Oracle_Fin-Theo.docx

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ORACLE FINANCIALS Oracle Financials Volume I
ORACLE FINANCIALS
VOL - I
THEORY GUIDE

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Multiple Organizations
• Use a single installation of any Oracle Applications product to support any number of organizations, even if
those organizations use different ledgers
• Support flexible organizational models
• Secure access to data so that users can only access relevant information
• Access one or more operating units using a single responsibility
Major Features
 Multiple Organizations in a Single Installation
 You can define multiple organizations and the relationships among them in a single
 Installation of Oracle Applications. These organizations can be ledgers, business groups,
Legal entities, operating units, or inventory organizations.
 Secure Access
 Data Security
 Inventory Organization Security by Responsibility
 Responsibility Determines Operating Unit
 Receive Goods Into Any Inventory Organization
 Automatic Accounting for Internal Requisitions
Multiple Organizations Reporting
Types of Organizations
1 Business Group
The business group represents the highest level in the organization structure, such as the consolidated
enterprise, a major Branch, or an operation company. The business group secures human resources
information.
For example, when you request a list of employees, you see all employees assigned to the business group of
which your organization is a part.
Multiple ledgers can share the same business group if they share the same business
group attributes, including HR flexfield structures.

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2 LEDGER
 Ledgers takes the place of second level in the multi org structure, only based on which the legal entity
and operating units are going to be decided on. Also remember it is not mandatory for a ledger to have
a Legal entity.
 Only based on the definition of ledger, the multi org structure is designed / finalized.
 Therefore it is very vital to perform the ledger setup keeping in mind that it has a greater
Impact on the multi organization structure to be followed by the client and setup by the Implementation
team.
 Even though Ledgers takes place second level in the above figure, one can say it is the starting point of
Multi org structure, since setting up of a business group or validations / functionalities related to business
group are less complicated when compared to other elements in the Multi org structure.
 In total there are two types of Ledgers available, they are:
 Primary Ledger
 Secondary ledger
 Reporting Currencies (Ledger)
3 Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity
information to this type of organization.
You can define legal entities using Legal Entity Configurator or Accounting Setup Manager in General Ledger.
4 Operating Unit
 An organization that uses Oracle subledgers, such as Oracle Cash Management, Order
Management, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales
office, a Branch, or a department.
 Operating units are not associated with legal entities.
 Operating units are assigned to ledgers and a default legal context.
 Information is secured by operating unit for these applications using responsibilities. Each user can
access, process, and report on data only for the operating units assigned to the MO: Operating Unit
(or) MO: Security Profile option.
 The MO: Operating Unit profile option only provides access to one operating unit.

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 The MO: Security Profile provides access to multiple operating units from a single responsibility.
You can define operating units from the Define Organization window in Oracle HRMS
or from Accounting Setup Manager in General Ledger.
5 Inventory Organization
 An organization for which you track inventory transactions and balances, and/or an
Organization that manufactures or distributes products.
 Examples include manufacturing plants, warehouses, distribution centers, and sales offices.
 The following applications secure information by inventory organization: Oracle
Inventory, Bills of Material, Engineering, Work in Process
 . To run any of these applications, you must choose an organization that has been classified as an
inventory organization.
 You can create ledgers using the Accounting Setup Manager in Oracle General Ledger
and define organizations using the Define Organization window.
HR Organization
 HR organizations represent the basic work structure of any enterprise. They usually represent the
functional management, or reporting groups that exist within a business group.
 In addition to these internal organizations, you can define other organizations for tax and government
reporting purposes, or for third party payments.
Organizations in Oracle Projects
 Oracle Projects allows you to define organization hierarchies to reflect your company's organizations
structure.
 You can add Oracle Projects-specific organization types to the organization hierarchy (for example,
projects organizations or Expenditure organizations) to help you manage your project control
requirements.
 You assign project and expenditure hierarchies to operating units.
Asset Organizations

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 An asset organization is an organization that allows you to perform asset-related activities for a specific
Oracle Assets corporate book.
 Oracle Assets uses only organizations designated as asset organizations
Information Shared Across Organizations
The following information is global. It must be set up once for the enterprise:
• Flexfield definitions
• Customer Header (customer site is at the operating unit level)
• Supplier Header (supplier site is at the operating unit level)
Setup and Implementation Multi-Org
Setting Up a Multiple Organization Enterprise
Steps to implement the Multiple Organization support feature in Oracle Applications.
1. Develop the Organization Structure
2. Define Accounting Setups
3. Assign Balancing Segment Values by Legal Entity (optional),
4. Define Locations,
5. Define Business Groups (optional),
6. Define Organizations,
7. Define Organization Relationships,
8. Define Responsibilities,
9. Associate Responsibilities with Business Groups,
10. Define Security Profile and Multiple Organizations (MO) Profile Options,
11. Verify Order Management System Parameter Settings,
12. Set Application-Specific Profile Options Specific to Operating Units,
13. Define Inventory Organization Security (optional),
14. Implement the Applications Products,
15. Run the Multiple Organizations Setup Validation Report (recommended),
16. Implement Document Sequencing (optional),
17. Set Conflict Domains (optional),
18. Specify User-Level Multiple Organizations Preferences (optional),

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LEDGER
 A Ledger is a container of all accounting related information captured through various other modules.
Oracle General Ledger Module owns ledgers.
 One has to design the ledger in an appropriate way keeping in mind what information it needs to hold.
 One can have as many ledgers as they want based on their business requirement and operations point
of view.
 A ledger saves the accounting information in an organized way as directed by the conditions specified
in the accounting options for that ledger.
 Implementer defines the format, rules, restrictions for a particular ledger using different setup screens
making the user to only enter the information what is relevant for Oracle General Ledger to process
further.
 One may collect much additional information in different modules as per their business requirement,
whereas those are of least importance, since they are all only data which are not subjected to any
further processing by oracle.
 A well planned/designed ledger saves a lot of time for the company in processing the data and
preparing MIS reports for the management in key decision makings.
 One will also be knowing that Business intelligence module does this job of producing excellent
reports on the daily operations of company and points out key areas and red flags.
 However, business intelligence can be used to best effect, only when the base setups, which are in
place, are efficient.
 Ledger being the foremost setup for any financial modules in E business Suite, one must understand
the power, importance and its usage at later stage in many other areas within e Business suite.
 Ledger is nothing but a combination of all those components.
 Without usage of components, ledger cannot function on its own.
The components of a ledger are:
1) Chart of Accounts
2) Calendar
3) Currency
4) Accounting Method
They are also termed as 4 C’s.
Chart of Accounts
 The definition of Chart of Accounts structure is one of the most complex part, there has

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to be a brainstorming and many levels of discussions between Client and the Implementation team to decide
on a structure that best suits the business need.
 In short, COA decides on what information needs to be collected for every transaction that is being
transacted by the business, considering different parameters and key factors.
Calendar
 Calendar presents the period for which the business is carried forward. Calendar here represents
Accounting calendar.
 One will be deciding on the calendar based on their statutory requirement.
 Even though every accounting period is going to have a span of 12 months in it, however there is a
greater difference on the start and end date of the accounting period.
Currency
Currency represents the list of currencies in which the customer is having businesses.
One needs to define/enable the currencies as per their business requirement; there is no
harm in enabling all currencies.
Accounting Method
 Every business has to follow an accounting method to record their transactions in order to comply with
the legal commitments.
 Oracle by default has provided seeded accounting methods for usage, however if the clients business
demands for customization of an accounting method or creation of new accounting method as per the
statutory regulations, then they can create their own accounting method as well.
All the above-discussed components are mandatory in order to define a primary ledger.
For a secondary ledger, in addition to the above component, one needs to select the method of Data
Conversion Level followed.
Primary Ledger
 It is mandatory that every accounting operation must have one primary ledger
 It acts as a Primary repository, which records all accounting related information related to that particular
Primary Ledger. One cannot carry out setups without having primary ledger in place.
 Primary ledger replaces the Set of books (Ledger in R12) used in earlier versions prior to Release 12.
Secondary Ledger

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 It is not mandatory to have a secondary ledger.
 One can have one or more secondary ledgers based on their business requirement.
 One can never have a secondary ledger without primary ledger is in place.
 Since secondary ledger does not perform any new operation on its own, it only represents the
information contain in primary ledger in a different way.
 Mostly it is used for satisfying the reporting needs.
 It is necessary for one to know when one should have a Secondary ledger.
 One needs to maintain accounting records in a way, when there is a difference in any of the
parameters below from the primary ledger: Chart of Accounts, Currency, Calendar, Accounting Method
and Ledger processing options.
Reporting Currencies (Ledger)
 Reporting currencies are purely a representation of transactions saved in the Primary or Secondary
ledger in different currency.
 This concept was available in Release 11 in the name of Reporting Set of books (Ledger in R12); it is
exactly the same in R12, no change apart from the terminology.
 Reporting currencies are maintained at different currency conversion levels.
 Even though it is not a separate ledger as such, still it can be considered as a different
ledger since it acts as a different container apart from the primary or secondary ledger information.
LEDGER TYPE PURPOSE
Primary Ledger
 Mandatory for any setup related to financial modules
 Every transaction of the company will be recorded
 Acts as a base repository / container of all accounting information.
Secondary Ledger
 When Client wants Multiple Accounting Representations
 When Client wants to represent the information in a different calendar.
 When Client wants to represent the information in a different chart of Accounts.
Reporting Currencies
When the Client wants to report their information in different currency

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HOW TO DECIDE ON A PERFECT LEDGER STRUCTURE
I would explain the usage of the ledgers with a Business scenario.
Business Scenario is:
Company SKR GROUPS is implementing Oracle Financials for their business. The summary
of their business operations is as follows:
SKR GROUPS, which is based in India, is having their business operation in three countries:
1) Branch I - India
2) Branch II - Australia
3) Branch III - France
And the accounting and reporting requirements are:
 Branch Accounting Method Chart of Accounts Accounting Period
 Branch I Accrual As per Indian Statute April to March
 Branch II Cash As per Australia Statute January to December
 Branch III Accrual As per France Statute October to September
Please advice on the ideal Ledger structure to be designed for the company SKR GROUPS?
Now from the above lets us see how many primary ledgers can be created?
One cannot use the same primary ledger if one of its components is different.
Branch Chart of Accounts Currency Calendar Accounting Method
Branch I Indian Statute INR Apr – Mar Accrual
Branch II Australia Statute AUD Jan – Dec Cash
Branch III France Statute EUR Oct - Sep Accrual
From the above table, it is clear that none of the Branches have all 4 components as similar; therefore we
need to have 3 Primary ledgers defined for it.
Now apart from that, we need to think of the following practical scenario as well,
Even though Branch II is located in Australia, it has to finally consolidate all its operations

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to INDIA at a later stage, therefore it must also follow the rules of accounting and statutory regulations in
India, so as Branch III.
Therefore, Branch II – Should have a secondary ledger, which will represent the transactions as per the Indian
Statute.
Branch III – Should have a secondary ledger, which will represent the transactions as per the Indian Statute.
 However it is not necessary for Branch I to have secondary ledgers, since the company is based in
INDIA, therefore it need not have multiple accounting representations.
If the client insists on it, we can have 2 secondary ledgers for Branch I, to comply with
Australian and France statute.
 Now the Branches situated in France and Australia, must be reporting to the company in
INDIA on a daily basis, for which they need to convert their business transactions values
in to Indian currencies and then report it to the management.
For performing this operation, we require two Reporting currencies as well.
 As discussed earlier, reporting currencies are part of primary ledger setup. Therefore
Australia and France primary ledger should have defined INR as its Reporting currencies.
 To sum up, the ideal ledger structure would be as follows:
Branch Primary Ledger Secondary Ledger Reporting Currencies
Branch I 1 Not Necessary Not Necessary
Branch II 1 1 1
Branch III 1 1 1
TOTAL 3 2 2
Also there can be one more primary ledger created to consolidate the data between
Branch I, II and III,
QUESTION AND ANSWER SECTION
1. Is it mandatory that every ledger must have a legal entity attached to it?

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One can have a ledger with no legal entity as per their business requirement. It is not mandatory that every
ledger must have a legal entity attached to it. There could be ledgers, which have been created for
consolidation purposes alone.
2. Can there be a Secondary ledger without a Primary ledger?
No, it cannot be.
3. Can we have one secondary ledger associated with more than one primary ledger?
No, it is not possible.
4. Can we have more than one secondary ledger for a primary ledger?
Yes, you can have one or more secondary ledgers also there is no restriction imposed anywhere on number of
primary ledgers one can create.
5. Is it possible to convert a Primary Ledger to Secondary Ledger or vice versa?
No, not possible.
Data Access set
 Data Access Set is a new feature in Release 12, which is owned by General Ledger.
 It helps in providing Role Based Access Control to the users.
 Every user has access to the data through Responsibilities, these Data Access Sets controls the
behavior of a Responsibility when the user tries to access the ledger which is the repository of all
accounting related information.
 It can control the level of access to be provided and on what information the access can be restricted
for a given ledger and responsibility.
 We will see about it in more detail in further slides.
 It can provide Read only, Read and Write access to an Ledger
 It can restrict access to MSV (Management Segment Values) and BSV (Balancing Segment Values)
 The ledgers and Ledger Sets which are assigned to a Data Access Set must share the same Chart of
Accounts, Calendar and Period Type.
 General Ledger automatically creates a Data Access Set whenever a Ledger and/or Ledger Set are
created.
Following are the three types of Data Access Sets,
 Full Ledger
 Balancing Segment Value

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 Management Segment Value
FULL LEDGER
 As the name suggests all changes / restrictions defined under this type of Data Access Set will
apply to whole of a Ledger or a Ledger Set.
 Either you can have a Read and Write privilege to a Ledger or Read only privilege to a Ledger.
 For example, You have the Auditors visiting your premises who requires
access to all accounting information, instead of using system administrator to create a new
responsibility with lots of menu exclusions, you can just have a responsibility with the Data Access Set,
assigned as READ ONLY. So that the auditors will only have access to view the data and not to edit it
(Intentionally or unintentionally!)
BALANCING SEGMENT VALUE (BSV)
 Instead of providing access to the whole ledger, if you wanted to provide access only to
particular Balancing segment value combinations in a ledger, you can do so.
MANAGEMENT SEGMENT VALUE (BSV) Instead of providing access to the whole ledger, if you wanted
to provide access only to particular Management segment value
combinations in a ledger, you can do so.
Management Segment is a segment which has the Management Segment Qualifier attached. Values
belonging to that segment are termed as Management Segment Values.
Advantages
 Role Based Access Control
 Security on Data Access
 Simplified Setups to create Data Access Security
 It does not override the security rules and Cross validation rules
Limitations
 A Responsibility can have only one Data Access Set
 One can have ledgers sharing the same chart of accounts and calendar alone in the single Data
Access Set.
 In case of BSV or MSV type Data Access Sets, if you select the check box for ALL that does not
include all BSV or MSV values.
 So many parameters need to be considered before defining it, since it may clash with other
setups at General Ledger level resulting in errors.

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Following items should have been already defined before creating a Data Access Set, they are:
 Chart of Accounts
 Calendar and Period Type
 Ledgers should be defined using the above Chart of Accounts and alendar/period Type
 If you want to use Management Segment Value type Data Access Set, you must assign
Management segment qualifier to one of your segments well in advance
Information required for setup
Following information must be collected before proceeding with the setups:
 Name to be provided for Data Access Set
 Description for the Data Access Set
 Chart of Accounts to be Used
 Calendar / Period Type to be used
 Access Set Type required
 Ledger or Ledger Set Name
 In case of BSV or MSV access set types, the list of segment values to be defined.
 Which value requires Read only access and which value requires Read and Write access.
Questions & Answers
6. Which type of Data Access Set is advisable for usage?
The Full Ledger access set type provides better system performance than the Balancing Segment Value
or Management Segment Value access set type.
7. Can we have a Data Access Set without defining what type it is?
You must specify one of the three types for each data access set.
8. Can one change the type of Data Access Set after defining?
Once defined, you cannot alter the type. You can only add or delete ledgers/ledger sets and segment
values specified in the data access set
9. When one should be creating Data Access Set.
 When you want the user to be restricted based on the BSV or MSV, you need to create a Data
Access Set.
 If you are planning to grant full access to ledger, then you are not required to create a Data
Access Set,

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 since system automatically creates a Data access set whenever a Ledger or Ledger Set is
created, with the type Full ledger having read and write access.
 You can make use of that. How can I find or trace out the system generated Data Access Set.
 The system-generated data access set for a ledger/ledger set uses the same name as the
ledger/ledger set.
10. Does my Data Access Set override the restrictions provided by Security Rules and Cross Validation
Rules?
No, Data Access set does not override Security rules or Cross validation rules.
11. What precaution needs to be taken care for defining Data Access Set with Balancing Segment Values?
One must make sure that the BSV values used in the Data access sets must correspond to the BSV
values assigned to Legal Entity, using Accounting Setup Manager.
12. What precaution needs to be taken care for defining Data Access Set with Management Segment
Values?
Make sure that you do not restrict read and write access to segment values which are used in default
accounts, such as Retained Earnings Account etc...
13. Can we have multiple Data Access Sets for a Responsibility?
We can define multiple Data Access Sets for a ledger; however we can assign only one Data Access set
per responsibility.
LEDGER SET
 In release 12, the concept of Set of books (Ledger in R12) has been enhanced and termed as
Ledgers.
 Ledgers are of different types, I.e. Primary and Secondary ledgers.
 To make working with ledgers easier, the new feature called LEDGER SET has been introduced.
As the name suggests it is nothing but a Set or Group of ledgers.
 It helps the user in saving time on repetitive tasks performed on ledgers.
FEATURES / PURPOSE
 A Ledger Set can contain any number of ledgers, there is no specific ceiling proposed so far.
 A Ledger Set can include another ledger set within.
 A Ledger Set can only have those ledgers which are sharing the same:
 Chart of Accounts

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 Calendar/Period Type
 A Ledger Set can have Primary, Secondary and Reporting currencies attached to it, but they
need to have the same Chart of Accounts and Calendar/Period Type combination.
 A single ledger can be made use of in Multiple Ledger Sets.
ADVANTAGES
 One can run concurrent programs or processes for multiple ledgers easily.
 Opening and Closing periods
 Generating recurring journals, etc
 One can generate reports for multiple ledgers in no time.
 Reports relating to consolidation
 Financial Statement Generator Reports, etc
 In case of a ledger set, which contains more than one ledger/ledger set in it, user can optionally
set a default ledger for effective usage.
 Ledger set can be secured by having a Definition Access Set.
LIMITATIONS
 You cannot add ledgers that do not share the same chart of accounts and Calendar/Period Type
to a Ledger Set.
 You cannot have a reporting currency which is of type ‘Balance Level’ in the Ledger set, even if
it shares the same Chart of Accounts and Calendar/Period Type.
PREREQUISITES OF SETUP
 One needs to define a chart of accounts structure in place.
 Period Type
 Period types needs to be defined, which in turn will be used by
 Accounting Calendar
 Calendar
 One has to define an Accounting Calendar
 Existing Ledgers or Ledger Sets
 One must have few pre defined ledgers or ledger sets in place.
The following details are required in order to define a ledger set.
 Ledger Set
 Short Name
 Description

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 Calendar
 Period Type
 Default Ledger
 Ledger/Ledger Set
Questions & Answers
14. Can a Ledger Set be created without any ledgers in it
No you cannot create a ledger set without ledgers; you must have at least one ledger or ledger set
assigned.
15. Can a Ledger Set be deleted after defining
No one cannot delete a ledger set which has been created.
16. Can one modify the Ledger Set which is already defined?
Yes, you can add or remove Ledgers / Ledger Sets
17. After setting up the Ledger Set, is there any additional setup required before using the same?
You must assign the Ledger Set to the profile option GL: Data Access Set.
Oracle General Ledger automatically creates a Data Access Set, whenever a Ledger or Ledger Set is
created.
SUBLEDGER ACCOUNTING
 Accounting system will have a number of subsidiary ledgers (called subledgers) for items such as cash,
accounts receivable, accounts payable, inventory, purchasing likewise.
 All the entries that are entered (called posted or booked) to these subledgers will transact through the
general ledger account.
 For example, when a credit sale posted in the account receivable subledger turns into cash due to a
payment, the transaction will be posted to the general ledger and the two (cash and accounts
receivable) subledgers as well.
 There are instances when items will go directly to the general ledger without any subledger. These
items will be linked to your balance sheet but not to your profit and loss statement.
The Concept is more or less addressed same in newly R12 SLA accounting, therefore you should note:
 A transactional application that generates accounting impact.
 Used to store detailed information not needed for a general ledger
 Subledgers post summarized activity to a general ledger periodically to maintain centralized account
balances for the company

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 All accounting performed before transfer to the GL and this is achieved by user setup who can do by
definable accounting rules.
 At the data level, it’s a big change for all the subledgers, though there is a first generation changes we
have noticed sometime when 11i Payables where concept of Accounting Events introduced first time
and accounting performed at subledger level first before moving into GL.
 The same idea has been incorporated in new sub ledger accounting model , indeed a was a real need
because of some uneven functionality likes:
1. Inconsistencies in Accounting Generation like Summary vs. Detail
2. Direct to General Ledger vs. Open Interface
3. Inconsistent Drilldown from General Ledger
 Also it has been seen inconsistent Mechanisms for controlling Accounting as certain options has been
used in existing version:
1. flex biller
2. Account Generator
3. Automatic Offsets
What is sub ledger mean for a non finance person?
 A new transactional application that generates accounting impact Used to store detailed information
not needed for a general ledger
 Sub ledgers post summarized activity to a general ledger periodically to maintain centralized account
balances for the company
Why SLA and what does it do?
 Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application Release 12 (R12).
 It is used to derive all attributes required to account a transaction in Oracle General Ledger.
 In R12, SLA is used to derive the very basic accounting attributes like entered amount,
accounted amount, Date, Currency code etc and the complex attributes like Ledger, Code
Combination ID, Periods etc.
 After deriving these accounting attributes the transactions are then interfaced to GL from SLA.
 Thus in R12 no sub ledgers (AP, PO, PA etc) interfaces the transactions directly to GL, but all the
transactions are interfaced to GL in following 2 steps:
1. Sub ledgers interface the data to SLA.
2. SLA derives the accounting information and interfaces the data to GL.
SLA gives the flexibility to manage the entire accounting rule at one place, which acts as a single
source of truth for GL.
Note: There is no separate responsibility to access SLA setup or the view the transactions
generated by SLA. Rather we can access SLA setup and review accounted transactions with

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extended menus attached to each sub ledger module
How does SLA works?
1. Register sub ledger transactions in SLA.
 After validating / approving / costing the transaction in the respective module, the sub ledger calls
SLA API to create a reference of the validated transaction in SLA.
 This reference is known as EVENT. Events are created by calling the public API
“xla_events_pub_pkg.create_events” provided by SLA.
 It is up to the sub ledgers on how to call the API.
 For example Oracle Projects call this API from concurrent program “PRC: Generate Cost Accounting
Events” and Oracle Payables calls this API while user creates accounting for the Invoice.
 While calling xla_events_pub_pkg.create_events, oracle passes a unique id and event class (Will
discuss in next step).
 Unique ID can be an invoice id or a po_distribution id or an expenditure_item_id etc.
 As soon as the sub ledger generates event in SLA, SLA returns unique event_id.
 This event_id will then act as a reference to all the accounting entries generated by the SLA.
 Once event is successfully created in SLA, means that the transaction is registered in SLA for
accounting.
 Taking the example of Oracle Projects in 11i where after costing the transaction user need to run
the ‘PRC: Interface Cost to General Ledger’ followed by ‘Journal Import’ followed by ‘PRC: Tieback
process’.
 But in R12 user only need to run “PRC: Generate Cost Accounting Events” which will register
events in SLA and thereafter SLA will take care of accounting the transaction and interfacing it to
GL.
 There is no tieback process in R12, as there is one to one reference of event id between SLA and
sub ledger tables.
2. How does SLA understand whether unique id is invoice id or a po_distribution id or an
expenditure_item_id as SLA uses same table to store all the identifier?

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 Above we discussed that while creating the event we also need to pass event class. This event
class is used to distinguish between the types of transaction passed for processing. To understand
this better we will go thru the seeded oracle information
MONTHEND/YEAR END CLOSE PROCESS
I) ORACLE PAYABLES
1. Complete All Transactions for the Period Being Closed
2. Run the Payables AutoApproval Process for All Invoices / Invoice Batches
3. Review & Resolve Amounts to Post to the General Ledger
4. Reconcile Payments to Bank Statement Activity for the Period
5. Transfer All Approved Invoices Payments, Reconciled Payments to the General Ledger
6. Review the Payables to General Ledger Posting Process After Completion
7. Submit the Unaccounted Transactions Sweep Program
8. Close the Current Oracle Payables Period
9. Accrue Uninvoiced Receipts
10. Reconcile Oracle Payables Activity for the Period
11. Run Mass Additions Transfer to Oracle Assets
12. Open the Next Payables Period
13. Run Reports for Tax Reporting Purposes (Optional)
14. Run the Key Indicators Report (Optional)
15. Purge Transactions (Optional)
II) Purchasing
2. Review the Current and Future Commitments (Optional)
3. Review the Outstanding and Overdue Purchase Orders (Optional)
4. Follow up Receipts-Check with Suppliers
5. Identify and Review Un-invoiced Receipts (Period End Accruals)
6. Follow Up Outstanding Invoices
7. Complete the Oracle Payables- Period End Process
8. Run Receipt Accruals - Period End Process
9. Reconcile Accounts - Perpetual Accruals
10. Perform Year End Encumbrance Processing. (Optional)
11. Close the Current Purchasing Period.

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12. Open the Next Purchasing Period.
13. Run Standard Period End Reports (Optional)
III) Inventory/WIP
1. Complete All Transactions for the Period Being Closed.
2. Check Inventory and Work In Process Transaction Interfaces.
3. Check Oracle Order Management Transaction Process.
4. Review Inventory Transactions.
5. Balance the Perpetual Inventory.
6. Validate Work In Process Inventory.
7. Transfer Summary or Detail Transactions
8. Close the Current Oracle Payables and Oracle Purchasing Periods
9. Close the Current Inventory Period
10. Open the Next Inventory Period
11. Run Standard Period End Reports (Optional)
IV) Order Management
2. Ensure all Interfaces are Completed for the Period (Optional)
3. Review Open Orders and Check the Workflow Status
4. Review Held Orders
5. Review Discounts
6. Review Backorders
7. Review and Correct Order Exceptions
8. Reconcile to Inventory
9. Reconcile to Receivables (Optional)
10. Run Standard Period End Reports
V) Receivables
2. Reconcile Transaction Activity for the Period
3. Reconcile Outstanding Customer Balances
4. Review the Unapplied Receipts Register
5. Reconcile receipts.
6. Reconcile Receipts to Bank Statement Activity for the Period
7. Post to the General Ledger
8. Reconcile the General Ledger Transfer Process
9. Reconcile the Journal Import Process
10. Print Invoices

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11. Print Statements (Optional)
12. Print Dunning (Reminder) Letters (Optional)
13. Close the Current Oracle Receivables Period
14. Reconcile Posted Journal Entries
15. Review Unposted Items Report
16. Open the Next Oracle Receivables Period
18. Run Archive and Purge programs (Optional)
VI) Assets
2. Assign All Assets to Distribution Lines
3. Run Calculate Gains and Losses (Optional)
4. Run Depreciation
5. Create Journal Entries
6. Rollback Depreciation and/or Rollback Journal Entries (Optional)
7. Create Deferred Depreciation Journal Entries (Optional)
8. Depreciation Projections(Optional)
9. Review and Post Journal Entries
10. Reconcile Oracle Assets to Oracle General Ledger Using Reports.
11. Run Responsibility Reports (Optional)
12. Archive and Purge Transactions (Optional)
VII) Project Accounting
1. Change the Current Oracle Projects Period Status from Open to Pending Close
2. Open the Next Oracle Projects Period
3. Complete All Maintenance Activities
4. Run Maintenance Processes
5. Complete All Transaction Entry for the Period Being Closed
6. Run the Final Cost Distribution Processes
7. Interface Transactions to Other Applications (AP, GL, FA)
8. Generate Draft Revenue for All Projects
9. Generate Invoices
10. Run Final Project Costing and Revenue Management Reports
11. Transfer Invoices to Oracle Receivables
12. Interface Revenue to General ledger (Project Billing Only)
13. Run Period Close Exception and Tieback Reports
14. Change the Current Period Oracle Projects Status from Pending Close to Closed
15. Advance the PA Reporting Period (Optional)

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16. Update Project Summary Amounts
17. Restore Access to User Maintenance Activities
18. Permanently Close the Oracle Projects Period (Optional)
19. Reconcile Cost Distribution Lines with General Ledger (Optional)
VIII) Cash Management
1. Load Bank Statements
2. Reconcile Bank Statements
3. Create Miscellaneous Transactions
4. Review Auto Reconciliation Execution Report
5. Resolve Exceptions on the Auto Reconciliation Execution Report
6. Run Bank Statement Detail Report
7. Run Transactions Available for Reconciliation Report
8. Resolve Un-reconciled Statement Lines
9. Run the GL Reconciliation Report
10. Run the Account Analysis Report for the General Ledger Cash Account
11. Review the Account Analysis Report
12. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
13. Perform the Bank Reconciliation
IX) General Ledger
1. Ensure the Next Accounting Period Status is Set to Future Entry
2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger
4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)
5. Generate Reversal Journals (Optional)
6. Generate Recurring Journals (Optional)
7. Generate Mass Allocation Journals (Optional)
8. Review and Verify Journal Details of Unposted Journal Entries
9. Post All Journal Batches
10. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs)
11. Revalue Balances (Optional)
12. Translate Balances (Optional)
13. Consolidate Sets of Books (Optional)
14. Review and Correct Balances (Perform Reconciliations)
15. Enter Adjustments and / or Accruals and Post
16. Perform Final Adjustments
17. Close the Current Oracle General Ledger Period
18. Open the Next Oracle General Ledger Period

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19. Run Financial Reports for the Closed Period
21. Perform Encumbrance Year End Procedures (Optional)
Account Payables
It is an ERP solution to effectively manage creditors. The main task is to pay the supplier for the goods
&services. It captures information with respect to purchase invoice transaction & payments to supplier.
The task of effective control of payables can be achieved using the following tools of management.
1. Timely recording of invoices & suppliers liability.
2. Effective payments to suppliers through invoices validation a approval process & exercising
hold whenever needed & availing maximum credit wherever possible.
3. Paying on the due date to avoid overdue interest. You can pay early as per vendor agreement
to available maximum discount & the proper mode for payment.
4. It is a subsidiary ledger to GL. It is integrated to other modules like: GL, Assets, Purchasing, Cash
Management, Inventory, Projects, Human Resources, Receivables, Invoice Gateways (Oracle
Ecommerce), Internet Express, Property Management.
Business Flow
Business flow of payables is as under,
1. Invoice Recording: Based on purchasing order suppliers will provide goods & services invoices. In payables
invoices are recorded based on invoices received, purchase order, receipt of material & services.
2. Invoice Approval Process: Dunning approval process, placed to delay payment for any variation in purchase
order in invoices/receipt of materials.
3. Invoice Accounting: The validated & approval invoices will be accounted.
4. Debit memo issue/Credit memo/receipts/Recording/Accounting: For any variation in purchase order,
invoices/receipts/debit memo/credit memo will be issued, which will be recorded & accounted.
5. Advance Payment approval process: Any advance payment to suppliers requesting approval before
payment.
6. Payments of Approval invoices: Approval invoices will be paid by using payment documents. It can be
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7. Payments Accounting: Once payments are a affected, they will be accounted.
8. Refund receipts/record/accounting: Any excess payment will be refunded by the supplier which will be
recorded & Accounted.
9. Review of supplier’s liability Outstanding: Done periodically.
10. Transfer periodically to General Ledger.
APPLICATION FLOW
1. Assign General ledger Set of books (Ledger in R12) (Ledger in R12).
2. Define lookups (purchasing, payables, Employee).
3. Define payment terms.
4. Define Distribution set: Full/Skeleton
5. Set of defaults &controls in financial & payable options.
6. Create supplier & supplier site.
7. Standard invoices/credit memo/Mixed invoice entry/Employee expense invoices generation, Approval,
Accounting.
8. Prepayment invoices generation/Debit memo issue recording, approval, accounting process.
9. Define payable formats, Bank account, payable documents.
10. Issues of payments, Approval Accounting.
11. Recording of refunds & accounting.
12. Transfer approved invoice transactions & payment transaction to GL.
Information Flow
Data can be predefined in following levels shown in ascending order of hierarchy.
Financial options
Payables options
Supplier level

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Supplier site level
Invoice leader level
Financial Options:
Certain values can be predefined & control options enabled. Values defined at this level will act
as default values access various modules like payables, purchasing & asset modules. These values &
options cascade documents to next lower level.
Payable Option:
Some additional values & options can be defined. The values are
defined at payables options level act as default exclusively for payables module only. The values define
at this level will default to every new supplier being defined.
Supplier level:
Values & options that defaulted from payables options can either be accepted/overwritten with
new values & options. The values options defined at this level will default to site being defined at the
site level.
Supplier Site level:
Values & options can either be accepted/overwritten if required; It will default to Invoice header level.
Invoices Header level:
Values & options defaulted from supplier site level can be accepted /overwritten. It will default
to the following 2 level.
Distribution lines level
Schedule payment line level Accepted/Overwritten
Schedule payment line level
Distribution lines/level

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Transactions
Purchase Invoice Payments
This transaction will be in functional or foreign currency.
Purchase Invoice Transactions:
 Standard invoices
 Credit Memo
 Debit Memo
 Mixed invoice
 Po default Standard invoice
 Quick match standard invoice
 Prepayment invoice
 Expense report invoice
 Withholding tax invoice
 Interest invoice
Payment Transaction:
 Manual payment
 Quick payment
 Refund
Basic Setups
1. Choose Set of books (Ledger in R12)(Ledger in r12)
2. Define financial options
3. Define payable options
4. Open period in payables
5. Define payment terms
6. Define lookups
7. Define discount sets
8. Define supplier & supplier sites

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9. Define bank formats
10. Define bank account& payable document.
Financial options
After choosing GL Set of books (Ledger in R12), define financial options which have following regions.
 Accounting
 Supplier – Entry
 Supplier – payables
 Supplier – Purchasing
 Encumbrance
 Tax
 Human resources
Account payable, purchasing, FA module share these options. Information flow starts from financial option. It
defines the defaulting accounting flexfields for Oracle Payables financial transactions which create oracle GL
journal entities.
Navigation:
Setup Options Financials
Accounting tab:
Future tab:
Number of future periods that we may use in our Set of books (Ledger in R12). In payables there is various
period statuses
 Never open
 Future
 Open
 Close
 Permanently close period.
Never Open: Cannot enter transaction at all
Future: It can be entered but they cannot be processed/ posted in GL.
Open: Enter post & transfer to GL.
Close: Cannot enter transaction but can generate statement like open period.

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Permanently Closed: It will work for all close period. In close period we can toggle to open period but here u
cannot.
GL Account:
Liability – Default liable account for all new suppliers created this value can be overridden during supplier
creation.
Prepayment: Default account for each line entered in prepayment type invoice
Future dated payment: This default to all new supplier & bank account for all future data payment.
Discount taken: Discount taken on payment
PO rate variance gain/loss: Rate variance when we match invoice to purchasing order/receipts.
Expense clearing: payments through credit card, oracle internal expense.
Misc: Misc charges when invoices are imposed through XML gateway (or) high supplier port
Supplier – Entry tab:
RFQ only site: If we enable this all suppliers will be defined as only RFQ only site. For these sites no purchase
order can be generated.
Hold unmatched invoices: To place a hold on invoice during invoice validation when it is not matched to
either purchase order/receipts until the hold is released invoice remain unpaid.
Invoice match option: Purchase order/receipts. It indicates how to match invoices.
Supplier Number Entry: Manually/Automatically. It can be changed at any time. But before changing make
sure that the next available now for automatic enter is larger than largest no: already recorded.
Type: Alphanumeric/Numeric
It can be changed at any time, however changing from a no. numeric only is allowed only if all current
suppliers no are numeric.
Next automatic no: Top value to be entered at the time of financial option setup for generating unique
sequential supplier no.
Supplier – Payables tab:
Payment terms: Immediate/No of days (used to car due dates, discount dates for each invoice entered in
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Payment method: Check/clearing/Electronic/wire recording payments to internal/departmental/inter
cost centre.. etc
Electronic: Information about supplier payment is captured by magnetic media which is delivered to a bank
through electronic data interchange gateway. The banker uses this information to electronically to the
fundamentals from our account to supplier account.
Check: Written order to bank to pay a specific sum of money on demand to a specific person/order.
Wire: To telegraphic is used to manually record. Receipt acceptance days: It refers to grace days to avoid into
being added to the invoices for delayed payments. If we enable an option to recalculate schedule payments at
another level, payable option approval recalculates the invoices due date based on this value also.
Always take disc: Payables always take disc from my supplier no matter when to make payments.
Pay alone: We can pay each invoice by each payable document. If we don’t enable, we can combine payments
of several invoices & pay by single payables documents.
Supplier – Purchasing tab:
Options defined at this region were default for purchase region from the supplier in supplier window.
The inventory organization field is applicable to purchasing module.
Ship to location:
Inventory Org : For purchase module transaction use.
Ship via : Default mode of the operation of freight carrier which will duplicate usually to the supplier
like road, air, rail...
Freight on board (FoB): Specify the term at which the vendor liability classes
Freight items: Specifying freight terms payments methods
Whether it is prepaid /paid by vendor or pay & collect it from supplier/no freight terms.
Encumbrance: It means year making/reserving funds from Out of a budget for a specific use. Encumbrance in
application is defined in this region. Controls specified here will be used for payables & purchasing In
Purchasing modules, it is used for requisition &purchase order. In payables, encumbrance for unmatched
invoices & also for variance, it matches invoices & purchase order.
Use requisition encumbrance: If you enable this you got to ‘Choose’ the encumbrance type. And the
encumbrance type for the requisition is ‘commitment’.

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Reserve @ completion: If it is enabled, encumbrance can be created by their preparing requisition, otherwise
only the approvers of requisition can create encumbrance.
Use PO encumbrance: You got to choose its encumbrance type, PO& the normally obligation Encumbrance for
PO journal for this purchase definition at this level.
Invoice encumbrance level: Encumbrance type to be used for creating encumbrance journal for invoice.
TAX:
Default tax code:
It defaults to invoice tax code option in the supplier window. If you choose a tax code for which we have
defined different tax for different effective dates, payables will automatically use the tax applicable for each
invoices based on invoice date.
VAT Registration: Member state: Location of outcomes to find out whether the company is located in the
member state of the E.U.
VAT registration no: Enable recoverable tax:flatRecoverable /Non recoverable
Flat tax type discount as recoverable for reporting, purpose split ‘taxes into’ recoverable& non
recoverable lines, automatically calculate tax &profit rate it back into GL account of the taxable distribution.
Default recovery rate:
Specify a rate that will default to tax recovery rules & tax codes which we define.
Calculate rules:
Rounding rule: No round tax amount in payables & purchase. Up/down/nearest
Precision: Enter a one digit whole no: to indicate which decimal place you want to round automatically to
calculate tax amounts in payables & purchase.
Minimum Account table unit:
The smallest monetary unit you want to round the tax amount.
Human resources:
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 Define your company as a single business group/there is several major Branches/operating unit each
may be defined as a business group. While defining employer, specifying the business group to which
they belong.
 Expense reimbursement address: Home/office
 The default employee address to which the reimbursement object is to be specified. The value entered
here defaults to new employees you create in the persons window when you can optionally over side
it.
 Use approval hierarchies: On HR you define positions & their hierarchies.
 The job of individual within an organization.
 For e.g.: Account clerkjob
 Enable it to define approval pass for documents within purchasing.
 Employee number: Method Manual/Automatic
Payable Options
It will simplify supplier entry, automatic payment processing, invoice entry. Most of the options can be
updated for future transaction any time. There are specification payables modules only. There are 14 tabs
/region.
1. Accounting methods,
2. Transaction to GL
3. Payment accounting
4. Currency
5. Supplier
6. invoice
7. matching
8. interest
9. Expense report
10. Payment
11. Invoice tax
12. Withholding tax
13. Tax defaults & rules
14. Reports
Setupoptionspayables
In payable options window we can define control options & default used throughout payables.
Accounting method Primary accrual

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Secondary—cash
Accrual/Cash basis method of Accounting:
Accrual accounting is mandatory in certain countries. Secondary accrual accounting. Set of books (Ledger in
R12) is maintained in few countries in Europe that too on cash basis in order to meet sales tax reporting
requisition.
Here sales tax output is by deducting the input tax i.e. tax on supplier invoices from output tax i.e. tax On
customer invoices. Input tax can be set of against opening tax only on efficiency an accruing them in the books
of account as evidence of payments. It will be captured in separate books maintained on a cash basis & field
along with the return.
So the transaction in payables can be journalized in to GL Set of Books (Ledger in R12) based on two type of
accounting methods.
For the primary accounting method based on accrual basis, the GL SET OF BOOKS (LEDGER IN R12) will
automatically default from the SET OF BOOKS (LEDGER IN R12) .
Secondary SET OF BOOKS (LEDGER IN R12) can be optionally maintained internally even if is not mandatory.
But you have to specify the basis on how to journalize the transaction. The options available are
accrual/cash/none.
Automatic offset method:
To create multiple liability lines in payable in such a way that all balancing segments are equalized in
terms of debits. Credits automatically during invoice validations process.
None/Balancing/Accounting
Unbalanced journal:
Invoice Transaction Unbalanced Journal
Dr Cr
C1 100 6420 1000
C2 200 6420 2000
C1 000 2210 3000
Balance:

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C1 100 6420 1000
C2 200 6420 2000
C1 000 2210 1000
C2 000 2210 2000
Account
C1 100 6420 1000
C2 200 6420 2000
C1 100 2210 1000
C2 200 2210 2000
The offset entries are created only at the terms of invoice validation process. These types of offset
entries are created for prepayment entities to in case of company want to prevent prepayment application.
Accordingly for balancing segments – enables the relevant check box.
AP Payable option Transaction to GL:
How payables transacts to a GL interface.
 In detail
 Summarize by accounting date
 Summarize by accounting period.
In detail
As many accounting lines (as number of lines in each invoice) transactions are transfered to GL.
Summarize by accounting date: Lines summarized account to account date
Summarize by accounting period: It will create the least no of lines because it will sum up a pair accounting
for a part period &there one line would be generated.
TR. Reporting books:
Applicable only if we have a reporting SET OF BOOKS (LEDGER IN R12) when we run payables to GL for our
primary SET OF BOOKS (LEDGER IN R12) , TR also takes place in repository SET OF BOOKS (LEDGER IN R12)
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Submit journal import:
If you don’t enable transaction when Transfer to GL by the program Transfer to GL will not import it to GL, it
will be in the interface. In GL we have to run the program to import it from interface if enabled, the latter
program will automatically run.
Allow override at program submission:
Above control if you want to override at the program submission enable it, if you enable it at the time of
submitting payable Transfer to GL in the parameters you can override this submission whether to submit
journal import/not & change from Transfer in details to summarize by accounting date or period.
Payment Accounting
Accounting for payment:
When payment document is issued/ when payment document class.
When both are enabled, it gives the functionality to allow reconciliation accounting .Payment entries that will
be created when payment is issued.
Regular payment: AP liability accounting or to cash clearing account.
Future dated payment: On the date of issue AP liability account or to future dated payment account
On the date of maturity: Future dated payment account
To cash clearing account. They are unreconciled payment entries once payment is cleared, cash clearing
account can be converted to cash account after reconciliation in Cash management module.
Accounting for gain/loss: Foreign currency transaction account for gain /loss when accrual/cash basis is used.
Cash basis: Account for currency gain/loss but payment time & payment clearing date. For future dated
payment, it will account for payment issued date & payment maturity date & payment maturity date &
payment clearing date.
Accrual basis: Between the invoice date & payment issue date.
Future dated payment:
 Invoice date
 Pay issues date
 Pay maturing date

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 Pay clearing date.
Calculate gain/loss:
 For each invoice
 For total payment
Use future dated payment account:
 From payment document
 From supplier site
Currency
Use multiple currencies
Require exchange rate entry – daily rate /periodic rate
Calculate user exchange rate : If invoice/payment is entered in a currency other than functional currency or an
associated fixed rate currency I.e. euro derived currency.
Exchange rate type:
Corporate A standard make rate by senior management for use throughout the organization
Reporting:
 Spot – Daily exchange rate that is a quoted market rate
 User - Used to manually enter in own exchange
Rate during invoice entry at payment time:
If functional currency amount is known for any foreign currency invoices, then one can enable this option for
the system to calculate the user exchange rate. It is used mainly to import invoices through payables open
interfaces.
GL ACCOUNT Realized Gain 6842
Loss 6844
Rounding 6826
Supplier

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Invoices tolerance: To allow variance between invoice, purchase order receipt & tax information, you can
specify here the percentage based/amount based tolerance for suppliers.
Pay Group: Normally defined in purchasing lookup. This is to assign pay group for any new supplier for
payment in batches& reporting purposes (standard/employee pay group)
Invoice currency: USD
Terms date basis:
System/goods receive/invoice/invoice received (It decides the date based on due date basis/discount
date basis & prepare the schedule for payment).
Invoice: Terms date will be decided as invoice date & account due date will be calculate.
Invoice received: The date on which we receive the invoice.
Pay date basis: Discount/due – override @ supplier & supplier site .If invoices are to be paid by exercising
discount option, then the schedule payment is as per the due rate. If they are paid based on due date, then
system schedule payment as per due date.
Book charge bearer: Payment of book charges.
Internal/supplier/Negotiation: Supplier/Standard
Supplier Negotiation: Supplier will bear the book charges at negotiated rate.
Supplier standard: Supplier will bear book charges at standard rate.
Tax reporting: Combined filling program.
A use pay at region – supplier site will default as tax region same will be default in the distribution lines
level.
Income tax region: Only when both check boxes are enabled overrides at invoice discount level.
Invoice (tab):
Use invoice approval workflow: If disabled, Can’t submit invoice for approval to higher hierarchies.
Allow force approval: Override the invoice approval.

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Workflow process: Approve manually at the user level can forcefully approve even if the approval
workflow process is not complete.
Requesting validation before approval:
Allow adjustment to paid invoices:
Recalculate schedule payment:
Automatically create fright discount: If you enable that check box, it uses the freight distribution for the
invoice from the next default option freight account. Freight discount will appear as a single line in invoice.
Confirm date as invoice no: When invoice no is not entered, then date will become the invoice no, In
such situation a caution in popup window will come.
Allow online validation: Users can select invoices for validation in the invoice workbench to the invoice
action window/those validation buttons is invoice batches.
Allow document category override: For invoices besides recording invoice no in case us to wants a
special sequence numbering process for entity of invoice in invoice workbench.
They can adopt a document category sequence numbering you have to enable this checkbox & can use add
category sequential numbering.
GL date basis: Basis on which invoice will have the default accounting data.
 Invoice date
 System
 Goods record/invoice date
 Goods record/system date
Prepayment:
Prepayment invoice - Immediate for advance payment.
Payment terms: Default payment terms for all

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Settlement date: No of days to be adapted to the system date for calculating the date which prepayment can
be settled/ applied against any invoices like the prepayment will not be available for application/settlement
against any invoices.
Bill prepayment accounts when matching:
Disabled - prepaid account code combination i.e. defined in the supplier site would be defaulted for the
prepayment line discount.
Enabled- When matching which PO/Receipts, the prepayment item discount lines will be built taking into
account, the natural account segment from the supplier site prepayment account & other segment from the
responsible purchase order discount lines/receipt discount lines.
Matching
Allow final matching:
Final match of an invoice to the PO is done by enabling it. Here for any subsequent invoice matched to
PO after final match, the system hold will be placed for want of PO equivalent & this hold cannot be released
manually.
Allow discount level matching:
Enable: Matching of invoice to PO discount matching of 1/more PO discount with an invoice is possible
here disabled. Payable will allow only matching an invoice to a full PO shipment.
Allow matching account overview:
Enable- You can override an account for invoice discount created by matching to a PO matched invoice
discount account is overridden in invoice workbench/any imported invoices. In case of using encumbrance
accounting/perpetual receipt accrual/PO is project related/PO discount is inventory then such overridden
option is not possible.
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When matching an invoice to PO payables automatically to the descriptive Flexfield information from PO to
invoice if this check box is enabled provided the structure of Flexfield in PO discount is the same as that in
invoice discount.
Interest: Controls & options for calculate of information for override invoice/others.
Allow interest invoice: Enable – system will calculate information for override invoice & automatically
generate interest invoices.
Prorate access overdue invoice: Enable – prorate the interest amount of the overdue invoice access item
discount.
Minimum interest amount: For calculating interest is below this value, and then payable will ignore the
calculate interest does not generate any interest invoices.
Interest invoice account codes: Expense &liability Incase if the second checkbox above is disabled, then a
single line discount is created for the total interest & overdue invoice with this account code combination.
Expense 6820 Liability: whenever allow interest invoice is enabled, then you have to specify the interest
invoice liability account code combination in this field -2250 it is used as prepayment process.
Expense Reports
Default template: To enter details of expense of employee is form/template with regular expense
codes/names can be created & used as default template have this will appear in expense report window. The
default value/codes/names/which specified can be overridden at the expense report window.
Payment terms: Select a default payment term for expense report payment. It will be assigned to the
employee when the employee is made as a supplier during expense report/import.
Expense report pay group:
Employee can be grouped for expense report reimbursement purpose & the pay group can be created
at purchasing lookups which can be attached here.
Payment priority: 99 (1- higher priority 99- lowest priority)
Apply advances: To apply advances given to the employee against expense report. Override this option at
expense report window.
Automatically create employee as supplier: At the time payable expense report else he has to be defined in
the supplier window with classification as employee & by linking employee name & number.

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Hold unmatched expense report: Unmatched expense report invoices will be placed on hold during invoice
validation.
Payment
Bank account: Default internal bank for our company. It will be used for payment to supplier. It will be
default in payment window & payment in batches.
Payment Batch limit: Maximum amount payable for the payment batch, if the payable amount is the
batch exceeds this limit, the system shows a warning message but the excess can be optionally
allowed. This limit is per payment batch.
EFT user no: EFT customer identifying number: allocated to you by user.
Banker/clearing organization. It is incorporated in the pay document sent to buyers.
Additional pay through days:
The number given here is added to default pay through date while initialing a regular payment batch.
No of days specified here are the days but the regular payment date & default pay through date. In case it is
10, payable add to the system date & then arrive at default pay date when we run a payment batch.
Allow document category Override:
Separate numbering of payments as voucher number: Besides payable document number sequential
numbering can be assigned for payment & the payment voucher will be accordingly numbered sequentially. If
you want, you can define a different sequential numbering & override the default setup, if the checkbox is
enabled.
DISCOUNT:
Exclude task from disc calculation: Enabled – tax amount will be subtract from invoice header amount
discount will be calculated.
Three system of accounting discount Taken:
System account: All discounts Taken will be credited to the system disc taken account define in the
financial option level.
Prorate expense: Prorate any disc across invoice discount lines, if exclude tax from discount line is
enabled, then disc will prorated across discount expense lines only & not for tax lines.
Prorate task: Prorate to tax discount line only as percentage of the discount amount equal to the
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E.g. tax distribution line 20 % of the total distribution amount, then payable prorate 20% of the discount
amount against tax lines, only the remaining 80% of discount amount is accounted as discount taken account.
SINGLE PAYMENT:
Allow print: To print payments while effecting quick payment.
Allow pre date: We can create payment date prior to system date.
Allow void reissues: Of checks, in cases a check is spoiled, you can void & reissue another check bearing
new cheque number in line of the same cheque through payments.
Allow address change: Change address of supplier site at the time of payment instead of sending it to
supplier site adds as per the invoice.
XML PAYMENTS:
Automatic confirmation:
If System Company uses XML payments, and this check box is enabled then system will allow automatic
confirmation of payment batches based on process payment requirement. XML message from in book
indicates that xml payment was successful. If it is enabled, the user will receive workflow information at the
confirmation of the payment batch.
REMIT TO BANK ACCOUNT:
Allow remit- to account override:
Normally for direct remittance to supplier bank account, the supplier site will be having a default
primary bank account. Enabled – in the payment batch window, the user has got an option to change the
remit to supplier bank account.
BANK CHARGES:
Use bank charges: Enabled – you can enter bank charges provided in the supplier region of the payable
option bank charge bearer option is exercised.

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INVOICE TAX
Requisition tax entry at header:
We can enter the tax amount of the tax code of the invoice at invoice header level itself at invoice workbench.
When tax is accounting like this, then distribution lines are generated based on invoice amount after
subtracting the tax amount. Not applicable for imported invoices/for credit & debit memos in invoice
workbench.
Use automatic tax calculation: Based on the tax code tax calculation automatically without entering the
amount.
CALCULATION LEVEL: For automatic tax calculation,
Level at which tax has to be calculated.
 Header – Header level amount is split into line & tax amount.
 Tax code – Based on tax code attached at header level.
 Line – This is always inclusive.
Line: - Tax amount calculation on distribution line amount, It can be inclusive / exclusive if inclusive then check
box includes tax in distribution line level should be enabled; otherwise it will be exclusive tax.
Tax code: Calculating tax more/less in the same way as line level tax except that at the time of calculation of
tax amount, tax lines which the same tax codes can be grouped & then rounding of tax is done .Rounding off is
not done on each tax line but done in tax code grouping level only.
Allow calculation level override: The default level of tax calculation selected in calculation level can be
overridden at the supplier site level only if it is enabled.
Distribution amount inclusive tax: - tax calculation at line level/tax code level at inclusive tax then it is to
be enabled.
Allow override: if the above check box is enabled, then to override the default method of calculation of
tax at supplier site level, enable this,
WITHHOLDING TAX

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Use withholding tax: For supplier & to automatically calculate the same for supplier based on withholding
tax groups.
Allow manual withholding: You can enter withholding tax manually in invoice distribution tax window.
Tax group: Specify the default withholding group for all supplier inclusive new suppliers only if a use
withholding tax option enabled.
WITHHOLDING AMOUNT BASIS:
Include disc amount: You can make payables to inclusive discount amount also for calculation withholding
tax amount.
Include tax amount: You can include invoice tax amount also for calculation of withholding tax.
Apply Withholding Tax:
 Never: Never to apply on supplier invoices
 At invoice validation time
 At payment time
Creating withholding Tax:
 Never: If the company does not want to calculation withholding tax & create
 Invoices automatically, then enable this
 At invoice validation time
 At payment time.
Include income tax type on withholding distributions:
Enable payables to automatically create distribution types for withholding tax .for 1 to 99 supplier
under automatic withholding tax calculation options to report on federal IT with held for those supplier. In
case of manual withholding tax the amount is to be entered manually for reporting.
TAX DEFAULTS AND RULES
Enforce tax from account:
 To set up hierarchies for selecting tax code from various levels.
 Allow payables to select tax code from GL tax assignment for the relevant natural account.

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Enforce tax from PO: To select tax from PO shipment PO i.e. is matched to the invoice.
Tax Code Defaults:
Seven levels from which tax code can default.
1. PO for matched invoices
2. Supplier site
3. Supplier – in case of multi org support structure, entry
4. Accounting of tax code at supplier window is not allowed
5. Financial options
6. Invoice header
7. Template
ACCOUNTS RECEIVABLE
 Effective customer Management is the key of any organization.
 Accounts receivable Modules help on enterprise to manage to customer base, sales invoice and
receipts from customer effectively.
ACCOUNTS RECEIVABLE- A SUBLEDGER
 Accounts Receivable is a subsidiary ledger in which one can track customer, customer
transactions, receipts and collection activities.
SUBSIDIARY LEDGER TO ORACLE GENERAL LEDGER
 It is subsidiary ledger to oracle General ledger and it’s fully integrated with General Ledger.
 All the accounting Transactions will flow to General Ledger with full Audit capabilities likewise
one can drill down from the general ledger journal entries to the oracle receivable accounting
flexfields distribution details.
 Mainly deals with sales invoices, receipts and collection activities
 The main focus that accounts receivable is customer entry, sales invoices, cash receipts and
collection transaction.
BUSINESS FLOW:
 Customer-Purchase item: A customer will place a purchase order.

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 Generate sales order: Then Generate sales order based on “credit limit” of the customer and
availability of inventory.
 Based on the sales order, Invoice is raised with appropriate “payment term”.
 Receive the payment from customer: payment is received from customer.
 Remit (or) “factor” receipts with bank
 The payment either received is remitted or factored with bank.
 If payment from customer is not received then collection activity is initiated.
Purchase order credit limit & payment
(po) stock term
yes
no
AR FLEXFIELDS:
Sales Tax Location flexfield:
The sales tax rate is determined by the “customer” state, county and city. The sales tax location
flexfield structure helps one to capture different rate as per the capture location.
Application: General ledger
Setup->financials->flexfields->key->segments;
Application: Title:
CUSTOMER
SALES
ORDER
INVOICE
REMIT/FACTOR
RECEIPTS
PAYMENT
Collection
activities
receivables
Sales tax location
flexfields

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CODE TITLE DESCRIPTION VIEW NAME
State. country. State. country. State, Country, AR_LOC_flex
City city city become field _USA
This is the default structure.
Predefined Segment: Click segments to view the 3 separate segment structure.
NAME WINDOWS COLUMN VALUESET DISABLED ENABLED
PROMPT
State State Location_ID_Segment AR_LOC_STATE
Country Country Location_ID_Segment AR_LOC_COUNTRY
City City Location_ID_Segment AR_LOC_City
2) Territory flex field:
 It is primarily used to define the reporting territory and capturing territory information.
 It also facilitates customized reporting on territory information with respect to sales person, customers
and transactions. The usage is optional in accounts receivables.
Key Flexfield segment window:
Application: Receivables
Flexfield Title: Territory Flexfield
CODE TITLE DESCRIPTION VIEW NAME
Customer_ Customer Customers
Territory_ Territory territory

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Flexfield flexfield flexfield
Click
Segment summary window->(territory flexfield)->customer territory flexfield
Name Window Prompt Column Value set Displayed Enabled
1.Area Area Segment Territory Area
2.Country Country Segment Territory Country
3. Region Region Segment Territory Region
Information flow:
1) System option:
One has the system option to specify the following. (i.e.) ones accounting method Set of books
(Ledger in R12), tax method, an accounts, customer and invoice parameter, further, one has to specify
how AUTO-INVOICE and AUTOMATIC RECEIPT Program run
2) Customer Profile class: One can define the customer Profile class to group the customer accounts
with
1. similar credit worthiness,
2. business volume,
3. payment cycles,
Segment
Value set Flexfield Qualifiers New Open

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4. Credit limits,
5. payment terms,
6. statement cycles,
7. invoicing and
8. Discount information.
One can also define amount limits for one’s finance charge dunning statements for each currency in
which one transact this to the customers. Then this Profile class is assigned to the customer. So that it
will flow to the customer standard.
Customer standard: Where one can enters the details of the customer.
Customer Address Level: Then from the customer standard level, the information will flow to the
customer address level and further flow to the business level.
Customer business purpose level: Where bill to and ship to address details are given.
3) Transaction Level:
The information will flow to the transaction level where the transactions are enabled.
System option - Accounting method
Customer Profile class - Group Customer with similar
Customer standard - details of customer
Customer address level - address
Customer business level - Bill to/ship to

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Transaction level - Accounting code combination
System Options:
Receivable system options is used for setting up values which flows to lower level in the
information hierarchy system option is made up of tabs.
1. Accounting tab
2. Tax
3. Tax Defaults and rules
4. Trans and customers
5. Revenue Policy
6. Claims
7. Miscellaneous
Setup; System; System option
System option (KARTHIK PR E-Demo Receivables (CO1-LOC1))
Accounting Tax Tax Default
and Rules
Trans and
customers
Revenue
policy
Claims Miscellaneous
Accounting tab:
Operating unit: Vision operation
Name: Vision operation (USA)
Accounting Method: Accrual (accrual/cash)
Finance charge Activity Finance Charges
Realized Gain Account PR-740-7830-0000-000
Realized losses Account PR-740-7840-0000-000
Tax Account PR-000-2520-0000-000

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Unallocated Revenue Account PR-000-4150-0000-000
Cross Currency Rate Type Corporate
Cross Currency Rounding Accounts: PR-740-7826-0000-000
Heading Account: PR-740-7827-0000-000
Automatic Journal Import
Header level Rounding Day per posting cycle
-Accounting Flexfield Description
 Name of the operating unit
 Name of the Set of books (Ledger in R12)
 Name of the accounting method whether accrual->to “record” revenue from debit memo
,invoices, charge backs cash basis->”recognize” revenue at the time when one receives
payment for invoice, debit memo, charge backs.
 Finance charge activity: This default provided by the receivables. One can have one’s own
activity defined.
 To account the difference in exchange rate gain/loss
 Realize loss account to account the differences in exchange rate losses.
 One has to enter the tax account to enter the tax codes and rates.
 Unallocated revenue account is used when cash basis is used and one can apply cash receipts
with norms zero balance and invoice with zero balance.
Cross currency Rate Type:
The default is exchange rate type, the receivable will use in case the receipts and transactions
are into different currencies.
Cross currency Rounding Account:
 The receivable will use this account to record rounding amounts created during cross currency
receipt application.
 Header Rounding Account: This field is only optional. Receivable use this account to record any
rounding differences that arise when converting foreign currency transactions to one’s
functional currency.
30

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 If automatic journal import is enabled, to import the batches of transactions to posted once in
general ledger.
 One has to enter the number of days per posting cycle to avoid system over load. One has to
enter the number of days.
 E.g. 10 days is given here but the number of accounting days is 30, then there are three cycles.
 If header rounding account is given then the header level rounding check box should be
enabled.
2. Tax Tab:
Tax Method:
Location Flexfield Structure
Postal code Range
Address validation
Invoice Printing
Tax registration number
Tax vendor views
Sales tax Geo over ride
Inclusive tax used
Rounding Option
Sales tax
State .country. city
0000-99999-9999
No validation
Item size and sum
98-1234567
oracle

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Calculation level Line
Rounding level nearest
Reporting Currency USD
Precision 2
Min accountable unit 0.5
Allow Over ride
This tab is used to calculate the taxes.
 One can enter either sales taxes (or) value added taxes.
 So that receivable uses this tax method.
 Sales tax is based on the location of the customer receiving one’s goods and services / whereas
value added tax is imposed on the value added to each goods and services at each stage of
supply.
 One has to enter the one’s sales tax location Flexfield structure state; country; city. It is used as
Predefined location flexfield structure.
 One has to enter the postal code range that will be default to tax, location and rates window.
 Address validation: One can make the system to have the validation check on the address
format. Three values
1. Error
2. No validation
3. Warning
Invoice Printing: Select the method to print tax amount on the invoices.
One has to enter the sales invoice Tax registration number for the same to be printed on the invoice.
Tax vendor views is used to calculate the tax select one from the invoices.
Enable inclusive tax used checkbox. When one wants to use inclusive tax codes.
Calculation level field: default line level. Line, header, one can opt to calculate either at line level or
header level.
The system will calculate tax at each line level. If it is header means one will calculate tax for each
invoice for each rate.
Rounding rule-> up, down, nearest.
o Up -> round the calculation at the greater amount
o Down -> round the tax calculation at the lowest level
o Nearest -> round the tax calculation at the nearest decimal point (or) integer.
Reporting currency will have the same currency US dollar as your reporting currency.

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Precision is the number of decimal places to be displayed.
Minimum accountable unit is the smallest denomination used in the currency.
Rounding rules example
Precision -> 2.
Minimum accountable unit is .02
Rounding rule unit Price rounds to
up 3.444,3.445,3.446 3.45
down 3.444,3.445,3.446 3.44
nearest 3.444
3.445
3.446
3.44
3.45
3.45
If allow over ride is enabled, one can specify the tax calculation and tax rounding both at the customer
level (or) site level.
3) Tax default and rules tab:
 Enforce tax from revenue account
 Calculate tax on credit memo during auto invoice
Tax code defaults Hierarchy
Customer site 1
Customer 2
Product 3
Revenue account 4
System option 5
Tax code
Exception Rates
Use customer Exemptions
Use item Exemptions (B)
Use item tax rate Exception (G)

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 If enforce tax from revenue account is enabled then it is optionally set up one’s system to
ensure that the tax code from one’s invoice lines “is same” as the tax code one has assigned to
the account segment for one’s “revenue account”.
 Enable calculate tax on credit memo during auto invoice if one want to calculate tax on credit
memo automatically during the importing of credit memos using auto invoice.
 Tax code defaults -> one can enter the hierarchy by entering the sequence number for each.
This hierarchy determines the order in which receivables derive the default tax rate when one
manually enters transaction or during running “auto invoice Program”.
 Exception rates:
 Enable Use customer Exemptions to one can include customer exemption for when calculating
tax for one’s transaction.
 Enable use item Exemption one can include item exemption for calculating tax on one
transaction.
 Enable use item tax rate exception when one uses tax rate one define for specify Product for
based on customer ship to address
Trans and customer tab:
 Allow change to Printed transaction (J)
 Allow payment of unrelated transaction (Q)
 Allow transaction Deletion (K)
 Show billing number (Z)
Document number generation level
Auto invoice
Tuning segments
Accounting flex: Account
When saved

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System items : Item
Territory : Area
Max memory (in bytes) 131070
Log file message level 3
Purge interface tables
Customer
 Automatic Customer numbering
 Automatic site numbering
 Create reciprocal customer
Grouping rule name default
Enable allow change to Printed transaction – one can update the transaction that have been Printed.
 Enable allow payment of unrelated transaction – one can allow receipt application to debit
items of unrelated customers (or) to allow bills receivables assignments to transaction of
unrelated customers.
 Enable allow transaction deletion – one can delete transaction after they have been saved.
 Enable allow billing number – By doing this receivable assigns a unique invoice billing number
when one print a draft or final version of one’s consolidated billing invoices.
 One can select the point when invoices generate a document number for ones transaction.
 There are 3 document number generation level.
 None
 When completed
 When saved
“Auto invoice”
 Process of transferring the transactions from other system (OM 0r Legacy system) into AR.
 One has to enter the accounting flexfield, system items and territory flexfield segments that are
most often selected by auto invoice.

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Enable automatic customer numbering –by during this system will assign a unique number to every
new customer.
Enable automatic site numbering – system will automatically assign number to one customer business
purposes.
Enable create reciprocal customer – by doing this one can create the reciprocal relationship during
customer.
E.g. A and B are customer .A pay for B likewise B can Pay for A. Now A and B are related.
Grouping rule name:
 One can enter the default grouping rule name which the auto invoice will use.
 The auto invoice will use this rule to group revenue and credit transaction, debit memos and
credit memos.
Miscellaneous Tab:
Split amount Discount basis:
Auto cash rule set
Days in day sales
Outstanding calculation
Sales credit percent limit ->
Write off limits per receipt
Allow interest Require billing location for receipts
Allow unearned discounts Print remit address
Discount on partial payment Point home country
Trade accounting installed
Bills receivable enabled
2500
Invoice amount
standqrd
90
100
3000

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Require sales person
Minimum refund amount
Credit card payment method
Bank account payment method
Auto receipts
Invoices per commit receipt per commit
Chargeback due date open invoice due date
Default country United States
Source of territory salesrep
Application rule set Line and tax Prorate
By specifying split amount, the system will determine the number of invoices over and under this
amount as well as the total amount outstanding.
Discount Basis -> Receivables will use this value (lines only) as default discount basis in payment terms
windows other discount basis.
 Line only
 Invoice amount
 Lines, freight items and tax
 Lines and tax, not freighting items and tax.
Lines only -> The system will use only the line amount of one’s invoices for calculating the discount.
Lines, freight item and tax -> The system will use the line items, freight and tax of one invoice but not
the freight and charges at the invoice header level as the basis for calculating discount.
Lines and tax, not freight item and tax-> The system will use the line item and tax amount but not the
freight items and tax lines for one’s invoices as basis for calculating discount.
Invoice amount-> system will sum the tax, freight charges and line amounts of one’s invoice and use as
basis for calculating the discount.
500 500

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Auto cash rule set:
Receivable will use this field when one enter receipt for the customer “whose Profile class has not
been assigned” on the auto cash rule set.
Days in day’s sales outstanding calculation: The number of days when one enters here will be used
while calculating one’s conventional days sales outstanding for the collection effectiveness indicators
report.
The formula used for calculating the days outstanding.
Conventional days
Sales outstanding = Total outstanding receivables DSO Days
Total sales for last DSO days
DSO days -> “Days outstanding”
Sales credit percent limit: One can specify the limit on the percentage of revenue plus nonrevenue,
sales credit that sales person can have on any transaction line.
Write-off-limits per Receipt -> one can specify the range for write-off-amounts.so that one cannot
write off less than or greater than the amount one specify here
Enable accrue interest -> receivable will update the balance to the finance charges of our transaction
that are positive.
Enable require billing location for receipts -> receivable will associate a built location to cash receipts.
Enable allow unearned discounts-> receivables will allow the customer to take discounts even if he
pays after the expiry of credit period allowed.
Enable Print remit to address-> when one enables this, receivable will Print remit to address on the
customers statement.
Enable discount on partial payment -> Receivables will discount on partial payment that is the
customer is making us payment which is less than the amount outstanding for a transaction.

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Enable Print home country -> System will print the home country on one’s invoices and statements.
Enable trade accounting installed -> When one wants to use the trade accounting features then one
has to enable the check box for this one has to use the responsibility of “AR trade accounting”.
Minimum refund amount -> Auto invoice automatically, create refunds for credit memos that are
imported against paid invoices Provided the request amount are equal or greater than the minimum
amount that one specify here.
Credit card payment method -> By selecting the default payment method, one can pay the transaction
through credit card.
Bank account payment method -> “ACH” one has to attach the default payment method which is to be
paid on the “Automatic clearing house” bank account transfer.
Require Sales person -> one can enter the sales person while entering transaction.
Auto receipts:
 Invoice per commit -> one has to enter the number of invoices. One want to Process in the
automatic receipts Program.
 Receipts per commit -> One has to enter the “number of receipts” one wants Process in the
automatic receipt Program.
 Change back due date -> one has to enter the default charge back due date. The options are.
 Current date: use today’s date as current date.
 Deposit date: Use date of receipt deposit as a default date.
 Open invoice date: use date of the invoice (or) debit memo as default date.
 Receipt date: use “date of receipt” one enters as default date.
 Default country -> Receivables will use country one enters here as the home country for tax
calculation, flexible bank structure, flexible address format and tax country and tax registration
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 Source of territory -> Receivables will use one territory enter here to default into sales person
transactions and customer window.
Values are
 Bill to site -> Receivable will use the customer bill to address as default.
 None -> need not enter default territory.
 Sales rep -> receivables will use the territory which has been assigned to the customer as the
Primary sales person default.
 Ship to site -> Receivables will use customer ship to address as default.
 Application rule set -> One has to attach the application rule set which will determine the
default payment steps. When one use the application window post the cash to apply receipts.
 Line and tax Prorate
 Line first – Tax after
 Prorate all
NOT USED IN AR – When ORDER MANAGENENT is used consider these tabs.
6) Revenue policy tab:
Standard refund policy days
Payment term threshold days
Select credit classification for deferring revenue.
First selection :
Section Selection:
Third selection:
7) Claim tab:
Lock box and post quick cash claim handling
Unmatched remittance line:

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Prepare for claim creation
Negative lines
Positive lines
Matched remittance line:
Prepare for claim creation
Exclude credit memos
Payment terms:
It decides the payment schedule and discount information.
Predefined payment term
1. Immediate
2. 30 net
Other payment terms include
3. Fixed date payment term
4. Installment payment term
5. Proxima payment term
Navigation: setup; transaction; payment terms
AR collectors: Setup; collections; collectors
Collectors who are involved in collection activities.
8) Customer Profile class: - 3 tabs
Customer Profile class enables one to default many of the values such as collectors, Receipts
parameters, statement parameters, dunning parameters, payment terms parameters, finance charges
parameters, invoicing and consolidated billing format.
Tab 1) Profile class
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2. Receipts
3. Statement
4. Dunning
5. Terms
6. Finance charges
7. Invoicing and consolidated billing format
Tab 2) Credit Profile
1. Classification
2. Periodic review cycle
3. Analyst
4. Tolerance
Tab 3) Profile class amounts
Currency rates and limits. They need to maintain one’s customer and one can group customer with
similar characteristics into one’s particular class.
Navigation:
Customer; Profile class
Customer Profile classes:
Name Active
Profile class Credit Profile Profile class amount
Click Profile class
Collectors Terms
Name Payment term :
Allow override Allow discount
Discount Grace days
PR CUS PROF CLS PR Customer Profile
class
PR Collector PR IMMTR
0

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Receipt Grace days
Receipt
Match Receipts By
Auto cash rule set
Remainder Rule set
Auto receipts include disputed items
Finance charges
Charge interest
Compound interest
Days in period
Statements
Send statements
Send credit balance
Cycle
Invoicing
Tax Printing
Grouping rule
Dunning
Send letters
Letter set
Consolidated billing formats
Enable type
Click credit Profile
Classification
Periodic review cycle
Analyst
Tolerance %
Credit check
Tab 3
Currency rates and limits
USD finance charges interest rate
0
360
monthly
European tax format
default
Standard
detail
0
Profile class amounts
10%

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 Max interest per invoice
 Min customer balance for finance charges
 Min invoice balance for finance charges
 Min receipt amount
 Min statement amount
 Min dunning amount
 Min dunning invoice amount
 Credit limit
Order credit limit
a) Cycle may monthly, quarterly, weekly, yearly.
b) Letter-set: Standard, Standard staged
Standard letter set Standard letter set for staged dunning
Staged – No fin CHG -> standard no finance charges
CH – standard -> Standard dunning let set vision Switzerland
Credit Profile
1. Classification -> credit classification such as
a) high risk
b) low risk
c) moderate risk
2. Periodic review cycle -> This review cycle specifies how often “one has to perform credit review” in credit
management.
3. Analyst -> One has to select the default credit analyst for the customer Profile class to do the credit review
4. Tolerance -> One has to enter the credit check tolerance (ie) percentage check over the credit limit.
When credit check enabled, oracle order management will check the customer credit before creating a new
order.
Tab 3: Profile class amounts

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 Finance charges -> this interest rates which will be the customer
 Max interest per invoice -> receivable will charge only if the calculated interest amount is
greater than the amount entered.
 Min customer balance for finance charges -> receivable will apply interest only if the balance is
more than the one specified here.
 Min invoice balance for finance charges -> receivable will apply interest only if the positive
invoice balance is more than the amount one specify here.
 Min receipt amount -> Receivables will generate automatic receipt only when the receipt
amount is more than the one specified here.
 Min statement amount -> receivables will generate the statement for the customers only when
the customer amount balances is more than the one specified here.
 Min dunning amount -> receivables will generate the dunning letter for the customer only if the
positive balance is more than the amount one specified here.
 Min dunning invoice amount -> receivables will generate the dunning letter for the customer
only if the debit balance of each positive item is more than the amount one specify here.
 Credit limit -> one has to enter the credit limit here.
Order credit limit
Click save and close
Allow natural application: Invoice 100. Max allow to Rs.100 only.
9) Tax location and rates:
One can enter the location and the associate tax rates in the tax location and rates window.
Receivables use location such as
1. State
2. Country
3. City
And associates tax rates to create tax authorities.
It also uses the location to validate customer address.
Navigation: setup ; tax ; locations
Find State Find

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Location
State Description Tax amount
PR STATE PR STATE PR-000-2520-0000-000
Rate
Tax rate% Override from To from To
5% 01 Jan 07 - 00000 99999-9999
Click just to view
Then select country and attach the state
Just defined
Find Given state
Location
Country Description Tax account
PR country PR country
RATES
Effective dates Postal codes
Tax rates% Override from to from to
3 1 Jan 2011- 00000 99999-9999
Then select city and attach the country just defined
Find Given country
Tax accounting
country PR STATE
Find
City PR
COUNTRY

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Customer standard, address and business purpose level:
Defining customer:
Generally customer is one who we enter transaction for sale of goods and services.
a) Customer standard level
Where we
1) Select customer type
2) Define name of the customer
3) Classification – attach the Profile class for our customer
b) Address level
1) Enter the address
2) Attach the location -> State, country, city
c) Business purposes level
 Bill to
 Ship to
 Statement
 Dunning
 Legal and marketing
Profile transaction
Attach the Profile class.
Navigation for defining customer is
Customerstandard.
Transaction types: One can use the transaction types to
1. Assign the payment terms,
2. revenue account,
3. tax account,
4. Freight account and
Find

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5. Creation sign for one’s account receivables transaction.
The customers balance and create journal ledger transactions. One can define the following transaction types,
namely
 Invoices
 Debit memo
 Charge back
 Credit memo
 Commitment
 Deposit
 Name
 Class
 Open receivables Post to GL
 Transaction states
 Allow freight
 Tax calculation
 Creation sign
 Natural application only
 Allow over application.
Navigation: SetupTransactionTransaction types
Transaction types (recievables vision operation USA)
Operating unit vision operation:
Name: PR invoice Description: PR invoice
Class invoice open receivables Post to GL
Printing options: Print
Transaction status: open
Allow freight
Creation sign: Positive sign Tax calculation

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Application rule set Natural application only
Invoice type Allow over application
Start date : 1 jan 2011 credit memo date:
End date:
Accounts Bill receivables deposit:
Click account tab:
Receivable a/c: Pr-001-0001-0000-0790 freight a/c:
Revenue a/c: PR-110-9003-0000-000 Clearing a/c: Pr-110-1250-000-000
Name of invoice in name.
Class as invoice from the following
 Bill receivables
 Chargeback
 Credit memo
 Debit memo
 Deposit
 Guarantee
 Invoice
Open receivables and post to GL are enabled by default if open receivable check box is disabled, then
the customer balance will not get updated.
If post to GL ids disabled, the balances will not be posted to GL.
The open receivables and post to GL check box is used to approve hierarchy.
Printing optionPrint (or) do not Print
Transaction status is required to implement the invoice approval system
Closed – where the money is received
Open - which the customer has not made payment
Pending – the higher authorities have not approve payment

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Void - the transaction will cease to have any effect.
 Enable allow freight will allow to enter freight
 Enable tax calculation will allow to calculate tax
 Creation sign can be
a) Positive sign b) Negative sign c) Any sign
Natural application only /allow over application
Any one check box should be enabled both check boxes add control to determine how applications can be
effect balances remaining on a transaction.
If natural application only check box is yes and allow over application is NO then even if one receives excess
money than the balances due from the customer, then it will consider only to the balance due not the excess
amount.
Open receivables and post to GL is seen and now we see the relevant transaction
Open receivables Post to GL
Relevant transaction types
Data entry operator
Account receivables manager
Account Manager
Transaction Sources
It controls the standard transaction types which are assigned to the transaction whether the
receivables automatically numbers one transaction batches or not
 Name
 Numbering details
 Copying the numbers

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Navigation: Setuptransaction source
Transaction source:
Operating unit: Vision operation
Name: PR source Type: manual
Batch source tab:
Description PR source
Active
Automatic transaction numbering
Automatic batch numbering
Copy document number to transaction number
Copy transaction information flexfield to credit
Effective date : 1-jan-2008 to
Last number : 99
Last number :999
Receipt handling for credits
Reference field default value interface attribute 1
Standard transaction type PR invoice
Credit memo batch source
 Name the source and enter the description.
 Typemanual & imported
 If imported when one has to import transaction into receivables using order invoice.
 If one want to give the automatic batch number, enable the automatic batch number and give
the last number used.
 Similarly, give for automatic transaction numbering.

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 When one want to use the same number for both document number and transaction number
then one can enable this check boxcopy document number to transaction number.
 When one want to copy invoice, transactions information flexfields data to a related credit
memo that use this copy transaction information flexfield to credit memo check box.
Entering the transaction
To enter the transaction, one can use the transaction window to enter invoices, debit memo; credit memo and
commitment .one can also query and update one’s transaction in the transaction window.
We can give header level details like...
1. Source
2. Transaction number
3. Class of transaction
4. Type of transaction
5. Date
6. Currency
7. Terms
8. Ship TO details
9. Bill To details
Then enter the line level details
1. Item select
2. Description
3. Give the unit of measurement
4. Quantity
5. Unit Price
6. Amount
7. Tax code
Finally complete the transaction
Navigation: Transaction transactions
Transaction line Freight
Entering a transaction with freight
Header level:
 Enter the level details

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 Enter the header level freight
 Enter the line level details
 Complete the transaction
Line level:
 Enter the header level details
 Enter the line level details
 Enter the line level freight
a. Entering the transaction information with freight either at the header level or line level when freight
charges have been incurred
for all the invoices lines, we enter the freight charges at the header level. At the header level we enter
the header level details header level freight, line level details and finally complete the transaction.
b. When freight charges have been incurred for specific invoice line, then we use enter freight charges at
lines level. At the line level, we enter the header level details; line level details line transaction freight and
finally complete the transaction
Example: Transaction with freight:
Sales invoice
Customer name:
Address details: PR Customer Invoice no:
Tax Registration: Invoice date:
Payment term: PRIMMTR
Sno Item Qty Rate Amount (USD)
1 PRITEM 75 1000 75000
2 Tax
3 Freight 1570
Total: 76570

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Debit memo:
Debit memos are used to bill a customer for additional charges in relation to a previously invoice
sale.
Memo lines:
These may be other range of situation in which we have to use debit memos. Such when one wants
to bill the customer for charges, freight and tax in such situation, one can use memo lines.
 DEBIT MEMO WITHOUT MEMO LINES:
 SET UP THE TRANSCATION TYPE OF DEBIT MEMO.
 ENTER THE TRANSACTION TYPE AS DEBIT MEMO.
 FINALLY WE CROSS REFERENCE A TRANSACTION TO DEBIT MEMO IS LINKED.
NAVIGATION: Setup; transaction; transaction type
DEBIT MEMO WITH CHARGES
 Setup; transactions; memo lines.
 Standard memo lines
 Operating unit: vision operations
 Name: PR charges memo line
 Description: PR charges memo line
 Type: charges
 Active date: 1 –Jan -2011.
 Click save and close.
Attach this memo line by creating a transaction in the transaction window and attach this memo line charges
in the description of the line item window.
Click save and close.
In more tabs attach another transaction in the cross reference and complete the transaction by clicking the
complete button.
NUM ITEM DESCRIPTION UOM QUANTITY UNIT PRICE
1 PR CHARGES MEMO LINE 1 10000

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Click details button to view the balances in detail.
2) Credit memo:
A credit memo is used to reduce the charges which are related to previously invoice sale. A credit memo
decreases the account balance by the credit memo amount.
 Setup the transaction type.
 Enter a credit memo.
 Complete the transaction.
 Query the transaction
 Apply either the % or amount.
 Apply the whole as credit memo.
 Split term method
 FIFO
 LIFO
 PRORATE
 Setup the transaction type: PR CREDIT MEMO
 As we create the debit memo before, similarly credit memo with creative sign: negative (to
reduce the customer balance).
 Enter a transaction for the class credit memo.
 Select the source: transaction source PR source
 Select the class as credit memo & type as PR credit memo.
 Give the date & GL date & currency.
 Select the customer (PR customer), so that the ship to and bill to details get filled up.
 Click the line details to give the negative amount.
NUM ITEM
DESCRIPTION
QUANTITY UNIT PRICE AMOUNT
1 FESTIVE OFFER -500.00
Click save & close the line window.
Complete the transaction by clicking the complete window.
Click details to view the details of the amount and we can see the negative amount to indicate the reduction
amount in customer balance.

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ANOTHER METHOD FOR CREDIT MEMO:
Retrieve the existing transaction with class as invoice and immediate payment term and balance due is
10,000.
In order to reduce the transaction balance
Go to menu actions credit
It will go to the credit transaction window.
Credit transaction (vision operation: USD) PR, customer new.
Credited transaction
NUMBER 2975 1021 SOURCE PR SOURCE
CREDIT MEMO
Batch: none batch name
Source PR source date: 1-nov -2011 complete transaction
NUMBER 1052
Reference type: PR credit memo
Reason
GL date: 1-nov-2011 rule method: split term method
Currency: USD
TRANSACTION
AMOUNT
MORE
Transaction amount tab
Credit memo credit transaction
LINE TAX FREIGHT % AMOUNT ORIGINAL BALANCE DUE
3.8464 -2000 52000 50,000

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TOTAL 3.8462 <2000.0> 52000 50,000
COMPLETE CREDIT BALANCE CREDIT LINES
We can either specify the percentage or –ve amount.
If we specify the –ve amount, it will automatically calculate the “%”.
Click complete button to complete the transaction.
It automatically generates the transaction number 1052.
Close the window.
Click on the refresh button in the 1021 invoice to see the reduction in the balance due amount.
Click details to view the details of the amount.
Credit balance:
Another way to reduce the entire amount of the transaction is by clicking the credit balance. It
displays the message box.
APP-AR-11641
The balance amount of the transaction has been credited. Please save your changes &
complete the credit memo. OK
Click ok & save.
We can see the following transaction amount
LINE TAX FREIGHT
% AMOUNT ORIGINAL BALANCE DUE
100.000 -10000.00 10000.00 0.00
100.000 0.00 0.00 0.00
0.00 0.00
TOTAL 100.000 -10000.00 10000.00 0.00
WE CAN SEE THE BALANCE DUE REDUCED TO ZERO.
Credit lines button:
Another way to reduce the amount is by clicking CREDIT LINES. Button on the credit transaction
window.

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N
U
M
ITEM
DESCRIPT
ION
U
O
M
QUANTI
TY
UNI
T PR
ICE
A
M
O
U
N
T
TAX CODE
Commitments / Deposit:
Deposit is an advance from customer against supply & goods. The customer agrees to
deposit an amount on the ordering of goods.
 Setup the transaction type of class deposit
 Enter the header level details of transaction of class deposit.
 Enter commitment details.
 Complete the deposit transaction.
 Enter the regular transaction
 Attach the commitment to the transaction.
Navigation; Transaction; Transaction Type
Operating unit. Vision OPERATION
Name. PR Deposit Description PR Deposit
Class. Deposit open receivable post to GL
Printing Option Print
Transaction Status Open
Allow freight Tax Calculation
Creation Sign. Positive Sign Natural Application only
Application Rule Set Allow over application
Invoice Type.PR Invoice Credit memo Type
Start Date 1 Jan 2011 End date
Allocation Basis Lines only
Receivable Account
Offset Account.PR-110-1210-0000-000
GL Account Description PR-110-8300-0000-000

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 Select the class as Deposit and
 Uncheck the allow freight and tax calculation
o Click save and close.
 If Line, Tax and Freight is also selected from the Allocation basis, then also Allow freight and Tax
calculation is disabled, we can’t select it.
 Now enter the transaction in the transaction window. Select the transaction source, class
deposit Type, ship to Name. Give the GL date, Date, Currency.
 Give the Line Details in the Line window by clicking the Line details button.
 If the class->Deposit is selected, a commitment Tab is displayed. In the commitment Tab, Give
the follow details or amount and date.
Commitment Tab.
Effective date 10-nov-2011
Amount.5000.00
Item.
Memo line
Description Advance Payment
Transaction
The invoice Number 1034 is entered on 10-Nov-2011 or Date is 10-Nov-2011.
See, you have entered a transaction with deposit as class but now enter the transaction with class as
invoice and Line amount as 20,000.
Now attach the Deposit Transaction Number 1034 to the Commitment field in the main window.
Commitment->1034
Click save and complete.
On completing the transaction, we can see the balance amount as 15000.
Click details button to view the details.
Commitment –Guarantee:
A guarantee is a documentation of a Promise made by the customer to obtain the goods from the
organization. In this case, no money is received from the customer.
 Setup the transaction type of class guarantee.
 Enter the header level details of transaction of class guarantee
 Enter the commitment details
 Complete the guarantee details
 Enter a regular transaction

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 Attach the commitment to the transaction.
 Setup the transaction type of class guarantee
 Create a transaction type PR guarantee with class guarantee and give remaining values as given
for the PR debit memo.
 Enter the transaction type of class guarantee in the transaction window.
 Select the transaction source, class as guarantee, type as PR guarantee, ship to name as PR
customer.
 Give date (1 nov 2011) ,GL date, currency & payment as immediate.
 Give commitment amount and date in the commitment tab as 1 nov 2011 &5,000.0
 Save and complete the transaction.
 Now enter another transaction of class->invoice, type->PR invoice and balance due for the
particular transaction is 20000.
 Now attach the guarantee transaction number (1035) in the commitment field of the regular
invoice transaction & complete the transaction. Now still we can see the balance due amount
as20, 000 even after applying guarantee. so, guarantee is nothing but a documentation of
Promise made by the customer to obtain goods from organization.
 Click save & complete the transaction.
 Click the details button to view the details of transaction. Here we can see a new field.
Applied to commitment 5,000 will be displayed.
Consolidated billing invoice:
One can print a single monthly bill, which includes all customer transaction for a particular period.
In this case, we will go for a consolidated billing invoice. There is no need separate invoice foe each
transaction.
Prerequisite for consolidated billing invoice.
 Enable show billing in system option -> Trans & customer tab.
 Attach the Proximal payment term in the customer Profile class.
 Enable consolidation billing formats in customer Profile class -> save the class.
 Enter a transaction with Proxima payment term.
 Enter more transaction by using action-> copy to from the menu bar. Or
 Run the Program –Print draft consolidated billing invoice.
 After selecting the entire Prerequisite enter the regular invoice transaction with payment term
as Proxima payment and give the line details and complete the transaction.

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 Select action->copy to from the menu bar, it displays the copy transaction window. OR
 Transaction -> copy transaction & give Tran’s number.
 Copy transaction (vision operation)
Model transaction:
Source PR source Trans number: 1036
Currency USD reference:
Bill to PR customer number: 4090
Term: PR Proximal type: PR invoice
Date: 1-nov-2011 transaction amount: 13440.00
Due date: 20-nov-2011 GL date: 1-nov-2011
------------------------------------------Schedule--------------------------------------------
Rule days number of times: 5
Number of days: 1 1 st transaction date: 1-nov-2011
First GL date: 1-nov-2011 request ID: 2764851
New transaction discount number
TRANSACTION
NUMBER
TRANS DATE GL DATE DUE DATE AMO
UNT
1037 1 NOV 2011 1 NOV 07 20 NOV 07 13440
1038 2 NOV 2011 2 NOV 07 20 NOV 07 13440
1039 3 NOV 2011 3 NOV 07 20 NOV 2011 13440
1040 4 NOV 07 4 NOV 07 20 NOV 2011 13440
1041 5 NOV 07 5 NOV 07 20 NOV 2011 13440
o On saving, it will generate the 5 new transaction number generated having different
transaction date, since the number of days is 1, and also it creates a new request ID.
 Now, run the Program->consolidated billing invoice.
 Click Print document-> consolidated billing invoice.
 It displays a new window. Select a single request and click ok.
 This allows submitting an individual request.
 It displays the Print consolidated billing invoice window.
 Print consolidated billing invoice.
 Run this request.
 Name:”Print draft consolidated billing invoice:
 On selecting this, it will create new window-parameter
 Parameters
Customer 4090 PR customer
Bill of date 9684 PR customer

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Cut of date 15 Nov 2011
Last day of month no
Payment term: PR Proximal
Currency: USD
Type->detailed consolidated billing invoice (summary also available)
Pre-Printed stationery: no
OK CANCEL CLEAR HELP
Click OK & submit the request.
(1) A request ID is generated .check whether request is completed by going on the
(2) View->request->find.
ii) Click view output button to view the output. We can see consolidated report for various dates.
iii) Close the report as well as request.
Transaction batches:
 One can enter many transactions in a single batch.
 One can view the differences between the control and actual totals as one enters the
transaction.
 This will alert the data entry operator about the data entry error or missing or lost transaction
or duplicate entry.
 Enter a transaction batch.
 Enter the count.
 Enter the amount.
 Enter individual transaction.
 View the transaction summary.
Navigation: transaction: batches.
Transaction batches: PR Tran bat
Source: PR sources
Name: 100 ->transaction batch number generated on sources.
Batch date: 1 nov-2011
GLdate: 1- nov-2011
Currency: USD
Status: new

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Comment
Partially purged
Totals
Count amount
Control 3 300000.00
Actual 3 300000.00
Difference
Transaction summary transaction
There are 4 statuses
i) New->
ii) Open->
iii) Closed->
iv) Out of balance->
If control total is 3 & amount 300000 then enter 3 transactions by clicking. TRANSACTION button & the total
amount of 3 transaction should be 300000.00 if it is more than 300000 on then we can change the amount.
If 1 transaction is entered, then it transaction batch window, it shows the difference as 2.
Control 3 300000
Actual 1 100000
Difference 2 200000
Now change the status manually from new to out of balance, till the difference is zero.
After entering 3 transaction & the amount equal to 300000.
Control 3 300000
Actual 1 100000
Difference 0 0
When we change the status to OPEN the actual count & the amount is equal to the control count &
amount.

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We change the status to CLOSED when the actual count & the amount of the transaction. Equals
control count & amount & each transaction in the batch is closed by applying receipt against it.
Click TRANSACTION SUMMARY to view the individual transaction.
Invoice with rule-accounting rules
Accounting rules determines the total revenue record in each accounting period.
3 accounting rules
1. Fixed duration
2. Variable duration
3. Deferred duration
Fixed duration:
 Accounting rule & type is of fixed duration.
 AR will prorate revenue recognition evenly over a Predefined period of time.
Variable duration:
 Accounting rule & type can be of variable duration.
 One has to specify the number of period in which one wants to recognize revenue for which
one assigns this rule of accounting.
Deferred duration or variable deferred:
 One can use the deferred accounting rule by enabling the “deferred revenue check box” in the
INVOICING & ACCOUNTING RULES.
 Window when one defines this rule. One can use this deferred accounting rule to recognize the
revenue by different %s over a period of time by using action wizard.
 One can use deferred accounting rule only for invoices that assign the bill in advance invoicing
rule.
FIXED
NAME TYPE
PERIOD NO .OF PERIOD
VARIABLE
NAME TYPE
PERIOD NO .OF PERIOD

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DEFERRED
NAME TYPE
PERIOD ENABLE DEFERRED REVENUE
NAVIGATION: Setup: transaction: accounting rules.
Invoicing & accounting rules (AR vision operation (USA))
Name: PR fixed acct rule description: PR fixed account rule
Type: accounting fixed duration active
Period month No. of periods: 5
Deferred revenue
Schedule
period Percent date
1 20
2 20
3 20
4 20
5 20
Total 100
Click on the schedule period to display the period automatically.
Click save & close.
Variable duration accounting rule:
Name: PR variable acct rule description: PR variable account rule
Type: accounting variable duration active
Period month no. of periods: 1
Deferred revenue
Period % date
1 20
Total 20
Save the accounting rule;
The number of periods will be sat to 1 automatically.

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Variable deferred accounting rule:
Name: PR def variable acct rule description: PR deferred account rule
Type: accounting variable duration active
Period month no. of periods: 1
Deferred revenue
Period % date
1 100
Total 100
Save the accounting rule;
 The number of periods will be set to 1 automatically.
 We need this rule when we enter transaction with invoicing new rules.
 Invoicing rule-> in arrears – fixed
 These rules define when to recover the receivables, expand more than 1 accounting period.
 Invoice rule-in arrear with accounting rule fixed 1 has to use this rule to recognize the
receivable at the end of the revenue recognition schedule.
Enter a transaction:
 Attach the invoicing rule-in arrears at the “header level”
 Attach the accounting rule –fixed duration at the “line” level complete the transaction.
 Run the revenue recognition Program.
 Finally view the journal entries.
 Now transaction: transaction.
 Select the source, class as invoice, type as PR invoice, customer.
 Give the date, GLdate, currency.
 Select the invoicing rule –in arrears
 Invoicing rule in arrears
 Rules tab is also added in the line window.
 Click on the LINE ITEM button.
 Line window->main tab.
Num item description uom quantity unit Price
1 PR item 2 wheeler each 100 100
Amount location

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10,000.00 exempt. Click RULES TAB.
Num Item description Accounting Duration 1 st date
1 PR item 2
wheeler
PR fixed acct
rule
5 1-nov-2011
Click saves & close this transaction while saving gets a note saying
APP-AR-11426------transaction date has been set to 1-mar-2011
OK
Click OK & also it says.
APP-AR-11425------GL date has been set to 1-mar-2011
OK
Click OK & close the lines window & complete the transaction.
Balance due is 10,000.
In order to view the accounting entries, run revenue recognition Program.
Note: transaction num 1057.
Run the Program.
Control > accounting > revenue recognition
Enable single request > radio button & click OK.
RUN this request-----
Name: revenue recognition on selecting this it will ask for parameters window
Parameter
Print format DETAIL
Commit work YES
OK CANCEL CLEAR HELP.
Click OK & SUBMIT.
Once the request is completed, click view output.

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Go to transaction num 1057 in the query mode of transaction window & execute by Pressing ctrl+F11 key.
Click view > accounting to view the journal entries
Line type Account Debit Credit
receivable PR-000-1210-0000-000 10000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
ROUNDING DISTRIBUTION PR-000-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00
UNBILLED RECEIVABLE PR-000-1232-000-000 2000
UNBILLED RECEIVABLE PR-000-1232-000-000 10,000
 INVOICE RULE (II) in arrears with accounting rule variable.
 Invoicing rule-in arrears with accounting rule variable.
 Enter the transaction -attach the invoicing rule –in “arrears “at the header level.
 Attach the Accounting rule –“variable” duration at the line level.
 Complete the transaction.
 Run the REVENUE RECOGNITION PROGRAM.
 View the journal entries.
 Enter the transaction as regular invoice transaction but select invoicing rule as in arrears.
 Invoice rule: in arrears
 Click line item button to enter the like item details & accounting rules.
 Go to rule tab select the accounting rule as accounting:PR VAR ACCT RULE
Rule tab
Num Item
description
Accounting Duration 1 st date
1 Pr item 1 2
wheeler
PR VAR ACCT
RULE
5 1-NOV-2011
CLICK SAVE. On saving it displays a 2 note as we get while entering Previous invoices [(i.e.) in arrear fixed date
invoices]
Save & complete the transaction.
Run the revenue recognition Program to view the journal entries.
Journal entries.

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LINE TYPE ACCOUNT DEBIT CRED
IT
RECEIVABLE PR-000-1210-0000-000 20000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
ROUNDING
DISTRIBUTION
PR-740-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 4000
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 4000
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 4000
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 4000
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 4000
UNBILLED
RECEIVABLE
PR-000-1232-0000-000 20,00
0
 INVOICE RULE (III) –IN ADVANCE FIXED.
 INVOICE RULE –IN ADVANCE with accounting rule fixed.
 Enter a transaction
 Attach the invoice rule –in advance at the header level.
 Attach the accounting rule – fixed duration at the line level.
 Run the revenue recognition Program
 View the journal entries.
 Enter regular transaction attach the invoicing rule in the transaction window
 Invoice rule: in advance
 Payment term: PR IMM TR.
 GIVE THE Accounting rule in the Accounting tab.
Num Item
description
Accounting Duration 1 st date
1 Pr item 1 2
wheeler
PR VAR ACCT
RULE
5 1-NOV-2011
Click save, it displays 2 note click OK for those 2 notes & close the lines window.
Run the revenue recognition Program to view the journal entries.
Query the transaction 1056 & view the journal entries from the tools menu.

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LINE TYPE ACCOUNT DEBI
T
CRED
IT
D
E
T
A
I
L
RECEIVABLE PR-000-1210-0000-000 2000
0
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000
1
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000 1
ROUNDING
DISTRIBUTION
PR-740-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00 1
1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000 1
1
1
UNBILLED RECEIVABLE PR-000-1232-0000-000 20,00
0 1
11) Invoice rules IV: in advance –deferred
1) Invoicing rule-in advance with accounting rule-deferred.
2) Prerequisite: at the system option level. Enter the sales credit Present limit (100) & enable require sales
person in sales credit Present limit (100) miscellaneous tab.
3) Enter a transaction
 Attach the invoicing rule- in advance at the header level.
 Attach the accounting rule-deferred at the line level.
4) Run the revenue recognition Program.
5) Run the revenue accounting Program.
 Enter the scheduling revenue.
 Enter the transfer sales credit.
6) View journal entries.

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 Enter the transaction with invoicing as in advance.
 Give the accounting rule in line details window.
 Rules tab: accounting: PR def VAR rule.
NUM ITEM DESCRIPTION ACCOUNTING DURATION FIRST DATE
1 PR ITEM 2 WHEELER PR DEF VER RULE 5 01 NOV 2011
 Click save & close line window
 Run revenue recognition Program
 Po control: accounting: revenue recognition: revenue
 Click revenue recognition & ok.
4. View the journal entry by tools - view accounting
View the journal entry.
receivable PR-080-1210-0800-000 10000
ROUND LINE PR-740-7827-0800-000 0.00
TAX PR-000-2520-0000-000 0.00 1 1
UNEARNED REVENUE PR-000-2550-0000-000 10000 1
THE REVENUE IS NOT ALLOCATED TO TRANSFER A PERCENTEGE OF UNEARNED REVENUE TO REVENUE IN THE
REVENUE ACCOUNTING WINDOW.
RUN THE REVENUE ACCOUNTING PROGRAM.
Control: Accounting: revenue accounting.
Find transaction window is opened.
Give the transaction number1059.
Transaction no: 1059
Select customer.
Click find.
It display revenue accounting & sales credit window revenue Accounting & sales credit-PR customer
TRANSACTION ACTION HISTORY
In transactions

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LINE TYPE ITEM
DESCRIPTION
CATEGORY AMOUNT SCHEDULED UNSCHEDULED
1 PR ITEM 1 2
WHEELER
10000 0.00 10,000.00
RULE DURATION
PR DEF VAR RULE 2
LINE DISTRIBUTIN
GL DATE AMOUNT % CLASS ACCOUNT
1 NOV 2011 10,000 100.00 UNEARNED
REVENUE
PR-000-
2550-
0000-000
HERE we can see that the amount is NOT SCHEDULED. To schedule the amount
Click action button
A window pop us
 Choose 1 of the following
 Unscheduled revenue
 scheduled revenue
 transfer sales credit
 add non revenue sales credit
 record acceptance
 CANCEL BACK NEXT
CHOOSE scheduled revenue & click NEXT button.
A window to choose the amount or % of revenue to be displayed.
Choose the amount or % of revenue u wish to adjust.
TRANSACTION CURRENCY USD
TOTAL VALUE OF SELECTED LINES 10,000
ADJUSTABLE REVENUE 10,000
All adjustable revenue (z)
% of total value of selected lines(y)
Amount
Select any 1 radio button & click NEXT button.
NUMBER 1080 TYPE PR INVOICE REVENUE
SCHEDULED
SOURCE PR SOURCE DATE 1 NOV-2011 UNSCHEDULED 10,000.00
REFERENCES CURRENCY USD
CUSTOMER NAME PR CUSTOMER ACTIONS

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Here we select % & total value of selected lines radio button & click next
Another window is displayed.
Step 5:
Amend the GL date if required & select a reason for the revenue adjustment.
GL DATE : 1-NOV-2011
TYPE: EARN REVENUE
REASON: REVENUE ADJUSTMENT
COMMENT:
CANCEL BACK FINISH
Select reason & click FINISH button.
4 reasons are there
1. Incorrect sales person
2. Other
3. Revenue adjustment
4. Revenue management engine.
An action result window is displayed.
Action result
LINE TYPE ITEM
DESCRIPTION
CATEGORY AMOUNT SCHEDULED UNSCHEDULED
1 PR ITEM 1 2
WHEELER
10000 5000.00 5000.00
RULE DURATION
PR DEF VAR RULE 5
LINE DISTRIBUTIN
GL DATE AMOUNT % CLASS ACCOUNT
1 NOV 2011 <5000> 50 PR-000-
9003-0000-
000
1 NOV 2011 5000 -
50.00
PR-000-
2550-0000-
000
CANCEL SAVE
Clicks save.
On save, we can see the adjusted 50% from unearned revenue to revenue for the month of 1-nov-
2011.so, I have transfer 50% amount from the unearned revenue to revenue.
GL DATE AMOUNT % CLASS ACCOUNT Action
number

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1 NOV-2011 10000.00 100 UNEARNED
REVENUE
PR-000-
2550-
0000-000
1 NOV 2011 <5000> 50 REVENUE PR-000-
9003-
0000-
000
1265
1 NOV 2011 5000 -
50.00
UNEARNED
REVENUE
PR-000-
2550-
0000-
000
1265
Then in revenue accounting & sales credits window ,we can see in the revenue item as
scheduled 5000
unscheduled 5000
Similarly do for the remaining 5000 balance unscheduled
Choose the scheduled revenue in step 1 & click NEXT.
Choose sales credit type if transferring sales credit in step2 do not select at Present click NEXT.
Choose which lines to adjust in step 3. Nothing to select. Default select
All lines are selected & click NEXT.
Choose the amount in step4
All adjustable revenue radio buttons as I selected % before & click NEXT.
Choose the GL date as 1 dec-2011 in step5 & click finish.
Clicks save.
All the amounts are scheduled.
GL DATE AMOUNT % CLASS ACCOUNT Action
number
1 NOV-
2011
10000.00 100 UNEARNED
REVENUE
PR-000-2550-0000-
000
1 NOV
2011
<5000> 50 REVENUE PR-000-9003-
0000-000
1265
1 NOV
2011
5000 -
50.00
UNEARNED
REVENUE
PR-000-2550-
0000-000
1265
1 DEC
2011
5000 50 REVENUE PR-000-9003-
0000-000
1266
1 DEC
2011
5000 -50 UNEARNED
REVENUE
PR-000-2550-
0000-000
1266
In the revenue Accounting & sales credit window. We can see revenue
scheduled 5000
unscheduled 0
Tool- view Accounting to view the journal entry.
LINE TYPE ACCOUNT D
E
B
I
T
CREDIT TRAN
LINE
NUM
DETAIL
LINE
NUM

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RECEIVABLE PR-000-1210-0000-000 1
0
0
0
0
REVENUE PR-000-9003-0000-000 5000 1
REVENUE PR-000-9003-0000-000 5000 1
ROUNDING
DISTRIBUTION
PR-740-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00 1
1
UNEARNED REVENUE PR-000-2520-0000-000 5
0
0
0
1
UNEARNED REVENUE PR-000-2520-0000-000 5
0
0
0
1
UNEARNED REVENUE PR-000-2520-0000-000 10,000
1
Tax setup (1)
Enterprise has to bill the customers with tax amount, collect the sale & then pay to the tax authorities.
System options: location based tax.
A)navigation: system: system option
b) In tax tab we are going to use,
Tax method-sales tax
Close the system option: as there is Predefined location based tax with state country & city with rates
also.
2) Setup > tax codes
 Tax code for which the tax calculation base is before discount.
 Tax code for which the tax calculation base is after discount.
 Tax code is based on quantity.
 Adhoc tax code.
 Tax inclusive tax code.
 Prior tax code.
Entering the transaction location based tax
 Enter the transaction in the application window with source, class as invoice, customer, .give
the date, GL date.

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 Click LINE ITEM button give the item details such as quality, unit Price & amount field is filled.
 Select the tax code as LOCATION. Tax code = location(location, exempt)
 Select tax button on the button on click this tax button, tax is calculated at the rate of 12%.as
we defined rates for state as 5, country as 5, city as 2, tax will be calculated for the particular
transaction.
 Close the tax& line window & complete the transaction.
 We see the calculation of tax follows
Balance due
Line 10000
Tax 1250
Freight 0.00
Charges 0.00
Total 11250
ii) How to setup the tax code
Tax code for which the tax calculation base is before discount.
Ex: tax is calculated before deducting the discount.
SNO ITEM QTY RATE AMOUNT(USD)
1 PR
ITEM
10 1000 10000.00
SUBTOTAL = 0.00
 TAX (AMOUNTTAXCODE/100)
 10000PR BEFORE DIS /100)
 100005/100=1000.00
 IF PAYMENT is made within 15 days we get 5%discount as we attach PR 30 DAYS D as payment
term-PR 30 days with discount.
 Here tax is calculated before deducting the discount.
 Payment term should be “some payment term” for which discount have been defined.
 Define the tax code
Setup > tax codes
Tax codes & rates window gets open.
Rate tab
Tax code Tax
type
Taxable basis Tax
rate
Tax
amount
Sign
credit
PR before
DIS
SALES
TAX
BEFORE
DISCOUNT
10
EFFECTIVE TAB
Tax code From To Enabled
PR before dis 01-jan-2011
Clicks save to save the particular tax code & close.

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There are 5 taxable bases
1. Before discount
2. After discount
3. Quantity
4. PL/SQL
5. Prior tax
Enter this transaction with this particular tax code
Select source, class as invoice, type as PR invoice, customer. Give date & GL date.
Click line item button & give line details.
Now, select tax code as PR before discount tax codePR before discount & click tax button to view
calculation.
Click save & close & complete the transaction.
c) Tax code for which the tax calculation base is after discount.
Receipt setup:-
1. Receipt setup, cheques, bank transfers and all other forms of receipt payment received from a
customer is called receipt.
2. Primary function of oracle receivable is to receive payments against the open invoices. The payment
received has to be applied against the invoices.
Setup the bank:-
 Enter the bank details
 Enter the account code under the receivable options.
Setup the bank first:
One can use the same bank details used in the payables or one can define your bank and enter the bank
details namely the name of bank, branch, and account number. One has to enter the account codes under the
receivable options.
Application window to define the bank: Navigation: Setup; Receipts; Banks.
It displays the bank window to enter the details of the bank.
Set up the receipt class:-
The definition of receipt class determines the Processing step for manual or automatic receipts.
 Attach the relevant method for the receipt class.
 Enter the payment method.
 Attach the bank account details.

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 Updating of GL accounts
 Finally attach the formatting Programs.
 Save the receipt class.
Define the receipt class in application window: Navigation: Setup; Receipts; Receipt classes.
It goes to the receipt class window.
Receipt class (vision operations)
---Receipt class-----------------------------------------------------------------
Name : Notes receivables.
Creation method: Require confirmation.
Remittance method:
Clearance method:
----Payment method------------------------------------------------------------
Name : Printed name:
Effective dates:
Manual Automatic Bills receivable Bills receivable remittance
Manual tab:
Debit memo inherit receipt numbers.
Bank Accounts
 Name the receipt class in the name field.
 Select any one of the following method.
 Automatic
 Bills receivable
 Bills receivable remittance
 Manual
 No remittance
PR Receipt class manual
Manual
Standard and Factoring
By automatic clearing
PR Payment method PR payment method
1-Jan-2011

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Select manual-> if it is manual, one has to enter it manually in receipt or quick cash window or import using
auto lock box.
 Select one of the remittance method and clearance method.
 Select remittance method as standard and factoring from the following.
 Standard
 Factoring
 Standard and factoring
 No remittance.
 Select the clearance method as “By automatic clearing” from the following:
 Directly
 By automatic clearing
 By matching -> cash management is needed
 Specify the payment method to identify the nature of payments such as cash, cheque, or credit
card.
 Enable the check box “ debit memos inherit receipt numbers”
 Click bank accounts button. It displays the remittance bank details.
Remittance banks (vision operation) –PR receipt class format, PR payment method manual.
Bank name: PR Main Bank Branch name: PR BANK BRANCH
Account name: PR CURRENT Currency: USD
ACCOUNT
Minimum receipt amt: Risk elimination days:
Clearing days:
Effective dates: --
Override bank
Primary [ ]
GL accounts Bills receivables Formatting Program.
Cash: Unapplied receipt:
Receipt: Unidentified receipt:
Confirmation: On account receipt:
01-Jan-2011

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Remittance: Unearned discounts:
Factoring: Earned discounts:
Short term debt:
Bank charges:
Select the bank DS main bank; the branch name will be displayed.
Select the account name, ass the account details will be displayed.
Formatting Program tab -> attach the format.
Remittance transmission: French bills receivable remittance
Remittance Print: Print bank remittances Program
Factoring transmission: French bills receivable remittance
Factoring Print Print bank remittance Program.
Click save and close the window.
Receipts -> standard:
Receipt -> enter and confirm.
 Enter the receipt details and view the accounting lines
 Enter the customer details and view the accounting lines.
 Apply the receipt to a transaction and view the accounting lines.
Receipts -> Remittance:
 Create the remittance
 Attach the remittance method as “standard” , receipt class, payment method.
 Attach the bank details and select the receipt / receipt batch.
 Approve, format the remittance
 Query the receipt to check the status as “remitted”.
View the accounting line.
Receipts -> clearance:
Automatic clearing for receipts
Query the receipt and view the accounting lines.
Navigation for entering a receipt:
Receipts -> Receipts.

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Receipts > factoring remittance:
Enter the receipt:
Enter the receipt with
receipt date and maturity
date.
Remit the receipt:
Enter the remittance date. Attach the remittance method as factoring.
 Clear the receipt:
 Run the automatic clearing for receipt on clearance date.
 Eliminate bank risk as NO.
 Run the automatic clearing for receipt on maturity date.
 Eliminate bank risk as YES.
 Factoring will enable one to remit the receipt to ones bank. So that the bank lend money against the
receipt prior to the maturity date.
 Enter the receipt with receipt date and maturity date.
 Apply the receipt to the transaction.
 Enter a receipt in Receipts > receipts.
 Select the payment method: PR payment method.
 Give the amount receipt date, GL date and maturity date ( 20 days or 10 day from the receipt
date). Clicks save and initially the status is confirmed.
 Select the PR customer for the customer list of values.
 Click save and search and apply button to select the invoice.
 A search and apply (vision operations) PR RS 006 window is displayed.
 Click Preview button in this screen and a window with lot of invoice created will be displayed.
 Select the invoice, apply date, amount applied and save it.
 Go to the receipts; remittance to select the receipts.
 In the remittance window, give the batch date, GL date, currency and bank, click account
number to display the account number.
 Select the remittance method: factoring.
Batch date: 01 Nov 2011
 Select a bank and bank detail gets filled.
 Click manual create button at the bottom.
 Go to view-> find all. It lists all the receipts for remitting.
Payment PR payment method
Receipt number PR RS 006
Receipt amt USD
Receipt type Standard
Status
Receipt date 01 Nov 2011
GL date 01 Nov 2011
Maturity date 20 Nov 2011

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 Select the receipts that needs to be remitted i.e., PR RS 006.
 Give the bank charges as 100 charged by the bank for this particular receipt.
 Since I am going to mature the receipt before maturity date.
 First approve the receipt by clicking approve button and click yes in the decision message box.
 Note down the request id check whether the request is completed.
 Click view output details. It says the receipts have remitted. Close this request and output
window.
 Note down the batch number and Requery the batch number. The Process status shows
completed approval in the remittance window.
 Process status: Completed approval.
 Now we need to format this receipt. Click format button. It display a message box with message
“submit one batch for format”.
 Click yes.
 Note down the request number and its completion.
 Now the Process status shows completed format and close the remittance window.
 Query the receipt number and we can see the status as remitted.
 Status: Remitted.
 Clearing the receipt is the next step
 First we will run the automatic clearing for receipt on clearance date and bank risk parameter
as no. the status of the receipt is cleared.
 Second we will the automatic clearing for receipt Program on maturity date and bank risk
parameter as yes the status of the receipt is “risk eliminated”.
 Let’s see the clearing of the receipt with clearance date.
 Run the clear / risk eliminate Program.
Receipt : clear / risk eliminate
 Submit a single request.
 Select the Program “Automatic clearing for receipt” in the name field of the clear / risk
eliminate window and give the parameter eliminated bank risk as “no”.
 Give the clear date and GL date as Nov 2011, and receipt number and customer name.
 Submit this request.
 Note down the request id and check its status in view request find menu.
 View the output by clicking the view output button.
 Close this window and query the receipt number in the receipt work bench and the status as
cleared form remitted in the receipt window.
 Status: cleared.
 Again, run the clear / risk eliminated Program on the maturity date and enter single receipt
radio button and click ok.

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 Select “Automatic clearing for receipt” Program and select eliminate bank risk parameter as
“yes”.
 Give the clearing date and GL date as 20-nov-2011.
 Select receipt number, customer name from the list of values.
 Submit the request by clicking ok and check its completed status.
 On view the output, I can risk eliminated by clicking the view output button.
 Query the receipt number in the receipt window and see the status as “Risk eliminated”.
Status: “Risk eliminated”.
5) Receipts > Adjustments: PR RS 007
One can create adjustments to increase or decrease the balance due for a invoice, debit memo,
chargeback or commitment.
Prerequisites:
 Define a receivable activity.
 Enter the approval limit.
Set the approval limits: (but it is already defined)
Navigation: Setup; transaction; approval limits.
User
name
Document
type
Reason Currency From
amount
To
amount
Primary
Oflinux1 Adjustment USD <1000> 0.00
Oflinux1 Receipts
write off
USD 0.00 3000.00
Define a receivable activity.
Setup > receipts > receivable activities.
Receivable activities (receivables vision operation (USA))
Operating unit Vision operations
Name PR receivable activity
Description PR receivable activity
Type Adjustments.
Active
Adjustments:

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Adjustment, bank error, earned discount, endorsement, finance charge, miscellaneous, cash , short term debt,
unearned discount, receipt write off, claim investigation , Prepayment etc..
Accounting
GL account source Activity GL account
Tax code source None
Activity GL account PR-000-5230-0000-000
Distribution set
GL account description Karthikraja co-no department- standard adjustment-
no sub account- no Product
 I) Enter a receipt.
 Apply to a transaction
 Click adjustments
 Attach the receivable activity
 Query the transaction.
II) Enter the new receipt by
 Selecting payment method: PR payment method.
 Give the receipt number and receipt amount.
 Give the receipt date, GL date, maturity date as 1 Nov 2011
 Select customer PR customer from list of values
 Click apply button.
 Select the transaction from the list in the “apply to” field.
For eg: Transaction amount = 10000
Receipt amount applied = 9800
---------
Balance due = 200
Apply date: 4 Nov 2011.
Click adjustment button to adjust this balance 200. Adjustment window popup.
Adjustments (vision operations) PR customer 1038, 1
Installment
Line Tax Freight Charges Total
Original 10000 0.00 0.00 10000
Balance 200 0.00 0.00 0.00 200
Adjustment 0.00
Pending adjustments: 0.00
----------------- Adjustments ------------------------------------------

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Main Account,IDS comments
Number Activity name Type invoice Amount GL date Adjustment date
3665 PR receivable
activity
Invoice 200 1 Nov 2011 1 Nov 2011
6) Auto adjustments:
One can run auto adjustments to automatically run auto adjustments for the remaining balances of all
open invoices, debit memos, credit memos and charge backs.
Prerequisite:
Define a receivable activity.
Since, we have already defined a receivable activity for adjustment we could use it.
Create auto adjustments.
i) Generate report only:
We will generate report to find the invoices and the amount to be generated to create
adjustments
Ii) Create adjustments.
Query the transaction to see the amount adjusted.
Navigation: Control > Adjustments > create auto adjustments.
Create auto adjustments (vision operation)
---- Selection-----------------------------------
Invoice currency USD
Remaining amount -1000 to 1000
Remaining %
Due date 1 Nov 2011 to 10 Nov 2011
Transaction type
Customer name PR customer
Customer number
Transaction
Parameter:
Activity PR receivable activity
Type Invoice adjustment
GL date 1 Nov 2011
Reason
Request id

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Option
Generate report only.
Create adjustment.
Adjust related invoices.
Type:
Charge adjustment, freight adjustment
Invoice adjustment, line adjustment
Tax adjustment.
 First click generate report only to create the report and see the adjustments to be adjusted.
 Click submits and the request id is generated. Verify whether it is completed.
 Note: please create transaction and receipts with balance due less than 1000 to verify the
adjustments working fine or not.
 Once it generate only job is over. Verify the report and submit another report by selecting
create adjustment radio button and click submit.
 Verify the job request is completed and view click output to see the output details.
 Note down invoice number and go back to transaction and query the invoice to check whether
the balance due is got adjusted. Click details button to see original and adjusted balances.
Receipt source:-
One can use the receipt source to number either automatic or manual receipt batch.
 Name of the receipt source.
 Attach the receipt class, payment method and bank a/c.
 Enter the type of batch numbering and the last number entered.
 Enter the effective dates.
Navigation:-
Setup > receipt > receipt sources.
Receipts write –off:
In oracle receivable, one can write if and apply the receipt amount.
Submit

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Prerequisite:
 Define a receivable activity.
 Enter the approval limit for receipt write off.
 We have already defined the receivable activity for adjustment. Similarly create the PR receipt
write off by selecting the receipt write-off type and other details are same and save and close
the activity window.
 Approval limit also have been defined already for up to 3000.
 Enter a receipt:
 Apply to a transaction
 Select receipt write-off for excess unapplied amount to write off.
 Select on account of receipt write off for excess amount to be in on account.
 Enter the receipt with payment method as PR payment method; receipt number PR RS 0021,
receipt amount. 11500 and receipt date, GL date, Maturity date 25 Nov 2011.
 Select the customer: PR customer and Press enter and save the receipt and click apply button.
 Select the transaction by clicking on the list of values in the apply to field.
 Transaction number is 1103 having balance due of 11000. Change the apply date 25 Nov 2011,
amount applied as 10000 and click save.
There are 500 which is an unapplied amount. Now we need to write off the 500. Select receipts write
off.
AR STEPS:
Based on purchase order issued by customer, receipt we recd..
Generate sale order.
Invoice is raised and payment made.
Flexfield -> sales tax location field (M)
Territory flexfield (O).
System option – accounting method.
 Tax-> sales tax=defined in state, country, city flexfield and VAT= no validation
 Specify the location tags;
 Hierarchy of tax.
 Define the payment terms.
 Define the collectors, customer Profile class.=== for creating customers.
 Define the customer === give the customer Profile and collectors here and payment terms.
 Define tax location rates for state, country and city.

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 For invoice, we need transaction type. In that give receivable, revenue, unbilled receivable, tax
and GL A/C need to be specified.
 Define transaction source.
After defining
 Apply to field and apply date 25 Nov 2011 and amount applied is 500 and give the activity as PR
receipt write off and click save and closes the application window.
 Store the excess amount in the “on account”.
 1-4 steps are same. Instead of writing off the amount lying as unapplied we can keep the excess
amount in the on account which can be used for some other transaction.
 Select “on account” in the apply to field for the excess 500 and save the record. So now the
excess amount is move to on account.
 If we want to use this on account amount to some other amount, Give the amount applied as
zero the amount goes to unapplied status. Then we can use this amount for some other
transaction.
 Automatic receipt write off:
 One can run automatic receipt write off Program to write off multiple receipts advanced
individual receipts returns.
The concurrent Program creates a write off and closes receipts.
Prerequisite:-
 Define a receivable activity for receipts write off.
 Activity GL account: PR-000-1345-0000-000 -> Receipt write off.
 Create automatic receipt write off:-
 Generate report only:
 Generate report will written off receipts which are to be write off.
 Create adjustments.
 Enter receipts with a difference of 0 to 3000 amount that is more than the original transaction.
 In order to create receipt writes off.
Navigation: control > write off receipts
A window receipt writes off is displayed.
Create receipt write off:
Selection:
Receipt currency USD
Unapplied amount 3000

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Payment method PR payment method
Customer name PR customer
Customer no 4090
Parameters:
Activity PR receipt write off
Apply date 25 Nov 2011
GL date 25 Nov 2011
Option:
 Generate report only.
 Report writes off.
 Generate report only so submit the report by clicking submit to list the written off receipts
which needs to be adjusted.
 Now give the same details again click create write off receipts radio button.
 Request id is generated click view – request – find to check the completion of report.
 Requery the query and see the write off is created.
Application rule set:-
The application rule set determines the order in which receivable reduces the balance due for
the transaction like line, freight, tax and finance charges.
Prerequisite:-
 Create an application rule set.
 Attach the application rule set to the transaction type.
 Enter a receipt
 Apply the receipt against the transaction
 Query the transaction
 Creation of application rule set: Navigation: setup > receipts > application rule.
 Give a name for application rule set: PR application rule set.
 Receivable will automatically assign the over application rules by default this rule will be the
last in the sequence for any application rule set.
 One has to enter the rule detail for the application rule. The rule details section describes the
type and tax treatment for this rule.
 Save and enter the application rule detail type: line, freight, charges. Tax treatment = Prorate,
before, after, none.
Submit

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Application rule sets:
Application rule set PR application rule set
Description PR application rule set.
Freeze.
Application rule sets: Rules details
Sequence Rule Rounding collection Type Tax treatment
1. Line Line Before
2. Freight Freight None
3. Charges Charges None
4. Over application rule
A) The system will Proportionality reduces the net amount for the line and associated tax amount when I
select Prorate.
B) The system will first reduces the tax amount and then apply the remaining amount to line when I select the
before option.
C) When I select after, it first reduces the line amount then it applies the remaining amount to tax.
6) Click save and after saving enable the freeze check box.
7) A decision box will be displayed.
Click on yes button.
8) Close application rule set.
 Attach the application rule set to the transaction type:
 Query the transaction invoice PR invoice in the transaction window and attach the PR
application rule set in the application rule set field.
 Application rule set: PR application rule set.
 After attaching rule set, click save and close the window.
Pending data changes will be saved. Save changes and continue?
YES NO

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 Enter the receipt by selecting payment method; enter the receipt number, amount, receipt
type (standard), receipt date, GL date, and maturity date. Select the customer and save this
window.
A) click apply button to select a transaction from the list of values having balance 11100 with receipt
entered amount 10000. So balance due is 1100.
B) Save and close this application and receipt window.
4) Query the transaction number 1146 in the transaction window by going into transaction > transaction.
5) execute the query by Pressing ctrl +F11. The transaction is retrieved and we can see balance due of 1100.
Where line 600 and freight 500 so total 1100.
6) First tax has been applied and the remaining amount is applied to line amount.
7) The application is based on the application rule set defined.
8) Close the balance and transaction window.
Receipt reversal:
One can reverse the receipt with customer stops payments or receipts come from an account with
insufficient funds.
 Standard receipts reversal:
 Query the receipts
 Reverse the receipts.
 Debit memo reversal:
 Query the receipts.
 Enter a debit memo reversal.
 Query at the transaction work bench.
Category:-
o Non sufficient fund
o Reverse payment
o Stop payment.
o Standard receipt reversal:
One can create a standard reversal for a receipt and receivable automatically creates reversal journal entry for
ones GL and reopens all debits and credits which originally closed by the receipts.
Query the receipts number in the receipts window. (PRRS 001)
To reverse the receipt, click reverse button on the receipt window. A reverse window will be displayed.

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Reverse:
Date 18 Nov 2011 GL date 20 Nov 2011
Category Non-sufficient funds Non-sufficient funds
Reason Non-sufficient funds Insufficient funds
Comment
Debit memo reversal.
Account type Document num:
Click reverse button and we can see the status in the receipt window as “Reversed”.
Status : “Reversed”
Journal entry:
Line num Account Dr Cr Tran. Line
Cash PR-000-1110-0000-
000
10000
Cash 1110 10000
Confirmation 1240 0.00
Confirmation 1240 10000
Confirmation 1240 10000
Receivable 1210 10000
Remittance 1245 0.00
Remittance 1245 10000
Remittance 1245 10000
Unapplied 1240 10000
Unidentified 2990 10000
Unidentified 2990 10000
Debit memo reversal:
When one creates debit memo reversal, receivable reverses the receipt but does not update any other receipt
activity that is associated with the original receipt.
 Query a receipt that has been applied to a transaction.
Reverse Cancel

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 Here we take PRRS004 where entire amount is paid
 Reverse the receipt.
 Even though the receipt has been reversed, the status of the receipt remains the same.
 It creates a debit memo transaction like newly created transaction the amount needs to be
paid.
Reverse window:
Date 20 Nov 2011 GL date 20 Nov 2011
Category Reverse payment Reverse payment
Reason Payment reversal Payment was reversed.
Comment
Debit memo reversal.
Account type Debit memo reversal. Document num:
Click reverse button to reverse transaction.
Take the receipt number and it will be the newly created transaction number PR RS 004.
Query the transaction in transaction window.
Source Debit memo reversal
Number PRRS004
Class Debit memo
Type Debit memo reversal.
Click line details.
We will see a new line created with description “Debit memo for reversal of payment of PR RS
004”.
Miscellaneous receipts:
These are receipts which are non-operational income such as income earned from investment,
interest, refund and towards sale of stock.
Prerequisite:
 Set up a distribution set
 Set up a receivable activity
 Miscellaneous receipt
Enter a miscellaneous receipt.
I) a) set up a distribution set:
Reverse Cancel

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Navigation: Setup > receipts > distribution sets.
It displays the distribution set window to enter the distribution.
Give a name for distribution set.
Give the distribution set lines for 100%.
b) Set up a receivable activity:
Setup > receipts > receivable activity.
Receivable activity
Operating unit Vision operation
Name PR MIS REC ACT
Description PR miscellaneous receivable activity
Type Miscellaneous cash
Active.
GL account source Distribution set
Tax code source None
Activity GL account
Distributions set PR MIS DIS set
GL account description
Asset tax code
Liability tax code
Click save and close the receivable activity window.
Distribution set:
Operating unit Vision operation
Name PR MIS DIS set
Description PR miscellaneous Distribution set
Active.
Distribution set lines:
% Account Description
30 PR-110-4150-0000-000 Miscellaneous revenue for dept 110
Total 100%
Clicks save and close the distribution set.
Reference
Post mark date

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1. Customer
2. Customer number
3. Location
4. Taxpayer ID
5. Customer bank
6. Name
7. Account
8. Payment server id
9. Approval code
10. Remittance bank
11. Name
12. Branch
Account
Click distribution window.
It displays the distribution window to enter details.
 Enter the receipt:
 Enter the receipts with receipt type as miscellaneous.
 Receipt type =”Miscellaneous”
 Enter the payment method, receipt number, receipt amount, receipt date, GL date.
Receipt
Payment method PR payment method
Receipt number PR RS MIS0001
Receipt amount USD 10000
Receipt type Miscellaneous
Status Confirmed
Receipt date 1 Nov 2011
GL date 1 Nov 2011
Maturity date
Functional amount 10000
Main More
Main tab:
Paid by: (name)
Distribution
Search
and apply
Receipt
history
Reverse

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Purpose:
Activity: PR MIS REC ACT
Distribution set: PR MIS DIS SET
Tax code:
Tax amount:
Tax rate %:
Description:
Chargeback:
 Setup a transaction type
 Enter a receipt
 Enter the amount as zero.
 Select a transaction
 Enter the chargeback details.
 Query at the transaction workbench.
Set up a transaction type:-
One has to use chargeback to create a new debit item for ones customer in the place of existing debit
items which is to be closed.
Set up > transaction > transaction type
Receipt batches -> Manual & quick:
Auto cash rule set:
 Create an auto cash rule set.
 Attach the auto cash rule set to the Profile class.
 Query the customer to check whether the Profile class got updated.
 Select manual quick receipt batch.
 Enter the quick cash details
 Post the quick cash.
 Auto cash rule set:

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Receivable once post the quick cash Program that uses the auto cash rule set to determine how to attach the
receipt against the customer open transaction. One has to specify and sequence these rules as the set which is
defined in the auto cash rule set.
Creation of auto cash rule set:
Navigation: Setup > receipts > auto cash rule.
Auto cash rule sets (Receivables vision operation (USA)
Name: PR auto cash rule
Description: PR auto cash rule.
Active.
Items in disputes.
Finance charges.
Open balance calculation:
Discounts: Earned only.
Automatic matching rule:
Remaining remittance amount: Unapplied.
Apply partial receipts.
Auto cash rules:
Seq auto cash rule:
 Apply to the oldest invoices first.
 Clear past due invoices.
 Clear past due invoices grouped by payment term.
 Match payment with invoice.
 Clear the account.
 Click save and close this window.
 Discounts -> earned only -> the customer can take only earned discount.
 Earned and unearned -> can take both earned and unearned discount. Unearned discount is
one that can even been taken after the discount period is over
 None -> cannot take any discount.
 Remaining remittance account: on account and unapplied.

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 After defining the auto cash rule set, now we will attach the auto cash rule set with the Profile
class.
 Query a Profile by going to customers Profile classes and query a Profile class : PR CUS PROF CLS
 Attach the auto cash rule set: PR Auto cash rule in this window. Auto cash rule set: PR Auto cash
rule set.
 Click save and click update all Profiles radio button and click ok and check for the request is
completed.
 Close all the windows.
 Query the customer to check whether the Profile class got updated customer; standard.
 Enter the customer name and click find.
 Go to Profile -> transaction tab and see the auto cash rule. Set has been attached.
 Go to address tan and click open and go to Profile – transaction tab and check whether the auto
cash rule set got attached.
 Close the customer window.
 Enter receipts with batch type as manual – quick.
 Batch type: Manual – quick.
B) Select the batch source.
Batch source: PR receipt source.
C) Enter the batch date, GL date, deposit date as 10 Nov 2011
D) Enter the receipt class.
Receipt class: PR receipt class manual 1.
E) Enter the count and amount.
Count Amount
Control 3 100000.00
Actual 0 0.00
Reversed 0 0.00
Difference 3 100000.00
F) click save and click receipt button to enter the receipts number.
Receipt number Receipt date Amount Application type
PRRS001 16 Nov 2011 10000 Single
PRRS002 16 Nov 2011 30000 Multiple
PRRS003 16 Nov 2011 60000 Auto cash rule set
If application type is multiple then click multiple buttons to select the multiple transaction number.
100044 -> 10000
100048 -> 10000

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100049 -> 10000
Click save and close application window.
G) Select the customer for all the receipt.
H) After entering all the 3 list i.e., the last row should auto cash rule. Set attached to the application
type.
I) Click post quick cash button.
J) A decision box is displayed.
K) Click yes button and check the request is completed.
L) Click view output button to see the details and output of this rule.
It selects the old invoices first and applies the invoices.
M) Close the request window and quick cash window and see the status as control cunt and amount is
equal and status as open.
N) On saving the status will be closed and the difference will come as 3 and 100000.
Count Amount
Control 3 100000.00
Actual 0 0.00
Reversed 0 0.00
Difference 3 100000.00
Receipt batches Automatic:-
One can use automatic receipt future to automatically generate receipts for customers with whom one
has Predefined agreements. The creation of automatic receipts involves three steps:
 Create: it involves selecting the invoices that one want to include automatic receipts.
 Approve: It involves deleting, updating and approving the receipts that one have selected.
 Format: It involves formatting ones automatic receipts on to paper and send to one customer
for confirmation or notification.
Need to create some setup step before creating automatic receipts.
Submit 1 batch for quick cash posting?
YES NO

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 Setup the customer bank.
 Set up receipt class automatic.
 Create a sequence in general ledger
 Attach the customer bank and payment method – automatic to the customer.
 Enter a transaction.
 Copy the transaction to create more
 Enter a receipt batch – automatic
 Create, approve and format the receipt batch -automatic.
 Maintain the receipt batch.
 Query the individual receipts.
 Setup the customer bank.
 Setup > receipts > banks
 Bank name: PR customer bank
 Branch name: PR customer branch.
 Institution: bank
 Click bank accounts button.
 Bank account
Operating unit : vision operations.
 Name : PR customer account
 Account use: customer
 Number: 90001
 Currency : USD
 Click save and close the window.
 Setup receipt class – Automatic
 Setup > receipts > receipt classes.
 Name: PR receipt class – automatic.
 Creation method : automatic
 Remittance method: no remittance
 Clearance method: directly.
1. Give a name for payment method.
2. Payment method:
3. Name: PR payment method auto
4. Effective date: 2 Jan 2011
Automatic tab:
Debit memos inherit receipt numbers.

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Receipts inherit transaction numbers.
 Number of receipts rule: one per invoice.
 Receipt maturity date rule : earliest
 Automatic Print Program: Print receipts Program
 Payment type:
 Lead days:
 Merchant ref:
Click on the bank account button.
Select bank name as PR main bank and select PR current account and all details gets filled up.
Effective date: 1 Jan 2005
Formatting Program tab:
1. Remittance transmission: Transmit bank remittance Program.
2. Remittance Print: Print bank remittance Program.
3. Factoring transmission: Transmit bank remittance Program.
4. Factoring Print: Print bank remittance Program.
Create a sequence in general ledger:
Setup > financial > sequence > define.
Name Application From Type Initial
value
PR sequence Receivable 1 Jan 2011 Automatic 1
Setup > financial > sequence > assign.
Application Category Set of
books
(Ledger
in R12)
Method
Start
date
Sequence
Receivables PR payment
method –
automatic
Vision
operation
(USA)
Automatic 1
Jan
2011
PR
sequence
 Switch to receivables.
 Customer > standard.
 Name: PR customer.
 Click find button.
 Bank account tab:
Bank accounts

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Account name Number From Primary
PR customer bank
account
954212 1 Jan 2011
Payment account tab:
Payment method From Primary
PR payment method -
Automatic
1 Jan 2011
Clicks save.
Select address tab and click open button.
Bank account tab:
Account name Number From Primary
PR customer bank account 954212 1 Jan 2011
Payment account tab:
Payment method From Primary
PR payment method - Automatic 1 Jan 2011
Enter a transaction and complete the transaction and copy the transaction to create more transaction
Create a automatic receipt batch.
Receipt – batches: select batch type automatic.
Batch type Automatic
Batch date 15 Nov 2011
GL date 15 Nov 2011
Currency USD
Receipt class PR receipt class automatic
Payment method PR payment method automatic
Click create button and select customers and click ok and check completion of report.
Requery with batch number 30112 and Process status is completed creation. Click approve button and
check completion of request.
Requery and click format button and check completion of request.
Requery and click maintain button and we can see the receipt number generated close the entire
window.
Query individual receipts by going into receipts and see the status as cleared.

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Bills receivable: standard or factoring:
 Bills receivable is a negotiable instruments signed between 2 parties.
 The drawer and the Drawee.
 The drawer is one who draws the bill and the Drawee is the one who accepts to draw the bill.
 One can use the bills receivable window, to manually create a bills receivable and assigns transaction
to the bill.
1. Set up a transaction type.
2. Set up a transaction source
3. Set up a receipt class
4. Update customer as Drawee
5. Enter a bills receivable transaction
6. Enter the bills receivable details
7. Assign to a transaction
8. Complete, accept the transaction
9. Remit the bills receivable transaction. Select the remittance method – standard or factoring.
Create, approve, format the remittance.
10. Run the bills receivable maturity and risk Program.
11. Setup the transaction type: PR bills receivable. Select the class as bills receivable class: bills
receivable. Format Program name: French bills receivable. Other details are same, click save
and close.
12. Setup a transaction source: PR BR source.
Setup > transaction > Sources.
Name: PR BR source
Type: manual
Active
Automatic transaction numbering: 1999
Click save and close this window.
Setup a receipt class.
Setup > receipts > receipt classes.
Name: PR BR Receipt classes
Creation method: Bills receivable remittance
Remittance method: standard and factoring
Clearance method: by automatic clearing
Payment method:

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Name: PR payment method BR
Receipt inherits transaction numbers.
Click bank account button to give the bank details.
 Bank name: PR main bank (internal bank a/c)
 A/c name: PR current account
 Effective date: 1 Jan 2011
 Claim investigation : claim investigation
 Short term debt: short term debt – factoring
 Remittance: PR:000-1245-0000-000
 Formatting Programs:
 Remittance transmission French bills receivable remittance
 Factoring transmission
 Remittance Print Print bank remittances PGM
 Factoring Print
 Click save and close.
 Update the customer as Drawee:
 Query the customer and click find.
 Address tab -> open -> business purpose tab.
 Select drawee below ship to and save a number is generated.
 Enter a bills receivable transaction:
 Navigation: bills receivable > transactions
 It opens bill receivable window
 Bill receivable ( vision operation : USD) (New)
 Number:100001
 Source: PR BR source
 Currency: USD
 Issue date: 1 Nov 2011
 Document number:
 Status:
 Maturity date:
 Type: PR bills receivable
 Amount:
 GL date:
Complete.
Main More Bank account Notes

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Main tab:
Name: PR customer
Number: 4090
Taxpayer ID:
Location:
Address:D2 Glass made
Sannathi road,
Velachery, Chennai, PR city, PR state.
Print option: Print
Last Print date:
Acceptance date:
Remittance date:
Remittance batch:
Signed
Isssed by drawee
Click assignments button, the assignment window opens.
Assignments (vision operations: USD)-PR customer, 100001
Drawee name: PR customer
Drawee number: 4090
Taxpayer ID: Amount USD: 20000.00
Assigned: 20000.00 Unassigned:0.00
Assigned Saved Transaction
number
Installment Amount
assigned
Due date
1141 1 20000 1 Nov 2011
Customer number Customer name Transaction type
4090 PR customer PR invoice
Reciprocal relationship:
Assignments
Quick assign
Accept
Incomplete
Complete

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Reciprocal account relationship enables parties to apply receipts against each other transactions and
enter invoices against each other commitments.
Prerequisites:
 Enable create reciprocal customer. Check box under the region transaction and customers in
system options.
 Update the reciprocal relationship at the customer standard level.
 Enter a receipt and during application both the customers transaction are listed.
 Update the reciprocal relationship at the customer standard level.
 Select the customer and click find button.
 Select the relationship tabs from the more tab and relate this particular customer with other
customer.
Name: SS customer
Number: 4086
Type: all.
There are three types: All, Parent & Reciprocal.
Save and close the customer window.
III) a) Enter the receipts and select the payment method, enter receipt number, amount as 10000 and receipt
date 5 Nov 2011.
b) Select the customer and click apply button to select a transaction and select a transaction because it
displays both PR customer and SS customer transaction. Select any one transaction and save and close the
entire window.
10) Collection activity:
o Receivable let ones to view the customer account information in a variety of ways.
o Define collector and attach to the customer Profile class. PR collector already defined and
attached.
o Review the customer accounts.
o Query the customer
o View the account details
o Overview the account period
o View the payment and other details by clicking key indicators.
o To view the customer accounts.
Navigation: Collections > customer accounts

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It displays the find customer accounts window.
Accounts statements:
Account statements will Provide the customer complete record of the invoices, debit memos,
chargeback, deposit receipt, on account, credits, credit memo and adjustment activity for a specific period.
 Set up the statement cycle
 Print the statement by
 Attaching the statement cycle to Profile class.
 Submit the statement.
Navigation for creating a statement cycle:
Setup > Print > statement cycles.
 Give a name for the statement cycle
 Description
 Select interval as monthly from the list of values ( monthly, quarterly, weekly)
 Then I want to generate my statement cycle.
 Name: PR statement cycle monthly
 Description: PR statement cycle- monthly
Customer calls:
One can contact the customer through phone for any transaction that is positive. One can use customer calls
window to record the results of one’s conversation details by recording the details of one conversation. One
can create a record of contract and can recommend any further collection actions.
 Select the collector
 Select the customer
 Enter the contact person details
 Record the response of the contact call made.
 Follow the action, Promise, forecast of the response.
 Alert the management of the outcome of the call if necessary.
 For a particular transaction or receipt what is the follow up action taken.
Navigation: Collection > customer calls.
Customer accounts merge: One can use customer account merge to consolidate any duplicate
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After successful merge, all the activities that was Previously associate with old customer associated with the
new customer or site.
I have two customers: PR customer, SS customer
 Merge two customer account.- Merge PR customers with SS customer
 Finally after merging,
 Query the old customer who is merged with the new customer. Find out old customer or not
and any transaction is existing in the old customer.
Navigation for crating customer account merge:
Customers > account merge.
General ledger transfer:
Accounts receivable transfer to general ledger.
The balances in accounts needs to be transferred to general ledger on a daily periodical basis and
before that one has to run reconciliation report. This report helps one to reconcile ones account receivable
activities.
Run the accounts receivable reconciliation report.
Navigation: Control > request > run
Submit a single request radio button and click ok.
Name: AR reconciliation report.
Fixed Assets
Purpose:
1. Record, Retrieve and maintain
 Functional information of assets-Tax law
 Budget information of assets-record, retrieve
 Physical information of assets
 Can be maintained as per the needs and local law of the country and as per representation of tax, Dep,
we can maintain multiple books for source assets.
 Can be recorded as per needs and requirements and for controlpurpose.
 Employment, Dep of asset, reveals facts as to the actual usage of asset by depts.

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2. SYSTEM FLOW:
1. Creation of books
Corp book and budget book, budget book
2. Key flexfield (should be defined):-structure-values
 Category flexfields
 Location flexfields
 Asset key flexfields (values for these three flexfields should be defined)
3. System controls:
Should be created using these structure and for setting up automatic number for assets.
4. Financial options:
Those are common to purchase, pay, rev
5. Dep methods, Rates and ceilings:
As per corporate book and tax book should be defined
6. Asset category:
Values of flexfields, Dep for each category defined
7. Location:
By combining values location field
8. Asset addition:
Could be created –Individual/Mass Allocations
9. Depreciation runs to crystallize the asset addition.
10. Mass copy in tax books.
11. Capitalization of CIP Assets (Periodically)
12. Transfer/Mass transfer
13. Adjustment/Mass adjustment
14. Reclassification (revising asset category)

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15. Revaluation (bring assets to market value)
16. Retirement/Mass retirement
17. Reinstatement/Mass reinstatement
18. Journal Entries creation
3. DEFINITION OF ASSETS
1. Item owned by the business
2. Item can be tangible or intangible
3. Tangible items can be movable /immovable
4. Normal life is more than 1 year
5. Unlike inventory it is not meant for resale to customer.
6. Used for manufacturing process & support the Business activities for effective
operations.
7. Normally it is depreciable over the period of life.
4. TYPES OF ASSET
A) Based on physical attributes:
1) Tangible assets-immovable, movable assets
2) Intangible assets-Goodwill, patent etc
B)
1. Capitalized asset
2. Construction in process (CIP assets)
3. Expensed assets
5. ASSET BOOKS
1. Corporate Book: Recording financial information and details of Dep for Business purpose.
2. Tax Book: Record FI and details of Dep for tax purpose

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3. Budget Book: To record the budget information of assets of the enterprise.
PRE REQ:
1. Fiscal years calendar
2. Department
3. Prorate calendar
4. GL SET OF BOOKS (LEDGER IN R12)
5. Journal source and category
6. FISCAL YEAR
1. Fiscal year is the yearly calendar for Akg Co,
2. Fiscal year have to be defined from the year earliest to the oldest date placed in service of asset in the
enterprise
3. If the asset Book and asset are to be created only from the current fiscal year, then define fiscal year from
the previous year.
4. The fiscal year calendar for the corporate book and tax Book is the source
8. FA PERIOD IN ORACLE ASSETS
There are only two periods
 Open period
 close period
Period status is control by the system
Only one period will be open at any point of time
Depreciation run program closes the current period and open the next periods and open the next periods
9. DEPRICIATION CALENDAR
 Dep Cal decides the periodicity of running Dep
 The name of the period in Dep calendar must be same as in the GL Akg calendar.
 One common depreciation cal can be used for multiple Dep books
 Corp Book depreciation calendar can be different from tax Book Dep calendar whereas corp. BOOK fiscal
year name must be same for tax BOOK
10. Prorate Calendar
1. Prorate calendar decide the “periodicity” for calculations Dep

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2. Prorate calendar is used to determine the prorate date and prorate period, when to
Dep an asset during the first and last yr.
3. Prorate calendar is used for determine the prorate convention
4. Prorate calendar is used mainly for table based method Dep
Prorate calendar selects the Dep rate with respect to the date placed in service for table based method
KEY FLEXFIELDS IN ASSET
Flexfield is an intelligent key code combination of various business dimensions/business segments for any
transaction
Key flexfields are vital and recurring in nature
Types of flexfields:
1. category flexfield -mandatory
2. location flexfields -Mandatory
3. asset key flexfields -optional
FA CATEGORY FLEXFIELD
Grouping of assets based Dep method and rates
Category flexfield is the field in which we specify the name of the category of assets
Structure of category flexfield
1. Name
2. Segment
A) Main Category
b) Sub category
3. Value sets
Values of category flexfields segments:
1. Main category values
2. Sub category
FA LOCATION FLEXFIELD

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Location Flexfield is a key Flexfield to record the location details of the asset
Structure of location flexfield
i)Name
ii) Segment
iii) Values sets
Values of location flexfield segment
1. Building
2. Area
3. City
4. State
5. Country
FA ASSET KEY FLEXFIELD
Asset key flexfield: used to group assets on the basis of its functionality
Structure of asset key flexfields
i) Name
ii) Segments
iii) Value sets
Value of asset key flexfield segments
1. Asset key
20. FA SYSTEM CONTROL
After defining key flexfields comes the system ctrl setup
Specify the enterprise name
Specify the date placed in service of the oldest asset in the enterprise
Choose the asset flexfield structure

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1. Category flexfield
2. Location flexfield
3. Asset key flexfield
Choose automatic asset numbering system
1. Specify starting asset no
2. Last asset no: used automatically updated by system
22. FA PRORATE CONVENTIONS
Prorate convention are method to the first& last year Dep of asset as per the prorate period &prorate date
Normal prorate conventions types
1. Current period convention
2. Next period convention
3. Prior period convention
Retirement convention decide the annual Dep
Of the asset for year in which it is returned
Retirement convention types:
1. Can be the same as prorate convention
2. Also facilitates changes in convention from the default rules at time of addition or @the time of retirement
1. Depreciation methods
Dep: Decrease in the value of assets normally due to wear and tear
Dep Basis
1. Cost basis> straight level
2. Net book value basis (NBV) WDV

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Methods of Dep:
1. calculate method-cost only
2. Flat rate-cost &NBV
3. Production-cost only
4. Table method-cost NBV
5. Formula method-cost NBY
Bonus Dep & ceilings
In some countries additional Dep will be changed knows as “bonus Depreciation”
Bonus Depreciation
1. One time
2. multiple times
Dep ceilings (for tax books only)
1. Cost ceiling
2. Expense ceiling>exp Depreciation
6. ASSET CATEGORY
Category of asset on the basis of Dep methods and rates
Setup for creating asset category:
1. specify/select a name the ass category by combining
Main category value
Subcategory value
Description
C. category type
d. Ownership

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 owned
 lease
e. Property type
i. real
ii. Reversal
iii. Others
F. select controls- enable /capitalize /in physical inventory
2. Specify GL BK & A/Cs
3. Specify default Dep rules
Second window specify GL a/c
Choose corporate Book/Tax Book
Specify A/C code combination for:
1. Asset cost
2. Asset clearing
3. Dep exp segment
4. Account Dep
5. Bonus expense
6. Bonus reserve
7. Revaluation reserve
8. Revaluation amortization
9. CIP cost
10. CIP control
Go To default rules-To specify default Dep rules.
Placed in service date effective
Specify def for the asset cat

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1. Dep method/rate/life
2. Bonus rule
3. Prorate rule
4. Retirement convention
5. Salvage value in %
6. Cost /exp ceiling
7.Price index
8. Subcomponent life rule with mini life
9. Straight line method for retirement
10. Dep limit usage %/amt
11. Capital gain threshold yrs limit
8. QUICK CODES
Give quick codes for giving values for:
1. Asset description: land, building, machinery
2. Lease periods: annuity, quarterly
3. Property type: real, personal, tangible, and intangible
4. Retirement types: full, partial, Reinstatement
Setup> asset system> Quick Codes
10. DISTRIBUTION SETS THEORY
Distribution set is useful for single or multiple asset segment of the physical distribution of asset automatically
To various location/exp employee while adding assets in detail addition mode/mass addition mode
 the automatic assignment will be as per the predefined % assignment in the Distribution set
 the distribution set in assets module should be a full distribution set
 each distribution set must have unique name & will be specify for a particular asset book

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 you can have any number of distributions set for any ass category
 you can have any number of distributions set as per the dates placed in service
 you can have distribution sets based on rate of dates placed in service
12 .TRANSACTION IN ASSET
1. Addition
2. CIP addition
3. Transfer
4. Adjustment
5. CIP adjustments
6. Depreciation
7. Depreciation adjustments
8. Reclassification
9. Revaluation
10. Retirement
13. ADDITIONS METHOD
First transaction in FA module in addition
Mode of addition of assets
1. Quick addition: To add assets quickly with minimum details& by using default rules as per asset category in
a single screen
2. Detailed additions: To record complete details of assets including source lines, sub components, leased
assets, short year asset &also to over side default Dep rules
Details to be recorded in four screens
1. asset details screen
2. source line screen
3. books
4. assignment
3) Mass addition: to import mass data from payables or external system to oracle assets
14. ADDITIONAL CAPITALIZED ASSETS
Same as in addition of asset. Here, capitalized asset are taken into consideration
15. EXPENSES ASSET THEORY

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Expensed asset are asset whose values is less than prescribed value ,permitted by tax authorities for creative
it as overvalue expenses or off in a year. Are mainly captured for physical verification
Asset type: expensed
(The check box capitalized should be unchecked in the relevant asset category)
Quick, detailed, mass:
While reporting from payables the exp line item should be manually tracked as assets
18. Production DATA THEORY
Production data for production based asset
1. Production capacity of the asset & its unit of unit of measure should have been recorded while recorded
while adding a Production based asset
2. Periodical Production details to be uploaded /recorded in the Production window.
Actual Production details can be recorded for a date range within the current period for dep.
Unit of measures for actual Production should be the same as the unit of measure entitled for Production
capacity in addition workbench.
Overlap in date range is not allowed.
Combined Production details for more than one period are not allowed
20. Depreciation & Roll back Dep (Oracle 11i)
Periodical Dep is calculated by running the “depreciate run” program
1) Dep is first run for corp. book
a) Without enabling the checkbox close period in run Dep screen
b) By enabling the checkbox close period.
2) in case depreciation is run without enabling the check box close period, for making any changes in the asset
addition/transaction during the current period, the pre request to run the program “Roll back depreciation ”
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3) Once Dep is run by enabling the check box close period, the current period is permanently closed in the
asset & the next period is open automatically
4) There are only 2 period statusesopen; close
21. FA DEP RUN PROGRAM
Nav: Dep>run Dep
Give book name
Period-gets (before running ensure are the transaction correct)
RUN-Request
View>field>
Default
Reports run & their purpose
Dep programs which run in box end are:
1. Generate a/c: creating a/c entries
2. Dep run request: Running programs
3. Calculate gain &loss: sale/retirement of assets
4. Dep Run: calculate Dep & same is charged in dep. Books
5. Journal entry reserve ledger report: enables to know how much Dep exp is charged for acc period
6. Process pending transaction: updating future transaction
Pending in asset book for next period
Query assets to know Dep charged
Book name
Give
Query: find >books
View details

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WK4: how Dep changed-
Cost of asset-salvage value1/12r of Dep
Production: cost no. of units produced/total cap
Flat NBY with bonus: as salvage excluded not enabled cost-salvage is taken for Dep cal
Bonus on call
To know bonus rule: go to bonus &query
CIP ADITIONS
 Construction in process: is construction of assets by purchasing component/materials required,
recurring cost on labor & other charges in building the assets
 CIP assets are recorded through quick addition, detailed addition and moss addition mode.
 Costs to CIP asset are added through the source line in detailed addition & mass addition
 CIP assets are not usable till these are fully built .so we dep express is changed on CIP assets
2. CIP ADDITIONAL –THEORY
CIP is building the asset
ASSET TYPE: CIP
1. QUICK ADDITION: TO add CIP assets quickly with NIL cost by using default rules as per asset category in a
single screen.
Cost addition cannot be added through Quick addition
2. DETAILED ADDITION: To add CIP assets will NIL cost further to add cost to CIP ASSET through source lines
screen
3. MASS ADDITION: To import mass data of CIP assets from payables a external system to oracle assets
Conversion of CIP assets to capitalized assets
If want to ∆ date of capitalization or add any invoices
Go to cap assetsquery book>asset type-CAP> reverse it>Query the asset in asset work bench
The asset no: will be reversed to CIPand can add source line.

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4. MASS ADDITION PROCESS IN PAYABLES
Mass addition is the process by which many asset are added automatically in ‘oracle asset’ using data of assets
from external sources
Normally mass addition is done the oracle payables or any other feeds system using the interfaces
invoices for purchase of ‘fixed asset’ are normally recorded in payables in invoices distribution lines, the items
of capitalization asset type are recorded with ‘Asset clearing a/c code combination’ as change a/c & the items
of ‘CIP Cost clearing a/c code combination as change a/c which are automatically enabled in the distribution
window to be tracked as assets
In case of other charges to purchase of capitalized assets/construction of CIP assets like freight, tax
miscellaneous exp & also for ‘exp asset charges account’, these lines records in the invoice distribution
windows are to be normally tracked as assets by enabling the relevant checkbox.
Validation & create a/cg of the invoice relating to purchase of assets
Run the program ‘payable transfer to GL’ with journal import parameter
Ensure that the program ‘payable transfer to GL’ is successfully completed & the invoice details are
transferred to GL interface
next run the program ‘mass addition create’ which performs transferring invoice details of assets to which are
transferred to ‘assets interface’ and analyze the report to confirm that all the relevant line records relating to
assets are transferred to “assets interface” to “asset database”
1. Prepare mass additions:
Add as new asset (cap/ cip /exp)
Merge line records & add as new asset
Add cost to existing asset (capitalized/ cip /exp)
Split line records & add as new assets
Place on hold incomplete line records
Place on review line records for assets transaction pending approval or reg review
2. Post the mass addition by the concurrent program ‘Post Mass addition’
3.Delete the ‘mass addition line records’ which are transferred to asset database or marked for deletion by
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Mass addition –Queue status in assets
In prepare mass addition workbench when lines are imported from payables to assets
1) Modules the status will be NEW: when line modules are open and if
2) Details are updated and saved-on hold if field are entered & reg approved from authorities the status can
be changed to
3) On-review
Asset lines are completed- it can be posted to asset database & incorporate in asset book, the queue status
can be manually changed which will be ready for posting?
4) These records can be posted to asset book by running post mass addition program
5) Irrelevant line records not pertaining to assets module can be deleted by selecting status as delete
6) In case line records are need to cost adjustment to cap. Assets/CIP asset. If these line records are adjusted
to these relevant assets & if selected for posting, status becomes cost adjust.
7) In invoices source lines are to be merged clubbed into single asset record, then we can choose merge, when
line gets merge with parents line, the line status will be merged.
8) When invoice is split into several records Eg: furniture can be split into chair & tables (2 line records)
9) Capitalization
10) Posted
DELETE MASS ADDITION:
Give Para sub view  Req view o/p.
Prepare Mass query your book– could not find any invoice
Query book – can details of asset – in mass addition
7. TRANSACTION TYPES.
Future add / future adj / future capitalize:
Under certain circumstances, running of ‘Dep run’ program with close period option may get delayed
with the result. Current period/ reuse past period / as per system date may not be opened in the asset
book.

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So, Assets transactions for such current/past periods as per system date cannot be captured in asset
book unless and until the relevant period is opened in asset book.
But to record these transactions as and when they occur, “oracle Assets” enables us to record/capture
the same in ‘prepare mass addition work bench’ as the toll type transactions to be transferred to asset
book database in future.
 1. Addition as future Add trans type
 2. CIP additions as future Add trans type
 3. Cost adjustment to capitalized assets & CIP assets as future adjust trans type
 4. Capitalization of CIP assets as ‘future cap’ trans type
The recorded future type asset transactions for the Asset book are temporarily stored in the interface
& these transactions become effective for the asset book only when the relevant period is open in
asset book.
The process which opens the relevant period of the asset book is the “Dep run” program with enabled
check box for ‘close period’ for the previous period which closes the previous period & opens the
relevant period as ‘current period’.
‘Oracle Assets’ automatically update the transactions in asset database of the recorded future type
transaction Details the concurrent program ‘ Process pending transactions’ in Dep run.
CAPITALISE CIP ASSET ON FUTURE DATE:
Click capitalize find  select one CIP asset done (give trans date)
Enter book name – find  you can see one lap
Dep Run Give book name  Close period
9. LEASED ASSET THEORY
Lease is a contractual argument but the lessor & lessee with predetermined payments terms
using the asset/s of the lessor by the lessee for the lease period.
Leased assets are operating leased assets unless they satisfy lap test & opted for the lap by the
lessee
Leased assets can be lap if any one of the following -----------------
1. Transfer of ownership
2. Bargain per option
3. If the lease period equals and exceeds 75% of ECO life of the leased asset
4. If the present value of the lease payments equals/exceeds 90% of fair unit value.
10. LEASED ASSET PAYMENT SCHEDULE
Oracle calculates present value using the pay schedule for a pre-determined pay amount for a period
of time including interest , if any
View amortization will show the total income lease as the difference but the present value & total
lease rental payments
Request to define payment schedule:

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1) Name of the payment schedule
2) Lease date
3) Interest date
4) Compounding frequency of cal of interest monthly/q-ly/semi-annually/annually
5) Start date of payment
6) Rental Payment amount
7) No. of installments
8) Payment type: Annually /Balloon Payment / Bargain per option / Bargain renewal option
/Guaranteed Residual Values / Penalties
11. Foreign EXPORT LEASE PAYMENTS TO PAYABLES
 Lease payments are exported to payables automatically through payables interfaces
 Queries the base payments from the menu. ‘Lease Payment to payables for exp’. All the lease
payments status will be ‘new’ initially. Select lease payment to be exported for changing the status to
post, save it &export the lease payments
 ‘Export lease payments to payables program’ is run automatically after export (clicking)
 Run the program ‘Payable Open Interface’ import in Oracle payables. Only then the lease payments
details are imported from the payable interface to payable database as Invoice as lease rental
payments
 In payables, Query the invoice work bench the invoice number as appeared in the ‘interface import
report’ for the lease payment. Validate app,create aleg & eff payment of the invoice on time
13. DEP / ROLL BACK DEP
 Periodical Dep is cal by running the ‘Dep run’ programs.
 Dep is first run for corp. book w/o enabling check box
1. W from last -----
Enabling the check box closed period
14. ROLL BACK DEP – LAB
Dep  Run Dep  Run for Jan 12 to calculate depreciation
Process pending will not be running since the period is not closed
View  Request  find  clo
Dep changed
Roll back dep to bring it to original .su
Give asset in asset work bench finance >
Dep for Jan will not be found.
15. DEP FOR FUTURE ASSET
Close & run dep
Dep  run Dep  close period  Request  find >

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Query asset book  give book name  select asset
What if Analysis
What if analysis is a tool to analyze the effect of use/changes in dep method/Rates / Salvage value/ Bonus rate
/ prorate convention for a prescribed no of periods from the current period to future period with respect to
1) Existing assets
a) Under one asset category
b) Placed in service in a Date range
c) Asset number range
(Including fully reserved assets)
2) Hypothetical assets
Under one asset category with proposed date place in service ,estimated cost for purchase as ‘new’ &
in case of proposed purchase of ‘used’ asset , additional information of estimated Accumulated dep , if
any
3) Insurance
asset insurance window captures information such as policy number , insurance co, calculation
method, Base insurance value ,Insured amt, ins under & current values, Insurance coverage category
(Acc, fire,theft,third party), Hazard class ( valuable, fragile, Explosive, Portable)
INSURANCE:
Three types of cal. method are provided in Oracle Assets
1) Value as new: This method cal current value on cost bases{re cost price index factor for the rate
period}
2) Market value: This method calculates current value on NBV (i.e. NBV price index factor for the
relevant period / price factor for the previous period)
3) Manual value: There is no actual cal, we enter the current value manually
Run the program ‘insurance calculation routine’ for current value
Insurance can be queried & also the ins com details can be updated the maintain window
WARRANTY THEORY
Warranty is a service contract given by the manufacturer to vendor for any asset purchase

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In Oracle assets warranty info details the warranty number ,Desc, start date vs. End date,cost,supplier
name and no, ‘ee’ assignment for warranty
Predefined warranty can be assigned to any asset
Warranty once assigned to any asset cannot be updated / deleted
Same warranty can be assigned to any no. of assets
Using the warranty num, we can query the assets
8. SCHEDULE MAINTENANCE EVENT THEORY
Schedule maintenance events capture the information on events of Repair & service of assets
Details of time schedule of periodical/half yearly/Annual service maintenance can be planned and
recorded
The maintenance event is used for corp book
Maintenance schedule can be rec. by selecting details
Time schedule
Corp book
Asset number range
Date placed in service range
Asset location
Assembly
Events name and Desc
Frequency in dates/days of maintenance
Maintenance cost
Supplier name & no, Contact name & no
Run the asset maintenance scheduling program
9. VIEW /PURGE MAINTENANCE DETAIL
 To view maintenance details of assets ,select the asset no: /Des / asset category /tag no: /serial no: /
Asset key Query mode
 Initially the maintenance status is Due
 As & when the supplier completes the maintenance events, the status column need to be updated as
completed
 Purging of main details can be done for old data as per req
 The selection criteria for purge: 1. Book 2. Asset no: range 3. Maintenance date range 4.Asset category
5. Status of maintenance
11. TAX BOOK THEORY

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 Tax book is maintained for changing dep on assets as per tax rules of the country & PO claim tax relief
on Business income. Tax book is the deferred income tax liability by comparing with corp. book
 More than one tax book can be maintained and copy the details of assets other than dep details from
the corp. book
 The transactions of all assets in corp. book is copied to tax book
1. Initial mass copy
2. Periodic mass copy
 Tax books are created in book control by selecting the classified as tax which shows the tax rules to be
adopted
12. TAX BOOKS LAB
Su  Asset sys  save  new
KR Tax book - class book
Ass: PN corp. book
Dep  same as corp. or new have same current period  (LOV)  Dec‘07
Dep if retires in first year
ALCG RULES:
Natural Account: Shift – F5 – auto copied from corp.
The tax rule region / tab Transactions to be copied from corp. book to tax book
1. Allow res adjustment
2. Allow inv tax
3. Allow CIP assets
4. Allow cost ceilings
5. Allow exp ceilings
6. Allow mass copy
 Additions
 Adj
 Returns
 Salvage value
 Group ass addition
 Member asset assignment
Journal categories:
Journal: Assets & other details

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Tax rules:
1. All res adjustment if (YES) allow ∆s to acc dep in tax book
2. All inv taxes  (NO)
3. All CIP assets  want to add as per corp book but (NO)
4. All cost online: (YES) Dep on lost
5. All Exp : (YES) Dep Exp
6. All Mass copy: (YES) copy add, adj, return book, corp book
Sal Value want copy
Group Rules:
Gr ass addtn : want copied
Save  close
13. TAX BOOK INITIAL MASS COPY THEORY
‘Initial mass copy’ is the process by which all the information of existing assets are copied from
corp book to tax book excepting dep details. For the copied assets in the tax book, the dep rules are
default from relevant asset category of tax book
To copy all the existing assets of corp book to tax book run the program ‘Initial Mass Copy’. First
time copying is done the initiate mass program
Initial mass copy program can be run more than once to copy all the existing assets & this will not
duplicate any trans
Corp book period is to be closed before running ‘initial mass copy’ for the relevant period up to
which assets are to be copied
Assets retired before the end of that fiscal year & asset addition after the end of the year are not
copied in ‘Initial mass copy’
14. TAX BOOK PERIODIC MASS COPY THEORY
 Periodic mass copy is the process of updating tax book for each period. Subsequent to ‘Initial mass
copy’ as per the corp book
 Periodic mass copy program copies all the transactions for each period subsequent to ‘Initial mass
copy’ to tax book from corp book
 Periodic mass copy is done only after closing the current period of corp book & by bringing the current
period as open in tax book
 Periodic mass copy program copies the following info to tax book from the corp book during current
period as per tax rules in the tax book
1. Addition
2. Adj
3. Retirement

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4. Reinstatement
15. TAX BOOK INITIAL PERIODIC LAB
After def tax book
Create Exp ceiling & cost ceiling
Su  dep ceilings
Enable cost to enter cost ceiling
Ceiling : PN Cost ceiling
Des :
Currency : USD
Dates placed in service
From date To date Ceiling If an asset cost is 5l it will dep
on 4l not ou sl
01/jan/2005
2006
31/dec/2005
2006
4,00,000
4.50%
Save
Click exp : down ous
Ceiling
D.S
Currency
From date To date Year of life Ceiling
01/12/05 31/12/05 1 3,000
01/01/06 31/01/06 2 3,000
1
Save & close
Asset category -- to define tax
Su  Ass sys  Ass category query F11
Go & GL & press down arrow
Book : TB
Asset cost : -5321-  tools
-1570-
Default rules:

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Give dep method NBV PR KRPDC
2) Goodwill: Flat NBV – 15/15 PRORATE NPC
3) L & B – Building – NBV – 10%/12% ppc
Ceiling will be fixed only when govt imposes dep on particular asset
4) Land
5) Computer –NBV- 20
6) Copies – Flat NBV
7) Machine flat WBI SPC
8) Flat NBV
9) Las – Flat NBV-ceiling –cost
10) Trucks flat NBV –SPC –exp ceiling
Close
Initial mass copy: (from corp book to tax book)
Tax  initial mass copy  enter book name  submit
View  find  close
Inquiry  find inj assets select book
Can view both books
Tax book dep should be run as it will not be copied from corp book
Dep  run dep  give tax book  close run
Inq find infbk corp name  find  ceiling
Check dep cost 22/100 1/12
Truck  3000/12 = 250..
PERIODIC MASS COPY:
Tax  periodic mass copy  tax book jan 2008  ok
Ok sub  req
Check corp book to know whether assets are copied
16. CAPITAL BUD THEORY
Capital Budget is an estimate of cap exp for pur or cons of asset in future
Cap Bud can be entered manually or by uploading from other sys the budget interface
In Oracle assets, we capture annual cap budgets for bud book

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1. Asset category wire
2. Dep Exp A/C wire
3. Periodic limits
17. BUDGET REPORT THEORY
Cap Budgets are used to gen the for repo
1. Estimate of Cap exp
2. Periodical comparison of cap bud vs. actual
3. Cap spending report
4. Projected dep Exp based on cap budget
These reports serve as tools to ctcl the cap exp & also guide cach flow & fund flow planning
18. BUDGET BOOK
Su  Ass sys  book control
Query corp book  save  down arrow  budget book
Class  budget
Give des
Associate corp book  KR corp book
Give details
No in Accounting rule
Natural account shift F5
Our category
Save & close
Bud uploadto create Budget book
Give book name
Enable create Bud book save
Enter budget enter amount
Book :
Categ: Mach

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Expact 120-7330
Enter amount :1l , 4l, 5l
Save & close
Asset wk bench & query Bud book  can view for every uth  finan eq 
Run reports: Other  Run req  Budget rep  Sub  view o/p
Sub new req  Bud to act Rep  give book name, Dec -07. Ok view o/p
cl-cl
bud upload  another bud delete existing & upload new
19. DEP PROJECTIONS
Dep projections program is used to calculate projected dep of existing asset for current / future
periods
It is used as a tool to adopt correct Dep method &rates
It is mainly used for generating rep details for cost center & assets
It can be submitted for four books at a time
The pre req is projection calendar (Dep calendar)
20. DEP PROJECTION LAB
Cannot be a PDF based method asset
Dep  projections 
Proj : KR calendar
No period
Starting period: jan ‘01
Book: give book name –attach –Tax/exp
Run
View/ Req
TRANSFER AND MASS TRANSFER
 Transfer of asset is a change in the assignment of asset in any one or more of the foll details
Employee assign
Dep Exp assign
Location Exp

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 This is financial impact on transfer of assets in the case of change in Dep Exp assignment
 Transfer of assets can be for individual asset or more than one asset
 Transfer of multiple assets is done the mass transfer by preview & final run
 The selection criteria for mass transfer
1) Single Dep exp act & range of A/C
2) One location to another location
3) One employee to another employee
3. CHANGES THEORY
 Changes mean adj in cost of an asset or Dep of an single asset (Fin & Dep inf)
 In book ctrl enable allowances changes in a/c rules
 Changes for an individual asset involves any of following adjustments:
1. Cost addition to capitalized asset
2. Change in current cost of capitalized asset
3. CIP cost addition
4. Salvage value
5. Dep methods/rates
6. Bonus rule
7. Date placed in service
8. Prorate convention
9. Ceiling in case
10. Unplanned Dep
5. MASS CHANGES
 Mass changes means ∆ update in Dep inf for multiple assets
 In book ctrl enable allow mass changes in accounting rules
 Mass changes in Dep for cap assets can be done by selecting the following criteria
1. Asset no. range
2. Dates placed in service range
3. Asset category
4. Asset type
5. Fully reversed asset
 Mass changes can be made to any of the following existing values to a corresponding new values (
mandatory both values ) for the above selection criteria assets ( by pur view, Run & review )
 Prorate convention
 Dep methods, rates / life in years & months
 Bonus rule & group assets ( stand alone/min)
5. MASS CHANGE LAB

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ASS  Ass wk bench  query book  find  select one asset books  . Give book name  give current
cost cost defaulted. Things in mandatory field can be changed to amt & amt can be changed  Dep
method can be ∆dwith diff/same date 
Date placed in service can also be changed. Bonus rule can also be changed done.
Requery the same asset  financial inq  changes can be viewed
MASS CHANGE
Mass tan  changes choose book  status new  can be done amortization changespreview id
view
Requerypart no
Status previewed run
3 req are run
Mass ∆ Review report
Mass ∆ program report
6. REVALUATION THEORY
 Revaluation is a process to adjust the book value of the asset as per the inflation or deflation rates in
order to bring it to mkt value
 Revaluation is done for
1. Prior period asset which are not fully retired
2. Assets added in current open period
3. Pending retirement assets
 Revaluation is not automatically copied to tax books rev of asset has to be performed separately in
each tax book which is associated to the corp book
 Rev is done by specifying the default rev rules in the book ctrl which has over option in mass rev work
bench
1. rev fully reversed assets
2. Maximum fully res revaluation
3. Life extension factor
4. Life extension ceiling
5. Revaluation ceiling
 Rev is done either by selecting the asset category on asset no with the percentage of inc/decrease
REVALUATION BOOK CONTROLS
 MAIN PRE REQ IN BOOK CTRLS TO DO REV OF ASSETS
 Allow rev check box enabled

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 Optionally check boxes against the following can be selected in book controls as per co
requirements
 Revalue Accumulated dep or not
 Revalue YTD Dep or not
 Retire Rev res
 Amortize Rev reserve
 Further, optionally choose the following default rev rules also in book controls which u can override
in mass rev work bench
 Rev fully res assets
 Maximum fully reserved Rev
 Life extension factor
 Life extension ceiling
 Revaluation ceiling
8. RETIREMENT IND ASSET THEORY
Retirement of an individual asset is done in asset work bench by selecting
1. Asset
2. Click ret button & go to ret screen
3. Select book: corp./tax book
4. Retirement date
5. Units & cost retired
6. Retirement type
7. Ret convention
8. Proceeds of sales
9. Cost of removal
10. Check invoice no:
11. Sold to
12. Trade in asset & des
13. Group asset(red rate res retired, prior year ,res retired; choose as to rec gain min or not)
14. Select sub components retired with parent assets
9. RET INDIVIDUAL LAB
When asset is lost, damaged or sold
INDIVIDUAL RETIREMENT: Ass  Ass work bench  select asset retirements give lost
Ret type: sale
Done & save
Dep run cal gain & loss to calculate gain from sale

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Inq  find inq  to view details of ret asset select retired  books  lost history trans full ret 
details  status processed
Cal of P or L:
Proceeds of sale: xxx
Less cost : xxx
Net proceeds:
Less current cost:
Add acc Dep
MASS RET: Query book in ass work bench find  select ass which has been retired already tools view a/c
10. RETIREMENT RUN STATEMENT THEORY
An asset is to be said as retired in books whenever sold, damaged/discarded
Retirement can be full or partial
Retirement of assets can be for individual asset or mass assets
Assets added during the current period cannot be retired in the current period
To cal gain or loss on retirement, run cal gains/losses
Rectification of wrong ass can be done by reinstatement in the asset work bench or in mass ret
window
Reinstatement can be done within that fiscal year only
After reinstatement ,again the program cal gains & losses’ is to run to reserve the original ret
transaction
11. RUNST IND LAB
Ass ass work bench  set any set
Query no  which was set  retirement undo retirement
Del retirement transaction
Dep  cal gain/loss  sub
Ass work bench  query  Retirement Query ass  processed ref no: reins
Gain run cal gain/loss
Inq find  query book 

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IMPORTANT TERMS
1. Debit : Benefit receiving aspect of a transaction
2. Credit : Benefit giving aspect of a transaction
3. Cash basis:
4. Mercantile/Accrual:
5. Asset : anything of value owned by a business
6. Fictitious asset: shown along with other assets but actually representing unadjusted losses
7. : statement prepared by a seller of goods to be sent to the buyer, showing net amount payable
8. Voucher: written record & evidence of transaction
 Factoring: Parties factor (financial intermediary )  client
Is an argument where the receivables out of sales of gl’s are sold to factor thereby transferring the title of
goods & ser to the factor & the right to rev amount receivables
Types  Recourse & without recourse
If the buyer fails to pay the client will pay to the factor
 For f: is financing of receivables pertaining to international trade. Always without recourse
 Clean bills: these bills are not accompanied by any documents that show that the trade has taken
place. High interest
12. MASS RETIREMENT
 Retirement of a mass assets by a single process is known as ‘MASS RETIREMENT’
 Selection criteria of name ret:
1. Book : corp. book/ tax book
2. Ret date
3. Ret type
4. Units
5. Total proceeds of rate
6. Total cost of remaining
7. Option to ret sub components
8. Project no & task no : relating to CIP assets
9. Ret criteria
 Retirement criteria:
1. Asset type : cap/CIP/expensed

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2. Option to retire fully res assets
3. Exp accounts range
4. Location
5. Employee name/no
6. Asset category
7. Asset key
8. Cost range
9. Asset no : range
10. Dates in service range
 Additional criteria:
1. Tag number
2. Serial number
3. Manufacturer
4. Model
5. Group asset association
6. Group asset
13. MASS RETIREMENT – TRANSACTION PROCESS
1. Create or prepare for mass retirement with complete retirement data
2. Retire & review if the enter transaction is to be through
3. Discard the process if correction is to be done. The recorded ‘Mass Ret Agreement’ fails or
alternate better offer to be recorded
4. Instead of discarding enter mass retirement transactions, corrections if any, can be made
the
Prepare mass retirement work bench
Post mass retirement program
5. Run “cal gains/losses” program
6. Rec of wrong mass ret trans can be done by querying the rel mass transaction no & clicking
retirement button & run again ‘cal gain/loss’ program
15. RECLASSIFICATION THEORY
The assets are reclassified from the existing category to new asset category th’ mass reclassification
which updates if , correct any errors or consolidate categories
To do mass reclassification enable check box ‘Allow mass changes’ in the accounting rules region of the
‘book control’ window
Reclassification to the same category will have no effect
By default reclassification of asset without changes in Dep rules of the old category of the asset can be
done

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Reclassification of asset to new category by inheriting the Dep rules of new category can also be done
by enabling the req check box. Any resulting Dep adj can be either exp off in current period or
amortized
For reclassification of any asset for which previously amortized adj was done ,the check box amortized
adj need to be enabled else Reclassification will fail
Assets are reclassified according to:
1. Asset type: Capitalized/CIP/Exp/Group
2. Dep exp a/c
3. Location
4. ‘ee name
5. Asset category
6. Asset key
7. Cost range
8. Asset no: range
9. Dates in service range
10. Fully res assets
On reclassification, Des flex field info for the assets entered in the old category will get copied only if
enable the check box for ‘Copy category Des flex field to new category’ subject to one change in the
main category of the asset cat segment
Run the programs for preview, Final run & review
17. UNPLANNED DEPRICIATION THEORY
1. A special Dep expenses mainly used in Netherland & Germany
2. Unplanned Dep for an asset can be entered in the asset work bench in book screen by selecting the
button unplanned Dep
3. Initially unplanned Dep will always be positive & subsequent unplanned Dep for the same asset can be
positive/ -ve as per the req of the Dep adjustments
4. Unplanned Dep can be entered for the corp. book and/or for the tax book
5. Unplanned Dep can be entered for current period only
6. Unplanned Dep can be amortized from the period for assets for which amortize adj check box is
enabled
7. Unplanned Dep feature is not available for assets using table based Dep methods
8. Unplanned Dep exp must not exceed current N/B value
18. LAB UNPLANNED DEP
Query asset book in asset work bench  select an asset books enter a book name  fin info will be def
unplanned Dep should not exceed NBY

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Excess Dep can be amortized
Click unplanned
Type: Storm dam
Amount: 25,000
Exp A/C: Amortize
Go to final query: additional dep will be changed
19. PHYSICAL INVOICE THEORY
1. Physical invoice is periodic reconciliation of phy inv data of assets with oracle assets
2. Physical inv can be recorded manually or by automatically using barcode scanner in to a file
3. The collection of data are reconciled, if there are any discrepancies
4. The physical inv data should contain at least the following info
1. Asset no
2. Location
3. No of units
5. For comparison, run the physical inv comparison program & the res can be viewed in the phy inv
window or by running the phy inv comparison rep
6. The discrepancies, if any are updates manually for the respective assets in the asset work bench by the
co or in the phy inv report by the auditors till such time in both reports the status is reconciled
20. PHYSICAL INVOICE LAB
Phy inv enter
Give name:
Open
Give asset no: Give locations, units
Save & close
Run comparison
Compare run comparison Id
View inventory no find statusreconciled
Enter Give book

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21. JOURNAL ENTRY ASSET
1. Assets transactions from asset module are to be transferred to GL
2. Use the navigation : JE standard & run the concurrent program ‘create journal entries’
with parameters :Asset book & period
Prereq to run the above programs
1. Run Dep programs
 Without closing period
 Closing period
2. ‘create journal entries’ program can be run any no. of times for the same period with closing the
period for monitoring & drilldown operations by GL control
3. Rollback JE is to be done in case of run option
 Then only rerun of the journal entries program can be done after running Dep program by
enabling closing period
22. JOURNAL ENTRIES LAB
Dep STDbook  give period & e20
Run
Go to GL Enter Ba%DS% find
Review journal check funds Res fund Id 
Requery
Inq avg –
Give a/c period:
1520 show journal details
24. DEFERRED DEP JOURNAL ENTRIES
Def Dep is the diff b/w corp. book Dep & tax book dep. It is useful to cal. Projected future IT liability. Run
the program ‘Create def Dep JE’ with parameters tax book, tax period & associated corp. period for deferred
Dep exp journal.
Multiple times running of the program for the same period is not possible. Roll back of Dep J.E.
Setup –Ass sys –Book control

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Query tax book – enable allow GL posting
J.E – DF
Tax book: PN tax books tax period: dec’07
Corp period
Submit
Switch to GL: J.E –Batch: %BH% Tax% find
Review journal check funds Res funds  post Requery
----------------------------------------------------------------------------------------------------
ACCOUNTING ENTRIES
1. BACK TO BACK
S.NO PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE
I Back to Back
1 Sales Order Entry
No Accounting
2 Creation of Requisition
No Accounting
3 Creation of Purchase Order
No Accounting
4 Receipt
Receiving A/c 100 At PO Price
Receiving Option
Setup ORG
AP Accrual A/c 100 At PO Price Inventory Org Setup ORG
5 Delivery
Raw Material Sub Inventory
A/c 80 At Standard Cost
Sub-inventory
Material A/c Setup SUB-INV
Org Level A/c willl
get defaulted
Pur.. Price Variance A/c 20
Diff between PO -
Standard Inventory Org Setup ORG
Receiving Option
Setup ORG
6 Reservation
No Accounting
7 Picking

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Staging Sub Inventory A/c 80 At Standard Cost
Sub-inventory
Org Level A/c willl
get defaulted
Sub Inventory A/c 80 At Standard Cost
Sub-inventory
Org Level A/c willl
get defaulted
8 Shipping
COGS 80 At Standard Cost Item
Org Level A/c willl
get defaulted,
OMTT
Sub-inventory
Org Level A/c willl
get defaulted
2. DROP SHIP
PARTICULARS DR CR SPL NOTES
ACCOUNT IS
PULLED SPECIFIC
OPTION
AVAILABLE
I Drop Ship
1 Sales Order Entry
No Accounting
No Accounting
3
Creation of Purchase
Order
No Accounting
4 Receipt
Receiving Option
Setup ORG
5 Delivery
Raw Material Sub
Inventory A/c 80 At Standard Cost
Sub-inventory
Org Level A/c willl
get defaulted
PPV A/c 20
Diff between PO -
Stnd Inventory Org Setup ORG
Receiving Option
Setup ORG
6 Reservation
No Accounting
7 Picking
Staging Sub Inventory
Sub-inventory
Org Level A/c willl
get defaulted
Sub-inventory
Org Level A/c willl
get defaulted

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8 Shipping
Org Level A/c willl
get defaulted, OMTT
Staging Sub Inventory
Sub-inventory
Org Level A/c willl
get defaulted
3. SO-WORKORDER FLOW
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC
OPTION
AVAILABLE
1 At the time of material issue
WIP Material A/c 100 WIP Class
Subinventory material A/c 100 Org/Subinventory
2 Resource Valuation
WIP Resource valuation A/c 100 WIP Class
Resource Absorption A/c 100 Resource Definition Form
3 Overhead Cost (Material)
WIP Material overhead A/c 10 WIP Class
Sub inventory material
overhead A/c 10 Org/Subinventory
4 Overhead Cost (Indirect)
WIP Overhead A/c 100 WIP Class
Overhead absorption A/c 100 Overheads Definition Form
5 WIP Job Completion
Staging/Completion Sub-
inventory A/c Std Cost Org/Subinventory
WIP Material A/c WIP Class
WIP Resource valuation A/c WIP Class
WIP Material overhead A/c WIP Class
WIP Overhead A/c WIP Class
WIP Material Variance A/c
Diff bet. Actual -
STD WIP Class
WIP Resource Variance
A/c
Diff bet. Actual -
STD WIP Class
WIP Material Variance A/c
Diff bet. Actual -
STD WIP Class
WIP Overhead Variance A/c
Diff bet. Actual -
STD WIP Class
5 Picking
Sub-inventory Material A/c
Setup SUB-INV
Org Level A/c
willl get defaulted

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Setup SUB-INV
Org Level A/c will
get defaulted
6 Shipping
Org Level A/c
willl get
defaulted, OMTT
Setup SUB-INV
Org Level A/c
willl get defaulted
4. INTER ORG/INTERNAL SALES ORDERS
SR.NO PARTICULARS DR CR
SPL
NOTES ACCOUNT IS PULLED SPECIFIC
1
FOB Point is set to Receipt without Charges &
Freight - Using Transaction Type - In transit
Entry at the time of ISSUE
Intransit Inventory A/c ( Sending Org ) 100
At Std
Cost Shipping Network ORG
Sub Inventory A/c ( Sending Org ) 100
At Std
Cost
Setup ORG
Entry at the time of RECEIPT
Inter–Organization Receivable( Sending Org ) 100
At Std
At Std
Sub Inventory A/c ( Receiving Org ) 100
At Std
Cost
Setup ORG
Inter–Organization Payable ( Receiving Org ) 100
At Std
2
FOB Point is set to Receipt with Charges &
Freight - Using Transaction Type - Intransit
At Std
At Std
Cost
Setup ORG
Inter–Organization Receivable( Sending Org ) 100
At Std
At Std
Inter–Organization Receivable( Sending Org ) 15 Shipping Network ORG
Freight Expense A/c ( Sending Org ) 15 At Transaction Level
Inter–Organization Receivable( Sending Org ) 10 Shipping Network ORG
Inter–Org. Transfer Credit ( Sending Org ) 10 Shipping Network
Subinventory A/C (Receiving Org) 100 At Std Sub-inventory Material A/c

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Cost Setup
Purchase Price Variance(Receiving Org) 25 Shipping Network
Inter–Organization Payable (Receiving Org) 125 Shipping Network ORG
3
FOB Point is set to Shipment without Charges &
Freight - Using Transaction Type - Intransit
Inter–Organization Receivable (Sending Org) 100
At Std
At Std
Cost
Setup ORG
Intransit Inventory A/c (Receiving Org) 100 Shipping Network ORG
Inter - Organization Payable (Receiving Org) 100 Shipping Network ORG
Sub Inventory A/c (Receiving Org) 100
At Std
Cost
Sub-Inventory Material A/c
Setup ORG
Intransit Inventory A/c (Receiving Org) 100
At Std
4
Direct Inter–Organization Transfer without FOB
being Receipt and without transfer credit and
freight
Inter–Organization Receivable (Sending Org) 100
At Std
Sun Inventory A/c (Sending Org) 100
At Std
Cost
Setup ORG
At Std
Cost
Setup ORG
Inter - Organization Payable (Receiving Org) 100
At Std
5
Direct Inter–Organization Transfer with FOB
being Receipt with transfer credit and freight
Entry at the SOURCE
Inter–Organization Receivable (Sending Org) 120 Shipping Network ORG
Sub Inventory A/c (Sending Org) 100
At Std
Cost
Setup ORG
Inter–Org. Transfer Credit ( Sending Org ) 10 Shipping Network ORG
Freight Expense A/c ( Sending Org ) 10 At transaction level ORG
Entry at the DESTINATION
At Std
Cost
Setup ORG
Purchase Price Variance (Receiving Org) 20 Shipping Network ORG
Inter - Organization Payable (Receiving Org) 120 Shipping Network ORG
6
If the Standard Cost is different in Sending &
Receiving Org

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5. PROCURE TO PAY
No Accounting
2 Creation of Purchase Order
No Accounting
3 Receipt
Receiving A/c 100 At PO Price Receiving Option Setup ORG
4 Delivery (Org Level A/c will get defaulted)
Raw Material Sub Inventory
Setup SUB-INV
PPV A/c 20 Diff between PO - Stnd Inventory Org Setup ORG
Receiving A/c 100 At PO Price Receiving Option Setup ORG
5 Invoice matching with PO
AP Accrual Liability A/c 100 At PO Price Receiving Option Setup ORG
Invoice Price Variance A/c 10
Diff between Invoice -
PO Inventory Org Setup ORG
AP Liability A/c 110 AT INV Price Financial Options/Supplier Site
6 On making Payment
Liability A/c 110 At Invoice Price Financial Options/Supplier Site
Cash 110 At Invoice Price Bank A/c Setup
6. Order To Cash Cycle
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED OPTION AVAILABLE
1 Sales order entry
No Accounting
Intransit Inventory A/c (Sending Org) 100
At Std
At Std
Cost
Setup ORG
At Std
Cost
Setup ORG
Inter - Organization Payable (Receiving Org) 100 Shipping Network
Purchase Price Variance (Receiving Org) 20 Shipping Network

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2 Sales Order Pick
From Sub Inventory A/c 100 At Standard Cost
Setup ORG
To Sub Inventory A/c 100
At Standard
Cost(Staging)
Setup ORG
3 Sales Order Issue
COGS 100
It can be fetched
from five places
Master Item/Org/Order
Type/Line Type/Shipping
Parameters
Master org/shipping
parameters/order
type/Inv org
To Sub Inventory A/c 100 At Standard Cost
Setup
4 Transaction level
Receivable A/c 120 Transaction type sales rep/customer site
Tax A/c 10 Tax codes
Transaction type/sales
reps/customer bill to
site/Standard lines
Freight A/c 10 Transaction type
sales rep/customer bill
to site/standard lines
Revenue A/c 100 Transaction type
sales rep/customer bill
to site/standard lines
Receipts
5
Receipts with no remittance
method
Cash 100
Before application of
the receipt Receipt class Bank Definition Form
Unapplied A/c 100 Receipt class Bank Definition Form
Unapplied A/c 100
After application of
the receipt to the
transaction Receipt class Bank Definition Form
Receivables A/c 100 Receipt class Bank Definition Form
Cash A/c 100 Receipt class Bank Definition Form
Unidentified A/c 100
In case of receipt
without customer or
transaction Receipt class Bank Definition Form
Unidentified A/c 100
when customer
indentified Receipt class Bank Definition Form
6
Receipts with remittance
method.
Confirmed receipts A/c 100
At the time receipt
entry Receipt class Bank Definition Form

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Remitted receipts A/c 100
On remittance to
bank Receipt class Bank Definition Form
Confirmed receipts A/c 100 Receipt class Bank Definition Form
Cash 100
On clearance of
cheque Receipt class Bank Definition Form
Remitted receipts A/c 100 Receipt class Bank Definition Form
7
Receipts with discount/unearned
discounts
Cash 90
At the time earned
discounts Bank
Discount earned A/c 10 Receivable activity
Receivable A/c 100 Transaction Type
Cash 90
At the time of
unearned discount Bank
Discount unearned A/c 10 Receivable activity
Receivables A/c 100 Transaction type
7. Adjustments in AR
PARTICULARS DR CR
SPL
NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE
1 Adjustments
Adjustment A/c 100 Receivable activity
Receivable A/c 100 Transaction type Sales Rep/Customer Site
8. STANDARD COST UPDATE
PARTICULARS DR CR ACCOUNT IS PULLED SPECIFIC
1 Inventory Std cost update
Sub Inventory A/c 100 Sub-inventory Material A/c Setup ORG
Cost Adjustment A/c 100 At the Standard Cost update request level
2 Intransit material Std Cost Update
Intransit Inventory A/c 100 Shipping Network ORG
Cost Adjustment A/c 100 At the Standard Cost update request level

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3 WIP Material Std Cost Update
WIP Material A/c 100 WIP Accounting Class
WIP Material Variance A/c 100 WIP Accounting Class
9. Miscellaneous Receipts in AR
OPTION
AVAILABLE
1
Miscellaneous Receipt
at receivables
Accounting
Cash 100
Entered Receipt
Amount
Bank Account
Definition Bank(Internal)
Misc Cash A/c 100 Receivable activity Distribution set
2
Miscellaneous
Issue/Receipt At
Inventory
Issue
Misc Issue A/c 100
At Misc Issue form
level
Sub Inventory A/c 100 Org/Subinventory level ORG
Receipt
Sub Inventory A/c 100 Org/Subinventory level ORG
Misc Receipt A/c 100
At Misc receipt form
level
10. MISC PAYMENTS
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED
OPTION
AVAILABLE
1
On entering a
Misc.Invoice
A dummy Misc.Vendor is
created for this purpose and
the details are captured in the
DFF.
Charge A/c 100
Distribution Set/PO charge
A/c
Liability A/c 100 From the supplier site
Financial
Options
2 On making the Payment

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Liability A/c 100 From the Supplier site
Financial
Options
Cash 100
From the Bank A/c's
Definition
3
On making Payment
(when Cash Mgmt is
implemented)
On Payment
Liability A/c 100 From the supplier site
Financial
Options
Cash Clearing A/c 100
From the Bank A/c's
Definition
On Clearing
Cash Clearing A/c 100
From the Bank A/c's
Definition
Cash 100
From the Bank A/c's
Definition
11.Manual WorkOrder
PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED
OPTION
AVAILABLE
1 At the time material issue
WIP Material A/c 100 WIP Class
Sub-inventory Material
A/c Setup ORG
2 Resource Valuation
WIP Resource valuation
A/c 100 WIP Class
Resource Absorption A/c 100
Resource Definition
Form
3 Overhead Cost (Material)
WIP Material overhead
A/c 10 WIP Class
Sub inventory material
overhead A/c 10 Org/Subinventory ORG
4 Overhead Cost (Indirect)
WIP Overhead A/c 100 WIP Class
Overhead absorption A/c 100
Overheads Definition
Form

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5
Outside Processing (In
case of fixed standard
cost to resource)
WIP OSP A/c 100 WIP Class
Variance A/c 95
Resource Definition
Form Org Parameters
Resource A/c 5
Resource Definition
Form Receiving Options
Oracle AIM
Oracle's Application Implementation Methodology (AIM)
1. DEFINITION - KICK OFF MEETING
 FEASIBILITY
 PROJECT PLANNING
 RESOURCES
 AS IS - BP 40- Mapping Current Business Process
2. TO BE
 PROCESS LEVEL
 BP 80- MAPPING CURRENT BP IN ORACLE(BP- BUSINESS PROCESS)
3. TRANSACTION LEVEL
 RD 20 TRANSACTION LEVEL
 RD 30- MAPPING WITH ORACLE RD 20
4. SOLUTION DESIGN
 GAPS, WORK AROUND, CUSTOMISATION,
 EXTENSION, PERSONALIZATION
 GAP ANALYSIS (IF CUSTOMISATION)
 MD50(functional) & MD70(technical)

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 MD 50 (REQUIREMENTS GIVEN TO TECHNICAL)
 MD 70 (RECEIVE SOLUTIONS FROM TECHNICAL)
5. BUILD (Development,TEST,Production)
(PTP, OTC)
BR 100 SETUP DOCUMENT
6. TRANSACTION- TRAINING,CRP,UAT,CUSTOMER POINT,
 TE 20- UNIT TEST (ONE MODULE TEST)
 TE 40- INTEGRATION TEST (OVERALL MODULES)
7. GO LIVE
Production Support

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