AR Training Manual Basic Concepts PDF

8/18/2019 AR Training Manual Basic Concepts PDF

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SIERRA ATLANTIC SOFTWARESERVICES

ORACLE APPLICATIONS TRAININGDOCUMENT

BASICS OF ORACLE RECEIVABLES

Author : Chandramouli Natrajan

Creation Date : 24th April 2007

Last Updated :

Document Ref :

Version : 1.0


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Training Document: Accounts Receivable Module

Sierra Atlantic Software Services Ltd Page 2 of 93

Document Control

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Date Author Version Change Reference

20.02.2007 N.Chandramouli 1.0 No Previous Document

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Copy No. Name Location

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Note To Holders:

If you receive an electronic copy of this document and print it out, please write yourname on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the frontcover, for document control purposes.


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Objective

The objective of this training document is to introduce the Oracle Receivables Module (11.5.10.2) to the SierrAtlantic employees who are new to Oracle Application and to train them in using this module for their operations.

This document is prepared keeping in view the requirements of Sierra Atlantic program to conduct training iOracle Apps. For further and full information on Oracle Receivables Module, reference may be made to thReceivables User Guide, released by Oracle Corporation.

The users would develop conversance and expertise if and only if they devote sufficient time in practicing on thproduct with specific reference to the daily activities carried on by each of them.


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How the Manual Is Organized

This manual is divided into 7 major sections:

1. Introduction

2.

Setups3. Receivables Masters

4. Transaction Processing

5. Collection Overview

6. Reports and Programs

7. Accounting Entries


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Contents

Document Control Error! Bookmark not defined.

Objective Error! Bookmark not defined.

How the Manual Is Organized Error! Bookmark not defined.

Introduction 7

Basic Concepts 8

Setups 9

Opening Accounting Periods 11

Receovable Masters 12

Customer 12Prerequisites 12Payment Terms 13Collectors 16Sales Person 19Customer Profile Class 21Creation of new customer 22

Bank Details 27Tax(Tax Codes, Location, Tax Authority) 29

Transaction Processing 38

Prerequisites 40

Transaction Types 41

Transaction Source 43

Auto Accounting Rules 45


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Recording a Manual Invoice 48 Recording a Credit Memo 51 Recording a Debit Memo 53 Recording Foreign Currency Transactions 57

Receipts 63

Prerequisites 64

Receipt Class 65

Receipt Source 69

Recording Standard Receipt 71

Recording Misc. Receipt 76

Collection 78

Customer Calls 79

Customer Accounts 80

Aging 82

Customer Correspondence 83

Closing Accounting Periods 85

Transfer to General Ledger 86

Reports and Programs 88

Accounting Entries in Oracle Receivables 94


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IntroductionModule Overview

Oracle Receivables provides four integrated workbenches that are used to perform most of day–to–day AccountReceivable operations.

• Receipts Workbench is used to perform most of the receipt–related tasks• Transactions Workbench to process invoices, debit memos, credit memos, on–account credits, chargeback

and adjustments.• The Collections Workbench lets you review customer accounts and perform collection activities such a

recording customer calls and printing dunning letters.• The Bills Receivable Workbench lets you create, update, remit, and manage your bills receivable. Eac

workbench lets you find critical information in a flexible way, see the results in your defined format, anselectively take appropriate action.

For example, in the Transactions Workbench, you can query transactions based on the bill–to or ship–tcustomer, currency, transaction number, or General Ledger date. You can then review financial, application, an

installment information, perform adjustments, create a credit memo, or complete the transaction.

Receivables Overview

Receivable is integrated with Order Management, Oracle General Ledger. This allows you to access youpurchasing information online and match invoices to purchase orders or purchase order receipts or drill dowfacility of payables accounts in General Ledge.

Basic Functions of the module:

• Create Masters- Customers, Banks etc

• Create Invoices / debit notes etc for Customers

• Import Invoices from Order Management

• Receipt

• Generate Reports / Run Programs

• Transfer to GL and Reconcile


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Basic Concepts

Transactions: These include invoices, debit memos, credit memos, deposits, guarantees and chargeback entered

with a GL date that is between the beginning and ending GL dates. The transactions are displayed in theTransaction Register in the Functional Currency column.

Invoice: A document that you create in Receivables that lists amounts owed for the purchases of goods orservices. This document also lists any tax, freight charges, and payment terms.

Debit Memos: Debits that you assign to a customer to collect additional charges. For example, you may want tocharge a customer for unearned discounts taken, additional freight charges, taxes, or finance charges. Credit memos : a document that partially or fully reverses an original invoice. You can create credit memos in theReceivables Credit Transactions window or with Auto Invoice.

Deposit : A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of

goods and services.

Guarantee: A contractual obligation to purchase a specified amount of goods or services over a predefinedperiod of time.

Charge Back: A new debit item that you assign to your customer when closing an existing, outstanding debititem. It is created only in Receipt Workbench.

Receipt: A document that you create in Receivables that shows the amount collected from the customers forthe purchases of goods or services. You can enter receipts manually, import them using AutoLockbox, or createthem automatically. You can also use this workbench to clear or risk eliminate factored receipts, remit automaticreceipts, create chargebacks and adjustments, and submit Post QuickCash to automatically update yourcustomer's account balance.

Payment terms: Payment Terms specify the dates by which the customer is supposed to make the payments forthe invoices raised for him. A payment term is attached to the customer’s profile class. This is in turn defaults tothe customer level. At the time of raising invoices for the customer, the ayment terms attached to the customerdefaults to the transaction level.

Transfer to GL The process of transferring accounting entries from Oracle subledger applications to theGL_INTERFACE table in General Ledger. When entries are transferred from the subledgers, the subledgersystem marks the entries in the subledger tables as posted, even though they have not been posted in GeneralLedger. Entries modify General Ledger balances only when Journal Import is run and the subsequent entries areposted.


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StepNo.

Required / Optional

Particulars

16 Required Define Payment Terms17 Optional Assign Reporting Set of Books:18 Optional Define Accounting Rules:

19 Required Open or Close Accounting Periods 20 Required Define AutoAccounting21 Optional Set Up Cash Basis Accounting Method22 Required Define Transaction Types23 Required Define Transaction Sources24 Required Define Collectors:25 Required Define Approval Limits26 Required Define Remittance Banks27 Optional Distribution Sets28 Required Define Receivables Activities29 Optional Define Receipt Programs:30 Required Define Receipt Classes31 Required Define Payment Methods:

32 Required Define Receipt Sources33 Optional Define Aging Buckets:34 Optional Define Statement Cycles35 Optional Define Standard Messages:36 Optional Define Dunning Letters37 Optional Define Dunning Letter Sets38 Optional Define Territories:39 Required Define Salespersons40 Required Define System Profile Options41 Required Define Customer Profile Classes42 Required Define Customers:43 Optional Define Remit–To Addresses

44 Optional Define Customer Relationships45 Optional Define Lockboxes:46 Optional Define Transmission Formats47 Optional Define Unit of Measure Classes48 Optional Define Units of Measure49 Optional Define Standard Memo Lines50 Optional Set Up Cross Currency Receipts51 Required Set Up Tax52 Optional Set Up Tax Vendor Extension53 Optional Set Up Document Sequences


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Opening Accounting Periods

Accounting Periods should be open to control the recording of accounting information for these Periods.

Receivables lets you open future accounting periods while your current period is still open.

Receivables also lets you reopen previously closed accounting periods and enter receivables activities

without transferring transactions to the general ledger when you set your accounting periods to 'Future.'

To Open an accounting Period:

1. Navigate to the Open/Close Accounting Periods window.

Oracle Receivables

N Control Accounting Periods Open / Close Periods:

The following screen will appear

2. To update the status of an accounting period, place the cursor in the Status field next to that period,then enter a new status.3. To open the next accounting period after the Latest Open Period, choose Open Next Period.Receivables changes the status of the next period to 'Open.'

4. Save your work.


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Receivable Masters

In Receivable Masters include defining Customers, Bank, Tax Codes …. Masters are treated as one time setups

and are not the daily activities.

Create New Customers

• In Oracle Receivables the Customer Type attribute identifies the customer as either anorganization or an individual person.

• When you enter customer information your existing customer records are searched to locate anymatching customer names or addresses. You can then either add a new customer to your records,or modify the existing customer record.

• When you enter a new customer, or modify existing customers, you first select the customer type,either Organization or Person.

• You then choose a search procedure: Advanced, Simple, or Address. You must perform this searchbefore entering any information about either a new or an existing customer. The search ensuresthat you will not enter a duplicate customer.

Prerequisites

o Payment Terms

o Collectors

o Sales Person

o Customer Profile Class

Payment Terms:

Payment Terms specify the dates by which the customer is supposed to make the payments for theinvoices raised for him. A payment term is attached to the customer’s profile class. This is in turndefaults to the customer level. At the time of raising invoices for the customer, the payment termsattached to the customer defaults to the transaction level.


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PaymentTerms

CustomerProfile Class

CustomerStandard

Invoice


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2. Navigate to the Payment Terms window (Oracle Receivables)

N Setup Transaction Payment Terms


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3. The Payment Term screen will open as shown below:

• Enter the name and description of the payment terms.• Enable the following boxes, if applicable:

a. Allow Discount on Partial payments : If this option is checked, the customer iseligible for availing discounts on partial payments.

b. Prepayment : This should be used for raising Receipts through ‘Sales Order’.c. Credit Check : Order Management will check the Credit Limits assigned to the

customer before accepting an order from the customer.

• Enter the number of days assigned to this payment term.


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• Save the record and click discounts.

Collectors:

Collector is the person who is responsible for collection. The Collectors will be assigned to a profile class or to acustomer's credit profile class. When you assign a collector to a profile class, that collector becomes the collectorfor all customers assigned that profile class. You can modify collector assignments for your customers in theCustomers window and for your profile classes in the Customer Profile Classes window.

Collector

CustomerProfile Class

CustomerStandard


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To define a Collector :

1. Navigate to the Collector window

Oracle Receivables

N Setup Collections Collector:


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2. The collection screen will appear


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Sales Person:

A person who is responsible for the sale of products or services. Salespeople are associated with orders, returns,invoices, commitments, and customers. You can also assign sales credits to your salespeople.

Resource window is used for defining the name of the salesperson in Oracle Receivables.

Some of the required functions for defining a resource as a salesperson are performed in the Receivablestab of the Resource window. The following table describes the available functions in the Receivables tab

fields:

Field Descriptions for the Receivables tab in the Resource Window

Field Description

Date Active Enter the range of dates that this salesperson is to be active. Date Active (start date) is arequired field, the Date Active (end date) is optional. If you do not enter an end date, thissalesperson is active indefinitely.

Geo Override andInside City Limits

The Geo Override value associates the salesperson with a unique tax jurisdiction. Both fieldsare available only if you have installed a sales tax vendor of type Tax ware Sales.

AccountingFlexfield (Forms)

The accounting flexfield includes Revenue, Freight, and Receivable Accounts. Receivablescan use this information, along with your Auto Accounting rules, to determine the revenue,

freight, and receivable accounts for invoices that you assign to this salesperson.

Territory Flexfield(Forms)

If you want to assign a territory to this salesperson, then enter the range of dates that thisterritory is to be assigned to this salesperson. The Start Date defaults as the current date, butyou can change it. If you do not enter an End Date, this territory is active for this salespersoninfinitely.

Perform the following steps to create a salesperson.

1. Navigate to Sales Person window

Receivables

N Setup Transactions Sales Persons


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2. Click New in the Find Resource window.3. Select either To be hired or General for the Category.4. To create a salesperson, you must enter a valid value for the Salesperson Number.5. Enter the name of the sales person in the Name field.6. Enter a Start Date.7. Select the Receivables tab and perform the following:

a. Enter the range of dates that this resource is to be active.b. (Optional) Enter the resource's Email address.c. (Optional) Enter a Geo Override value for the resource. This value associates theresource with a unique tax jurisdiction.d. Check the Active for Receivables check box to indicate that this resource is an activesalesperson for use in Oracle Receivables.e. Enter a quota Sales Credit Type.

Oracle Order Management uses this information to determine if thesales credit for an order is a quota or non-quota amount.

f. (Optional) Enter the Accounting Flexfield for your Revenue, Freight, and ReceivableAccounts.

g. (Optional) Assign a territory to this resource..h. (Optional) If you assigned a territory to this resource, then enter the range of dates thatthis territory is to be assigned to this salesperson.

8. (Optional) Enter more information in the other tabs to further specify the resource. You cansimultaneously end date a resource's roles, group member roles, team member roles, and salesperson records.10. Choose File > Save to save your work.


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Customer Profile Class:

• Use Customer Profiles to group customer accounts with similar credit worthiness, business volume, andpayment cycles. For each profile class you can define information such as credit limits, payment terms,statement cycles, invoicing, and discount information. You can also define amount limits for your financecharges, dunning, and statements for each currency in which you do business.

To define a Customer Profile Class:

1.Navigate to the Customer Profile Classes window

Oracle Receivables

N Customer Profile Classes

2. Enter a Name and a brief description of this profile class.3. Check the Active check box to make this profile class active.4. Enter other profile class information. For example:5. Open the Credit Profile tabbed region, then enter default credit information forcustomers and accounts assigned to this profile class.6. Open the Profile Class Amounts tabbed region, then enter the Currency in whichcustomers assigned to this profile class will do business. For each currency that you enter,define the currency rates and limits for customers using this profile class, includingMinimum Invoice Balance for Finance Charges, Minimum Dunning Amount, and CreditLimit.7. Save your work.


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Creation of New Customer

To define a customer

Navigate to the Customer window

Oracle Receivables

N Customer Standard

2. If you are entering information about a new customer and the search does not produce amatch, you will be prompted to proceed with entering new information. Choose the Newbutton, as shown below:


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3. The Customers - Standard window is displayed. If the new customer is part of an existingorganization or person, information about the organization or person will be displayed as shownbelow:

4. If the customer does not yet have a customer number, and you are not using Automatic Customer Numbering,enter a unique customer number.


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5. Click open, the following screen will appear.

6. Enter the Customer Address.

7. Enter additional address information for this customer, such as City, State, Postal Code, and County.


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12. Save your work


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Bank Details

• Use the Banks window to enter bank information for bank branches with which you dobusiness.

• Each bank branch can have multiple bank accounts, and each bank account you define can beassociated with Payables payment documents and/or Receivables payment methods.

To enter a basic bank

A. Navigate to Bank Window

Oracle Receivables

N Setup Receipt Bank

The following Screen will appear

B. In the Banks window, enter all basic bank information: bank name, branch name, bank number,branch number, and address. Use a bank account name that indicates its usage, for example, "MainDisbursement - USD."

C. Select Bank as the Institution.

D. Optionally enter names and information for your bank contacts in the Contact region.

E. Save your work.


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F. Choose the Bank accounts button. The following screen will appear

G. Enter the bank account name & bank account number.

H.. Select Internal Account User

I. In the GL Accounts region, enter a Cash Account and other relevant accounts as shown above.

J. In the Receivables Options region, enter GL Account information for Remitted Receipts, FactoredReceipts, and Short Term Debt.

K. In the More Receivables Options region, optionally enter Receipt and Discount GL Accountinformation

L. Save your record


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Tax

• Codes

• Location

• Authority

• Sales Tax Rates

Tax Codes:

• Tax Codes and Rates window are used to enter and maintain your tax codes and their associated taxrates.

• You can define as many tax codes of type VAT (Value Added Tax) or Sales Tax as you need. You canhave only one enabled tax code of type Location for any given date range. This code cannot have a rateassociated with it.

• You can enter a tax code at the customer Ship-To and Bill-To business purpose level, as well as at the

customer level.

• You can also assign tax codes to inventory items. If your tax method is VAT, you can include a tax code

in the Tax Defaulting Hierarchy in the System Options window.

To define a tax code:

1. Navigate to the Transaction Type Window

Oracle Receivables

NSetup Tax Tax Code


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2. Enter a unique name for this Tax Code.

3. Choose a Tax Type. If you are using location based tax, you can only enter one enabled tax code withtax type of Location Based Tax for a given date range. Receivables displays subtotals by tax type invarious tax reports. You can define additional tax types in the Receivables Lookups window.

4. Specify a Taxable Basis to control how Receivables calculates tax on transactions assigned to this taxcode. Choose one of the following:

o After Discount: Calculate tax on the invoice line amount, after any early payment discount istaken.

o Before Discount: Calculate tax on the invoice line amount, before any early payment discount istaken.

o Quantity: Calculate tax based on the quantity ordered and unit of measure of the invoice line. Ifyou choose this option, specify a Tax Amount

o PL/SQL: Calculate tax using the PL/SQL formula that you specify.


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o Prior Tax: Select this option if you use this tax code as part of a tax group (to calculate multipletaxes) and you want to calculate tax on only the tax for the previous tax line.

5. If the tax type is not 'Location Based Tax' and you specified a taxable Basis of either After Discountor Before Discount, enter a Tax Rate.

6. If the Taxable Basis is Quantity, enter a Tax Amount. For example, you enter a Tax Amount of 2 for

this tax code. If you create an invoice line with a quantity of 7 and assign this tax code to it, Receivablescalculates tax of $14 for this line.

7. Indicate whether this tax code is positive or negative by setting the Sign parameter to either 'Cr' or'Dr', respectively. When you use a tax code with a sign of 'Dr' (negative), Receivables debits your taxaccount. When you use a tax code with a sign of 'Cr' (positive), Receivables credits your tax account.

8. If the Taxable Basis is PL/SQL, enter the name of a PL/SQL stored procedure in the Formula field.Receivables uses this stored procedure to calculate tax when you assign this tax code to a transaction.

9. Open the Effective region, and then enter a range of Effective Dates for this tax rate, as shown below.The default start date is today's date, but you can change it. If you do not enter an end date, this tax ratewill be valid indefinitely.

10. To disable this tax code, uncheck the Enabled box. You can have multiple disabled tax codes for thesame date range.


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11. Open the Control region, then choose a Tax Class, as shown below

• Choose Output to use this tax code with invoices, debit memos credit memos,adjustments, discounts, finance charges and miscellaneous cash receipts.

• Choose Input to use this tax code with miscellaneous cash payments (negativereceipts). Input tax codes appear only in the list of values for the Liability Tax Codefield in the Receivables Activities window; output tax codes appear in allReceivables transaction and set up windows.

12. To allow tax exemptions for items using this tax code, check the Allow Exempt box.

13. To be able to change the tax rate for this tax code in the Transaction windows, check the Ad-hoc box.

You can only check this box if the tax type is not 'Location Based Tax.' You can update this option afteryou save this tax code.

14. If you want this tax code to automatically display line amounts including tax, check the InclusiveTax box.

15. If you do not want to be able to change this tax code from inclusive to exclusive (or vice versa) whenentering invoices, uncheck the Allow Inclusive Override box.

16. To prevent this tax code from appearing in Receivables windows, uncheck the Displayed box. If thisbox is not checked, you cannot assign this tax code to individual transactions.


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17. To update the Tax Account assigned to this tax code, open the More tabbed region.

• The default account is the Location Tax Account you defined in the System Options window.AutoAccounting uses this value if the AutoAccounting structure for your tax account isderived from the tax code.

18. Enter the Printed Tax Name as you want it to appear on printed transactions.

19. Enter a description for this tax code (optional). Receivables displays this information in country-specific reports as required.

22. Save your work.


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3. To enter your new Sales Tax Location Flexfield structure, choose New Record from the Editmenu. Be sure to use a unique name for your new structure.

o When you define each segment of your Sales Tax Location Flexfield structure, makesure you define them in the order of their dependencies. For example, if you aredefining a new two segment structure using State and city, and State is your parentsegment, define State as your first segment and city as your second segment. When

you assign columns to each segment, make sure you assign them in ascending order,starting with LOCATION_ID_SEGMENT_1. In the example above you would assignLOCATION_ID_SEGMENT_1 to your first segment (County) andLOCATION_ID_SEGMENT_2 (City) to your second segment, as shown below:

o Use this window to also assign your new value sets and flexfield qualifiers to eachsegment. You should only enable one 'Location' qualifier for each segment. In theexample above you would enable the State qualifier for the State segment and the Cityqualifier for the City segment. You must also enable your Tax Account and ExemptLevel qualifiers as described above, then freeze your new structure.


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To define a new or update an existing tax location and its associated tax rate

1.Navigate to Tax Locations and Rates Window:

Oracle Receivables

N Setup Tax Location

2. Choose the type of sales tax structure to define. Choose City, County, or State, as shown below:

3. If you chose a sales tax structure of 'County,' enter the Given State in which this county is located,and then choose Find.

4. If you chose a sales tax structure of 'City,' enter the Given County in which this city is located, thenchoose Find.

5. If you choose a sales tax structure of 'State,' choose Find.

6. If this segment has been assigned to the tax account qualifier, Receivables enters a default TaxAccount. This is the account you defined for the 'Location' tax code type in the Tax Codes and Rateswindow. You can update this information.


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7. Enter the Tax Rate percentage to assign to this location (optional). You can enter multiple tax ratesfor this location as long as the date and postal code range do not overlap. Receivables use the date andpostal code range for each tax rate assignment to determine when this assignment is active for thislocation.

8. If you are entering city level rate assignments and you include City in your tax location flexfield

structure, you can optionally override the sales tax rates for the senior segments (State and/or County)of this structure. To override the sales tax rate for this city's state or county, enter a new rate in theOverride Sales Tax Rates popup window, as shown below

Note: You can only use the override feature if you include City in your Sales Tax Location Flexfield Structure.

9. Enter a range of Effective Dates for this tax rate. The default start date is today's date, but you can

change it. If you do not enter an end date, this tax rate will be valid indefinitely.

10. Enter a range of Postal Codes for this tax rate. Receivables uses the date and postal code range foryour locations to determine which tax rate assignments to use when creating your sales tax rates. You canreview these compiled sales tax rates in the Review Sales Tax Rates window.

11. Save your work.


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Tax Authorities

o Tax Authorities represent a unique combination of locations and are created manuallythrough the Tax Authorities window or automatically when you enter customeraddresses. Receivables use Tax Authorities to expedite sales tax calculations.

o When you enter a customer address, Receivables first checks if this authority alreadyexists for the appropriate date range. If it exists, Receivables uses the combined salestax rate associated with this authority to calculate any tax amounts. If the authoritydoes not exist, Receivables first checks if the locations and associated rates exist. Ifthey exist, Receivables creates the authority and all of the sales tax rates. If thelocations do not exist, Receivables creates the authority and the locations in the TaxLocations and Rates window.

To define a tax authority:

1. Navigate to Authority Window:

Oracle Receivables

N Setup Tax Authority


2. If you are reviewing an existing authority, query the authority to view.o If you are defining a new authority, enter the Authority location, or select from the

list of values. Receivables display an error message if you enter an authority thatalready exists.

3. Enter a range of Effective Dates for this authority. The default start date is today's date, but you canchange it. If you do not enter an end date, this authority will be active indefinitely. Save your work.


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Transaction Processing

Record a Transaction

This chapter explains how to enter, complete, and review invoices. It explains how you can usethe Transaction Workbench to enter Customer transactions. It discusses all kinds of Transactions:Invoices, Credit/Debit Memo, Deposit and Guarantees.

Entering Invoices Overview

In Receivables, Customer Transactions can be entered either manually or can beimported automatically from the Order Management module using “Autoinvoice”

concept.

Prerequisites

• Define Transaction Type

• Define Transaction Source

• Define Auto Accounting Rules

Transaction Type:

• Transaction types are referred to as the classes of transactions like Invoice, Credit memo etc.

• For each transaction type accounting information may be provided.

• If we require an invoice for the customer, the invoice transaction type should be attached to thetransaction.

Transaction Type

Invoice / Debit Memo /Credit Memo


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To define a Transaction Type

1. Navigate to the Transaction Type Window

Oracle Receivables

NSetup Transaction Transaction Type


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2. The screen will appear as follows

• Enter the name and description of the transaction type as shown above.• Select the class of the transaction like Invoice, Debit Memo, Credit Memo etc. from the list of values.• Select the creation sign as ‘Positive’ for an invoice.• Enter the Receivable, Revenue, Tax, Freight account etc.applicable to the invoice. (Optional).• Save the record.


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Transaction Source:

Transaction Source is required for Transactions as it is used for numbering of the transactions.

To define a Transaction Source

1. Navigate to the Transaction Source WindowOracle Receivables

N Setup Transaction Transaction Source

TRANSACTION SOURCE

INVOICE / CREDIT MEMO


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• Enter the name and description of the Transaction Source.

• Select the Type as ‘Manual’ from the List of Values.

• Check the following boxes:

a. Active

b. Automatic Transaction Numbering. When this option ischecked, we have to enter the last number. If the transactionsare required to be numbered starting from ‘1’ onwards, then wehave to enter the last number as ‘0’. If the number has to beentered manually, then the ‘Automatic Transaction Numbering’option should not be checked.


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Auto Accounting Rules

This is a very important tool which enables the system to automatically derive the accounting code combinations

for Receivables, Revenue, Freight, etc. These account combinations are derived fro the various account typesbased on the rules that are provided in the Auto accounting window. These rules should be defined such that itmeets the business requirements.

To define Auto Accounting Rules:

1. Navigate to Auto Accounting Rules Window

Oracle Receivables

N Setup Transaction Auto Accounting

2. The following screen will appear:


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• Select the Type as Receivables, Revenue, Freight, Auto Invoice Clearing, etc. from the List ofValues.

• Select the Segments and specify the source from which the value should be derived from.


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• Recording a Manual Invoice

1. Navigate to Transaction window

Oracle Receivables

N Transactions Transaction

2.

The Transaction screen will be displayed

3. .Select the source from the list of value4. Select the class as invoice.5. Mention the invoice date and the GL date .

6. Choose the customer s bill to site .from the l.o.v7. Choose the payment term and the sales person.


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8. Click line items.


9. Select the items from the list of values10. Enter the Qty. and Unit price11. Save the record12. Click Tax, to view the tax rate13. Click Distributions to view the Revenue account assigned to this invoice.14. Save the record and close the window.10. Complete the transaction

11. A journal entry will be created by the system after completing the transaction.12. View the Journal Entry by selecting : Tools / View Accounting.


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13. The following Journal Entry will appear in the screen


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Recording Credit Memos

1.

Navigate to Transaction windowOracle Receivables


2. The Transaction screen will be displayed

3. .Select the source from the list of value4. . Select the class as Credit Memo.5. Mention the Credit Memo date and the GL date .6. Choose the customer s bill to site .from the l.o.v7. Click line items.


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8. Enter or select the Description from the List of values.9. Enter the unit price in negative amount10. Save the record and close the window11. Complete the Transaction12. A journal entry will be created by the system after completing the transaction.13. View the Journal Entry by selecting: Tools / View Accounting.



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Recording Debit Memos


Oracle Receivables



3. .Select the source from the list of value4. . Select the class as Debit Memo.5. Mention the Debit Memo date and the GL date . The default date will be the system date.6. Choose the customer s bill to site .from the l.o.v7. Click line items.


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Foreign Currency Transactions

Prerequisites:

Define Currency Define Conversion rate type

Define Currency Rate (Daily / Period)

Define Currency:

To define a currency:

1. Navigate to the Customer Calls window.

Oracle Receivables

N Setup Financials Currencies


2. Enter the Currency Code3. Enter the Currency Name and Description

4. Enter the Precision applicable to the currency.5. Save your record


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Define Currency Rate Type:

Conversion rate types are used to automatically assign a rate when you convert foreign currency journalamounts to functional currency equivalents.

When you enter a foreign currency journal, General Ledger automatically displays the predefinedexchange rate based on the currency, rate type (unless you are using the User rate type), and conversiondate you enter. When you have a User rate type, you enter the rate directly when you enter a foreigncurrency journal.

The following are the predefined conversion rate types:

Spot: An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies tothe immediate delivery of a currency.

Corporate: An exchange rate you define to standardize rates for your company. This rate is generally a standardmarket rate determined by senior financial management for use throughout the organization.

User: An exchange rate you specify when you enter a foreign currency journal entry.

You can use these predefined rate types to enter exchange rates, or you can define additional conversion ratetypes. After defining a conversion rate type, enter daily rates using that rate type.

To define a new conversion rate type:

1. Navigate to the Conversion Rate Types window.

Oracle Receivables

N Setup Financials Currencies Rates Conversion Type


2. Enter a Name and Description for the new conversion rate type.

3. Save your work


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Define Currency Rate

- Daily- Period

Entering Daily Rates:

• Daily rates are used to perform foreign currency journal conversions.

• You can maintain daily conversion rates between any two currencies that you have enabledin your applications instance.

To define a daily conversion rate:

1. Navigate to the Conversion Rate Types window.

Oracle Receivables

N Setup Financials Currencies Rates Daily


2. Enter the From-Currency - the currency you want to convert from using the rates you enter.3. As needed, change the To-Currency. If you enter the same currency as your from-currency,you will receive an error.4. Enter the Conversion Date and Type. When you use this date and rate type to enter journals,General Ledger automatically displays the rate you define here.5. Enter the conversion rate you want to use to convert your from-currency amounts into your to-currency equivalents. System automatically calculates the inverse of the rate and displays it inthe adjacent column.

To enter a single rate for a date range:

1. Navigate to the Daily Rates window.


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2. Choose the Enter by Date Range button.

3. Enter the From-Currency - the currency you want to convert from using the rates you enter.4. As needed, change the To-Currency. If you enter the same currency as your from-currency,you will receive an error.5. Enter From Date and To Date to span your desired date range.6. Enter the Conversion Date and Type.

7. Enter the conversion rate you want to use to convert your from-currency amounts into your to-currency equivalents.

Recording a foreign currency transactions:


Oracle Receivables



3. .Select the source from the list of value4. Select the class as invoice.5. Mention the invoice date and the GL date .6. Select the Currency (INR) from the list of value


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10. Enter the Qty. and Unit price11. Save the record and close the window.12. Complete the transaction.13. Choose Details under Balance Due column to see the functional currency value against the entered currencyas shown below:


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Receipts

This chapter explains how to enter and process a single Receipt for invoices.

Recording Single Receipts

− Standard Receipt− Miscellaneous Receipt

Recording Standard Receipt

Use the Receipts window to enter new or query existing receipts. For each receipt, you can see whether thereceipt is identified and what portion of the receipt has been applied, placed on-account, and left unapplied.

Receipt Status

A receipt can have one of the following statuses:

Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automaticreceipts.

Confirmed: For manually entered receipts, this status indicates the receipt belongs to a receipt class that

requires remittance. For automatic receipts, this status indicates the receipt has been confirmed.

Remitted: This receipt has been remitted. This status is valid for both automatic and manually entered receipts.

Cleared: The payment of this receipt was transferred to your bank account and the bank statement has beenreconciled within Receivables. This status is valid for both automatic and manually entered receipts.

Reversed: This receipt has been reversed. You can reverse a receipt when your customer stops payment on areceipt, if a receipt comes from an account with non-sufficient funds or if you want to re-enter and reapply it inReceivables. You can reverse cash receipts and miscellaneous transactions.

Prerequisites

Define receipt classes

Define payment methods

Define receipt sources

Define profile options

Open accounting periods


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Receipt Class:

• Define receipt classes to determine the required processing steps for receipts to which you assignpayment methods with this class.

• These steps include confirmation, remittance, and reconciliation. For example, you must create and remita direct debit, but you must create, confirm, and remit a bills receivable remittance.

• You can specify any combination of these processing steps with one exception: if you confirm andreconcile, then you must also remit. If you enter No for all three of these steps, Receivables automaticallycreates receipts assigned to this receipt class with a status of Cleared.

• Receivables uses the payment method you assign to a receipt class to determine how to account forreceipts you create using this receipt class.

To define a receipt class:

1. Navigate to the Receipt Classes window.

Oracle Receivables

N Setup Receipt Receipt Class


2. Enter a unique Name for your Receipt Class.3. Choose a Creation Method.

• If you choose Automatic, you can create receipts with this receipt class using theAutomatic Receipt program.

• If you choose Manual, receipts using this receipt class must either be entered manually inthe Receipts or QuickCash window, or imported into Receivables using AutoLockbox.


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4. Choose a Remittance Method. The remittance method determines the accounts that Receivables usesfor automatic receipts that you create using payment methods to which you assign this receipt class.Choose one of the following methods:

Standard: Use the remittance account for automatic receipts or for standard billsreceivable assigned to a payment method with this receipt class.

Factoring: Use the factoring account for automatic receipts or for factored bills receivableassigned to a payment method with this receipt class.

Standard and Factoring: Choose this method if you want Receivables to select receiptsassigned to this receipt class for remittance regardless of the batch remittance method. Inthis case, you can specify either of these remittance methods when creating yourremittance batches.

No Remittance: Choose this method if you do not require receipts assigned to thisreceipt class to be remitted.

5. To require receipts created using a payment method assigned to this receipt class to be reconciledbefore posting them to your cash account in the general ledger, choose one of the following ClearanceMethods:

Directly: Choose this method if you do not expect the receipts to be remitted to the bankand subsequently cleared. These receipts will be assumed to be cleared at the time ofreceipt entry and will require no further processing. Choosing this method is the same assetting Require Bank Clearance to No in previous releases of Receivables.

By Automatic Clearing: Choose this method to clear receipts using the AutomaticClearing program. See: Automatic Clearing for Receipts. (Receipts using this method canalso be cleared in Oracle Cash Management.)

By Matching: Choose this method if you want to clear your receipts manually in OracleCash Management.

6. Enter the Payment Method to assign to this receipt class.

Payment Method :

• Receivables uses payment methods to account for your receipt entries and applications. Paymentmethods also determine a customer's remittance bank information.

• You can assign multiple remittance banks to each payment method, but only one bank account can be theprimary account for each currency. For each remittance bank branch account assigned to a paymentmethod, you must define all of your receipt accounts. You can then assign your payment methods toyour receipt sources to use with your AutoLockbox and manually entered receipts.

• If you remit receipts in several currencies for a single payment method, then you must enter at least oneremittance bank per currency. At least one of these remittance banks must be primary.

To define a payment method:

A. Navigate to the Receipt Classes window.

Oracle Receivables


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N Setup Receipt Receipt Class

B. Query or enter the receipt class to assign to this payment method.C. Enter a unique Name for your payment method, then enter how you want this paymentmethod to be printed on your statements in the Printed Name field. The default Printed Name isthe payment method name.D. To assign the same transaction number to the debit memo generated when you create a debitmemo reversal, check the Debit Memo Inherit Receipt Number box. Do not check this box if youwant Receivables to generate unique debit memo numbers automatically.E. If the receipt class associated with this payment method has an Automatic creation method,enter a Number of Receipts Rule (see Number of Receipts Rules above).F. To ensure that the receipt number is always the same as the transaction number to which it isapplied, check the Receipt Inherit Invoice Number box. This option helps you track AutomaticReceipts. Do not check this box if you want Receivables to generate document numbers forAutomatic Receipts assigned to this receipt class and payment method.G. Enter a Receipt Maturity Date Rule. Receivables uses this rule to pay invoices that havedifferent due dates with a single receipt using this payment method. Enter Earliest if you want

the receipt maturity date to be the earliest due date of all of the invoices that your receipt covers.Enter Latest if you want the maturity date to be the latest due date of all of the invoices that yourreceipt covers.H. Enter the Automatic Print Program for transmissions using this payment method.Receivables provides one standard receipt print program to format the output of your paymentselection and creation programs when you physically create the receipt document. If you need adifferent receipt print program format, you must copy this standard receipt print program, andmodify it accordingly.I. Specify a number of Lead Days. Lead days indicate the number of days before the invoice duedate that an invoice can be selected for application by the Automatic Receipts program using thispayment method.

J. Enter the range of Effective Dates for this payment method. The default start date is the

current date, but you can change it. If you do not enter an end date, this payment method will beactive indefinitely.K. Save your work..

7. Choose Bank Account


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8. After defining the bank details, choose Bank accounts from Receipt Class Workbench. Thefollowing screen will appear:


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Receipt Source:

• Define receipt batch sources to provide default values for the receipt class, payment method, andremittance bank account fields for receipts you add to a receipt batch.

• You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source.If you specify a default receipt batch source, Receivables displays this source in the Receipt Batcheswindow when you create your receipt batches.

• When you select a receipt batch source to enter receipts, Receivables automatically uses the Cash, ReceiptConfirmation, Remittance, Factoring, Short Term Debt, Bank Charges, Unapplied Receipts, UnidentifiedReceipts, On-Account Receipts, Earned and Unearned Discounts, and Bills Receivable accountinformation you assigned to the payment method for this batch source. The payment method accountsfor the receipt entries and applications you make using this receipt batch source

To define a Receipt Source:

1. Navigate to the Receipt Sources window.

Oracle Receivables

N Setup Receipt Receipt Source


2. Enter a unique Name and Description for this source.3. Enter a Receipt Class.4. If you entered a Receipt Class, enter a Payment Method (optional). The payment method determinesthe accounting for your automatic and manual receipts.5. To associate a remittance bank with this receipt batch source, enter a Bank Account. A remittance bankaccount is the bank to which you will remit receipts created using this receipt batch source.


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A. Recording Standard Receipt (Cash Receipt)1. Navigate to Receipt window

Oracle Receivables

N Receipts Receipts

2. The following screen will appear in the Receipt Workbench

1. Select the payment method from the List of Value2. Enter the Receipt number.3. Enter the Receipt Amount4. Save the record5. Go to Tools / View Accounting6. The following Journal Entry will be created by the system


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7. Select the Customer Name from the List of Value8. Save the record9. Go to Tools / View Accounting


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10. The following Journal Entry will be created by the system


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11. Click Apply. The following screen will appear

12. Select the invoice number from the list of value under “Apply To”13. Enter the Apply date14. Save the record


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15. Go to Tools / View Accounting to view the Journal Entry


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Miscellaneous Receipt

• Non-invoice related transactions such as investment and interest income are known as miscellaneoustransactions in Receivables.

• Use the Receipts or Receipts Summary window to enter your miscellaneous transactions.

• Receivables uses distribution sets that you define to account for miscellaneous transactions.

To enter a miscellaneous transaction:

1. Navigate to the Receipts window.

Oracle Receivables

Receipt / Receipt

The following screen will appear:

2. Choose a Receipt Type of 'Miscellaneous.'

3. Enter transaction information, including Receipt Number, Currency, Receipt Amount, GL Date, andPayment Method. The batch GL Date provides the default GL Date. If there is no batch information, thedefault is the current date. However, if the current date is not in an open period, the default is the lastdate of the most recent open period.

4. Enter an Activity, or choose one from the list of values. You can enter any Receivables Activity with atype of 'Miscellaneous Cash.' The Receivables Activity determines the default distribution set andaccounting for this transaction.


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5. To review or update the distribution set and general ledger account information for this transaction,choose Distributions.

6. Save your work.


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Collections

This chapter explains how to review customer accounts and perform collection activities such as recordingcustomer calls and printing dunning letters.

Collection workbench Overview

Collections Workbench window is used to view information about your customers' transactions andaccount balances in a variety of ways.

This is also used to place a customer account on credit hold, place items in dispute, view the dunninghistory for a transaction, and correspond with customers by recording customer calls.

The following can be viewed through Collection Workbench:

Customer Calls

Customer Accounts

Aging

Correspondence with the Customer

Transaction overview

Customer Calls:

Whenever a customer is contacted for his past due, the Customer Calls window can be used to recordthe results of your conversation.

By speaking with a customer you may learn that they were incorrectly billed, never received the goodsor services that were ordered, or have already sent payment for the invoice in question.

By entering details about your conversation, you create a record of the contact and can recommend anyfurther collection action.

You can also use the Customer Calls window to place amounts in dispute and review previous calls

made to your customers.

To record a basic customer call:


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1. Navigate to the Customer Calls window.

Oracle Receivables

N Collections Customer Calls


2. Enter the Collector for this customer.

3. Enter either the customer Name or Number, or select from the list of values.

4. Enter the contact's Name and Phone Number, or select from the list of values.

5. Open the Response tabbed region, then enter your customer's response.

6. Enter the Outcome of this call..

7. If the customer promises to pay, enter the Promise Date and Amount and the Forecast Date andpercent you expect to collect. The default currency for the Promise Amount is your functional currency.

8. To enter a call action against this customer or location, choose Actions.

9. Save your work.

Customer Accounts:


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The total amount overdue for a customer or customers can be viewed from the Account Summarywindow.

You can view all transactions that are past due for a specific customer in the Account Details window.

To display a customer's account information in summary form:

1. Navigate to the Customer Accounts window.

Oracle Receivables

N Collections Customer Calls


2. Enter selection criteria in the Find Customer Accounts window. For example, enter a Collector,account Status, or the low and high values of outstanding Balances, Open Credits, Credit Limits, orAmounts Past Due to view only those accounts. Leave a field blank if you do not want to limit yourquery to accounts matching that criteria.

3. Choose Find.

To view the total number and amount of a customer's transactions in summary form:


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1. Navigate to the Account Overview window.

2. Enter the Customer Name or Number to view in the Find Account Overview window. To limit yourquery, enter selection criteria. For example, enter a Customer Name or Number, a range of Periods,transaction Status, or Amount Type to select only those transactions. Leave a field blank if you do notwant to limit your query to transactions matching that criteria.

To view transaction totals by their entered amounts, choose an Amount Type of Original Amount. Toview transaction totals by the amount due, choose an Amount Type of Amount Due Remaining. If youdo not choose an Amount Type, Receivables displays transactions by the amount due.

3. Choose Find.

4. To view the total number and amount of on time, late, non-sufficient funds (NSF), finance charges,and discounts for this customer, open the Key Indicators tabbed region.

To view transactions for a different period, select a different period. To view transaction totals for morethan one period, select a period, press and hold the Shift key, then select another period.

AGING:

Receivables lets you view your customer's outstanding account balances by aging bucket. Aging bucketsare time periods in which you age and can review your debit items. For example, you can define an agingbucket that includes all debit items that are 1 to 30 days past due.

When you view your customer balances by aging bucket, Receivables calculates and displays the totaloutstanding amount and the credits not aged for unapplied cash, on-account cash, on-account credits,and cash claims. You can modify your display by specifying an aging bucket or by choosing to age orsummarize open credits.

Receivables select a transaction for aging if its GL date is before or the same as the current date. Onceselected for aging, Receivables uses the following formula to determine the number of days past due for

each transaction:

(Current Date) - (Due Date) = Days Past Due

To View a Customer’s outstanding account balance by aging bucket:

1. Navigate to the Customer Accounts window.

Oracle Receivables

N Collections Aging



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2. Enter selection criteria in the Find Customer Accounts window. For example, enter a Collector, accountStatus, or the low and high values of outstanding Balances, Open Credits, Credit Limits, or Amounts Past

Due to view only those accounts. Leave a field blank if you do not want to limit your query to accountsmatching that criteria.

3. Choose Find.

4. Select the account to view, and then choose Aging.

5. To modify your display, choose Find from the Query menu, and then enter selection criteria.

6. Choose Find.

7. To view past due transactions within a specific aging bucket, select the bucket to view, then chooseAccount Details.

Correspondence:

Regular correspondence is an effective way to create and maintain good relationships with your

customers.

Receivables provide three ways to correspond with your customers: printing account statements,printing dunning letters, and making customer calls.

Receivables let you view all previous customer correspondence in the Correspondence window.

You can view all previous contact with your customers, including dunning letters, customer calls, andaccount statements in this window.


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To View previous customer correspondence:

1. Navigate to the Correspondence window.

Oracle Receivables

N Collections Correspondence


2. To limit your display to only certain accounts, enter selection criteria.

3. Choose Find.

To view a list of statements generated for a customer, select the account, then open theStatements tabbed region.

To view dunning letters sent to a customer, select the account, then open the DunningLetters tabbed region.


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Closing Accounting Periods

Procedures:

1. Verify all accounts receivable transactions have been entered for the fiscal period.

Verify all payments received have been deposited.

Verify all deposits have been applied.

Verify all cash application adjustments have been made.

Verify all transactions are complete.

2. Transfer the accounts receivable transactions to the General Ledger.

Oracle Receivables

N→ Interfaces→ General Ledger

Run General Ledger Interface

3. Close Accounts Receivable for the period.

Oracle Receivables

N→ Controls→ Accounting→ Open / Close Periods

Open / Close Accounting Periods


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TRANSFER TO GENERAL LEDGER:

• To transfer the transactions to the General Ledger Module and to create Journal Entries in the GeneralLedger Module, GL-Interface program needs to be run.

ACCOUNTS RECEIVABLES

INTERFACE / GENERAL LEDGER

GENERAL LEDGER MODULE


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Interfaces- general ledger

1. Give GL dates2. Click submit.3. See the request in view – request window.


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Reports and Programs

Below essay explains some of the important Oracle Receivables standard reports and listings. It providesstep-by-step instructions for submitting a request, illustrates how you can use reports to reconcile

transactions to the general ledger, and explain report parameters and headings while submitting thereports.

Running Standard Reports and Listings

1. Use Oracle Receivables standard reports and listings to analyze and track your accountsReceivables information.

Navigate to Submit Request window.N Others Requests Run


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2. Select the Name of the request (report or program) you want to run from the LOV in theName field.

• List Oracle Receivables regularly used reports:

1- Transaction Register

2- Aging 4 buckets and 7 buckets Report

3- Receipt Register

4- AR Reconciliation Report

5- Collections by Collectors Report6- Dunning Letter

7- Incomplete invoices report

8- Past Due Invoice Report

9- Applied and Unapplied Receipts Journal

10- Receivables Transfer to General Ledger

11- Supplier / Customer Netting Report

• A Parameters window automatically appears if you select a request that requiresparameter values.


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• Use the LOV to display a list of valid values for a special parameter

• Once you enter the values in the required parameter fields and choose OK, theParameters window closes, and your parameter values will be displayed in theParameters field.

• Choose the Options Button to specify the numbers of copies you want to print andthe printer from which you want to print your report.

• Press Submit Button to submit a concurrent process to run the Report.

•

To view the Report output, Navigate to the Requests window by choosing Viewfrom the Menu Bar and then View Requests.


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Some of the key Reports and Programs in Oracle Receivables


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Transaction Register

Use the Transaction Register to check that all postable items arereflected on your Sales Journal.

Aging 4 bucket & 7 Bucket Reports

Use Aging reports to review information about your open items (the Aging – 7 Buckets by Account report isshown). These reports can print both detail and summary information about your customer’s current and pastdue invoices, debit memos, and chargebacks. Receivables also give you the option to see on–account credits, andon–account and unapplied cash amounts.

Receipt Register

Use this report to review a list of receipts for the range of dates, receipt numbers, or document numbers that youspecify.

AR Reconciliation Report

This report is used to reconcile your accounts receivable activities. This report summarizes all customer, receipt,transaction, and account balances for the period you specify to simplify the internal reconciliation process. The

report uses the following formula to help you reconcile any outstanding receivable amounts:

Totals for Period – End of Period Balance = Difference

The AR Reconciliation report collects information from the following:

• Adjustment Register• Aging (beginning and ending balances)• Applied Receipts Register• Gain/Loss• Invoice Exception Report• Rounding account

• Transaction Register• Unapplied Receipts Register

Collections by Collectors Report

Use this report to review payment applications that each collector helped to collect. You can also use this reportto see which debit items are fully paid to determine how effective your collectors are at collecting customer


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payments. Receivables automatically sorts your information by collector and prints a line for each paymentreceived within the cash collection date range that you specify.

Incomplete invoices report

This report is used to review all of your incomplete invoices, debit memos, credit memos, and on–account credits.Incomplete invoices do not update your open receivables balance nor do they display on your agings. Use theTransactions window to complete your invoice or debit memo once you have updated them. For credit memosand on–account credits, use the Credit Transactions window.

Past due Invoice Report

Use this report to view information about your customer’s past due invoices, debit memos, credit memos,

deposits, chargebacks, and guarantees.

Customer Open Balance Letter

This report is used to periodically inform your customers of open balances or for your own internal auditingpurposes. This letter contains an introductory paragraph, individual transaction information, and theoutstanding balance due for a customer site as of a specific date. You can include transactions for all currencies

in which a customer does business or for only one currency. If you include multiple currencies, the report lists thetotal balance in each currency separately. When calculating a customer’s open balance, Receivables includesinvoices, debit memos, credit memos, bank charges, payments, discounts, on–account credits, and unappliedreceipts. Receivables uses the following formula to calculate the balance due:

Sum of Open Invoices – On–Account Credits – On–Account Receipts – Unapplied Receipts = Open Balance


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Accounting Entries in Oracle Receivables

This essay describes the accounting entries created when you enter transactions in Receivables using theAccrual method of accounting.

Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilledreceivable, finance charges, and Auto Invoice clearing (suspense) accounts using the information

specified in your Auto Accounting structure.

Transactions Invoice Credit Memo

Invoices:

When you enter a regular invoice through the Transactions window, Receivables creates the following journalentry:

Dr. ReceivablesCR RevenueCR Tax (if you charge tax)CR Freight (if you charge freight)

Credit Memos

When you credit an invoice, debit memo, or chargeback through the Credit Transactions window, Receivablescreates the following journal entry:

DR RevenueDR Tax (if you credit tax)DR Freight (if you credit freight)CR Receivables (Credit Memo)DR Receivables (Credit Memo)CR Receivables (Invoice)

Receipts

A. Cash Receipt (Without Remittance)

When you enter a receipt, Receivables creates the following journal entries:

DR CashCR Receivables

When you fully apply a receipt to an invoice, Receivables creates the following journal entry:

DR CashDR Unapplied CashCR Unapplied CashCR Receivables


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When you enter an unidentified receipt, Receivables creates the following journal entry:

DR CashCR Unidentified

When you enter an on-account receipt, Receivables creates the following journal entry:

DR CashCR UnappliedDR UnappliedCR On-Account

When your receipt includes a discount, Receivables creates the following journal entry:

DR ReceivablesCR RevenueDR CashCR ReceivablesDR Earned/Unearned DiscountCR Receivables

Receivables uses the default Cash, Unapplied, Unidentified, On-Account, Unearned, and Earned accounts thatyou specified in the Remittance Banks window for this receipt class.

When you enter a receipt and combine it with an on-account credit (which increases the balance of the receipt),Receivables creates the following journal entry:

DR CashCR Unapplied Cash

To close the receivable on the credit memo and increase the unapplied cash balance, Receivables creates thefollowing journal entry:

DR ReceivablesCR Unapplied Cash

When you enter a receipt and combine it with a negative adjustment, Receivables creates the following journalentries:

DR CashCR Receivables (Invoice)DR Write-OffCR Receivables (Invoice)

Note: You set up a Write-Off account when defining your Receivables Activity.

When you enter a receipt and combine it with a positive adjustment, Receivables creates the following journalentries:

DR CashCR Receivables (Invoice)DR Receivables (Invoice)


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CR Write-Off

When you write off the unapplied amount on a receipt, Receivables creates the following journal entries:

DR Unapplied CashCR Write-off

AR Training Manual Basic Concepts PDF

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