Receivables Invoicing Techno-Functional perspective

Receivables represent the revenues in any business.
Typical Receivables documents include;
1. Transactions (Revenue Document)
2. Receipts (Actual Revenue)
3. Credit Memos (Dispute settlement)
4. Debit Memos
5. Gaurantee
6. Deposit
7. Write-off & Adjustments

Transactions or invoices are created when a sale is made. This can be referenced to a sales order created in OM or service contract or Loans or manual invoice.
Invoice when created results in the following accounting entries:
DR CR
REV 1000
REC 1110
FRE 10
TAX 100

REV - Revenue account
REC - Receivables Account
FRE - Freight Account
Tax - Tax Account
The credit entry into the REV account represents the net revenue, while Tax and Freight accounts are updated accordingly.
There are multiple methods of entering invoices;
a) Autoinvoice (Import invoices from OM, OKC, LNS etc)
b) Manual Invoice entry (ARXTWMAI)

Receipts are created to represent the payments received.
This is applied against an invoice or debit memo.
This results in following accounting entries:
DR CR
Cash Clearing 1110
REC 1110
There are two methods of creating the receipts in Oracle Apps,
a) Manual Receipts (ARXRWMAI)
b) Receipt Batches (Automatic & Manual)

Credit Memos are created when a dispute is settled and customer wins it. Typical sceanrio includes;
A Sale is made and invoice is sent to the customer.
Customer is not satisfied with the service provided and decides to challenge the invoice. Customer disputes the invoice (iReceivables). When the dispute is settled and customer wins the challenge then CM is generated, else invoice stands and customer needs to make a payment. Credit note can be created in multiple ways;
1. Imported from RMA in OM.
2. Manual Credit Memos or Credit Transactions.

I shall discuss Autoinvoice process in the next section.