Early Payment Discount In Account Receivable

Early Payment Discount

Example
customer order received for item A and we have scheme for item A if user order item A we will give him discount of 200 $ on each items but only in case if he pay in 3 days how it will be handled ?


Solution Example:

Payment Terms
Receivables lets you define standard payment terms for your customers to specify the due date and discount date for their open items. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. For example, the payment term ‘2% 10, Net 30’ indicates that a customer is allowed a two percent discount if payment is received within 10 days, after 10 days, the entire balance is due within 30 days of the transaction date with no applicable discount. You can define proximal payment terms to pay regular expenses such as telephone bills and credit card bills that occur on the same day each month. You can also create split payment terms for invoice installments that have different due dates.

You can use payment terms to determine the amount of each installment. Receivable lets you either distributes tax and freight charges across all installments, or allocates all freight and tax amounts in the first installment of a split term invoice. You can use prepayment payment terms to indicate which business transactions require prepayment for goods and services. Receivables displays the active payment terms you define as list of values choices in the Customers, Customer Profile Classes, and Transactions windows.

To define a payment term:

1. Navigate to the Payment Terms window.
2. Enter the Name of this payment term.
3. Select the Prepayment check box if you are defining a prepayment payment term.

Receivables feeder systems, such as Oracle Order Management, can optionally implement business processes around prepayment payment terms to indicate that a particular business transaction requires the capture of funds before the delivery of a product or service.

4. To associate a credit check with this payment term, check the Credit Check box. Oracle Order Management uses this information to determine when to place an order on hold. In Oracle Order Management, if the profile for an address does not have credit checking limits defined in a particular currency but the customer does, then the order passes credit check. If the address does not have limits in the currency and neither does the customer, then the order is compared to the customer limit in that currency.

5. If you do not want to let your customers take discounts for partial payments on items associated with this payment term, then uncheck both the Allow Discount on Partial Payments check box
as well as the check box for the Discount on Partial Payment system option.

6. Enter the Installment Option for items assigned to this payment term. This indicates how Receivables will allocate the freight and tax charged to transactions using this payment term. Choose ‘Include tax and freight in first installment’ to include all tax and freight charges in the first installment. Choose ‘Allocate tax and freight’ to distribute tax and freight charges across all installments.

7. Enter the Base Amount for this payment term. The default is 100, but you can change it. The base amount is the denominator for the ratio Receivables uses to determine the amount due for installments of invoices to which you assign this payment term. The sum of the relative amounts for all of the payment schedules that you define for these payment terms must be equal to the value that you specify as a base amount.

8. If this payment term uses proximate terms, enter a Cutoff Day for inclusion in the monthly billing cycle. You can either enter a Day of the Month or select the Last Day of Month checkbox. Select the Last Day of Month check box to create a payment term to use with a consolidated billing invoice that includes all transactions created during the month that you specify.

If you are using the Consolidated Billing Invoices program, then you must enter values for the Day of Month and Months Ahead fields in the Due region of the Payment Schedule. Consolidated Billing does not use the Days or Date fields in the Due region. Customers who use payment terms where the value for the Cutoff Day is greater than the value in the Due: Day of Month field should not enter a value of 0 in the Months Ahead field. This will result in the following erroneous scenario:

Cutoff Day = 25
Day of the Month = 15
Months Ahead = 0
in this example, a consolidated billing invoice that is created on January 25 will be due before its creation date on January 15. To avoid this scenario, you must enter a value that is greater than 0 in the Months Ahead field.

9. If you want transactions assigned to this payment term to be printed before the due date, enter a number of Print Lead Days. Receivables will print this transaction x number of days before the due date, where x is the number of days you enter here.

10. Enter the Discount Basis you want Receivables to use when calculating discounts for your invoices.

Choose one of the following discount methods

Invoice Amount: Choose this option to calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices.

Lines Only: Choose this option to calculate the discount amount based on only the line amounts
of your invoices.


Lines, Freight Items and Tax: Choose this option to calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level.

Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices.


11. Enter a range of Effective Dates for this payment term. If you do not enter an end date, this payment term will be active indefinitely.

12. Enter a line number for the installment term that you are defining in the ‘Seq’ field. Enter a higher number for each installment term with a later due date. For example, if you create terms with 50% due in 15 days and 50% in 30 days, enter ‘1’ in this field for the first line and ‘2’ for the second line.

13. Enter the Relative Amount for this payment term. This is the numerator of the ratio that Receivables uses to determine the amount due for this installment of these payment terms. The sum of the relative amounts for all of the payment schedules that you define for each payment term must be equal to the base amount for this term.

14. Enter the number of Days after the invoice date that payment is due for this installment term (optional). For split payment terms, this number indicates the number of days after the invoice date that an installment is due.

15. Enter the Date on which payment is due for this installment term (optional). If you do not complete this field, enter a value for either Due Days or both Day of Month and Months Ahead.

16. If you are defining proximate terms, enter the Day of Month that payment is due for this installment term. For example, if payment is due on the fifteenth of each month, enter ’15.’

17. If you are defining proximate terms and you entered a value for Day of Month, enter the Months Ahead to which these installment terms of the proximate terms refer.

For example, if you entered ’15’ for Day of Month and you enter ‘2’ here, an invoice dated in May will have a due date of July 15.

18. Save your work. To assign discounts to each payment schedule line of your payment term

Entering Discount Information
Receivables lets you assign discounts to your payment terms. You can also assign multiple discount line terms to each installment of your payment terms. For example, you might give your customer a 10% discount if they pay within 10 days, but only a 5% discount if they pay 11 to 20 days after the invoice date.
Discounts do not apply to Automatic Receipts. If you use the automatic receipts feature to create your Bills of Exchange and Direct Debits, Receivables will not calculate discounts, even if your customers pay before the due date.


Prerequisites
Define payment terms
To assign discount information to a payment term:
1. Navigate to the Payment Terms window.
2. Query or enter the payment term.
3. Choose Discounts.
4. Enter the discount percentage and number of Days for this payment term. For example, to give customers using this payment term a two percent discount if payment is received within ten days, enter ‘2’ and ’10’ respectively.
5. To limit the period of time that the discount for this installment’s discount line will be active, enter the Date, day of the Month, and the number of Months Ahead for this discount’s expiration date. Receivables uses these values to calculate the discount date during invoice entry.
6. Save your work.

Source: – Metalink, Receivable User Guide

How can we reduce time for shipping in Oracle Order Management?

In one of my client they are facing problem that oracle shipping process is very hectic and lengthy for making one gate pass / delivery note they need 10 to 15 minutes

They are following these Steps to Ship / dispatch an order

Release order

Navigate to Transact Move order

Allocate quantity

Transact Quantity

Switch to order Management responsibility and navigate to shipping Form

Make delivery

Make Trip

Close Trip

Solution

We can Reduce Dispatch Time by follow the following steps

On the release sales order form, if we select Auto Pick Confirm as Yes and Auto Create Delivery as Yes then the pick release program will complete creation of Move Order, allocation of move order, transaction of move order, creation of delivery.

After this User need to ship confirm the delivery and dispatching process will be over.

We can also have an option to automatically ship confirm ‘Automated Ship Confirmation’. We can use the Ship Confirm Rule on the Release Sales order form. From the Release Sales Orders for picking window we can specify an individual sales order to perform Auto Ship Confirm. Auto Ship Confirm will be performed for all the deliveries assigned to the individual order

How can I unreserved quantity, Reserved against a closed / canceled sale order

Problem

In one of my operating unit sale officer enter order and released to ware house, after that sale officer cancel that sale order. Now it showing me quantity reserved for that sale order in system but actually order is canceled how can I unreserved this quantity

Solution

For 11i – 11.5.7 / INV.G and above
——————————————-

Download and review Patch.3170660 “script i2471362.sql not correcting orders for cancelled qty”

Run i2471362.sql to remove any old reservations

To delete a reservation manually

NAVIGATE to INV/On hand Availability/ Reservations Query up the item and find the associated row for the order Place cursor on the row to be deleted and click on delete icon and save icon.

Reference

Metalink Note Id 150081.1

Script to Clear Orders Stuck in Workflow @ Releasing

If you have some order lines in booked status and the ship line activity is in error instead of ‘Notified’ then use the following script (But check on Test Environment first). Pass the line_id for one of the line from problematic order and check if this will progress the line to ‘Awaiting Shipping’ and the work flow activity to Notified status.

set serveroutput on
Declare

l_line_id NUMBER := &line_id; /* Order Line Id*/
l_org_id NUMBER; /* Organization Id*/
l_count NUMBER;
l_activity_id NUMBER;
l_result VARCHAR2(30);

Begin

OE_Standard_WF.OEOL_SELECTOR
(p_itemtype => ‘OEOL’
,p_itemkey => to_char(l_line_id) /* Order Line Id*/
,p_actid => 12345
,p_funcmode => ‘SET_CTX’
,p_result => l_result
);

select activity_id
into l_activity_id
from wf_item_activity_statuses_v
where item_type = ‘OEOL’
and activity_name = ‘SHIP_LINE’
and item_key = to_char(l_line_id)
and activity_status_code = ‘ERROR’;

wf_item_activity_status.create_status(‘OEOL’,to_char(l_line_id),l_activity_id,wf_engine.eng_notified,wf_engine.eng_null,SYSDATE,null);
commit;
End;
/

Calculate Price Flag in Oracle Order Management

Price Flag indicates the control for which the price is frozen

Calculate Price Flag in Oracle Order Management

CRM and Order Management Integration

Order Entry had a separate entity: SO_LINE_SERVICE_DETAILS to store install base information associated with product sales order lines. You had to run the Service Interface concurrent program to then communicate the install base information to Oracle Service. This program is now obsolete. Order Management integrates with the various CRM products (IStore, Telesales, Quotes etc) via Order Capture. Any changes to the Order Object are communicated on line to Order Capture via the ASO_ORDER_FEEDBACK_PUB.UPDATE_NOTICE API. Order Capture in turn publishes the information to a queue that all the interested CRM products poll.

An Oracle White Paper

How to Check Order In Workflow Error and Not Bookable

By Using Following Query you can extract Order Number and Other Details which are in Work flow Error

SELECT h.order_number, h.org_id “Operating Unit ID”, h.ordered_date,
h.header_id, h.cancelled_flag, h.open_flag, h.flow_status_code,
h.creation_date, h.last_update_date,
(SELECT COUNT (1)
FROM oe_order_lines_all l
WHERE l.header_id = h.header_id AND open_flag = ‘Y’) “Order Open”
FROM oe_order_headers_all h, wf_items wi
WHERE wi.item_type = ‘OEOH’
AND wi.item_key = TO_CHAR (h.header_id)
AND h.open_flag = ‘Y’
AND NOT EXISTS (
SELECT ‘WF is pending’
FROM wf_item_activity_statuses wias
WHERE wias.item_key = TO_CHAR (h.header_id)
AND wias.item_type = ‘OEOH’)