Contra Charging Feature in AP & AR

Overview

When you do business with a company that is both your supplier and your customer, you can apply your accounts payable to your accounts receivable for that company to determine the net balance that is owed. The Suppliers balances and the Customers balances cannot be set-off in the normal applications. Contra Charging feature allows for credit memos to be created in AP and AR, based on the amount you mention after having a look at the balances of the organization on the Supplier Side and the Customer Side.

Setup

1. Setup the required parameters for Contra Charges as described in 'Oracle Financials Common Country Features User Guide - Page: 3-53 to 3-90'.
2. Define Document Category called 'Contra' for both Payables (AP_INVOICES_ALL) and Receivables(RA_CUSTOMER_TRX_ALL) Applications.
   
3. Define document sequences, assign the document sequence to Contra document category, For Both AP and AR.
4. Setup Receivables Contra Source.
5. Setup Contra Transaction Type with Credit Memo Class.
   
6. Setup user profile for AP Responsibility, incl. the following: Tax: Allow Override of Tax Code (Yes)
   Tax: Allow Override of Customer Exemption (Yes)
   Sequential Numbering (Partially Used)
   JG: Contra - Include Future Dated Payment in Supplier Balance (Yes)
   
7. Define Payables Lookup ( Source ) for 'Contra'.
8. Assign a 'Contra Charging' Menu to 'AP_NAVIGATE_GUI12' main menu,which tied to AP Responsibility.
9. Having created the new form 'Contra Charging', enter Contra Charging Transactions, then Submit Contra transaction.