Deposit invoices and payemnts from Order Manangment

Question

Hi All,
We manually create Deposit invoices in AR then generate the Receipt and manually apply these receipt to Deposit invoices.
Accountant generally complete this activity while booking the order. The goods are delivered to customers based on schedules.
for each delivery of goods accountant generate manual standard invoice in AR and mentioned in commitment field the deposit invoice number close invoices.
Now management advised to use the Oracle Order Manangement and remove the manual process of generating AR invoices and Receipt.
Can someone guide you how this can be achieved.
Thanking you in anticipation.

Answer 1

Hello,
There are two OM-AR Integrated features may meet stated requirement:
(1) Using Commitment (Deposits) in Sales Orders Lines, and
(2) Generating AR Prepayments from OM.
Which one to go with depends on your business process or concept of advance payments. Following explains briefly the steps involved in each process:
Deposits:
Enter Deposit Trx In AR to record customer liability to make prepayment for goods/services you will provide in the future (independent of sale orders)
Enter Receipts to record customer prepayment incurred in previous step
While entering Sales Order line(s) select which Commitment the Sales Order line to be applied to.
When a Sales Order line is fulfilled and the Auto-invoice process is kicked off, the Invoice is created directly against the Commitment in question (i.e. Invoice is automatically applied to Deposit via adjustment applied to it while Deposit Commitment Balance is reduced by the Adjustments generated against the Invoice).
Prepayments:
Create a Sales Order in OM
Attach a Payment term which is defined with Prepayment option checked.
Book the Sales Order
Select Payments from the Action list.
Enter payment information
Click on ‘Process Payments’ button to get the prepayment receipt created.
Click on ‘View Receipt’ to view the receipt that got created in step 6 in AR.
Fulfill the sales order lines and Run the Autoinvoice import program
The Autoinvoice import program will automatically kick-off Prepayments Matching Program
Check previously created receipt after the Autoinvoice import to confirm that the receipt has been automatically applied to the invoice.
To roll out the details, let me hear from you.
Thanks