AR Module

The process flow in Oracle Receivables is as follows:

• Entering Transactions (Manual or import)
• Creating receipts.
• Applying receipts to transactions.
• Adjustments/write-offs,if any.
• Posting.
• Reporting.

Setting up Oracle Receivables

•         Pre-requisites

• Define Set of Books (Required)

                        Assign your Set of Books to a Responsibility

                        Define your Accounting Flexfield

                        Define your Calendar Period Types

                        Define your Calendar Periods

  Define your Currency

• Define Organizations (Required)

                        Define at least one organization to use Receivables.

• Define Key Flexfields (Required)

                        Define Territory and Sales Tax Location Flexfield Structure

•         Customer and Customer Sites.

• A customer is an organization or person with whom you have a selling relationship.
• A customer address is a party site used in the context of a customer account for billing, shipping, or other purposes.
• Can maintain separate customer profiles, addresses, and contacts for each customer account.

Defining Customer and Customer Addresses

•         There are two windows:

•         Customer – Standard window

•         Customer Addresses window

Transactions

•          Transaction Classes

•         Invoice

•         Credit Memo

•         Debit Memo

•         Chargeback

•         Guarantee     

•         Deposit                      

•         Transaction Sources (defined by the users)

•         Manual Invoice

•         PROJECTS INVOICES

•         PA Internal Invoice

•         Conversion etc.

•         Entering Transactions

• Can be entered in two ways : manually or imported (from other Oracle modules like PA or legacy system)
• Has to be entered in a open or future period.
• GL Date should be in a open period.
• Customer should have at least one Bill-To site defined.

Creating Receipts

 Two types of receipts in Receivables:

·         Cash receipts: Payment (such as cash or a check) that you receive from your customers for goods or services.

·         Miscellaneous receipts: Revenue earned from investments,interest, refunds, and stock sales.

·         Enter receipts and apply them to transactions in either Open or Future accounting periods.

·         Can apply receipts to invoices, debit memos, deposits, on–account credits, and chargebacks.

·         Can partially or fully apply a receipt to a single debit item or to several debit items.

·         If the transaction type does not allow overapplication, then you cannot enter an amount that would reverse the sign of the debit item.

·         If the transaction type specifies Natural Application only, then you must enter an amount that brings the balance due closer to zero.

·          

     Receipt Application Types

• On-account Receipts - Payments where you intentionally apply all or part of the payment amount to a customer without reference to a debit item. On–account examples include prepayments and deposits.
• Unapplied Receipts - The status of a receipt for which you can identify the customer,but you have not applied or placed on account all or part of the payment.
• Unidentified – This is a receipt that has been entered, but not identified to a particular customer.
• Applied – This is a receipt that has been applied to a particular transaction.

Receipt Status

A receipt can have one of the following statuses:

• Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.
• Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed.
• Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts.
• Cleared: The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts.
• Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes from an account with non–sufficient funds or if you want to re–enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous receipts.

Table that holds AR Invoice data

The following tables can give most of the invoice information.

• RA_CUSTOMER_TRX_ALL stores invoice header information. RA_CUSTOMER_TRX_LINES_ALL stores information about invoice, debit memo, credit memo, bills receivable, and commitment lines.
• The AR_PAYMENT_SCHEDULES_ALL table stores all transactions except adjustments and miscellaneous cash receipts.
• RA_CUST_TRX_LINE_GL_DIST_ALL stores accounting distribution records for all transaction lines except bills receivable.The RA_CUST_TRX_LINE_GL_DIST_ALL table stores the accounting records for revenue, unearned revenue, and unbilled receivables for each invoice or credit memo line.
• RA_CUSTOMERS - Customer information
• RA_CUST_TRX_TYPES_ALL - Customer Transaction Type
• AR_PAYMENT_SCHEDULES_ALL
• RA_CUSTOMER_TRX_LINES_ALL - Transaction Line information
• MTL_SYSTEM_ITEMS - Base table for item

The ER Diagram for a customer Transaction can be easily understood as:

Customer Payment

These are the main tables which hold Customer Payment information

·         AR_CASH_RECEIPTS_ALL stores one record for each receipt entry.

·         AR_CASH_RECEIPT_HISTORY_ALL stores all of the activity that is contained for the life cycle of a receipt.

·         Each row represents one step., Possible statuses are Approved, Cleared,Confirmed, Remitted, and Reversed.

·         AR_MISC_CASH_DISTRIBUTIONS_ALL stores all accounting entries for miscellaneous cash applications.

·         AR_DISTRIBUTIONS_ALL stores the accounting distributions for cash receipts, miscellaneous receipts, adjustments,credit memo applications, cash receipt applications, and bills receivable transactions.

·         AR_RECEIVABLE_APPLICATIONS_ALL stores all accounting entries for cash and credit memo applications.

·         Each row includes the amount applied, status, and accounting flexfield information.

The ER Diagram for a customer Payment can be easily understood as:

Accounting Link between the tables

For Invoice:

ra_customers (This is for capturing customers information)

ra_customer_trx_all,

ra_cust_trx_types_all,

ar_payment_schedules_all,

ra_customer_trx_lines_all

and joins are customer_trx_id for ar_payment_schedules_all & ra_customer_trx_all & ra_customer_trx_lines_all .

ra_cust_trx_types_all.type IN ('INV')

For the Receipts:

ar_receivable_applications_all,

ra_customer_trx_all,

ra_customer_trx_lines_all,

ar_cash_receipts_all

ar_receivable_applications_all.application_type = 'CASH',

ar_receivable_applications_all.cash_receipt_id = ar_cash_receipts_all.cash_receipt_id,

ar_receivable_applications_all.applied_customer_trx_id = ra_customer_trx_all.customer_trx_id