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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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2 4 Oracle Receivables User Guide
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
Table 2 2 (Page 1 of 1)
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
Table 2 3 (Page 1 of 1)
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2 6 Oracle Receivables User Guide
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
Table 2 4 (Page 1 of 1)
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
Table 2 5 (Page 1 of 1)
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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
Table 2 6 (Page 1 of 4)
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2 8 Oracle Receivables User Guide
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
Table 2 6 (Page 2 of 4)
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2 9Setting Up
AIWReferenceStepRequiredStep Nu m
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
Table 2 6 (Page 3 of 4)
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Step 1
2 10 Oracle Receivables User Guide
AIWReferenceStepRequiredStep Nu m
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
Table 2 6 (Page 4 of 4)
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.
Context: Perform this step for each installation.
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
2 12 Oracle Receivables User Guide
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)
Context: Perform this step for each installation.
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
2 14 Oracle Receivables User Guide
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.
Context: Perform this step for each installation.
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.
Context: Perform this step for each installation.
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.
Context: Perform this step for each installation.
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.
Context: Perform this step for each installation.
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
2 16 Oracle Receivables User Guide
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.
Context: Perform th is step for each installation.
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.
Context: Perform this step for each installation.
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.
Context: Perform this step for each installation.
Define Payment Terms (Required)
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2 18 Oracle Receivables User Guide
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.
Context: Perform th is step for each installation.
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.
Context: Perform this step for each installation.
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.
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each operating u nit.
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
Oracle Applications manual.
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.
Context: Perform this step for each operating u nit.
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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Context: Perform this step for each operating u nit.
See: Tran saction Types: page 2 270.
Attention: If you u se the Oracle App lications Multiple
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
Oracle Applications manual.
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.
Context: Perform this step for each operating u nit.
See: Tran saction Batch Sources: page 2 262.
Attention: If you u se the Oracle App lications Multiple
Organization Sup port feature, you need to perform th is step for
each of your op erating un its. For more information about
mu ltiple organizations, refer to theMultiple Organizations in
Oracle Applications manual.
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.
Context: Perform this step for each installation.
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.
Context: Perform th is step for each installation.
See: Approval Limits: page 2 43.
Define Remittance Banks (Required)
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each operating u nit.
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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Context: Perform this step for each installation.
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.
Context: Perform th is step for each installation.
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.
Context: Perform th is step for each installation.
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.
Context: Perform this step for each operating u nit.
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
each of your op erating un its. For more information about
mu ltiple organizations, refer to theMultiple Organizations in
Oracle Applications manual.
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Context: Perform this step for each installation
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Context: Perform this step for each installation.
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.
Context: Perform this step for each installation.
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.
Attention: If you u se the Oracle App lications Multiple
Organization Sup port feature, you need to perform th is step for
each of your op erating un its. For more information about
mu ltiple organizations, refer to theMultiple Organizations in
Oracle Applications manual.
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.
Context: Perform th is step for each installation.
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.
Context: Perform th is step for each installation.
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.
Attention: If you u se the Oracle App lications Multiple
Organization Sup port feature, you need to perform th is step foreach of your op erating un its. For more information about
mu ltiple organizations, refer to theMultiple Organizations in
Oracle Applications manual.
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.
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each installation.
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.
Context: Perform th is step for each installation.
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.
Context: Perform th is step for each installation.
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.
Attention: If you u se the Oracle App lications Multiple
Organization Supp ort featu re, you need to perform this step for
each of your op erating un its. For more information about
mu ltiple organizations, refer to theMultiple Organizations in
Oracle Applications manual.
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.
Context: Perform this step for each operating u nit.
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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.
Context: Perform this step for each operating u nit.
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.
Context: Perform this step for each operating u nit.
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.