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 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Understanding “Retainage” from Techies Mind

Posted on October 30th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

This kind of business normally you will find in Project intensive companies, where retainage refers to a portion of the payment that is withheld until the completion of a project.

In that case the client doesn't pay the contractor/party the retainage until all work on the project is complete.

Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project.

There is no limit for retainage.

dgreybarrow Example

Example 1

For example, a lets you company may hire a IT contractor for a $100,000 project. The contract stipulates 10% retainage. Over the course of the project, the client pays the contractor $90,000 for the work. But 10% of the total cost, $10,000, is withheld until the completion of the project. Once the project is completed, all the final details have been wrapped up, and the client is satisfied with the results, the client will pay the contractor the retainage amount.

Example 2

There may be other case you can have this way , the contract can specify that you will retain 20 percent from all payments until 25 percent of work is complete. Therefore, whenever the contractor sends you an invoice, you retain 20 percent of each payment until the overall progress reaches 25 percent.

dgreybarrowAccounting Treatment

Retainage is recorded on the balance sheet.

When the voucher is processed, the following accounting transaction is generated:
DR) Expenditure(Expense)
CR) Voucher payable (Liability)
CR) Retainage payable (Retainage)

When the voucher is released by audit for payment, the following transaction is generated:
DR) Vouchers payable(Liability)
CR) Cash

To release the retainage after successful completion of the contract the following transaction is generated:
DR) Retainage payable (Retainage)
CR) Cash

dgreybarrow Payables retainage @Oracle R12

These are two mandatory set up required in R12 to get retainage Function.

1)Retainage Account Setup
You need to first define the retainage account for the operating unit in the GL Accounts region on the Accounting tab of the Financials Options.

Setup > Options > Financials Options> Accounting tab

Oracle Payables uses this account to record the distribution on progress invoices and subsequent retainage release invoices for funds withheld from suppliers.

2)Supplier Terms and Controls Setup
You need to do Set up for your supplier's terms and control defaults using the Suppliers page.

.

Posted in Oracle Payable | No Comments »

Quick note for Banking Details for Supplier in Release 12

Posted on October 29th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Here is the quick note for Banking Details for Supplier in Release 12, which can be assigned at the following four levels:

  1. Supplier
  2. Site
  3. Address
  4. Address-Operating Unit

New accounts can be created using existing bank and branch details or new bank/branches can also be entered.

Banking Details page to define the bank accounts used for making payments to suppliers.

You can select the name and number of the bank account from the list of values that includes all active supplier type bank accounts or you can create a new bank account. For each supplier and supplier site that has bank account assignments, you must designate a primary bank account. The primary bank account is used by Payables as a default when you pay this supplier electronically.You may override the default if necessary.

You can also do setup for bank accounts for a supplier can also be setup from iSupplier portal

Using iSupplier Portal, suppliers can access their banking information and, if given the appropriate security privilege, make changes to the details. The buyer administrator can either approve the account or set the status to Verify. You can use the Verify status while you prenote the account or perform other activities for verifying an account with your bank.

You can find more details for supplier bank here.

dgreybarrow-2 Similar Post

Posted in Oracle Diagnostics, Oracle Payable | 1 Comment »

OECD – Standard Audit File for Tax Purposes (SAF-T)@ORACLE

Posted on October 27th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

This is the another name for the VAT Audit File mostly used in Europe as per OECD.The Standard Audit File was renamed ‘Standard Audit File for Tax Purposes' ‘SAF-T' to avoid any confusion.

dgreybarrow-2 OECD :Organization for Economic Co-operation and Development

There are 30 member countries part of OECD.You can check out the details at www.oecd.org

Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France,Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden,Switzerland, Turkey, the United Kingdom and the United States. The European Commission also takes part in the work of the OECD.

Currently OECD have two documents

  • Guidance for the Standard Audit File - Tax
  • Guidance on Tax Compliance for Developers of Business And Accounting Software for Tax Purposes

dgreybarrow-2Oracle support for SAF-T

If your accounting system is running on 11i10+, then you need to apply the patch 7012852.

Standard Audit File -Tax (SAF-T)

 

This patch is part of European Localization requirement.

Once you apply this patch , system side its install the SAF-T/OECD feature.

Audit File

You can run the report for the different report levels. The report only displays the specific section of data for the report levels.

  • Payables (P): All sections except customers, sales invoices, and sales payments.
  • Receivables (R): All sections except suppliers, purchase invoices, and invoice payments.
  • General Ledger (G): Only header, general ledger and general ledger entries sections.
  • All Levels (A): All sections.

Take a note, the standard and generic SAF-T/OECD file does not address these country-specific requirements.

The audit file in R12 is not yet available.

Posted in XBRL | No Comments »

Customer Interface Vs TCA API

Posted on October 27th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

dgreybarrow Customer Interface

Customer Interface aka RACUST is a concurrent program that is responsible for the import and update of AR customer information from open interface tables to AR Customer tables. Check out the details here.

dgreybarrowTCA Application Programming Interface (API)

TCA API's are an integrated set of PL/SQL code designed in a highly modular fashion, that are easy to understand, maintain and extend.These are modular approach defaults and validates users who enter information, defaults information not provided by the user and calls the appropriate entity handler to perform the business related tasks.

Use of the TCA APIs allows you much more control of inserts and updates over the customer interface.

dgreybarrow EXCEPTION AND ERROR MESSAGES

  • Customer Interface (RACUST)
    When the customer interface executes, a report is generated. You can view the output by selecting the request and then choosing View Output. Here are details for all Error code.
  • TCA API
    The APIs provide an extensive error-handling and error-reporting mechanism whereby all errors encountered in the different phases of API execution are reported and put on the message stack. You can refer to TCA API documentation for further details.

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Posted in Oracle Receivable, Oracle TCA | No Comments »

TCA Customer setup in Oracle EBS

Posted on October 23rd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

TCA Customer setup in Oracle EBS requires these 20 set up steps :

  1. Setup AR and HZ profile options
  2. Setup Tax Location Flexfield
  3. Set up flexible addresses
  4. Create custom address styles (if required)
  5. Define Flexible Address Validation
  6. Define Customer Profile Classes (optional)
  7. Define customer lookups
  8. Enter parties and customer accounts
  9. Enter Customer Account Information
  10. Assigning Profile Classes to Customers
  11. Setup Customer General (Header) Information - Customers Field Reference
  12. Enter Customer Addresses
  13. Assign a Business Purpose to a Customer Address
  14. Enter Customer Account Contacts
  15. Enter Customer Telephone Numbers
  16. Assign Banks to Customer Accounts
  17. Assign Payment Methods
  18. Enter Marketing Information
  19. Enter Customer Telephone Numbers
  20. Creating Customer Account Relationships

Posted in Oracle TCA | No Comments »

Trading Community Architecture (TCA) 101

Posted on October 22nd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Trading Community Architecture (TCA) is a structure which was based out of R11 Customer Model designed to support complex trading relationships to cater additional need which further extended in R12 with Supplier and Bank. So, TCA is a data model that allows you to manage complex information about the parties, or customers or suppliers or bank who belong to your commercial community, including organizations, locations, and the network of hierarchical relationships among them.

dgreybarrowWhat is Trading Community Architecture (TCA)?

What is TCA, the Trading Community Architecture? Is TCA an Oracle Applications module? Is it functionality within an Oracle module? These are few common question, and there are often many answers given.

The TCA is a data model that supports the entry and management of entities that you interact with. So lets revisit the concept.

Trading Community Architecture is a Very flexible, very robust model which defines the components involve in trading within in E-business Suite.

The implementation of technology and applications to allow users to create and maintain relationships among entities

The universal data schema for customers, prospects, suppliers, distributors, resellers, consortiums, bank across all Oracle EBS applications

TCA not only allows for the tracking of relationships between the implementing organization and its trading partners, but also tracks relationships between the trading partners themselves.

You should also note, TCA is neither an Oracle Applications module nor requires separate license.

If you see TCA guide, you can find these are the key features of TCA

  • Provides a foundation for a single source for customer information.
  • Ability to represent all business entities as a “Party” (organizations, people, groups, relationships) and to handle them the same way. This approach provides flexibility to accommodate all B2B, B2C and hybrid models in the same repository.
  • Many-to-many relationships between Parties and Locations, that allows for less duplication and easier updating.
  • Capability for advanced relationship modeling between entities within the trading community. Any party can figure in any number of Party Relationships even within matrix hierarchies (relationship networks).
  • Ability to setup and maintain any number of party classifications which can be used for reporting and assignment purposes.
  • Extensible data model to enable various business data requirements.
  • In reality , three entities Drive in the TCA model , which are Party, Account, and Relationships.

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Posted in Oracle TCA | 3 Comments »

Dealing with “Addressee” on Customer Master

Posted on October 21st, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Take a note ,when you are dealing with Health care or Telecom client,there is specific requirement for maintaining addressee field, which can be used for one of the attribute for billing purpose. Though this is not a correct Field in AR context , but still you can use to cater customer need. Products like SAP have this feature in Customer Master.

So what will you do , if you are dealing with customer Migration.

dgreybarrow-2 Dealing in Migration - Couple of options

  1. Use TCA API's - this will take care of most of field that you can see in customer master screen.
  2. Use of Customer Import - The Field is not getting populated by interface table cum import program.
  3. Use Customer import + TCA API's to update customer site : This you can achieve.

Option 3 is bit realistic and safer if you are dealing with thousands of customer Migration.

dgreybarrow-2 The Field called "Addressee" on Customer Address Form

Addressee field is potentially used to assist with the interface with iStore. Receivable in real sense does not have any significance unless you are customizing your statement of account(SOA) or sales invoice format.

cUSTOMER ADDRESSES1

dgreybarrow-2How it works

Addressee is used when an order is made by a customer and is shipped somewhere else.

It is just like you purchase a book and have it shipped to your friend . Your friend becomes the addressee at the address that the book is sent to.

Therefore you can use ADDRESSEE column to store an alternative displayed name which can be used in place of the party name on mailing labels or other external documents.

The usage of this column may vary in different applications within Oracle EBS.

dgreybarrow-2Oracle Shipping

Oracle Shipping will display the column on mailing label for ship to customer when the customer account owning party is a party of party type PERSON.

dgreybarrow-2Oracle OM

Order Management may display the column in a sales order along with the customer name (from party name), ship to org name (from customer site use simplifying the process of creating the on-time ship to address.

dgreybarrow-2Oracle CRM Product

CRM iStore will use the column to display the person name in a personal address book since CRM consider that it is a huge overhead to create a party record for each person in a personal address book.

dgreybarrow-2Technical walk through

TCA table HZ_PARTY_SITES parking the column data in ADDRESSEE field.

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Posted in Oracle Receivable | 1 Comment »

What are the options for XBRL reporting?

Posted on October 21st, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

There are mainly three options you can think for XBRL reporting

  • External - typically this is outsource to third party
    • Expensive, restricted timelines, additional review processes
    • Outsourcer is still responsible for accuracy of filing and related compliance
  • Internal - this can be Bolt-on XBRL tool at the end of the reporting process
    • Addresses XBRL tagging and filing at the end of the reporting process
    • Possible lower cost but can be inefficient and time consuming due to disparate systems
  • Internal - this can be your Integrated XBRL reporting
    • Integrates XBRL into an organizationfs financial close & reporting process
    • Enhance existing filing process to seamlessly integrate XBRL in a unified environment

Posted in XBRL | No Comments »

R12 Supplier Bank – Techno Functional Guide

Posted on October 20th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Three banks you can manage in EBS

  • House Bank or internal bank
  • External bank for supplier and Customer
    • Supplier (or External) bank accounts are created in Payables, in the Supplier Entry forms. Navigate to Suppliers -> Entry. Query or create your supplier. Click on Banking Details and then choose Create. After you have created the bank account, you can assign the bank account to the supplier site.
  • Intermediary bank for SEPA payment : An intermediary bank is a financial institution that as a relationship with the destination bank (in this case the supplier bank account you are setting up) which is not a direct correspondent of the source bank (the disbursement bank in AP/Payments), which facilities the funds transfer to the destination bank.

You can enter intermediary bank accounts on Suppliers->Entry->Banking Details->Bank Account Details

This is important when paying a foreign supplier from a domestic disbursement account, there may be an intermediary bank used, and it would be set up on the supplier bank account. Although the intermediary bank UI is owned by Payments, the implementation is as embeddable UI components in pages owned by i-supplier Portal (suppliers) and AR/Collections (customers).

dgreybarrow Some information

  1. The supplier bank account information is in the table: IBY_EXT_BANK_ACCOUNTS, the bank and bank branches information is in the table HZ_PARTIES.
  2. Creating a supplier in AP now creates a record in HZ_PARTIES. In the create Supplier screen, you will notice that that Registry_id is the party_number in HZ_Parties.
  3. The table hz_party_usg_assignments table stores the party_usage_code SUPPLIER, and also contains the given party_id for that supplier. Running this query will return if customer was a SUPPLIER or CUSTOMER
  4. Payment related details of supplier are also inserted in iby_external_payees_all as well as iby_ext_party_pmt_mthds
  5. IBY_EXT_BANK_ACCOUNTS, the bank and bank branches information is in the table: HZ_PARTIES.
  6. The master record that replaces PO_VENDORS is now AP_SUPPLIERS. PO_VENDORS is a view that joins AP_SUPPLIERS and HZ_PARTIES.
  7. The table that hold mappings between AP_SUPPLIERS.VENDOR_ID and HZ_PARTIES.PARTY_ID is PO_SUPPLIER_MAPPINGS. Query by party_id.
  8. The bank branch number can be found in the table: HZ_ORGANIZATION_PROFILES .The HZ_ORGANIZATION_PROFILES table stores a variety of information about a party. This table gets populated when a party of the Organization type is created.

dgreybarrowER Diagram(Bank Model)

suplier bank

dgreybarrow Oracle Table Involved

  • IBY_EXTERNAL_PAYEES_ALL : This stores supplier information and customer information
  • IBY_EXT_BANK_ACCOUNTS : This storage for bank accounts
  • IBY_EXT_PARTY_PMT_MTHDS : This storage for payment method usage rules.
  • IBY_CREDITCARD : stores the credit card information for a customer
  • IBY_EXT_BANK_ACCOUNTS :This Stores external bank accounts . These records have bank_account_type = Supplier
  • IBY_ACCOUNT_OWNERS :stores the joint account owners of a bank account
  • IBY_PMT_INSTR_USES_ALL : This stores data from AP_BANK_ACCOUNT_USES_ALL for payment instruments assignments .This information is stored in the following iPayment (IBY) tables:

 


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Posted in Oracle Payable | 9 Comments »

A note on sub ledger reconciliation reports during period closure

Posted on October 10th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

This is short note for subledger reconciliation reports which helps during period end closure.

Reconciliations – Subledger Accounting on-line account reconciliation to streamline the reconciliation process.

  1. Subledger Journal Entry Report : This will display detailed Header & Line information for Subledger and General Ledger journal entries by Source & Category
  2. Subledger Account Analysis : This report can be used to display Transactions transferred to & posted to a GL account for a period or range of periods
  3. Payables Third Party Balances : If you are managing third party account, then you can see Balances for your Third Party Control accounts
  4. Open Items Listing :
    1. For this you need define this report by Segment or Accounting Flexfield.
    2. This report display Detail/Summary by Accounts/Third Party.
    3. This report output available in multiple output formats .
    4. This will shows only Open Transactions.
    5. This is very similar to SAP Open Item Report seeded report. User coming from SAP to Oracle Financial now find similar report with less information. Still SAP's Compact Journal Report is missing from Oracle's SLA.
  5. Subledger Period Close Exception Report :During the period end run the Subledger Period End Close Exception report, and you can find the data with these information.
    1. Incomplete: Not ready for accounting, Run Subledger’s validation programs!
    2. Unprocessed: Transactions exist but have as yet not been accounted
    3. This report help in resolving exceptions quickly so that exceptions are not left to slow down the period-end close

Posted in Subledger Accounting | 3 Comments »

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