Copyright © Oracle Corporation, All rights reserved. Receivables

1-2 Copyright © Oracle Corporation, All rights reserved. Objectives After completing this lesson, you should be able to do the following: Describe the process by which Oracle Receivables generates customer invoices and enables you to track and manage customer receivables. Read and evaluate Oracle Receivable entity relationship diagrams. Distinguish the major tables by business function and name the major columns. Review the process by which Receivables data is transferred to the general ledger.

1-3 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-4 Copyright © Oracle Corporation, All rights reserved. Oracle Receivables Overview Collections Department Payment is Received Financial Report Generated Customers Place Orders Order is Processed Revenue Accounting Department Generates Invoice Invoices Transferred to General Ledger Receipts Transferred to General Ledger Processed by Accounts Receivable Department PAID

1-5 Copyright © Oracle Corporation, All rights reserved. Managing Customers Detail Entry Import OnlineReports Creditworthiness Payment Promptness Business Volume Profiles Customers Create Assign View Merge

1-6 Copyright © Oracle Corporation, All rights reserved. Entering Transactions Location—8% Tax Code—10% Tax Code and Location—18% Services Invoice Guarantee Deposit Create Multiple Invoices with AutoInvoice Tax Commitments Invoices with rules Enter Transactions for Single Invoice

1-7 Copyright © Oracle Corporation, All rights reserved. Entering and Applying Receipts Customer Check Bank Bank Account Receivables Create Data File Import Lockbox Update Account Balance

1-8 Copyright © Oracle Corporation, All rights reserved. Self-Service Web Applications i Receivables Web Browser Oracle Receivables Customers Salespersons and collectors

1-9 Copyright © Oracle Corporation, All rights reserved. iReceivables Features With iReceivables, customers and employees can: View account information Print transactions Dispute invoices by requesting a credit memo View the current status of a credit memo request Contact each other by View custom advertising that you add to the Web page

1-10 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-11 Copyright © Oracle Corporation, All rights reserved. Parties and Customer Accounts HZ_LOCATIONS HZ_PARTY_SITES HZ_CONTACT_POINTS HZ_RELATIONSHIPS HZ_ORG_CONTACTS HZ_PERSON_PROFILES HZ_ORGANIZATION_PROFILES HZ_PARTIES HZ_CUST_ACCOUNTS HZ_CUST_SITE_USES_ALL HZ_CUST_ACCOUNT_ROLES HZ_CUST_ACCT_SITES_ALL

1-12 Copyright © Oracle Corporation, All rights reserved. HZ_PARTIES A party is an entity that can enter into a business relationship. This table stores basic information about parties, which is true regardless of this relationship to the deploying company. Entities are modeled only once in HZ_PARTIES, regardless of how many roles they play. For example, if an organization is a customer, a distributor, and a partner, there is still only one record for them in HZ_PARTIES. Parties can be one of four types: –Organization - Oracle Corporation –Person - Jane Doe –Group – Doc Household –Relationship - Jane Doe at Oracle Corporation

1-13 Copyright © Oracle Corporation, All rights reserved. HZ_LOCATIONS A location is a point in geographical space described by an address and/or geographical indicators such as latitude or longitude. This table stores information about an address such as: street address and postal code. This table provides physical location information about parties (organizations and people) and customer accounts. Records in HZ_LOCATIONS can store delivery and postal code information about a location, store latitude and longitude, and can be used to determine the appropriate calculations and tax rates for sales tax and VAT calculations.

1-14 Copyright © Oracle Corporation, All rights reserved. HZ_PARTY_SITES This table links a party (HZ_PARTIES) and a location (HZ_LOCATIONS) and stores location- specific party information such as a person’s mail stop at their work address. One party can point to one or more party sites. One location can point to one or more party site. Party sites serve as the intersection between parties and locations, allowing for a many-to-many relationship between the two.

1-15 Copyright © Oracle Corporation, All rights reserved. HZ_RELATIONSHIPS This table stores information about relationships between two entities, for example, one party and another party. The SUBJECT_ID and OBJECT_ID columns specify the relationship that exists between two parties. For example, if the party relationship type is “Parent Of,” then a holding company could be the “SUBJECT_ID” in the relationship while one of its subsidiaries could be the OBJECT_ID. Creating a party contact causes a party relationship to be created. A party can have different relationships with one or more other parties that can change over time.

1-16 Copyright © Oracle Corporation, All rights reserved. HZ_ORGANIZATION_PROFILES This table stores a variety of information about a party of type Organization. This tables gets populated when a party of type ORGANIZATION is created. This table also contains data retrieved from Dun & Bradstreet using either the D&B online or batch download methods. Historical data is also stored in this table. Only a subset of the most current data from the table is copied to the HZ_PARTIES table.

1-17 Copyright © Oracle Corporation, All rights reserved. HZ_PERSON_PROFILES This table stores a variety of information about a party of type Person. For example, this table could contain the correct spelling and phonetic pronunciation of the person’s name. Some information in this table may also be entered into the HZ_PARTIES table. Only a subset of the most current data from the table is copied to the HZ_PARTIES table.

1-18 Copyright © Oracle Corporation, All rights reserved. HZ_ORG_CONTACTS This table stores a variety of information about an organization contact. The records in this table provide information about a contact position such as job title, rank, and department. This table is not used to store information about a specific person or organization. For example, this table may include a record for the position of Vice President of Manufacturing that indicates that the contact is a senior executive, but it would not include the name of the person in that position.

1-19 Copyright © Oracle Corporation, All rights reserved. HZ_CUST_ACCOUNTS This table stores information about customer/financial relationships established between a party and the deploying company. Because a party can have multiple customer accounts, this table may contain several records for a single party. For example, an individual person may establish a personal account, a family account, and a professional account for a consulting practice.

1-20 Copyright © Oracle Corporation, All rights reserved. HZ_CUST_SITE_USES_ALL This table stores information about the business purposes assigned to a customer account site. A customer account site can have multiple purposes, but each record in this table only specifies one purpose for a customer account site. For example, a customer account site may be assigned as a ship-to site in one record and as a bill-to site in another record.

1-21 Copyright © Oracle Corporation, All rights reserved. HZ_CUST_ACCOUNT_ROLES This table stores information about a role or function that a party performs as related to a customer account. For example, Jane Doe might be the Legal Contact for a specific customer account of Corporation ABC. Note that account ownership such as financial responsibility for an account is determined by the single party ID that is stored directly on the HZ_CUST_ACCOUNTS table.

1-22 Copyright © Oracle Corporation, All rights reserved. HZ_CONTACT_POINTS This table stores information about how to communicate with parties or party sites using electronic media or methods such as Electronic Data Interchange (EDI), , telephone, telex, and the Internet. Each medium or method should be stored as a separate method in this table. For example, the attributes of a complete telephone number connection should be stored in a record, while EDI information should be stored in a different record.

1-23 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-24 Copyright © Oracle Corporation, All rights reserved. Transaction Classes Chargeback Credit Memo Debit Memo Deposit Guarantee Invoice Bills Receivable

1-25 Copyright © Oracle Corporation, All rights reserved. Customer Invoices RA_CUSTOMER_TRX_ALL AR_PAYMENT_SCHEDULES_ALLRA_CUSTOMER_TRX_LINES_ALL RA_CUST_TRX_LINE_GL_DIST_ALL GL_CODE_COMBINATIONS MTL_SYSTEM_ITEMS

1-26 Copyright © Oracle Corporation, All rights reserved. RA_CUSTOMER_TRX_ALL This table stores invoice, debit memo, commit- ment, chargeback, bills receivable, and credit memo header information. Each row includes general invoice information such as customer, transaction type, and printing instructions. You need one row for each invoice, debit memo, commitment, and credit memo you create in Oracle Receivables and these are all distinguished by their transaction types stored in RA_CUST_ TRX_ TYPES_ALL.

1-27 Copyright © Oracle Corporation, All rights reserved. RA_CUSTOMER_TRX_LINES_ALL This table stores information about invoice, debit memo, credit memo, bills receivable, and commitment lines. It describes to the customer the charges that appear on these documents.

1-28 Copyright © Oracle Corporation, All rights reserved. RA_CUST_TRX_LINE_GL_DIST_ALL This table stores accounting distribution records for all transaction lines except bills receivable. This table must have one row for each accounting distribution.

1-29 Copyright © Oracle Corporation, All rights reserved. AR_PAYMENT_SCHEDULES_ALL This table stores all transactions except adjust- ments and miscellaneous cash receipts. A miscellaneous cash receipt is one that is not connected to a customer. All customer-related activity is logged in this table. This table is updated when an activity occurs against an invoice, debit memo, chargeback, credit memo, on-account credit, bills receivable, receipt, or commitments.

1-30 Copyright © Oracle Corporation, All rights reserved. RA_CUST_TRX_TYPES_ALL This table stores information about each transaction type for all classes of transactions, for example, invoices, commitments, and credit memos. Each row includes AutoAccounting information as well as standard defaults for the resulting invoices. The primary key for this table is CUST_TRX_TYPE_ID.

1-31 Copyright © Oracle Corporation, All rights reserved. RA_ACCOUNT_DEFAULTS_ALL This table stores AutoAccounting setup information. Each row represents a type of account for which AutoAccounting can derive a CODE_COMBINATION_ID.

1-32 Copyright © Oracle Corporation, All rights reserved. RA_ACCOUNT_DEFAULT_SEGMENTS This table is used to store AutoAccounting setup information. Each row in this table represents a segment of the Accounting Flexfield and information about how to derive the value of that segment.

1-33 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-34 Copyright © Oracle Corporation, All rights reserved. Bills Receivable RA_CUSTOMER_TRX_ALL AR_TRANSACTION_HISTORY_ALL AR_DISTRIBUTIONS_ALL AR_PAYMENT_SCHEDULES_ALL RA_CUSTOMER_TRX_LINES_ALL

1-35 Copyright © Oracle Corporation, All rights reserved. AR_TRANSACTION_HISTORY_ALL This table is a Bills Receivable-specific table containing the history of a transaction’s lifecycle. A new row is created each time there is activity on the transaction or the status of the transaction has changed. This table stores the header for the Receivables posting information.

1-36 Copyright © Oracle Corporation, All rights reserved. AR_DISTRIBUTIONS_ALL This table stores the accounting distributions for cash receipts, miscellaneous receipts, adjustments, credit memo applications, cash receipt applications, and bills receivable transactions.

1-37 Copyright © Oracle Corporation, All rights reserved. AR_DISTRIBUTIONS_ALL (continued) Foreign Keys Primary Key Table Primary Key Column Foreign Key Column

1-38 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-39 Copyright © Oracle Corporation, All rights reserved. Receipts AR_CASH_RECEIPTS_ALL AR_MISC_CASH_DISTRIBUTIONS_ALLAR_CASH_RECEIPT_HISTORY_ALL AR_DISTRIBUTIONS_ALL GL_CODE_COMBINATIONS AR_RECEIVABLE_APPLICATIONS_ALLAR_PAYMENT_SCHEDULES_ALL

1-40 Copyright © Oracle Corporation, All rights reserved. AR_CASH_RECEIPTS_ALL This table stores one record for each receipt entry. All cash receipts are logged in this table. Oracle Receivables creates records concurrently in the AR_CASH _RECEIPT_ HISTORY_ ALL, AR_PAYMENT_ SCHEDULES_ ALL, AR_DISTRI- BUTIONS_ALL, and AR_ RECEIVABLE_ APPLICA- TIONS_ALL tables for invoice-related receipts. For receipts that are not related to invoices, records are created in the AR_MISC_CASH_ DISTRIBUTIONS_ALL table instead of the AR_RECEIVABLE_APPLICATIONS_ ALL table.

1-41 Copyright © Oracle Corporation, All rights reserved. AR_CASH_RECEIPT_HISTORY_ALL This table stores all of the activity that is contained for the life cycle of a receipt. Each row represents one step. The status field for that row tells you which step the receipt has reached. Possible statuses are Approved, Confirmed, Remitted, Cleared, and Reversed.

1-42 Copyright © Oracle Corporation, All rights reserved. AR_RECEIVABLE_APPLICATIONS_ALL This table stores all accounting entries for cash and credit memo applications. Each row includes the amount applied, status, and accounting flexfield information.

1-43 Copyright © Oracle Corporation, All rights reserved. AR_MISC_CASH_DISTRIBUTIONS_ALL This table stores all accounting entries for miscellaneous cash applications. Miscellaneous cash cannot be invoiced, such as stock revenue, interest income, and investment income. AR_CASH_RECEIPTS_ALL stores one record for each payment, and this table stores one record for each distribution of the receipt.

1-44 Copyright © Oracle Corporation, All rights reserved. AR_DISTRIBUTIONS_ALL This table stores the accounting distributions for cash receipts, miscellaneous receipts, adjustments, credit memo applications, cash receipt applications, and bills receivable transactions.

1-45 Copyright © Oracle Corporation, All rights reserved. AR_RECEIPT_CLASSES This table stores the different receipt classes that you define. Receipt classes determine whether the receipt[s] belonging to this class are created manually or automatically, and whether the receipts go through the different steps in a receipt’s life-cycle.

1-46 Copyright © Oracle Corporation, All rights reserved. AR_RECEIPT_METHODS This table stores information about Payment Methods, receipt attributes that you define and assign to Receipt Classes to account for receipts and their applications. For automatically created receipts, a Payment Method defines the rules for creating these receipts. For manually created receipts, a Payment Method defines a user-definable type for the receipt. Each Payment Method is associated with a set of bank accounts, which forms the set of bank accounts you can assign to your receipt.

1-47 Copyright © Oracle Corporation, All rights reserved. AR_RECEIPT_METHOD_ACCOUNTS_ALL This table is an intersection of Payment Methods and bank accounts. For each receipt method, each bank account that can handle this Payment Method is defined as a row in this table.

1-48 Copyright © Oracle Corporation, All rights reserved. AR_RECEIPT_METHOD_ACCOUNTS_ALL (continued) The accounting entries that are used for each step of the life cycle of the receipt are also defined at this level, so they can vary by Payment Method and bank accounts.

1-49 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-50 Copyright © Oracle Corporation, All rights reserved. MRC Tables Used in Receivables GL_PERIOD_STATUSES GL_DAILY_RATES

1-51 Copyright © Oracle Corporation, All rights reserved. Agenda Overview of Oracle Receivables Reviewing Party and Customer Tables Reviewing Transaction Classes and Customer Invoice Tables Reviewing Bills Receivable Tables Reviewing Payment Tables Reviewing MRC tables Explaining Data Transfer to General Ledger

1-52 Copyright © Oracle Corporation, All rights reserved. Data Transfer to General Ledger Transfer by Operating Unit either in detail or in summary Journal Import Accounts Receivable General Ledger GL Interface

1-53 Copyright © Oracle Corporation, All rights reserved. Summary In this lesson, you should have learned to: Describe the process by which Oracle Receivables generates customer invoices and enables you to track and manager customer receivables. Read and evaluate Oracle Receivable entity relationship diagrams. Distinguish the major tables by business function and name the major columns. Review the process by which Receivables data is transferred to the general ledger.