Scribd Logo
Upload

Welcome to Scribd!

  • 11K views

    Oracle R12 AR Receivables Enhancement - Overview

    Uploaded by

    sanjayapps
    The document provides an overview of enhancements to receivables management in R12, including more flexible late charge policies, line-level cash application, and balance forward billing. Key features include assessing late charges by invoice, debit memo, or adjustment; tiered late fee schedules; previewing late charges; and defining billing cycles to generate regular consolidated bills for customers. The enhancements provide more control, flexibility, and integration across receivables processes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Oracle R12 AR Receivables Enhancement - Overview

    Uploaded by

    sanjayapps
    11K views54 pages
    The document provides an overview of enhancements to receivables management in R12, including more flexible late charge policies, line-level cash application, and balance forward billing. Key features include assessing late charges by invoice, debit memo, or adjustment; tiered late fee schedules; previewing late charges; and defining billing cycles to generate regular consolidated bills for customers. The enhancements provide more control, flexibility, and integration across receivables processes.

    Original Description:

    Document/Presentation about new enhancements on Oracle R12 AR (Accounts Receivables)

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides an overview of enhancements to receivables management in R12, including more flexible late charge policies, line-level cash application, and balance forward billing. Key features include assessing late charges by invoice, debit memo, or adjustment; tiered late fee schedules; previewing late charges; and defining billing cycles to generate regular consolidated bills for customers. The enhancements provide more control, flexibility, and integration across receivables processes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11K views54 pages

    Oracle R12 AR Receivables Enhancement - Overview

    Uploaded by

    sanjayapps
    The document provides an overview of enhancements to receivables management in R12, including more flexible late charge policies, line-level cash application, and balance forward billing. Key features include assessing late charges by invoice, debit memo, or adjustment; tiered late fee schedules; previewing late charges; and defining billing cycles to generate regular consolidated bills for customers. The enhancements provide more control, flexibility, and integration across receivables processes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 54

    R12 Receivables Enhancement - Overview

    Agenda

    R12 AR Enhancement Details


    – Late Charges
    – Line Level Cash Application
    – Balance Forward Billing
    – New Accounting Rules
    – Refund Process Automated
    – Customer Enhancement
    R12 AR Enhancement Details – Late Charges
    Late Charges - Market Drives

    • Global Compliance
    – Late charges and Penalty fees based on government requirements

    • Improve Collections
    – Multi-Format Later Charge support
    – Flexible, multi-level Late Charge Policy definitions and assessments
    R12 AR Enhancement Details - Late Charges

    • Flexible charge transaction formats


    – Invoice, Debit memo, Adjustment
    • Preview Mode & Corrections
    • Expanded assessment and calculation capabilities
    – More control over the Assessment
    • System Options
    • Profile Class / Customer Account Profile
    • Transaction Type
    – Tiered charge schedules
    • Rates dependent on length of time overdue
    • Effective dates for charge schedule changes
    – Calculation performed independent of Dunning and Statement processing
    • Integration with Balance Forward Billing
    • Average Daily Balance calculation
    • Leverages MOAC
    Setting up Late Charges

    • Define your organization's late charge policy:


    Enable the check box “Assess Late Charges” at the System Options Level.

    • Set up your late charge documents:


    Record the Late Charges as one of the three document types:
    1.Interest Invoice
    2.Debit Memo
    3. Adjustment
    For points 1 and 2 define Transaction Source and Transaction Type and for the point
    3 define a receivable activity of the type “Finance Charges”.

    • Attach the Transaction Source, Transaction Type and Activity at the System Options
    Level as shown in the next slide.
    Late Charges – System Options
    Late Charges – Transaction Type
    Late Charges – Individual Transaction
    • Define Payment Terms to assess the due date for the transactions.
    • Define Interest Tiers for charging the customers based on the
    range of late days.
    • Define a Charge schedule and assign amounts or percentages to
    interest tiers in the Charge Schedules window.
    Define Late Charges Policy - Customer Profile Class
    • Attach the charge Schedule to the Profile Class of the Customer in
    the “Profile Amounts” tab.
    Attach the Profile Class to the Customer
    Late Charges – Process Flow

    PROCESS

    Run Late Charges Review Late Modify Charges


    Calculation Charges Batch Correct Errors
    Program

    Yes = Draft Mode


    Changes Yes
    Needed?

    Preview Dunning Letter


    Charges? No
    Statements
    Invoice
    API Interest Invoice
    Generate Charges
    Adjustment
    No = Final Mode API

    Automated process
    Charge Interest Days
    Late Charges : View Interest Invoices

    1
    Late Charge 11i V/S R12

    11i R12

    • Finance Charges • Late Charges


    • No Preview / Correction possibility • Allows Preview / Correction possibility
    • Setups and calculation at multiple products • Centralized Late Charges Setup
    and localizations
    • Tiered of Charges not possible • Allows charging Tiered looking at how old
    the amount due is!
    • Fixed Amount (Penalty / Admin Charges) • Fixed Amount charge is supported
    not supported • Exclusion of Disputed Amounts supported
    • Not possible to exclude of Disputed OOTB
    Amounts • Flexible Mode of Charging
    • No Flexibility for Mode of Charging • Interest Invoice
    • Debit Memo
    • Adjustment
    R12 AR Enhancement Details
    Line Level Cash Application
    Line Level Cash Application - Example

    • Vision Computers sends a bill to a customer


    • He wants to dispute the charges for “Monitor“ at the same time pays the
    remaining amount for the other lines ($410)

    Line # Item Qty Rate Amount


    1 CPU 1 $300 $300
    2 Keyboard 1 $50 $50 Payment for $410
    3 Mouse 1 $10 $10 (Line 1,2,3 & 5)
    4 Monitor 1 $100 $100
    5 Modem 1 $50 $50
    Total Invoice Amount $510
    Line Level Cash Application - New Features

    • Manual Receipt Application in Detail


    – Apply specific lines,
    – Group of lines
    – Type (Line, Tax, Freight)
    Line Level Cash Application - Apply at transaction or detail level

    Select the
    invoice to
    Apply

    Click Apply in Detail


    for line level
    applications
    Line Level Cash Application - Flexible Line Level Application

    Select line and


    enter amounts

    Expand Tree to
    apply specific Lines “Select All
    Lines” for all
    lines to
    display

    Discounts calculate
    automatically
    R12 AR Enhancement Details
    Balance Forward Billing
    Balance Forward Billing - Market Drivers

    • Enhanced consolidated billing for those industries that bill their


    customers on a regular, cyclical basis.

    • Enable billing policies consistent with organizational needs

    • Improved communication with Customer

    • Enhanced viewing and printing of bills

    • Better integration with feeder systems

    • Fewer processes to manage

    • Synchronize bills with Aging


    Balance Forward Billing - Steps Required

    • Defining Billing Cycle – There are 3 Types of Billing Cycle as shown in the
    billing slides.
    • Daily Cycle:
    • Weekly Cycle:
    • Monthly Cycle:
    • Assigning the Billing cycle to Payment Term:

    • Monthly Cycle:

    Enhanced Feature
    in R12
    Balance Forward Billing - External Billing Cycle

    • Billing can be done in legacy system, without predefined cycles, and


    imported
    – Bill date cannot be determined by payment term with external cycle
    – So, billing date must populated because it is required for due date calculation
    Balance Forward Billing – Steps required

    – Assigning the Payment Term to the Customer Profile Class and


    attaching the profile class to the Customer.

    Attaching the
    Payment Term
    Balance Forward Billing -Transaction Processing

    • Payment Term defaults


    – from Site profile if Bill Level =
    Site
    – from Account profile if Bill
    Level = Account
    • Billing Date
    – derived from transaction date
    and billing cycle
    • Due Date
    – derived from billing date and
    payment term
    • Optionally select
    – non-Balance Forward term if
    Override is allowed
    Balance Forward Billing - Derivation of Date

    Payment Term BFB Cycle


    Customer

    Customer Due Date BFB Cycle


    Site
    30 Days 25th

    ----------
    -------
    -------
    -------
    --

    Txn. Date Billing Date Due Date


    15-May-2005 25-May-2005 24-Jun-2006
    Balance Forward Billing Process Overview

    PROCESS

    Manually Create Import


    Transactions Transactions

    Draft or Final
    Run Generate
    Balance Forward
    Bill Program

    Accept or Reject

    Run BPA Run Confirm


    Balance Forward Balance Forward
    Print Program Bills Program

    Automated process
    Balance Forward Billing
    Utilize BPA – Seeded Summary Bill Format
    Balance Forward Billing
    Utilize BPA – Seeded Detailed Bill Format
    R12 AR Enhancement Details
    Daily Revenue Recognition
    Daily Revenue Recognition--Market Drivers

    • Distribute revenue in a more granular fashion including full and


    partial periods.
    • Accurate revenue distribution for service and subscription
    industries
    – Accuracy to the number of days in the accounting period
    – Support of partial period revenue recognition
    • Compliance
    – Fulfill stringent accounting standards introduced by the US GAAP and
    SOX for recognizing revenue Enhanced Revenue Contingencies
    Daily Revenue Recognition -New Features

    • Two new types of Accounting Rules Introduced


    – Daily Revenue Rates, All Periods
    – Daily Revenue Rates, Fully Period
    • Allows accurate calculation of Periodic Revenue based on just
    “Start” and “End” dates.
    Daily Revenue Recognition - Example

    A sample contract valid from 14th January to 15th April

    • How do we calculate daily revenue rate?

    Total Revenue
    Daily Rate = ------------------------------------------------------
    Number of Days (Duration Period)
    Revenue Management - Example

    R11i vs. R12 revenue distributions Daily rate = 600/183 = 3.28

    GL Revenue R11i Rev R12 Rev R12 Rev Days


    Date Period Amount Amount Amount
    Daily Rev Daily Rev
    Rate, All Rate, Partial
    Periods Periods
    Apr 17 Month of Apr 100 45.92 45.92 14
    May 17 Month of May 100 101.68 100.32 31
    June 17 Month of Jun 100 98.40 100.32 30
    July 17 Month of July 100 101.68 100.32 31
    Aug 17 Month of Aug 100 101.68 100.32 31
    Sept 17 Month of Sept 100 98.40 100.32 30
    Oct 16 Month of Oct ----- 52.24 52.48 16
    600 600 600 183
    Daily Revenue Recognition - Set Up Accounting Rule

    Select a rule
    type

    New R12 daily


    revenue types

    From R11i rule


    types
    Daily Revenue Recognition - Create Invoice Lines

    Enter Daily
    Enter rulerule end
    Enter
    Revenue rule
    enddate
    date
    R12 AR Enhancements
    Refund Process Automated
    Automated Refund

    • Automate refund process for non-credit card transactions


    • Leverage AP workflow approval
    • AP transacts refunds via Oracle Payments
    • Credit Memo based Refund Automation:
    – Create credit memos via Auto Invoice
    – Refunds are automated
    – View refund status in AP workbench
    • Manual:
    – Manually refund from Receipts – Application window
    – Refunds are automated
    – View refund status in AP workbench
    Automated Refund Set up

    Receipt
    Handling =
    Refund

    Transaction Sources Setup


    Automated Refund Set up
    Automated Refund Process Example

    • A simple process is demonstrated where we have receipt of 1000 USD out of which
    600 USD has been applied to an Invoice and the balance 400 USD has been
    refunded on account of return of goods by the customer.

    Refund Attributes
    Tab
    Automated Refund Process Example

    • In the Apply to region of the receipt select the activity “Refund”. A new tab
    Refund Attribute will come up where you enter the refund disbursement details
    Payables requires for example customer, Payment Method and indicate where to
    send the refund.

    Refund Status
    Tab
    Automated Refund Process Example

    When you save the receipt, Receivables sends a refund request to Payables, which
    uses its workflow approval process to validate the information before sending a
    payment request to Payments. After you create a refund, you can view the refund
    status by selecting Refund Status in the Applications window.
    Automated Refund Process Example
    Automated Refund Process Example
    Customer Enhancements

    The standard customer form has been replaced with a new HTML form for
    creation and updates to customer information.

    • Addresses usability concerns


    • Backwards compatible with standard customer form
    • Includes personalization features
    Customer Enhancements

    You might also like