Step 1 Define Ledgers (Required)

- GL

If you previously defined your ledger or ledgers while setting up a different Oracle
Applications product, proceed to the next step.
You need to define at least one ledger before you can implement and use Receivables.
When defining a ledger, you also need to:
Assign your Ledgers to a Responsibility
Define your Accounting Flexfield
Define your Accounting Flexfield Combinations (Optional)
Define your Calendar Period Types
Define your Calendar Periods
Define your Currencies
Resp>> AR>>Currencies

 Define your Daily Conversion Rate Types

Define your Daily Rates (Optional)
Resp>>General Ledger>>Daily Rates

Step 2 Define Flexfields

For Receivables, you need to define both key and descriptive Flexfield. For key flexfields, you
define the flexfield structure, specifying the number and function of segments, and then select the
structure. For descriptive Flexfield, you define the global data element context, any additional
contexts that you might require, and then the structure of these contexts. Key flexfields do not use
contexts.
Define Key Flexfields (Required)
You can use the Territory flexfield for recording and customized reporting on your territory
information. Receivable provides a default structure for your Territory flexfield. You can associate
Territory flexfields with salespeople, invoices, commitments, and customer business purposes.
Resp>> Inventory>>Key Flexfield Segments

Segments tab:

For Value Set AMTEX_AR_REGION

Create a Value set and then enter the Values (List of Territories) in the value set.

Step 3 Define Organizations (Required) - INVENTORY

Step 4 Define System Options (Required)
Define your accounting, discount, and invoice system options to control how Receivables works.
System options determine your accounting flexfields, whether you use header or line-level
rounding, and control the default operation of the Auto Invoice and Automatic Receipt programs.
Resp>> AR>> Setup>> System>> System Options

Step 5 Open Accounting Periods (Required)

Open or close periods in your accounting calendar to control the recording of accounting
information for these periods. Receivable uses the status of these accounting periods to control
transaction entry and journal entry creation to your general ledger. You cannot enter an activity in
a closed accounting period. Receivable provides the following period statuses: Not Opened,
Future, Open, Close Pending, and Closed.
Resp>>AR

Step 6 Define AutoAccounting (Required)

Define AutoAccounting to specify the general ledger accounts for transactions that you enter
manually or import using AutoInvoice. AutoAccounting uses this information to create the
default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, bills receivable
accounts, and AutoInvoice clearing (suspense) accounts.
Resp>>AR
Context: Perform this step for each operating unit.

Step 7 Define Transaction Types (Required)

Define the transaction types that you assign to invoices, debit memos, commitments, chargebacks,
credit memos, on-account credits, and bills receivable. Receivable uses transaction types to
default payment term, account, tax, freight, creation sign, posting, and receivables information.
Receivable provides two predefined transaction types:
Invoice and Credit Memo.
Context: Perform this step for each operating unit.
Resp>> Setup>>Transaction>>Transaction Types
For Credit Memo

CUSTOMIZED TRANSACTION TYPE

In this case Revenue and AR accounts are picked from Transaction Type not from customer
site.
Red circle shows the Return Transaction Type . From here the Transaction type (Invoice) is
linked with the Return TT. Transaction Type for Return is made as follows:

For Return:

Another example of Transaction Type:

For Return:

Step 8 Define Transaction Sources (Required)

Define the transaction sources that you assign to invoices, debit memos, commitments, credit
memos, on-account credits, and bills receivable. Receivables uses transaction sources to control
your transaction and transaction batch numbering, provide default transaction types for
transactions in batch, and to select validation options for imported transactions. Receivable
provides the following predefined transaction sources:
MANUAL-OTHER, DM Reversal, and Chargeback.
Context: Perform this step for each operating unit.
We will make a Transaction Source for Auto Invoice
Resp>>AR>>SETUP>>Transaction>>Sources

Step 9 Define Remittance Banks (Required) CASH

MANAGEMENT/AR/AP
Context: Perform this step for each operating unit.
Define all of the banks and bank accounts you use to remit your payments. You define banks and
bank accounts in Oracle Cash Management.
You can define as many banks and bank accounts as you need and define multiple currency bank
accounts to accept payments in more than one currency. Proceed to the next step if you already
defined your remittance banks in Oracle Cash Management.

Step 10 Define Receivables Activities (Required)

Define Receivables Activities to provide default accounting information when you create
adjustments, discounts, late charges, miscellaneous cash transactions, and bills receivable.
Receivable also uses Receivables Activities to account for tax if you calculate tax on these
activities.
Context: Perform this step for each operating unit.
We will make AR activities for Unearned Discount and Earned Discount.
Resp>> AR>>Setup>>Receipts>>Receivable Activities
For Unearned Discount

For Earned Discount.

Step 11 Define Receipt Classes (Required)

Define receipt classes to specify whether receipts are created manually or automatically. For
manual receipts, you can specify whether to automatically remit it to the bank and/or clear your
accounts. For automatic receipts, you can specify a remittance and clearance method, and
whether receipts using this class require confirmation.
Context: Perform this step for each installation.
We will make Receipt classes for CUSTOMER RECEIPTS and Receipt Method for Customer
Receipts, Pre Shipment Loans and Post-Shipment Loans
For Customer Receipts

Bank Accounts Tab: CUSTOMER RECEIPTS-RECEIPT CLASS

Attach all the relevant banks to the Receipt Class

CASH: AL-KHURRAM EXPORTS.KE.NONE.NONE.AMTEX COMMON.UBL CIRCULAR ROAD, 012-72.NONE.NONE

(May differ for other banks)
BANK CHARGES: AL-KHURRAM EXPORTS.KE.NONE.NONE.AMTEX COMMON.BANK CHARGES.NONE.NONE
(May differ for other banks)
UNAPPLIED RECEIPTS: AL-KHURRAM EXPORTS.KE.NONE.NONE.AMTEX COMMON.UN APPLIED
RECEIPTS.NONE.NONE (same for all banks)
UNIDENTIFIED RECEIPTS: AL-KHURRAM EXPORTS.KE.NONE.NONE.AMTEX COMMON.UNIDETIFIED
RECEIPTS.NONE.NONE (same for all banks)
ON ACCOUNT RECEIPTS: AL-KHURRAM EXPORTS.KE.NONE.NONE.AMTEX COMMON.ON-ACCOUNT
RECEIPTS.NONE.NONE (same for all banks)
UNEARNED DISCOUNTS: (same for all banks)
EARNED DISCOUNTS: (same for all banks)

In Red are the Receivables activities as done in Step10 : Receivables Activities

For Pre Shipment Loans:

Same for Post Shipment Loans

Bank Account Tab: PRE SHIPMENT LOANS- RECEIPT METHOD

CASH: AL-KHURRAM EXPORTS.NONE.NONE.NONE.AMTEX COMMON.CASH AT SCB.NONE.NONE

(May differ for other banks)
BANK CHARGES: AL AL-KHURRAM EXPORTS.NONE.NONE.NONE.AMTEX COMMON.BANK
CHARGES.NONE.NONE (May differ for other banks)
UNAPPLIED RECEIPTS: AL-KHURRAM EXPORTS.NONE.NONE.NONE.AMTEX COMMON.PRE SHIPMENT LOAN
(UNAPPL.NONE.NONE (same for all banks)
UNIDENTIFIED RECEIPTS: AL-KHURRAM EXPORTS.NONE.NONE.NONE.AMTEX COMMON.PRE SHIPMENT
LOAN (UNIDEN.NONE.NONE (same for all banks)
ON ACCOUNT RECEIPTS: AL-KHURRAM EXPORTS.NONE.NONE.NONE.AMTEX COMMON.ON-ACCOUNT
RECEIPTS.NONE.NONE (same for all banks)
UNEARNED DISCOUNTS: (same for all banks)
EARNED DISCOUNTS: (same for all banks)

Same for Post Shipment Loans

-----------------------------------------------------------------------------------------------------------ACCOUNTS IN GL
UNAPPLIED RECEIPTS
UNIDENTIFIED RECEIPTS
ON ACCOUNT RECEIPTS

Customer Receipt
Y
Y
Y

Pre-Shipment Loans
Y
Y
Y

Post-Shipment Loans
Y
Y
Y

Step 11 Define Receipt Methods (Required) DONE IN THE ABOVE

STEP
Define the receipt methods to account for your receipt entries and applications and to determine
a customer's remittance bank information. When defining receipt methods, you must enter a
receipt class, remittance bank information, and the accounts associated with your payment
receivables type. You can also specify accounts for confirmation, remittance, factoring, bank
charges, and short-term debt.
Context: Perform this step for each installation.

Step 12 Define Receipt Sources (Required) DEFINED BY ORACLE

Define receipt sources to provide default values for the receipt class, receipt method, and
remittance bank account for receipts in a batch. Receipt Sources also determine whether the
numbering for receipts in a batch is automatic or manual. Context: Perform this step for each
operating unit.
Resp>>AR>>Setup>>Receipt>>Receipt Sources

Step 13 Define Salespersons (Required) - OM SETUP STEPS

Define salespersons to allocate sales credits to invoices, debit memos, and commitments. If you
do not want to assign sales credits for a transaction, you can enter No Sales Credit. If
AutoAccounting depends on salesperson, Receivables uses the general ledger accounts that you
enter for each salesperson along with your AutoAccounting rules to determine the default
revenue, freight, and receivable accounts for transactions.
Context: Perform this step for each operating unit.

Step 14 Define System Profile Options (Required)

Define profile options to provide default values for some Receivables operations, specify how
Receivables processes data, and control which actions users can perform. Context: Perform this
once for each installation.
Profile

Site

Applicati
on

Responsibili
ty

Use
r

Serve
r

Or
g

Natur

FOR EACH RESPONSBILITY

HR: User Type
Hr: Security Profile
Hr: Business Group

User

After GL & ORG initial

setup
GL: Set of Books
MO: Operating Unit
GMF: Default Currency
GL:Set of Books Sequential
Numbering
AR:Receippt Batch Source
AR:Transaction Batch Source

at this level
at this level

at this level
at this level

OM: Administer Public Queries

Yes
FAZAL
CLOTH
MILLS
LIMITED

Yes

OE: Item Validation

Organization
Pricing
OM: List Price Override
Privilege
OM: Charging Privilege
OM: Discounting Privileges
QP: Blind Discount Option
ASO : Discounting Privilege
CSD: Allow Price Override for
Logistics Lines
GML: Override Price in Price
UM
OM: AutoSchedule
OM: Scheduling Role
HZ: Change Customer Name

FAZAL CLOTH
MILLS
LIMITED
Unlimited
Unlimited
Unlimited
YES
FULL
YES

YES

Autosc
This e
organ
HZ: Ch
option
chang
the pa

AR: Customers - Enter

Alternate Fields
AR: Cash - Allow Actions
OM: Debug Level
OM: Apply Automatic
Attachments
OM: Prevent Booking for Line
Generic Holds

Yes
0
NO

No sales
credit

OM: Default Salesrep

OM: Invoice Numbering
Method
Automatic
You must assign a value to the AR: Use Invoice Accounting For Credit Memos
profile option
You must assign a value to the Sequential Numbering
profile option.

option
ALTER
WINDO
For ad
button
Perfor

OM: A

Preven

Step 15 Define Customers (Required)

Proceed to the next step if you defined customers while setting up another Oracle Applications
product.
Define customer accounts and customer site uses to enter transactions and receipts in Receivables.
When you enter a new customer, you must enter the customer's name, profile class and number
(if automatic customer numbering is set to No). You can optionally enter customer addresses,
contacts, site uses and telephone numbers.
Context: Perform this step for each installation.

Step 16 Define Remit-To Addresses (Required)

Define remit-to addresses to inform your customers where to send payments. Associate each
remit-to address with one or more state, country, and postal code combinations. For example, if
you want your customers in California and Nevada to send their payments to a specific address,
enter the remit-to address and associate the states CA and NV with this address. Remit-to
addresses are assigned based on the bill-to address on the transaction.
Context: Define remit-to addresses for each installation. For each operating unit, associate each
remit-to address with a state and country.

Step 17 Define Document Sequences (Optional)

By assigning unique numbers to documents, you can account for each transaction you enter and
the document that accompanies it. To enable sequential numbering, set the Sequential
Numbering profile option to either 'Always' or 'Partially Used'. You must then define and assign
categories and sequences for each transaction type, receipt method, adjustment, and late charge
activity that you use.
Context: Define categories and sequences for each installation. Assign sequences to categories
for each ledger.

FINAL STEP:
TRANSFER TO GENERAL LEDGER FROM AR
Please make SURE that you have made the Document Sequences for Invoice, Credit Memos, debit
Memos and Receipts. These Document sequences will then BE assigned to Categories in General
Ledger Application.
Resp>>AR>>Run Request>>Create Accounting

Enter Parameters
General Batch Name entered will the batch Created in GL. In this case batch name is
AR_Opening_Balances

Submit the request and view the output to make sure that there are no errors. If there are any
errors then resolve these errors and run this request again. Output of this request will clearly
specify the errors and the description of errors.

After this, run this request in AR. Name Transfer Journal Entries to GL.
There is a chance that this request will not available in the AR responsibility, if this is the case
then go to System Administrator Responsibility and attach the report to the Request group for AR
reports.
Run the request
Resp>>AR>> Run request

Enter Parameters

GO TO GL RESP TO VIEW YOUR BACTHES:

RESP>>GL>>JOURNALS>>ENTER>>FIND