OM to AR Dependent Setups in EBS R12 Part 3

Customer creation:

Create customers and customer site uses to enter transactions and receipts in Receivables.

Follow any of below navigations to create a new customer

Receivables --> Customers --> Standard (Or)

Order Management🡪 customers 🡪 standard (or) Accounts Receivables Once Customer created we are ready to go with Sales order generation Now we are all set to go, Open the sales order

Order Management 🡪 Orders, Returns 🡪 Sales Order

The below screen will appear, from which you can book, release and ship confirm sales order.

Define Accounts Receivables responsibility and assign this to user, upon that provide below profile options

• GL%Ledger%
• HR%User%, HR%Sec%, HR%Bus%
• MO%Oper%Unit%, MO% Default, MO%Sec%

System Options:

Receivables🡪 Setup 🡪 System 🡪 System Options

Select the respective Operating Unit Based on that Associated Ledger should populated

Define accounting, discount, tax, and invoice system options to control how Receivables works. System options defines our 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.

Remit to address:

Setup --> Print --> Remit-to-addresses

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.

Payment terms:

Receivables --> Setup --> Transactions --> Payment terms

Payment terms to the payment schedule and discount information for customer invoices.

Define Transaction Type:

Receivables --> Setup --> Transaction --> Transaction Types.

Define transaction types that you assign to all invoices, debit memos, commitments, chargebacks, credit memos, on–account credits, and bills receivable. Receivables uses transaction types to default payment term, account, tax, freight and other information.

Define Transaction Source:

Receivables --> Setup --> Transaction --> Sources.

Transaction sources we assign to invoices, debit memos, commitments, credit memos, on–account credits, and bills receivable. transaction sources to control our transaction and transaction batch numbering, provide default transaction types for transactions in batch, and to select validation options for imported transactions.

Source are two types:

1. Manual: Allow Transactions Manually from Receipts Work bench
2. Import: Import from Different Sources like OM, PA other third party System

Define Auto Accounting:

Define Auto Accounting to specify how you want Receivables to determine the default general ledger accounts for transactions that you enter manually or import using Auto Invoice. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, late charges, bills receivables accounts, and Auto Invoice clearing (suspense) accounts using this information

Navigation: Setup>Transaction>Auto Accounting

Types available

• Factored Bills Receivable
• Bills Receivable
• Remitted Bills Receivable
• Unpaid Bills Receivable
• Freight
• Receivable
• Revenue
• AutoInvoice Clearing
• Tax
• Unbilled Receivable
• Unearned Revenue
  

Define Approval Limit

Use the Approval Limits window to define approval limits for Adjustments, Receipt Written off, Credit memo refund and Credit memo

N: Setup>Transaction>Approval Limit

Define Receivables Activities

Define receivables activities to default accounting information for certain activities, such as miscellaneous cash, discounts, late charges, adjustments, and receipt write-off applications.

N: Setup>Receipts>Receivables Activities

Define required Receivables activities like Receipt Write off, Adjustment, Earned and unearned Discount.

Define Auto Cash Rule set - Optional configuration

Define Auto Cash Rule Sets to determine the sequence of Auto Cash Rules that Post Quick Cash uses to update your customer's account balances. You specify the sequence and the Auto Cash Rules for each Auto Cash Rule Set. The Auto Cash Rule Sets you define display as list of values choices in the Customers, Customer Addresses, Customer Profile Classes, and the System Options windows. Post Quick Cash first checks the customer site, then the customer profile class, and finally at the system options level to determine the Auto Cash Rule Set to use

Setup>Receipts>Auto Cash Rule Set

Define Receipt Classes:

Define receipt classes to determine the required processing steps for receipts to which you assign receipt methods with this class. These steps include confirmation, remittance, and reconciliation. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared.

Setup>Receipt>Receipt Classes

Define this for each operating unit. Only header window is not OU based but bank accounts window is OU specific

Click on Bank Accounts

Provide Defined bank details, GL accounts, Earned and Unearned discount receivable Activities as mentioned in above Snapshot.

Define Receipt Sources:

Define receipt batch sources to provide default values for the receipt class, receipt method, and remittance bank account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering

Setup>Receipt>Receipt Sources

Define this for each operating unit. This is for grouping of receipt class, payment method and bank account.

Define Collector

Receivables let you define collectors and assign them to a profile class, or directly to a customer account or site. When you assign a collector to a profile class, that collector becomes the collector for all customers assigned that profile class. You can modify collector assignments for your customers in the Customers pages, and for your profile classes in the Customer Profile Classes window.

Setup>Collections>Collector

Define Profile Class

Use Customer Profiles to group customer accounts with similar creditworthiness, business volume, payment cycles, and late charge policies. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your late charges and statements for each currency in which you do business

Customers>Profile Classes

This is important for consolidated billing, late charges, profile class-based strategy in collections and very important configuration for business in real time

Naveen Ravella

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