Accounts Receivables FAQs

1. What are the two key flexfields in Oracle Receivables and what is its purpose?
Location Flexfield: - Mandatory
This Flexfield is used for calculating the Location based tax (i.e.) Sales tax.
Territory Flexfield: (Max 20 segments) - Optional
This Flexfield is used for tracking the location in which the sale is taking place.
This Flexfield is for ascertaining the profitability of each of the sales location through generating reports.

2. What are the modules that are interfaced with Oracle Receivables?

i. General Ledger
ii. Order Management
iii. Fixed Asset
iv. Inventory

3. What is Auto invoice ? What are its related setup steps?

Auto invoice is the process used for importing the transactions from feeder modules like order entry, project accounting etc. and also from existing applications/systems if the receivable module is installed for the first time.

To invoke auto invoicing the navigations is - Interfaces à Auto Invoices
Run a program called Auto Invoice Master Program and specify the Invoice source and submit it.
If any error occurred during validation all the transactions will be stored in the below mentioned tables

RA_INTERFACE_ERRORS_ALL

4. What are the database tables involved for performing Auto invoice?

1. RA_INTERFACE_LINES_ALL
2. RA_INTERFACE_SALESCREDITS_ALL
3. RA_INTERFACE_DISTRIBUTIONS_ALL

5. What is an Application Rule set?

Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction's line, tax, freight, and finance charges.
Receivables provides the following application rules:
· Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.
· Line First - Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
· Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.
6. What is a flexible address format? How can a user-defined format be defined and where will this be affected?
Oracle Applications let you enter customer, supplier, bank, check, and remit–to addresses in country–specific formats. For example, if you have customers in Germany, you can enter German addresses in the format recommended by the Budapest, or you can enter addresses for customers in the United Kingdom in the format recommended by the Royal Mail.

This is done by using descriptive flexfields to enter and display address information in the appropriate formats. The flexfield window opens if the country you enter has a flexible address style assigned to it, which lets you enter an address in the layout associated with that country. If there is no address style associated with the country, Oracle Receivables uses the standard address format.

Attention: (Receivables users only) if you use a Sales Tax Location Flexfield that contains a segment other than country and wish to set up a flexible address format for your home country, every component in your Sales Tax Location Flexfield structure must also exist in your flexible address style for that country.

7. What do you mean by Auto Accounting?
It helps the Receivables to determine the general ledger accounts for transactions that are entered manually or import using Auto Invoice.
Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivables accounts, and Auto Invoice clearing (suspense) accounts using this information.
When you enter transactions in Receivables, you can override the default general ledger accounts that Auto Accounting creates.
You can control the value that Auto Accounting assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account.
You must define Auto Accounting before you can enter transactions in Receivables.
8. What are the different classes of Transactions available in Receivables?
(I) Chargeback (ii) Debit Memo (iii) Credit Memo (IV) Deposit (v) Guarantee (VI) Invoice
9. What are Transaction Sources?
Receivables uses transaction sources to control the transaction and transaction batch numbering, provide default transaction types for transactions in batch, and to select validation options for imported transactions. Receivables provides the following predefined transaction sources: MANUAL–OTHER, DM Reversal, and Chargeback.
10. What are Adjustment Approval Limits? Where & why are they used?
Approval limits, defined in the approval limits window are used for adjustments created in receivables and request for credit Memos initiated from I-Receivables. Receivables uses transactions that have a document type of Adjustment when we create an adjustment in the Adjustments, Submit Auto Adjustments and Approve Adjustments windows.
When you enter an adjustment that is outside the approval limit range, Receivables assigns the adjustment a status of pending until someone with the appropriate approval limits either approves or rejects it.