Bills Receivable Oracle Application Financials.. by JAIPRAKASH DARODKAR (Finance Techno Functional Consultant)

Wednesday, January 14, 2015 by Ajay Atre



Introduction
Oracle Receivables provides a comprehensive solution to managing the entire life cycle of bills receivable: creation, acceptance, remittance, updates, history, and closing.
What is Bills Receivable?

Bills Receivable, Commerce, Promissory notes, bills of exchange, bonds and other evidences or securities which a merchant or trader holds, and which are
Payable to him.
A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding.
Definition of Bills Receivable

·         A Bills Receivable (BR) has characteristics of both a transaction and a receipt.
·         It is like an invoice because it is a debit item that a customer owes you.
·         It is like a receipt, because you can remit it to a bank to get payment

Objective :
In Day to Day Business activities, Companies are facing various challenges with respect to

     1)    Collection Analysis and Strategies for Chasing Late Payments
     2)    Late Payments of Invoices
     3)    Invoice Disputes

To overcome this, Bills Receivable can be used as alternative which has below features

1)    More secure debit item than a regular invoice.
2)    A legal document, binding the debtor (signer) to pay a certain sum at a future day or on demand.
3)    Eliminate Collection Analysis and Strategies for Chasing Late Payments
4)    Minimize Invoice Disputes
5)    By entering into a BR agreement, the debtor promises to pay the creditor the specified amount at the specified date. 




Three Types Of Bills Receivable

     §  Accepted Bills Receivable (Signed BR)
     §  Promissory Note (Drawee Issued)
     §  Unsigned Bills Receivable

Contents of Bills Receivable

·       Set-up
·       Flow
·       Creation
·       Remittance
·       BR Maturity and Risk Elimination Program
·       Portfolio Management
·       Summary of BR flow
·       List of BR programs
·       Accounting Entries



Major Setups

   1)  Auto Accounting
   2)  Transaction Types
   3)  Batch Source
   4)  Receipt Classes
   5)  Receipt Source
   6)  Remittance Banks
   7)  Customer
   8)  Customer-Drawee Site
   9)  Payment Details


   Auto Accounting

 



SQL:

SELECT RAD.type, 
       
HOU.NAME, 
       
RADC.segment, 
       
RADC.table_name, 
       
RADC.constant 
FROM   ra_account_defaults_all RAD, 
       
ra_account_default_segments RADC, 
       
hr_operating_units HOU 
WHERE  RAD.type = 'BR_FACTOR' 
       
AND RAD.org_id = HOU.organization_id 
       
AND RAD.gl_default_id = RADC.gl_default_id 
       
AND HOU.organization_id = 204 

 Transaction Types




SQL    :         

SELECT * 
FROM   ra_cust_trx_types_all RCTT 
WHERE  RCTT.NAME = 'BR - Drawee Issued' 


Receipt Classes
 







Receipt Source





SQL  :                
SELECT arc.receipt_class_id, 
       
arc.creation_method_code, 
       
arm.printed_name, 
       
arm.receipt_method_id 
FROM   ar_receipt_classes ARC, 
       
ar_receipt_methods ARM 
WHERE  arc.NAME = Unsigned Bills Receivable’ 
AND    arm.receipt_class_id = arc.receipt_class_id



Batch Source
 




SQL :       

SELECT * 
FROM   ra_batch_sources_all 
WHERE  NAME = 'BR Automatic Numbering' 
       
AND org_id = 204 
 Customer - Drawee Site




SQL :


  SELECT HCA.account_number CUSTOMER_NUMBER, 
       
HCA.cust_account_id, hp.party_id, 
       
HP.party_name,       hcsu.site_use_code, 
       
HPS.party_site_number, 
       HL.address1 || ' ' || HL.address2, 
       
HCSU.status,  HOU.NAME OU_Name, 
       
HOU.organization_id, HCSU.primary_flag 
FROM   hz_parties HP, 
       
hz_cust_accounts HCA, 
       
hz_cust_acct_sites_all HCSA, 
       
hz_cust_site_uses_all hcsu, 
       
hz_locations hl, 
       
hz_party_sites hps, 
       
hr_operating_units HOU 
WHERE  HCA.party_id = HP.party_id 
       
AND hcsa.cust_account_id = hca.cust_account_id 
       
AND hcsa.cust_acct_site_id = hcsu.cust_acct_site_id 
       
AND hl.location_id = hps.location_id 
       
AND hps.party_site_id = hcSA.party_site_id 
       
AND HCSU.org_id = HCSA.org_id 
       
AND HCSU.org_id = HOU.organization_id 
       
AND HCSU.site_use_code = 'DRAWEE' 
       
AND HCSU.status = 'A' 
       
AND HOU.organization_id = 204



Payment Details






     SQL :

SELECT *
FROM
  (SELECT HP.PARTY_NAME CUSTOMER_NAME,
          HCA.ACCOUNT_NUMBER CUSTOMER_NUMBER,
          CUST_ACCOUNT_ID
   FROM HZ_PARTIES HP,
        HZ_CUST_ACCOUNTS HCA
   WHERE HCA.PARTY_ID = HP.PARTY_ID) A,
  (SELECT RaCustRcptMthds.CUST_RECEIPT_METHOD_ID,
          RaCustRcptMthds.CUSTOMER_ID,
          RaCustRcptMthds.RECEIPT_METHOD_ID,
          RaCustRcptMthds.PRIMARY_FLAG,
          RaCustRcptMthds.START_DATE,
          RaCustRcptMthds.END_DATE,
          RaCustRcptMthds.SITE_USE_ID,
          RM.NAME AS NAME
   FROM RA_CUST_RECEIPT_METHODS RaCustRcptMthds,
        AR_RECEIPT_METHODS RM
   WHERE RM.RECEIPT_METHOD_ID = RaCustRcptMthds.RECEIPT_METHOD_ID ) QRSLT
WHERE QRSLT.customer_id = A.CUST_ACCOUNT_ID
  AND A.CUST_ACCOUNT_ID=1003
  AND QRSLT.NAME='BR Standard Remittance'

    



PROCESS FLOW



Step 1: Create Transaction for Customer and Receipt Method



SQL :

SELECT APS.trx_number, 
       
APS.amount_due_original, 
       
APS.amount_due_remaining 
FROM   ar_payment_schedules_all aps 
WHERE  customer_id = 1003 
       
AND org_id = 204 
       
AND APS.status = 'OP' 
       
AND EXISTS (SELECT 1 
                   
FROM   ra_customer_trx_all RCT 
                   
WHERE  RCT.customer_trx_id = 
APS.customer_trx_id AND RCT.receipt_method_id = 1221)


Step 2: Creation of BR. 




SQL :
1)  SELECT * 
FROM   ar_payment_schedules_all 
WHERE  trx_number = '1042' 
       
AND class = 'BR' 
2)  SELECT * 
FROM   ra_customer_trx_all 
WHERE  customer_trx_id = 852744







Step 3: Click on Assignments / add transactions in BR
 




SQL :

SELECT * 
FROM   (SELECT trx_number, 
               
(SELECT hca.account_number 
                
FROM   hz_cust_accounts hca 
                
WHERE  hca.cust_account_id = rct.bill_to_customer_id) 
               
acct_number, 
               
(SELECT status 
                
FROM   ar_payment_schedules_all aps 
                
WHERE  aps.customer_trx_id = rct.customer_trx_id 
                       
AND rownum = 1)                                trx_status 
               
, 
               
(SELECT amount_due_remaining 
                
FROM   ar_payment_schedules_all aps 
                
WHERE  aps.customer_trx_id = rct.customer_trx_id 
                       
AND rownum = 1) 
                      
amount_due_remaining 
        
FROM   ra_customer_trx_all rct 
        
WHERE  receipt_method_id = 1221 
               
AND org_id = 204) 
WHERE  trx_status = 'OP' 
       
AND acct_number = '1003' 
       
AND trx_number IN( '1041' ) 





Step 4: Complete the BR.


Status of BR changed to Pending Remittance


Invoice selected got closed



Activities against the Invoice



Tip : For SQL,  Refer query above, remove condition trx_status=’OP’



Step 5: BILLS RECEIVABLES à REMITTANCES



Manual Create



Click on Actions



Concurrent program is submitted and completed



BR Status has now changed to Standard Remitted



Step 6: Run Maturity and Risk Programs



View Concurrent Requests



SQL :

SELECT ps.customer_trx_id,
       ps.payment_schedule_id,
       ps.due_date maturity_date,
       ps.reserved_type,
       ps.reserved_value,
       ps.amount_due_remaining,
       ps.tax_remaining,
       trh.gl_date,
       trh.transaction_history_id,
       trh.prv_trx_history_id,
       trh.status,
       trh.event,
       ps.org_id
FROM ar_transaction_history trh,
     ar_payment_schedules ps
WHERE ps.class = 'BR'
    and   ps.reserved_type      in ('REMITTANCE','ADJUSTMENT')



Report Output :



Status of Bills Receivable is now Closed



Step 7: Portfolio Management

i)             Query BR Document à Find



i)             Click History



i)             Click Details



i)             Receipt Created



i)             Click Apply



SQL :
SELECT rap.receivable_application_id, 
       
rap.cash_receipt_id, 
       
rap.gl_date, 
       
rap.apply_date, 
       
rap.org_id 
FROM   ar_receivable_applications_all rap 
WHERE  rap.applied_customer_trx_id = 852744 
       
AND rap.display = 'Y' 
ORDER  BY rap.receivable_application_id DESC; 




Accounting Entries

1)    Invoice Created



1)    Bills Receivable Created/Remitted



1)    Receipt Created





References: https://docs.oracle.com/cd/E18727_01/doc.121/e13522/T355475T355479.htm



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