AR lock box functionality:

[sekhardivvi]

Hi Friends,

We need help on AR lock box functionality:

1. Instance Version: 11.5.10.2
2.Module: AR and AP
3.GE Markham project, Canada


Here is the business Requirement:

1. We are using oracle Intercompany functionality and settlement through AR lock box.

We have 2 OUs (A & B) and in OU B, OU A is defined as Customer and OU A, OU B is defined as Vendor.

Flow of Transactions in oracle(Drop ship):

1. Sales order is booked in OU A
2. Shipment is done from OU B
3. Intercompany AR invoice is created in OU B on OU A as customer.
3. Intercompany AP invoice is created in OU A on OU A as Vendor.
4.Finally, OU A will invoice the End customer

Oracle Settelement presently working(After we do customisatsion for AR lock box):

1. We are extracting payments in OU A to OU B and storing in folder
2. We are processing Receipts in OU B(which is nothing but payments processed in OU A) through lock box and apply the to the AR invoices which are created in above step 2.

Also,We are using Intercompany NOT only for Intercompany orders(Drop Shipment) BUT also for RMA orders(Finised products returned by customers also).
In this the flow of transactions is :

1. RMA request is created in OU A
2.Product received in OU B
3. Intercompany AR credit memo created in OU B on OU A as customer
4.Intercompany AP debit memo created in OU A on OU B as vendor
5. Finally, we will raise AR credit memo to end Customer

CHALLENGE:

We need to process both positive payments and Negative payments in AP(presently we are process in AP payment batches and including credit memos also) and process AR lock box in OU B. For below points we need suggestions,

1. for eg: We have AP nvoice for 100 USD and Debit memo in AP for 20 dollars and so net payment to OU B will be done in OU A is 80 USD

2. In OU B, we have AR invoice for 100 USD and AR credit memo for 20 USD. How we can match 80 USD(Payment done in OUA) to AR invoice(100 USD) and AR credit memo(20 USD) through lock box and close both AR invoice and Credit memo simultaneously

Please provide suggestions on this requirement

Rgds,
Sekhar..