I come across this , very simple way to explain Order to Cash cycle. Very easy to follow.
I come across this , very simple way to explain Order to Cash cycle. Very easy to follow.
A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources.
And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal.
Project management processes fall into five groups:
Oracle Projects consists of the following products:
The key features of Oracle Project Costing are:
The key features of Oracle Project Billing are:
The key features of Oracle Project Resource Management are:
Key features of Oracle Project Management are:
Key features of Oracle Project Collaboration are:
Key features of Oracle Daily Business Intelligence for Projects are:
Key features of Oracle Project Portfolio Analysis include:
Receivables – Different Type of Invoices
Invoice : An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. A document that you create that lists amounts owed for the purchases of goods or services, any tax, freight charges and payment terms.
Credit Memo : A document that partially or fully reverses an original invoice. A credit note lists the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer returned or did not receive. It may be issued in the case of damaged goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the amount the buyer has to pay. Note: A Credit Memo is not to be substituted as a formal document. The Credit Memo rarely contains: PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices. Usually it references the original Invoice and sometimes states the reason for issue.
This is received if the goods are incomplete, damaged, or incorrect; customers may also receive one if they paid too much money, or if they had been overcharged.
Debit Memo : A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo.
ChargeBack : A new debit item that you assign to your customer when closing an existing, outstanding debit item.
Deposit : A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of goods and services.
Guarantee : A contractual obligation to purchase a specified amount of goods or services over a predefined period of time.
Bills Receivables : A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). Bills receivable are often remitted for collection and used to secure short term funding. A written evidence of debt that is payable to the holder; a promissory note or an acceptance (a bill of exchange that has been accepted) is in the hands of a person to whom it is payable a bill receivable.
Types of Invoices in Oracle Payables
1. Standard Invoices: Standard invoices are the invoices issued by a supplier to the buyer, representing the amount due for the products or services the supplier has provided to the buyer.
Standard invoices can be either matched to a purchase order or not matched.
A standard invoice must be positive amount.
2. Mixed Invoices: Mixed invoices are the invoices which can have either positive or negative amounts and can be matched to both purchase orders and invoices.
For example, if there is a mixed invoice for $-1000, you can either match it to an invoice with $-1000 or to a purchase order with an amount $1000.
3. Credit Memo: Credit memo is an invoice raised by the supplier to the buyer with negative amount. It reduces the supplier balance and reduces the liability.
For example the customer has returned some of the goods that he purchased, the supplier sends a credit memo to the buyer to adjust the balance.
4. Debit Memo: Debit memo is an invoice raised by the customer to supplier with negative amount.
The functionality of Debit Memo is same as Credit Memo. Both are to reduce the liability.
The purpose of Debit Memos is to record a credit for a supplier who does not send you a credit memo.
Unlike in AR, both Credit memo and Debit memo are with negative signs in Payables.
5. Prepayment: Prepayments are the invoices raised to record advance payments to a supplier or employee.
6. Expense Reports: Expense reports are the invoices that represent amount due to an employee for all his business related expenses.
7. Withholding Tax: After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.
Payables can automatically create withholding tax invoices, or you can perform this
task manually. If you choose to automatically create withholding tax invoices, you must choose whether to do this during Invoice Validation or during payment processing.
8. PO Price Adjustment Invoices: PO Price Adjustment Invoices are used for recording the difference in price between the original invoice and the new purchase order price.
For example, If a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed.
PO price adjustment invoices can be matched to both purchase orders and invoices.
9. Quick invoices: Used for quick, high-volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import
10. PO Default – Used if you know the purchase order you want to match to, but you do not know to which purchase order shipments or distributions you want to match.
11 Enter QuickMatch use if you want to match an invoice to all shipments on a purchase order.
A “statement” is simply the status of the customer’s account at a particular point in time.
Each line item on a statement represents sales transactions, credits, and payments for a given period of time. As such, it doesn’t offer as much detail as the individual sales transactions.
Statements are often sent out on a regular basis (e.g., monthly – let your customers know where they stand and if they still owe you any money).
“Invoice” is a term used by vendors when they want to collect funds from their customers.
When you are creating transactions to receive money from your customers you would refer to it as an Invoice or Sales Receipt.
Invoices are the individual sales transactions that would partially comprise a statement of a customer’s account activity.
Invoices are sent to customers who are not paying immediately when specific work items or goods/services sold are completed or fulfilled (when you are expecting a payment at a later date from a customer). Receive Payment would be used in conjunction with Invoice at the time the customer payment is received.
Sales Receipts are generally used for goods/services rendered at the time of a purchase (sometimes referred to as a “point of sale” purchase), or if customers give you immediate payment.
“Bill” is a term used to describe transactions that are owed to vendors.
When your vendors send you an invoice to collect money from you, it is referred to as a Bill.
Since you are a customer to the vendor, you will receive an invoice from them and enter it as a bill you are expected to pay.
Dear Readers, We have a great team of contributors from different areas of Oracle ERP. Looking for your support if you are also like to contribute and support.
below is list of Contributors / Experts. Be free to post your questions and queries.
1. Ashish Jain –> : Oracle HRMS , Oracle EBS Implementation – Project Management , Mobility Applications
2. Devendra Gulve –> Oracle Supply Chain & Manufacturing Modules
3. Fabiana Berrozpe –> Oracle EBS Techno-Functional and Latin American localizations.
4. Gaurav Upmanyu –> Oracle Supply Chain ( Order to Cash ) & Configurator
5. Lokesh Surana –> Oracle EBS Technical
6. Md Ahmad -> Oracle HRMS , OTL & Payroll
7. Muthu Vade -> Oracle EBS Technical – Anything and Everything , Tools & Technology
8. Neeta Shelar –> Oracle Projects Accounting , Billing , Costing
9. Puneesh Lamba – ERP Expert
10. Shivmohan Purohit – Oracle EBS Financials
** This is just an overview of the accounting process. **
The accounting cycle, also commonly referred to as accounting process, is a series of procedures in the collection, processing, and communication of financial information.
Financial information is presented in reports called financial statements. But before they can be prepared, accountants need to gather information about business transactions, record and collate them to come up with the values to be presented in the reports.
The accounting cycle has eight basic steps, which you can see in the following illustration. These steps are described in the list below.
Financial transactions start the process. Transactions can include the sale or return of a product, the purchase of supplies for business activities, or any other financial activity that involves the exchange of the company’s assets, the establishment or payoff of a debt, or the deposit from or payout of money to the company’s owners.
The transaction is listed in the appropriate journal, maintaining the journal’s chronological order of transactions. The journal is also known as the “book of original entry” and is the first place a transaction is listed.
The transactions are posted to the account that it impacts. These accounts are part of the General Ledger, where you can find a summary of all the business’s accounts.
At the end of the accounting period (which may be a month, quarter, or year depending on a business’s practices), you calculate a trial balance.
Unfortunately, many times your first calculation of the trial balance shows that the books aren’t in balance. If that’s the case, you look for errors and make corrections called adjustments, which are tracked on a worksheet.
Adjustments are also made to account for the depreciation of assets and to adjust for one-time payments (such as insurance) that should be allocated on a monthly basis to more accurately match monthly expenses with monthly revenues. After you make and record adjustments, you take another trial balance to be sure the accounts are in balance.
Adjusting journal entries
You post any corrections needed to the affected accounts once your trial balance shows the accounts will be balanced once the adjustments needed are made to the accounts. You don’t need to make adjusting entries until the trial balance process is completed and all needed corrections and adjustments have been identified.
You prepare the balance sheet and income statement using the corrected account balances.
Closing the books
You close the books for the revenue and expense accounts and begin the entire cycle again with zero balances in those accounts.