How to See and Correct Autoinvoice Exceptions in Oracle Cloud

In this post, we will discuss the Auto Invoice interface in Oracle Fusion. Oracle Fusion provides the functionality to download all records from the AR Auto Invoice interface tables into an Excel file. You can then make changes or corrections to these records directly in the Excel file. Once the edits are made, you can process these records again directly from the updated Excel file.

How to see the auto invoice exceptions in Oracle Cloud

Navigation

Step1:- Go to Navigator-->Receivables>Billing-->Click on task pane-> Manage AutoInvoice Lines

Step 2:- An Excel file will be downloaded to the Excel. Open the Excel and log in with the Oracle Cloud application credentials. Enter the Required Details in the template as per the requirement. Once have you filled in the Search Criteria then Click on the Search Button as below.

Search Button will fetch all the records from AR interface to this Excel Sheet as per your Search Criteria.

You can make changes directly in the Excel template and view the error reasons for any rejected records. If needed, you can also delete records from the template by clicking on Clear.

Step3:- Once the errors are rectified click->Submit AR Interface to import in Fusion Receivables.

 

Click on Submit - to process the changed records in AR.

Account Receivables to General Ledger Reconciliation

The reconciliation of Accounts Receivable (AR) to the General Ledger (GL) is a crucial financial process that ensures the accuracy and integrity of financial reporting. This process involves matching the detailed records of accounts receivable with the corresponding entries in the general ledger to identify and resolve discrepancies.

Now let us see how we reconcile accounts receivables to the general ledger in Oracle Cloud

Below are the high-level steps for accounts receivables to general ledger reconciliation in Oracle Cloud

1. Prepare Receivables to General Ledger Reconciliation Process

Obtain the AR sub-ledger, which includes all outstanding invoices, credit memos, and payments.

Ensure the sub-ledger is up-to-date with all transactions recorded for the period being reconciled.

Log into Oracle Fusion Applications

Home page>Tools-->Schedule Process

Submit 'Prepare Receivables to General Ledger Reconciliation'

This program extracts and prepares transaction and accounting information needed to reconcile Receivables with General Ledger.

Ensure to run this process before starting the Receivables to General Ledger Reconciliation. Verify that the process and sub-processes complete with a status of ‘Succeeded’.

Enter the job parameters and submit it 

2:  Run the  Receivables to Ledger Reconciliation Report from receivables work area

Home screen-> Receivables  > Account Receivables

Click the Task Pane: Accounting > Receivables to Ledger Reconciliation

you will be able to see the receivables to general ledger reconciliation report which will show all the balances along with the differences.

3. Match Balances:

Compare the total balance of the AR sub-ledger with the corresponding AR account(s) in the GL.

Investigate any discrepancies between the two balances by clicking on the difference amount.

4. Identify Discrepancies:

• Analyze common causes of discrepancies, such as:
• Timing differences (e.g., transactions recorded in different periods)
• Errors in data entry or posting
• Unrecorded transactions or adjustments
• Duplicate or omitted entries

5. Resolve Discrepancies:

• Review detailed transaction reports from both the AR sub-ledger and the GL.
• Correct errors in either the sub-ledger or the GL.
• Record any necessary adjusting journal entries to align the balances.

How To Reconcile Account Receivables to General Ledger in Oracle Cloud
Account Receivables to General Ledger Reconciliation in Oracle

Dynamic Discount in Oracle Cloud/Fusion Finance

Dynamic Discounting in Oracle Cloud

Dynamic discounting is a feature in Oracle Cloud that allows organizations to optimize their cash flow and enhance supplier relationships by offering early payment discounts on invoices. This functionality benefits both buyers and suppliers by improving liquidity and financial efficiency.

Key Features of Dynamic Discounting in Oracle Cloud Finance:

1. Flexible Discount Terms: Buyers can define flexible discount terms and conditions based on their cash flow and liquidity needs. Suppliers can accept or negotiate discount terms, providing a mutually beneficial agreement.

2. Automated Discount Calculations: Oracle Cloud automatically calculates early payment discounts based on the agreed terms, reducing manual efforts and potential errors.

The system adjusts discount amounts dynamically based on the payment date, ensuring accuracy and transparency.

Dynamic Discounting in oracle cloud - Comparison to Standard payment terms

Reference - Oracle

How Dynamic Discounting works in oracle cloud/fusion finance

Benefits of Dynamic Discounting in Oracle Cloud/Fusion Finance:

• Cost Savings: By taking advantage of early payment discounts, organizations can significantly reduce their procurement costs.

• Improved Supplier Loyalty: Faster payments improve supplier satisfaction and loyalty, leading to more favorable terms and stronger partnerships. Offering early payment discounts strengthens supplier relationships by providing them with quicker access to funds. Improved payment practices can lead to better terms and collaboration with suppliers, fostering long-term partnerships.

• Enhanced Cash Flow: Dynamic discounting helps organizations manage their cash flow more effectively, ensuring they have the liquidity needed for other strategic investments.

• Operational Efficiency: Automation of discount calculations and payments reduces manual workload, minimizes errors, and enhances overall operational efficiency.

Dynamic discounting in Oracle Cloud is a powerful tool that provides financial flexibility and operational efficiency, fostering better supplier relationships and contributing to the overall financial health of the organization.

Dynamic Discounting in Oracle Cloud| Dynamic Discount in Fusion finance

 Artificial Intelligence(AI) Features in Oracle Fusion Cloud

Oracle Fusion Finance integrates various AI (artificial intelligence) features to enhance financial processes, improve decision-making, and increase efficiency. Here are some of the key AI (artificial intelligence) features in Oracle Fusion Cloud:

Artificial Intelligence(AI) Features in Oracle Fusion Cloud Financials/Finance

1. Intelligent Process Automation: 

• Automated Invoice Processing: Uses machine learning to automatically capture, recognise, and process invoices using the IDR (Intelligent Document Recognition) process.
• Expense Reporting: AI-powered tools automate expense report creation, categorization, and policy compliance checks using Oracle Digital Assistant.

2. Predictive Analytics:

• Cash Flow Forecasting: AI algorithms predict future cash flows based on historical data and current financial trends using Predictive cash forecasting.
• Revenue Forecasting: Utilizes predictive models to forecast future revenue, helping businesses plan and strategize more effectively using Auto-predictive planning.

3. Smart Recommendations:

• Defaulting codes: Reduce manual work in invoice entry and speed up processing using Intelligent Account code combination defaulting.
• Dynamic discounting: Dynamic discounting is an arrangement for early payment in exchange for a discount on the invoice amount. In dynamic discounting, the supplier can provide a discount on the invoice if the buyer pays early. The buyer may choose to accept the discount and effect an early payment. The buyer can also propose to make an early payment in exchange for a discount. It is basically a negotiation between the traders to get better credit terms. The discount provided can be fixed or varying. In a fixed discount, the buyer can pay anytime within the agreed time frame and enjoy a fixed discount. In varying discounts, the percentage of discounts reduces as time passes. The earlier the payment done, the higher is the discount. Dynamic discounting is typically applied on an invoice-by-invoice basis, with the discount generally expressed as a percentage of the payable value of the invoice.

Some of the key benefits of Artificial Intelligence in Oracle Fusion for Financials/Finance

1. Automate Smarter

Enhance usability and efficiency by automating core financial processes and providing guided actions for users, which also helps in reducing human errors.

2. Operate Smarter

Optimize business processes across procurement, payables, receivables, supplier management, and treasury management to deliver insights and agility.

3. Influence Smarter

Free up time and resources by optimizing processes, allowing finance teams to play a larger role in driving corporate initiatives, improving outcomes, and influencing business strategy.

eInvoicing for Saudi Arabia In Oracle Fusion Cloud

eInvoicing for Saudi Arabia In Oracle Fusion Cloud

E-invoicing in Saudi Arabia is governed by the Zakat, Tax, and Customs Authority (ZATCA, previously known as GAZT). The requirements are designed to ensure transparency, compliance, and standardization in the invoicing process. Here are the key requirements for e-invoicing in Saudi Arabia:

1. Compliance Timeline:

• Phase 1 (Generation Phase): Effective from December 4, 2021. Businesses are required to generate and store electronic invoices and notes.
• Phase 2 (Integration Phase): Effective from January 1, 2023. Businesses must integrate their e-invoicing systems with ZATCA's platform.

2. Invoice Format:

• Electronic invoices must be generated in a structured format (e.g., XML) or an unstructured format (e.g., PDF/A-3 with XML embedded).
• The invoices must include mandatory fields as specified by ZATCA.

    Mandatory Fields:

• Seller's and buyer's name, address, and VAT registration number.
• Invoice date and unique invoice number.
• Description of goods or services provided.
• Quantity and unit price of goods or services.
• VAT rate and amount for each line item.
• Total amount payable inclusive of VAT.

3. Security Features:

• Invoices must include a QR code for simplified invoice validation.
• Digital signatures may be required to ensure the authenticity and integrity of the invoices.

4. Storage and Archiving:

• E-invoices must be stored electronically and be accessible for at least 6 years.
• Invoices must be stored in a tamper-evident format to prevent unauthorized alterations.

5. Integration with ZATCA:

• Businesses must integrate their systems with ZATCA’s platform for real-time or near-real-time invoice reporting.
• The system should be capable of generating unique cryptographic stamps.

6. Types of Invoices:

• Standard Tax Invoices: Issued for B2B transactions. Must include all mandatory fields and the QR code.
• Simplified Tax Invoices: Issued for B2C transactions. These also need to include a QR code but have fewer mandatory fields compared to standard tax invoices.

7. Technical Requirements:

• Systems must comply with the technical specifications outlined by ZATCA, including API standards for integration.
• The system should be able to handle different types of VAT rates, discounts, and other commercial terms.

8. Penalties and Compliance:

• Non-compliance with e-invoicing regulations can result in penalties, including fines and other administrative actions.

9. Training and Readiness:

• Businesses are encouraged to train their staff and ensure that their systems are ready for compliance with e-invoicing requirements.
• For more detailed and updated information, it is recommended to refer to the official ZATCA guidelines and consult with local tax advisors.

Solution: - eInvoicing for Saudi Arabia In Oracle Fusion Cloud

• Create Invoices: Generate invoices in Oracle Fusion as usual, ensuring that all required information, such as customer details, itemized charges, VAT amounts, and invoice dates, are accurately entered.

• Tax Compliance: Verify that VAT and other applicable taxes are correctly calculated and reflected on the invoices.

• E-Invoice Generation: Use Oracle Fusion’s e-invoicing features to generate the invoice in the required electronic format (typically XML or JSON). This may involve using a specific e-invoice template compliant with ZATCA standards.

·  Middleware system – Oracle Integration Cloud (OIC) 

     OIC will receive the invoice data from Oracle Fusion in addition to this it generates UUID, Invoice counter value, previous invoice hash and invoice hash values to the invoice data and converts the file into ZATCA acceptable format

     Integration with ZATCA Portal:

      API Integration: Implemented API integration between Oracle Fusion and the ZATCA e-invoicing portal. Oracle Fusion may need to connect with ZATCA’s system using APIs to upload invoices directly.