Each invoice lists what the customer has received and explains how the total invoice amount, which may include tax and freight charges, has been calculated.

Invoices are entered in Oracle Receivables through the Transactions window or the Transactions Summary window, or they are imported through the AutoInvoice open interface. You must provide the customer number and bill-to address, the receivables account and freight account, and revenue and tax accounts for each invoice line. An invoice increases the customer's account balance by the invoice amount. Here are the accounting entries that would be created for a sample invoice amount of $125:

An invoice often has multiple revenue account lines. For example, an invoice from a hardware reseller for a PC server and installation shows two separate lines on the invoice. The PC sale and the installation service are posted to different revenue accounts

Manually enter an invoice or a debit memo: 
Navigate to the Transactions window.

1.1. Enter the transaction batch Source for this transaction. The default is the source you entered at the batch level. If there is no batch information, you must enter a source. The transaction batch source specifies automatic or manual batch and invoice numbering and the standard transaction type.

1.2. If your batch source does not specify Automatic Invoice Numbering, enter a transaction Number. Otherwise, Receivables assigns a number when you save. If you are adding transactions to a batch,the transaction number must be unique within this batch.
Attention: Once you save a transaction, you cannot update the transaction number.

1.3. Choose a transaction Type with a class of Invoice or Debit Memo.
Transaction types determine whether a transaction updates your open receivables, can be posted to your general ledger, if Receivables calculates tax, the transaction’s creation sign, and whether transactions with this type use natural application only or will allow overapplication. The transaction type also provides the default transaction class, payment term, and printing options for each transaction.

You can set up AutoAccounting to use transaction types when determining your general ledger accounts. If AutoAccounting depends on transaction type and you change this value, Receivables displays a pop–up window asking you if you want to recalculate all of your general ledger accounts. If you choose Yes, Receivables reruns AutoAccounting and makes the appropriate changes to your accounts (unless the transaction is a chargeback).

1.4. Enter the Date and Currency of this transaction. The default date is either the batch date or, if there is no batch information, the current date. The default currency is either the currency entered at the batch level or your functional currency, but you can change it to any currency that is defined in Receivables. If the currency is different from your functional currency, and you have not defined daily conversion rates, enter exchange rate information.
Note: You can optionally account for rounding differences that can occur when you create foreign currency transactions by enabling: Header Level Rounding.

1.5 If the transaction batch source you entered has Post to GL set to Yes, enter the GL Date for this transaction. The default GL Date is the current date. However, if the current date is not in an open period, the default is the last date of the most recent open period. The GL Date you enter must be in an Open or Future period.

1.5 If you are using manual sequence numbering, open the More tabbed region, then enter a unique Document Number. Otherwise, Receivables assigns a document number when you save.

2.1 Enter the customer Bill–to Name and Location for this transaction.

3.1 Enter the payment Terms for this transaction. Receivables calculates the Due Date based on the payment terms and date of this transaction. If you enter a split payment term, the due date is the date that the first payment is due.
Receivables uses the following hierarchy to determine the default payment terms, stopping when one is found:

• customer bill–to site level
• customer address level
• customer level
• Transaction Type

3.2 Enter a Salesperson (optional). If the system option Require Salespersons is Yes and you did not assign a salesperson to this customer at the customer or site level, you must enter a salesperson.

3.3 Select the invoicing rule

4.1 To enter the goods or services to bill to this customer, choose Line Items, then enter the Item, Quantity, and Unit Price for each item.
Receivables automatically calculates the total Amount for each line.

4.2 To enter Freight information for this transaction, choose Freight.

4.3 To review or update tax information for this line, choose Tax.
Receivables displays a default Tax Code (or tax group) if you defined one at one of the following levels: item, customer, customer site (and system level, if your tax method is ’VAT’). You can override this value if the profile option Tax: Allow Override of Tax Code is set to Yes.
Note: If you override a tax code, Receivables preserves the override across all updates to the invoice. Similarly, changing
the ship–to address or the line item could change the default tax code.