ert820:5 Document 14016364 Bills Receivabl : Overview and Setup Oracle Receivables Release 12 (Doc ID 1401636.1) In this Document Purpose ‘Scope Details 1, Overview 2. Types of Bills Receivable 3, Setup a, AutoAccounting b. Transaction Type c. Receivable Activities d. Receipt Classes e. Batch Source £. Customer 4g. Profile Options h. Funds Capture setup 4, Process Flow 5. Creating a Bills Receivable Directly, via the Transactions workbench Manually, using the Bills Receivable Transaction form c, Automatically, using Bills Receivable Transaction Batches 6, Impact of Exchanging a Transaction into a BR Z. Collecting Payment for a BR a, Standard Remittance b, Factored Remittance 8, Maturity and Risk Elimination 9. Portfolio Management 10. Printing a BR 11, Summary of BR process flow 12, Technical Reference 13. Troubleshooting and Known Issues/Patches 14, Diagnostics Community Discussions Feedback References Oracle Receivables - Version 11.5.10.0 and later Information in this document applies to any platform, ip:support oracle. com/epmosifacesiDocumerDisplay?_adl t-stlo-advalmeBe_ 4028id=1401636.1ert820:5 Document 14016364 Oracle Receivables (AR): Receipts Workbench Information Center > Note 1401636.1 This document provides an overview and setup requirements for Bills Receivable in R12 Oracle Receivables. Focus of this note is Oracle Receivables Release 12. Although most of the content in this note is also applicable in Release 11.5, some features described are only available in Release 12. 1. Overview Bills Receivable (BR) is a more secure debit item than a regular invoice, It is a legal document, binding the debtor(signer) to pay a certain sum at a future day or on demand. By entering into a BR agreement, the debtor Promises to pay the creditor the specified amount at the specified date. ‘ABR has characteristics of both a transaction and a receipt. In the beginning of its life, itis like an invoice because it is a debit item that a customer owes you. Towards the end of its life, it changes to a receipt, because you can remit it to a bank for payment. ‘The BR feature was introduced in Oracle Receivables in 11i.AR.C to fuffil legal requirements in some European and Asian countries. In Release 12, the Bills Receivable feature is enabled by default. In Release 11.5, please review Note 247015.1, How To Enable The Bills Receivable Feature In AR Release 11i 2. Types of Bills Receivable There are 3 types of BRs: 1, Accepted Bills Receivable Also known as a Signed Bills Receivable, this is an official document that is sent by the the creditor (you) to the debtor (your customer). It includes the due amount and the maturity date. The debtor has to accept it with his/her signature and gives it back to the creditor. The creditor can then negotiate this document with a third party (bank, factoring company, etc.) to receive cash in advance of the due date. This type of BR has more legal force, because a debtor's acceptance indicates he consciously entered into an agreement with the creditor. It reinforces the creditor's right to be paid. 2, Promissory Note ‘Also known as a Drawee Issued BR, This is a debtor's simple promise to pay an amount on a maturity date. Generally, itis issued by the debtor on a short term period and the reimbursement is guaranteed by a financial company/bank. 3, Unsigned Bill Receivable Generally issued by the creditor, the Unsigned BR does not need to be accepted by the debtor. The creditor decides the maturity date for this BR. The original invoices that were exchanged into a BR are still required to dlaim the debt if debtor should fail to pay and legal action becomes necessary. 3. Setup To ensure that Oracle Receivables can create Bills Receivable, the following should be setup properly. a. AutoAccounting ABR is a new type of transaction that has its own set of GL accounts, To ensure that accounting is created properly, define AutoAccounting for the following types: ipssupport oracle. com/epmosifacesiDocumerDisplay?_adl ct-stlo-advalmeBe_ 4028id= 401636.1 22site201s Document 14016364 Factored BR: used when you create a Factored Remittance Bills Receivable: used as the Receivable account for when you create a Bills Receivable Remitted BR: used when you create a Standard Remittance Unpaid BR: used when in Portfolio Manager you tag a BR as Unpaid Unbilled BR: used as the Receivable account when you exchange an invoice that is Billed in Arrears Responsibility: Receivables Manager Navigation: Setup > Transactions > AutoAccounting Memeo taceens Operating Unit Vision Operations Type [Bills Receivable << Seyments Segment Table Name Constant VU company a (Copartimant (coa (account 220 |Sub-Account ‘ooo Product (000 r i b, Transaction Type Oracle Receivables does not provide any seeded BR transaction types. You need to define transaction types for the BRs you will create. Responsibility: Receivables Manager Navigation: Setup > Transaction > Transaction Types rsig Unt sion Operas Leg sty = ne Descetn pies > eso Sion Tareas Sis Pantng Open Ieee Type cred Mera Type ‘eplcaton Ful Sat Prot Al Tome statue DENSI rebate pon aco ‘cs Astro Posing Peotnct Pale Fat ol Apctn Oy Deft or conseten ("Escudo Late Charges Calton ‘low Oappoaton fis Reeavne ToaooDERD Fomst Pega ane Ung is Recsale ono zabCODONO erie ils Reese 0 245 camD00 briorascmo00 Laccwre Osecgton | ipssupport oracle comlepmasifacesiDocumertDisplay? adi ct-stto-advalmete_ 4028id=1401636.1ert820:5 Document 14016364 Please take note of the following: 1, When you pick the value in the field Class = Bills Receivable, the Bills Receivable tab will become enabled, 2. The Creation sign is disabled, you can only create positive sign BRs 3. When you indicate Printing Option = Print, remember to provide a Format program name 4. The checkboxes Signed and Issued by Drawee determine type of BR created : + when neither are checked, you are defining an Unsigned BR type + when Signed is checked, you are defining a Signed BR type * when Issued by Drawee is checked, you are defining a Drawee Issued BR type c. Receivable Activities If you intend to Factor BRs with Recourse, then you should set up a Receivable Activity for Short Term Debt. ity: Receivables Manager Navigation: Setup > Receipts > Receivable Activities Ensure that you pick Type = Short Term Debt le. d. Receipt Classes The BR feature leverages Receipt Classes for both the creation of a BR and its Remittance. You need to define receipt classes for both. Responsibility: Receivables Manager Navigation: Setup > Receipts > Receipt Classes 1, BR creation (Creation Method = Bills Receivable) This receipt class is required if you intend to create BRs by exchanging transactions in the Transaction workbench, or automatically using the Bills Receivable Transaction Batch form. This receipt class is used in: © the Payment Details section in the transaction workbench © the customer form to default a Payment Method at the site level When creating BRs using the batch method, the information defined in the Bills Receivable tab, such as the Grouping rule, Derive maturity date, transaction type and payment method control how multiple transactions can be bundled into one BR When you pick Creation Method = ills Receivable, the Bills Receivable tab is enabled. ip:support oracle. com/epmosifacesiDocumerDisplay?_adl t-stlo-advalmeBe_ 4028id=1401636.1ert820:5 Document 14016364 Receipt Class Name [Unsigned Bills Recenable Notes Recenable Creation Meihad Bills Recelvablo =] Require Coctimation Remittance Method (No Remittanco > Clearance Method |Dirctly . Os ii Receipt Method) Teme Plinted Name Linsigned BR Effectice Dates. (aiAN-A00, : (Ol Honus /Ritha) | Aacniic TERROR Sic Rsciabe rian © inbentTaneacion Number Grouping Rule [Dne perPayment Scher Dative Maturty Date. [Earliest Lead Days BA Traneaction Type (Unsigned ER Minimum Amount Payment Method Bile Recovabl avin Amour The following explains the fields within the Receipt Class section of the form: a. Remittance Method The form will default value in Remittance Method = No Remittance, you cannot change this value. b. Clearance Method The form will default value in Clearance Method = Directly, you cannot change this value. c. Notes Receivable and Requires Confirmation Leave these unchecked. The following explains the fields within the Receipt Method section of the form in the Bills Receivable tat a. Inherit Transaction Number This flag only applies when there is a one-to-one relationship between the exchanged transaction and the BR. In which case, the BR is created using the same number as the transaction that was exchanged. b. Grouping Rule This defines how you would like the process to group transactions into BRs: + One per Customer: Group all transactions for a single customer into one bill receivable, * One per Customer Due Date: Group all transactions for a single customer that have the same payment schedule due date into one bill receivable. = One per Invoice: Group all payment schedules for a single transaction into one bill receivable. = One per Payment Schedule: Create a separate bill receivable for each transaction payment schedule (no grouping). = One per Site: Group all transactions for a single customer address into one bill receivable. ps:tsupport rece comiepmesiaces!DocumentDisplay?_ad.ct-staleaOvalmeBe,AT2Bid= 14016361ert820:5 Document 14016364 = One per Site Due Date: Group all transactions for a single customer address that have the same payment schedule due date into one bill receivable. . Derive Maturity Date If multiple transactions are exchanged into a BR, indicate whether the BR should use the Earliest or Latest due date of all transactions exchanged. d. Transaction Type Enter the default BR transaction type to use, e. Payment Method This field defaults to Bills Receivable and cannot be changed. f. Lead Days Indicate the number of days prior to the due date, that a transaction can be exchanged into aBR. 9. Minimum Amount Enter the minimum amount that should be considered to create a BR. h. Maximum Amount Enter a value to cap the amount of transactions to be exchanged into a BR. Setting up a value here ensures that none of the BRs created automatically exceed this amount. 2. BR remittance (Creation Method = Bills Receivable Remittance) This Receipt Class is used to remit a BR for payment. This receipt class is used in: © the BR Remittance form in the Receipt Class/Method fields. When you pick Creation Method = Bills Receivable Remittance, the Bills Receivable Remittance tab is enabled. Receiot Class Nave SEAGER Notes Recetable —— creation vethad Bills Recolvablo Remittance | [- Roouita Cormstion Remittance Metnad |Stancard x Clearance Method |Dirctly * yi Receist Method Name [BF Stancard Romittance Printed Name ER Standatd Roritarcs Efectve Ostes [1JAN 1998 im fail Netting| | Aatematis ile Recon I Detit Memos Inhatt Receipt Numbers Receipts innent Transaction Numbers Number of Receipts Rule. [Oe per Inovce Bank Accounts) The following explains the fields within the Receipt Class section of the form: a. Remittance Method ip:support oracle. com/epmosifaces;DocumerDisplay?_adl t-stlo-advalme8e_ 4028id=401636.1site201s Document 14016364 + Standard for standard bills receivable = Factoring for factored bills receivable with or without recourse + Standard and Factoring to allow bot standard and factored remittance for this method b. Clearance Method = Automatic Clearing, If you plan to clear bills receivable receipts automatically using the Automatic Clearing program = Matching, If you plan to clear receipts by cash management reconciliation, choose By Matching. c. Notes Receivable and Requires Confirmation Leave these unchecked, The following explains the fields within the Receipt Method section of the form in the Bills Receivable Remittance tab a. Debit Memos Inherit Receipt Numbers If you create a debit memo receipt reversal for a receipt applied to a BR remitted with this receipt method, and you want the debit memo to inherit the receipt number, check this, box, . Receipts Inherit Transaction Number If you want receipts created with this receipt method to inherit the BR number, check this box, - Number of Receipts Rule This defaults to One per Invoice, you cannot change this value Bank Accounts button, invokes the Bank Account form You can enter the GL accounts associated to this bank account ‘Operating Unt Bank Name ‘Aceount Name inimurs Receist Amourt Clearing Days: Fectve Dates ‘Vision Operations Bank of America Branch Name [Now York i204 Canney {USD Risk Elimination Days | 2 1 Dende Bank fmm f weimay 11 Gils Receirable Fommsting Prosrans Receipt Confirmation | Remitance Featuring | Shon Term Deke | Bank Charges Unepries Receits @-ODE-ao000000 Uniciontified Receits: I a Dn Account Recerts (7-00 F2¢0MnOO0 Unearred Diseaurte Esrned Discounts Cho ivestgatine Description Oeations No Depart ent-CasteNo Sub Accourt-No Produit In the Bills Receivable tab, if the method is for Standard Remittance, you can enter: a. Collection days Minimum number of days that the remittance bank uses to collect funds. ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 m2.site201s Document 14016364 b. Remitted Bills Receivable and Factored Bills Receivable Enter the GL Accounts you want to use. Operating Unit Bank Name Branch Name. [lew Yor ‘Aecount Name Cuneney JED Minimum Receipt Amount isk Eliminstion Days | clean Coy # aide Bank Efecne Ones CO [Rey I placer: EERIE ramating rogers Cotecton Days Remines Bile Recowebe 0 tl 1245-0000. 090 Foul Ble Rocanable (-SC0-1245 000400 In the Formatting Programs tab, you can enter the Print Programs to use for Remittance and Factoring. Operating Unk ison Osean Bank name Bene America Branch Name {ew York Account ame Bot206 Curerey {050 (eminem: Fal Eininien ays [ Chang Days * Diese Boni recive Dates [11 JANDO0 Spiny IL Choris acini - Remittance Print Fectoring Print [Sparish Remittance e. Batch Source If you intend to create BRs in batch mode, then you need to define a Batch Source to be used as the default batch by the BR batch creation process. Responsibility: Receivables Manager Navigation: Setup > Transactions > Sources The following explains the various fields/values in the form: ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1ert820:5 Document 14016364 Operating Unt Legal Entity Name [ER Manuel imbeting Type [Manual > tomer Information) | Accounting Information > Description [BR Manual Numberirg- Drawee Issued Active Effective Dates O1-JAN-2000 Automatic Batch Numbering Last Number 599. C Automatic Transaction Numbering Last Number [Copy Document Number to Transaction Number Allow Duplicate Transaction Numbers [Copy Transaction Information Flextield to Credt Memo D Generate Line Level Balances Receipt Handling for Credits z Reference Field Default Value interface _heatler_attiibutet —— Standaid Transaction Type (Drawoo lesued BR Credit Memo Batch Source I ] 1. Type For Bills Receivable batches, use the value Manual 2, Automatic Batch Numbering Check this box so that automatically created BR Batches use a system generated sequence number 3, Automatic Transaction Numbering For bills receivable transaction batch sources, you must use the Automatic Transaction Numbering box and Last Number field to number bills receivable generated automatically. If you are using a bills receivable creation receipt method that has Inherit Transaction Number set to Yes, the bill receivable number inherits the transaction number when there is a one-to-one relationship between the exchanged transaction, but uses Automatic Transaction Numbering when more than one transaction is assigned to a bill. 4, Standard Transaction Type Provide the BR transaction type that will be used as a default when creating BRs using this batch. f, Customer For customers you intend to transact BRs with, you need to create a site with Drawee purpose. The analogy for a drawee site for a BR, would be a bill-to site for an invoice. Any BR created has to be associated to a drawee site. Responsibility: Receivables Manager Navigation: Customers > Customers ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1site201s Document 14016364 secubesopien Genera Tene ar) Ste utals uses Purposes Commusatien | rsymet Oetats| Profle rofl Ammuts | tate args jee jm con (rinoryoetat Ramone fukro Sterne (0S) oe 9 reves Sat og o i aoa @ ‘i Antes Rew In addition, if you want to have a receipt method default for transactions of this customer's site, then you should also associate a BR Receipt method in the Payment Details tab. ‘You would use the Receipt Method with Creation Method = Bills Receivable from step 3.d. above. rue er curt Deaepln_ nara Technlge [re 7) ss 7 Re da Gur Dk 129150 Sorbonne RANCE iret rit il Ano tae as (nt ae |] snocopt Methods Pemary Sart oute ndoate ake (neged vase cow Qe —— 2 ene |S a a Options Profile Name Default Value User Value ‘AR. Bills Receivable Batch Source BR Automatic Numbering | 2 ‘AR: Factor / Endorse Bills Receive Yes [ [ [ _- Responsibility: Receivables Manager Navigation: Control > Profile Options 1. AR: TI lls Receivable Batch Source profile option defines a default batch source for the Bills Receivable Batch process to use. Query for Profile Name = AR: Bills Receivable Batch Source Indicate the Batch Source you want to use as default, this would be a batch you defined in step tpstsupport race comlepmositces;Documertisplay?a.ct-saeradvetmBe_AODBié= 4016361 soeert820:5 Document 14016364 3.e. above 2. AR: Factor / Endorse Bills Receivables without Recourse This profile option determines whether you can factor or endorse bills receivable remittances without recourse. Query for Profile Name = AR: Factor / Endorse Bills Receivables without Recourse Indicate Yes or No. 3, Sequential Numbering This profile option defines whether you have document sequencing enabled. When you create Bills Receivable via Batch method, or Bills Receivable remittance, This profile option has to be set to "Always Used!" or "Partially Used". h. Funds Capture setup In R12, Remittances are closely tied to Oracle Payments. Which means that in order to Approve a remittance batch, you have to do the minimum set-up requirements in Oracle Payments to define a Dummy Authorization and Dummy Funds Capture. For more information, please review Note 736931,1, Bills Receivable Remittance Reference: How to Setup Dummy Funds Capture/Authorization for Bills Receivable 4. Process Flow The following flowchart demonstrates the process flow for Bills Receivable within Oracle Receivables. Processing ~ done >| _ Create Poe vonn Start Transactions creation Direct Creation ‘Automatic in Transaction Manual Creation Creation by Creation of in BR Workbench | an Workbench Batching e 5 - Pay Receipt Remit? No using Receipt . workbench Remittance ar: of aBR ¥ Standard Factored with Factored without Remittance Recourse Recourse Kes Portfolio . Manager Maturity and Run Mat &Risk | “More > Risk Elimination Actions ? - ~~ Elimination No End ) ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 seert820:5 Document 14016364 The basic process is as follows: Start off with the creation of regular transactions, like an Invoice, Credit memo or Debit memo (Once the transaction is complete, it can then be exchanged into a BR via 3 methods: © Directly in the Transactions workbench © Manually using the BR workbench © Automatically, via BR Batch creation 3, Once a BR is complete, it can be paid, via the following methods: © via a receipt applied in the Receipt workbench, in the same way you would apply a receipt to a regular invoice © BR Remittance as Standard, Factored with Recourse or Factored without Recourse 4, Upon Maturity, run the Maturity and Risk Elimination process to finalize payment on remitted BRs and close out the BR as paid 5, Any issues encountered by a BR, e.g. being unpaid, recalled, protested are handled by the Portfolio Manager 5. Creating a Bills Receivable The process of creating a Bills Receivable from a regular transaction is also called an Exchange. A BR is created as a replacement for an existing debit or credit item. When an invoice is exchanged into a BR, the balance of the invoice amount is adjusted down via a non-postable adjustment, The balance from the invoice transfers into the BR, When the BR is completed, accounting transfers amounts from the original invoice's Receivable account to BR's Receivable account There are 3 methods of creating a BR: a. Directly, via the Transactions workbench This BR creation method will exchange a transaction into a BR in real-time/on-line mode. Receivables Manager Navigation: Transactions > Transactions Create an invoice, taking note of the following: + Use a customer / site that has a Drawee purpose (see step 3,f above) + In the Receipt method field, use a Receipt method that has Creation Method = Bills Receivable (see step 3.d.1 above) ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 vaert820:5 ipsssupport oracle. comlepmasifacesiDocumertDisplay? adi ct-stto-advalmete_ 4028id=1401636.1 Document 4016961 face oe po ae aa ne 8 Haber | Be a GLowe SPIAW2012 Tae 000 ‘elaee [hmcice > Cumeney [USO Freight (100 Type [rnc omen hen 102 ‘chaes 00 soc | en 6 Eee ing Gam co [vinnie Ge ronibaeas Senne secnveosivm omen Ona ERE pare eee Sie he Fant) [ann | [Sa oa) Ea Once the invoice is complete you can use the toolbar menu: Actions > Exchange menu Source Number Class Type Reference Legal Entity =a indow lp Agjust Applications Copy To Credit Installments Apply Deposit Credit Installments View VAT Invoices Electronic invoice attibutes Visioi Electronic invaice Lines Atinutes If the transaction is successfully exchanged, you will get a pop-up window with the BR number details. ix] Transaction was exchanged for Bills Receivable 1406, Note: + Credit memos cannot be exchanged using this method. 1902site201s Document 14016364 + Debit memos with payment term = IMMEDIATE cannot be exchanged using this method. + You cannot create partial transaction exchanges using this method. + This method does a one-to-one exchange from transaction to BR, you cannot group multiple transactions into one BR using this method. + Even if the Invoice's due date is still in the future, you can already exchange it. + You need to associate a BR receipt method to the transaction. b. Manually, using the Bills Receivable Transaction form This method will create one BR manually. Responsibility: Receivables Manager Navigation: Bills Receivable > Transactions Source -Numering | Type Numer | Maturty Dete [20 JAN012 Amount GLDate ANAND Complete Curenoy Issue Date Document Number Status iy More |Siank Accounts Notes eg fae Print Option Goat Frint Location Clssued by Drawee cone Remitones Pach To pick the transaction you want to exchange into a BR, click on either the Assignments or Quick Assign button. ‘+ If you pick the Assignments button you are presented with a form that looks similar to the Receipt Application form. Here you can pick from a list of transactions, which you want to exchange into a BR ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 wesite201s Document 14016364 Dis Nan Garon! Techies nour USD Dense Nanay 20? ‘esined TurpayriD T3357 nsssged Lacaian Sertenne OPS) ‘Asignmons a i) lee ‘+ If you pick the Quick Assign button, you are presented with a form that looks similar to the Find ‘transaction form, you can specify filters to limit which transactions you want to exchange into a BR, You can also indicate what types of transactions you would like to include. i i aa Customer Name [General Technologies Number (1007 Location TE Payment Mahe [ Type | Dun Dates | . bites [1] : Numbers a Balances : Primety Ser Onteria. Secondary Sor Criteria cordins © Desconeing @ Agcencing Irolude fvoicgs ¥ Deposits Mm Dabit Memes chargebacks ¥ Cres Marrs Disputed Transactions [Bile Beceiable ( Assign @ Note: ipsssupport oracle. comlepmasifacesiDocumertDisplay? adi ct-stto-advalmete_ 4028id=1401636.1 1802anos Document 14016361 + Regardless of the receipt method associated to the transaction, they will be available for exchange to BR in this method. + You can change the value in the Amount Assigned field of each exchanged transaction to exchange partial amounts of the transaction into a BR. + You can exchange one or multiple transactions into a BR using this method. c. Automatically, using Bills Receivable Transaction Batches Responsibility: Receivables Manager Navigation: Bills Receivable > Transaction Batches Selection Crheria Operating Unt Source Batch Name | Batch Date AOLANZTI Lato GOANZO2 Batch Statue | Bis Recevadle lesue Date BOAN2012 Maturity Dato Curroney Comments Special nstwctions Creation Raguast 12 eOi When creating a BR transaction batch, you use the selection criteria tab to define filtering conditions for transactions you want to be considered for exchange into the BR. ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 1902site201s Document 14016364 Bite Receibe Bath) (STENENS Dates Duo [ Transaction [ Transactions Type Receipt Methad Unsigned BR-Vision Operat IGA Numbers — vss catagory Name Genera! Technolgies Nurber f Location (San Jos= (OFS) Suma When you click on submit, you are presented with the options : + Draft: create BR batch is DRAFT mode, which allows you to review the BRs before they are finalized. When a batch is created in draft, there is no way to query that batch and finalize it, the only way to create a batch permanently is to run Create + Create: create BR batch in Final mode Print individual BRs within the batch.Print will only pick up BRs that require acceptance, and whose transaction type defined a transmission format When you pick Create or Draft, a concurrent process is kicked off: Bills Receivable Batch Creation Concurrent Program. This processes transactions viable for exchange and creates the BR. If BRs are created, another process called Automatic Transactions Batch Report, will be spawned, When this finishes, you can view the output to see details of the BRs were created, Following is a sample output generated by the Automatic Transactions Batch Report. The top shows. details of the Receipt Method used and the settings defined for that method. ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 wm.ert820:5 Document 14016364 Note: + For the Batch process to pick up any transactions for exchange, the transactions should be associated to a Receipt Method having Creation Method = Bills Receivable (see step 3.d.1 above) + Invoices, Credit Memos and Debit Memos can be exchanged into BRs using this method. For more information on this BR creation method, please review Note 814055.1, Creating Bills Receivable Via Transaction Batches - Detailed Information 6. Impact of Exchanging a Transaction into a BR Impact on. han ion + Ifthe BR Receipt Method you used is associated to a BR transaction type that does not need to be Signed (i.e. does not require acceptance), then a review of the exchanged transaction will show that i's balance is down to zero, The invoice was closed when it was exchanged into a BR. + If the BR Receipt Method you used is associated to a BR transaction type that has the Signed checkbox checked (ie, requires acceptance), then the exchanged transaction balance will not change until the BR is accepte via the Portfolio Management form. + The balance of the transaction is drawn down via a non-postable adjustment. If the transaction is only partially exchanged, then the transaction will remain open for the remaining balance. If the transaction is fully exchanged, the transaction will be closed and balance will be zero. Impact on the created BR: ‘+ the BR is created with RA_CUSTOMER_TRX_LINES_ALL LINE_TYP! woice. ‘+ BRs do not have Tax lines. the BR was created using a receipt method associated to a BR transaction type that has Signed checkbox checked, the BR will have stattus = PENDING_ACCEPTANCE. After the BR is accepted, that status changes to PENDING_REMITTANCE. «if the BR was created using a receipt method associated to a BR transaction type that has Signed checkbox unchecked, the BR will have status = PENDING_REMITTANCE. LINE’ corresponding to each exchanged ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 sweanos Document 1016384 7. Collecting Payment for a BR Once the BR is completed, the next step is to collect payment. You can apply a regular receipt to a BR as payment, or ‘you can remit it to the bank for collection. This is where the BR transforms from a transaction into a receipt. There are 2 remittance methods: a. Standard Remittance You submit the remittance to a bank and they manage the collection process. On maturity date, the bank collects the full amount from your customer's account and transfers funds to your account. For this type of remittance, you bear the financial risk if your customer defaults, ‘The BR remains status = REMITTED until you run the Maturity and Risk elimination program. b, Factored Remittance Using factored remittance, you can endorse the BR to your bank as collateral in return for cash advances. There are 2 types of factored remittances: + With Recourse The bank loans you the payment for the BR amount, However, instead of applying the funds to the BR, itis applied to the Receivable Activity "Short-Term Debt’, The BR stays in status = REMITTED until you run the Maturity and Risk elimination program. If the customer fails to pay at maturity, you owe the bank the loaned funds. If your customer makes the payment, the funds go to the bank instead of to you, as the bank already advanced the payment to you. + Without Recourse The bank buys the BR from you and assumes the risk for your customer's payment. Once the BR is remitted as “factored without recourse,” the funds are applied directly to the BR, and the BR status = CLOSED. To remit a BR: Respon: Receivables Manager Navigation: Bills Receivable > Remittances Enter the Remittance Method and Receipt Class/Method you want to use for the Remittance. The value you enter in Receipt Class/Method should be associated to a method that has Creation Method = Bills Receivable Remittance (see step 3..2. above) ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 192site2015 Document 14016364 Batch Typo | Operating Unit [Vision Operations Batch Neme [ cureney (050) Dates Remittance [SIJAN2012 Remittance Method |Standaid BL StvaN2012 Receipt Class Creation Method = Bills Recenable ——PRecelpt Method SEEMS) [= Include Printad Bills Receweble Remitiance Geass! Cwith Recourss Romittanco Bank | Branch Account Name | ‘Account Number Print Program cureney Deposit Number Comments Count Procose Status Acnount Request ID tL to Create To pick BRs to remit: Click on "Auto Create" to select all BRs el BRs to be remitted, le for remittance, or "Manual Create" to select the ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 isesri82015 Document 14016364 Yaliten Remittance Bath (elon Operation Remitance Amount e200 Conf Request ID w (a| Select ER Number) Matuity Type ‘Amount| Remittence fi 1022) 1-1AN08 Drawee lesued BR fon.00 Bank ofAr = ° 1946 16-FEE10 Unsigned BR 600.00 ’ {02600 25-FEB-I2 \ve Signed 121.00 4 ( Cancel [Actions (Once you've selected the BRs to remit, click on the Actions button and check the Actions you wish to perform on the Remittance batch. Create Cancel Approve (Format [Print Report C Print Bills + Create: Create the remittance batch, this will tag the chosen BRs as ‘reserved! for remittance so that they thpeupportoracle.comlepmasfaces;DocumentDisplay?_adict-stala=abvalmee_ 4028id="401695.1 reeanos Document 1016384 cannot be remitted through another batch ‘+ Approve: the batch is approved and the status of the BRs are set to REMITTED ‘+ Format: this will produce a file containing information about the remitted Receipts that you can submit to your bank for processing CSB formats ‘+ Print Report: this will print a report summarizing the details of the BRs remitted ‘+ Print Bills: this will print individual documents per BR similar to an invoice print Depending on the actions you pick, concurrent requests will be submitted in the background, examples are: ‘+ Bills Receivable Remittance concurrent program ‘+ Spanish Bills Receivable Format Report + Bills Receivable Format Report Program ‘After the process completes, the BR Remittance batch will show Status = Completed Approval. Selection Criteria Batch Type [Bille Recowable Remittance Operating Unit Batch Name [1296 Gureney [UED Dates Remitance [S1JAN-2012 Remittance Method | Stenieré : 6 BIAN2012 Recelnt Class BR Standard Remttance Receipt Method BR Standard Remittance include Printed Eille Receivable Media Referance With Recourse Remittance Bank (Bank of Ametica Branch [New York Account Name [BotA 24 Aceeunt Number | 10271-176: Print Program Currency USD Deposit Number Comments Count [= Pincess Status [Completee Apprma Amount Request ID [662787 th Cancel Maintain i 8, Maturity and Risk Elimination At this point, we have created the BR and remitted it to the bank. If the BR was remitted using Factored without recourse, then the process is already complete, and the BR is closed/paid. This is because when a bank 'buys' from you a BR using factored without recourse, they already gave you the money in exchange for the BR. The money is now owed to them by your debtor. But, ifthe remittance was done using Standard, or Factored with Recourse, then at this point the BRs are still in REMITTED status. To move them into the next status, you need to run the Maturity and Risk Elimination process. Use the Bills Receivable Maturity and Risk program to ‘+ create and apply receipts for standard remitted BRs ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 sesite201s Document 14016364 ‘+ apply receipts and eliminate risk on BRs factored with recourse Respon: Navigation: ity: Receivables Manager Bills Receivable > Maturity and Risk Programs Ip tie eset Name Operating Unit Parameters Language Effectivo Date 21-JAN-2012 At these Times. GL Date Fron Run the Job GL Date To Include Erdorsed Yes Yes Upon Completion. Include Factored Include Remitted Maturity Data From Layout Notify Print ta Maturity Date To Transaction Type (Unsigned BR Help (C) Caneel} (Clear) (Help ) This process does the following: + For STANDARD remitted BRs: this process creates the receipt, applies it to the BR, then closes the BR. + For Factored with Recourse BRs: (This are the BRs for which @ Short-Term Debt was created). When risk is eliminated, the receipt is unapplied from Short-term-debt and applied to the BR instead, then BR status is set to closed. 9. Portfolio Management woices, there are a lot more actions that can be performed on a Bills Receivable, these actions are available in the Portfolio Management window. ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 asesit82015 Document 14016364 Enea ea Transaction Number Dpersting Unit Transaction Status Matur Vision Operations Standard Reritted 2a.FE*! ‘ I sr C aecopt ¢ Recall ( Gliminate Risk) ( Hold (Caneel (Urea (es ( History The buttons at the bottom of the form are enabled/disabled depending on what actions are available to perform against the BR. Clicking on History button displays information on the Activities and life cycle of the BR, ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 arseer1820:5 Bo Document 14016364 Original Amount Receipts Endorsements Exchanges: 121.00 fy o Oo Activities Number Gass Date Currency Amount GL Date Details Life Cycle [tenaara Renitea Event Comments Selected for Remittance ‘Accepted SIAN (Completes B-JAN2012 incomplete SD JAN 2012 : The Oracle Receivable User's Guide in the sections : Bills Receivable Portfolio Management Window Field Restrictions and Updating Bills Receivable, provides a matrix of what fields you can change and what actions can be performed on a BR depending on what its current status is. ‘Some functions available in the Portfolio window are duplicated from functions that you can also perform in the BR workbench, Accept : When a BR type is one that requires Acceptance, i.e. it has to be ‘Signed’ by the debtor, you can fulfill that acceptance in the portfolio window or by querying the BR in BR transactions form and clicking on Accept button, Cancel : When you cancel a BR, you are basically undoing the process of exchanging a transaction into a BR. You close the BR and re-open the original transaction. You can cancel a BR if the status is Pending Acceptance, Pending Remittance, or Unpaid. If the bill s Pending Acceptance, canceling the bill releases the exchanged transactions and has no accounting effect. If the bill is Pending Remittance or Unpaid, Receivables unassigns the exchanged transactions and creates reverse accounting entries. Risk Eliminate : Is the process that is done in batch-mode when running the BR Maturity and Risk Elimination program, this same process can be done on a per BR basis thru the Portfolio manager. You can eliminate risk on matured, factored, or endorsed bills receivable. When you eliminate risk on a factored bill receivable, Receivables reverses the short term debt entry and closes the bill. When you eliminate risk on an endorsed bill receivable, Receivables approves the pending endorsement adjustment and closes the bill Endorse : You can endorse a BR much in the same way you do with a check, you can endorse with or without recourse. The endorsement creates an adjustment to close out the BR. Additional processing is required on the AP side to record the use of a BR as payment to your suppliers Exchange : you can exchange an unpaid BR into another BR Hold : This marks the BR to be excluded from remittance Release : This is the opposite action of Hold Protest : This is ike putting an invoice under dispute, there is no accounting impact Recall : You can recall a BR that has been remitted, this reverses the receipt created if there is one. You can ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 aseert820: 10. 6 Document 14016364 also recall an endorsed BR, this reverses the endorsement adjustments created and re-opens the BR. Recalling 2 BR resets the status to Pending Remittance or Unpaid. When you recall a BR that is Factored with Recourse, Receivables reverses the receipt(s) created when the bill was factored. When you recall a bill that is Endorsed with Recourse, Receivables creates a reversing endorsement adjustment. + Re-establish Risk : If BR was factored with recourse, receipt created is unapplied and re-applied to Short- term Debt. You can reestablish risk on a bill that was previously eliminated from risk. When you reestablish risk on a Closed BR that was factored with recourse, Receivables unapplies the receipt that was created when the bill was factored and applies the receipt to short term debt, The status of the bill is updated to Matured Pending Risk Elimination, You need to run the Maturity And Risk Program to change the status of the bill from Factored to Matured Pending Risk Elimination. When you establish risk on a Closed BR that was endorsed with recourse, Receivables reverses the endorsement adjustment and creates an endorsement adjustment pending risk elimination. The status of the bill is updated to Endorsed. + Restate : From Unpaid back to Pending Remittance + Unpaid : If during maturity a BR is stil not paid, it should be marked as UNPAID Printing a BR Bills Receivable transactions cannot be printed using the "Invoice Print” concurrent program. Instead, the Bills Receivable Format Report Program is used for printing bills receivable transactions, Before printing a BR, check the following set-up: a, Transaction Type Review the Printing Option value defined for the BR transaction type (see Step 3.b above) - this is the default value used for this BR transaction type, however you can also change it in the BR transaction form when you are creating the BR.Set it to Print. b. Assign a format program. Review the Format Program name value defined for the transaction type (see Step 3.b. above) . You can print the BR in the following ways: © Individually: You can print an individual bill receivable from the Bills Receivable window by setting the Print Option to Print. © Bills Receivable Batch: You can print bills receivable when you create a bills receivable batch by choosing the Print Bill button in the Bills Receivable Transaction Batches window. ©. Bills Receivable Remittance Batch: You can print bills receivable (other than promissory notes) that do not require drawee acceptance or were not previously printed, when you run a Bills Receivable Remittance Batch, by checking the Print Bills box in the Remittance Batch Actions window. ©. Bills Receivable Format Report Program: You can run the Bills Receivable Format Report program to print a bills receivable batch or Bills Receivable Remittance batch. There are currently 3 formats available: Spanish, Italian and French. 14. Summary of BR process flow ‘The following summarizes the process flow for Bills Receivable ‘Action Method Additional Information Create BR via Transactions form Using Actions - + Site associated with the transaction being exchanged must have a exchange Drawee purpose ‘+ Payment Details must use a Receipt Class/Method with Creation method = Bills Receivable ‘+ Credit Memos cannot be exchanged with this method ‘+ No partial exchange with this method ip:support oracle. comepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id= 401636.1 eaeert820:5 Document 14016364 ‘One transaction becomes one BR Via Bills Receivable form BR must be created against a site with a Drawee purpose All open transactions can be exchanged regardless of payment method and site details Partial exchange Is allowed Debit and Credit transactions can be exchanged Single or Multiple transactions can become one BR via Bills Receivable Transaction Batches form BR batch source must be defined via selection criteria you can pick and choose which transactions to exchange into a BR Only transactions associated to a BR Receipt Method can be exchanged Depending on the receipt method's grouping rule, one or many transactions can become one BR Remit BR | Standard Remittance BR remains in Remitted status until you run Maturity and Risk Elimination process No funds are received until the BR matures You assume risk if the debtor fails to pay Factored with Recourse BR remains in Remitted status until you run Maturity and Risk Elimination process ‘The bank loans you the funds for the BR in advance, but you still assume the risk if the debtor fails to pay The loan amount is not applied directly to the BR but rather to Short- Term debt Factored without Recourse The bank buys the BR from you, and assumes the risk if the debtor fails to pay. ‘The Receipt is applied directly to the BR and the BR is closed. Maturity and Risk For Standard Remitted BRs, a receipt is created and applied to the BR, Elimination then the BR is closed. For Factored with Recourse, the receipt created earlier which was applied to Short-Term debt is now applied to the BR, then the BR is closed. Portfolio Management| * Accept Perform actions against the BR to better reflect its true status. Actions + Cancel ‘are enabled depending on what can be done on the BR depending on + Risk Eliminate its current status. + Endorse + Exchange + Hold + Release + Protest + Recall + Re-establish ip:support oracle comepmosifacesiDocumerDisplay?_adl t-stle-advalmeBe_ 4028id=401636.1 iseanz0rs Document 14016361 Risk + Restate + Unpaid 12, Technical Reference The following provides information on the list of programs used by the Bills Receivable feature. Please note that though ‘some packages are called APIs, none of the following can be called publicly, These APIs were coded to be called from within the BR feature as used within the Oracle Receivable application Filename PL/SQL Package Name Description * is S for package specification and B for package body ARBRACM* pls ‘ARP_BILLS_RECEIVABLE_MAIN Derives accounting for Transaction History rows ‘ARBRCOM* pls, ‘AR_BILLS_MAIN Creates PL/SQL table of form fields and BR status ‘ARBRCRE*.pls ‘AR_BILLS_CREATION_PUB Creates BR header and assignments ‘ARBRCRL*.pls ‘AR_BILLS_CREATION_LIB_PVT Data Defaulting ‘ARBRCRV*.pls ‘AR_BILLS_CREATION_VAL_PVT Data validation ARBRFMT* pls AR_BR_FORMAT_WRAPPER PKG —_| Wrapper for BR format program ARBRIMR*.pis AR_BR_REMIT_IMPORT_API_PUB _ Import BR Remittance ‘ARBRMAL pls AR_BILLS_MAINTAIN_PUB BR Maintenance APIS ARBRMAL*.pls AR_BILLS_MAINTAIN_LIB_PVT BR Maintenance Library ARBRMAV* pls ‘AR_BILLS_MAINTAIN_VAL_PVT BR Maintenance Validation ARBRRM1*.pls. ‘AR_BR_REMIT_BATCHES Remittance Batch handlers ARBRRMA‘ pls ‘ARP_PROCESS_BR BR Remittance procedures ARBRRMP*.pls ‘AR_BR_REMIT_FUNCTION BR Remittance functions ARBRSEL* pls ARP_SELECTION_CRITERIAPKG —_ BR selection process ARBRSVE*.pls ‘AR_BILLS_MAINTAIN_STATUS PUB | BR status/action validation ARBRTES* pls ‘ARP_PROGRAM_GENERATE_BR BR generation procedures ‘ARBRUOC* pls ‘AR_BR_CANCEL_UNPAID_API_PUB | Cancel/Unpaid BR procedure ARTEBRH* pls ‘ARP_PROCESSS_BR_HEADER Entity handler for ‘AR_TRANSACTION_HISTORY ARTETRH*.pls ‘ARP_PROC_TRANSACTION_HISTORY | Entity handler for BR header ARTEAAB*.pls ‘ARP_AUTO_ACCOUNTING_BR AutoAccounting handler for BR The following lists the BR forms and libraries: Filename Description ips:tsupport oracle. comlepmosfacesiDocumentDisplay? adi ct-stalo=advatmese_ 4028id=1401636.1ert820:5 Document 14016364 ARBRHIST.pld / ARBRHIST.fmb BR History ARBRCOMM.pid / ARBRCOMM.fmb Common BR Utilities ARBRSTAM.pld / ARBRSTAM.fmb BR Stamps ARBRREMI pid / ARBRREMI.fmb BR Remittance ARBRQUIK.pld / ARBRQUIK.fmb Quick Assign form ARBRPORT. pid / ARBRPORT.fmb BR Portfolio Management ARBRCBAT pid / ARBRCBAT.fmb BR Batch ARBRASSL pld / ARBRASSI.fmb BR Assignments ARBRMAIN. pid / ARBRMAIN.fmb BR form ‘The following lists BR reports/formats: Filename —_ Description ARBRFMTLrdf Italian BR format ARBRFMTF.rdf | French BR format ARBRATBR.rdf | Automatic Transaction Batch Report ARBRFMTS.rdf | Spanish BR format ARBRSTPV.rdf | BR Stamp values ARBRRMBM.rdf | BR Remittance reprot ARBRRMLT.rdf | BR Reminder letter ARBRERRT.rdf | French Bank remittance format ARBRCSBM.rdf | CSB remittance format Note: For detailed information on the format and placement of data for the CSB58 template, please review Note 793871.1, Bills Receivable Remittance Format: Reference for Spanish Bills Receivable CSB58 Template File Format ARBRITRT rdf Italian Bank remittance format ‘The following lists the AR tables impacted by Bills Receivable: Table Name Usage RA_CUSTOMER_TRX_ALL RA_CUSTOMER_TRX_LINES_ALL BR header information. There is one record here per BR. BR line information. For each BR there may be one or many records in this table which corresponds to each transaction exchanged into the BR. AR_TRANSACTION_HISTORY_ALL AR_DISTRIBUTIONS_ALL ips:support oracle. comlepmasifacesiDocumertDisplay? adi ct-stto-advalmee_ 4028id=1401635.1 This table contains the life cycle changes of the BR. For each BR there can be many records in this table corresponding to each change in status. The GL distributions for the BR are stored in this table. Each row is linked to a row in AR_TRANSACTION_HISTORY_ALLentez0%5 Document 1016384 | AR_PAYMENT_SCHEDULES_ ALL | BR payment schedule, there is one record here per BR. | AR_RECEIVABLE_APPLICATIONS.ALL Records the applications made to the BR. Additional Information: ‘+ BRs do not have records in RA_CUST_TRX_LINE_Gl_DIST_ALL. Distributions of a BR are stored in ‘AR_DISTRIBUTIONS. ‘+ BRs store historical data in AR_TRANSACTION_HISTORY ALL, this table contains all the events in the life of a BR, only BRs have records in this table. ‘+ ABR can contain one or more exchanged transactions, For each exchanged transaction, there will be one row in RA_CUSTOMER_TRX_LINES_ALL, and the following fields will point to the exchanged transaction's IDs: © BR_REF_CUSTOMER_TRX_ID © BR_REF_PAYMENT_SCHEDULE_ID © BR_REF_ADJUSTMENT_ID BRs can be paid for directly in the Receipts workbench, BRS are included in Statements and Dunning. Rs are not processed up by Automatic receipts. BR printing is not normally required. Typically, printing a BR is only for Signed BRs, because the debtor has to see what is included in the BR, and provide his signature. +The BR feature was developed primarily for customers in Japan and Spain. ‘+ In R12, BR is no longer an *optional* feature, itis shipped as enabled, and replaces Bills of Exchange functionality in R11i. In Release 11.5, please review Note 247015.1, How To Enable The Bills Receivable Feature In AR Release 111 13. Troubleshooting and Known Issues/Patches For tips on troubleshooting BRs as well as a list of known issues/patches, please review Note 1405393.1, Bills Recelvable:Troubleshooting, Known Issues and Patches 14. Diagnostics You can view diagnostics of a Bills Receivable by using the same Transaction Diagnostic you use for Invoices. Please review the Diagnostics Catalog for R12 in Note 421245.1, E-Business Suite Diagnostics References for R12 Pick the diagnostic catalog for your release, then navigate to the diagnostics for Oracle Receivables, and pick Transaction Diagnostic. For example in R12.1.3, the Transaction Diagnostic is defined in Note 732203.1. Community Discussions Stil have questions? Use the live My Oracle Support Receivables Community window below, to search for similar discussions or start a new discussion on this subject. ip:support oracle. comlepmosifacesiDocumerDisplay? ad t-stlo-advalmeBe_ 4028id=1401636.1 ousite201s Document 14016364 All Places > My Oracle Support Community > Oracle E-Business Suite (MOSC) > Receivables - Receivables - EBS (MOSC) Overview Content People Subspaces YOUR COMMUNITIES ASK RECEIVABLES - EBS (MOSC) Spaces Type your question Find Space ASK IT ‘Type to begin your search ORACLE RECEIVABLES Welcome to the Oracle Receivables Co: The Oracle Receivables (AR) Community extemal expertise through collaboration wit Our focus here is on topics relating to the Oracle Receivables. We encourage you to questions from colleagues, sharing inform: | Feedback To provide feedback on this note, click on the Rate this document link, REFERENCES ‘NOTE:421245.1 - E-Business Suite Diagnostics References for R12, ‘NOTE:736931.1 - Bills Receivable Remittance Reference: How to setup Dummy Funds Capture/Authorization for Bills, Receivable ‘NOTE:793871.1 - Bills Receivable Remittance Format: Reference for Spanish Bills Receivable CSB58 Template File Format NOTE:814055.1 - Creating Bills Receivable Via Transaction Batches - Detailed Information Information Center: Overview of the Receipts Workbench in Oracle Receivables (AR) 11.5 and later Bills Receivable: Overview and Setup in Oracle Receivables Release 12 : Troubleshooting, Known Issues and Patches ipsssupport oracle. comlepmosifacesiDocumertDisplay? ad ct-stto-advalmete_ 4028id=1401635.1 ainert820:5 Document 14016364 NOTE:247015,1 - How To Enable The Bills Receivable Feature In AR Release 111 Didnt find what you are looking for? stale-atvalmetc_ 4028id=1401096.1 san