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Understanding customer acceptance in R12

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:

What is Customer Acceptance ?

Types of Customer Acceptance Rules

Customer Acceptance can be performed at the following milestones:

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"

Two 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

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

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.