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Oracler Receivables

Doc UpdateRELEASE 11i

January 2002

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Oracler Receivables Doc Upd ate Release 11i

Copyright E 1988, 2002, Oracle Corporation . All rights reserved .

Primary Author : Charles Ahern, Stephen R. Damiani, Robert MacIsaac, Kristin Penaskovic

Major Contributor s: Craig Borchardt, William Hogan, Lee Konstantinou, Essan Ni

Contributors: Nilesh Acharya, Vikram Ah luwalia, Ramakant Alat, Chelvi Balasubram ian, Olga

Basman, Sharmila Bhavsar, Victoria Crisostomo, Ed Cheng, Ravi Dasani, Vish Bhupathiraju Editt,

Alan Fothergill, Sushama Borde, K.C. Buckley, Renee Connors, Dianna Ferguson, Editt GonenFried-

man , Manoj Gudivaka, Mirand a H o, Debbie Jancis, Govind Jayanth, Mar tin Johnson, Cha rityKocher, Yanya Kong, Peggy Larson, Joyce Leung, Scott Lucey, Kavi Nam da kum ar, Sai Rangarajan,

Saloni Shah, Oliver Steinm eier, Mien Lin Tan, Tasman Tang , Anne Truitt, Genn eva Wang, Kathy

Weitzel

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2 2 Oracle Receivables User Guide

Overview of Setting Up

Dur ing setup, you d efine business fun damen tals such as the activities

you p rocess and th eir accounting d istributions, your accoun ting

structure, and various control features. Setup is also the time to define

comprehensive defaults that Receivables uses to make data entry more

efficient and accura te. In addition, setup lets you customize Receivables

to employ the policies and p rocedures that you u se in your bu siness.

You can set up Receivables a nu mber of different w ays. The following

grap hic show s the most comp lete setup scenario. For a complete

description of each setup step , see: Setup Steps: page 2 10.

If you u se the Oracle Applications Multiple Organization Supp ort

feature to use multiple sets of books for one Receivables installation,

please refer to theMultiple Organizations in Oracle Applications manual

before p roceeding.

If you plan to use Oracle Cash Managemen t w ith Oracle Receivables,

additional setup steps are required. For more information, refer to the

Oracle Cash M anagement User Guide.

Note: If you plan to use Multiple Reporting Cu rrencies (MRC)with Receivables, add itional setup steps are required. For

more information, refer to theMultiple Reporting Currencies in

Oracle Applications manual.

Oracle Applications Implementation Wizard

If you are imp lementing more than on e Oracle App lications produ ct,

we recomm end that you use the Oracle Applications Implementation

Wizard to coordinate your setup activities. The Imp lementation Wizard

guides you throu gh the setup steps for the app lications you have

installed, su ggesting a logical sequence that satisfies crossprod uct

implementation d ependencies and redu ces redund ant setup steps.

You can u se the Implemen tation Wizard to see a graph ical overview of

setup steps, read on line help for a setup activity, and open the

app ropriate setup w indow. You can also docum ent your

implementation, for fur ther reference and review, by using th e Wizardto record comments for each step.

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2 3Setting Up

See Also

About th e Oracle App lications Implemen tation Wizard (Oracle

Applications Implementation Wizard User Guide)

Related Product Setup Steps

The following steps may need to be performed to implement Oracle

Receivables. These steps are d iscussed in detail in th e Setting Up

sections of other Oracle prod uct user gu ides.

Set Up Underlying Oracle Applications Technology

The Imp lementation Wizard gu ides you throu gh the entire Oracle

App lications setup , includ ing system ad ministration. However, if you

do not use the Wizard, you need to comp lete several other setup steps,

including:

performing systemwide setup tasks such as configuringconcurrent managers and printers

man aging da ta secur ity, which includ es setting up

responsibilities to allow access to a specific set of business d ata

and complete a sp ecific set of transactions, and assigning

individu al users to one or more of these responsibilities.

setting up Oracle Workflow

See Also

Oracle Applications Implementation Wizard User Guide

Oracle Applications System Administrators Guide

Oracle Workflow Guide

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General Ledger Setup Steps

Refer to th e Setting Up General Ledger section in the General Ledger

User Guide to complete the following setup steps. The following table

lists steps and a reference to their location w ithin the Ap plications

Implementation Wizard (AIW).

Step AIW Reference

Define Chart of Accounts CommonApplications

Define Currencies CommonApplications

Define Calendars CommonApplications

Define Calendar Periods CommonApplications

Define Calendar Period Types CommonApplications

Define Document Sequencing Common

FinancialDefine Sets of Books Common

Applications

Assign Set of Books to a Responsibility CommonApplications

Define Daily Conversion Rate Types CommonApplications

Define Multiple Reporting Currencies Sets of Books CommonApplications

Define Set of Books Specification CommonApplications

Define Accoun ting Flexfield an d Accoun tingFlexfield Combinations

CommonApplications

Table 2 1 (Page 1 of 1)

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2 5Setting Up

Oracle Inventory Setup Steps

Refer to the Setting Up Oracle Inven tory section in the Oracle Inventory

User Guide to complete the following setu p steps, as described in this

table.

Step AIW Reference

Define Inventory Organizations CommonApplications

Define Items CommonApplications

Define Item Catalog Common

ApplicationsDefine Item Category Common

Applications

Define Un its of Measure and Unit of MeasureClasses

CommonApplications


Oracle System Administration Setup Steps

Refer to the Oracle Applications System Administrators Guide to complete

the following setup steps, as described in this table.

Step AIW Reference

Define Audit Trails CommonApplications

Define Printers CommonApplications

Define Security (for examp le: user s, responsibilities,and concurrent programs)

CommonApplications


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Oracle Global Accounting Engine Setup

Refer to the setu p section in the Oracle Applications Global Accounting

Engine User Guide to complete the following setu p step , as described in

this table.

Step AIW Reference

Set Up Global Accounting Engine CommonApplications


Oracle Human Resources Management Systems Setup

Refer to the Using Oracle HRMS The Fundamentals to complete the

following setup step , as described in this table.

Step AIW Reference

Define Organizations (single or m ultiorg) CommonApplications


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2 7Setting Up

Setup Checklist

The following table lists Oracle Receivables setup step s. A reference to

each steps location w ithin the Ap plications Implementation Wizard

(AIW) and w hether the step is optional or required is provid ed. After

you log on to Oracle App lications, comp lete these steps to imp lement

Oracle Receivables:

Step Num Required StepAIW

Reference

Step 1 Required Define Sets of Books: page 2 10 CommonApplications

Step 2 Required Decide How to Use the Account Generator: page 2 11. CommonApplications

Step 3 Optional Define Transaction Flexfield Structure: page 2 11 OracleReceivables

Step 4 Optional Define Descriptive Flexfields (System Items andTerritory flexfields): page 2 12

CommonApplications

Step 5 Required Define Organizations: page 2 13 CommonApplications

Step 6 Required Define Sales Tax Location Flexfield Structure: page2 13

CommonApplications

Step 7 Optional Define AutoCash Rule Sets: page 2 14 OracleReceivables

Step 8 Optional Define Receivables Lookups: page 2 14 CommonFinancial

Step 9 Optional Define Demand Class Lookups: page 2 15 OracleReceivables

Step 10 Optional Define Invoice Line Ordering Rules: page 2 15 OracleReceivables

Step 11 Optional Define Grouping Rules: page 2 15 OracleReceivables

Step 12 Optional Define Application Rule Sets: page 2 15 OracleReceivables

Step 13 Required Define System Options: page 2 16 OracleReceivables

Step 14 Optional Define Flexible Address Formats: page 2 17 OracleReceivables


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AIWReferenceStepRequiredStep Nu m

Step 15 Optional Maintain Countries and Territories: page 2 17 CommonFinancial

Step 16 Required Define Payment Terms: page 2 17 CommonFinancial

Step 17 Optional Assign Reporting Set of Books: page 2 19 OracleGeneralLedger

Step 18 Optional Define Accounting Rules: page 2 19 OracleReceivables

Step 19 Required Open or Close Accounting Periods: page 2 19 OracleReceivables

Step 20 Required Define AutoAccounting: page 2 20 OracleReceivables

Step 21 Optional Set Up Cash Basis Accounting Method: page 2 20 OracleReceivables

Step 22 Required Define Transaction Types: page 2 20 Oracle

Receivables Step 23 Required Define Transaction Sources: page 2 21 Oracle

Receivables

Step 24 Required Define Collectors: page 2 21 OracleReceivables

Step 25 Required Define Approval Limits: page 2 21 OracleReceivables

Step 26 Required Define Remittance Banks: page 2 22 CommonFinancial

Step 27 Optional Distribution Sets: page 2 22 CommonFinancial

Step 28 Required Define Receivables Activities: page 2 22 OracleReceivables

Step 29 Optional Define Receipt Programs: page 2 22 OracleReceivables

Step 30 Required Define Receipt Classes: page 2 23 OracleReceivables

Step 31 Required Define Payment Methods: page 2 23 OracleReceivables


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2 9Setting Up


Step 32 Required Define Receipt Sources: page 2 23 OracleReceivables

Step 33 Optional Define Aging Buckets: page 2 24 OracleReceivables

Step 34 Optional Define Statement Cycles: page 2 24 OracleReceivables

Step 35 Optional Define Standard Messages: page 2 24 OracleReceivables

Step 36 Optional Define Dunning Letters: page 2 24 Oracle

Receivables Step 37 Optional Define Dunning Letter Sets: page 2 24 Oracle

Receivables

Step 38 Optional Define Territories: page 2 25 CommonFinancial

Step 39 Required Define Salespersons: page 2 25 OracleReceivables

Step 40 Required Define System Profile Options: page 2 25 OracleReceivables

Step 41 Required Define Customer Profile Classes: page 2 26 OracleReceivables

Step 42 Required Define Customers: page 2 26 OracleReceivables

Step 43 Optional Define RemitTo Ad dresses: page 2 26 Oracle

Receivables Step 44 Optional Define Customer Relationships: page 2 27 Oracle

Receivables

Step 45 Optional Define Lockboxes: page 2 27 OracleReceivables

Step 46 Optional Define Transmission Formats: page 2 27 OracleReceivables

Step 47 Optional Define Unit of Measure Classes: page 2 27 CommonApplications

Step 48 Optional Define Units of Measure: page 2 28 CommonApplications

Step 49 Optional Define Standard Memo Lines: page 2 28 OracleReceivables


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Step 1



Step 50 Optional Set Up Cross Currency Receipts: page 2 28 OracleReceivables

Step 51 Required Set Up Tax: page 2 29 OracleReceivables

Step 52 Optional Set Up Tax Vendor Extension: page 2 29 OracleReceivables

Step 53 Optional Set Up Document Sequences: page 2 30 CommonFinancial


Setup Steps

For each step, we includ e a Context section that ind icates wh ether you

need to repeat the step for each set of books, set of tasks, inventory

organization, HR organization, or other operating u nit und er Multiple

Organizations.

Define Set of Books (Required)

If you previously d efined your set of books in th e Setting Up Oracle

Applications Set of Books section while setting up a d ifferent Oracle

App lications prod uct, proceed to the next step.

You n eed to d efine at least one set of books before you can implemen t

and u se Receivables. You sp ecify which set of books you r Receivables

installation uses in the System Op tions wind ow.

When d efining a set of books, you also need to:

Assign your Set of Books to a Responsibility

Define your Accounting Flexfield

Define you r Accounting Flexfield Combinations (Optional)

Define your Calendar Period Types

Define your Calend ar Periods

Define you r Currencies

Define you r Daily Conversion Rate Types

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Step 2

Step 3

2 11Setting Up

Define you r Daily Rates (Optional)

Context: Perform this step for each installation.

See: Defining Sets of Books in the Oracle General Ledger User Guide.

Additional Information:

If you use the O racle ApplicationsMultiple Organization Sup port feature, you can use mu ltiple

sets of books for one Receivables installation . See: Using th e

Multiple Organization Sup port Feature: page 2 151.

Decide How to Use the Account Generator (Required)

The Accoun t Generator ensu res that Receivables substitutes the correct

balancing segment values d ur ing various accoun ting activities against

transactions and receipts. You m ust review the d efault process thatReceivables uses to see if it meets you r accounting requ iremen ts. You

can optionally customize the Accoun t Generator for each set of books

that you have d efined.

Additionally, you can disable balancing segment substitution for

receivable activities using the AR:Disable Receivable Activity Balancing

Segment Substitu tion profile opt ion. If you set this profile option to Yes,

then you mu st define a suspense account to ensure that the transfer toGeneral Ledger succeeds in the even t that you r activities and original

transactions do notpost to the sam e balancing segment value. This

profile option d oes not affect the gain, loss, and rou nd ing accoun ts that

you d efine at the system op tions level.

Context: Perform th is step for each set of books.

See: Using th e Account Generator in Oracle Receivables: page 2 45.

Define Transaction Flexfield Structure (Optional)

If you are n ot using Au toInvoice, proceed to the next step.

If you u se AutoInvoice to imp ort information from an external system

and create transactions in Oracle Receivables, define Transaction

Flexfields to un iquely iden tify these tran sactions. Because Tran saction

Flexfields a re un ique, you can a lso use them to link and reference other

transaction lines.


See: Transaction Flexfields: page 4 253.

Suggestion: To qu ery you r Transaction Flexfield, u pd ate the

Transaction Flexfield information for previously entered

transactions.

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Step 4


Suggestion: Create ind exes on you r Transaction Flexfield

colum ns if you want to query Transaction Flexfield information

in your invoice headers and lines. Additionally, withou t

indexes the validation portions of the Au toInvoice program can

be slow. For more information abou t defining Transaction

Flexfield indexes, see: Imp orting Invoice Inform ation UsingAutoInvoice: page 4 219.

Define Flexfields

For Receivables, you need to d efine both key an d descriptive flexfields.

For key flexfields, you d efine the flexfield structure, specifying the

nu mber an d function of segmen ts, and then select the structure. For

descriptive flexfields, you define the global data element context, any

additional contexts that you might requ ire, and then the structure of

these contexts. Key flexfields do not u se contexts.

Define Key Flexfields (Required)

You can use th e Territory flexfield for recording and custom ized

reporting on you r territory information. Receivables provides a default

stru cture for your Territory flexfield . You can associate Territory

flexfields with salespeople, invoices, comm itments, and customerbusiness pu rposes.

Note: You mu st enable at least one segment of your Territoryflexfield . See: Terr itory Flexfield: page 2 259

Proceed to th e next step if you previously defined you r System Items

Flexfield w hile setting up another Oracle Applications prod uct.

If you h ave not installed Oracle Inventory or Oracle Order

Management and you w ant to report on item information, define yourSystem Items flexfield. You m ust d efine your System Items flexfield

before defining item s in Oracle Receivables.

All Oracle products that reference items share the System Item Flexfield

and supp ort mu ltiple segment implementation. Oracle provides a

seeded System Item Flexfield for you (Code = MSTK). Define a

structure for th is flexfield ra ther th an creating a new flexfield.

After you define you r System Item Flexfield structure, specify you rItem Flexfield p rofile options. Set the OM: Item Flexfield p rofile opt ion

at th e site level to specify the System Item Flexfield stru cture that you

want to use. Set this to System Items, wh ich is the System Item Flexfield

structure that you just defined.

Next, set you r AR: Item Flexfield Mode profile op tion to choose your

preferred m ethod of entry for this flexfield w ithin Receivables. This

default value is concatenated segment en try.

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Step 5

Step 6

2 13Setting Up

See: Inven tory Setup Steps, Oracle Inventory User Guide

Define Descriptive Flexfields (Optional)

Define a d escriptive flexfield if you want to cap ture information that is

not otherw ise captu red in a Receivables form. You can d efine

descriptive flexfields d ur ing your initial setup or at a later time.

See: Descriptive Flexfields: page 2 93

See: Planning Your Descriptive Flexfield (Oracle Applications Flexfields

Guide)


Define Organizations (Required)You m ust d efine at least one organiza tion to use Receivables. This

organization lets you u se the inventory forms in Receivables if you do

not hav e Oracle Inventory installed.

Define the control options and accoun t defaults for your organization

before you can define items or perform an y transactions. You m ust

assign a unique short code to your organization and use this code to

identify the organization w ith which you w ant to w ork.

If you have Oracle Order Management installed:

After you define your organ izations and items, you must select the

item validation organization in the Ord er Management Parameters

window. The item validation organization, wh ich m ust be an item

master organization, indicates the organization th at Receivables uses to

validate items.

Context: Perform this step for each business group.

See: Organizations: page 2 149.

See: Enabling Ord er Managem ent Param eters in the Oracle Order

Management User Guide

Define Sales Tax Location Flexfield Structure (Required)

Receivables uses the customer shipp ing ad dress to determ ine the salestax rate on transactions for all customers in the coun try that you d efine

in the System Opt ions window as your home country. Proceed to the

next step if you are not charging you r customers tax based on their

shipping add ress.

Following are th e seeded Sales Tax Location Flexfield structu res:

Country

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Step 7

Step 8


State and City

Province and City

City

Province State, Coun ty and City

Use the Key Flexfield Segments w ind ow to select the seed ed Sales Tax

Location Flexfield stru cture, or to set up a new structure, that you want

Receivables to use to d etermine you r sales tax rates and to validate

your customer add resses.

You can confirm that th e required segments are enabled by navigating

to the Segmen ts Sum mary window. Navigate back to the Key FlexfieldSegmen ts wind ow to freeze your flexfield structure by checking the

Freeze Flexfield Definition check box and then comp iling the flexfield.

Note: When you define tax system op tions in the SystemOptions window, use the list of values in the Location Flexfield

Structure field to select the sam e Sales Tax Location Flexfield

structure th at you selected in th e Key Flexfield Segments

window.Context: Perform th is step for each installation.

See: Defining Key Flexfield Stru ctures in the Oracle Applications

Flexfields Guide.

See: Defining a Sales Tax Location Flexfield Structure in the Oracle

Receivables Tax M anual.

Define AutoCash Rule Sets (Optional)

If you a re using Au toCash, define your Au toCash ru le sets before

defining system param eters or custom er profiles classes. AutoCash

ru les determine the sequence of app lication m ethod s Receivables uses

when applying receipts imp orted using AutoLockbox to open debit

items.

Context: Perform th is step for each installation.

See: AutoCash Rule Sets: page 2 60.

Define Receivables Lookups (Optional)

Receivables provides several default lookups wh ich are u sed

throughout the ap plication to provide validated default values and list

of values choices. You can ad d or u pd ate these to custom ize your list

of values and sp eed da ta entry. For example, you can define add itional

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Step 9

Step 10

Step 11

Step 12

2 15Setting Up

reasons for creating credit mem os or enter th e nam es of each freight

carrier used by your bu siness.


See: Defining Receivables Lookups: page 2 132.

Define Demand Class Lookups (Optional)

Deman d classes are categories you can u se to segregate scheduled

dem and and su pp ly into groups, so that you can track and consume

the group s ind epend ently. You can then assign dem and classes to

customers in the Customers window s. Use the Deman d Class Lookups

window to mod ify existing or define new Lookups for your shared

demand classes.


See: Deman d Class Lookup s: page 2 142.

Define Invoice Line Ordering Rules (Optional)

If you are u sing Au toInvoice, define invoice line ord ering ru les to

specify how you want to order and nu mber tran saction lines afterAutoInvoice groups them into invoices, debit m emos, and credit

mem os. Receivables provid es many attributes that you can use to

define your line ordering ru les.


See: Au toInvoice Line Ord ering Rules: page 2 66.

Def ine Grouping Rules (Optional)

If you are u sing AutoInvoice, define group ing rules to indicate how

you want to group transaction lines imported by AutoInvoice. For

example, to include specific transaction lines on a single transaction,

certain attribu tes must be iden tical. Receivables provides many

attributes that you can u se to define your group ing rules.


See: Grouping Rules: page 2 122.

Define Application Rule Sets (Optional)

Define App lication Rule Sets to control h ow Receivables reduces the

balance du e for your open d ebit items w hen you ap ply paym ents using

either the App lications wind ow or Post QuickCash. You can define

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Step 13


your ow n ap plication ru le sets, assign them to transaction types, and

specify a d efault rule set in the System Op tions wind ow.


Default If you skip th is step, Receivables uses the ru le set Line First

Tax After as the d efault. This rule set first app lies the paymen t to theline am ount and then ap plies the remaining amou nt to an y associated

tax.

See: Receivables Application Rule Sets: page 6 41.

Define System Options (Required)

Define you r accoun ting, discoun t, tax, and invoice system op tions tocontrol how Receivables works. System options determine your

accoun ting m ethod , set of books, accounting flexfields, w hether you

use header or linelevel rounding , and control the default operation of

the AutoInvoice and Au tomat ic Receipt p rograms.

System options a lso control how Receivables calculates tax on your

tran sactions. You must specify a tax method, choose a Location

Flexfield Structu re, ind icate w hether to compoun d tax, select the

add ress validation to use, and d efine tax defaults and round ingoptions. As you can set up you r system to calculate Sales Tax, Value

Added Tax, or Canad ian Tax, we recomm end that you carefully review

the approp riate imp lementing tax essay before defining your system

options.

For more information, refer to the ap prop riate implemen ting tax essay

in the Oracle Receivables Tax Manual.

Attention: If you u se the Oracle App lications MultipleOrganization Supp ort featu re, you n eed to define system

options foreach of your operating un its. For more information

about m ultiple organizations, refer to the Multiple Organizations

in Oracle Applications manual.

Suggestion: If you a re using flexible address formats to enter

and validate you r customer ad dress information, imp lement

the seed ed Sales Tax Location Flexfield structure Country NoValidation. Alternatively, if you use a Sales Tax Location

Flexfield that contains a segm ent other than country and w ish

to set up a flexible add ress format for your hom ecountry,

every componen t in your Sales Tax Location Flexfield stru cture

mu st also exist in you r flexible add ress style for that country.

See: Using Flexible Add resses: page 3 97.

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Step 14

Step 15

Step 16

2 17Setting Up

Below is a list of optional system op tions; all other system options are

required. There are no default values for these system options.

Account ing Flex Tun ing Segment

AutoCash Rule Set

Head er Round ing Account

Purge Inter face Tables

SQL Trace

System Items Tuning Segment

Tax Registration N um ber

Territory Tun ing Segment

Unallocated Revenue Accoun t*

* Required if you r Accounting Meth od is Cash Basis.

Context: Perform this step for each operating u nit.

See: Defining Receivables System Opt ions: page 2 201.

Set Up Flexible Address Formats (Optional)

To enter customer, supplier, bank, check, and remitto add resses in

countryspecific formats, set up flexible ad dress form ats. For example,

if you h ave customers in German y, you can enter Germ an ad dresses in

the format recommended by the Bun despost, or enter add resses for

customers in the United Kingdom in th e format recommend ed by the

Royal Mail.


See: Setting Up Flexible Add resses: page 3 89.

Maintain Countries and Territories (Optional)

Use the ad dress style field to assign ad dress styles to coun tries if you

want to u se the Flexible Add ress Formats feature.

You can id entify which countries are part of the Europ ean Un ion (EU)by enter ing a VAT Member State Code for these countries. The

Receivables Europ ean Sales Listing report u ses this information to

prod uce a listing of all sales to customers in European Comm un ity

mem ber states other than your own.


Define Payment Terms (Required)

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Define payment terms to d etermine the payment schedule and

discount information for custom er invoices, debit memos, and

dep osits. You can also define proxima p ayment terms to pay regular

expenses such as telephon e bills and credit card bills that occur on the

same day each m onth and create splitpaym ent terms for invoice

installmen ts that have different du e dates.


See: Paym ent Term s: page 2 164.

Default If you skip th is step, Receivables uses 30 NET as the d efault.

This paym ent term indicates that paym ent is du e w ithin 30 days.

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Step 17

Step 18

Step 19

2 19Setting Up

Assign Reporting Set of Books (Optional)

If you are not using Multiple Reporting Currencies (MRC) functionality,

skip this step.

To maintain transactions and accoun t balances in m ultiple currencies,

assign your repor ting set of books to your p rimary set of books. Thisenables you to generate reports in each of your reporting cu rrencies.

For examp le, you can m aintain a p rimary set of books in USD (US

dollars) and have Oracle General Ledger m aintain reporting sets of

books in CAD (Canad ian d ollars) and EUR (euros).

Context: Perform th is step for each set of books.

For more information, refer toMultiple Reporting Currencies in Oracle

Applications.

Define Accounting Rules (Optional)

If your accoun ting m ethod is Accrual, define accounting ru les to create

revenue recognition sched ules for your invoices. Accoun ting rules

determine the n um ber of periods and percentage of total revenue to

record in each accounting p eriod.

When you use accoun ting rules, you also need to d efine the

app ropriate periods to wh ich your ru le refers. You enter these periods

in the Calendar w indow and th ey must refer to the same period type as

your accounting ru le. For example, if you are using an accounting ru le

that recognizes revenue m onthly from Jan99 through Jun 99, you

mu st define periods from Jan99 through Jun99 where the period typ e

is Month. These periods must be defined in the same calendar as your

accoun ting periods. You d efine Calendars in Oracle General Ledger.

Attention: If you have an accounting period type that is not

Month and you u se AutoInvoice w ith Oracle Order

Management, you should up date the Period field for the

pred efined IMMEDIATE accoun ting ru le to the same period as

your accounting p eriod type.


See: Accoun ting Ru les: page 2 31.

Open Accounting Periods (Required)

Open or close periods in your accounting calendar to control the

recording of accounting information for these periods. Receivables

uses the status of these accoun ting period s to control transaction entry

and journ al entry creation to your general ledger. You cannot enter an

activity in a closed accounting period. Receivables provides the

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following period statu ses: Not Op ened , Future, Open, Close Pend ing,

and Closed.

Note: Define you r Receivables calendar in the Accoun tingCalendar w indow in Oracle General Ledger.


See: Opening and Closing Accoun ting Periods: page 8 10.

Define AutoAccounting (Required)

Define Au toAccoun ting to sp ecify the general ledger accoun ts for

transactions that you enter man ually or imp ort using AutoInvoice.

Au toAccoun ting uses this information to create the default revenue,

receivable, freight, tax, unearned revenue, unbilled receivable, financecharges, bills receivable accounts, and AutoInvoice clearing (suspense)

accounts.


See: AutoAccoun ting: page 2 56.

Attention: If you u se the Oracle App lications Multiple

Organization Supp ort featu re, you need to perform this step foreach of your op erating un its. For more information about

mu ltiple organizations, refer to theMultiple Organizations in


Set Up Cash Basis Accounting Method (Optional)

If you a re not using th e Cash Basis accounting m ethod , skip this step.

If you are u sing the Cash Basis accoun ting method, you m ust set your

Accoun ting Method system op tion to Cash Basis, define transaction

types, set up an Unallocated Revenue accoun t, and run a script to make

the GL Transfer and Journ al Entry Reports incomp atible with each

other.


See: Using Cash Basis Account ing: page 8 23.

Define Transaction Types (Required)

Define the t ransaction types that you assign to invoices, debit m emos,

commitm ents, chargebacks, credit m emos, onaccoun t credits, and bills

receivable. Receivables uses transaction types to default paym ent term,

account, tax, freight, creation sign, posting, and receivables

information. Receivables provid es two predefined transaction types:

Invoice and Credit Memo.

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See: Tran saction Types: page 2 270.


Organization Sup port feature, you need to perform th is step for

each of your op erating un its. For more information aboutmu ltiple organizations, refer to theMultiple Organizations in


Define Transaction Sources (Required)

Define the transaction sources that you assign to invoices, debit

mem os, commitm ents, credit memos, onaccoun t credits, and bills

receivable. Receivables uses transaction sources to control you r

transaction and transaction batch num bering, provid e default

transaction types for transactions in batch, and to select validation

options for imp orted transactions. Receivables provides the following

pred efined transaction sources: MANUALOTHER, DM Reversal, and

Chargeback.


See: Tran saction Batch Sources: page 2 262.



each of your op erating un its. For more information about



Define Collectors (Required)

Define collectors to assign to your custom ers through credit p rofile

class assignm ents. Collectors can use the Collections wind ows an d

Receivables collection rep orts to keep app rised of a customer s past

du e items. Receivables provid es a pred efined collector called

DEFAULT.


See: Collectors: page 2 91.

Define Approval Limits (Required)

Define ap prova l limits to d etermine w hether a Receivables user can

app rove adjustm ents or credit mem o requests. You define approva l

limits by docum ent type, dollar amoun t, reason code, and currency.

App roval limits affect the Adjustments, Subm it AutoAd justm ents, and

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App rove Adjustments w indows as well as the Credit Memo Request

Workflow.


See: Approval Limits: page 2 43.

Define Remittance Banks (Required)


Proceed to the next step if you already d efined your rem ittance banks

in Oracle Payables.

Define all of the banks and bank accounts you u se to remit your

paymen ts. You can define as many banks and bank accounts as youneed an d d efine mu ltiple currency bank accoun ts to accept payments in

more than one currency.

See: Defining Banks: page 2 71.

Define Distribution Sets (Optional)

Define d istribution sets if you enter n oninvoice related receipts and

you w ant to use a predefined revenue distribution set. Distributionsets are predefined group s of general ledger accoun ting codes that

determ ine the credit accounts for positive m iscellaneou s receipt

amoun ts and the debit accounts for negative receipt amou nts.


See: Distribution Sets: page 2 95.

Define Receivables Activities (Required)Define Receivables Activities to p rovide default accoun ting information

when you create ad justm ents, discoun ts, finance charges,

miscellaneou s cash transactions, and b ills receivable. Receivables also

uses Receivables Activities to account for tax if you calculate tax on

these activities.


See: Receivables Activities: page 2 178.

Define Receipt Programs (Optional)

To create Au tomatic Receipts, define ad ditional receipt or remittance

format p rograms that you use to send p aper and electronic docum ents

to your customers and remittance banks. You can define as many

receipt programs as you need.

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Default If you sk ip th is step, Receivables uses the Au tomatic Receipt

print program Print Created Receipts (ARXAPFRC.rdf).

See: Automatic Receipt Programs: page 2 68.

Define Receipt Classes (Required)

Define receipt classes to specify wh ether receipts are created man ually

or autom atically. For manu al receipts, you can specify wh ether to

autom atically remit it to the bank and / or clear your accounts. For

autom atic receipts, you can specify a remittan ce and clearance method ,

and wh ether receipts u sing this class require confirmation.


See: Receipt Classes: page 2 171.

Define Payment Methods (Required)

Define the payment meth ods to accoun t for your receipt entries and

app lications and to d etermine a customer s remittance bank

information. When defining payment m ethods, you m ust enter a

receipt class, remittance ban k information, and the accounts a ssociatedwith your paym ent receivables type. You can also specify accoun ts for

confirmation, remittance, factoring, bank charges, and shortterm debt.


See: Paymen t Method s: page 2 152.

Define Receipt Sources (Required)

Define receipt sources to provid e default values for the receipt class,

paym ent meth od, and rem ittance bank accoun t for receipts in a batch.

Receipt Sources also determ ine wh ether the n um bering for receipts in a

batch is automatic or manu al.


See: Receipt Sources: page 2 175.

Attention: If you u se the Oracle App lications MultipleOrganization Sup port feature, you need to perform th is step for




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Context: Perform this step for each installation

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See: Creating Dunn ing Letter Sets: page 2 115.

Define Territories (Optional)

If you defined a Territory Flexfield and want to create custom izedreports based on territory information, define Territory Flexfield

combinations. You can assign Territory Flexfields to salespersons,

invoices, and customer business pu rposes.


See: Territories: page 2 258.

Define Salespersons (Required)

Define salespersons to allocate sales credits to invoices, debit memos,

and commitm ents. If you d o not wan t to assign sales credits for a

transaction, you can enter N o Sales Credit. If AutoAccoun ting

dep end s on salesperson, Receivables uses the general ledger accounts

that you en ter for each salesperson along with your Au toAccoun ting

rules to d etermine th e default revenu e, freight, and receivable accoun ts

for tran sactions.Context: Perform this step for each operating u nit.

See: Salesper sons: page 2 187.






Define System Profile Options (Required)

Define p rofile options to p rovide d efault values for some Receivables

operations, specify h ow Receivables p rocesses data, an d control wh ich

actions users can p erform.

Context: Perform th is once for each installation.

See: Overview of Receivables User Profile Op tions: page B 4.

Note: For more information, please refer to Update PersonalProfile Optionsin the Oracle Applications User Guide an d

Upd ate System Profile Options in the Oracle Applications System

Administrators Guide.

Step 41 Define Customer Profile Classes (Required)

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Define Customer Profile Classes (Required)

Define custom er p rofile classes to categorize customers based on credit,

paymen t term s, statemen t cycle, autom atic receipt, finance charge,

du nning, and invoicing information. When you initially set up you r

customers, you assign each custom er to a p rofile class. To customize

the p rofile class for a specific customer, use th e Customer Profile

Classes wind ow.


Default If you skip th is step, Receivables uses the p rofile class

DEFAULT.

See: Defining Cu stomer Profile Classes: page 3 63.

Define Customers (Required)

Proceed to th e next step if you d efined customers w hile setting up

another Oracle Applications produ ct.

Define customers an d custom er site uses to enter transactions and

receipts in Receivables. When you enter a new customer, you m ust

enter the customer s name, profile class and n um ber (if automatic

customer nu mbering is set to No). You can optionally enter customeraddresses, contacts, site uses and teleph one numbers. You m ust enter

all the comp onen ts of your chosen Sales Tax Location Flexfield w hen

entering customer ad dresses in your home country.


See: Entering Customers: page 3 7.

Define RemitTo Addresses (Required)

Define remitto add resses to inform you r customers wh ere to send

paymen ts. Associate each remitto add ress with one or more state,

country, and postal code combinations. For example, if you w ant your

customers in California and Nevad a to send th eir p ayments to a

specific add ress, enter th e remitto add ress and associate the states CA

and N V with this add ress. Remitto add resses are assigned based on

the billto add ress on the transaction.

Context: Define remitto addresses for each installation . For each

operating un it, associate each remitto add ress with a state and

country.

See: RemitTo Ad dresses: page 2 184.

Suggestion: It is a good idea to set up a default remitto

address, even if you have other rem itto add resses defined ,

because Receivables can use this address if the billto location

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because Receivables can use this address if the bill to location

on the transaction is not covered by any other remitto add ress

assignment. This may happ en, for example, wh en you create

transactions for a new customer.


Organization Sup port feature, you need to perform th is step foreach of your op erating un its. For more information about



Define Customer Relationships (Optional)

Define customer relationships to enable customers to ap ply receipts to

related customer transactions. To restrict receipt ap plication to on lyrelated customers, define relationships betw een your custom ers and set

the system option Allow Paym ent of Unrelated Invoices to No.

Receivables lets you define one w ay an d reciprocal relationships

between your customers.


See: Creating Cu stomer Relationships: page 3 60.

Define Lockboxes (Optional)

To import receipts from a bank file using AutoLockbox, define

lockboxes. For each lockbox, enter the lockbox nu mber, bank name,

batch source, bank account, bank origination num ber and cash account.


See: Lockboxes: page 2 144.

Define Transmission Formats (Optional)

If you use Au toLockbox to imp ort receipts, define a transm ission file

format. Transm ission formats specify how d ata in your lockbox bank

file is organized so it can be su ccessfully imported into the Receivables

interface tables. Receivables provid es several stand ard transm ission

formats you can m odify to meet your needs.


See: Transmission Form ats: page 2 279.

Define Unit of Measure Classes (Optional)

Proceed to th e next step if you d efined u nits of measu re classes while

setting up anoth er Oracle App lications product.

Use the Units of Measure Classes window to define and up date group s

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p g p

of un its of measure with similar characteristics (for examp le, Volume or

Length). A class consists of a base un it of measu re and other assigned

un its of measu re. Use this window to define the base un it of measu re

for each class.


See: Unit of Measure Classes: page 2 286.

Define Units of Measure (Required)

Proceed to th e next step if you d efined un its of measu re wh ile setting

up another Oracle App lications produ ct.

Use the Units of Measure window to define one or more un its ofmeasu re. Each item that you d efine in Receivables mu st have a

primary u nit of measure that you will have defined in this wind ow.

The num ber of units of measure that you d efine in this window

dep end s on the variety of physical characteristics of your

organizations inventory.


See: Units of Measure: page 2 287.

Define Standard Memo Lines (Optional)

Define stand ard m emo lines to enter predefined lines for debit mem os,

onaccoun t credits, and invoices. When you define standard mem o

lines, you can specify wheth er a line is for charges, freight, line, or tax.

Receivables also lets you d efine one chargeback and one d ebit mem o

reversal line.Context: Perform this step for each operating u nit.

See: Stand ard Memo Lines: page 2 194.


Organization Supp ort featu re, you need to perform this step for




Set Up Cross Currency Receipts (Optional)

If your organization need s to apply receipts to tr ansactions in different

curren cies, set up Receivables for cross currency receipts. To do th is,

define a cross currency round ing accoun t in the System Op tions

window, and define a suspen se account in Oracle General Ledger.


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See: Setting Up Cross Currency Receipt s: page 6 21.

Set Up Tax (Required)

In Step 13 you set up Receivables system options and review ed theimp lemen ting sales tax, VAT, or Canad ian tax essay. Set up the

remaining features of Receivables tax by defining taxspecific profile

options, tax codes an d rates, tax Lookup s, tax exceptions and

exemptions, tax authorities, and tax groups.


For more information, refer to the ap prop riate implemen ting tax essay

in the Oracle Receivables Tax Manual.

Set Up Vendor Extension (Optional)

If you are not u sing a tax vend or w ith Oracle Receivables, skip this

step.

Oracle Receivables provides a tax vendor extension that integrates

external tax calculation program s with Oracle App lications. This

extension performs complex tax calculations w hile using Receivables tocreate and store all other tax data. You can imp lement either the

Taxware Sales/ Use Tax System or Vertex Quan tum with Oracle

Receivables.


Depending on the tax vendor you are using, refer to one of the

following implementation guides: Integrating Oracle Receivables with

Taxware Sales/Use Tax System or Integrating Oracle Receivables with VertexQuantum.

Step 53 Define D ocument Sequences (Optional)

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By assigning uniqu e num bers to docum ents, you can account for each

transaction you enter and the docum ent that accomp anies it.

To enable sequential nu mbering, set the Sequential Nu mbering profile

option to either Always or Partially Used . You mu st then define andassign categories and sequ ences for each transaction type, paym ent

meth od, adjustmen t, and finance charge activity that you use.

Context: Define categories and sequences for each installation. Assign

sequences to categories for each set of books.

See: Implementing Docum ent Sequences: page 2 97.

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