Setting Up Transaction Types In Oracle Receivables [ID 1067797.

1]
Modified 24-AUG-2011 Type HOWTO Status PUBLISHED
In this Document
Goal
Solution
Still Have Questions?
References

Applies to:
Oracle Receivables - Version: 12.0.0 to 12.1.2 - Release: 12.0 to 12.1
Information in this document applies to any platform.
Form:ARXTWMAI.FMB - Transactions
Executable:RAXTRX - Autoinvoice Import Program

Goal
Oracle Receivables (AR): AutoInvoice Information Center > AutoInvoice Setup for Release 12: A Case Study Using a
Simple Script > Note 1067797.1
Oracle Receivables (AR): Transactions Workbench Information Center > Note 1067797.1

This document provides information on how to create an invoice transaction type which can be used:

For case study in Note 1067402.1, Setting Up AutoInvoice for Release 12: A Case Study using a
Simple Script.
Manually created transactions via the Transactions workbench

Solution
Oracle Receivables provides the following five transaction types:
1. Invoice
2. Credit Memo
3. Projects Credit Memo
4. Projects Invoice
5. Intercompany
You are welcome to use these transaction types if they satisfy your requirements. However, if you need
your transactions setup to be slightly different from the seeded types, you can create your own transaction
types as follows.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Transaction Types
Create a new Credit Memo transaction type.

If you intend to associate a particular credit memo type to an invoice type, then you should define the
credit memo transaction type first.
Create a new Invoice transaction type.

The following explains the settings for the fields:

Class - indicates the classification of this transaction, valid values are: Bills Receivable,
Chargeback, Credit Memo, Debit memo, Deposit, Guarantee, Invoice
Creation Sign - indicates the default sign of your transaction, valid values are: Positive, Negative,
Any
Transaction Status - is the default status of this transaction type, valid values are: Open, Closed,
Pending and Void
Notes:
1. A transaction type's status is not the same as the transaction's status. The status of a
transaction, for example an Invoice is either Open or Closed depending on whether it has
an outstanding balance in AR_PAYMENT_SCHEDULES_ALL table, and this is
independent of the transaction type status, and transaction status (in more tab of header)
which is a user maintainable field.
2. When creating transactions via AutoInvoice, even if you use a transaction type that is
setup with Transaction Status = Closed, once the data is interfaced, it will be interfaced as
COMPLETE (there is no functionality within AutoInvoice to create INCOMPLETE
transactions) and OPEN.
The only way you can interface a CLOSED invoice is if you use the 11.5.10 Prepayment
Matching feature, wherein an invoice is matched up to a receipt and is already paid by the
time it becomes an invoice within Receivables.
3.

There is an enhancement request to properly record the transaction type status in

RA_CUSTOMER_TRX.STATUS_TRX, see Bug 3682327

Printing Option - indicates whether transactions using this type can be printed via Invoice
Printing, valid values are: Print and Do not Print
Credit Memo Type - default transaction type to use when crediting this transaction type, this
field is disabled when Class is Bills Receivable or Credit memo

Terms - default payment terms for this transaction, this field is disabled when Class is Bills
Receivable or Credit memo

Open Receivable - indicates whether this transaction's balance impacts a Customer's Receivable
balance

Post to GL - indicates whether the accounting entries of this transaction should post to the
General Ledger

Natural Application Only

Checked - activities against this transaction can only bring its balance towards zero

Unchecked - activites against this transaction can increase it's amount, i.e. a negative
balance becomes more negative and a positive balance becomes more positive

Exclude from Late Charges Calculation - you can disqualify this transaction type from being
included in the generation of late charges

Allow Freight - indicates whether or not you can associate freight to this transaction type

Default Tax Classification - defaults tax classification code for this transaction. This value is
only relevant in release 11.5 or a release 12 instances that are using E-business tax setups
defaulted from an upgraded release 11.5 instance

Allow Overapplication
o

Checked - activities against this transaction can cause the sign of the balance to change
Example: an original positive amount ($150), can change to negative amount (-$50) due to
receipt applications

Unchecked - activities against transaction cannot exceed its remaining balance

Other transaction types are not used for our case study and will be provided at a later date.
For additional details, refer to the Oracle Receivables Implementation Guide, page 4-36.

Still Have Questions?

To discuss this information further with Oracle experts and industry peers, we encourage you to review,
join or start a discussion in the My Oracle Support Receivables Community.
To provide feedback on this note, click on the Rate this document link.

Creating Transaction Sources Used For AutoInvoice and the Transactions Workbench [Video] [ID
1068008.1]
Modified 15-NOV-2011 Type HOWTO Status PUBLISHED
In this Document
Goal
Solution
1. Transaction Source Overview
2. Creating a Batch Source for use in AutoInvoice
3. Creating a Batch Source for use in the Transactions Workbench
Still Have Questions?
References

Applies to:
Oracle Receivables - Version: 11.5.10.0 and later [Release: 11.5.10 and later ]
Oracle Receivables - Version: 11.5.10.0 and later [Release: 11.5.10 and later]
Information in this document applies to any platform.
Executable:RAXTRX - Autoinvoice Import Program

Form:ARXTWMAI.FMB - Transactions
Form:RAXSUMSC.FMB - Define Invoice Sources

Goal
Oracle Receivables (AR): AutoInvoice Information Center > AutoInvoice Setup for Release 12: A Case Study Using a
Simple Script > Note 1068008.1
Oracle Receivables (AR): Transactions Workbench Information Center > Note 1068008.1

This note provides an overview of Transaction Sources (also known as Transaction Batch Sources).
It illustrates how to create a batch source that will be used in AutoInvoice interface table, For case study
in Note 1067402.1, Setting Up AutoInvoice for Release 12: A Case Study using a Simple Script
This note contains one or more video files for illustrative purposes. In order to view the video file, you
will need to play it in either Internet Explorer or Firefox using a Flash Plugin.

Solution
1. Transaction Source Overview
Transaction Source setup plays a key role in determining the behavior of the Transactions form as well as
how AutoInvoice validates data to be imported. When you create a transaction, and associate it to a
Transaction Source, several attributes of the Source are defaulted into the transaction The following
functionality is controlled by your transaction source setup:

Transaction Numbering - Automatic or Manual

GL Date Derivation

Grouping Rules

Customer Information - Values Passed (ID, Value, Segment)

Bill To and Ship To

Address

Contact

Payment Method

Accounting Information - Values Passed (ID, Value, Segment)

o

Invoicing Rule

Payment Terms

Sales Credit Validation

How to process Invalid Lines

How to Process GL Dates in a Closed Period

Active transaction sources appear as list of values choices in the Transactions, Transactions Summary,
and Credit Transactions windows. For Bills Receivable, the transaction batch sources appear in the Bills
Receivable and Bills Receivable Transaction Batches windows.
There are two types of transaction sources:

Manual: Used for transactions created manually in the Transactions Workbench.

Imported: Used for importing transactions using AutoInvoice.

The following lists the 6 tabbed regions in the Transaction Source form. Only the first tab is enabled
when creating Manual transaction sources. For Imported transaction sources, all 6 tabbed regions are
enabled.
1. Batch Source
2. AutoInvoice Options
3. Customer Information
4. Accounting Information
5. Other Information
6. Sales Credit Validation
Oracle Receivables provides the following seeded Transaction Sources:
Imported:

Global Intercompany
INDIA INVOICES

Intercompany

Order Entry Delivery Invoicing

PA Internal Invoices

PROJECTS INVOICES

Property Manager Batch Source

SERVICE

Trade Management

Work Order Billing

Manual:

Chargeback
DM Reversal

Loans

MANUAL-OTHER

2. Creating a Batch Source for use in AutoInvoice

The following steps illustrate how you would create a batch source that you will use in AutoInvoice. The
transaction source created below, is used in the the AutoInvoice Case Study Note 1067402.1
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Sources

The following screenshot is for a sample Imported Batch Source to be used with AutoInvoice:

The following discusses the fields shown above:

Batch Source Name -Tip: If you have installed multiple organization support (multi-org), define
an imported batch source with the same name in each organization (these sources can have the
same or different settings). This enables you to import order lines that belong to different
organizations in Oracle Order Management "into corresponding organizations" in Receivables.

Note: The Batch Source parameter selected must match the value in the interface table. For this reason,
local language names are not displayed in the LOV when running AutoInvoice

Automatic Batch Numbering

o Checked - indicates batches are automatically numbered, using the sequence provided in
Last Number
o

Unchecked - indicates batches will require users to enter a batch number manually

Automatic Transaction Numbering

o

Checked - indicates the transactions within this batch will be numbered automatically
from the sequence value provided in Last Number

Unchecked - indicates manual transaction numbering, which will require users to enter a
transaction number manually during data entry

Copy Document Number to Transaction Number - indicates whether you want the document
number generated to overlay the transaction number. This feature is necessary to implement
gapless transaction numbers

Additional information pertaining to the usage of Document Sequences can be reviewed in:
Note 1086565.1, How To Setup Document Sequences In Receivables
Note 1087122.1, Troubleshooting Document Sequences in Receivables
Note 197212.1, How To Setup Gapless Document Sequencing in Receivables

Allow Duplicate Transaction Numbers - indicates whether duplicate numbers should be

prevented or not during data entry

Copy Transaction Information Flexfield to Credit Memo - indicates whether the descriptive
flexfield information from an Invoice should be copied into the Credit memo that credits the
transaction

Generate Line Level Balances - indicates whether you want transactions in this batch to
maintain line level balances useful for Line Level Cash Applications

Receipt Handling for Credits - for cases where you are interfacing a credit memo against an
Invoice that has already been fully paid, you have the option of unapplying the receipts so that
AutoInvoice can continue crediting the transaction. Available options are:
1) Refund - to issue a credit card refund for the receipt or
2) On-Account - put the receipt in On-Account
For more information on this topic, please review Note 283125.1, Automated Receipt handling
For Credits: Overview and Setup, and the Setting Up the Automated Receipt Handling Process
section in the Oracle Receivables User's Guide

Reference Field Default Value - indicates which line transaction flexfield segment, i.e.
RA_INTERFACE_LINES_ALL.INTERFACE_* field, you want to appear in the Reference field
in the Transaction form

Standard Transaction Type - is the default transaction type for transactions in this batch

Credit Memo Batch Source - is the default batch source Receivables will use when creating
Credit Memos against transactions within this batch source

The following screenshot shows the AutoInvoice Options tab:

The following discusses the fields shown above:

Invalid Line - indicates the action to take when an interface line has an error, valid values are:
Reject Invoice and Create Invoice
GL Date in a Closed Period - indcates the action to take when the GL date provided in interface
falls in a closed period, valid values are: Adjust and Reject

Grouping Rule - indicates the default Grouping rule to use for interface lines using this batch
source.

Payment Details Defaulting Hierarchy - this field has 2 possible values:

Parent of Bill-To Customer - this is the default value and uses the defaulting hierarchy:
1. Primary receipt method of the parent primary bill-to site
2. Primary receipt method of the parent customer
3. Primary receipt method of the bill-to site
4. Primary receipt method of the bill-to customer

Bill-To Customer - this uses the following defaulting hierarchy:

1. Primary receipt method of the bill-to site
2. Primary receipt method of the bill-to customer
3. Primary receipt method of the parent primary bill-to site
4. Primary receipt method of the parent customer

Note:
This field was introduced via a patch:

for 11.5: Patch 10253611

for 12.x: Patch 8627753

Create Clearing - when checked, any differences between the specified revenue amount and the
price multiplied by the quantity for imported invoice lines are stored in a clearing account. You
must define a clearing
account if you enable this.
Allow Sales Credit - when checked, indicates that sales credits can be entered for transactions
using this source

In the Customer Information tab, you indicate what type of data AutoInvoice should expect for various
fields in the interface table. You can specify either an ID or the value. For example, Customer ABC, has
Customer Number = C112234, and the internal cust_account_id value = 76532.
When you interface data for this Customer, and your setting for Bill To Customer is Value, then
AutoInvoice will expect you to pass in the value C112234. If your setting is Id, then autoinvoice will
expect you to pass in 76532.
See the details as displayed in the following series of screen shots:

To see how to set up Transaction Batch sources, refer to the Oracle Receivables Implementation Guide,
page 4-29.
To view a video demonstration of how to setup a Transaction Source:
Video - Transaction Source Setup Demonstration (04:35)

3. Creating a Batch Source for use in the Transactions Workbench

Responsibility: Receivables Manager
Navigation: Setup > Transactions > Sources
The following screenshot is for a sample Manual Batch Source to be used in the Transactions form.

For an explanation of the various fields and checkboxes, please refer to the section above: Creating a
Batch Source for use in AutoInvoice.

Still Have Questions?

To discuss this information further with Oracle experts and industry peers, we encourage you to review,
join or start a discussion in the My Oracle Support Receivables Community.
To provide feedback on this note, click on the Rate this document link.

How To Setup And Troubleshoot Invoicing Rules and Accounting Rules [ID 1116934.1]

Modified 22-AUG-2011

In this Document
Purpose
Last Review Date
Instructions for the Reader

Type TROUBLESHOOTING

Status PUBLISHED

Troubleshooting Details
1. Overview of Invoicing Rules and Accounting Rules
a. Invoicing Rules
b. Accounting Rules
2. Setting up Invoicing and Accounting Rules
3. Using Invoicing and Accounting Rules
a. Transactions form
b. AutoInvoice
4. Underlying table information for Invoicing and Accounting Rules
5. Troubleshooting Invoicing and Accounting Rules
a. Rule Defaulting issues
b. Unexpected behavior when using the seeded Accounting Rule = Immediate when interfacing Sales Orders from Order
Management (OM)
c. Explanation of changes to Transaction and GL date in transaction form when using Bill in Arrears
d. Updating Invoicing and Accounting Rules
e. When choosing an Accounting rule get error
f. Using Daily Revenue Rate type of periods raises error
g. Unexpected Percentages when using an Accounting rule spread over multiple periods
h. Issues with dates: Transaction or GL date
i. Unable to update fields associated to Daily Revenue Rate in Interface Lines form
j. Please supply both an invoicing rule and an accounting rule for this invoice.
k. The valid values for credit method for accounting rule are: PRORATE, LIFO and UNIT
6. Code Bugs
7. Still Have Questions?
References

Applies to:
Oracle Receivables - Version: 11.5.10.0 to 12.1.3 - Release: 11.5.10 to 12.1
Oracle Receivables - Version: 11.5.10.0 to 12.1.3 [Release: 11.5.10 to 12.1]
Information in this document applies to any platform.
Executable:RAXMTR - AutoInvoice Master Program
Executable:RAXTRX - AutoInvoice Import Program
Form:ARXTWMAI.FMB - Transactions
Form:RAXSURUL.FMB - Define Invoicing and Accounting Rules

Purpose
Oracle Receivables (AR): AutoInvoice Information Center > Troubleshooting AutoInvoice for Oracle Receivables
Release 11.5 Through 12 > Note 1116934.1
Oracle Receivables (AR): Transactions Workbench Information Center > Note 1116934.1

Invoicing Rules and Accounting Rules are used by Receivables to determine how you want to recognize
your Receivable and Revenue. The information you setup for Accounting Rules determines the behavior
of Revenue Recognition, and defines how the GL distributions are created for your invoices.
This note is intended provide an overview of Invoicing and Accounting Rules in Receivables. It will
discuss the difference and relationship between Invoicing Rules and Accounting Rules and provide
details on how to set it up as well as troubleshoot issues.
Since Invoicing and Accounting Rules are tightly integrated with Revenue Recognition, please also
review Note 1121944.1, Understanding and Troubleshooting Revenue Recognition
If you are encountering other issues involving AutoInvoice, please review Note 1075757.1,
Troubleshooting AutoInvoice for Oracle Receivables Release 11.5 Through 12

Last Review Date

September 14, 2010

Instructions for the Reader

A Troubleshooting Guide is provided to assist in debugging a specific issue. When possible, diagnostic tools are included in the
document to assist in troubleshooting.

Troubleshooting Details
1. Overview of Invoicing Rules and Accounting Rules
a. Invoicing Rules
Invoicing Rules allow you to determine when you should account/recognize the Receivable amount for invoices. You can assign
invoicing rules to invoices that you manually enter or import into Receivables through AutoInvoice.
Oracle Receivables seeded 2 Invoicing Rules, you cannot create more:

Bill in Advance: This rule allows you to recognize the Receivable amount at the start of the revenue recognition
schedule.
Bill in Arrears: This rule allows you to recognize the Receivable amount at the end of the revenue recognition
schedule.

Invoicing Rules are associated to an Invoice at the Header level, and is enabled only when Class = Invoice.
In conjunction with associating an Invoicing Rule to a transaction, you also need to associate an Accounting Rule (discussed
next).

b. Accounting Rules
Accounting Rules allow you to define when you should account/recognize the Revenue for your invoices. Accounting rules
determine the number of periods and percentage of total revenue to record in each accounting period. You can define various
accounting rules which can recognize Revenue in one or more accounting periods. Transactions entered either manually or
through AutoInvoice can use Accounting Rules for as long as they are associated to an Invoicing Rule.
Oracle Receivables seeded 1 Accounting Rule, you can create more as required by your business needs:

Immediate: This accounting rule recognizes the entire revenue for a transaction in one accounting period.

Accounting Rules are associated to an Invoice at the Line level. Once an invoice is associated to an Invoicing Rule, each of its
lines need to be associated to an Accounting Rule.
The following table summarizes details regarding Invoicing and Accounting Rules:

Rule

Controls accounting for

Seeded by Oracle

Invoicing Rule

Accounting Rule

Invoice Leve

No

Header

Yes

Lines

In Advance

Receivable

Revenue

Can users create more rules?

In Arrears

Immediate

NOTE:
If you can recognize Revenue for all of your invoice lines immediately, then there is no need to use Invoicing and Accounting

Rules.
If however, you have an invoice line for which you need to spread out the recognition of Revenue across several periods, then
you need to use Invoicing and Accounting Rules.
For example, Invoice #123 has 3 invoice lines.
Line 1 and Line 2, Revenue can be recognized immediately.
Line 3, Revenue has to be spread over 3 periods.
You would have to associate an Invoicing Rule at the header level. Doing this, enables you to enter a value in the Accounting
Rule for each line. For Line 1 and 2, you will use the seeded Accounting Rule = Immediate. For Line 3, you will use an
Accounting Rule that you have previously defined, that allocates revenue across 3 periods.

2. Setting up Invoicing and Accounting Rules

There is no additional setup required for Invoicing Rules. Receivables seeds the 2 values you can use:
In Advance and In Arrears.
For Accounting Rules, you can setup as many rules as required to cover your various business scenarios involving how you
want to recognize revenue.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Accounting Rules
The following screenshots illustrate various Accounting Rule types:
1. Seeded Accounting Rule, Immediate: This Accounting Rule is provided by Oracle. The only field you can modify here is the
Period type, and you should ensure that the value here matches the Period type used by your Ledger.
Important: If your ledger has an accounting period type that is not Month and you use AutoInvoice with Oracle Order
Management, you should update the Period field to match the same period as your accounting period type.

2. Example for Type = Fixed Schedule, with Revenue spread out evenly over 3 periods.

3. Example for Type = Variable Schedule, with first period's revenue percentage specified.

4. Example for Type = Daily Revenue Rate, All Periods

Note: There is no need to fill in the Schedule Section for Accounting Rules of this type. The schedule for such rules is provided
during data entry when you specify Rule Start Date and Rule End date or Duration. The same is true for type = Daily Revenue
Rate, Partial Periods
5. Example for Type = Specific Date, for this type of rule the dates in which to recognize revenue are hard-coded into the
schedule.

6. Example for Deferred Revenue checked.

Note: You can check the Deferred Revenue checkbox for any type of Accounting Rule. The impact of checking the Deferred
Revenue checkbox is discussed below.
Following describes each of the fields in the form:
Name: Enter a unique and descriptive name for your Accounting Rule
Description: Enter text that describes this Accounting Rule
Type: You have 4 options for Rule type

Fixed Schedule (formerly Fixed Duration), this type prorates 100% evenly across the Number of Periods you specify.
Variable Schedule (formerly Variable Duration), this type allows you to later specify, during invoice data entry, the
number of periods over which you want to recognize revenue.

The next 2 types were introduced in 11.5.10 Family Pack G via the Patch 5684129 : Partial Period Revenue Recognition
Backport Project on FP.G.
Following are some term definitions:
Daily Revenue Rate = Total Revenue / Total Number of Days across all periods
Partial Period is when the invoice exists for only part of the period as opposed to all days within the period (see example
below).

Daily Revenue Rate, All Periods, this type will use a daily revenue rate to calculate the precise amount of revenue
for all periods whether it is full or partial. Use accounting rules of this type to meet strict revenue accounting standards
which require accurate revenue recognition on a per-day basis.
Daily Revenue Rate, Partial Periods, this type is a hybrid between Fixed Schedule and Daily Revenue Rate, All
Periods. It will use a daily revenue rate to calculate the precise amount of revenue for the partial periods in the
schedule, then prorate the revenue evenly across the full periods.

Period: This corresponds to the Period types you defined in Oracle General Ledger (see Oracle General Ledger
Implementation Guide, Defining Period Types). Keep in mind that during data entry of the invoice lines, you can only use
Accounting Rules that have the same Period as your Ledger. In addition to period types you've defined you can also pick
Specific Date, which enables you to enter a specific date in the Date field in the Schedule section discussed below.
Number of Periods: Enter the number of periods you want this accounting rule to recognize revenue across.

Deferred Revenue: If you want to delay recognizing revenue, check this check box. When checked, invoices using this rule will
have its revenue deferred to an unearned revenue account, and you must later use the Revenue Accounting Management
(RAM) wizard to recognize the revenue.
Note: Invoices that use a Deferred Rule, will not appear in the Revenue Recognition Report, until Revenue is Scheduled via
the Revenue Accounting process.
Responsibility: Receivables Manager
Navigation: Control > Accounting > Revenue Accounting
Schedule Section:

Period: Specify the sequence of the Period starting with 1.

Percent: Indicate the percent of the revenue you want to recognize in this period. Total Percent across all periods
must equal 100% for Fixed Schedule types. For Variable Schedule types, you are allowed to define the percentage for
the first period, which is typically less than 100%.

Date: Enter a specific date, e.g. 10-JUN-2010, this field is only enabled if the Period you specified in the header
section is Specific Date

Notes:

If you pick Type = Fixed Schedule, the Schedule section is automatically populated for you with as many rows as you
specified in Number of Periods, and the percentage will be evenly spread across all periods to sum up to 100%.
If you pick Type = Variable Schedule, you do not need to enter any details in the Schedule Section. However, if you
want to recognize a specific percentage of revenue in the first period, you can enter Percent details for Period 1. The
remaining percentage will be spread across the remaining periods you specify during transaction data entry.

The following example from the Oracle Receivables User Guide, illustrates the differences in Revenue calculation based upon
your Accounting Rules setup:
Suppose you bill a contract for $900, which starts January 14 and ends April 13 (90 days), and the accounting period is
Monthly. In this contract period, January and April are partial periods, and February and March are full periods. This table
illustrates the various revenue recognition schedules that Receivables calculates
Daily Revenue Rate is calculated as $900 / 90 days = $10 per day.

GL Date

Period

Days in Period

Daily Revenue Rate,

All Periods

Daily Revenue Rate,

Partial Periods

Fixed Schedule

Jan 14

January

18

180

180

225

180

Feb 14

February

28

280

295

225

240

Mar 14

March

31

310

295

225

240

Apr 13

April

13

130

130

225

240

Variable Sc

Notes:
1.
2.

Daily Revenue Rate is calculated as $900 / 90 days = $10 per day.

For Daily Revenue Rate, All Periods: Revenue is a function of the number of days in the period multiplied by the Daily
Revenue Rate

3.

For Daily Revenue Rate, Partial Periods: the Daily Revenue Rate is used for the partial periods January and April. The
remaining revenue is evenly split across the full periods February and March.

4.

For the Fixed Schedule, each period gets 25% of the revenue.

5.

For Variable Schedule, the setup was defined to recognize 20% during the first period, during data entry 4 periods are
specified. 20% will be recognized in January, then the remaining 80% will be split evenly across February to April.

For more information, please review the section on Accounting Rules in the Oracle Receivables Implementation Guide

3. Using Invoicing and Accounting Rules

Invoicing and Accounting rules are used for Invoices only. When crediting an invoice with rules, a credit memo inherits the
Invoicing and Accounting rules from the Invoice.You specify these values via the Transactions form, when you do manual data
entry of invoices, or you pass in the data associated to these rules via AutoInvoice in the RA_INTERFACE_LINES_ALL table.

a. Transactions form
Responsibility: Receivables Manager
Navigation: Transactions > Transactions
When you create an Invoice, for which you want to specify the timing of the recognition of Receivable and Revenue, you should
associate an Invoicing Rule at the Header Level.
Enter the data for the invoice, and then make sure you navigate to the Invoicing Rule field, the data entered here is limited to 3
choices:

In Advance: Recognizes the Receivable for this invoice on the GL date associated to the first period of your revenue
schedule (see below)
In Arrears: Recognizes the Receivable for this invoice on the GL date associated to the last period of your revenue
schedule (see below)
null: No Invoicing Rule, recognizes revenue on the GL date of the invoice.

Notes:
You must pick an Invoicing Rule if you want to associate an Accounting Rule in the Lines window. Make sure you enter data in
the Invoicing Rule field before you navigate away from the Header page, you will not be allowed to make changes to Invoicing
Rule once you move into the Lines page.
After entering the header information, navigate to the Lines form by clicking on the Lines button. You need to provide an
Accounting Rule for all lines of this invoice in the Rules tab.

Enter an Accounting rule, a Duration, and the First Date to start recognizing revenue for this invoice line.
Notes:

If the period type you specified does not match the period assigned to this ledger, or
If your accounting rule spans multiple GL periods and not all the periods have already been defined, you will get an
error:
APP-AR-11228: Please define all periods in which revenue is to be recognized or credited. Note that revenue cannot
be recognized or credited in closed and close pending periods.
For additional details on this error, please review Note 455691.1, Error: Please Define All Periods In Which Revenue Is
To Be Recognized Or Credited (AutoInvoice and Transaction Workbench)

Once an Invoice is associated to an Invoicing Rule at the header level, all lines of the invoice need to be associated to
an Accounting Rule. If you do not need to specify a schedule for Revenue recognition for a particular invoice line, you
can use the seeded Immediate accounting rule to recognize revenue immediately in one period.

If you enter an accounting rule whose type is Daily Revenue Rate, All Periods or Daily Revenue Rate, Partial Periods,
enter a rule start and end date. Do not enter a duration.

If you enter a accounting rule whose type is Variable Schedule, enter the number of periods over which you want to
distribute revenue for this invoice line in the Duration field.

If you enter an accounting rule whose type is Fixed Schedule, Receivables displays the default duration for this rule.

For additional information, please review the Oracle Receivables User's Guide, To enter an invoice with rules.

b. AutoInvoice

When interfacing data via AutoInvoice, the feeder system will handle populating the fields required to pass on the Invoicing and
Accounting Rules.
If however, you are populating data into the interface table manually, Receivables will look at certain fields to get Invoicing and
Accounting rules information.
Depending upon your transaction source setup, Note 1068008.1, Creating Transaction Sources Used For AutoInvoice, in the
Accounting Information tab, you indicate whether you will be passing Id or Value. Depending on what value you specify, the
following fields in RA_INTERFACE_LINES_ALL need to be populated.

Field Name

Possible values
Value in RA_RULES for seeded data:

INVOICING_RULE_ID

-2 (In Advance)

-3 (In Arrears)

Value in RA_RULES for seeded data:

INVOICING_RULE_NAME

Advance Invoice

Arrears Invoice

ACCOUNTING_RULE_ID

value from RA_RULES.RULE_ID

ACCOUNTING_RULE_NAME

value from RA_RULES.NAME

For a Variable Schedule Accounting Rule, you need to populate this with the number of
periods

For Daily Revenue Rate rule, enter a value here if you do not provide a RULE_END_DATE

ACCOUNTING_RULE_DURATION

RULE_START_DATE

Required for Daily Revenue Rate rules

RULE_END_DATE

for Daily Revenue Rate rules, provide an end date if you did not provide a value for or duration

For an example of a script to populate the interface table to import an invoice with rules, please review Note 820254.1, Sample
Script to Import Invoice with Rules using Autoinvoice

4. Underlying table information for Invoicing and Accounting Rules

The information presented in this section is not intended to provide a comprehensive list of data model and configuration, but
rather just highlights information pertaining to Invoicing and Accounting rules. The data shown is for the invoice created in step
3.a. above.
The following shows what fields in the table RA_CUSTOMER_TRX_LINES_ALL, keep track of Invoicing and Accounting Rule
information:
Field Name

Description

INVOICING_RULE_ID

Contains the Invoicing rule id, value = -2 or -3

ACCOUNTING_RULE_ID

Contains Accounting rule id

ACCOUNTING_RULE_DURATION

Contains the number of periods

AUTORULE_DURATION_PROCESSED Upon creation of an invoice with rules, this field is null. When the Revenue Recognition process

this field will get incremented to reflect the number of periods for which revenue has already bee
recognized.

AUTORULE_COMPLETE_FLAG

Upon creation of an invoice with rules, this field is N. When the Revenue Recognition process is
completes processing all periods for this line, this field will get updated to null.

RULE_START_DATE

Contains the start date

RULE_END_DATE

Contains the end date (if provided)

Following shows RA_CUSTOMER_TRX_LINES_ALL data using the following select, column aliases were used to compress
the data displayed:

select customer_trx_id trx_id, customer_trx_line_id line_id, accounting_rule_id

rule_id, accounting_rule_duration duration, autorule_duration_processed processed,
autorule_complete_flag complete, rule_start_date start_dt, rule_end_date end_dt
from RA_CUSTOMER_TRX_LINES_ALL
where customer_trx_id = 526646;
The values in AUTORULE_DURATION_PROCESSED (null) and AUTORULE_COMPLETE_FLAG (N) indicate that Revenue
Recognition has not yet run for this invoice.

After completing the invoice, clicking on the Distributions button will show you the current state of the distributions for the
invoice. The following screenshot shows the distributions for the invoice in 3.a. above. The presence of Unearned Revenue
distributions indicates this invoice uses the Invoicing rule = Advanced Invoice.

From the back-end, the data in RA_CUST_TRX_LINE_GL_DIST is as follows. The distributions where GL_DATE is null are
known as "model" rows. These distributions will be used as templates by the Revenue Recognition program and will be
expanded to reflect the actual distributions containing GL_DATE, AMOUNT and PERCENT values across the multiple periods
after the Revenue Recognition process is run.

Note: After creating and completing an invoice in the transactions form, you will only see model rows to be used as templates to
create the complete set of distributions. You will not see the complete set of distributions associated to the Accounting Rule
until Revenue Recognition is run against the Invoice.
Following shows changes in the data after running Revenue Recognition:
Responsibility: Receivables Manager
Navigation: Control > Accounting > Revenue Recognition
data in RA_CUSTOMER_TRX_LINES_ALL, changes to:

The values in AUTORULE_DURATION_PROCESSED (=ACCOUNTING_RULE_DURATION) and

AUTORULE_COMPLETE_FLAG (null) indicate that Revenue Recognition has completed processing this invoice.
data in RA_CUST_TRX_LINE_GL_DIST_ALL expands to:

Rows 7-36 were created by the Revenue Recognition process.

Row 33, shows the Receivable amount for the entire invoice was recognized in full on 04-JUN-10. This is the earliest date
associated with the rules of the invoice lines. It uses the earliest date, because the Invoicing Rule is In Advance. If the Invoicing
rule was In Arrears, it would use the latest date instead.
Rows 35-36, show that Revenue is lodged in the Unearned Revenue GL account because the Accounting Rule spreads out the
recognition of Revenue across multiple periods. Over each period, a fraction of the Revenue is taken out of Unearned Revenue
and moved into Revenue. This is handled by the pairs of REV and UNEARN rows 7-32.
For CUSTOMER_TRX_LINE_ID = 822552 (which had Accounting Rule, Monthly, 1 Year), 12 pairs of REV and UNEARN rows
were created to recognize Revenue across 12 periods starting from 04-JUL-10.
For CUSTOMER_TRX_LINE_ID = 822553 (which had Accounting Rule, Immediate), 1 pair of REV and UNEARN rows was
created to recognize Revenue immediately in one period starting from 04-JUN-10.
A discussion of Invoicing and Accounting Rules cannot be isolated from the Revenue Recognition process, because it is

Revenue Recognition that requires the definition of these rules. However, the above is just to illustrate the concept of Invoicing
and Accounting rules. For a more detailed discussion of Revenue Recognition, please review Note 1121944.1, Understanding
and Troubleshooting Revenue Recognition.

5. Troubleshooting Invoicing and Accounting Rules

The following highlights issues that have been reported by customers in the past, regarding Invoicing and Accounting rules.

a. Rule Defaulting issues

i. Invoicing and Accounting Rule from setup for an Inventory Item
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Items > Define items
In the Invoicing Tab, you can setup an Accounting Rule and an Invoicing Rule.
The values defined here are used to default the rules for invoice lines that are interfaced from Order Management (OM).
In the transactions form, when manually creating an invoice, you first need to choose an Invoicing rule at the header level, so
that when you navigate to the Lines form and use the same inventory item, the form will be able to default the Accounting rule
you set up.
If you do not manually choose an Invoicing Rule first, the form cannot default the Accounting rule.
ii. Invoicing Rule in transactions form
There is no feature to default the value of the Invoicing Rule when entering invoices manually using the Transactions form.

b. Unexpected behavior when using the seeded Accounting Rule = Immediate when
interfacing Sales Orders from Order Management (OM)
In Release 11.5, majority of sales orders imported from OM had the seeded Immediate rule (ACCOUNTING_RULE_ID = 1)
associated to it. This means that practically 100% of all invoices from OM would have to pass through Revenue Recognition, to
process an Immediate rule which was similar to not having any rule at all.
In order to avoid the extra overhead on the Revenue Recognition process, OM built in logic to null out the Invoicing and
Accounting rule from a Sales order if it was associated to the seeded Immediate Rule. This removed the burden on Revenue
Recognition. However, it caused Sales Orders meant to be grouped into one invoice to split into 2 or more invoices due to the
Grouping Rules associated to Accounting and Invoicing Rules.
To get around this issue, if you want to really associate an Immediate rule to your Sales Order, you are advised to create a
user-defined Accounting Rule, with attributes identical to the seeded rule, then use this new rule in OM. This would prevent the
logic that wipes out the rules from kicking in, and your sales order will be interfaced with the Invoicing and Accounting Rules
intact, and would be grouped into one invoice as expected.
Notes:
In Release 11.5.10, the code was modified to retain the ACCOUNTING_RULE_ID value of 1 instead of stripping its value to
null. Behavior was changed in OEXPINVB.pls 115.221.11510.33, this version is available via the Patch 5853601: January
2007, Order Management (11.5.10) Cumulative Patch
In Release 12, this is no longer an issue. OM has removed the logic that wipes out the Invoicing and Accounting Rule for Sales
Orders that use seeded Immediate rule.
This change in behavior impacts the volume of data reported in the Revenue Recognition Report. A larger set of transactions
are picked up by this report because almost all Invoices from OM are now passed in with rules.

c. Explanation of changes to Transaction and GL date in transaction form when using

Bill in Arrears

When entering an invoice using Invoicing Rule In Arrears, and a revenue schedule spread over several periods, expect the GL
Date you entered at the Header section of the Invoice to be replaced upon saving the Invoice.
In Arrears means that the Receivable account will be hit on the last period in which you recognize revenue. As such, the form
will wait for you to enter the number of periods, and then it will move the GL Date to the last period to reflect that is when the
Receivable will be posted to the General Ledger.
For Example:
1.
2.

create an Invoice, set Date and GL Date = 07-JUN-2010

associate Invoicing Rule = In Arrears

3.

go into the Lines section and pick an Accounting rule spread over 3 months, Rule Start Date = 07-JUN-2010. This
means revenue will be recognized on 7-JUN, 7-JUL and 7-AUG.

4.

Upon saving the invoice, you will get 2 pop-up windows:

APP-AR-11426: Transaction Date has been set to 07-AUG-2010.
APP-AR-11425: GL Date has been set to 06-AUG-2010.

This indicates that form logic has altered the Transaction and GL date to use the last period's date, to conform to the
behavior of Billing In Arrears. The pop-up windows are purely information, the form just wants to call your attention that
it has changed values that you entered manually. If you do not agree with the new Transaction and GL date, you are
free to change it back to the original value, or some other value based upon your business requirements.

d. Updating Invoicing and Accounting Rules

During data entry of an invoice, please note that Invoicing rules cannot be updated once you have navigated away from the
Header section of an invoice. Even prior to saving the invoice, once you move away from the Header form, the field is protected
from any updates.
Accounting rules can be updated even after an invoice is saved and completed, for as long as the Revenue Recognition
program has not yet processed the invoice. Once an invoice is picked up for Revenue Recognition processing, the rule field
becomes protected against updates.

e. When choosing an Accounting rule get error

You are attempting to associate an Accounting rule to one of your invoice lines and are hitting the error:
APP-AR-11228: Please define all periods in which revenue is to be recognized or credited.
This error is raised when:

The Period type associated to your accounting rule does not match the period type of your Ledger.
1. Check the period type associated to your Ledger. Do the following to check:
In release 11.5:
Responsibility: General Ledger, Super User
Navigation: Setup > Financials > Books > Define

In release 12.0:
Responsibility: General Ledger, Super User
Navigation: Setup > Financials > Accounting Setup Manager > Accounting Setups
Search on the Ledger Name
Click on the icon Update Accounting Options
towards bottom of screen, look for Setup step with the description: Define and update the journal processing options
for your ledger, and click on the pencil icon to update.
In the Accounting Calendar section, check the value in Accounting Calendar and Period Type

2. Check the definition of the Accounting Rule

Responsibility: Receivables Manager
Navigation: Setup > Transactions > Accounting Rules

Query the Accounting rule used, and check that the value in Period Type for the Ledger, matches the value of the
Period in your Accounting Rules definition.

The periods in which your accounting rule is attempting to schedule revenue in do not yet exist in the Calendar. Check
that you have defined the periods the Revenue Schedule is attempting to use.
Responsibility: General Ledger User
Navigation: Setup > Financials > Calendars > Accounting

For additional details on this error, please review Note 455691.1, Error: Please Define All Periods In Which Revenue Is To Be
Recognized Or Credited (AutoInvoice and Transaction Workbench)

f. Using Daily Revenue Rate type of periods raises error

You have defined a new Accounting Rule with the type Daily Revenue Rate, All Periods or Daily Revenue Rate, Partial Periods.
In the transactions form, you pick this accounting rule and hit the error:
FRM-40207: Must be in range 1 to ...
This issue is due to mismatched Period types between the Accounting rule and the Ledger. Please use the steps detailed in
5.e. to troubleshoot the problem.

g. Unexpected Percentages when using an Accounting rule spread over multiple

periods
Differences between the actual percentages used in an invoice's distribution versus the percentage defined in the Accounting
rule are attributed to Rounding issues. The logic does the following:
For example:
1.
2.

Calculate the Revenue amount to recognize for the period as line amount * percentage
This amount will then be rounded to the minimum accountable unit, e.g. 2 decimal places

3.

The percentage associated to this amount will then be re-calculated to account for the changes due to
rounding.

4.

The distribution will then be created using the amount in step1 and the percentage in step 3.

For example:
Accounting Rule is defined as follows:
Period 1
= 4.1669
Period 2 -12 = 8.3333
Period 13 = 4.1668

An Invoice has line amount = 23.95

Calculation for Period 1: 23.95 * 4.1669 = 0.9980, this is rounded up to 1.00
Then the percentage associated to 1.00 is recalculated: 1.00 * 100 / 23.95 = 4.1754
Calculation for Period 2-12: 23.95 * 8.3333 = 1.9958, this is rounded up to 2.00
Then the percentage associated to 2.00 is recalculated: 2.00* 100 / 23.95 = 8.3507
In the last period, the sum of all amounts must match the invoice line amount, and the total of all percentages must be 100.00
Calculate Revenue schedule so far: 1.00 (for Period 1) + 22.00 (for Period 2-12) = 23.00
Remaining Amount: 23.95 - 23.00 = 0.95
Calculate the Percentage schedule so far: 4.1754 (for Period 1) + 91.8577 (for Period 2-12) = 96.0331
Remaining Percentage = 100.00 - 96.0331 = 3.9669
The distributions for this invoice line are then:
Period 1
: amount = 1.00, percentage = 4.1754
Period 2-12 : amount = 2.00, percentage = 8.3507
Period 13 : amount = 0.95, percentage = 3.9669
The logic puts a precedence on the amount calculated, and then determines the percentage associated to that amount. Also,
Rounding amounts plays a factor in explaining the difference.

h. Issues with dates: Transaction or GL date

i) Variable Accounting rule with over 50 periods
If you have a variable accounting rule that span over 50 periods, and a review of revenue distributions created by Revenue
Recognition shows that the first 49 periods used correct GL dates, but the rest of the distributions after the 49th period all use
the GL date for the 50th period, then you may be hitting an issue wherein the seeded data associated to Invoicing Rule is
incomplete.
To address this issue, the script populating RA_RULE_SCHEDULES, in $AR_TOP/patch/115/sql/arsdrls.sql needs to be run
manually in SQL*Plus.
If the following select returns a count of 4000, then the script ran successfully:

select count(*) from ra_rule_schedules where rule_id = -1;

ii) Other GL date issues

If you encounter issues with the GL dates associated to distributions of an Invoice with rules, please take a review Note
201241.1, Troubleshooting AutoInvoice Date Derivation: GL Date, Invoice Date, Due Date, Ship Date, Billing Date, Rule Date.

i. Unable to update fields associated to Daily Revenue Rate in Interface Lines form
When attempting to make modifications or corrections to the Interface Lines form you note that you do
not have access to RULE_END_DATE, or in the Accounting Rules field, you do not see rules associated
with the types: Daily Revenue Rate, All Periods or Daily Revenue Rate, Partial periods.
Ensure you have the latest ARXAIEXP.fmb (see details in section 6 below).

j. Please supply both an invoicing rule and an accounting rule for this invoice.
This error is encountered in the Autoinvoice Execution Report, if either the Invoicing Rule or the Accounting Rule for an invoice
that uses rules is not specified.
This is due to interface data wherein you did not provide values for both the Invoicing and the Accounting Rule, and an error is
raised because both values are required.

Check your transaction source setup to determine whether you indicated that you would provide either value or Id, then check
the data in RA_INTERFACE_LINES_ALL to ensure that you populated the right fields with proper data.
For more information on Transaction Sources, please review Note1088132.1, Troubleshooting Transaction Batch Sources For
AutoInvoice

k. The valid values for credit method for accounting rule are: PRORATE, LIFO and
UNIT
When passing interface data for a Credit Memo against an Invoice with Rules, you need to provide a value in
RA_INTERFACE_LINES.CREDIT_METHOD_FOR_ACCT_RULE, to indicate how you want the credit to impact the revenue
schedule of the invoice. Valid values are:

PRORATE, will split up the credit amount equally across all revenue periods.
LIFO, will apply the credit amounts starting from the last period.

UNIT, the credit amount will be based on quantity associated to each line.

If this field was populated incorrectly, you can use the Interface Lines form to clear out the value in this field.
Responsibility: Receivables Manager
Navigation: Control > AutoInvoice > Interface Lines
Alternatively, you can run an update statement like the following to correct the data, you may also change the where condition
to use the INTERFACE_LINE_ATTRIBUTE* fields to identify the specific row you want to fix:

Update RA_INTERFACE_LINES_ALL
Set CREDIT_METHOD_FOR_ACCT_RULE='&enter_proper_value'
Where nvl(INTERFACE_STATUS, '~') != 'P'
and SALES_ORDER = &sales_order_with_error ;

6. Code Bugs
When dealing with issues related to Invoicing or Accounting Rules, it is always beneficial to ensure that you are in the latest
code to avoid hitting issues that have already been addressed by code fixes.
Make sure you are on the latest file version available for the following files.
Note:

Patch numbers provided may be for an issue not related to Invoicing or Accounting rules, however the patch contains
the latest version of the file that impacts rules.
Patches listed are the latest available as of Last Update date of this note.
Some patches in Release 12 will not be available for download in My Oracle Support, please contact support for
assistance.

Filename

OEXPINVB.pls

Description

When interfacing from Order

Management, this file handles
what value is passed in for
ACCOUNTING_RULE_ID and
INVOICING_RULE_ID.

Release 11.5
Mini-pack version
number patch
number

Release 12
Point release
version number
patch number

11.5.10:
12.0:
115.221.11510.33 120.42.12000000.2
5853601
baseline
12.1:
120.53.12010000.19

The version listed here is when

logic was changed to stop
nulling out the value in these
fields when the seeded
accounting rule = Immediate is
used.

baseline

12.0:
120.48.12000000.20
7229913:R12.AR.A

ARXLAEVB.pls

handles creation of accounting

events

n/a

ARXTWLIN.pld

Forms library handling logic for

Transaction lines

12.0:
AR.O:
115.103.15104.27 120.56.12000000.14
8310721:R12.AR.A
9249157

RAXSURUL.fmb Accounting Rules form

ARXAIEXP.fmb Interface Exceptions form

AR.O:
115.19.15104.3
8545749

AR.O:
115.45.15104.6
9578708

12.0:
120.6
baseline
12.0:
120.22.12000000.13
8557277:R12.AR.A
12.1:
120.25.12010000.3
6678700

7. Still Have Questions?

To discuss this information further with Oracle experts and industry peers, we encourage you to review, join or start a
discussion in the My Oracle Support Receivables Community.
To provide feedback on this note, click on the Rate this document link.

If you feel that a Service Request is needed, please be sure to provide the information listed below.

If you are encountering the issue in AutoInvoice:

o Are you able to replicate the issue with a manual invoice created via the Transactions Workbench?

Include the AutoInvoice Exception Report (if any).

Include the AutoInvoice Concurrent Process log file (see Note 1079666.1).

Enable and include the FND debug log file generated by AutoInvoice (see Note 1079666.1).

Oracle Diagnostics - Oracle Receivables AutoInvoice Interface Data Collection Test - this will show what your
interface data looks like

Include output from the following Oracle Diagnostics:

Oracle Receivables Transaction Data Setup Test - this will show what the created transaction looks like.

For information on Oracle Diagnostics, please review the Diagnostic catalogs for your release as noted
below:

Release 11.5: see Note 179661.1, E-Business Suite Diagnostics 11i Test Catalog
Release 12.x: see Note 421245.1, E-Business Suite Diagnostics References for R12

Once you have identified your release, locate the note for the specific diagnostic you would like to run.
For example, in 12.0.6, Note 732203.1, R12.0.6+ : Oracle Receivables AutoInvoice Interface Data
Collection Test.

References
NOTE:1067402.1 - AutoInvoice Setup for Release 12: A Case Study Using a Simple Script
NOTE:1075757.1 - Troubleshooting AutoInvoice for Oracle Receivables Release 11.5 Through 12
NOTE:1088132.1 - Troubleshooting Transaction Batch Sources For AutoInvoice and Transactions Workbench
NOTE:1121944.1 - Understanding and Troubleshooting Revenue Recognition in Oracle Receivables
NOTE:179661.1 - E-Business Suite Diagnostics 11i Test Catalog
NOTE:201241.1 - Troubleshooting AutoInvoice Date Derivation: GL Date, Invoice Date, Due Date, Ship Date, Billing Date, Rule
Date
NOTE:421245.1 - E-Business Suite Diagnostics References for R12