Account Generator the Order to Cash Cycle
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Transcript of Account Generator the Order to Cash Cycle
Account Generators in the Order to Cash Cycle
Thomas J. Simkiss, Jr., J.D., CPABizTechKing of Prussia, PA
AgendaIntroduction• Objectives• Order to Cash Process• Journal Entries from Order to Cash• Account Generator• Modifying an Account Generator• Account Generation in R12• Q & A
Introduction• Thomas Simkiss, Jr., J.D., CPA
– 10 years Oracle Experience as an end user and implementation consultant
– Financials, Supply Chain, Discoverer, DBI– Managing Partner with BizTech– CPA in NJ
• BizTech– Certified Advantage Partner – Based in the Mid-Atlantic– Clients in CT, NJ, NY, DE, MD, and VA– Applications Implementations– Custom Development – Oracle Hosting
Objectives• Review the Order to Cash Process and
related sub-processes• Introduce the Account Generator• Understand the journals created during
Order to Cash• Demonstrate how a basic account
generator modification
Order to Cash Process
• Touches many business areas– Customer management, Order entry, Order
fulfillment and distribution, finance and accounting
• Two sub-processes– Order to Fulfillment– Customer Invoice to Cash
Order to Fulfillment
Order Entry & Scheduling
Order Entry & SchedulingOF1069
ManageCustomer
Orders
OF1069Manage
CustomerOrders
• Sales orders submitted by customers or sales reps are entered into the system.
PF2036Check ATP
PF2036Check ATP
• Calculate Available to Promise (ATP) for the customer order.
Enterprise Roles
Planner
Credit Manager
Shipping Clerk
OF1073Send Sales
OrderAcknowledgement
OF1073Send Sales
OrderAcknowledgement
• CSR sends sales orderacknowledgement to the Customer
PF2051Check
CTP andCTD
PF2051Check
CTP andCTD
• Calculate Capable to Promise (CTP) and Capable to Deliver (CTD) for the customer order.
OF1071Schedule
Sales Order Ship Date
OF1071Schedule
Sales Order Ship Date
• The planner schedules sales order lines ship dates.
OF1076Manage
Sales Order Holds
OF1076Manage
Sales Order Holds
• Research and resolve shipment holds associated with open sales orders.
OF1054Release
Credit Holds on Sales Orders
OF1054Release
Credit Holds on Sales Orders
• Review and release specific credit holds on individual sales orders.
ACopyright © 2006, Oracle Corporation. All rights reserved.
Order to Fulfillment (Con’t)
ShippingMM1149Ship
Material
MM1149Ship
Material
• Shipping Clerk packs,weighs, counts, ships and records shipments
MM1090Pick
Material
MM1090Pick
Material
• Shipping Clerk picks and transfers orders to Staging
MM1923Prepare
Material for Shipment
MM1923Prepare
Material for Shipment
• Shipping Clerk packages, consolidates material to be sent to the customer.
MM1924Load
Material
MM1924Load
Material
• Shipping Clerk loads the material to the dock for shipment.
A
Customer Invoice to Receipt
Copyright © 2006, Oracle Corporation. All rights reserved.
Customer Invoice to CashCustomer Invoice
OF1027GenerateCustomer Invoices
OF1027GenerateCustomer Invoices
• Bill for materials, services, projects, etc
OF1028Enter Manual
Customer Invoices
OF1028Enter Manual
Customer Invoices
• The AR clerk creates a manual invoice online.
OF1035Maintain
Credit Memos
OF1035Maintain
Credit Memos
• Enter and process customer credit memos.
Order to Fulfillment
OF5882Present
CustomerInvoices
OF5882Present
CustomerInvoices
• Present invoices to customer or third party.
• Send electronically or by mail.
OF1049Maintain CustomerInvoices
OF1049Maintain CustomerInvoices
• Process invoice corrections, adjustments and updates.
FM0960Manage
Prepayments
FM0960Manage
Prepayments
• Enter Prepayments, Receive Payment,
• Enter Invoice, Match Invoice to Prepayment
B
Copyright © 2006, Oracle Corporation. All rights reserved.
Enterprise Roles
Accounts Receivable Clerk
Accounts Receivable Manager
Customer Invoice to Cash (Con’t)
Copyright © 2006, Oracle Corporation. All rights reserved.
Accounts Receivables
OF1034Apply Customer
Receipts –Adjustments
OF1034Apply Customer
Receipts –Adjustments
• Enter and process customer debit memos.
OF1032Apply Customer
Receipts –Cash Applications
OF1032Apply Customer
Receipts –Cash Applications
• Payment is received. Receipt is created and applied to invoice(s).
OF1031Remit
Customer Receipts –
Bank Deposits
OF1031Remit
Customer Receipts –
Bank Deposits
• Deposit customer receipts.
OF1050Process
Customer Debit Memos
OF1050Process
Customer Debit Memos
OF1037Apply Customer
Receipts –Credit Card
OF1037Apply Customer
Receipts –Credit Card
• Adjust payment including Receipt Application reversal and corrections
• Payment is received. Receipt is created and applied to invoice(s).
Enterprise Roles
Accounts Receivable Clerk
Accounts Receivable Manager
B
Journal Entries from Order to Cash• External Order
– Journal Entries Made AFTER Ship Confirm• For Shippable Orders
– There is no COGS entry for non-shippable orders
• Internal Orders– Many journal accounts determined by
Shipping Networks and delivery/ receipt type (immediate or in transit)
Journal Entries – External Order
Cost of Goods SoldCurrent Cost
Inventory
InventoryCurrent
Cost
AR/UnbilledSales Order Price
Accounts Receivable
RevenueSales Order
Price
Inventory JE made after ship confirm
AR JE made after Autoinvoice
Journal Entries – Internal Order
Cost of Goods SoldCurrent Cost
Inventory
InventoryCurrent
Cost
Intercompany ARTransfer Price
Accounts Receivable
Intercompany Revenue
Transfer Price
Accounts Payable
Current Cost
I/C Accrual*
Current Cost
Intercompany AP
* Credit to I/C Accrual and Debit to Inv that is made on receipt of items is not shown
Account Generator
• Uses Workflow technology to construct key flexfield combinations
• Allows generation of account combinations based on system variables
Account Generators in Order to Cash• OM: Generate Cost of Goods Sold
Account (OECOGS)• AR: Substitute Balancing Segment
(ARSBALSG)• Inventory Cost of Goods Sold Account
(INVFLXWF)
Modifying an Account Generator
1. Open the Account Generator to be modified
2. Save to a local / network drive3. Make modifications4. Save to the database5. Test
1. From the Workflow Builder, open the account generator
• User – APPS• Password – APPS Password• Connect –
Applications Database
3. Open the Generate Default Accounts Process, right click on the process icon and select copy, then paste
4. Enter an Internal Name, Display Name and Description
5. Open the new COGS process6. Remove the link from Copy Values from Code
Combination to Validate Code Combination7. Insert the function Get CCID from Salesrep's
revenue segment and click OK
8. Insert the Function Copy Segment Value from other Structure Code Combination
9. Update the Node Attributes
10. Connect the new functions to the existing workflow functions (right click at the first function and drag to the second)
11. Select the result type (where appropriate)
Test the Account Generator
• Take an order through to ship confirm• Test via COGS_11i.SQL available from
Metalink (Note: 159998.1)
Account Generator in R12
• Still available in R12• FA Account Generator
– Option to use it or Subledger Accounting Engine after upgrade
• Receivables
Thomas J. Simkiss, Jr., J.D. [email protected]