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Automatic Receipts and Remittance: A Complete Guide for R12

OracleReceivables Users (Doc ID 745996.1)

In this Document
Purpose
Scope
Details
1. Overview of Automatic Receipts and Remittance
2. Automatic Receipts and Remittance Process
3. Setting Up to use the Automatic Receipts and Remittance Feature
a. Define Receipt Class
b. Define Receipt Method
c. Assigning Remittance Banks
d. Setting Up Document Sequences
e. Define Print programs for your Automatic Receipts.
f. Oracle Payments Setup For Funds Capture Processing
g. Define Remittance Print Programs (optional)
h. Define System Options, Profile Options and Currency Rates
4. Simulation of Automatic Receipts Feature
a. Assign default payment details at the customer account or site level
b. Flagging Transactions for Automatic Receipts
c. Create Automatic Receipts Batch
d. Review the Concurrent Program Output
e. Approving Automatic Receipts
f. Review the Receipt Created
g. Formatting Automatic Receipts (Optional)
h. Confirming Automatic Receipts
5. Simulation of Remittance
a. Create, Approve and Format the Remittance Batch
b. Review the Concurrent processes spawned
c. Query the Remittance Batch
6. Scheduling Automatic Receipts and Remittances
7. Accounting for Automatic Receipts
8. Important Reports
9. Troubleshooting and Known Issues
10. Facts and FAQs
References

APPLIES TO:
Oracle Receivables - Version 12.0.0 and later
Information in this document applies to any platform.
*** Checked for Relevance on 05-Dec-2013 ***
ConcurrentProgram:ARZCAR_RECEIPT - Automatic Receipts Creation Program
ConcurrentProgram:ARZCAR_REMIT - Automatic Remittances Creation Program

PURPOSE
Oracle Receivables (AR): Receipts Workbench Information Center > Note 745996.1
This document discusses setup, simulation, running, reports and other information relevant for
Oracle Receivables Automatic Receipts and Remittance feature in Oracle E-Business Suite
Release 12.

SCOPE
For R12 Oracle Receivables users.

DETAILS
1. Overview of Automatic Receipts and Remittance

Oracle Receivables allows you to create receipts using the following features:

via the Receipts or Quickcash forms


via Automatic Receipts

via Lockbox

via the Receipt APIs

The Automatic Receipts feature allows you to automatically generate receipts for customers
with whom you have predefined agreements. These agreements let you collect payments on
time by transferring funds from the customer's bank account to yours on the receipt maturity
date. You can also manage your cash flow by deciding when, where, and how much you should
remit to your bank.
For example:
A Mobile Service Provider Company can make an agreement with its retail customers for
permission to directly debit funds on a predefined date every month based on the invoice

amount.
Automatic Receipts also lets you manage your customer risk and reconcile bank statements. You
can decide how you wish to process the receipts from creation to remittance and risk
elimination. The Automatic Receipts feature satisfies the many variations of bank remittance
processing, such as direct debits.
Note: You cannot create cross currency receipt applications using Automatic Receipts.
Once the receipts are created, they can be applied in the same way as manual receipts. You can
now remit these receipts to the bank via the Remittance process which will transfer money from
your customer's account to yours.

2. Automatic Receipts and Remittance Process

The following graphic provides an overview of the Automatic Receipts and Remittance flow:

1. A transactions is flagged for Automatic Receipts creation by assigning a receipt method

with an associated receipt class that has an Automatic creation method.


2. When you run the Automatic Receipts program, Receivables creates receipts to close out
all completed transactions that meet the selection criteria. Receivables also lets you
update, delete and approve the receipts that were selected. You can also optionally
format your Automatic receipts onto paper to send to your customer for confirmation or
notification before remitting them to your bank on either paper or magnetic media.
3. If required, the next step involves getting confirmation from your customers to indicate
that they reviewed each receipt and agreed that the payment information is correct.
4. After confirmation, you create remittance batches to select receipts for remittance to
your bank to initiate the transfer of funds from your customer's account to your account
as payment for the transactions that were previously closed by these receipts. You can
create unapproved, approved, or approved and formatted remittance batches, which you
then send to your bank.
5. When you receive your bank statement, you can then reconcile your receipts. You can
optionally submit the Automatic Clearing program to automatically clear remitted
receipts and clear or risk eliminate factored receipts in Receivables.
3. Setting Up to use the Automatic Receipts and Remittance Feature

The following table summarizes the steps you must follow to set up Automatic Receipts in your
applications:
Step

Description

Step a

Define Receipt Class

Step b

Define Receipt Method

Step c

Assigning Remittance Banks

Step d

Setting Up Document Sequences

Step e

Define Print programs for your Automatic Receipts

Step f

Oracle Payments Setup For Funds Capture Processing

Step g

Define Remittance Print Programs

Step h

Define System Options, Profile Options and Currency Rates

a. Define Receipt Class

Note: Receipt Classes are not Operating Unit specific. This means you define it once and it can
be used across all Operating Units.
Responsibility: Receivables Super User
Navigation: Setup > Receipts > Receipt Classes

1. Enter a Receipt Class by assigning a unique name.


2. The creation method should be Automatic.

3. Choose a Remittance Method. The remittance method determines the accounts


that Receivables uses for Automatic receipts that you create using the receipt
method assigned to this receipt class. Choose one of the following:
o

Standard: This remittance method is a straightforward remittance,


where you request for X amount as payment, and X amount is withdrawn
from your customer's account and transferred to your account. When the
remittance method is Standard, GL distributions for the receipt will use
the GL account defined for Remittance in the Bank Accounts form (see
Assign Remittance Banks below).

Factoring: In this remittance method, you sell to the bank your receipts
in exchange for cash. GL distributions for receipts using this remittance
method will use the Factoring GL account defined for Factoring in the
Bank Accounts form (see Assign Remittance Banks below). Note that the
GL account for Factoring will not be enabled, unless the Remittance
method is Factoring or Standard and Factoring.

Standard and Factoring: Choose this method when the receipts using

this method can be remitted either as Standard or factored.


o

No Remittance: Choose this method if you do not require receipts


assigned to this receipt class to be remitted
Notes:

If the Creation Method = Automatic, you cannot select Remittance


Method = No Remittance
For Credit Card payments, Remittance Method = Standard

4. To require Automatic receipts assigned to this receipt class to be confirmed


before they can be remitted, check the Require Confirmation box. Check this
box to confirm Automatic receipts using this receipt class in the Confirm
Automatic Receipts window.
If you check this box, then:
o

The Create Remittances window does not let you create remittances for
unconfirmed receipts that were created using a receipt method with this
receipt class.

Receivables will not let you create Credit Card refunds against receipts
that were created using a receipt method with this receipt class.

b. Define Receipt Method

Receivables uses receipt methods to account for your receipt entries and applications. Receipt
methods also determine a customer's remittance bank information.
Notes:
1. You define receipt methods in the Receipt Classes window as mentioned in step
above.
2. The Receipt Method will be available in all Operating Units and it is not specific
to a single organization.
You can assign multiple remittance banks to each receipt method, but only one bank account can
be the primary account for each currency. For each remittance bank branch account assigned to
a receipt method, you must define all of your receipt accounts.
Responsibility: Receivables Manager
Navigation: Setup > Receipts > Receipt Classes
1. Query or enter the receipt class to assign to this receipt method.(As done in step
a. above)
2. Enter a unique Name for your receipt method, and then enter how you want this
receipt method to be printed on your statements in the Printed Name field. The

default Printed Name is the receipt method name.


3. Enter the range of Effective Dates for this receipt method.
4. To assign the same transaction number to the debit memo generated when you
create a debit memo reversal, check the Debit Memo Inherit Receipt Numbers
box. Do not check this box if you want Receivables to generate unique debit
memo numbers automatically.
5. To ensure that the receipt number is always the same as the transaction number to
which it is applied, check the Receipts Inherit Transaction Numbers box. This
option helps you track Automatic Receipts. Do not check this box if you want
Receivables to generate document numbers for Automatic Receipts assigned to
this receipt class and receipt method.
Note: This setting only takes effect, if the Number of Receipts Rule (next step), is
set to One per Invoice. If the Rule is set to create a receipt from multiple
invoices, the logic will not pick one of the invoice numbers to use as the receipt
number, and will instead revert to deriving a document number.
6. When defining receipt methods for a receipt class with an Automatic creation
method, you can choose from the following Number of Receipts Rules:
o One per Customer: Create one payment for each customer.
o

One per Customer Due Date: Create one payment for each customer
and due date. This option creates several payments for a customer if a
customer's invoices have several due dates.

One per Invoice: Create one payment for each invoice.

One per Site: Create one payment for each site.

One per Site Due Date: Create one payment for each customer site and
due date.

7. Enter a Receipt Maturity Date Rule. Receivables uses this rule to pay invoices
that have different due dates with a single receipt using this receipt method.
Choose from one of the Rules:
o

Earliest: if you want the receipt maturity date to be the earliest due date
of all of the invoices that your receipt covers.

Latest: if you want the maturity date to be the latest due date of all of the
invoices that your receipt covers.

For an explanation of how Maturity Date of an Automatic Receipt is derived,


please review Note 271194.1

8. Enter the Automatic Print Program for transmissions using this receipt method.
Receivables provides one standard receipt print program to format the output of
your payment selection and creation programs when you physically create the
receipt document. If you need a different receipt print program format, you must
copy this standard receipt print program, and modify it accordingly.
9. Specify a number of Lead Days. Lead days indicate the number of days before
the invoice due date that an invoice can be selected for application by the
Automatic Receipts program using this receipt method.
10. Select a funds capture payment method. A funds capture payment method is a
payment medium by which your customer chooses to remit payment to you.
Oracle Payments predefines funds capture payment methods, but you can define
your own.
Select Credit Card for transactions to be paid by credit card.
Select Bank Account Transfer for transactions to be paid by ACH (Automated
Clearing House) transfer.
For transactions to be paid by direct debit, create a new receipt method or use an
existing receipt method, and assign or define a new EFT-specific payment
method.
11. Select Funds Transfer Error Handling to enable the Automatic correction of funds
transfer errors.
When defined correctly, Automatic receipt methods can also enable the automatic correction of
funds transfer errors. This means that Receivables can automatically correct errors encountered
during the credit card authorization or payment capture stage, or during a bank account transfer.
Enable this feature by navigating to the Funds Transfer Error Handling window from the
Receipt Classes window. For each receipt method assigned to an Automatic receipt class, map
the error codes (obtained from your third party credit card processor or financial institution) to
potential corrective actions in Receivables:

Change Instrument: Enables the selection of a new payment instrument


and expiration date. If the transaction's receipt method has a bank account
transfer payment method, then the expiration date is not available for
update.
Clear Payment Information: Removes payment information from the
transaction. Also enters a default note on the transaction and raises a
business event.

Retry: Transactions with funds transfer errors are not included in


Automatic Receipts or Remittances batches. This option removes the
error code from the transaction, which makes the transaction eligible for
inclusion in the next Automatic Receipts or Remittances batch.

Reverse Receipt: Reverses the receipt, reopens the original transaction,


and removes payment information from the transaction. Also enters a

default note on the receipt and related transaction, and raises a business
event.
Map each error code to a corresponding action for each category: Invoice, Receipt, or Refund.
Different actions are available for each category, as illustrated in this table:
Category

Available Actions

Invoice, Debit Memo, Credit Memo Change Instrument, Clear Payment Information, Retry
Receipt

Change Instrument, Retry, Reverse Receipt

Refund

Retry, Reverse Receipt

For Example, for the Invoice category you can map a credit card processor's error code of GW0062 to an action such as Retry.
If credit card authorization later fails and the credit card processor returns the error code of GW0062 for multiple transactions, then Receivables will delete the error on all failed transactions in
the Invoice category that have this error code. This error code removal makes all failed
transactions eligible for inclusion in the next Automatic Receipts batch.
You can optionally enter a subsequent action, and indicate how many days should pass before
attempting the next action. For example, you might want to remove the credit card information
after attempting reauthorization for two days. If no subsequent action is specified, then the
number of days indicates how many days should pass before failed transactions appear on the
Correct Funds Transfer Errors page for manual correction.
Notes:

Transactions that still fail the automatic funds transfer correction process
are displayed on the Correct Funds Transfer Errors page. Navigate to this
page to manually correct funds transfer errors. Navigation: Receipts >
Correct Fund Transfer Errors.
Optionally enter notes for automatic inclusion on the transaction that
recorded the funds transfer error.
For additional information regarding Correcting Fund Transfer Errors,
please review Note 401337.1, Correct Credit Card Errors or Correct
Funds Transfer Errors Form: Overview, Usage, Known Issues and
Patches.

c. Assigning Remittance Banks

Assign remittance banks to your receipt methods to facilitate data entry and specify the General
Ledger accounts that Receivables will use when you enter or apply receipts.
You can assign multiple bank accounts to a receipt method, but you can only have one primary
account for each currency defined for that receipt method.

To assign a remittance bank to a receipt method:


Responsibility: Receivables Manager
Navigation: Setup > Receipts > Receipt Classes

1. Query the receipt class or receipt method to which you want to assign this
remittance bank. (as done in step b. above)
2. Click Bank Accounts.
3. Select your Operating Unit.
Once you choose an Operating unit, the Receipt Method will be available for
Transactions created under that Operating Unit.
4. Enter general Remittance Bank information, such as Bank, Branch, Account
Name, and range of Effective Dates. You can only select active banks and bank
branches.
5. Enter a Minimum Receipt Amount. This is the minimum amount in this currency
that must be specified when you create Automatic receipts with this receipt
method.

Note:
You can also define a minimum receipt amount at the customer profile level.
Receivables uses the larger of the two minimum receipt amounts when creating
Automatic receipts.
6. If the remittance method for this receipt class is either Factoring or Standard and
Factoring, specify the number of Risk Elimination Days for receipts created with
this receipt class (optional). When you factor receipts, Receivables creates a short
term debt to account for your risk in case of customer default. When you run the
Automatic Clearing program to clear or risk eliminate these receipts, the debt is
cleared y days after each receipt's maturity date, where y is the number of risk
elimination days that you enter here.
7. Enter the number of Clearing Days for receipts created with this receipt class
(optional). Remitted receipts are cleared x days after their maturity date, where x
is the number of clearing days that you enter here. Factored receipts are cleared
immediately on the remittance date.
8. To be able to override this bank during the remittance process, check the
Override Bank box.
9. Primary check box: You can only assign one primary remittance account per
currency to your receipt method. Receivables ensures that at least one remittance
account per currency is primary.
10. In the GL Accounts tabbed region, enter GL Account information for this
remittance bank.
In the Unearned Discounts and Earned Discounts fields, select an unearned
discount activity type and an earned discount activity type from the lists of
values.
If using Oracle Trade Management, then in the Claim Investigations field, select
a claim investigation activity type.
Note:
Once you have saved a Remittance bank associated to a Receipt method, you can
no longer make any changes to the GL accounts. If you have to update a GL
account, you will have to end-date the current Remittance Bank and create a
similar one with the necessary GL account corrections.
11. Open the Formatting Programs tabbed region, then enter formatting program
information.To run a printing program when you format remittance batches for
receipts remitted to you using this receipt method, enter a Remittance Print
program. When you factor your remittances, Receivables notifies your print
program so that it functions accordingly. You can use this program to create and
send remittance advice to customers to whom you assign this receipt method.
To run a factoring print program when you format your batches of remitted
receipts for this receipt method, enter a Factoring Print program. When you

factor your remittances, Receivables notifies your factoring print program so that
it behaves accordingly. You cannot enter a factoring transmission program for
this receipt method if your bank branch account's factoring creation medium is
magnetic medium.

d. Setting Up Document Sequences

Receivables automatically creates categories for each receipt method that you have defined.
Refer to Document Sequences chapter in the Oracle Applications System Administrator's Guide
- Configuration for more detailed information on using and defining document sequences and an
explanation of the feature.
You can also review Note 1086565.1, How To Setup Document Sequences In Receivables
Following are the steps to setup the document sequence:
To assign the document sequence:
1. Verify that you already have a document Sequence that you want to use for the
Automatic Receipts.
Responsibility: System Administrator
Navigation: Application > Sequential Numbering > Define

2. Review the Document Category created for the Receipt Method


Responsibility: System Administrator

Navigation: Application > Sequential Numbering > Categories

3. Assign a document sequence to the document category


Responsibility: System Administrator
Navigation: Application > Sequential Numbering > Assign

Enable Sequential Numbering Profile Option


To implement document sequences, you must first enable the Sequential Numbering profile
option. This can be set at the site and/or application level. To view the current setting of this
option, navigate to the Personal Profile Values window and query the 'Sequential Numbering'
profile option.
Valid profile option values are:
Not Used: You can always enter a transaction. The cursor will skip the
Document Number field when you enter transactions. If you set this profile
option to this value, you cannot use the Automatic Receipts feature.
Always Used: You cannot enter a transaction if no sequence exists for it. This
value requires that you enter a document number when entering transactions.

Partially Used; You can enter a transaction even if no sequence exists for it.
However, you will be warned. Use this value, for example, if you want to use
sequential numbering for Automatic receipts, but for nothing else.
Note: The Receivables Automatic Receipts feature uses document sequences
when creating receipts. Consequently, if you are using this feature you must set

this profile option to either 'Partially Used' or 'Always Used'.


e. Define Print programs for your Automatic Receipts.

Use the Format Programs window to define additional receipt or remittance programs that you
use to create receipt documents such as checks or you can define as many receipt programs as
you want. Receivables provides receipt programs that you can use to create and format receipt
and remittance documents. If you need a different Automatic receipt program, you should
standard program and modify it. If you create a custom receipt program, your payment program
cannot exceed eight characters.
The default Automatic Receipt print program is called Print Created Receipts (ARXAPFRC.rdf)
and is located in the $AR_TOP/reports directory.
You specify whether each program is used for the creation, printing, or transmission of
Automatic receipts or remittances and provide a short, descriptive name for your receipt
programs and the program name that you or Receivables defines in Oracle Application Object
Library. You choose a receipt or remittance program by the short name when you define your
programs for printing and transmitting your receipts and remittances.
To define an Automatic receipt or remittance program:
Responsibility: Receivables Manager
Navigation: Setup > Receipts > Format Programs
1. Enter the Name for this Automatic receipt or remittance program.
Tip: Since you can use both a format receipts and a transmit receipts program
with a single receipt format, you should give both the same name. You can use
the same name even if the program type is different.
2. Enter the Type of program you are defining. Receivables recognizes the
following types of receipt and remittance programs:
Print Created Receipts: A program you use to create a batch of Automatic
receipts.
Transmit Created Receipts: A program you use to format the output of Automatic
receipts that you have created on to a magnetic medium.
Print Bank Remittance: A program you use to print a batch of your remittances.
Transmit Bank Remittance: A program you use to format the output of bank
remittance batches that you have created on to a magnetic medium.
Print Transaction: A program you use to print bills receivable transactions.
3. Enter the Registered Name of this receipt program. This is the name that your
System Administrator used to register the program. If you create a custom receipt
program, the name of your payment program cannot exceed eight characters.
Also refer to Note 550146.1 How To Generate Remittance Format Report In Release 12

f. Oracle Payments Setup For Funds Capture Processing

Automated funds capture process enables the retrieval of customer payments (receipts) through
electronic payment methods. To accomplish this funds capture process, Oracle Receivables
integrates with Oracle Payments, the Oracle Applications payment engine.
With this integration, Oracle Payments provides a central repository for your customers'
payment information and uses that information when interacting directly with third party
payment systems and financial institutions. Oracle Payments handles all funds capture
processing for Receivables transactions that have Automatic receipt methods.
Oracle Payments captures funds for these types of Receivables transactions:
Bank account transfers
Credit card transactions

Bills receivable remittances

For a description of the overall Payments process flow, please review: Funds Capture Flow
Overview, Oracle Payments Implementation Guide.
Setting Up Funds Capture by Oracle Payments
To enable the proper processing of electronic payments, complete the general Payments setup
steps. See: Oracle Payments Implementation Guide.
In addition, be sure to complete the following additional funds capture setup steps in Oracle
Payments:
1. Define funds capture payment methods, Oracle Payments Implementation
Guide.
The payment method is the payment medium, which your customers use to remit
payments.
2. Define funds capture process profiles, Oracle Payments Implementation Guide.
The funds capture process profile include processing rules for funds capture.
3. Set up first party payees, Oracle Payments Implementation Guide.
The first party payee is the company who is deploying Oracle Applications.
4. Set up credit card brands, Oracle Payments Implementation Guide.
Enable the credit card brands that the deploying company, or its organizations,
accept for payment.
You must also complete the following setup steps in Oracle Receivables:
1. Define Automatic receipt methods, and assign a funds capture payment method.
2. Assign default payment details at the customer account or site level.
Navigation: Customers > Standard > Payment Details Tab
When you enter payment details, you create payment instruments (credit cards

and customer bank accounts) for a customer account or site. This customer
payment information that you create is actually stored in Payments for use during
funds capture processing.
Note: The payment details you enter at the customer account or site level default
to that customer's transactions. You can also overwrite payment details at the
transaction level
.
Please refer to following Notes for complete setup steps (please review the appropriate article
based on your funds capture payment method):
Note 553614.1 Funds Capture Payments Setup For Credit Card Processing
Note 471418.1 Oracle Payments Setup For Funds Capture Processing
g. Define Remittance Print Programs (optional)

If you skip this step, Oracle Receivables will use the seeded Print program 'Print Created
Receipts' (ARXAPFRC.rdf) during the Format process for Remittance.
Responsibility: Receivables Manager
Navigation: Setup > Receipts > Format Programs
1. Enter the Name for this automatic receipt or remittance program.
Tip: Since you can use both a format receipts and a transmit receipts program
with a single receipt format, you should give both the same name. You can use
the same name even if the program type is different.
2. Enter the Type of program you are defining. Receivables recognizes the
following types of receipt and remittance programs:
o

Print Created Receipts: A program you use to create a batch of automatic


receipts.

Transmit Created Receipts: A program you use to format the output of


automatic

receipts that you have created on to a magnetic medium.

Print Bank Remittance: A program you use to print a batch of your


remittances.

Transmit Bank Remittance: A program you use to format the output of


bank

remittance batches that you have created on to a magnetic medium.

Print Transaction: A program you use to print bills receivable

transactions.
3. Enter the Registered Name of this receipt program. This is the name that your
System Administrator used to register the program. If you create a custom receipt
program, the name of your payment program cannot exceed eight characters.
h. Define System Options, Profile Options and Currency Rates

Responsibility: Receivables Manager


Navigation: Setup > System > System Options
In the Miscellaneous tab, enter a value for Receipts per Commit

If you are going to remit foreign currency transactions, then you need to set the profile option
Responsibility: System Administrator
Navigation: Profile > System
Check that the value for profile option = AR: Default Exchange Rate Type, at the Responsibility
level is not User
Also ensure that you have exchange rates set up for the dates you are creating foreign exchange
receipts.
Responsibility: Receivables Manager
Navigation: Setup > Financials > Accounting > Currencies > Rates > Daily

4. Simulation of Automatic Receipts Feature

Creating Automatic receipts involves three major steps:

Create: Select the invoices to include in your Automatic receipts.


Approve: Update, delete, and approve the receipts that you have selected.

Format: Format your Automatic receipts onto paper to send to your customer for
confirmation or notification before remitting them to your bank on either paper or
magnetic media. This step is optional, as it depends upon the type of Automatic receipt
you create.

You can perform these steps at the same time or separately.


Here we are assuming that you have defined remittance bank accounts in either the currency of
the transaction or with the Multiple Currencies Allowed check box selected.
Please refer: Bank Account Model Overview, Oracle Cash Management User Guide.
a. Assign default payment details at the customer account or site level

Navigation: Customers > Customers


Query up a customer and navigate to the Payment Details tab

Receipt Methods
You can attach Receipt Methods at Customer and Customer Site level. The Site level will take
precedence. You can assign multiple receipt methods to a customer account as long as the start
and end dates of the methods do not overlap. Only one method can be identified as Primary.
During transaction entry, Oracle Receivables uses the primary receipt method as the default.
However, you can override the receipt method, along with the payment method and payment
instrument, at the transaction or receipt level.
By default when you create Transactions, the receipt method attached at Site level will be
defaulted. You can always override this Receipt Method.
Payment Instruments
This customer payment information that you create is actually stored in Oracle Payments for use
during funds capture processing.
Credit Cards
Bank Account Transfer
Assign bank accounts to customer accounts to allow funds to be automatically transferred from
these accounts to your remittance bank account when using Automatic receipts. Receivables
allows multiple customer bank accounts in different currencies and lets you assign bank
accounts to customer addresses.
The primary bank account for a particular currency is used as the default account when you use
Automatic receipts. You can define multiple, non-primary accounts in the same currency, even if

the date ranges overlap.


b. Flagging Transactions for Automatic Receipts

Flag the transactions you want to be picked up by the Automatic receipt creation program. To
flag a transaction for Automatic receipt, enter paying customer information and specify a receipt
method with an Automatic Creation Method.
Navigation: Transactions > Transactions
Enter or query the transaction.
In the Paying Customer region, enter the Name or Number, and the Location.
Enter a receipt method with an associated receipt class that has an Automatic creation method,
or select from the list of values.
Note: The list of values displays only receipt methods assigned to the paying customer.
The selected receipt method automatically defaults the payment method. You need to specify the
instrument number.

To flag imported transactions to be paid by Automatic Receipt, ensure that each transaction to
import has payment details defined and is assigned to a receipt method with an associated
receipt class that has an Automatic Creation Method.
c. Create Automatic Receipts Batch

Select invoices to include in your Automatic receipt batch by entering a receipt class with an
Automatic creation method and specifying other selection criteria such as transactions numbers,
currency, due dates and range of customer names. The create Automatic receipts program picks
up all complete transactions that meet this criteria and creates receipts to close out these
transactions.
In addition to the criteria you specify, Receivables checks the customer's profile to determine
whether a transaction should be included in an Automatic receipt batch. The profile defines
whether it should include invoices that are in dispute. Receivables uses the number of Lead
Days that you enter for your receipt method to determine when an invoice is eligible for the
creation of Automatic receipts. The lead days is the number of days before the invoice due date
that this invoice can be selected for Automatic receipt. A batch of Automatic receipts can only
have one receipt method, thus one lead days value. Receivables compares the invoice due date
and lead days with the batch date.
Navigation Receipts > Batches
1. Choose a Batch Type of Automatic.
2. Enter the Currency for this batch. If you enter a foreign currency, enter exchange
rate information for this batch.
3. Enter the Batch date (default is the current date)
4. If the Receipt Class you entered does not require confirmation as a separate step,
enter the GL Date for this batch. The default GL date is the batch date. The GL
date must fall within an open or future accounting period.
5. Enter a Receipt Class and Receipt Method for this batch, or select from the list of
values. Receivables lets you select active Receipt Classes with a Creation
Method of Automatic.
When you use the list of values to select a Receipt Method, Receivables displays
the Receipt Class to which each Receipt Method is assigned and indicates
whether receipts using this Receipt Class require confirmation. When you enter
selection criteria for this batch in step 9 (below), Receivables requires that each
transaction selected for payment has the Receipt Method you specify here.
6. In the Media Reference field, enter the tape or floppy disk on to which you are
going to create your batch of Automatic receipts (optional).
7. Choose Create (refer to screenshot below)

8. Enter selection criteria to create Automatic Receipts for specific transactions or


customers (optional). For example, enter the low and high values of the
transaction Due Dates, Transaction and Document Numbers, Customer Names,
or Customer Numbers to create Automatic Receipts for those transactions. Leave
a field blank if you do not need to filter on that value.
Note: Enter a range of credit card numbers in the Bank Accounts to create
Automatic Receipts for transactions marked for payment by credit card.

9. Choose OK. Receivables generates a Batch Name by using the next number after
the value in the Last Number field of the receipt source 'AUTOMATIC

RECEIPTS.'
10. Depending upon the function security options set up by your system
administrator, you might be able to create, format, and approve Automatic receipt
batches in one step.
Automatic Receipt Batch Statuses
Automatic Receipts Batches have a status to indicate where the batch is in the process flow.
Valid statuses are:
Started Creation
Creation Completed

Started Approval

Approval Completed

Started Format

Format Completed.

The process can be divided into 3 parts, which can be performed individually or in one step:
Creation - will Lock the Transactions, which are flagged
Approval - will create Automatic Receipts

Formatting (optional) - will print the Receipts into prescribed format

d. Review the Concurrent Program Output

Once the concurrent program completes, you can review the output of the Automatic
Receipts/Remittances Execution Report, which will show details of the Receipts created.

e. Approving Automatic Receipts

Approve a batch of Automatic receipts to verify that only the receipts you want will be included
in the batch. You can update your Automatic receipt batch before you approve it as long as there
are no concurrent processes for creating or approving this batch that are either running or
pending. You can update the bank name, bank branch, and customer bank account associated
with each of the transactions in your batch. You can also update exchange rate information and
exclude transactions from the batch by deselecting them. Once deselected, these transactions
will be available for selection the next time you submit the Automatic receipt creation program.
Upon approval, Automatic Receipts that do not require confirmation close the invoices they are

paying.
Receipts that require confirmation close invoices when they are confirmed.
Receivables lets you update transactions within a batch before you approve the batch. However,
you can only select a new customer bank or bank account for a transaction in your batch that
you have assigned to either this customer or the primary customers of this customer. In addition,
this bank must have a bank account, which is in the same currency as your batch.
Receivables uses various criteria to determine how to create the approved receipts. The Number
of Receipts Rule on the receipt method associated with the Automatic receipt batch determines
the number of receipts to create from the transactions contained in the batch.
When you remit a batch of Automatic receipts, your remittance bank uses the maturity date that
you specify to determine when to transfer the funds for this receipt from your customer's bank to
one of your remittance bank accounts. To determine the maturity date on the approved receipt,
Receivables uses the Receipt Maturity Date Rule on the receipt method. Options are to use the
earliest or the latest due date of all the transactions, which will be applied, to the receipt.
To approve a batch, its status must be Creation Completed or Started Approval.
Navigation: Receipts > Batches

1. Query the batch of Automatic receipts to approve.


2. Select the batch. If you are ready to approve the batch, go to step 6.
3. Update receipt batch information as necessary. You can only update the GL date
of this batch if the batch status is Completed Creation and you are creating
Confirmed receipts. If no GL date is displayed for this batch, the receipts within
this batch are not confirmed.
4. You cannot add new transactions to this batch, but if you want to deselect or

update transactions within the batch, choose Maintain.


If the batch status is Creation Completed, you can exclude a transaction from this
batch by deselecting it.
5. Update transaction information as necessary. For example, Paying Customer,
bank Name, and Account Number.
6. Choose Approve. Receivables displays the Request ID of your concurrent request
for approving this batch of Automatic receipts and assigns a Process Status of
Started Approval. Receivables also creates the Automatic Receipt and
Remittances Execution report. This report lists the number and amount of
Automatic receipts approved in this batch.

Note:
In release 12, a new feature was developed that allows you to Resubmit the
Approval of a Receipt batch in case it fails.
For more information, please review Note 1080448.1, NEW FEATURE :
Resubmit Approval in Automatic Receipts Batch
f. Review the Receipt Created

After Approval is complete, you can review the Receipt Created.


Navigation Receipts > Batches
1. Query the Receipt Batch, note that the process status is now Completed Approval
2. Click on the Maintain Button, the following screenshot shows the Receipt
Number created

Navigation: Receipts > Receipts


1. Using the Receipt number from above, you can run a query to view details of the
Receipt created.

Click on Apply to see that it was applied to the Transaction we created in Step b. above.

g. Formatting Automatic Receipts (Optional)

Format Automatic receipt batches onto paper to send to your customer for confirmation or
notification before remitting them to your bank. You can send these documents to your
customers to notify them of direct debits you are creating. There is no limit to the amount of
times you can format a batch of Automatic receipts.
When you format a batch of Automatic receipts, Receivables creates the Format Automatic
Receipts report. This report provides details about the batches that have been formatted. To
format a batch, it must have a Process Status of Approval Completed

To format a batch of Automatic receipts:


Navigation: Receipts > Batches
1. Query the batch you want to format.
2. Select the batch, then choose Format. Receivables displays the Request ID of
your concurrent request and assigns a Process Status of Started Format.
You can review the results of your formatting request in the Concurrent Requests
Summary window.
h. Confirming Automatic Receipts

Confirm Automatic receipt batches to indicate that your customer has reviewed each receipt and
agrees that the payment information is correct. Depending on the agreement you have with your
customer, certain types of Automatic receipts require confirmation from your customer before
they can be considered payments and remitted to the bank. Once your customers approve these
receipts, you can make any necessary changes, then confirm the receipts in your system.
Receipts that require confirmation automatically close the invoices for which they were created
when you confirm them.
After confirming the batch, you can create a remittance batch to initiate the transfer of funds for
each receipt. To indicate that a receipt requires customer confirmation, you assign a receipt class
that has the Require Confirmation option set to Yes. Receipts that do not require confirmation
are created as confirmed. If the receipt class assigned to an Automatic receipt or Automatic
receipt batch requires confirmation, you must confirm the receipt or batch once it has been
approved. If the receipt class does not require confirmation, Receivables automatically confirms
all of the receipts within the batch when you approve the batch.
You can update a batch of Automatic receipts before you confirm it. You can review and update
the invoices you have selected to apply to the receipt as well as modify the receipt maturity date,
remittance bank, and customer bank information. However, you can only change the approved
amounts for your receipt applications if the receipt is not confirmed. Once confirmed,
Receivables automatically applies the receipt and updates the balance of the transaction(s) to
which it is applied.
You cannot "unconfirm" an Automatic receipt after you confirm it. If you confirm a receipt in
error, you need to reverse and then recreate the receipt. Once you confirm an Automatic receipt,
the transactions closed by this receipt can no longer be selected for Automatic receipt. However,
transactions that have a remaining balance due can be included in a subsequent Automatic
receipt batch.
To confirm a batch of Automatic receipts:
Navigation: Receipts > Batches
1. Query the batch to confirm. To confirm a receipt batch, it must have a status of
Approved.
2. Choose Confirm. After processing all receipts in the batch, Receivables displays
a message indicating how many receipts were successfully confirmed.
To confirm Automatic receipts individually:

Navigation: Receipts > Receipts or Receipts Summary


1. Query the receipts to confirm.
Tip: If you are using the Receipt Summary window, you can query all of the
receipts in an Automatic Receipt batch, and then select and confirm only specific
receipts.
2. To update receipt information, select the receipt, then choose Open. You can
update exchange rate information, the receipt maturity date, the remittance bank
override flag, and customer bank information.
Tip: When your customer confirms the Automatic receipt, they may provide a
confirmation number for each receipt. Enter this number in the Customer
Reference field. This number is passed to your remittance bank, which can then
forward it to the customer bank. This will enable your customer to reconcile their
accounts.
3. To update transactions applied to this Automatic receipt, choose Apply. You can
update the Applied Amount depending on the transaction type associated with the
transaction. If Allow Overapplication is Yes for this transaction type, you can
enter an amount that exceeds the balance due for this transaction. If Natural
Application Only is Yes, you can only enter an amount that brings the balance
due of the transaction closer to zero.
4. If you updated transaction information save your work.
5. Choose Confirm, then enter the GL and Confirmation Date for this receipt. The
GL date must be in an open or future accounting period. If you are reviewing a
receipt that you have already confirmed, Receivables displays the GL date you
specified for the previous confirmation. The default Confirmation date is the
current date, but you can change it.
6. Choose Confirm.
5. Simulation of Remittance

The following provides a summary of the Remittance process, for more detailed information,
please review the About Remittances in the Oracle Receivables User's Guide.
After the receipts are successfully created as shown above, you can invoke the remittance
process. Creating a Remittance batch is very similar to creating receipts, and involves three
steps, which you can run individually or as one step.

Create: Select receipts to include in the Batch.


Approve: Update, delete and approve the receipts you have selected

Format: Format the Remittance on paper so you can send it to your bank for processing.
Oracle Receivables provides a seeded format for remittances. You may customize this
format as needed. The view AR_REMITTED_RECEIPTS_FORMAT_V contains receipt
information you can use for formatting.

Remittance of receipts is only necessary for receipts whose receipt method is associated to a
receipt class that was defined with the following values for Remittance Method:

Standard: Remit automatic receipts to your bank so that funds can be transferred from
you customer's account to yours on the receipt's maturity date.
Factoring: Remit autoamtic receipts to your bank as collateral for a loan from the bank
that is released to you prior to the maturity date of the receipts. You are borrowing
money from the bank in exchange for your receipts.

Standard and Factoring: A combination of the 2 methods above.

Although a remittance bank is associated to a receipt when it was created, Oracle Receivables
provides you with the ability to override it. This is controlled by the following settings:

Override option on the Receipt (Navigation: Receipts > Receipts, in the More tab)

Override option on the Remittance bank definition (Navigation: Setup > Receipts >
Receipt Classes, in the Remittance Banks form)

Ignore override option on the remittance batch, you only have this option during Manual
Creation of a Remittance batch (Navigation: Receipts > Remittances, in Maintain
Remittance Receipts Batch form)

a. Create, Approve and Format the Remittance Batch

Navigation: Receipts > Remittances

1. Enter the Currency for this batch. The default is your functional currency, but
you can change it.
2. Enter the Batch and GL Date. The default Batch Date is the current date, but you
can change it. The GL date must be in an open accounting period. Receivables
uses the GL Date to determine when to post this remittance batch to your general
ledger.
3. Choose a Remittance Method: Standard or Factoring. This value will be used as
criteria to select receipts with receipt classes matching the method you specified.
4. Enter the Receipt Class, Receipt Method, and Remittance Bank information for
this batch, or select from the list of values. You can select both inactive and
active receipt methods for your remittance batches. You must select a remittance
bank that has accounts assigned to the receipt method you entered.
5. To create the remittance batch automatically, using the criteria you provided,
choose Auto Create
You can optionally enter additional criteria to further limit the receipts to be
picked up for remittance by this batch.

6. To create the remittance batch manually, choose Manual Create


You are then presented with the Maintain Remittance Receipt Batch form.
At the top right you can enter Selection Criteria to filter receipts to process. You
can enter a range of Receipt Methods and Maturity Dates, or you can choose
from the following options:
o

Query Batch Only: If you check this box, Receivables will only display
receipts that are associated with this batch. If this is a new batch, this box
is not checked by default.

Ignore Override: Check this box to display all receipts matching the
selection criteria, regardless of whether the receipt's remittance bank
matches the batch remittance bank. If you only want to process receipts
that have the same remittance bank as specified in the batch, leave this
unchecked.

Select All: Check this box to automatically mark all receipts that the
criteria includes in this remittance batch

Once you've entered your selection criteria, run a query (CTRL-F11, or position
the cursor on the field Receipt Method and invoke menu View > Query by
Example > Enter, then Run)
A list of receipts will be presented, if you want to include that receipt in the
batch, check the box on the left.

7. For Manual Create, you have the following options: Approve, Format (as shown
in previous screenshot)
For Auto Create, you have the following options: Create, Approve, Format

(When you choose Format, ensure that in the Assigning Remittance


Banks section above, you defined Print programs in the Formatting tabbed
region)
IMPORTANT:
In Release 12, the formatting of a Remittance batch is handled within Oracle
payments. This requires additional setup within Oracle Payments. Please make
sure to review Note 821660.1, R12: Troubleshooting Issues with European EFT
Create Settlement Batches.
8. Once you click on Ok, a concurrent request will be submitted.
b. Review the Concurrent processes spawned

Navigation: View > Requests


Click on Find

Once completed, you can review the output of the processes:


Automatic Receipts/Remittances Execution Report

and Print Remittances

c. Query the Remittance Batch

Navigation: Receipts > Remittances


You can re-query the remittance batch, note that the status has changed to reflect that is
has Completed Format, and the batch count and amount also reflect the receipts included in the
batch.

Remittance batches, can have the following statuses:


Started Creation
Creation Completed

Started Approval

Approval Completed

Started Format

Format Completed

6. Scheduling Automatic Receipts and Remittances

You can schedule running the Automatic receipts and remittance process using

Responsibility: Receivables Manager


Navigation: Receipts > Schedule Automatic Receipts and Remittances
When you invoke this menu option, you are taken to the Standard Request Submission form, as
if you were to run a report. There are 2 options available:
1. Automatic Receipts Creation Program (API)
2. Automatic Remittances Creation Program (API)
Each option presents a list of parameters which you fill in to provide information on the criteria
you would like the process to run on. When you click Ok, a concurrent process will be spawned
and will run in the background.
You can check for the status of the request by using the View > Requests menu.
7. Accounting for Automatic Receipts

The following table illustrates the accounting entries created during the Automatic receipt
process:
Action

Accounting Entries

Create Invoices

DR Accounts Receivables
CR Revenue

Approve Automatic Receipts


(For Automatic receipts not
requiring Confirmation.)

DR Confirmation
CR Accounts Receivables

Approve Automatic Receipts


(For Automatic receipts requiring
Confirmation.)

Accounting Entries won't be created unless you Confirm

Confirm Automatic Receipts


(For Automatic receipts requiring
Confirmation)

DR Confirmation
CR Accounts Receivables

8. Important Reports

Automatic Receipts and Remittances Execution report


Use this report to review the number and amount of Automatic receipts and remittances you
have created, approved, or formatted. Receivables automatically generates this report when you

submit a batch of Automatic receipts or remittances to be created, approved, or formatted.


For Automatic receipts, the report prints the number of receipts processed and their amounts for
each customer. This report also prints a summary by currency at the end of the report.
For remittances, this report prints the number and amount of remittances for each remittance
bank account and a summary by remittance bank (by currency) at the end of the report.
Receivables also prints any exceptions that occurred while processing Automatic receipts.
Typical exceptions might be that minimum receipt amounts have not been satisfied at the
customer or bank level, or that the primary site has not been defined for that customer and your
system option requires one.
Transactions Awaiting Consolidation
Use this report to review a list of transactions (debit memos, credit memos, on-account credits,
invoices) that have been designated for Automatic receipt application (i.e., that have been
assigned an Automatic receipt method). You can also review transactions that have been
designated to be exchanged for bills receivable (i.e., that have been assigned a bill receivable
receipt method). You can review all transactions that are in different stages of the creation
process. These stages include creating, approving, and formatting. Receivables does not display
transactions that have been confirmed, or approved for Automatic receipt with a receipt class of
Require Confirmation set to No, in this report.
Receivables will also display transactions that started but did not complete, the creation,
approval, or formatting process in this report.
Automatic Receipts Awaiting Confirmation Report
Use this report to review all Automatic receipts awaiting confirmation. Before a receipt can be
included in this report it must be formatted and have been assigned a receipt method with a
receipt class of Require Confirmation set to Yes. Receipts that have been confirmed, or do not
require confirmation, or have been approved but not formatted will not be displayed in this
report.
Receipts Awaiting Remittance Report
Use this report to review a list of Automatic receipts that are awaiting remittance to your bank.
Before an Automatic receipt can be included in this report, it must be confirmed or created as
confirmed, and the receipt class assigned to it must have Require Remittance set to Yes. Before
a manual receipt can be included in this report, the receipt class assigned to it must have Require
Remittance set to Yes. You can review all receipts waiting to be sent to your remittance bank or
receipts that are in different stages of the remittance process.
Once a receipt has been approved for remittance it will no longer be displayed in this report.
Receipts that have started, but not yet completed, the creation or approval process also appear in
this report.
Automatic Receipt Batch Management Report
Use this report to review the status of your Automatic Receipt Batches. Receivables sorts the
batches by currency and by status within each currency. This report also provides you with a
total for each status within each currency and a total of all statuses for each currency.

Receivables does not display Automatic Receipt Batches that have been formatted or approved
for Automatic receipt with a receipt class of Require Confirmation set to No in this report.
On occasion, you will start an Automatic receipt creation, approval, or formatting process and it
will not complete. This could be, for example, because your system went down while the
process was running. To help you manage such batches, Receivables will also display Automatic
Receipt Batches, which have started the creation, approval, or formatting process in this report.
9. Troubleshooting and Known Issues

For a consolidated list of errors and patches, please review Note 1369682.1, Automatic
Receipts: Errors, Known Issues and Patches
10. Facts and FAQs

This section covers some basic details about using Automatic Receipts:
How can I verify which Transactions will be picked by the Automatic Receipts batch?
Run the Transactions Awaiting Consolidation report to review which invoices will be picked up
by the Automatic Receipt program
What should be value of lead days in Receipts Class for Automatic receipts?
Set the lead days to a high value for Automatic receipts that require confirmation. This will
allow the Automatic Receipts process to pick up the transaction to create a receipt, long before
the receipt maturity date, giving you the additional time required to send the receipts to your
customer and for the customer to confirm them. Receipts that will be factored should also have
the lead days set to a high number as they are often remitted long before their maturity date.
How does Automatic Receipt Program set the Maturity Date (= Due Date) for a receipt?
Please refer to Note 271194.1, How Is The DUE_DATE / Maturity_date For An Automatic
Receipt Derived?
What is relevance of Receipts per Commit and Invoices per Commit System Options?
Invoices per Commit is the number of invoices processed by Automatic Receipt program before
saving and Receipts per Commit is number of receipts processed by Automatic Receipt
program.
Set the Receipts per Commit and Invoices per Commit system options to a large number to
avoid intermediate saves in the program. You should use numbers that are large enough to
handle your largest Automatic receipt and remittance batches. To help determine the numbers to
use, look at the end of the log file for your largest Automatic Receipt Creation Batch; this will
give you the number of receipts marked for this batch. Assign this number to Auto Receipts
Invoices per Commit. Look at the log file for your largest Remittance Creation batch to derive
the Auto Receipts Receipts per Commit number. You should only reduce these numbers if you
run out of rollback segments
Why is GL Date not enterable in Automatic Receipts new batch?

Receivables does not let you enter a GL date for a new batch if the receipt class requires
confirmation as a separate step. This is because Receivables does not create accounting entries
until the receipts are confirmed.
Why is Automatic Receipts program not creating Receipts?
Receivables validates that the receipt amount is more than or equal to the Minimum Receipt
Amount that you specified for your remittance bank and customer profile class. You can assign
minimum receipt amounts for your remittance bank accounts in the Receipt Classes window and
for your Customers in the Customer Profile Classes window or Customer set of pages. If the
total of the transactions does not match the larger of the two minimum receipt amounts, no
receipts will be created. These transactions will appear in the Exception section of the Create
Automatic Receipt Execution report.
How does Automatic Receipts calculate minimum Receipt Amount?
Oracle Receivables does not generate Automatic receipts for a currency that is less than the
specified minimum amount. You can define a minimum receipt amount for a receipt method,
and at Customers in the Customer Profile Classes window (either at Customer Account, or Site
Level). Receivables will use the larger of the two minimum receipt amounts when creating
Automatic receipts.
Will Automatic Receipts select Transactions, which are disputed?
You need to check the AutoReceipts Include Disputed Items check box to include debit items
that have been placed in dispute when you create Automatic receipts for customers, in the
Customer Profile Classes window (either at Customer Account, or Site Level).
Can we delete a batch of Automatic Receipts?
You can delete a batch of Automatic Receipts only if the batch status is Started Creation or
Creation Completed. When you delete a batch, all transactions within the batch become
available for selection the next time you submit the Automatic Receipt creation program.
To delete a batch of Automatic receipts:
1. Navigation: Receipts > Batches or Batches Summary.
2. Query the batch to delete. To delete a batch of Automatic receipts, the batch status must
be either Started Creation or Creation Completed.
3. Choose Delete Record from the Edit menu, then choose OK to acknowledge the
message.
Can I enter Automatic Receipts manually?
Yes, If your customer remits a manual document for a transaction that was to be paid for by
Automatic receipt, you can manually enter it in the Receipts window.
Receivables will treat this receipt like any other Automatic receipt. When you remit the receipt
to the bank, the funds will be transferred from the customer's bank account to your bank
account.
To manually enter Automatic receipts:

1. Navigation: Receipts > Receipts


2. Choose a Receipt Method assigned to a receipt class that has a Creation Method of
Automatic and a Remittance Method of Standard, Factoring, or Standard and Factoring.
3. Specify the receipt maturity date. The default is the receipt deposit date, but you can
change it.
4. Choose a Receipt Type of Standard.
5. Enter receipt information.
6. In the Payment Details region, select a payment instrument.
7. Once you manually create the receipt that was originally to be created automatically, you
can apply it to the invoice is was meant to pay.
Can I create cross currency receipt applications using Automatic Receipts?
No, you cannot create cross currency receipt applications using Automatic Receipts.
What is significance of profile option AR: Default Exchange Rate Type in Automatic
Receipts?
'AR: Default Exchange Rate Type' Profile Option determines the default exchange rate to use
when converting foreign currency transactions to your functional currency. If using the
Automatic Receipts and Remittances Creation programs to pay foreign currency transactions,
then set this profile option to a value other than User, and ensure that you have defined
Exchange Rates for the Currency and Dates Automatic Receipts will require.
Can I schedule the Automatic Receipts program?
Yes, you can use Automatic Receipts Creation program to schedule the Automatic Receipts
program to run at predetermined times.
What are important sysadmin functions, which can be used to control user behavior?
The following functions described in the table below can be excluded in the Receipts
Workbench.
Function Name

Restriction(s)

Automatic Receipts: View

View Automatic receipts

Automatic Receipts: Approve

Approve Automatic receipts

Automatic Receipts: Confirm

Confirm Automatic receipts

Automatic Receipts: Create

Create Automatic receipts

Automatic Receipts: Format

Format Automatic receipts

Automatic Receipts: Maintain Maintain Automatic receipts

How is the Miscellaneous Receivables system option Minimum Refund Amount related to
Automatic Receipts?
Receivables system option Minimum Refund Amount field is used for automated receipt
handling only. Receivables provides you with an automated refunds process for your
Transactions, from the initial creation of a credit memo to the refund disbursement, without any
user intervention required. AutoInvoice will automatically create refunds for credit memos that
are imported against paid invoices, if the credit request amounts are equal to or greater than the
minimum specified here. AutoInvoice will place on account any credit amount that is less than
the specified minimum.
Can I reverse an Automatic receipt?
You can reverse an Automatic receipt only if its status is Approved.
Important point to remember when using both AutoLockbox and Automatic Receipts
If you are using the Automatic receipts feature, AutoLockbox ignores all transactions that are
earmarked for Automatic receipt (i.e. transactions assigned to a receipt class with an Automatic
Creation Method).
Discounts and Automatic Receipts
Generally, you would not use discounts with Automatic receipts. This is because the maturity
date for the receipt would be predetermined between you and the customer. The money would
be automatically taken from the customers account on that date, and generally, not before.
However, Receivables will calculate earned discounts for Automatic receipts that do not require
confirmation if you set up your payment terms such that the due date of the transaction would be
the same as the discount date. For example, if the payment schedule for your payment terms
specifies that your transaction is due 30 days after the transaction date, then enter a percent
discount for 30 days after the transaction date for that payment schedule line. This lets
Receivables always take the percent discount you specify.
Receivables does not allow discounts to be calculated for Automatic receipts that require
confirmation. However, you could define a receivables activity type of 'Discount' and create an
adjustment in the Applications window to adjust the balance down on the invoice. Then, charge
the adjusted amount to the discount account defined for the discount receivables type.
Start and End Date Ranges
Many of the components that are used in Automatic receipts have start and end date ranges, such
as receipt methods, remittance bank accounts, and customer bank accounts. When you set up
your Receivables to handle Automatic receipts, you must be careful when assigning date ranges.
Receivables uses date ranges to determine which values will display in your list of values. For
example, if you assign a receipt method with a date range of 01-SEP-08 to 30-SEP-08 to one of
your customers, you will not be able to choose this receipt method if you enter an invoice for
this customer on 01-OCT-08.

Remittance Bank Information


Receivables will generally use the primary remittance bank account associated with the receipt
method and currency of your invoice when determining the remittance bank account for an
Automatic receipt. However, if it finds that a non-primary account for the same currency is the
same as the customer bank account, Receivables will use this account. This lets you avoid bank
charges and allows funds to be transferred more quickly.
You can update remittance bank information for an Automatic receipt if the receipt status is
Confirmed and the bank's Unapplied and On Account GL accounts are the same. To modify
bank information, query the receipt in the Receipts window.
Associating Billing Sites with Automatic Receipts
The system option Require Billing Location for Receipt determines whether Receivables creates
an Automatic receipt for a customer who has no primary bill-to site. If the system option is set to
No and your customer does not have a primary bill-to site defined, Receivables will create your
Automatic receipt without assigning a bill-to site. However, if the system option is set to Yes
and your customer does not have a primary bill-to site, Receivables will not create your
Automatic receipt. The invoices associated with the receipts will display in the Exceptions
section of the Automatic Receipt Execution report
Paying Related Invoices
When Receivables selects invoices for Automatic receipt, it searches for invoices on which the
paying customer matches the customer you have specified in your selection criteria, rather than
the customer who is billed for the invoice. The paying customer is the customer associated with
the customer bank account assigned to your invoice. This could be different from the billing
customer if, for example, you wanted a primary customer to pay for related invoices.
If you want one customer to be able to pay for an invoice billed to another customer, you must
either have the system option Allow Payment of Unrelated Invoices set to Yes, or define a
relationship between the two customers. Then, when entering an invoice, you must enter the
bill-to customer's name and location and the paying customer's bank information.
Numbering Automatic Receipts
To help you track receipts that the Automatic Receipts program creates, you can ensure that the
Automatic receipt's transaction number is the same as the number of the transaction to which it
is applied. To do this, set the Receipt Inherit Invoice Number option to Yes when defining the
receipt class for your Automatic receipt.
If the Receipt Inherit Invoice Number option is set to No, the Automatic Receipts program
automatically generates a unique Automatic receipt number. The Receipt Inherit Invoice
Number option affects only receipts created by the Automatic Receipts program. When creating
a manual Automatic receipt in the Receipts window, you must enter a receipt number.
When defining a Receipt Class with Remittance Method = 'No Remittance', why is the
Remittance GL account still required when defining the banks associated to the Receipt
Methods using this Receipt Class?
This is standard functionality: The remittance account is required if the Clearance Method <>
"Directly". The remittance account is used to prepare the clearing of the receipt used to

materialize the factor payment. It is supposed to store the GL account called Cash Pending for
Reconciliation when the clearance method is not "Directly".

REFERENCES
NOTE:401337.1 - Correct Credit Card Errors or Correct Funds Transfer Errors Form: Overview,
Usage, Known Issues and Patches
NOTE:471418.1 - Oracle Payments Minimum/Dummy Setup For Direct Debit Funds Capture
Processing
NOTE:553614.1 - Oracle Payments Minimum/Dummy Setup For Credit Card/Purchase Card
Funds Capture Processing
NOTE:745996.1 - Automatic Receipts and Remittance: A Complete Guide for R12 Oracle
Receivables Users
NOTE:821660.1 - R12: Troubleshooting Issues with European EFT Create Settlement Batches
NOTE:1080448.1 - Automatic Receipts: Resubmit Approval Feature in Automatic Receipts
Batch is now Available
NOTE:1086565.1 - How To Setup Document Sequences In Receivables
NOTE:1362278.1 - Information Center: Overview of the Receipts Workbench in Oracle
Receivables (AR) 11.5 and later
NOTE:271194.1 - Automatic Receipts: How is the Maturity Date (=DUE_DATE) For An
Automatic Receipt Derived?
NOTE:550146.1 - How To Generate Remittance Format Report In Release 12