Basic Setup’s Required for Auto Invoice Program in AR

Auto Invoice Program in AR and the Basic Setup’s Required

Here we gona understand why we run the Auto Invoice Program and the setup’s required prior to submitting the Auto Invoice Program.

Auto Invoice Program is run basically to generate a Financial Transaction, through this program the transactions are created, once the Sales order is fulfilled in the shipping execution module of order management. It is used to import and validate transaction data for which one can create invoices, debit memos, credit memos, and on-account credits. It rejects transactions with invalid information to insure the integrity of the data.

This process of Auto Invoice is executed with the help of two set of Programs:

  • Auto Invoice Master program
  • Auto Invoice Import Program

Auto Invoice Master program selects and marks records in the interface tables to be processed but doesn’t generates any output and it in-turns calls the Auto Invoice Import Program which Validates the selected record and creates transaction if it passes validation.

Now we shall start with the Setups:

  1. Define System Options

Responsibility: Receivables Manager

Navigate to SETUP->SYSTEMS->SYSTEM OPTIONS

 This step is generally done by the Functional Folks

  1. Define Auto Accounting

Auto Accounting is used to generate the default accounts code combination to the transaction distribution. We need to define Auto Accounting for 7 Accounts Receivables, Revenue, Tax, Freight, Auto Invoice clearing, Unbilled Receivables and Unearned Revenue.

Responsibility: Receivables Manager

Navigate to SETUP->TRANSACTIONS->AUTOACCOUNTING

For instance in our case it is as below:

Operating Unit: MM CARS Operating unit

Type: Receivables

Segment Constant
MM Company 01
MM Dept 00
MM Div 00
MM Location 00
MM Account 1210

Then SAVE

Follow the same approach for rest of the Accounts.

Note: The Segments are defined for training purpose

  1. Define Transaction Types

The data you insert into the interface table will be associated to a particular transaction type.
Create an invoice transaction type which will be used when we insert data into the Interface table.

Responsibility: Receivables Manager

Navigate to SETUP->TRANSACTIONS->TRANSACTION TYPES

Name: MM INVOICE

Class: Invoice

Transaction Status: OPEN

Creation Sign: Positive

Printing Option: Print

Then SAVE

  1. Define Transaction Source of type Imported

Transaction Sources are used to determine origin of the transactions, AutoInvoice requires a batch of type Imported.

Responsibility: Receivables Manager

Navigate to SETUP->TRANSACTIONS->SOURCES

OU: MM CARS Operating Unit

Name: MM OrderManagement

Type: Imported

Batch Source

Desc: MM OrderManagement

Enable (√) Automatic Transaction Numbering-Last Number: 1000

Standard Transaction Type: MM INVOICE

Auto Invoice Tab

Invalid Line: Reject Invoice

GL Date in a close period: Reject

Grouping Rule: Default

In all the other tabs (customer Information, Accounting information, Other information tab, Sales credit validation tab)

Replace Values to ID

Enable (▪) ID

Then SAVE

  1. Define Remit To Address

Remit-To address is our bill to address which will be printed on customer invoice based on the country, state and postal codes, where the payment would be received for the Invoice.

Responsibility: Receivables Manager

Navigate to SETUP->PRINT->REMIT TO ADDRESS->Create Remit-To Address

Country India
Address Line 1 MM HYD
City HYD
State AP
Postal 500001

Click on APPLY

Then search for the ADDRESS, Search for the Country INDIA

Receipt From (To Restrict the receipts only from a specific zones only say India, Sri-lanka and Pakistan)

Click on CREATE

Country INDIA

Then SAVE

Country Sri-Lanka

Then SAVE

Country Pakistan

Then SAVE

(Permit to receive the receipts from INDIA, SRI-LANKA and PAKISTAN)

  1. Define Accounting Rules

Accounting rules are used to recognize revenue portion of the transaction

Responsibility: Receivables Manager

Navigate to SETUP->TRANSACTIONS->ACCOUNTING RULES

Name: Immediate

Type: Fixed Schedule

Period: Month

No of period: 1

Schedule:

Period Percent
1 100

Then SAVE 

Accounting_Rule

  1. Open Periods in Receivables — Receivables Accounting Periods

Open or close periods in your accounting calendar to control the recording of accounting information for these periods

Responsibility: Receivables Manager

Navigate to CONTOL->ACCOUNTING->OPEN/CLOSE PERIOD

Open all the periods for the Current Year

Then SAVE

 

Final Step of the Setup is to switch to Order Management Responsibility

  1. Define Transaction Type Line

Responsibility: Order Management Super User

Navigate to SETUP->TRANSACTION TYPE->DEFINE

Assign/associate Invoicing rule, Accounting Rule, Transaction Sources and Transaction Type at the line Order Transaction type

Search for the Transaction Type: <Transaction Type Defined for Order Management>  Say MM LINE

Navigate to Shipping Tab

Warehouse: <Feed The WareHouse Details>

Navigate to Financial Tab

Invoicing Rule: Advance Invoice

Accounting Rule: Immediate <Defined in the Earlier Step>

Invoice Source: MM OrderManagement <Defined in the Earlier Step>

Non delivery invoice source: MM OrderManagement

Cost of Goods sold account: Say 01.00.00.00.5110

Receivable transaction type: MM INVOICE <Defined in the Earlier Step>

Then SAVE

 

This ends the complete set of Setup’s that are required for AutoInvoice Program.

Thanks You…!!!!!!

 

 

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: