AR – Auto Invoice Process Setups from OM to AR Receivables

Set-ups Required

AR:

Transaction type set-up

While setting up the transaction type, allow freight and tax calculation. Otherwise if you have
freight lines in the Order, it would be rejected by the system.

Set Up>> Transaction>> Transaction Type

Invoice source:

The source name has to be specified and the type should be 'Imported'.
Make the batch and transaction numbering automatic.
Set Up>> Transaction>> Source

In the autoinvoice tab put the condition that you wish to be applied while importing the invoice.
E.g whether you wish to reject the invoice if the invoice lines are incorrect or if the transaction is
being made in the closed GL period.

In the Customer information, Accounting information and other information tabs keep all the
validations at ID level. If it is set at value level, it may create some problem stating invalid
transaction type.

Also allow sales credit by checking the box at the auto-invoice tab of the invoice source definition
screen because in general order management allows sales credit and if it is not allowed here,
while running auto-invoice process, it would trigger an error.
Set Up>> Transaction>> Source

Setting up the Flexfields:

In order to group the sales order into formation of Invoice according to the conditions required by
the business requirements, Line Transaction Flexfield need to be set up. Some points must be
considered while setting up this flexfield.
Receivables uses the Transaction Flexfield to uniquely identify each transaction and transaction
line you import through AutoInvoice. Transaction Flexfields are also used to refer to and link
transaction lines.

Keeping these in mind, while setting up the flexfield the conditions field should be made so t hat
they fulfill required condition. Eg

If we wish to prepare one invoice for a customer, for all sales order being booked on a day, we
can set up the flexfield with two fields : Customer ship-to address and date
Set Up>> Financials>> Flexfields>> Descriptive>> Segments

This results in an invoice as:

In the similar manner if the requirement is to make two invoices for two different lines in Sales
order Form, the fields should be made to check up the interface line ID as the two lines in SO
from will come as two different lines in the interface table

Grouping Rules:

Line Ordering Rules and Grouping Rules need to be defined so as to group different lines in the
Invoice. AutoInvoice uses these rules to order transaction lines when grouping the transactions it
creates into invoices, debit memos, and credit memos. You can assign a line ordering rule to each
grouping rule.

Set up>> Transaction>> Autoinvoice>> Line ordering rules

Here the lines can be ordered depending upon the requirements and in required order eg
ascending or descending. E.g. in case the invoice is being made consolidating more than one sales
order, they can be ordered in invoice based upon sales order, sales order line
To define an invoice line ordering rule:

1. Navigate to the Autoinvoice Line Ordering Rules window.

2. Enter the Name of this line ordering rule.
3. Enter a range of Effective Dates for this line ordering rule. The default start date is today's date,
but you can change it. If you do not enter an end date, this line ordering rule will be active
indefinitely.
4. Enter a Description of this line ordering rule (optional).
5. Enter the priority of the transaction attribute in the Sequence field. Enter a higher number to
specify a lower priority transaction attribute for this invoice line ordering rule.
6. Enter the Transaction Attribute to use to order your invoice lines. Receivables uses the
transaction attributes you specify to determine how AutoInvoice orders invoice lines when it
groups the transactions that it creates into invoices, debit memos, and credit memos.
7. Enter the type of this line ordering attribute. Enter either 'Ascending' or 'Descending' to
specify whether you want this transaction attribute to be ordered from least to greatest
(Ascending), or greatest to least (Descending).

Defining Grouping rule:

Define grouping rules that AutoInvoice will use to group revenue and credit transactions into
invoices, debit memos, and credit memos. Grouping rules specify attributes that must be identical
for lines to appear on the same transaction.

e.g if it is required to make more than one invoices from the same sales order, grouping rule can
be set so that it would group together the sales order lines as given in the following example.
Other than this, grouping rules can be set based on the requirement of the business.

AutoInvoice uses the following hierarchy when determining the grouping rule to use:
• Transaction batch source
• Customer site level
• Customer profile level
• System Options window
Set UP>> Transaction >> Autoinvoice>> Grouping Rules

These are the basic AR set-ups required for the auto-invoice to run successfully.

Other than that there are some points to be remembered while doing the set-ups of the Order
Management module.
Set-Ups in OM:

Transaction type:

While defining the transaction type in Order management certain points have to be kept in mind,
which would enable the system pass on the data to from OM to AR in proper manner for the
creation of invoice.
In the financial tab of the transaction type definition screen, these information need to be fill in.
• Invoice Source : In the aforementioned screen, invoice source has to be defined which would
be the default invoice source to create the invoice through the auto-invoice process. This
should be the one, which you have set-up in AR for the required process to be run.
• Invoice Type: This is the default transaction type, which would be generated from OM after
the auto-invoice process. This needs to be filled in the field called 'Receivables Transaction
Types'
• Rules: Other than the invoice source and types, invoicing and accounting rules need to be
defined if you wish the created invoice to have certain rules attached.
• Currency and Conversion type: The default currency and conversion types need to be set-
up. This is required in view of the RA_INTERFACE_LINES_ALL table, which has currency
conversion type as a 'not-null' field. If this field is not dealt with properly, there may be some
error in the invoicing process.
OM>> Set UP>> Transaction Type>> Define
Flexfield Set-up:

If you wish to transfer some additional information to be passed on to the AR module, you can
set-up these flexfields:

• Additional Header Information:

• Additional Line Pricing Information
• Additional Line Return Information
• Additional Line Attribute Information

Based on these Set-Ups the process needs to be run.