http://oracle-applications-forall.blogspot.in/p/account-receivables.html
1. Invoice
Invoice in AR is used to bill the customer for the goods and the services offered (rendered).
2. Debit Memo
Debit Memos in AR have the similar concept as that of an invoice. A debit memo could be used to invoice the customer for certain miscellaneous expenses incurred which were not included in the actual invoice for the product/service. Debit memo information is stored in ra_customer_trx_all, the type of transaction a particular row represents can be found out from the field class of ar_payment_schedules_all by linking the customer_trx_id field in the two tables.
Debit Memo is not created like credit memo. Debit memo is usually not linked to any other Invoice like credit memos; the whole idea behind creating a debit memo is to increase the customer outstanding balance.
Why create a debit memo instead of invoice then ?
Debit memo would mean that we billed you short in our invoice and with reference our previous transaction we are billing you with the remaining amount. You can enter the source invoice number in “Reference field”
3. Credit Memo
Credit Memos with negative amount are typically used for crediting the customer’s account with some balance. Credit memo information is also stored in ra_customer_trx_all
Credit memo can be created in two different ways; the idea behind creating a credit memo is to reduce the customer invoice balance.
Credit Memo can be created in two ways
1. Manually creating a credit memo like any other AR manual invoice.
i. Invoice Class: Credit Memo
ii. Invoice Type: OM Credit Memo, Credit Memo
2. Querying an existing AR Invoice and calling the Credit function from Actions menu
Query the AR Invoice for which you want to create a credit memo
i. Click on “Actions menu”
ii. Specify the “Reason for Credit Memo”
iii. Enter the Line % for Credit memo (Eg: 25% entered)
iv. Enter the Tax % for Credit memo (Eg: 10% entered)
v. Click the Save button
4. Deposit/Advance Creation Process and Apply to Invoices
Deposits are entered in the AR system to capture the customer advances and apply them to the AR invoices.
APPLY DEPOSITS TO AR INVOICES
Query or Enter the AR Invoice for which you want to apply the deposit
a. Click on Actions menu
b. Click Apply Deposit, Select the Deposit , Click Ok
c. Deposit is applied to the Invoice.
5. Lockbox
Auto Lockbox automatically creates receipts in Receivables using electronic information that your bank provides. Receivables let you specify the payment method for each Lockbox you define. Payment methods provide the default accounting information for receipts you create through Auto Lockbox. Receivables display active Lockboxes as list of values choices in the Submit Lockbox Processing window. You can disable a Lockbox by un-checking the Active box, and then saving your work.
Remittance - Payment
6. Adjustments
An adjustment as the name signifies is used for adjusting some of the amount in invoices. For e.g. if some insignificant amount is outstanding a particular invoice, it can be adjusted for the purpose of closing the invoice. Adjustment information is stored in the table ar_adjustments_all and can be linked to ra_customer_trx_all by the field customer_trx_id.
7. Aging buckets
Aging buckets are time periods we can use to review and report on your open receivables.
For example, the 4–Bucket Aging bucket that Receivables provides consists of four periods: –999 to 0 days past due, 1 to 30 days past due, 31–61 days past due, and 61–91 days past due. When you create your Collections reports or view your customer accounts, you can specify an aging bucket and ’as of date’, and Receivables will group the transactions and their amounts in the appropriate days past due period. You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket. However, all Receivables aging reports include a maximum of the first seven time periods for an aging bucket. If you want to report on additional time periods, you must create custom aging reports. You can also customize the aging buckets that Receivables provides.
8. Dunning letters
These are letters that are used to chase up receivables from customers. Receivables let you create dunning letters using two different methods. You can use one of the ten dunning letters that Receivables provides, or create your own, custom dunning letters in the Dunning Letters window. The ten dunning letters that Receivables provides include text files that you can customize to suit your dunning needs. Each of these letters (entitled USER1 – 10) includes two flat files: one for the body of your dunning letter text and the other for footer information. These files reside in the Receivables $AR_TOP/reports directory. For example, the dunning letter USER1 has a body file of ardl1b.txt and a footer file of ardl1f.txt. The ’b’ and the ’f’ identify these files as body and footer files, respectively.
9. Memo lines
Standard memo lines are lines that you assign to a transaction when the item is not an inventory item (for example, ’Consulting Services’). You can assign memo lines to debit memos, on–account credits, debit memo reversals, charge backs, commitments, and invoices. Receivables display your standard memo lines as list of values choices during credit memo entry in the Credit Transactions window and during invoice entry in the Lines window. When you create charge backs and debit memo reversals, you can either use the standard line that Receivables provides or enter your own. You can create an unlimited number of standard memo lines.
AR Technical Process
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Start with creating customers in Accounts Receivables. Customers in AR (or Accounts Receivables) can be of two types namely:
- Person
- Organization
As is evident from the names a customer type is defined as a Person when the customer is a single person and while creating a customer, which is organization, the customer type is kept as Organization. From the back-end point of view, a customer can be distinguished as a person or organization from the field party_type of the table hz_parties which is linked to the table hz_cust_accounts by the field party_id.
The main attributes of a customer are:
Customer Name (Stored as party_name in the table hz_parties, first name, middle name and last name are also present for a customer type as Person)
Customer Number (Stored as account_number in the table hz_cust_accounts)
Address: There can be multiple addresses defined for any customer and these addresses can be for various purposes for eg. Billing or Shipping the goods. Also, we can specify if a particular address is active at any point of time or not. The primary flag indicates whether a particular address is primary or not. Moreover, within an operating unit there can be only one primary bill to address (active) for any customer. Information regarding all this can be derived from the tables hz_cust_site_uses_all and hz_cust_acct_sites_all, where the cust_account_id of hz_cust_accounts acts as a foreign key.
