Key AR Transaction Setups:-
Youtube :- https://www.youtube.com/watch?v=9W0aDamCnT4&t=42s
Introduction
This document provides a comprehensive overview of setting up transaction types,
transaction sources, auto-accounting rules, document sequences, payment terms, and other
receivables configurations in Oracle Fusion. It also includes instructions for managing
accounting periods and creating transactions.
Transaction Types:-
FSM -> Financials -> Define Receivables Configuration -> Define Customer Billing Configuration -> Manage
Transaction Types
Definition: A transaction type is used to classify transactions, such as invoices, credit
memos, debit memos, and chargebacks.
o We have 5 transaction classes: 1. Bills receivables 2. Chargeback 3. Credit
memo, 4. Debit memo, 5. Invoice
o We have 4 Transaction status: 1. Open, 2. Closed, 3. Pending, 4. Void
o Generate Bill :-nothing but Print option if you want print just keep it as yes or
else no
o Open receivable : It will update supplier balances
o Allow fright : If it is enable while entering the transaction fright column will
appear
o Post to GL : If it is enable then only this transaction will transfer to GL
o Allow adjustment posting : customer amount (bad debt) can be adjust
o Natural application only: If you create the transaction with this transaction
type you can create the receipt up to transaction amount only.
o Allow over application : Means more than the invoice amount will enable
pg. 1
o Assigning transaction type: we can assign multiple Business units to
transaction type
Transaction Source:-
FSM -> Financials -> Define Receivables Configuration > Define Customer Billing Configuration > Manage
Transaction Sources
Definition: Transaction sources identify the source of transactions that you import into Oracle
Fusion.
Manage Auto accounting rules:-
Define AutoAccounting to specify how you want Receivables to determine the default general
ledger accounts for transactions.
FSM -> Financials -> Define Receivables Configuration -> Manage Auto Accounting Rules
Very basically we have to setup the rules for two accounts 1. Receivable account 2. Revenue account
Manage document sequence :- to provide unique numbering for each Transaction type,
we assign transaction type to Document sequence.
FSM -> Financials -> Define Receivables Configuration -> Manage Document Sequences
pg. 2
Manage Receivables Payment Terms :- we will define payment terms as require Payment
terms specify the conditions for payment, including due dates and discounts.
FSM -> Financials -> Define Receivables Configuration -> Manage Receivables Payment
Terms
Manage statement cycle:- It can provide the statement for life cycle depends on your setups
Collectors creation:-
Manage Receivables customer Profile Class
FSM -> Financials -> Define Receivables Configuration -> Manage Receivables Customer
Profile Class
By grouping the Payment terms, statement cycle and Collectors we create the customer
profile class. It is tells the status of the customer like he is good or bad in paying money. In
same as EBS here also we have one seeded data profile class
Reference data set for Customer site
Customer site creation time we have to select reference data set, common set we can’t use. In
fresh instances we have only two reference data sets those are Enterprise and common,
common we can’t use for customer creation so normally we create the reference data set or
we can take as enterprise set
Create Remit- to- Addresses
Defines where customers should send payments for their invoices.
Receivable activity
Receipt classes and method
Open period
Open Receivables Periods
Nav Receivables Accounts Receivable Task list and click on Manage Accounting
Period
Open the current period
pg. 3
Period Statuses
Closed: No unposted items are allowed; period cannot be closed if unposted items are
present.
Close Pending: Does not validate unposted items; transactions not allowed unless
period is reopened.
Future: Transactions can be entered but not posted until the period is opened.
Not Opened: No transactions allowed; period has never been opened.
Open: Transactions can be entered and posted.
Now we can create the Transaction
We can click on save it will be incomplete status
When ever we click on complete and review it will complete status
To make changes in transaction we have to mark as incomplete than only we can modify.
If you want to incomplete this you can until accounting
After running post to ledger it will to transfer to GL
Below is the sample
pg. 4
After running post to ledger we can see incomplete would be disable and status as final,
journal batch would be created along category of invoice (like sales invoice ).
Accounting entry would be
Receivables Account: Dr 108.75
Revenue Account: Cr 100
Tax: Cr 8.75
After posting, the transaction status will be final, and the journal batch will be created
with an invoice category.
Manage subledger accounting options :-
pg. 5
pg. 6
