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Understanding customer acceptance in R12

Posted on May 24th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do you know in R12, there is Customer-centric functionality called "Customer Acceptance".This is Integrated with Workflow in OM and AR and utilizes Order Information Portal (OIP) .

Company using these feature can see major benifits as:

  • This is Customer-focused enhancement which improve Customer Satisfaction
  • Self-service acceptance entry by Customer
  • Delayed invoicing can reduce transaction burden of processing RMA

dgreybarrow What is Customer Acceptance ?

  • Enables organization to defer invoicing and/or revenue recognition for the shipped goods till the end customer receives the shipment and accepts the material
  • Additional step called ¡§customer acceptance has been introduced in order fulfillment flow in R12, where customer accepts the goods either before or after billing happens
  • Customer Acceptance rules are created in the Receivables Revenue Management module and they are executed and validated within Order Management

dgreybarrowTypes of Customer Acceptance Rules

Customer Acceptance can be performed at the following milestones:

  • Prior to Invoicing - Pre Billing
  • Post Invoicing - Post Billing

Oracle supports both Customer Acceptance rules in both Implicit and Explicit mode. Details are herewith:

  1. Pre-Billing Acceptance:

Invoice is generated after the acceptance criterion is met; either a certain period of time has elapsed since shipment (Implicit Acceptance) or a user records acceptance using Order Information portal (Explicit Acceptance). Events are most likly to be:

  1. Invoices will only be interfaced to Oracle Receivables after the acceptance is recorded
  2. Defers both Invoicing & Revenue Recognition
  3. Can be Implicit or Explicit ( refer details next section)
  4. Sales Order Line Workflow process is held at Invoice Interface eligible – Pending Customer Acceptance

Remember this "Line closes and invoice-interfaces after acceptance "

2. Post-billing Acceptance:

Invoice is generated upon delivery of goods/ services but the revenue recognition is deferred until the customer accepts the products/ services. Acceptance may be recorded implicitly / explicitly at the line level.Events are most likly to be:

  1. Invoices are created but revenue will be recognized after aceptance is recorded
  2. Defers only the Revenue Recognition
  3. Can be Implicit or Explicit
  4. Sales Order Line Workflow process is held at Close Line Eligible – Pending Customer Acceptance

Remember this "Revenue recognition occurs after acceptance"

dgreybarrowTwo Basic Types of Acceptance

Oracle has broadly classified the acceptance in two categories:

1. Explicit Acceptance

Requires an actual acceptance from or on behalf of the Customer.Acceptance is recorded using the Order Information Portal

  • Customers or their representative can perform the acceptance by
  • Logging into the Self-service Order Information portal
  • Through import API
  • Recording the acceptance in sales order form
  • Acceptance can be recorded Manually or Programmatically

2. Implicit Acceptance:

In this case, acceptance will auto-process after specific interval beyond specified transaction.

Acceptance is recorded systemically after a certain period of time has elapsed since the shipment. This period of time is setup in the Receivables module at the time of defining the deferral reason.

  • In the Receivables module, The Expiration Period (Expire Days) is pre defined for the Deferral Reasons
  • Implicit Acceptance Request Set is used to record implicit acceptance
  • Can only be recorded Programmatically

This make total 4 Acceptance Combinations as:

  • Pre-Billing Explicit
  • Pre-Billing Implicit
  • Post-Billing Explicit
  • Post-Billing Implicit

dgreybarrow Basic Set Up

In order to use this , Important setups required for Customer Acceptance feature along with Revenue Recognition as follows:

  • Setting Up Oracle Order Management System Parameters
  • Adding Specific Functions to Order Management User Menu
  • Create Revenue Contingencies & Assignment Rules
  • Create Folder for viewing Customer Acceptance details on Sales Order Line

dgreybarrow A note on Implicit Acceptance Request Set

The Implicit Acceptance Request Set, a part of OM’s standard concurrent programs is launched upon expiration of ‘Acceptance Days’ and acceptance is recorded.

This request Set has two concurrent requests

  1. Generate Pre-billing Acceptance Program for Pre-billing, Implicit Acceptance
  2. Revenue Contingency Analyzer for Post-billing, Implicit Acceptance

Customer Acceptance can be a useful tool for improving customer satisfaction by delaying invoicing until goods or services are accepted and hopefully, utilized to maximize the benefit.

Posted in Oracle Receivable | No Comments »

R12 ” Enhanced Performance for High Volume Receivables Processing

Posted on May 17th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do you know , In this release EBS 12.2.2 , performance of the key batch processing programs is enhanced significantly to support high volume processing requirements of customers belonging to industries which process large number of transactions every day.

Performance of these programs is vastly enhanced by implementing parallel processing and leveraging database indexes and statistics.

The following programs now provide improved performance to support high volume processing:

  • AutoInvoice Master Program
  • Automatic Clearing for Receipts
  • Automatic Remittances Master Program
  • Lockbox Execution Program

Posted in Oracle Receivable | No Comments »

Difference between ‘balance forward payment terms’ and other ‘payment terms’

Posted on May 16th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Balance forward billing payment terms pass the balance forward billing cycle to the Create Balance Forward Bill program. The billing cycle determines when customer balance forward bills are generated.

Because balance forward bills cannot be split across installments, all settings related to installments on balance forward billing payment terms are disabled.

You cannot change existing payment terms back and forth for use as both a non-balance forward billing and balance forward billing payment terms.

Posted in Oracle Receivable | No Comments »

Over application In AR

Posted on May 15th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Allow Over application simply means "You are asking the system to over apply the amount than what is actually due on the invoice"

Here is Reader query :

What hapens if credit memo is applied after the receipt is applied full for an AR Invoice .

Billing is done via third application ( Billing data is interfaced to AR) and cash application is done via Oracle AR. What-if i creat a credit memo against that invoice in source Billing system and interfacing that to AR, ...

  1. Can credit memo be applied to AR invoiced which are already applied with receipt fully?
    Two scenario likely to happen :
    We can not credit an invoice which is fully applied, if "Allow Overapplication" is not checked.
  2. If it can be applied how is the accounting treatment happens in this case i.e. what

When we over apply an invoice then invoice will be left with a negative balance (in case allow overapplication is checked"

Thats means

  • Allow Overr aplication checked means it will allow uys to attach a receipt more than the invoice amount.
  • Eg: If the invoice amount is 100 and the receipt associated with the invoice is 120.If the allow overapplication is checked it will allow us to attach this invoice against the receipt .
  • The invoice amount will be changed to negative from Positive in this case once the receipt is applied

Posted in Oracle Receivable | No Comments »

Oracle Tax Simulator : Essentials Simulation Tool for Implementers

Posted on May 2nd, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

If you are coming from vertex or using Vertex , you just love this .

You can use the Oracle Tax Simulator to enter transactions in order to simulate the tax determination process without creating live data.

Simulator is a powerful user interface too that can be used to simulate Tax Calculation based on what-if scenarios.

It gives flexibility to test new and/or changed tax rules. Tax Simulator helps on audit trail with respect to which Tax Rules were satisfied in calculating a particular tax.

Major Feature of Tax Simulator:

  • Simulator is a powerful user interface tool that can be used by Support.
  • Tax Simulator can act as a light-weight transaction for entering Purchase Orders, Invoices, Invoices matched against PO, etc.. that is integrated with Tax Lines User Interface
  • It gives flexibility to test new and/or changed tax rules
  • Tax Simulator helps on audit trail with respect to which Tax Rules were satisfied in calculating a particular Tax
  • Tax Simulator can act as a light-weight transaction for entering Purchase
  • Orders, Invoices, Invoices matched against PO, etc.. that is integrated with Tax Lines User Interface
  • Is a fast way to enter transactions with fewer validations to perform what-if scenarios on tax calculation

There are some restriction for this tool, therefore understand before making use of it.

  • This does not provide simulation of tax recovery processing.
  • This does not meant to test actions that you perform on transactions or transaction lines, such as canceling, deleting and reversing lines.
  • You cannot use Oracle Tax Simulator to test or verify user control settings.

Be sure to assign the “Oracle Tax Simulator” responsibility to the user and use this rather than using the menu on the home page of “Tax Administrator” – otherwise you will get encounter an error.

Posted in Oracle E-Business Tax | No Comments »

AutoCAD – Oracle Property Manager Interaction

Posted on May 1st, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do you know, companies with a significant number of properties under management should make use of a Computer Aided Design (CAD) or Computer-assisted facilities management (CAFM) applications to hold engineering drawings of their buildings.These systems will know the floor space of each unit. The salient information from these drawings can be extracted and uploaded directly to Oracle Property Manager. Modified data can be exported from Oracle to update the CAD/CAFM databases.

Transfering information between Property Manager and CAFM applications..

You can transfer information between Property Manager and CAFM applications by exporting and importing information through Oracle's Space Open Interface
Tables.

If the data in your CAD or CAFM application follows BOMA standards for space measurement, no special implementation procedures are required.

If your CAD data follows Internation Facilities Management Association (IFMA) standards, you can set up Property Manager at the time of implementation to import your CAD data.

The export and import processes initiate a concurrent process in Property Manager. When the process completes you can access the information in either Property Manager or the CAFM application.

  • Export to CAD Interface :Use the Export to CAD Interface concurrent program to export location or space assignment information from Oracle Property Manager to computer-assisted design (CAD) or computer-assisted facilities management (CAFM) applications
  • Import from CAD Interface :Use the Import from CAD concurrent program to import employee space assignment entries or location records into Oracle Property Manager.

More Details

  • CAD Integration [Note# 1373463.1]
  • Oracle Property Manager FAQ for CAD/CAFM [Note# 164290.1]

Posted in Oracle Property Manager | No Comments »

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