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Slide 4 - Oracle Financials Cloud
Release 9
Slide notes
Hello, my name is Vincent. Welcome to the Release 9 Training for Oracle Fusion Receivables Enhancements. In this session, we’ll cover the Global
Expansion Cross Business Unit Receipt Processing enhancements we have made in this release.
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Slide 5 - Agenda
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For the enhancements covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value
they bring.
Next we’ll explain what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 6 - Enhancements Overview
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Cross Business Unit Receipt Processing provides a simple solution to manage your receipts and invoices across business units within the same ledger.
Using the Service Provider business model, you can process and apply receipts created in the customer payment business unit to invoices of designated
Billing Business Units.
For example, in the Service Provider Model diagram, we see that Vision Operations USA Ledger has 7 business units:
The North Business Unit - is set up as a customer payment business unit that receives payment and processes receipts for 3 billing business units: NC
Business Unit, NE Business Unit, and NW Business Unit. So the receipts from North Business Unit can be applied to invoices across business units to the
3 billing business units. This improves flexibility for cross business unit receipt processing.
Similarly, South Business Unit - is set up as a customer payment business unit that receives payment and processes receipts for 2 billing business units:
SE Business Unit and SC Business Unit.
So the receipts from South Business Unit can be applied to invoices across business units to the 2 billing business units. This improves flexibility for cross
business unit receipt processing.
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Slide 7 - Cross Business Unit Receipt Processing
Slide notes
The standard centralized customer payment processing business unit model has this basic setup:
Servicing Business Unit: A customer payment business unit can be setup as a service provider for the billing business unit.
Client Business Unit: A billing business unit can be setup to be a client of a customer payment business unit.
In the diagram, we see that East Business Unit (EBU) is the servicing business unit so it processes and applies receipts to invoices from
Western Business Unit (WBU), Central Business Unit (CBU), and East Business Unit (EBU).
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Slide 8 - Cross Business Unit Receipt Processing
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Allow any business unit to process receipts: A business unit can be enabled as an override business unit to allow its invoices to be processed by any other
payment business unit in the same ledger.
In the Override Business Unit scenario:
For example:
North Business Unit is defined as a payment business unit.
South Business Unit is defined as a payment business unit.
SE Business Unit is defined as a billing override business unit.
Then invoices from SE business unit can be paid by receipts from North business unit and South business unit.
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Slide 9 - Cross Business Unit Receipt Processing
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In the Receipt Level Override scenario:
You can invoke override in the Receipts UI by checking the “Include transactions from all business units” option. This enables a receipt in that business unit
to be eligible to apply to invoices from billing business units in the same ledger.
The diagram shows the receipt from Vision Operations applied to invoices from Vision Operations and Vision Fusion.
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Slide 10 - Cross Business Unit Receipt Processing
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Now let’s look at the benefits of this feature from the invoice and payment perspective.
First, by enabling cross business unit payment processing, you can accommodate flexible payment of global business transactions.
Second, you can reduce transaction costs with streamline payment processing of one payment against invoices from multiple business units.
Third, you can reduce administration costs by processing a single payment on behalf of multiple legal entities thus reducing bank statement entries and the
bank account reconciliation effort.
Fourth, you can reduce control costs by processing receipts in a single department rather than many autonomous departments with their own processes,
risks and controls.
Fifth, you can improve audit ability by tying a cross-business unit transaction together with intercompany processing to ease intercompany reconciliation.
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Slide 11 - Summary of Enhancement Capabilities
Slide notes
Here is a summary of the enhancements that we have seen today.
First, we saw the ability to increase operational efficiency by centralizing your customer payments processing across business units when operating in a
shared service model.
Second, I showed you how to define service provider relationships to process a single payment from a customer payment business unit against multiple
invoices from different billing business units within the same ledger.
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Slide 12 - Slide 12
Slide notes
So that concludes the audio portion of this presentation, thank you for listening. There is no audio in the implementation advice section.
You can easily pause and rewind any of these slides if you require additional time to take in the detail.
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Slide 13 - Feature Impact Guidelines
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Slide 14 - Setup Summary
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Use the “Manage Business Unit” task to set up the business functions for your Client Business Units or Servicing Business Units. A Client Business Unit is
enabled by Billing and Revenue Management business function. A Servicing Business Unit is enabled by Customer Payments business function.
Use the “Manage Service Provider Relationships” task to set up the Service Provider Relationship between the customer payment and the billing business
unit.
Use the “Manage Receivables System Options” task to enable the “Allow any business unit to process receipts” option for a business unit. Setting this
option turns the business unit into an override business unit. An override business unit allows any payment business unit in the same ledger to process its
receipts.
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Slide 15 - Cross Business Unit Receipt Processing Setup Detail
Slide notes
Navigate to FSM: Manage Service Provider Relationships task to enable a business unit to be a payment service provider
Cross Business Unit Receipt Processing provides a simple solution to manage your receipts and invoices across business units and designate servicing
business units and client business units.
Servicing Business Unit: A business unit can be enabled to allow receipts of its business unit to be applied to invoices of client business unit. It then
services other business units.
Clilent Business Unit: A business unit can be enabled to allow receipts from a servicing business unit to be applied to its invoices. It is then being serviced
by another business unit for receipts processing.
In the diagram, we see 2 billing business units:
Vision Fusion
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Vision Central
These billing business units are serviced by Vision Operations (customer payment) business unit.
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Slide 16 - Override Business Unit Setup Detail
Slide notes
Navigate to FSM: Manage Receivables System Options task to enable a business unit to be an override business unit.
Allow any business unit to process receipts: A business unit can be enabled to allow its invoices to be processed by any other business unit in the same
ledger by checking the “Allow any business unit to process receipts” checkbox for that business unit in Receivables System Options.
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Slide 17 - Cross Business Unit Receipt Processing
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Slide 18 - Job Roles & Associated Duty Roles
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Slide 19 - Business Process Model Information
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Slide 20 - Related Reports & BI Analytic Information
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The following reports have been updated so that they display the relevant business units associated with the respective transactions and receipts.
Billing History Report
Customer Account Status Report
Receipt Analysis - Days Late Report
Generate Statement Report
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Slide 24 - Cross Business Unit Receipt Processing
Slide notes
The standard centralized customer payment processing business unit model has this basic setup:
Servicing Business Unit: A customer payment business unit can be setup as a service provider for the billing business unit.
Client Business Unit: A billing business unit can be setup to be a client of a customer payment business unit.
In the diagram, we see that East Business Unit (EBU) is the servicing business unit so it processes and applies receipts to invoices from
Western Business Unit (WBU), Central Business Unit (CBU), and East Business Unit (EBU).
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Slide 25 - Override Business Unit Setup Detail
Slide notes
Navigate to FSM: Manage Receivables System Options task to enable a business unit to be an override business unit.
Allow any business unit to process receipts: A business unit can be enabled to allow its invoices to be processed by any other business unit in the same
ledger by checking the “Allow any business unit to process receipts” checkbox for that business unit in Receivables System Options.
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