AME (Approval Management Engine)

AME (Approval Management Engine) :

AME Stands for Oracle Approval Management Engine.

AME is a self service web application that enables you to define business rules governing the process for approving transactions in Oracle Application that have integrated with AME.

Uses of AME:
AME Can be used to derive list of approves based on user defined rules and maintain a history of approves statuses when :-

• Transferring employees from one division/cost center to another.
• Authorizing expenses.
• Paying invoices.
• Approval of Purchase Requisition.

Approvals : PO , Requisitions , Expense Report, Sales Quote , Item Approval , Service Contract Approval .... etc.

• Much more – review EBS Module Integration List.
• Business Processes for Transactions and approvals create transaction manage approvals and notifications.  Approve,Reject, Return
• Approval Polices: AME Rules Approval Policies translate to rules in AME and are made up of the following components.if and then transaction category in (Salary) salary increase Pct >15 require approvals up to the first two superiors rule conditions action types and attributes requires post approval from CIO.

Setup Details and Profile Options:

1. AME Responsibilities can be directly assigned in 11i in R12 & higher the responsibilities are assigned through roles.
2. AME : Installed  -Set this profile values to Yes at required application level.
3. HR: Defer Update After Approval : Set this profile value to 'No'  to avoid the status "Pending Approval" after transaction 'Approval.
4. AME : Append to list option on approve region : to control the requester /Initiators to append approves to the approval list . if set to the values 'No' would not all the user to append the list.  

it Supports more than 180 Transaction types.

AME Configure Steps:'

1) Assign AME Business Analyst Role. (From this we can add the AME Responsibility)

1.  Log into Oracle Application with SYSADMIN User.
2. Select User Management Responsibility.
3. Navigate to User Web page.
4. Search and Find the user you want to inherit the security Administrator and customer administrator Roles.
5. Click on Update Icon,
6. Click on Assign Role button.
7. Find and Choose Security Administrator Role.
8. Click on Apply.
9. Repeat the 6 to 8 Steps for Customer Administrator Role.

• The above rules are required when we want to assign user management roles to a specific user.
• In Order to assign AME rights , Just click on assign role and then Enter Approval% and  Search. You will Fine Five roles just check all 5 roles or select appropriate roles as per need.
• Approval Management Administrator.
• Approval Management System Administrator.
• Approval Management Process Owner.
• Approval Management System Viewer.
• Approval Management Business Analyst.

Workflow Background process will Run.

Clear the cache from Functional Administrator Responsibility.

check from the user and you can see AME Responsibility.

Below are the Responsibility you can see

1. Approval Management Administrator.
2. Approval Management Business Analyst.

2) Grant Access to Transaction Types. 

   

    Go to Functional Administrator.

    Click on Create Grant and Create Grant.

    Give Grantee Name.

    And give data security as AME_TRANSACTION_TYPE.

    Click on Next.

    and Give set as AME Calling Applications.

   Click on Finish.

        

3) Create Attributes.

4) Create Conditions.
5) Create Approval Group
6) Create Rules.
7) Setup Profile Options.

Check the profile option i set to Yes or no.
Profile : AME: Installed  ,
check it is in required application level.
Eg: Human Resource.

8) Update PO Approval for Document type.


AME --How to Assign a role

Login as ‘System Administrator’ (not a responsibility)
Navigate to ‘User Management >Users > Query the user and click Update > Search & Add the AM Admin roles as shown below

AME – How to grant transaction type access to users?

a. AME restricts access to transaction types using Data Security. Grant users access to the transaction types using the Grants page.

b. Login as ‘Functional Administrator’ responsibility & click on ‘Create Grant’

AME – How to grant transaction type access to users?

Setup Details – Configuration Variables

i. Important configuration variables are shown below:

ii. Please note the values for these variables can vary for each transaction type.

Setup Details – New Transaction Type

a. A new transaction type can be created using ‘Approvals Management Administrator’

responsibility

Setup Details – New Transaction Type

a. There are 4 steps in creating a new transaction type

b. The new transaction type can be created with different item classes like Header, Line Item, Cost Center, Project, etc depending on the requirement

Setup Details – New Transaction Type

a. There are 11 mandatory attributes whose values can be derived using SQL queries

Setup Details – Approval Process

a. The approval process for the newly created transaction type can be setup using ‘Approvals Management Business Analyst’ responsibility.

Setup Details – Attribute

a. Attributes are the base element for an AME Rule. Attribute values are retrieved from the EBS Applications database

b. AME is seeded with attributes relevant to the transaction type and the user can create new attributes in AME for use in AME rule

Setup Details – Condition

a. Conditions identify values and value ranges for some or all of the attributes available

b. AME rules refer to these conditions to determine if a particular rule is applicable for the specific document (requisition) being approved

c. There are 2 types of conditions – Regular & List Modifiers

Setup Details – Action Type

a. An action type is a collection of actions having similar functionality

b. Every action belongs to an action type. Action types are enabled or disabled for a particular transaction type

c. Voting method (or regime) decides how the responses to the action types are treated

Setup Details – Approve Group

a. It is an optional setup. Required only when additional approves are required for particular conditions The rules defined for the transaction can be based on Approve Groups, Jobs defined in HR setup, or Positions defined in HR setup Additional approves are added here

Setup Details – Rule

Rules specify approvers to be included in the approval list under specific conditions Rule category can be either approver or FYI

Setup Details – Rule

a. Actions are added from action type associated with the transaction type

Setup Details – Test Workbench

a. This is used to determine which AME rules apply to a specific document (requisition)

Test cases with values for various attributes can be saved for repeated use

Setup Details – Test Workbench

a. For real transaction test, requisition’s header ID need to be entered as transaction ID. This would pull values for all the attributes

Setup Details – Test Workbench

a. Final approver list is displayed along with the applicable rules

Setup Report

a. A setup report can be run from Business Analyst’s dashboard which would show all the attributes, conditions, rules used in the transaction type.

b. A sample output of the report is attached below

Purge transaction data using the concurrent program ‘Approvals Management Transaction Data Purge’

In 11.5.10 AME supports only employee-supervisor hierarchy. But in R12, position

hierarchy & FYI notifications are supported.

28. Implementation Guidelines – Approval Decision Tree

i. Model the decision tree based on the approval rules.

ii. Path from the root node to a leaf node represents a rule

29. Error Messages

i. Approval List could not be generated. Please contact your System Administrator to review AME rules setup.

ii. The procedure getNextPosition could not find parent position for : HR Positions:

MM400.Materials Manager

30. Limitations

a. Terminations (of the initiators) are not handled efficiently though AME would rebuild the chain of approval after each approval

b. Not possible to create custom AME responsibilities because of RBAC limitations other than the 2 seeded responsibilities – ‘Approvals Management Administrator', 'Approvals Management Business Analyst'

c. It is not possible to have ‘Notification TimeOuts with Reminders’ within AME.

32. Case Study

i. Requirements / Approval Policies:

ii. If the total requisition value is more than 25,000 USD, then it requires approval from 2

positions above the requestor. If it is less than 25,000 USD, then it can be approved by the requestor himself if he has enough approval authority

iii. If any of the requisition line has an item category ‘COMPUTER.PC’, then it needs to be approved by a specific user

iv. If any of the line item has an item category ‘COMPUTER.MISC’, then ‘IT Director’ position needs to be notified

v. Let us now see in the application, how these policies are modeled

List of AME Tables

select * from AME_ACTIONS

select * from AME_ACTIONS_TL

select * from AME_ACTION_TYPES

select * from AME_ACTION_TYPES_TL

select * from AME_ACTION_TYPE_CONFIG

select * from AME_ACTION_TYPE_USAGES

select * from AME_ACTION_USAGES

select * from AME_APPROVALS_HISTORY

select * from AME_APPROVAL_GROUPS

select * from AME_APPROVAL_GROUPS_TL

select * from AME_APPROVAL_GROUP_CONFIG

select * from AME_APPROVAL_GROUP_ITEMS

select * from AME_APPROVAL_GROUP_MEMBERS

select * from AME_APPROVER_TYPES

select * from AME_APPROVER_TYPE_USAGES

select * from AME_ATTRIBUTES

select * from AME_ATTRIBUTES_TL

select * from AME_ATTRIBUTE_USAGES

select * from AME_CALLING_APPS

select * from AME_CALLING_APPS_TL

select * from AME_CONDITIONS

select * from AME_CONDITION_USAGES

select * from AME_CONFIG_VARS

select * from AME_CONFIG_VARS_TL

select * from AME_EXCEPTIONS_LOG

select * from AME_FIELD_HELP

select * from AME_HELP

select * from AME_ITEM_CLASSES

select * from AME_ITEM_CLASSES_TL

select * from AME_ITEM_CLASS_USAGES

select * from AME_MANDATORY_ATTRIBUTES

select * from AME_REC_ACCESS_TRANS

select * from AME_RULES

select * from AME_RULES_TL

select * from AME_RULE_USAGES

select * from AME_STRING_VALUES

select * from AME_TEMP_DELETIONS

select * from AME_TEMP_HANDLER_STATES

select * from AME_TEMP_INSERTIONS

select * from AME_TEMP_OLD_APPROVER_LISTS

select * from AME_TEMP_TRANSACTIONS

select * from AME_TEMP_TRANS_ATT_VALUES

select * from AME_TEMP_TRANS_LOCKS

select * from AME_TEST_TRANSACTIONS

select * from AME_TEST_TRANS_ATT_VALUES

select * from AME_TRANS_APPROVAL_HISTORY

select * from AME_TXN_APPROVERS

Account Receivables (AR) in R12

Accounts Receivables is used to record the any type of customer transactions and Receipts accounts. This is coming into organization.

Order to Cash Cycle (O to C cycle):-

Sales Order Booking àPick Release àShip Confirm àAR InvoiceàReceiptàTransferred to GL.

AR Integration:-

ARàOMàAPàPAàCMàGL

Define the Item Validation:-It’s a common setup between the OM and AR Module

Navigation:-Setup>System Parameter>Values

Log into the Order Management

Select the Operating Unit Name

Scroll down and Place cursor on the “Item Validation Organization”

Select the Inventory Organization Name

Click on the “OK”

System Options:-System options are using to controlling the features at OU level.

Step 1:-Define the System Options

Navigation:-Setup>System>System Options

By default OU name will come

Select the Primary Ledger Name

Enter the Account details.

Enable the “Automatic Journal Import”

Click on the “Transaction and Customers” Tab.

Some of the check by default enabled.

Enable the “Purge Interface Table”

Enter the “Tuning Segments”

Auto Invoice:-It’s used to import the data from Order Management (or) Legacy System.

Tuning Segments:-It will be used in the auto Invoice program segments. 

Which are containing much data will select as a tuning segment.

Tuning segment data will be stored in the buffer tables. So that when we run the auto invoice import program. The data will be retrieved.

Click on the “Miscellaneous” Tab.

Enable the “Allow unearned Discounts”

Select the default country “India”

Change the Source of territory “Bill to Site”

Split Amount:-It’s used as a parameter in the collection indication report. This was used to identify the performance of the collector.

Discount Basis:-It’s used to determine the base amount for discount collection days in day’s sales outstanding collection

Source of territory:-It is used to default the territory information into invoice window.

Save and Close.

AR Key Flex Fields:-

There are two key flex fields in AR Module

1. Sales Tax Location Flex Field

2. Territory Flex field

1. Sales Tax Location F.F:-It’s a mandatory F.F.Which is used to calculate the Sales Tax.

Step 1:-Define the Sales Tax F.F

Navigation:-Setup>Financial>Flex Field>Key>Segments

We can use the existing Sales Tax location structure also.we can create new one also it required.

2. Territory Flex Field:-It’s an optional F.F.Which are mainly two purposes.

    1. To identify the Sales where it is taking place

    2. To capture the Revenue each location wise.

Step 1:-Define the Territory Flex Field

Navigation:-Setup>Financial>Flex Field>Key>Segments

Query the Territory Flex Field structure.

Note:-We can’t create the new territory structure,we have to use the existing structure only,but we can add the segments.

Click on the  “Segments”

Un-freeze the structure then add the segments,if required.

Open AR Periods:-

Navigation:-Control>Accounting>Open/Close Periods

Change the Status from “Not Opened” to “Opened”

Save and close.

Payment Terms:-Payment terms are used determine the payment scheduled date for Invoice, when customer has to pay the amount.

Step 1:-Define the payment term

Navigation:-Setup>Transaction>Payment Terms

Enter the Payment term name and Description

Enable the “Allow discount on partial payments”

Enter the discount basis

Select the Installment Options

Enter the 30 Days.

If organization wants give discount to customer,click on the “Discounts”

If customer paid full/partial amount with in 10days,10% discount is appicable.

Save and Close

Statement Cycle:-

Statement cycle will determine the when to send statement to the customers.

Step 1:-Define the Statement cycles

Navigation:-Setup>Print>Statement Cycle

Enter the Name and Description

Select the Interval

Select the operating unit

Enter the statement date

Note:-If we want to skip any month enable the check box.

Save and Close.

Remit to Address:-This is the organization address to the Receipts

Step 1:-Define the Remit to Address

Navigation:-Setup>Print>Remit to Address

Click on the “Create Remit To Address”

Enter the country name

Enter the address of company

Click on the “Apply”

Enter the Country Name “India”

Click on the “GO”

Click on the “Create”

Enter the country name

Enter the State name

Click on the “Apply”

Close the form.

Collectors:-

The person who is collecting money from the customers is called collectors.

Step 1:-Define the Collectors

Navigation:-Setup>Collections>Collectors

Enter the Collector Name and Description.

Save and close.

Application Rule Set:-

Application rule set will determine to apply the receipts amount against various invoices components. 

The Invoice components are Item or Line or Tax or Freight and Financial Charges.

Step 1:-Define the Application Rule Set.

Navigation:-Setup>Receipts>Application Rule Sets

Enter the Name and description

Enter the Seq and Rule

Select the Type and Tax Treatment.

Enter the Rules and place the cursor on Line.

Type should be Line and select the Tax Treatment

Save it.

Enter the Rules and place the cursor on Freight.

Type should be Freight and select the Tax Treatment

Save it.

Enter the Rules and place the cursor on Charges.

Type should be Charges and select the Tax Treatment

Save it.

Customer Profile Class:-

Profile classes are used to classify the customers based on the certain parameter. Customers can be certified by following ways.

1. Good Customers

2.Average Customers 

3.Below average Customers

Step 1:-Define the Customers Profile Class

Navigation:-Customer>Profile Classes

Enter the Name and Description

Select the payment term

Select the Cycle

Select the Collector

Click on the “Profile Class Amounts” Tab.

Select the Currency name

Enter the credit limit

Enter the Min Receipt Amount

Enter the Min Statement amount

Enter the Tolerance amounts

Save it.

In same manner add some more currencies also.

Save and close the form.

Customers:-

Either Person (or) Organization to whom sending the goods (or) services is called a customers.

There are three levels of information will contain the customer.

1. Customer Header   

2. Address Site   

3. Business Purpose.

Step 1:-Define the customer

Navigation:-Customer>Standard

Click on the “Create”

Enter the Organization Name/Customer Name

Select the Profile Class

Enter the Master Case “1”

Select the Country Name

Enter the address details of the customer.

Select the Operating Unit Name

Click on the “Add another Row”

Select the ship and Bill to Location also.

Bill to Party:-Bill to Party is nothing but customer Invoice receiving address.

Ship to Party:-It will determine the Goods delivery destination for customer address.

Dunning Site:-It’s a customer site where organization is sending the statements.

Sold to Party:- If we assign sold to party business purpose to the address site. This site we can use any business purpose.

Click on the “Apply”

Customer has been created.

Party Tax Profile:-

This setup we have to do in Tax Manager Responsibility.

Step 1:-Define the Party Tax Profile

Log into Tax Manager Responsibility

Navigation:-Parties>Party Tax Profile

Select the Party type is Operating Unit

Select the Party Name

Click on the “GO”

Click on the “Create Tax Profile”

Click on the “Apply”

Transactions:-

Transactions are nothing but a Invoices. So Transactions will be created by organization and send to 

the customer.

 There are three levels of information in the Transaction.

There are 7 types of Transactions in AR.

1. Invoice

2. Credit Memo

3. Debit Memo

4. Deposit

5. Guarantee

6. Charge back

7. Bills Receivables

Transactions can be created by two ways.

1    1.Manual 

2    2.Auto Invoice

       Transaction Types:-Transaction Type will determine the Features of Transactions.

Step 1:-Define the Transaction Type

Navigation:-Setup>Transaction>Transaction Types

Select the Legal Entity Name

Enter the Transaction Name and Description

Select the class

Select the Creation Sign

Select the Transaction Status

Select the Printing Option

Enter the Receivable and Revenue accounts.

Save it.

Transaction Source:-

Transaction source will determine the Transaction type and numbering for individual transactions and batch transactions.

Step 1:-Define the Transaction Source

Navigation:-Setup>Transaction>Sources

Select the legal entity name

Enter the Transaction Source name and Description.

Enter the number for Individual Transactions

Select the transaction Type.

Save it.

Auto Accounting:-

It is used to default accounting information at the time of Transaction Creation. It can be defined for various accounts. 

These accounts are like 

1.Receivables 

2.Revenue 

3.Freight 

4.Tax 

5.Unearned Revenue 

6. Unbilled Receivables 

7.Auto Invoice Clearing

Step 1:-Define the Auto Accounting

Navigation:-Setup>Transaction>Auto Accounting

Select the Type and then system will display below segment values.

Receivable account information system has to retrieve from the Transaction Types level.

Save it.

Save and close it.

AR Invoice/Transaction Creation:-

Step 1:- Create one Manual Invoice

Navigation:-Transactions>Transactions

Select the Source Name

Enter the GL Date

Select the customer name

After entered the above details.

Click on the “Line Items”

Select the Item or Enter the Description also, if no item.

Enter the Quantity and Unit Price.

Save and close this form.

Click on the “Complete”

Receipts:-

Recording the collection information in Oracle is called Receipts. 

Receipts can be created by two ways.

1        1. Manual 

       2. Automatic

There are two types of AR Receipts

1. Standard Receipts

2. Miscellaneous Receipts

Receivable Activities:-

It is used to default the accounting information for Receipt for various Activities.

The Receivable activities are 

1.Earned Discount 

2. UN-Earned Discount

Step 1:-Define the Receivable Activities (Earned Discount and Unearned Discount)

Navigation:-Setup>Receipts>Receivable Activities

Enter the Receivable activity name and description

Select the Type

Enter the GL Account.

Save it.

Define the Unearned Discount same way but select GL account as UN Earned 

Bank Accounts:-We can use the same bank which we defined in the AP modules or we can create the new bank account also.

Step 1:-Query the Existing bank and update the Receivable options.

Navigation:-Setup>Payments>Bank Accounts

Log into the Payable Module.

Select the Bank Account

Click on the “GO”

Select the Current Account

Click on the “Update Account”

Click on the “Account Access”

Click on the “Options”

Update the above accounts

Update the Receivable Activities.

Click on the “Apply

Receipt Classes:-

It will determine the Receipt creation method, Remittance Method, Clearance Method and Bank Account information.

Step 1:-Create the Receipt Class

Navigation:-Setup>Receipt >Receipt Classes

Enter the Name

Select the Creation Method

Enter the Remittance Method

Enter the Clearances method.

Enter the Receipt Method

Click on the “Bank Accounts”

Select the bank account and branch

Select the account details

Select the receivable activities.

Receipt Sources:-

It will determine the Receipt classes, payment method, Bank Accounts and numbering for Receipt 

Batches.

There are two types of Receipt sources

1. Manual

2. Automatic

Step 1:-Define the Manual Receipt Source

Navigation:-Setup>Receipts>Receipt Sources

Enter the Name and Description

Select the Receipt class

Enter the Last number

Step 2:-Define the Automatic Receipt Sources

Navigation:-Setup>Receipts>Receipt Sources

Note:-We can’t define the new automatic receipt source, which will be created at the time Replicate seed program. We have only one automatic receipt source for each operating unit wise.

Query the Automatic Receipt Sources

Customer Balances:-

Step 1:-Check the Customer Balances

Navigation:-Account Details

Receipts:-

Manual Receipts can be created by two ways

1. Individual or Single Receipts 

2.Batch Receipts

(1)Individual or Single Receipts:-

Step 1:-Create Receipt and against Transaction

Navigation:-Receipts>Receipts

Unidentified:-Receipt amount has been received but not identified the Customer

UN applied:-Received the Receipt amount and identified the customer but not identified the Customer Transaction Number

Applied:-Identified the customer and transaction number is nothing but an applied.

Step 2:-Verify the customer Balances.

Navigation:-Account Details

Step 3:-Verify the Transaction Balances

Navigation:-Transaction>Transaction

Debit Memo:-

It will be created by the organization and send to the customer. When the customer has to bare additional charges.

Step 1:-Create the Memo Line

Navigation:-Setup>Transaction>Memo Lines

Enter the Name and Description

Type is Line

Save it.

Step 2:-Define the Transaction Type

Navigation:-Setup>Transaction>Transaction Type

Save it.

Step 3:-Define the Transaction Source

Navigation:-Setup>Transaction>Sources

Save it.

Step 4:-Create the Debit Memo Invoice

Navigation:-Transaction>Transaction

Step 5:-Check the customer Balances

Navigation:-Account Details

Credit Memo:-

Credit Memo will be created by organization and send to the customer. If organization want to reduce the customer balance’s

 There are two types of Credit Memo's

 1. Credit Memo against Specific Transaction 2.On Account Credit Memo

Step 1:-Define the Memo Line

Navigation:-Setup>Transaction>Memo Lines

Save it.

Step 2:-Define the Credit Memo Transaction Type

Navigation:-Setup>Transaction>Transaction Type

Save it.

Step 3:-Define the Credit Memo Transaction Source

Navigation:-Setup>Transaction>Sources

Save it.

Step 4:-Assign the Credit memo Source to Invoice Transaction Source.

Navigation:-Setup>Transaction>Sources

Credit Memo against specific Transaction:-If organization wants to reduce the amount on specific transaction create credit memo against specific transaction.

Step1:-Create a Credit Memo against Transaction

Navigation:-Transaction>Transaction

Step 2:-Query the Invoice and verify the balances

Navigation:-Transaction>Transaction

On Account Credit Memo:-It’s a general Credit Memo, which is created against customer account.it will reduce the amount against customer balances.

Step 1:-Check the customer balances

Navigation:-Account Details

Step 2:-Create on account Credit Memo

Navigation:-Transaction>Transaction

Step 3:-Check the customer balances

Navigation:-Account Details

Deposit:-

It's an advance payment made by customer to the organization. Later it will be adjusted against future Invoices. It will come under commitment category.

Step 1:-Define the Deposit Transaction Type

Navigation:-Setup>Transaction>Transaction Type

Save it.

Step 2:-Define the Deposit Transaction Source

Navigation:-Setup>Transaction>Sources

Save it.

Step 3:-Create the Deposit Invoice

Navigation:-Transaction>Transaction

Step 4:-Create the Receipt against Deposit Invoice.

Navigation:-Transaction>Transaction

Step 5:-Check the Deposit Invoice Balances

Navigation:-Transaction>Transaction

Step 6:-Create one Invoice and apply the Deposit Invoice.

Navigation:-Transaction>Transaction

Step 7:-Check the Deposit Invoice Balances

Navigation:-Transaction>Transaction

Guarantee:-

It’s an Assurance from the customer to buying the goods or services from the organization. It will come under commitment transaction type.

Step 1:-Create a Guarantee Transaction Type

Navigation:-Setup>Transaction>Transaction Type

Save it.

Step 2:-Create a Guarantee Transaction Source

Navigation:-Setup>Transaction>Sources

Save it.

Step 3:-Create a Guarantee Invoice

Navigation:-Transaction>Transaction

Step 4:-Create One Invoice against with the reference of Guarantee Transaction

Navigation:-Transaction>Transaction

Step 5:-Create Receipt and apply to the Transaction

Navigation:-Receipts>Receipts

Step 6:-Verify the guarantee Transaction commitment balances

Navigation:-Transaction>Transaction

Charge back:-Charge back is nothing but a closing the old invoice and creating a new invoice for remaining amount with due date.

Step 1:-Define the Charge back receivable activity

Navigation:-Setup>Receipts>Receivable Activities

Note:-Query the Charge back Receivable activity and update the GL Account.

Click on the “F11”

Enter the Charge%

Click on the “Ctr+F11”

Enter the GL Account.

Save it.

Step 2:-Define the Charge back Transaction Type

Navigation:-Setup>Transaction>Transaction Type

Save it.

Step 3:-Define the Charge back transaction Source

Navigation:-Setup>Transaction>Sources

Note:-Charge back source automatically will be created by system, at the time of replicated seed data concurrent program.

Click on the “F11”

Enter the Char%

Click on the “Ctr+F11”

Select the Legal Entity Name

Select the Transaction Type

Save it.

Step 4:- Create One Invoice with Old date.

Navigation:-Transaction>Transaction

Step 5:-Create receipt with partial amount.

Navigation:-Receipts>Receipts

Step 6:-Query the Receipt and apply the charge back

Navigation:-Receipts>Receipts

Step 7:-Query the charge back transaction

Navigation:-Transaction>Transaction

Step 8:-Query the old Transaction and verify the balances

Navigation:-Transaction>Transaction

Invoice Rules and Accounting Rules:-

Invoice Rules:-It will determine the accounting period in which receivable amount is recognized. There are two types of Invoice Rules.

1. Bills in Advance

2. Bills in Arrears

1. Bills in Advance:-In case of Bills in Advance Invoice Rule Receivable will be recognized by the Receivable amount starting of the Project.

2. Bills in Arrears:-In case of Bills in Arrears Receivables will be recognize the Receivable amount end of the Project.

Accounting Rules:-It will determine the accounting period to distribute the Revenue amount based on the Ratio. This has been defined in the Accounting Rules.

There are Four Types of Accounting Rules

1. Fixed Schedule

2. Variable Schedule

3. Daily Revenue Rate all Periods

4. Daily Revenue Rate partial Periods

1.       Fixed Schedule:-In case of fixed schedule duration of the project and Revenue percentage of each accounting period will be defined at the time of accounting rule creation.

Step 1:-Define the fixed Schedule

Navigation:-Setup>Transaction>Accounting Rules

Enter the Name and Description

Select the Type

Select the Accounting Calendar Type

Enter the Number of Periods

Distribute the Percentage

Save it.

2. Variable Schedule:-If we use variable schedule accounting Rule, duration of the project will not be enter at the time of accounting rule creation. Duration of the project will be entering at the time of Invoice Creation. While creating the Variable account rule percentage of the revenue may aware or may not be aware.

Step 1:-Define the Variable Accounting Rule.

Navigation:-Setup>Transaction>Accounting Rules

Enter the Name and Description

Select the Type

Select the Accounting Calendar Type

Save it.

Invoice with Bills in Advance and Fixed accounting Rule.

Step 1:-Create one Invoice with Bills in Advance and Fixed Accounting Rule.

Navigation:-Transaction>Transaction

Step 2:-Run the Revenue Reorganization Program.

Navigation:-View>Request>Submit New Request.

Step 3:-Invoice with Bills in Arrears and Fixed Accounting Rule

Navigation:-Transaction>Transaction

Step 2:-Run the Revenue Reorganization Program.

Navigation:-View>Request>Submit New Request.

Invoice with Bills in Advance and Variable Accounting Rule.

Step 1:-Create one Invoice with Bills in Advance and Variable Accounting Rule.

Navigation:-Transaction>Transaction

Step 2:-Run the Revenue Reorganization Program.

Navigation:-View>Request>Submit New Request.

Transaction Batch:-

Transaction Batch is nothing but a grouping the multiple Invoices based on the certain parameter

Step 1:-Create Transaction Batch

Navigation:-Transaction>Batches

Note:-Closed status will be assigned to transaction batch when the difference count is showing “0”

Transaction Deletion:-

Only incomplete transaction can be deleted in AR Module.

Step 1:-Enable the “Allow Transaction Deletion” at system options

Navigation:-Setup>System>System Options

Enable the “Allow Transaction Deletion”

Save it.

Step 2:-Query the Incomplete transaction which you want to delete.

Navigation:-Transaction>Transaction

Receipt Batch:-

It is used to group the Receipts based on the certain parameter. 

There are 3 types of Receipt Batches.

1. Manual Regular 

2.Manual Quick 

3.Automatic.

1. Manual Regular:-In case of Manual regular Receipt Batch will update the customer balances as soon as save the Receipt batch.

Step 1:-Create Manual Regular Receipt Batch

Navigation:-Receipts>Batches

Step 2:-Come to Receipt Summary window; If you want create any Receipts.

2. Manual Quick:-If we use Manual Quick Receipt Batch in Receivables will not update the Customer balances as soon as save the Receipt. 

Receivables will update the customer balances when we run the “Post cash quick cash Program”. 

The post quick cash program will use the Auto cash rule set to apply the Receipt amount on Invoices.

Auto Cash Rule Set:-It will determine how the receipt amounts have to be applied on various invoices. Auto cash Rule set will be used by “Post Quick Cash Program”. 

Auto Cash Rule set contains the 5 Rules, which are used by program.

1. Clear Past Due Invoices 

2. Clear the Account 

3. Clear Past Due Invoices Grouped By Payment Term 

4. Match Payment with Invoice 

5. Apply to the Oldest Invoice First

Step 1:-Create the Auto Cash Rule Set

Navigation:-Setup>Receipts>Auto Cash Rule Set

Step 2:-Assign the Auto Cash Rule Set to Customer

Navigation:-Customer>Standard

Step 3:-Create the Manual Quick Receipt

Navigation:-Receipts>Batches

Miscellaneous Receipts:-Non Invoice related Receipts is called a Miscellaneous Receipts.

Step 1:-Define the Miscellaneous Receivable Activity

Navigation:-Setup>Receipts>Receivable Activity

Step 2:- Define the Miscellaneous Receipt

Navigation:-Receipts>Receipts

Receipt Reversal:-Receipt Reversal is nothing but a cancellation of the Receipts. There are 2 types of Receipts Reversal.

1. Standard Reversal 2.Debit Memo Reversal

1. Standard Reversal:-If we reverse the Receipt using the Standard Reversal all the Transactions which is associated to Receipt will be reversed.

Step 1:-Create One Invoice Transaction

Navigation:-Transactions>Transactions

Step 2:-Create the Receipt against the Transaction

Navigation:-Receipts>Receipts

Step 3:-Query the Invoice and verify the balances

Navigation:-Transactions>Transactions

Step 4:-Query the Receipt which you want to reverse.

Navigation:-Receipts>Receipts

Step 5:-Query the Invoice and verify the balances.

Navigation:-Transactions>Transactions

2. Debit Memo Reversal:-If you reverse the Receipt using the Debit Memo Reversal Method, Receivables will l create one new Debit memo Invoice Instead of Reversing the Receipt.

Step 1:-Create one Receipt Class (or) use the existing the receipt and enable the “Debit Memo’s Inherit Receipt Numbers”

Navigation:-Setup>Receipts>Receipt Classes.

Step 2:-Query the Receipt which you want to Reverse.

Navigation:-Receipts>Receipts

Step 3:-Query the Debit Memo, which system has created.

Navigation:-Transactions>Transactions

Remittance:-

Sending the Receipt information to Bank for collection is called a Remittance. 

There are four types of Remittance methods in Receipt classes.

1.Standard   

2.Factoring 

3.Standard & Factoring 

4.No Remittance

1. Standard:-In case of Standard Remittance Method Receipt Information Normally send to the bank and amount will be transfer to the organization account from the customer bank account.

2. Factoring:-In case of factoring Receipt Method organization will take alone from the bank showing receipt information as evidence.

Remittance can be done two ways

1. Manual 

2.Automatic

1. Manual Remittance:-Manual Remittance is nothing but a selecting receipts details manually and sending to Bank. 

There are 3 steps

1. Create 

2.Approve 

3. For mate

Step 1:-Create a Remittance Receipt Class

Navigation:-Setup>Receipts>Receipt Class

Step 2:-Create a Manual Remittance Batch

Navigation:-Receipts>Remittances

Step 3:-Query the Remittance Batch and Approve it.

Navigation:-Receipts>Remittances

Step 4:-Query the Receipt and verify the Status

Navigation:-Receipts>Receipts

Create the Customer Bank Account:-

Step 1:-Define the customer Bank Account

Navigation:-Customer>Standard

Query the Customer

Enter the Customer name

Click on the “GO”

Select the customer and click on the customer, it will be open.

Click on the “Details”

Click on the “Payment Details”

Click on the Bank Account Transfer “Create”

Note:-Create is nothing but a creating the new bank account,

           Add is nothing but a bank has been created, we can assign to this customer.

Select the Country name

Select the “Create New Bank”

Select the “Create New Branch”

Enter the Account number

Enter the Account name

Click on the “Apply”

Customer Bank has been created.

Write off and Adjustments:-

Both are doing adjustments only

Adjustment:-We can write off the bad debts amounts, which customer has not paid to the organization.

Step 1:-Enable the Write off amounts at system options level.

Navigation:-Setup>System>System Options

Enter the Write off amounts

Save it.

Step 2:-Create the Receivable activities

Navigation:-Setup>Receipts>Receivable Activities.

Define the Adjustment Receivable Activity

Select the Type is “Adjustment”

Save it.

Define the Write off Receivable Activity

Select the Type is “Receipt Write off”

Save it.

Step 3:-Define the write off limits to User.

Navigation:-Setup>Transaction>Approval Limits

Define the Write off limits for Adjustment and write off both for Clerk and Manager

Save it.

Step 4:-Create one Transaction

Navigation:-Transactions>Transactions

Step 5:-Create the Receipt less the Invoice Amount

Navigation:-Receipts>Receipts

Step 6:-Query the Receipt, which you want Adjust remaining amount

Navigation:-Receipts>Receipts

Write off:-

We can write off some of the excess amounts paid by customers using write off feature.

Step 1:-Create one Transaction

Navigation:-Transactions>Transactions

Step 2:-Create the Receipt More than the Transaction Amount

Navigation:-Receipts>Receipts

Step 3:-Query the Receipt, Which you want write off.

Navigation:-Receipts>Receipts

Refund:-

Refund feature is used to payback the excess amount or advance amount to the customer. This is the new feature in R12.

Step 1:-Define the Receivable Activity

Navigation:-Setup>Receipts>Receivable Activities

Select the Type is “Refund”

Save it.

Step 2:-Create One Invoice

Navigation:-Transactions>Transactions

Step 3:-Create the Receipt with Excess Amount

Navigation:-Receipts>Receipts

Step 4:-Query the Receipt which you want refund to customer

Navigation:-Receipts>Receipts

Step 5:-Query the AP Invoice which system has created automatically.

Log into AP Module

Navigation:-Invoices>Entry>Invoices

AP/AR Netting:-

The Payable and Receivables netting feature enables the automatic netting of payable and Receivables transactions with in a business group.

 The netting process automatically creates the payable payments and receivables receipts required to clear selected number of payable and receivables transactions.

Step 1:-Define the Netting Control Account

Navigation:-Setup>Financial>Flex Field>Key>Values

Create one AP/AR Netting Account

Save it.

Step 2:-Define the Netting Bank Account

Navigation:-Setup>Payments>Bank and Bank Branches/Bank Accounts

Create the Bank

Select the Country

Enter the Bank Name

Click on the “Finish”

Create the Branch Name

Enter the Country Name and Bank Name

Click on the “Continue”

Enter the Branch Name

Click on the “Finish”

Create the Bank Accounts

Enter the above details

Click on the “Continue”

Click on the “Next”

Click on the “Save and Next”

Enable the Netting Account is “Yes”

Click on the “Save and Next”

Click on the “Add Organization”

Click on the “Finish”

Step 3:-Query the Netting Receipt Class and assign the Bank Account

Navigation:-Setup>Receipts>Receipt Classes

Click on the “F11”

Enter the Name

Click on the “Ctr+F11”

Click on the “Bank Accounts”

Assign the Bank Details

Step 4:-Enable the “Allow payments of un related transactions” at system options level.

Navigation:-Setup>System>System Options

Enable the “Allow payments of UN related transactions”

Save it.

Step 5:-Create one Supplier and Customer

Navigation:-Supplier>Entry /Customer>Standard

Create the XXX Customer

Customer has been created.

Create the XXX Customer

Supplier has been created.

Step 6:-Create Netting Agreement from AP Module

Navigation:-Payments>Entry>Netting>Netting Agreement

Step 7:-Create one Invoice from AP and another Invoice from AR Module

Navigation:-Invoices>Entry>Invoices / Transactions>Transactions

Step 8:-Create Netting Batch

Navigation:-Payments>Entry>Netting>Netting Agreement

Transfer to GL:-

Step 1:-Run the Create accounting Program

Navigation:-View>Request>Submit New Request

Step 2:-Query the Transactions in GL Module

Navigation:-Journals>Entry