How to change Date Format in Oracle EBS R12?

 

We can change the Date Format as per the business needs, which can be achieved by just changing a profile option.

Profile Option: ICX: Date format mask 

Cash Forecasting - Cash Management

 

Cash forecasting is a planning tool that helps you anticipate the cash flow in and out of your business, allowing you to project your cash needs and evaluate your company's liquidity position.

In Oracle R12 you can forecast your cash position on the basis of transactions from subledgers. These transactions can be PO, PR, AP Invoice, AP Payment (Future Dated), AR Invoice, AR Receipt (Future Dated), and many more.

Process for Cash Forecasting in Oracle.

Step 1: Go to Cash Management Responsibility and Click on Cash Forecasting.

Step 2: Go to Forecast Template and click on Create Template

Enter all the details and click on the next

Here add the Source Type as per business requirements

Now as per the above steps add all the other sources as per business requirements.

Click on Next.

Now add the buckets which will tell you the inflow and outflow of cash as per the sources added above.

Click on Finish and then re-query your template.

Step 3: Click on Run Forecast as shown in the above image.

Now add the mandatory details and click on Submit.

 

After submitting, system will trigger 3 concurrent programs.

After completion of these 3 programs click on view forecast.

Now click on the Forecast Name Hyperlink to see the Cash Forecasting.

Here you can see the details of the Inflow and  Outflow of Cash as per sources selected in the forecast template.

Maximize Credits - PPR (Payment Process Request)

The concept of Maximize Credits in PPR is used when a payment is having more Negative Value then Positive Value, which means more credit memos then standard invoice.

Understand this with below examples.

Example 1: Maximize Credit Disabled

Standard Invoice 1: 300
Standard Invoice 2: 200
Credit Memo 1: -350

In this case total payment is positive which is Rs 150, so system will pick the Invoice and Credit Memo and will pay the amount.

Example2. Maximize Credit Disabled

Standard Invoice 1: 300
Standard Invoice 2: 200
Credit Memo 1: -350
Credit Memo 2: -250
Credit Memo 3: -100

In this case PPR will not select any Invoice and Credit Memo due to Credit is Low, which means that total amount to be paid is Rs -200 which is not allowed as per oracle standards.

Example3. Maximize Credit Enabled

Standard Invoice 1: 300
Standard Invoice 2: 200
Credit Memo 1: -350
Credit Memo 2: -250
Credit Memo 3: -100

 In this case PPR will select the data in the below logic.

Standard Invoice 1: 300
Standard Invoice 2: 200
Credit Memo 1: -150
Credit Memo 2: -250
Credit Memo 3: -100

Here PPR automatically deducts the amount of Credit Memo and make it equal to the total of Standard Invoice and then will Pay Zero Payment. Which is the actual concept of Maximize Credit.

To know more about the concept refer the below Oracle Doc. ID.

How does a Payment Process Request (PPR) handle Credit Memos in R12? (Doc ID 1279569.1)

Accounting Rule and Invoicing Rules

 

Accounting rules determine the number of periods and percentage of total revenue to record in each accounting period. You can use accounting rules with transactions that you import into Receivables using Auto-Invoice and with invoices that you create manually in the Transaction windows. You can define an unlimited number of accounting rules.

Invoicing and accounting rules let you create invoices that span several accounting periods. Accounting rules determine the accounting period or periods in which the revenue distributions for an invoice line are recorded. Invoicing rules determine the accounting period in which the receivable amount is recorded.

You can assign invoicing and accounting rules to transactions that you import into Receivables using Auto-Invoice and to invoices that you create manually in the Transactions window.

Here we use both Accounting Rules and Invoicing Rules in combination.

There are 4 types of Accounting Rules.
1. Fixed Schedule
2. Variable Schedule
3. Daily Revenue Rate, All Period
4. Daily Revenue Rate, Partial Period

and

There are 2 types of Invoicing Rule
1. In Arrear
2. In Advance

Now we create 2 cases in which 1st case will be with Fixed Schedule Accounting Rule and In Arrear Invoicing Rule and 2nd case will be with Fixed Schedule Accounting Rule and In Advance Invoicing Rule. 
In rest of the cases accounting will remain same only amount calculation will be different for each month which will be explained in the last.

Case 1: Fixed Schedule - In Arrear

First we create Fixed Schedule Accounting Rule.

Here we are creating 3 Month Fixed Schedule Rule with Period Type which we have taken in our GL Calendar. After specifying the number of period system will automatically distribute the percentage on the basis of number of period taken.

Now we create AR Invoice with both rules.

  

Here enter all the necessary details and select Invoicing Rule as 'In Arrear' and then click on lines.

when you select any Invoicing rule then a field in Rules tab becomes mandatory in which you have to take your accounting rule.

Here select your rule and specify the date in which you want your recognition to be placed and the Save.

Before completing the invoice check distributions, in which you can see the code combinations for receivable and revenue but there is no amount mentioned because of the accounting rule.
For bifurcation of amounts complete the invoice and then we need to run Revenue Recognition program which will distribute the amount on the basis of Accounting and Invoicing Rule in different months.

Here after completion of program, system distributed amount as per the accounting rule in the months which were taken while adding line items. In this case equally.

Now process accounting and see the impact in OAF Form.

Here as per the above entries, revenue is distributed is the following months which will be recognized in the respective months against which Unbilled Receivables is debited and the main Receivable Account gets debited in the last month.

Case 2: Fixed Schedule - In Advance

In this case we are taking the same accounting rule but Invoicing rule will be different.

Here take Invoicing Rule as In Advance.

Use the same Fixed Accounting Rule.

For the impact Run Revenue Recognition.

Here In-Advance, Receivable account is fully debited in the first month and revenue is recognized in the following months.

Unable to Void a Payment. Void Button on Payments is Greyed Out.

 

Below are the reasons due to which Void Button is disabled on the Payment Workbench form.

1. Payment is Reconciled

When the status of the Payment is 'Reconciled' then the void button will be greyed out. To void a payment, first note the statement number from the show field from the payment then go to cash management and find the statement, and then unreconciled the payment. After this Void Button will be enabled.

2. Prepayment Application / Un-application

If the void button is disabled on a payment and that payment is of Prepayment Invoice then we need to make sure that prepayment is not partially or fully applied. Only after unapplying of prepayment from the invoice, you can void the payment. Until then the void button will be greyed out.