Oracle Apps

Overview

Invoice processing in Order Management is the process by which data from Orders and Returns is interfaced to Oracle Receivables for the creation of invoices and credit memos to recognize revenue and manage sales credits.

Within Oracle Order Management, invoice processing has been implemented as a workflow activity (Invoice Interface). The Invoice Interface activity collects order, return, and freight charges information from Order Management tables and transfers this information to Oracle Receivables Interface tables. Data elements such as item description, ordered quantity, unit list price, total amount, payment methods, warehouse id, and sales credit are transferred via Oracle Receivables Interface tables, and upon completion the Invoice Interface activity, the Oracle Receivables concurrent program AutoInvoice must be submitted to import the invoice and credit data into Oracle Receivables.

Note: Return orders without reference information of the sales order or invoice will result in on account credits.

For additional details on interfacing transactions to Oracle Receivables, please refer to Oracle Financials Open Interface Reference manual.

For more information on Invoicing and Credit Memo creation, please refer to the Oracle Receivables User's Guide and the Order Management Suite Open Interfaces Manual.

Invoice Level Processing

Oracle Order Management supports invoice processing at 2 levels:

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.

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.

Order Management Invoice Interface Activity

The Oracle Order Management' Invoice Interface workflow activity enables you to:

Interface Orders, Returns and Charges information to Receivables to create invoices, credit memos and credits on account, recognize revenue and manage sales credits
Interface an entire order at once or interface a line or set of lines as they become eligible for invoicing.
Interface return lines as credits on account for the credit-to customer, in addition to creating credit memos from returns with reversed revenue and sales credits.
Interface discount names and discount amounts. (Discount amount is interfaced and displayed as a negative number).
Interface ATO or PTO configured items such as Model, Option and Classes lines.
Interfacing of partial quantity is only supported for Line Level Invoicing. Interfacing fully or partially fulfilled configuration lines is available for Required for Revenue lines only.
Interface order header charges and order line charges as invoice header level charges.
Interface more than one charge lines associated with one order header or one order line.
Interface all charge lines associated with one shipment line with the same currency.
Interface different types of information, such as (but not limited to)

Product information: item description or customer item description, ordered quantity, and unit of measure.
Tax information: tax code, tax exempt flag, and warehouse id.
Pricing information: list price, extended amount, and discounts.
Payment Method information: credit card information and commitment id.
Shipping information: delivery name.
Sales Credits information: sales person names and sales credit percentage.
Currency information: currency code, conversion type and conversion rate.

Note: Order cost lines are not invoiceable.

Order Management Invoicing of Sales Order Lines

The Order Management Invoice Interface activity interfaces sales order line details to Oracle Receivables. Order lines with any of the following conditions are not eligible for invoice interface:

item with Invoiceable attribute set to No or
item with Enabled Invoicing attribute set to No or
included item type or
configure item type or
service item where the serviced item is not serviceable or
internal order

For all conditions listed above, the Invoice Interface workflow activity is completed with a status of Not Eligible.

Order or return lines will not be interfaced to Oracle Receivables if there is a hold on the line or on the order. When the invoice interface activity encounters a order or return line with a status of On Hold, the Invoice Interface workflow activity will also complete with a status of On Hold. You can perform the manual `Progress Order' concurrent program to continue with the order processing, or the order or return line will automatically be re-evaluated at a 12 hour interval.

The workflow activity Fulfillment must be placed prior to the Invoice Interface activity for Required for Revenue cases. Order Management performs the Invoice Interfacing activity for orders with partial shipped quantity in Required for Revenue cases at the order line level only.

The quantity information transferred to Oracle Receivables follows the following hierarchy:

Fulfilled quantity
Shipped quantity
Ordered quantity

Discount information

Invoice Interface activity interfaces price adjustment information to Oracle Receivables. You have an option to print detail discount information.

You need to set profile option OM: Show Discount Details on Invoice to YES to print detail discount information on the invoice. The discount information gets printed on a separate invoice lines from the order information. The product line and the associated discount lines roll into the same revenue account.
Discount lines in the invoices include:

Discount Name - displayed in the description field
Discount Amount - displayed in negative quantity.

For example, suppose you had an order line with the following example data and the profile option OM: Show Discount Details on Invoice is set to YES.

Description = Item A
Quantity = 2
Unit Price = 100
DiscountName1 = 10%
DiscountName2 = 15%

The table below lists example order line details and what will be displayed on a Oracle Receivable invoice for the data listed above.

Line	Description	Quantity	Unit Price	Extended Amount
1	Item A	2	100	200
2	Discount Name 1	2	< 10 >	< 20 >
3	Discount 2	2	< 15 >	< 30 >
Order Total				150

Note that column Extended Amount for Line 1 within the table above does not include the discount amount on the invoice line.

Now, suppose the profile option OM: Show Discount Details on Invoice is set to NO. No detail information relating to discounts will be displayed on the Oracle Receivables invoice, but you will be able to view the Amount Paid per invoice Line. The table below lists example order line details and what will be displayed on a Oracle Receivable invoice for the example data listed above.

Line	Description	Quantity	Unit Price	Extended Amount
1	Item A	2	100	150
Order Total				150

Note that column Extended Amount within the table for Line 1 does include discount on the invoice line, but no additional details.

Charges information

The Invoice Interface activity also interfaces order or return charge information to Oracle Receivables. However, Order Management currently only interfaces the charge lines as invoice header level charges. With Order Management;

you can create different types of charges, and all charge lines are invoiceable. Cost lines are not invoiceable.
you can have more than one charge lines associated with a single order header or a single order line.
all charge lines associated with a single shipment lines must have the same currency.
all charge lines are individually transferred to Oracle Receivables as invoice header level charges. Receivables will then consolidate the charges into 1 charge line to be displayed on the invoice.

Order Management passes detail charges information to Receivables, but you will not be able to view individual charges on the invoice itself.

For Example;

An order with the following information is invoiced:

Order #123 consisting of one order line with order Freight Charge of $5.

For Order #123, Line#1: Item Number = ItemXYZ, Qty = 1, Price = $100. The order line has a Freight charge $10, and additional charge (insurance charge) of $3.

Oracle Order Management will interface 3 charge lines:

$5 (order charge)
$10 (line charge)
$3 (line charge)

The 3 charge lines will be transferred individually to Receivables, and then be consolidated within Receivables as a single order charges. (total of $18)

Invoice #500 for Order #123:

Freight charge for the invoice is $18 (total of all the charges)
The table below describes the invoice line details for the example above. Notice the column Extended Amount does not include any charges.

Line	Description	Quantity	Unit Price	Extended Amount
1	Item XXZ	1	100	100
2	freight charges			18
Order Total				118

Delivery Based Invoice Numbering

The Invoice Interface activity interfaces invoice number based on delivery name to Oracle Receivables if the profile option OM: Invoice Numbering Method is set to Delivery.

All the lines that belong to the same delivery are interfaced to Oracle Receivables at the same time.
Invoicing based on Delivery Name is only performed for Order Line level invoicing.
Invoicing based on Delivery Name can not be performed for Order Header Level Invoicing. For Header Level Invoicing, the whole order is interfaced when it is eligible, and any delivery set information is ignored.

Required for Revenue

The Invoice Interface activity interfaces full or partial quantity of a line where there is a Required for Revenue component on the Bill of Material. The activity also prevents the parent item from invoicing until the Required for Revenue component has been shipped.

If you have a model with a non-optional component and Required for Revenue property set to Yes, then the model can not be invoiced until the non-optional component has shipped. Only the immediate parent line of the Required for Revenue component is affected, with the exception of Classes. If any item below a class in a bill has the Required for Revenue property set to Yes, then that item must be shipped before the parent item and other items in the class are eligible to be interfaced to Oracle Receivables.

For additional details, please refer to the Order Management Suite Open Interfaces Manual.

The Fulfillment workflow activity must be placed before Invoice Interface activity where there is a Required for Revenue component on the Bill of Material. If you place the Fulfillment workflow activity after the Invoice Interface activity, your invoices will be incorrectly generated.
Invoice Interface activity is completed with workflow status Partial if line is only partially interfaced to Receivables. The remaining quantity gets interfaced when the associated Required for Revenue component has been fulfilled.

Viewing Invoice Information

Invoice data, such as Invoice Number, Batch Source, Invoice Date, Amount and Balance, can be viewed under:

Additional Line Information -- Receivables tab. This displays invoice information for the active line.
Additional Order Information -- Receivables tab. This displays invoice information for all of the lines within the order.

Invoiced quantity can be viewed on the order lines.

Click Invoice Details button to view the Oracle Receivables Transactions form.

Profile Options

The table below lists profile options that will affect the operation of the Order Management Invoice Interface activity.

Profile Option Name	Usage
OM: Invoice Numbering Method	determine whether to use automatic invoice numbering, or to use delivery name numbering.
TAX: Inventory Item for Freight	Invoice Interface activity interfaces this item for freight charges treated as revenue lines.
TAX: Invoice Freight as Revenue	determine that freight charges are treated as revenue lines, and Invoice Interface activity interfaces VAT tax information and sales credits for them as well.
TAX: Allow Override of Tax Code	determine whether or not to interface VAT tax code information.
OM: Credit Salesperson for Freight on Sales	determine whether to pass dummy sales credits or order line/header sales credits for freight lines when freight lines are interfaced as revenue lines.
OM: Show Discount Details on Invoice	determine whether or not to print detail discount information on the invoice.
OM: Invoice Source	Value is interfaced to Receivables if no value is defined at OM Transaction Type.
OM: Non-delivery Invoice Source	Value is transferred to Receivables if OM: Invoice Numbering Method is set to Delivery and line is non-shippable.
OM: Overshipment Invoice Basis	determines whether to interface ordered quantity or shipped quantity for overshipment.
OM: Invoice Transaction Type	Value is transferred to Receivables if no value is defined at OM Transaction Type.

For additional information surrounding the user of the profile options listed above, see Order Management Profile Options.

Workflow Activity Results

The table below describes the possible completion states that the Invoice Interface Workflow activity can complete with, and also provides a brief description of each status.

Workflow Status	Meaning
Complete	The order or return line has successfully interfaced to Receivables.
Not Eligible	The order or return line is not eligible for invoicing. Information is not interfaced to Receivables. See `Sales Order Lines' above for possible cause.
Partial	Only a partial quantity of the order line interfaced to Receivables.
On-Hold	There is a hold on the order or order line that prevents invoicing. The line gets re-processed at a 12 hour interval.
Incomplete	An error occurred in the invoice processing. Typically the process errors out due to incomplete or missing data on the order line, data such as batch source name, Receivables transaction type, credit memo transaction type, service start date and end date for service lines, set of books id, line type, description, currency code or conversion type.

Internal Sales Orders

The Invoice Interface Workflow activity will not interface internal sales order lines, even if the activity is present within a workflow process. Internal order lines are never interfaced to Oracle Receivables.

Exception Handling

Any errors that occur for during the Invoicing Interface Workflow activity are recorded in the Messages table. Use the Process Message window to view all the messages logged by the Invoice Interface workflow activity.

Note: If invoices are created after the completion of Receivables Autoinvoice concurrent program, examine both the log file and report output resulting from the concurrent job. You can then correct the data and resubmit the Receivables concurrent program AutoInvoice. If the problem is identified as a application setup issue, correct the setup and resubmit the Receivables AutoInvoice concurrent program.

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Oracle Apps - AR Invoice Processing