Facturar es una obligacin que tienen las empresas para cobrar el IVA en los productos o

servicios que ofrecen. Hay que recordar que la factura es un documento comercial que es
el comprobante del proceso de compra venta.

El cliente solicita una cotizacin, al comunicar que efectivamente va adquirir el

producto se genera una orden de venta.
Se efecta el pedido internamente
Se enva el presupuesto total de la mercadera, segn los precios actuales del
mercado para que el cliente autorice la entrega y emisin de la factura.
Al tener aprobacin del valor total del pedido, se procede a emitir la factura para el
cliente.
Cuando se tiene el pedido, se entrega al mismo tiempo que se recibe el pago (a
excepcin que sea un crdito, porque el proceso es diferente).
La factura original la recibe el cliente con detalle de las transacciones realizadas,
producto o servicio adquirido, cantidades, precios, colores, tamaos, etc. Y la copia
de la factura se guarda en la empresa como comprobante de la transaccin.

La factura debe ser emitida por el negocio y el cliente tiene el derecho pero
tambin la obligacin de solicitarla para no infringir la ley.
Toda empresa debe tener un proceso de facturacin que le permita tener un
registro y control de las ventas que realiza.
El proceso de facturacin se debe adaptar a cada negocio.

Invoices and Credit Memos in Oracle AR

Invoice: A document that will convey how much the customer has to pay
for the goods and services he has bought and due date for paying the
amount.
Credit Memo: Negative amount to decrease the balance of the invoice.
Balance of Invoice: The amount that the customer has to pay.

Example of scenario in which a Credit Memo is created:

Say you have created an invoice of $5000 for a customer ABC and have
sent it across. Later upon receiving the goods, customer realized one of
them worth $1000 is defective and had to return it. We have already
issued an invoice of $5000 but now we are supposed to charge them only
$4000 because of the refund of $1000 for the defective piece. In such a
situation, we create a credit memo of $1000 and apply to the invoice of
$5000 to bring down its balance to $4000. We again send the credit Memo
note to the customer to let them know that they have to pay us only
$4000.
Demo on how to
Create Invoice
Create Credit Memo
Apply Credit Memo to Invoice
Check the balance on the Invoice (should decrease)
Underlying Tables
1. Create Invoice:
Navigation: Receivables Responsibility > Transactions > Transactions

Description of some important field in Transaction window:

Source: Lets you to identify the source of the invoice meaning whether
invoice is created manually or has been imported.
Navigation: Setup> Transactions > Sources
Source Setup lets you define the below:
If automatic Numbering should be used
If the Reference field in Transaction window should hold the Sales
Order number (if it has been imported from Sales Order)
Which Transaction Class can use this Source
Class: What type of transaction you want create. Enter Invoice here.
Number: A unique identifier for the transaction created. If automatic
numbering is enabled in Source setup, the number will be generated
automatically else will have to enter the number manually.
Type: Transaction Type is another setup screen that lets you default
some of the attributes like the below when you are creating a
transaction:
GL Accounts for Receivables ,Revenue and other account classes that
are required for accounting.
For what kind of transactions this information should be defaulted
Whether positive mount or negative amount can be entered while
creating the transaction
Reference: Holds the Sales Order number if it has been imported from
Sales Order
Legal Entity: Give the name of the Legal Entity for which this transaction
has to be created in
Date: Date for the invoice
GL Date: Date that should be used when this transaction is being
transferred to GL
Bill to: Enter the Customer name to whom the invoice has to be raised.
Currency: Currency that is being used to report the amount in
Payment Term: When the invoice is due meaning by when the customer
is expected to pay the amount on the transaction.
Payment Details: The bank details you are expecting the customer to
deposit the amount to.Enter the details and click on Apply.

Once the above fields are entered, save the work.

 Click Line Items button to enter the invoice line details

Enter the Item, quantity and the unit price of the item and save the
work.

Complete the transaction by clicking the Complete button. Only if the

transaction is Complete, further actions can be done on it.

Distributions are automatically created. What GL Accounts to use will

be decided by the Transaction Type setup.

And our invoice 501005 is created.

2. Create Credit Memo :

Navigation: Receivables Responsibility > Transactions > Transactions
 Enter the below fields:
Class: Credit Memo
Type: Appropriate transaction type for Credit Memo
Bill To: Customer Name for whom this Credit Memo is being created
Payment Details: Enter the Bank Account details

Click on Line Items button to create the CM line.

Item: Enter the item being returned.
Amount : -1000 as this is the refund that we giving to the customer for
returning the item.

Save the work.

Complete the transaction by clicking the Complete button on the
Transaction window.

With this CM 501006 is created.

3. Apply the CM to Invoice.

Navigation: Receivables resp > Transactions > Transactions

Query the CM (501006) that you want to apply:
From the menu select Actions > Applications

Enter Apply To as 501005 which is the Invoice number that you want
to apply this CM to.

Save the work.

4. Check the balance on the Invoice.

Query the invoice 501005. Since CM has been applied, the balance of
the invoice is $4000. That means customer has
to pay us $4000 only and not $5000.

Click on Details button in Balance Due section which will give you a
detailed activity happened against the
invoice and what is the balance at the end of the day.
Since a CM worth $1000 has been applied to it, you see that activity
against Credits entry.

5. Underlying Tables that get populated when an invoice is created

RA_CUSTOMER_TRX_ALL Stores Invoice Header details
RA_CUSTOMER_TRX_LINES_ALL Stores Invoice Lines details
RA_CUST_TRX_LINE_GL_DIST_AL Stores Invoice Distribution details
AR_RECEIVABLE_APPLICATIONS_ALL This table gets populated when
credit memo is applied to invoice / anything
gets applied to anything.