Today, I need to test a receipt with bank charge, but found the bank charges field is grey. As investigation for some time, bank charges can be enabled by the profile option “AR: Create Bank Charges”.
1. Define system parameters in order management setup
“Allow Multiple Payments” as “Y”
2. Define receipt class and payment method and assign document sequence (Optional)
3. Define payment term with “Prepayment” option enabled.
4. Define receivable activity with “Prepayment” type
1. Create sales order and book it.
2. Go to Actions -> Payment, create prepayment. A prepayment type receipt will be created in AR.
Cr. Prepayment (Actually a liability account)
3. Release, pick confirm, ship confirm sales order and run autoinvoice and prepayment match program in AR. AR invoice is auto created and applied with prepayment.
From Oracle user guide, it is said that
“In Receivables, you can apply a receipt to an open debit item before cash is actually received from the bank. Therefore, receipts with a Standard remittance method are considered receipts at risk if they have been confirmed, but not yet cleared. Receipts with a Factored remittance method are at risk if they have not yet been risk-eliminated.”
But when I only select “At Risk” option as “Y” in receipt summary form, not only above two kinds of receipts are displayed. Some receipt with state of “Remitted” and with receipt class “not remittance” are also displayed. It seems that “All not cleared receipts are considered as “At Risk”“. Is it right?
In the last query, it shows
“SELECT …. FROM AR_CASH_RECEIPTS_V WHERE (AT_RISK=’Y’) order by RECEIPT_NUMBER”
Then I view the view definition of AR_CASH_RECEIPTS_V, the most important section is as
DECODE ( NVL(CR.CONFIRMED_FLAG,’Y’), ‘Y’, DECODE( CR.REVERSAL_DATE, NULL, DECODE( CRH_CURRENT.STATUS, ‘REVERSED’,’N’, DECODE( CRH_CURRENT.FACTOR_FLAG, ‘Y’, DECODE( CRH_CURRENT.STATUS, ‘RISK_ELIMINATED’, ‘N’, ‘Y’), DECODE(CRH_CURRENT.STATUS,’CLEARED’, ‘N’,’Y’))), ‘N’), ‘N’) AT_RISK ,
By the way, I refer the section of user guide to introduce the concept of “Include Receipts at Risk in Customer Balance”.
“In Receivables, you can apply a receipt to an open debit item before cash is actually received from the bank. Therefore, receipts with a Standard remittance method are considered receipts at risk if they have been confirmed, but not yet cleared. Receipts with a Factored remittance method are at risk if they have not yet been risk-eliminated.
You can view the number and amount of receipts at risk and their effect on your customer’s open balance in the Receipts Summary window.
To include receipts at risk and receipts that were created by the Bills Receivables Remittance or Maturity and Risk program, select Yes in the appropriate areas in the Find Receipts window.
To display receipts at risk and include them when calculating a customer’s past due balance in the Account Details window, set the AR: Include Receipts at Risk in Customer Balance profile option to Yes. This profile option affects the Account Details window.
If this profile option is set to No, you can choose to include items at risk by performing the following:
- Choose the Include Receipts at Risk option from the Tools menu.
- Execute your query.
Important: The AR: Include Receipts at Risk in Customer Balance profile option and the option on the Tools menu do not affect the customer balance calculation in any Receivables standard reports or listings. These options only affect whether Receivables displays receipts at risk and includes them in the open balance calculation for Account Details.”
1. Define a transaction type for deposit with “Deposit” transaction class.
2. Define a receipt class and payment method to receive deposit transaction. (Optional)
1. Create AR transaction with deposit transaction type and complete it.
Cr. Offset Account (Deposit Account, a kind of liability account)
2. Create Receipt for deposit.
3. AR invoice created automatically or manually
4. Apply Deposit with AR invoice
Dr. Offset Account
Oracle receivables have a “deposit” transaction class and meantime have a “prepayment” receipt type. From business view, it looks the same, but why does Oracle designed “duplicated”? What’s the difference between them? I think it for a long time, and get some points to share with our friends here. Hopefully it is helpful for your implementation and support.
1. When deposit or prepayment created in AR, the actual AR invoice for goods or services have not been generated. This is normal business process for concept of deposit/prepayment. Deposit is created in Oracle Receivables independently for a customer. It is not able to be associated or called matched directly with any prior business documents before AR invoice, like sales order in OM. But Prepayment type receipt is generated from feeder module(like OM), it is associated with sales order in sales order additional information.
2. One AR invoice can apply with only one deposit, but one ar invoice can apply multiple prepayment type receipts. It is also means that one sales order can be prepaid for multiple times before ship confirm. This is very useful for multiple times prepayment/deposit.
3. Payment term flexibility: deposit can have its own payment term, while sales order/AR invoice can have different payment term. It is very flexible for customer balance control. As prepayment is a receipt type and it is auto generated from sales order, it is must be immediate. And sales order must have a payment term which is prepayment enable.
At last, I would like to say the offset account for both deposit and prepayment should be set up as an actual liability account. Some customers use on-account receipt for prepayment business before. It is not recommended, as on-account account is always set up as an actual asset account.