Oracleâ€™s Release 12  of the E-Business Suite is also called the â€œ Global Business Release  â€, 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.
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
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.
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,
This 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.
Line Level Cash Applications
The Line Level Cash Applications solution allows the application of receipts to specific 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
Enhanced 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
- 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.
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
The matching of open receivables and open payables is automated.
Balance 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