Oracle Applications

Journal Entries using Sub Ledger Accounting

2012-01-08T04:11:00.001-08:00

This article has been written because of one interesting consulting question faced.
Find the question, which has been answered within this article. Question raised by one of the top 5 consulting company.

Key points of creation of journal entry through SLA:
There is a new functionality to enter subledger journals through SLA: Create Journal Entry page.
Add the function SLA: Create Subledger Journal Entry, if not available in relevant module. All the modules by default will have this function unless specifically restricted.
Very important point is manual subledger journal entry is not associated with transaction of any subledger application. Meaning we can’t transfer the entries to both Subledgers and GL without customization. This is true whether we use FAH or DRM (Data Relationship Management, which is part of Hyperion) applications.
If required to use Manual SLA Journals functionality to represent accounting treatment in legacy systems, one can use API which allows importing legacy transactions into SLA, change the accounting treatment as per Oracle EBS logic or combination and then transfer to GL.
SLA is a rule based accounting engine not a module, which sits in between Subledgers and GL. The entry that appears in SLA can be controlled or design using SLA rules. Therefore it is known as Rule based accounting engine.
Don’t use SLA: Debug% profile option, which is obsolete. Instead use profile options FND: Debug% for SLA to debug.
To transfer the subledger journal entries to GL from subledgers run the following programs

Create Accounting
Run Transfer Journal Entries to GL – conditionally required.

We can use this functionality particularly during month end reconciliation where data transferred from subledger to GL got corrupted.
Very important this is the functionality of FAH where we will use API XLA_JOURNAL_ENTRIES_PUB_PKG to load the data into this create journal entry page (see the screen shot below). We don’t need license of FAH to use this package, however.
This is another way of loading the journal entries apart from GL_INTERFACE, Web ADI or manually entering the journals.
This is particularly useful to stream line the accounting string between Oracle EBS and Legacy or third party systems, which is the basic of FAH.
How it works:
Go to Payable Module (any module can be used)

Subledger journal entry

Click Create Journal Entry
Enter Debit

Enter credit

Click continue

Select Final and Post and click finish button

Result

System should fire journal import

Go and check in payables whether any invoice (transaction) created

Go to GL and check the result

Note the Category, which is other.
Review the journal

Click Line Drill down button

Click view transaction

Read the error message, which confirms that no transaction has been created in subledger.

Inventory Costing in R12 and End to End Accounting - Inventory Expense Item

2011-12-19T13:27:00.001-08:00

Types of Items

1. Expense Items – Stationery (in this example Paper has been used as a stockable item but it differs from client to client based on business nature)

2. Inventory Expense Items – Stockable Items depends on the company

3. Inventory Asset Items – To capitalize the item

Let us see the Inventory Expense Items

Inventory Expense Item should be configured/migrated with the following check boxes

Inventory Expense Item

Inventory TAB	Inventory Item	Stockable	Transactable

Enable the check box	Y	Y	Y

Purchasing TAB	Purchased	Purchasable

Enable the check box	Y	Y

Create an Item

Cost Group, Cost Types etc can be created in Inventory itself.

Create and Approve PO

Receive the goods

If it is 2 way matching, we don’t need to do ‘Receiving Transactions’. If receipt routing ‘Direct Delivery’, we don’t need to do ‘Receiving Transactions’.

In the above example it is ‘Direct Delivery’.

Check the Receiving Transaction Summary

Keep the cursor as below

Entry at this time will be

Line	Accounting Class	Account	Debit	Credit

1	Accrual	01-000-2410-000	200
2	Receiving Inspection	01-000-1400-000		200

Run the costing process for inventory valuation

Run the Cost Manager from Inventory – Setup>Transaction>Interface Manager or

Cost Management>Setup>Interface Manager

Launch the cost manager

Run the ‘Create Accounting’ from Cost Management

Entry will be created at this time

Line	Accounting Class	Account	Debit	Credit

1	Inventory Valuation	01-000-1410-000	200
2	Receiving Inspection	01-000-1400-000		200

You can view the same entries in GL as well.

Other Entries

At the time of Creation of AP Invoice by matching against the PO

Line	Accounting Class	Account	Debit	Credit

1	Accrual	01-000-2410-000	200
2	Liability	01-000-2210-000		200

At the time of making payment in AP (if cash management is not implemented)

Line	Accounting Class	Account	Debit	Credit

1	Liability	01-000-2210-000	200
2	Cash	01-000-1210-000		200

At the time of making payment in AP (if cash management is being implemented)

Line	Accounting Class	Account	Debit	Credit

1	Liability	01-000-2210-000	200
2	Cash Clearing	01-000-1220-000		200

After Bank Statement is being reconciled in Cash Management

Line	Accounting Class	Account	Debit	Credit

1	Liability	01-000-2210-000	200
2	Cash	01-000-1210-000		200

End to End Configuration of AR in R12

2011-11-21T13:10:00.001-08:00

End to End Configuration of AR in R12

There are few key steps that are to be configured outside of AR

1. Define Ledger with LE

2. Define Operating Unit and link to Ledger and LE

3. Define atleast one Inventory Item Organization

4. Define Item Validation Organization in Order Management – We can share this menu, if we don’t implement OM

5. Define Tax in EB Tax.

6. Define banks, branches and accounts – Possible to configure through AR, if security is enabled through UMX security wizard

7. Define or Assign key profile option values to AR responsibilities

Define all the following setup using Receivables Manager responsibility:

Define System Option

Define system options to customize your Receivables environment. During Receivables setup, you specify your accounts, customer and invoice parameters, and how the Auto Invoice and Automatic Receipts programs will run.

Setup>System>System Option

Define system option for each Operating Unit.

Define Payment Terms

Receivables lets you define standard payment terms for your customers to specify the due date and discount date for their open items. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. For example, the payment term '2% 10, Net 30' indicates that a customer is allowed a two percent discount if payment is received within 10 days; after 10 days, the entire balance is due within 30 days of the transaction date with no applicable discount.

Setup>Transaction>Payment Term

Define Transaction Type

Use transaction types to define the accounting for the debit memos, credit memos, on-account credits, chargebacks, commitments, invoices, and bills receivable you create in Receivables. Transaction types also determine whether your transaction entries update your customers' balances and whether Receivables posts these transactions to your general ledger.

Setup>Transaction>Transaction Type

Define this for each operating unit. Define transaction type for atleast Invoice, Deposit, Credit Memo and Debit Memo transaction classes.

Define Transaction Source

Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows, and for bills receivable in the Bills Receivable and Bills Receivable Transaction Batches windows.

Setup>Transaction>Source

Define this for each operating unit. Select Type as ‘Imported’, if invoice is to be imported into AR from third party/legacy/external systems.

Define Memo Lines

Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for example, 'Consulting Services'). You can assign memo lines to debit memos, on-account credits, debit memo reversals, chargebacks, commitments, and invoices. Receivables display your standard memo lines as list of values choices during credit memo entry in the Credit Transactions window and during invoice entry in the Lines window. When you create chargebacks and debit memo reversals, you can either use the standard line that Receivables provides or enter your own. You can create an unlimited number of standard memo lines.

Setup>Transaction>Memo Lines

Define this for each operating unit. This is particularly important, if we implement AGIS.

Define Accounting Rules

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. You can use accounting rules with transactions that you import into Receivables using Auto Invoice and with invoices that you create manually in the Transaction windows. You can define an unlimited number of accounting rules.

This is generally applicable to project based invoices, property invoices etc.

Setup>Transaction>Accounting Rules

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.

Setup>Transaction>Auto Accounting

Define this for each operating Unit. Define this atleast for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, bills receivables accounts, and Auto Invoice clearing.

Tax code will default from EB Tax, which can be updated/modified here in this auto accounting window.

Define Approval Limit

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

Setup>Transaction>Approval Limit

Define this for each user.

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.

Setup>Receipts>Receivables Activities

Define this for each operating unit. This can be configured only after EB Tax configuration.

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 Application Rule Set – We can use seeded configuration

Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction's line, tax, freight, and late charges.

Setup>Receipt>Application 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 are OU specific.

This requires some experience to use this configuration. Basic configuration is simple but it is key configuration to handle various receipts like Credit Card integration, Auto lock box, Bill of Exchange, and Factoring. This requires very good practice and knowledge on Function Capturing Process as well.

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

Employee needs to be configured and Collector setup is to be done in CRM.

Define Aging bucket

Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days current, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period.

Setup>Collection>Aging Buckets and Interest Tiers

Define Statement Cycles

Define statement cycles to determine when to send statements to your customers. You enter statement cycles when you define or modify individual customer and site profile classes in the Customer Profile Classes window.

Setup>Print>Statement Cycles

Define this for each operating unit. Customer statement will use this cycle.

Define standard message – Optional

Define standard messages to provide the text that Receivables prints on the bottom of your customer's statements, debit memos, and interest invoices. You can use messages to inform your customers of special promotions or to make your printed documents more personal.

Setup>Print>Standard message

This message can be used in Customer Statement.

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.

Define Customers – Initially customers will be migrated from external/legacy/older version of Oracle EBS.

Define Remit to address

Setup>Print>Remit to address

Open or Close AR accounting period

Open and close accounting periods in your calendar to control the recording of accounting information for these periods. Receivables lets you open future accounting periods while your current period is still open. Receivables also lets you reopen previously closed accounting periods and enter receivables activities without transferring transactions to the general ledger when you set your accounting periods to 'Future.'

Control>Accounting>Open or Close periods

**** This is ledger based. Open / Close the period in one OU will Open / Close the period in another OU as long as bot the OU shares the same Ledger.

Credit or Return Sales Order, Pick and Deliver Advance Replacement

2011-11-20T12:12:00.001-08:00

Sales Order Pick and Deliver Flow Chart

2011-11-20T11:52:00.001-08:00

How to Create Tax Only Invoice in AP

2011-11-20T06:25:00.000-08:00

Configure EB Tax. There is no specific tax configuration required in EB Tax.

Go to Payables responsibility and create simple invoice

Select ‘Tax’ in Type field at line level

Important *** Select default distribution account. This is what important for Tax only invoice.

Select tax details in Tax fields.

Validate the invoice and ensure that invoice is getting validated.

Defining MOAC (Multi Org Access Control) in R12 Published by Oracle Corp

2011-11-19T14:14:00.000-08:00

Defining MOAC (Multi Org Access Control) in R12 Published by Oracle Corp

Author: Raghuraman, Chartered Accountant, Cost Accountant and MBA
Freelancer
United Kingdom

Skill Level Rating for this Case Study: Intermediate

Click the link '

Defining MOAC (Multi Org Access Control) in R12 Published by Oracle Corp

to view material

Workaround If Internet Expenses check box not enabled in Tax Rate Page

2011-11-18T14:28:00.000-08:00

Configure as below to charge VAT on internet expenses

To populate the value in Tax code field in expense report template window, enable the check box ‘Internet Expenses Enabled’ in Tax Rate page

If one has missed to enable the check box, tax rate will not appear in expense report template.

We have two workaround:

1. Delete the rate and recreate with the check box enabled. However, if we have used already in other modules, it may lead to corruption issue.

2. Best option is to configure as below so that VAT will work with internet expenses and also no issue we will face in any other modules

Query the above lookup code and click update Icon. Configure the tax rate here.

This is easy workaround, if anyone is missed to enable the ‘Internet Expenses Enabled’ check box in Tax Rate page.

How to Configure Withholding tax – End to End

2011-11-12T13:44:00.001-08:00

Define Withholding Tax Calendar

Go to Special Calendar in Payables

Navigation

Define Special Calendar for Withholding Tax

Ensure that the Profile option has this calendar value

Define Withholding Tax Code

Navigation

Define code as below

Define Withholding Tax Group

Navigation

Define Group and link to tax code

Configure Payables Options

Define Supplier

Ensure that the supplier has been defined as Company

Ensure that Supplier has been defined with Pay site

Enable Withholding tax for supplier header

Enable Withholding tax for supplier site

Save the records.

Create invoice against SS supplier and check the result

How to Configure DFF for OIE

2011-11-12T12:04:00.001-08:00

How to Configure DFF for OIE

Create Expense Report Template

Go to Internet Expense and check the page

There is no DFF enabled.

Go to DFF segments

Query Expense Report Line in title field

Configure DFF

Create in the same way as Expense Item has been defined. Create with segments.

Compile the DFF

Go to Internet Expenses and check the result

We may all know how to create DFF but there is a slight difference in internet expenses.

We need to create DFF with the same name how it has been configured in Expense Item template.

How to add dispute in Aging bucket report

2011-11-12T11:34:00.001-08:00

How to add dispute in Aging bucket report

Check the 7 Aging bucket

Run the ‘7 Buckets - By Salesperson/Agent’ Standard Report

View the output

Now configure dispute in Aging as below

Run the same report

View the output and see the difference

We can find the dispute in the aging bucket.

How to View or Mask the Supplier Bank Account number

2011-11-09T14:18:00.001-08:00

This was controlled by profile options in 11i but from R12 it is controlled by Payment Administrator.

Go to Supplier window and check their bank account (Supplier Bank Account)

First 4 digits have been masked

Client needs to see all the 8 digits, which includes first 4 digits that have been masked

Note: Requirement may be vice versa as well. All the 8 digits are available to view but client may need to mask first 4 digits.

How to achieve this?

Go to Payment Administrator

Click System security options

Make changes from 4 to 8 in Number of digits to Display field

Apply.

This will run a program to decrypt all of the encrypted data. Do you wish to continue?

Say Yes.

Go back to Supplier window and check the results. We should be in a position to see all the 8 digits of the bank account number.

How to do reconciliation at batch level in Cash Management

2011-11-09T12:17:00.001-08:00

Go to Cash Management Module

Call your bank statement (Bofa-458)

Click review

Click lines

Click Available button

Select batch

We can query by organization or batch number etc

Click Find

No records have been retrieved.

How to resolve this or how to reconcile by batch?

Go to Payment Administrator

Click Payment Process Profiles (PPP)

Create or select your PPP

Note: We can select BACS/CHAPS/WIRE/CHECK etc

Click update and go to payment instruction creation

Ensure that the check boxes First Party Organization, Internal Bank Account and Payment Currency are enabled

Go and call the Bank account that you are going to use while making payment

Select the account and click update account TAB

Ensure that Payables Match Order has got ‘Batch’ in order 1 or order 2.

Go to Payment manager

Submit single payment request

Go to Payment Attributes TAB

Ensure that your bank account and PPP are selected correctly. Complete the payment.

Go back to CE and try to reconcile the bank statement for Bofa-458, which will have batch for reconciliation now.

Note: I have not covered or try to cover the configuration of Payment Administrator or Bank account in this article.

How to create dispute at invoice level and line level

2009-06-07T22:19:00.001-07:00

How to create dispute at invoice level and line level

What is dispute – This may be related to several reasons but we should know what we are disputing as soon as possible, whether that may be faulty goods or incorrect pricing etc in order that the company may respond. Usually company delivers goods or services to one or more customers and raise invoices. Customer may dispute the invoice raised by the company for any good or unreasonable reason and this dispute may be due to wrong calculation, duplicate items, wrong rates, damaged product, services provided not up to the standard or not in line with agreement etc. We have to capture these disputes and escalate to our managers or approvers to deal the dispute according to company policy. All these details can be recorded and processed in Oracle.

How to create dispute against a customer invoice?

This article will cover this. Let us create an invoice dispute

Go and select the customer

How to go to this window – Collections Agent>Collections>Find button or query the customer in Organization field or Query at account level

Select the customer account

Enable the check box ‘Include current’ and click display

Select the invoice to be disputed

Click Transaction Details button and enter the dispute reason

Enter dispute section – Select Tax (Assume that tax has been wrongly calculated)

Enter the dispute percentage

Click Dispute button

Go and check the dispute amount created just by refreshing the page.

How to refresh - Go to collection window> Action>Refresh

Is it possible to create dispute at line level?

Yes. Select the invoice>Click transaction detail button>Select the dispute reason>Select the specific invoice line in dispute section

Enter the invoice dispute amount against the particular line

Don’t enter both quantity and amount.

Click dispute

Click send to send email copy of dispute

Dispute has been created

Check the results

Similarly try to create adjustments through adjustment processing button.

Capture Customer invoice dispute and remove the invoice manually in R12

2009-05-09T13:50:00.001-07:00

Usually company delivers goods or services to one or more customers and raise invoices. Customer may dispute the invoice raised by the company for any good or unreasonable reason and this dispute may be due to wrong calculation, duplicate items, wrong rates, damaged product, services provided not up to the standard or not in line with agreement etc. We have to capture these disputes and escalate to our managers or approvers to deal the dispute according to company policy. All these details can be recorded and processed in Oracle.

Oracle Collections provides this facility to record the dispute against an invoice or group of invoices for any customer and escalate to approvers to approve / reject the dispute. From 12.0.7 this can be cancelled even.

How it works in Oracle collection? Collector / Agent will enter dispute against an invoice and capture the details. This dispute process will go to next person based on the approval workflow for approval. Once dispute is approved or rejected system will remove the dispute automatically. If dispute is approved, system will remove the dispute and create credit memo automatically in Oracle Receivables. This is the standard functionality.

We need to dispute the customer invoice using the standard functionality of collections but to create credit memo manually. There is a work around, if we need to dispute the transaction and not want the system to use credit memo workflow to create credit memo automatically.

To achieve this first create dispute against a transaction, record dispute details, check the results, query the customer invoice and remove the dispute manually. Now we are free to create credit memo manually based on the decision. If we agree the dispute, create credit memo. No need to create credit memo, if we don’t agree the dispute.

Say No at site level for AR: Use Oracle Approvals Management in Credit Memo Workflow profile option.

How to make manual Refund to Customers in R12

2009-05-01T17:37:00.001-07:00

We need to account the money that is paid back (refund) to customer in apps. In 11i we are forced to create customer as a supplier, pass credit memo, prepare invoice manually in AP and issue payment in AP. There is a new functionality to pay back money to customer in R12.

Example for Refund: Amount paid back because of an over collection or the return of goods sold called refund. or The reimbursement of the purchase price of a good or service, for reasons such as defective goods or dissatisfaction with the service provided to customer.

How to make manual refund to customer?

Create Refund activity

Query your Receipt and Customer

Refund the money to customer, which was parked in unapplied account

Apply to refund activity. If applied against the transaction, unapply first and apply against refund activity.

Click refund attributes and provide the details

Save the record

Sooner we save the record successfully we can see Refund Status button

Click refund status. Refund status is not applicable for credit card refund.

We can see the AP invoice created by the system automatically for the trading partner.

Create receipt accounting in Receivables.

View Journal Entry

Debit – Cash

Credit – Payables Clearing (Reader can use any clearing account to set off against payables debit)

Go to Payables > System has created payable invoice in AP automatically for Trading Partner

Approve the invoice

Create invoice accounting in Oracle Payables.

View journal entry

Debit – Payables clearing (What has been credited in AR)

Credit – Liability

Make payment

Create Payment Accounting

View Accounting

Net Entry

Receivables

Debit Cash – 1110

Credit Payables Clearing – 2220

Payables

Invoice

Debit Payables Clearing – 2220

Credit Liability – 2210

Payment

Debit Liability – 2210

Credit Cash – 1110

Net Effect will be zero at GL level.

SLA and FAH Flow

2009-04-21T14:41:00.001-07:00

Configuration of FAH Event Model

Configuration of Event Entity Identifier

Business Flow Predecessor

Create a budget from Tender or Bid in R12

2009-04-14T07:52:00.001-07:00

Background

A new contract has been awarded to implement Oracle EBS Financials. Project type contract has been created, project template has been prepared with appropriate customers, resources assigned to access the projects, project details with tasks created and reporting requirements established.

Reader should know how to create project types, project template and project.

A budget is estimated revenue for a project or task and is used as a tool to track actual project performance.

When a project is copied from a template or another project, the budgets are automatically copied from the source project or template to the new project. Templates that have baseline budgets will copy to the new project as a baseline budget. Projects that have baseline budgets will not copy to the new project as a baseline budget.

Oracle Projects provides the flexibility to prepare budget at project level as well as at lowest task level. Budgets can be time-phased by Date range, PA Periods and GL Periods. Budgets can be at a summary level or for specific categories of revenue types.

Create Agreement

Link it for a particular project

Create budget for a particular project

Select your project for which budget has to be prepared

Provide the details for budget.

Here I have created budget for next four months starts from April 09

Submit the budget for approval

After successfully submitted base line the budget

The budget baseline is an estimate of the receipts that would result from the period covered by the budget.

Now we can review the funding budget

Go to funding inquiry and query the project

Click Find button

Review the results.

PA keeps a record of previous baselined budgets and they can be reviewed. Click funding history to review the history of base line budget

I have not provided navigations as it is easy to find out by using ‘CTRL plus L’ key and type first few words to get into any window.

PO and AP transactions integration to PA

2009-04-07T09:48:00.001-07:00

Response to a reader:

There is a problem in transactions transfer from PO and AP to PA

Configuration background: Accrue expense item in PO – Period End

Case study Number 1:

PO is created with Project information details and approved. Here goods have not been received against this PO and AP invoice has not been created.

Is it possible to transfer this PO amount to GL and PA?

GL - Nothing will be transferred from PO as goods have not been received.

PA – Nothing will be transferred from PO

Case Study Number 2:

PO is created with project information details and approved. Here goods have been received against this PO and AP invoice has not been created.

Is it possible to transfer this PO amount to GL and PA?

GL - It will be transferred from PO. To that extent we received the goods, will be transferred.

PA – It will be transferred from PO – Run PRC: Interface Supplier cost request with parameters Yes for invoice/receipt. To that extent we received the goods, will be transferred.

Case Study Number 3:

PO is created with project information details and approved. Here goods have not been received against this PO but AP invoice has been created.

Is it possible to transfer this PO amount and AP invoice to GL and PA?

PO to GL – Nothing will be transferred from PO to GL as goods have not been received.

AP to GL – Amount will be transferred from AP to GL on running Payables transfer to GL after we account all the AP invoices in AP module.

PO to PA – Nothing will be transferred as goods have not been received.

AP to PA – Amount will be transferred to PA – Run PRC: Interface Supplier cost request with parameters Yes for invoice/receipt.

Project invoice transferred from AP to PA is not appearing in PA

2009-04-07T09:25:00.001-07:00

Response to a reader:

Example: Invoice created in AP, selected Project details in appropriate field, validated, accounted and transferred to PA through PRC: Interface Supplier cost request. Everything went well but still not appeared in PA.

Please check the status of PA_ADDITION_FLAG in ap_invoice_distributions_all for the invoice_id. This should be ‘Y’ for invoice transferred to PA. In case this is ‘Y’ but still not appeared in PA, please update it to ‘N’ and rerun the process PRC:Interface supplier cost. Make sure that periods are open in the relevant modules.

How to create accounting rules and how it works for transactions in AR in R12

2009-04-06T10:12:00.001-07:00

Create (configure) accounting rules for fixed duration and/or variable duration

Setup>Transaction>Accounting rules

In this article transactions (both Arrear and Advance) have been created with invoice line 1200 and 5% reduced VAT has been applied on invoice amount.

Create transactions>while creating transaction select ‘In Arrear’ or ‘In Advance’ at the header level in invoice rule field (pop up)>select the rules at line window under rules tab.

Open the relevant periods in AR and GL

Create a transaction with advance rules

Enter line items for Advance Rules

Complete the transactions.

Create accounting

View Accounting

Now select Arrear invoice

Enter line items, complete the transactions, create accounting and view accounting

GL and Invoice date will be changed to 20^th July 2009

Accounting entries are:

Parties tax profile in E Biz Tax

2009-04-06T09:29:00.001-07:00

Few readers have asked me to address how to avoid party tax profile issues while configuring AR module.

What is party tax profile?

We need to configure tax profile of the parties involved in any transactions – it may be supplier / customer / legal entity / division or profit centre of a particular legal entity.

In case of supplier and customer tax profiles we need to maintain the tax registrations, classifications details etc are to be maintained based on their data and business nature. In case of Legal entity and Operating unit we need to configure these into our E Biz Tax. Legal entity configuration will be performed while we configure E Biz tax through regime. For Operating unit we need to configure operating unit based tax content.

Here are the steps

Go to your tax manager responsibility and get into parties tax profile page under parties TAB

Select Operating unit tax content from list in party type file

Enter your OU and click go

Click create tax profile

Click configuration options TAB

Configure as follows – Select your Tax Regime

Click apply

Now go back to AR module and check the results

This issue may arise while configuring receivable activities in AR. This will be solved by configuring the above tax profile.

Cash Forecasting in R12

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How to configure cash forecasting

When planning the short or long term funding requirements of a business, it is more important to forecast the likely cash requirements. It is a planning tool that helps to anticipate the flow of cash in and out of our business. Cash Flow forecasts help us to build a model of the way in which cash moves within an organization or project. This cash forecasting can be framed for few weeks or months based on the client’s requirement.

Define forecast templates with specifications and we can modify the template whenever we need or business forecast changes.

Let us create forecast template for 30 days

Go to Cash Management responsibility and click cash forecasting

Click forecast templates

Click create template

Name the template and select the forecast by days / GL period and select exclude or include for overdue transactions. In this article I have used days and exclude overdue transactions.

Click next

Add source type row for Supplier invoice / Supplier payments / Customer invoice/ Customer receipts. There are lot more to include, which are listed in the screen shot below

This article will have only 4 source types as mentioned above for learning purpose. Reader can add any source type as client needs. Whatever the source type we select should have future dated transactions to appear in forecast results.

Select supplier invoice and click go

We have various filters to limit the cash forecasting by OU / Ledger / Pay group / Supplier type etc

Similarly continue for rest of the three types and allocate row number 20 / 30 /40.

Click next and configure the column details as follows

Click finish.

Now run the cash forecasting configured and check the results

Query the template and click go

Click run forecast. This is the way we submit the request to process cash forecast.

After request completed successfully check the process status – sign should be

Check the results.

How to configure AGIS

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Please refer a note in Metalink - 418649.1 written by Oracle.

Configuration of Intercompany

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Configuration steps

Go to SOB window and enable the check box balance intercompany journal

System will warn us to configure intercompany accounting in IC accounts form.

Enable suspense account check box in SOB window

Save the records.

Configure atleast one category and source for IC

Configure atleast Source ‘Other’ and Category ‘Other’

Select many to many under company usage TAB, if client needs multiple credits and / or multiple debits

Select use balancing segment under default options TAB. If client needs SSD (share service division), configure IC with use default clearing company and select the SSD value from LOV.

Select all other from LOV – click TAB

Define IC receivables in due from field and IC payables from due to field

Create IC journals

Note the IC journals created by the system