This article provides you a quick setup for Fusion Receivables without spending hours going through numerous pages of user/implementation guides. Doing this quick setup allows you to create customer, create invoice and receiving payments/create deposit. In nutshell, enable organization to use out of box fusion receivable functionality.
Before starting with Fusion receivable quick setup, GL enterprise structure should exist in place. Once the GL enterprise structure ready, first step is to create Business unit with Receivable business function.
Once the Receivable business unit is ready, the very first step is to define receivable system options.
Define Receivables system options to define your Receivables environment. The various settings in Receivables system option will decide the way Receivables perform various activities in Oracle Fusion for a given business unit.
You have to do due diligence on below considerations before defining the system options:
- Decimal rounding
- Invoice delivery
- Late charges
- Interest invoice
During Receivables setup, you specify your accounts,customer & invoice parameters, and how the AutoInvoice and Automatic Receipts programs operate.
Navigation: Financials > Define Receivable Configuration > Manage Receivable System Options
Setup the receivables activities to default accounting information for each corresponding activity occurs in receivables. The various activities performed in receivable are, such as miscellaneous cash, discounts, late charges, adjustments, and receipt write-off applications, Bank Error,Credit Card Chargeback/refund, Earned Discount, Payment Netting, Prepayment, unearned Discount.
Navigation: Financials > Define Receivable Configuration > Common Accounts Receivable Configuration > Manage Receivable Activities
Fusion will provide you various options to define the activity accounting:
- define constant value
- derive the account from Invoice
- derive the account from Salesperson…. and more.
depends on your business requirement, you will define the various activity accounting.
Transaction type is one of the indispensable setup task for receivables. Transaction type helps to define and control the accounting for various receivable transactions, like Invoice, debit memo, credit memo, on-account credits and chargebacks, organization create in Receivables.
Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Transaction Type
As highlighted, using Transaction types organization will control whether the transaction entries update the customer balances and whether Receivables posts these transactions to the general ledger.
- Control Transaction batching and numbering
- specify default transaction type
- Select validation options for imported transactions
- Assign batch sources to invoices, debit memos, credit memos & on-account credits
Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Transaction Source
Fusion AutoAccounting is one of the most critical receivable setup task. Autoaccounting specify, how to determine the default general ledger accounts for transactions that the organization is entering manually or importing using AutoInvoice. Organization must define AutoAccounting before entering any transactions in Oracle Fusion Receivables. While entering or updating transactions, user can override the default general ledger accounts that AutoAccounting creates.
Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage AutoAccounting Rules
Oracle Fusion Receivables require to define standard payment terms for customers. Organization will be able to create payment terms that include discount percent for early payment and also allow to assign multiple discounts to each payment term line. Fusion receivables also allow organization to define proxima payment terms to pay regular expenses like rent, credit card bills and telephone bills that occur on the same day each month. Organization will also create split payment terms for invoice installments that have different due dates.
Remit To Address
Remit-to addresses will let your customers know where to send payment for the invoices. Fusion Receivables use remit-to-addresses to default remit-to information when organization enter the receivable transactions.
If organization is using AutoInvoice but have not defined a remit-to address for a location, AutoInvoice will reject all invoices for which it could not determine a remit-to address. However, if organization don’t want to define remit-to address for each location, then organization will set up one remit-to address with a default assignment. Oracle Fusion Receivables will then use this remit-to-address for all locations. This ensures that AutoInvoice will not reject invoices because it could not determine a remit-to address.
Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Remit to Addresses
Receipt Class and Methods
Oracle Fusion Receivables require receipt classes and receipt methods to process customer payments. Receipt classes helps in identifying the required processing steps for customer receipts to which user assign receipt methods with this receipt class. The processing steps include confirmation, remittance, and clearance. Receipt methods will derive accounting for receipt entries and applications, determine customer remittance bank account information, and configure automatic receipt processing and fund transfer error handling.
Navigation: Financials > Define Receivable Configuration > Define Customer Payments > Manage Receipt Classes and Methods
Oracle Fusion Receivable require receipt sources to provide default values for the receipt class, payment method, and remittance bank account fields for customer receipts user has added to a receipt batch. Fusion receivables allow to accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.
When user select a receipt batch source to enter customer receipts, fusion receivables automatically uses the Cash, Unapplied, Unidentified, On-Account, and Earned and Unearned Discount account information organization assigned to the payment method for this batch source. The payment method accounts for the receipt entries and applications user make using this receipt batch source.
Navigation: Financials > Define Receivable Configuration > Define Customer Payments > Manage Receipt Source
Once the organization has competed the above Fusion receivables setup tasks, they are ready to.
If we summarize, then below fusion receivables setup tasks are required to create basic transaction using out of the box fusion receivable functionality:
- System Option
- Receivable Activity
- Transaction Type
- Transaction Source
- Payment Terms
- Receipt Classes and Methods
- Receipt Sources
Once the above receivable setup tasks are completed, create customer and you are ready to create basic receivable transaction using out of the box fusion receivable functionality.