Oracle Receivables AR Transaction Types:

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AR Transaction Types is used to define the accounting of invoices and bills that are created in
Receivables. Transaction types also determine whether the transaction entries are to be updated in
customers' balances and whether Receivables posts these transactions to the General ledger.
Oracle Receivables are seeded with the following 5 Transaction types:
Credit Memo
Invoice
Projects Credit Memo
Projects Invoice
Intercompany
Based on the Business needs, the Transaction Types setups can be performed.
Defining a Transaction Type:
Navigation:
Receivables Manager Responsibility > Setup > Transactions > Transaction Types

Operating Unit: Select an Operating unit for this transaction type.

Legal Entity: Select the Legal entity for this transaction type.
Receivables uses the selected legal entity to default for transactions using this transaction type.
Name & Description: Enter a Name and Description for this transaction type.
Class: Enter a Class for this transaction type. Choose from the Dropdown following classes: Invoice,
Chargeback, Credit Memo, Debit Memo, Deposit, or Guarantee.
Transaction type class should be defined in the following order:
a. Credit memo Transaction types
b. Invoice, Debit memo and Chargeback Transaction types

c. Bills Receivable Transaction types

d. Commitment Transaction types
Creation Sign: Choose a Creation Sign. The default is Positive Sign for transaction types with a class
of either Guarantee or Deposit. This field cannot be updated after transactions are entered with this
type.
Transaction Status: Choose a Transaction Status of Open, Closed, Pending, or Void.
Printing Option: Choose a default Printing Option for transactions with this transaction type. Choose
Print or Do Not Print. This value can be overridden when entering transactions.
Invoice Type: If this transaction type's class is either Deposit or Guarantee, enter the Invoice Type to
use for invoices entered against commitments or deposits with this transaction type.
Credit Memo Type: If this transaction type's class is Deposit, Guarantee, Debit Memo, or Invoice,
enter the Credit Memo Type to use when crediting items with this transaction type (optional). When
you enter a credit memo against an invoice with this transaction type, the value you enter here is
the default credit memo transaction type.
Application Rule Set: Enter an Application Rule Set for this transaction type or select one from the
list of values (optional).
Terms: Enter the payment terms to use for transactions with this transaction type.
Start & End Date: Enter the range of dates that this transaction type will be active.
Open Receivable box: If the box is enabled, receivables updates the customer balances each time
when creating a complete debit memo, credit memo, chargeback, or on-account credit with this
transaction type. If defining a 'void' transaction type, set Open Receivable flag to No.
Allow Freight box: The box is enabled to allow freight to be entered for transactions with this
transaction type.
Post to GL box: Enable to be able to post transactions with this type to the General Ledger.
Default tax classification box: Enable to automatically assign a default tax classification on
transaction lines.
Natural Application Only box: Enable to flow AutoInvoice automatically evaluate imported credit
memos for receipt handling.
Accounts Tab:
Define Receivable Account, Freight Account & Revenue Account for transactions with this
transaction type.

After completion of defining the AR Transaction Type, the AR Transaction Type Name to be defined
for the order type in Order Management Transaction Type Finance Tab.
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