Debit
Memo
Debit Memo
will be created when customer is under charged.
Memo lines are used to create
transactions without item information.
Steps:
1. Define Memo lines (Setup à Transactions à Memo Lines)
2. Define Debit memo transaction type
(Positive Sign)
3. Define Debit Memo Transaction Source
4. Create Debit Memo
ü
Choose
Source, automatically other fields will be copied by system
ü
Enter
customer details in Bill to fields
ü
Choose
payment terms
Go
to “More” tab
Choose
“Standard Invoice number” under cross reference field
Click
on “Line Items”
ü
Choose
“Memo Line” in description column
ü
Enter
qty and price
ü
Save
and close this window
Go to “Distribution” button to see
GL accounts information
Save and close this window
Say “Complete”
Credit Memo
When customer return goods, to reduce
customer balance we use Credit Memo (-) sign.
Steps:
1. Define Memo lines (Setup à Transactions à Memo Lines)
2. Define Credit memo transaction type
(Negative Sign)
3. Define Credit Memo Transaction
Source
4. Assign Credit Memo source to the
Invoice Source
5. Create Credit Memo against specific
transaction.
Navigation: Transactions à
Credit transactions
Choose
Invoice number Say “Find”
ü
Enter
reason for credit memo
ü
Click
on “Credit Lines”
ü
Go
to Main Tab
ü
Enter
Num: 1
ü
Enter
quantity
ü
Unit
price in negative amount
ü
Save
and close this window
Say “Complete”
Step:
6 On Account Credit Memo
Navigation: Transactions à Transactions
**
On Account credit memo will be created against customer account.
ü
Choose
source: Credit memo source
ü
Choose
customer name
ü
Go
to “Line Items”
ü
Choose Memo line under description and enter credit amount as
negative Say Complete
Deposit
Deposit is an
advance payment made by customer to the Organization.
Latter it will be
adjusted for future invoice or apply to future liability.
Step: 1 Define Deposit transaction type
Navigation: Setup à Transactions à Transaction type
ü Name your Transaction
type
ü Class: Deposit
ü Creation Sign:
Positive sign
ü Invoice type:
Invoice transaction type
ü Choose credit memo
transaction type
ü Choose Application
rule set
ü Choose terms
ü Allocation Basis:
Lines only
ü Choose Receivable
Account
ü Save your work
Step: 2 Define
Deposit Source
Navigation: Setup à
Transactions à
Sources
ü
Name
your deposit source
ü
Enter
automatic batch numbering
ü
Enter
automatic transaction numbering
ü
Choose
standard transaction type as Deposit transaction type
Save your
work
Step: 3 Create Deposit Transactions
Navigation:
Transactions à
Transactions
ü
Choose
Deposit Source
ü
Choose
customer details
ü
Choose
payment terms as “Immediate”
Go
to “Commitment” tab
ü
Enter
Deposit Amount
ü
Enter
Description: Generic Commitment
Go to “Distributions” tab to view
accounts
Save and close this window
Say Complete.
Step: 4 Record the
Receipt against Deposit
Navigation: Receipts à Receipts
ü
Choose
receipt method: Check
ü
Enter
Receipt Number
ü
Enter
receipt amount
ü
Receipt
type: Standard
Go
to “Main” tab
ü
Choose
Deposit transaction number
ü
Say
“Apply”
Save.
Step: 5 Check the
Deposit Balance Status
Navigation:
Transactions à
Transactions
Step: 6
Create one standard invoice and adjust against
deposit amount
Navigation:
Transactions à
Transactions
ü
Choose
Invoice source
ü
Choose
Customer details
ü
Payment
terms: Immediate
ü
Choose
Deposit invoice number under “Commitment” field
Click
on “Line Items” button
Enter
Item and Quantity details
Go
to “distributions” tab Say
“Complete”
Guarantee
It
is an assurance from the Customer to buy goods or services from the
Organization.
Under
guarantee transactions, amount will be collected from customers when we create
invoice transactions only.
Setup
Steps
Step: 1 Define Guarantee transaction
type
Navigation: Setup à Transactions à Transaction type
Step: 2 Define Guarantee Transaction
Source
Navigation: Setup à Transactions à Source
Step: 3 Create and Complete Guarantee
Transaction
Navigation Transactions à Transaction
Step: 4 Create invoice transaction with
reference of Guarantee
Navigation Transactions à Transaction
Step: 5 Receive money from the customer
against invoice transaction
Navigation Receipts à Receipts
Charge Back
Charge
back is nothing but closing the existing invoice and creating new invoice with
new due dates.
Step: 1 Define charge
back receivable activity
Navigation: Setup à Receipts à Receivable Activity
F11
Query
Name “Charge back adjustment” (CTL F11)
Type:
Adjustment
Activity
GL Account: Charge back Burden account
Step: 2 Define charge
back transaction type
Navigation: Setup à Transactions à Transaction type
ü
Name
your Charge back transaction type
ü
Creation
Sign: Positive Sign
ü
Enter
GL Accounts
Step: 3 Define charge
back transaction source
Navigation: Setup à Transactions à Sources
Step: 4 Create
Standard invoices
Navigation:
Transactions à
Transactions
Step: 5
Enter the receipt for
partial amount and create charge back for remaining amount
Navigation: Receipts à Receipts
ü
Choose
the Invoice number as per step 4
ü
Receive
partial payment
Click
on “Apply”
Place
the cursor on “Balance Due” field
Click
on “Charge backs” button
Choose
Type: Charge back transaction type
Enter
Comment
Enter
new due date Save your work
Step: 6 Query the
charge back invoice number
Navigation:
Transactions à
Transactions
F11
Choose
Source: Charge Back
CTL
F11
Step: 7 Query old
invoice (Standard original invoice)
Navigation:
Transactions à
Transactions
Invoice
Rules
Invoice
rules will be determined the accounting period in which receivables are
recognized.
There
are 2 types of Invoice Rules:
1. Bills in advance
2. Bills in Arrears
Bills in advance: System will recognize the invoice
amount as a advance or starting of a project.
Bills in Arrears: System will recognize amount at
the end of the contract or project.
Accounting
Rules
Accounting
Rules will determined the Accounting Period in which Revenues are recognized.
There
are 4 types of accounting rules:
1.
Daily
Revenue Rates, All periods
2.
Daily
Revenue Rates, Partial Period
3.
Fixed
Schedule
4.
Variable
Schedule
Fixed
Schedule – Accounting Rule
We
will define duration of the project and % of Revenue of each accounting period,
at the time of fixed scheduled accounting rule setup.
Step: 1 Define Fixed
Schedule Accounting Rule
Navigation: Setup à Transactions à Accounting Rules
ü
Enter
Name and Description
ü
Type:
Fixed Schedule
ü
Enter
Number of periods
ü
System
divide the 100% in to the number of periods
Step: 2
Create Invoice with
Fixed Schedule accounting rule with Bills in advance invoice rule.
Navigation:
Transactions à
Transactions
ü
Enter
Standard invoice as usual
ü
Payment
terms: Immediate
ü
Choose
Invoice rule: In Advance
Go
to Line Items to enter item, qty and price details
Go
to “Rules” tab
Choose
accounting rule: Fixed Schedule
Enter
start date
Save
and close this window Say “Complete”.
Step: 4 Run Revenue
Recognisation program
Navigation: View à Request
ü
Submit
a new request
ü
Single
request
Name
of the program: Revenue Recognition
Variable
Schedule - Accounting Rules
Ø At the time of set up the Variable
Schedule Rule we will not enter duration of the project & % of Revenue for
each accounting period.
Ø We enter only first period Revenue %
at the time of accounting rule set up.
Ø Duration of the project will be
entered at the time of invoice entry.
Step: 1 Define Accounting Rule
Navigation:
Setup à
Transactions à
Accounting Rule
Step:
2
Create
invoice with variable Schedule accounting Rule with Bills in Arrears invoice
Rule
Navigation:
Transactions à
Transactions
Step:
3 Run revenue Recognition Program
Navigation: View à Request
ü
Submit
a new request
ü
Single
request
Name
of the program: Revenue Recognition
Transaction
Batch
Transaction batch is used to group
the transactions based on the certain parameters.
Navigation: Transactions à Batches
ü Choose invoice source
ü Status: New
ü Enter Control count and Control
Amount
ü Save
ü Change status to “Open”
Click on “Transactions”
ü
Enter
standard Transactions as usual
Say Complete
Click on “New” button to create more
transactions.
Click on “Transaction Summary” to
view transactions
30.
Auto Cash Rule Set
Auto cash rule set is used to apply
receipt amount against invoices.
It is having 5 Rules:
1.
Clear
the account
2.
Clear
the past due invoices
3.
Clear
the past due invoices grouped by payment terms
4.
Match
payment with invoice
5.
Apply
to the oldest invoice first
Define
Auto Cash Rule Set
Navigation:
Setup à
Receipts à
Auto cash rule set
ü Enter Name for Auto cash rule set
ü Discounts: Earned and unearned
ü Remaining Remittance amount:
Unapplied
ü Choose the sequence of Auto cash
rule set
31.
Receipt Batch
Receipt batch is used to group the
Receipts based on Certain parameters.
There are 3 types of Receipts
batches:
1.
Manual
Regular
2.
Manual
Quick
3.
Automatic
Manual
Regular – Receipt Batch
Customer balances will be updated as
soon as you save the receipts.
Create Manual Regular batch
Navigation: Receipts à Batches
Click on “Open” or “New”
ü Receipt Method: Check
ü Receipt Number: 5
ü Enter Receipt Amount
ü Receipt type: Standard
ü Status: Confirmed
ü Apply
ü Save
Manual
Quick – Receipt Batch
Customer balances will not be
updated when we save the receipt information.
Customer balances will be updated
when we run Post Quick cash program with the help of auto cash rule set.
Define
Manual Quick Batch
Navigation:
Receipts à
Batches
ü Batch Type: Manual – Quick
ü Batch Source: Manual Receipt Source
ü Currency: INR
ü Enter control count and Amount
ü Click on “Receipts”
Click on “Multiple”
Save and close this window
Click on ”Post quick cash”
Ensure program completed Normal
32.
Miscellaneous Receipt
Non invoice related receipts is
called miscellaneous receipts, such as interest on investment, dividend etc.
Step:
1 Define Miscellaneous receivable
activity
Navigation:Setupà Receipts à Receivable activities
Step:
2 Receipt of miscellaneous cash
Navigation:Receipts
à
Receipts
ü Choose Receipt Method
ü Enter receipt number
ü Enter receipt amount
ü Receipt type: Miscellaneous
ü Paid by: Enter customer name
ü Purpose: Activity: Choose Misc
receivable activity
Click on “Distributions” button
Say “OK”
Save
33.
Receipt Reversal
Receipt reversal is nothing but a
kind of cancellation of Receipt.
There are 2 types of Receipt
Reversal Methods:
1.
Standard
Reversal
2.
Debit
Memo Reversal
1.
Standard
Reversal
When we reverse receipt with the
standard reversal, all the transactions which are associated with the receipt
will get reversed.
Step:
1 Query the invoice to check the
balance due
Navigation:Transactions
à
Transactions
Step:
2 reverse the receipt
Navigation: Receipts à
Receipts
Click on “Reverse” button
ü Choose Reversal Date
ü Choose Category and reason for
reversal
ü Click on “Reverse” button
2. Debit Memo Reversal
When we reverse receipt using debit
memo reversal all associate transactions WILL NOT get reversed, but new debit
get created with same amount.
Step:
1 Query the receipt which you want
to reverse
Navigation: Receipts à Receipts
Click on “Reverse” button
ü Choose Reversal Date
ü Choose Category and reason for
reversal
ü Choose debit memo reversal type and
Account
ü Click on “Reverse” button
System will generate debit memo
transaction
Go to “More” tab to view details
Step:
2 Query Debit memo transactions
Navigation: Transactions à Transaction
Query debit memo transaction created
by system
34. Remittance
Remittance is nothing but sending
receipt information to the bank for collection.
There are 2 types of Remittance
Method.
1. Manual
2. Automatic (Refund)
There are 3 steps in the remittance
process.
1. Create
2. Approve
3. Format
Step:
1 Create remittance batch
Navigation: Receipt à Remittance
ü Batch type: Remittance
ü Currency: INR
ü Remittance Method: Standard
ü Choose Receipt class
ü Choose Receipt method
ü Choose remittance bank
Save your work
System will generate Remittance batch
number
Process status: Completed Creation
Click on “Manual Create” button
Go to “Main” tab
Place the cursor on “Receipt Method”
Say CTL F11
Select the checks you wish to send
to bank
ü Save
ü Approve
Close this window
Now process status is: Started Approval
Go to Viewà Request
Ensure program completed normal View output
Step:
2 Format the remittance batch
Navigation: Receipts à Remittances
Query approved remittance batch
number
Click on “Format”
Now Process status is: Started
Format
Go to View à Request
Ensure “Print Remittance” program
completed normal
Step:
3 query the remittance batch t see
the process status
Navigation: Receipts à Remittances
Now the process status is: Completed
Format
35. Refund process
Refund is returning the receipt
amount back to the Customer.
Step:
1 Define Refund receivable activity
Navigation:Setup
à
Receipts à
Receivable Activity
ü Name your receivable activity
ü Type: Refund
ü Choose: Refund GL Account
ü Save your work
Step:
2 create one invoice
Navigation:Transactions
à
Transactions
Choose payment terms: Immediate
Complete the invoice
Step: 3
Create receipt with
excess amount and adjust invoice and keep remaining Amount as unapplied or on
account
Navigation: Receipts
à Receipts
Step: 4 Create remittance receipt to Bank
(Automatic Remittance)
Navigation:Receipts à Remittances
Click on “Auto Create”
ü Choose Customer details
ü Actions: Create, Approve and Format
ü Say “OK”
ü Process status: Started Creation
ü System assign batch number
Go to View à Request
Ensure “Automatic Receipts
Remittances Execution report” program completed normal.
View output.
Step:
5 Approve and Format Remittance batch
Navigation:Receipts
à
Remittances
Query your remittance batch
Now status is: Completed creation
Click on “Receipts”
You will see system will selected
the receipts automatically
Click on “Format”
Now system will approve & Format
also.
Go to View à Request
Ensure Programs Completed Normal
View output
Now the process status is: Completed
Format
Step:
6
Query
the receipt which you received excess to refund to customer
Navigation:Receipts
à
Receipts
Click on “Apply”
Apply Apply to Amount applied Activity
√ Refund 50000 RIL Ltd Refund
√ On
Account 0
Place cursor on Refund
Click on “Refund attributes”
ü Choose Customer
ü Choose Refund payment method: Check
Click on “Apply”
Save.
System will generate invoice in AP
One more button will come “Refund”
Validate the invoice
Make payment.
36. Transfer to GL
For each and every transactions or
receipts we have to create accounting.
Step: 1 Run create accounting program
Navigation: View à Request
ü Submit a new request
ü Single request
ü Program name: Create accounting
Parameters:
Ensure program completed Normal
Step: 2 Query the un posted journals in GL and post
Navigation: Journals à Enter
Review the journals and post
Step: 3 To run import program in GL
Navigation: Journals à Import à Run
Choose:
ü Source: Receivables
ü Choose your ledger
ü Selection Criteria: All group Ids
Click on “Import”
37.Period End Close
Accounts Receivables period
Closing Procedures
1.
Run the final Auto Invoice Interface.
Interfacesà Auto Invoice àAutoinvoice Master Program
2.
Correct all the Autoinvoice rejects and
re-run.
3.
Complete the manual invoices, credit memos
& corrections for the period, to find the detail run “Incomplete Invoices
Report”.
Action: Go to transaction Window and
Complete the Transaction
4.
Run the Journal Entries Report.
5.
Review the Journal Entries reports for
'unusual' accounts and correct as needed.
6.
Run the Receivables Reconciliation Report
(AR Reconciliation Report) to make
sure that you balance with receivables.
7.
Run the final post to General Ledger.
Interfaceà General Ledger: General
Ledger Transfer Program
8.
Post GL batches
9.
Run the Unposted Items Report - verify that there are no unposted items.
10.
Reconcile Accounts Receivable balances to
General Ledger.
11.
Close accounting period in Oracle
Receivables
12.
Open the next accounting period in Oracle
Receivables
4.1 Opening/Closing of AR periods
Module: AR Module.
Navigation: Control à Accounting > Open/Close
Periods.
1. Complete the Transfer to General Ledger
from the Receivables for the period to be closed.
2. Select the period to close. Select
‘Closed’ from list of values in the Period Status and save the record.
3. Select the Next period to open. Click Open
Next Period Button
