Oracle Fusion Cloud/EBS Knowledge Sharing Blog

What is a Bank Charge? Bank charges are fees levied by banks for processing fund transfers between a disbursement bank account and a supplier's or customer's bank account. Handling Bank Charges in Oracle Fusion is usually done through Cash Management or Payables, depending on when the bank charges are identified and on client requirements. How to handle Bank charges in Finance Modules? Cash Management Method1 : Manual This method is used when the bank deducts charges directly in the bank statement. Based on this, clients create an External Transaction and reconcile it with the Bank Statement line. Method2 Automatic : Based on the configuration in Cash Management (Bank Statement Transaction Creation Rules and Cash Transaction Type Mapping), the system can create Bank Charge as the External Transaction when running the Generate Cash Transactions program. Accounts Receivables There are two ways to handle Bank Charges in AR.  There are some charges we need to record as bank c...

There are different types of leases that we can record in the Oracle FLA(Fusion Lease Accounting) module.  FLA is a separate module under Finance suit which is used to manage leases. Oracle Lease Accounting has the key features of lease creation, generating amortization schedules, and maintaining accounting balances. It generates the balances required as specified by IFRS16 and ASC842 guidelines. ASC842 is nothing but US GAAP and IFRS16 is international GAAP. A lease is a contract where a party (the lessee) gains the right to use an asset owned by another party (the lessor) for a specific period. Here we have two parties. Lessor:  The owner of the asset who grants the use of the asset.  Lessee:  The party who uses the asset and makes payments to the lessor.  There are two types of Leases. Expense Lease An "expense lease" refers to the cost recorded by a lessee for using an asset that is not owned but rather leased. An expense lease...

Auto Lockbox eliminates manual data entry by automatically processing receipts that are sent directly to your bank.  The Oracle AR module provides a capability to automate your lockbox process by integrating with the bank. Oracle Cloud can consume the lockbox file that banks share and create receipts automatically for different customers using this data. These receipts can then be applied to the corresponding transactions based on the Auto-Match and Auto-Cash rule sets. Thus, it eliminates any requirement for manual intervention. Advantages Process Receipt Batches daily basis Speedup Collection Process Convert receivables into Cash more effectively Lockbox Process has three steps: Import Data : Lockbox reads and formats the data from your bank file into the interface table from the data uploaded using the Receivables Standard Receipt Import FBDI Template. Validate Data : Lockbox validates the data in the interface table for compatibility then transfers the data to the receipts tabl...

When checks issued for payments to suppliers, haven’t been presented for clearing during a specific time period, you should escheat them and transfer the amount to the appropriate local authority. Setups Required Unclaimed fund account at Common Options for Payables and Procurement When you escheat an unclaimed check, its payable amount must be stored in an account before it’s transferred to the escheatment authority Minimum days to escheat payment at Manage Payment Options Before you escheat a payment, you must define a minimum time duration for the validity of a check. Till this time has passed, a check can stay in the Negotiable state. Beyond this duration, Payables identifies this check as valid for escheatment. Escheatment Process Select the Payment and Initiate Escheatment:  Send stop payment instructions to the corresponding banks for all payments in the Escheatment Initiated status After performing due diligence on all stale dated payments, go to the Manage Payments page an...

In AR, we can send copies of the invoice to customers automatically. Some setups need to be done to send Transaction Copies Delivery using E-Mail. Configurations required: Update “Transaction Delivery Using Email settings” at Receivables System Options Setup Assign Preferred Delivery Method as Email in Customer Profile Update Customer Contacts at Communications tab  Add “Role Type” as “Contact”, Add Email Contact Point and Responsibility Type should be “Bill To” Process to run: Run ESS Job “Print Receivables Transactions” (Master program that initiates other child programs which prints transactions or delivers transactions using email) Manage Receivables System Options Setup Use the Transaction Delivery using E-Mail section of the Billing and Revenue tab of the  Receivables System Option  pages to set up the details of transaction delivery using e-mail for the applicable business units. Enter these values in the corresponding fields: From Name: Name of your enterprise. Fr...

Some of us are still confused with O2C journals, especially on the Receipts side. I am trying to clarify the same here. If you need to understand the complete flow and journals of O2C you can refer to the same in my blog which I already posted before.   Let me explain how the receipts are accounted for using different remittance and clearance methods. Receipt with no Remittance and clearance method By Matching When creating Receipt Remitted Cash A/C…..Debit Unapplied Cash A/C…......Credit When applying receipt to open invoices Unapplied Cash A/C…...Debit Receivables A/C…....Credit When reconciling in Cash Management Cash A/C….....Debit Remitted Cash A/C…...Credit Receipt with Remittance When creating Receipt Confirmed Cash A/C……………Debit Unapplied Cash A/C…......Credit ...

Some common interview questions What is your role in last implementation project? What are the critical issues you handled? How did you gather requirements? Explain the Enterprise Structure for your last project Explain the process of Data Conversion Period Close Process for all modules How to configure approval rules in BPM COA Structure Vs Instance Revaluation vs Translation CVR Vs Security Rules Types of Ledgers(PL, SL and RL) and their conversion levels What are the four Cs Mass Allocations with business use case P2P and O2C process with Journals Mandatory setups in AP for Invoicing and Payments Ways to create invoices Types of AP invoices Invoice Match Levels Multi Period Accounting Prepayment process with journals Unable to cancel invoice what could be the reasons What is PPP and PPR WHT and setups Auto Accounting Rules and various sources available Transaction Types and Importance of Transaction Sources Auto Invoice Setups and common issues Different statuses of receipts Auto Lo...

Multiperiod Accounting (MPA) in Oracle Fusion is a feature that allows users to create accounting entries for a single financial event across multiple accounting periods. It can be useful for situations where a single transaction spans multiple accounting periods, such as prepaid expenses. There are certain expenses which are incurred once but you want to apportion those expenses over a period of time. Ex: Software licenses, if you purchase a software license which is valid for one year. Setups Required : In case we want to use Pro-rate expenses by number of periods we don’t to need to configure anything, this is a default setting. If you want apportion the expense based on a number of days in a month, then custom SLA setups are needed. MPA Process Steps Create AP Invoice Provide Multiperiod Account details like Start Date, End Date and Accrual Account  Validate and Account the invoice Run “Create Multiperiod Accounting” program View Accounting to check the Accounting Entries Creat...

What is an Adjustment in Fusion Receivables? An adjustment is a manual or automatic billing update that increases or decreases the balance on a transactions such as an invoice, debit memo, chargeback or a credit memo. We can  make either positive or negative adjustments to your invoices.   We can approve adjustments that are within approval limits and give pending statuses to adjustments that are outside approval limits. We can automatically write off debit items that meet specific selection criteria. Configurations required: ·        Setup Approval limits for User - Approval limits are going to determine whether a user can approve adjustments. These are defined by document type, amount and currency. §   A document type - can be adjustment, or it can be something like credit memo refund or receipt write off. §   Amount - Amount can be part of a defined range. the range can go from a negative number to a positive number. § ...

What is the Chart of Accounts Structure? The Chart of Accounts (COA) is the account structure the organization uses to record transactions and maintain financial account balances. GL defines the COA structure in the Accounting Flexfield. The structure enables the organization to categorize accounting information during the recording process. We are generally confused about COA Structure and COA Structure Instance in Oracle Fusion. Let us try to understand the significance of both Chart of accounts is called the accounting flex field and is used for financial reporting of an organization. In chart of account you have to define your segment. Segments are different dimensions of a business. They capture the different elements of a business for financial reporting purposes. For example, Company, Accounts, cost center, Product line etc. capture the financial position of a company with different reporting tools. In each segment of Chart of Account you have to mention two important things...

Oracle Fusion has provided a feature to migrate OTBI reports from one Instance to another Instance. Source code migration is very easy process in Oracle fusion. Migration process helps in Cloud Implementation projects where we have to migrate hundreds of reports from one instance to another instance like from Dev instance to Prod instance. This is one of the great feature for OTBI reports migration. Step1: Go to the OTBI Report which you want to migrate from one Instance to Another. Step2: Select the OTBI Report. Go to Source Instance(means from which instance you want to migrate) Select report and click More. Click on Archive System will ask these below options that if you want to keep same permissions like this instance then you should check this checkbox. like the same for Timestamps. Check both and click Ok It will be saved. You can save this report in your local desktop. Step 3: Go to the Target Instance in which we want to migrate this Report Source Code. This is the Folder...