There are four high-level processes in the Order to Cash cycle. The first is processing the order, the second is processing the invoice, the third is recognizing the Cost of Goods (COGS), and the last is processing the cash receipt. Order Processing There are five steps to processing an order: 1. Enter an order 2. [...]
AP / AR Netting allows you to select AP and AR invoices and create payments and receipts against each other. The netting process creates a settlement batch that nets to zero. The netting process is driven by the agreement parameters and the batch parameters. The agreement parameters are established when you create the agreement. The [...]
In my previous post, I discussed how Subledger Accounting flows from the transaction to the journal entry. One key concept in understanding the Subledger Accounting model is the relationship between the Subledger Event Class and the transaction in the module. In the next series of posts, I’ll take a look at how these event classes [...]
To efficiently and effectively perform a period-end close in Oracle, you need to know the flow of transactions and journal entries from each module. To ensure all the transactions are processed and accounted for in the General Ledger, you will need to perform the following processes in order. The list below encompasses the most common [...]
In certain circumstances, you will need to calculate sales tax on the cost of an item instead of the sales price. The most common example of this is when you purchase a cell phone with a service contract. Since you are purchasing a bundled product, some states (like California) require you to charge the customer [...]
If you are starting or thinking of starting your Oracle R12 upgrade, you are probably wondering what type of issues other companies had with their upgrade. It’s been about six months since I was the project manager on a 11i to R12 (12,1.1) upgrade. Here’s a list of the modules that were upgraded: General Ledger [...]
After a R12 upgrade, you will notice a new feature in Payables – AP/AR Netting. You can use the feature when a vendor is also a customer and you wish to offset their AP invoices with your AR invoices. This new netting feature replaces contra-charging and Federal Financials netting in 11i. The 10 steps to [...]
