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New Agreements functionality in R12.1.1

In R12.1.1 some long awaited improvements have been made to the Agreements functionality. Here is a summary of these and some context about how this functionality might be used or applied. I am always happy to hear people’s opinions, particularly of examples of user requirements where this functionality can provide solutions.

Agreements Form

The Agreements form has been enhanced significantly as you can see here:

This combines with various other new fields in the application to provide the following new functionality.

Control Funding Consumption

Some excellent new functionality now exists to allow users to control how funding is consumed when Invoices are generated. The following new fields and functionality have been introduced.

Date Effective Funds Checking

On Project Types a check box exists to enable Date Effective Funds Consumption. This allows the Project Types to use this functionality but as with a lot of Project Type settings, does not mandate it.

The above Project Type definition field defaults to the Revenue and Billing information window on a Project Template or Project definition.

There is also an Agreement Override field on Events which will be enabled if the Date Effective Fund Consumption check box is ticked. When the Agreement number is entered it is validated against the Start and Expiration dates on the Agreement form and is used to govern which Agreement the Event consumes funding from. As with many of the Event fields, it can not be updated when the Event has generated Revenue or Invoices.

Start Date

The Agreements form now has a Start Date field to compliment the existing Expiration Date field. It is an optional field that when combined with the Expiration Date dictates which Agreement funding is consumed first, based on the Expenditure Item or Event Date, i.e. the Expenditure Item or Event Dates must fall within these dates.

Billing Sequence

The Agreements form now has a Billing Sequence field. This controls the order in which agreement funding is consumed. This field is also now shown in the Project Funding Inquiry form.


Combining all of the above users can now conquer the perennial problem of controlling which Agreements are used when revenue and invoices are generated, and in what order. I would envisage an extensive uptake of this functionality. I think every user of Project Billing has, at some time or other, wanted this functionality. The process for using Date Effective Funds Consumption follows the hierarchy:

  1. Agreement Override: The Agreement Override on the Event is called before the system looks at the Event dates when compared to the Start and Expiration dates on the Agreements
  2. Hard limits: If there are no Agreement Overrides the system looks at the Agreements with hard limits and derives the Agreement to use in the following order:
    1. Billing sequence number – lowest first
    2. Expiration date – earliest first
    3. Funds remaining
  3. Soft Limits: If there are no agreements with hard limits the system uses agreements with soft limits in the same order as described above for agreements with hard limits

Prepayment Application to Agreements

Users can now apply Pre-Payments (aka Payments In Advance or On Account Receipts) in Receivables to Agreements in Oracle Projects.

Advance Required

A new flag called Advance Required has been added to the Agreements form; this specifies if an Advance is required. In this case it prevents the funding to projects exceeding the value of the pre-payments applying to the Agreement. This is an excellent new control mechanism.

New Buttons and a new Window

New buttons have been added for Apply Receipt, Unapply Receipt and View Receipts. The first two of these access a new Apply/Unapply Receipts window; these are the same apart from the window name. The View Receipts button takes you to the existing Receipt Summary window in Receivables.

Advance Amount

This field is display only and shows the Receipt amount when Receipts are applied to the Agreement. A new client extension also exists to allow users to specify which Customers must provide Advances by automatically flagging Advance Required


All the above will be useful where Payments are required in advance for specific projects. This is very topical in the current economic climate where financing the start up of a large project, and for that matter any project, may require advance payments from a Customer.

Customer Order Number

This is a new optional free-form text field. There is no validation on this field. As far as I can discern it does not appear on the standard Invoice Print so I am not sure what business requirement this satisfies. Does anyone know what the business benefit is here?

Line Of Accounting

Again this is a new optional free-form text field. There is no validation on this field. This field can be displayed on Invoices, so some benefit can be gained here through helping Customers ensure they account Invoices through their own Payables system correctly. Although I have no direct experience of customers asking for this specific information (usually an Agreement Number or Reference is enough), I can see this field having a multitude of uses where any sort of reference is requested by the customer.

Invoice and Revenue Summary

These forms also have additional fields to complement the above functionality:

10 Aug, 2009 by

E-Business Suite

6 thoughts on: “New Agreements functionality in R12.1.1”

  1. suhail maqsood August 11, 2009 2:41 PM

    This is a great article! glad to see that we have screenshots to view the changes.

  2. Paul Kelly September 30, 2009 10:29 AM

    “Customer Order Number

    This is a new optional free-form text field. There is no validation on this field. As far as I can discern it does not appear on the standard Invoice Print so I am not sure what business requirement this satisfies. Does anyone know what the business benefit is here?”

    Does this feed into the the order number field in the sales ledger transaction? or is it still the agreement number? For us this would be useful as we should qoute the order number but this is often different to the agreement number we are given at the start of the funding contract. Also is it changeable once we have billed against this agreement?


  3. Paul Kelly September 30, 2009 10:32 AM

    What is AR receipt notification?

  4. Barry Crawley October 9, 2009 12:43 PM

    Paul, what is the context of your question “what is AR receipt notification”. Can you give me more info.?

  5. Syed May 23, 2012 8:20 AM

    Its a good article indeed. “Advance Required” functions only when you fund your project from the applied Receipt Amount to the agreement and later generate invoice which will deduct the adavance balance.

    But I have a different scenario and i dont know how to tackle this.

    The scenario is, I have a project having Agreement amount let say 50,000 US dollars and the Client gave me 10,000 US dollars in advance.

    Now I applied the receipt of 10,000 US dollars to my agreement WITHOUT checking “Advance Required” because I dont want to fund from this receipt.

    Then I need to generate invoice which will deduct the adavnace that i have applied to my agreement.

    But system is not deducting advance payment while generating invoice…

    Any idea pleas reply.


  6. Yogesh Kulkarni December 9, 2013 4:00 PM

    Hi, This is very good representation of Agreements. On Customer Order Number
    there is a business requirement. Most of the Customers in UK regions issue PO for Resources working on the Project. I have a situation where 10 Employess are working for UK Client. UK Client has issued 10 PO’s. I have to send 10 separate Invoices per month to the Client with PO details. I hope this was useful

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