Download [January] [2010] Oracle Part Number E51712-01

When the customer pays you can liquidate the receivable outstanding components of the bill from
the Bills and Collections Contract screen either by selecting ‘Liquidate’ from the Actions menu in
the Application toolbar or clicking liquidate icon. Enter the liquidation amount and save the
liquidation. The contract will be liquidated.
5.2.47 Reversing Liquidation Entries
You can reverse the authorized accounting entries that were passed when you liquidated an
outstanding receivable component of a bill. You can reverse the accounting entries passed for the
liquidation of an outstanding component of a bill through the Receivable Liquidation screen.
Specify the Contract Reference Number of the bill. All the outstanding components of the bill that
were paid from a receivable account will be displayed.
Query the component whose liquidation entries you want to reverse. Choose Reverse form the
Processing sub-menu of the Actions Menu. The system will prompt you to indicate whether
you want to reverse the liquidation entries passed for the outstanding component or make the
component outstanding again.
If you indicate that the entries should be reversed, the accounting entries that were passed
earlier will be reversed. However, you will not be able to pass further entries for the payment of
that component at a future date. If you indicate that the component should be made
outstanding, the accounting entries that were passed earlier will be reversed and the
component will become outstanding again.
The reversal of the liquidation of a component may sometimes entail a change in the status of
the bill. If the contract is set for automatic status change, this change will be made by the
system automatically.
5.2.48 Partial Payment of Discounted Bills
For discounted export bills you can partially liquidate the principal before the maturity date of the
bill. In this case, correction entries will be passed for the:
 Interest that has been collected in advance and
 Interest receivable in the future along with the respective accruals/amortization as the
case may be
Example
You have entered a bill worth USD 20000 in Oracle FLEXCUBE on 1 February 2001. The bill expires on 31
March 2001. Original Interest calculation period: 01 Feb to 31 March 2001 On 08 Feb you partially liquidate
USD 8000 of the Original Bill Amount. The excess interest that should be refunded to the customer is
derived as follows:

Interest collected in advance on USD 20000 = X

Interest on 20000 between 1 Feb to 7 Feb 01 = Y

Interest on 12000 between 1 Feb to 7 Feb 01 = Z

Excess interest refunded to the customer = X - (Y+Z)
Accrual adjustment entries as on 11 Feb 2001 (the liquidation date)
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