Oracle R12 Setup Check List Check List

Accounting Setup Manager Checklist

The following table describes the steps to create accounting setups using Accounting Setup Manager. Each required
setup step must be completed before you can complete your accounting setup.

Accounting Setup Manager Checklist

Step
Number Required Step
Step 1 Optional Define Legal Entities
If you plan to record accounting transactions for one or more legal entities, you can use
the Legal Entities tab in Accounting Setup Manager or Oracle Legal Entity Configurator
to define your legal entities.
Note: If you plan to use jurisdictions that do not come seeded, you can define your own
jurisdictions using Legal Entity Configurator before you define legal entities. A
jurisdiction is the intersection of the physical territory and type of legislation within
which judicial authority may be exercised. The jurisdiction is used to assign a territory
to a legal entity.
 Overview, Oracle Financials Implementation Guide
 Legal Entities Overview
Step 2 Required Create Accounting Setup Structure
1. Assign Legal Entities.
2. Define accounting representations.
o Specify the ledger attributes for the primary ledger.
o Optionally specify the ledger attributes for one or more secondary
ledgers.
o Optionally assign one or more reporting currencies.
3. Save accounting structure.
Review setup structure before saving.

Repeat this step for each accounting setup.

Note: Creating Accounting Setup Structures
Step 3 Required Complete ledger options.
Define and update journal and transaction processing options for the ledger.
If a secondary ledger is assigned, complete the ledger options for the primary ledger
before completing the ledger options for the secondary ledger.
Repeat this step for all ledgers in an accounting setup.
Note: Ledger Options
Step 4 Conditionally Complete reporting currencies.
Required If reporting currencies are assigned to the accounting setup when creating the
accounting setup structure, it is required to complete the currency conversion options
for each reporting currency.
Assign reporting currencies to the primary or secondary ledger at any time.
Repeat this step for each reporting currency assigned.
Note: Reporting Currencies
Step 5 Optional Assign balancing segment values to legal entities.
If you did not assign balancing segment values to legal entities when you created them,
you can assign them now. It is strongly recommended that you assign specific balancing
segment values to each legal entity to help identify legal entities during transaction
processing and reporting.
Note: See Balancing Segment Value Assignments
Oracle R12 Setup Check List Check List

Step 6 Optional Assign balancing segment values to ledger.

If you assigned balancing segment values to legal entities and want to reserve one or
more balancing segment values for adjustments or nonlegal entity related transactions,
assign specific balancing segment values to the ledger.
For the accounting setup with no legal entity assigned, assign balancing segment values
to the ledger to indicate which values are to be used for journal processing in the ledger.
If balancing segment values are not assigned to the ledger, then all values will be
available.
Repeat this step for each ledger.
Note: Ledger Balancing Segment Value Assignments
Step 7 Conditionally Define Subledger Accounting options.
Required If a Subledger Accounting Method is assigned to the ledger, complete the Subledger
Accounting options to provide instructions on how to create the accounting from Oracle
financial subledgers or external systems to one or more ledgers in General Ledger.
Repeat this step for each ledger that has a subledger accounting method assigned.
Note: Subledger Accounting Options
Step 8 Optional Define operating units. If using an accounting setup that has legal entities assigned,
define operating units for your primary ledger.
Note: Operating Units
Step 9 Optional Define intercompany accounts.
If the accounting setup has legal entities with specific balancing segment values
assigned, define intercompany accounts. Intercompany accounts account for
intercompany transactions between legal entities.
Note: Intercompany Accounts
Step 10 Conditionally Define intracompany balancing rules.
Required If the Intracompany Balancing option for the ledger is enabled, define Intracompany
Balancing rules to provide instructions on how to balance journal entries between
balancing segment values for the same legal entity or ledger.
Repeat this step for each ledger that has this option enabled.
Note: Intracompany Balancing Rules
Step 11 Optional Define Sequencing. Define accounting and reporting sequencing options for ledgers and
reporting currencies. Repeat this step for each ledger.
Note: Defining Sequences, Oracle Financials Implementation Guide
Step 12 Conditionally Complete primary to secondary ledger mapping.
Required If using secondary ledgers, specify how to convert subledger journals, General Ledger
journals, or balances from the primary ledger to the secondary ledger. For example, if
the secondary ledger uses a different chart of accounts and currency from the primary
ledger, assign a chart of accounts mapping and currency conversion rules.
Perform this step once for each secondary ledger that is assigned to an accounting setup.
Note: Primary to Secondary Ledger Mapping
Step 13 Required Complete the Accounting Setup
After all required setup steps for both the primary and secondary ledgers of an
accounting setup are completed, complete the accounting setup by
clicking Complete on the Accounting Options page. This button is enabled after all
required setup steps have a Complete status.
Review the successful completion of the General Ledger Accounting Setup Program in
the Concurrent Manager before proceeding.
Perform this step once for each accounting setup.
Note: Completing Accounting Setup
Oracle R12 Setup Check List Check List

Step 14 Optional Perform additional General Ledger setup steps.

Take advantage of additional General Ledger features, such as ledger sets and data
access sets, to improve processing efficiency and add additional security to secure access
to ledgers.
 Introduction, Additional General Ledger Setup
 General Ledger Setup Flowchart, Oracle General Ledger User Guide
Step 15 Required Assign profile options to responsibilities.
To control access to ledgers used by General Ledger users, assign a data access set to the
profile option GL: Data Access Set for each General Ledger responsibility.
If using subledgers, you should also set the SLA: Enable Data Access Security in
Subledgers profile option to control the generation of accounting entries for subledger
transactions. This profile option determines whether the General Ledger Data Access
Set security mechanism is applied for a subledger application responsibility when
viewing, reporting, or creating subledger journal entries associated with a given ledger.
The General Ledger Data Access Set security mechanism is always applied for
responsibilities associated with the General Ledger application. The profile option
enables you to combine data access security with subledger transaction security and
therefore control access to subledger journal entries depending on the ledger to which
they belong. For example, you can implement a Multiple Organizations Security Profile
that allows you to create Oracle Receivables invoices for two different operating units,
each associated with different ledgers, but restrict drill-down from the subledger
transaction to the associated subledger journal entry based upon the destination ledger
contained in the Access Set.
If you skip this step, you cannot control access to ledgers and process data optimally in
Oracle subledgers and General Ledger.
 Setting General Ledger Profile Options, Oracle General Ledger User Guide
 Overview of Setting User Profiles, Oracle Applications System Administrator's
Guide
 Setting User Profile Options, Oracle Applications System Administrator's Guide
Oracle R12 Setup Check List Check List

Setup Checklist
The following table provides a more detailed list of Oracle General Ledger setup steps, the Applications area to which
each step relates, and whether the step is optional or required. After you log on to Oracle Applications, complete
these steps to implement Oracle General Ledger:
Step
No. Required Step Reference
Step Required Define your chart of accounts. See: Defining Your Chart of Accounts. Common
1 Applications
Step Optional Define Cross-Validation Rules to prevent certain account combinations from Common
2 being created. Applications
Step Optional Define a chart of accounts mapping to map two or more charts of accounts. The Common
3 chart of accounts mapping is used by Accounting Setup Manager to complete Applications
the setup steps for secondary ledgers, and it is used by the Global Consolidation
System (GCS) to consolidate data between ledgers.
Step Optional Define Your Descriptive Flexfields Common
4 See: Defining Descriptive Flexfields for General Ledger Applications
Step Optional If you want to use period types not installed with General Ledger, define your Common
5 accounting period types. Applications
See: Period Types
Step Required Define your accounting calendar. Review the Calendar Validation report to note Common
6 common setup errors. Applications
See: Defining Calendars
Step Optional If you plan to use average balance processing, define a transaction calendar and Common
7 valid business days for that calendar. Applications
The transaction calendar ensures that journals created in Oracle General Ledger
and Oracle Subledger Accounting (SLA), if used, will be posted on valid
business days.
See: Defining Transaction Calendars
Step Required Define the currency for your ledger. Also define or enable any reporting Common
8 currencies you plan to use. Applications
See: Oracle General Ledger User's Guide Defining Currencies, Oracle General
Ledger User's Guide
Step Optional Define conversion rate types and conversion rates, such as daily rates and Common
9 historical rates. Financials
See: Overview of Multi–Currency Accounting, Oracle General Ledger User's Guide
Step Optional Define additional journal entry sources. If you have enabled average balance Oracle General
10 processing, specify an Effective Date Rule for each journal source you define. Ledger
See: Journal Sources
Step Optional Define additional journal categories. Oracle General
11 See: Journal Categories Ledger
Step Optional Define Journal Reversal criteria. See: Automatic Journal Reversal Oracle General
12 Overview, Oracle General Ledger User's Guide Ledger
Step Required Define an accounting setup using Accounting Setup Manager to combine legal Oracle General
13 entities, ledgers, reporting currencies, subledger accounting methods, and other Ledger
setup information.
Before you can enter transactions and journal entries to ledgers, you must
complete the ledger options for all ledgers assigned to an accounting setup and
Oracle R12 Setup Check List Check List

the accounting setup status must be complete.

See: Creating Accounting Setups Oracle Financials Implementation Guide
Define additional journal entry sources and categories. If you have enabled
average balance processing, specify an Effective Date Rule for each journal
source you define. See: Journal Sourcesand Journal Categories.
Step Optional Define Ledger Sets to group ledgers that share the same chart of accounts and Oracle General
14 accounting calendar/period type combination to take advantage of processing Ledger
efficiencies, such as opening and closing periods across ledgers in a ledger set.
Step Optional Define data access sets to secure read and write access to ledgers, balancing Public Sector
15 segment values, and management segment values for one or more ledgers. Applications
See: Data Access Sets
Step Required Assign a ledger to the profile option GL Ledger Name for each Oracle subledger. Oracle General
16 This profile option controls the ledger chart of accounts that each subledger will Ledger
use for transaction processing.
Step Required Assign a data access set to the profile option GL: Data Access Set for each Oracle General
17 General Ledger responsibility. Ledger
See: Data Access Sets
See: Setting General Ledger Profile Options, Oracle General Ledger Reference Guide
Step Optional Define Definition Access Sets and assign them to responsibilities. Once you Oracle General
18 begin securing your definitions, you can assign the Definition Access Sets Ledger
assigned to your responsibilities.
See: Definition Access Sets
Step Optional Define account combinations that can be used for data entry if you did not Oracle General
19 enable Dynamic Insertion for your chart of accounts structure. Ledger
See: Defining Accounts
Step Optional Define and assign document sequences. Oracle General
20 See: Defining Document Sequences Ledger
Step Optional Define Your Employees. (Oracle Human Resources Management System User’s Oracle General
21 Guide) Ledger
See: Entering a New Employee
Step Optional Setup Journal Approval. Oracle General
22 See: Setting Up Journal Approval Ledger
Step Optional Define one or more of the following optional accounts: Oracle General
23 1. Suspense accounts. See: Suspense Accounts Ledger
2. Statistical Units of Measure.

See: Defining Statistical Units of Measure

Step Required Define transaction codes if you use Public Sector General Ledger. Oracle General
24 See: Setting Up Transaction Codes Ledger
Step Optional Create summary accounts. Oracle General
25 See: Defining Summary Accounts Ledger
Step Optional Set up Automatic Tax Calculation if you do not have Oracle Receivables and Oracle General
26 Oracle Payables installed. Ledger
See: Setting Up Automatic Tax Calculation
Step Optional Define your automatic posting criteria. Oracle General
27 See: Posting Journal Batches Automatically, Oracle General Ledger User's Guide Ledger
Oracle R12 Setup Check List Check List

Step Optional Define encumbrance types. Oracle General

28 See: Defining Encumbrance Types, Oracle General Ledger User's Guide Ledger
Step Optional Set up Budgets. Oracle General
29 See: Defining Budgets, Oracle General Ledger User's Guide Ledger
Step Optional If you enabled budgetary control, define one or more budgetary control groups.
30 See: Creating a Budgetary Control Group, Oracle General Ledger User's Guide
Step Optional Define Security Rules.
31 See: Defining Security Rules
Step Required Set your General Ledger profile options.
32 See: Setting General Ledger Profile Options, Oracle General Ledger Reference Guide
Step Required Open an accounting period.
33 See: Opening and Closing Accounting Periods
Step Optional Set up the Global Consolidation System (GCS).
34 See: Global Consolidation System, Oracle General Ledger User's Guide
Oracle R12 Setup Check List Check List

WHAT ARE THE MANDATORY SETUPS FOR PAYABLES

Mandatory setups for Payables :

The following are the mandatory setups for payables.

1. Define Financial Options.

2. Define Payment terms.
3. Define Payment Methods.
4. Define Payment Formate.
5. Define Pay Group.
6. Define Supplier.
7. Define Banks.
8. Define Distribution Sets (Optional).

1. Define Financial Options.

Use the Financials Options window to define the options and defaults that you use for your Oracle Financial
Application(s). Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets.
You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice
entry, and automatic payments. Depending on your application, you may not be required to enter all fields.
Although you only need to define these options and defaults once, you can update them at any time. If you change an
option and it is used as a default value elsewhere in the system, it will only be used as a default for subsequent
transactions. For example, if you change the Payment Terms from Immediate to Net 30, Net 30 will be used as a
default for any new suppliers you enter, but the change will not affect the Payment Terms of existing suppliers.

Navigation: Payables --> Setup --> Options --> Financial.

Click on New button.

Accounting Tab:
Oracle R12 Setup Check List Check List

You are required to enter defaults for the Accounting Financials Options in the Accounting region.

Accounts Like:
Liability, Prepayment, Discount Taken.
Oracle R12 Setup Check List Check List

Human Resources Tab:

If you do not have Oracle Human Resources installed, you are not required to enter defaults in the Human Resources
Oracle R12 Setup Check List Check List

region.

2. Define Payment terms.

We define payment terms that you can assign to an invoice to automatically create scheduled payments when you
submit Payables Invoice Validation for the invoice. You can define payment terms to create multiple scheduled
payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.

Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment
terms line and each corresponding scheduled payment has a due date or a discount date based on one of the
following:
 a specific day of a month, such as the 15th of the month
 a specific date, for example, March 15, 2002
 a number of days added to your terms date, such as 14 days after the terms date
 a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can
be based on a special calendar. Discount dates cannot be based on a special calendar.
Each payment terms line also defines the due or discount amount on a scheduled payment. When you define
payment terms, you specify payment amounts either by percentages or by fixed amounts.

Navigation: Payables --> Setup --> Invoice --> Payment terms.

To define payment terms

1. In the Payment Terms window, enter a unique payment term Name and a Description. These will appear on a
list of values whenever you select payment terms.
2. If you enter Day of Month terms, enter a Cut-off Day.
3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a unique value in the
Rank field.
Oracle R12 Setup Check List Check List

4. If you want to make this payment term invalid on and after a certain date, enter that date in the To field of the
Effective Dates region.
5. Enter each payment terms line.
Enter one of the following to determine the portion of an invoice due on the scheduled payment:
o % Due
o Amount
In the Due tab, enter one of the following to determine the due date on the scheduled payment line:
o Calendar
o Fixed Date
o Days
o Day of Month, and Months Ahead
6. If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third
Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so
on. You can realize only one discount on a payment terms line.
Note: You cannot use a special calendar to define discount terms.
Enter one of the following to determine the portion of the invoice to discount on the scheduled payment:
o % Discount
o Amount
In the Discount tabs, enter the discount percent.
Enter one of the following to determine the due date on the scheduled payment line:
o Due Days
o Day of Month, and Months Ahead

Save.

3. Define Payment Method:

A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a
payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers.
Oracle Payments supports several payment methods for funds disbursement, including the following:
Oracle R12 Setup Check List Check List

 Check
 Electronic
 wire
 Clearing
Check:

You can pay with a manual payment, a Quick payment, or in a payment batch.

Electornic:
Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e-
Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file
during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI
translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers,
the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire:
Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment
method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and
credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information,
and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of
the payment. You then record the transaction manually.

Clearing:
Clearing Payment for invoices transferred from another entity within the company without creating a payment
document.Payment method you use to account for intercompany expenses when you do not actually disburse funds
through banks. You do not generate a payment document with the Clearing payment method. When you enter the
invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type
payment only.

Navigation: Payables --> Setup --> Payment --> Payment Administrator.

Click on Go To Task.

Click on Create button.

Oracle R12 Setup Check List Check List

Enter the Payment Method name and code and then click on Next.

Select the respective responsibilities which we want shown this payment method in these responsibilities.

Click on Next, Next, Finsh.

Oracle R12 Setup Check List Check List
Oracle R12 Setup Check List Check List

End to End Configuration of AR in R12

There are few key steps that are to be configured outside of AR
1. Define Ledger with LE
2. Define Operating Unit and link to Ledger and LE
3. Define atleast one Inventory Item Organization
4. Define Item Validation Organization in Order Management – We can share this menu, if we don’t implement OM
5. Define Tax in EB Tax.
6. Define banks, branches and accounts – Possible to configure through AR, if security is enabled through UMX
security wizard
7. Define or Assign key profile option values to AR responsibilities

Define all the following setup using Receivables Manager responsibility:

Define System Option

Define system options to customize your Receivables environment. During Receivables setup, you specify your
accounts, customer and invoice parameters, and how the Auto Invoice and Automatic Receipts programs will run.
Setup>System>System Option

Define system option for each Operating Unit.

Define Payment Terms
Receivables lets you define standard payment terms for your customers to specify the due date and discount date for
their open items. Payment terms can include a discount percent for early payment and you can assign multiple
discounts to each payment term line. For example, the payment term '2% 10, Net 30' indicates that a customer is
allowed a two percent discount if payment is received within 10 days; after 10 days, the entire balance is due within
30 days of the transaction date with no applicable discount.
Setup>Transaction>Payment Term
Oracle R12 Setup Check List Check List

Define Transaction Type

Use transaction types to define the accounting for the debit memos, credit memos, on-account credits, chargebacks,
commitments, invoices, and bills receivable you create in Receivables. Transaction types also determine whether your
transaction entries update your customers' balances and whether Receivables posts these transactions to your general
ledger.
Setup>Transaction>Transaction Type
Define this for each operating unit. Define transaction type for atleast Invoi

ce,
Deposit,
Oracle R12 Setup Check List Check List

Credit Memo and Debit Memo transaction classes.

Define Transaction Source
Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables
automatically numbers your transactions and transaction batches. Active transaction batch sources appear as list of
values choices in the Transactions, Transactions Summary, and Credit Transactions windows, and for bills receivable
in the Bills Receivable and Bills Receivable Transaction Batches windows.
Setup>Transaction>Source

Define this for each operating unit. Select Type as ‘Imported’, if invoice is to be imported into AR from third
party/legacy/external systems.
Define Memo Lines
Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for example,
'Consulting Services'). You can assign memo lines to debit memos, on-account credits, debit memo reversals,
chargebacks, commitments, and invoices. Receivables display your standard memo lines as list of values choices
during credit memo entry in the Credit Transactions window and during invoice entry in the Lines window. When
you create chargebacks and debit memo reversals, you can either use the standard line that Receivables provides or
enter your own. You can create an unlimited number of standard memo lines.
Setup>Transaction>Memo Lines
Oracle R12 Setup Check List Check List

Define this for each operating unit. This is particularly important, if we implement AGIS.
Define Accounting Rules
Define accounting rules to create revenue recognition schedules for your invoices. Accounting rules determine the
number of periods and percentage of total revenue to record in each accounting period. You can use accounting rules
with transactions that you import into Receivables using Auto Invoice and with invoices that you create manually in
the Transaction windows. You can define an unlimited number of accounting rules.
This is generally applicable to project based invoices, property invoices etc.
Setup>Transaction>Accounting Rules
Oracle R12 Setup Check List Check List

Define Auto Accounting

Define Auto Accounting to specify how you want Receivables to determine the default general ledger accounts for
transactions that you enter manually or import using Auto Invoice. Receivables creates default accounts for revenue,
receivable, freight, tax, unearned revenue, unbilled receivable, late charges, bills receivables accounts, and Auto
Invoice clearing (suspense) accounts using this information.
Setup>Transaction>Auto Accounting

Define this for each operating Unit. Define this atleast for revenue, receivable, freight, tax, unearned revenue, unbilled
receivable, bills receivables accounts, and Auto Invoice clearing.
Tax code will default from EB Tax, which can be updated/modified here in this auto accounting window.
Define Approval Limit
Use the Approval Limits window to define approval limits for Adjustments, Receipt Written off, Credit memo refund
and Credit memo
Setup>Transaction>Approval Limit
Oracle R12 Setup Check List Check List

Define this for each user.

Define Receivables Activities
Define receivables activities to default accounting information for certain activities, such as miscellaneous cash,
discounts, late charges, adjustments, and receipt write-off applications.
Setup>Receipts>Receivables Activities

Define this for each operating unit. This can be configured only after EB Tax configuration.
Define Auto Cash Rule set - Optional configuration
Define Auto Cash Rule Sets to determine the sequence of Auto Cash Rules that Post Quick Cash uses to update your
customer's account balances. You specify the sequence and the Auto Cash Rules for each Auto Cash Rule Set. The
Auto Cash Rule Sets you define display as list of values choices in the Customers, Customer Addresses, Customer
Oracle R12 Setup Check List Check List

Profile Classes, and the System Options windows. Post Quick Cash first checks the customer site, then the customer
profile class, and finally at the system options level to determine the Auto Cash Rule Set to use.
Setup>Receipts>Auto Cash Rule Set

Define Application Rule Set – We can use seeded configuration

Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets
specify the default payment steps for your receipt applications and how discounts affect the open balance for each
type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the
balance due for a transaction's line, tax, freight, and late charges.
Setup>Receipt>Application Rule Set

Define Receipt Classes

Define receipt classes to determine the required processing steps for receipts to which you assign receipt methods
with this class. These steps include confirmation, remittance, and reconciliation. You can specify any combination of
Oracle R12 Setup Check List Check List

these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for
all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of
Cleared.
Setup>Receipt>Receipt Classes

Define this for each operating unit. Only header window is not OU based but bank accounts window are OU specific.
This requires some experience to use this configuration. Basic configuration is simple but it is key configuration to
handle various receipts like Credit Card integration, Auto lock box, Bill of Exchange, and Factoring. This requires
very good practice and knowledge on Function Capturing Process as well.

Define Receipt Sources

Define receipt batch sources to provide default values for the receipt class, receipt method, and remittance bank
account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt
batch sources can use either automatic or manual batch numbering.
Setup>Receipt>Receipt Sources
Oracle R12 Setup Check List Check List

Define this for each operating unit. This is for grouping of receipt class, payment method and bank account.
Define Collector
Receivables let you define collectors and assign them to a profile class, or directly to a customer account or site. When
you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile
class. You can modify collector assignments for your customers in the Customers pages, and for your profile classes
in the Customer Profile Classes window.
Setup>Collections>Collector

Employee needs to be configured and Collector setup is to be done in CRM.

Define Aging bucket
Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket
Aging bucket that Receivables provides consists of four periods: -999 to 0 days current, 1 to 30 days past due, 31-61
days past due, and 61-91 days past due. When you create your Collections reports, you can specify an aging bucket
and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due
period.
Setup>Collection>Aging Buckets and Interest Tiers
Oracle R12 Setup Check List Check List

Define Statement Cycles

Define statement cycles to determine when to send statements to your customers. You enter statement cycles when
you define or modify individual customer and site profile classes in the Customer Profile Classes window.
Setup>Print>Statement Cycles

Define this for each operating unit. Customer statement will use this cycle.
Define standard message – Optional
Oracle R12 Setup Check List Check List

Define standard messages to provide the text that Receivables prints on the bottom of your customer's statements,
debit memos, and interest invoices. You can use messages to inform your customers of special promotions or to make
your printed documents more personal.
Setup>Print>Standard message

This message can be used in Customer Statement.

Define Profile Class
Use Customer Profiles to group customer accounts with similar creditworthiness, business volume, payment cycles,
and late charge policies. For each profile class you can define information such as credit limits, payment terms,
statement cycles, invoicing, and discount information. You can also define amount limits for your late charges and
statements for each currency in which you do business.
Customers>Profile Classes
Oracle R12 Setup Check List Check List

This is important for consolidated billing, late charges, profile class based strategy in collections and very important
configuration for business in real time.
Define Customers – Initially customers will be migrated from external/legacy/older version of Oracle EBS.
Define Remit to address
Setup>Print>Remit to address

Open or Close AR accounting period

Open and close accounting periods in your calendar to control the recording of accounting information for these
periods. Receivables lets you open future accounting periods while your current period is still open. Receivables also
lets you reopen previously closed accounting periods and enter receivables activities without transferring
transactions to the general ledger when you set your accounting periods to 'Future.'
Oracle R12 Setup Check List Check List

Control>Accounting>Open or Close periods

**** This is ledger based. Open / Close the period in one OU will Open / Close the period in another OU as long as
bot the OU shares the same Ledger.
Oracle R12 Setup Check List Check List

Setup Steps – Key Flexfields Flexfield: Client defined fields. Clients determines the structure/order of the fields, the
characteristics of the values to be housed, and the list of values users will select. Two types of
Flexfields: 1. Key – required, must be defined by client [data housed in segments on tables] 2. Descriptive – optional,
used to maintain/house additional data that Oracle does not house [data housed in attributes on tables]

Assets has three Key Flexfields:

1. Category Flexfield
2. Location Flexfield
3. Asset Key Flexfield

Setup Steps - Key Flexfields Preformed in the General Ledger Must be defined prior to other subledgers setting up
Can have up to 30 segments, 25 characters each segment

Step 2 - Category Flexfield [Required]:

Only one structure supported Category flexfield serves as the holder of default rules (life, method, prorate &
accounts) for each of your corporate and tax books
One segment must serve as a ‘Major’ segment Usually Tax Driven - Consult tax department when defining Can have
up to 7 segments, 30 characters each segment (recommend 2 or 3 segments)
Combination of segment values plus separators must be 25 characters or less
Once used, unable to change setup

Step 3 - Location Flexfield [Required]:

Purpose: Group assets that have the same physical location
Only one structure supported
Main function is for Property Tax as opposed to a true ‘Asset Tracker’
One segment must serve as ‘State’ segment – used for property tax reporting
Define structure that can be easily maintained
Can have up to 7 segments, 30 characters each segments
Determine if your will allow Dynamic Insertion

Step 4 - Asset Key Flexfield [Required:

Purpose: Group assets without financial impact
Only one structure supported
Group like assets for enhanced reporting Specific to each implementation
No financial impact on the system
If not using, one segment required for setup (Define without validation)
Can have up to 10 segments, 30 characters each segment
Once used, unable to change setup

Step 5 - System Controls [Required]:

Company Name - Select a company name that will appear on all Oracle Assets reports
Oldest Date Placed in Service - Required to enter the date of the oldest asset in your database (NOTE: no assets can
be added prior to this date)
Automatic Asset Numbering - If converting from a legacy system, select a starting number greater than the number of
legacy assets (Alpha-numeric field)

Step 6 – Location Combinations [Required / Optional]:

Required if:
Dynamic insertion not allowed, OR Converting legacy assets via a sql load script into Mass Additions Interface table
Not Required if:
Dynamic insertion is allowed, AND Converting legacy assets via WebADI

Step 9 – Fiscal Years [Required]:

Oracle R12 Setup Check List Check List

Define the fiscal years for your company

Begin Fiscal Years in the year of the oldest date of your asset defined in System Controls
Define the first year, save, then use arrow down to create additional years
Step 10 – Calendars [Required]:
Define the calendars to be used for calculating depreciation
Define the first year, save, then use arrow down to create additional years
Period Name must be 100% equal to the GL Period Name (including case sensitive)
Two-digit year versus Four-digit year naming convention

Step 11 – Journal Entry Source [Optional]:

Oracle has predefined values
Define, if needed, additional values to include in LOV
Used to identify the source of the journal created in GL

Step 12 – Journal Entry Categories [Optional]:

Oracle has predefined values
Define, if needed, additional values to include in LOV
Used to identify the transaction type of the journal created in GL

Step 13 – Book Controls [Required]:

Define required Depreciation Books (Corporate, Tax, or Budget)
Define rules for the depreciation book (Calendar, Accounting Rules, Natural Accounts & Tax Rules)
Define default accounts to be used for retirements (Gain / Loss)

Step 14 – Subledger Accounting (SLA) / Account Generator [Optional]:

Define how Oracle Assets will create account combinations for transactions
Default rules: Balancing Segment – Assignments Accounts – Category, Book, or Assignments
Determine if entries need to be booked at a lower level (i.e. Cost Center)
Account Generator:
Asset Level – depreciation expense
Book Level – gain / loss accounts, intercompany, deferred depreciation
Category Level – asset cost, clearing, accumulated depreciation, CIP accounts
SLA: Modify Journal Lines Definitions (Event Class and Event Type)
Step 15 – Depreciation Methods [Optional]:
Oracle has predefined Methods and Life combinations
Define, if needed, additional Methods and Life combinations
Oracle supports: life-based, flat-rate, and units or production

Step 16 – Depreciation Ceilings [Optional]:

Used to limit an asset’s depreciation
Define, if needed, Cost or Expense ceilings

Step 17 – Investment Tax Credits [Optional]:

Used in the United States for luxury autos purchased prior to 1987
ITC reduce the actual tax amount

Step 18 – Prorate Conventions [Required]:

Define from the date of the oldest asset defined in System Controls
Used to determine Prorate Date
Prorate convention determines the annual depreciation for the first fiscal year
Retirement convention determines the annual depreciation for the retirement year
Step 19 – Price Indexes [Optional]:
Used in Australia
Oracle R12 Setup Check List Check List

Used by the Revalued Asset Retirement Report to determine the revalued asset cost, to use while calculating gains
and losses

Step 20 – Unit of Measure Classes [Optional]:

Define if using Units of Production depreciation methods
Classes group units of measure

Step 21 – Unit of Measure [Optional]:

Define if using Units of Production depreciation methods

Step 22 – Asset Categories [Required]:

Define asset category combinations
Link Asset Categories to Depreciation Books defined in Book Controls
Assign default accounts – to be used by SLA or Account Generator to create journals
Define default depreciation rules – Method, Life, Prorate Conventions