Oracle Applications - EBS - Accounting Entries

SR NO PROCESS LINK
1 Back To Back B2B!A1
2 Drop Ship DP!A1
3 SO- Work Order SOW
4 Inter Org INTER_ORG
5 ISO ISO
6 Procure to Pay P2P
7 Receipt To Cash O2C
8 AR Adjustments ADJ
9 Standard Cost Update STD COST
10 Miscellaneous Receipt MISC REC
11 Miscellaneous Payments Misc.Payments
12 Manual Work Order Creation & Completion MOW
13 Internal Sales Order Internal Sales Order
14 Back to back Order Back to back Order
15 Drop Ship Order Drop Ship Order
16 Revenue Management Revenue Management
17 Payment Manager Payment Manager
18 R12 SLA setup R12 SLA setup
19 MOAC MOAC
Version : 1.0
12-Jan-09
 BACK TO BACK

SR.NO PARTICULARS DR CR SPL NOTES

I Back to Back

1 Sales Order Entry

No Accounting

2 Creation of Requisition
No Accounting

3 Creation of Purchase Order

No Accounting

4 Receipt
Receiving A/c 100 At PO Price
AP Accrual A/c 100 At PO Price

5 Devlivery
Raw Material Sub Inventory A/c 80 At Standard Cost
PPV A/c 20 Diff between PO - Stnd
Receiving A/c 100 At PO Price

6 Reservation
No Accounting

7 Picking
Staging Sub Inventory A/c 80 At Standard Cost
Sub Inventory A/c 80 At Standard Cost

8 Shipping
COGS 80 At Standard Cost
Staging Sub Inventory A/c 80 At Standard Cost
BACK TO BACK

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Receiving Option Setup ORG

Inventory Org Setup ORG

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Inventory Org Setup ORG
Receiving Option Setup ORG

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted

Item Org Level A/c willl get defaulted, OMTT

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
 DROP SHIP

SR.NO PARTICULARS DR CR SPL NOTES

I Drop Ship

1 Sales Order Entry

No Accounting

2 Creation of Requisition
No Accounting

3 Creation of Purchase Order

No Accounting

4 Receipt
Receiving A/c 100 At PO Price
AP Accrual A/c 100 At PO Price

5 Devlivery
Raw Material Sub Inventory A/c 80 At Standard Cost
PPV A/c 20 Diff between PO - Stnd
Receiving A/c 100 At PO Price

6 Reservation
No Accounting

7 Picking
Staging Sub Inventory A/c 80 At Standard Cost
Sub Inventory A/c 80 At Standard Cost

8 Shipping
COGS 80 At Standard Cost
Staging Sub Inventory A/c 80 At Standard Cost
DROP SHIP

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Receiving Option Setup ORG

Inventory Org Setup ORG

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Inventory Org Setup ORG
Receiving Option Setup ORG

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted

Item Org Level A/c willl get defaulted, OMTT

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
 SO-WORKORDER FLOW

SR.NO PARTICULARS DR CR SPL NOTES

1 At the time of material issue

WIP Material A/c 100

Subinventory material A/c 100

2 Resource Valuation

WIP Resource valuation A/c 100

Resource Absorption A/c 100

3 Overhead Cost (Material)

WIP Material ovehead A/c 10

Sub inventory material overhead A/c 10

4 Overhead Cost (Indirect)

WIP Overhead A/c 100
Overhead absorption A/c 100

5 WIP Job Completion

Stagging/Completion Sub-inventory A/c Std Cost

WIP Material A/c
WIP Resource valuation A/c
WIP Material ovehead A/c
WIP Ooverhead A/c
WIP Material Variance A/c Diff between Actual - STD
WIP Resource Variance A/c Diff between Actual - STD
WIP Material Variance A/c Diff between Actual - STD
WIP Ooverhead Variance A/c Diff between Actual - STD

5 Picking
Staging Sub Inventory A/c 100 At Standard Cost
Sub Inventory A/c 100 At Standard Cost

6 Shipping
COGS 100 At Standard Cost
Staging Sub Inventory A/c 100 At Standard Cost
WORKORDER FLOW

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

WIP Class
Org/Subinventory

WIP Class
Resource Defination Form

WIP Class
Org/Subinventory

WIP Class
Overheads Defination Form

Org/Subinventory
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class
WIP Class

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted

Item Org Level A/c willl get defaulted, OMTT

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
 INTER ORG/INT

SR.NO PARTICULARS DR CR
1 FOB Point is set to Receipt without Charges & Freight - Using Transaction Type - Intransit

Entry at the time of ISSUE

Intransit Inventory A/c ( Sending Org ) 100
Sub Inventory A/c ( Sending Org ) 100

Entry at the time of RECEIPT

Inter–Organization Receivable( Sending Org ) 100
Intransit Inventory A/c ( Sending Org ) 100
Sub Inventory A/c ( Receiving Org ) 100
Inter–Organization Payable ( Receiving Org ) 100

2 FOB Point is set to Receipt with Charges & Freight - Using Transaction Type - Intransit

Entry at the time of ISSUE

Intransit Inventory A/c ( Sending Org ) 100
Sub Inventory A/c ( Sending Org ) 100

Entry at the time of RECEIPT

Inter–Organization Receivable( Sending Org ) 100
Intransit Inventory A/c ( Sending Org ) 100
Inter–Organization Receivable( Sending Org ) 15
Freight Expense A/c ( Sending Org ) 15
Inter–Organization Receivable( Sending Org ) 10
Inter–Org. Transfer Credit ( Sending Org ) 10
Subinventory A/C (Receiving Org) 100
Purchase Price Variance(Receiving Org) 25
Inter–Organization Payable (Receiving Org) 125

3 FOB Point is set to Shipment without Charges & Freight - Using Transaction Type - Intransit

Entry at the time of ISSUE

Inter–Organization Receivable (Sending Org) 100
Sub Inventory A/c ( Sending Org ) 100
Intransit Inventory A/c (Receiving Org) 100
Inter - Organization Payable (Receiving Org) 100

Entry at the time of RECEIPT

Sub Inventory A/c (Receiving Org) 100
Intransit Inventory A/c (Receiving Org) 100

4 Direct Inter–Organization Transfer without FOB being Receipt and without transfer credit and freight

Inter–Organization Receivable (Sending Org) 100

Sun Inventory A/c (Sending Org) 100
Sub Inventory A/c (Receiving Org) 100
 Inter - Organization Payable (Receiving Org) 100

5 Direct Inter–Organization Transfer with FOB being Receipt with transfer credit and freight

Entry at the SOURCE

Inter–Organization Receivable (Sending Org) 120
Sub Inventory A/c (Sending Org) 100
Inter–Org. Transfer Credit ( Sending Org ) 10
Freight Expense A/c ( Sending Org ) 10

Entry at the DESTINATION

Sub Inventory A/c (Sending Org) 100
Purchase Price Variance (Receiving Org) 20
Inter - Organization Payable (Receiving Org) 120

6 If the Standard Cost is different in Sending & Receving Org

Entry at the time of ISSUE

Intransit Inventory A/c (Sending Org) 100
Sub Inventory A/c (Sending Org) 100

Entry at the time of RECEIPT

Sub Inventory A/c (Receiving Org) 120
Inter - Organization Payable (Receiving Org) 100
Purchase Price Variance (Receiving Org) 20
 INTER ORG/INTERNAL SALES ORDERS

SPL NOTES ACCOUNT IS PULLED SPECIFIC

At Standard Cost Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG

At Standard Cost Shipping Network ORG

At Standard Cost Shipping Network ORG
At Standard Cost Sub-inventory Material A/c Setup ORG
At Standard Cost Shipping Network ORG

At Standard Cost Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG

At Standard Cost Shipping Network ORG

At Standard Cost Shipping Network ORG
Shipping Network ORG
At Transaction Level
Shipping Network ORG
Shipping Network
At Standard Cost Sub-inventory Material A/c Setup
Shipping Network
Shipping Network ORG

At Standard Cost Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG
Shipping Network ORG
Shipping Network ORG

At Standard Cost Sub-Inventory Material A/c Setup ORG

At Standard Cost Shipping Network ORG

r credit and freight

At Standard Cost Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG
At Standard Cost Sub-inventory Material A/c Setup ORG
At Standard Cost Shipping Network ORG

Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG
Shipping Network ORG
At transaction level ORG

At Standard Cost Sub-inventory Material A/c Setup ORG

Shipping Network ORG
Shipping Network ORG

At Standard Cost Shipping Network ORG

At Standard Cost Sub-inventory Material A/c Setup ORG

At Standard Cost Sub-inventory Material A/c Setup ORG

Shipping Network
Shipping Network
OPTION AVAILABLE
 PROCURE TO PAY

SR.NO PARTICULARS DR CR SPL NOTES

1 Creation of Requisition
No Accounting

2 Creation of Purchase Order

No Accounting

3 Receipt
Receiving A/c 100 At PO Price
AP Accrual A/c 100 At PO Price

4 Devlivery
Raw Material Sub Inventory A/c 80 At Standard Cost
PPV A/c 20 Diff between PO - Stnd
Receiving A/c 100 At PO Price

5 Invoice matching with PO

AP Accrual Liability A/c 100 At PO Price
Invoice Price Variance A/c 10 Diff between Invoice - PO
AP Liability A/c 110 AT INV Price

6 On making Payment
Liability A/c 110 At Invoice Price
Cash 110 At Invoice Price
PROCURE TO PAY

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Receiving Option Setup ORG

Inventory Org Setup ORG

Sub-inventory Material A/c Setup SUB-INV Org Level A/c willl get defaulted
Inventory Org Setup ORG
Receiving Option Setup ORG

Receiving Option Setup ORG

Inventory Org Setup ORG
Financial Options/Supplier Site

Financial Options/Supplier Site

Bank A/c Setup
SUMMARY!A1 Order To Cash Cycle

SR.NO PARTICULARS DR CR
1 Sales order entry
No Accounting

2 Sales Order Pick

From Sub Inventory A/c 100

To Sub Inventory A/c 100

3 Sales Order Issue

COGS 100
To Sub Inventory A/c 100

4 Transaction level

Receivable A/c 120

Tax A/c 10
Frieght A/c 10
Revenue A/c 100

Receipts

5 Receipts with no remittance method

Cash 100
Unapplied A/c 100

Unapplied A/c 100

Receivables A/c 100

Cash A/c 100

Unidentified A/c 100

Unidentifed A/c 100

Unapplied A/c 100

6 Receipts with remittance method.

Confirmed receipts A/c 100

Unapplied A/c 100

Remitted receipts A/c 100

Confirmed receipts A/c 100

Cash 100
Remitted receipts A/c 100
7 Receipts with discount/unearned discounts

Cash 90
Discount earned A/c 10
Receivable A/c 100

Cash 90
Discount unearned A/c 10
Receivables A/c 100

8 Deposit
 Order To Cash Cycle

SPL NOTES ACCOUNT IS PULLED

At Standard Cost Sub-inventory Material A/c Setup

At Standard Cost(Staging) Sub-inventory Material A/c Setup

It can be fetched from five places Master Item/Org/Order Type/Line Type/Shipping Params
At Standard Cost Sub-inventory Material A/c Setup

Transaction type
Tax codes
Transaction type
Transaction type

Before application of the receipt Receipt class

Receipt class

After application of the receipt to the transaction Receipt class

Receipt class

Receipt class
In case of receipt without customer or transaction Receipt class

when customer indentfied Receipt class

Receipt class

At the time receipt entry Receipt class

Receipt class

On remittance to bank Receipt class

Receipt class

On clearence of cheque Receipt class

Receipt class
At the time earned discounts Bank
Receivable activity
Transaction Type

At the time of unearned discount Bank

Receivable activity
Transaction type
SPECIFIC OPTION AVAILABLE

ORG
ORG

Master org/shipping parameters/order type/Inv org

sales rep/customer site

Transaction type/sales reps/customer bill to site/Standard lines
sales rep/customer bill to site/standard lines
sales rep/customer bill to site/standard lines

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form

Bank Defination Form
 Adjustments in AR

SR.NO PARTICULARS DR CR SPL NOTES ACCOUNT IS PULLED SPECIFIC

1 Adjustments

Adjustment A/c 100 Receivable activity

Receivable A/c 100 Transaction type
 OPTION AVAILABLE

Sales Rep/Customer Site

 STANDARD COST UPDATE

SR.NO PARTICULARS DR CR SPL NOTES

1 Inventory Std cost update

Sub Inventory A/c 100

Cost Adjustment A/c 100

2 Intransit material Std Cost Update

Intransit Inventory A/c 100

Cost Adjustment A/c 100

3 WIP Material Std Cost Update

WIP Material A/c 100

WIP Material Variance A/c 100
STANDARD COST UPDATE

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Sub-inventory Material A/c Setup ORG

At the Standard Cost update request level

Shipping Network ORG

At the Standard Cost update request level

WIP Accounting Class

WIP Accounting Class
 Miscellaneous Receipts in AR

SR.NO PARTICULARS DR CR SPL NOTES

1 Miscellaneous Receipt at receivables

Accounting

Cash 100 Entered Reciept Amount

Misc Cash A/c 100

2 Miscellaneous Issue/Receipt At Inventory

Issue

Misc Issue A/c 100

Sub Inventory A/c 100

Receipt

Sub Inventory A/c 100

Misc Receipt A/c 100
aneous Receipts in AR

ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

Bank Account Definition Bank(Internal)

Receivable activity Distribution set

At Misc Issue form level

Org/Subinventory level ORG

Org/Subinventory level ORG

At Misc receipt form level
 MISC PAYMENTS

SR.NO PARTICULARS DR CR

1 On entering a Misc.Invoice

Charge A/c 100

Liability A/c 100

2 On making the Payment

Liability A/c 100

Cash 100

On making Payment
3 (when Cash Mgmt is implemented)

On Payment
Liability A/c 100
Cash Clearing A/c 100

On Clearing
Cash Clearing A/c 100
Cash 100
 MISC PAYMENTS

SPL NOTES ACCOUNT IS PULLED SPECIFIC

A dummy Misc.Vendor is created for

this purpose and the details are
captured in the DFF.

Distribution Set/PO charge A/c

From the supplier site

From the Supplier site

From the Bank A/c's Definition

From the supplier site

From the Bank A/c's Definition

From the Bank A/c's Definition

From the Bank A/c's Definition
OPTION AVAILABLE

Financial Options

Financial Options

Financial Options
 Manual WorkOr

SR.NO PARTICULARS DR CR
1 At the time material issue

WIP Material A/c 100

Sub Inventory A/c 100

2 Resource Valuation

WIP Resource valuation A/c 100

Resource Absorption A/c 100

3 Overhead Cost (Material)

WIP Material ovehead A/c 10

Sub inventory material overhead A/c 10

4 Overhead Cost (Indirect)

WIP Overhead A/c 100
Overhead absorption A/c 100

5 Outside Processing (In case of fixed standard cost to resource)

WIP OSP A/c 100

Variance A/c 95
Resource A/c 5
 Manual WorkOrder

SPL NOTES ACCOUNT IS PULLED SPECIFIC OPTION AVAILABLE

WIP Class
At Standard Cost Sub-inventory Material A/c Setup ORG

WIP Class
Resource Definition Form

WIP Class
Org/Subinventory ORG

WIP Class
Overheads Defination Form

WIP Class
Resource Defination Form Org Paramaeters
Resource Defination Form Receiving Options
Create internal Requition

Once approve run report ' Create Internal Order'

Run report 'Order Import'

Pick release the 'Internal Sales Order'

Ship Confirm - Check the receiving

Run report 'Create Intercompany AR Invoice'

Run 'Auto invoice' Program

Run report 'Create Intercompany AP Invoice'

Run ' Payable Open Interface Program'

Create the item for back to back order

Create the sales Order with item with order type Mix and Sorce type internal

Book the order

Run program ' Import requition' Sale order Status 'External Requition requested'

Requiestion will craete Sale order Status 'External Requition Open'

Create PO

Receive and Deliver the material to Inventory

As soon as Delivery complate , Sale Order status because 'Awaiting shipping)

Drop Shipment is a process where the customer place the an oder to a company and compnay instruct it's supplier t

Create the Item for Drop Ship

Create external Sales Order

Book the order

Run 'Workflow Background process'

Status Must be ' Awaiting receipt'

Run ' Requisition Import'

Requiestion Create

PO

Receipt ( Sub inventry must be Drop Ship) After this SO status will be 'Shipped'

Run 'Workflow Background process' SO Status should be close

compnay instruct it's supplier to directly ship the item to the customer
http://docs.oracle.com/cd/E18727_01/doc.121/e13522/T355475T454914.htm
http://www.anilrpatil.com/oracle/Revenue_Recognition_1.htm
http://www.ncoaug.org/NCOAUG%20Training%20Day%20Feb%202010/How%20to%20Defer%20Invoicing-Revenue%20R

Run the Revenue Recognition program to generate the revenue distribution records for your invoices an

Accounting rules determine the number of periods and percentage of total revenue to record in each ac

Invoicing rules determine when to recognize the receivable for invoices that span more than one accou

If a deferred accounting rule exists, then Revenue Recognition will create the distribution records for an

Note: Revenue Recognition creates accounting distributions for all periods of status Open, Future, or N

There are two Revenue Recognition programs: Revenue Recognition and Revenue Recognition Master (

You can run parallal Programs

Revenue Contingencies for Event-Based Revenue Management

Time-based

receive payment:Certain revenue contingencies place the likelihood of collectibility in doubt. For such t

Revenue Recognition:
Revenue Recognition principle is one of the important principles of Accrual Accounting. According to this principl
(1) They are realized or realizable and
(2) They are earned
Revenue is realized when products are exchanged for cash or claims to cash (Receivable). Customer is credit w
Revenue is realizable when related assets received are readily convertible to cash or claims to cash.
Revenue is earned when the products are delivered or services are performed.
Recognizing the revenue means recording the amount as revenue in the financial statements.
Realization is the process of converting non-cash resources into cash.
In the Revenue Recognition principle, it does not matter when cash is received. (In Cash Basis Accounting, reve
For revenue to be recognized, both the above conditions must be met. In other words for revenue to be recogniz
Let us have a look at the timing of Revenue Recognition
1) For sale of finished goods (Inventory Items), revenue is recognized at the date of sale (some interpret this as
2) For sale of services (e.g. support services), revenue is recognized when the services are performed (delivered
3) For sale of Asset Items (other than inventory items like finished goods), revenue is recognized at the point of s
4) For revenue from other activities like rent for using company’s Fixed Assets, revenue is recognized as time pa
Examples:
1) If a company invoices its customer for 100 units of item ‘A’, and ships (delivers) only 25 units, the company ca
equivalent to the number of units delivered (Revenue is earned only when the products are delivered). Similarly,
for one full year. The fact that company ‘ABC’ received money for one full year does not mean that they can reco
Liability to the company because they have to deliver magazines to their customer every month and if they fail to
the company will recognize 1/12th of the entire amount every month as earned revenue after they deliver the ma

2) Company ‘ZXC’ signs a 3 year support contract with its client for a total amount of 3 million. This amount cann
There are few exceptions to the timing of revenue recognition for sale of inventory items. Under normal scenario
Revenue Recognition Accounting:
If revenue is not recognized immediately, what is the accounting entry for the Sales Invoice? Let’s have a look
Let’s say, you invoice the Customer in Advance for the annual support contract of $12000. Since, you are invoici
Accounting when the Invoice is created in Jan
Date Accounting Class

1-Jan Receivables

1-Jan Deferred Revenue

End of Jan, Revenue is recognized for 1/12th of the entire amount, because the company has provided one mon
Date Accounting Class
31-Jan Deferred Revenue
31-Jan Earned Revenue

End of Feb, another months revenue is recognized

Date Accounting Class
28-Feb Deferred Revenue
28-Feb Earned Revenue

The company will have similar accounting entry each month till Dec. At the end of Dec, the Deferred Revenue wi

Setups

Businesses have the requirement to DEFER Revenue

Recognition until receipt of a sales order shipment has been
formally acknowledged / accepted by a customer

R12 Setup Steps – Order

Management – Customer
Acceptance Data Fields via Folder
Tools

R12 Setup Steps – Accounts Receivable / Revenue Mgt –

Create Revenue Contingencies
Revenue Contingency Assignment Rules
%20Defer%20Invoicing-Revenue%20Recognition%20Based%20on%20Customer%20Acceptance.pdf

ution records for your invoices and credit memos that use invoicing and accounting rules

otal revenue to record in each accounting period

s that span more than one accounting period

ate the distribution records for an unearned revenue account

iods of status Open, Future, or Not Open. If any period has a status of Closed or Close Pending, then Revenue Re

nd Revenue Recognition Master ( Master program)

nagement

collectibility in doubt. For such transactions, you should not recognize revenue until you receive payment

ccounting. According to this principle, revenue must be recognized when

(Receivable). Customer is credit worthy

cash or claims to cash.

ncial statements.

ed. (In Cash Basis Accounting, revenue is recognized when cash is received no matter when goods or services are sold).
er words for revenue to be recognized, final delivery must be completed (of goods or services) and there has to be a payme

date of sale (some interpret this as the date of shipping or the date of delivery)
e services are performed (delivered)
venue is recognized at the point of sale (i.e. when the customer is invoiced)
s, revenue is recognized as time passes or as assets are used.
vers) only 25 units, the company cannot recognize revenue for entire 100 items. It can only recognize revenue
e products are delivered). Similarly, let’s say you pay $120 in advance to company ‘ABC’ for magazine subscription
ar does not mean that they can record the entire amount as Revenue. In-fact the amount received in advance is a
omer every month and if they fail to do so, they are liable to refund the amount received in advance. In this scenario,
ed revenue after they deliver the magazine.

mount of 3 million. This amount cannot be recorded as revenue unless the Company provides the support services to the clie
ntory items. Under normal scenario, revenue is recognizes at the point of sale, however if there are return policies, and if the

Sales Invoice? Let’s have a look

ct of $12000. Since, you are invoicing the customer in Advance, you debit your Receivables. But then if you are not creditin

Debit

12000

he company has provided one month’s service to its client. To that effect, Deferred Revenue will be reduced and revenue w
Debit
1000

Debit
1000

nd of Dec, the Deferred Revenue will be Zero and the entire amount will be reported as Revenue earned.

Benefits
– Reduce …
• Administrative Costs – Revenue Accounting Maintenance / Mgt
Copyright © DARC Corporation, 2010
6
• Revenue Recognition inconsistencies (audit)
– Improve …
• Compliance to corporate governance regulations /
requirements
ed%20on%20Customer%20Acceptance.pdf

that use invoicing and accounting rules

nue account

period has a status of Closed or Close Pending, then Revenue Recognition creates the distributions in the next Op

should not recognize revenue until you receive payment

e recognized when

when cash is received no matter when goods or services are sold).

must be completed (of goods or services) and there has to be a payment assurance.

ng or the date of delivery)

customer is invoiced)
venue for entire 100 items. It can only recognize revenue
$120 in advance to company ‘ABC’ for magazine subscription
unt as Revenue. In-fact the amount received in advance is a
able to refund the amount received in advance. In this scenario,

revenue unless the Company provides the support services to the client. Assuming the company is following a monthly cal
nizes at the point of sale, however if there are return policies, and if the company cannot reasonably estimate the amount o

n Advance, you debit your Receivables. But then if you are not crediting the revenue right away, where do you account for th

Credit

12000

client. To that effect, Deferred Revenue will be reduced and revenue will be recognized
Credit

1000

Credit

1000

entire amount will be reported as Revenue earned.

Maintenance / Mgt
hen Revenue Recognition creates the distributions in the next Open, Future, or Not Open period.

ices are sold).

as to be a payment assurance.
ervices to the client. Assuming the company is following a monthly calendar accounting period, the company will recognize
policies, and if the company cannot reasonably estimate the amount of future returns, the revenue should be recognized on

u are not crediting the revenue right away, where do you account for the credit side of the accounting entry? You credit, wh

Comments
The entire receivables is recognized in advance.
How this receivable is collected will depend on the
payment terms of the Invoice

ed and revenue will be recognized

Comments
Deferred Revenue reduced
Earned Revenue amount for one month

Comments
Deferred Revenue reduced
Earned Revenue amount for one month
pen period.
d, the company will recognize 1/36th of the entire support contract deal amount every month. (Revenue is recognized when
enue should be recognized only after the expiration of the return policy period.

counting entry? You credit, what is called as Deferred Revenue (or Unearned Revenue). Deferred Revenue is actually a liab
enue is recognized when services are performed)

Revenue is actually a liability for the company. (The company is liable to provide the goods or services for which cash is rece
es for which cash is received or will be received in advance). As and when the goods or services are delivered, the Deferred
e delivered, the Deferred Revenue is reduced (debited) and revenue is recognized.
The 11i Accounts Payable Payment Batch functionality has been replaced by the Payment Process Request (PPR) in R12. PPR can be ac

R12, it lets you select invoices with different Operating units, Currencies in a single batch.

Setup Required for Payment Process Request:

The Payment Template is now the required setup for PPR and contains the following tabs:

Selection Criteria (pay through date, payment method, payee, pay group, operating unit, legal entity and payment currency),
Payment Attributes (disbursement bank, payment document, payment process, profile, exchange rate, type, and payment date setup
Processing (automation setup for how PPR should run—whether to stop the PPR at each stage of the process for user review before
Validate Failure Results (setup for PPR on how to handle a validation failure).

Users only need to select the Payment Template during PPR submission and all the selection criteria will be automatically defaulted. Bu

Payment Process Request Status:

New
Invoice Pending Review
Invoices Selected:
Pending Proposed Payment Review
Formatting
Confirmed:
Cancelled:
Terminated:
(PPR) in R12. PPR can be accessed via Payment Manager, a fund disbursement HTML page (as opposed to the prior 11i Oracle forms).

d payment currency),
type, and payment date setup),
ocess for user review before proceeding to another, or just to confirm the process without the review of selected and build invoices)

e automatically defaulted. But, it can be overwritten by the user before submission

i Oracle forms).
SLA accountin change example
http://udayask.blogspot.in/2014/01/oracle-apps-r12-sla-setup-with-example.html

Our requirement is to derive the cost center based on the invoice currency code. We shall see how we can achieve this using Mapping Sets a

copy Journal Line Type

craete Mapping Sets
Account Derivation Rules Assign mapping to Account Derivation Rules
Journal Lines Definition Journal line definition is used to assign journal line types for an event class or event type. This is where th
Application Accounting Definition
Subledger Accounting Method
achieve this using Mapping Sets and Account Derivation Rules.

ass or event type. This is where the Account Derivation rule is assigned to a journal line type.
Benefits:

AP/AR Netting provides for the ability to “collect” on your receivables balances with the amount owed for your purchases
by offsetting one against the other.This will Reduce bank Charges , Fewer Transactions to Process and thus significant Cash
flow Improvement

Netting Bank Account

Netting agreement for each set of nettable trading partner
Netting Batch

Create netting bank account ( Flag Netting bank account Yes and make accessible to AR and AP and use aclearing account))

Assign This bank account to seeded receipt class AP/AR netting off

System option >> Checked ' Allow payment of Unrelated Transactions'

mount owed for your purchases
ss and thus significant Cash

P and use aclearing account))

 MOAC

# profile MO Operation unit

MO Security profile
MO Defalt Operation unit

To Setup
Human resources super user respo.>> Security profile >>

Submit request ' Security list Mantainace'

Assign the security profile to user or respo.

Accouting engine
XLA Accouting change

Event Class