End-to-End AR Implementation in Oracle EBS R12
1. Introduction
Objective: To implement the Accounts Receivable module in Oracle EBS R12 to manage customer
invoices, receipts, and collections.
Scope: Customer setup, Invoice generation, Receipt processing, Collections and reporting.
Pre-requisites: Oracle EBS R12 instance, Chart of Accounts setup, Legal entities configured.
2. Key Features of AR
- Manage customer invoices and payments
- Tax calculation integration (e.g., with Oracle E-Business Tax)
- Multi-currency and Multi-Org support
- Aging reports for outstanding balances
- Integration with General Ledger (GL)
3. End-to-End Process
3.1 Setup Phase
- System Profile Options: Configure AR profiles such as 'AR: Transaction Batch Source'.
- Define Key Flexfields: Define Territory and Sales Tax Location flexfields.
- Define System Options: Configure accounting methods, tax settings, and currency options.
- Define Transaction Types: Configure invoice types and revenue account assignment.
- Define AutoAccounting Rules: Set up rules for revenue, receivables, and tax accounts.
- Define Payment Terms: Configure terms like 'Net 30 Days' or 'Net 45 Days'.
- Define Receipt Classes and Methods: Define receipt classes (e.g., Manual, Automatic).
- Define Customers: Set up customer accounts and payment details.
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End-to-End AR Implementation in Oracle EBS R12
- Tax Setup: Integrate with Oracle E-Business Tax for tax calculations.
3.2 Transaction Processing
- Create Invoices: Generate invoices manually or import via AutoInvoice.
- AutoInvoice Process: Validate and import invoices using interface tables like
RA_INTERFACE_LINES_ALL.
- Apply Credit Memos: Apply credit memos to transactions if needed.
3.3 Receipt Management
- Enter Receipts: Record manual or automatic receipts.
- Apply Receipts: Query open invoices and apply receipts to settle balances.
- Create Remittance: Submit receipts to banks.
3.4 Collections and Aging
- Generate Aging Report: Review outstanding balances.
- Collections Workbench: Follow up with customers and generate dunning letters.
3.5 Integration with General Ledger
- Create Accounting: Run the 'Create Accounting' program.
- Post to GL: Transfer journals to the General Ledger.
4. Key Tables Impacted
| Process | Key Tables |
|-----------------------|--------------------------------------|
| Invoice Creation | RA_CUSTOMER_TRX_ALL, RA_CUSTOMER_TRX_LINES_ALL |
| AutoInvoice | RA_INTERFACE_LINES_ALL |
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End-to-End AR Implementation in Oracle EBS R12
| Receipt Entry | AR_CASH_RECEIPTS_ALL, AR_RECEIVABLE_APPLICATIONS_ALL |
| Accounting Entries | XLA_AE_HEADERS, XLA_AE_LINES |
5. Reports and Queries
- Standard Reports: Aging Report, AR Reconciliation Report.
- Custom SQL Queries:
Query open invoices: SELECT * FROM RA_CUSTOMER_TRX_ALL WHERE STATUS = 'OPEN';
Query applied receipts: SELECT * FROM AR_RECEIVABLE_APPLICATIONS_ALL WHERE
STATUS = 'APPLIED';
6. Testing and Validation
- Test scenarios for invoice creation, receipt application, and GL integration.
- Perform reconciliation between AR and GL.
7. Go-Live Preparation
- Data migration: Open invoices and customer balances.
- User training and access setup.
8. Post-Go-Live Support
- Monitor open invoices and receipts.
- Resolve reconciliation issues between AR and GL.
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