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Kalyankar Tota (AR Support) Page 1 of 62
Integrating
Oracle E-Business Tax
With
Oracle Receivables
For
Location Based Tax
Release 12
KALYANKAR TOTA
Receivables Support Oracle Support Services
Kalyankar Tota (AR Support) Page 2 of 62
CHAPTER I: LEGAL ENTITY CONFIGURATOR - XLE .................................................4
Legal Entity.................................................................................................................................... 4 Create Legal Entity...................................................................................................................... 5
CHAPTER II: GENERAL LEDGER - GL.........................................................................6
Setup Primary Ledger................................................................................................................... 6 Step 1: Assign Legal Entities ...................................................................................................... 6 Step 2: Defining Primary Ledger ................................................................................................ 6 Step 3: Review and Save Accounting Structure.......................................................................... 7 Step 4: Setting Up Accounting Options for the Ledger............................................................... 7
CHAPTER III: RECEIVABLES - AR .............................................................................11
Setting Up Operating Unit.......................................................................................................... 11
Assigning Operating Unit to the Legal Entity........................................................................... 12
CHAPTER IV: SYSTEM ADMINISTRATION ................................................................13
Setups Required in System Administration .............................................................................. 13 Setting up Responsibilities for the New Operating Unit ........................................................... 14 Setup Mandatory Profile Options.............................................................................................. 16
CHAPTER V: ORDER MANAGEMENT - OM..............................................................17
Setup Item Validation Organization for the Operating Unit .................................................. 17
CHAPTER VI: TRADING COMMUNITY ARCHITECTURE - HZ...................................18
CHAPTER VII: E-BUSINESS TAX - ZX........................................................................19
Implementation Checklist for Oracle E-Business Tax............................................................. 19 Step 1 – Setting Up Tax Users .................................................................................................. 19 Step 2 – Setting Profile Option Values...................................................................................... 20 Step 3 – Setting Up Lookup Codes ........................................................................................... 20 Step 4 – Setting Up TCA Geography Hierarchy ....................................................................... 20 Step 5 – Setting Up Legal Entity............................................................................................... 20 Step 6 – Setting Up Operating Unit........................................................................................... 21 Step 7 – Setting Up Accounts and Accounting Information ..................................................... 21 Step 8 – Setting Up TCA Classifications .................................................................................. 21 Step 9 – Setting Up Oracle Inventory........................................................................................ 21
Party Tax Profile ......................................................................................................................... 22 Setup Party Tax Profile for Operating Unit............................................................................... 22
Location Based Tax Setup Mapping - Release 12 and 11i ....................................................... 24
Kalyankar Tota (AR Support) Page 3 of 62
Regime To Rate Flow .................................................................................................................. 25 Step 1: Tax Regime ................................................................................................................... 25 Step 2: Taxes ............................................................................................................................. 26 Step 3: Tax Status...................................................................................................................... 29 Step 4: Tax Jurisdictions ........................................................................................................... 30 Step 5: Tax Rates....................................................................................................................... 33 Step 6: Tax Rules ...................................................................................................................... 35 Step 7: Make Tax Available for Transaction............................................................................. 38 Step 8 – Setup Tax Accounting for AR and AP Transactions................................................... 39
Setup Configuration Owner Tax Options ................................................................................. 41
CHAPTER VII: RECEIVABLES – AR ...........................................................................43
Setup Receivables for Transactions and Receipts .................................................................... 43 AR System Options ................................................................................................................... 43 Transaction Type....................................................................................................................... 46 Transaction Source .................................................................................................................... 47 AutoAccounting ........................................................................................................................ 48 Approval Limits ........................................................................................................................ 50 Receivable Activities................................................................................................................. 51 Bank, Bank Branch and Bank Account..................................................................................... 53 Receipt Class, Payment Method................................................................................................ 56 Create Customers and Addresses .............................................................................................. 57 Run Geography Name Referencing Program............................................................................ 59 Entering Transactions................................................................................................................ 60
Kalyankar Tota (AR Support) Page 4 of 62
User Guide:
Oracle® Financials
Implementation Guide
Use the Legal Entity Configurator to search for existing legal entities, jurisdictions, and legal
authorities; create and update legal entities, establishments, registrations, legal addresses,
jurisdictions, and legal authorities; and create legal entities from existing organizations.
Important Terms in Legal Entity Configurator:
• Legal Entity
• Establishment
• Registration
• Jurisdiction
• Legal Authority
• Legal Address
• Legal Associations
Legal Entity
A legal entity is a clearly identified entity, which is given rights and responsibilities under
commercial law, through registration with the country's appropriate legal authority. These rights
and responsibilities are enforceable through the judicial system. A legal entity generally has the
right to own property and trade, and the responsibility to repay debt and comply with labor law.
Legal entities are responsible to account for themselves to company regulators, taxation
authorities, and owners according to rules specified in the relevant legislation.
The legal entity belongs to the organization's own corporate legal structure (enterprise).
The legal entity is referred to as the internal legal entity and is the initiator and owner of a given
transaction.
Chapter I: Legal Entity Configurator - XLE
Kalyankar Tota (AR Support) Page 5 of 62
Create Legal Entity
Application Legal Entity Configurator
Responsibility Legal Entity Manager
Navigation Home Page > Create Legal Entity
Kalyankar Tota (AR Support) Page 6 of 62
User Guides: Oracle General Ledger User’s Guide
Oracle General Ledger Implementation Guide
Oracle General Ledger Reference Guide
Setup Primary Ledger
Application General Ledger
Responsibility General Ledger Super User
Navigation Setup > Financials > Accounting Setup Manager > Accounting Setups
This is referred to as Set Of Books in Release 11i and prior releases.
Step 1: Assign Legal Entities
Step 2: Defining Primary Ledger
Chapter II: General Ledger - GL
Kalyankar Tota (AR Support) Page 7 of 62
Step 3: Review and Save Accounting Structure
Step 4: Setting Up Accounting Options for the Ledger
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User Guides: Oracle Receivables Implementation Guide
Oracle Receivables Reference Guide
Oracle Receivables User Guide
An organization that uses Oracle Cash Management, Order Management and Shipping Execution,
Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division,
or a department. An operating unit is associated with a legal entity. Information is secured by
operating unit for these applications. Each user sees information only for their operating unit. To
run any of these applications, you choose a responsibility associated with an organization
classified as an operating unit.
Setting Up Operating Unit
Application Receivables
Responsibility Receivables Manager
Navigation Setup > System > Organization > Organizations
Chapter III: Receivables - AR
Kalyankar Tota (AR Support) Page 12 of 62
Assigning Operating Unit to the Legal Entity
Application Legal Entity Configurator
Responsibility Legal Entity Manager
Navigation Legal Entities Page > Associated Business Entities Tab
Assigning the Operating Unit to the Legal Entity:
Kalyankar Tota (AR Support) Page 13 of 62
Setups Required in System Administration
Replicate Seed Data Program
Application System Administration
Responsibility System Administrator
Navigation Request > Run
Run Replicate Seed Data Program
Chapter IV: System Administration
Kalyankar Tota (AR Support) Page 14 of 62
Setting up Responsibilities for the New Operating Unit
Application System Administration
Responsibility System Administrator
Navigation Security > Responsibility Define
Responsibility for Tax Administrator
Responsibility for Payables Manager
Responsibility for Tax Manager
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Responsibility for Receivables Manager
Responsibility for General Ledger
Responsibility for Order Management
Kalyankar Tota (AR Support) Page 16 of 62
Setup Mandatory Profile Options
Application System Administration
Responsibility System Administrator
Navigation Security > System > Profile
Profile Options:
HR: User Type
MO: Operating Unit
GL Ledger Name
Profile Name GL AR AP OM EBTax
HR: User Type Yes
MO: Operating Unit Yes Yes Yes Yes
GL Ledger Name Yes Yes Yes Yes Yes
Kalyankar Tota (AR Support) Page 17 of 62
Setup Item Validation Organization for the Operating Unit
Application Order Management
Responsibility XYZ Order Management Super User
Navigation Setup > System Parameters > Values
This is a required setup step for any AR Implementation just as in Rel 11i .
Chapter V: Order Management - OM
Kalyankar Tota (AR Support) Page 18 of 62
User Guides:
Oracle Trading Community Architecture Administration Guide Oracle Trading Community Architecture Reference Guide Oracle Trading Community Architecture Technical Implementation Guide Oracle Trading Community Architecture User Guide
Please refer to the following White Paper on Metalink to setup Address Validation:
Note.554492.1 Setting Up Geography Hierarchy And Address Validation In Release 12
Chapter VI: Trading Community Architecture - HZ
Kalyankar Tota (AR Support) Page 19 of 62
User Guides: Oracle E-Business Tax Implementation User Guide
Oracle E-Business Tax User Guide
Oracle E-Business Tax Reference Guide
Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation
Guide
Implementation Checklist for Oracle E-Business Tax
Step # Description Mandatory / Optional
1 Setting Up Tax Users Optional
2 Setting Up E-Business Tax Profiles Optional
3 Setting Up E-Business Lookup Codes Optional
4 Setting Up TCA Geography Hierarchy Optional
5 Setting Up Legal Entity Mandatory
6 Setting Up Operating Unit Mandatory
7 Setting UP Accounts and Accounting Information Mandatory
8 Setting Up TCA Classifications Optional
9 Setting Up Oracle Inventory Optional
Step 1 – Setting Up Tax Users Set up your tax users and assign each user a tax-related responsibility. Oracle E-Business Tax
provides these seeded responsibilities:
Tax Manager: Assign this responsibility to users who will set up and maintain tax configuration data. The tax manager responsibility is the responsibility with the highest level of access to E-
Business Tax functionality.
If you want to include the GL Tax Options window, you must assign a data access set to the GL:
Data Access Set profile option under the Tax Manager responsibility.
Tax Administrator: Update and assign this responsibility to users who will provide E-Business Tax technical setup and support services. You can update this responsibility according to the
duties of each tax administrator user.
Oracle Tax Simulator: Assign this responsibility to users who test tax setups with the Oracle Tax Simulator.
You can also set up new E-Business Tax menus and responsibilities according to your
requirements.
Chapter VII: E-Business Tax - ZX
Kalyankar Tota (AR Support) Page 20 of 62
Step 2 – Setting Profile Option Values
Set values for E-Business Tax profile options to control the availability of certain tax options and
to maintain your Vertex or Taxware installation.
Note 466575.1 - What is the usage of E-Business Tax Profile Options
Step 3 – Setting Up Lookup Codes
Use the Application Object Library Lookups window to maintain existing lookup codes and
define additional lookup codes for E-Business Tax lookup types.
Note: E-Business Tax does not perform validation on updated or disabled lookups. If you want to
disable, update, or apply an end date to an E-Business Tax lookup type, please ensure that the
applicable values are not in use in the E-Business Tax setup.
Note 466578.1 - How To Update E-Business Tax Lookup Codes?
Step 4 – Setting Up TCA Geography Hierarchy
Set up and maintain the TCA geography hierarchy for each country where you have a tax
requirement. The TCA geography hierarchy provides a single reference source for all
geographical and location-based information for all E-Business Suite applications.
You use the TCA geography hierarchy in these cases:
• Taxes that are levied at a level lower than the country level, for example, state or provincial
taxes.
• Tax characteristics, such as the tax rate, vary at a lower level than the country level. You
must set up and maintain the TCA geography hierarchy before you can perform these tax-
related setups:
• Legal entities and establishments - Enter and maintain location information for first party legal entities and the first party legal establishments.
Refer to Chapter VI of this document on more information about TCA Geography Hierarchy.
Step 5 – Setting Up Legal Entity Use the Legal Entity Configurator to set up these parties:
First party legal entity - The legal entities that represent your company.
First party legal establishments - The legal establishments that have or require tax registrations,
either implied or explicit, from one or more tax authorities.
Legal authorities - The legal authorities that represent the tax authorities in the tax regimes
where you do business.
Refer to Chapter I of this document on more information about Legal Entity.
Kalyankar Tota (AR Support) Page 21 of 62
Step 6 – Setting Up Operating Unit
An organization that uses Oracle Cash Management, Order Management and Shipping Execution,
Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division,
or a department. An operating unit is associated with a legal entity. Information is secured by
operating unit for these applications.
Refer to Chapter III of this document on more information about Operating Unit.
Step 7 – Setting Up Accounts and Accounting Information
Set up accounts and accounting information for your tax transactions. You must set up and
maintain accounting information before you can set up tax accounts for the applicable operating
units. You set up tax accounts by operating unit for taxes, tax rates, tax jurisdictions, tax recovery
rates, and tax registrations of first party legal establishments
Review and complete these accounting setup tasks according to your requirements:
• Ledgers - Set up the chart of accounts, accounting calendar and currency for the primary ledger of your legal entities and, if applicable, any secondary ledgers.
• Legal entity balancing segments - Define balancing segment values for the legal entities involved in tax transactions.
• Accounting setup - Create an accounting setup for each legal entity with the ledger or ledgers that you created, and assign the applicable operating units to the primary ledger.
• Complete the accounting setup - Complete the details of the accounting setups.
Refer to Chapter II of this document on more information about Setting Up Ledger and related
setups.
Step 8 – Setting Up TCA Classifications
Set up TCA classifications to classify third parties for tax purposes. You can define a TCA class
category and class codes specifically for use in tax determination. You can also use standard
classifications, such as the US Standard Industrial Classification (SIC) codes, and assign these
codes a party fiscal classification.
You must set up and maintain TCA classifications before you can perform these tax-related
setups:
• Party fiscal classifications
• Party tax profiles
• Tax rules
Step 9 – Setting Up Oracle Inventory
Use the Inventory Item Category functionality in Oracle Inventory to model product fiscal
classifications. You can create either a single product fiscal classification type or a hierarchy of
product fiscal classification types that matches the segments of the Inventory category.
Kalyankar Tota (AR Support) Page 22 of 62
Party Tax Profile
A tax profiletax profiletax profiletax profile is the body of information that relates to a party's transaction tax activities. A tax profile can include tax registration, tax exemptions, configuration options, default information,
party fiscal classifications, tax reporting codes, and account tax details.
The tax registrationtax registrationtax registrationtax registration contains information related to a party's transaction tax obligation with a tax authority for a tax jurisdiction where it conducts business. The tax registration is part of the tax
profile of a first party legal establishment and a third party and third party site.
Set up tax profiles for the parties involved in your transactions. Parties include:
1. All legal entities, legal establishments, and operating units in your organization that have a
transaction tax requirement.
2. Your customers and suppliers and their locations.
3. Tax authorities that administer tax rules and regulations.
Setup Party Tax Profile for Operating Unit
Application E-Business Tax
Responsibility Tax Manager
Navigation Parties > Party Tax Profiles
Kalyankar Tota (AR Support) Page 24 of 62
Location Based Tax Setup Mapping - Release 12 and 11i
Sa les Tax
Loca tion
F le x fie ld
S tru c tu re
S tru c tu re qua lif ie rs
S a te C ityC oun ty
CA DLTX
D iffe ren t S ta te s V a lues
99456 to
99492
99562 to
99572
P os ta l C ode R anges
10% 15%
R ate P e rcen tage R a te P e rcen tage
Tax R eg im e
Taxes
Sa te C ityC oun ty
S ta tu s
CA DLTX
Ju risd ic tions
99456 to
99492
99562 to
99572
Tax Zones
10% 15%
Tax R a te C ode Tax R a te C ode
Loca tion B ase Tax S e t U p in 11 i Loca tion B ase T ax M ig ra tion in R 12
S tanda rd S tanda rdS tanda rd
S ta tu s S ta tu s
Kalyankar Tota (AR Support) Page 25 of 62
Regime To Rate Flow
Step 1: Tax Regime
Tax Regime is the level at which similar taxes governed by common tax rules or laws are
grouped together.
In our exercise, we will setup a Tax Regime for US Location Based Tax.
Other Examples for different Tax Regimes can be….
1) Excise Tax Regime in India
2) VAT Regime in UK
Define Tax Regime
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Tax Regimes
Kalyankar Tota (AR Support) Page 26 of 62
Assign Operating Unit To Tax Regime
Step 2: Taxes
A classification of a charge imposed by a government through a fiscal or tax authority.
In our exercise, we will setup Taxes for US Location Based Tax. (STATE, COUNTY and CITY).
Other Examples for different Taxes can be Excise Tax Regime in India or VAT Regime in UK.
Define Taxes
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Taxes
Kalyankar Tota (AR Support) Page 27 of 62
Setup similar Taxes for County and City to handle County and City Tax Jurisdictions.
Kalyankar Tota (AR Support) Page 29 of 62
Step 3: Tax Status
Tax Status is the taxable nature of a product or service. It is a way of grouping different tax rates
under one single tax. This provides additional granularity for reporting. There can be multiple
tax status under a tax but at least one has to be specified as a default status.
In our exercise, we will setup Tax Statuses State, County and City Taxes as Standard.
Other Examples for different Status can be Reduced Rated and Zero Rated
Define Tax Status
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Tax Statuses
Kalyankar Tota (AR Support) Page 30 of 62
Step 4: Tax Jurisdictions
Tax Jurisdiction is a geographic area for which tax is levied by a specific tax authority. There can
be multiple jurisdictions for a tax but at least one has to be specified as a default jurisdiction.
In our exercise, we will setup Jurisdictions for all the State, County and City locations defined in
Geography Hierarchy.
Example: Florida, California, Orange and Orlando.
Other Examples for Tax Jurisdictions can be
• Tax applicable uniformly in UK, will have a Tax Jurisdiction directly at Country level.
• Tax Jurisdiction for Goods and Services Tax in Singapore will be the Country of Singapore.
Define Tax Jurisdictions
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Tax Jurisdictions
Kalyankar Tota (AR Support) Page 33 of 62
Step 5: Tax Rates
The rate specified for a tax status for a period of time. Tax rate is generally expressed in terms of
percentage. In EBTax we can also express in terms of quantity. There can be multiple tax rates
under a tax status but at least one has to be specified as a default rate.
In our Business Scenario, applicable Tax Rate will be
Florida (State) – 6.0 %
Orange (County) – 0.5 %
Orlando (City) – 0.0 %
Other Examples for different Tax Rates can be -
• UK Standard VAT Rate 17.5%.
• Sweden Standard Rate VAT is 25%.
Define Tax Rates
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Tax Rates
Kalyankar Tota (AR Support) Page 34 of 62
Note: You should setup a Default Tax Rate For every Tax Jurisdiction when using Location
Based Tax.
Kalyankar Tota (AR Support) Page 35 of 62
Step 6: Tax Rules
These are the defaults Rules for Tax Calculation
Tax Status •• DDeetteerrmmiinnee TTaaxx SSttaattuuss ffoorr eeaacchh aapppplliiccaabbllee TTaaxx
Tax Rate •• DDeetteerrmmiinnee TTaaxx RRaattee
•• EEvvaalluuaattee EExxeemmppttiioonnss aanndd EExxcceeppttiioonnss
•• DDeetteerrmmiinnee TTaaxxaabbllee BBaassiiss ((nnoorrmmaallllyy lliinnee aammoouunntt)) Taxable Basis
Tax Calculation
•• CCaallccuullaattee TTaaxx ((nnoorrmmaallllyy == lliinnee aammoouunntt xx rraattee))
Regime Applicability
•• DDeetteerrmmiinnee wwhheerree tthhee ttrraannssaaccttiioonn iiss ddeeeemmeedd ttoo ttaakkee ppllaaccee
•• DDeetteerrmmiinnee AApppplliiccaabbllee TTaaxx RReeggiimmeess
Tax Applicability
•• DDeetteerrmmiinnee CCaannddiiddaattee TTaaxxeess
•• DDeetteerrmmiinnee PPllaaccee ooff SSuuppppllyy AAnndd TTaaxx RReeggiissttrraattiioonn
•• DDeetteerrmmiinnee AApppplliiccaabbllee TTaaxxeess && JJuurriissddiiccttiioonnss
Kalyankar Tota (AR Support) Page 36 of 62
Define Tax Rules
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Tax Rules
Kalyankar Tota (AR Support) Page 38 of 62
Step 7: Make Tax Available for Transaction
Final step before using the Tax is to check the option ‘Make Tax Available for Transactions’ on
the Tax Setup. You will not be able to check this option until you complete all the setups in
Regime to Rate Flow. If setup is not complete this is where the errors will appear to address
missed or incorrect setup.
Define Taxes
Application E-Business Tax
Responsibility Tax Manager
Navigation Tax Configuration > Taxes
Kalyankar Tota (AR Support) Page 39 of 62
Step 8 – Setup Tax Accounting for AR and AP Transactions
Set up default tax accounts for the taxes in a tax regime to post the tax amounts derived from your
transactions. The tax accounts you define serve as default accounting information for taxes, tax
rates, tax jurisdictions, and tax recovery rates.
You set up tax accounts under a primary ledger and operating unit. The calculated tax amounts
post to the specified operating unit accounts at transaction time. The actual account information
that the system uses depends upon subledger accounting rules. You can also define tax accounts
for tax rates, tax recovery rates, and tax jurisdictions. If you define tax accounts at the tax level,
these accounts default to the tax rate level for the same tax and operating unit. You can update
these default tax accounts in the tax rate setup.
Tax Accounts at TAX Level
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Tax Accounts at Tax Jurisdiction Level
Tax Accounts at Tax Rate Level
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Setup Configuration Owner Tax Options
The tax regimes that you create identify the taxes and the set of regulations that make up each tax
requirement. Configuration options identify the relationships between parties and tax regimes to reflect the tax requirements of each party.
Use configuration options to associate legal entities and operating units with their applicable tax
regimes. The association between a party and a tax regime includes these definitions:
Configuration for Taxes and Rules - The setup that the party uses for taxes, tax statuses, tax rates, tax recovery rates, and tax rules.
Application E-Business Tax
Responsibility Tax Manager
Navigation Defaults and Controls > Configuration Owner Tax Options
Click on Create Button…
Kalyankar Tota (AR Support) Page 43 of 62
User Guides: Oracle Receivables Implementation Guide
Oracle Receivables Reference Guide
Oracle Receivables User Guide
Setup Receivables for Transactions and Receipts
AR System Options
Define system options to customize your Receivables environment. During Receivables setup,
you specify your accounts, customer and invoice parameters, and how the AutoInvoice and
Automatic Receipts programs will run.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > System > System Options
Accounting System Options
Use the Accounting tabbed region to define your accounting flexfields. You can also choose
whether to use automatic journal import, enable header level rounding, and specify how many
days should be included in each posting cycle.
Chapter VII: Receivables – AR
Kalyankar Tota (AR Support) Page 44 of 62
Transactions and Customers System Options
Receivable lets you define several options for your invoices and use of the AutoInvoice program.
You can choose whether to allow updates to printed invoices and whether you can apply
payments to an unrelated customer's transactions. Receivables lets you define the segments to
use for Accounting Flex Tuning, System Items Tuning, and Territory Tuning during AutoInvoice.
You can also specify whether to purge the interface tables that you use for AutoInvoice, the
maximum number of bytes to use, whether SQL Trace is active for this program, and the
grouping rule to use for the revenue and credit transactions you create through AutoInvoice.
Claims System Options
If using Oracle Trade Management, then use the Claims tabbed region to indicate how to
evaluate, during Lockbox and Post QuickCash processing, your customers' remittances for claim
creation.
Kalyankar Tota (AR Support) Page 45 of 62
Miscellaneous System Options
Use the Miscellaneous tabbed region to specify your split amount and the number of days to use
for your Days Sales Outstanding (DSO) Calculation in the Collection Effectiveness Indicators
Report.
Kalyankar Tota (AR Support) Page 46 of 62
Transaction Type
Use transaction types to define the accounting for the debit memos, credit memos, on-account
credits, chargebacks, commitments, invoices, and bills receivable you create in Receivables.
Transaction types also determine whether your transaction entries update your customers'
balances and whether Receivables posts these transactions to your general ledger.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Transactions > Transaction Type
Invoice Transaction Type
Credit Memo Transaction Type
Kalyankar Tota (AR Support) Page 47 of 62
Transaction Source
Batch sources control the standard transaction type assigned to a transaction and determine
whether Receivables automatically numbers your transactions and transaction batches. Active
transaction batch sources appear as list of values choices in the Transactions, Transactions
Summary, and Credit Transactions windows, and for bills receivable in the Bills Receivable and
Bills Receivable Transaction Batches windows.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Transactions > Transaction Sources
Kalyankar Tota (AR Support) Page 48 of 62
AutoAccounting
Define AutoAccounting to specify how you want Receivables to determine the default general
ledger accounts for transactions that you enter manually or import using AutoInvoice.
Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue,
unbilled receivable, late charges, bills receivables accounts, and AutoInvoice clearing (suspense)
accounts using this information.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Transactions > AutoAccounting
Freight Account
Receivable Account
Revenue Account
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Approval Limits
Use the Approval Limits window to define approval limits for:
• Adjustments
• Receipt Write-offs
• Credit Memo Refunds
• Credit Memo Requests
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Transactions > Approval Limits
Kalyankar Tota (AR Support) Page 51 of 62
Receivable Activities
Define receivables activities to default accounting information for certain activities, such as
miscellaneous cash, discounts, late charges, adjustments, and receipt write-off applications. See:
Activity Types, page 6-30 for a complete list of activities.
Activities that you define appear as list of values choices in various Receivables windows. You
can define as many activities as you need.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Receipts > Receivable Activities
Adjustment Receivable Activity
Miscellaneous Receipt Receivable Activity
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Earned Discount Receivable Activity
Unearned Discount Receivable Activity
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Bank, Bank Branch and Bank Account
In Release 12
• Internal Banks are stored in Cash Management Tables. (CE)
• External (Customer Banks) are stored in iPayment Tables (IBY)
This is different from Release 11i and before where both Internal and External Banks where
stored in Payables tables (AP).
The following steps will help you define internal banks.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Receipts > Banks
Create Internal Bank, Bank Branch and Account…
Following Note describes some pre-requisite setups that you need to perform before you can
define Internal Bank Accounts.
NOTE.422909.1 How To Assign A Legal Entity To A Bank Account?
Kalyankar Tota (AR Support) Page 56 of 62
Receipt Class, Payment Method
Define receipt classes to determine the required processing steps for receipts to which you assign
receipt methods with this class. These steps include confirmation, remittance, and reconciliation.
You can specify any combination of these processing steps with one exception: if you confirm
and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables
automatically creates receipts assigned to this receipt class with a status of Cleared.
Application Receivables
Responsibility Receivables Manager
Navigation Setup > Receipt > Receipt Class
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Create Customers and Addresses
After these basic transactions, we are ready to create Customers for this Operating Unit.
Application Receivables
Responsibility Receivables Manager
Navigation Customers > Customers
Creating Customer KTOTA for FL.ORANGE.ORLANDO
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Run Geography Name Referencing Program
One last step before entering transactions is to validate or Locations created in
HZ_LOCATIONS. This program should only be run one time if your Address Validation is setup
to Error as explained in Chapter VI. Otherwise you may need to run this program on a periodic
basis to fix the bad locations that you may have.
Application Trading Community Architecture
Responsibility Trading Community Manager
Navigation Control > Request > Run
Kalyankar Tota (AR Support) Page 60 of 62
Entering Transactions
After these basic transactions, we are ready to test our setups by entering a Transaction in AR.
Application Receivables
Responsibility Receivables Manager
Navigation Transactions > Transactions
Entering Transactions for FL.ORANGE.ORLANDO
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