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December 16, 2015

12/16/2015 03:11:00 PM
01.Explain different types of transaction in Receivables.

  • Invoice In Oracle Projects, a summarized list of charges, including payment terms, invoice item information, and other information that is sent to a customer for payment.
  • Debit memos Debits that you assign to a customer to collect additional charges. For example, you may want to charge a customer for unearned discounts taken, additional freight charges, taxes, or finance charges.
  • Charge backs A new debit item that you assign to your customer when closing an existing, outstanding debit item.
  • Credit memo In Oracle Receivables, a document that partially or fully reverses an original invoice. You can create credit memos in the Receivables Credit Transactions window or with Auto Invoice.
  • Deposit A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of goods and services
  • Guarantee A contractual obligation to purchase a specified amount of goods or services over a predefined period of time.

02. What is Application Rule Set?

Application Rule Sets

Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction’s line, tax, freight, and finance charges.

Receivables provides the following application rules:

Line First – Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.

Line First – Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.

Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.

To define an application rule set:

1. Navigate to the Application Rule Sets window.

2. Enter a Name and Description for this rule set.
3. Enter the Sequence number for this application rule. Receivables apply payments in this sequence, beginning with the lowest sequence number.

Note: You cannot enter a sequence number for the Over application rule. By default, this rule is last in the sequence for each application rule set.

4. Enter an application Rule. Each rule will correspond to a line type (for example, lines, freight, or charges), so you should give your rule a descriptive name. Each rule set must have at least one application rule.

Attention: Receivables automatically assigns the Over application rule to each application rule set. You cannot delete this rule. The Over application rule applies any remaining amount after the balance due for each item has been reduced to zero. If the transaction type of the debit item allows over application, this rule prorates the remaining amount between each line and its associated tax amount, making these amounts negative. If the transaction type does not allow over application, either you can place the remaining amount on–account or leave it ’Unapplied’.

5. Enter Rule Details for this application rule. This section indicates the type of charges and the tax handling for this rule. Choose a Type of Line, Freight, or Charges. You need to enter at least one type for your rule set.

6. If you chose a Type of ’Line’, choose a Tax Treatment. Choose one of the following:

Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated tax.

Note: The default Tax Treatment for your Freight and Charges types is None. This option ignores tax, since you cannot tax freight and charges in Receivables. You cannot choose None for your Line type.

7. To automatically adjust this line type to account for any rounding corrections within this rule set, check the Rounding Correction box. When an amount is prorated among several line types, Receivables must use one of the line types to account for the rounding adjustment. Each application rule set must have one and only one rounding correction line type.

Suggestion: Assign the Rounding Correction to the line type that is usually the largest portion of your invoices. By doing this, the rounding correction will have the least effect on the overall remaining and applied amounts for this line type.

8. Repeat the previous steps for each rule you want to add to this rule set.
9. Save your work.
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