Intelligent Account Combination Defaulting for Invoices

 Experience intelligent defaulting of accounting information for no-PO invoice lines. This feature uses Al and machine learning algorithms to predict and default segment values of the account code combination on accounts payable invoice lines. AI and machine learning use the historic data patterns and the specific influencing factors for each segment to predict their value.

When the user places the cursor on the distribution combination field for an unmatched invoice line, the segment values are defaulted if the prediction for the segment exceeds the dynamically calculated confidence score threshold. Once any segment values are defaulted, the distribution combination field is highlighted for user review. If a segment is not defaulted, or an incorrect segment is defaulted, the user can enter the relevant value for the missing segment or correct the incorrect defaulted segment value. The Al and machine learning algorithms learn from these edits and use the information to improve the prediction accuracy.

Intelligent Account Combination Defaulting For Invoices

 

Step by Step guide below

LETS CREATE AND ADD ROLES NEEDED FOR THE ABOVE FEATURE TO WORK.

 To use the above AI feature, pls create a role for business intelligence.

Go to – Tools – Security Console – Roles – Create Role

Fill in below information and click next 3 times to reach Role Hierarchy tab.

Search and add below mentioned 3 role hierarchies to this role.

 

Add this new role created to the user you are logged in or the user who has Applicaton Implementation Consultant as a role associated.

 

Run ESS job – Import User and Role Application Security Data

 

 

NOW, LETS CONNECT TO THE AI APPS AND ESTABLISH A CONNECTION BETWEEN AI APPS AND ORACLE ERP.

 Go to Tools – AI Apps Administration

 

 AI APPS Connected, below you can see status as ‘Active’ as I already connected. But you will get status as ‘Processing’ initially and after the connection is made the status changes to ‘Active’.

 

Click on ‘AI Apps for ERP’ and enter details to establish connection.

 

 

Enter details to establish a connection. It usually takes 3-4hrs for your AI model to get trained depending on the data you have in your instance.

Once the model is trained, you will get as below – ‘Trained’.

 

 

Once you get this status, pls download the report as you will get your promotion code to activate this offering in that report along with the accuracy of alogorithms to get your code combination defaulted.

NOW, LETS ADD THE PROMOTION CODE TO ACTIVATE THE SERVICES ON OUR INSTANCE.

Go to My Enterprise – Enterprise

Click on ‘Manage Promotion Codes’ to enter the promotion code for this particular AI service.

 

NOW, LETS OPT-IN FOR THE FEATURE FROM OFFERING OPT-IN FEATURE.

 

2.     
Go to ‘Setup and Maintenance’

 

3.      Under financials offerings select ‘Change Feature Opt In’

 

 

 

 

4.     
Click on pencil shaped icon to edit the feature for Payables.

5.     
Select feature – ‘Intelligent Account Combination Defaulting for Invoices’

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Please click on below link to see the latest update 23B and read about its features!!

 Oracle Fusion Cloud Demand Management 23B What's New

AI apps for oracle financials

Visit below link for more information

Oracle AI Apps for Financials Oct 2022 What's New

  Translation and Remeasurement

Lets discuss translation and remeasurement in simple words

Translation - Converting foreign currency balances of your subsdiary into functional currency of your parent entity.

It is when company is doing investing activities.

It is foreign currency into functional currency.

Remeasurement - Converting financial numbers or accounting into functional currency to calculate the actual net income.

It is when company is doing operating activities.

It is accounting into functional currency. 

Useful Feature of Oracle Financials - Accounting Automation

Lets learn some quick key points of this feature

1. Accounting automation automatically runs your daily activities of accounting process.

2. Accounting automation takes out the exception errors.

3. Accounting automation sends the error exceptions directly to the concerned user.

How to enable it:

1. Go to setup and maintenance

2. Click on task and then on offerings

3. Select offerings - Financials

 Consolidation Concepts to be kept in mind

Things to keep in mind while doing consolidation

1. Elimination of intercompany entries -  Elimination of entries which are recorded within internal subsidiaries as we don't want to include them in our consolidation as we need to see the true picture of third party transactions.

2. Eliminate Minority Interest - Eliminating minority interest percentage value from the retained earnings account so that true picture of how much the company has the holding percent is shown in financial results.

 Earned and Unearned Discount in Receivables

Lets understand this in easy words

1. Earned Discount - Given to the customer if the payment is received before the payment term expiry. It is given according to the setup done.

2. Unearned Discount - Given to the customer after the payment terms expiry and if the discount is to be given intentionally over and above the invoice amount.

 Receivables - Invoicing rules and accounting rules

Lets learn some quick concepts of Invoicing rules and Accounting rules in Oracle Receivables

So, there are 2 rules  :

1. Invoicing rules - These are applied on the invoice header level. They are of 2 types - bills in arears and bills in advance. 

Bills in arears - Recognize the receivable at the end of the revenue recognition.

accounting entry - unbilled receivable Dr

                              Revenue Cr

                              Receivable Dr

                              unbilled receivable Cr

Bills in advance - Recognize the receivable at the start of the revenue recognition.

accounting entry - Receivable Dr

                               Unearned Revenue Cr

                               

                               Unearned revenue Cr

                               Revenue Dr

2. Accounting rules - Applied at the line level. Could be applied at each line separately. 

Types - Fixed, Variable, Duration, daily revenue all periods and daily revenue partial periods.

 Types of Pre-Payments

Lets understand in simple words the meaning and types of pre-payments

Pre-Payment - 

A payment that you make to the suppliers in anticipation of their goods and services. In other words its an advance payment to a supplier.

Types:

1. Temporary - 

For which you ought to receive an invoice in near future. For eg - Deposit to a hotel

2. Permanent - 

No invoices to be received in the future. For eg - lease deposit.

 Adjustments in Fixed Assets

Cost adjustment of a fixed asset

In this short article, I would quickly tell you the 2 types of adjustments in fixed asset module

1. Expense Adjustment - Prospective

2. Amortized Adjustment - Retrospective

Expense Adjustment - In simple words it is that adjustment which calculates the depreciation on the latest cost adjustment done by dividing it with the life of the asset.

Amortized Adjustment - In simple words it is that adjustment which calculates the depreciation by subtracting the depreciation till date from the new cost adjustment done.

Pre-requisites - Run the depreciation and close the period.