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Release 12 : What’s New in Oracle Receivables

Posted on December 3rd, 2007 by Sanjit Anand ||Email This Post Email This Post

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Oracle’s Release 12 of the E-Business Suite is also called the “ Global Business Release ”, as it has numerous enhancements designed to make it easier to do business on a global basis. A more flexible, centralized global accounting structure has been introduced which makes it easier to operate between and across operating units and legal entities. Overall, R12 contains 18 new modules and 2443 enhancements to existing functionality.

Oracle’s Release 12 (R12) of their E-Business Suite continues to extend the functionality of the Receivables arena , in addition to incorporated new financial architecture and new products , Oracle Receivables is now very natured product.As part of this post, we will look at Oracle’s newest/enhanced offerings in Oracle Receivables.


Revenue Recognition

In R12 revenue recognition is based on Rules and Events, and they are:

  • Time-Based Revenue Recognition
    • Ratably Over Time
    • Upon Expiration of Contingencies
  • Event-Based Revenue Recognition
    • Payment
    • Customer Acceptance
  • Rule-Based Revenue Recognition
    • Payment Term Thresholds
    • Refund Policy Thresholds
    • Customer Credit worthiness

Lets take a quick look on some of the new changes:

  • Daily Revenue Recognition
    • Revenue distribution over full as well as partial accounting periods.
    • Fulfills stringent accounting standards
    • Accuracy to the number of days in the accounting period.
  • Enhanced Revenue Contingencies :
    • Fully Supports US GAAP and IAS
    • User definable contingencies
    • User definable defaulting rules for contingencies assignment
    • Supports parent-child (e.g. Product and Service) relationship
    • Integration with Order Management and Service Contracts
    • User Interface as well as Programming Interface (API) support
    • Access control through seeded Revenue Managers Responsibility
  • Deferred Revenue Management

Event-Based Revenue Management in Oracle Receivables allows users to define revenue deferral reasons or contingencies and corresponding revenue recognition events. In Release 12, revenue contingencies for customer acceptance that are applied to goods sold in Order Management are now applied to services sold to cover those goods. Revenue is deferred for service ordered in both Order Management and Service Contracts. Acceptance contingencies associated with an item instance are automatically applied to service revenue associated with the item instance when it is covered in a Service Contract as a Covered Product. Revenue for services on other covered levels, subscriptions and usage is not impacted by contingencies applied to goods associated with those services.

2Global Architecturenewfeature

As we know, with in global architecture , these new things has been introduced.

  • Sub ledger Accounting – Journal Creation takes place prior to GL.
  • Bank Model – This unified model enables to park customer Bank as well as Internal bank information into there new model, so that working capital cash flow should be enhanced.
  • EBusiness Tax – Oracle E-Business Tax is a new product that uniformly delivers tax services to all Oracle EBusiness Suite business flows. In Release 12, Receivables is enhanced to support
    integration with the E-Business Tax product.
  • Intercompany – This is enhanced by automatic balancing,

3MOAC Control

moacThis enhance you by enabling and performing tasks across operating Units (OUs), where you have access to without changing responsibilities.As we know , MOAC enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility.

In nutshell, once MOAC is enabled, then you can:

  • Perform Setups for any OU
  • Enter invoices across OUs
  • Receive Cash for any OU
  • Manage Customer Credit across all OU
  • Run reports across OUs

Because of this greatly enhanced Role based security options, the ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring from finance controller side.

4Line Level Cash Applications

The Line Level Cash Applications solution allows the application of receipts to linesspecific transaction items such as individual lines, groups of lines, or tax or freight buckets. From the receipt workbench,you are able choose whether to allocate cash to the entire transaction or to apply amounts against specific items according to the customer remittance.

  • Apply to specific lines or groups of lines
  • Indicate when tax, freight or finance charges only are paid
  • Make changes as needed
  • Easily view activity against receipts
  • Know what historical activity affects your receipt
  • See what prior activity affects a new application

5Enhanced Customer Screen

We have seen 11i Customer standard forms makes easier by simple navigation. This times there is clearer separation of the party and account layers, which makes a consist ant look and feel.More over full backward compatibility with 11i UI Bill Presentment Architecture has been provided.

The AR Create Customer page in R12 has eliminated the navigation to separate windows. Now, users can specify the following on a single page:

  • Customer Information
  • Account Details
  • Address
  • Account Site Details
  • Business Purpose



Oracle Receivables is fully integrated with Oracle Payables to deliver a seamless, automated process to generate check and bank account transfer refunds for eligible receipts and credit memos.

7Late Charges

As we know oracle receivables delivers enhanced Late Charges functionality enabling the creation of standard late charge policies that can be assigned to customer accounts or account sites.Flexible policy configurations include multiple interest calculation formulas, transaction and account balance thresholds, and currency-level rate setups. With new changes these are the enhanced functionality:

  • Expanded assessment and calculation capabilities
  • Tiered charge schedules
  • Penalty charge calculation
  • Integration with Balance Forward Billing
  • Centralized setup and maintenance of late charge policies
  • Calculation performed independent of Dunning and Statement processing



8 AR-AP Netting

The matching of open receivables and open payables is automated.

9Balance Forward Billing

This makes easy transaction processing.

Balance Forward Billing is an enhanced version of the existing consolidated billing functionality for industries where customers are billed for all their account activity on a regular, cyclical basis.

Balance Forward Billing provides the ability to setup cycle-based billing at the account or account site levels, enable event based billing, and leverage user configurable billing formats provided by Oracle Bill Presentment Architecture.

A typical case can be best understood as

  • Payment Term defaults
  • from Site profile if Bill Level = Site
  • from Account profile if Bill Level = Account
  • Billing Date derived from transaction date and billing cycle
  • Due Date derived from billing date and payment term
  • Optionally select non-Balance Forward term if Override Terms = Yes


Related Posts

Posted in EBS Suite, Functional, Oracle Receivable, R12, Release12 | 12 Comments »Email This Post Email This Post |

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12 Responses
  1. Highlights:Release 12 Financials Says:

    […] Release 12 : What’s New in Oracle Receivables […]

  2. A bit on IFRS Says:

    […] have notice there is some big change in R12 AR to meet revenue recognition, R12 is partially on track for IFRS fitness in […]

  3. Jim Shaughnessy Says:

    Release 12 Question. I have a question about revenue recognition. Release 12 includes Event Based Revenue Recognition. My business problem is related to revenue recognition rules for United States Export Shipments. Today in our warehouse we ship confirm an order bound for an international destination. Our freight forwarder picks up the goods from our dock but the goods may remain in the possesion of the freight forwarder for 24 to 72 hours prior to loading on an airplane bound for the customer destination. Our financial accountants do not want to recognize revenue until the plane takes off. Today at month and quarter end (we use 11.5.10 version of Apps) we have a very manual process of checking forwarder and airline websites trying to determine did the plane take off before midnight on 30-June or 31-Dec.
    We are looking at implementing Oracle Transportation Management but I am just trying to determine if in R12 AR I can define an event “Flight Departed” to trigger revenue recognition. Any opinions?


  4. Gaurav Agarwal Says:


    I must say you have put very informative article on this site. Thanks for sharing the info. I am writing a document on “Revenue Management in Oracle Apps” and planning to post it on our Knowledge Management intranet, so that other employees in my company can also benefit from reading it. I came across this article “Release 12 : What’s New in Oracle Receivables” written by you which has some good information about Revenue Management features in R12. I would like to include parts of this in my document. I request you to kindly grant me permission to do so. I assure you that I would give appropriate credits and references (in-line citations) to your article in my document.

    Following is the portion from your article I intend to reproduce in my document :

    Part 1 written on Revenue Recognition i.e. ” In R12 revenue recognition is based on ……..applied to goods associated with those services.”

    Thanks again for sharing this information.


  5. Sanjit Anand Says:

    Thanks Gaurav for stopping by.

    You can get use the content , just make sure that you can point the reference link, so that people can have some more thought on that subject can directly share so that discussion should be interactive.


  6. Gaurav Agarwal Says:

    Hi Sanjit,

    Thanks for permission. I will ensure that I quote the same as inline citation and point this page as the reference.

    Thanks & Regards,

  7. Highlights:Release 12 Oracle EBS Financials | OracleApps Epicenter Says:

    […] Release 12 : What’s New in Oracle Receivables […]

  8. mayur Says:

    hi Sanjit,

    First of all thanks a lot for this wonderful site .We are upgrading from 11.5.10 to r12 ,so I needed info regarding any database changes(tables,view etc )and info about the screen changes in EBS .Can u please let me know where will I get any documentation regarding the same ?OR if u can give any input reagrding the same.

  9. Satyendra Kumar Says:

    Why nobody is talking about Interest Rate Schedule creattion in CM R12. I am unable to create Interest Rate Schedule for compound interest calculation. Anybody has solution for this.



  10. Mark Says:

    My understanding is that even under multi org access control in rel 12 ar that it is not possible to apply cash from a single responsibility across operating units. Is that the case?

  11. ben Says:

    yeahh, sounds nice on paper.

    Oracle is terrible when it comes to upgrades. You need to spend man-years (I am not exaggerating) to make your flawlessly working 11i system work again in R12. Let me tell you what will happen on the 1st day after upgrade:
    1) istore stops working
    2) Unable to pay suppliers or print checks
    3) Unable to ship
    4) Unable to generate AR Invoice
    5) Unable to use credit cards

    These are just a few of the problems we had on day 1. now all that are working, but I’ve got aged.

    I am an Oracle consultant for past 10 years, never seen a problematic release like R12
    I would suggest you to wait till 12.5 (so that Oracle can fix this beast) and then start your upgrade.

  12. charan Says:


    I’m a regular visitor to your blog and learned a lot from it. So thank you for that.. Look at this post.. Some body named Ravi literally copied this post.check out this at

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