2 Oracle Finance-Practical

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ORACLE FINANCIALS

VOL - II

PRACTICE GUIDE

ORACLE FINANCIALS J. Sureshraja M.com., MBA., CA (f).,

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ORACLE GENERAL LEDGER (11i)

Order management

Accounts Receivable

Fixed Assets Accounts Payable

Inventory Purchase Order

OM-AR-GL: Order to Cash Process

PO-AP-GL: Procure to Pay Process

Order Management, Purchase Order, Inventory = Distribution Modules

General Ledger receives information from sub ledgers.

(Cash Management-Reconciliation Purpose)

Flex Field:

It’s a field made up of sub-field or segment.

Type of Flex Field:

Key Flex Field Descriptive Flex Field

Key Flex Field:

It is an intelligent key code character made up of meaningful segments.(Identify an object)

Module Key Flex Field

AP No Key Flex Field


GENERAL LEDGER

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AR Sales Tax Location Flex Field & Territory Flex Field

FA Category Flex Field, Asset Key Flex Field & Location Flex Field

GL Accounting Flex Field

Descriptive Flex Field:

To track any additional information this is important for business.

For Example:

Order Form:

Order No: XX

Part No: COM-878-LTN

Descriptive: Computer-Monitor-Light Color [ ]

Part No: (Key Flex Field)

Category: COM Computer

Item: 878 Monitor

Color: LTN Light Colour

Segments Values Descriptive

In GL,

Date : Calendar(Accounting Calendar)

Particulars : Chart of Accounts(Organization Structure-Capture Info. Of Trans)

Amount : Currency(Functional Currency &Foreign Currency)

Setups>Financials>Calendar

Accounting Calendar- Setup+Financials+Calendars:

Types: Monthly/Quarterly/Half-Yearly (Fiscal-Financial Year)


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13 periods - Tracking Information from last year to current year.

Purpose of 13th Month-31.12.11 to 31.12.11/31.03.11 date information’s can be transfer to current year.

On last date of year 31st march, we cannot pass all the entries and we can pass the entries during next working month. However we can give the effective date is 31st March for the same transaction

Currency –Setup>Currencies>Define:

In Chart of Accounts, we have 4 major components.

1. Segment: Minimum 2 & Maximum 30

Flex Field Qualifiers: Identification tag for segments (5 Flex Field Qualifiers)

Company – Balancing Segment** Department- Cost Center Account-Natural Account** Inter Company-Inter Company Segments Tracking-Secondary Tracking Segment

** Mandatory

Setup>Financials>key> Segments

Setup>Financials>key> Values

Setup>Financials>key>Aliases

Setup>Financials>key> Rules

Value Set: Container for values and the related attributes for each segment of Flex Field

List Type: Pop list-0 to 10

List of Values-11 to 200

Long List-200>

Security: No Security

Hierarchies-Apply to both parent and child

Non-hierarchy-Not Apply to child and Apply to parent only

Value Validation: Independent (Default)

Translatable: Restricted


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Pair & Special: Based on Request

(Segment can have maximum size is 25 only & GL is an independent validation type)

Dynamic Insert:

It allows all new combinations of segment values, which we created.

Rollup Groups: Grouping a parent value use for reporting purpose

Segment Qualifiers: Identification tag for values

2.Values:

Setting values for structure (KR COA- Karthik Chart of Accounts)

Periods Journal Posting

Open Y Y (Pass Journal Entries & Posting)

Closed X X (No Journal Entries & Posting)

Permanently Closed X X

Never Opened X X

Future Y X (Pass Journal Entries & No Posting)

3.Rules:

Cross Validation: Setup+Financials+Flexfield+Key+Rules

Avoid illogical combinations.

It controls the combination of segment values that you create when you enter the value in flex field window.

Security Rule: Setup+Financials+Flexfield+Key+Security+Define

Restrict the user to enter data at the responsibilities level.

Restrict data entry an online enquiry to specific values by using flex field security rule.

System hides the values when user tries to enter segment value.

It limits the access of different segment values for different responsibilities.


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After freezing the segment values (set up), make it compile.(Finished)

If we can give security rights to parent, we cannot access child codes. GL

4. Aliases:

It makes the functions in shortest way like a single alphabet. It automatic picks up the entire code.

Example: R- Rent

Default Accounts in Set of Books:

Retained Earnings Account

: Difference between Revenue & Expenses transfer to Retained Earnings (Mandatory)

Encumbrance Account : Temporary block of funds

Suspense Account : Difference will be posted (Dr/Cr)

Translatable Adjustment Account

: Functional Currency to Foreign Currency (Exchange profit/Loss Transfer to this Account)

Net Income Account : Income – Expenses

Rounding Difference Account

: Rounding the decimal points

Oracle General Ledger - It’s basically used for Adjustments and Apportionment only against payables , receivables and fixed assets.

Creation of Category:

Setup+ Journal + Categories

Category: KR

Description: KARTHIK Group of Companies

Creation of Company:

Setup + Financials +Flex Fields+ Key+ Values

Application : ORACLE GENERAL LEDGER

Title : Accounting Flex Field


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Structure : Operating Accounting Flex

Segment : Company

New Company:

Value: 33

Translated value: 33

Description: KR Group of Companies

Child Value: 51 to 52 & changed that parent company in testing database

We can move these child values to some other companies.

Segment Qualifiers for Created Company: Allow Budgeting – Yes & Allow Posting – Yes

We cannot enter a journal for parent company if child value defined.

After creation of category and company, we can create a journal entry.

Entering Journal:

Journal: KRJE1

Category: KR

Account: 33-000-7110-0000-000 = US$100,000 (Dr.) 7110 – Advertising

33-000-2210-0000-000 = US$100,000 (Cr.) 2210 - Accounts Payable

After entering the data’s. Click Check Funds – Reserve Funds

Status – Select for Posting

F11 Re-query – Paste the journal name and click Control F11 – Post it

Post it and view journal from Tools- Accounting (T- Accounts)

Reversal of Journal:

Review the Journal and select the month (Current Period/Entered Period)

Click Reverse – Status: Processing

Re query it and paste the journal number – Status: Reversed

GL Accounting Cycle:


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Security Rule:

Setup>Financials>Flex Field> key > Security> Define

Setup>Financials>Flex Field> key > Security> Assign

DEFINE:

For defining security rule, we have to enable the security rule in segment.

Setup+ Financials+ Flex Fields +Key + Segments

F11 – Control F11 (Oracle General Ledger – Accounting Flex Field)

Select Operating Flex Field – Click Segments – Select Department – Open

Name: Department

Enable: Security

Now, we can define the security rules.

Application ORACLE GENERAL LEDGER

Title Accounting Flex Field

Structure Operating Accounting Flex Field

Segment Department (For Defining Security Rules, Select Department only)

Assigning security rules to department wise:

Name: (We can give name in security rules)

Department Security- Department is restricted to 110 through 130

Single Department- Department is restricted to only department 110


Consolidation Balances

Review Report

Close Period

Translation

Revaluation

Open Period

Enter/Import Journal

Review Posted Journal

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Elements: (Department Security)

Include: 000 to ZZZ (IncluKRg all the department s)

Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments)

Exclude: 131 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 to 130 only)

Elements: (Single Department)

Include: 000 to ZZZ (IncluKRg all the department s)

Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments)

Exclude: 111 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 only)

ASSIGN:

Setup> Financial> Flex Fields> key> Security> Assign

Application : ORACLE GENERAL LEDGER

Title : Accounting Flex Field

Structure : Operating Accounting Flex

Segment : Department (Defined Security Rules to be Assigned)

Find – F11- Control F11

Select: Title- Accounting Flex Field & Operations Accounting Flex

Select: Structure- Operations Accounting Flex

Here, applications automatically generated and we have to fix the responsibility and defined name to that responsibility – Save it.

Therefore, the General Ledger Super User (Department) restricted to use the 100 through 130

Therefore, the General Ledger User (Single) restricted to use the 110 only

This is the security assigning procedure.

Cross Validation: Setup>Financial>Flex field>Key>Segments

Just making to avoid “illogical combinations” as per accounting system.

(To avoid illogical combinations)

In Segment,


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Control F11- Application: Oracle General Ledger Flex field title: Accounting Flex Field

Check whether Cross validate Segment check box enable or not – Make it Enable. GL

Setup+Financial+Flexfield+key+Rules

In Structure- F11- Type Op%-Control F11

Captured: GL- Acc FF – Operations Accounting Flex- Vision Operations Accounting Flex Field

In Cross Validation Rules, define the cross validation rule. (FF Segment- For example 3 entities)

Account Company Legal

For each segment, we can assign the cross validation rules.

Account: (Create) & Error Segment: Account

Error Message: Account – balance Sheet (Assets, Liabilities & O/E) must be used with department 000 (Balance Sheet) – This is an error message display when we enter illogical combinations as we defined.

Elements:

Type From To

Include - 00-000-0000-0000-000 zz-zzz-zzzz-zzzz-zzz

Exclude - 00-00-1000-0000-000 zz-599-1699-zzzz-zzz

Exclude - 00-001-1700-0000-000 zz-599-3999-zzzz-zzz

Exclude - 00-601-1000-0000-000 zz-zzz-1699-zzzz-zzz

Exclude - 00-601-1700-0000-000 zz-zzz-3999-zzzz-zzz

Company-Department-Account-Sub Account-Product

Here, first we have included everything (zzz), and then we have excluded certain accounts from this department to this department as defined.

(Making end user avoid entering unnecessary departments and accounts due typical error and allow him to enter the accounts with some restrictions)

Company: (Create) & Error Segment: Account

Error Message: Company- Department 730 can only be used with Company 01


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This is an error message display when we enter illogical combinations as we defined

Elements:

Type From To


Exclude - 02-730-0000-0000-000 02-730-zzzz-zzzz-zzz

Company – Department – Account – Sub Account – Product

Here, first we have included everything (zzz), and then we have excluded department 730 from Company 01. It means, this 730 department can only be used with company 01.

(Making end user should not enter this 730 department in company 02 and allow him to enter 730 departments with company 01 only)

Legal: (Create) & Error Segment: Account

Error Message: Legal: You cannot select Revenue accounts (4000-4999) with this department.

This is an error message display when we enter illogical combinations as we defined

Elements:

Type From To


Exclude - 02-730-4000-0000-000 02-730-4999-zzzz-zzz

Company – Department – Account – Sub Account – Product

Here, first we have included everything (zzz), and then we have excluded department 730 should not have Revenue accounts (4000-4999).It means; we cannot select Revenue accounts while selecting department 730.

(Making end user should not use the Revenue accounts while for the department 730)

Aliases: Setup>Financial>Flex field>Key>Aliases

In Structure-F11-Type Op%-Control F11

Captured: GL- Acc FF- Operations Accounting Flex – Vision Operations Accounting Flex Field

Enable the Short Hand Check box and size of alias size.

In Aliases Descriptions,


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Alias Template Description

Secretarial 01-740-7615-0000-000 Secretarial Services

When we enter a journal, in account line we can select (…) – Accounting Aliases….In that, we should type secretarial…. It automatically selects secretarial services and entire template.

Foreign Currency Journal:

Setup>Currencies>Rate>Types

Define your Conversion Rate Type- EUR Rate (For selecting purpose)

Setup>Currencies>Rate>Daily

Define your conversions accorKRg to USD to EUR

USD to EUR: 0.8 (When we enter 0.8, it automatically generate 1.25 (USD/EUR-1/0.08)

EUR=1.25 USD

Now, USD=1 (Functional)

Therefore, EUR=1/0.8 = 1.25 USD (Here 1 is USD & 1*0.08 = 1.25 USD)

Enter a Journal (Functional Currency- USD)

Journal – KRJE08

Currency – USD

Account Dr. Cr.

01-740-7615-00-0 10000

01-110-9999-0000-000 10000

When we enter journal in functional currency US$, 10000 is debited.

When we change the currency USD o EUR, the USD 10000*1.25 =USD 12500 will be debited from our account. (1.25 is defined for EUR)

Suspense Account:

Setup>Financials>Books>Define


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F11

Set of Books - Vision Operations%

It selects vision operations (USA)-Operations Accounting Flex

In Journal, check whether suspense account check box is enabled or not- Make it enable 01-000-2990-0000-000 (2990= Suspense Account)

For our information – 01-000-7826-0000-000 (782=Rounding)

Now, we can enter journal with short balances

Dr-15000

Cr-10000

When it makes post, it automatically makes suspense account of Rs.5000/- for balance of that transaction)

Debit Memo:

Purchase materials-100,000/-

Entry: (Journal)

Purchase Amount Dr.100, 000

To Supplier Account Cr.100, 000

After this transaction, we found that Rs.10, 000/- is reject material.

Therefore, we should issue Debit Memo for Rs.10, 000/-

Now, Payment entry:

Supplier Account Dr-100, 000

To Cash Account Cr - 90, 000

To Purchase Returns Cr – 10, 000

Tax Journal:

For learning purpose, we are using Vision Operations Set of Books

In real time implementation, Set of books set by system administrator

Setup>Financials>Books>Define

In GL Set of Books-F11-Vision Operations%-Control F11-Vision Operations (USA)


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Journaling, check whether Journal Entry Tax is enabled or not – Make it enable

Setup>Tax>Tax Options

In Account level, enter the particular account of tax required and enables Amount includes tax

In Tax Options:

In Set of Books Level:

Tax Code: As Required

Enable Amount includes Tax

In Account Level:

Enter : Tax Account (1340-Prepaid Expenses)

Enter : Tax Type (Input-If Payable Tax/Output-If Receivable Tax)

Enter : Tax Code (As Required)

Enable amount includes Tax.

Save it.

Then, Input tax Codes

Define : Tax Code

Enter : Tax Type

Rate : 8% (Define as required)

GL Account : Define the 33-000-1340-0000-000

VAT Type : As Required

Save it.

Create a new journal for tax calculation.

Journal: KRTAXJE

Category: KR

Tax: Required /Not Required


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In Line,

33-000-1340-0000-000 Rs.50000 (Dr.)

33-000-2210-0000-000 Rs.50000 (Cr)

Check Funds-Reserve Funds-Tax Journal

It automatically calculates tax as defined.

Statistical Journal: (For Formula Based Recurring Journal)

Statistical account starts with 9

For Number of share folder and Number of employees

For Example,

Expense-Rent Amount- Rs.100, 000/-

This rent amount should allocate to various department of particular company.

Therefore, we have to define statistical journal along with the ratios for distributing this rent amount to such departments. The rent paid before allocation in payables itself.

However, we can distribute the paid rent to various departments as defined in statistical journal.

In Journal, create a new journal (Currency – STAT)

In Line,

33-110-9210-0000-000 Rs.10000

33-120-9210-0000-000 Rs.20000

33-130-9210-0000-000 Rs.30000

No Offset Entry

Check-Funds-Reserve Funds-Post it.

Therefore, we have defined statistical journal is 1:2:3

General statistical formula: A*B/C

A- Expensed Amount

B- One Line Ratio

C- Summation of Ratio


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That’s all – Based on statistical journal, we are going to define Recurring Journal

Recurring Journal:

Types of Recurring Journal:

Types Amount Account

Standard Applicable Applicable

Skeleton No Applicable

Formula Formula Only

Dollar Issue bonus

Standard:

Set fixed account combinations and amounts

Skeleton:

These journals have varying amounts in each accounting period.

We can define a journal entry without amounts and enter appropriate amounts in each accounting period.

Formula:

A formula entry is a recurring entry that uses formula instead of amounts.

Dollar:

To track out monetary balances

Steps for creating Recurring Journal:

Create recurring journal definition Generate Recurring Journals Review Entries Post

1. Standard: (Set fixed account combinations and amounts)

Journal>Define>Recurring

Batch: KR Rent Batch (Create)

Journal: Rent Recurring Journal (Create) Rent- 7420


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Category: KR (Attach)

Currency: USD

In Lines,

10 33-110-7420-0000-000 Rs.30000/- (Step-Enter-Rs.30000-Save it)



Credit Entry: 33-000-2210-0000-000 Rs.0.00/-

Save it

Generate and attach your period- Submit-View-Find &request –Status-Completed

Go to Journal –

Source: Recurring (Attach)


Find – Recurring Journal summary will be displayed.

Created KR Rent Batch automatically generated Recurring Journal based on inputs given in


Review the recurring journal and post it.

Therefore, the paid amounts (7420-Rent) distributed to 3 departments from the offset entry (Line 9999-000 Department amount distributed to 110,120,130)

This is standard recurring journal.

2. Skeleton:

These journals have varying amounts in each accounting period.

Therefore, we can define a journal entry without amounts and enter appropriate amounts in each accounting period.


Batch: KR SKELETON RENT (Create)

Journal: Skeleton Recurring Journal (Create) Rent-7420


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Currency: USD

In Lines,

10 33-110-7420-0000-000 No Amount (Save it)

20 33-120-7420-0000-000 No Amount (Save it)

30 33-130-7420-0000-000 No Amount (Save it)

Credit Entry: 40 33-000-2210-0000-000 No Amount (Save it)

Generate and attach your period-Submit-View-Find Request-Status-Completed

Go to Journal-



Find- Recurring Journal summary will be displayed.

Created KR Rent Batch automatically generated Recurring Journal based on inputs given in

Journal>Define Recurring

Review the recurring skeleton journal and Enter the amounts when and where required

Post it. (If period is opened as defined in GL, it can be posted)

Else, Query the batch and review the same – Change period (Open Period)

Ok-Save it- Post the Journal-Re query it- Status posted

Therefore, as per our requirement, we have entered the paid rent amount in various departments in recurring journal window. It will be distributed at the time of posted

This is Skeleton Recurring Journal.

3. Formula: A formula entry is a recurring entry that uses formula instead of amounts.

In this Formula Recurring Journal, we must use the Created Statistical Journal


Batch: KR FORMULA RENT (Create)


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Journal: Skeleton recurring Journal (Create) Rent-7420


Currency: USD

In Lines,

10 33-110-7420-0000-000 (STAT)

Step 1-Enter-No Amount- 33-110-9210-0000-000-YTD-STAT (Currency)

Step 2- X -20 (Amount for Multiplication with Statistical)

20 33-120-7420-0000-000 (STAT)

Step 1-Enter-No Amount- 33-120-9210-0000-000-YTD-STAT (Currency)

Step 2- +-50000 (Amount for Addition with Statistical)

Credit Entry: 9999 33-000-2210-0000-000 No Amount (Save it)

Save it

Generate and attach your period – Submit –View –Find Request –Status- Completed

Go to journal-



Find – Recurring Formula Journal summary will be displayed.

Created KR Rent Batch automatically generated Formula Recurring Journal formulated based on inputs given in statistical journal – Journal Output is

33-110-7420-0000-000 200,000 (Formula 20x Rs.10000 Statistical)

33-120-7420-0000-000 70000 (Formula 50000+ Rs.20000 Statistical)

33-00-2210-00-0 270000 (Offset entry created)

Post it. (If period is opened as defined in GL, it can be posted)

Else, Query the batch and review the same – Change period (Open period)

Ok- Save it- Post the Journal- Re query it- Status posted


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Therefore, as per our requirement, the formula recurring journal posted based on statistical journal.

This is Formula Recurring Journal.

4. Dollar: To track our monetary balances.

Steps for Dollar Recurring Journal

1. First Pass a journal for Rent Account

2. Inquiry/Account-Check the entry

3. Define Dollar Recurring Journal-Define the dollar recurring lines with formula

4. Generate dollar journal-Source &Find-Review the passed Journal

Pass the regular journal entry (KR DOLLAR JE) for Commission payable or rent distribution. Then,


Batch: KR DOLLAR RECURRING (Create)

Journal: Dollar Recurring Journal (Create) Rent-7420


Currency: USD

10 33-110-7420-0000-000 (Rent)

Step 1- Enter –No Amount – 33-110-7420-0000-000

- Actual –PTD-USD

Step 1- X - 0.11 (Rate for Multiplication)

For creating offset entry,

9999 33-000-2210-0000-000 – That’s all and Save it

If we don’t want offset entry, just

Save it

Generate and attach your period-Submit-View-Find Request-Status-Completed

Go to Journal-




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Find- In Summary KR DOLLAR JE will be displayed.

Created KR Dollar Journal generate the dollar journal- Track monetary balances

(We cannot pass journal entry for parent company. Because, child values only created as department)

Mass Allocation: (Allocate particular expenses to various department)

A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions and so on.

[A*B/C] A-Cost Pool Account

B-Ratios (1:2:3-Statistical 9210)

C-Summation of Ratios (1+2+3=6)

Steps:

1. Create Mass Allocation Definition

o Enter batch Information

o Create Mass Allocation Formula

o Enter Mass Allocation Formula

2. Generate Journals

3. Review Journals

4. Post the Journals

Before that,

Create a Statistical Journal(Currency-STAT)

In Line,

33-110-9210-0000-000 Rs.10000

33-120-9210-0000-000 Rs.20000

33-130-9210-0000-000 Rs.30000

No Offset Entry

Check Funds-Reserve Funds-Post It.

Therefore, we have defined statistical journal is 1:2:3

1. Pass expense journal (Advertisement Account-7110)


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33-000-7110-0000-000 (Dr) Rs.90000

33-000-2210-0000-000 (Cr) Rs.90000

These expenses accounted in 000 No department (Parent) and will allocate to 100 (Resources Department) in extend, allocate to sub-divisions

2. Mass Allocation

Journal>Define >Allocation

Name: KR MASS ALLOCATION (Create)

Balance Type: Actual

Status: Not Validated (Automatic)

Click- Formulas & Define Formulas

[C- Constant L- Looping S-Summation]

Full Balance – It can select any currency and allocate

Single Entered Currency – Particular Functional Currency/Required Currency (Enable &USD)

Full Cost Pool Allocation – Enable: Decimals also will be taken care

-Not Enable: Decimals will be rounded off and take rounded amount.

A: Cost Pool-Created Expense Journal- Allocating to 100 (Resources Department)- Constant

33-000-7110-0000-000 USD-PTD-Current Period

C- C - C - C - C

B:Ratio-Created Statistical Journal- Department Looping to Stat ratios (100)- Looping

33-100-9210-0000-000 STAT-YTD-Current Period

C- L - C - C - C

C: Summation- Summing Statistical Journal to 100 (Resources Department)- Summation

33-100-9210-0000-000 STAT-YTD-Current Period

C- S - C - C - C

T: Target- Looping Expense Journal – From 100 (Resources Department)- Looping



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C- L - C - C - C

O: Offset- Knock off Created Expense Journal Dr –Cr from 100 Expense Journal - Constant


C- C - C - C - C (As like Cost Pooling Account Line)

(Be sure to also follow the account segment cross validation rules. Because, the mass allocation validation program does not check across validation Rule. If cross validation rules are not matched with mass allocation, it creates invalid journals)

Click Validate- Validate the entered Formula - Requery F11-Control F11-Status-Validated Generate it-Attach Period-Submit-View Request-Status-Completed

Go to Journal:

Source- Mass Allocation

Category- KR

Find- The defined formula allocating the cost pooling expenses to statistical department values as formulated

This is the mass allocation procedure.

Inter Company:

In set of book, check whether Balance Inter Company Journals check box enable or not (Enable)

Setup>Accounts>Intercompany

In this there are 2 options

1. Clearing Company Usage

Always use Many to Many

Clearing company Intercompany Transactions only

Always use Clearing Company- While transferring any asset between inter-companies, the asset payment will be routed some other particular company (Payment company will be varied)

Many to Many Inter Company- While transferring any asset between inter-companies, the asset payment will be routed from the same intercompany (Payment Company will be anyone intercompany)


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2. Default Options (Action: If no clearing company specified)

Error Out Use Default Clearing Company Use Default Balancing Account

Use Default Clearing Company- If it is enable, we have to define default payment clearing company for all the intercompany transactions.

Use Default Balancing Account – If it is enable, it will use default balancing account and it will not consider Always use clearing company & use default clearing company.

Many to Many Inter Company Transactions only allowed using default-balancing account

Prerequisites:

1. Define your set of books.

2. Enable Balance Interfund Journal in the Set of Books window.

3. Define your journal entry sources.

4. Define your journal entry categories.

5. (Optional) Define your interfund segment

Source: Manual (Attach as required)


Clearing: Many to Many Default: Error Out

(1st we should define Many to Many and error out)

Company Due from Account Due to Account

01 01-000-1811-0000-000 01-000-2371-0000-000 (For Transfer)

02 02-000-1812-0000-000 02-000-2372-0000-000 (For Transfer)

03 03-000-1813-0000-000 03-000-2373-0000-000 (For Transfer)

KR 33-000-1814-0000-000 01-000-2374-0000-000 (Payment Route)

All Other 33-000-1815-0000-000 33-000-2375-0000-000 (All other companies routed their payment through this company)

(2nd – After defining accounts, now you can choose always use-clearing company-KR)

(Therefore,KR is routed company for all Intercompany transactions)


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If we define Always Use Clearing Company, the clearing company will be defined in that check box and all the intercompany transactions payment will be routed through clearing company only.

Now, we can create a journal for intercompany transactions.

Journal: KR ICJE01

Category: Inter Company Transfer

Source: Inter Company

02-000-1560-0000-000 Rs.10000/- (Receiver of Asset)

01-000-1560-0000-000 Rs.10000/- (Supplier of Asset)

Check Funds-Reserve Funds-Post

Requery it-It will automatically generate journal and make payment through KR

It will generate journal as follows.

Account Dr. Cr.

3. Payable KR-000-2371 10000

2. Receivable KR-000-1812 10000

4. Receivable 01-000-1814 10000

1. Payable 02-000-2374 10000

Now,02 got an asset and 01 payable to KR and KR Receive the funds from 02 and pay to 01

This is the process when we are defining inter company transactions.

If the asset transfer is balance,it will be accepted.

If we change these options,it depends on company divisions and selects only one.

If the Error and Many to Many transactions is enable,the error message will be displayed while passing the entry.

This is what inter-company procedure and transactions.


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BUDGET:

Budget is estimated account balances for a specified range of periods then compare estimated amounts with actual balances to determine variances.

Budget consists of periods, accounts and amounts

In oracle general ledger, create a budget by designating amounts to be a combination of accounted period. (If expensed amount is less than the budget –Favor)

(If expensed amount is more than the budget – Adverse)

Budget Accounting Cycle:

Define budgets and organizations Enter budget amounts Review and correct budgets Freeze budgets Report on budgets

Types of Budget:

1. Non-Funding Budget2. Funding Budget – Request Budgetary Control

(We can enable this budget define itself and we should not enable this in set of books)

Open- Can make corrections (After create a budget, it’s in current status, Then freeze it)

Frozen- Cannot make corrections

1. Non-Funding Budget- Just plan the budget and does not meet the expenses and spend money (Long term oriented)

2. Planning the budget and match with actual expenses. (Immediate purpose)

1.Non-Funding Budget:

1.Define the Budget:

Budget>Define>Budget

Name: KR BUDGET NF

Status: Open

(Should not enable the Require Budget Journals)

Budget Periods: Jan-00 to Mar-00


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Click Open Next Year

View-Request –Find-Status: Completed

2.Budget Organization:

Budget>Define>Organization

Name: KR BUDGET ORGAN NF

Display: 2-1-3-4-5

We can set passwords securities

Click Ranges

Line Low High Type Currency

1 33-110-7110-0000-000

33-130-7110-0000-000

Entered USD

Advertising Advertising

After making ranges, don’t save it and then,

Click Range Assignments: (Just assign only one department)

Account: 33-110-7110-0000-000 (Low Account only defined here)

After making range assignments, save it

Concurrent request process – Status Completed

3. Budget Amounts:

Budget>Enter>Amounts

Budget Organ: KR BUDGET ORGAN NF (Attach)

Budget: KR BUDGET NF (Attach)

Accounts Periods: Jan-00 Mar-00

Worksheet Mode-For more accounts

Single row mode- For only one account

In Worksheet mode- Account


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33-110-7110-0000-000

It will automatically generate defined budget periods without amounts.

Click-Budget Rules

1. Divide Evenly-The defined amount will be diviKRg evenly for defining periods

2. Repeat per period- It will repeat the same amount for particular defined period

3. 4/4/5 – Totally 52 weeks in a year;

4=1st Month=4 weeks

4=2nd Month=4 weeks

5=3rd Month=5 weeks

Total=13 weeks x 4 Quarters =52 Weeks

Select Divide Evenly

Amount – 90000

Apply & Ok – The defined amount will be divided evenly.

Click-Budget Posting-View-Request-Find-Status-Completed

Check funds available or not with the help of Inquiry>Funds

(Checking funds for one period and one account)

Attach your budget-KR BUDGET NF

Account- Enter defined account – 33-110-7110-0000-000

It will display Rs.30000 as budgeted for one particular month (Jan 2000 only)

Check balances and variances with the help of Inquiry >Account:

(Checking funds for all periods and for many account)

(We can post lot of journals at one period time)

Attach period (Jan 00 to Mar 00)

Select Budget & Attach your budget (KR BUDGET NF) and

Enter budget account 33-110-7110-0000-000

It will display show balances, show journal details and show variances for Jan 00 to Mar 00.

2. Funding Budget:

1. Define the Budget:

Budget>Define>Budget


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Name: KR BUDGET FUND

Status: Open

(Require Budget Journals – Enable)

Funding budget requires Funds Check Level. (Requires Control)

Control – None/Advisory/Absolute

Budget Periods: Jan-00 to Mar-00

Click Open Next Year

View-Request –Find-Status: Completed

2. Budget Organization:

Budget>Define>Organization

Name: KR BUDGET ORGAN FUND

Display: 3-2-1-4-5

We can set password securities

Click Ranges

Line

Low High Type Currency

1 33-110-7120-0000-000

33-130-7120-0000-000

Entered USD

Public Relation Public Relation

After making ranges, don’t save it and then,

Click Range Assignments: (Just assign only one department)

Account: 33-120-7110-0000-000 (Low Account only defined here)

After making range assignments, save it

Concurrent request process-Status Completed

3. Budget Amounts: (In Journals)

Budget>Enter >Journals


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Budget Organ: KR BUDGET ORGAN FUND (Attach)

Budget: KR BUDGET FUND (Attach)

Accounts Period: Jan – 00 Mar – 00

Worksheet Mode – For more accounts

Single row mode- For only one account

In Worksheet mode - Account-Click (Control F11)

7120-120-33-0000-000

It will automatically generate defined budget periods without amounts.

Click – Budget Rules

Select Divide Evenly

Amount – 90000

Apply & Ok – The defined amount will be divided evenly.

Click – Create Journals

Journal batch: KR BUDGET FUND JOURNAL BATCH (Create)


Click – Run Journal Import – Concurrent Request Generated – Click Done.

View – Find – Status – Completed – View Output – Copy the Created Batch

Go to Journal Journal>Post

In Find Journal batches – paste the copied batch with %

Find – Post Journals Summary will be displayed

Enable all the budget periods and Post it.

Concurrent request generated

Go to Journal – Journal>Enter

Select your Funding budget batch and find – Status – Posted

This is the process of Funding and non – Funding budgets.

*** In Budget – Funds Check Level

Funding budget requires Funds Check Level. (Requires Control)


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None – We have seen the above process.

Advisory – Budget is created and reserve funds for Rs.90000/- for meet an expense.

If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds.

Absolute – Budget is created and reserve funds for Rs.90000/- for meet an expense.

If Budgetary Control Group is Absolute, we can meet that expense with Absolute message if the actual amount should be exact budgeted.

Period type:

Entered: For Funding and Non – Funding budgets

Calculated: For Mass Budget and Formula Budget

Boundary:

If boundary is period type, we can use that fund for that period only (PTD) If boundary is quarter type, we can use fund from period to quarter level (QTD) If boundary is YTD type, we can use fund from period to year level (YTD), etc.

Period to Date

Quarter to Date Year to Date Project to Date

PTD Ok

(If Bound is period)

No No No

QTD Ok

(If Bound is Qtr)

Ok

(If Bound is Qtr)

No No

YTD Ok

(If Bound is YTD)

Ok

(If Bound is YTD)

Ok

(If Bound is YTD)

No

PJTD Ok

(If Bound is PJTD)

Ok

(If Bound is PJTD)

Ok

(If Bound is PJTD)

Ok

(If Bound is PJTD)

Budgetary Control Group (Funding budget requires Funds Check Level – Requires Control

Budget>Define>Controls


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Find – Standard

Category – Other (Select)

Funds Check Level – None/Advisory/Absolute


Advisory – Budget is created and reserve funds for Rs.90000/- for meet an expense.

If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds. (In Journal, we can enter a journal for excess amount with an advisory message)

Absolute – Budget is created and reserve funds for Rs.90000/- for meet an expense.

If Budgetary Control Group is Absolute, we can meet that expense budgeted amount only. We cannot make payment for excess amount than budgeted amount.

Budgeted control room form allows you to define rules controlling how strongly a budget controls spenKRg. For each combination of journal source and category, you can define whether expenditure beyond a budget or accepted without command accepted with an advisory or rejected.

When you submit funds check or find reservation request, GL searches for the budgetary control rule and match the source and category of your journal entry.

If no matches from, GL substitutes your source and category.

Advisory/Absolute: (For Funding Budget Only)

If we want to make Advisory / Absolute funds check level, we have to follow the following steps.

1. Create a new budgetary control group (KR Budgetary Control Group)2. Change the funds check level to Advisory/Absolute3. Create new Funding budget organization for advisory/absolute function4. Create Ranges and Enter the amount in Budget>Journals, budget rules and regular

process up to posting.5. After posting the budgeted journal (Advisory/Absolute), we can enter actual journal entry.

In addition, budgetary control groups having following items.

1. Tolerance - % & Amount2. Override Amount

1A.Tolerance %:

When we are defining budgetary control group as Advisory/Absolute, the tolerance % helps to add % amount with budgeted amount


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(Budget Rs.16000+Tolerance 10% on Budget Rs.1600=Rs.17600/- will be allowed maximum for making an expense journal to compare with budgeted.

1B.Tolerance Amount:

When we are defining budgetary control group as Advisory/Absolute, the tolerance amount helps to add the tolerance amount with budgeted amount

(Budget Rs.16000+Tolerance Amount Rs.2000=Rs.18000/- will be allowed maximum for making an expense journal to compare with budgeted.

If we defined both % and amount, it will consider whichever is less.

% = Rs.1600

Amount = Rs.2000

In this situation, tolerance will consider Rs.1600/- only (Minimum) and it will be added with budgeted amount (Advisory/Absolute) for meet the expense.

2. Override amount:

The defined budget amount is Rs.90000/- (Absolute)

If we define a override amount is Rs.105000/- the expense journal will allow to meet Rs.105000/- as maximum budgeted.

Encumbrance: Temporary blocking of funds against budget.

Encumbrance is a charge or lien to block the budget amount.

(Reserving Funds for making some particular or budgeted expenses)

In payable, there is an Encumbrance which is use to follow in our enterprises.

In Encumbrance,

Commitment – Purchase Request only

Obligations – Purchase Request is converted in to Purchase Order

Journals>Encumbrance

The budgeted amount for particular account= Rs.100000/-

The encumbrance journal for the same account = Rs.20000/- (Reserved/Temporary Blocked)

Therefore, Balance = Rs.80000/- only can spend for that account expense.

If we want to perform encumbrance, we need to follow the following steps


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1. Create a Funding budget for Rs.60000/- (Creation of Budget Definition, Budget Organization, Budgetary Controls, Journals and up to posted – Rs.60000/3M = 20000 PM)

2. Then, create encumbrance journal (Journals>Encumbrance) for Rs.8000/- Post it3. In Inquiry – Funds – Budget Rs.20000; Encumbrance; Rs.8000; Actual Rs.9000; Ava:3K

a. Therefore, the Rs.8000 is temporary blocked out of Rs.20000 for that particular account and actual spent Rs.9000 only. The Remaining funds available = Rs.3000/-

Budget Transfer:

Account to Account Fixed Amount or Percentage GL automatically runs journal import and An un-posted journal is created

Budget>Enter>Transfer

Budget: KR BUDGET FUND (Funding Budget) – Select

Batch Name: KR BUDGET FUND TRANSFER BATCH (Funding Budget Transfer) – Create

From To

Budget Organization Account Budget Organization Account

KR BUD ORGAN FUND 33-110-7210-0000-000

KR BUD ORGAN NF 33-110-7110-0000-000

Click: Transfer amounts

Select Period: Jan 00/Feb 00 /Mar 00

Define: % or Amount for Transfer from particular account to transfer account (Rs.2000/-)

After defining period and amount, click transfer by period range – Old & New balances will be displayed.

To see the transfer impact: Inquiry – Funds

Select Account: KR FUNDING BUDGET 33-110-7210-0000-000

Budget Rs.18000/- only (Because, Rs.2000 transferred to 7110 account)

Budget Rs.18000; Encumbrance; Rs.8000; Actual Rs.9000; Funds Available: Rs.1000/- Only

This is the result after budget transfer.


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Formula Based Budget: (For Non – Funding Budget Only)

In Budget Organization,

F11 – KR% - Control F11

Select: KR BUDGET ORGAN NF (Non Fund)

Go to Ranges – Add New Line and define High and Low Accounts with Type: Calculated

In continuation, click ranges and define the account and type Calculated

Save it – Concurrent Request – View – Request – Find – Status: Completed

Now, we have created an account for formula based non – Funding budget (Calculated)

Then,

Budget>Define>Formula

Batch: KR NF Formula Batch (Create)

Journal: 8115Journal (Create)


Currency: USD

In Lines,

10 33-110-8115-0000-000

In Formula,

1 Enter Rs.0 33-110-9350-0000-000 Actual YTD STAT

2 X Rs.10 (For X)

Save it

Click Calculate

Attach Period – Submit – Request – Status: Completed

Result:

Rs.10000 (Statistical) x10 = Budget Amount Rs.100, 000/- (Formula based Non- fund budget)


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Then check the non- Funding budget with formula based calculation Result,

+Inquiry+Account = Select periods & Budget Type and Account – Result Rs.100, 000/- (Budget)

That’s all.

Revaluation:

Translation foreign currency balances to local currencies

Daily Rate Period end rate One time rate

Difference between foreign and local currency = Unrealized gain or loss

Setup>Currencies>Rates>Daily

Daily Rate: For daily currency rate purpose

From To Date Type USD to EUR EUR to USD

USD EUR 01APR-04 KR EUR 0.5 2.0

0.5 USD = 1 Euro (1 Euro/0.5 USD = 2 Euro)

Therefore, 1 USD = 2 Euro

Setup>Currencies>Rates>Period

Period Rate: For year-end or month end average closing purpose

From To Type Period Average End Revaluation

USD EUR Actual APR-04 1 0.8 1.25

First Enter the Period and then enter the convertible currency type – EUR

Average/End/= 1/0.8= 1.25 Revaluation Rate

0.8 Euro = 1 USD

Therefore, 1 Euro = 1.25 USD. That’s all

Now we can enter currency conversion journal.

Go to Journal>Enter


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Journal: KR REVAL 01 Currency: EUR (Change the Currency from USD to EUR)

Period: Mar – 04

Category: KR

Entered Converted

Line Account Dr. (EUR) Cr. (EUR) Dr. (USD) Cr. (USD)

1. 33-000-1560-0000-000

100, 000 0 125, 000

2. 33-000-2210-0000-000

0 100, 000 0 125,000

We have changed the functional currency USD to EUR in journal.

Therefore, when we are entering 100, 000 EUR, it will automatically converted as USD

[Euro 100, 000 @ 1.25 USD = USD 125,000] This is what conversion entry from functional currency to another currency. Actually, we have entered Euro 100, 000 and it will debit

USD 125000 from our account.

Now, we can do revaluation.

Go to Currency>Revaluation

Revaluation: KR Revaluation (Create)

Auto Post Revaluation: (If it enables, the revaluation entry will be posted automatically after perform the function.

Currency Options:

All Currencies: We can use revaluation for multiple currencies

Single Currency: Euro

Rate Options:

Period Rates: Enable it

Gain/Loss Accounts:

000-7846-0000-000 (Gain)


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000-7848-0000-000 (Loss)

Revaluation Changes:

Low High

33-00-1560-00-0 33-000-1560-0000-000

Click Revaluation – It will generate and run the revaluation program.

Name: Program – Revalue Balances (Automatic Generated)

Parameters – Period – Apr-04

Submit – Concurrent Request – View – Status – Completed

Go to Journal>Enter

Source: Revaluation

Period: Apr-04

Find – Journal Summary - Review your Currency Conversion Entered Journal

Post it and Entry is,

Dr. Cr.

Result: 33-000-1560-0000-000 - -

33-000-7848-0000-000 - 75, 000 (USD) – Loss

1.25 USD – 1 Euro

1 USD - ? 0.8

USD 125000 – To be Paid

EUR 100000*0.5 = USD 200, 000 (1 EUR/0.5 Period End = 2 USD)

USD 200, 000 – Actual Paid

Difference = USD 75000 (Exchange Fluctuation) – That’s All.

Revaluation – For Example,

UAE USD

0.5 2

Therefore,


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1 USD = 2 UAE

? = 1 UAE

0.5 USD * 100, 000 UAE = 50000 USD to be Received

0.25 USD * 100, 000 UAE = 25000 USD Received

Revaluation Value

Therefore, 50000 – 25000 = 25000 USD (Exchange Fluctuation Loss)

Translation:

Translation of functional (local) currency to any foreign currency.

However,

In translation, we should not change local currency to foreign currency in journal entry

Functional Currency Foreign Currency

USD EUR

1 0.25

Therefore, 1/0.25 = 4 (1 EUR = 4 USD)

Currency>Translation

Value Translation Period

KR EUR Apr-04

Click – Translation – Required ID will be generated

Check Converted Balances:

Inquiry>Account

Enter your periods and your target currency and select – Translated

Type your account and show converted balances

Entered 100, 000 USD * 0.25 EUR = USD 25000 Actual Paid

Finally in translation, we have entered USD 100000 and USD 25000 only accounted in our book based on translation

Cumulative Translation: (Like Debtors and Creditors Reinstatement at end of year)


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Reports>Request>Standard

Name: Trail Balance Detail

Company: 33

Currency: USD

Period: Apr-04

Type: PTD

Submit – Request

The difference of translations transfer to cumulative translation account

The difference between month and year rates transfer to cumulative translation adjustment

And it is purely based on year-end and period end rates.

Consolidation:

If Enterprise dealing Single Currency (Single Set of Books) – Consolidation will be easy

If Enterprise dealing Multiple Currency (Multiple Set of Books) – Consolidation is bit complicated

- Accounting Rules- Segment Rules – This is applicable

Now, Pass journal entry in both parent and subsidiary company

In parent: (Vision Operations)

Journal – KR MASSCONSOLIDATION 1EO1

33-000-7695-0000-000 20000-

33-000-2210-0000-000 - 20000

Check funds – Post it (Mar 04)

Switch to Vision Services (Subsidiary) – Check whether your 33 company in services or create

Journal – KR MASSCON JE SUBSIDIARY

01-110-7675-0000-000 10000 -

01-120-7675-0000-000 12000

01-130-7675-0000-000 13000

01-000-2210-0000-000 - 36000


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Save it

In subsidiary,

Consolidation>Define>Map

Mapping: KR Mass Con Mapping Rule

Subsidiary: Vision Services

Parent: Vision Operations

Currency: USD

Enable – Audit Mode

Usage – Standard

Aug – For Banking

Method:

Transactions (Same Currency)

Balances (Difference Value)

Click Segment rules:

Company Copy Value From Services Company

Department Use Rollup Rules Services Department

Parent – 000 – Detail Ranges

Subsidiary – 110 to 110

Account Copy Value from Services Account

Sub Account Assign Single Value 0000

Product Copy value from Services Product

Save it

Period – Mar 2006 Mar 2006

Click – Transfer – Submit

Conversion Mapping Rules – We can define in anywhere either subsidiary or parent company


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Go to parent (Vision Operations)

In Journal:

Source – Consolidation – Apr 2006

In this, we can get subsidiary journal entry as un – posted. You just review and post it.

Then, Subsidiary journal entry posted in parent company.

This is what consolidation process – That’s all

GL Reports: Trial Balance/Ledger Report/Variance Report/Etc.

To view the reports – Reports>Request>Standard

Attach your Request – Submit and View

Financial Statement Generator (FSG)

Preparing statement for ledger accounts with balances only for MIS

Row Set (Mandatory) –format of content in Rows in FS Column Set (Mandatory) – format of content in columns in FSG report Column Builder (Mandatory) Row Order Content Set Display Set

Types of Report:

Comparison Report Variance Report

1. Define a Row Set:

Reports>Define>Row Set

Name: KR Reports

Click – Define Rows

Line 10 Line item: Expense for 110




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Accounting Assignments:

Line 10 33-110-7695-0000-000 (Save)

Line 20 33-120-7695-0000-000 (Save)

Line 30 33-130-7695-0000-000 (Save)

Line 40 Expenses Total

Click – Calculation

Formula:

Line Enter Low High

1 + 10 30 (Line Total)

2. Define a Column Set:

Reports>Define>Column Set

Name: KR Reports

Click – Define Column

Position: 51 Amount Type: PTO – Actual

Sequence: 10 Currency: USD

Offset: -1

(-1 = March; 0=Current Month; 1=Next Month)

Display Zone: Enable

Position: 76 Amount Type: PTO – Actual

Sequence: 20 Currency: USD

Offset: 0

Save it.

110 – 100 (100 is 20% of 500 – Percent of Column)

120 – 200


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130 – 300

-------

500

--------

Click: Build Column Set

Adjustment: Ok

Save it

3. Reports>Define>Report

KR Financial Report

Attach your Rows and Column

Run report

New run window opened – KR Financial Report

Submit – View – Request – Completed – Output

Report will be generated

For Variance Report,

Pass an expense journal entry for budgeted amount.

Then only, variance report will be generated

Go to:

Row Set & Column Set – Amount Type: ITO – Variance (Transferred value =1 )

Make it Process – View Output

Variance report also include in that report.

Inter Company Transaction:

Inter-Company transaction held in difference set of books

Subsidiaries Transactions type Clearing Account

1. Setup>Inter-company>Subsidiaries


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Subsidiary: Vision Services (Create/Your Inter-company)

Inter-Company Book: Attach Inter-Company Book

Currency: USD

Company: 01 (Another Company) – Attach as required

2. Transaction Type: Create KR Transaction Type

3. Clearing Accounts: Clearing Accounts (1810) After Setup

Now,

Transactions>Enter (In Find Transaction – Click View) – This is for parent company

Attach: Receiver & Sender & Period & Transaction Type

(Services) (Operations)

In Line:

Account Amount (Cr.)

CT-000-1810-0000-000 100000

Inter-Company Clearing Report:

Account Amount (Dr.)

CT-000-1810-0000-000 100000

(Receivable)

Approve: Number will be created

Submit: Completed

Switch Responsibility to Vision Services:

Same process as like parent company

M1-000-2371-0000-000

(Payable)

Approve: Number will be created

Submit: Completed

View – Request – Single Request


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Completed


Name: Program – Intercompany Transaction/Transfer

Parameter: Attach

Submit – View from Transaction + Enter

Number will be generated

Attach the generated number – Yes (Transferred)

ORACLE – FIXED ASSETS

FIXED ASSETS:

It ensures a particular company property and equipments are accurate and for calculating depreciations as per companies act and income tax acts.

Setups in Setup

Setup>Asset system>Fiscal years

1. Create Fiscal year – KR ACCOUNTING YEAR 2005 – APR 05 TO MAR 06

2. Create Calendar year – KR MONTHLY (Fiscal/Calendar/None)APR-05 = 01-APR-05 TO 30-APR-05 Up to 01-MAR-06 TO 31-MAR-06

3. Setup>Asset system>Prorate Conventions – KR CURMON (Current Month Convention (Define))Period: 01-APR-05 TO 30- APR-05Prorate Date: 01-APR-05(Prorate0: Purchased on 01.12.11 – Calculate depreciation from December and not from beginning of the year.)If we define Prorate for 15 Days – Purchased 20.12.11 – Calculate depreciation for 15 days

4. Book Controls: KR CORP BOOK – Under Corp BookCalendar:GL Set of Books – Vision Operation

Depreciation/Fiscal/Prorate – Automatic generation by definition of KR

Current Period – We defined from Apr- 06.However, it takes May-05

Natural Accounts:


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Company – 27 – Vision Consulting Limited

Department – 730 – Finance

Account – 9999 – Not Applicable

Sub-Account – 0000 – No Sub Account

Product – 000 – No Product

Journal Categories:

Journal Resource – Assets

Others – General; Fill all the fields; Addition, Adjustment

After Book Controls, we have to create Asset Categories in Flex Fields of General Ledger (GL) Operations

Switch to GL Responsibility – GL Vision Operations

Setup>Financials>Flex Fields>Key>Values

1. Find Key flex field segment: Category

Application – Oracle Assets

Title – Category Flex field

Structure – Vision Category Flex field

Segment – Major Category

Find (Create Major Category Items in Segment Values)

In Find – Segment Values window opened for (Major/Minor) Creation of Fixed Assets

1. KR Land &BuilKRg

2. KR Plant & Machinery

3. KR Vehicles

4. KR Office Equipment

5. KR Expensed Asset


KEY FLEX FIELD

CATEGORY FLEX FIELD

LOCATION FLEX FIELD

ASSET KEY FLEX FIELD

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6. KR Intangible Asset

Click Find (i.e. torch button, it change to MINOR category)

Now, we can create minor items under major items

If Independent Value is Major Category, dependent value is minor category

Under KR Land & BuilKRg

Block1 – KR LAND

Block2 – KR BUILKRG

Under KR Plant & Machinery

Plant1 – KR Plant

Plant2 – KR Machinery

Under KR Vehicles

Ford – KR Cars

Lancer – KR Bike

KR Office Equipment

- KR Computer- KR Xerox

KR EXP ASSET

- KR Tools- KR Mobiles

KR Intangible Assets

- KR Goodwill- KR Patent

2. Find Key flex field segment – Location:

Application – oracle Assets

Title – Location Flex field (BuilKRg/City/State/Country)

Structure – Vision Flex field Location Flex field

Segment – BuilKRg/City/State/Country

Under BuilKRg [Add New]


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Area 1

Area 2

Under City [New]

Chennai

Bangalore

Under State [New]

TamilNadu

Karnataka

Under Country [New]

India

3. Find key flex field segment: - Asset Key

Application – oracle Assets

Title – Asset key flex field

Structure – Asset Key Flex field

Segment – Asset Key (Some construction, electrical and mechanical related assets)

Under Asset Key

Factory

Office

In General Ledger – Aliases

For creation of Aliases, we have to create all the short names in General Ledger itself belong to particular company

After creation of key flex fields in order o fixed assets, switch over to Oracle Assets for giving linking categories to books

Setup>Asset System>Asset Categories (Linking Minor Assets to Major Assets with Dep Method)

Asset Categories – [F11] – KR LAND & BUILKRG – BLOCK 1

Category type – Non Lease


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Ownership – Owned

GL Accounts: Book – KR CORP BOOK

Asset Cost – 27-000-1620-0000-000

Asset Clearing – 27-000-1570-0000-000

Dep.Expense Segment – 7320

Accumulated Depreciation – 27-000-1620-0000-000

Bonus Expenses – 7320

Bonus Reserve – 27-000-1620-0000-000

Revaluation Reserve – 27-000-1670-0000-000

Revaluation Amortization – 27-000-1680-0000-000

CIP Cost – 27-000-1580-0000-000

CIP Clearing – 27-000-1590-0000-000

(Company – Department – Account – Sub Account – Product)

(Benchmark – Engineering Dept – Office Equipments – Air Conditioning/N.A- Samsung)

Under Asset Categories – Default Rules

Method – Straight Line

Life Years – 10 (Compulsory)

Months – 0 (Automatic Generated)

Salvage Value – 10%

Following Assets items linked to Asset Categories

KR Land & BuilKRg – Block 2

KR Plant & Machinery – Machine 1

KR Plant & Machinery – Machine 2

KR Vehicles – Ford

KR Vehicles – Benz

KR Vehicles – Lancer


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Setup>Asset System>Location (Linking Major Assets to Location)

Locations – [Country – State – City – BuilKRg]

This location talk is applicable for all assets

Depreciation Methods:

Setup>Depreciation>Methods (Defining Depreciation for Assets)

1. Flat Rate Method – On NBV/On Cost2. Calculated Method – On Cost Only – Not in NBV (Straight Line Method Only)3. Table Based Method – On NBV/On Cost 4. Production Method – On NBV/On Cost5. Formula Based Method – On NBV/On Cost

1. Flat Rate Method:

Method – KR Flat Method

Method Type – Flat

Calculation Basis – Cost

Dep: Use Recoverable Cost

Depreciation in Retired – Right

Exclude Salvage Value – As Required

Straight Line Method – Blank (Not Required)

Life Years – Blank (Not Required)

Rates: Basic – 10%

Adjusting – 10% (If any machine works above assigned hours, the excess hrs is adjusted)

Adjusted – 11%

2.Calculated Rate Method:

Method – KR CALC MET

Method Type – Calculated




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Exclude Salvage Value – Blank (Not Required)

Straight Line Method – Right

Life years – 10 (As Required) Rates: Not Applicable

3. Table Based Method:

Method – KR Table bas

Method Type – Table




Straight Line Method – As Required

Life years – 3

Prorate Periods per Year – 12

Rates:

YEAR PERIOD ANNUAL RATE

1 1(M) 0.3

2 1(M) 0.2

3 1(M) 0.5

Year:

If we defined Life year 3 means, the depreciation year will be 4 years. (1st year is auto generated. Because, If we purchased any asset May 2005 means, depreciation will be calculated for 05-06, 06-07, 07-08 and these years closed on April 2008 only. Therefore May 2005, May 2006, May 2007, April 2008 = 4 years will be generated for 3 years life)

Period:

Period defined as monthly. It takes 3 years for 12 months

(1st year – 1st month, 2nd year – 1st month, 3rd year – 1st month, 4th year – 1st month)

For 1st Month, we should change the depreciation rate (0.1 or 0.4 or 0.3 or 0.2)

It’s purely based on company policy for every month depreciation on table based depreciation


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Annual Rate:

The annual rate should be equal to 1 (0.1+0.4+0.3+0.2 = 1)

4. Production Based Method:

Method – KR PROD MET

Method Type – Production




Straight Line Method – Blank (Not Required)

Life years – Blank (Not Required)

Prorate Periods per Year – Blank (Not Required)

5. Formula Based Method

Method – KR FORMULA

Method Type – FORMULA



Exclude Salvage Value – As Required

Straight Line Method – Automatic generated

Life Years – As Required – 12

Prorate Periods per Year – 0

Define Formula:

DECODE (SIGN (<REMAINING LIFE 1>, 13), 1, 0.2, 0, 0.6,-1, 0.8)

It’s purely IF condition statement. It calculates depreciation based on remaining life years positive, negative or equal.

In this Test Formula, there are 3 operations such as,

1. Variables = Life/production capacity/remaining life1/&2/salvage value/short year.


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We can define the formulas for calculating depreciation based on the requirement of company

2. Functions = Decode, Greatest. Least, Power, Round, Sign, Sort

We can give the conditions with the help of above functions for defining the formulas.

3. Formulas = Defined formula added in that column

Quick codes: setup>asset system>quick codes

AdKRg Companies

After Setting up of Depreciation Methods, we can add companies and assets in accounting flex fields

Switch over to Oracle GL Operations for adKRg companies &assets

Setup>Financials>Flex fields>Key>Values

In this criteria, we can add – Company/Account/Department/Sub-Account/Product

1. Find Key Flexi field segment:- For AdKRg the segment we can follow the steps

Application – General Ledger

Title – Accounting Flex Field (For creating of account items)

Structure – Operations Accounting Flex field

Segment – Company/Account/Department/Sub-Account/Product

Already we have created,

Major Categories of Assets,

Minor Categories of Assets,

Calendar Years,

Fiscal Years

Prorate Conventions

Asset Keys

Locations &

Everything Linked to Book Controls

However, we can add certain assets under the minor categories as per Company Requirement.

DISTRIBUTION SET


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For Addition of Assets, We can switch over to Oracle Assets Operations

Assets>Asset Workbench

In Assets, we are having New & Quick Additions. (Other options are based on requirement)

New:

a) Asset details:We can fill – up the asset details (TN05 – D1000 – Benz Car – 2 Units) and link the categories as instructed.

b) Source Lines: Supplier – Invoice Number, Name, PO Number (Continue & Then)c) Books: For this new benz car, we can add the Corp Book and enter the cost of assets

(Continue)However, YTD Depreciation = Previous Year Manual Depreciation ValuesSalvage Value = Scrap Value (Original Cost – Scrap value = Recoverable Cost)

d) Assignments: No. Of Units under 2 Units, User Name, Expenses Account, Location (Linkings)

With the help of above options, we have created new Benz Car – 2 Units with all requirements.

Quick Additions: ExcluKRg detailed requirements

We can fill – up the new asset details in quick additions (TN05 – D2000 – Ford Car – 1 Units) and link the categories as instructed.

Result: Transaction Saved & Reference Numbers are – 4481 & 4482

Add additions for all Assets

For Assigning Depreciation: After Creation of Various Assets

Minimize all the existing windows and go to Setup>Asset system>Asset Categories

In this you can define/ already defined depreciation methods for assets as per company requirement. (We can change salvage value % manually)

Then, Assets>Asset Workbench

Now, we can attach the book and enter the values of assets and select depreciation.

It permits to view financial information and other information of particular assets

For Calculating Depreciation:

Depreciation>Run Depreciation

Book: KR CORP Book


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Period: Monthly Closing Period

Close Period: Enable (Once the program closes the period, we cannot reopen the same period)

Now we can go to Asset workbench and view the financial information of all the assets incluKRg calculated depreciation values based on the allocated depreciation methods

(We cannot perform a Reserve Adjustment on fully retired assets)

Switch responsibility to Payables

Mass Addition:

Enter an invoice in AP Submit a program payables transfer to GL In GL, query the batch and post it. (Posting – Optional) In AP, Initiate a program “Mass Addition Create” In FA, “Prepare Mass Addition” – Run In FA run the “Post Mass Addition”

In Detail,

1. Enter an invoice in AP

Switch over to AP and create an invoice.

Invoices>Entry>Invoice (AP)

Enter an Invoice as Instructed and go to distribution column in order to cost of the asset and other freight expenses. (50000+5000=55000 Net value of Asset);

Track the freight with asset by (View – Show Field – Track Asset) asset – 1570 & Freight – 7220

Actions: Approval: Force Approval (Enable) &Create Accounting (Enable)

Status: Validated after the approval process

2. Submit a program payable transfer to GL:

Run: Other>Request>Run

Single Request – Name: Payables transfers to GL

Attach the book and Make the parameter dates for submit the program

Go to view and request – Refresh It – Status – Completed – Copy the Batch Name from output

3. In GL, Query the batch and post it (Posting – Optional) (GL)

Journals>Enter


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Paste the copied batch and find it.

Status: UnPosted in GL

Click the Post Button and then it will be posted in GL

Status: Posted in GL

4. In AP, Initiate a program “Mass Addition Create” (AP)

Other>Requests>Run

Single Request – ‘Mass Additions Create Report’

Parameter – KR CORP Book

Submit and view – Request and Find the status: Completed & Normal

5. In FA, “Prepare Mass Addition” – Run (FA)

Mass Additions>Prepare Mass Additions

Attach your Book – KR CORP Book

Find the Mass Additions Summary – For: Split/Add to Asset/Merge

In that, we should open and view the status – On Hold

Then, we can manually change it as Post

6. In FA, “Post Mass Addition” – Run (FA)

In Mass Additions Column – Attach the Parameter (Attach the KR CORP Book) – Submit and View Request – It has been Posted

Now, we can go to Asset Work Bench and can view attached assets are posted.

(The same steps of 5 & 6 will be followed for Split/Add to Asset/Merge)

Creation of CIP Assets:

Switch over to GL

Setup>Financials>Flex Field>Key>Values

1. Find key flex field segment: - Category (Create a Major)




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Find:

New – KR CIP Assets

2. Find Key Flexi Field segment: - Category (Create a Minor Category)





Independent Value: KR CIP Assets (Created Major Category)

Under the Major Category, we can create a new minor category

New – KR CIP Project 1

The new CIP Assets are created in Oracle Database and should give link to Asset Categories

Switch over to Assets, V.O (USA)

Setup>Asset System>Asset Categories

Asset Categories – KR CIP ASSETS

Category Type – Non Lease

Ownership – Owned


Asset Cost – 27-110-7410-0000-000

Asset Clearing – 27-110-1510-0000-000

Depreciation Expense Segment – 7320

Bonus Reserve – 27-000-7410-0000-000



CIP Cost – 27-000-1580-0000-000


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CIP Clearing – 27-000-1590-0000-000

The Created categories are linked to asset categories. Now, we can add the CIP assets in Asset Workbench.

For view the created CIP assets in Asset Workbench, attach book and Find

Financial Enquiry = 0

Then go to Source Lines and enter the values = Rs.20000

Now, Financial enquiry = Rs.20000

Then in Books, attach book and press Tab. If we don’t want depreciation for CIP Assets, disable the depreciation box.

Capitalize the CIP Assets

Assets>Capitalize>CIP Asset

Attach Book and Find

Enable the particular asset as Capitalize and save it

Now, the CIP asset converted as Capitalized.

We can reverse that particular asset with the help of reversal of capitalize asset.

LEASE:

Financial Lease – “Depreciation” applicable Operational Lease – No Depreciation

Conditions:

Transfer of ownership at the end of lease terms Bargain purchase option – Purchase Price (Fair Market Value) Economic Life (Lease Period => 75 % of Economic Life)

o (If it’s > than 75 % of Asset Life, it can be capitalized else it will be treated operating asset)

Net Present Value (NPV) of Lease Rentals => 90 % of Fair Market Value

The above conditions should satisfy in leasing functions.

Steps in Leasing Function: (Oracle)

Creating Lease Categories Entering Lease Details Entering Lease Payment Details AdKRg on Assets


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1. For Creating Lease Assets (Switch to GL)

Setup>Financials>Flex Field>Key>Values

1. Find Key flex field segment: - Category (Create a Major)

Application – Oracle Assets Title – Category Flex field Structure – Vision Category Flex field Segment – Major Category

Find:

New – KR LEASE Assets

2. Find Key Flexi Field segment: - Category (Create a Minor Category)

Application – Oracle Assets Title – Category Flex field Structure – Vision Category Flex field Segment – Major Category Independent Value: KR LEASE Assets (Created Major Category) Under the Major Category, we can create a new minor category New – KR LEASE – A1 The new Lease assets are created in Oracle Database and should give link to Asset

Categories Switch over to Assets, V.O (USA)

Setup>Asset System>Asset Categories

Asset Categories – KR LEASE

Category Type – Lease

Ownership – Lease


Asset Cost – 01-730-7320-0000-000

Asset Clearing – 01-730-9950-0000-000

Dep.Expense Segment – 7320

Accumulated Depreciation - 01-730-7320-0000-000

Bonus Expenses - 7320

Bonus Reserve – 01-730-7320-0000-000


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CIP Cost – 01-730-7440-0000-000

CIP Clearing – 01-730-9950-0000-000

Now we had given link Lease Accountings (GL) to Asset Categories and setting default depreciations.

2. Entering Lease Details: (FA)

Setup>Asset system>Leases>Lease Details

Lease Number: KR Lease – 2

Others – Optional

Payment Schedule – To be defined

Lease Type: Operating (Automatic)

Payment Schedule:

Payment Schedule – KR Lease 2 (Any Name)

Lease Date – 01-May-2005

Interest Rate: 5 %

CompounKRg Frequency – Monthly/Quarterly/Semi-Annually/Annually

Present Value – System will calculate based on Lease Payments

For Example, we have leased one asset and ready to pay Rs.5000/- P.M. for the period of 10 Months.

Now, we have to define the above items in lease payment schedule

Start Date –Lease Amount per Month – No. of Installments – Lease Payment Period – End Date

01-May-2005 5000 10 Annually 01-Aug-07

CompounKRg Frequency

Monthly – It means, the payment date automatically shows when that data arrive

It’s applicable for all quarterly, semi – annually, annually

Payment Types


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Annuity Payment – Annual Payment

Balloon payment – Fluctuated on Monthly Basis

Bargain – Based on Communication

Others

Based on the inputs, it calculates the lease payments along with interest paid for that asset and it shows the net present value. (Rs.5000/- for 10 months = Rs.50000/- means, then net present value is automatically generated Rs.47,311.72 with the help of interest rate.

Capitalization/Operating

Lease Term – 10

Asset Life – 12

Therefore, if resulted the lease payments schedules based on our inputs and It will be capitalized otherwise, the test result will be operating.

Else, based on market evaluation we found that asset value is Rs.52000/-

Calculated (NPV) = Rs.47, 311.72(For 10 Installments of Rs.5000/-)

Result to Capitalization

If enter Rs.52000/- in Fair Value, the Cost to Capitalize is Rs.47, 311.72 (NPV is less than Fair)

If enter Rs.45000/- in Fair Value, the Cost of Capitalize is Rs.45, 000.00 (Fair value is less than NPV)

If the fair market value exceeds present value, the lease term should be 75 % greater Else, the present value should be 90 % of fair market value.

AdKRg Lease Assets:

Lease Assets can be added through detailed addition only whereas not from quick addition.

Assets>Asset Workbench (FA)

In this asset workbench, we can add the lease assets with new option only.

Give the new assets name and assign categories (Lease Categories – Attachment) and attach the lease number, which you have entered in lease details and lease payment schedule.

It helps to capitalize the lease asset (Already used as lease asset and our management would like capitalize such asset due to less fair market value) and assign all the sources with respective account book and concerned location and attach your Corporate Book.

The above categories and books are related to ‘CORPORATE BOOK’ only.


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Now, we study about ‘BUDGET BOOK’

BUDGET BOOK

The budget book will be used only for internal MIS purpose.

There are certain steps to create and function the budget book. They are,

1. Create a budget book – Associate to corporate book

2. Enter the budget amount

3. Create Budget assets

4. Projecting depreciation

1. Create a budget book

Book Controls –KR BUDGET BOOK – Associate to KR Corp Book

Calendar:

GL Set of Books – Vision Operation

Depreciation/Fiscal/Prorate – Automatic generation by definition of KR

Current Period – We defined from Apr -05. However, it takes May – 05

Natural Accounts: As defined in KR CORP Book

2. Enter the budget amount

Budget>Enter (FA)

Attach Budget Book – KR BUDGET BOOK

Attach the category – KR PLANT & MACHI –MACHINE 1

Mention the expense account – 10-110-7320-0000-000

Then define the budget amount for that particular asset for all the fiscal year periods.

(1000-1500-2000-2500……6500)

Save it and Upload the created budget.

Budget>Upload (FA)

Attach book and enable delete existing budget book

Then, run the assigned budget book for the particular asset.

After uploaKRg Capital Budget, we need to do the following process to get budget

Depreciation:


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1. Run depreciation for regular asset depreciation for that current month – Corp Book>Depreciation>Run (FA) – To run the budget depreciation, we should run the actual asset depreciation first.

2. Run depreciation for Budget Book for that current month – Budget Book>Other>Requests>Run (FA) – Single Request – Budget to Actual Report and Parameter: Budget Book & Corporate Period – SubmitView – Request and View Output.Now, we can get budget depreciation as required.

Depreciation Projection:

1. Run the actual depreciation for the assets – Depreciation>Run Depreciation (FA)

2. For depreciation projection – Depreciation>Projections (FA)

Projection Calendar – KR Asset Cal

No. of Periods – 5 [If KR Asset Calendar is 12 months that is annually, the number of period is next 5 annual years. It’s like annually/quarterly/monthly

3. Starting Period – As Required

4. Books – Attach your book – Maximum 4 books and all of the books must use same account structure

5. The report can generate depreciation Projections based on Cost Center & Asset Center

What If Analysis:

We can analyze the particular asset based on the following options in order to take management decision. We are regularly using the one method with rates for that asset.

However this what if analysis helps to take some management decisions

- Different Depreciation methods

- Different Rates of depreciation

- Different conventions & requirement

Rollback Depreciation:

It helps to roll back the calculated depreciation, if the end user forgot to insert any assets of adjustments.

The following process and limitation involves in this roll back depreciation.

1. We will run the depreciation for current month period with closure of current period

2. It calculates depreciation and assigned to all the assets

3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes journal entry implications reduce the asset value based on depreciation values.

This is normal process. However, the end user can make any mistakes or forget to make any adjustments. Hence, the end user should follow the following steps to run the depreciation.


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1. We will run the depreciation for current month period but should not close current period

2. It calculates depreciation and assigned to all the assets

3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes journal entry implications reduce the asset value based on depreciation values.

In this situation, end user found that he forgot to add some assets or wants to make adjustments. He would like to rollback the calculated depreciation.

Since the current period is not closed (Period is opened) when he ran depreciation, he can rollback the calculated depreciations.

Roll back will be possible when the period is opened only. (Period should not close at the time of running the depreciation)

Now the end user operates the Rollback Depreciation Depreciation>Rollback Depreciation with Corporate Book and Current Month Period (Status: Open).

Submit & View – Request & View Output.

It revert all the calculated depreciations for all the assets.

Meanwhile, the end user should pass the reversal entry in GL.

But with the help of interface only, it should pass the reversal entry in GL. (In practical, this option is not possible). Therefore, end user goes to GL and passes the reversal entry.

Then again end user can make adjustments and run the depreciation.

This is what the process and limitation of Rollback depreciations.

Warranties:

It helps to fix the warranty details for particular asset.

Setup>Asset system>Warranties (FA)

- Assign Asset Warranty Number- Define the warranty period starting and end date- Define the value of asset and required details

Finally, it assigns the warranty details for the required asset

Maintenance:

It helps to assign and manage the maintenance cost of particular asset.

Assets>Maintenance>View Details (FA)

Click – F11


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Paste the maintenance Asset Number

Click – Control F11

The assigned schedule event will calculate the maintenance services cost and details for that particular asset for given period.

TAX BOOK:

[To track different depreciation rates or methods as per company law and rules of country]

Principles of Tax Book:

1. No Direct Additions of Assets2. Assets are added by running

- Initial Mass Copy- Periodic Mass Copy

Initial Mass Copy: (For Transfer of asset information to Tax Book)

It will run at one time The first year/previous year depreciation should be calculated. It means the end of fiscal

year should be closed. Then only initial mass copy can be run. Initial mass copy will run at once in life of company In case the end user forgot to add one asset in last fiscal year, he cannot take the

purchase date of that asset. Instead of that, he can take placed in service date only.

Periodic Mass Copy:

- It will run as and when required

In Tax Book function of FA,

- The asset information only will be copy from corporate book and calculate depreciation based on defined tax rates and rules.

- While copying the assets from corporate book to tax book, the calculated depreciation of corporate book will not copied to tax book.

- Tax Book can be a multiple book. But, corporate book will be only one.

Process:

Assets-> Corporate Book -> Tax Book

Setup>Asset system>Book Controls (FA)

Create: KR TAX BOOK (Class: Tax)

Associated Corp Book: KR Corp Book

Allow GL Posting: Disable (To avoid duplicate depreciation entries in corporate book entries)


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Assign the Calendar, Accounting Rules, Natural Accounts & Journal Categories

Tax Rules:

Allow Reserve Adjustments – Accumulated depreciation can be overwritten

Allow Cost Ceiling – For calculating tax depreciation, we can fix ceilings (If Ceiling Rs.1 lakh. The tax depreciation will calculate for that Rs.1 Lakh only whereas the asset value is of Rs.5 Lakh)

Allow Expense Ceilings – Fix the ceilings for calculating tax depreciation for expensed assets

2. Link Tax Book to Required Asset Categories

Category: As Required

Book: KR Tax Book & Define the account functions and set the default depreciation rules.

Now, we have created Tax Book and given link to particular asset categories.

We can process the function of Initial mass Copy & Periodic mass Copy

Tax>Initial Mass Copy (FA)

Name: Initial Mass Copy

Parameters: Attach KR Tax Book

Submit – View Request – Status: CompletedThen, the corporate book assets all are copied in tax book

We can view the assets +Asset Workbench: Find and select your assets.

It shows the assets namely, Corporate Book Asset Value & Tax Book Asset Value

Tax>Periodic Mass Copy (FA)

Name: Periodic Mass Copy

Parameters: Attach KR Tax Book

Corporate Period: Define

Submit –View Request – Status: Completed & View Report

Then, the corporate book assets all are copied in tax book based on period wise (Current year assets will be copied)

We can view the assets +Asset Workbench: Find and select your assets.

It shows the assets namely – Corporate Book Asset Value & Tax Book Asset value

Addition by Source Report:


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Other>Request >Run (FA)

Name: Addition by Source Report

Parameter: Attach book and periods

Submit – View Request – Status: Completed & View Report

Ceilings:

Setup>Depreciation>Ceilings (FA)

Create a new ceiling name and assign the periods (Start & End) with ceiling amounts

It helps to calculate tax depreciation based on the ceilings

Mass Transactions:

1. Mass Transfer

Individual Transfer:

Select an asset in workbench and go to Assignment.

Enter -1 in existing Unit Change Column and Enter 1 in next row for the same asset with another account and some other locations.

Make it done and view the same asset once again.

It has been transferred from one account to another account.

Mass Transfer: Mass Transactions>Transfer (FA)

Entire assets can be transferred from one place to another place/ from one location to another location. Enter all the required items and make it preview – It will generate Mass Transaction Number

Reopen the mass transfer window – Click F11

Paste the performed Mass Transaction Number – Click – Ctrl F11 – Run it

View – Request – Find – Submit – Status: Completed

2. Reclassification>Mass Transaction>Reclassification (FA)

Reclassify an asset from one category to another category

Reclassify an asset from one category to another category

Book: Attach your corporate book


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Details: Assign all the details of particular asset, which we could like to change from existing category to another category.

(Fully Reserved Assets = Full value of an asset incluKRg accumulated depreciation)

New Category: Assign the new category as would like to reclassify another category asset

- Descriptive Flex Field: The descriptive FF of an asset also will apply to another category while reclassification

- Inherit Depreciation Rules of New Category: Takeover of new category depreciation rules.

Otherwise, after reclassification, those assets will take over the old category depreciation rules.

- Amortize Adjustments While inherit depreciation rules of new category, the amortize adjustment also should be enable. Else, the adjustments will be expensed.

Enter all the required items and make it preview – It will generate Mass Transaction Number


Paste the performed Mass Transaction Number – Click –Ctrl F11 – Run it


The performed reclassification function give results like, the reclassified asset changed from old category to new category.

3. Mass Changes>Mass Transactions>Changes (FA)

Changing Depreciation and Convention methods for particular asset.

Book: Attach your corporate Book

Details: Assign asset details –Numbers, Placed in services & Category

Enter all the required items and make it preview – It will generate Mass Transaction Number


Paste the performed Mass Transaction Number – Click –Ctrl F11 – Run it


The performed changes function give results like, the changed asset has new depreciation methods and conventions.

4. Revaluations>Mass Transactions>Revaluations (FA)

Revaluation of an individual or group of assets (Revalue of existing value of asset)


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Revalue Fully Reserved Assets – Revaluation of depreciated assets incl. Accumulated dep.

Life Extension Ceiling – Fix ceiling for life extension asset


Details: Assign asset category details

Rate: Inflation/ Deflation Rates as decided upon the existing value of said asset (%)

Make it preview – It will generate Mass Transaction Number


Paste the performed Mass Transaction Number – Click – Ctrl F11 – Run it


The performed changes function give results like, the revalued asset having new values as revaluated.

5. Retirement>Mass Transactions>Retirements>Create and Reinstate (FA)

Making retirement of particular asset (Making the value of asset is 00 or expensed)


Retirement Type: Destroy/Scrap/Theft/Sale/Retirement/Causality

Proceeds of Sale: If we would like to sale, the sale amount should be entered

Cost of Removal: If we would like to sale without some additional parts, we should remove that value of additional parts.

Then define, Account, location and category of particular asset

Click Create and it will generate Mass Transaction Number.

Paste the performed mass transaction number, Click F11

Then, Click Retire


We can view the transaction history +Inquiry + Transaction History

Attach Book and find the retired asset. It will give transaction history of retired asset.

To view Journal Voucher of any transaction, Tools – View Accounting

Insurance:


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Assets>Insurance>Insurance Policy Details (FA)

Find Asset in our corporate book and type policy number and Insurance company details

It contains the base value of asset.

Maintenance – Calculation Method (Value as new/ Market value/ Manual value)

Lines – Insurance Category (Having various insurance options taken for an asset. Various classes against selected Insurance category

Insurance Index: Setup>Asset system>Price Index (FA)– Attach Index after created.

Give a new name Index (General/Full Cost/Market value)

Value % - 100 % for particular period to period, 101 % for particular period

Enter current value of asset and save it

Assets>Insurance>Insurance Calculation Routine (FA)

Parameters:

Attach book and asset.

Submit and View Request – Status – Completed

This is for assigning insurance details for particular asset at any time.

Journal Categories:

Standard – Attach Book & Submit Request after run the functions.

Deferred – As Decided

Rollback – Rollback the journal entries which is posted in GL

Use: Inquiry – Transaction History

Attach Book and Asset number – Find

Tools – View Accounting

Accounting Methods

Cash – you account only for payments and do not record liability information for invoices. The payment accounting entries typically debit your expense or asset Account.

Prorate convention lab:

Setup>Asset system> Prorate convention


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KR PPC – prior period convention

KR Fiscal year

From date To date Prorate date

01-JAN-05 31-JAN-05 01-DEC-04

Click and continue down.

ORACLE – ACCOUNTS PAYABLE

Accounts Payable: Effective Management of Creditors

Correct recorKRg for payments Scheduling the invoices for payment

Business Flows:

Place a requisition with purchase

Requisition for Quotation from the supplier

Receive quotations and select the best one Purchase Order

Place a purchase order to that supplier

Receive the goods along with the Invoice

Record the Invoice, Validate & Approve

Yes – Avail Discount

Make Payments Payables


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No – Pay with Interest

System Flows:

Record the invoice from the supplier (Check Supplier) Process the invoice Accounting the transactions represented in the invoice Schedule the invoices (Due dates/Number of Installments) Make payment to supplier Reconcile with bank Posting (Transfer all invoices and payments to GL) Reports (For management)

Information Flow:

Choose SOB

Financial Options

Payable Options

Supplier

Supplier site

Invoice Work Bench

Distribution Line level Schedule Payment level

(Allocate to Cost Center) (Payment terms due date)

Financial Options:

Setup>options>Financials

Future Periods: As per our requirement – 12 (Months)/ 4 (Quarters)

Tab1: Accounting: KR – 000 – 2210 – 0000 – 000

KR – 000 – 1340 – 0000 – 000 (Advance)

KR – 000 – 2580 – 0000 – 000 (PDC Payment)

KR – 740 – 7825– 0000 – 000 (Discounts)

KR – 740 – 7842 – 0000 – 000 (Variance) Gain

KR – 740 – 7844 – 0000 – 000 (Variance) Loss


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KR – 110 – 7699 – 0000 – 000 (Miscellaneous)

Tab2:

Supplier Entry: RFQ – Requisition for Quotation

Hold Unmatched Invoice – If invoice is not match with PO, the invoice will be hold

Invoice Match Option: Purchase Order/Receipt

Entry: Automatic – The sequence number will be automatic

Type: Numeric – For supplier/Alphabetic – For Supplier

Tab3: Supplier – Payable: Term – Immediate/30 Days as per contract

Method – Cheque: Manual Payment

Clearing: Within organization

Electronic: Bank to Supplier

Wire – Tele Transfer

Receipt Acceptance Days – Grace Days for making payment

- Always Discount (Pay with discount)- Pay Alone (If enable this, that payment will run)

Tab4: Supplier Purchasing: Ship to location – To Factory (Goods To) – Based on Receiver Request

Bill to Location – To Office (Bills To)

Invoice Organization – Based on Receiver Request

Via – Agent (Air/Ship)

FOB – Transfer (Territory)

Freight – Due/Cash on Delivery/ Etc.

Tab5: Encumbrance: Use Requisition Encumbrance – Reserve funds at the time of raise request

USE PO Encumbrance – Reserve funds at the time of raise purchase order

Tab6: Tax: Default Tax Code (Financial Tax Option) – Based on Nation

Enable Recoverable Tax – Define recovery rate while raising an invoice


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Sales tax is include – When receive payment from client 100 % will be recovered

(If its disable, the sales tax will not be recover from client)

Up – 75.56 = 76

Rounding Rule: Down – 75.56 = 75

Nearest – 75.56 = 76

Precise: 2 (No. of decimals)

Min Account: 0.5 (Rounding Rule)

Tab7: HR: If any of our staff meet any expenses or raise any invoice, company has to Pay/Reimburse. Therefore, we have to define HR

Expense Reimbursement – Payment to Office/Payment to Home

Method – As Instructed

Payable Options:

Setup>Options>Payable Options

Primary Account Method:

Accrual: Provisional Entry

Cash: Direct cash payment to particular account

Secondary Account Method:

Cash: Cash Account (Payment Invoice)

None: Just Accrual only and not for payment

Automatic Offset Method:

Adjusting expenses to sub departments or distributing to sub departments

(Making Cr. Entry to ‘0’ and distributing)

- None- Balancing- Account

None: No Distribution

Balancing: If it enabled, the particular payable amount is distribute department accounts


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01-000-2210 =$10000 (Invoice Header)

01-110-7420 =$5000 (Dr.)

01-120-7420 =$5000 (Dr.)

01-110-2210 =$5000 (Cr.)

01-120-2210 =$5000 (Cr.)

Account: Just generate distributing entries only

01-110-2210 =$5000 (Cr.)

01-120-2210 =$5000 (Cr.)

(Prevent Pre-payment: Do not want to make advance payment)

Transfer to General Ledger: (Interface)

Transactions

In Detail – It will transfer those payable transactions to GL with full details

Account Date – Transferring data based on accounting date

Account Period – Transferring data based on accounting period

Transfer Report Book – All other reports also transfer to GL (Like Currency, etc.)

Submits Journal Import – Ledger posting in GL

Allow override – It can allow override permission in GL parameters while GL posting

Currency:

Multiple – Various Currency

Exchange Rate Entry – It can generate exchange fluctuation entry

Calculation user exchange rate – If it’s enabling, we have to define exchange rate type

Type – User/Corporate/Spot/User Define/EMU – European Monetary User

Our Invoice value: AUD 100000

Received = USD 50000

0.5 USD = 1 AUD

Therefore, AUD 100000 x 0.5 = USD 50000


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We can change the currency user type as required

In GL Account

Realization gain = 01-110-7842

Realization loss = 01-740-7844

Realization Round = 01-740-7820

Tab5: Supplier:

Invoice Tolerances:

Pay Group – Just create a pay group for making payment of more invoices against your particular supplier

Invoice currency

Term Date Basis – Based on Requirement (System Date/Goods Receive Date/Invoice Received Date)

Pay Date – Due/Discount

Tax Report – If we want submit report to our government, enable it

Tab6: Invoice:

User Invoice Approval Workflow – That invoice go to particular editor/ Worker for checking purpose and approval purpose. Because, he only completed that work and invoice raised against his work only.

Allow Force Approval – Need not send invoice to workflow people. (Invoice Raiser or Director can approve the invoice)

Require Validation – It will check the calculations, tax codes, etc. Then only, it will allow making payment

Adjustment to Paid – After making payment

Re-calculation – Can recalculate the entire thing

Auto Create Freight – Define freight account. It will distribute the freight amount to one department (Cost Center)

Confirm Date – If date is not in invoice, system will take present date as invoice.

Allows Online Validation – It will validate the invoice online

Allow document calculation override – That invoice can be override


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GL Date Basis Payment

For Invoice Advance Payment – As required

System Date Build pre-pay – Account should be defined in financial option

Good Received Date

Invoice Date

1. Pay Group:

Setups>Lookups>Purchasing

Type: PA% GR% (Query & F11) pay group Access Level: User

Code: KR PAY GROUP (Create)

From: 01-APR-2006 (Create)

Access Level:

User – User can create

Extensible – User can modify the existing pay group

System – User cannot modify the existing pay group

2. Vendor Type: (Supplier Type)

Setup>Lookups>Purchasing

Type: VEN%TY% (Query & Control F11) Access Level: User

Code: KR SUPPLIER TYPE (Create)

3. Distribution Sets:

Setup>Invoice>Distribution Sets

- Full Distribution: On % Basis (We can change this distribution as require)

Name: KR FULL DISTRIBUTION Type: Full

Num % Account

1 40 33-110-7450-0000-000 (KR Company Telephone Expenses) for cash division


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2 60 33-120-7450-0000-000 (KR Company Telephone Expenses) for Accounts division

- Skeleton Distribution: Full amount can be distribute for one department/At invoice workbench, we can distribute the amount manually

Name: KR SKELETON DISTRIBUTION Type: Skeleton

Num % Account

1 0 33-110-7450-0000-000 (KR Company Telephone Expenses)

2 0 33-120-7450-0000-000 (KR Company Telephone Expenses)

3. Payment Terms:

Setup>Invoice>Payment>Terms

KR IMMEDIATE PAY: % Due – 100 %; Days – 0 (Save it)

KR CREDIT DAYS PAY: % Due – 100 %; Days – 30

First Document – 5% & 10 days (If we paid within 10 days, 5% is discount)

Second Discount – 10 % & 20 days (If we paid within 20 days, 10% discount)

Save.

KR FIXED DATE PAY: %Due – 100%, Fixed Date – 30 –MAY-2006

KR % BASIS PAY: %Due – 70%, Days – 10 (Release 70% after 10 days)

%Due – 30 %, Days – 20 (Release 30 % after 20 days)

KR PROXIMA PAY: % Due – 100%; Day of month – 25; Months Ahead – 0

(Invoice – 10.04.06; If month ahead is 0 -25th April is due date)

(Invoice – 10.04.06; If month ahead is 1 -25th May is due date)

KR AMOUNT BASIS PAY: Amount – 5000; Days – 0 (Release First 5000 immediate)

Amount – 10000; Days – 5 (Release next 10000 after 5D/5th day)

Amount – 0; Days – 10 (Release Balance after 10 Days 10th Day)

(Add): KR Installment – see notes.


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KR SPECIAL CAL PAY: (Before creating this payment term, define special calendar)

Setup>Calendar>Special Calendar

Type of Calendar: Payment Terms

Name: KR SPECIAL CAL

Periods per Year: 4 (4 Quarter in a year)

P1 2006 1 01-APR-06 30-JUN-06 15-JUL-06

P2 2006 2 01-JUL-06 30-SEP-0 15-OCT-06

P3 2006 3 01-Oct-06 31-DEC-06 15-JAN-07

P4 2006 4 01-JAN-07 31-MAR-07 15-APR-07

Now,

Name: KR SPECIAL CAL PAY;

% Due – 100; Calendar: KR SPECIAL CAL

Save it

4. Supplier: (Creditors/Vendors)

Supplier>Entry

Supplier Name: KR Supplier

Taxpayer ID & Tax Registration Number: When required

Inactive on: Fix the closing period for particular supplier

Alternate Name: Applicable only for Japanese Customer

14tabs:

I. General

Parent Supplier No: If Applicable (If subsidiary/franchise of any present)

Customer Number: For our tracking purpose -> No. allotted by supplier as his supplier

II. Classification

Type: KR Supplier (Attach) (created in lookups – purchasing)

One Time: For one time purpose


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SIC: Standard Industry Code

III. Accounting:

In single account, we can have multiple set-of-books

IV. Control:

Invoice Amount Limit: If required for particular supplier

Invoice Match Option: Purchase order/Receipt

HolKRg invoice based on above match: Hold all /Hold unmatched/Hold un-validated invoice

Payment Hold Reason: If hold the invoice, holKRg reason should be defined

V. Payment:

Terms: KR Immediate Pay (Attach as required)

Pay Group: KR Pay Group (Attach)

Invoice & Payment Currency: USD

Payment Priority: 99 (Ninety nine means this supplier is not an urgent to make payment)

Term Date Basis: Invoice/Goods Received/Invoice Received/System (As required)

Pay Date Basis: Due/Discount (Due in normal)

Payment Method: Check/Clearing/Electronic/Wore (As required)

Always Take Discount: If it is enabled, all the invoices are eligible for avail discount

Exclude Freight from Discount: Availing discount on value of goods only exclude freight

Allow Interest Invoice: It will calculate interest on % basis of delayed payment/defined

Pay Alone: If it is enabled, that invoice can be paid alone and it will not include payment batches

VI. Bank Accounts:

Supplier bank account and branch details for making electronic payments

VII.EDI:

Electronic Data Processing

It’s applicable when we use any particular gateway of payment

VIII. Invoice Tax:


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Entering Supplier invoice standard tax code

Automatic Calculation: For particular customer

Calculation level: Header/Tax code/Line (Enable – Allow calculation override)

Rounding Rule: Nearest/Up/Down (Enable – Distribution amounts includes tax)

IX. WithholKRg Tax: (TDS)

If it’s enabled, the TDS is applicable for all the invoices of particular customer

WithholKRg Tax Group: Attach your tax group

X. Tax Reporting:

For tax reporting purpose

XI. Purchasing:

Supplier goods location and billing locations details

Purchase order hold and holKRg reason and shipping details

XII. Receiving:

Goods receiving location, approval and receipt details

XIII. Supplier Sites: (Bottom of supplier window)

For senKRg PO to one site

For senKRg Invoices to another site

For senKRg payment to another site for one supplier

IX. Supplier Site: KR Site I (Create)

Primary Pay: Enable (Whenever transact this supplier, this site will be primary and it will automatically select all terms and pay group)

After all the above steps, we can enter an invoice.

Invoice:

Invoices>Entry>Invoices

Standard KR Supplier 01-APR-06 KR INV01 10,000


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(Attach)

Here, we can change following items:

If we assign defined items in Supplier window, it will display automatically while raising invoice

Payment Terms: As required

Distribution Sets: Full Distribution /Skeleton Distribution – Manually enter the values in Sets

After enter the invoice details, the following actions to be taken for booking

Actions – Validate – Approval – Create Accounting

Invoice Book Entry:

Charge 4000 (33-110-7450-0000-000)

Charge 6000 (33-120-7450-0000-000)

Liability 10000 (33-000-2210-0000-000)

If distribution is not allocated, the invoice will be hold

For making the new invoice with the existing record: Edit – Duplicate – Record above

In that we can change the data as required

Split Schedule in Invoice:

Scheduled Payments in Invoice Window:

The invoice gross amount can be changed and click split schedule

The remaining amount goes to next line and we can change the date for the same invoice.

Freight Amount: (IncluKRg Invoice)

Enter an invoice Rs.10000

Remove: Distribution Set (Compulsory)

Folder – Show Field: Create Freight Distribution against show field: Freight Amount

After entering the invoice data.

Click Distribution:

Define freight distribution account and click allocate to prorate the freight amount to departments

The balance invoice amount can be distributed to departments as required


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Validate – Approve - Create Accounting

Item 8000 (33-110-7450-0000-000)

Freight 2000 (33-110-7220-0000-000)

Item 10000 (33-000-2210-0000-000)

Automatic Create Freight Distribution:

In Payable window – Invoice – Enable (Freight incluKRg invoice –

(33-110-7220-0000-000)

(Now, we can book an invoice in invoice workbench and Folder – show field – Create and enter the freight amount. It will automatically generate freight distributions to departments)

Debit Memo & Credit Memo:

Debit Memo – Purchaser/Receiver sent to Seller/Supplier (To Reduce the supplier balance)

Credit Memo – Seller/Supplier send to Purchaser/Receiver (--------------------------do-------------------------)

(Return goods, Damage, Excess Goods)

4 Ways to Create:

1. Manually2. Distribution Set3. Matching it with an invoice4. Matching it to a specific distribution line

Invoices>Entry>Invoices

The invoice booked for the value of Rs.10000 – KR INV11

Now, Return the goods to supplier for the value of Rs.1500 (Purchase Returns)

Therefore, raise a debit memo to supplier

1. Manually – Remove Distribution

Debit Memo KR Supplier 01-APR-06 KR DM07 (-1500)

(Attach)

No Distribution – Validate – Create Accounting


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Entry:

Charge – 1500 (33-000-7450-0000-000 Cr.)

Liability – 1500 (33-000-2210-0000-000 Dr.)

2. Distribution Set

Debit Memo KR Supplier 01-APR-06 KR DM08 (-1500)

(Attach)

KR Full Distribution – Validate – Create Accounting

Entry:

Charge – 1500 (33-110-7450-0000-000 Cr.)

Charge – 500 (33-110-7450-0000-000 Cr.)

Liability – 1500 (33-000-2210-0000-000 Dr.)

We can see the balance amount for that particular supplier of entered a debit memo.

Here we have not matched with an invoice and just see the supplier balance after debit memo

3. Matching with an invoice

Invoice No: KRINV 12

Amount: Rs.10000

Distribution: KR FULL DISTRIBUTION

Validate

Debit Memo No: KR DM 08

Amount: (-1500)

Distribution: KR FULL DISTRIBUTION

Validate

After enter the above debit memo, Click Match with Invoice

After Invoice: KR INV 12


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Match: Enable and enter the amount (-1500)

Match it

Revalidate – Approve – Create Accounting

Charge 6000 (33-110-7450-0000-000 Dr.)

Charge 4000 (33-120-7450-0000-000 Dr.)

Debit Memo 1500 (33-000-7450-0000-000 Cr.)

Liability 8500 (33-000-2210-0000-000 Cr.)

Invoice Detail: View – Find: Attach KR Supplier & KR INV 12

Click: Calculate Balance Sheet – Calculate – Invoices

Result: Invoice Amount – 10000

Debit memo – 1500

Un-paid amount – 8500

4. Matching it to a Specific Distribution Line

After match the debit memo with particular invoice, we can distribute the debit memo amount in that match window itself – Click: Distribute (Set the allocations)

Then Click Match – Validate in invoice window – Create Accounting

Entry:

Charge 6000 (33-110-7450-0000-000 Dr.)

Charge 4000 (33-120-7450-0000-000 Dr.)

Debit Memo 1500 (33-110-7450-0000-000 Cr.)

Debit Memo 500 (33-120-7450-0000-000 Cr.)

Liability 8500 (33-000-2210-0000-000 Cr.)

This is what debit memo and credit memo functions. If any of this allocation is not correct, that invoice will be hold.

Hold and Release:

No Yes


Create Invoice

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Validate No Hold

System Hold Manual HoldStatus ‘Validated’

NoRectify Error Manually Release

Errors Rectified Re – Submit for validation

Invoice Hold Release

1 1 Invoice Release Reason

1 Many Invoice quick relax reason

Many Many Hold quick relax reason

Create a Hold Reasons:

Setup>Invoice>Hold & Release Names

1. Name: KR Dispute with Supplier (If Invoice Hold – Reason is required)

Type: Invoice hold reason Enable – Accounting & Manual Release

1A. Name: KR Disputed Resolved

Type: Invoice release reason

2. Name: KR Quality to be checked (If Invoice Hold – Reason is required)

Type: Invoice hold reason Enable – Accounting & Manual Release

2A. Name: KR Quality Checked

Type: Invoice quick release reason

3. Name: KR ALL Releases (Don’t Enable)

Type: Hold quick release reason

1. One Invoice One Hold:


Holds

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Invoice: KR INV 14

Distribution: KR SKELETON (Manually enter amount in distribution window)

Click: Hold & Fix a hold

Validate

Result: Needs Revalidation

Click: Hold & Fix a release

Once release the hold, it will validate automatically – Create Accounting

2. One Invoice Many Hold:

Invoice: KR INV 14

Distribution: KR SKELETON (Manually enter amount in distribution window)

Click: Hold & Fix 2 holds

Validate

Result: Needs Revalidation

Click: Hold & If release reason is same, press shift and block 2 holds and fixes a release

Once release the hold, it will validate automatically – Create Accounting

3. Many Invoices Many Hold:

Invoice: KR INV 15 & KR INV 16

Distribution: As Required

Click: Hold & Fix a multiple holds for both the invoices

Validate

Result: Needs Revalidation for both the invoices

Block both the invoices

Click: Action 2 – Release: All & KR Release All – OK

It will release the both the invoices and validated automatically – Create Accounting

4. Distribution Variance Hold:

Invoice: KR INV 21

Amount: Rs.10000


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Distribution: KR Skeleton

In Distribution: Distribute the values 8000 to 110 and 1500 to 120

Validate

Result: Needs Revalidation (Reason: Distributed amounts are not equal and it is varied)

Result in Hold Window: Distribution Variance Hold

In Distribution: Make distribute the amount correctly

Validate

Now, Result in Hold Window: Variance Corrected

Create Accounting

Mixed Invoice:

Invoice Value: Rs.10000 (Actual Goods)

Damages: (-3000)

Required Additional: +1000

Therefore Actual Damage: (-2000) only – For our knowledge

Create an invoice: KR INV 24 for Rs.10000 (Actual Goods) – Validate

Create Mixed Invoice: KR MIX 01 for (-3000) – Validate

Match with Invoice – Select that invoice KR INV 22 – Enter (-3000) only Match it

Again Match with the same invoice KR INV 22 – Enter (+1000) only Match it

Therefore, Invoice KR INV 24 = 10000-3000+1000=8000

Quick Invoices: When we want to enter large number of transactions and when it does not require extensive validation and defaulting invoice.

Quick: Standard Invoice & Credit Memo only can be entered

Both the header and line information enter in single window

Dates – Header information in header window

Dates – Line information in distribution window

Quick Invoice


Payables open interface tables AP – Invoice – Interface AP – Invoice – Lines Interface

Main TableAP –Invoice – ALL

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Payable open interface import processInvoice>Entry>Quick Invoice

Batch Name: KR BATCH 1 (Create)

Type: Standard

Number: Q1

Supplier: KR Supplier (Attach)

Amount: Rs.8000

Line Type Amount Account

1 Item 6000 KR – 110 – 7150 – 0000 – 000

2 Freight 2000 KR – 110 – 7220 – 0000 – 000

Click: Save & Next

Type: Credit Memo

Number: Q2


Amount: (-2000)

Line Type Amount Account

1 Item -2000 KR – 110 – 7420 – 0000 – 000

Click: Create Invoices

View – Request – Completed – View Report

Go to Quick Invoices – Find

Status: Processed (Invoice process in KR Batch 1)

Go to Invoice Workbench – F11 – KR Sup% Q1%

Control F11 – Validate


Main TableAP –Invoice – ALL

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Now, the quick invoices – View your invoices – Create invoices – Purge it. (Delete)

Foreign Currency Invoice:

In Payable Options – Currency

Enable: Calculate User Exchange Rate & T

Exchange Rate Type: User

Invoices>Entry>Invoice

Invoice: KR INV 23

Currency: AUD

Amount: 10000

Rate Type: User (Automatic)

Exchange Rate: 0.5 (Enter – User defined from daily newspapers)

Validate – Create Accounting

Entry: AUD AUD USD USD

Charge 10000 0 5000 0

Liability 0 10000 0 5000

Invoice Batches:

For setup the invoice batches

Edit – Preferences – Profiles

Query: Ap% - Control F11

AP: User Invoice Batch Controls – Yes (Make it allow)

Existing Responsibility: Payable, however, once again clicks switch responsibility to Payable.

Now, we can create multiple invoices in one batch

Invoice> Entry> Invoices:

Name: KR Batch 01 (Create)

Control Count: 3

Amount: 50,000


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Currency: USD

Terms: KR Immediate (Attach)

Pay Group: KR Pay Group (Attach)

Click – Invoices & Enter 3 Invoices, which is equivalent to Rs.50000.

Save and close

Then Click – Validate 1 in Invoice batch window

View – Request – Status – Completed (Normal, view Output)

Then, click Create Account in same window

View – Request – Status – Completed

We have created account entries

Go to Invoices – Approve and validate

(Same window)

(We can enter various invoices in invoice workbench while using invoice batch control)

Recurring Invoices:

Create a Special Calendar for Recurring Invoice

Setup>Calendar>Special Calendar

Name: KR SPL RECURRING Type of Calendar: Recurring Invoice (Enable)

Periods: 12

Period Name Year Sequence From Date To Date

P1 2006 1 01-Apr-06 30-Apr-06

P2 2006 1 01-May-06 31-May-06

Save

Invoice Entry:

Attach: Pre – defined items

Template Definition: KR REC 01

Amount: 10000 (Automatically generate full year amount)


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Change: 10% (Increase every month)

Special: 4000 (Particular Month only this amount will be an expense)

No of Invoice: 12 (Number of recurring invoices to be created)

Click: Create Recurring Invoice

Go to Invoice workbench – Query F11

Paste that Recurring Journal No – Control F11

Validate every – month as required

(Recurring invoices based on period enKRg)

Expensed Reports:

The format for the purpose of reimbursement to staff

In Payable Options –Expense Report

Enable: Apply Advances & automatically create employee as supplier

Template: (Create template for reimbursements)

Setup>Invoice>Expense Report Templates

Template Name: KR EXPENSE REPORT TEMPLATE

Expense Item Expense Category Item type GL Account

Food Meals Miscellaneous 33-000-7690-0000-000

Travel Air Fare Miscellaneous 33-000-7699-0000-000

Accommodation Accommodation Miscellaneous 33-000-7670-0000-000

(Tax & Internet Expenses – Enable if required)

Click: All Verified


Name: Expense Report Import

Parameters: Batch: KR EXP 01


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Summarize Report: No

Source: Payables Expense Reports

GL Date: 01-JAN-2001

Click: OK

View –Request – Status – Completed – View Output (Copy: KR EXP 01)

In Invoice Workbench

Query F11 – KR EXP 01% - Control F11

Type: Expense Report (Automatically Generated)

Validate – Approve – Create Account

TAX:

Tax is a charge and pay to government

TAX

Header Level Distribution Level

Always inclusive of Tax May be inclusive or exclusive of tax component

Tax = Income x Rate/ (100+Rate) Tax = Invoice x Rate/100

Types of Tax:

1. Sales Tax2. Use Tax3. User defined Tax4. WithholKRg tax5. Offset Tax

1. Sales Tax

Setup Tax Codes

Tax Code: KR Tax Code

Tax Type: Sales

Rate: 10


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From: 01-Apr-06

GL Account: 33-000-7710-0000-000

(Sales)

Attach this tax code in supplier

Supplier>Entry

Query your supplier – KR Supplier

In Sites – Invoice – Attach KR Tax Code and

Disable – Use offset taxes & distribution amount includes tax

Save

Enter an invoice (Manual: In Payable – Invoice Tax – Disable Amount Tax Cal)

Invoice>Entry>Invoice

Invoice: KR INV 25

Amount: 11000 (Based on Tax enter this invoice value)

In Tax Code: KR Tax Code & Header (Automatically Generated)

Tax: 1000 (Enter Manually) (11000 x 10/110)


Entry:

Charge 10000

Non – recoverable tax 1000

Liability 11000

Enter an invoice (Automatic: Payable – Invoice Tax – Enable Automatic Tax & Head)

Invoice>Entry>Invoice

Invoice: KR INV 26

Amount: 11000

In Tax Code: KR Tax Code & Header (Automatically Generated)

Tax: 1000 (Enter Manually) (11000 x 10/110)


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Entry:

Charge 10000

Non – recoverable tax 1000

Liability 11000

Enter an invoice (Automatic: Payable – Invoice Tax – Enable Automatic Tax &Line)

Invoice>Entry>Invoice (Supplier – Sites – Invoice tax – Level: Line & Enable: Disable – Disl)

Invoice: KR INV 27

Amount: 100000

Click Distribution – Attach KR Tax Code and Rate in each line

Click Calculate Tax – Rs.10000 Tax will be calculated – Save it

Go to invoice bench – Change the value as Rs.110000

Save it – Validate – Create Accounting

Entry:

Charge110 40000

Charge120 60000

Non-recoverable tax 10000

Liability 110000

(Automatic: Payable – Invoice Tax – Enable Auto. Tax & Line & Enable – Dist Incl. Tax)

(Supplier: Sites – Invoice Tax – Level: Line & Enable; Enable - Dist Incl. Tax)

Entry:

Charge110 40000

Charge120 60000

Non-recoverable tax110 4000

Non-recoverable tax120 6000

Liability 110000


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2. Use Tax: (Use Tax Liability Report)

We are purchasing goods from unregistered supplier. So, we should calculate tax for our purpose and remit in to go government.

In this tax, system will not calculate tax and we need to run a report.Setup tax codes:

SETUP > TAX > CODES

Tax code: KR use code

Tax type: use

Rate: 10

From: 01- Apr-06

GL account: 33-000-2520-0000-000

(Use)

Attach this tax code in supplier.

SUPPLIER > LINE

Query your supplier – KR Supplier

In sites –Invoice tax – Attach KR Use code and

Save.

Enter an invoice

INVOICE > ENTRY >INVOICE

Invoice: KR INV 28

Amount: 8000

In Distribution: Click tax – Tax will not be calculated.

Setup TAX Groups:

Group Code: KR TAX GROUP (Create) Input & enabled – Ok

Disable: Self service users

Rates: KR Service Tax & KR Tax – Rates automatically updated.


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Save it.

In KR Supplier site – Invoice Tax – Attach KR TAX Group & Disable offset taxes

Create an invoice

Inv no: KR INV 51

Value: 10000

Tax: KR Tax Group (Automatic)

Click Distribution – Attach KR TAX GROUP – Calculate Tax – Tax will be calculated

Go to invoice bench – Change the invoice value – validate – create accounting

Charge 10000

Sales Tax 1000

Service Tax 10

Liability 11010

Recoverable Tax:

In financial Options – Enable recoverable tax – Default Rate: 3(Just for default)

In Tax code – Enter Recovery Rates

KR Service Tax – 2(Recovery Rates)

Save

Enter an invoice for 10000

In distribution – Attach KR Service Tax – Click Distribution

Non-Recoverable – 999

Recoverable – 1

Change the value in invoice bench, which is equivalent to distribution total


Entry;

Charge 10000

Nonrecoverable 1000

Recoverable 1


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Liability 11000

Recovery Rule: (Instead of Creating Recovery Rates)

Tax Recovery rules

1.Supplier classification

2.Account Specific

Setup TAX Recovery Rule;

Name: KR Tax Recovery rule

Account: 33-110-7420-0000-000 & 33-130-7420-0000-000

Rate: 3 %( Or we can take default value)

Condition: Supplier Classification

Value: KR Supplier type

Save

Setup Query TAX:

Query our Tax – KR Service Tax – delete old Recovery Rate – Attach KR Tax Recovery Rule

Save

In Supplier site – Invoice Tax – Attach KR Service Tax which is reflected with Tax recovery Rule

Save

Now, Enter an invoice for 10000 – In Distribution – calculate Tax

(Tax codes automatically selected)


TAX Defaults and Rules:

In payable – Tax Default Codes

Set hierarchy for everything

Template – 1


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PO for matched invoices – 2

Invoice Header – 3

Supplier site – 4

Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax.

WithholKRg Tax: (TDS)

1. Flat Rate (With Hold)

In Payable options – WithholKRg tax – Enable: USE WH tax & Disable: Manual withholKRg)

Setup Tax Codes:

Code: KR WH Flat

Type: WithholKRg Tax

Account: 33-000-1332-0000-000 (WH)

Save

In WithholKRg Tax Details:

Rate Structure: Flat

Tax Authority: KR Tax Authority

Type: Standard

Rate: 10

Save

In KR Supplier Site – WithholKRg Tax

Enable: WithholKRg Tax

WH Tax Group: KR WH Flat

In KR Supplier Site – WithholKRg Tax

Enable: WithholKRg Tax


Save

(Remove all tax codes in invoice option of supplier and supplier site)


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Enter an withholKRg Invoice: KR INV 59

Type: WithholKRg

Supplier: KR Supplier

Amount: 8000

Distribution: As required

Folder – Show fields – With % - Attach: WithholKRg tax group

After attached WH tax group from folder – our KR WH Flat automatically attached

Validate (Don’t calculate tax in distribution Set)

After validation. The tax will be automatically calculated – Tax: Rs.8/- and displayed in distribution

Create Accounting

Entry:

Charge: 10000

Tax 8

Liability 9992

Copy the invoice number

In invoice workbench – Query – In Description - %KR INV 59% - Control F11

Now, the system will show you the WH invoice – Because this is automatic withholKRg tax calculation invoice

Manual WithholKRg Tax Calculation:

In payable option – WithholKRg Tax – Enable: Manual WH tax calculation & attach KR WH FL

Enter an withholKRg invoice

Remove: Distribution &Tax codes

In Distribution,

1. Enter an invoice KR 60 and allocation one account = 10000 (33-000-7420-0000-000)

2. WithholKRg tax = (-1000) (33-000-1332-0000-000) Tax code: KR WH FLAT


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Save – Validate – Create Account

Entry:

Charge: 10000

Tax: 1000

Liability 11000

This is what calculating withholKRg tax manually


In invoice workbench – Query – In Description - %KR 60% - Control F11

Now, the system will not show the invoice – Because this is manual withholKRg tax calculation

2. Period Basis (With Hold)

In payable options – WithholKRg tax – Enable: Use WH tax & Allow manual if required,

For this create special calendar

Setup Calendar Special:

Name: KR WH Calendar Type of calendar: WithholKRg Tax

Period: 4

Name Year Sequence From Date To Date

P1 2006 1 01-APR-06 30-JUN-06

P2 2006 2 01-JUL-06 30-SEP-06

P3 2006 3 01-OCT-06 30-DEC-06

P4 2006 4 01-JAN-07 31-MAR-07

Setup TAX Codes:

Code: KR WH Period

Type: WithholKRg Tax

Account: 33-000-1332-0000-000 (WH)

Save

In WithholKRg tax details:

Rate structure: Period Limit


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Tax Authority : KR Tax Authority

Calendar: KR WH Cal

Period Limit: 10000

Type: Standard

Rate: 10

Save

In supplier & Supplier Site - Remove old one and attach new KR WH Period. In payable enable automatic WH tax calculation and remove manual one as required.

Create WithholKRg Invoice No: KR INV 70 – 90000


Folder – Show Fields – With% -Attach: WithholKRg tax group


If WithholKRg tax calculation is automatic, need not calculate tax in distribution set


WithholKRg Tax: 9000/-(90000*10%)

Then create a new WithholKRg tax invoice no: KR INV 71 – 80000


Folder – Show Fields – With% - Attach: WithholKRg tax group




WithholKRg Tax: 1000/- only – Because Limit – 10000 only (9000 already utilized)

3. Amount Range (With Hold)

In payable option – WithholKRg Tax – Enable (Use WH tax & Disable Manual Tax Calculation)

Amount Range


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Gross Amount (Invoice) Withheld Amount (Tax)

Per Invoice Per period Per invoice Per Period

Per Invoice: Each tax slab is applicable one for each invoice.

Per Period: Each tax slab is applicable once for each period irrespective of the number of invoices

Tax slab:

0 to 1000 1%

1000 to 2000 1.5%

>2000 2%

3A, Gross Amount: (Invoice value)

Setup Tax codes:

Tax code: KR GAPI (Gross Amount Per Invoice) & KR GAPD (Gross Amount Period)

Type: WithholKRg

Account: 33-000-1332-0000-000

In WithholKRg tax details:

Rate Structure: Amount Ranges

Tax Authority: KR Tax Authority

Amount Basis: Gross Amount

Period Basis: Invoice & Period Calender: KR WH CAL

Amount Ranges

Type From To Rate%

Std 0 1000 1

Std 1000 2000 1.5

Std 2000 2

Save.


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In KR Supplier & sites – Attach KR GAPI

Save

Create WithholKRg Invoice No: KR INV 71 – 50000(GAPI – Per Invoice)



After attached WH tax group from folder – our KR GAPI automatically attached


Validate

With held amount: Rs.985

I Distribution Set:

WH Tax – 10 (For First 1000 – 1%)

WH Tax – 15 (For Next 1000 – 1.5%)

WH Tax – 960(Balance 48000 – 2%)

Total – Rs.985

Create Account

Note:

This is Gross Amount per invoice based. Therefore, if we want to create a new WH GAPI invoice, the same and all tax slabs will be applied.

Create WithholKRg Invoice no: KR INV 72 – 50000 (GAPD – Period)



After attached WH tax group from folder – Our KR GAPD automatically attached if this selected in supplier window.


Validate

With held amount: Rs.985

In Distribution Set:

WH Tax – 10 (For First 1000 – 1%)


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WH TAX – 15 (For Next 1000 – 1.5%)

WH Tax – 960(Balance 48000 – 2%)

Total – Rs.985

Force Approval – Create account

Note:

This is Gross Amount Period Based. Therefore, If we want to create a new WH GAPD invoice, the last slab(Above 2000 – 2%) will be applied. Because, we have already utilized first two slabs for fist invoice.

New Invoice for Rs.60000/-

However, the WH tax = Rs.1200/-(Directly go to 3rd slab – 60000*2%)

(3B). With Held Amount: (Tax value)

Reverse mode of WithholKRg Gross Amount

Setup Tax Codes:

Tax Code: KR WHPI (With Held Amount per Invoice) & KR WHPD (With Held Amount Period)

Type: WithholKRg

Account: 33-000-1332-0000-000

In withholKRg tax details,

As like 3A

In KR Supplier & supplier Sites – Attach KR WHPI/ KR WHPD

Here, we know the tax amount; Based on the tax amount we fine invoice value

Invoice Value: 300,000(Assume)

WHPI

Tax

1000 100,000 (100,000/1) (1X*100000/100)

1000 66,667 (66,667/1.5) (1.5*66.667/100)

2667 133,333 (133,333/2) (2*133333/100)

4,667 300,000


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If we want create a new invoice, the same and above tax slabs will be applicable and find out invoice value

WHPD

For First Invoice

4667 300,000

For Second Invoice

6000 300,000

Here all the tax slabs will not be applied, because, this is period base withholKRg tax and final slab only will be applied.

WithholKRg Tax Certificates:

If we have tax exemption certificate from our local tax authorities, the next tax rate can be used

Here, we already define WithholKRg flat rate = 10%

Now, we have withholKRg tax certificate

Setup tax WithholKRg Certificates:


Tax code: KR WH Flat

Number: 12345 (Just for reference)

Priority: 1

Rate: 4(Old rate: 10 & New: This 4)

In Supplier and Supplier sites – Attach this KR WH Flat

Create WithholKRg Invoice No: KR INV 75 – 50000



After attached WH tax group from folder – our KR WH Flat automatically attached if this selected in supplier window


Validate

With held amount: Rs.2000 (50000*4%) – If we have certificates


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If we don’t have tax certificates group, Tax = 5000/- (50000 *10%)

In this Situation, for particular invoice, we need to calculate 2% with held tax

In WithholKRg certificates – Click exceptions

Tax code: KR WH Flat

Invoice No: KR INV 76

Rate: 2

Save

Create an invoice: KR INV 76 = Rs.10000/-

Attach with held tax column and validate – Tax: Rs. 200/-

WithholKRg Tax Group: (Assigning Bank)

For multiple tax code like India (Tax 5% Surcharge 10%; cess 2%)

Invoice value = Rs.300000/-

Rank Tax code

1 1 1 KR WH Flat 10%

2 1 2 KR WH Flat 9%

3 2 2 KR WH Flat 8%

If 1 2 3 is 10%on Rs.300000 = 30000(300000*10%)

Then 9% on Rs.270000 = 24300 (300000-30000 = 270000 * 9%)

Then 8% on Rs.245700 = 19656 (300000-30000-24300 = 245700*8%)

If 1 1 2 is 10% on Rs.300000 = 30000 (300000*10%)

Then 9% on Rs.300000 = 27000 (300000*9%)

Then 8% on Rs.270000 = 21600 (300000-30000) =270000*8%)

Create Tax codes:

Setup Tax codes:

KR WH FL7 Tax – 7%

KR WH FL8 Tax – 85

KR WH FL9 Tax – 9%


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Now, attach these WithholKRg flat rates in WithholKRg tax groups

Setup Tax WithholKRg Groups:

Name: KR WH Tax Group (Create)

Rank Tax code

1 KR WH Flat 102 KR WH Flat 93 KR WH Flat 8

Create an invoice for Rs.100000/-

Show field – Folder – WithholKRg tax group (Attach: KR WH Tax Group)

Distribution: KR Full Distribution as required

Validate

It will calculate tax Rs.22140/- and in distribution window (IF RANK = 1-2-3)

FL7 - 7000 (100000*7%)

FL8 - 7440 (100000-7000=93000*8%)

FL9 - 7700(100000 – 7000 = 85560*9%)

Total 22140

It will calculate tax Rs.22650/- and in distribution window (IF RANK = 1-1-3)

FL7 - 7000 (100000*7%)

FL8 - 8000 (100000*8%)

FL9 - 7650(100000 – 7000 - 8000 = 85000*9%)

Total 22650

Payments:

Pre-requisites:

- Bank- Payment Format (Linking programs to payment format)- Payable Document (Cheque)

Programs:

- Build payment program (Select invoices based on criteria specified)- External Laser payment program (Printing a cheque – Design the layout)


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- Separate Remittance advice program(List of invoices & forms)

Flow:

Payment FormatPayable Document Bank

Type:

Manual (Manual cheque) Quick (for one invoice) Batches (Payment batches) Refund (Only for Debit Memo & Credit Memo)

Through:

Invoice work bench Entire payment of particular invoice

Payment work bench Partial payments (Schedule the payment of particular invoice)

1.Payment format:

Setup Payment Format:

Name: KR Payment Format (Create)

Payment Method: Check

Zero amount payments only - Disable (No Payment/Unpaid Invoice)

Group by Due Date – Disable (For some Groups)

Remittance:

No. of invoices – 3 (Three invoices will be displayed in our remittance advice)

Programs:

Build Payments – Build Payment Program

Format Payments – External Laser Format Payments Program

Separate Remittance – Separate remittance Advice

2. Banks:

Setup Payment Banks:

Name: KR ABN AMRO BANK (Create)

Click: Bank Accounts


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KR Current Account – 516425

GL Account:

Cash – 33-000-1250-0000-000

Cash Clearing – 33-000-1250-0000-000

Bank Charges – 33-000-7870-0000-000

Bank Error – 33-000-7871-0000-000

Receipts – 33-000-2215-0000-000

FDP – 33-000-2580-0000-000

Click – Payable Documents

Document Name Disbursement Type Payment Format Last used Last Available

KR CHECK1 Recorded KR Payment 0 100



Disbursement Type:

Quick – Computer Generated/Combined

Manual – Recorded

In KR Supplier and Supplier site – Disable WithholKRg tax and WithholKRg tax code – Save

Create a standard invoice – KR INV 91 = Rs.10000/-


Action – Click: Pay in full

Type: Quick (Status: Negotiable; Means: Not Void)

Bank Account: KR Bank Account (Attach)

Document: KR Check 1 (Attach)

Save.

Action: Format & Create Accounting

Status: PaidEntry:


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Liability: 10000

Cash clearing: 10000

For Partial Payment:

Payment Entry payment

Click: Enter/Adjust Invoices

Validate.

View – Request – Single Request.

Name: Use Tax Liability Report.

Parameters: Invoice – Validated – Supplier – 01/Apr/06 – No – Submit – View Report

Result: Calculated Tax: Rs.800/-

However, the calculated tax will not be accounted.

Tax authority:

SUPPLIER > ENTRY

Name: KR Tax Authority (Create)

In Classification – Type: Tax Authority (Attach)

In Payment – KR Pay Group (Attach)

In Sites: KR Tax Author (Create)

Go to Invoice workbench.

Supplier: KR Tax Authority (Attach)

Enter that calculated tax here.

New Invoice /Old Invoice no: Rs.800/-

In distribution, enter Rs.800/- 33-000-7710-0000-000

(S.T)



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Entry:

Charge: 800

Liability: 800

Now, that tax liability is accounted.

3. Offset Tax:

This is for reporting purpose.

Paid tax for purchased goods from our supplier = 1000

Add some values for purchased goods and sell to some and payable sales tax = 2000(VAT)

Therefore, net payable tax for goods = 1000 only.(Payable 2000 – Paid 2000= Net Payable 1000)

However, we have paid and report to government.

Therefore, we have to create one tax type and offset tax type.

SETUP > TAX CODES

Tax code: KR VAT TAX KR OFF TAX

Tax type: VAT OFFSET

Rate: 10 (-10)

From: 01-Apr-06 01-Apr-06

GL Account: 33-000-1330-0000-00033-000-1333-0000-000

(Vat payable) (Offset Vat)

Copy KR OFF TAX and paste in offset tax code column of KR VAT TAX

Save it.

In KR Supplier Site – Invoice Tax – Attach KR VAT TAX & Enable use offset taxes

(In Payable Option – Invoice Tax – Enable – Automatic Tax Calculation)

Create an invoice


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KR Supplier – Inv 33 – 10000 – KR Full Distribution – KR Vat Tax

Click Distribution – Enter KR VAT TAX & 10%

Click Tax – Tax automatically calculated and generated offset taxes.


Entry:

Charge: 10000

Liability: 10000

Vat payable: 1000

Vat liability: 1000

Offset Vat: -1000

Offset vat liability: -1000

4. Service tax: (User Define one)

In Payable lookups.

SETUP > LOOKUP >

F11 – TA% TY% -Control F11

Code: Create: KR Service Tax

Save.

SETUP > TAX > CODE

Tax Code: KR Service Tax

Type: Sales

Rate: 0.1

Account: 33-000-7710-0000-000

(Sales Tax)


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In Supplier – Sites – Invoice Tax –Attach: KR Service Tax & Disable offset taxes.

Enter an invoice:

Inv. No: KR Inv 44

Tax: KR Service tax (Automatic)

In distribution – Enter service tax and rates – click tax – tax will be automatically calculated.

(In payables & Financials –All the distribution sets should be in our company. Then only, tax entry at header for automatic tax selection in distribution)

Go back to invoice bench and change the invoice value, which is equivalent to distribution total.


Entry:

Charge: 10000

Service tax: 10

Liability: 10010

Tax Groups: (For calculating multiple taxes)

SETUP > TAX > GROUP

Group Code: KR TAX GROUP (Create)

Input & Enable – Ok

Disable: Self service users

Rates: KR Service tax & KR tax – Rates automatically updated.

Save it.

In KR Supplier Site – Invoice Tax – Attach KR TAX GROUP & Disable offset taxes.

Create an invoice.

Inv no. KR INV 51

Value: 10000


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Tax: KR Tax Group (Automatic)

Click distribution – Attach KR TAX GROUP – Calculate tax – tax will be calculated.

Go to invoice bench – change the invoice value – validate – create accounting.

Charge: 10000

Sales Tax: 1000

Service Tax: 10

Liability: 11010

Recoverable tax:

In financial options – Enable recoverable tax – Default rate:3 (Just for default)

In tax codes – Enter recovery rates

KR Service tax – 2 (Recovery rate)

Save.

Enter an invoice for 10000

In distribution – Attach KR Service Tax – Click Distribution

Non – Recoverable – 999

Recoverable – 1

Change the value in invoice bench, which is equivalent to distribution total.


Entry:

Charge: 10000

Non – Recoverable: 1000

Recoverable: 1

Liability: 11000


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Recovery rule: (Instead of creating recovery rates)

Tax recovery rules

1. Supplier classification2. Account specific

SETUP >

Name: KR Tax Recovery RuleAccount: 33-110-7420-0000-000 & 33-130-7420-0000-000

Rate: 3% (Or we can take default value)

Condition: Supplier Classification

Value: KR Supplier Type

Save.

SETUP > TAX > CODES

Query our tax – KR service tax – Delete old recovery rate – Attach KR tax recovery rule.

Save.

In Supplier Sites – Invoice Tax –Attach: KR Service Tax which is reflected with tax recovery rule.

Save.

(If we want this tax recovery rule in distribution set automatically, the defined distribution set are all in our company only)

Now, enter an invoice for 10000 – In distribution – Calculate tax.

(Tax codes automatically selected)

Validate – Create accounting.

Tax defaults and rules:

In payable – Tax default codes

Set hierarchy for everything

Template -1

PO for matched invoices – 2


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Invoice header – 3

Supplier site – 4

Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax.

WithholKRg tax (TDS)

1. Flat rate (With hold)In payable options – WithholKRg tax – Enable: Use WH tax & Disable: Manual withholKRg)

SETUP > TAX > CODES

Code: KR WH flat

Type: WithholKRg tax

Account: 33-000-1332-0000-000

(WH)Save.In withholKRg tax details,Rate structure: FlatTax Authority: KR Tax AuthorityType: StandardRate: 10Save.

In KR Supplier-withholKRg tax:

Enable: withholKRg Tax


In KR Supplier Site-withholKRg Tax

Enable: withholKRg tax

WH tax group: KR WH flat

Save

(Remove all tax codes in invoice option of supplier and supplier site)

Enter an withholKRg invoice: KR INV 59

Type: withholKRg

Supplier: KR supplier


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Amount: 8000


Folder –show fields –with%-attach: WithholKRg tax group

After attached WH tax group from folder-our KR WH flat automatically attached

Validate (don’t calculate tax in distribution set)

After validation, the tax will be automatically calculated-Tax: Rs.8/- and displayed in distribution

Create accounting

Entry:

Charge10000

Tax 8

Liability 9992


In invoice workbench-Query –in description-%KR INV 59%-Control F11

Now, the system will show you the WH invoice –because this is automatic WithholKRg tax calculation invoice.

Manual withholKRg Tax calculation

In payable option –withholKRg tax-enable: manual WH tax calculation & attach KR WH FL

Enter a WithholKRg invoice

Remove: distribution & tax codes

In distribution

1. Enter an invoice KR 60 and allocation one account=10000 (33-000-7420-0000-000)

2. WithholKRg tax=(-1000) (33-000-1332-0000-000)Tax code: KR WH FLAT

Save-validate-create account

Entry:

Charge: 10000

Tax: 1000

Liability 11000


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This is what calculating withholKRg tax manually


In invoice work bench-query –in description-%KR60%-control F11

Now ,the system will not show the invoice-because this manual WithholKRg tax calculation

AP

2. Period Basis(with hold)

In payable option –withholKRg tax –enable: use WH tax & allow manual if required

For this create special calendar

SETUP: CALENDAR: SPECIAL

Name: KR WH Calendar

Period:4

type of calendar: withholKRg tax

name year sequence from date to date

P1 2006 1 01-apr-06 30-jun-06

P2 2006 2 01-jul-06 30-sep-06

P3 2006 3 01-oct-06 30-dec-06

P4 2006 4 01-jan-07 31-mar-07

SETUP-TAX-CODES

Code: KR WH Period

Type: WithholKRg tax

Accounting: 33-000-1332-0000-000(WH)

Save

In withholKRg tax details

Rate structure: Period limit

Tax authority: KR Tax authority

Calendar: KR WH Cal


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Period limit: 10000

Type: standard

Rate: 10

Save

In supplier & supplier site-Remove old one and attach new KR WH period

In payable enable automatic WH tax calculation and remove manual one as required

Create WithholKRg invoice no: KR INV 70-90000

Distribution: as required

Folder-show fields-with%-attach: WithholKRg tax group


If withholKRg tax calculation is automatic, need not calculate tax in distribution set

Validate-create accounting

WithholKRg tax: 9000/-(90000 * 10%)

Then create a new WithholKRg tax invoice no: KR INV 71-80000

Distribution: as required

Folder-show fields-with%-attach: WithholKRg tax group



Validate-create accounting

Payment Amount: Rs.20101.80

Action: Create Accounting and payment format

Entry:

Liability 20000

Interest 101.80

Cash clearing 20101.80


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Suppliers merge:

At the time of

- Amalgamation of our supplier companies- Created some duplicate (or) wrong supplier

Supplier + supplier merge

All – Merge all transaction and payment sites to new supplier

Unpaid – Merge all unpaid transaction to new supplier

None – Merge only sites to new supplier

From Supplier and sites To Supplier and sites

Click: Merge


Program: Supplier Merge Program – submit

Payment Batches:

Criteria:

Supplier Name Invoice Batch Pay Group Pay date Payment priority

Status:

Selecting – selected BuilKRg – Built Modifying – Modified RebuilKRg – Rebuild Formatting – Formatted Confirming – Confirmed Cancelled (Before confirming)

Payment entry – Payment batches


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Name: KR payment Batch (create)

Selecting your supplier name

Select your invoice batch

Based on format of supplier (3 invoices for one payment document), it will pay the three invoices for one payable document.

We can select invoices and modify the payable amounts in that window

Therefore, payment batch will be considered for selected invoice with one payable document.

Invoice Aging Report

Invoice status Report: Overdue / Payable invoices

(Unpaid report)

Set up: Calendar + Aging period

Name: KR Aging calendar Active: Enable

Column order days from Days To Column HeaKRg First

1 -180 1 Future payment

2 0 60 60 days payment due

3 61 180 180 days payment due

4 181 450 > More than 181 days payment due

Save

Submit a single request: Invoice Aging Report

Parameters: Supplier name & invoice type

Include invoice detail : yes

Include site detail : Yes

Supplier Name : KR Supplier

Aging name : KR Aging cal


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Submit – view status – completed – view report

Result :

It will show unpaid invoices, current payable invoices, after 60 days payable invoices, after 181 days payable invoices.

Debit memo:

Payment – Refund is automatically generated.

We have received cheque from customer . Therefore, document is manual

Entry is reversed

Liability 10000 (Cr)

Cash clearing 10000(Dr.)

Payables transfer to GL:

Submits a single request: Payables transfer to GL

Parameter: set of books and periods & journal import & as required

Submit – view – completed

Close the period: If transferred to GL

Conditions:

1. All invoices and payment should be validated and accounted

2. All future dated payments have the status is negotiable

3. All payment batch status should be confirm

However, we have a option to sweep (Skip) to next month for transfer of all unaccounted transactions to next month.


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After transferring payable to GL (copy the batch from output) switch over to GL

Go to journal = Batch: paste the batch% (or)

Source: payable & month (Attach) then,

Find: Transfer summary – List out all transfer transactions

Post it

Set up – Invoice – Payment terms

Credit days 30 without discount

% due Days

100 30

Select: Our Invoice

Adjustments: Discount & As Required (Can attach Payment Terms for discount as defined)

(While making partial payment amounts manually, it will not consider discount amount)

Save and Make payment

Action: Format and Create Accounting

Status: Paid

Pre-Payments:

Temporary (Can be applied against invoices) Permanent (Cannot be applied against invoices)

Status:

Un-validated Unpaid Paid Available Fully Applied


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Create standard invoice KR INV 96 for Rs 100000/-

Validate – create Account

Charge 100000

Liability 100000

Create a pre-payment invoice PRE 01 for Rs 30000/-

Prepayment Type: Temporary (Automatic)

Validate – Create Account

Prepayment Expense 30000

Liability 30000

Status: Unpaid

Action: Pay in Full: format & Create Accounting

Status: Available

Action: Apply/Un-apply

Match this prepayment with KR INV 96 (find this Invoice)

Enable: Apply – Prepayment invoice amount automatically displayed

Click: Apply

Status: Fully Applied

Query: KR INV 96 – Validate – Create Accounting

Entry:

Charge 100000

Prepayment 30000

Liability 70000

Invoice status:

Amount: 100000

Paid: 30000(Partial)


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Unpaid: 70000

Stopping Payment:

Stopping payment reasons may be insufficient of funds, disputes with customer, etc.

Payments Entry Payments:

Query your payment – Action: Initiate Stop (For bulk payment step: Shift & Select Payments)

Result: Stop Initiated

For Release the payment: Action: Release stop

Result: Negotiable (Normal)

VoiKRg payment: (Canceling Payment)

1. None (Cancel the payment and not the invoice)

2. Hold (Cancel the payment and invoice his hold) – Hold invoice has to release once again

3. Cancel (cancel both invoice and payment)

None: Cancel the payment only and not the invoice


Query your payment – Action: Void (None)

Result: Voided (In payment window) &Reversed (Payment reversed in invoice work bench)

Hold: Cancel the payment and invoice also hold (Hold Reason – Quality Dispute/Etc.)


Query your payment – Action: void (Hold)result: Voided(In payment window) &Hold(Invoice hold in invoice workbench)

Hold: Cancel the both payment and invoice


Query your payment – Action: Void (Cancel)


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Result: Voided (In payment window) &Reversed (Invoice also reversed in invoice workbench)

If we want to release these invoice, Action in invoice workbench-Release holds and pay in full

Reissue:

If any paid document is damaged, we have to reissue that invoice payment through another payable document (cheque)


Query your payment- Action: Reissue

Result: The same paid invoice is repaid with another next available check and that damaged invoice payment will be voided

Foreign Currency Payment:

User Rates

01-APR-06 = 1 AUD = 0.50 USD

02-APR-06 = 1 AUD = 0.49 USD

Create an invoice for AUD 100000 @ 0.5 USD (User Rate)

Now, Invoice value: AUD 100000 & USD 50000

At the time of payment, 1 AUD = 0.49 USD

In payment window, enter 0.49 in user rate column

Action: Create Accounting

Entry: (USD)

Liability 50000

Gain 1000

Cash Clearing 49000

(In KR payment format – Enable or Change – Multiple Currency for making multiple currency payments)

Future Dated Payments:


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Setup Banks

In Bank – Query –KR Bank

Click: Bank Account – Payable Document

Document Name: KR Check 4 (Add)

Disbursement Type: Computer Generated & 300- 400

Future Dated Payment: Allowed (33-000-2580-0000-000)

Create standard invoice – RS 5000/-

Validate – Create Accounting – Pay in full

In payment:

Quick – KR Current Account –KR Check 4 -301-Issued-Give Mature Date

(Computer Generated) (Status)

View – Request –Single Request

Name: Update Mature Future Payment Status

Parameters: Attach KR Supplier and sites and matured payment date

Submit – Status: Completed

Go to Payment window and Re-query that payment:

Document: KR% Document No: 301 (control F11)

Status: Negotiable

Therefore, this payment will be made on future maturity date

Book Invoice

Payment Document Issued


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FDP Maturity Date

Run – Request Maturity Issued

Run – Request Update Maturity Negotiable

Entry:

Liability 5000

FDP 5000

FDP 5000

Cash Clearing 5000

Interest Invoices:

In payable option – Interest

Enable: Allow Interest Invoices

Enable: Prorate Across Overdue Invoices

Minimum Interest Amount: Rs.50/- (Interest should be minimum Rs 50/- else Rs 0/-)

Accounts: 33-000-7820-0000-000 (Interest Expense)

Accounts: 33-000-2530-0000-000 (Interest Payable)

In KR Supplier – Payment – Enable: Allow Interest Invoices

Define Interest Rates:

Setup Payment -----:

Jan to Dec 05-05 = 5%

Jan to Dec 06-06 = 10%

Now, Interest rates are allowed for 05-05 period and rates are defined

Enter an Invoice No: KR INV 111 = Rs 20000/- 01-Jul-06


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Validate – Create Accounting – Pay in full

In Payment – Payment Date: 31-Aug-06

20000*3%=600*62/365=Rs.101.80 (Interest)

(1st July to 31st August – 62 Days)

ORACLE – ACCOUNTS RECEIVABLES

ORDER TO CASH FLOW:

1. Order management (Create Order)

2. Scheduling

3. Pick release

4. Ship confirm

5. Auto invoice

6. Invoice in AR

7. Receipt

ACCOUNTS RECEIVABLE:

Effective management of Debtors

Correct recorKRg for receipts

Scheduling the invoices for receipt

BUSINESS FLOW:

Customer places the purchase order (Check Credit limit & then inventory limit).

Sales order

Send goods along with invoice

Yes No 1. Calls, 2. Dunning letters 3. Legal activities.

Receive cash or cheque

Deposit.

SYSTEM FLOW:

System options Customer profile class Customer standard level


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Customer address level Customer business level Transactions (Invoice)

Control values – It cannot be altered at lower level

Defaulting values – It can be altered at lower level.

KEY FLEX FIELD IN AR:

1. Sales tax locations based flex field (Mandatory) – Based on state wise rates of tax.2. Territory Flex Field (Optional) – Based on area wise and sales man wise

information.

(Flex field modules – Fixed Assets, General Ledger, and Accounts Receivable)

– No flex field in Account Payable.

SALES TAX LOCATION BASED FLEX FIELD: (Mandatory)

1. State – country – city2. Country – city3. City4. Province city5. Province6. No validation country

KEY FLEX FIELD SEGMENTS:

SETUP > FINANCIALS > FLEXFIELDS > KEY > SEGMENTS

Query : Rec% Sales tax % - control F11

State – country – city (Flex field for location base sales tax calculations for setting up of our own state – city – country).

1.TAX LOCATIONS AND RATES: STATE – COUNTRY – CITY

SETUP > TAX > LOCATIONS

KR state 33-000-2520-0000-000 (Sales Tax & Use Tax Payable)

Rate: 5%

From: 01- Jan-01

Save.


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Select: Country Attach: KR State (Created)

KR Country

Rate: 3%

From: 01- Jan-01

Save.

Select: City Attach: KR Country (Created)

KR City

Rate: 2%

From: 01- Jan-01

Save.

2. TAX AUTHORITY:

SETUP > TAX > AUTHORITIES

Attach: KR State – KR Country – KR City

Save + Copy.

3. SALES TAX RATES:

SETUP > TAX > SALES > TAX RATES

Query: Paste that copied tax Authority - Query F11

Tax rates: 5+ 3+2 (Automatic).

SETUP > SYSTEM > SYSTEM OPTIONS

ACCOUNTING METHOD:

Accrual – Due (Provision i.e. Sales Entry)

Cash basis – Direct revenue.

Operating unit: Vision operations (USA).

Set of Books – Vision operations (Company – Department – Account – Subaccount – Product)

Finance charge activity: Finance charges (Revenue from debtor if delayed payment of dues)


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Realized gains account: 01-740-7830-0000-000 (Exchange Fluctuation Gains)

Realized losses account: 01-740-7840-0000-000 (Exchange Fluctuation Gains)

Tax account: 01-000-4150-0000-000 (Excess receipt goes to this account)

Unallocated revenue: 01-000-4150-0000-000 (Excess receipt goes to this account)

Cross currency rate type: User / Corporate / Spot – Daily / Notional /RBI rates

Cross currency Rounding: 01-740-7826-0000-000 (Cross currency Rounding rule)

Header Rounding account: 01-740-7827-0000-000 (Conversion Rounding Rule – AR)

Days per posting cycle – 10/20/30/5 (For transfer of journal to GL)

Transfer first 10 days data as 1st batch

Transfer next 10 days data as 2nd batch

Transfer next 10 days data as 3rd batch

Transfer next 10 days data as 4th batch

(For reducing and save time to process the request of transfer the journals to General Ledger)

Transactions and customer: (Invoice Based)

Customer – Reciprocal: A can pay for B (or) B can pay for A

Allow transactions deletion: Allow deleting after transactions entered. But not after transfer to GL

Auto invoice – This is for an order management.

Customer – Numbering.

Invoice – Net Invoice Value

Line: Charges / Services / Materials

Freight: Freight And Courier

Tax: Taxes

Miscellaneous:

Split amount: 2500 (Number of invoices for reporting)


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Discount basis: Invoice – On Net invoice value Rs. 100/-

: Line – On charges or services or materials whereas not net invoice value.

Item – Rs. 50/- (Line)

Freight – Rs.30/-

Tax – Rs.20 (Taxes)

Auto cash rule set: Adjusting receipts against continuity of invoices whereas not particular invoice.

Sales credit percent limit: For project accounting / For particular invoices

Write off limits per receipt: -500 500

If receive short, just write off Excess Receipt, transfer to revenue

Print remit to address: Print our address and remittance details

Collectors:

SETUP > COLLECTIONS > COLLECTORS

KR Collector (Create)

(Employee / External Sales Person / External Agent)

Profile classes:

CUSTOMERS > PROFILE CLASSES

Name: KR Profile (Create)

Collector: KR Collector(Attach)

Discount grace days: For giving discount for immediate receipts

Receipt grace days: For making charges on invoices due to late receipt.

Statement: Weekly statement (Cycle)

Dunning: Standard (Warning – Send letter with certain words for outstanKRg receivables)

Profile class amount: As required.

Save – Update all profiles


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Credit Profile: Tolerance – 10% (If sales is 10,000/- is 11000/- is credit limit)

(For everything, we need to define a rule or letter in back end of apps)

Payment terms:

SETUP > TRANSACTIONS > PAYMENT TERMS

Name: KR Immediate

Discount: Lines only

Installment option: Allocate tax and freight

Relative Due

100 0 Days

Name: KR 30 Days



Relative Due

100 30 Days

Discount: 10% 15Days (Before 15 Days receipt)

Name: KR Installment


Print lead: 2


Relative Due

50 15

50 30

Name: KR Proxima

Discount: Lines only Cut off: 15


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Day of Month Ahead

20 1

(Actual due is 20th January; If Ahead is 1; Therefore due is 20th February.

If Ahead is 2, due is 20th March.

TRANSACTION TYPES:

SETUP > TRANSACTIONS > TRANSACTION TYPES

Name: KR Invoice

Class: Invoice Open Receivable= Enable (Customer O/s will increase when new invoice enter)

Enable: Print, Open, Post to GL=Enable (Customer O/s will increase and transfer to GL)

Enable: Allow Freight

Sign: Positive

Period: 01- Jan-2001

Transaction status:

Closed = Amount collected

Open = Amount is penKRg

PenKRg = Data entry operator status (It is always penKRg for DEO)

Void = cancelled

Open receivable Post to GL

DEO Not allowed Not allowed

AR Manager Allowed Not allowed

Account Manager Allowed Not allowed


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Allow over – application: Excess receipt of particular invoice, accounted in the same invoice whereas not go to some other account or invoice.

Sources:

SETUP > TRANSACTIONS > SOURCES

Name: KR Sources Manual

Active: Enable 01-Jan-04

Auto batch no: Enable LN – 5000

Auto transaction no: Enable LN – 8000

If batch is 5001, Auto invoice number starts from 8001

Item:

SETUP > TRANSACTIONS > ITEMS > DEFINE ITEMS

Select: V1 – vision operations

Items: 000.00000 (KR Item) Display: All

In Invoicing: Enable – invoice item and invoice enabled.

Customers:

CUSTOMER > STANDARD

Name: KR Customer

Click: Find – New

This KR Customer is new one and taken in to account.

In Classification: KR Profile (Attach)

(It will automatically select all items of KR Profile – profile transactions)

Go to Address: Click – New

Address: KR Customer site – 1(create)

City: KR City

State: KR State


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Country: KR Country

Postal code: 00000 (Click LOV)

Usage Location Bill to location

Bill to 10965

Ship to 10967 10965 (Enter)

Transactions: (Enter an invoice) Transactions / Transactions

Source: KR Sources

Class: Invoice

Type: KR Invoice

Ship to: KR Customer

Click: Line Items

Item Quantity Rate Amount

KR Item 100 100 10000

Save.

Click: Complete (In Transaction window).

If you want to make correction, click: Incomplete.

Entry:

Receivable (Client Account) 10000

Revenue (Sales Account) 10000

(This is defined as auto accounting).

Transaction: (Tax & Freight)

Source: KR Source

Attach: Class – Invoice

Type: KR Type


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Ship to – KR Customer

Line items: KR Item 100*100=Rs.10000/-

Tax code: Location (5+2+3=10%) = Rs.1000/-

Click – Freight: = Rs.500/-

Save + complete.

Item: 10000; Tax: 1000; Freight: 500; Total: Rs.11500

Invoice Distribution:

Dr. Cr.

Revenue 10000

Tax 1000

Freight 500

Receivable 11500

Invoice Accounting Entry:

Dr. Cr.

Receivable 11500

To Revenue 10000

To Tax 1000

To Freight 500

Debit memo:

It is used to increase the debit balance of customer.

Memo lines: Memo lines are defined to charge the customers other than the inventory items.

Actual value = 10000


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Invoice Raised = 8000

Difference = 2000 (Debit Memo)

For debit memo:

SETUP > TRANSACTIONS > TRANSACTION TYPE

Name: KR Debit memo (Create)

Class: Debit Memo Open & GL Post: Enable

Freight: Enable Do not print & Open: Select

Sign: Positive (+)

Now, new transaction invoice Transaction/ Transaction

KR Sources

Debit memo

KR Debit memo

Lines – KR Item 100*100=10000

In transaction window – More information option

Cross Reference: 8002 Invoice (Select in list of values LOV)

Click: Complete.

Transacting & Accounting Non – Inventory Items:

SETUP > TRANSACTIONS > MEMO LINES

(Only Freight / Tax / Consultancy Charges can enter)

(If we do not want to inventory items, we can use memo lines)

Name: KR Freight (Create)

Type: Freight (Select)

Date: 01- Jan-01

Save.

Name: KR Tax (Create)


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Type: Tax (Select)

Date: 01- Jan-01

Save.

Name: KR Consultancy (Create)

Type: Charges (Select)

Date: 01- Jan-01

Save.

1. Create A Debit Memo: (For Freight Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR FreightThen we cannot enter amount in quantity / price / amount.Click: Freight – Enter =500/-Complete (Freight only accounted and raised as debit memo)

2. Create A Debit Memo: (For Tax Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR TaxWe can enter amount in that window.Click: Tax code – Adhoc / Other = 1000/-Complete.

3. Create A Debit Memo: (For Consultancy Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR ConsultancyNow, we can enter amount in quantity=1 (Not more than 1)Price = 1000=Consultancy charges =1000(1*1000)Complete. (If we want to enter more than one in this option, we require technical support).

Credit memo:

It is used to decrease the customer balances.


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SETUP > TRANSACTIONS > TRANSACTION TYPE.

Name: KR Credit memo.

Class : Credit Memo

Allow Freight: Enable Do not print & Open: Select

Sign: Negative (-) Tax calculation: Enable

Date: 01- Jan -01 Natural: Enable

Save.

Create a credit memo:(Festival discount – on account credit memo & not adjust with any invoice).

TRANSACTIONS > TRANSACTION

Source: KR Source

Type: Credit memo

In lines: Description – Diwali discount = -20000

Complete.

(Negative amount only will be accepted when complete the transaction).

Copy to invoices:

For example – Invoice no: KR INV 1

Creating multiple number of invoices such as KR INV 1

Create an inventory invoice no: 8010 for Rs.2000 – make it complete.

On top – action: Copy to

Schedule: No. of times 4

No. of Days 0

It will automatically create 4 invoices such as created invoice no: 8010 for Rs.2000

Inv. No. 8011 – Rs. 2000/-

Inv. No. 8012 – Rs. 2000/-

Inv. No. 8013 – Rs. 2000/-


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Inv. No. 8014 – Rs. 2000/-

Credit memo adjusting one invoice:

Create an invoice no: 8050 for Rs.10000/-

Complete.

Action: Installments status: Open

Now, (Decreasing value)

Action: Credit

Attach: KR Credit Memo

Credit memo: %40 4000/- or Click: Credit Balance (100% is credit memo)

(Here, we can enter -4000 also)

Click: Refresh (Refreshing the invoice)

Net invoice balance = Rs.6000/- only

Action: Installments Rs. 6000/- Status: Open

If credit memo is (-10000)

Action: Installments Rs.0/- Status: Closed.

Conclusion of Debit & Credit Memo: (In Oracle Apps)

Debit Memo:

We can raise debit memo against one invoice and we cannot view the increased amount in that particular invoice.

Credit memo:

Here we can raise credit memo against one invoice and can view the balance amount of that particular invoice. (Actual invoice value – Credit Memo value = Balance Value).

Installment invoice:

Create an invoice

Payment terms: KR Installment


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Complete.

Payment terms automatically generated:

1st 15 Days = Rs. 5000/-

Next 30 Days = Rs. 5000/- as defined.

Credit memo against the above invoice: FIFO / LIFO / PRORATE

1st installment = Rs. 5000/-

2nd installment = Rs. 5000/-

FIFO: (Rs. 5000/- OR 50%)

1st installment = 0 (CLOSED)

2nd installment = 5000 (OPEN)

LIFO: (Rs. 5000/- OR 50%)

1st installment = 5000 (OPEN)

2nd installment = 0 (CLOSED)

PRORATE: (Rs. 5000/- OR 50%)

1st installment = 2500 (OPEN)

2nd installment = 2500 (OPEN)

Deposits & Guarantee:

Deposits and guarantee are commitment transaction

- In case of deposit, we have received money from customer in advance

- In case of guarantee, it is an oral commitment only.

Deposits Guarantee

Advance receipt supply invoice & goods against oral guarantee

Then raise an invoice and

Send goods.

Deposit:


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SETUP > TRANSACTION > TRANSACTION TYPE

Name: KR Deposit (Create)

Class: Deposit (Attach)

Allow Freight: Enable Select: Do not print

Sign: Positive(+) Select: Open

Invoice type: KR Invoice

Date: 01- Jan -01

Save.

Allocations: Line, Tax, Freight (Against Deposit Invoice)

Enter a deposit invoice: (Advance receipt invoice = Commitment Invoice)

Source: KR Source

Class: Deposit

Type: KR Deposit

(Do not click line).

Click: Commitment – Rs. 200000/- (Description: Deposit invoice)

Save.

Invoice no is automatically generated = 8019 (Note down)

Now, create an invoice no: 8020

Source: KR Source

Class: Invoice

Type: KR Invoice

Commitment: 8019

Line: KR Item – 1000*139- Rs. 130000/-

Make it complete.

Value of this invoice 8020 = Rs. 0/


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(Reason: Already received advance and adjusted against this invoice).

Detail: Invoice 8020 value Rs.130000 is adjusted against deposit invoice 8019. Now, query your deposit invoice 8019 = Detail: Balance Rs.70000 only.

Guarantee:

SETUP > TRANSACTION > TRANSACTION TYPE.

Name: KR Guarantee (create)

Class: Guarantee (Attach).

Allow Freight: Enable Select: Do not print

Sign: Positive (+) Select: Open

Invoice type: KR Invoice

Date: 01- Jan -01

Save.

Enter a guarantee invoice: (Oral commitment only and no advance receipts)

Source: KR Source

Class: Guarantee

Type: KR Guarantee

(Do not click line).

Click: Commitment – Rs. 300000/- (Description: Guarantee invoice)

Save.

Invoice no. is automatically generated = 8024 (Note down).

Now, create an invoice no: 8025

Source: KR Source

Class: Invoice

Type: KR Invoice

Commitment: 8024


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Line: KR Item – 1000*160- Rs. 160000/-

Make it complete.

Value of this invoice 8025 = Rs. 160000/-

(Reason of 100% Invoice value reflected: Guarantee invoice is made for oral commitment and this invoice 8025 value Rs.160000 is to be received).

However, this invoice 8025 value Rs.160000 is adjusted against guarantee invoice.

Now, query your guarantee invoice 8024 = Detail: Balance Rs.140000 only (300000 – 160000).

Therefore,

Invoice against deposit invoice value = Rs.0//-

Invoice against guarantee invoice value = Rs.160000/-

Deposit Entry Flow Guarantee Entry Flow

Receivable Dr

To Unearned Revenue

Unbilled Receivable Dr

To Unearned Revenue

Receivable Dr

To Revenue

Receivable Dr

To Revenue

Unearned Revenue

To Receivable

Unearned Revenue Dr

To Unbilled Receivable

Invoice with rules:

Raising and booking invoices based on project completion wise (Phase wise)

(Fixed period wise & Variable period wise)

1. Accounting rule: The period is which the revenue is recognized and what % of revenue is recognized in each period.

2. Invoicing rule: When the bill is going to be raised


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- In advance- In arrears (After supply of goods).

Accounting rule:

- Fixed- Variable.

1. Fixed accounting rule: SETUP > TRANSACTIONS > ACCOUNTNG RULES

Name: KR Fixed Accounting Rule

Type: Accounting Fixed Duration

Period: Month (Month – Month) No.of periods: 4

Period %

1 25

2 25

3 25

4 25

Create an invoice:

KR Source

Invoice

KR Invoice

Date: 01- Mar – 01

Invoicing rule: In Advance

Line: KR Item – KR Fixed – 100*100 = 10000 – Make it complete (Inv. No: 8026 is generated)

(Invoice rule)

View – Single Request – Name: Revenue Recognition

Parameters: As Required.

Submit – View Request – Completed.


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Query your Invoice no: 8026

Tools – View Accounting: Entry:

Advance: (If in advance selected).

Dr. Cr.

Receivable 10000

Revenue 2500 (1st May)

Revenue 2500 (1st June)

Revenue 2500 (1st July)

Revenue 2500 (1st August)

Unearned Revenue 2500 (1st May)

Unearned Revenue 2500 (1st June)

Unearned Revenue 2500 (1st July)

Unearned Revenue 2500 (1st August)

Unearned Revenue 10000

Invoice raised for Rs.10000/- based on period wise receipt.

(Money will come on those periods and that periods will be consider as due dates).

Therefore, First Sales Entry will be generated.

Receivable Account Dr.

To Revenue Account.

That sale accounted in Unearned Revenue (Advance Receipt – If Advance Option is selected).

Arrears: (If in Arrears Selected) – If invoice value is Rs.20000/-

Dr. Cr.

Receivable 20000




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Unbilled Receivable 5000 (1st May)

Unbilled Receivable 5000 (1st June)

Unbilled Receivable 5000 (1st July)

Unbilled Receivable 5000 (1st August)

Unbilled Receivable 20000

Therefore, First sales entry will be generated.

Receivable Account Dr.

To Revenue Account. Cr.

That sale accounted in Unbilled Receivable (If Arrear Option is selected).

1. Variable accounting rule:

SETUP > TRANSACTIONS > ACCOUNTNG RULES

Name: KR Variable Accounting Rule

Type: Accounting Variable Duration

Period: Month (Month – Month) No. of periods: (Cannot enter)

Period %

1 25

Create an invoice:

KR Source

Invoice

KR Invoice

Date: 01- Mar – 01

Invoicing rule: In Arrears (Arrears only Is logical)

(Here we don’t know the project phase periods. Therefore, invoice can be raised on project completion only. Therefore, invoice will be treated as in arrears only).

In variable invoice rule – receipt in advance is not logical. Because, we don’t know the project periods.


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(In arrears, the invoice based on project completion only)

Line: KR Item – KR variable – 100*100 = 10000 – Duration: 4 (01-03-2001) – complete

(Invoice rule) Periods Date.

Invoice no: 8028 (Generated).



Submit – View Request – Completed.


Tools – View Accounting: Entry:

Arrear: (Arrear only is logical to select)

Dr. Cr.

Receivable 10000





Unbilled Receivable 2500 (1st May)

Unbilled Receivable 2500 (1st June)

Unbilled Receivable 2500 (1st July)

Unbilled Receivable 2500 (1st August)

Unbilled Receivable 10000

Book the invoice based on variable period wise receipt and transfer to un –billable sales.

(However, money will come later).

3. Variable – Deferred (Booking and transfer to Revenue Account as required for future periods).

SETUP > TRANSACTIONS > ACCOUNTNG RULES


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KR Deferred (Create)

Account Variable (Select)

Month (Month – Month)

Deferred: Enable

Period %

1 100

Save.

Create an invoice:

As usual and select sales person also.

Invoice rules: In Advance

Line: Deferred rule – 100*100 = 10000 – Duration: 1 (01-03-2001) – complete

(Invoice rule) Periods Date.

Invoice no: 8029 (Generated).




Entry:

Receivable 10000


Go to: CONTROL > ACCOUNTING > REVENUE RECOGNITION:

Find Invoice: 8029

Schedule the Revenue based on project completion on period wise (While completing the phases)

Click: Action – Schedule Revenue – Next – 70% If Schedule – Finish.

Rs.7000/- is transfer to Revenue Account

Balance Rs.3000/- is unscheduled


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Again schedule this Rs.3000/- to Revenue for making Rs.0/-

Save.

Again action: Transfer to sales person.

Save.

Query invoice: 8029

Dr. Cr.

Receivable 10000

Revenue 7000

Revenue 3000

Revenue 10000

Revenue 10000




Tax:


Sales tax Value added tax.

Sales tax VAT tax

Can operate VAT Cannot operate sales Tax.

Tax method: Sales Tax

Location Flex Field Steps: KR State – KR City – KR Country

Address validation: Error:- If address is not correct, the screen will show error messages.

No validation:- If we give wrong information, system will not validate.

Warning:- Warning message will display and can process further


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Tax vendor view: Oracle

Sales Tax Geo Override: If tax vendor view is some other software, we should attach that tax override application.

Inclusive Tax Used: If it is enabled, the tax amount will be displayed when we save in line window. Else, the tax will be displayed after complete the invoice.

Calculation level: Header – Tax will calculate only on Header

Line – Tax will calculate on each line.

Sales tax:

SETUP > TAX > CODES

TAX CODE TAX TYPE TAXABLE BASIS RATE % AMOUNT

KR Before Sales Tax Before Discount 10

KR After Sales Tax After Discount 10

KR Qty Sales Tax Quantity Rs.10/-

KR Adhoc Sales Tax Before Discount 12

KR Incl Sales Tax After Discount 10

KR Prior Sales Tax Prior 2

Effective:- 01- Jan-01

In control: KR Adhoc – Enable; KR Incl – Enable

Tax Account: 01-000-2520-0000-000

Prior tax: It’s only against with the help of Group Tax (i.e. Surcharge)

Inclusive: Item inclusive of tax.

1. Before: Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items

Item Quantity Rate Amount Tax


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KR Item 100 100 10000 KR Before

Save.Click: Save (in Line window)Tax: Rs.1000/- (Before Discount = Rs.10000*10%=Rs.1000)Total value = 11000Item = 10000Tax = 1000

2. After: Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerPayment Term: KR 30 days (For calculating discount)Click: Line items


KR Item 100 100 10000 KR After

Save.Click: Save (in Line window)Tax: Rs.900/- (After Discount = Rs.10000-Rs.1000=Rs.9000*10%=Rs.900)

Value Discount Tax calculation Tax Total value = 10900Item = 10000Tax = 900Invoice booking Entry:Receivable 10900 Dr.To revenue 10000 Cr.To Tax 900 Cr

3. Quantity : Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerPayment Term: As RequiredClick: Line items


KR Item 5 100 500 KR Qty


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Save.Click: Complete (in Transaction window)Tax: Rs.50/- (Quantity = 5 Quantity*Rs.10/-=Rs.50)

Qty no. Amount TaxTotal value = 550Item = 500Tax = 50

4. Adhoc : (If tax rate is different, we can use this method)In line – in tax window – we can enter tax rates and amount manually.Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Adhoc

Save.Click: Tax (in Line window)Defined for Adhoc = 12%Here, we can change the tax rate = 30% (Tax =Rs.3000/-)Tax: Rs.3000/-Total value =13000Item= 10000Tax = 3000(Before or after discount is based on company requirement. This is applicable for all quantity, adhoc and prior based tax calculations)

5. Inclusive : (Net invoice value is inclusive of tax)Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Incl

Total value =10000


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10000=110% (10% Tax is inclusive of invoice value)?=100Result: Rs.9090.90 (10000/110*100=9090.90)Now,100%=9090.9010 %=?( 9090.90*10%=Rs.909.10)Tax=Rs.909.10

6. Prior : (Works with help of Group tax)SETUP > TAX > GROUPSGroup code: KR Prior -1 (Create)Output: SelectGroup name: KR Prior TaxEffective: 01- Jan-01Effective: EnabledRates:

Tax code Rate Condition Sign

1 KR Before 10 01- Jan-01 Credit

1 KR Prior 2 01- Jan-01 credit

(Select) (Automatic)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Prior -1 (Group tax)

Click: Tax (in Line window)KR Before – 10%= Rs.1000/-KR Prior – 2%= Rs.20/- (KR Prior tax calculate on KR before amount Rs.1000*2%=Rs.20/-)Tax=Rs.1020/-Value added tax:1. VAT (Without CompounKRg)


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SETUP > TAX >CODES

Tax code Tax type Taxable basis Rate %

KR VAT 15 Value Added Tax Before Discount 15



In Effective: 01- Jan-01Save.

SETUP > TAX > GROUPS

Group code: KR Without -1 (Create)Group name: KR without compounKRg (Create)Rates:

Tax code Rate Condition Sign

1 KR VAT 15 15 01- Jan-01 Credit



(Select) (Automatic)Save.In System Options:Invoicing = AR RelatedOthers all = Other modules (PO, Inventory, Asset Management, etc)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Without -1

Click: Tax (in Line window for view the calculated VAT)

KR VAT 15 – Rs.1500/-

KR VAT 10 – Rs.1000/-


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KR VAT 5 – Rs.500/-

KR Adhoc – Rs.1000/-

(We can add these taxes while calculating VAT without taxes).Total taxes = Rs.4000/-Total value = Rs.14000/-Line=Rs.10000/-Tax=Rs.4000/-

2. VAT (With CompounKRg)


Group code: KR With -1 (Create)Group name: KR with compounKRg (Create)Rates:

Tax code Rate Condition Sign CompounKRg precedence

1 KR VAT 15 15 01- Jan-01 Credit 1



(Select) (Automatic)Save.In System Options:Invoicing = AR RelatedOthers all = other modules (PO, Inventory, Asset Management, etc)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR With -1

Save.


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Click: Tax (in Line window for view the calculated VAT)

KR VAT 15 – Rs.1500/-(1) -10000*15%=Rs.1500/-

KR VAT 10 – Rs.1000/-(2) -10000+1500=Rs.11500*10%=Rs.1150/-

KR VAT 5 – Rs.500/-(2) -10000+1500=11500*5%=Rs.575/-

Total taxes = Rs.3225/-3. VAT (With Constraint)-whether to use Tax Group

SETUP > TAX > GROUPSQuery: KR Without -1 (Control F11)Group Name: KR CompounKRgClick: Group ConstraintName: KR Constraint.

Lines:

Display Clause Entity Field Operator Value

1 If Ship to State + KR State

Action:

Display Type Code

1 True Use this Tax Group

2 False Do not use this Tax Group.

Save.(If ship to be KR State tax will be calculated else tax will not be calculated).Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Without-


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1

Save.Click: Tax (in Line window for view the calculated VAT)

KR VAT 15 – Rs.1500/- -10000*15%=Rs.1500/-

KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-

KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-

Total taxes = Rs.3000/-

4. VAT (With Condition)-whether to use all Tax code under this GroupSETUP > TAX > GROUPS

Query: KR Without -1/As Required (Control F11)Group Name: KR CompounKRg/ As RequiredKeep your cursor on first line of Tax Code Rates (1) /As RequiredClick: ConditionsName: KR Condition.Lines:


1 If Transaction

Type = KR Invoice

Action:

Display Type Code

1 True Use this Tax Group

2 False Do not use this Tax Group.

Save.(If Transaction type is KR Invoice, tax will be calculated for all VAT Tax codes else tax will not be calculated for rest of tax codes except conditional one).Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR Customer


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Click: Line items


KR Item 100 100 10000 KR Without-1

Save.Click: Tax (in Line window for view the calculated VAT)

KR VAT 15 – Rs.1500/- -10000*15%=Rs.1500/-

KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-

KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-

Total taxes = Rs.3000/-If we want to enter an invoice against MMM Invoice Type (Other Type of Invoice), the tax will be calculated as following.Click: Tax (in Line window for view the calculated VAT)

KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-

KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-

Total taxes = Rs.1500/-Here, tax will not be calculated for first line (VAT 15). Because, the condition has been given such as if invoice type is not KR invoice, the tax should not be calculated for VAT 15.

5. VAT (With Exception)-(Exceptional tax rate fixation against which we already defined)

If we already defined the tax rate is 5%, we can change to 20%.


Query: KR Without -1/As Required (Control F11)Group Name: KR CompounKRg/ As RequiredKeep your cursor on first line of Tax Code Rates (1) /As RequiredClick: ExceptionsName: KR Exceptions.Lines:


1 If Transaction Type = KR Invoice


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(Enable in system options –Tax Default)

SETUP > TAX > EXCEPTIONS

Select – ItemItem: KR Item (Select)Item Exception Rates:

From Location Tax rate Reason

01-Jan-01 KR State-KR City-KR Country

10+20+30 Special

Predefined = 5+3+2=10%Exception case = 10+20+30=60% (Exception case – Defined Here)This is applicable for location tax code only. Because, KR State –KR City – KRCountry.Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items


KR Item 100 100 10000 KR Without-1

Save.As like exemption calculation,Tax = Rs.6000/- (10000*60%=Rs.6000/-)

System Options: (For Setting Tax Default Codes & Hierarchy)


TAX CODE DEFAULTS HIERARCHY

Customer site 1

Customer 2

Product 3


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Revenue Account 4

System Options 5

We can set this hierarchy as required.While entering an invoice, it will tax default tax code as ranking here.If first ranked default tax code is not created, tax default selection move to next rank.

Enforce Tax from Revenue Account – Tax code default is always revenue tax code, which is created against revenue account.

Setting Tax Default For Particular Account: (For Item / Consultant / Service /etc).SETUP > TAX > GL ASSIGNMENTS

Account level:Account – Description – Tax Type – Tax Code.4110-Hardware - Output -KR Adhoc

(As Required) (As Required).

Consolidated billing:

CUSTOMER > PROFILE CLASSES

Query: KR ProfilePayment term: KR Proxima (Change)Consolidated billing formats: EnableType: DetailsSave. – Update options – Enable: Update all profiles – Ok(It will update KR Proxima payment term for all KR Profile class for making consolidated billing)

CUSTOMER > STANDARD

Name: KR Customer (LOV – Select)Find – KR Customer address displayed – OkIn profile transaction: Payment terms – KR Proxima (Select)In profile document printing – consolidate billing formats – Enable &Type: Detail(It will update KR Customer in order to KR Proxima payment term for consolidated billing)Enter an invoice:Source: KR SourcesClass: InvoiceDate: 15-May-06


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Type: KR InvoiceShip to: KR CustomerPayment term: KR Proxima (Automatic)Click: Line items


KR Item 100 100 10000 -

(As required).Save.Make it complete – Inv no: 8090Action: Copy toNo. of invoices: 15Days: 115 Invoices will be created like invoice no: 8090(1+15=16)View – Request – Single Request.Name: Print New Consolidated Billing Invoices.Parameter: 4896 (KR Customer) – KR Site – 15-May-06 – KR Proxima – Summary – No

Customer Bill to Cut of Date Payment term TypePreSubmit – Fine – View output.Result:All invoices are billed as consolidated.Transaction batches:

Making control to enter invoices by end user with certain control or limit(Count of Invoices & Amount of total invoices).TRANSACTION > BATCHESSource: KR Source (Select)Status: New (This status type – we should change manually after performing each steps)(But, in payable – this status will be automatically change ).Count Amount3 40000(3 Number of Invoices can be enter for total Rs.40000/-)Click: Transaction (For Entering Invoices)First invoices –Rs.10000Second invoices – Rs.20000(Now, 2 invoices are entered for Rs.30000/-)Now Status: Out of Balance (Manually Change).


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Third invoices – Rs.10000(Now, 3 invoices are entered for Rs.40000/-)Now Status: Open (Manually Change).Save.Batch Numbering: 5001 (Automatically Generated) – This number, we defined in system options.Receipts: (Basic Requirements)Requirements:

Bank Account Receipt Class

SETUP > RECEIPTS > BANKS

Name: KR Bank

Branch: KR Branch


Name: KR Current Account

Use: Internal (As Required)

Number: 123654

GL Account:

Cash 01-000-110-0000-000

Cash clearing 01-000-1250-0000-000

Bank charges 01-000-7870-0000-000

Bank errors 01-000-7870-0000-000

Confirmed receipt 01-000-2215-0000-000

Future dated payment 01-000-2580-0000-000

Receivable option:

Remitted requests 01-000-1245-0000-000

Factored receipts 01-000-2110-0000-000

Short term debt 01-000-2110-0000-000

In more receivable option:


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Unapplied receipts 01-000-1240-0000-000

Unidentified receipts 01-000-2990-0000-000

On account receipts 01-000-2110-0000-000

Receivable activities: Unearned Discounts - Unearned discounts

Earned discounts – Earned Discounts

SETUP > RECEIPTS > RECEIPT CLASSES.

Name: KR Manual

Creation method: Manual

Remittance method: Standard & Factoring

Clearance method: By automatic clearing (We need to run a program).

Payment method: KR Manual Method

Effective date: 01- Jan -01

Manual: Enable – Debit memos inherit receipt numbers.

Click: Bank accounts

Attach: As required

Claim investigations: Claim investigation.

In formatting programs:

Remittance transmission: French bills receivable remittance

Remittance print: Print bank remittances program

Factoring transmission: French bills receivable remittance

Factoring print: Print bank remittances program

Steps after collect the cheque:


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Receipt issued Deposit Cleared.

Clearing method:

o Directly: Received and credited (FIRC)o By Automatic Clearing: Once cheque is cleared, status: Cleared.o By matching: Cash management.

Receipts:

RECEIPTS > RECEIPTS

Payment method: KR Manual method

Receipt no: KR 001

Amount: 10000

Type: Standard

Save.

Entry: (Receipt Process)

Confirmation 10000 Dr.

Unidentified 10000 Cr.

Customer name: KR customer (attach)

Click: apply

Apply to: select invoice of this receipt (8001=Rs. 10000)

Click: save (it will be enabled applied & saved).

Entry: (receipt against invoice process)

Confirmation 10000

Receivables Dr Cr 10000(new)

Unapplied 10000

Unapplied 10000


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Unidentified 10000

Unidentified 10000

Status: confirmed (after created a receipt against an invoice)

Therefore, we prepared a receipt against an invoice.

Entry process:

Confirmation unidentified Unapplied unidentified (reversal) Unapplied (reversal) Receivables (against sales).

Remittance:

Receipts+ Remittances

In bank attach KR bankKR branch 123654 KR manual KR manual method

Bank ACCOUNT no rcpt class payment method

Click: manual create.

In that window (maintain Remittance Receipt batch)

Viewfind all(it will display all the entered receipts)/ find ( select your receipt).

Select :enable

Click: approve

Batch num 1052 (In Remittance window)control F11

Click: format

Viewrequeststatuscompletedview report.

(copy ur receipt num:001 in view report)

Go to receiptsquery: pasteKR 001%

Status: remitted.

Entry: (receipt cheque deposit process)

Confirmation 10000

Confirmation 10000


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Receivables 10000

Remittance 10000 (new)

Unapplied 10000

Unapplied 10000

Unidentified 10000

Unidentified 10000

Therefore, v have created 1 receipt & applied against an invoice. then, we select that receipt in remittance window & that receipt cheque deposited in our bank. Then, clear/risk eliminates process.

Clear/risk eliminate:

Receipts + clear/risk Remittances:

Name: automatic clearing for receipts

Parameters: yesyesyes25th may 200625th may 2006KR 001 KR customer.

SubmitViewrequestfind completed.

Receipt: query KR 001 % --> control F11

Entry: (clearing process)

Cash 10000 (new)

Receivables 10000

Remittance 10000

Remittance 10000

Unapplied 10000

Unapplied 10000

Confirmation 10000

Confirmation 10000

Now, the deposited cheque has been cleared & credited in out ACCOUNT.


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Factoring:

Receipt= 01-may-2006(cheque receipt date from customer).

Maturity=21-may-2006(cheque Maturity date)

Deposit=15-may-2006(cheque Deposited in our bank).

We have received a cheque against our invoice from our customer & deposited the same in future date. For this purpose, we can use factoring.

Process: confirmed receipt remitted cheque clearedrisk eliminated.

Create a receipt:

Receipt date: 01-may-2006

GL date: 01-may-2006

Maturity date: 21-may-2006

Receipt no: KR FACT (for our track)

Amts: Rs. 10000/-

Click: apply

Select an invoice8058enablesave.

Status: confirmed.

Go to remittance:

Receipts remittances.

Remittance method: factoring.

Date: 15-may-2006(deposit date).

Attach: bank & ACCOUNT no.

Click: manual create.

View find all.

Find: KR FACTenable.

Click: approve


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Batch no: 1833(copy).

Query remittance: 1833 (paste) control F11

Click: format

Go to receipts:

Query: KR FACT control F11.

Status: remitted.

Go to Clear/risk eliminate: (fix a risk)

(Cheque maturity date: 21-may-2006.however, we deposited our cheque in 15-may-2006 & bank takes risk & credits the funds in our ACCOUNT on 15-may-2006 itself against post dated receipt cheque).

Name: automatic clearing for receipts.

Parameters: yesyesno15th may 2006251h may 2006KR FACT KR customer.

(Fixed bank risk)(Clear date) (Receipt no.)


Receipt: queryKR FACT % control F11.

Here, our banker taken a risk & give loan to us based on post dated receipt cheque.

Go to clear /risk eliminates: (remove a risk).

(Removing the bank risk due to cheque maturity date is arrived).

Name: automatic clearing for receipts.

Parameters: yesyesyes21th may 2006211h may 2006KR FACT KR customer.

(Eliminate bank risk)(Clear date)


Receipt: queryKR FACT % control F11.

Status: risk eliminated.

Now, that maturity date is arrived & we removed the banker risk / removed the status of receipt of loan.


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Invoice

Item=Rs.800/-

Freight=Rs.100/-

Tax= Rs.100/-

Setup + system + application + rule set.

Name: KR application rule set.

Sequence rule

- Over application (automatic-save)

1 item (rule details: lineb4enablesave)

2 charges (rule details: chargesnoneenablesave)

3 freight (rule details: freightnoneenablesave)

Freezeenablesave.

Attach this “KR application rule set” in “KR transaction type”

Setup + transactions + transactions type:

Query: PN invoice % control F11.

Application rule set: KR application rule set (attach).

Create transaction:

Transaction transactions.

Source: KR Source KR invoice invoice num: 8075

Line: 100 * 100=Rs.10000/- tax: KR Adhoc

Click: freight

Total = Rs.11800

Item = Rs.10000

Freight= Rs.600

Tax = Rs.1200 (10000*12%)


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Enter receipt:

Receipt no: KR 8075 (create for our track)

Enter value: Rs.11600/- only

Apply

Query your transaction:8075

Details: item-Rs.10000 tax-Rs.1200 Freight= Rs.400 total-Rs.11600/-

Actual transaction value: Rs.11800/-

Revised & adjust value : Rs.11600/-

Balance Rs.200/- held in freight account.

Adjustments:

Invoice= Rs.10000

Receipt= Rs.9500/-

Due= Rs.500/-

Management plan to treat this Rs.500/- as bad debits or some other expenses. In oracle applications, write off this payment as adjustment (bad debits).

Setup +system + system options:

Miscellaneouswrite off limits per receipt =(-500) to 500

Save

(We can write off the short receipts up to Rs.500/- & write off excess receipt up to Rs.500

In real time, excess receipt will be adjusted later against new invoices)

We can see / set the approval limits in Setup + transactions + approval limits.

Setupreceiptsreceivable activities.

Name: KR Adjustments.

Type: Adjustments.

Activity GL ACCOUNT: 01-000-5230-0000-000

(std Adjustments.)


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Create transaction:

Source: KR Source KR invoice invoice num: 8076

Line: 100 * 100=Rs.10000/- tax: KR Adhoc (as required).

Enter receipt:

Receipt no :KR-8076(create – For our track)

Enter value : Rs.9600/- only

Click: Apply and select your invoice no: 8076

Click: Adjustments

Attach: KR Adjustments (-400)

(Automatic)

Go to receipt – Query: KR – 8076

Details: Original = 10000 receipt = 9600 Adjust =(-400)

Therefore, we have adjusted /write off that short receipt of Rs.400/-

This is for one invoice

Adjustments for multiple invoices: (In real time)

Create multiple transactions with the help of “copy to” in transaction window – Actions

Invoice no: 8077 = Rs.10/-

Complete

Action: Copy to (1 Day and 20 invoices) – save

Result: 20 invoices are created

Control > Adjustments > create > Auto adjustments

Remaining amount: Rs.0/- to Rs.10/-

Customer: KR customer

Activity: KR Adjustments (Attach)

Type: Invoice Adjustments (Attach as required)


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Reason: Write off (Attach as required)

Option: Generate Report only Adjust Related Invoices : Enable

Submit

View – Request – completed – view report

Report will be generated and we can preview our report

Result: Created 20 + 1 invoices have been write off (copy any one invoice no: 8088)

Now, create adjustments

Control > Adjustments > Create Auto Adjustments

Selection and parameters are same as above

Option: Create Adjustments Adjust Related invoices : Enable

(In the above result, we have copied one invoice number)

In transaction: Query – 8088%

Result:

Details: original – Rs.10 /- Adjusted – Rs.10/- Result: Rs.0/-

Receipt write off:

Setup > Receipts > Receivable activities

Name: KR Receipt write off

Type: Receipt write off

Activity GL account: 01-000-1270-0000-000

(Reserve for returns)

Save

In system options – Miscellaneous: Rs.500/- (positive) Excess write off limits

Save


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We can see the given approval limit in Transactions > Approval limit

Enter a transaction = 8091

Amount: Rs.10000/-

Complete

Enter a receipt = KR-8091

Amount: Rs.10500/-

Apply

First line: 8079 = Rs.10000

Select Enter short

Second line: Receipt write off = Rs.500 = KR Receipt write off

Select Balance Activity

Save

In transaction: Query – 8079%

Result:

Details: Original – Rs.10000/- Write off – Rs.500 (Auto generated)

Receipts write off: (For multiple Receipts)

Create some multiple receipts for Rs.500/-

Control > write off receipts

Unapplied Amount: Rs.500/-

Customer: KR customer

Parameters: KR Receipt write off (attach)

Option: Generate Report only Adjust Related invoices : Enable

Submit

View – Request – completed – view report


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Result: Excess receipt invoices has been write off against our customer

Again,

Control > Write off receipts

Unapplied Amount: Rs.500/-

Customer : KR customer

Parameters : KR Customer write off (attach)

Option : Create write off Adjust related invoices : Enable

Submit

View – Request – Completed – View Report


Result : Excess Receipt Invoices has been write off and copy one particular receipt (KR – 8095)

Receipt – Query : KR – 8095%

Details : Original : Rs.10000/- Write off : (-500) (automatic generated)

Adjustments : Excess / Shortage

Transaction Type – Over Application should be enable. Then only, we can adjust / Write off the excess/ short receipt transaction.

(Receiving shortage / Excess receipts)

Receipts Reversal:

If cheque has been bounced, we can reverse the entered receipt.

Receipts > Receipts summary

Query : KR %

Select one receipt – open KR 81 – Reverse (Reason & Category)

Click : Reverse

Status : Reversed


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(or)

In abroad, instead of preparing reversal entry they will create a debit memo against reversal receipt.

In receipt summary

Select one receipt – open (KR 82)

Select : Category & Reason

Enable : Debit memo reversed

Type : Debit Memo Reversal

Click : Reverse (Account No :1210)

In summary window – copy that receipt number (KR 82)

Transaction + Transaction

Query – Paste KR 82 % - Control F11

Class : Debit Memo (Automatically Generated)

Type : Debit Memo Reversed (Automatically Generated)

Now, new debit memo has been created

Entry : (As usual sale entry)

Receivable 10000

To revenue 10000

Miscellaneous Receipt:

If we receive any interest or miscellaneous income, we are in position to enter miscellaneous receipt.( entering a receipt for without customer name)

For example : Interest Invoice (Miscellaneous Receipt) = Rs.10000/-

Distribution set : (If required)

Set up > receipts > distribution sets

Name : KR Distribution Set


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% Account Description

50 01-110-7810-0000-000 Interest Income

50 01-120-7810-0000-000 Interest Income SAVE

Receivable Activity:

Set up > Receipts > Receivable activities

Name : KR Miscellaneous cash

Type : Miscellaneous cash

Active : Enable

GL Account Source : Distribution Set

Tax code source : None

Distribution Set : KR Distribution set (Attach)

SAVE

Receipts + Receipts

Receipt NO : KR Misc.01 (For our track)

Amount : Rs.10000/-

Receipt type : Miscellaneous

Payment method : KR Manual (After select receipt type)

Activity : KR Miscellaneous Cash (Attach)

Distribution set : Interest Income (Automatic)

Save

Entry : DR CR


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Confirmation 10000

Miscellaneous Cash 110 5000

Miscellaneous Cash 120 5000

(Here customer name is not required and this interest receipt is miscellaneous cash. Then we can go to Remittances – Clear / Risk eliminate for credit the payment in our account)

Charge back:

1st May, we have created a transaction with due date of 15th May. Suddenly , customer said the due for that transaction invoice is June 2nd& management also accepted .

Therefore, we have to create a new entry as per accepted due date (2nd June ) – Now, we can apply charge back function .(Reverse original entry & create a new entry as per new due date)

Set up + Transaction + Transaction Type

Name : KR charge back

Class : Charge back Enable : Open Receivables & post to GL

Sign: Positive

Save

Create an original transaction KR 85=Rs.10000/- (Due date – 15th May)

Create a receipt against this original transaction – apply – select original transaction

Click: Charge back

In receipts:

Receipt No : KR charge back 01

Amount: Rs.0/-

Apply

Select invoice – KR 85 (Rs.10000/-)


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Save

Click: charge back

Type : KR charge back

Due date : 15th May (old) –change to 2nd June (New)

Save

Copy charge back no : 100561

Transaction + Transactions

Query – Paste 100561% - F11

Result:

Charge back entry is created for Rs.10000/- with due date of June 2nd (New transaction Entry)

Entry : As per sales entry

Receipt batches:

For transaction source – Invoice Numbering & Batch numbering both should be defined

For Receipt source – Batch Numbering only required

Set up >Receipt > Receipt source

Name : KR receipt source

Receipt source type :Manual (Enable)

Receipt class : KR Manual (Attach)

Payment method : KR Manual Method (Attach)

Bank : KR current account (Attach)

Batch numbering : Automatic – Enable Last Number :4000

Save


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Receipts > Batches

Batch type : Manual – Regular

Batch source : KR Receipt Source (Attach)

Receipt class - payment method – Bank Name – Account Number : Generated Automatically

Control : Count – 3 amount – 3000

Save

(Here , status will be automatically changed based on steps followed – out of balance/closed)

Click : Receipts (For creating 3 number of receipt for Rs.30000/-

New

Create 1st Receipt : KR Receipt 11=Rs.10000 – Apply – Save

Create 2nd Receipt : KR Receipt 12=Rs.10000 – Apply – save

Status : out of balance

Create 3rd Receipt : KR Receipt 13=Rs.10000 – Apply – save

Status : Closed

If,

Batch type: Manual Quick

Auto cash rule set (requirement)

1. Apply to the oldest source first – Apply receipt against invoices on first cum first serve

2. Clear the Account – Apply receipt against group of invoices which is stanKRg as overdue

3. Clear post due invoices – Apply receipt against an old invoice and balance as overdue

4. Clear post due invoices grouped by payment term – Apply receipts against invoices grouped by payment term

5. Match payment with invoice – Apply receipt against actual invoice & result is Rs.0/-

Setup > Receipts > Auto cash rule set


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Name : KR Auto Cash Rule (create)

Discounts : None – No Discounts ; Earned only – Discount only on earned invoice receipt

Earned & unearned only – Discount on earned & unearned adjusted due invoices.

Automatic Matching Rule : Unapplied (status of balance amount)

Apply partial receipts : Enable

Auto cash Rule: (As required)

1 Apply to the oldest invoice first

2 Clear past due invoices

3 Clear past due invoices grouped by payment term

4 Clear the account

5 Match payment with invoice

Customer + Profile class

Query : KR% - control F11

KR profile class

Auto cash Rule set: KR Auto cash rule set (Attach)

Save- Update all profiles

Check whether all the profiles are updated or not in our KR customer:

Customer + Standard

Select: LOV – KR Customer – Find – ok

Profile transaction: KR Auto cash rule set (should be attached automatically)

Address – Open (site) – Profile: KR Auto cash rule set (should be attached automatically)

Save

Receipts + Batches

Batch Type: Manual – Quick


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Batch source: KR Receipt source (Attach)

Receipt class – Payment Method – Bank Name – Account Number: Generated

Automatically

Control : Count: - 5Amount – 50000

Save

Here also, status will be automatically changed based on steps – out of balance/closed)

Click : Receipts (For creating 3 number of receipts for Rs.30000/-)

KR Quick 1 10000 Single KR Customer Apply to

KR Quick 2 10000 Multiple KR Customer Click: Multiple & Apply

KR Quick 3 10000 Auto cash KR Customer -

KR Quick 4 10000 On Account KR Customer -

KR Quick 5 10000 Unapplied KR Customer -

Click : Post Quick Cash

View – Request – Find – Status – Completed – View output

Copy : Receipt Batch No: 1015601

In that Receipt Batches window

Query – Batch Number : Paste 1015601

Click : Receipts – Select Auto Cash rule set receipt

This receipt automatically adjusted as defined in auto cash rule set

Automatic Receipts: (Direct Wire transfer from customer)

Requirements:

1. Customer Bank

2. Receipt classes – Bank details for automatic receipts from customer


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3. Define GL sequence

4. Customer standard – Attach: Customer Bank – Payment Method

5. Create Transaction (Invoice)

6. Automatic Batch

Receipts

1. Customer Bank

Setup + Receipts + Banks

Bank Name : KR Customer Bank (Client Bank) – Create

Branch Name : KR Customer Branch (Client Bank Branch) – Create

Click : Bank Accounts

Name : KR Customer EEFC Account – Create

Account use: Customer

Account No: 2558123456

Save

2. Receipt Class

Setup + Receipts + Receipts classes

Name: KR Automatic (create)

Select : Automatic – No Remittance – Directly

Payment method: KR Automatic (Create)

Automatic :

Disable: Receipt Inherit Transaction Numbers

Number of receipts Rule: One per invoice (select as required)

Receipt Maturity Date Rule: Earliest (select as required)


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Automatic print program : Prince Receipts Program (select as required)

Lead Days : 50 (For generating automatic receipt based on due dates – Fix high value only)

Click : Bank Accounts

Attach : KR Customer Bank – KR Customer Branch – KR Current Account – 0(Minimum Receipt)

GL ACCOUNT: Automatic generated & Claim investigation in last

Formatting Program: French Bills Receivable Remittance & Print Bank Remittances program Save

3. Define GL Sequence

Switch over to GL vision operations

Setup > Financials > Sequence > Define

Name : KR Rule (Create)

Application : Receivables (Attach)

From : 01-Jan-01

Type : Automatic (select)

Initial value : 500

Save

Setup > Financials > Sequence > Assign

Document

Application : Receivables (Attach)

Category : KR Automatic (Attach)

Set of books : Vision operations – USA (attach)

Method : Automatic (Attach)


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Assignment

Start date : 01-Jan-01

Sequence : KR Rule (Attach)

Save

4. Customer standard

Switch over to receivables vision operations

Customer + Standard

Select : LOV – KR customer –Find – Ok

Payment Method : KR Automatic (Attach) Enable : Primary

Bank Accounts : KR Customer EEFC Account & 2558123456 Enable : Primary

In Address – Go to site – open

Payment Method : KR Automatic (Attach) Enable : Primary

Bank Accounts : KR Customer EEFC Account & 2558123456 Enable : Primary

Save

5. Create Transactions:

Source : KR Source

Invoice : KR invoice

Payment Method : KR Immediate

Line : 100*100=10000

Complete

Action : Copy to -1 & 30 = 30 invoices has been created

6. Batches:

Receipts + Batches


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Batch Type : Automatic

Receipt class : KR Automatic (Attach)

Payment Method : KR Automatic (Attach)

Click : Create

Customer Name : KR customer

Enable : Approve

Ok

View – Request – Find – Status – Completed

Back to Receipt Batch window – Copy – Batch No:1053

Query this window – Select Automatic & paste 1053% - Control F11

Click : Format


Back to Receipt Batch window – Click : Main – Select one receipt number : KR receipt 82

In Receipts + Receipts

Query – Paste ON Receipt 82%

Status : Cleared

This is what automatic receipt batches created based on customer direct wire transfer remittance.

Bills Receivable:

Bills receivable is a negotiable instrument between two parties

Drawer Drawee

Supplier – Drawer – Raises the bill


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Customer – Drawee – Accepts the bill

Supplier – Send Goods & BR Acceptance letter to – customer – collect BR Acceptance letter from customer – Submit- to our bank for collection of the bills receivable on maturity date against invoice of acceptance letter (Maturity date i.e. due date) – Customer wire money to our bank based on due date – Our banker receive the payment from our customer and close our BR correspondence.

1. Transaction type – BR

2. Transaction source

3. Assign Drawee - Customer

4. Receipt class

1. Transaction Type:

Setup + Transaction +Transaction Type

Name : KR BR

Class : Bills receivable

Sign : Positive Enable : Open Receivables & Post to GL

Date : 01-Jan-05 Print and open

Format program Name : French Bills Receivable

Enable : Signed

Save

2. Transaction Source:

Setup + Transaction + Source

Name : KR BR Source

Type : Manual

Description : KR BR Source

Enable : Active & Automatic Transaction Numbering Last Number : 2000(As required)


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Reference Field Default value : Interface_header_attribute 1

Save

3. Assign Drawee in Customer

Customer + Standard

Select : LOV – KR Customer – Find – Ok – Address (site) – open

Business purpose: Drawee Add)

Enable : Primary

Save

4. Receipt Class:

Setup + Receipt + Receipt Classes

Name: KR BR Receipt class

Creation Method: Bills receivable remittance (As required)

Remittance Method: Standard and Factoring (As required)

Clearance Method: By automatic clearing

Payment method: KR Manual

Effective Dates: 01-Jan-01

Enable: Receipt Inherit transaction numbers


Bank Name: KR Bank (our Bank) Branch Name: KR Branch

Account Name: KR current Account

GL – Short Term Debt: Short Term Debt – Factoring

Claim investigation: Claim investigation


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Formatting Program: French bills Receivables Remittance & Print Bank Remittances program

Save

Bills Receivable + Transaction

1-Jun-06 – Invoice

10-Jun-06 – Bills Receivable Transaction

20-Jun-06 – Acceptance

28-Jun-06 – Maturity

Source: KR BR Source Maturity: 28-jun-06

Type: KR BR

Issue: 01-Jun-06

Main Drawee = KR customer (Invoice Raiser)

Click: Assignment – Select Transaction Invoice

Click: Complete – Accept

Save

Copy the generated bills receivable number: 2001

In portfolio management: Status – PenKRg

Bills Receivables + Remittances

Remittance Method: Standard (Select)

Receipt Class: KR BR Receipt Class (Automatic)

Payment Method: KR BR Automatic (Automatic)

Remittance: KR Bank (Invoice Raiser Bank)

Click: Manual Create


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Maintain Remittance Batch Window

Select BR NO Type

Enable 2001 KR BR

(Automatic) (Select) (Automatic)

Action: Enable – Approve and format

View – Request – Find – Status – Competed

In portfolio management: Status – Standard Remitted

BR > Maturity & Risk Programs

Single Request

Name: Bills Receivable Maturity and Risk Program

Parameter: Maturity Date from & To : 28-May-06

Transaction Type – KR BR

Submit

View – Request – Find – Status – Competed – View Report – Copy the Receipt No : 2001

In portfolio management: Status – Closed

Receipt + Receipt

Query

Payment Method: KR%

Receipt No: 2001%

Control F11

Status: Remitted


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If Remittance Method : Factoring

Supplier – Send Goods & BR Acceptance Letter to – Customer – Collect BR Acceptance

Letter from customer Submit to our Bank to borrow money against the bills receivable before

maturity date (Before Maturity date i.e. before due date) Customer wire money to our bank based on due date – Our banker receives the payment from our customer and closes our BR

correspondence For this factoring remittance method banker will charge interest.

BR > Transaction

1-Jun-06-Invoice

10-Jun-06-Bills Receivable Transaction

20-Jun-06-Acceptance

28-Jun-06-Maturity

25-Jun-06-Remit

Source: KR BR Source Maturity: 28-Jun-06

Type: KR BR

Issue: 01-Jun-06

Main: Drawee = KR Customer (Invoice raiser)

Click: Assignment – Select Transaction Invoice

Click: Complete – Accept

Save

Copy the generated bills receivable number: 2002

In portfolio management: Status – penKRg

BR > Remittances


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Remittance Date : 25-Jun-06

Remittance Method: Factoring (select)

Receipt Class: KR BR Receipt Class (Automatic)

Payment method: KR BR Automatic (Automatic)

Remittance: KR Bank (Invoice Raiser Bank)

Click: Manual create

Maintain Remittance Batch window

Select BR NO Type Amount

Enable 2001 KR BR 10000

(Automatic) (Select) (Automatic) (Automatic)

Action: Enable – Approve and format


In portfolio management: Status – Factored

BR > Maturity & Risk Programs

Single Request

Name: Bills Receivable Maturity and Risk program

Parameter: Maturity Date From & To : 28-May-06

Transaction Type – KR BR

Submit

View – Request – Find – Status – Competed – View Report – Copy the Receipt No: 2001

In Portfolio management: Status - Closed

After this function, one receipt will be generated automatically with status of “Risk”.

Then, we need to run a program and “eliminate the Risk”.


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Cross currency Transaction:

Invoice : AUD 10000

1 USD = 2 AUD

Therefore, Functional currency value = USD 5000

Enter a transaction = AUD User rate: 2

Line : 100*100=AUD 10000

Invoice no:8132

Complete

Details: AUD 10000 USD 5000

Entry:

Receivable 5000

Revenue 5000

Receipt in INR

Payment Method: KR Manual

Amount: INR 230,000 (USD 5000*Rs.46/-) Cross currency rate: 23

Apply: 8132 (Calculate manually based on Functional currency)

1 USD = 2 AUD (10000 AUD)

1 USD = Rs.46/- (5000 USD)

USD 5000 * Rs.43/- = Rs.230, 000/- Therefore 1AUD = Rs.23/-

Entry :

Confirmation 5000 230000

Receivable 5000 10000(AUD)


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Unapplied 5000 230000

Unapplied 5000 230000

Reciprocal Relationship:

A customer B customer

A customer can pay for B & B customer can pay for A = as we define)

A is parent, A can pay for B and B cannot be pay for A)

Customer + Standard

Name: KR New customer (Newly create)

Address: Open – Attach – KR city – KR state – KR country

Classification: Attach KR profile & KR payment method

Enter a transaction: Either for old or new customer (if reciprocal)

Here, we can enter KR invoice – KR customer (Bill to) – KR new customer (ship to)

(If parent and child)

Later on we feel that new customer is wrong

So to account merge – Do that Reciprocal /Parent (As required)

And delete that new customer

Then, we cannot create invoice for new customer

Collection Activities:

Setup > Collections > Aging Buckets

Name: KR Aging Bucket (create)

Type: 4 Bucket Aging (As required)

4 Bucket – Report for 4 periods; 7 bucket – Report for 4 periods;


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Credit snapshot – Particular customer balance report; Statement Aging – Report for 5 periods

1 Future -180 0 Future due

2 Paste Due 1 30 Past Due



Save

Collections + Aging

Attach your aging bucket & customer

It will show debtor – aging reports as we defined for KR customer

Customer Calls:

Collections > Customer calls

Attach : KR customer & KR collector

Response : Attach as required (will call back/ dispute amount)

Outcome : Attach as required (unable to contact / meeting scheduled)

For customer call if particular invoice – Click: Topics and perform

When follow up complete – collection + schedule

Enable : Follow up complete

Print documents:

Print documents > Statements

Option : Print statement / Reprint statements (As required)

Bucket : Statement


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Customer Name : KR customer

Cycle : Weekly / Monthly / Quarterly (as required)

Submit

If we want to send statement to customer periodically

Setup + Print + Statement Cycles

Name : KR periodic statement

Interval : Weekly/Monthly/Quarterly

Unit : Vision Operations 1

Date : Print statement period

Save

Dunning letters:

Set up + Print + Dunning letters

Name: KR dunning letter

Review Date: As scheduled

Message: As required for request to release the payment

Save

Print Document + Dunning letters

Single Request

Name: Dunning letter Generate

Parameters: As required

Submit

View – Request – Find – Status – Completed – View the Dunning Letter

AR Reconciliation:


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Before Transfer of AR Transaction to General Ledger (GL), we can reconcile the AR transactions

Control + Request + Run

Single Request

Name : AR Reconciliation Report

Parameters : Set of books Currency & GL date

Submit

View – Request – Find – Status – Completed – View the Dunning Letter (It’s not a Report)

Transfer to GL:

Interface + General Ledger

Single Request

Name: General Ledger Transfer program

Parameters: Start Date

To date (Post through Date)

Post in summary: If required – Yes (Else – No)

Run Journal Import : If required – Yes : Everything transfers and posted in GL

No: In GL – Import from AR and post the same

Submit

View – Request – Find – Status – Completed – View Report

Copy: Posting control ID Number (No: 60532)

Switch over to GL Responsibility

Journals + Enter

Batch: %60532%


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Click: Find

In journal summary window – Source: AR Transaction reflected in the status of un-posted

Review journal – Check Funds – Reserve Funds – Post

Re – query: Status - Posted

MULTI-ORG

Profile (Types) Options


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1. GL Ledger Name (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.)

2. MO: Operating Unit ( Responsibility level : OU_ARG_Argentina)

3. MO: Security profile

4. HR: Security Profile (site level : Setup Business Group )

5. HR:Business Group (site level : Setup Business Group )

6. HR:User Type (Site level - HR User)

7. GL: Data Access Set (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.)

Create New Responsibility

Responsibility = System Administrator

1. Navigate to (N) Security > Responsibility > Define.

2. Enter the Responsibility Name: KR Assistant System Administrator

3. Select the Application: Application Object Library

4. Enter the Responsibility Key: KR_ASST_SYSADMIN

5. Enter the Description: Assistant System Administrator

6. Check Available From: Oracle Applications

7. Select the Data Group: Your Initials Data Group

8. Select the Data Group Application: Your Initials Custom Application

9. Select the Menu: Navigator Menu – System Administration GUI

10. Save your work.

Menus & Functions

Application Users


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E.g.) GL – Super user

- JNLS Submenus- Setups

Financial options

Payables Options Functions

Mandatory field’s required for Responsibilities:

1. Menu2. Data Group3. Request group (optional)

Profile options for proviKRg security:

1. Site level2. Application level Key ff If not reqd take tick mark3. User level 4. Sever level5. Org level

Validation Types

1. None – No security2. Independent – Only choose from List of values3. Dependent – Only dependent depend on other segments.

[ ] - White – Mean it has something [ ] – Grey – Nothing, can be added.

I. Menu Creation

Application > Menu

Menu : Suresh


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User Menu Name : Suresh Raja

Menu Type Des :

Seq Prompt

10 SR - GL GL - Super User

20 SR - AP AP - Navigate - GUI12

30 UK - SHRMS Navigator

II. Create Responsibilities

Security > Responsibility > Define

: ABCD Data Group

: Payable STD

: ABCD Payable

Payable reports only

Menu Suresh Raja Payables

Exclude Menus:

III. Create User:Suresh


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Assign Suresh Raja

Steps:

1. Create Responsibilities – AP, GL, AR, FA, HR, and CM.2. Create an Application user and attach responsibilities.

General Ledger – GL – Super userAccounts Payable – AP – Navigator – GUI12Accounts Receivable – AR – Navigator – GUI12HR – UK SHRMS Navigator- System Administrator.

3. Create a Business Group.- Login to HR Responsibility.- Create Business Group.

Navigation: Work Structure > Location : SR LOC

Address Style – US/UK

New Business Group:

Work structure > Organization > Description > New (A)

Name: SR org (BG)

Location: SR location (We Created)

Org classification: Business Group

(T) Others Business Group & Tab


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o Short name : SR BG

o Employee number generation : Automatic

o Application Number generation : Automatic

o Automatic

o Grade ff

o People gr.ff

o Job ff

o Cost allocation ff

o Position ff

o Competence ff

o United kingdom

o GBP

o 1.1.12

Define Ledger (SOB)

Create Ledger , GL resp

Switch Resp


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Go to HR resp

WS > Org > Despriciption

Create Legal Entities:

SR legal entity

Class: GRE/ Legal Entity.

Others – Legal entity accounting

Tab

Attach SOB – SR SOB.(in 11i)

Create Operating Unit

Classify

Operating Unit : Operating Unit

Others operating unit information

Tab – Legal entity SR LE Attach.


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System Administrator

Next step: Assign Responsibility to legal entity

SR. Responsibility

System Administrator > Profile > system.

Tick Responsibility : SR GL

Profile : GL/Set of Books name

Press F1:

Profile: MO% operating Unit

Attach SROU

Press F11:

HR: Security profile: SR BG

Press F11:

HR user type: HR with payroll user

View > Request with

Report: Replicate seed data


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: SR – Operating unit

SUBMIT

Multiorg set up validation report

Menu


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Logout and login as KR user


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Payables

1a Create Responsibility: Payables Inquiry


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1 Data group name Standard

2

Data group Application Payables

3 Menu AP_NAVIGATE_INQUIRY_GUI12

4 Responsibility Key PAYABLES_INQUIRY

5 Request groups Payables Reports only

6 Application Payables

b Create Menu

Seq Prompt Submenu Function Description

1 Invoices AP_INVOICES_INQUIRY_GUI12 View Invoices

2 Payments AP_PAYMENTS_INQUIRY_GUI12 View Payments

3 Accounting AP_ACCOUNTING_INQUIRY_GUI12 View Accounting

4 Suppliers AP_APXVDMVD_MENU View Suppliers Suppliers Inquiry

5 Other FND_OTHER 4.0 Other

6 View Supplier Information

c Create Function


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2a Create Responsibility: Payables Manager

Data group name Standard

Data group Application Payables

Menu AP_NAVIGATE_GUI12

Responsibility Key PAYABLES_MANAGER

Request groups All Reports

Application Payables

b Create Menu


5 AP_INVOICE_GATEWAY_GUI12 Maintain Quick Invoices

10 Invoices AP_INVOICES_GUI12 Maintain Invoices

15 Payments AP_PAYMENTS_GUI12 Maintain Payments

20 Accounting AP_ACCOUNTING_GUI12 Maintain Accounting

25 Suppliers AP_SUPPLIERS_GUI12 Maintain Suppliers

30 Employees AP_EMPLOYEES_GUI12 Maintain Employees

35 Credit Cards AP_MAINTAIN_CREDIT_CARDS_GUI12 Maintain Credit Cards

40 Setup AP_SETUP_GUI12 Setup

45 Workflow AP_WORKFLOW_GUI12 Workflow

50 Other FND_OTHER 4.0 Other

55 AZN_PR_PAYABLES Accounts Payable Processes in Graphical Process Navigator


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60 AP_PO_VIEW_PURCHASE_ORDERS_GUI

65 Bank Account Access: Supplier Assignments

70 AP_POS_INV

75 Supplier Information Management (Buyer View)

80 View Supplier Information

85 CE Bank Home Page Menu

90 CE Bank Search Home Page Menu

95 PO Order Tab

100 CE Bank Account View - View Only

105 View Payment Page

c Create Function

3a Create Responsibility: Payables Requests


2Data group Application Payables

3 Menu Payables Requests(AP_PAYABLES_REQUESTS)

4 Responsibility Key AP_PAYABLES_REQUESTS_RESP

5 Request groups All Reports

6 Application Payables


1 Invoices Invoice Actions/Review Page


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1a Create Responsibility: Receivables Inquiry

1 Responsibility Key RECEIVABLES INQUIRY


3 Data group Application Receivables

4 Menu AR_NAVIGATE_INQUIRY_GUI

5 Request groups Receivables Reports Only

6 Application Receivables

1b Create Menu

Menu AR_NAVIGATE_INQUIRY_GUI

Seq Prompt Submenu Function

1 Transactions AR_TRANSACTIONS_VIEW

2 Receipts AR_RECEIPTS_VIEW

3 Collections AR_COLLECTIONS_VIEW

4 Customers AR_CUSTOMERS_VIEW

5 Control AR_CONTROL_GUI

6 Accounting Subledger Accounting Functions

7 Activities

17 Control AR_CONTROL_INQUIRY_ONLY

24 Accounting SLA: User Main Menu

40 XLA_SL_DRILLDOWN


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2a Create Responsibility: Receivables Manager

1 Responsibility Key RECEIVABLES_MANAGER



4 Menu AR_NAVIGATE_GUI

5 Request groups Receivables All


2b Menu Exclusions

Type Name Description

Menu AZN_PR_RECEIVABLESProcess Navigator Menu for Accounts Receivable Processes

2c Menu AR_NAVIGATE_GUI


1 Transactions AR_TRANSACTIONS_GUI

2 Receipts AR_RECEIPTS_GUI

3 Bills Receivable AR_BILLS_RECEIVABLE_GUI

4 Collections AR_COLLECTIONS_GUI

5 Customers AR_CUSTOMERS_GUI

6 Setup AR_SETUP_GUI

7 Reports AR_REPORTS_GUI

8 Print Documents AR_PRINT_GUI


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9 Interfaces AR_INTERFACE_GUI

10 Control AR_CONTROL_GUI

11 XLA: View Accounting Lines

12 AZN_PR_RECEIVABLES

13 Notifications WorkFlow Notifications

14 Credit Management Credit Management Programs

15 Inquiry AR_INQUIRY_GUI

16 iReceivables iReceivables Internal Page

17 Account Details Collections: Subfunctions Account Details

18 Render Credit Card Error Handling Buttons

22 Activities

23 Payer Payment Details Region

24 Late Charges AR_LATE_CHARGES_GUI

90 Unisys Invoice Consolidation Unisys AR Invoice Consolidation Form

116 Setup Merge Dictionary Setup Merge Dictionary

125 XLA_SL_DRILLDOWN

132 Customer SubMenu

149 Bill Management: Real Preview

152 Customers AR_CUSTOMERS_VIEW

167 Receivables

3a Create Responsibility: Receivables Operations Analysis


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Application Financial Intelligence

1 Responsibility Key FII_OBIEE_AR_RESP


3 Data group Application Applications BIS

4 Menu Receivables Operations Analysis Catalog

5 Request groups DBI Requests and Reports

6 Application Applications BIS

3b Menu Receivables Operations Analysis Catalog


5Receivables Operations Analysis Catalog Receivables Operations Analysis Catalog

10 Receivables Operations Analysis Subject Area

4a Create Responsibility: Receivables Archive and Purge

1 Responsibility Key RECEIVABLES_ARCHIVE_AND_PURGE



4 Menu AR_ARCHIVE_PURGE

5 Request groups Archive and Purge



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4b Menu AR_ARCHIVE_PURGE


1 Archive and Purge AR Archive and Purge

2 Requests Concurrent Requests: View All (User Mode)

Functions


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1a Create Responsibility: General Ledger Super User

1Responsibility Key

GENERAL_LEDGER_SUPER_USER


3 Data group Application General Ledger

4 Menu GL_SUPERUSER

5 Request groups GL Concurrent Program Group

6 Application General Ledger

1b Create Menu

Menu GL_SUPERUSER


1 Journals GL_SU_JOURNAL Enter, generate, and post actual and encumbrance journals


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2 Budgets GL_SU_BUDGET Define, enter, and generate budgets

3 Inquiry GL_SU_INQUIRY Inquire on balances and journals

4 Currency GL_SU_CURRENCY Revalue and translate balances

5Consolidation GL_SU_CONSOLIDATION

Define mappings and eliminations, transfer data, eliminate and monitor consolidation process flows

6 Reports GL_SU_REPORT Define and request reports

7 Setup GL_SU_SETUP Set up system

8 Other GL_SU_MANAGER View concurrent requests, notifications, and set profile options

9 AZN_PR_GL GL Process Navigator

10 GL_DAS_HOME_PAGE

11

GL_CRM_HOME_PAGE_MENU

12

Workflow Guest Self-Service Monitor Application

13

Definition Access Sets

100 Query Valid Values UGL_MGR_SETUP

105

Unisys TRC Form

Unisys GL transaction db form Unisys TRC Form

2a Create Responsibility: General Ledger User

1 Responsibility Key GENERAL_LEDGER_USER


3 Data group Application General Ledger


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4 Menu GL_USER

5 Request groups

6 Application

1b Create Menu

Menu GL_USER


1 Journals GL_U_JOURNAL Enter actual journals

2 Reports GL_U_REPORT Request reports and inquire on balances and journals

3 Encumbrance GL_U_ENCUMBRANCE Enter and inquire on encumbrance journals

4 Other GL_SU_MANAGER View concurrent requests, notifications, and set profile options

Function


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