Transaction to Receipt flow in Oracle Receivables

The Transaction to Receipt flow in Receivables is as follows

1. Import/Create/Credit transactions in Receivables
2. Correct transactions if required
3. Print Transaction OR Create/Print Consolidated Bill
4. Research Customer account
5. Call customer to collect the amount
6. Import/Create receipts
7. Apply receipts
8. Transfer to General Ledger

Step 1: Create/Import/Credit transactions in Receivables

Responsibility: Receivables SuperUser

Import Transactions:

AutoInvoice reduces cycle time by automating the transaction creation process. Using the AutoInvoice program, Oracle Receivables lets you import and validate transaction data from other financial systems from which you can create invoices, debit memos, credit memos, and on-account credits.  It allows you to define how you want to group imported transactions into invoices and how to order the invoice lines.

To import transactions into Receivables we need to execute the AutoInvoice Master Program

Go to View > Requests and submit a new request

We have discussed on this interface in detail in following articles, AutoInvoice setup and Invoice interface (Coming later).

Create transactions:

Use the Transaction window to enter your invoices, debit memos, credit memos, and commitments. You can also query and update your transactions in this window and review your transactions and chargebacks in the Transactions Summary window.

We shall create a manual transaction, i.e. Invoice, for a customer.

Navigation: Transactions > Transactions

Enter the invoice details.

Click on Line Items button

Enter the line item(s) for the invoice

Click on Distributions button if you want to set different account other than the receivable and revenue accounts set for the Transaction Source, GSACGOINV, i.e. the source of this invoice displayed on the invoice.

You can see that the Revenue account is taken from the setup by default. You can change this if you want. Close this window to go back to the Invoice Lines form.

Note:
The Revenue and Receivables accounts are set on the Invoice transaction type. The invoice transaction type for this invoice is GSACGOINV.

Navigate: Setup > Transactions > Transaction Types

Query for Name = GSACGOINV

You can see that the Receivable and Revenue accounts are set here.

Click on Sales Credits button on the Invoice Lines window.

In this window we can enter the Salesperson who had made the sale and enter his/her commission that he/she is supposed to get. We do not have any Salesperson setup. We shall close this window and Invoice Lines window to go back to the Invoice window. Save the form.

Once the invoice is saved, the invoice number is generated (1110508057) and the button named, Complete, on the right hand bottom corner is enabled. Press this button to complete the invoice. This will mean that we cannot make changes to the invoice.

On pressing the Complete button the following take place,

1. All fields are disabled
2. Details and Refresh buttons are enabled.
   
3. Complete checkbox is automatically checked
   
4. The invoice preview button becomes visible.
   

Note the Invoice number, 1110508057.

Click on the Invoice preview button () on the Transaction form

You will get to the see a preview of the invoice in OAF page format. You can close this page after reviewing the details.

Credit Transactions:

Use the Credit Transactions window to enter, update, and review credit memos against specific invoices, debit memos, or commitments. You create credit memos to reduce the balance due for a transaction. When you credit a transaction, Receivables creates the appropriate accounting entries and reverses any sales credit assigned to your salespeople. Receivables lets you credit an entire invoice or specific invoice lines. You can also credit freight for an entire invoice or only for specific invoice lines.

Step 2: Correct transactions (If transactions are imported)

To simplify the AutoInvoice process, Oracle Receivables provides two windows you can use to view and update records in the AutoInvoice interface tables. The Interface Lines window displays all records in the interface tables that failed validation after AutoInvoice submission. The AutoInvoice Errors window displays any errors associated with each record. These windows help you to quickly review and correct invalid records in the interface tables, without programming.

Navigation: Control > AutoInvoice > Interface Lines

Query this form

You can view the records in the interface table and the errors, if any, for these lines.

Check the exceptions on the interface lines

Navigation: Control > AutoInvoice > Interface Exceptions

Query this record

You can view all the interface records that have met with an exception and are lying in the interface table. Click on Details button.

The Interface Lines form opens and the interface line for that exception is displayed. You can correct the interface line data on this form. Once the interface lines are corrected you can again run AutoInvoice Master Program to import the interface lines.

Step 3: Print Transaction OR Create/Print Consolidated Bill

Print Transaction

Use the Print Invoices window to submit your invoices, debit memos, chargebacks, deposits, guarantees, invoices against deposits, invoices against guarantees, credit memos, on-account credits, and adjustments for printing. You can print a batch of invoices, new invoices, selected invoices, and adjustments.
You also have the option of previewing your transactions prior to printing with the Invoice Print Preview Report.

Now we shall print the invoice to send the document to the customer.

Navigation: Print Documents > Invoices

Click OK

Check the list of values for Request Name field

Out of all the invoice reports we shall select Invoice Print Preview Report report. This report will show us the output so that we can review the invoices before we send the actual invoice to the customer.

Press OK

Submit this request. Two requests are executed,

1. Invoice Print Preview Report (Multiple Languages)
2. Invoice Print Preview Report

After the requests complete check the output of the 2nd request, i.e. Invoice Print Preview Report.

After previewing the invoice you can run the actual invoice report to send to the customer.

Navigation: Print Documents > Invoices

As we had executed the Preview report before we shall execute the report, Invoice Print New Invoices.

Press OK and submit the request. This request also executes 2 concurrent programs,

1. Invoice Print New Invoices (Multiple Languages)
2. Invoice Print New Invoices

Once both the requests complete, check the output of the 2nd request, i.e. Invoice Print New Invoices.

Now the invoice has been printed in Oracle. Here we have used the standard Oracle report for printing the invoice. Normally each organization has its own invoice format and hence almost all organizations have their own custom invoice report. Instead of executing the standard report the organizations execute their own custom invoice report.

Create/Print Consolidated Bill

For customers that prefer a monthly billing, Oracle Receivables enables you to issue Consolidated Bills rather than individual invoices for each transaction. When printing consolidated bills, Oracle Receivables gives you the option of printing new (final) consolidated bills, printing drafts which can be accepted or rejected, or reprinting draft or final consolidated bills.

Navigation: Print Documents > Consolidated Billing Invoices

Click OK

Check the available reports in the Name field.

The customer for which we have created the invoice does not ask for Consolidated Billing and hence this report will not be executed.

Step 5: Research Customer account

Receivables lets you view customer account information in a variety of ways. You can view the total amount overdue for a customer or customers in the Account Summary window. You can view all transactions that are past due for a specific customer in the Account Details window.

Navigation: Collections > Customer Accounts

Enter the customer name for whom we have raised the invoice. The customer name is Abu Dhabi Cargo Company.

Press Find button

The Customer Accounts form opens and the customer is displayed. We can get details about the customer, the open invoices, when the last statement was generated, when dunning letters have been generated, etc.

From the Customer Accounts form:

1. Click on Customer button to view the customer details

1. Click on Correspondence button to view the recorded correspondence between the customer and this organization.

This form displays information on when the customer was called, the customer response (shown above), details of Statements as shown below.

Dunning Letter details

1. Click on Call button to record any call made to the customer

From this form Actions to be taken are recorded. Click on Actions button.

Close this window and click on Topics button.

The call topics are displayed. All details about the customer and transactions, disputes, actions can be viewed from this form.

1. Click on Aging button to view the invoice aging for this customer

Click on Account details button will bring up the invoices for each aging bucket.

1. Click on Credit Hold button to put a hold on this customer

You can also release hold on this customer by pressing the button once again

1. Click on Account Overview button gives the overview of the customer transactions over all the periods

1. Click on Account Details button gives us the details of all the outstanding transactions for this customer.

Once you are done with researching on the customer account you can save and close the Customer Accounts form.

Step 6: Call customer to collect the amount

When a customer’s account or payment for a specific transaction is past due, you can contact the customer by phone and use the Customer Calls window to record the results of your conversation. By speaking with a customer you may learn that they were incorrectly billed, never received the goods or services that were ordered, or have already sent payment for the invoice in question. By entering details about your conversation, you create a record of the contact and can recommend any further collection action.

Navigation: Collections > Customer Calls

If the organization thinks that this customer has to be contact for making the payment then the customer is contacted and all details of this communication is recorded on this form.

We have entered the call details as shown below

We shall enter the customer response as well in the Response tab.

Save the form. Once the details are saved the buttons are enabled on the form.

You can use these buttons to review the customer and transaction details as you have seen in the previous step.

Step 7: Import/Create receipts

Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether the receipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied. You can enter Cash receipts that you receive from your customers for goods or services, and Miscellaneous transactions involving revenue earned from investments, interest, refunds, and stock sales.
With Cross Currency Receipts, you can apply cash in one currency against invoices in a different currency. The foreign exchange gain or loss is calculated for you automatically.
You can apply receipts to invoices, debit memos, deposits, guarantees, on-account credits, and chargebacks. You can partially or fully apply a receipt to a single debit item or to several debit items. You can enter receipts and apply them to transactions in either Open or Future accounting periods. You can also create chargebacks or adjustments against these transactions.

When the customer makes a payment a receipt is created. Navigation: Receipts > Receipts

Enter the receipt details.

In the previous step, the caller had noted in the Response section that the customer had agreed to pay AED 5000 on 02-Oct-2012. We shall enter the receipt with these details as the customer has made the payment.

Save the form. On saving the Reverse button gets enabled. This button will be used for reversing the receipt if the receipt had been created by mistake.

Step 8: Apply receipts

Now the receipt has been created for the customer we need to apply this receipt on the invoices and debit memos for this customer.

On the Receipt form note the Balances section.

The receipt has been created but not applied and therefore the unapplied amount for this receipt is 5000.

Click on Apply button on the bottom right of the form.

The Applications form opens. Click on Apply To field and check the list of open invoices and debit memos.

We can select any invoice in this list to apply this receipt amount.

Save the form and close this window. Note the Balances section on the Receipts form.

Now the entire receipt amount has been applied on the invoices. Click on Receipt History button.

The receipt history details are displayed.

Step 8: Transfer to General Ledger

At the end of a period the organization normally transfers the subledger transaction details to General Ledger.

Navigation: View > Requests

Submit a new request. Execute the General Ledger Transfer Program as shown below.

Submit this request. The following programs are executed,

1. General Ledger Transfer Program
2. Revenue Recognition
3. Revenue Contingency Analyzer
4. Journal Import
5. Update Posting Control

We shall now check the journal that has been created for the receivables transactions. Check the output of the Journal Import program.

The Journal batch created is, AR 1021642 Receivables 19004736: A 1021642.

Go to General Ledger responsibility to view this journal.

Navigation: Journals > Enter

Enter the Batch as AR 1021642 Receivables 19004736: A 1021642.

Click on Find button.

We see that 3 journals have been created in this journal batch. We can review the journals.

Journal: Trade Receipts AED 20-Sep-12

Journal: Trade Receipts AED 27-Sep-12

Journal: Sales Invoices AED 26-Sep-12

We can post the journals after review is complete. You can check the following article on Journal posting to check that process.

Cheers!