Customer Invoicing

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Implement Customer Invoicing
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Required Setup Steps for Transactions

Required Setup Steps for Transactions Before you can use customer invoices, you must complete these setups: • Customers: Define customers, including Bill To and Ship To addresses, for transaction processing. Enable Balance Forward Billing at the customer profile class level, and at the account and site profile levels, to send one balance forward bill to a customer for a billing period. A balance forward bill includes all of a customer’s transactions (with balance forward billing payment terms) for the billing period and any balance carried forward from the previous billing period. You can generate balance forward bills consolidated at either the customer account or site level, depending on whether you selected account or site as the bill level in the customer profile class and account profile. • • • Receivables Transaction Types: Transaction types add default information to transactions. AutoAccounting: Specify the General Ledger accounts for transactions that you enter manually or import using AutoInvoice. Payment Terms: Determine the payment schedule and cash discount information for customer invoices, debit memos, and commitments. You need to define balance forward billing payment terms to use the balance forward billing feature.

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• • •

Transaction Sources: Transaction sources control transaction and batch numbering and provide default information. Remit-to addresses: Inform customers where to send payments. System and Profile Options: Provide default values for some Receivables operations, such as how Receivables processes data and controls the actions users can perform.

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Receivables Transaction Types

Receivables Transaction Types Receivables, Vision Operations (USA) (N) Setup > Transactions > Transaction Types Use transaction types to define the accounting for Receivables debit memos, credit memos, onaccount credits, chargebacks, commitments, invoices, and bills receivable. Transaction types can be used to default the legal entity to the transaction. Transaction types also determine whether your transaction entries update your customer balances and whether Receivables posts these transactions to general ledger. You must set up transaction types before you can enter invoices. Transaction types determine: • Transaction class: debit memo, credit memo, on-account credit, chargeback, commitment, invoice, bills receivable. • Natural application setting. • If the transaction can be posted to General Ledger (GL). • If the transaction is an open receivable, that is, updates customer balances for debit memos, credit memos, chargebacks, and on-account credits. • If the transaction excludes late charges. • If freight can be entered.

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• • • •

If a tax classification code defaults to the transaction line. Default credit memo type for an invoice. Default invoice type for a commitment. Creation sign.

Legal Entity Defaulting If you are using a shared accounting environment, you can optionally assign a legal entity to a transaction type to default to the transaction. Receivables looks first to the transaction type for a legal entity to default to the transaction. If a legal entity has not been assigned to the transaction type, then Receivables looks to the transaction batch source for the legal entity. If Receivables cannot find a default legal entity, then the user must enter the legal entity on the transaction line. The legal entities available for selection on the transaction type, transaction batch source, and transaction line are the legal entities assigned to the ledger that is assigned to the active operating unit. If you are using an exclusive accounting environment, with one legal entity only assigned to the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the legal entity to all transactions. Excluding Late Charge Calculation Select the Exclude from Late Charges Calculation checkbox either to exclude specific invoice types or to exclude your Interest Invoices if you do not want interest charged against them. Tax Classification Code Defaulting You can optionally enable the “Default tax classification” option on the transaction type to default a tax classification code to the transaction line. The defaulting and usage of tax classification codes is controlled by Oracle E-Business Tax. The tax classification code represents the tax code migrated from Release 11i tax content. You use tax classification codes as determining factors in tax calculation only when you choose to use the Release 11i tax model in E-Business Tax. Note: • For guarantees and deposits, the creation sign must be Positive. • You can update the Operating Unit field (and the legal entity associated with the operating unit) with any operating unit assigned to your responsibility.

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AutoAccounting

AutoAccounting Receivables, Vision Operations (USA) (N) Setup > Transactions > AutoAccounting AutoAccounting is a powerful and flexible tool that automatically creates General Ledger accounting flexfields for Receivables transactions. When AutoAccounting is run, Receivables assigns valid accounting flexfields to invoices and credit memos and automatically generates valid accounting flexfields for Freight, Receivable, Revenue, AutoInvoice Clearing, Tax, Unbilled Receivable, and Unearned Revenue accounts. Note that the default accounting that AutoAccounting creates is considered interim accounting only. Oracle Subledger Accounting accepts the default accounts that AutoAccounting derives without change. If necessary, however, you can modify the accounting rules in Subledger Accounting to create accounting that meets your business requirements. AutoAccounting determines the General Ledger (GL) accounts for invoices by deriving a value for each segment of the accounting flexfield: • When setting up AutoAccounting, rules define how Receivables should derive the value for each segment. This can either be a constant value or a table. • For each account type, define the flexfield segments by selecting a table name or entering a constant value. The tables that can be used for segment values are Transaction Types,

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Salesperson, Customer - Bill To, Standard Line, Freight (for Freight Account only), and Tax Rate Code.

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Payment Terms

Payment Terms Receivables, Vision Operations (USA) (N) Setup > Transactions > Payment Terms Define standard payment terms to determine payment schedules and percentages of discounts allowed. • The formula used to determine the amount due is: - Amount Due = Relative Amount/Base Amount x Invoice Amount. - For example: Relative Amount = 60%/Base Amount = 100% would be 60% of Invoice amount. • Select the Credit Check check box to trigger Order Management credit check. • Enter the number of days before the due date that the invoice should be printed. • Allow discounts on partial payments by selecting the Allow Discount on Partial Payments checkbox. • Specify how to allocate tax and freight on invoices with split terms: in the first installment, or prorated across all installments.

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Defining Balance Forward Billing Payment Terms If you want to use a payment term for balance forward billing to send a single bill, consolidated at either the customer account or site level, select a balance forward billing cycle from the Billing Cycle list of values. Because balance forward bills cannot be split across installments, in the case of a balance forward payment term: • Any value entered in Base Amount defaults to 100. • Installment Options is disabled, and any data entered before selecting a billing cycle defaults to include tax and freight in the first installment. • You can populate only one row in the Payment Schedule section; the Sequence Number and Relative Amount values for the row default respectively to 1 and 100. • Date Due is disabled. However, you can populate Days, Day of Month, and Months Ahead. Note: You cannot change an existing payment term back and forth for use as both a nonbalance forward billing and balance forward billing payment term.

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Transaction Sources

Transaction Sources Receivables, Vision Operations (USA) (N) Setup > Transactions > Sources • Transaction sources are used to control transaction batching and numbering, and to specify default transaction values. • Assign a default legal entity to the transaction. • Select validation options for imported transactions. • Assign batch sources to invoices, debit memos, commitments, credit memos, and onaccount credits. • Create a batch source for late charges, if applicable. • Set up for automated non-credit card refunds. • When setting up the Credit Memo Workflow, assign a Manual source. • Select the Copy Document Number to Transaction Number check box to use the same value for both the document number and the transaction number for transactions assigned to this source. You must check the box if using Gapless document sequences.

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Legal Entity Defaulting If you are using a shared accounting environment, you can optionally assign a legal entity to a transaction batch source to default to the transaction. Receivables looks first to the transaction type for a legal entity to default to the transaction. If a legal entity has not been assigned to the transaction type, then Receivables looks to the transaction batch source for the legal entity. If Receivables cannot find a default legal entity, then the user must enter the legal entity on the transaction line. The legal entities available for selection on the transaction type, transaction batch source, and transaction line are the legal entities assigned to the ledger that is assigned to the active operating unit. If you are using an exclusive accounting environment, with one legal entity only assigned to the ledger, then you do not need to set up legal entity defaulting. Receivables defaults the legal entity to all transactions. Batch Source for Late Charges If the late charge policy for any of your Operating Units is to create either Interest Invoices or Debit Memos, then create a separate batch source for late charges. Create a batch source for Interest Invoice or Debit Memo late charges with Type “Imported”. The batch source Type is Imported because the Interest Invoice and Debit Memo creation is done as a batch process that calls the Invoice API. You then assign this source in the System Options window. Automated Non-Credit Card Refunds You can set up Receivables to automate the refund process for non-credit card transactions. Receivables submits the refund request to Payables, and Payables in turn transacts refunds via Oracle Payments. To set up for automated refunds: 1. Create a Refund receivables activity. The Refund activity type applies exclusively to automated non-credit card refunds. Note: Use the Credit Card Refund activity type for credit card refunds. 2. Set the Receipt Handling for Credits field to Refund in the transaction source. You set this option to Refund for both credit card and non-credit card automated refunds. Note: For AutoInvoice feeds from the Service Contracts module, you must use the seeded Transaction Source of OKS_CONTRACTS.

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Remit-to Addresses

Remit-to Addresses Receivables, Vision Operations (USA) (N) Setup > Print > Remit-to Address A remit-to address is the address that is used to send payment for an invoice. You can set up remit-to information in the Remit To Addresses window to default to transactions (excluding credit memos). You can designate a remit-to address for one or more countries. This remit-to address is assigned to all invoices of customers with a bill-to address in the designated country or countries. You can also set up a default remit-to address. A default remit-to address defaults to the Remitto Address region when you enter transactions. In addition, AutoInvoice will not reject invoices because it is not able to determine a remit-to address. For United States remit-to addresses, you can only have one default remit-to address for each country and state combination. For example, you can have one default remit-to address for United States/California, one for United States/Nevada, and so on.

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System Options Relating to Transactions

System Options Relating to Transactions Receivables, Vision Operations (USA) (N) Setup > System > System Options > (T) Accounting (N) Setup > System > System Options > (T) Transactions and Customers • Header Level Rounding: Assign a special account for rounding differences when converting foreign currency transactions to your functional currency. The Header Level Rounding is enabled on the Accounting tab. Caution: This option cannot be disabled once the box has been selected. Header Level Rounding adds an additional line to every transaction regardless of the currency. • Automatic Journal Import: Automatically import the batches you transfer by checking this box on the Accounting tab. The value becomes the default value on the Run GL Journal Import field in the Run General Ledger Interface window. • Allow Change to Printed Transactions: Allow updates to printed transactions by checking this box on the Transactions and Customers tab. • Allow Transaction Deletion: Allow a transaction to be deleted from Receivables after it has been saved by checking this box on the Transactions and Customers tab. Caution: Do not enable this option if using gapless numbering of transactions. Note: There are system options relating to AutoInvoicing as well.

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Miscellaneous System Options

Miscellaneous System Options Receivables, Vision Operations (USA) (N) Setup > System > System Options > (T) Miscellaneous The Miscellaneous tabbed region of the System Options window contains several parameters that affect transactions. • Discount Basis: Use this option to calculate discounts on your invoices. The discount options are: - Invoice Amount - Lines Only - Lines, Freight Items and Tax - Lines and Tax, not Freight Items and Tax • Require Salesperson: Select this checkbox to require salespersons to be selected when entering transactions. • Print Remit to Address: Select this checkbox to print your remit-to address on your customer statements. • Print Home Country: Select this option to print your home country on your invoices and statements that refer to addresses in that country.

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Source of Territory: Enter the Source of Territory to default to the Salespersons, Transactions, and Customers UI. Receivables uses this value to determine the default territory for invoices and commitments. Selections are: Bill-To Site, Salesrep, Ship-To Site, and None.

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Implementation Considerations for Transactions

Implementation Considerations for Transactions • For AutoAccounting, when using a table as a source of a segment, make sure the General Ledger accounts are defined for the source. For example, if you select the Company segment to be derived from the transaction type for Revenue, the revenue account must be entered for all transaction types. For payment terms, decide on discounting, balance forward billing, split payment terms, and allocating tax and freight. Note: You cannot use line level cash application on invoices with split payment terms For transaction batch sources, select Value to import a record into AutoInvoice tables using its actual name (non-Oracle system); select ID to use its internal identifier (Oracle system). If you use an Oracle system, then ID is quicker because of the shorter character length. For example, it is quicker to read “2309” than “Business World.”





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Implementation Considerations for Remit-To Addresses

Implementation Considerations for Remit-To Addresses • Define lockbox addresses as remit-to addresses to let customers know where to send payment. • To catch any missing assignments, set up a remit-to address assigned to a default location. If you enter or import an invoice with an address that does not correspond to any of your assignments, it uses the default remit-to address.

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Standard Memo Lines

Standard Memo Lines Receivables, Vision Operations (USA) (N) Setup > Transactions > Memo Lines Memo lines can be used to define goods or services that are sold frequently, but have not been defined as inventory items, such as Annual Maintenance Contracts or Consulting Services. • Select one of the following standard line types: Charges, Freight, Line, or Tax. • You can enter a tax classification code and tax product category to associate with a standard memo line. These values are passed to E-Business Tax for tax calculation. • If the price is constant, you can enter a unit price which defaults when this memo line is used. Tax Classification Code and Tax Product Category Defaulting The defaulting and usage of tax classification codes is controlled by Oracle E-Business Tax. The tax classification code represents the tax code migrated from Release 11i tax content. You use tax classification codes as determining factors in tax calculation only when you choose to use the Release 11i tax model in E-Business Tax. The tax product category is used by E-Business Tax when the product category is a determining factor in tax calculation. Tax product categories are most relevant to VAT-based taxes, where the item must be identified correctly for tax rate determination.

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Define Transaction Types in Order

Define Transaction Types in Order Define transaction types in the order indicated in this slide, in order to properly associate one transaction type with another. For example, define a credit memo first and then an invoice. Enter the credit memo in the Credit Memo Type field when you create the Invoice transaction type. When you create a credit memo for the invoice, the credit memo transaction type is defaulted. You must define invoice transaction types before you define commitment transaction types. Commitment transaction types are deposits and guarantees. Suggestion: To be able to void a debit memo, credit memo, on-account credit or invoice, define a Void transaction type with “Open Receivables” and “Post to GL” set to No. Then, as long as there is no activity against the transaction and it has not posted to General Ledger, you can make it invalid by simply changing the transaction type to “Void.”

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