Hello, I am from Receivables Product Management and in the next hour, I will discuss the Fusion Receivables Implementation and its configuration considerations.

Hello, I am from Receivables Product Management and in the next hour, I will discuss the Fusion Receivables Implementation and its configuration considerations. Oracle Fusion Receivables Implementation and Configuration Considerations Sept, 2011

Pre-requisite Readings
Fusion Financials Overview & Concepts Oracle Fusion Financials Financial Enterprise Structures Oracle Fusion Financials Security These are the pre-requisite readings that will help you better understand the content of this presentation.

Agenda Implementation Overview
Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key Implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Receivables Reference Data Sharing Across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources In this presentation, we will go through the Receivables Implementation Concepts, Considerations and best practices.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key Implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Fusion Receivables Reference Data Sharing Across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources First we will discuss the implementation overview concepts, including the Order Fulfillment Business Process flow, Business Process Mapping to Setup Activities and the Minimal Configuration to make Receivables Operational.

Order Fulfillment Business Process at a Glance
Manage Customer Inquiries Customers Banks Manage Revenue Transact Invoice / Bill Process Payments Manage Receivables Payment Processors Record Accounting Entries Here is an overview of Fusion Receivables as it fits into the Order Fulfillment Business Process. Fusion Receivables incorporates several new features to improve productivity and the overall user experience. These new features are: Automated processing that requires minimal manual intervention Actionable information and transaction statuses pushed to role-based work areas Re-designed and optimized user interfaces for all tasks And tight integration with desktop tools As part of the Order Fulfillment process, Fusion Receivables activities include: Automated creation of billing in a variety of formats to suit your company needs Automation of customer payment processing with new Smart Receipts engine for more efficient cash application Receivables management that includes interactive reporting for quicker reconciliation and period close cycle Contingency based Revenue Management Easy access to billing and payment information for managing customer inquiries and performing account adjustments Fusion Receivables can be configured to seamlessly integrate with banks and payment processors for quicker settlement of customer payments. Oracle Business Intelligence Analytics provides Real-time as well as data warehouse based analytics embedded within the application. Business Intelligence Analytics

Manage Accounts Receivable Balances
Order Fulfillment Business Process at a Glance Fusion Receivables - Order Fulfillment With End-to-End Automation Manage Revenue Manage Accounts Receivable Balances Process Receipts Apply Customer Payments Process Bank Deposits Clear Accounts Receivables Transactions Process Refunds Manage Inquiries Process Late Charges Process Statements Adjust Customer Balances Bill Customers Process Customer Payments Create and Process Bill Present Bill Process Billing Adjustments Process Revenue Process Revenue Adjustments SLA Accounting, GL Reconciliation and Period Close Activity As part of the Order fulfilment Business process, Fusion Receivables segregates into four main role-based Detailed Business Processes that have automated flows requiring minimal manual intervention; and easy, intuitive manual alternatives when needed. Business Intelligence Analytics (OBIA) and Transactional Business Intelligence (OTBI) Automated flow with minimal manual intervention Easy, intuitive manual alternatives

Fusion Receivables Order Fulfillment Business Process
Detailed Business Process Bill Customers Manage Revenue Process Customer Payments Manage Accounts Receivable Balances Process Receipts Apply Customer Payments Process Bank Deposits Clear Accounts Receivables Transactions Process Refunds Manage Inquiries Process Late Charges Process Statements Adjust Customer Balances Create and Process Bill Present Bill Process Billing Adjustments Process Revenue Process Revenue Adjustments Activities SLA Accounting, GL Reconciliation and Period Close Activity These processes are: Bill Customer, which includes the creation and processing of invoices and billing adjustments, as well as template-based bill presentment options Manage Revenue, which includes the processing of revenue and revenue adjustments with timely, accurate and event-based revenue recognition Process Customer Payments, which includes the processing and application of customer payments, processing of bank deposits and clearing accounts receivables transactions, and processing refunds Mange Accounts Receivable, which includes managing customer inquires, processing late charges and customer statements, as well as, adjusting customer balances through automated or manual write-offs of invoices and receipts. Managing Accounts Receivable also provides quick access to generating Subledger Accounting for all accounting events, reconciling receivables to the general ledger, and performing period close activities To assist users with their daily and period-end activities, integration with Business Intelligence Analytics and Transactional Business Intelligence provides easy-to-use predefined reports, embedded analytics and user-configurable reporting. Business Intelligence Analytics (OBIA) and Transactional Business Intelligence (OTBI) Automated flow with minimal manual intervention Easy, intuitive manual alternatives

Business Process Mapping to Setup Activities
Detailed Business Process Bill Customers Manage Revenue Process Customer Payments Manage Accounts Receivable Balances Define Common Accounts Receivable Configuration Define Subledger Accounting Rules Define Customer Billing Configuration Define Basic Items Define Customer Define Common Accounts Receivable Configuration Define Subledger Accounting Rules Define Revenue Management Configuration Define Common Accounts Receivable Configuration Define Subledger Accounting Rules Define Customer Payments Define Funds Capture Configure Payment System Connectivity Define Payments Security Define Cash Management and Banking Configuration Define Common Accounts Receivable Configuration Define Subledger Accounting Rules Define Accounts Receivable Balance Monitoring Each detailed business process carries it’s own setup activities. However, Define Common Accounts Receivable Configuration and Define Subledger Accounting Rules cross all four of the Receivables detailed business processes. Refer to the Define Receivables Configuration presentation for additional details regarding the common receivables configuration. Setup Activities Note: Refer to Define Receivables Configuration presentation for additional details

Business Process Mapping to Setup Activities
Functional Setup Manager (FSM) Fusion setups are accessible via Functional Setup Manager (FSM) Receivables setups available as part of Financials offering Setup is performed in Fusion via the centralized Functional Setup Manager (FSM). The Receivables setup is available as part of the Financials Offering. The first screen shot on the left depicts the Financials Implementation Project with all the setup task lists. The screenshot on the right expands on the Receivables Configuration displaying the individual tasks under it.

Minimal Configuration to Make Receivables Operational
Setup Activities Setup Tasks Define Receivable Configuration Manage Receivables System Options Define Common Accounts Receivable Configuration Manage Receivables Activities Manage Approval Limits Define Customer Billing Configuration Manage Auto Accounting Rules Manage Remit to Address Define Customer Payments Manage Receipt Classes and Methods Define Accounts Receivables Balance Monitoring Manage Statement Cycles Fusion Receivables can be operational with a limited number of mandatory setup tasks. The required setup options would be accessed via the Functional Setup Manager by selecting the Activity and then the associated Tasks. You will need to perform these tasks in the following sequence during the implementation. 1.Manage Receivables System Options 2. Manage Receivables Activities 3. Manage AutoAccounting Rules 4. Manage Receipt Classes and Methods 5. Manage Remit to Address 6. Manage Receivables Approval Limits 7. Manage Statement Cycles The system options may need to be revisited based on the setups defined later in the sequence.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key Implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Fusion Receivables Reference Data Sharing Across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Security in Fusion Receivables

Security in Fusion Accounts Receivables
Job Roles and Duty Roles for Performing Receivables Activities (1 of 4) Fusion Receivables has pre-defined the following job roles to meet most organizations’ business needs Activity Job Roles Apply Customer Payments Accounts Receivable Manager, Accounts Receivable Specialist Clear Accounts Receivable Transactions Close Receivables Accounting Period Accounts Receivable Manager, * Accounts Receivable Specialist Create Receivables Transaction Billing Manager, Billing Specialist Create and Process Bill Define Accounts Receivable Balance Monitoring Application Implementation Consultant Define Common Accounts Receivable Configuration Define Customer Application Implementation Consultant, Accounts Receivable Manager, *Accounts Receivable Specialist, *Billing Manager, *Billing Specialist, *Revenue Manager,*Revenue Analyst Define Customer Billing Configuration Define Customer Payments Adjust Customer Balances Security is implemented using Job Roles, Duty Roles and privileges. Furthermore, data is secured using data roles. In Fusion Receivables, we pre-defined six jobs roles which meet most organizations’ business needs. Accounts Receivable Manager Accounts Receivable Specialist Billing Manager Billing Specialist Revenue Manager Revenue Analyst This table maps business activities to seeded job roles to explain how these seeded job roles can help you perform day-to-day business activities. The table is continued on the next slide. * Note: These job roles have access to sub-set of tasks with in the associated activities

Job Roles and Duty Roles for Performing Receivables Activities (2 of 4) Activity Job Roles Define Receivables Configuration Application Implementation Consultant Define Revenue Management Configuration Application Implementation Consultant, Revenue Manager Manage Inquiries Accounts Receivable Manager, Accounts Receivable Specialist Billing Manager, Billing Specialist * Present Bill Billing Manager, Billing Specialist Process Bank Deposits Process Billing Adjustments Billing Manager, Billing Specialist, Accounts Receivable Manager, Accounts Receivable Specialist Process Late Charges Process Receipts Process Refunds Process Revenue Revenue Manager, Revenue Analyst Process Revenue Adjustments Process Statements Accounts Receivable Manager, Accounts Receivable Specialist Receive Billing and Adjustment Information Receive Payment Information Receive Revenue and Adjustment Information Record Accounting for Billing Transactions Record Accounting for Customer Payments Record Accounting for Revenue Transactions This slide is the continuation of mapping the activities to the job roles.

Job Roles and Duty Roles for Performing Receivables Activities (3 of 4) The pre-defined job roles have the following duty roles associated to them Custom Security needs can be met by managing the duty role assignments Duty Role Accounts Receivable Manager Accounts Receivable Specialist Billing Manager Billing Specialist Revenue Manager Revenue Analyst Application Implementation Consultant Billing Inquiry Duty  Tax Transaction Tax Line Duty Customer Maintenance Duty Transactional Business Intelligence Worker Receivables Transaction Analysis Duty Receivables Accounting Duty Subledger Accounting Manager Duty Subledger Accounting Specialist Duty Late Charges Creation Duty Receipt Creation Duty Receipt Remittance Duty Payment Management Duty Statement Processing Duty Accounts Receivable Monitoring Duty Payables Payment Request Creation Duty Payment Settlement Management Duty Receipt Inquiry Duty Receivables Receipts Transaction Analysis Duty In addition , job roles are associated with duty roles as shown in the table. For ex. The Billing Inquiry Duty is associated to all six job roles whereas the Receipt Creation Duty is only available to Accounts Receivables Manager and Specialist. Your custom security needs can be met by managing these duty role assignments. The table continues on to the next slide.

Job Roles and Duty Roles for Performing Receivables Activities (4 of 4) Duty Role Accounts Receivable Manager Accounts Receivable Specialist Billing Manager Billing Specialist Revenue Manager Revenue Analyst Application Implementation Consultant Subledger Accounting Transaction Analysis Duty  Payables Payment Request Inquiry Duty Accounts Receivable Managerial Analysis Duty Receivables to Ledger Reconciliation Transaction Analysis Duty Receivables Reconciliation Duty Receivables Period Closure Duty Receivables Business Intelligence Management Duty Customer Payment Instrument Management Duty Receivables Inquiry Duty Trading Community Hierarchy Management Duty Business Intelligence Applications Worker Receivables Overview Duty Customer Creation Duty Adjustment Approval Duty Bill Creation Duty Bill Adjustment Duty Orchestration Order Billing Web Service Duty Item Inquiry Duty Revenue Adjustment Duty Receivables Revenue Adjustments Transaction Analysis Duty Revenue Setup Maintenance Duty Receivables Administration Duty 

Custom Security Examples (1 of 3) Points to Consider Evaluate security requirements of your enterprise before deciding to create custom Job Roles When considering creating new Job Roles, be pragmatic and consider the following dimensions Number of Users Convenience Sternness of Security Following two slides contains five examples of custom security If the seeded job roles do not meet your security needs, you can create custom job roles. Thoroughly evaluate the security requirements of your enterprise before deciding to create custom Job Roles Also, be pragmatic and consider the following additional dimensions Number of Users Convenience Sternness of Security Now let’s look at some examples of custom security Note: Custom job roles can be created by following instructions in Oracle Fusion Financials Security

Custom Security Examples (2 of 3) Business Scenario Recommendation John is Accounts Receivables Manager for US BU at Energy, Inc. Due to recent acquisitions, he is now responsible for Mexico BU as well Generate the data role for BU based (Data Role Template) DRT - BillingRevMgtandCustPayment Generate the data role for the AR Set based (Data Role Template) DRT - FinancialsArSetId Assign both data roles to the user Accounts Receivables Specialist of Enterprise, Inc needs to have access to accounting privileges Since the seeded Accounts Receivables Specialist Job role does not include accounting privileges, you should Create a new Job Role for Accounts Receivables Specialist Assign all Accounts Receivables Specialist Duty Roles to this role Assign the Subledger Accounting Manager Duty to this Role In the first example John is Accounts Receivables Manager for US Business Unit at Energy, Inc. Due to recent acquisitions, he is now responsible for Mexico Business Unit as well. New data roles need to be defined for the Mexico Business Unit and assigned to John. In the next example, Accounts Receivables Specialists of Enterprise, Inc need to have accounting privileges. Since the seeded Account Receivables Specialist job role does not include this privilege, a new job role which includes this privilege needs to be defined

Security in Fusion Accounts Receivables Custom Security Examples (3 of 3)
Business Scenario Recommendation ABC, Inc has a Subledger Period Close Manager who manages the period close process for Receivables. Accounts Receivable Manager manages Customer Payments only and should not have any period close privileges Since the seeded Accounts Receivables Manager Job Role includes period close privileges, you should Create a new Job Role for Subledger Period Close Manager and assign the Duty Role Receivables Period Closure Duty Create a new Job Role for Accounts Receivables Manager and assign all Duty Roles as per the seeded Accounts Receivables Manager Role except Receivables Period Closure Duty Billing Manager of Aspire, Inc should not have access to Create Customer privileges Since the seeded Billing Manager Job Role includes Create Customer privileges, you should Create a new Job Role for Billing Manager and assign all Duty Roles as per the seeded Billing Manager Role except Create Customer Duty Arial, Inc is a collections business and has large number of receivables users with the majority focusing only on cash application and should not have access to other privileges Since the seeded Accounts Receivables Specialist Role includes more privileges than needed, you should Create a new Role providing access only to Cash Application Duty role and assign to these users In this next example, ABC, Inc has a Subledger Period Close Manager who manages the period close process for Receivables. The Accounts Receivable Manager manages Customer Payments only and should not have any period close privileges Since the seeded Accounts Receivables Manager job role includes this privilege, you need to define a job role which excludes the Period Close privilege. You also need to create a Subledger Period Close Manager job role which includes the Period Close privilege. In the next exmaple, the Billing Manager of Aspire, Inc should not have access to Create Customer privileges Similar to the previous example, you need to create new job role which excludes Create Customer Duty. The last example is Arial, Inc. It is a collections business and has a large number of receivables users - the majority of which focus only on cash application and should not have access to other privileges Since the seeded job role includes more privileges than needed, create a new job role with limited privileges for those users. Refer to Oracle Fusion Financials Security Implementation and Configuration Considerations for more details.

Order fulfillment business process at a glance Business process mapping to setup activities Minimal configuration to make Receivables operational Key implementation concepts and considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Fusion Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Business Unit, Legal Entity and Ledger in Fusion Receivables.

Business Unit, Legal Entity(LE) and Ledger in Fusion Receivables
Example Legend InFusion Corp. (Holding Co) Legal entity Primary BSV InFusion (UK) Ltd. InFusion USA West Inc. InFusion USA East Inc. InFusion USA Fin Services SA Ledger Business unit Co 04 Co 02 Co 01 Co 03 Co 05 InFusion UK InFusion USA Corporate InFusion USA Financial Services AQM UK AQM USA Corporate SSC Financial Svc Additional Information Legal Entities can be mapped to Ledgers and/or to Primary Balancing Segments of the Ledger Business Units manage transactions and are associated to a ledger Operating units in the Oracle E-Business Suite are replaced with business functions enabled on a business unit This slide depicts the relationship between Business Unit, Legal Entity and Ledger and how they fit together in a Fusion Implementation. Pl. note that The Corporate SSC Business Unit depicted in the example provides common administrative, payroll and procurement services to the AQM USA and Financial Service business units. Legal Entities can be mapped to Ledgers and/or to Primary Balancing Segments of the Ledger Business Units manage transactions and are associated to a ledger Operating units in the Oracle E-Business Suite are replaced with business functions enabled on a business unit Refer to Fusion Financials Enterprise Structures Implementation and Configuration training for more details. Note Your LE, BU and Ledger structures are determined by your enterprise level requirements. Refer to Oracle Fusion Financials Financial Enterprise Structures for additional details

Business Unit, Legal Entity(LE) and Ledger in Fusion Receivables Setup
To Process Receivables, enable these two business functions Assign default Legal Entity To enable a Business Unit to process receivables, enable the following business functions. Billing and Revenue Management Customer Payments Assign your business unit to one primary ledger and a default legal entity This assignment is mandatory for business units with business functions that produce financial transactions . In some cases the legal entity is explicit in your transactions; however, if the legal entity context needs to be derived from your business unit, then the default legal entity is used if the derivation rules cannot find a better match Assign Primary Ledger

Business Unit, LE and Ledger in Fusion Receivables Determination on Receivables Transactions
Business Unit (BU) Ledger Legal Entity (LE) Transactions Defaulted to the “Default Business Unit” profile option value List of Values (LOV) restricted to available BUs per user’s BU Security Determined by the selected BU Determined by the following hierarchy Transaction Type Transaction Source Default Legal Entity set up in BU definition LOV restricted to the LEs associated with the Ledger of the selected BU Receipts LOV restricted to available BUs per user’s BU Security Determined by the remittance bank selected This slide depicts, how Business Unit, Ledger and Legal Entity values are either defaulted or determined on Receivables Transactions and Receipts. Both Transactions and Receipts use a combination of the Default Business Unit profile option and security to determine the default business unit to show in the UI. Ledgers are based on the business unit selection. For Transactions, the Legal Entity is determined by a hierarch of transaction data, whereas for receipts the Legal Entity is determined by the selected remittance bank. Note Set up the profile option “Default Business Unit” at user level to default the BU automatically Set up the Legal Entity value in transaction source definition If your BU typically services single LE, you setup default LE in BU If your BU services multiple LEs and you have clearly segregate order fulfillment flows, then setup the LE at the transaction source Business Unit Security was referred to as Multi Org Access Control in the Oracle E-Business Suite .

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Fusion Receivables Reference Data Sharing Across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Reference Data Sharing Across Receivables Business Units

Reference Data Sharing Across Receivables Business Units
Set Enabled Setup Objects Reference Data Set allows sharing of the same reference data across Business Units and will not have to be redundantly defined/maintained when they are applicable to multiple Business Units “Common Set” is seeded in Fusion for all the set-enabled objects (except Customer), to meet the business needs of most organizations Example If an Enterprise has 10 Business Units and 20 Transaction Types, in EBS you create 200 Transaction Types but in Fusion, you only create 20 Transaction Types shared by all 10 Business Units Set Enabled Entities Revenue Scheduling Rules Customer Account Relationships (TCA) Remit to Address Aging Buckets (Collections) Revenue Contingencies Auto Cash Rules Payment Terms Sales Persons (TCA) AutoMatch Rule Sets Receipt Application Lockbox Standard Memo Lines Collectors (Collections) Transaction Sources Exception Rules Customer Site (TCA) Transaction Types Reference Data Sets allow you to share the same reference data across Business Units to avoid redundant definition and maintenance when the same data is applicable to multiple Business Units The “Common Set” is seeded in Fusion for all the set-enabled objects except Customer, to meet the business needs of most organizations In Fusion Receivables, several set up entities are Reference Data Set enabled to provide maximum flexibility during configuration Refer to Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations for additional details Note: Refer to Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations for additional details

Reference Data Sharing Across Receivables Business Units
Things to Consider Reference Data Set is a mandatory attribute for set enabled objects The List of Values for the Reference Data Set are determined by the user’s BU access “Common Set” is available to use by all users* Since the “Common Set” is pre-defined, a new Reference Data Set is needed only to limit the access to certain setup objects to one or more BUs Note::Pre-defined “Common Set” is not available for assignment in the Customer setups. Consider defining a Global Reference Data Set to provide access to customer site to all BUs AGM, Inc has two Business Units (US and EMEA) and some of the payment terms are unique to EMEA customers. AGM ,Inc will create “EMEA” Reference Data Set to support this business need CIT Group has several lines of businesses supporting various customers. Transaction Sources and Transaction Types for each line of business have unique set of attributes and cannot be shared. CIT Group will need to create one Reference Data Set per each line of business Example Reference Data Set is a mandatory attribute for set enabled objects The List of Values for the Reference Data Set are determined by the user’s Business Unit access “Common Set” is available to use by all users* Since the “Common Set” is pre-defined, a new Reference Data Set is needed only to limit the access to certain setup objects to one or more Business Units

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Fusion Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Accounting in Receivables.

Accounting in Receivables
Create Accounting Journal Import and Post Tr AR Transactions Fusion Subledger Accounting AR Distributions Fusion General Ledger Accounting Entries GL Receivables generates distributions based on AutoAccounting Rules, Receipt Classes, Receipt Methods and Receivables Activities and passes to SLA SLA generates accounting entries, including multiple accounting representations, based on SLA Rules Distributions generated by AutoAccounting is interim accounting and used as a source to generate final accounting by SLA AutoAccounting can derive transaction distributions from the following pre-defined sources Bill To Site Salesperson Standard Lines Taxes Transaction Type Constant Oracle Fusion Receivables AutoAccounting is used to specify the general ledger accounts for transactions that are entered manually or imported from other systems. AutoAccounting uses this information to create the default revenue, receivable, freight, tax, unearned revenue, unbilled Receivable and AutoInvoice clearing (suspense) accounts. Distributions generated by AutoAccounting are interim accounting and used as a source to generate final accounting. Note that Transaction Distributions are generated based on the AutoAccounting Setup Standard Receipts distributions are generated based on the Receipt Class and Receipt Methods setup Miscellaneous Receipts and Adjustments distributions are generated based on the Receivables Activities setup SLA generates accounting entries, including multiple accounting representations, based on SLA Rules Refer to Oracle Fusion Subledger Accounting Implementation and Configuration Considerations for additional details

AutoAccounting Sources Type of Account Bill -to Site Salesreps Transaction Type Standard Lines Taxes Constant Receivables  Revenue Tax Unearned Revenue Unbilled Receivables Freight AutoInvoice Clearing Here are the sources used by autoaccounting to derive the accounting on transactions. The available sources are based on the account type. For each segment in your Accounting Flexfield, enter either the source name that you want Receivables to use to get information or a constant value. When you select an account Type, Receivables displays all of the segment names in your Accounting Flexfield Structure. Segments include such information as Company, Product, Department, Account, and Sub-Account etc.

Example AutoAccounting Setup for Receivable Account: CO: Bill To Site CC: Salesperson ACCT: Transaction Type Invoice: 7/1/2010 Acme, Inc 3 Hrs Consulting $3,000 Salesperson: Bill Brown Transaction Type: US-W AR Transaction Distributions Distribution (Generated by AutoAccounting) Company: 02 Cost Center: 420 Account: Customer Acme Inc. Site: Florida Company: 02 Cost Center: 340 Account: 1210 Salesperson Bill Brown Central Sales Company: 01 Cost Center: 420 Account: 1211 Transaction Type US-W Cost Center: 000 Here is an example of how AutoAccounting uses the sources we just saw in the previous slide. In this example we are using the sources of Customer Site, Salesperson and Transaction Type to derive the individual segments of the GL account for the Receivables Account Type.

Accounting in Receivables Best Practices
Use pre-defined SLA rules to create accounting based on the distributions generated in Receivables to avoid future maintenance complexity Modify the seeded SLA rules or create new rules only if distributions as a source do not meet your accounting needs Receivables seeded approximately 800 sources to support flexible SLA rules Schedule Create Receivables Accounting batch process to generate accounting at regular intervals Use on-line accounting, if needed, to generate accounting in exceptional cases In addition to the scheduled runs, run Create Receivables Accounting batch process during period close to capture any last minute transactions To streamline your receivables accounting: Use pre-defined Subledger Accounting rules to create accounting based on the distributions generated in Receivables to avoid future maintenance complexity Modify the seeded Subledger Accounting rules or create new rules only if distributions as a source do not meet your accounting needs Custom Subledger Accounting rules do not propagate the accounting back to AR Distributions Therefore the user cannot update Receivables distributions to impact the accounting generated by custom Subledger Accounting rules When customizing Subledger Accounting rules, consider all downstream activities that will require customized rules as well Schedule Create Receivables Accounting batch process to generate accounting at regular intervals Note: Refer to Oracle Subledger Accounting Implementation and Configuration Considerations Training for detailed information.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Customer Billing .

Customer Billing Creation Methods for Billing Documents
Document Type Creation Method XXXXXXX Automatic Manual Invoice AutoInvoice, Late Charge Process Manual Transaction Entry, Duplicate Transaction, ADFdi (AutoInvoice error correction only) Credit Memo AutoInvoice, Dispute Process Manual Transaction Entry, Credit Transaction Debit Memo Manual Transaction Entry Chargeback None Receipt Application Adjustments Auto Adjustments, Late Charge Process Manual Adjustments, Balance Forward Bill (BFB) Balance Forward Bill Process Fusion Receivables supports a variety of invoicing methods as shown in this table. AutoInvoice can be used for your day-to-day bulk receivables operations. Invoices and Credit Memos can be imported via AutoInvoice through Distributed Order Orchestration (DOO), Fusion Projects or any other external systems Customers typically use automated processes for most of their transaction processing to reduce costs and increase efficiency Use the Create Transaction UI to create a one-off manual invoice, debit memo or on-account credit memo

Customer Billing AutoInvoice - Overview
AutoInvoice Import Send Data Errors Upstream Applications Invoices Credit Memos Debit Memos Interface Table Exception Management- Correct Errors in Excel and upload AutoInvoice is a powerful, flexible tool used to import and validate transaction data from other financial systems and create invoices, debit memos, credit memos, and on-account credits in Oracle Fusion Receivables. You can also use a custom feeder program to transfer transaction data from an external system into the AutoInvoice interface tables. The upstream application sends the data to the interface table. AutoInvoice then selects data from the interface tables and creates transactions in Oracle Fusion Receivables. Receivables rejects transactions with invalid information to ensure the integrity of the data. The invalid data (exceptions) are pushed to users for correction. Users use the Fusion Desktop Excel Integration , which is an excel interface that is more familiar, to review data and correct the errors. This minimizes the number of steps required to review and correct error records with more flexibility, better user interface and faster turn around. You can submit the AutoInvoice process after error correction.

Customer Billing AutoInvoice – Transaction Source - Key Considerations (1 of 2)
Associated Setup Task Business Case How to group the imported lines during the invoice creation Manage AutoInvoice Grouping Rules. Your enterprise needs to create invoices per sales order Create a new grouping rule and add SALES_ORDER as additional attribute How to order and number transaction lines during the invoice creation Manage AutoInvoice Line Ordering Rules Your enterprise needs order invoice lines in the same sequence as they appear on the sales order Create a new invoice Line Ordering Rule with the attribute SALES_ORDER_LINE What is your Item Validation Organization to validate inventory items during the invoice creation? Define Receivables System Options Your business has multiple inventory organizations and you need to select one as Item Validation Organization You need to select the inventory organization that contains all of the items sold within that BU Note: In Fusion, Item Validation Organization is moved to Receivables System Options Here are some of the key considerations for autoinvoice transaction sources If invoices are created per sales order, create a new grouping rule with sales_order as an optional attribute. If order invoice lines need to appear in the same sequence as on the sales order, create a new invoice line ordering rule with the attribute sales_order_line. If the business has multiple inventory organizations and you need to select one inventory organization as the Item Validation Organization, select the inventory organization that contains all of the items sold within that Business Unit.

Customer Billing AutoInvoice - Transaction Source - Key Considerations (2 of 2)
If your accounting practice is to reject transactions in closed accounting period, set the value as “Reject” which means that you will need to re-open the period to process these lines Additionally If your accounting practice is to reject transactions in closed accounting periods, set the “Accounting Date in a Closed Period” value as “Reject” - you will then need to re-open the period to process these lines Consider setting the “Invalid Line” value as “Reject Invoice” to avoid creating multiple invoices by AutoInvoice Verify the default values of Import Information and update if needed Consider to set the value as reject Invoice to avoid creating multiple invoices Verify the default values of Import Information and update if needed

Customer Billing Configuration Recommendations (1 of 5)
Setup Object Recommendations Transaction Source Setup default values to simplify your manual transaction entry Enable automatic transaction numbering to meet your audit requirements Transaction Type Use “Positive” creation sign for invoice and debit memo and “Negative” creation sign for credit memo. Create new transaction types if pre-defined types do not meet your business needs. Example: Your enterprise needs to account for and report separately for product invoices and service invoices. In such case, create new transaction types for product and service separately Payment Terms Setup payment terms defaulting to simplify transaction creation. Note the defaulting hierarchy as follows Customer Bill-to site Customer Account If you plan to create invoices with installments, define the payment schedules with split payment terms By setting up default values, you can simplify manual transaction entry. Enable Automatic Transaction Numbering on transaction sources to meet auditing requirements. Additional Transaction Types and Payment Terms can be created as needed.

Customer Billing Configuration Recommendations (2 of 5) - Fusion Customer Data Model
Party Site Location Define key information in your customer setup so that the information will be defaulted during manual transaction and also derived by AutoInvoice. Example Payment Terms Receipt Methods Receipt Matching criteria Reference Accounts (Used by Auto Accounting) Tip Points to Note PARTY Person or Organization Account Relationship Customer Profile Account Account Date Effective Site 1 Site 2 Site 3 Points to Note Manage Customers provides single page overview about customers, accounts, and sites In EBS Customer Site and Account Relationships are Operating Unit striped but in Fusion both are reference data set striped, which will enable sharing of these entities across BUs In Fusion, Profile Class association to a Customer Account or Site is Date Effective Lets review some of the key considerations for defining a customer in Fusion Receivables Define a customer account with Bill-to Site purpose Define key information in your customer setup so that the information will be defaulted during manual transaction entry and also derived by AutoInvoice. For Example Payment Terms Receipt Methods Receipt Matching criteria Reference Accounts (Used by Auto Accounting) Site Purposes Bill-to, Ship Site Purposes Bill-to, Ship-to Statement Site Purposes Bill-to

When do I create multiple Customer Accounts? Define multiple customer accounts for one party if you market, sell to, and service that company as one entity, but have different selling relationships with that party Example Your customer purchases your products for their own personal use as well as for government project use. For their government purchases, GSA pricing exists, whereas when they purchase directly for their use, they have a globally established discounted price. In this case, you may want to create two accounts (one for GSA and one for direct) under the same party When should I create multiple Customer Account Sites? Let’s discuss when to create multiple customer accounts and account sites. Define multiple customer accounts for a party if you market, sell to, and service the company as one entity, but have different selling relationships with that party. Generally speaking, it is recommended to define one active bill-to site per customer account. However, define multiple bill-to sites for an account if multiple bill-to addresses have the same terms and conditions. Define one active Bill-to Site per Customer Account where possible. However, if multiple bill-to addresses have same terms and conditions ,create multiple bill-to sites under same account Example You sell widgets to ABC Co., which has locations across the world. ABC Co. has established countrywide purchasing agreements with you, whereby every location in each respective country receives the exact same discount and contractual agreements when making a purchase. Given the business model, the best practices will be to create one Party and one Customer Account for each domestic HQ of ABC Co. (e.g. ABC Co. US), create multiple Bill-to Sites for each account.

Setup Object Recommendations Bill Presentment Templates Use Pre-defined templates for your bill presentment with minimum personalization Update with your company logo Verify the default attributes to be included in the printed document Set your template as a Default Template in BI Publisher List of pre-defined templates Default Invoice Template Default Credit Memo Template Default Debit Memo Template Default Chargeback Template Default Balance Forward Bill Detail Template Default Balance Forward Bill Summary Template Balance Forward Bills (BFB) Use Balance Forward Bill, if you have the need to send one consolidated bill to a customer, instead of a separate invoice for each transaction Send one consolidated bill for 2 or more sites under the same account Set BFB Level as “Account” Enable BFB option on the Bill To sites for which you like to send consolidated bill Send separate consolidated bills for each site under the same account Set BFB Level as “Site” Enable BFB option on the Bill To site/s for which you like to send consolidated bills Use the pre-defined Bill Presentment Templates to support your bill presentment requirements. These seeded templates comes with all the required information and require minimum personalization. Use balance forward billing to print a single bill that includes all of a customer's transactions for the billing period and any balance carried forward from the previous billing period. This results in one consolidated bill to a customer, instead of a separate invoice for each transaction To Send one consolidated bill for 2 or more sites under the same account, set the Balance Forward Bill Level as “Account” and the Enable Balance Forward Bill option on the Bill To sites for which you would like to send consolidated bills To Send separate consolidated bills for each site under the same account, you need to set Balance Forward Bill Level as “Site” And Enable Balance Forward Bill option on the Bill To sites for which you would like to send consolidated bills Business Cases

Customer Billing Configuration Recommendations – Present Bill (5 of 5)
Use Pre-defined templates for your bill presentment with minimum personalization Update with your company logo Verify the pre-defined attributes in the template and add more if needed. Examples of pre-defined attributes are Bill To Remit To Invoice Number etc. Set your template as a Default Template in BI Publisher List of pre-defined templates Default Invoice Template Default Credit Memo Template Default Debit Memo Template Default Chargeback Template Default Balance Forward Bill Detail Template Default Balance Forward Bill Summary Template Invoice based on the pre-defined Default Invoice Template Here is an example of a printed invoice with the seeded “Default Invoice template” One template is required for each transaction class. Oracle Application has seeded 6 printing templates out-of-the box. To customize the billing format, create a new template or modify an existing one using BI Publisher. 40

Customer Billing Centralized Tax Engine- Simplify Global Tax Compliance
Tax Setup Quickly set up tax with pre-seeded content Adapt to changing tax rules with date-effective tax content Simulate tax changes with Tax Simulator -% Tax Sales and Use Tax Recoverable & Non-Recoverable Tax Deferred Tax Tax on Freight Duty Tax Tax on Intercompany Movements Inclusive or Exclusive Tax Offset Taxes Tax Calculation Automatically & accurately calculate tax Allow certain individuals to override tax calculation Receivables relies on Fusion Tax for tax configuration and calculation. Oracle Fusion Tax consists of a tax knowledge base, a variety of tax services that respond to specific tax events, and a set of repositories (for tax content and tax recording) that allows customers to manage their local tax compliance needs in a proactive manner Oracle Fusion Tax supports all types of taxes, such as sales and use taxes that are recoverable and non-recoverable. It supports deferred tax and tax on freight. It also supports the creation of Quantity Based tax rates for duty taxes Users can specify whether or not a tax is inclusive in the amount of the good or service when defining taxes in the system It also supports offset taxes, which is a negative-rate tax used to fully or partially reduce another tax You can control whether or not to allow overrides of calculated tax amounts during the transaction entry. You can also set controls to allow overrides at multiple levels, such as at the transaction type, user and tax level. For example, you may allow overrides to GST but not for VAT. Calculated taxes are stored in the form of tax lines in the tax repository. These tax lines have all necessary information needed for tax reporting. Refer to Oracle Fusion Tax Implementation and Configuration Considerations Training for detailed information on tax related functionality and configuration in Receivables Tax Reporting Standardized and simplified reporting using BI Publisher Modify/extend reporting templates Note: Refer to Oracle Fusion Tax Implementation and Configuration Considerations Training for detailed information on tax related functionality and configuration in Receivables

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger, and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Customer Payments.

Customer Payments Overview
Customer Payments provides versatile methods of payment creation and cash application Multiple receipt creation methods support a variety of business needs Lockbox Automatic Receipt Excel Upload Manual Smart Receipts - robust receipt application engine enables you to apply cash efficiently and effectively with minimal manual intervention Generates recommendations for receipts that cannot be automatically applied Customer Payments provides versatile methods of payment creation and cash application Multiple receipt creation methods support a variety of business needs Lockbox Automatic Receipt Excel Upload Manual Smart Receipts is a robust receipt application engine that enables you to apply cash efficiently and effectively with minimal manual intervention. It also generates recommendations for receipts that cannot be automatically applied

Customer Payments Creation Methods for Receipts
Lockbox Receipts Loads lockbox bank files to create and apply receipt efficiently Receipts via Spreadsheet Allows fast data entry in bulk and can be used offline Customer Receipts Fusion Receivables supports a variety of receipt creation methods to meet the needs of your organization. Lockbox eliminates manual data entry by automatically processing receipts that are sent directly to the bank. Specify how this information is transmitted and how Receivables validates the data and creates receipt batches. Lockbox can also automatically identify the customer who remitted the receipt and determine how to apply the receipts to the customer's outstanding debit items. Receipts via Spreadsheet integrates with Microsoft Excel to efficiently capture Receipts data while offline in a field office. The spreadsheet can be later uploaded to the system to create receipt batches. Intuitive and efficient manual standard receipt entry uses sophisticated defaulting to reduce the amount of data that needs to be entered to create a receipt. It also leverages the enhancements to the automatic receipt application engine to immediately match the entered remittance advice information to open receivables transactions and apply the receipts. Automatic Receipts integrates with Oracle Fusion Payments to provide convenient processing and management of Credit Card and Bank Account Transfer payments. It automatically generates receipts for customers with whom you have predefined agreements that let you collect payments on time by transferring funds from the customer's bank account to yours on the receipt maturity date. Manual Receipt Entry Supports fast and efficient manual receipt creation with tools to facilitate manual receipt application Automatic Receipts Integrates with Oracle Fusion Payments to process Credit Card and Bank Account Transfer payments

Customer Payments Lockbox Receipt Processing - Overview
Implementing Company Customer Supports multiple lockbox transmission file formats Supports lockbox error correction via spreadsheet Leverages the new SmartReceipts engine Increases the receipt application hit rate based on customer remittance advice Generates recommendations based on receipt reference information when receipt cannot be automatically applied Invoice(s) Billing Department Payment sent to Financial Institution Lockbox Correct error in Excel and Re-run Lockbox Lockbox file with customer payment details Lockbox is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing. Lockbox eliminates manual data entry by enabling deploying companies to automatically process receipts that are sent directly to your bank by uploading lockbox files sent by the bank. This feature supports: multiple lockbox transmission file formats error correction via spreadsheet for ease of use The SmartReceipts application engine to increase the hit rate based on remittance advice from your customer, and also factors related to customer payment history when remittance advice is missing or incorrect Receivables Department Financial Institution

Customer Payments Automatic Receipts - Overview
Implementing Company Billing Department Receivables Department Receivables Department Automatic Receipts (creation, approval, confirmation) Clearance Receipt(s) Cash Payment Arrangement using credit card or bank account transfer Remittance (funds capture is processed by Oracle Fusion Payments) Bank statement (funds settlement is processed by Oracle Fusion Payments) Invoice(s) Customer Financial Institution Automatically generates receipts for customers with predefined agreements by transferring funds from the customer's bank account to yours on the receipt maturity date All required processing steps can be scheduled to run automatically with minimal manual intervention The Automatic receipts feature automatically generates receipts for customers with whom you have predefined agreements. These agreements allow you to collect payments on time by transferring funds from the customer's bank account to yours on the receipt maturity date. Automatic Receipts Processing: First, identify and flag Transactions by assigning the Automatic Receipt method to the invoice. The Invoices created from feeder systems can be marked with Automatic Receipt Method and passed on to Receivables. Next, create the Automatic Receipt Batch to select the transactions against which the receipts are created. Optionally, Automatic Receipts and Batches can be confirmed in the system if the predefined agreement requires confirmation prior to making the funds transfer. Once the receipt batch is created, run the Automatic Receipt Remittance Batch process to automatically create receipt remittances that are sent to Oracle Fusion Payments for Funds Capture. Finally, Reconcile and Clear these receipts as you would any other receipts. All the required processes steps can be scheduled to automatically run with minimal manual intervention.

Customer Payments SmartReceipts - Overview
SmartReceipts increases the receipt application hit rate when payments contain inaccurate reference data Automatically applies the receipt or generate recommendations Supports both invalid customer and transaction references Allows users to specify threshold scores above which recommendations are generated and automatically accepted SmartReceipts also streamlines exception cases when the Customer has either overpaid or underpaid SmartReceipts increases the receipt application hit rate when payments contain inaccurate reference data provided by the customer remittance advice or the imported lockbox information. SmartReceipts can automatically apply the receipt or generate a recommendations for its application It supports invalid customer and transaction references by suggesting potential customer and transactions when that information is missing or incorrect. It has a configurable scoring engine which generates recommendations and can automatically accept the recommendations when they exceed the score threshold. SmartReceipts also streamlines exception cases when the Customer has either overpaid or underpaid

Recommended Creation Method
Customer Payments Choosing a Creation Method - Recommendations Scenario Recommended Creation Method Customer provides accurate and complete remittance reference information Lockbox - Streamlines the cash application process with minimal user intervention required Customer provides inaccurate remittance reference information SmartReceipts - Matches payments with transactions and customers to automatically apply payment or generate recommendations Exception cases not handled by Lockbox or SmartReceipts Manual receipt creation - Handles low-volume exception cases Receipts via spreadsheet - Facilitates creation of receipts in bulk There exists a predefined agreement with customers to accept electronic payments Automatic receipts - Handles all electronic payments via bank account transfers or credit cards For customers who consistently provide accurate and complete remittance reference information, lockbox receipt processing is the recommended method For situations in which the provided remittance reference information is inaccurate, use SmartReceipts to automatically match the reference information to transactions and generate recommendations Only use manual receipt entry to handle low-volume exception cases that cannot be processed via lockbox or SmartReceipts. Use Receipts via spreadsheet when manually creating in bulk Automatic receipts should be used whenever there is a predefined agreement with customers to accept electronic payments via bank account transfers or credit cards

Customer Payments Implementation Overview AutoMatch Rule Sets
SmartReceipt Application Exception Rule Lockboxes X Transmission Format Manual Receipt Receipts via Spreadsheet Lockbox Automatic Receipts Receipt Classes & Methods Features Setups Receipt Sources X Application Rule Sets AutoCash Rule Receivables Activities Funds Capture Processing* Document Sequencing Payment Instruments Here is a list of the setup to perform for managing receipt creation and application. This simple table quickly identifies what setup is required is for each type of receipt creation method. Now let us look at the first five items more closely as they relate to implementation consideration. * Funds Capture and Payment System Connectivity configurations are required pre-requisites for automatic receipts. Refer to Oracle Fusion Payments Implementation Training Guide for details

Receipt Classes & Methods
Customer Payments Implementation Overview - Receipt Classes and Methods – Key Decisions (1 of 2) Receipt Classes & Methods Determine Whether receipts are created manually, via lockbox, or through automatic receipts with the receipt class Which bank account(s) to use to remit receipts What is the minimum receipt amount required for remitting to each bank account What clearing method to use When creating the receipt classes and methods, there are four primary considerations. First, determine whether receipts will be created manually, via a lockbox or through automatic receipt processing. When creating receipts manually or via lockbox, the receipt class Creation Method should be Manual. When using automatic receipts, the Creation Method should be Automatic. Second, determine which bank accounts are used for remitting receipts. Payments received in the form of checks or electronic payments, such as, bank account transfer or credit card payment, need to be remitted to the bank. These payments can be remitted directly or factored in return for cash. Cash payments do not need to be remitted to the bank. It is possible to enter several remittance bank accounts for each receipt method. However, one remittance bank account must be designated as the primary bank account for each currency used. Third, determine the minimum receipt amount before remitting a receipts to the bank. Receivables allows the deploying company to control the minimum receipt amount allowed to be remitted to a bank account by setting a minimum threshold. Lastly, Payments that are remitted to the bank must be cleared before they are available as cash. Users can choose to clear receipts either by using Receivables’ automatic clearing process or by Oracle Fusion Cash Management’s bank statement reconciliation. .

Customer Payments Implementation Overview - Receipt Classes and Methods – Key Decisions (2 of 2)
Special considerations for Automatic Receipts 1) Is customer confirmation needed? 2) How to group automatic receipts? 3) Receipt number same as transaction number? 4) When to prepare receipts? 5) Accept bank account transfer or credit card? 6) Map credit card error codes to corrective actions for automatic error handling? There are some additional considerations when setting up Automatic Receipts. 1) If there is an agreement with the customer that automatic receipts need to be confirmed by them before payment, the Require Confirmation flag must be set to “Yes”. To reduce overhead, Receivables system options provide the ability to specify a threshold amount that a receipt must exceed in order to require customer confirmation. 2) Automatic receipts can be grouped in several ways. There can be one receipt for each invoice, customer, customer site, customer or due date, or, customer site and due date. Note that regardless of the grouping rule specified here, payments using different instruments will always be in separate receipts. 3) Select the “Receipts Inherits Transaction Number” checkbox to enforce that the receipt number be identical to the invoice number when automatic receipts are created on a per-invoice basis. 4) Specify a value for Lead Days if it is desirable to begin processing invoices for automatic receipts before they are due. 5) Specify whether to accept electronic payments via either bank account transfers or credit cards for each automatic Receipt Method. 6) In the event of an error occurring during the processing of automatic receipts paid by credit card, it is possible for Receivables to automatically perform corrective actions based on the error code received from Oracle Fusion Payments.

Customer Payments Receipt Classes and Methods – Best Practices (1 of 2)
Business Scenario Best Practice Your enterprise has too many receipt classes and receipt methods adding to the maintenance costs Create similar receipt methods on the same receipt class Example: If the receipt class-level attributes are the same for two receipt methods, create the methods on one receipt class Similar remittance bank accounts on the same receipt method Your enterprise would like to utilize the Cash Management to clear receipts Use “By Matching” clearance method to automatically generate reconciliation accounting entries and post to general ledger Minimize the number of receipt classes and methods that are created in the system to maintain a clean and intuitive implementation. Whenever possible, create multiple receipt methods on the same receipt class if these methods share the same processing steps specified at the receipt class level. Likewise, try to create multiple remittance bank accounts on the same receipt methods if these bank accounts share the same receipt method attributes. A good starting point to consider is to have receipt classes and methods that allow the following types of receipts: 1) Cash payments that do not need to be remitted or cleared 2) Check and lockbox payments 3) Automatic receipts paid via bank account transfer requiring customer confirmation 4) Automatic receipts paid via bank account transfer not requiring customer confirmation 5) Automatic receipts paid via credit card requiring customer confirmation 6) Automatic receipts paid via credit card not requiring customer confirmation Having a receipt class that allows both standard and factored remittance provides extra flexibility and helps to minimize the number of receipt classes needed in the system. Clearing through Oracle Fusion Cash Management automatically generates reconciliation accounting entries which are posted to the general ledger.

Customer Payments Receipt Classes and Methods – Best Practices (2 of 2)
Business Scenario Best Practice Customer confirmation is required only for receipts greater than a certain amount Specify a confirmation threshold amount at the system options level to limit the number of receipts that need to be confirmed Minimize the cost of processing electronic payments Group multiple electronic payments into one automatic receipt using the “Number of Receipts Rule” Controlling costs of electronic payments for small amounts Specify a minimum receipt amount and group the payments for processing Streamline funds transfer error correction and limit manual intervention Map common credit card error codes to appropriate corrective actions Process payment on time if organization has a lengthy approval and confirmation process Specify a value for lead days to begin processing automatic receipts earlier Having customers confirm each automatic receipt is a time-consuming task that adds a variable to the flow of the business. Therefore, this level of scrutiny should be avoided for small receipt amounts. Processing cost to a merchant related to Automatic Receipts are high. To minimize this cost, define a Number of Receipts Rule base. For example, using the “One Per Customer” rule will create one automatic receipt for all invoices due for the customer with a common receipt method. This will help you reduce the number of receipts you create by paying multiple invoices by single receipt. Another way to minimize costs is to define a Minimum Receipt Amount so that receipts with smaller amounts are not created. This can be defined for a customer account, customer site, or a remittance bank account. If receipts are being created per invoice, enabling the “Receipts inherit transaction numbers” flag will make it easier to identify the receipt that is paying each invoice. If there is a lengthy process involved in approving and confirming automatic receipts, it is advisable to specify a value for Lead Days such that the processing of these receipts can start early. This allows the invoices to be paid closer to their due dates. Mapping common credit card error codes to corrective actions helps to streamline the overall automatic receipts process. The optimal mapping can be determined with time.

Lockboxes & Lockbox Transmission Formats
Customer Payments Lockboxes and Lockbox Transmission Formats – Key Decisions Lockboxes & Lockbox Transmission Formats Determine Whether to use AutoApply for lockbox processing If not using AutoApply, how to handle matching with invalid transaction reference post the partial receipt amount as unapplied reject the entire receipt What format the bank uses to transmit lockbox information What control file to use for processing bank transmitted lockbox information Here are some key decisions when implementing lockbox: Whether to use AutoApply for lockbox processing. And if not, how to handle invalid transaction references; The format the bank uses to transmit lockbox information; And the control file to use for processing lockbox information transmitted from the bank.

Customer Payments Lockboxes and Lockbox Transmission Formats – Best Practices
Business Scenario Best Practice Maximize automatic application hit rate Enable AutoApply in Cash Processing system options and on lockbox Processing of receipts with invalid transaction reference, if AutoApply is not used Leave the receipt as unapplied to allow the receipt to be applied to the valid transaction references instead of rejecting it altogether Default lockbox transmission format is not suitable for your organization and bank Modify the pre-defined template or create new Consider these best practices for lockboxes. Enable AutoApply in the Cash Processing system options and on lockbox to enable maximum automatic application rates. This will allow the system to utilize the set ups in AutoMatch and Application Exception Rules to accommodate various business scenarios. The features in AutoApply, AutoMatch and Application Exception rules allows users to provide as little or as much information as they deem prudent when receipts are created.

AutoMatch Rule Sets and Application Exception Rules
Customer Payments AutoMatch and Application Exception Rules – Key Decisions AutoMatch Rule Sets and Application Exception Rules Determine Optimal threshold scores, customer weight, transaction weight, and amount weights in the AutoMatch Rule Set setup Treatment of reference information padding based on organizational structure Optimal threshold and actions for handling over and under application (write-off, adjustments, on account application) Key decisions for the AutoMatch and Application Exception Rules are: The optimal threshold scores and weights to be used in the AutoMatch Rule Sets. The reference information padding based on the organizational structure Handling of over and under application <Product Name> <TOI Functional> - 56

Customer Payments AutoMatch and Application Exception Rules – Best Practices (1 of 2)
Set conservative thresholds and then test. Start with: High values for Customer Recommendation, Threshold Combined Weighted Threshold and Days of Closed Invoices Threshold Low value for Minimum Match Threshold Assign Customer Weight the highest value, followed by Transaction Weight, and then Amount Weight Initially - set conservative thresholds and perform test runs with existing bank files to determine how to tweak the setups further: Set high values for Customer Recommendation Threshold and Combined Weighted Threshold to avoid automatically accepting the wrong matches. Start with a higher value for Days of Closed Invoices Threshold until you gain more confidence in the receipt applications. All values can be decreased in the future as confidence increases. Set the Minimum Match Threshold to be lower initially to generate more recommendations, which will give you a better idea of the range of reference scores that are typically generated. This value can be increased in the future as you narrow down the range of scores with which relevant recommendations are generated Under Combined Weighted Threshold Details, Customer Weight should be assigned the highest value, followed by Transaction Weight, and then Amount Weight Applying to the wrong customer is more severe than applying to the wrong transaction Applying to the wrong transaction is more severe than applying the wrong amount These percentages can be adjusted based on the likelihood of receiving inaccurate reference information for each type

Customer Payments AutoMatch and Application Exception Rules – Best Practices (2 of 2)
Specify nominal amount thresholds when invoice amounts typically have little variance Specify percentage thresholds when invoice amounts tend to have large variances Business Scenario Best Practice Invoice amounts typically have little variance. Specify nominal amount thresholds and nullify the percentage threshold as follows: -If the condition contains the “less than” operator, enter a large value (e.g. 100%) for the percentage threshold. -If the condition contains the “greater than or equal to” operator, enter a small value (e.g. 0%) for the percentage threshold. Invoice amounts tend to have large variances. Specify percentage thresholds and nullify the percentage threshold as follows: -If the condition contains the “less than” operator, enter a large value for the amount threshold. -If the condition contains the “greater than or equal to” operator, enter a small value (e.g. 0) for the amount threshold. As a best practice, specify the thresholds for Application Exceptions Rule Sets as follows: Specify a nominal Amount threshold when invoice amounts typically have little variance If the company’s invoices all typically have the same amount, then use specific Amount. In this case, the Percentage field is not relevant. However, both Amount and Percentage are required in the system, so dummy values should be used in the Percentage field. For “less than” rules, enter 100% and for “greater than” rules, enter 0%. Specify percentage thresholds when invoice amounts tend to have large variances If the company’s invoices tend to have very different values (e.g. it could range from $100 to $100,000), then use the percentage value to arrive at the desired result. It does not make any sense to specify specific Amounts, only Percentages. Enter dummy values for the amount field by entering a very high amount for “Less than” rules and enter a very low amount for “greater than” rules.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Revenue Management

Revenue Management Overview
Supports revenue recognition by providing pre-defined invoicing rule and several Revenue Scheduling Rule types to meet various revenue recognition requirements of diverse business needs Support crediting of invoices with rules by creating appropriate revenue reversals as per the accounting standards Ensures that COGS and Revenue recognition occur in the same accounting period Support Mass Revenue Adjustments i.e. adjust multiple transaction lines across transactions from a single search Perform Revenue related setup activities directly from Revenue Management Workarea, secured by privileges The Fusion Revenue Management feature supports Revenue Recognition using invoicing and revenue scheduling rules Crediting of invoices with rules Cost of Goods Sold and revenue matching Mass Revenue adjustments Access to Revenue setups directly from the Revenue Management work area.

Revenue Management Key Decisions
Determine your enterprise requirement for revenue recognition schedule and create Revenue Scheduling Rules using the pre-defined rule types Use pre-defined invoicing rules to support receivables recognition In Advance: Recognizes receivable amount immediately In Arrears: Recognizes the receivable amount at the end of the revenue recognition schedule When defining a new revenue scheduling rule, make sure that you are choosing the correct type. There are 4 seeded types. Use the “Daily Revenue Rate, All Periods” type if you want Receivables to use a daily revenue rate to accurately calculate the revenue distributions across all accounting periods, including both full and partial periods. Use the “Daily revenue Rate, Partial Periods” type if you want Receivables to use a daily revenue rate to accurately calculate the revenue distributions across partial periods only. Use the “Fixed Schedule” type to prorate revenue recognition evenly over a predefined period of time. Use the “Variable Schedule” type to later specify, during invoice entry, the number of periods over which you want to recognize revenue for invoices to which you assign this rule. You can assign this type of revenue scheduling rule to invoices that you manually enter in the Transaction window or import into Receivables using AutoInvoice.

Revenue Management Best Practices (1 of 3)
To meet the strict revenue recognition and accounting standards, use Revenue Scheduling Rule types of Daily Revenue Rate, All Periods and Daily Revenue Rate, Partial Periods. These rule types provide you with the most precise revenue recognition schedule possible To defer revenue manually without using event based revenue management engine, use Deferred Revenue Scheduling Rules created by enabling the deferred revenue option and use RAM UI to recognize revenue manually Schedule the Revenue Recognition Process at regular intervals, to generate the revenue distributions Some of the Best Practices to meet strict revenue recognition guidelines are Use Daily Rules to generate the most granular and precise revenue distributions Manually defer revenue on an invoice by using deferred scheduling rules and Revenue Adjustments Manager to schedule as needed Schedule the Revenue Recognition Process to run at regular intervals to generate revenue distributions on invoices

Enable Revenue Policies only for the appropriate Business Unit Enable only the appropriate revenue policy based on the specific BU needs Additional Best practices are: Enable Revenue Policies only for the appropriate Business Unit If there are multiple Business Units, but only one is the main transactional Business Unit and has complex revenue management needs, enable Event Based Revenue Management. Setup revenue policies for that business unit only, so that Revenue Management Engine will ignore other Business Units during processing Enable only the appropriate revenue policy based on the specific Business Unit needs If you do not classify customers by credit worthiness, do not setup Credit Classification policy. Or, if you do not provide extended payment terms, skip setup Payment Term Threshold policy to reduce the processing time Use the credit classification policy and/or the payment terms threshold policy to make sure the Sales and Order Management departments are enforcing the enterprise credit policies and not unduly extending extended credit for non credit worthy customers. Deferring revenue on such transactions not only ensures that revenue recognition guidelines are followed but also put pressure on the sales people because deferred revenue will result in deferred compensation. In a conservative revenue recognition approach, it is advisable to defer revenue until payment is received for new customers. Once a customer establishes good payment history with the company, then the credit classification can be changed to “Established” so that revenue is not deferred. If the customer has Poor credit history, revenue will be deferred until payment is received. The Refund Policy Threshold is for future release. Example If you have multiple Business Units and only one is the main transactional BU and has complex revenue management needs, enable Event Based Revenue Management setup revenue policies for that business unit only so that Revenue Management Engine will ignore other BUs when processing Example If you do not classify your customer by their credit worthiness, do not setup Credit Classification policy, or If you do not provide extended payment terms, do not setup Payment Term Threshold policy to reduce the processing time

Setup Enterprise Revenue Policies to automate the revenue recognition decisions to avoid time consuming manual intervention because Revenue Management Engine uses these policies to make the defer or not-to-defer revenue decisions making every transaction adhere strict revenue recognition guidelines Use Revenue Contingencies and Contingency Assignment Rules to automate revenue recognition decisions for scenarios that are not covered by Enterprise Revenue Policies Use Optional Removal Event Attributes and Days to optimize the revenue management process and for timely revenue recognition Additional best practices are: Set Up Enterprise Revenue Policies to automate the revenue recognition decisions to avoid time-consuming manual intervention and mistakes Use Revenue Contingencies and Contingency Assignment Rules to automate revenue recognition decisions for scenarios that are not covered by Enterprise Revenue Policies

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Late Charges

Late Charges Overview Create late charges with different document type options: adjustment, debit memo, or interest invoice, for overdue transactions and/or late payments Calculate late charges with different calculation methods: options include interest tier and late charges; single interest rates, or fixed amounts Assess late charges with the option of using minimum invoice balance and/or customer balance Assess penalty charges on top of interest charges The Late charges features include: Generate late charges for overdue transactions and/or late payments. Include late payments if you want to consider additional charges when the late payment is applied. Use flat, simple, or compound interest rate calculation to generate interest charges for the transaction depending on the complexity of the interest rate requirements. Use fixed amounts for late charge calculations if a simplified fixed amount will suffice

Late Charges Key Decisions
Determine your enterprise Late Charge Policy Whether to assess Late Charges or not and what is Late Charge Calculation Method If No, then do not enable the Late Charge Option in Define Receivables System Options If yes, then you need to determine Whether to calculate late charges based on overdue invoices or/and late payments Late charge policy enforcement Level: Transaction Type or/and Transaction Level Late charges calculation methods: Interest Tiers with Charge Schedule (Flat, simple, or compound interest rate) Single Interest Rate (Flat, simple, or compound interest rate) Fixed Amounts You can use any of the following document types to present late charges to your customers Adjustment Debit Memo Interest Invoice (for EMEA) Determine if you need to enable late charges for your enterprise. •If not, then do not enable Systems Options for late charges If you need to enable late charges, consider: Whether to calculate late charges based on overdue invoices and/or late payments Whether to enforce the late charge policy at the Transaction Type and/or Transaction Level What Late charges calculation methods you would like to use And, what document types should be used to present late charges to customers

Late Charges Recommendation
We recommend that you generate late charge type of adjustment (easiest to track) to tie back to the original transaction unless you have a legal requirement to create Debit Memo or Interest Invoice Use Charge Type = Adjustment It is recommended to generate late charges as the type of adjustment to tie back to the original transaction unless you have a legal requirement to create Debit Memos or Interest Invoices.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss Receivables to General Ledger Reconciliation

Complete period end Activities:
Receivables to General Ledger Reconciliation Close Receivables Accounting Period Summary Flow Complete period end Activities: Import Transactions Import Receipts Create Credits and Adjustments Process Refunds and Deductions Adjust Revenue Generate Late Charges Record Accounting Write-off customer balances Use Receivables to General Ledger Reconciliation Report to Reconcile: Receivables Balances Receivables to General Ledger Close Accounting Period Reconcile Other Journal Entries There are many steps to close the receivables accounting period. The flow includes three basic areas: Processing and accounting the month-end transactions Reconciling to the general ledger And closing the period in the system to prevent further data entry Many of the month-end activities are the same as the activities performed regularly during the month, such as importing invoices and customer payments. You will also perform periodic activities such as refunds, late charge calculations, revenue adjustments and customer balance write-offs. All these activities should be performed one final time at the end of the period, be it monthly, quarterly or annually. Once this is done, set the receivables period to Close Pending to prevent additional entries during your reconciliation activities. You can re-open the period to make adjusting entries. After receivables is reconciled to your satisfaction, set the accounting period to Closed. This step will initiate a validation that confirms all accounting entries are balanced and transferred to the general ledger. The period can be re-opened when the period status is Closed in the event you need to make last minute adjustments. Analyze Activities to Create Manual Journals Note: Refer to Receivables Close Period and Write-off Customer Balances presentation for additional details

Receivables to General Ledger Reconciliation Overview
Streamline your process by automatically matching transactional activity to accounting entries Increase worker productivity with drilldown reports that automatically Identify exceptions Simplify intercompany and business unit reconcilation with special options Accommodate your organization based on which managers need access to the interactive reporting Reconcile by ledger, organization, balancing segment and natural account Compare Receivables, Sub-ledger Accounting and General Ledger Drilldown to supporting journal, transaction and differences detail reports This interactive report allows you to close your books faster by automating the labor-intensive process of matching receivables transactions to accounting entries and identifying the associated discrepancies. The reconciliation report can be instantly tailored to reconcile by business unit or intercompany activity by changing your selection criteria when data extraction is performed. Depending on how work is assigned in your organization, the receivables manager, the general accounting manager or both can access the reconciliation report. The Receivables to Ledger Reconciliation Report provides drill down to supporting journal and transaction detail reports for increased visibility to the appropriate information.

Receivables to General Ledger Reconciliation Key Decisions (1 of 3)
Reconcile by Business Unit: Decide which primary balancing segment values (PBSV) map to each Business Unit Create setup to default the appropriate PBSV Reconcile by Leger: PBSV mapping to business unit is not needed Users need security access to all business units assigned to that Ledger Which GL accounts to include: Assign the Financial Category attribute to the natural account segment When to Purge Extracted Data: Set the number days in the Receivables Reconciliation Data Purge Frequency profile option Example PBSV is the Company segment of the accounting flexfield Northwest Chocolates business unit is mapped to Company segment value 111 Setup Auto Accounting to use constant value 111 for Company segment Setup Receivables Activities offset account to use Company segment value 111 Decide how and what to reconcile, as well as who will do the reconciliation. Reconciling by Business Unit allows employees from different Business Units to balance their organization’s activity. If you reconcile by business unit, decide what Primary Balancing Segment Values to map to each Business Unit. The mapping between business unit and primary balancing segment value is implicit. This means it is not assigned in the system, but it does determine how you setup Receivables. For example, you will want the setup to generate default accounting using the appropriate Primary balancing segment value. In this example, the primary balancing segment is created as the Company segment of the accounting flexfield. You decide that the company segment value of 111 implicitly maps to Northwest Chocolates business unit. During setup, make sure that the value 111 is assigned to all the default accounting for the Northwest Chocolates business unit. You could setup invoice AutoAccounting such that it uses a constant value of 111 for the company segment value of each account; and assign the same value to the offset accounts on Receivables Activities. When reconciling by ledger, the mapping of primary balancing segment value to business unit is not necessary. But ensure that the security access for each business unit of the ledger is given to the user performing reconciliation. Whether you reconcile by ledger or business unit, you need to specify which accounts to reconcile. This is done by assigning the Financial Category attribute to each receivables natural account segment so they will be selected by the reconciliation data extraction program. The extracted data is maintained for a specified number of days before purging. Let’s take a closer look at financial category and data purge.

Financial Category designates the accounts to include on the Reconciliation Report. Receivables Unapplied and Unidentified Receipts Intercompany Financial Category is an attribute assigned to the natural account in the General Ledger Managing Value Sets task. This setup designates which accounts to include on the Reconciliation Report. Aside from your trade receivables account, you may also want to include the accounts for unidentified and unapplied receipts if they post to separate General Ledger accounts. If you plan to include Intercompany activity in your reconciliation, this attribute should be assigned to the Intercompany receivables account as well.

Purge old extract files based on number of days set in the Receivables Profile Option: Receivables Reconciliation Data Purge Frequency Set the interval so that it does not interfere with the reconciling timeline All extract requests that fall within this interval are saved and available to the Reconciliation Report The “Receivables Reconciliation Data Purge Frequency” profile option determines how many days to keep extracted reconciliation data requests. You can run the program as often as needed - each request will be maintained in a table. Every time the data extract program is run, the program refers to this profile value. If there are any requests in the table older than the number of days specified, these requests are automatically purged. All Reconciliation reports can be downloaded, so it is not necessary to keep the extract requests indefinitely. But be sure to use a timeframe that will not purge needed requests before reconciliation is complete. For example: The profile option is set to 30 days. If a reconciliation data extract request is run on January 1st, the request will not be purged when you run the extraction program again on January 29th. However, the January 1st request will be purged if you run the extraction program on February 1st.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Next, we will discuss the Delta with EBS.

Delta with EBS Key differences
Business Process Operational Configuration Bill Customers Role based Workarea AutoInvoice correction using ADFdi Business Unit SetID Fusion Setup Manager (FSM) Manage Revenue Mass Revenue Adjustments Process Customer Payments SmartReceipts Create Receipt Batch using ADFdi Receipt Assignment AutoMatch Rule Set Application Exception Rule Set Receivables Specialist Assignment Rules Manage Accounts Receivable Balances Review Customer Account Details The key differences for Fusion on the operation side are the role-based work areas, entry via ADFdi, mass revenue adjustments, SmartReceipts, Receipt Assignment and the Review Customer Account Details UI. The key differences for Fusion on the configuration side are the Fusion Setup Manager, SetIDs, Business Units, and set up related to the SmartReceipts feature.

Order Fulfillment Business Process at a Glance Business Process Mapping to Setup Activities Minimal Configuration to Make Receivables Operational Key implementation Concepts and Considerations Security in Fusion Receivables Business Unit, Ledger and Legal Entity in Receivables Reference Data Sharing across Receivables Business Units Accounting in Receivables Customer Billing Customer Payments Revenue Management Late Charges Receivables to General Ledger Reconciliation Deltas with EBS Additional Resources Lastly, we will show you some Additional Resources.

Non Embedded Help Documents
Additional Resources Trainings Define Receivables Configuration Define Funds Capture Configure Payment System Connectivity Receivables Accounting Define Sales Order Fulfillment Define Customer Receivables Close Period and Write-off Customer Balances Oracle Fusion Intercompany Implementation and Configuration Considerations Oracle Fusion Accounting Hub Implementation Training Oracle Fusion Subledger Accounting Implementation and Configuration Considerations Non Embedded Help Documents Define Customer Billing Configuration Define Customer Payments Define Revenue Management Configuration Define Accounts Receivable Balance Monitoring Setting Up for Receivables to General Ledger Reconciliation : Points to Consider Oracle Fusion Accounting Hub Implementation Guide Here are some additional training resources and help documents related to this document

Hello, I am from Receivables Product Management and in the next hour, I will discuss the Fusion Receivables Implementation and its configuration considerations.

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Hello, I am from Receivables Product Management and in the next hour, I will discuss the Fusion Receivables Implementation and its configuration considerations.

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Presentation on theme: "Hello, I am from Receivables Product Management and in the next hour, I will discuss the Fusion Receivables Implementation and its configuration considerations."— Presentation transcript:

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