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Accounts Receivables: Order To Cash Cycle (O To C Cycle) :-Sales Order Booking Pick Release Ship

Accounts receivables is used to record customer transactions and receipts. Key aspects of accounts receivables include the order to cash cycle, defining item validation between order management and accounts receivables, setting system options, opening accounting periods, defining payment terms, statement cycles, remit to addresses, collectors, application rule sets, and customer profile classes to classify customers.

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115 views

Accounts Receivables: Order To Cash Cycle (O To C Cycle) :-Sales Order Booking Pick Release Ship

Accounts receivables is used to record customer transactions and receipts. Key aspects of accounts receivables include the order to cash cycle, defining item validation between order management and accounts receivables, setting system options, opening accounting periods, defining payment terms, statement cycles, remit to addresses, collectors, application rule sets, and customer profile classes to classify customers.

Uploaded by

prabhu181
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Accounts Receivables

Accounts Receivables is used to record the any type of customer transactions and
Receipts accounts. This is coming into organization.

Order to Cash Cycle (O to C cycle):-Sales Order BookingPick ReleaseShip


ConfirmAR InvoiceReceiptTransferred to GL.

AR Integration:-
AROMAPPACMGL
Define the Item Validation:-It’s a common setup between the OM and AR Module
Navigation:-Setup>System Parameter>Values
Log into the Order Management

Select the Operating Unit Name


Scroll down and Place cursor on the “Item Validation Organization”
Select the Inventory Organization Name
Click on the “OK”

System Options:-System options are using to controlling the features at OU level.


Step1:-Define the System Options
Navigation:-Setup>System>System Options
By default OU name will come
Select the Primary Ledger Name
Ente the Account details.
Enable the “Automatic Journal Import”
Click on the “Transaction and Customers”
Some of the check by default enabled.
Enable the “Purge Interface Table”
Enter the “Tunning Segments”
Auto Invoice:-It’s used to import the data from Order Management (or) Legacy System.
Tuning Segments:-It will be used in the auto Invoice program segments. Which are
containing much data will select as a tuning segment.Tunning segment data will be
stored in the buffer tables. So that when we run the auto invoice import program. The
data will be retrieved.

Click on the “Miscellanious”


Enable the “Allow unearned Discounts”
Select the default country “India”
Change the Source of teritory “Bill to Site”
Split Amount:-It’s used as a parameter in the collection indication report. This was used
to identify the performance of the collector.
Discount Basis:-It’s used to determine the base amount for discount collection days in
day’s sales outstanding collection
Source of territory:-It is used to default the territory information into invoice window.

Save and Close.

AR Key Flex Fields:-There are two key flex fields in AR Module


1. Sales Tax Location Flex Field
2. Territory Flex field

1. Sales Tax Location F.F:-It’s a mandatory F.F.Which is used to calculate the Sales Tax.
Step1:-Define the Sales Tax F.F
Navigation:-Setup>Financial>Flex Field>Key>Segments
Click on the “F11”
Enter the Application Name
Enter the Flex Field Title
Click on the “Ctr+F11”

Click on the “Segments”


We can use the excting Sales Tax location strucuture also.we can create new one also it
required.

2. Teritory Flex Field:-It’s an optional F.F.Which are mainly two purposes.


1. To identify the Sales where it is taking place
2. To capture the Revenue each location wise.
Step1:-Define the Territory Flex Field
Navigation:-Setup>Financial>Flex Field>Key>Segments
Query the Territory Flex Field structure.
Note:-We can’t create the new territory structure,we have to use the existing stucture
only,but we can add the segments.
Click on the “Segments”

Un-freeze the structure then add the segments,if required.


Open AR Periods:-
Navigation:-Control>Accounting>Open/Close Periods

Change the Status from “Not Opened” to “Opened”

Save and close.


Payment Terms:-Payment terms are used determine the payment scheduled date for
Invoice, when customer has to pay the amount.
Step1:-Define the payment term
Navigation:-Setup>Transaction>Payment Terms
Enter the Payment term name and Description
Enable the “Allow discount on partial payments”
Enter the discount basis
Select the Installment Options
Enter the 30 Days.
If organization wants give discount to customer,click on the “Discounts”

If customer paid full/partial amount with in 10days,10% discount is appicable.


Save and Close
Statement Cycle:-Statement cycle will determine the when to send statement to the
customers.
Step1:-Define the Statement cycles
Navigation:-Setup>Print>Statement Cycle

Enter the Name and Description


Select the Inverval
Select the operating unit
Enter the statement date

Note:-If we want to skip any month enable the check box.


Save and Close.

Remit to Address:-This is the organization address to the Receipts


Step1:-Define the Remit to Address
Navigation:-Setup>Print>Remit to Address

Click on the “Create Remit To Address”


Enter the country name
Enter the address of company
Click on the “Apply”

Enter the Country Name “India”


Click on the “GO”
Click on the “Create”

Enter the country name


Enter the State name
Click on the “Apply”
Close the form.

Collectors:-The person who is collecting money from the customers is called collectors.
Step1:-Define the Collectors
Navigation:-Setup>Collections>Collectors
Enter the Collector Name and Description.

Save and close.


Application Rule Set:-Application rule set will determine to apply the receipts amount
against various invoices componends.The Invoice components are Item or Line or Tax or
Freight and Financial Charges.
Step1:-Define the Application Rule Set.
Navigation:-Setup>Receipts>Application Rule Sets
Enter the Name and description
Enter the Seq and Rule
Select the Type and Tax Treatment.

Enter the Rules and place the cursor on Line.


Type should be Line and select the Tax Treatment
Save it.

Enter the Rules and place the cursor on Freight.


Type should be Freight and select the Tax Treatment
Save it.

Enter the Rules and place the cursor on Charges.


Type should be Charges and select the Tax Treatment
Save it.
Customer Profile Class:-Profile classes are used to classify the customers based on the
certain parameter. Customers can be certified by following ways.
1. Good Customers 2.Average Customers 3.Below average Customers
Step1:-Define the Customers Profile Class
Navigation:-Customer>Profile Classes

Enter the Name and Description


Select the payment term
Select the Cycle
Select the Collector
Click on the “Profile Class Amounts”

Selec the Currency name


Enter the credit limit
Enter the Min Receipt Amont
Enter the Min Statement amount
Enter the Tolerance amounts

Save it.
In same mannor add some more currencies also.

Save and close the form.

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