Account Generators in

the Order to Cash Cycle

Thomas J. Simkiss, Jr., J.D., CPA

BizTech
King of Prussia, PA
Agenda
Introduction
• Objectives
• Order to Cash Process
• Journal Entries from Order to Cash
• Account Generator
• Modifying an Account Generator
• Account Generation in R12
• Q&A
Introduction
• Thomas Simkiss, Jr., J.D., CPA
– 10 years Oracle Experience as an end user and
implementation consultant
– Financials, Supply Chain, Discoverer, DBI
– Managing Partner with BizTech
– CPA in NJ
• BizTech
– Certified Advantage Partner
– Based in the Mid-Atlantic
– Clients in CT, NJ, NY, DE, MD, and VA
– Applications Implementations
– Custom Development
– Oracle Hosting
Objectives
• Review the Order to Cash Process and
related sub-processes
• Introduce the Account Generator
• Understand the journals created during
Order to Cash
• Demonstrate how a basic account
generator modification
Order to Cash Process
• Touches many business areas
– Customer management, Order entry, Order
fulfillment and distribution, finance and
accounting
• Two sub-processes
– Order to Fulfillment
– Customer Invoice to Cash
Order to Fulfillment
Order Entry & Scheduling
OF1069
OF1069 PF2036
PF2036 PF2051
PF2051 OF1071
OF1071
Manage
Manage Check
Check Check
Check Schedule
Schedule
Customer
Customer ATP
ATP CTP
CTP and
and Sales
Sales Order
Order
Orders
Orders CTD
CTD Ship
Ship Date
Date
• Sales orders submitted • Calculate Available to • Calculate Capable to • The planner
by customers or sales Promise (ATP) for the Promise (CTP) and schedules sales order
reps are entered into customer order. Capable to Deliver (CTD) lines ship dates.
the system. for the customer order.

Order Entry & Scheduling

OF1073
OF1073 OF1076
OF1076 OF1054
OF1054
Send
Send Sales
Sales Manage
Manage Release
Release
Order
Order Sales
Sales Order
Order Credit
Credit Holds
Holds Enterprise Roles
Acknowledgement
Acknowledgement Holds
Holds on
on Sales
Sales Orders
Orders
• CSR sends sales order • Research and resolve • Review and release
acknowledgement to the shipment holds specific credit holds on
Customer associated with open individual sales orders.
sales orders. Planner

Credit Manager
A Shipping Clerk

Copyright © 2006, Oracle Corporation. All rights reserved.

Order to Fulfillment (Con’t)
Customer Invoice to
Receipt

Shipping
A MM1090
MM1090
Pick
Pick
MM1923
MM1923
Prepare
Prepare
MM1924
MM1924
Load
Load
MM1149
MM1149
Ship
Ship
Material
Material Material
Material for
for Material
Material Material
Material
Shipment
Shipment
• Shipping Clerk picks and • Shipping Clerk • Shipping Clerk loads • Shipping Clerk packs,
transfers orders to packages, consolidates the material to the dock weighs, counts, ships
Staging material to be sent to for shipment. and records
the customer. shipments

Copyright © 2006, Oracle Corporation. All rights reserved.

 Customer Invoice to Cash
Customer Invoice
OF1027
OF1027
Generate
Generate
Customer
Customer
Invoices
Invoices

• Bill for materials, OF5882

OF5882 FM0960
FM0960 OF1049
OF1049 OF1035
OF1035
services, projects, etc Present
Present Manage
Manage Maintain
Maintain Maintain
Maintain
Order to Fulfillment Customer Prepayments Customer Credit
Customer Prepayments Customer Credit
Invoices
Invoices Invoices
Invoices Memos
Memos

OF1028
OF1028 • Present invoices to • Process invoice • Enter and process
• Enter Prepayments,
Enter
Enter Manual
Manual customer or third Receive Payment, corrections, customer credit
Customer
Customer party. • Enter Invoice, Match adjustments and memos.
Invoices
Invoices • Send electronically or Invoice to updates.
by mail. Prepayment
• The AR clerk creates
a manual invoice
online.

Enterprise Roles
Accounts Receivable Clerk

Accounts Receivable Manager

B
Copyright © 2006, Oracle Corporation. All rights reserved.
 Customer Invoice to Cash (Con’t)
B Accounts Receivables
OF1032
OF1032
Apply
Apply Customer
Customer
Receipts
Receipts ––
OF1050
OF1050 Cash
Cash Applications
Applications
Process
Process OF1034 OF1031
OF1031
OF1034
Customer
Customer Apply
Apply Customer
Customer
Remit
Remit
Debit
Debit Memos
Memos • Payment is received. Receipts
Receipts ––
Customer
Customer
Receipt is created Adjustments
Adjustments
Receipts
Receipts ––
• Enter and process and applied to Bank
Bank Deposits
Deposits
customer debit invoice(s).
• Adjust payment
memos. OF1037
OF1037 including Receipt • Deposit customer
Apply
Apply Customer
Customer Application reversal receipts.
Receipts
Receipts –– and corrections
Credit
CreditCard
Card

• Payment is received.
Receipt is created and
applied to invoice(s).

Enterprise Roles
Accounts Receivable Clerk

Accounts Receivable Manager

Copyright © 2006, Oracle Corporation. All rights reserved.

Journal Entries from Order to Cash
• External Order
– Journal Entries Made AFTER Ship Confirm
• For Shippable Orders
– There is no COGS entry for non-shippable orders
• Internal Orders
– Many journal accounts determined by
Shipping Networks and delivery/ receipt
type (immediate or in transit)
 Journal Entries – External Order
Inventory Accounts Receivable

Cost of Goods Sold AR/Unbilled

Current Sales Order
Cost Price

Inventory Revenue
Current Sales Order
Cost Price

Inventory JE made after AR JE made after

ship confirm Autoinvoice
 Journal Entries – Internal Order
Accounts Accounts
Inventory
Payable Receivable

Cost of Goods Sold I/C Accrual* Intercompany AR

Current Current Transfer
Cost Cost Price

Intercompany AP Intercompany
Inventory Revenue
Current Current Transfer
Cost Cost Price

* Credit to I/C Accrual and Debit to Inv that is made on receipt of items is
not shown
Account Generator
• Uses Workflow technology to construct
key flexfield combinations
• Allows generation of account
combinations based on system
variables
Account Generators in Order to
Cash
• OM: Generate Cost of Goods Sold
Account (OECOGS)
• AR: Substitute Balancing Segment
(ARSBALSG)
• Inventory Cost of Goods Sold Account
(INVFLXWF)
Account Generator - Terms
• Workflow Builder
• Item Type
• Attribute
• Function
• Process
• Lookup Type
Modifying an Account Generator

1. Open the Account Generator to be

modified
2. Save to a local / network drive
3. Make modifications
4. Save to the database
5. Test
1. From the Workflow Builder, open the
account generator
• User – APPS
• Password – APPS Password
• Connect –
Applications Database
2. From the Hidden Items list, select the
Account Generator to be modified
3. Open the Generate Default Accounts Process, right
click on the process icon and select copy, then paste
4. Enter an Internal Name, Display Name and Description
5. Open the new COGS process
6. Remove the link from Copy Values from Code
Combination to Validate Code Combination
7. Insert the function Get CCID from Salesrep's
revenue segment and click OK
8. Insert the Function Copy Segment Value
from other Structure Code Combination
9. Update the Node Attributes
10. Connect the new functions to the existing
workflow functions (right click at the first
function and drag to the second)
11. Select the result type (where appropriate)
12. File Æ Save As Æ Database
13. From GL Super User, select the new COGS
Account Generator
Test the Account Generator
• Take an order through to ship confirm
• Test via COGS_11i.SQL available from
Metalink (Note: 159998.1)
Account Generator in R12
• Still available in R12
• FA Account Generator
– Option to use it or Subledger Accounting
Engine after upgrade
• Receivables
Thomas J. Simkiss, Jr., J.D. CPA
BizTech
Tsimkiss@biztech.com