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Oracle Receivables Doc Update: January 2002

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0% found this document useful (0 votes)
241 views31 pages

Oracle Receivables Doc Update: January 2002

Oracler Receivables Doc Update RELEASE 11i contains proprietary information of Oracle Corporation. The Programs are provided under a license agreement containing restrictions on use and disclosure. No part of the Programs may be reproduced or transmitted for any purpose without Oracle Corporation's express written permission.

Uploaded by

SamHas
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Oracler Receivables

Doc Update
RELEASE 11i

January 2002
Oracler Receivables Doc Update Release 11i

Copyright E 1988, 2002, Oracle Corporation. All rights reserved.


Primary Author: Charles Ahern, Stephen R. Damiani, Robert MacIsaac, Kristin Penaskovic
Major Contributors: Craig Borchardt, William Hogan, Lee Konstantinou, Essan Ni
Contributors: Nilesh Acharya, Vikram Ahluwalia, Ramakant Alat, Chelvi Balasubramian, Olga
Basman, Sharmila Bhavsar, Victoria Crisostomo, Ed Cheng, Ravi Dasani, Vish Bhupathiraju Editt,
Alan Fothergill, Sushama Borde, K.C. Buckley, Renee Connors, Dianna Ferguson, Editt Gonen–Fried-
man, Manoj Gudivaka, Miranda Ho, Debbie Jancis, Govind Jayanth, Martin Johnson, Charity
Kocher, Yanya Kong, Peggy Larson, Joyce Leung, Scott Lucey, Kavi Namdakumar, Sai Rangarajan,
Saloni Shah, Oliver Steinmeier, Mien Lin Tan, Tasman Tang, Anne Truitt, Genneva Wang, Kathy
Weitzel
The Programs (which include both the software and documentation) contain proprietary information
of Oracle Corporation; they are provided under a license agreement containing restrictions on use and
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Program Documentation is licensed for use solely to support the deployment of the Programs and not
for any other purpose.

The information contained in this document is subject to change without notice. If you find any
problems in the documentation, please report them to us in writing. Oracle Corporation does not
warrant that this document is error free. Except as may be expressly permitted in your license
agreement for these Programs, no part of these Programs may be reproduced or transmitted in any
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RESTRICTED RIGHTS LEGEND


Programs delivered subject to the DOD FAR Supplement are ’commercial computer software’ and use,
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disclosure of the Programs shall be subject to the restrictions in FAR 52.227–19, Commercial Computer
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The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other
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names may be trademarks of their respective owners.
Overview of Setting Up
During setup, you define business fundamentals such as the activities
you process and their accounting distributions, your accounting
structure, and various control features. Setup is also the time to define
comprehensive defaults that Receivables uses to make data entry more
efficient and accurate. In addition, setup lets you customize Receivables
to employ the policies and procedures that you use in your business.
You can set up Receivables a number of different ways. The following
graphic shows the most complete setup scenario. For a complete
description of each setup step, see: Setup Steps: page 2 – 10.
If you use the Oracle Applications Multiple Organization Support
feature to use multiple sets of books for one Receivables installation,
please refer to the Multiple Organizations in Oracle Applications manual
before proceeding.
If you plan to use Oracle Cash Management with Oracle Receivables,
additional setup steps are required. For more information, refer to the
Oracle Cash Management User Guide.
Note: If you plan to use Multiple Reporting Currencies (MRC)
with Receivables, additional setup steps are required. For
more information, refer to the Multiple Reporting Currencies in
Oracle Applications manual.

Oracle Applications Implementation Wizard


If you are implementing more than one Oracle Applications product,
we recommend that you use the Oracle Applications Implementation
Wizard to coordinate your setup activities. The Implementation Wizard
guides you through the setup steps for the applications you have
installed, suggesting a logical sequence that satisfies cross–product
implementation dependencies and reduces redundant setup steps.
You can use the Implementation Wizard to see a graphical overview of
setup steps, read online help for a setup activity, and open the
appropriate setup window. You can also document your
implementation, for further reference and review, by using the Wizard
to record comments for each step.

2–2 Oracle Receivables User Guide


See Also

About the Oracle Applications Implementation Wizard (Oracle


Applications Implementation Wizard User Guide)

Related Product Setup Steps


The following steps may need to be performed to implement Oracle
Receivables. These steps are discussed in detail in the Setting Up
sections of other Oracle product user guides.

Set Up Underlying Oracle Applications Technology


The Implementation Wizard guides you through the entire Oracle
Applications setup, including system administration. However, if you
do not use the Wizard, you need to complete several other setup steps,
including:
• performing system–wide setup tasks such as configuring
concurrent managers and printers
• managing data security, which includes setting up
responsibilities to allow access to a specific set of business data
and complete a specific set of transactions, and assigning
individual users to one or more of these responsibilities.
• setting up Oracle Workflow

See Also

Oracle Applications Implementation Wizard User Guide

Oracle Applications System Administrator’s Guide

Oracle Workflow Guide

Setting Up 2–3
General Ledger Setup Steps
Refer to the Setting Up General Ledger section in the General Ledger
User Guide to complete the following setup steps. The following table
lists steps and a reference to their location within the Applications
Implementation Wizard (AIW).

Step AIW Reference


Define Chart of Accounts Common
Applications
Define Currencies Common
Applications
Define Calendars Common
Applications
Define Calendar Periods Common
Applications
Define Calendar Period Types Common
Applications
Define Document Sequencing Common
Financial
Define Sets of Books Common
Applications
Assign Set of Books to a Responsibility Common
Applications
Define Daily Conversion Rate Types Common
Applications
Define Multiple Reporting Currencies Sets of Books Common
Applications
Define Set of Books Specification Common
Applications
Define Accounting Flexfield and Accounting Common
Flexfield Combinations Applications
Table 2 – 1 (Page 1 of 1)

2–4 Oracle Receivables User Guide


Oracle Inventory Setup Steps
Refer to the Setting Up Oracle Inventory section in the Oracle Inventory
User Guide to complete the following setup steps, as described in this
table.

Step AIW Reference


Define Inventory Organizations Common
Applications
Define Items Common
Applications
Define Item Catalog Common
Applications
Define Item Category Common
Applications
Define Units of Measure and Unit of Measure Common
Classes Applications
Table 2 – 2 (Page 1 of 1)

Oracle System Administration Setup Steps


Refer to the Oracle Applications System Administrator’s Guide to complete
the following setup steps, as described in this table.

Step AIW Reference


Define Audit Trails Common
Applications
Define Printers Common
Applications
Define Security (for example: users, responsibilities, Common
and concurrent programs) Applications
Table 2 – 3 (Page 1 of 1)

Setting Up 2–5
Oracle Global Accounting Engine Setup
Refer to the setup section in the Oracle Applications Global Accounting
Engine User Guide to complete the following setup step, as described in
this table.

Step AIW Reference


Set Up Global Accounting Engine Common
Applications
Table 2 – 4 (Page 1 of 1)

Oracle Human Resources Management Systems Setup


Refer to the Using Oracle HRMS – The Fundamentals to complete the
following setup step, as described in this table.

Step AIW Reference


Define Organizations (single or multi–org) Common
Applications
Table 2 – 5 (Page 1 of 1)

2–6 Oracle Receivables User Guide


Setup Checklist
The following table lists Oracle Receivables setup steps. A reference to
each step’s location within the Applications Implementation Wizard
(AIW) and whether the step is optional or required is provided. After
you log on to Oracle Applications, complete these steps to implement
Oracle Receivables:

AIW
Step Num Required Step
Reference
❑ Step 1 Required Define Sets of Books: page 2 – 10 Common
Applications
❑ Step 2 Required Decide How to Use the Account Generator: page 2 – 11. Common
Applications
❑ Step 3 Optional Define Transaction Flexfield Structure: page 2 – 11 Oracle
Receivables
❑ Step 4 Optional Define Descriptive Flexfields (System Items and Common
Territory flexfields): page 2 – 12 Applications
❑ Step 5 Required Define Organizations: page 2 – 13 Common
Applications
❑ Step 6 Required Define Sales Tax Location Flexfield Structure: page Common
2 – 13 Applications
❑ Step 7 Optional Define AutoCash Rule Sets: page 2 – 14 Oracle
Receivables
❑ Step 8 Optional Define Receivables Lookups: page 2 – 14 Common
Financial
❑ Step 9 Optional Define Demand Class Lookups: page 2 – 15 Oracle
Receivables
❑ Step 10 Optional Define Invoice Line Ordering Rules: page 2 – 15 Oracle
Receivables
❑ Step 11 Optional Define Grouping Rules: page 2 – 15 Oracle
Receivables
❑ Step 12 Optional Define Application Rule Sets: page 2 – 15 Oracle
Receivables
❑ Step 13 Required Define System Options: page 2 – 16 Oracle
Receivables
❑ Step 14 Optional Define Flexible Address Formats: page 2 – 17 Oracle
Receivables
Table 2 – 6 (Page 1 of 4)

Setting Up 2–7
AIW
Step Num Required Step Reference
❑ Step 15 Optional Maintain Countries and Territories: page 2 – 17 Common
Financial
❑ Step 16 Required Define Payment Terms: page 2 – 17 Common
Financial
❑ Step 17 Optional Assign Reporting Set of Books: page 2 – 19 Oracle
General
Ledger
❑ Step 18 Optional Define Accounting Rules: page 2 – 19 Oracle
Receivables
❑ Step 19 Required Open or Close Accounting Periods: page 2 – 19 Oracle
Receivables
❑ Step 20 Required Define AutoAccounting: page 2 – 20 Oracle
Receivables
❑ Step 21 Optional Set Up Cash Basis Accounting Method: page 2 – 20 Oracle
Receivables
❑ Step 22 Required Define Transaction Types: page 2 – 20 Oracle
Receivables
❑ Step 23 Required Define Transaction Sources: page 2 – 21 Oracle
Receivables
❑ Step 24 Required Define Collectors: page 2 – 21 Oracle
Receivables
❑ Step 25 Required Define Approval Limits: page 2 – 21 Oracle
Receivables
❑ Step 26 Required Define Remittance Banks: page 2 – 22 Common
Financial
❑ Step 27 Optional Distribution Sets: page 2 – 22 Common
Financial
❑ Step 28 Required Define Receivables Activities: page 2 – 22 Oracle
Receivables
❑ Step 29 Optional Define Receipt Programs: page 2 – 22 Oracle
Receivables
❑ Step 30 Required Define Receipt Classes: page 2 – 23 Oracle
Receivables
❑ Step 31 Required Define Payment Methods: page 2 – 23 Oracle
Receivables
Table 2 – 6 (Page 2 of 4)

2–8 Oracle Receivables User Guide


AIW
Step Num Required Step Reference
❑ Step 32 Required Define Receipt Sources: page 2 – 23 Oracle
Receivables
❑ Step 33 Optional Define Aging Buckets: page 2 – 24 Oracle
Receivables
❑ Step 34 Optional Define Statement Cycles: page 2 – 24 Oracle
Receivables
❑ Step 35 Optional Define Standard Messages: page 2 – 24 Oracle
Receivables
❑ Step 36 Optional Define Dunning Letters: page 2 – 24 Oracle
Receivables
❑ Step 37 Optional Define Dunning Letter Sets: page 2 – 24 Oracle
Receivables
❑ Step 38 Optional Define Territories: page 2 – 25 Common
Financial
❑ Step 39 Required Define Salespersons: page 2 – 25 Oracle
Receivables
❑ Step 40 Required Define System Profile Options: page 2 – 25 Oracle
Receivables
❑ Step 41 Required Define Customer Profile Classes: page 2 – 26 Oracle
Receivables
❑ Step 42 Required Define Customers: page 2 – 26 Oracle
Receivables
❑ Step 43 Optional Define Remit–To Addresses: page 2 – 26 Oracle
Receivables
❑ Step 44 Optional Define Customer Relationships: page 2 – 27 Oracle
Receivables
❑ Step 45 Optional Define Lockboxes: page 2 – 27 Oracle
Receivables
❑ Step 46 Optional Define Transmission Formats: page 2 – 27 Oracle
Receivables
❑ Step 47 Optional Define Unit of Measure Classes: page 2 – 27 Common
Applications
❑ Step 48 Optional Define Units of Measure: page 2 – 28 Common
Applications
❑ Step 49 Optional Define Standard Memo Lines: page 2 – 28 Oracle
Receivables
Table 2 – 6 (Page 3 of 4)

Setting Up 2–9
AIW
Step Num Required Step Reference
❑ Step 50 Optional Set Up Cross Currency Receipts: page 2 – 28 Oracle
Receivables
❑ Step 51 Required Set Up Tax: page 2 – 29 Oracle
Receivables
❑ Step 52 Optional Set Up Tax Vendor Extension: page 2 – 29 Oracle
Receivables
❑ Step 53 Optional Set Up Document Sequences: page 2 – 30 Common
Financial
Table 2 – 6 (Page 4 of 4)

Setup Steps
For each step, we include a Context section that indicates whether you
need to repeat the step for each set of books, set of tasks, inventory
organization, HR organization, or other operating unit under Multiple
Organizations.

Step 1 Define Set of Books (Required)


If you previously defined your set of books in the Setting Up Oracle
Applications Set of Books section while setting up a different Oracle
Applications product, proceed to the next step.
You need to define at least one set of books before you can implement
and use Receivables. You specify which set of books your Receivables
installation uses in the System Options window.
When defining a set of books, you also need to:
• Assign your Set of Books to a Responsibility
• Define your Accounting Flexfield
• Define your Accounting Flexfield Combinations (Optional)
• Define your Calendar Period Types
• Define your Calendar Periods
• Define your Currencies
• Define your Daily Conversion Rate Types

2 – 10 Oracle Receivables User Guide


• Define your Daily Rates (Optional)
Context: Perform this step for each installation.
See: Defining Sets of Books in the Oracle General Ledger User Guide.
Additional Information: If you use the Oracle Applications
Multiple Organization Support feature, you can use multiple
sets of books for one Receivables installation. See: Using the
Multiple Organization Support Feature: page 2 – 151.

Step 2 Decide How to Use the Account Generator (Required)


The Account Generator ensures that Receivables substitutes the correct
balancing segment values during various accounting activities against
transactions and receipts. You must review the default process that
Receivables uses to see if it meets your accounting requirements. You
can optionally customize the Account Generator for each set of books
that you have defined.
Additionally, you can disable balancing segment substitution for
receivable activities using the AR:Disable Receivable Activity Balancing
Segment Substitution profile option. If you set this profile option to Yes,
then you must define a suspense account to ensure that the transfer to
General Ledger succeeds in the event that your activities and original
transactions do not post to the same balancing segment value. This
profile option does not affect the gain, loss, and rounding accounts that
you define at the system options level.
Context: Perform this step for each set of books.
See: Using the Account Generator in Oracle Receivables: page 2 – 45.

Step 3 Define Transaction Flexfield Structure (Optional)


If you are not using AutoInvoice, proceed to the next step.
If you use AutoInvoice to import information from an external system
and create transactions in Oracle Receivables, define Transaction
Flexfields to uniquely identify these transactions. Because Transaction
Flexfields are unique, you can also use them to link and reference other
transaction lines.
Context: Perform this step for each installation.
See: Transaction Flexfields: page 4 – 253.
Suggestion: To query your Transaction Flexfield, update the
Transaction Flexfield information for previously entered
transactions.

Setting Up 2 – 11
Suggestion: Create indexes on your Transaction Flexfield
columns if you want to query Transaction Flexfield information
in your invoice headers and lines. Additionally, without
indexes the validation portions of the AutoInvoice program can
be slow. For more information about defining Transaction
Flexfield indexes, see: Importing Invoice Information Using
AutoInvoice: page 4 – 219.

Step 4 Define Flexfields


For Receivables, you need to define both key and descriptive flexfields.
For key flexfields, you define the flexfield structure, specifying the
number and function of segments, and then select the structure. For
descriptive flexfields, you define the global data element context, any
additional contexts that you might require, and then the structure of
these contexts. Key flexfields do not use contexts.
Define Key Flexfields (Required)
You can use the Territory flexfield for recording and customized
reporting on your territory information. Receivables provides a default
structure for your Territory flexfield. You can associate Territory
flexfields with salespeople, invoices, commitments, and customer
business purposes.
Note: You must enable at least one segment of your Territory
flexfield. See: Territory Flexfield: page 2 – 259
Proceed to the next step if you previously defined your System Items
Flexfield while setting up another Oracle Applications product.
If you have not installed Oracle Inventory or Oracle Order
Management and you want to report on item information, define your
System Items flexfield. You must define your System Items flexfield
before defining items in Oracle Receivables.
All Oracle products that reference items share the System Item Flexfield
and support multiple segment implementation. Oracle provides a
seeded System Item Flexfield for you (Code = ’MSTK’). Define a
structure for this flexfield rather than creating a new flexfield.
After you define your System Item Flexfield structure, specify your
Item Flexfield profile options. Set the OM: Item Flexfield profile option
at the site level to specify the System Item Flexfield structure that you
want to use. Set this to System Items, which is the System Item Flexfield
structure that you just defined.
Next, set your AR: Item Flexfield Mode profile option to choose your
preferred method of entry for this flexfield within Receivables. This
default value is concatenated segment entry.

2 – 12 Oracle Receivables User Guide


See: Inventory Setup Steps, Oracle Inventory User Guide
Define Descriptive Flexfields (Optional)
Define a descriptive flexfield if you want to capture information that is
not otherwise captured in a Receivables form. You can define
descriptive flexfields during your initial setup or at a later time.
See: Descriptive Flexfields: page 2 – 93
See: Planning Your Descriptive Flexfield (Oracle Applications Flexfields
Guide)
Context: Perform this step for each installation.

Step 5 Define Organizations (Required)


You must define at least one organization to use Receivables. This
organization lets you use the inventory forms in Receivables if you do
not have Oracle Inventory installed.
Define the control options and account defaults for your organization
before you can define items or perform any transactions. You must
assign a unique short code to your organization and use this code to
identify the organization with which you want to work.
If you have Oracle Order Management installed:
After you define your organizations and items, you must select the
item validation organization in the Order Management Parameters
window. The item validation organization, which must be an item
master organization, indicates the organization that Receivables uses to
validate items.
Context: Perform this step for each business group.
See: Organizations: page 2 – 149.
See: Enabling Order Management Parameters in the Oracle Order
Management User Guide

Step 6 Define Sales Tax Location Flexfield Structure (Required)


Receivables uses the customer shipping address to determine the sales
tax rate on transactions for all customers in the country that you define
in the System Options window as your home country. Proceed to the
next step if you are not charging your customers tax based on their
shipping address.
Following are the seeded Sales Tax Location Flexfield structures:
• Country

Setting Up 2 – 13
• State and City
• Province and City
• City
• Province
• State, County and City
Use the Key Flexfield Segments window to select the seeded Sales Tax
Location Flexfield structure, or to set up a new structure, that you want
Receivables to use to determine your sales tax rates and to validate
your customer addresses.
You can confirm that the required segments are enabled by navigating
to the Segments Summary window. Navigate back to the Key Flexfield
Segments window to freeze your flexfield structure by checking the
Freeze Flexfield Definition check box and then compiling the flexfield.
Note: When you define tax system options in the System
Options window, use the list of values in the Location Flexfield
Structure field to select the same Sales Tax Location Flexfield
structure that you selected in the Key Flexfield Segments
window.
Context: Perform this step for each installation.
See: Defining Key Flexfield Structures in the Oracle Applications
Flexfields Guide.
See: Defining a Sales Tax Location Flexfield Structure in the Oracle
Receivables Tax Manual.

Step 7 Define AutoCash Rule Sets (Optional)


If you are using AutoCash, define your AutoCash rule sets before
defining system parameters or customer profiles classes. AutoCash
rules determine the sequence of application methods Receivables uses
when applying receipts imported using AutoLockbox to open debit
items.
Context: Perform this step for each installation.

See: AutoCash Rule Sets: page 2 – 60.

Step 8 Define Receivables Lookups (Optional)


Receivables provides several default lookups which are used
throughout the application to provide validated default values and list
of values choices. You can add or update these to customize your list
of values and speed data entry. For example, you can define additional

2 – 14 Oracle Receivables User Guide


reasons for creating credit memos or enter the names of each freight
carrier used by your business.
Context: Perform this step for each installation.

See: Defining Receivables Lookups: page 2 – 132.

Step 9 Define Demand Class Lookups (Optional)


Demand classes are categories you can use to segregate scheduled
demand and supply into groups, so that you can track and consume
the groups independently. You can then assign demand classes to
customers in the Customers windows. Use the Demand Class Lookups
window to modify existing or define new Lookups for your shared
demand classes.
Context: Perform this step for each installation.

See: Demand Class Lookups: page 2 – 142.

Step 10 Define Invoice Line Ordering Rules (Optional)


If you are using AutoInvoice, define invoice line ordering rules to
specify how you want to order and number transaction lines after
AutoInvoice groups them into invoices, debit memos, and credit
memos. Receivables provides many attributes that you can use to
define your line ordering rules.
Context: Perform this step for each installation.

See: AutoInvoice Line Ordering Rules: page 2 – 66.

Step 11 Define Grouping Rules (Optional)


If you are using AutoInvoice, define grouping rules to indicate how
you want to group transaction lines imported by AutoInvoice. For
example, to include specific transaction lines on a single transaction,
certain attributes must be identical. Receivables provides many
attributes that you can use to define your grouping rules.
Context: Perform this step for each installation.

See: Grouping Rules: page 2 – 122.

Step 12 Define Application Rule Sets (Optional)


Define Application Rule Sets to control how Receivables reduces the
balance due for your open debit items when you apply payments using
either the Applications window or Post QuickCash. You can define

Setting Up 2 – 15
your own application rule sets, assign them to transaction types, and
specify a default rule set in the System Options window.
Context: Perform this step for each installation.
Default – If you skip this step, Receivables uses the rule set Line First –
Tax After as the default. This rule set first applies the payment to the
line amount and then applies the remaining amount to any associated
tax.

See: Receivables Application Rule Sets: page 6 – 41.

Step 13 Define System Options (Required)


Define your accounting, discount, tax, and invoice system options to
control how Receivables works. System options determine your
accounting method, set of books, accounting flexfields, whether you
use header or line–level rounding, and control the default operation of
the AutoInvoice and Automatic Receipt programs.
System options also control how Receivables calculates tax on your
transactions. You must specify a tax method, choose a Location
Flexfield Structure, indicate whether to compound tax, select the
address validation to use, and define tax defaults and rounding
options. As you can set up your system to calculate Sales Tax, Value
Added Tax, or Canadian Tax, we recommend that you carefully review
the appropriate implementing tax essay before defining your system
options.
For more information, refer to the appropriate implementing tax essay
in the Oracle Receivables Tax Manual.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to define system
options for each of your operating units. For more information
about multiple organizations, refer to the Multiple Organizations
in Oracle Applications manual.
Suggestion: If you are using flexible address formats to enter
and validate your customer address information, implement
the seeded Sales Tax Location Flexfield structure ’Country – No
Validation’. Alternatively, if you use a Sales Tax Location
Flexfield that contains a segment other than ’country’ and wish
to set up a flexible address format for your home country,
every component in your Sales Tax Location Flexfield structure
must also exist in your flexible address style for that country.
See: Using Flexible Addresses: page 3 – 97.

2 – 16 Oracle Receivables User Guide


Below is a list of optional system options; all other system options are
required. There are no default values for these system options.
• Accounting Flex Tuning Segment
• AutoCash Rule Set
• Header Rounding Account
• Purge Interface Tables
• SQL Trace
• System Items Tuning Segment
• Tax Registration Number
• Territory Tuning Segment
• Unallocated Revenue Account*
* Required if your Accounting Method is Cash Basis.
Context: Perform this step for each operating unit.
See: Defining Receivables System Options: page 2 – 201.

Step 14 Set Up Flexible Address Formats (Optional)


To enter customer, supplier, bank, check, and remit–to addresses in
country–specific formats, set up flexible address formats. For example,
if you have customers in Germany, you can enter German addresses in
the format recommended by the Bundespost, or enter addresses for
customers in the United Kingdom in the format recommended by the
Royal Mail.
Context: Perform this step for each installation.
See: Setting Up Flexible Addresses: page 3 – 89.

Step 15 Maintain Countries and Territories (Optional)


Use the address style field to assign address styles to countries if you
want to use the Flexible Address Formats feature.
You can identify which countries are part of the European Union (EU)
by entering a VAT Member State Code for these countries. The
Receivables European Sales Listing report uses this information to
produce a listing of all sales to customers in European Community
member states other than your own.
Context: Perform this step for each installation.

Step 16 Define Payment Terms (Required)

Setting Up 2 – 17
Define payment terms to determine the payment schedule and
discount information for customer invoices, debit memos, and
deposits. You can also define proxima payment terms to pay regular
expenses such as telephone bills and credit card bills that occur on the
same day each month and create split payment terms for invoice
installments that have different due dates.
Context: Perform this step for each installation.
See: Payment Terms: page 2 – 164.
Default – If you skip this step, Receivables uses 30 NET as the default.
This payment term indicates that payment is due within 30 days.

2 – 18 Oracle Receivables User Guide


Step 17 Assign Reporting Set of Books (Optional)
If you are not using Multiple Reporting Currencies (MRC) functionality,
skip this step.
To maintain transactions and account balances in multiple currencies,
assign your reporting set of books to your primary set of books. This
enables you to generate reports in each of your reporting currencies.
For example, you can maintain a primary set of books in USD (US
dollars) and have Oracle General Ledger maintain reporting sets of
books in CAD (Canadian dollars) and EUR (euros).
Context: Perform this step for each set of books.
For more information, refer to Multiple Reporting Currencies in Oracle
Applications.

Step 18 Define Accounting Rules (Optional)


If your accounting method is Accrual, define accounting rules to create
revenue recognition schedules for your invoices. Accounting rules
determine the number of periods and percentage of total revenue to
record in each accounting period.
When you use accounting rules, you also need to define the
appropriate periods to which your rule refers. You enter these periods
in the Calendar window and they must refer to the same period type as
your accounting rule. For example, if you are using an accounting rule
that recognizes revenue monthly from Jan–99 through Jun–99, you
must define periods from Jan–99 through Jun–99 where the period type
is Month. These periods must be defined in the same calendar as your
accounting periods. You define Calendars in Oracle General Ledger.

☞ Attention: If you have an accounting period type that is not


Month and you use AutoInvoice with Oracle Order
Management, you should update the Period field for the
predefined IMMEDIATE accounting rule to the same period as
your accounting period type.
Context: Perform this step for each installation.
See: Accounting Rules: page 2 – 31.

Step 19 Open Accounting Periods (Required)


Open or close periods in your accounting calendar to control the
recording of accounting information for these periods. Receivables
uses the status of these accounting periods to control transaction entry
and journal entry creation to your general ledger. You cannot enter an
activity in a closed accounting period. Receivables provides the

Setting Up 2 – 19
following period statuses: Not Opened, Future, Open, Close Pending,
and Closed.
Note: Define your Receivables calendar in the Accounting
Calendar window in Oracle General Ledger.
Context: Perform this step for each operating unit.
See: Opening and Closing Accounting Periods: page 8 – 10.

Step 20 Define AutoAccounting (Required)


Define AutoAccounting to specify the general ledger accounts for
transactions that you enter manually or import using AutoInvoice.
AutoAccounting uses this information to create the default revenue,
receivable, freight, tax, unearned revenue, unbilled receivable, finance
charges, bills receivable accounts, and AutoInvoice clearing (suspense)
accounts.
Context: Perform this step for each operating unit.
See: AutoAccounting: page 2 – 56.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 21 Set Up Cash Basis Accounting Method (Optional)


If you are not using the Cash Basis accounting method, skip this step.
If you are using the Cash Basis accounting method, you must set your
Accounting Method system option to Cash Basis, define transaction
types, set up an Unallocated Revenue account, and run a script to make
the GL Transfer and Journal Entry Reports incompatible with each
other.
Context: Perform this step for each operating unit.
See: Using Cash Basis Accounting: page 8 – 23.

Step 22 Define Transaction Types (Required)


Define the transaction types that you assign to invoices, debit memos,
commitments, chargebacks, credit memos, on–account credits, and bills
receivable. Receivables uses transaction types to default payment term,
account, tax, freight, creation sign, posting, and receivables
information. Receivables provides two predefined transaction types:
Invoice and Credit Memo.

2 – 20 Oracle Receivables User Guide


Context: Perform this step for each operating unit.
See: Transaction Types: page 2 – 270.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 23 Define Transaction Sources (Required)


Define the transaction sources that you assign to invoices, debit
memos, commitments, credit memos, on–account credits, and bills
receivable. Receivables uses transaction sources to control your
transaction and transaction batch numbering, provide default
transaction types for transactions in batch, and to select validation
options for imported transactions. Receivables provides the following
predefined transaction sources: MANUAL–OTHER, DM Reversal, and
Chargeback.
Context: Perform this step for each operating unit.
See: Transaction Batch Sources: page 2 – 262.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 24 Define Collectors (Required)


Define collectors to assign to your customers through credit profile
class assignments. Collectors can use the Collections windows and
Receivables collection reports to keep apprised of a customer’s past
due items. Receivables provides a predefined collector called
DEFAULT.
Context: Perform this step for each installation.
See: Collectors: page 2 – 91.

Step 25 Define Approval Limits (Required)


Define approval limits to determine whether a Receivables user can
approve adjustments or credit memo requests. You define approval
limits by document type, dollar amount, reason code, and currency.
Approval limits affect the Adjustments, Submit AutoAdjustments, and

Setting Up 2 – 21
Approve Adjustments windows as well as the Credit Memo Request
Workflow.
Context: Perform this step for each installation.
See: Approval Limits: page 2 – 43.

Step 26 Define Remittance Banks (Required)


Context: Perform this step for each operating unit.
Proceed to the next step if you already defined your remittance banks
in Oracle Payables.
Define all of the banks and bank accounts you use to remit your
payments. You can define as many banks and bank accounts as you
need and define multiple currency bank accounts to accept payments in
more than one currency.
See: Defining Banks: page 2 – 71.

Step 27 Define Distribution Sets (Optional)


Define distribution sets if you enter non–invoice related receipts and
you want to use a predefined revenue distribution set. Distribution
sets are predefined groups of general ledger accounting codes that
determine the credit accounts for positive miscellaneous receipt
amounts and the debit accounts for negative receipt amounts.
Context: Perform this step for each operating unit.
See: Distribution Sets: page 2 – 95.

Step 28 Define Receivables Activities (Required)


Define Receivables Activities to provide default accounting information
when you create adjustments, discounts, finance charges,
miscellaneous cash transactions, and bills receivable. Receivables also
uses Receivables Activities to account for tax if you calculate tax on
these activities.
Context: Perform this step for each operating unit.
See: Receivables Activities: page 2 – 178.

Step 29 Define Receipt Programs (Optional)


To create Automatic Receipts, define additional receipt or remittance
format programs that you use to send paper and electronic documents
to your customers and remittance banks. You can define as many
receipt programs as you need.

2 – 22 Oracle Receivables User Guide


Context: Perform this step for each installation.
Default – If you skip this step, Receivables uses the Automatic Receipt
print program ’Print Created Receipts’ (ARXAPFRC.rdf).
See: Automatic Receipt Programs: page 2 – 68.

Step 30 Define Receipt Classes (Required)


Define receipt classes to specify whether receipts are created manually
or automatically. For manual receipts, you can specify whether to
automatically remit it to the bank and/or clear your accounts. For
automatic receipts, you can specify a remittance and clearance method,
and whether receipts using this class require confirmation.
Context: Perform this step for each installation.
See: Receipt Classes: page 2 – 171.

Step 31 Define Payment Methods (Required)


Define the payment methods to account for your receipt entries and
applications and to determine a customer’s remittance bank
information. When defining payment methods, you must enter a
receipt class, remittance bank information, and the accounts associated
with your payment receivables type. You can also specify accounts for
confirmation, remittance, factoring, bank charges, and short–term debt.
Context: Perform this step for each installation.
See: Payment Methods: page 2 – 152.

Step 32 Define Receipt Sources (Required)


Define receipt sources to provide default values for the receipt class,
payment method, and remittance bank account for receipts in a batch.
Receipt Sources also determine whether the numbering for receipts in a
batch is automatic or manual.
Context: Perform this step for each operating unit.
See: Receipt Sources: page 2 – 175.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Setting Up 2 – 23
Step 33 Define Aging Buckets (Optional)
Define aging buckets to review and report on open receivables based
on the number of days each item is past due. For example, the
4–Bucket Aging bucket that Receivables provides consists of four
periods: –999 to 0 days past due, 1 to 30 days past due, 31–61 days past
due, and 61–91 days past due.
Context: Perform this step for each installation.
See: Aging Buckets: page 2 – 36.

Step 34 Define Statement Cycles (Optional)


Define statement cycles to control when you create customer
statements. You assign statement cycles to customers in the Customer
Profile Classes window.
Context: Perform this step for each installation.
See: Statement Cycles: page 2 – 199.

Step 35 Define Standard Messages (Optional)


Define standard messages to customize the content of customer
statements. Standard messages automatically print on the bottom of
your statements. Use the Print Statements window to assign statement
messages and submit statements for printing.
Context: Perform this step once for each installation.
See: Standard Messages: page 2 – 198.

Step 36 Define Dunning Letters (Optional)


Define dunning letters to inform your customers of past due items and
finance charges. Receivables provides three predefined letters named
STANDARD1, STANDARD2 and STANDARD3 as well as ten letters
that you can customize. You can also create your own dunning letters.
Context: Perform this step for each installation.
See: Dunning Letters: page 2 – 109.

Step 37 Define Dunning Letter Sets (Optional)


Define dunning letters sets if you want to send your customers
dunning letters. You can use dunning letter sets to combine a sequence
of dunning letters into one group and increase the severity of each
letter. Receivables provides one letter set called STANDARD which
includes the three STANDARD letters described in the previous step.

2 – 24 Oracle Receivables User Guide


Context: Perform this step for each installation.
See: Creating Dunning Letter Sets: page 2 – 115.

Step 38 Define Territories (Optional)


If you defined a Territory Flexfield and want to create customized
reports based on territory information, define Territory Flexfield
combinations. You can assign Territory Flexfields to salespersons,
invoices, and customer business purposes.
Context: Perform this step for each installation.
See: Territories: page 2 – 258.

Step 39 Define Salespersons (Required)


Define salespersons to allocate sales credits to invoices, debit memos,
and commitments. If you do not want to assign sales credits for a
transaction, you can enter No Sales Credit. If AutoAccounting
depends on salesperson, Receivables uses the general ledger accounts
that you enter for each salesperson along with your AutoAccounting
rules to determine the default revenue, freight, and receivable accounts
for transactions.
Context: Perform this step for each operating unit.
See: Salespersons: page 2 – 187.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 40 Define System Profile Options (Required)


Define profile options to provide default values for some Receivables
operations, specify how Receivables processes data, and control which
actions users can perform.
Context: Perform this once for each installation.
See: Overview of Receivables User Profile Options: page B – 4.
Note: For more information, please refer to Update Personal
Profile Options in the Oracle Applications User Guide and
Update System Profile Options in the Oracle Applications System
Administrator’s Guide.

Setting Up 2 – 25
Step 41 Define Customer Profile Classes (Required)
Define customer profile classes to categorize customers based on credit,
payment terms, statement cycle, automatic receipt, finance charge,
dunning, and invoicing information. When you initially set up your
customers, you assign each customer to a profile class. To customize
the profile class for a specific customer, use the Customer Profile
Classes window.
Context: Perform this step for each installation.
Default – If you skip this step, Receivables uses the profile class
DEFAULT.
See: Defining Customer Profile Classes: page 3 – 63.

Step 42 Define Customers (Required)


Proceed to the next step if you defined customers while setting up
another Oracle Applications product.
Define customers and customer site uses to enter transactions and
receipts in Receivables. When you enter a new customer, you must
enter the customer’s name, profile class and number (if automatic
customer numbering is set to No). You can optionally enter customer
addresses, contacts, site uses and telephone numbers. You must enter
all the components of your chosen Sales Tax Location Flexfield when
entering customer addresses in your home country.
Context: Perform this step for each installation.
See: Entering Customers: page 3 – 7.

Step 43 Define Remit–To Addresses (Required)


Define remit–to addresses to inform your customers where to send
payments. Associate each remit–to address with one or more state,
country, and postal code combinations. For example, if you want your
customers in California and Nevada to send their payments to a
specific address, enter the remit–to address and associate the states CA
and NV with this address. Remit–to addresses are assigned based on
the bill–to address on the transaction.
Context: Define remit–to addresses for each installation. For each
operating unit, associate each remit–to address with a state and
country.
See: Remit–To Addresses: page 2 – 184.
Suggestion: It is a good idea to set up a default remit–to
address, even if you have other remit–to addresses defined,

2 – 26 Oracle Receivables User Guide


because Receivables can use this address if the bill–to location
on the transaction is not covered by any other remit–to address
assignment. This may happen, for example, when you create
transactions for a new customer.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 44 Define Customer Relationships (Optional)


Define customer relationships to enable customers to apply receipts to
related customer transactions. To restrict receipt application to only
related customers, define relationships between your customers and set
the system option Allow Payment of Unrelated Invoices to No.
Receivables lets you define one way and reciprocal relationships
between your customers.
Context: Perform this step for each operating unit.
See: Creating Customer Relationships: page 3 – 60.

Step 45 Define Lockboxes (Optional)


To import receipts from a bank file using AutoLockbox, define
lockboxes. For each lockbox, enter the lockbox number, bank name,
batch source, bank account, bank origination number and cash account.
Context: Perform this step for each operating unit.
See: Lockboxes: page 2 – 144.

Step 46 Define Transmission Formats (Optional)


If you use AutoLockbox to import receipts, define a transmission file
format. Transmission formats specify how data in your lockbox bank
file is organized so it can be successfully imported into the Receivables
interface tables. Receivables provides several standard transmission
formats you can modify to meet your needs.
Context: Perform this step for each installation.
See: Transmission Formats: page 2 – 279.

Step 47 Define Unit of Measure Classes (Optional)


Proceed to the next step if you defined units of measure classes while
setting up another Oracle Applications product.

Setting Up 2 – 27
Use the Units of Measure Classes window to define and update groups
of units of measure with similar characteristics (for example, Volume or
Length). A class consists of a base unit of measure and other assigned
units of measure. Use this window to define the base unit of measure
for each class.
Context: Perform this step for each installation.
See: Unit of Measure Classes: page 2 – 286.

Step 48 Define Units of Measure (Required)


Proceed to the next step if you defined units of measure while setting
up another Oracle Applications product.
Use the Units of Measure window to define one or more units of
measure. Each item that you define in Receivables must have a
primary unit of measure that you will have defined in this window.
The number of units of measure that you define in this window
depends on the variety of physical characteristics of your
organization’s inventory.
Context: Perform this step for each installation.
See: Units of Measure: page 2 – 287.

Step 49 Define Standard Memo Lines (Optional)


Define standard memo lines to enter predefined lines for debit memos,
on–account credits, and invoices. When you define standard memo
lines, you can specify whether a line is for charges, freight, line, or tax.
Receivables also lets you define one chargeback and one debit memo
reversal line.
Context: Perform this step for each operating unit.
See: Standard Memo Lines: page 2 – 194.

☞ Attention: If you use the Oracle Applications Multiple


Organization Support feature, you need to perform this step for
each of your operating units. For more information about
multiple organizations, refer to the Multiple Organizations in
Oracle Applications manual.

Step 50 Set Up Cross Currency Receipts (Optional)


If your organization needs to apply receipts to transactions in different
currencies, set up Receivables for cross currency receipts. To do this,
define a cross currency rounding account in the System Options
window, and define a suspense account in Oracle General Ledger.

2 – 28 Oracle Receivables User Guide


Context: Perform this step for each operating unit.
See: Setting Up Cross Currency Receipts: page 6 – 21.

Step 51 Set Up Tax (Required)


In Step 13 you set up Receivables system options and reviewed the
implementing sales tax, VAT, or Canadian tax essay. Set up the
remaining features of Receivables tax by defining tax–specific profile
options, tax codes and rates, tax Lookups, tax exceptions and
exemptions, tax authorities, and tax groups.
Context: Perform this step for each operating unit.
For more information, refer to the appropriate implementing tax essay
in the Oracle Receivables Tax Manual.

Step 52 Set Up Vendor Extension (Optional)


If you are not using a tax vendor with Oracle Receivables, skip this
step.
Oracle Receivables provides a tax vendor extension that integrates
external tax calculation programs with Oracle Applications. This
extension performs complex tax calculations while using Receivables to
create and store all other tax data. You can implement either the
Taxware Sales/Use Tax System or Vertex Quantum with Oracle
Receivables.
Context: Perform this step for each operating unit.
Depending on the tax vendor you are using, refer to one of the
following implementation guides: Integrating Oracle Receivables with
Taxware Sales/Use Tax System or Integrating Oracle Receivables with Vertex
Quantum.

Setting Up 2 – 29
Step 53 Define Document Sequences (Optional)
By assigning unique numbers to documents, you can account for each
transaction you enter and the document that accompanies it.
To enable sequential numbering, set the Sequential Numbering profile
option to either ’Always’ or ’Partially Used’. You must then define and
assign categories and sequences for each transaction type, payment
method, adjustment, and finance charge activity that you use.
Context: Define categories and sequences for each installation. Assign
sequences to categories for each set of books.
See: Implementing Document Sequences: page 2 – 97.

2 – 30 Oracle Receivables User Guide

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