Chapter 6

Receivables

Overview
Oracle Receivables is a full-function accounts receivable system that improves your cash flow and handles all of your invoicing needs.
Start Order is processed Revenue Accounting Department generates invoice

Customer places order

General Ledger

Invoice is transferred

Invoice is overdue

Collections Department
General Ledger

Receipt is transferred

Payment is Received

End

Accounts Receivable Department

Complete the receivables cycle

High Payment Volumes Oracle Receivables gives you the power and flexibility you need to manage high payment volumes. Through direct debits and bills of exchange, you can directly transfer payments from your customer's bank account to your bank account, improving your cash flow and simplifying the collection process. All Types of Cash Receipts Based on rules you define, Oracle Receivables automatically does the accounting for all your cash receipts, including miscellaneous receipts such as refunds and investment income.
2 Oracle Financials Functional Overview

Better Customer Management Oracle Receivables helps you correspond with your customers more effectively. You can generate user-defined dunning letters and statements, as well as aged trial balances and key indicator reports. You have a record of customer commitments and contacts, and an online memo pad for tracking calls and follow-up actions. Improved Collections Powerful online collection tools help you track, monitor, and collect your receivablesand reduce your delinquent accounts. And, you can define as many statement cycles as you want, choosing dates and intervals that meet your needs. Greater Invoicing Controls You have complete control over all your transactions, with minimal data input. Generate not only standard invoices, but also debit and credit memos, recurring invoices, chargebacks, adjustments and commitments. Integration with Other Systems Using AutoInvoice and Customer Interface, you can transfer sales order and customer information from other financial systems to Oracle Receivables. Oracle Receivables automatically creates your open receivables and maintains accounting and customer balance information.

Oracle Receivables

Customers
Enter detailed customer, customer profile, contact phone data, payment method data and customer bank data online. Or if you are in a hurry, use Quick Customer Entry to enter basic customer information. You can then add more details at your convenience. Use Customer Interface to transfer and validate all customer, customer profile and customer bank data from other systems. Once you import customer information into Oracle Receivables, you can manually update and add new information through the customer entry windows.
Enter Limited Information Enter Complete Details Import from Other Systems

Quick Customer Entry

Standard Customer Entry

Customer Interface

Customer

Oracle Receivables provides flexibility in how you enter your customers

Business Needs
With Oracle Receivables you can:
s

Enter and update detailed customer information online Process new customers quickly and optionally enter more information later Import current or historical customer data such as customer names, addresses, site uses, contacts and telephone numbers Review the results of your customer data import in a clear and concise report Merge duplicate customers Transfer transaction activity from one site to another

Oracle Financials Functional Overview

Major Features
Detailed Customer Data Oracle Receivables lets you enter multiple addresses, contact people, bank accounts, payment methods and telephone numbers for each customer. You can also enter default credit, tax, class and salesperson information for your customers.

Enter customer addresses and other customer details

Simple Integration Customer Interface lets you import new customer data from any feeder system and ensures that the data which you are importing is accurate and valid within Oracle Receivables. You can also add or update information for customers which already exist in Oracle Receivables.

Oracle Receivables

Customer Data From AnotherSystem

Customer Interface

Customer Interface Execution Report

Fall Validation Temporary Interface Table Pass Validation

Oracle Receivables Table

Use Customer Interface to easily import customer data from any feeder system

Historical Data Conversion Customer Interface lets you import data from your original system, making the transition from your old application to Oracle Receivables as smooth and as efficient as possible. Customer Interface Transfer Report Oracle Receivables generates the Customer Interface Transfer Report every time you run Customer Interface. Use this report to easily review the number of customers, addresses, site uses, customer profiles, contacts, telephone numbers, customer bank branches, customer bank accounts and payment methods that were imported into Oracle Receivables. This report also displays an exception section to inform you of records that fail validation. Customer Credit Profiles You can update or insert customer credit profile information online or via Customer Interface. You can assign payment term, statement, automatic receipt, finance charge, dunning and invoicing information to your customers and their Bill-To addresses.

Oracle Financials Functional Overview

Customers

Credit Worthiness Finance Charges Dunning Letters Minimum Customer Balance Minimum Invoice Balance

Payment Promptness Payment Terms Discounts Grace Days

Business Volume Credit Limit Discounts Statement Cycle

Enter customer profile class attributes

Merging Sites For Different Customers If you have duplicate customers or your company purchases another company, you can use the Customer Merge program to transfer activity from one customer to another by merging like site uses.

Order 2 Invoice 201

Order 1 Invoice 101 Invoice 102

Bill To

Ship To

Bill To

Ship To

ABC Corp

ABC Corp

Order 1 Invoice 101 Invoice 102

Order 2 Invoice 201

Bill To

Ship To

ABC Corp

Oracle Receivables lets you easily merge your customers when necessary

Oracle Receivables

Merging Sites Within the Same Customer If you have a customer that is closing one of their sites and there is activity assigned to this site, you can use the Customer Merge program to transfer activity to a new site within this customer. For example, Acme currently has two Bill-To sites, but they are planning to close one of these sites. Using the Customer Merge program you can transfer activity from the closed site to the remaining open site. Deleting or Inactivating Old Customer Information After the Customer Merge program has successfully merged customer sites, you can either have Oracle Receivables delete or inactivate old customer, address and site use information. Automatic Receipts Enter payment methods and banks that are associated with your customers online or using Customer Interface. Oracle Receivables uses this information for the creation of automatic receipts, such as Bills of Exchange and Direct Debits.

Oracle Financials Functional Overview

Commitments
Oracle Receivables lets you define commitments to bill for customer deposits or prepayments, as well as record contractual guarantees of future purchases. Oracle Receivables automatically creates all necessary accounting entries for your commitments.

Customer

Optional Pre-Pay Contractual Agreement

Billed for Deposit and Invoice (If Invoice is More than Deposit)

Billed for Deposit

Billed for Invoice

Create customer commitments with Oracle Receivables

Business Needs
With Oracle Receivables you can:
s

Bill for deposits agreed upon with your customers Send notices for guarantees of future purchases Track customer activity against their commitments Produce invoices that show current customer commitment balance information

Oracle Receivables

Major Features
Automatic Accounting Entries Oracle Receivables automatically creates accounting entries for your commitments. When your customers invoice or credit against their commitments, Oracle Receivables automatically adjusts the commitment balance and generates reversing accounting entries.

Enter or change your customer commitments

Commitment Balance Report The Commitment Balance report shows all invoicing and credit memo activity against your commitments, eliminating the need to maintain spreadsheets to track your customers obligations. If you are using Oracle Order Entry, the Commitment Balance Report also shows any pending orders against that commitment so that you have the most current commitment balance information. Use the Commitment Balance report to show all activity against your commitments, and to show the outstanding balance on the commitment. Overdrawing Commitments You can enter orders and/or invoices against commitments that total an amount greater than the commitment balance. You do not have to worry about knowing the exact remaining balance for a commitment. Oracle Receivables automatically invoices for the excess amount, creates the proper accounting entries, and clearly illustrates the commitment activity on the printed invoice and the Commitment Balance report.

10

Oracle Financials Functional Overview

Invoices
Oracle Receivables provides powerful and easy-to-use capabilities for managing the timeconsuming task of invoice entry. Oracle Receivables gives you the flexibility you need to create invoices that meet even your most difficult requirements. With Oracle Receivables, you can spend your valuable time managing your business instead of entering data.

Single Invoice Multiple Invoices

Simple

Quick Transaction Entry

Enter Transactions

Run AutoInvoice

Accounts Receivable

Oracle Receivables provides powerful and easy-to-use invoice entry capabilities

Business Needs
With Oracle Receivables you can:
s

Create invoices quickly and easily, using invoice types, statuses, and other information you define to help implement your own control procedures Produce invoices for customers with multiple billing and shipping locations Import and validate invoice information from your other financial systems Enter invoices in foreign currencies Use standard payment terms to schedule due dates, discount dates, and discount amounts for your invoices Assign sales revenue credit to your salespeople or make sales credits optional Save time by creating a recurring invoice, eliminating the need to enter the same invoice every month Recognize revenue over multiple periods
Oracle Receivables 11

Major Features
Online Entry Oracle Receivables lets you enter invoices using default values you specify during setup, making invoice entry quick and easy.

Enter invoices and debit memos one at a time, or in a group called a batch

Easy Customization Oracle Receivables lets you use Descriptive Flexfields to tailor invoicing windows to your unique needs without programming. You can prompt your users to enter any additional information you require. AutoInvoice AutoInvoice allows you to automatically import invoice information from your other financial systems. You can integrate Oracle Receivables with existing applications, such as order entry. For each accounting period, import invoices from feeder systems, then review and print them. Multiple Customer Addresses Oracle Receivables lets you send invoices to one customer address while shipping invoice items to another. You can enter an unlimited number of addresses for each of your customers. Foreign Currency Invoices Oracle Receivables allows you to enter invoices in any currency, automatically converting foreign currency amounts into your functional currency using the exchange rate you specify. Oracle Receivables saves your invoice information in both currencies to maintain an audit trail for all your foreign currency transactions.

12

Oracle Financials Functional Overview

Recurring Invoices Choose a model invoice and a recurring schedule, and Oracle Receivables automatically creates your recurring invoices for you.

Model Invoice

January

April

July

Recurring Invoice

Recurring Invoice

Recurring Invoice

Create your recurring invoices using Oracle Receivables

Unlimited Payment Terms Oracle Receivables gives you flexibility to define payment terms as your business requires. You can define standard, discount, and split payment terms. Oracle Receivables lets you define proxima terms for day-of-the-month billing. Easily define payment terms which match your customers payment cycles. Specify day-of-the-month or use standard end-of-the-month terms and Oracle Receivables automatically calculates discount dates and due dates. Set up tiered discounts for each installment. Revenue Recognition Over Multiple Periods If you provide products and services which span over time you can use invoicing and accounting rules to recognize revenue over multiple periods. These rules determine when to book your revenue and receivables amounts for the invoice. You can prorate revenue over multiple periods and recognize receivables in the first or last of these periods.

Oracle Receivables

13

Credit & Debit Memos

Oracle Receivables provides you with powerful capabilities for managing the task of credit and debit memo entry. With Oracle Receivables, you can spend your valuable time managing your business instead of doing data entry.
Credit Memo Invoice

On-Account Credit

Customer Account

Apply different types of credits

Business Needs
With Oracle Receivables you can:
s

Create full and partial credit memos quickly and easily Create and apply credit memos and on-account credits to invoices, debit memos, and chargebacks Create debit memos for extra receivables charges such as finance charges, unearned discounts taken, additional shipping charges, additional freight charges and additional taxes Create credit and debit memos in foreign currencies Change the amounts, percents and accounts for each distribution line, even after posting to your general ledger

Major Features
Debit Memos Oracle Receivables lets you manage your customer accounts for additional charges you want to collect. You may want to charge your customers for unearned discounts taken, additional freight charges, taxes, receivables charges, or finance charges. You can enter a debit memo in the same way that you would enter a standard invoice. On-Account Credits Oracle Receivables helps you mange your customer accounts more effectively by letting you create on-account credits. You can print your on-account credits to notify your customers and apply on-account credits to your customers outstanding receivables.
14 Oracle Financials Functional Overview

Credit Memos Oracle Receivables lets you fully or partially credit an invoice quickly and easily to one or more lines. Simply indicate the invoice you want to credit and Oracle Receivables automatically performs the accounting reversals for you.

Enter, update, and review your on-account credits and other credit memos

Credit Memo Application Oracle Receivables lets you apply your credit memos and on-account credits to open invoices, debit memos, and chargebacks. Correcting mistakes is easy since you can edit those applications later, if necessary. User Changeable Defaults AutoAccounting enables fast data entry by providing defaults for your accounting information based on business rules you define. AutoAccounting always gives you control to override these default Accounting Flexfields anytime you want.

Oracle Receivables

15

AutoInvoice
AutoInvoice is a powerful, flexible tool that lets you import and validate transaction data from other financial systems, from which you can create invoices, debit memos, credit memos and onaccount credits.

Order Entry System Non-Oracle Invoices

AutoInvoice Program

Temporary Interface Table Fail Validation Pass Validation

Oracle Receivables Table

Run AutoInvoice to import and validate transaction data from other financial systems

Business Needs
With Oracle Receivables you can:
s

Automatically convert the data you import into invoices, debit memos, credit memos and onaccount credits Choose how you want to uniquely identify the transactions you import Import transaction data from a variety of environments, including your own sales order systems Submit individual or groups of transactions for processing using different selection criteria Indicate how you want to group your imported transactions into invoices and order the lines Choose how you want to determine your invoice and accounting dates

16

Oracle Financials Functional Overview

Assign default general ledger accounts to your transactions Choose whether you want to pass multiple revenue accounts for each transaction line Assign additional sales tax or Value Added Tax rates to your transactions Assign multiple tax names and tax accounts to your transactions Review the results of your transaction data import in a clear and concise report

Major Features
Simple Integration AutoInvoice lets you import transaction data from a variety of environments and ensures that the data you import is accurate and valid within Oracle Receivables. You can import data from your existing systems, or from any system from which you need data. Historical Data Conversion AutoInvoice lets you import transaction data from your previous revenue accounting system, making the transition from your old application to Oracle Receivables as smooth and as efficient as possible. Transaction Flexfields AutoInvoice provides a way to uniquely identify each transaction you import into Oracle Receivables. Use Transaction Flexfields to capture information that will help you trace transactions from Oracle Receivables back to the systems from which they originated. AutoInvoice ensures that each Transaction Flexfield is unique so you can refer to previously processed transactions. Creating Transactions AutoInvoice creates invoices, debit memos, credit memos and on-account credits using the grouping and invoice line ordering rules you specify and ensures that your data is valid before creating these transactions. Calculating Tax AutoInvoice provides the functionality you need to meet your sales tax and other tax requirements, such as Value Added Tax. You can have AutoInvoice automatically determine your tax rates using the hierarchy determined by the tax calculation flow charts and/or pass tax code lines manually. AutoInvoice takes into account any customer or item tax exemptions or item tax exceptions that exist. Deriving Invoice and Accounting Dates AutoInvoice lets you choose how you want to determine invoice and accounting dates for your transactions. Your feeder program can either load these dates directly into the interface tables or, if you leave the date fields empty, Oracle Receivables will determine the dates for you.

Oracle Receivables

17

Passing Multiple Revenue Accounts Use AutoInvoice to pass multiple revenue accounts and amounts for each of your transactions. Invoices Against Commitments AutoInvoice lets you create invoices against commitments the same way you would with a manually entered invoice. AutoInvoice Reports Oracle Receivables automatically generates the AutoInvoice Processing Report every time you run AutoInvoice, so that you can review the status of your imported transaction data. Oracle Receivables displays summary information about your transactions, such as the number of transaction, sales credit and distribution lines that have passed and failed validation. Oracle Receivables also automatically generates the AutoInvoice Validation Report every time you run AutoInvoice, so you can review the error messages for each record that fails validation. You can use this report to help resolve your errors and then re-import your information.

18

Oracle Financials Functional Overview

AutoAccounting
AutoAccounting is a powerful, flexible, and time saving feature that automatically creates your general ledger accounting information--your Accounting Flexfields. You can easily set up AutoAccounting to create Accounting Flexfields in a way that meets your business requirements. Oracle Receivables provides efficient and effective control of your accounting information.

Business Needs
With Oracle Receivables you can:
s

Automatically assign valid Accounting Flexfields to your invoices and credit memos Automatically generate valid Accounting Flexfields for your freight, receivable, revenue, AutoInvoice Clearing, tax, unbilled receivable, and unearned revenue accounts Flexibly control how your Accounting Flexfields are created and defined to match the way you run your business

Major Features
Automatic Accounting Flexfield Creation Oracle Receivables automatically creates default Accounting Flexfields for your revenue, freight, receivable, and tax accounts for each invoice and credit memo. AutoAccounting also creates the proper unearned revenue or unbilled receivable accounting entries you need when you use invoicing and accounting rules. You can quickly enter your invoices and credit memos without having to worry about entering the correct account. User Definable Structure AutoAccounting lets you determine how you want to create your Accounting Flexfields. For each Accounting Flexfield segment, you can choose if you want to use a constant value or have Oracle Receivables derive it. For example, you may have a four segment Accounting Flexfield that looks something like this: 01-100-2025-345. With AutoAccounting, you can specify that the first segment is a constant, the second segment is determined by the salesperson, the third segment is determined by the transaction type and the fourth segment is determined by the product. This is just one example of the almost limitless number of ways you can define how you want AutoAccounting to create your default Accounting Flexfields.

Oracle Receivables

19

Tax
Oracle Receivables gives you the flexibility to calculate tax based on your customer's shipping address and/or tax codes. You can choose the structure of your Sales Tax Location Flexfield which is used to calculate location-based tax for your customers. If you do not want tax based on your customer's shipping address, you can define tax codes and assign them to specific items, customers and customer business purposes. Oracle Receivables also lets you define customer and item tax exemptions as well as tax exception rates.

Business Needs
With Oracle Receivables you can:
s

Calculate tax based on a customer's shipping address Calculate tax based on a bill-to address if no ship-to address exists Prevent the calculation of tax on foreign addresses Calculate tax based on codes, such as VAT, that can be assigned to items, customers and customers' business purposes Assign special tax exception rates to items that are shipped to specific locations Fully or partially exempt specific customers, locations or items from sales or code-based tax Create compound tax charges Assign multiple tax rates and accounts to each invoice line Easily load tax rates into Oracle Receivables from an external source

Major Features
Tax Calculated from Location Oracle Receivables can calculate tax based on different components of your customers' shipping addresses for all addresses in your home country. You specify a Sales Tax Location Flexfield structure that includes the components you want Oracle Receivables to use when calculating tax. For example, in the United States, tax is usually calculated by adding the tax rates assigned to the shipping state, county and city. Address Validation Oracle Receivables optionally validates your customers' addresses to ensure that all components of your customers addresses are valid before you can save them in the customer entry windows. You can also set address validation to Warning or choose to have no validation on customer addresses.

20

Oracle Financials Functional Overview

Sales Tax Rate Interface Program Use the Sales Tax Rate Interface program to load sales tax records into Oracle Receivables. If you subscribe to a tax service, use this program to easily load the sales tax values and rates supplied by the tax service. Tax Calculated from Tax Codes Oracle Receivables can also calculate tax based on tax rates you assign to user-definable codes. These tax codes can then be assigned to specific items, customers and customer business purposes. For example, in many parts of Europe, tax depends on the item. This is called Value Added Tax (VAT). If you want to use both types of tax, you simply define your receivables system to handle location tax and then choose specific tax codes when you enter your invoice lines.

Business Purpose Product Tax Code 10% Customer

Location 8%

Location and Tax Code 8% + 10%

Oracle Receivables provides powerful tax calculation options

Compound Tax Oracle Receivables lets you create compound tax charges when entering invoices. You can assign precedence numbers to indicate which tax line you want Oracle Receivables to compound. Multiple Tax Rates and Accounts Oracle Receivables lets you assign multiple tax rates and tax accounts to each invoice line. You might want to distribute your tax amounts to different accounts for reporting purposes. Tax Exemptions Tax exemptions allow you to fully or partially exempt specific customers or items from tax. For example, you might want to offer your customers a partial tax exemption if they purchase a specific item you are promoting that week. You can define exemptions either at the customer, item or regional level. Thus you could create an exemption for a customer, such that the customer is always exempt from tax or is exempt only in the state of California. Review Tax on Orders Oracle Order Entry lets you review the tax on an order at the time of order entry. Then, Oracle Receivables will recalculate the tax, using the most up-to-date tax rates, at the time of invoice entry, and assign this tax amount to the invoice.

Oracle Receivables

21

Sales Tax Rate Interface

The Sales Tax Rate Interface enables you to load sales tax locations and rates into your application from your sales tax feeder system. This program allows you to load one or more tax rates for the same location which cover different date ranges and postal codes. The records that you load into Oracle Receivables or Order Entry through the Sales Tax Rate Interface program update your existing sales tax rates with the most current tax rates for each location. You can then use this new tax information to create invoices manually, import invoices into Oracle Receivables using the AutoInvoice program, order entry and validate new customer addresses that you enter.

Business Needs
With Oracle Receivables you can:
s

Define new locations for your tax authorities Update, add, and terminate existing sales tax rates Assign multiple sales tax rates to the same location that have different date and postal code ranges

Major Features
Adjust Tax Rate Dates The Sales Tax Rate Interface program can adjust the active date range of existing tax rates as you load new tax rates into your application. Load Multiple Tax Locations and Rates The Sales Tax Rate Interface program allows you to load all your locations and tax rates at one time rather than enter each one manually. You can immediately use this new tax information to create invoices manually, import invoices into Oracle Receivables using the AutoInvoice program, enter orders and validate new customer addresses that you enter. Maintain Up-to-Date Tax Rate Information Use the Sales Tax Rate Interface program to ensure that you have the most current sales tax information. You can submit this program periodically to update your existing tax rates with the most recent changes.

22

Oracle Financials Functional Overview

Tax Vendor Hook

Oracle Receivables provides a Tax Hook that you can use to integrate tax calculation programs which are external to the product. This enables you to provide for complex tax calculation needs whilst retaining the full power of Oracle Receivables to create and store all other tax data. External tax calculation programs are provided by established tax vendors, such as AVP and Vertex. Oracle Receivables calls the Tax Hook whenever it calculates a tax rate and, when implemented, will return a tax rate and/or amount from the vendor program. Oracle Receivables then creates the tax line and related accounting information.

Business Needs
With Oracle Receivables you can:
s

Integrate with vendors of sales tax rate calculation programs Calculate flat tax amounts Calculate multiple tax lines Calculate compound tax lines using precedence groups to control which tax lines are compounded on which others Calculate tax amounts using a set of parameters you define Calculate tax amounts rounded to a specific precision and minimum accountable unit Integrate your tax vendor with Oracle Order Entry

Major Features
Tax Database Views Oracle Receivables provides database views it uses to control which database columns are passed into the tax engine to calculate tax for your transaction lines. You can modify these views to take full advantage of proprietary features of your tax vendor. These features may allow for more accurate tax calculation. Generic Tax Hook Whenever Oracle Receivables calculates a tax rate using the Sales Tax engine, Oracle Receivables uses the Tax Hook. You can implement the Tax Hook to generate one or more tax lines for every invoice or line. AutoAccounting generates one account distribution for each tax line returned from the tax vendor and Oracle Receivables posts this information to the general ledger in the normal way.

Oracle Receivables

23

Calculating Multiple Tax Lines and Compound Taxes You can modify the tax database views to return multiple tax lines per invoice line. For example, this is useful if you need to create tax lines for each component of your Sales Tax Location Flexfield, rather than having a total rate for all the components. Additionally, if you are passing back multiple tax lines, you can also pass a tax precedence for each line, to indicate a compounded tax line. Integration With Oracle Order Entry The Oracle Receivables Tax Hook is fully integrated with Oracle Order Entry. At the time of order entry, the tax amount for an order or line will be calculated by calling the integrated tax engine. Consequently, if you have installed a tax vendor, it will be called to calculate tax on the order in the same way as on the invoice.

24

Oracle Financials Functional Overview

Adjustments
Oracle Receivables provides powerful capabilities for entering adjustments.

Business Needs
With Oracle Receivables you can:
s

Review and adjust customer debit items quickly and easily Automatically query the invoice you want to adjust Approve adjustments that are within your approval limits and give pending statuses to adjustments that are outside your approval limits Adjust the remaining balances of invoices, debit memos, credit memos, and chargebacks within tolerance limits that you specify Automatically write off debit items that meet your selection criteria Adjust sales revenue credit to your salespeople Adjust the exchange rate type, rate date, and rate of foreign currency payments that have been transferred to your general ledger

Entering adjustments is easy since you can use predefined adjustment activities

Oracle Receivables

25

Major Features
Adjustment Activities Oracle Receivables' Adjustment Activities let you focus on adjusting receivables rather than understanding complex accounting rules. You specify the accounting for a receivables adjustment by referring to a predefined activity name such as WRITEOFF, rather than an unfamiliar accounting code. Oracle Receivables automatically performs the underlying accounting for you. Transaction Element Adjustments Oracle Receivables lets you administer receivables accurately and precisely by letting you separately adjust different aspects of an invoice, debit memo, credit memo, or chargeback. You can adjust against the tax, freight, lines, or receivables charges. Adjustment Approvals Oracle Receivables gives you the ability to control approvals for your receivables adjustments by letting you create individual approval limits. For example, you might want a manager to approve all adjustments, regardless of the amount. Or, you might want to have a manager approve adjustments over a certain amount. You decide how you want to control adjustment approvals. You can also specify if you want to allow overapplication of the original transaction. Automatic Adjustments Oracle Receivables gives you the ability to adjust invoices, debit memos, and chargebacks automatically. Specify the selection criteria and Oracle Receivables automatically creates your pending or approved adjustments based on your approval limits, and prints preview and audit reports for your AutoAdjustment processes. Adjusting Exchange Rates You can easily change the exchange rate of a previously posted receipt application. Simply enter the receipt number you want to adjust and Oracle Receivables displays currency exchange rate information. Then, enter the new exchange rate information for the receipt you are adjusting. Oracle Receivables automatically posts your currency adjustment, including any gains or losses resulting from it.

26

Oracle Financials Functional Overview

Receipts
Oracle Receivables provides powerful receipt windows to help you apply customer receipts quickly and effectively. Oracle Receivables provides immediate access to all invoice information necessary to maximize your receipt entry and application productivity.

Option A Enter Receipts Manually

Option B Import Receipts Using Lockbox

Option C Create Automatic Receipts

Other Receipts

Standard

QuickCash

Post QuickCash

Create Adjustment

Create Chargeback

Remit Receipt Reconcile Receipt Reconcile Receipt

Reverse Receipt Reverse Receipt Reapply Receipt

Enter receipts using a variety of powerful receipt entry windows

Business Needs
With Oracle Receivables you can:
s

Create batches for processing your receipts Apply receipts to customer invoices, debit memos, chargebacks and deposits Optionally apply receipts to unrelated customers without creating a customer relationship Create item level actions to create chargebacks or adjust your customer's debit item during receipt entry to close your customer's debit items
Oracle Receivables 27

Apply credit memos and on-account credits to your customer's invoices, debit memos, and chargebacks Let the bank record your receipts automatically Automatically create receipts for Direct Debit or Bills of Exchange payments Optionally require tracking of remittance batches to your banks or clearing institutions and clearing of the receipts Support factoring of remitted receipts Reduce your receipt application backlog by automatically applying receipts to open invoices using application rules you specify Reconcile and close your receipt batches Resolve complex receipt applications Process multi-currency receipts Calculate, post, and report realized gains and losses pertaining to multi-currency conversions

Start

Enter receipt Information

Apply Receipt to Debit Item

Specific Receipt Applications Mass Receipt Applications Create Chargebacks and Adjustments

Balance $20

Balance $0

Chargeback

Chargeback

Enter standard receipts easily using Oracle Receivables

28

Oracle Financials Functional Overview

Major Features
Multiple Invoice Application Oracle Receivables makes complex receipt applications easy. Apply customer receipts to all or part of many transactions. For example, your customer may send a single check to pay an entire invoice as well as part of another invoice. Or a customer may have an on-account credit he will expect you to use with his receipt. Enter Receipt Actions Oracle Receivables provides a powerful feature that lets you create item level actions while you enter and apply your receipts. With item level actions you can create adjustments, issue chargebacks, and apply receipts to your credit memos and on-account credits to reduce your customer's balance. QuickCash QuickCash lets you enter your receipts quickly, with a minimum amount of information so you can balance and close your batches. While entering receipts, you can review how each receipt entry affects the batch you are working on. All QuickCash receipts are stored in a temporary area. This allows you to review your receipt batches before updating your customer accounts. Miscellaneous Transactions Application Oracle Receivables provides easy accounting for receipts that do not pay customer debit items. Examples of miscellaneous transactions include refunds and interest income. Receipt Reversals Oracle Receivables lets you reverse receipts when your customer stops the check or when your receipt comes from an account with non-sufficient funds. You can also reverse a receipt if you want to re-enter and reapply the receipt to another debit item. To reverse a receipt, you can either create a standard reversal or debit memo reversal. When you choose to create a standard reversal, Oracle Receivables automatically updates your general ledger and reopens the invoices you closed with the original receipt. When you choose to create a debit memo reversal, all previous receipt activity remains unchanged while your customer's account is charged with another receivable.

Oracle Receivables

29

AutoCash Rules
Eliminate the time you spend applying receipts to your customer's debit items by using AutoCash rules. These rules are used by the Post QuickCash program to determine how to automatically apply your receipts. Oracle Receivables lets you determine how you want to calculate your customer's account balance and how you want to match receipts to transactions.

Business Needs
With Oracle Receivables you can:
s

Automatically apply receipts to your customers outstanding items Define as many AutoCash rule sets as you want with different receipt application rules or different sequences of rules Determine how your customers' open balances are calculated in accordance with these rules

Major Features
AutoCash Rules and Rule Sets Oracle Receivables provides four receipt application rules that you can use to define your AutoCash rule sets. Rule Sets determine the sequence of application methods Oracle Receivables uses when automatically applying receipts. You can have Oracle Receivables automatically apply receipts to the oldest debit items first, clear account balances, apply receipts to past due items and match receipts with debit items. When you define your AutoCash rule sets, you specify the rules and the sequence of these rules. You decide which AutoCash Rule Set you want Oracle Receivables to use during receipt application. Calculating Open Balances For each AutoCash rule set, you can determine how you want Oracle Receivables to calculate your customer's open balance. You can choose if you want to include discounts, finance charges and items in dispute. Oracle Receivables uses your customers open balances along with the AutoCash rules to determine how receipts are applied to your customers items. Partial Receipts Determine whether you want Oracle Receivables to be able to apply partial receipts to your customers' items. Remaining Amounts If Oracle Receivables is not able to apply or fully apply receipt amounts, you can determine whether the remaining amount is left as Unapplied or On-Account.

30

Oracle Financials Functional Overview

Discounts
Oracle Receivables lets you give discounts to your customers when they pay for their debit items before a certain date. Discounts are determined by the payment terms you assign to your customers. You can choose to allow discounts for partial payments. You can also choose whether to base the discount on the whole invoice amount or only on the line and tax amounts.

Business Needs
With Oracle Receivables you can:
s

Allow your customers to take earned and unearned discounts Give discounts for partial payments Specify whether you want to calculate discounts on just the invoice line and tax amounts or the total invoice amount Give your customers discount grace days Define tiered discounts for each payment schedule Assign payment terms to specific customers or site uses

Major Features
Earned and Unearned Discounts Oracle Receivables lets you determine whether your customers can take earned and unearned discounts. Earned discounts are discounts a customer takes within the earned discount period. Unearned discounts are discounts taken after the earned discount period has passed. Discounts for Partial Payments Oracle Receivables lets you give discounts to customers who partially pay an installment. If you allow discounts on partial payments, Oracle Receivables prorates the amount of the discount based on the receipt amount. Discount on Lines Only You can control whether Oracle Receivables calculates discounts on just the invoice line amounts or the total invoice amount which might include tax and freight. Tiered Discounts When you define your payment terms you can assign multiple discounts to each payment schedule. You might want to assign different discount percents based on different discount dates. For example, you might want to give your customers a 15% discount if they pay within 10 days after the invoice date, but only a 5% discount if they pay within 15 days.
Oracle Receivables 31

AutoLockbox
Oracle Receivables' AutoLockbox eliminates manual data entry by allowing you to automatically process receipts that are sent directly to your bank. You can determine how you want to apply these receipts to your customers' outstanding items. Let the bank do the work, not your accounts receivable team.
Bank Collects Check Customer Sends Check Lockbox Bank Updates Account Balance Bank Creates Data File

Lockbox Interface

CUSTOMER ACCOUNT

Import Data into Temporary Tables

Correct Invalid Data Temporary Table

Update Customer Balance Transfer Valid Data into QuickCash Table QuickCash Table Post QuickCash

Use Lockbox Interface to eliminate manual data entry

Business Needs
With Oracle Receivables you can:
s

Automatically record foreign and functional currency receipts from your bank Automatically identify the customer who remitted the receipt Update receipts that are rejected during the validation process Interface any data that your bank can transmit

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Oracle Financials Functional Overview

Major Features
Historical Data Conversion AutoLockbox can interface receipts from your previous accounting system and ensures that the receipts you are interfacing are accurate and valid within Oracle Receivables, making the transition from your old accounting application to Oracle Receivables smooth and efficient. AutoLockbox Processing Report Oracle Receivables prints a report for you to review after submitting AutoLockbox. You can use this report to help you easily correct and resubmit records that failed the import or validation step. Flexible Transmission Formats Banks use transmission formats to determine what information to pass and how to format your bank file. Magnetic Ink Character Recognition (MICR) Numbers Oracle Receivables stores information about your customers and their associated MICR numbers. MICR numbers consist of the bank's transit routing number and the customer's bank account. MICR numbers are also used to associate a customer with a receipt. When a receipt is manually or automatically entered with a new MICR number, this number is stored and used for future reference. AutoAssociate Besides using customer and MICR numbers to identify receipts, you can also use the invoices to which you apply receipts. If you include invoice numbers from your customers remittance advice in the bank file, Oracle Receivables uses the invoice number for each receipt to identify the customer. This is called AutoAssociate. If the customer cannot be identified, the receipt is imported as Unidentified. You can easily assign customers to unidentified receipts. Associate Receipts With Billing Locations Oracle Receivables lets you track receipt activity for each of your customers' billing sites. Receipts in Multiple Currencies Oracle Receivables lets you process receipts in multiple currencies. If you pass the currency name, exchange rate type and receipt date, AutoLockbox tries to determine the exchange rate. Audit Trails Oracle Receivables keeps track of each transmission you submit. You can trace a receipt back to its transmission, lockbox and origination date.

Oracle Receivables

33

Bank File Validation Oracle Receivables validates the data you receive from the bank to ensure that the entire file was received, that a receipt is not a duplicate within a batch, and that the customers and invoices are valid.

34

Oracle Financials Functional Overview

Post QuickCash
If you enter receipts and receipt applications either through the QuickCash window or through AutoLockbox, Oracle Receivables stores them in interim tables. These receipts and applications do not effect your customer's balance until you run Post QuickCash. Because these receipts and receipt applications are temporarily stored in interim tables, you have time to review them for accuracy. Once they are approved, you can run Post QuickCash. Post QuickCash provides an extra level of control for entering high volume receipts.

Data Entry Batch Receipts

Lockbox Import Lockbox Data into Temporary Tables

Select Invoices for Application

Temporary Table Transfer Valid Data into QuickCash Table

QuickCash Table Reviewed by Manager

Updates Customer Balances

Accounts Receivable

Run Post QuickCash Program

Use the Post QuickCash program to update your customer balances from receipts and receipt applications

Business Needs
With Oracle Receivables you can:
s

Choose which receipts and applications you want to review Review receipts and applications before they update your customers' balances Make changes to these receipts and applications

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35

Major Features
QuickCash Oracle Receivables provides QuickCash to quickly enter your receipts and applications. QuickCash requires minimal data entry so you can concentrate on entering high volumes of receipts and applications. AutoLockbox AutoLockbox is a feature that allows you to automatically record receipts and applications from your bank. Specify how you want this information transmitted and Oracle Receivables ensures that the data is validated before creating QuickCash receipt batches. Once this information is successfully transmitted, you can easily query your receipts and applications. Reviewing Receipts and Applications Before you run Post QuickCash, you can easily review all of your receipts and applications. Post QuickCash Execution Report Oracle Receivables automatically generates the Post QuickCash Execution Report every time you submit Post QuickCash. This report displays detailed and summary information for each QuickCash receipt batch you process.

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Oracle Financials Functional Overview

Automatic Receipts
Instead of waiting for your customers to remit their payments and then remitting these payments to your bank, you can use the Oracle Receivables automatic receipts feature to have the funds directly deposited into your bank account. With automatic receipts you reduce the time and hassle involved in processing the checks you receive from your customers. Direct Debits and Bills of Exchange allow you to arrange for your customers to automatically transfer funds from their bank accounts to yours.
Start

Customer and Company Make Agreement

Create Invoices with Automatic Payment Method

Create Automatic Receipts Send Automatic Receipts to the Bank for Collection Confirm Automatic Receipt

Create automatic receipts to directly deposit funds into your bank account

Business Needs
With Oracle Receivables you can:
s

Streamline your bank remittance processing Automatically clear receipts after their maturity date Maintain tighter control over your customer accounts with visibility for cash-in-transit Manage your cash flow by always knowing when payment transfers occur Collect payments on time by directly debiting your customers bank account Reconcile your bank statements with your accounts receivable system

Oracle Receivables

37

Major Features
Streamlined Remittance Banking The streamlined remittance banking process provides simple transaction flows, fast matching, bank statement reconciliation, and the ability to change the remittance bank during remittance processing. Maintain control over the amount you remit or factor to your bank by selecting receipts based on a threshold amount. Deposit receipts into remittance bank accounts denominated in your functional currency or in the currency used in the receipt. Automatic Clearing for Receipts Automatically clear receipts after their maturity date, or immediately in the case of factored receipts. When used in conjunction with Oracle Cash Management, this feature provides a complete solution for managing your bank statements and reconciling them with Oracle Receivables and Oracle Payables. Direct Debits With direct debits you can collect payments from your customers by having funds automatically withdrawn from their bank account and deposited into your bank account. Arrangements must be made with your customers and their banks to perform the automatic transfer of funds. The transfer of funds occurs when your bank processes the remittance information you send to them. Many utility companies offer their customers the option of paying their monthly bills through direct debits because it saves time and customers no longer need to worry about sending their bills in on time. You may also take earned discounts of direct debits. Bills of Exchange With Bills of Exchange, your customers must confirm each automatic receipt before funds can be withdrawn from their bank account and transferred to yours. Bills of Exchange are more commonly used internationally. Just like with direct debits, arrangements must be made with your customers and their banks to perform the automatic transfer of funds. Confirming Automatic Receipts If you are creating Bills of Exchange, you must confirm your automatic receipts with your customers. Confirmation involves sending automatic receipts to your customers for review. Once your customers review their Bills of Exchange they will send them back to you for updating or approval. After making any necessary changes, you confirm the receipts in your system. You do not need to confirm Direct Debits since your customer has already given you permission to transfer funds.

38

Oracle Financials Functional Overview

Start Create Automatic Remittance Remittance Bank Collects Payment from Customer Bank

Complete Clear Receipts Bank Sends Statement

Remit and reconcile your receipts

Remitting Receipts You can remit automatic receipts to your bank to inform the bank of the amount that should be transferred to your account. Remittance is performed after confirmation, if you require confirmation. You can also remit manual receipts to the bank. Clearing Bank Remittances Once the bank transfers the funds to your bank account, you receive a statement from the bank which shows the amounts deposited into your account. If your company does not want to recognize the cash until it has been deposited into your bank account, you have the option of reconciling the bank statement with your accounts receivable system. You can use the clearing feature for both manual and automatic receipts.

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39

Bank Statement Reconciliation with Oracle Cash Management

Oracle Cash Management allows you to reconcile bank statement transactions against source ledger transactions from Receivables, Payables, and General Ledger. You can clear bank transactions--both receipts and payments--and enter and clear other miscellaneous transactions for a bank account. In addition, Oracle Cash Management provides the inquiry windows and reports to support analysis of bank account activity.

Business Needs
With Oracle Cash Management you can:
s

Reconcile receipts for your bank accounts by marking remitted receipts as cleared Reconcile payments for your bank accounts, either automatically from a data file, or manually Enter miscellaneous bank statement transactions, such as bank charges and bank interest, as well as petty cash receipts or payments, and clear these items View payment and receipt information Run reports to help reconcile your bank statement

Major Features
Reconciling Receipts You can enter a date on your clearance batch which matches the date on your bank statement and specify the remittance bank, branch and account for the statement. You can create new batches of cleared transactions, view existing batches of cleared and remitted transactions and add cleared transactions to existing batches. Reconcile Payments You can reconcile accounts payable payments either automatically or manually. Automatic payment reconciliation loads information from a tape or diskette and prints a report of any reconciliation exceptions. Manual payment reconciliation allows you to reconcile either a range of payments or individual payments. Enter Miscellaneous Transactions You can enter and clear non-invoice related transactions such as investment income and expense, interest income and expense, and petty cash receipts and payments. You can also enter a tax name on these transactions if necessary. Reports and Inquiries A variety of reports and inquiry windows are provided to satisfy your reporting and audit trail requirements.
40 Oracle Financials Functional Overview

Calls
Oracle Receivables provides the tools you need to record and follow up on customer communications. You can record customer calls, easily find customer contacts and add new ones. You can also take actions for the subject of the call, all within a single window.

Start Call Customers Record Call and Review Previous Calls

Generate Collection Reports

Generate and Send Dunning Letters Review Account Online

Record a customer call easily with Oracle Receivables

Business Needs
With Oracle Receivables you can:
s

Record information about your customer calls; log call topics, outcomes, and actions Retrieve information about your customers' transaction history, previous calls, invoices, and review additional customer receipts or open invoice information Record or update detailed information about your contacts

Major Features
Specify Customer Information You can quickly review all customer information while you talk to your customer and record the call.

Oracle Receivables

41

Record complete information about your customer calls

Contact Information Record or update detailed information about your contact. Oracle Receivables provides existing contact information and provides the flexibility to enter new contact information if you are speaking to someone for the first time.

42

Oracle Financials Functional Overview

Print Transactions
Oracle Receivables provides a powerful, flexible, and easy-to-use tool to print all types of transactions to help you improve productivity, increase control, and save money. You can control the types of transactions you want to print, reprint transactions and print just those transactions which have not been previously printed.

Preview

Invoice Print Preview Report Print

Transaction Batch

Range of Transactions

Transaction not Already Printed

Send

Customer

Oracle Receivables lets you preview, print, and send your transactions

Business Needs
With Oracle Receivables you can:
s

Print invoices, debit memos, credit memos, on-account credits, commitments, adjustments and chargebacks quickly and easily Generate specific transactions based on the criteria you supply for your report parameters Continue working while printing

Oracle Receivables

43

Major Features
Invoices and Debit Memos Oracle Receivables lets you print invoices and debit memos to your specifications. You can choose to print your invoices by customer class. Ensure that all of the dollar amounts are printed in the dynamic currency and include the customer and your VAT numbers on the transaction. The total amount of the invoice including tax and shipping will be displayed in the body of the invoice. For invoices with multiple installments, Oracle Receivables prints each installment when it is due on a separate sheet. On-Account Credits Oracle Receivables lets you print your on-account credits to notify your customers and keep accurate accounting records. Chargebacks Oracle Receivables allows you to keep your receivables balances current by allowing you to create and print chargebacks for your customers during payment application. Guarantees Oracle Receivables prints a message in the body of the guarantee explaining that this is not a request for payment. Tax Oracle Receivables allows you to print tax the way you want on your transactions. You can print a tax line for each item line, sum taxes, group tax by tax name, print just a total tax or do various combinations of these. Dunning Letters When you print your Dunning Letters in Oracle Receivables, you can print a copy of the invoice that contains the line items that are past due.

44

Oracle Financials Functional Overview

Statements
Oracle Receivables Print Statements program allows you to communicate invoice, debit memo, chargeback, commitment, receipt, on-account credit, credit memo, and adjustment activity to your customers. No matter how many statements you need to send, Oracle Receivables handles them all. You can define as many statement cycles as you want, choosing dates and intervals that meet your own business needs. Oracle Receivables increases the efficiency of your collectors by letting them focus on one group of customers. Use Oracle Receivables statement agings to categorize a customer's statement into aging buckets. By defining aging buckets that fit your business needs, your customers can see how much of their statement is overdue and by how many days. You can produce statements that differentiate between bill-to sites for a customer's outstanding items. Each of these bill-to site statements include transactions that are specific to that site. Or, you can generate one consolidated statement which displays information for all your customer's business purposes.

Business Needs
With Oracle Receivables you can:
s

Display transaction activity for your customers from their last statement date to the current statement date Consolidate statements for all of a customer's bill-to sites into a single statement, or produce statements for each of a customer's bill-to sites Report receipts that you have applied across customer sites and customers on the statement of the customer site that owns the statement using a statement site Produce statements that show credit balances and charge finance charges on past due items Print draft statements between statement dates for customers who want an itemized list of charges

Major Features
Receipt Bill-To Sites All Oracle Receivables receipt entry windows allow you to specify a customer location on your receipt. If you specify a location on your receipt, Oracle Receivables prints this location on your statement.

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45

On-Account and Unapplied Receipts If there are on-account or unapplied receipts which are not associated with a specific customer location, Oracle Receivables summarizes these receipts as credits on consolidated statements you produce using a statement site. Oracle Receivables prints these receipts on a separate page of a customer's consolidated statement after a summarized listing of subtotals for each of this customer's bill-to sites. Statement Cycles Use statement cycles to determine when you want to send statements to your customers. You assign these cycles to your customer and site level profiles. Oracle Receivables allows you to generate statements for all customers associated with a specific statement cycle. Credit Profiles Oracle Receivables allows you to define credit profiles for a customer and each of this customer's bill-to locations. The profiles allow you to specify a statement cycle, whether you want to send statements, a minimum statement amount by currency, and whether you want to send credit statements. Use credit profile information at the business purpose level. For example, if you want to generate statements for each business purpose, you might want to specify different minimum and maximum statement amount ranges. Statement Submission Oracle Receivables provides three options when you submit your statements: Print Statements, Print A Draft Statement, and Reprint Statements. Use the Print A Draft Statement option to print a draft statement for a customer or site to review before sending it to this customer. When you select Print Statements as your statement submission option, you can create statements for either a specific customer or customer site, or all of the customers and customer locations that have the statement cycle that you specify in their credit profiles. The Reprint Statements option allows you to reprint any of the statements that you previously printed.

46

Oracle Financials Functional Overview

Dunning Letters
Oracle Receivables Dunning Letter program allows you to create and send customized letters to your customers who have overdue debit items. You can control the severity and content of each dunning letter that you send, and can exclude individual customers from dunning even if they have items that are past due. You can include disputed items, on-account and unapplied receipts, and finance charges in your dunning letters, as well as debit items that are not yet due. You can also choose to use receipt grace days to extend the due dates of a customer's past due items. Oracle Receivables provides a default dunning letter set entitled STANDARD which has three dunning letters of increasing severity, along with ten dunning letters which you can easily customize to suit your dunning needs.

Business Needs
With Oracle Receivables you can:
s

Send letters to your customers regarding debit items invoices, debit memos, chargebacks, credit memos, and unapplied and on-account receipts that are past due Customize the contents and severity of these letters according to the customer and how long they are overdue Define sequences of dunning letters which increase in severity Assess finance charges on past due items

Major Features
Customer and Site Level Profiles Oracle Receivables allows you to define customer profile information at both the customer and site level. Specify whether a customer or customer site should be dunned, the dunning letter set that should be used, and the minimum dunning amounts and minimum dunning invoice amounts required for each currency of this customer's or customer site's past due items. Dunning Letter Formatting Oracle Receivables allows you to customize the order and format of your dunning letter text using body and footer text files that the application provides for each dunning letter. Exclude Items from Dunning Oracle Receivables automatically excludes automatic receipts and the outstanding debit items that they include from your dunning submissions. You can also manually exclude a debit item from your dunning letters when you record a collections call for this item.

Oracle Receivables

47

Dunning Letter Sets Oracle Receivables allows you to define sets of dunning letters in which each dunning letter has specific days past due date range assignments. For each dunning letter set you can specify whether you want to include grace days in determining the customers and customer sites that are selected for your dunning submissions. These dunning letter sets also allow you to specify whether you want to include on-account and unapplied receipts on your dunning letters, assess finance charges, assess finance charges on items that are currently in dispute, include items that are not yet due, and print copies of items that are past due. You can assign different dunning letter sets to your customers and customer sites.

Oracle Receivables lets you group your dunning letters into sets

48

Oracle Financials Functional Overview

Finance Charges
Use Oracle Receivables' statement or dunning letter programs to calculate finance charges for your customers' past due items. You can specify different interest rates and finance charge limits for each currency when you define your customers' profile classes. Oracle Receivables also lets you determine whether you want to accrue finance charges or include disputed items when calculating finance charges.

Business Needs
With Oracle Receivables you can:
s

Calculate and assess finance charges for your customers' past due items Display finance charges on your customers' statements and dunning letters Accrue finance charges Adjust finance charge calculations based on receipt grace days

Major Features
Assign Finance Charge Limits and Interest Rates by Currency For each currency you define for your customer's profile class you can determine the interest rate, maximum interest charge for each invoice, and the minimum customer and invoice balance that must be exceeded before finance charges are calculated. These values along with your customer's past due balance determine the amount of finance charges. Display Finance Charges on Statements and Dunning Letters Oracle Receivables displays finance charges on your statements and dunning letters to inform your customers of additional charges incurred for past due debit items. Accrue Finance Charges You can decide whether you always expect to collect finance charges or to collect them if your customers pay them. If you want to collect finance charges from your customers, set up Oracle Receivables to accrue interest for past due items. Accrued interest updates the amount due remaining for the past due debit item. Compound Finance Charges Oracle Receivables lets you compound finance charges since the last time finance charges were calculated.

Oracle Receivables

49

Journal Entries
Oracle Receivables supports two methods of accounting: Cash Basis and Accrual. Cash Basis accounting recognizes revenue and expense when cash is actually hit. Accrual method of accounting recognizes revenue when it is earned and expenses when they are incurred. Oracle Receivables enables you to easily post credit and debit items from your accounts receivables sub-ledger to your general ledger for both accounting methods. In addition, Oracle Receivables provides a variety of reports that help you review your posted batches of transaction records in either detail or in summary.

Accounts Receivable Balance Accounts Receivable

Transfer Transactions

General Ledger Create and Post Journal Entries

Account Balances

Online Inquiry

Report

Adjust Convert Revalue Translate Consolidate

Create journal entries using either cash basis or accrual basis accounting

Business Needs
With Oracle Receivables you can:
s

Open and close accounting periods Create all accounting entries automatically Recognize revenue from the sale of goods when the invoice is created Recognize revenue from the sale of goods when the payment is received from the customer and not when an invoice is created Transfer your receivables transactions to your general ledger and create journal batches

50

Oracle Financials Functional Overview

Major Features
Opening and Closing Accounting Periods With Oracle Receivables, you can open and close accounting periods to control how and when you record accounting information for these periods. You can also open future accounting periods if you want to enter your receivables transactions in a period that is not open yet. Cash Basis Accounting If you choose cash basis as your method of accounting, but actually sell goods to customers on credit, Oracle Receivables provides a system to keep track of your receivables without affecting your financial accounts. An accounting entry is created only when cash is actually received. The account credited is the revenue account. The intermediate receivables account is never hit in cash basis accounting. The net effect remains the same as with accrual accounting, i.e. when a transaction is closed, cash is debited and revenue is credited. Detail or Summary Posting Oracle Receivables lets you quickly transfer all of your receivables transactions to your general ledger and create either detailed or summarized journal batches. You can transfer your transactions as often as you like within an accounting period.

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51

Reconciliation
Oracle Receivables provides a comprehensive set of reports to reconcile your outstanding customer balances, transactions, receipts and account balances. Outstanding customer balances at the beginning of any period can be reconciled with the ending balances for that period, by generating various reports to show the activity against that customer during the period.

Business Needs
With Oracle Receivables you can:
s

Internally reconcile the transactions entered in Oracle Receivables Use reports to research transactions and receipts for a given period and the different accounts affected by them

Major Features
Reconcile Internally and Externally Oracle Receivables provides the tools to reconcile your sub-ledger before you post to your general ledger. Internal reconciliation involves reconciling your customer accounts, transactions and receipts. You can then post to your general ledger to extract details from your Oracle Receivables system and create journal entries in your general ledger. Once you have posted to the general ledger, you can reconcile your sub-ledger with your general ledger by verifying that all the correct journal entries were made. Multi-Company Capability All of the Oracle Receivables reconciliation reports have a multi-company capability enabling you to submit them for all companies or for a specific company. In addition, Oracle Receivables provides reports which you can use to track transactions between companies. Agings Oracle Receivables provides agings by account, amount, collector, customer, transaction and salesperson, so that you have access to the most clear and accurate gauge of your customers' account balances. Reporting Options Oracle Receivables enables you to retrieve the exact reconciliation information you require by providing a wide range of parameters, ordering and grouping options, and summary and detail report layouts in its suite of reconciliation reports.

52

Oracle Financials Functional Overview

Document Sequences
Document sequence numbers are unique numbers which you can assign to transactions you create in Oracle Receivables. Assigning unique numbers to transactions allows you to account for every transaction you enter.

Business Needs
With Oracle Receivables you can:
s

Ensure that no transactions have been lost or not posted by assigning unique numbers to each transaction Generate audit data with document sequences so even if documents are deleted, their audit record remains Maintain an audit trail from the general ledger into the subsidiary ledger using document sequences, and to the document that originally affected the account balance

Major Features
Automatic and Manual Sequences Automatic sequences enable you to create an audit trail of unique, sequential document numbers without any data entry. Manual sequences enable you to decide which document numbers you wish to assign to transactions at the time of data entry, whilst always ensuring that your numbers are unique. Assign Sequences to Every Transaction Unique, sequential document numbers can be assigned to imported, automatically generated and manually entered transactions. You can assign different sequences to every transaction type, payment method and adjustment and finance charge activity you use. Partial Sequencing You can choose to enter document numbers for every transaction or for selected categories of transactions and can make these manual or automatic.

Oracle Receivables

53

Purge
Oracle Receivables provides a powerful and easy-to-use archive and purge feature to help you manage your accounts receivable data. You can use purge to remove historical records including receipts, invoices, credit/debit memos, chargebacks, adjustments, and commitments. These can be copied onto tape or any other storage device, then deleted from your system. This will release disk space for current data. If you later need these records online, you can reload them into Oracle Receivables.

Business Needs
With Oracle Receivables you can:
s

Archive historical records onto tape or any storage device Purge the records from your system after you have copied them and keep an audit trail Restore archived records back into Oracle Receivables if necessary

54

Oracle Financials Functional Overview

Inquiries
Oracle Receivables provides powerful and easy-to-use tools to access data online.

Business Needs
With Oracle Receivables you can:
s

Review customer debit items quickly and easily Review online customer and invoice information easily and flexibly View the total of all open invoices for any customer Review any invoice online, including information such as terms, salesperson, and even invoice line details Review online a history of all activity related to a particular invoice, debit memo, or chargeback including payments, credit memos, and adjustments

Major Features
Online Customer Audit Trail Oracle Receivables provides a complete picture of each customer's account online by giving you an online customer audit trail. Along with all the online information about customer locations, contacts, addresses, and telephone numbers, you can review a list of all customer open invoices and historical information about each invoice. Online Transaction Overview Access your most detailed information with an online view of all the details of a customer invoice, debit memo, chargeback, credit memo, or on-account credit. Online Receipt Inquiry You can review receipt batch control and unapplied amounts or review a detailed history of all receipts in a batch. Online Transaction History Oracle Receivables enables you to answer all of your customers' questions with an online list of all the activity relating to a particular transaction. Online Customer Account Inquiry You can review a customer's account including balances in both functional and entered currency.

Oracle Receivables

55