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Cathy Cakebread

Consultant

NorCal OAUG January 13, 2011

Copyright 2011 Cathy Cakebread1

Oracle Receivables Fundamentals

(and How it Fits into the Big Picture)

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Agenda


y Quote to Cash Flows

y Customers/Parties

y Shared Setups

y Orders to Invoices

y Oracle Receivables Processes

y Transactions

y Payments

y Adjustments

y Accounting

y Questions??

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Target Audience


y Folks Who Use Oracle Receivables

y To Learn More About Where Their Data Comes From

y And, to Learn About Shared Setups

yFolks Who Use Applications That Pass Data toOracle Receivables

y To Learn More About Where Their Data Goes

y To Learn The Impact of Their Activities

y

And, to Learn About Shared Setupsy CRM, Order Management, Contracts and Projects folks

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Basic Premise


The Oracle E-Business Suite is comprised of many differentapplications performing various business functions. Akey aspect of this is that most of these applicationsshare setups with other applications and data is often

passed from one application to others. What this meansis that what you do in your application may have animpact on many other applications, in ways that you maynot be aware of.

The purpose of session is to provide attendees with the

details of how the data flows in and out of OracleReceivables, how certain setups are shared acrossmultiple applications and to see how Oracle Receivablesfits in the Big Picture.

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Quote to Cash Flows


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Quote to Cash Applications


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One Way Only!!!


Tip: Make Corrections in the Source System, Whenever Possible

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Items


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Items and Receivables


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Payment Terms

(Orders, Invoices, Contracts, Projects)


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Banks


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What Is A Customer? A Party? A

Customer Account?


y One Customer May be All Three

y Partyy Highest Level Global Entity

y Used More By CRM Applications Than Back Office

y Can Be:y Customer, Suppliers, Employees, Anyone/Business That Interacts

With Your Company

y Customery Made Up of One or More Legal Entities

y Made Up of One or More Addresses /Sites

y Entity for Orders and Invoicesy Customer Account

y A Customer May Have One or More Accounts

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Customer Components


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Typical Customer Creation (Who)

Add New Relationships (as Needed)

(Credit and Collections / Accounts Receivable)

Update Credit Details

(Credit and Collections)

Add New Customer

(Credit and Collections / Salesrep / Order Entry / Accounts Receivable)

Complete Credit Application

(Salesrep/Customer)

Approve Credit Application

(Credit and Collections)


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Orders Workflow Example

Copyright 2011 Cathy Cakebread

16

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Assemble to Order Workflow


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Order Transaction Types


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Credit Holds / Credit Checking Rules


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Transactions


y Invoices

y Credit Memos

y Debit Memos

y Depositsy Guarantees

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Transactions Flow / Sources


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Transactions Example - Invoice


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Transaction Details


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Source: OrdersContractsProjects

Source: Order LinesContract LinesProject Tasks

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Transactions Setup


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y Payment Terms (Shared Defines When Payment is Due)

y **Transaction Types (Business and Accounting Grouping andDefault GL Accounts)

y Sources (Where Transactions Come From & Numbering Rules)

y

Items (Shared Parts)y Memo Lines (Used for Debit Memos)

y Accounting Rules (Derive How Revenue and Receivables AreAccounted For)

y **AutoAccounting(Derive Accounting Values)

y AutoInvoicey Line Ordering Rules (Rules for Sequencing Transaction Lines)

y Grouping Rules (Rules for What Goes on the Same Transaction)

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Receipts


y Payments for Non-Accounts Receivable Activitycalled Miscellaneous Receipts

y Payments for Company Events, T-Shirts, COBRAPayments, Utility Refunds...

y Payments from Customers For Accounts ReceivableActivity (Paying for Open Transactions)

y Forms of Payment:

y Checks

y

Cashy Credit Card Payments

y Letters of Credit

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Receipt Sources


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Receipts Setup


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y **Receivable Activities (Base Activity and MiscellaneousCash Definitions)

y AutoCash Rule Sets (Rules for How to Apply Cash ThroughLockbox)

y Application Rule Sets (Rules for Partial Payments)

y Distribution Sets (for Miscellaneous Cash with MultipleAccounts)

y Receipt Sources (Where Receipts Came From and Rules)

y **Receipt Classes (Key Accounting Setup)

y Bank Charges (Rules for Bank Charges)

y Lockboxesy Lockboxes (Bank and Processing Rules)

y Transmission Formats (Layouts of Data From Bank)

y Banks (The Banks and Associated GL Accounts)

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Adjustments


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Credit Memos:1) Tied to an Invoice When Created2) On-Account Credit Not Tied to an Invoice When Created

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Payables and Receivables


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Accounting (Basics)


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Questions and Answers


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Questions?

Cathy Cakebread

[email protected]

(650) 610-9130www.cathycakebread.com

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