Transaction Types in Oracle Receivables

Transaction Types in Oracle Receivables

The following are the Transaction Types in Oracle Receivables:

1.     Invoice

2.     Guarantee

3.     Deposit

4.     Debit Memo

5.     Credit Memo

6.     Chargeback

7.     Bills Receivables

The Transaction Types are used to define the accounting for the above Transaction Types and also determines whether the transaction entries update the Customer’s balances and posts these transactions to the General Ledger.

If AutoAccounting depends on Transaction Type, Oracle Receivable uses the GL Accounts from the Transaction Type, along with AutoAccounting Rules to determine the default Revenue, receivable, freight, tax, unearned revenue, unbilled receivable, and AutoInvoice clearing accounts for transactions created using a Transaction Type.

The GL Accounts defined in the Bills Receivable Transaction Type determines the bills receivable, unpaid bills receivable, remitted bills receivable and factored bills receivable accounts for a bill receivable.

The Transaction Types should be defined in the following order:

1.       Credit Memo Transaction Types

2.       Invoice, Debit Memo, and Chargeback Transaction Types

3.       Bills Receivable Transaction Types

4.       Commitment Transaction Types i.e. Deposit & Guarantee

Note: Define Invoice Transaction Types before defining Commitment Types.

Suggestion: To void a Transaction Type with ‘Open Receivables’ and ‘Post to GL’ set to ‘No’ when there is no activity against the transaction. Then the Transaction Status can be changed to ‘Void’. The Transaction Type will become invalid.
If there is any activity associated with the transaction, the Transaction Status cannot be changed. When try to change the Transaction Status the System throws the following error messages:

When try to change Transaction Status:
Error: APP-AR-96128: You cannot enter a parent value for this segment. Please enter a child value instead.

When try to uncheck ‘Open Receivables’ and ‘Post to GL’ checkboxes.
Error: APP-AR-96626: You cannot change a transaction type which has been used.

Nature Application & Allow Over Application: These options determines how receipt applications can affect the balance due for transactions use this Transaction Type(s).

Natural Application refers to the type of application, either positive or negative, that a transaction requires becoming closer to zero.

Example: Invoice have a positive balance Rs.10000/- , to reduce the invoice balance due to zero by creating a negative application i.e. Receipt for Rs.10000/-

Over Application indicates that the receipt can be over applied against a transaction by using the Transaction Type(s).

Example: Apply a receipt Rs.5000/- to the invoice Rs.4000/- the remaining receipt amount Rs.1000/- will be reversed its sign from positive (1000) to negative (-1000).

Note: If you choose Do Not Print, iReceivables does not display the details for transactions with this transaction type

Note: Use tax classifications only if you upgraded to Release 12 from Release 11i.