR (from the On-Account Credit)
CR : AR (from the invoice)

Cash Receipts (Excluding Miscellaneous Receipts): The accounting for receipts, except for Miscellaneous Receipts, is totally controlled behind the scenes by Oracle Receivables. The GL Accounts are determined by the values you defined in Receipt Class for the batch.
NOTE: You have one Cash, Unapplied, On-Account, Unidentified, Earned Discount and Unearned Discount account for each bank and class, which does not allow you to split the Unapplied, etc. accounts for the applicable cost center or division.
You may set up different values for each bank and class that you use (especially important for the cash account). Or, you may share the GL Accounts for multiple bank accounts (i.e., the unapplied and discount accounts). The key accounts are:
- Your cash account (the default debit account for that bank account);

Tip: Often AP and AR share the same bank account but it is helpful to use a different but sequential GL account for each. This eases the reconciliation but you can roll together for FSG reporting.
- Your unapplied payments account (the default used until you match the payment to an invoice);
- Your on-account account (used to account for pre-payments until you apply them to invoice(s));
- Your unidentified account (used for receipts where you do not know which customer sent the receipt);
Tip: Often companies use the same GL Account for unapplied, on-account and unidentified. This is fine as long as: the account is not used for anything else and it is not an Accounts Receivable or cash account.
- Your earned and unearned discount accounts (used when a client pays invoices in accordance with the early payment terms. These are also often the same. Earned discounts are for payments made within the discount terms, unearned discounts are paid after the discount term but are allowed anyway.

When you match a receipt to an invoice, the cash account (debit) defaults from the Receipt Class for the Receipt batch. The Accounts Receivable account (credit) defaults from the invoice that is being paid.
NOTE: Even if you instantly match a payment to an open invoice, Oracle still creates credits and debits to the unapplied account.

Payment applied to an invoice without discount terms:
DR : Cash (Receipt Class)
: Unapplied (Receipt Class)
CR : Unapplied (Receipt Class)
: AR (from the invoice)

Payment applied to an invoice with discount terms:
DR : Cash (Receipt Class)
: Unapplied (Receipt Class)
: Discount (Receipt Class)
CR : Unapplied (Receipt Class)
: AR (from the invoice)

When you leave a receipt as unapplied:
DR : Cash (Receipt Class)
CR : Unapplied (Receipt Class)

When you identify a receipt is as a pre-payment or deposit:
DR : Cash (Receipt Class)
CR : On-Account (Receipt Class)

For unidentified receipts:
DR : Cash (Receipt Class)
CR : Unidentified (Receipt Class)

When you apply unapplied, on-account or unidentified receipts, the accounting is determined by the original status. The accounts used are based on the accounts you currently are using for the Receipt Class. The Accounts Receivable account still comes from the invoice.
DR : Unapplied (Receipt Class)
On-Account (Receipt Class)
or Unidentified (Receipt Class)
CR : AR (from the invoice)

When you unapply a receipt, the accounting is just the opposite of the application accounting. You debit the AR account for the original invoice and credit the unapplied account based on the current unapplied account for the Receipt Class:
DR : AR (from the invoice)
CR : Unapplied (Receipt Class)

When you reverse a receipt, you have two possible options: re-open the invoices you previously paid or create a debit memo for the amount of the reversed payment. If you re-open the invoices, the system offsets the accounts used when you originally applied the payment (from the invoice and the cash account). Note that this process also impacts the unapplied account.

DR : Unapplied (Receipt Class)
: AR (from the invoice)
CR : Cash (Receipt Class)
: Unapplied (Receipt Class)

If you create a debit memo, you credit the original cash account but debit the Accounts Receivable Account for the Debit Memo type you selected. You may override the Accounts Receivable account when you enter the payment reversal.
DR : AR (Transaction Type - may override)
CR : Cash (Receipt Class)

Chargebacks: You create Chargebacks when you are applying cash to close the original invoice and create a new invoice for the amount that the customer short paid. By definition, there is a one to one relationship between a Chargeback and the original invoice. You need to set up values for Chargebacks in 3 places: Receivables Activity where you specify the "wash" account used when creating a Chargeback. Transaction Types where you specify the default AR account. A Memo Line ("Chargeback Line") is seeded by Oracle but it is just used for the line description when you print the Chargeback and has no accounting impact. The Accounts Receivable account for the new invoice is based on the Accounts Receivable account for the Chargeback but you may override it at entry item. Oracle credits the Accounts Receivable account for the original invoice (note that these two accounts may be different).

In the Category of Adjustment:
DR : Chargeback Adjustment (Receivables Activity)
CR :

In the Category of Adjustment (AR):
DR :
CR : AR (from the original invoice)

In the Category of Chargeback:
DR :
CR : Chargeback Adjustment (Receivables Activity)

In the Category of Chargeback (AR):
DR : AR (from the chargeback - you may override)
CR :

In the Category of Trade Receipts:
DR : Cash (Receipt Class)
CR :

In the Category of Trade Receipts (AR):
DR : Unapplied (Receipt Class)
CR : AR (from the original invoice)
: Unapplied (Receipt Class)


Miscellaneous Receipts: Miscellaneous Receipts are any receipts that are not for open receivables. Examples include Cobra payments, T-shirt sales, utility refunds, and returns on investments. Due to the nature of this activity, you may need to credit any account within the chart of accounts. The Distribution Window in the Receipts form allows you to do just that. You may run into an Account Security Rule set up to restrict usage of accounts by application. If you find that you may not use an account that you need, work with your System Administrator to change the Account Security Rules.
You may pre-define the credit accounts that you usually use to speed entry (using Receivables Activity) but you also have the flexibility to override the values at entry time. You also have the ability to split a single receipt into multiple accounts (you may also pre-define those accounts using Distribution Sets).
If you will always be splitting the accounts, you should define a Distribution Set. A distribution set is a name and one or more GL Accounts and percentages that you define. You must create a Receivable Activity that refers to the Distribution Set.
When you enter Miscellaneous Receipts, you refer to the Receivables Activities that you defined above. However, you may override the default GL Accounts, the individual segments, the percentages and/or the amounts. The cash account used defaults based on the Receipt Class for the bank you specified on the Batch Screen, and you may not override or view the value.

DR : Cash (Receipt Class)
CR : Miscellaneous Account(s) (Receivables Activity or Distribution Set - may override)


Receivable Adjustments: Receivable Adjustments are generally write-offs, or changes to the invoice balance due for over- or under-payment by the customer, or the addition of finance charges. Pre-define commonly used adjustment types using the Receivables Activity form. This speeds entry, but you may override the default values as you enter the adjustments. NOTE: Always define a GL Account and not a Distribution Set when you define Receivable Activities for adjustments.

Tip: When entering an adjustment, never use an Accounts Receivable Account. Oracle Receivables already automatically offsets the AR account for the invoice being adjusted and you will create a wash entry.

A Receivables Adjustment is always applied to a specific invoice so it impacts the Accounts Receivable account for that invoice. Receivables adjustments may either be positive (debit AR, and increase the invoice balance) or negative (credit AR and decrease the invoice balance). Examples include:

Add a finance charge (note that this is a positive adjustment that increases the balance due):
DR : AR (from the invoice)
CR : Finance Charges (Receivables Activity - may override)

Reduce the freight amount:
DR : Freight (Receivables Activity - may override)
CR : AR (from the invoice)

Write-off the invoice balance:
DR : Cost of Doing Business (Receivables Activity - may override)
CR : AR (from the invoice)

You may use AutoAdjustments to perform mass cleanup of open invoices and on-account credits. The Accounts Receivable account credited is the Accounts Receivable account for the transaction. The account debited is based on the Receivables Activity you select when you submit the AutoAdjustment process. Note that ALL adjustments made during this process will use that exact same "write off" account even if the original invoices are for different companies, or cost centers. This may be a consideration in determining if you can actually utilize AutoAdjustments, or if you want to run multiple passes of AutoAdjustment by Transaction Type and Adjustment Activity.

Foreign Currency Gains and Losses: Transactions that are not in your base currency may cause gains or losses to occur due to fluctuations in the exchange rates. This is automatically accounted for by Oracle Receivables. When you enter the Transaction, the applicable exchange rate for the date you enter it is stored with the transaction. When you enter the related receipt the applicable exchange rate for the date you enter the receipt is stored with the receipt. The gain or loss is determined based on the difference in the value of the money (in your base currency) between when the invoice was created and when the receipt was created. The gain and loss accounts are derived based on the values in your System Options and how you set up Flexbuilder. Note that most companies use the default setup for Flexbuilder. Note that there is no gain or loss if you apply an adjustment since both the adjustment and the invoice use the same rate. You can predict Gains and Losses using the Projected Gains/Losses Report. You can only view the gain/loss accounting activity by running the Journal Entries Report.

Gain - now worth more:
DR : Cash (Receipt Class at the receipt rate)
: Unapplied (Receipt Class at the receipt rate)
CR : AR (from the invoice at the invoice rate)
: Unapplied (Receipt Class at the receipt rate)
: Gain (System Options - difference between the invoice and receipt values)

Loss - now worth less:
DR : Cash (Receipt Class at the receipt rate)
: Unapplied (Receipt Class at the receipt rate)
: Loss (System Options - difference between the invoice and receipt values)
CR : AR (from the invoice at the invoice rate)
:Unapplied (Receipt Class at the receipt rate)

Oracle AR receivables setups

Receivables Setup Checklist


Step 1: Define Your Set of Books (Required)
Step 2: Decide How to Use the Account Generator (Required)
Step 3: Define Your System Item Flexfield Structure (Required)
Step 4: Define Your Organizations (Required)
Step 5: Define Your Territory Flexfield (Optional)
Step 6: Define Your Sales Tax Location Flexfield Structure (Required with Defaults)
Step 7: Define Flexible Address Formats (Optional)
Step 8: Maintain Countries and Territories (Optional)
Step 9: Define Your Transaction Flexfield Structure (Optional)
Step 10: Define Your AutoCash Rule Sets (Optional)
Step 11: Define Your QuickCodes (Optional)
Step 12: Define Your AutoInvoice Line Ordering Rules (Optional)
Step 13: Define Your AutoInvoice Grouping Rules (Optional)
Step 14: Define Your System Options (Required)
Step 15: Define Your Payment Terms (Required with Defaults)
Step 16: Define Your Accounting Rules (Optional)
Step 17: Open Your Accounting Periods (Required)
Step 18: Define Your AutoAccounting (Required)
Step 19: Set Up Cash Basis Accounting (Optional)
Step 20: Define Your Transaction Types (Required with Defaults)
Step 21: Define Your Transaction Sources (Required)
Step 22: Define Your Collectors (Required with Defaults)
Step 23: Define Your Adjustment Approval Limits (Required)
Step 24: Define Your Remittance Banks (Required)
Step 25: Define Your Distribution Sets (Optional)
Step 26: Define Your Receivables Activities (Required)
Step 27: Define Your Receipt Classes (Required)
Step 28: Define Your Payment Methods (Required)
Step 29: Define Your Receipt Sources (Required)
Step 30: Define Your Aging Buckets (Required with Defaults)
Step 31: Define Your Statement Cycles (Optional)
Step 32: Define Your Statement Messages (Optional)
Step 33: Define Your Dunning Letters (Optional)
Step 34: Define Your Dunning Letter Sets (Optional)
Step 35: Define Your Territories (Optional)
Step 36: Define Your Salespeople (Required with Defaults)
Step 37: Define Your Profile Options (Required)
Step 38: Define Your Tax Codes and Rates (Required)
Step 39: Define Your Customer Profile Classes (Required with Defaults)
Step 40: Define Your Customers (Required)
Step 41: Define Your Remit-To Addresses (Required)
Step 42: Define Your Customer Relationships (Optional)
Step 43: Define Your Customer Banks (Optional)
Step 44: Define Your Lockboxes (Optional)
Step 45: Define Your Transmission Format (Optional)
Step 46: Define Your Receipt Programs (Optional)
Step 47: Define Your Unit of Measure Classes (Optional)
Step 48: Define Your Units of Measure (Required with Defaults)
Step 49: Define Your Standard Memo Lines (Optional)
Step 50: Define Your Item Tax Rate Exceptions (Optional)
Step 51: Define Your Tax Exemptions (Optional)
Step 52: Define Your Document Sequences (Optional)





Setup Steps


Step 1 Define Your Set of Books (Required)
You need to define at least one set of books before you can implement and use Receivables. A set of books includes an accounting calendar, a functional currency, and an Accounting Flexfield structure.
If you previously defined your set of books in the Setting Up Oracle Applications Set of Books section while setting up a different Oracle Applications product, proceed to the next step.
If you have not defined your set of books, complete the following steps:


1- Define your Accounting Flexfield
2- Define your Calendar Period Types
3- Define your Calendar Periods
4- Define your Currencies
5- Define your Accounting Flexfield Combinations (Optional)
6- Define your Set of Books
7- Assign your Set of Books to a Responsibility
8- Define your Daily Conversion Rate Types
9- Define your Daily Rates (Optional)You specify which set of books your Receivables installation uses in the System Options window.


Additional Information: If you use the Oracle Applications Multiple Organization Support feature, you can use multiple sets of books for one Receivables installation.


Step 2 Decide How to Use the Account Generator (Required)
The Account Generator ensures that Receivables substitutes the correct balancing segment values when you generate finance charges or post exchange rate gains and losses to your general ledger. You need to review the default process that Receivables uses to see if it meets your accounting requirements. You can optionally customize the Account Generator for each set of books that you have defined.


Step 3 Define Your System Items Flexfield Structure (Required)
Proceed to the next step if you previously defined your System Items Flexfield while setting up another Oracle Applications product.
If you have not installed Oracle Inventory or Oracle Order Entry and you want to record and report your item information, you need to define your System Items Flexfield.
All Oracle products that reference items share the System Item Flexfield and support multiple segment implementation. The system provides a seeded System Item Flexfield for you (Code = 'MSTK'). You must define a structure for this flexfield rather than creating a new flexfield.
Once you have defined your System Item Flexfield structure, you need to specify your Item Flexfield profile options.
Set the OE: Item Flexfield profile option at the site level to specify the System Item Flexfield structure you want to use. Set this to 'System Items,' which is the System Item Flexfield structure you have just defined.
Next, set your AR: Item Flexfield Mode profile option to choose your preferred method of entry for this flexfield within Receivables. This default value is concatenated segment entry. Refer to Step 37 for details on how to set up profile options.


Step 4 Define Your Organizations (Required)
Proceed to sub step 3, Specify your Item Validation Organization Profile Option, if you have previously defined your organizations while setting up another Oracle Applications product.
1. Define Organization
You need to define at least one organization to use Receivables. This organization lets you use the inventory forms in Receivables if you do not have Oracle Inventory installed.
2. Define Organization Parameters
You must define the control options and account defaults for your organization before you can define items or perform any transactions. You must assign a unique short code to your organization and use this code to identify the organization with which you want to work.
3. Specify your Item Validation Organization
You need to set the OE: Item Validation Organization profile option to the organization of the Inventory Organization whose item master you want to use.
If you defined your organization in step 1, set the profile option to this organization. Otherwise, select an organization from the list of values.
Refer to Step 37 for details on how to set up profile options.
4. Define Items
Once you have set up your Item Flexfield and chosen your Item Validation Organization, you can optionally define your items in the Items window. Proceed to the next step if you have previously defined your items while setting up another Oracle Applications product.


Step 5 Define Your Territory Flexfield (Optional)
You can use Territory Flexfields for reporting purposes. Receivables provides a default structure for your Territory Flexfield. You can associate Territory Flexfields with salespeople, invoices, commitments, and customer business purposes. Proceed to the next step if you do not want to define Territory Flexfields.


Step 6 Define Sales Tax Location Flexfield Structure (Required, Default)
Receivables uses the customer shipping address to determine the sales tax rate on transactions for all customers in the country you define in the Systems Option window as your home country. Proceed to the next step if you are not charging your customers tax based on their shipping address.
The seeded Sales Tax Location Flexfield structures are as follows:
Country
State and City
Province and City
City
Province
State, County and CityProceed to sub-step four if you are planning to use one of the seeded structures, otherwise begin with sub step one.


[If you use a Sales Tax Location Flexfield that contains a segment other than country and wish to set up a flexible address format for your home country, every component in your Sales Tax Location Flexfield structure must also exist in your flexible address style for that country.]


Sub-step one through sub-step three briefly describe how you can create a customized Sales Tax Location Flexfield structure if none of the seeded structures meet your taxing requirements.

1. Define Value Sets
Receivables provides several value sets which are used with the seeded Sales Tax Location Flexfield structures. You will either use these for your customized structure or create your own.
2. Define Key Flexfield Structure
Query 'Sales Tax Location Flexfield' in the Title field of the Key Flexfield region. Receivables provides a six seeded Sales Tax Location Flexfield structures. You need to create a new customized structure if you do not wish to use any of the seeded structures. You should not simply modify a seeded structure.
3. Define Descriptive Flexfield Context
After defining your customized Sales Tax Location Flexfield structure, you need to define customized contexts for the following descriptive flexfields in the Descriptive Flexfield Segments window:
Tax Rates Flexfield: This flexfield appears in the Review Sales Tax Rates window.
Item Exception Rate Assignment Flexfield: This flexfield pops up in the Tax Rate field of the Item Tax Rate Exceptions window.
Item Exception Rate Location Flexfield: This flexfield pops up in the Location field of the Item Tax Rate Exceptions window.
Exempt Regions Flexfield: This flexfield pops up in the Location field of the Tax Exemptions window.
Override Sales Tax Rates Flexfield: This field pops up in the Override field of the Tax Locations and Rates window.
4. Define Key Flexfield Segment Qualifiers
Verify that the Tax Account and Exemption qualifiers are set at the correct level for your needs. The Tax Account qualifier determines at which level of your location flexfield you will assign tax accounts. The Exemption qualifier determines at which level the Receivables tax engine will create automatic exemptions.
5. Define Tax Locations and Rates
Enter and maintain locations for each segment of your Sales Tax Location Flexfield structure and assign tax rates to each location. Receivables uses Tax locations to validate your customers' shipping address and to determine the proper tax amount. You can either use the sales Tax Rate Interface program to load locations and tax rates or manually enter them in the Tax Locations and Rates window.



Step 7 Set Up Flexible Address Formats (Optional)
If the standard address format (Country, Address Line 1-4, City, State, Postal Code, Province and County) suits your business needs, you do not need to use the flexible address formats feature.
Alternatively, you can associate address styles with countries to enable you to enter addresses in country specific formats throughout Receivables. This lets you enter addresses in the style most appropriate to the country in which you or your customers conduct business. Receivables also offers the functionality to perform country specific validation upon entry of addresses.
To implement flexible address formats, you need to assign an address style to a country in the Maintain Countries and Territories window.
Receivables provides the following address styles:
Japanese
Northern European
Southern European
South American
United Kingdom/Asia/AustralasiaYou can also create your own address styles and validation rules by defining alternative descriptive flexfield structures. Proceed to the next step if you are planning to use one of the seeded address styles.



Step 8 Maintain Countries and Territories (Optional)
You can view all countries and territories within your system in the Maintain Countries and Territories window.
Use the address style field to assign address styles to countries if you wish to use the Flexible Address Formats feature.
You can identify which countries are part of the European Union (EU) by entering a VAT Member State Code against these countries. The Receivables European Sales Listing report uses this information to produce a listing of all sales to customers in European Community member states other than your own.


Step 9 Define Your Transaction Flexfield Structure (Optional)
Proceed to the next step if you are not using AutoInvoice.
If you are using AutoInvoice, you need to define your Transaction Flexfields to uniquely identify imported transactions. Because Transaction Flexfields are unique, you can also use them to link and reference other transaction lines.
If you are using AutoInvoice, the Line and Invoice Transaction Flexfields are mandatory. When you define your Invoice Transaction Flexfield, you must use the same structure that you used for your Line Transaction Flexfield, but only include those segments that refer to header-level information.
The Link-to and Reference Transaction Flexfields refer to the structure you define for your Invoice Transaction Flexfield, but can be optionally defined if you want to create a customized form that displays your Link-to and Reference Transaction Flexfield.
Define the structure, segments, and values for your Transaction Flexfield in the Descriptive Flexfield Segments window. Execute a query on the Title field. You can define your Line Transaction Flexfield, Link-to Transaction Flexfield, Reference Transaction Flexfield and Invoice Transaction Flexfield here.
Suggestion: If you want to query your Transaction Flexfield, you may want to update the Transaction Flexfield information for previously entered transactions.
We advise that you create indexes on your Transaction Flexfield columns if you want to query Transaction Flexfield information in your invoice headers and lines. Additionally, without indexes the validation portions of the AutoInvoice program can be slow.



Step 10 Define Your AutoCash Rule Sets (Optional)
If you are using AutoCash, you need to define your AutoCash rule set before defining your system parameters or customer profiles classes. AutoCash rules determine the sequence of application methods Receivables uses when automatically applying receipts to open debit and credit items.


Step 11 Define Your QuickCodes (Optional)
Receivables provides several default QuickCodes. These are used throughout Receivables to provide validated default values and list of values choices. You can add or update these to customize your list of values and speed data entry. For example, you can define additional freight carriers that are used by your business.
Below is a list of all user updatable QuickCodes types:
Account Status
Address Categories
Adjustment Reason
Approval Type
Business Purposes for a Customer Address
Canadian Provinces
Collector Actions
Collector Follow Up Action
Credit Memo Reason
Credit Rating for Customers
Customer Class
Customer Credit Risk
Customer Relationship Type
Customer Response Reason
Define Freight Carriers
Demand Class
FOB (free on board)
Invoice Reason
Job Titles for Customer Contact
Mandatory Field Prompt for Message Dictionary
Possible Outcomes of a Customer Call
Reverse Payment Reason
Special Instructions
Tax Exemption Reason
Tax Rate Exception Reason
Tax Types
Titles For Contact Persons at Customer Sites
Type of Data to Include in a Specific Bucket
Types of Communication Used in Contacting Customers
Types of Documentation to Send to Customers with this Relationship to Primary Customer
Types of Messages
Types of Standard text usage



Step 12 Define Your AutoInvoice Line Ordering Rules (Optional)
If you are using AutoInvoice, you need to specify how you want to order and number your transaction lines after they have been grouped into invoices, debit memos, and credit memos. Receivables provides many attributes that you can use to define your line ordering rules.


Step 13 Define Your AutoInvoice Grouping Rules (Optional)
If you are using AutoInvoice, you need to specify how you want to group transaction lines. In order for transaction lines to be part of one transaction, certain attributes must be identical. Receivables provides many attributes that you can use to define your grouping rules.


Step 14 Define Your System Options (Required)
Define your accounting, discount, tax, and invoice system options to control how Receivables works. For example, you can determine whether to charge your customers Sales Tax or Value Added Tax (VAT). If you choose Sales Tax, Receivables supports location based Sales Tax for your home country only. You also define your default (i.e. home) country in the System Options window.
You can also specify a default Application Rule Set in the System Options window. An Application Rule Set determines how Receivables reduces the balance due for debit items and their associated charges when you apply payments in the Applications window or by using Post QuickCash. Receivables only uses this rule set if none is assigned to the debit item's transaction type.
You can update the Default Country in this window at install time, provided you have not entered any customer addresses.
Attention: If you will be using flexible address formats to enter and validate your customer address information, we recommend that you implement the seeded Sales Tax Location Flexfield structure, Country - No Validation. Alternatively, if you use a Sales Tax Location Flexfield that contains a segment other than country and wish to set up a flexible address format for your home Country, every component in your Sales Tax Location Flexfield structure must also exist in your flexible address style for that country.
Below is a list of optional system options. All other system options are required. No default values are provided.
AutoCash Rule Set
Tax Registration Number
Accounting Flex Tuning Segment
System Items Tuning Segment
Territory Tuning Segment
SQL Trace
Purge Interface Tables
Unallocated Revenue Account** Required if your Accounting Method is Cash Basis.
Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.
Step 15 Define Your Payment Terms (Required, Default)
You must specify the payment terms to associate with your invoices, debit memos and commitments to determine your customer's payment schedule. You can also include tiered discounts for early payment. Receivables provides a predefined payment term, '30 NET'.


Step 16 Define Your Accounting Rules (Optional)
If you want to recognize revenue over multiple accounting periods, you must define accounting rules. Receivables lets you define as many accounting rules as you want. If you use an accounting rule, you must associate it with an invoicing rule. Invoicing rules determine when to book your receivables. Receivables provides two invoicing rules: 'Bill in Advance' and 'Bill in Arrears'.
When you use accounting rules, you also need to define the appropriate periods to which your rule refers. You enter these periods in the Calendar window and they must refer to the same period type as your accounting rule. For example, if you are using an accounting rule that recognizes revenue monthly from Jan-93 through Jun-93, you must define periods from Jan-93 through Jun-93 where the period type is 'Month.' These periods must be defined in the same calendar as your accounting periods.
Attention: If you have an accounting period type that is not 'Month' and you use AutoInvoice with Oracle Order Entry, you should update the Period field for the predefined IMMEDIATE accounting rule to the same period as your accounting period type.


Step 17 Open Your Accounting Periods (Required)
Maintain the accounting periods to control transaction entry, receipt application, and posting. Receivables provides the following period statuses: Not Opened, Future, Open, Close Pending, and Closed.


Step 18 Define Your AutoAccounting (Required)
Define all of your AutoAccounting account structures that Receivables uses. Receivables creates default revenue, receivables, freight, tax, suspense, unbilled revenue, and unearned revenue accounts based on the information you enter for your AutoAccounting structures.

Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.
Step 19 Set up Cash Basis Accounting (Optional)
If you are not using the Cash Basis accounting method, you can skip this step.
If you are using the Cash Basis method of accounting, you must perform various steps in addition to setting your Accounting Method system option to 'Cash Basis'. For more information,

One of the steps to set up Cash Basis Accounting requires that you define transaction types. Transaction types are discussed in more detail in the next step.


Step 20 Define Your Transaction Types (Required, Default)
Define the transaction types that you assign to your invoices, debit memos, commitments, chargebacks, credit memos, and on-account credits. Receivables uses transaction types to default payment term, account, tax, freight, creation sign, posting, and receivables information. Receivables provides two predefined transaction types: 'Invoice' and 'Credit Memo'.

Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 21 Define Your Transaction Sources (Required, Default)
Define the transaction sources that you will assign to your invoices, debit memos, commitments, credit memos, and on-account credits. Receivables uses transaction sources to control your transaction and transaction batch numbering, to specify your default transaction type, and to select validation options for imported transactions. Before you can define a transaction source for your invoices, you must define transaction sources for your credit memos. Receivables provides the following predefined transaction sources: 'MANUAL-OTHER', 'DM Reversal,' and 'Chargeback'.
Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 22 Define Your Collectors (Required, Default)
Define collectors to assign to your customers through credit profile class assignments. You can use the customer account review windows and collection reports to alert your collectors of their customer's past due items. Receivables provides a single collector called 'DEFAULT.'


Step 23 Define Your Adjustment Approval Limits (Required)
Assign adjustment approval limits to each user to control adjustments made to invoices, debit memo, and chargebacks. Receivables lets you assign approval limits by currency. These limits are used in the Adjustments, Approve Adjustments, and Receipts windows.


Step 24 Define Your Remittance Banks (Required)
Proceed to the next step if you have already defined your remittance banks in Oracle Payables.
Define all of the banks and bank accounts you use to remit your payments. You can define as many banks and bank accounts as you want, but each bank account must refer to one currency. Receivables requires that you enter a cash account for each bank account.


Step 25 Define Your Distribution Sets (Optional)
Define distribution sets if you have non-invoice related transactions and you want to use a predefined revenue distribution set. To speed data entry, revenue distribution sets can also be assigned to receivables activities with a type of Miscellaneous Cash.


Step 26 Define Your Receivables Activities (Required)
You must define receivables activities to link accounting information to your adjustments, finance charges, and miscellaneous cash transactions.


Step 27 Define Your Receipt Classes (Required)
Define receipt classes to specify whether receipts are created manually or automatically. For manual receipts, you can specify whether to automatically remit it to the bank and/or clear your accounts. For automatic receipts, you can specify a remittance and clearance method, and whether receipts using this class require confirmation.


Step 28 Define Your Payment Methods (Required)
Define the payment methods to assign to your receipt classes. When you define your payment methods, you must enter a receipt class, remittance bank information, and the accounts associated with your payment receivables type. You can also specify accounts for confirmation, remittance, factoring, bank charges, and short-term debt.


Step 29 Define Your Receipt Sources (Required)
Define the receipt sources that you assign to receipts. When you define a receipt source, you can enter a default receipt class and payment method
Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 30 Define Your Aging Buckets (Optional)
You can define additional aging buckets to use when aging your receivables. Aging buckets are used by the Customer Aging window, statements, and the Credit Snapshot and Aging reports. Aging buckets can include pending adjustments, items that are past due, not past due, current, due in the future, and in dispute.


Step 31 Define Your Statement Cycles (Optional)
If you want to send your customers statements, define statement cycles and statement dates. The dates you associate with each statement cycle are the dates for which you plan to generate statements for your customers. You can then assign statement cycles to your customers in the Customer Profile Classes window.


Step 32 Define Your Statement Messages (Optional)
To customize your statements with personal messages, define statement messages. These messages automatically print on the bottom of your statements. Use the Print Statements window to assign statement messages and submit statements for printing.


Step 33 Define Your Dunning Letters (Optional)
To send your customers dunning letters to inform them of past due items and finance charges, define dunning letters. Receivables provides three predefined letters named 'STANDARD1' through 'STANDARD3' and ten user definable letters named 'USER1' through 'USER10'. You can customize each dunning letter by printing variables that are specific to each customer. These variables can be included in the text of the letter. Dunning letters must also be grouped into dunning letter sets (see Step 34).


Step 34 Define Your Dunning Letter Sets (Optional)
If you want to send your customers dunning letters, you must define dunning letter sets. Dunning letter sets let you combine a sequence of dunning letters into one group and increase the severity of each letter that you send. You can assign dunning letter sets to your customers in the Customer Profile Classes window. Receivables provides one letter set named 'STANDARD,' which includes the three STANDARD letters described in the previous step.


Step 35 Define Your Territories (Optional)
If you have defined your Territory Flexfield and want to create customized reports, you can define your Territory Flexfield combinations. Receivables lets you assign Territory Flexfields to salespeople, invoices, and customer business purposes.


Step 36 Define Your Salespeople (Required, Default)
Define the salespeople you assign to your invoices, debit memos, and commitments to allocate sales credits. If you do not want to assign sales credits to a transaction, you can enter 'No Sales Credit'.
Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 37 Define Your Profile Options (Required)
For each Receivables application, specify values for your personal profile options. Profile options determine default values for some Receivables operations, how Receivables processes data control and control which actions a user can perform. Your system administrator determines which profile options you can choose.
You can use the Personal Profile Values window to set profile options only at the user level. System administrators use the System Profile Values window to set profile options at the site, application, responsibility, and user levels. Receivables defaults all profile options at the site level.

For more information, please refer to Update Personal Profile Options in the Oracle Applications User's Guide and Update System Profile Options in the Oracle Applications System Administration User's Guide.


Step 38 Define Your Tax Codes and Rates (Required)
If your Tax Method in the System Options window is set to 'VAT', you should enter the tax codes and tax rates you want Receivables to use when calculating tax for your transactions. Tax codes can be assigned to customers, customer site uses, and standard memo lines.

If your Tax Method in the System Options window is set to 'Sales Tax', you must define at least one tax code with a type of 'Location' in the Tax Codes and Rates window. Receivables will use this tax code to calculate your location based tax. Enter a name for your location tax code, enter a type of 'Location,' and a tax account. This account cannot be updated once you have committed your change. You can, however, enter additional 'Location' tax codes for different date ranges.
For either Tax Method, you may wish to set up an 'International', zero-rated tax code to assign to foreign addresses.

Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 39 Define Your Customer Profile Classes (Required, Default)
You must define customer profile classes to categorize your customers based on credit, payment terms, statement cycles, automatic receipt, finance charge, dunning, and invoicing information. When you initially set up your customers, you assign each customer to a profile class. To customize the profile class for a specific customer, use the Customer Profile Classes window. Receivables provides the predefined customer profile class 'DEFAULT'.


Step 40 Define Your Customers (Required)
Proceed to the next step if you have already defined your customers while setting up another Oracle Applications product.
You must define your customers and customer site uses to enter transactions and receipts in Receivables. When you enter a new customer, you must enter the customer's name, profile class and number (if automatic customer numbering is set to No). You can enter addresses, contacts, site uses and telephone numbers for your customers. You will be required to enter all the components of your chosen Sales Tax Location Flexfield when entering customer addresses in your home country. You define your Sales Tax Location Flexfield and home country in the System Options window.


Step 41 Define Your Remit-To Addresses (Required)
Define remit-to addresses to inform your customers where to send their payments. Associate each remit-to address with one or more state, country and postal code combinations. For example, if you want your customers in California and Nevada to send their payments to a specific address, enter the remit-to address and associate the states CA and NV with this address. Remit-to addresses are assigned based on the bill-to address on the transaction.
If you do not wish to set up a remit-to address for each location, you can set up one remit-to address with a default assignment. This will be used for all locations or for any locations that do not have specific location assignments.
To set up a default remit-to address, enter the remit-to address, navigate to the assignment region then, using the list of values in the Country field, select 'Default Value'. Move to the next field and select the 'DEFAULT' state from the list of values. Then save your record.

Suggestion: It is a good idea to set up a default remit-to address, even if you have other remit-to addresses defined, because Receivables can use this address if the bill-to location on the transaction is not covered by any other remit-to address assignment. This may happen, for example, when you use new customers.
Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.



Step 42 Define Your Customer Relationships (Optional)
If you want to restrict receipt application to related customers only, define relationships between your customers and set the system option 'Allow Payment of Unrelated Invoices' to No. When you create relationships, customers can also apply invoices to related customer commitments. Receivables lets you define one way and reciprocal relationships between your customers.


Step 43 Define Your Customer Banks (Optional)
If you want to create automatic receipts, you need to define your customer banks and bank accounts. With automatic receipts, Receivables transfers funds directly from your customer's bank to your remittance bank on the receipt maturity date.


Step 44 Define Your Lockboxes (Optional)
To use the AutoLockbox program to automatically record receipts from your banks, define your lockboxes. For each lockbox, enter the lockbox number, bank name, batch source, bank account, bank origination number and cash account.


Step 45 Define Your Transmission Format (Optional)
To use the AutoLockbox program, define your transmission file format. A transmission format is required to successfully import receipt information from your bank into Receivables. Receivables provides two standard transmission formats that you can modify: Default and Convert.


Step 46 Define Your Receipt Programs (Optional)
To use the Automatic Receipts feature, define the receipt programs you will use to send paper and electronic documents to your customers and remittance banks.


Step 47 Define Your Unit of Measure Classes (Optional)
Proceed to the next step if you have already defined your units of measure classes while setting up another Oracle Applications product.
Use the Units of Measure Classes window to define and update groups of units of measure with similar characteristics (for example, Volume or Length). A class consists of a base unit of measure and other assigned units of measure. Use this window to define the base unit of measure for each class.


Step 48 Define Your Units of Measure (Required, Default)
Proceed to the next step if you have already defined your units of measure while setting up another Oracle Applications product.
Use the Units of Measure window to define one or more units of measure. Each item that you define in Receivables must have a primary unit of measure that you will have defined in this window. The number of units of measure that you define in this window depends on the variety of physical characteristics of your organization's inventory.


Step 49 Define Your Standard Memo Lines (Optional)
To enter predefined lines for debit memos, on-account credits and invoices, define standard memo lines. When you define your standard memo lines, you can specify whether a line is for charges, freight, line, or tax. Receivables also lets you define one chargeback and one debit memo reversal line.

Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 50 Define Your Item Tax Rate Exceptions (Optional)
To assign special tax rates to items shipped to specific addresses, define your item exceptions for specific Location Flexfields. In order for Receivables to use these exception rates, you should not assign tax codes to your customers or their site uses.


Step 51 Define Your Tax Exemptions (Optional)
To partially or fully exempt your customers or items from specific tax rates, define customer and item tax exemptions.

Attention: If you use the Oracle Applications Multiple Organization Support feature, you need to perform this step for each of your operating units. For more information about multiple organizations, refer to the Multiple Organizations in Oracle Applications manual.


Step 52 Define Document Sequences (Optional)
By assigning unique numbers to documents, you can account for each transaction you enter and the document that accompanies it.
To enable sequential numbering, set the Sequential Numbering profile option to either 'Always' or 'Partially Used'. You must then define and assign categories and sequences for each transaction type, payment method, adjustment, and finance charge activity that you use.

Tuesday, July 29, 2008

AIM Documents .............


Please find the AIM Documents list..............

Business Process Architecture (BP)
BP.010 Define Business and Process Strategy
BP.020 Catalog and Analyze Potential Changes
BP.030 Determine Data Gathering Requirements
BP.040 Develop Current Process Model
BP.050 Review Leading Practices
BP.060 Develop High-Level Process Vision
BP.070 Develop High-Level Process Design
BP.080 Develop Future Process Model
BP.090 Document Business Procedure

Business Requirements Definition (RD)
RD.010 Identify Current Financial and Operating Structure
RD.020 Conduct Current Business Baseline
RD.030 Establish Process and Mapping Summary
RD.040 Gather Business Volumes and Metrics
RD.050 Gather Business Requirements
RD.060 Determine Audit and Control Requirements
RD.070 Identify Business Availability Requirements
RD.080 Identify Reporting and Information Access Requirements

Business Requirements Mapping
BR.010 Analyze High-Level Gaps
BR.020 Prepare mapping environment
BR.030 Map Business requirements
BR.040 Map Business Data
BR.050 Conduct Integration Fit Analysis
BR.060 Create Information Model
BR.070 Create Reporting Fit Analysis
BR.080 Test Business Solutions
BR.090 Confirm Integrated Business Solutions
BR.100 Define Applications Setup
BR.110 Define security Profiles

Application and Technical Architecture (TA)
TA.010 Define Architecture Requirements and Strategy
TA.020 Identify Current Technical Architecture
TA.030 Develop Preliminary Conceptual Architecture
TA.040 Define Application Architecture
TA.050 Define System Availability Strategy
TA.060 Define Reporting and Information Access Strategy
TA.070 Revise Conceptual Architecture
TA.080 Define Application Security Architecture
TA.090 Define Application and Database Server Architecture
TA.100 Define and Propose Architecture Subsystems
TA.110 Define System Capacity Plan
TA.120 Define Platform and Network Architecture
TA.130 Define Application Deployment Plan
TA.140 Assess Performance Risks
TA.150 Define System Management Procedures

Module Design and Build (MD)
MD.010 Define Application Extension Strategy
MD.020 Define and estimate application extensions
MD.030 Define design standards
MD.040 Define Build Standards
MD.050 Create Application extensions functional design
MD.060 Design Database extensions
MD.070 Create Application extensions technical design
MD.080 Review functional and Technical designs
MD.090 Prepare Development environment
MD.100 Create Database extensions
MD.110 Create Application extension modules
MD.120 Create Installation routines

Data Conversion (CV)
CV.010 Define data conversion requirements and strategy
CV.020 Define Conversion standards
CV.030 Prepare conversion environment
CV.040 Perform conversion data mapping
CV.050 Define manual conversion procedures
CV.060 Design conversion programs
CV.070 Prepare conversion test plans
CV.080 Develop conversion programs
CV.090 Perform conversion unit tests
CV.100 Perform conversion business objects
CV.110 Perform conversion validation tests
CV.120 Install conversion programs
CV.130 Convert and verify data

Documentation (DO)
DO.010 Define documentation requirements and strategy
DO.020 Define Documentation standards and procedures
DO.030 Prepare glossary
DO.040 Prepare documentation environment
DO.050 Produce documentation prototypes and templates
DO.060 Publish user reference manual
DO.070 Publish user guide
DO.080 Publish technical reference manual
DO.090 Publish system management guide

Business System Testing (TE)
TE.010 Define testing requirements and strategy
TE.020 Develop unit test script
TE.030 Develop link test script
TE.040 Develop system test script
TE.050 Develop systems integration test script
TE.060 Prepare testing environments
TE.070 Perform unit test
TE.080 Perform link test
TE.090 perform installation test
TE.100 Prepare key users for testing
TE.110 Perform system test
TE.120 Perform systems integration test
TE.130 Perform Acceptance test

PERFORMACE TESTING(PT)
PT.010 - Define Performance Testing Strategy
PT.020 - Identify Performance Test Scenarios
PT.030 - Identify Performance Test Transaction
PT.040 - Create Performance Test Scripts
PT.050 - Design Performance Test Transaction Programs
PT.060 - Design Performance Test Data
PT.070 - Design Test Database Load Programs
PT.080 - Create Performance Test TransactionPrograms
PT.090 - Create Test Database Load Programs
PT.100 - Construct Performance Test Database
PT.110 - Prepare Performance Test Environment
PT.120 - Execute Performance Test

Adoption and Learning (AP)
AP.010 - Define Executive Project Strategy
AP.020 - Conduct Initial Project Team Orientation
AP.030 - Develop Project Team Learning Plan
AP.040 - Prepare Project Team Learning Environment
AP.050 - Conduct Project Team Learning Events
AP.060 - Develop Business Unit Managers’Readiness Plan
AP.070 - Develop Project Readiness Roadmap
AP.080 - Develop and Execute CommunicationCampaign
AP.090 - Develop Managers’ Readiness Plan
AP.100 - Identify Business Process Impact onOrganization
AP.110 - Align Human Performance SupportSystems
AP.120 - Align Information Technology Groups
AP.130 - Conduct User Learning Needs Analysis
AP.140 - Develop User Learning Plan
AP.150 - Develop User Learningware
AP.160 - Prepare User Learning Environment
AP.170 - Conduct User Learning Events
AP.180 - Conduct Effectiveness Assessment

Production Migration (PM)
PM.010 - Define Transition Strategy
PM.020 - Design Production Support Infrastructure
PM.030 - Develop Transition and Contingency Plan
PM.040 - Prepare Production Environment
PM.050 - Set Up Applications
PM.060 - Implement Production Support Infrastructure
PM.070 - Verify Production Readiness
PM.080 - Begin Production
PM.090 - Measure System Performance
PM.100 - Maintain System
PM.110 - Refine Production System
PM.120 - Decommission Former Systems
PM.130 - Propose Future Business Direction
PM.140 - Propose Future Technical Direction

Purchasing Overview



This flow diagram does not depict the process for receiving against purchase orders. But explains the general flow of Purchasing.

Step 1.0 Purchasing Maintenance

Purchasing Module Maintenance includes the setup and maintenance required to use Oracle Purchasing.

Step 2.0 Direct Enter PO or Agreement

Direct Enter PO or Agreement includes the process of creating, saving, and approving a purchase order or blanket agreement. These documents can be created manually or they can be “Auto Created” from an approved purchase requisition. Purchase requisition can be created manually or they can be generated by other modules in the system.

Step 3.0 Control Purchase Order

Control Purchase Order includes all of the purchase order control processes. These processes include: canceling purchase orders, closing purchase orders, closing purchase orders for invoicing, closing purchase orders for receiving, freezing purchase orders, or placing purchase orders on hold.

Step 4.0 Modify Purchase Order/ Create New PO

Modify Existing Purchase Order includes the processes for modifying, saving, and re-approving an existing purchase order or agreement. Creating a new purchase document involves entering
new suppliers, negotiating new prices, and entering the new document in the system.

These are the general Oracle purchasing cycle which in depth will lead to numerous counterparts. I will try to help you with the major and most important aspects of Oracle Purchasing on the other posts.

Order to Cash Life Cycle

1--------Enter the Order----- Book-----------Pick Release-------------Ship Confirm----------2 2------- Auto Invoice----------Receivables-----------Invoice------------Receipt------------3-3--------Bank Reconciliation--------3
Inventory:
1. Create Unit of Measure
2. Create a Location
3. Create an Inventory Organization
4. Create a SubInventory
Enter Items:
5. Define Shipping Parameters
6. Create an Item
7. Create a Material Transaction
8. Add an Item to a Price List
Manage Parties and Customer Accounts:
9. Create customer Profile Class
10. Create Customer
11. Create a Customer Account
Enter Order:
12. Create a Sales Order
13. Create a Sales Line
14. Create a Split line and Ship Set
15. Schedule an Order
16. Book an Order
17. Pick Release
18. Ship ConfirmProcess
Invoices:
19. Create an Invoice
20. Process Invoices Using AutoInvoice
21. Enter a Manual Receipt
22. Apply a Receipt

Scheduling: Scheduling provides approximate ship date based on ATP (On-hand, expected supply and demand). Scheduling sets Schedule ship date and Arrival date ( for this Inter location transit time to be set).
Passes the demand to inventory. (Item attribute OE translatable to be enabled).
S.O line demand consumes item’s forecast. Can place reservation if SSD is with in the value of OM: Reservation time fence If product is available on-hand then Schedule ship date = requested date. If the item is non-ATP, then schedule ship date = requested date
OM: Auto schedule- profile option for automatic popup of scheduling window.
In order line, Tools – Scheduling – schedule, reserve, unreserved, reservation details.
In order TT- Scheduling level can be given.
Concurrent “ Schedule Orders” parameters : order number, request date, cust po no, ship to, customer, item.
OM: Schedule lines on hold- profile option to schedule hold lines.
OM: Scheduling role:
CSR only – (Customer service representative) In order organizer, tab scheduling is gray out.
CSR and scheduling – In order organizer all tabs are enabled. If u click (T) scheduling, then rest all the tabs will be gray out and vice versa. Scheduling across orders is possible.
Scheduler only – only (T) scheduling is enabled.
Note: Concurrent “ Reserve orders” to reserve orders.
OM: Source code – defaults to Order entry, OM passed to inventory during scheduling.
Reservation:
Item attribute reservable must be enabled.
Reservation puts soft pegging with the inventory.
Item reservation is removed after ITS.
Dates on Order line:
a) Request date
b) Promise date
c) Scheduled ship date
d) Scheduled arrival date
Price in order lines:
a) unit price/selling price - Price of each qty
b) extended price /line price – unit price x no of qty
c) List price – Price declared in price list
d) Modifiers – factors that change the list price.
e) Qualifiers – factors that qualifies the modifiers.
Order header: acts as primary source to lines, open until all lines are closed, Dependent of lines. They are OU specific.
Order lines: they are dependent on order header, multiple lines and org is possible. Lines takes precedence over header. They are org specific.
Order types:
a) BSA – Blanket sales agreement.
b) Sales order

Sales person: who is getting credited for sale. This is mandatory field.

Quota sales person – More than one sales person can be entered to divide the sales credit. Cumulative should be 100.
Non-Quota sales person – we can enter multiple sales person. But cumulative can be more than 100% eg: middlemen, agents.
Gross margin amount = Extended sales price – unit price. Gross margin hold can be set.

Saturday, July 26, 2008

Period closing Process for Payables


Period closing Process for Payables
You cannot close a period in Payables if any of the following conditions exist:
o Outstanding payment batches. Confirm or cancel all incomplete payment batches.
o Future dated payments for which the Maturity Date is within the period but that still have a status of Issued.
o Unaccounted transactions. Submit the Payables Accounting Process to account for transactions, or submit the Unaccounted Transaction Sweep to move any remaining unaccounted transactions from one period to another.
o Accounted transactions that have not been transferred to general ledger. Submit the Payables Transfer to General Ledger process to transfer accounting entries.

To complete the close process in Payables:
1. Validate all invoices.
Run Invoice Validation Concurrent program.
2. Confirm or cancel all incomplete payment batches.

3. If you use future dated payments, submit the Update Matured Future Dated Payment Status Program. This will update the status of matured future dated payments to Negotiable so you can account for them.

4. Resolve all unaccounted transactions.
Submit the Payables Accounting Process to account for all unaccounted transactions. Review the Unaccounted Transactions Report. Review any unaccounted transactions and correct data as necessary.

Then resubmit the Payables Accounting Process to account for transactions you corrected. Or move any unresolved accounting transaction exceptions to another period (optional).
o Payables Accounting Process.
o Submit the Unaccounted Transactions Sweep Program.
5. Transfer invoices and payments to the General Ledger and resolve any problems you see on the output report:
o Payables Transfer to General Ledger Program.
6. In the Control Payables Periods window, close the period in Payables.
o Controlling the Status of Payables Periods.
7. Reconcile Payables activity for the period. You will need the following reports:
o Accounts Payable Trial Balance Report (this period and last period).
o Posted Invoice Register.
o Posted Payment Register.
8. If you use Oracle Purchasing, accrue uninvoiced receipts.

9. If you use Oracle Assets, run the Mass Additions Create Program transfer capital invoice line distributions from Oracle Payables to Oracle Assets.

10. Post journal entries to the general ledger and reconcile the trial balance to the General Ledger.

Oracle Financials Open Interface Manual


Oracle User Guide on Oracle Applications Open Interfaces. Good manual for Open Interfaces.

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Standard Reports in GL,AR,AP,PO


Download the training docs which has the details of Standard Reports in GL,AR,AP and PO.

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Oracle apps Student Guide on Order-To-Cash Life Cycle

Download Oracle Student Guide on Order-To-Cash. A Great souce to know the Business flow of OTC Life Cycle.

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Oracle Student Guides


Download the Oracle Student Guide Collection on SQL / PL/SQL / Forms 6i / Reports 6i / Forms 11i etc.

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download Oracle Apps Student Guides all modules


Download the collection of Oracle Apps Student Guides that I have. This zipped file has the student guides for most of the modules on Oracle E-Business Suite.


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Alternatively, you can use the following link if you have problems accessing the above link

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oracle Order Management video and tutorials Demos

oracle Order Management video and tutorials and complete basic setups Demos

Download Order Management Demos from the following link.

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How to Integrate Custom Report with Oracle Apps


Download the Document on How to Integrate Custom Report with Oracle Apps.

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White papers on oracle account payables(AP)

Download the White paper collection on AP from the following link.

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Great benefit for those who doesn't have Metalink Id.

White papers on oracle general ledger(GL)

Download the White Paper collection on General Ledger. Great help to guys who doesn't have a metalink id.

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