Oracle Cash Management and Oracle Receivable

For Cash Management to work with Oracle Receivables, we need to establish the following in Cash Management:

· Set of Books

· Banks

· Receipt sources

· Receipt class (optional)

· Receivable activities (optional)

Set of Books

Set of Books must be assigned as system options in Oracle Receivables for each operating unit. We must also select these Sets of Books as the Sets of Books in the Oracle Cash Management System Parameters form.

Banks

We must configure bank accounts for banks that will be reconciled using Oracle Cash Management. We must mark the bank accounts with an account use of Internal—but not Customer or Supplier. We must also have the cash clearing, bank charges, and bank errors accounts set up in the GL Accounts alternative region of Bank Accounts. For remittance bank accounts, we need to assign the cash account and remittance account.

Receipt Sources

We need to define at least one receipt source that will be used for assigning numbers to receipt batches.

Receipt Class

If we are planning to create miscellaneous receipts or payments from Oracle Cash Management, we need to set up a receipt class for them. Miscellaneous payments are negative receipts, and are generated in Oracle Receivables, not Oracle Payables. The receipts class setup for this purpose utilizes a manual creation method and is set to not require remittance.

Receivable Activities

To create miscellaneous receipts or payments from Oracle Cash Management, we must set up a receivable activity.

A receivable activity set up for this purpose requires an account type of either bank or miscellaneous cash. For the miscellaneous cash type, we must either enter an account or select a distribution set.

Accounts Receivable Profile Options

For the Accounts Receivable values the following are the most critical profile options and used to control Oracle Receivable functionality

AR: Allow Transaction Batching - If you enter small volumes of manual transactions, it is not necessary to use batches for transactions. If you enter high volumes, you should use batching for transactions. You should always use batching for receipts since you get immediate feedback of what you have done and any potential problems.

AR: Cash Allow Actions - As part of the cash application process, the applier has the option to create adjustments (write-offs) and charge backs if you set this option to Yes. I recommend that you do that, you can always control the amounts they write-off using approval limits.

AR: Cash - Default Amount Applied - Always set so the default is the amount remaining on the receipt, not the amount remaining on the invoice. If you allow the receipt amount to default to the invoice balance, this allows you to apply more than you really have.

AR: Change Customer Name - In reality customers change their names and this is a valuable feature but, I recommend that you set it "Yes" only after to have been live for a few weeks. This is a good way to keep novice users from overlaying good names with invalid names, until the know what they are doing.

AR: Close Period - Run Collections Effectiveness - I recommend that you set this option to "No." Most users do not use this report and it will just slow the close process.

AR: Update Due Date - Allow change to due date. In rare instances it is desirable to change the due date on an invoice (for example, you have negotiated this with the customer). By setting this profile option to "Yes," you have the option of doing this. What this really does is to allow you to make your aging look better. Consider whether or not this is desirable in you business situation.

AR: Use Invoice Accounting For Credit Memo - In most cases, if you know the original invoice, it is desirable to offset the accounts that were used for the invoice when creating the related Credit Memo. This option allows you to do that.

How and When COGS account hit for transactions

Inventory Interface generates the cost of goods sold account for transactions when passing the transactions to Oracle Inventory. Receivables Interface generates a receivable account, a revenue account, a tax account, a freight account, and others, but not the cost of goods sold account. Ship confirm and pick release do not generate any accounts.

Account Receivable Profile Options

In this post i will share some interesting information about Oracle Receivable Module.this information gather form different sources (metalink,Google and my personal experience as well)
I will update this information as i got any further assistance from any source :)

AR: Allow Overapplication in Lockbox

This profile option controls how AutoLockbox handles receipts when the payment amount is greater than the balance due for a transaction. When a payment exceeds the balance due, AutoLockbox closes the transaction and leaves a negative balance due for the item if both of the following are true:

• AR: Allow Overapplication in Lockbox is set to Yes

• the open debit item's transaction type has Allow Overapplication set to Yes

If either of these are not true, AutoLockbox applies only enough to close the transaction and leaves the remaining receipt amount unapplied.

This profile option can be set by the system administrator at the site, application, and responsibility levels but cannot be updated by the user.

AR: Allow summary table refresh

Set this profile option to Yes if you want to allow the data contained within the transaction summary and open balance tables to be initialized or reset.

After the tables are populated, changes that occur to transaction balances are updated in the summary tables via business events.

Use this profile option for added security to ensure that the summary tables are refreshed only when necessary.

This profile option can be set by the system administrator or user at the application level.

AR: Allow Update of Existing Sales Credits

This profile option determines whether a user can update existing sales credits or if additional sales credit records need to be created to maintain an audit trail.

AR: Always Default Transaction Balance for Applications

This profile option determines the default amount applied value that displays in the Applications window, whether you enter applications directly or by using the Search and Apply feature. The default value includes discount amounts, where applicable.

If you set the profile option to Yes, then the default amount applied is the remaining transaction amount.

If you set the profile option to No, or if a null value exists, then the defaulting rule is:

1. If the unapplied receipt amount is greater than or equal to the transaction, then the default amount applied is the remaining transaction amount.

2. If the unapplied receipt amount is less than the remaining transaction amount, then the default amount applied is the unapplied receipt amount.

3. If the unapplied receipt amount is negative, then the default amount applied is the remaining transaction amount.

This profile option can be set by the system administrator at the site, application, responsibility, and user levels. The user can also update this profile option.

AR: Application GL Date Default

This profile option determines how Receivables determines the default GL Date when you apply receipts. Choose one of the following values:

• Later of Receipt GL date and Invoice GL date: Choose this value to use either the receipt GL date or the invoice GL date, whichever is later, as the default GL date for your receipt applications. This is the default value.

• Later of Receipt GL date, Invoice GL date, and Current date: Choose this value to use the receipt GL date, the invoice GL date, or the current date, whichever is later, as the default GL date for your receipt applications.

This profile option can be set by the system administrator at the site, application, and responsibility levels but cannot be updated by the user.

AR: AutoInvoice Gather Statistics

This profile option determines if the AutoInvoice Master program analyzes and gathers information about the interface tables each time AutoInvoice is run. Analyzing tables ties up system resources.

If the value for this profile option is set to Yes, or is null, AutoInvoice analyzes the interface tables and gathers statistics.

If the value is set to No, AutoInvoice does not analyze the interface tables.

This profile option can be set by the system administrator at the site, application, responsibility, and user levels. The user can also update this profile option.

AR: Bank Directory Source

This profile option is used by iReceivables for bank account transfer payments that make use of the Automated Clearing House (ACH) network. The profile option provides iReceivables with access to the E-Payment routing directory via the Federal Reserve Financial Services web site, a local file downloaded from this web site, or both. iReceivables uses the E-Payment routing directory to derive the name of the bank or financial institution from the routing number that a customer enters to pay an invoice using an ACH bank account transfer.

This profile option can be set by the system administrator at the site, application, responsibility, and user levels but cannot be updated by the user.

AR: Bank Directory URL

This profile option is used by iReceivables to identify the URL in Oracle iReceivables that will host the Federal Reserve Financial Services web site. This profile option is set when the AR: Bank DIrectory Source profile option is set to Web Services or Web Service First then Local.

This profile option can be set by the system administrator at the site level but cannot be updated by the user.