Accounts Receivable Profile Options

For the Accounts Receivable values the following are the most critical profile options and used to control Oracle Receivable functionality

AR: Allow Transaction Batching – If you enter small volumes of manual transactions, it is not necessary to use batches for transactions. If you enter high volumes, you should use batching for transactions. You should always use batching for receipts since you get immediate feedback of what you have done and any potential problems.

AR: Cash Allow Actions – As part of the cash application process, the applier has the option to create adjustments (write-offs) and charge backs if you set this option to Yes. I recommend that you do that, you can always control the amounts they write-off using approval limits.

AR: Cash – Default Amount Applied – Always set so the default is the amount remaining on the receipt, not the amount remaining on the invoice. If you allow the receipt amount to default to the invoice balance, this allows you to apply more than you really have.

AR: Change Customer Name – In reality customers change their names and this is a valuable feature but, I recommend that you set it “Yes” only after to have been live for a few weeks. This is a good way to keep novice users from overlaying good names with invalid names, until the know what they are doing.

AR: Close Period – Run Collections Effectiveness – I recommend that you set this option to “No.” Most users do not use this report and it will just slow the close process.

AR: Update Due Date – Allow change to due date. In rare instances it is desirable to change the due date on an invoice (for example, you have negotiated this with the customer). By setting this profile option to “Yes,” you have the option of doing this. What this really does is to allow you to make your aging look better. Consider whether or not this is desirable in you business situation.

AR: Use Invoice Accounting For Credit Memo – In most cases, if you know the original invoice, it is desirable to offset the accounts that were used for the invoice when creating the related Credit Memo. This option allows you to do that.

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