Invoicing in Oracle Order Management is the process by which data from Orders and Returns is communicated to Oracle Receivables to create invoices, credit memos and credits on account, recognize revenue and manage sales credits.
Invoicing Integration has been implemented as a workflow activity in Order Management. When it executes, it transfers fulfilled item information including quantities, selling prices, payment terms, and transaction dates to Oracle Receivables, which processes invoices for customers and accounts for revenue. Additionally, you can process credit memos and credits on accounts created from returns using this process. Upon completion of the Invoicing workflow activity, you must submit AutoInvoice from Oracle Receivables to import the invoice and credit data into Oracle Receivables. The Invoicing Integration workflow activity can be part of the Order Header workflow, if you want the entire order to interface to Receivables at the same time, or part of the Order Line workflow, which will interface each line or set of lines as they become eligible.
In Order Management, you have the option to send items and prices to Receivables net of any price adjustments or to send the list price and then send separate adjustment lines for each discount. This is controlled by the system parameter Show Discount Details on Invoice. If you choose to show discounts, they are sent as regular invoice lines to Receivables with a negative price, and are accounted for like the item to which they belong. The Description field for the discount lines is the name of the discount.
This feature provides visibility to discounts for printing on invoices, but does not provide separate accounting for discounts.
Freight and Other Charges
In Order Management, all freight and special charges such as insurance, handling, and export charges are passed individually to Oracle Receivables as invoice header level charges. (For Modifieres to appear in the invoice the 'Print on Invoice' check box should be enabled in the modifier)There is no grouping done by the Invoicing Activity. However, Oracle Receivables will consolidate all the freight charge lines into one line for accounting and printing on the invoice. Order Management passes the details to Receivables to support differing charge accounting and printing in the future, once Receivables supports such functionality.
Freight charges are applied at the header level. However if the customer uses line level invoicing, sometimes a part of the freight charge at the header level used to get invoiced. Moreover, if the freight charge used to get updated, this difference was not passed to invoice interface. Now with enhancements to the functionality, the amount difference is populated in the invoice interface tables. This indicates that a charge has to be credited and the invoicing takes place for the correct amount.
Over and Under Shipments
Overshipments are invoiced based on the setting of the Overshipment Invoice Basis system parameter and also corresponding attributes on the Customer and bill-to site. Values for this attribute are Ordered or Shipped. If this value is Ordered, the ordered quantity is invoiced, even if a larger amount was actually shipped. If this value is Shipped, the actual shipped quantity up to the Overshipment Tolerance limit is used for billing. Undershipments are always invoiced as the amount shipped. Please note that you must set over and under shipment tolerances to be able to overship or automatically close a line on an undershipment. You can set site-level shipping tolerances via a profile option. You can also specify exceptions for a customer, bill-to site, item or customer/item combination using the Customer Standard form, Master Items form, and an Order Management form for customer/item.
Invoice Level Processing
Oracle Order Management supports invoice processing at 2 levels:
1. Order Header level Invoicing
The Order Level Invoice Interface workflow activity is part of the Order Header workflow process. It will interface data from the entire order or return to Oracle Receivables at the same time.
2. Order Line level Invoicing
The Order Line level Invoice Interface workflow activity is part of the Order Line workflow process. It will interface data from each line or set of lines as to Oracle Receivables as they become eligible for interface.
Note: Grouping of orders or order lines for invoicing or credit memos is dependent upon the mandatory Grouping Rules and optional Grouping Rules you setup in Oracle Receivables. There is no grouping done by the Order Management Invoice Interface Workflow activity.
Are there any way to accounting discounts in one specific segment account? different of Receivables account?
Kindly guide me where the discounts are setup if we want to provide it to customer after the invoice, based on certain parameters like customer's sale for the month or else....