Slide 3 - Oracle Financials Cloud Release 12
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Hello, my name is Vincent. Welcome to the training for Release 12 . In this session we will talk about what’s coming in Oracle Fusion Receivables for Recurring Billing and Installment Update.
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Slide 4 - Agenda
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For this training, we’ll give an overview of the Receivables enhancements for Release 12, 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 5 - Enhancements Overview
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The Recurring Billing feature helps you manage the creation of invoices on a cyclical basis for a fixed period of time, according to the terms of the contract with your customer. A recurring bill plan can reliably generate invoices at the specified interval, thereby saving the user from manually creating the transactions. If during the life of the contract the terms change, you can easily update the bill plan and continue to generate invoices according to the new terms of the contract.
The Installment Update feature flexibly lets you update the due date and amount due on the unpaid portion of installments on a transaction. You can also add or delete installments, according to your customer requirements.
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Slide 6 - Recurring Billing
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Recurring Billing offers multiple features that makes generating transactions for a contract easy and simple to use. You can:
• Use the recurring bill plan to capture details of a contract
• Automatically process recurring transactions based on the bill plan thereby saving the user time manually creating the transactions.
• Update future transactions simply by updating the bill plan
• Track all current and past settings and updates to the bill plan
• Review the transactions generated by the bill plan
For example, you can create a bill plan to automatically generate monthly invoices to bill a customer $8,000 for leasing commercial office space in a plaza, and if the rents increase, update the bill plan to change the price of the lease.
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Slide 7 - Recurring Billing: Captures Contract Attributes in a Bill Plan
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Now let us talk about the attributes that the bill plan can capture for you. The Create Recurring Bill Plan page opens with certain fields populated by default for your convenience:
• Default Transaction Source: ORA_RecurringBilling. You can use this predefined transaction source, or define a new transaction source. Transaction sources for use with recurring bill plans must be of type Imported, and must have the Automatic Transaction Numbering option enabled.
• Default Transaction Type: Invoice. You can use this predefined transaction type, or define a new transaction type. Transaction types for use with recurring bill plans must not be of status Void, and must have the Post To GL and Open Receivables options enabled.
• Default Currency: Ledger currency.
• Default Billing Frequency: Monthly.
• Default Contract Start Date: System date.
• Default Contract End Date: System date plus 12 months.
• Default First Transaction Date: System date. This date will be used as the transaction date for the first transaction generated by the bill plan and all subsequent transactions, increased by the billing frequency, unless you enter a value in the Second Transaction Date field.
Additional notes on creating a bill plan:
• Second Transaction Date: Use this field to create a transaction date for the second and all subsequent transactions created by the bill plan, increased by the billing frequency. You enter a second transaction date if the first transaction created was for a partial period only, and you do not want to use the first transaction date as the creation date for all remaining transactions in the plan.
• Second Billing Period Start Date: The first billing period start date is the same as the contract start date. By default, each subsequent billing period begins according to the contract start date increased by the billing frequency.If you enter a date in the Second Billing Period Start Date field, this becomes the start date of the second billing period and all subsequent billing periods increased by the billing frequency.
• Revenue is recognized for recurring transactions generated by a bill plan based on the billing period start and end date.
• Transactions are not prorated for partial periods.
• Transaction amount remains the same for each billing period.
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Slide 8 - Recurring Billing: Automatically Process Recurring Transactions
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You can generate invoices from a bill plan by:
• Scheduling a run of the Generate Recurring Billing Data program.
• The Generate Recurring Billing Data program selects active recurring bill plans, generates invoice lines, and uploads the invoice lines to the AutoInvoice interface tables.
• You can schedule the Import AutoInvoice program to group invoice lines into invoices per customer, bill plan name, and bill plan period. Note: The bill plan name and bill plan period were added as mandatory grouping criteria to the AutoInvoice grouping rule.
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Slide 9 - Recurring Billing: Modify Bill Plan to Generate Future Transactions Differently
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Use the Edit Recurring Bill Plan page to update bill plan information, according to the needs of the contract with your customer.
Edit bill plan general information:
• You can Inactivate a bill plan by Unchecking the Active check box.
• Update these fields: Conversion Rate Type, Conversion Rate, Contract End Date, Bill-to Customer Site, Bill-to Customer Contact, Ship-to Customer Site, Ship-to Customer Contact, Payment Terms, Receipt Method, and Payment Instrument.
• Updates will only affect future generated transactions.
Edit bill plan lines:
• Add new bill plan lines: Click the plus (+) icon to add a bill plan line. Complete all of the required information for the new line.
• Delete existing bill plan lines: Select a line and click the delete (x) icon to delete a line.
• Update the quantity of an item: Use the Quantity field to update the quantity to be billed for the line item.
• Make a price change to an item: Use the New Price and Effective From fields to enter the new price for the line and the date the new price becomes effective.
• Updates will only affect future generated transactions.
Notes on price changes:
• If necessary, expose New Price and Effective From columns by using the View menu: View > Columns > Line Information > New Price and Effective From.
• You can only enter one price change at a time for a bill plan line.
• Transaction amount is not prorated for the period when the price becomes effective.
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Slide 10 - Recurring Billing: Tracks Bill Plan History for Modifications
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You can access the Review Recurring Bill Plan History page to track and view the bill plan history for modifications.
Either select a bill plan and click the Review Recurring Bill Plan History button, or click the Change History icon on a bill plan. Note: The Change history icon is only available if the bill plan contains historical information.
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Slide 11 - Recurring Billing: Review Transactions Generated By the Bill Plan
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You can review transactions generated by a bill plan in either of these ways:
1. From the Manage Recurring Bill Plans page:
• Search for bill plans.
• Select a bill plan with a Status Tracker value of Complete, and click the Review Transactions button.
• The Manage Transactions page opens.
• Click a transaction number to open the Review Transaction page.
2. From the Manage Transactions page:
• Search for transactions belonging to a bill plan using the Bill Plan Name field under Advanced Search.
• Click a transaction number to open the Review Transaction page.
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Slide 12 - Recurring Billing
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You can use Recurring Billing to:
• Capture contract attributes and accurately control periodic transactions without entering duplicate information.
• Reduce cost by automation of the process of generating recurring transactions.
• Easily amend bill plans and update item prices.
• Review changes made to bill plans and the transactions generated by the bill plan.
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Slide 13 - Installment Update
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You can now use the Review Installments window to easily update the unpaid portion of the installment amount, update installment due date, and add or delete installments to reflect the changes to a payment schedule. This helps users manage the installments to reflect new agreements with the customer on installments amounts and payments.
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Slide 14 - Installment Update: Update Unpaid Portion of Installment
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To review and update installments:
1. Navigate to the Manage Transactions page.
2. Search for transactions.
3. Click a transaction number to open the Review Transaction page.
4. From the Actions menu select Review Installments.
5. The Review Installments window opens with the current installments belonging to the payment schedule.
You can perform these updates in the Review Installments window:
• Note: To expose the Due Date and Original Amount fields, you must set the AR: Update Due Date profile option to Yes.
• Update the original amount of an installment for amounts that are greater than zero. If you adjust the amount downward, the adjustment cannot exceed the unpaid portion of the installment.
• The total of all installment amounts after any updates must equal the transaction entered amount
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Slide 15 - Installment Update: Update Due Date of an Installment
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You can perform this update in the Review Installments window:
• Update the due date of an installment.
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Slide 16 - Installment Update: Add/Delete Installments
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You can perform these updates in the Review Installments window:
• Add a new installment line and enter the due date and amount of this new installment.
• Delete an installment. You cannot delete the first installment, or installments that are paid, credited, adjusted, or disputed.
• The total of all installment amounts must equal the transaction entered amount.
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Slide 17 - Installment Update
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Installment Update provides you with the:
• Ability to manually override the payment installment schedule on the transaction to support your customer requests.
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Slide 18 - Summary of Enhancement Capabilities
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Here is a summary of the features I talked about today
The Recurring Billing feature covered in this training enables you to:
• Capture customer bill plan information with recurring billing details
• Automatically process recurring transactions based on the bill plan
• Modify bill plan attributes to update details of future transactions
• Track bill plan history for modifications
• Manage your recurring bill plans and the transactions generated from them
The Update Installment feature covered in this training enables you to:
• Update the original amount of any installment with a balance greater than zero
• Update the due date of an installment
• Add or delete installments
• You cannot delete the first installment, or installments that are paid, credited, adjusted, or disputed
• Total of all installment amounts after any updates must equal the transaction entered amount
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Slide 19 - Feature Impact Guidelines
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If you decide to use the Recurring Billing feature, you need to enable the feature to make it available to the users. You can easily enable this feature in the Receivables System Options set up page.
If you decide to use the Installment Update feature, you need to set the “AR: Update Due Date” profile option. You can easily enable this feature in the Receivables Profile Options set up page.
Both of these setups are discussed in detail later.
Both features are shipped with the Accounts Receivable Manager and Accounts Receivable Specialist Job Roles.
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Slide 20 - Setup Summary
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Recurring Billing is found in the Receivables functional area within the Financials Offering.
The setup for Recurring Billing is achieved by enabling the “Enable recurring billing” option in Receivables System Options.
Installment Updates is found in the Receivables functional area within the Financials Offering.
The setup for Installment Updates is achieved by setting the “AR: Update Due Date”profile option to Yes in Receivables Profile Options.
The setup for updating installments on transactions that have been printed is achieved by enabling the "Allow change to printed transactions” option in Receivables System Options.
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Slide 21 - Recurring Billing Setup Detail
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You can enable the Recurring Billing feature in the Receivables System Options page. To enable it, just check the “Enable recurring billing” checkbox under the Transactions section of the Billing and Revenue Tab in the Create or Edit Receivables System Options page.
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Slide 22 - Installment Update Setup Detail
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You can enable the installment updates feature in the Receivables Profile Options page. To enable it, search for the “AR: Update Due Date”profile option and set it to “Yes”.
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Slide 23 - Installment Update Setup Detail
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You can enable the “Allow change to printed transactions” feature in the Receivables System Options page. To enable it, just check the “Allow change to printed transactions” checkbox under the Transactions section of the Billing and Revenue Tab in the Create or Edit Receivables System Options page. This allows you to make changes to the printed transactions.