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)

Account Generator - Terms

• Workflow Builder• Item Type• Attribute• Function• Process• Lookup Type

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

2. From the Hidden Items list, select the Account Generator to be modified

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)

12. File Save As Database13. From GL Super User, select the new COGS

Account Generator

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]