Define receivables activities to default accounting information for your miscellaneous cash, discounts, finance charges, adjustments, bills receivable, and receipt write–offs. Activities that you define appear as list of values choices in various Receivables windows. You can define as many activities as you need.

The Tax Code Source you specify determines whether Receivables calculates and accounts for tax on adjustments, discounts, finance charges, and miscellaneous receipts assigned to this activity. If you specify a Tax Code Source of Invoice, then Receivables uses the tax accounting information defined for the invoice tax code(s) to automatically account for the tax. If the Receivables Activity type is Miscellaneous Cash, then you can allocate tax to the Asset or Liability tax accounts that you define for this Receivables Activity.

Receivables uses finance charge activity accounting information when you assess finance charges in your statements and dunning letters. Query the Chargeback Adjustment activity that Receivables provides and specify GL accounts for this activity before creating chargebacks in Receivables. You can make an activity inactive by unchecking the Active check box and then saving your work.

Adjustment: You use activities of this type in the Adjustments window. You must create at least one activity of this type.
Note: In the Adjustments window, you cannot select the Adjustment Reversal, Chargeback Adjustment, Chargeback Reversal, and Commitment Adjustment activities to manually adjust transactions. These four activities are reserved for internal use only, and should not be end dated.

When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities. When your customers invoice against their commitments, Receivables automatically adjusts the commitment balance and generates an off-setting adjustment against the invoice using the Commitment Adjustment activity.

Bank Error: You use activities of this type in the Receipts window when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Oracle Cash Management.

Claim Investigation: You use activities of this type in the Receipts Applications and QuickCash windows when placing receipt overpayments, short payments, and invalid Lockbox transactions into claim investigation. The receivable activity that you use determines the accounting for these claim investigation applications. For use only with Oracle Trade Management.

Credit Card Chargeback: Use activities of this type in the Receipts Applications window when recording credit card chargebacks. This activity includes information about the General Ledger clearing account used to clear the chargebacks. Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one activity can be active at a time.

Credit Card Refund: You use activities of this type in the Receipts Applications window when processing refunds to customer credit card accounts. This activity includes information about the General Ledger clearing account used to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.

Earned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received within the discount period (determined by the transaction's payment terms).

Endorsements: The endorsement account is an offsetting account that records the endorsement of a bill receivable. This is typically defined with an Oracle Payables clearing account.

Late Charges: You use activities of this type in the System Options window when you define a late charge policy. You must define a late charge activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate activity for penalties.

Miscellaneous Cash: You use activities of this type in the Receipts window when entering miscellaneous receipts. You must create at least one activity of this type.

Payment Netting: You use activities of this type in the Applications window and in the QuickCash Multiple Application window when applying a receipt against other open receipts.

The GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the clearing account used when offsetting one receipt against another receipt. The Tax Rate Code Source field defaults to None.
You can define multiple receivables activities of this type, but only one Payment Netting activity can be active at any given time.

Prepayments: Receivables uses activities of this type in the Applications window when creating prepayment receipts. When the Prepayment activity type is selected, the GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the default account for prepayment receipts that use this receivables activity. The Tax Rate Code Source field defaults to None. You can define multiple receivables activities of this type, but only one prepayment activity can be active at any given time.

Receipt Write-off: You use activities of this type in the Receipts Applications and the Create Receipt Write-off windows. The receivable activity that you use determines which GL account is credited when you write off an unapplied amount or an underpayment on a receipt.

Refund: Use activities of this type in the Applications window to process automated non-credit card refunds. This activity includes information about the General Ledger clearing account used to clear refunds. Create at least one activity of this type. Only one activity can be active at a time.

Short Term Debt: You use activities of this type in the GL Account tabbed region of the Remittance Banks window. The short-term debt account records advances made to creditors by the bank when bills receivable are factored with recourse. Receivables assigns short-term debt receivables activities to bills receivable remittance receipt methods.

Unearned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received after the discount period (determined by the transaction's payment terms).

GL Account Source
Indicate how Receivables should derive the accounts for the expense or revenue generated by this activity by specifying a GL Account Source. Choose one of the following:

Activity GL Account: Allocate the expense or revenue to the general ledger account that you  specify for this Receivables Activity . If the activity type is Bank Error, Claim Investigation, Endorsement, Late Charges, Prepayment, Receipt Write-off, or Short Term Debt, you can only choose this GL account source.

Distribution Set: Allocate the expense or revenue to the distribution set that you specify for this Receivables Activity. A distribution set is a predefined group of general ledger accounting codes that determine the accounts for miscellaneous receipts and payments. You can choose this option only if the activity type is Miscellaneous Cash.

Revenue on Invoice: Allocate the expense or revenue net of any tax to the revenue account(s) specified on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.
      If the revenue on the specified invoice is unearned, then Receivables calls the Revenue Adjustment API, which uses AutoAccounting to derive the anticipated revenue accounting distribution accounts and amounts. The accounting engine then uses this information to allocate the adjustment or discount amount to these derived revenue account(s).

Tax Rate Code on Invoice: Allocate the net portion using the Expense/Revenue accounts specified by the tax rate code on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.
In the event of an adjustment to an invoice with zero amount revenue distributions, the adjustment activity's GL Account Source must not be set to Revenue on Invoice or Tax Rate Code on Invoice.

Tax Rate Code Source
Specify a Tax Rate Code Source to indicate where Receivables derives the tax rate code for this activity. Choose one of the following:
None: Allocates the entire tax amount according to the GL Account Source you specified. Choose this option if you do not want to separately account for tax.

Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by the Receivables Activity.

Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You cannot choose this option if the activity Type is Miscellaneous Cash or Late Charges.

In the event of a tax adjustment to an invoice with zero amount tax distributions, the adjustment activity's Tax Rate Code Source must not be set to Invoice.

If the Tax Rate Code Source is Activity or Invoice, Receivables displays the Recoverable and Non-Recoverable options. Indicate whether tax for this activity can be taken as a deduction. If the tax is deductible, choose the Tax Recoverable option; otherwise, choose Non-Recoverable.

If your Tax Rate Code Source is Invoice, Recoverable is the default but you can change it. If your Tax Rate Code Source is Activity or None, Non-Recoverable is the default and you cannot change it.

Note: If your activity type is Miscellaneous Cash or Bank Error, the Recoverable and Non-Recoverable options do not appear.

Activity GL Account
Enter an Activity GL Account, or select from the list of values.

• If the activity type is Credit Card Refund or Refund, enter a clearing account.
• If the activity type is Miscellaneous Cash and the GL Account Source is Distribution Set, then skip to the next step. You cannot enter both an Activity GL Account and a Distribution Set.
  
• If your activity type is Miscellaneous Cash, enter a Distribution Set, or select from the list of values. You use distribution sets to automatically distribute miscellaneous cash across various accounts.
  

Distribution sets
If the activity type is Miscellaneous Cash and you specified a Tax Rate Code Source of Activity, then select Asset and Liability tax rate codes.

• If the selected operating unit has multiple legal entities, then select tax rate codes for each legal entity.
• The Asset tax rate code is your collected tax account (tax received); use this tax rate code to account for tax on miscellaneous receipts.
  
• The Liability tax rate code is your deductible account (tax paid); use this tax rate code to account for tax on miscellaneous payments.