Standard and Factoring By automatic clearing
6) Auto adjustments:
One can run auto adjustments to automatically run auto adjustments for the remaining balances of all open invoices, debit memos, credit memos and charge backs.
Prerequisite:
Define a receivable activity.
Since, we have already defined a receivable activity for adjustment we could use it.
Create auto adjustments.
i) Generate report only:
We will generate report to find the invoices and the amount to be generated to create adjustments
Ii) Create adjustments.
Query the transaction to see the amount adjusted.
Navigation: Control > Adjustments > create auto adjustments.
Create auto adjustments (vision operation) ---- Selection---
Invoice currency USD
Remaining amount -1000 to 1000
Remaining %
Due date 1 Nov 2011 to 10 Nov 2011
Transaction type
Customer name PR customer
Customer number Transaction
Parameter:
Activity PR receivable activity
Type Invoice adjustment
GL date 1 Nov 2011
Reason Request id
Option Generate report only.
Create adjustment.
Adjust related invoices.
Type:
Charge adjustment, freight adjustment Invoice adjustment, line adjustment Tax adjustment.
First click generate report only to create the report and see the adjustments to be adjusted.
Click submits and the request id is generated. Verify whether it is completed.
Note: please create transaction and receipts with balance due less than 1000 to verify the adjustments working fine or not.
Once it generate only job is over. Verify the report and submit another report by selecting create adjustment radio button and click submit.
Verify the job request is completed and view click output to see the output details.
Note down invoice number and go back to transaction and query the invoice to check whether the balance due is got adjusted. Click details button to see original and adjusted balances.
Receipt source:-
One can use the receipt source to number either automatic or manual receipt batch.
Name of the receipt source.
Attach the receipt class, payment method and bank a/c.
Enter the type of batch numbering and the last number entered.
Enter the effective dates.
Navigation:-
Setup > receipt > receipt sources.
Receipts write –off:
In oracle receivable, one can write if and apply the receipt amount.
Submit
Prerequisite:
Define a receivable activity.
Enter the approval limit for receipt write off.
We have already defined the receivable activity for adjustment. Similarly create the PR receipt write off by selecting the receipt write-off type and other details are same and save and close the activity window.
Approval limit also have been defined already for up to 3000.
Enter a receipt:
Apply to a transaction
Select receipt write-off for excess unapplied amount to write off.
Select on account of receipt write off for excess amount to be in on account.
Enter the receipt with payment method as PR payment method; receipt number PR RS 0021, receipt amount. 11500 and receipt date, GL date, Maturity date 25 Nov 2011.
Select the customer: PR customer and Press enter and save the receipt and click apply button.
Select the transaction by clicking on the list of values in the apply to field.
Transaction number is 1103 having balance due of 11000. Change the apply date 25 Nov 2011, amount applied as 10000 and click save.
There are 500 which is an unapplied amount. Now we need to write off the 500. Select receipts write off.
AR STEPS:
Based on purchase order issued by customer, receipt we recd..
Generate sale order.
Invoice is raised and payment made.
Flexfield -> sales tax location field (M) Territory flexfield (O).
System option – accounting method.
Tax-> sales tax=defined in state, country, city flexfield and VAT= no validation
Specify the location tags;
Hierarchy of tax.
Define the payment terms.
Define the collectors, customer Profile class.=== for creating customers.
Define the customer === give the customer Profile and collectors here and payment terms.
Define tax location rates for state, country and city.
For invoice, we need transaction type. In that give receivable, revenue, unbilled receivable, tax and GL A/C need to be specified.
Define transaction source.
After defining
Apply to field and apply date 25 Nov 2011 and amount applied is 500 and give the activity as PR receipt write off and click save and closes the application window.
Store the excess amount in the “on account”.
1-4 steps are same. Instead of writing off the amount lying as unapplied we can keep the excess amount in the on account which can be used for some other transaction.
Select “on account” in the apply to field for the excess 500 and save the record. So now the excess amount is move to on account.
If we want to use this on account amount to some other amount, Give the amount applied as zero the amount goes to unapplied status. Then we can use this amount for some other transaction.
Automatic receipt write off:
One can run automatic receipt write off Program to write off multiple receipts advanced individual receipts returns.
The concurrent Program creates a write off and closes receipts.
Prerequisite:-
Define a receivable activity for receipts write off.
Activity GL account: PR-000-1345-0000-000 -> Receipt write off.
Create automatic receipt write off:-
Generate report only:
Generate report will written off receipts which are to be write off.
Create adjustments.
Enter receipts with a difference of 0 to 3000 amount that is more than the original transaction.
In order to create receipt writes off.
Navigation: control > write off receipts
A window receipt writes off is displayed.
Create receipt write off:
Selection:
Receipt currency USD
Unapplied amount 3000
Payment method PR payment method
Customer name PR customer
Customer no 4090
Parameters:
Activity PR receipt write off
Apply date 25 Nov 2011
GL date 25 Nov 2011
Option:
Generate report only.
Report writes off.
Generate report only so submit the report by clicking submit to list the written off receipts which needs to be adjusted.
Now give the same details again click create write off receipts radio button.
Request id is generated click view – request – find to check the completion of report.
Requery the query and see the write off is created.
Application rule set:-
The application rule set determines the order in which receivable reduces the balance due for the transaction like line, freight, tax and finance charges.
Prerequisite:-
Create an application rule set.
Attach the application rule set to the transaction type.
Enter a receipt
Apply the receipt against the transaction
Query the transaction
Creation of application rule set: Navigation: setup > receipts > application rule.
Give a name for application rule set: PR application rule set.
Receivable will automatically assign the over application rules by default this rule will be the last in the sequence for any application rule set.
One has to enter the rule detail for the application rule. The rule details section describes the type and tax treatment for this rule.
Save and enter the application rule detail type: line, freight, charges. Tax treatment = Prorate, before, after, none.
Submit
Application rule sets:
Application rule set PR application rule set
Description PR application rule set.
Freeze.
Application rule sets: Rules details
Sequence Rule Rounding collection Type Tax treatment
1. Line Line Before
2. Freight Freight None
3. Charges Charges None
4. Over application rule
A) The system will Proportionality reduces the net amount for the line and associated tax amount when I select Prorate.
B) The system will first reduces the tax amount and then apply the remaining amount to line when I select the before option.
C) When I select after, it first reduces the line amount then it applies the remaining amount to tax.
6) Click save and after saving enable the freeze check box.
7) A decision box will be displayed.
Click on yes button.
8) Close application rule set.
Attach the application rule set to the transaction type:
Query the transaction invoice PR invoice in the transaction window and attach the PR application rule set in the application rule set field.
Application rule set: PR application rule set.
After attaching rule set, click save and close the window.
Pending data changes will be saved. Save changes and continue?
YES NO
Enter the receipt by selecting payment method; enter the receipt number, amount, receipt type (standard), receipt date, GL date, and maturity date. Select the customer and save this window.
A) click apply button to select a transaction from the list of values having balance 11100 with receipt entered amount 10000. So balance due is 1100.
B) Save and close this application and receipt window.
4) Query the transaction number 1146 in the transaction window by going into transaction > transaction.
5) execute the query by Pressing ctrl +F11. The transaction is retrieved and we can see balance due of 1100.
Where line 600 and freight 500 so total 1100.
6) First tax has been applied and the remaining amount is applied to line amount.
7) The application is based on the application rule set defined.
8) Close the balance and transaction window.
Receipt reversal:
One can reverse the receipt with customer stops payments or receipts come from an account with insufficient funds.
Standard receipts reversal:
Query the receipts
Reverse the receipts.
Debit memo reversal:
Query the receipts.
Enter a debit memo reversal.
Query at the transaction work bench.
Category:-
o Non sufficient fund o Reverse payment o Stop payment.
o Standard receipt reversal:
One can create a standard reversal for a receipt and receivable automatically creates reversal journal entry for ones GL and reopens all debits and credits which originally closed by the receipts.
Query the receipts number in the receipts window. (PRRS 001)
To reverse the receipt, click reverse button on the receipt window. A reverse window will be displayed.
Reverse:
Date 18 Nov 2011 GL date 20 Nov 2011
Category Non-sufficient funds Non-sufficient funds
Reason Non-sufficient funds Insufficient funds
Comment
Debit memo reversal.
Account type Document num:
Click reverse button and we can see the status in the receipt window as “Reversed”.
Status : “Reversed”
Confirmation 1240 0.00
Confirmation 1240 10000
Confirmation 1240 10000
Receivable 1210 10000
Receivable 1210 10000
Receivable 1210 10000
Receivable 1210 10000
Remittance 1245 0.00
Remittance 1245 10000
Remittance 1245 10000
Unapplied 1240 10000
Unapplied 1240 10000
Unapplied 1240 10000
Unapplied 1240 10000
Unapplied 1240 10000
Unapplied 1240 10000
Unidentified 2990 10000
Unidentified 2990 10000
Debit memo reversal:
When one creates debit memo reversal, receivable reverses the receipt but does not update any other receipt activity that is associated with the original receipt.
Query a receipt that has been applied to a transaction.
Reverse Cancel
Here we take PRRS004 where entire amount is paid
Reverse the receipt.
Even though the receipt has been reversed, the status of the receipt remains the same.
It creates a debit memo transaction like newly created transaction the amount needs to be paid.
Reverse window:
Date 20 Nov 2011 GL date 20 Nov 2011
Category Reverse payment Reverse payment
Reason Payment reversal Payment was reversed.
Comment
Debit memo reversal.
Account type Debit memo reversal. Document num:
Click reverse button to reverse transaction.
Take the receipt number and it will be the newly created transaction number PR RS 004.
Query the transaction in transaction window.
Source Debit memo reversal
Number PRRS004
Class Debit memo
Type Debit memo reversal.
Click line details.
We will see a new line created with description “Debit memo for reversal of payment of PR RS 004”.
Miscellaneous receipts:
These are receipts which are non-operational income such as income earned from investment, interest, refund and towards sale of stock.
Prerequisite:
Set up a distribution set
Set up a receivable activity
Miscellaneous receipt Enter a miscellaneous receipt.
I) a) set up a distribution set:
Reverse Cancel
Navigation: Setup > receipts > distribution sets.
It displays the distribution set window to enter the distribution.
Give a name for distribution set.
Give the distribution set lines for 100%.
b) Set up a receivable activity:
Setup > receipts > receivable activity.
Receivable activity
Operating unit Vision operation
Name PR MIS REC ACT
Description PR miscellaneous receivable activity
Type Miscellaneous cash
Active.
GL account source Distribution set
Tax code source None
Activity GL account
Distributions set PR MIS DIS set
GL account description Asset tax code Liability tax code
Click save and close the receivable activity window.
Distribution set:
Operating unit Vision operation
Name PR MIS DIS set
Description PR miscellaneous Distribution set
Active.
Distribution set lines:
% Account Description
30 PR-110-4150-0000-000 Miscellaneous revenue for dept 110
40 PR-120-4150-0000-000 Miscellaneous revenue for dept 120
40 PR-130-4150-0000-000 Miscellaneous revenue for dept 130
Total 100%
Clicks save and close the distribution set.
Reference Post mark date
1. Customer
It displays the distribution window to enter details.
Enter the receipt:
Enter the receipts with receipt type as miscellaneous.
Receipt type =”Miscellaneous”
Enter the payment method, receipt number, receipt amount, receipt date, GL date.
Receipt
Payment method PR payment method
Receipt number PR RS MIS0001
Receipt amount USD 10000
Receipt type Miscellaneous