Slide 4 - Oracle Financials Cloud

Bills_Receivable / Tuesday, October 23, 2018

Slide 4 - Oracle Financials Cloud

Release 9

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Hello, my name is Vincent. Welcome to the Release 9 Training for Oracle Fusion Receivables Enhancements. In this session, we’ll cover the Global Expansion Bills Receivable enhancements we have made in this release.

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Slide 5 - Agenda

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For the enhancements covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value they bring.

Next we’ll explain what you need to consider before enabling these features in your business, and what you need to know to set them up.

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Slide 6 - Enhancements Overview

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Here is some overview information on Bills Receivable we introduced into Fusion Receivables.

Bills Receivable is mostly used in Europe and Japan to help businesses save resources and time involved in managing and replacing transactions and remitting to the bank for collection of payment.

A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding.

Fusion Bills Receivable provides a simple solution to manage your transactions of various types and consolidate them into a single bill receivable. Fusion Bills Receivable has many features, including simple tools for creating bills receivable manually or in a batch.

After bill receivable creation and completion, you can remit bills using different methods of payment:

For bills standard remitted, upon maturity and completion of clearing/collection days, the receipt is applied to the bill and the bill is closed. For bills factored remitted with recourse, upon maturity and completion of risk elimination days, the receipt is applied to the bill and the bill is closed.

For bills factored remitted without recourse, the receipt is applied and closed upon remittance.

Many actions can be taken on a bill receivable during its life cycle that reflect the events that can occur for a bill, such as drawee acceptance, cancelling or holding a bill, or processing early remittance. Fusion Bills Receivable provides up-to-date status tracking to help monitor the current status of every bill. It also generates updated accounting at every phase of the bill life cycle, up to final reconciliation to the General Ledger.

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Slide 7 - Enhancements Overview

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In Fusion Bills Receivable, we now provide the ability to manage the entire life cycle of a bill receivable. You can now:

Create a bill receivable manually to replace specific transactions

Print bills receivable to send to customer for payment collection

Create a bills receivable batch automatically from select transactions

Remit bills receivable to collect money from the bank

Eliminate risk on matured bills receivable

Manage bills receivable throughout their lifecycle

Reconcile bills receivable transactions posted to General Ledger

Details of each of these functionality are discussed in the following slides.

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Slide 8 - Create a BR Manually to Replace Specific Transactions

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Bills Receivable lets you replace different kinds of transactions with a single bill receivable.

Invoices, debit memos, credit memos, chargebacks, and other bills receivable of the same currency can be partially or fully replaced by a single bill receivable. The bill receivable can have a maturity date that is independent of the individual transactions.

The customer simply has to pay just a single bill receivable instead of a multitude of individual transactions.

In Fusion Bills Receivable, 3 types of bills receivable are supported:

Signed (requires drawee acceptance - increases the likelihood of being paid )

Unsigned (does not require drawee acceptance)

Drawee-Issued (a promissory note)

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Slide 9 - Print BR to Send to Customer for Payment

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You can print the bill receivable with the list of transactions that the bill replaces and send to your customer for payment.

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Slide 10 - Create a BR Batch Automatically from Select Transactions

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You can also create bills receivable via a batch.

Transactions of various types can be automatically bundled together based on user criteria to create a bills receivable batch.

Transactions with the same currency are automatically grouped into a single bill.

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Slide 11 - Remit BR to Collect Payment from the Bank

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You can remit bills receivable to the bank to collect payments from your customers.

Remittance can be done via:

the task pane of the of Receivables Balances work area or

from Scheduled Processes

3 methods of remittance are supported:

Standard Remittance (when bill matures, bank collects funds, receipt is created, and funds deposited into your account)

Factored Remittance with recourse (Receipt is created and applied to short term debt when remittance is approved)

Factored Remittance without recourse (bank pays you immediately and assumes the risk of default; receipt is applied and bill is closed upon remittance.)

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Slide 12 - Eliminate Risk on Matured BR

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The Close Matured Bills Receivable program performs these tasks for you:

1) For Bills that are Standard Remitted:

Receipts are created and applied, and bills are closed when the Close Matured Bills Receivable Program is run, and the run date is beyond the later of the two:

maturity date plus collection days

remittance date plus collection days

2a) For Bills with factored remittance and with recourse: When the Close Matured Bills Receivable Program is run:

at maturity date, the bill is updated to “Matured Pending Risk Elimination”.

past maturity and risk elimination days, short term debt is unapplied from receipt and applied to the bill. The bill is updated to “Closed”.

2b) For Bills with factored remittance and without recourse:

There is no need to run the Close Matured Bills Receivable program. Receipt is applied and bill is closed upon remittance.

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Slide 13 - Manage BR Throughout Their Lifecycle

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The Manage Bills Receivable Portfolio link lets you search for and act on specific bills receivable. Many actions can be taken on the bill depending on the status of the bill. This provides you with the tool to manage bills of different customers and determine the status of the bills as they progress. The following actions are available:

Complete: makes the bill available for remittance (signed bill needs a further action of Acceptance)

Incomplete: marks the bill receivable as incomplete and enables both editing of the bill receivable as well as applying it to additional transactions

Delete: deletes incomplete bill and reverses all transactions

Accept: marks the bill receivable as accepted by the drawee

Cancel: marks the bill receivable as canceled

Recall: reverts a remitted bill receivable to its original status prior to remittance in the event of an unsuccessful or incorrect remittance

Mark as unpaid: indicates that the drawee failed to pay the bill receivable on the maturity date

Restate: changes the status of a bill receivable from “Unpaid” to “Pending Remittance”.

Protest: marks the bill receivable as under protest by the drawee

Eliminate risk: eliminates the short-term debt associated with a bill receivable that is factored with recourse

Reestablish risk: reestablishes the short-term debt for a bill receivable that is factored with recourse

Hold: marks a bill receivable as on hold, preventing it from being remitted

Release: releases the hold on a bill receivable, making it eligible to be remitted

Print: submits the Print Bills Receivable scheduled process to print a bill receivable

Account in Draft: creates draft accounting entries of a bill receivable

Account and Post to Ledger: creates final accounting entries of a bill receivable and transfers them to the General Ledger

View Accounting: displays the accounting entries of a bill receivable

The Bills Receivable Portfolio section of the Receivables Balances work area contains a subsection of bills that may need prompt attention from the user. This information is pushed to the user so that the user can take action.

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Slide 14 - Reconcile BR Transactions Posted to GL (1/2)

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Bills Receivable are included in the Receivables to Ledger Reconciliation report. The bills receivable and their application to transactions will display in separate rows on the Summary report and have their own drilldown detail reports for both receivables and accounting amounts. Bills receivable activity display as follows:

Display bills receivable applied to invoices for created, accepted, or canceled bills receivable in the Summary report

Display receipts applied to bills receivable in the Summary report and the Detail reports

Display accounting impact of all status changes (other than Canceled) in the Summary Report and the detail report for accounting

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Slide 15 - Reconcile BR Transactions Posted to GL (2/2)

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Bills receivable activity includes:

On-account credit memos that are applied to bills receivable are included in the Invoices Summary and the Detail reports, like any other credit memos.

Bills receivable with status of Creation (if unsigned or drawee-issued), Acceptance (if bill receivable is signed) or Cancelation, display in the Bills Receivable row of the Summary report and in the Detail reports for both receivables and accounting amounts.

Application of Bills Receivable to invoices for created, accepted, or canceled bills receivable display in the Bills Receivable Application row of the Summary report and the Detail reports for both receivables and accounting amounts.

Application of receipts to bills receivable display in the Applied Receipts row of the Summary report and the Detail reports for both receivables and accounting amounts.

The accounting impact of all status changes (other than Canceled) will be in Other Accounting row of the Summary Report and the detail report for accounting. These include status changes between Receivables accounts: Bills Receivable, Factored Bills Receivable, Remitted Bills Receivable, and Unpaid Bills Receivable. Even though the summary amount may be zero due to the netting of debits and credits between the accounts, users can still drill down to see details in the accounting report.

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Slide 16 - Bills Receivable

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Now let’s look at the benefits of this feature as a financial instrument used for debt processing by corporations, as loans from the banking institutions, and payments from the customer.

This feature enables businesses to process negotiable financial instruments called bills receivable in countries like Spain, Italy, France, and Japan for debt processing. Bills Receivable are commonly used in certain European countries to replace invoices, debit memos, bills receivable, et cetera thus consolidating a myriad of transactions into a single bill. The new bill receivable is then remitted to banking institutions for collection of payment. This flexible financial instrument allows corporations to manage their outstanding debit transactions efficiently in their negotiations with the bank and customers.

This feature also provides factored bills receivable to allow banks to make business loans that improve companies’ cash flows and obtain working capital against their open invoices.

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Slide 17 - Summary of Enhancement Capabilities

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Here is a summary of the features I have talked about today:

First, we can create a bill receivable manually to replace specific transactions.

Next, we can print bills receivable to send to customer for payment collection

We can also create a bills receivable batch automatically from select transactions

When the bills are ready for remittance, we can remit bills receivable to collect money from the bank

Once the bills are matured, we can eliminate risk on matured bills receivable

We saw how through various actions, we can manage bills receivable throughout their lifecycle

Finally, we can reconcile bills receivable transactions posted to General Ledger

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Slide 18 - Slide 18

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So that concludes the audio portion of this presentation, thank you for listening. There is no audio in the implementation advice section.

You can easily pause and rewind any of these slides if you require additional time to take in the detail.

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Slide 19 - Feature Impact Guidelines

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Slide 20 - Setup Summary

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Slide 21 - Bills Receivable System Options Setup Detail

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To enable bills receivable functionality in Oracle Fusion Receivables:

Open up the System Options for the Business Unit

Search for Business Unit you want

Select and Edit the Business Unit

Click on Cash Processing Tab

In the Bills Receivable section at the bottom of the page, you can

Enable bills receivable for this business unit

Optionally check the box “Allow factoring of bills receivable without recourse” (self explanatory)

Save your work

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Slide 22 - Bills Receivable Implementation Decision Points

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Does your company process bills receivable as negotiable financial instruments to collect payment as in some European countries like Spain, Italy, France, and Japan? In these countries, invoices are converted into semi-negotiable instruments that grant the right to collect debt.

If yes, enable Bills Receivable for your business unit in Receivables System Options. All associated functionality will then be available to you.

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Slide 23 - Job Roles & Associated Duty Roles

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Bills Receivable Management Duty is needed to create and process bills receivable transactions.

Receivables Administration Duty is needed for setting up Receivables system options, where the bills receivable functionality can be enabled per business unit.

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Slide 24 - Business Process Model Information (1/2)

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Slide 25 - Business Process Model Information (2/2)

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Slide 26 - Related Reports & BI Analytic Information

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There are 3 execution reports automatically generated in bills receivable:

The Bills Receivable Batch Report is automatically generated when you run the program “Create Bills Receivable Batch”. You can review the report and its contents to view the transactions that are included in the batch that you processed.

The Bills Receivable Remittance Batch Report is automatically generated when you run the program “Create Bills Receivable Remittance Batch”. You can review the report and its contents to view the transactions that are included in the remittance batch that you processed.

The Mature and Eliminate Risk on Bills Receivable Report is automatically generated when you run the program “Close Matured Bills Receivable”. You can review the report and its contents to view the bills receivable that had risk eliminated or closed.

The following reports have been enhanced to include bills receivable transactions in the report to reflect and account for these transactions in the system: