Invoices with Multi-Fund Accounts Receivable Procedures 6-13
Multiple Funds Balances Window Description
Table 6–2 Multiple Funds Balances Window Description
Field Name Type Features Description
Receivable Account display only multi-fund receivables account
Amount Due Original display only original receivables amount; original amount of invoice or amount owed
Amount Applied display only receipts amount applied to invoice Amount Adjusted display only adjustments amount raised against invoice Amount Credited display only credit memos amount raised against invoice
Amount Discounted display only discounts against invoice. For example, if a customer pays early, they may receive a discount.
Amount Due Remaining
display only amount still due
Receivable Description
display only receivables accounting flexfield description
Multiple Funds Balances Window Description
6-14 Oracle Public Sector Advanced Features User’s Guide
Credit Memos with Multi-Fund Accounts Receivable Procedures 7-1
7
Credit Memos with Multi-Fund Accounts Receivable Procedures
This chapter describes how to enter credit memos, view and distribute credit memo distributions, and reallocate distributions manually using the multi-fund accounts receivable feature. The following sections are in this chapter:
■ Definition
■ Overview
■ Prerequisites
■ Entering a Direct Credit Memo Procedure
■ Credit Transactions Window
■ Entering an On-Account Credit Memo Procedure
■ Transactions Window
■ Viewing and Distributing Direct Credit Memo Distributions Procedure
■ Credit Memo Distributions Window, Direct Credit Memo
■ Credit Memo Distributions Window Description
■ Viewing and Distributing On-Account Credit Memo Distributions Procedure
■ Credit Memo Distributions Window, On-Account Credit Memo
Definition
7-2 Oracle Public Sector Advanced Features User’s Guide
Definition
A credit memo is a document that partially or fully reverses an original invoice. A direct credit memo reverses a specific invoice or invoice line directly. An on-account credit memo credits a customer’s account but is not related to a specific invoice until applied.
Overview
Multi-fund accounts receivable supports the following types of credit memos:
■ direct credit memos
■ on-account credit memos
The credit memo process consists of the following:
1. entering a direct or an on-account credit memo 2. viewing and distributing credit memo distributions
Note: Credit memo types are not flagged as multi-fund accounts receivable transaction types. A credit memo becomes a multi-fund accounts receivable credit memo when it is linked to a multi-fund accounts receivable invoice.
Examples
The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account:
■ invoice
■ direct credit memo at header level (line, tax, and freight)
■ direct credit memo at header level (line only)
■ direct credit memo at line level
■ on-account credit memo
Overview
Credit Memos with Multi-Fund Accounts Receivable Procedures 7-3
Invoice
The credit memo examples are based on the following invoice.
Standard Receivables With multi-fund accounts receivable disabled, the invoice accounting is as follows:
Multi-Fund Accounts Receivable With multi-fund accounts receivable enabled, the invoice accounting is as follows:
Dr. Receivables $1,605 Account - 01.000.1200
Cr. Revenue $1,000 Account - 02.101.3000
Cr. Tax $50 Account - 02.000.2500
Cr. Freight $20 Account- 02.101.4500
Cr. Revenue $500 Account - 03.102.3000
Cr. Tax $25 Account - 03.000.2500
Cr. Freight $10 Account - 03.102.4500
Dr. Receivables $1,000 Account - 02.000.1200 Dr. Receivables $50 Account - 02.000.1200 Dr. Receivables $20 Account - 02.000.1200 Dr. Receivables $500 Account - 03.000.1200 Dr. Receivables $25 Account - 03.000.1200 Dr. Receivables $10 Account - 03.000.1200
Cr. Receivables $1,605 Account - 01.000.1200
Overview
7-4 Oracle Public Sector Advanced Features User’s Guide
Direct Credit Memo at Header Level (Line, Tax, and Freight)
The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 100% of the line amount, 100% of the tax amount, and 100% of the freight amount.
Standard Receivables With multi-fund accounts receivable disabled, the accounting is as follows:
Multi-Fund Accounts Receivable With multi-fund accounts receivable enabled, the accounting is as follows:
Dr. Revenue $1,000 Account - 02.101.3000 Dr. Tax $50 Account - 02.000.2500 Dr. Freight $20 Account - 02.101.4500 Dr. Revenue $500 Account - 03.102.3000 Dr. Tax $25 Account - 03.000.2500 Dr. Freight $10 Account - 03.102.4500
Cr. Receivable $1,605 Account - 01.000.1200
Dr. Receivable $1,605 Account - 01.000.1200
Cr. Receivable $1,000 Account - 02.000.1200
Cr. Receivable $50 Account - 02.000.1200
Cr. Receivable $20 Account - 02.000.1200
Cr. Receivable $500 Account - 03.000.1200
Cr. Receivable $25 Account - 03.000.1200
Cr. Receivable $10 Account - 03.000.1200
Overview
Credit Memos with Multi-Fund Accounts Receivable Procedures 7-5
Direct Credit Memo at Header Level (Line Only)
The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 20% of the line amount.
Standard Receivables With multi-fund accounts receivable disabled, the accounting is as follows:
Multi-Fund Accounts Receivable With multi-fund accounts receivable enabled, the accounting is as follows:
Direct Credit Memo at Line Level
The following example shows the accounting for a direct credit memo at the line level. The credit memo is applied to a specific invoice line.
Standard Receivables With multi-fund accounts receivable disabled, the accounting is as follows:
Dr. Revenue $200 Account - 02.101.3000 Dr. Revenue $100 Account - 03.101.3000
Cr. Receivables $300 Account - 01.000.1200
Dr. Receivables $300 Account - 01.000.1200
Cr. Receivables $200 Account - 02.000.1200
Cr. Receivables $100 Account - 03.000.1200
Dr. Revenue $1,000 Account - 02.101.3000 Dr. Tax $50 Account - 02.000.2500 Dr. Freight $20 Account - 02.101.4500
Cr. Receivables $1,070 Account - 01.000.1200
Overview
7-6 Oracle Public Sector Advanced Features User’s Guide
Multi-Fund Accounts Receivable With multi-fund accounts receivable enabled, the accounting is as follows:
On-Account Credit Memo
The following example shows the accounting for an on-account credit memo. By default, multi-fund accounts receivable reallocates the credit memo across all invoice lines.
Standard Receivables With multi-fund accounts receivable disabled, the accounting is as follows:
Multi-Fund Accounts Receivable With multi-fund accounts receivable enabled, the accounting is as follows:
Dr. Receivables $1,070 Account - 01.000.1200
Cr. Receivables $1,000 Account - 02.000.1200
Cr. Receivables $50 Account - 02.000.1200
Cr. Receivables $20 Account - 02.000.1200
Dr. Revenue $1,000 Account - 04.101.3000
Cr. Receivables $1,000 Account - 01.000.1200
Dr. Receivables $1,000 Account - 01.000.1200
Cr. Receivables $623.05 Account - 02.000.1200
Cr. Receivables $31.15 Account - 02.000.1200
Cr. Receivables $12.46 Account - 02.000.1200
Cr. Receivables $311.53 Account - 03.000.1200
Cr. Receivables $15.58 Account - 03.000.1200
Cr. Receivables $6.23 Account - 03.000.1200
Prerequisites
Credit Memos with Multi-Fund Accounts Receivable Procedures 7-7
Prerequisites
❏ The AR: Use Invoice Accounting For Credit Memos profile option must be set to Yes so that credit memos always follow the accounting for invoices.
To set the AR: Use Invoice Accounting For Credit Memos profile option, see Oracle Public Sector Advanced Features Setup Overview, page 3-1.
❏ To distinguish between direct credit memos and on-account credit memos, it is recommended that users create separate transaction types for direct credit memos and on-account credit memos.
To create transaction types, seeOracle Public Sector Advanced Features Setup Overview, page 3-1.