Automatic Receipts [Release 12]

A Complete Guide for Oracle

Receivables Users

An Oracle White paper

October 2008

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Contents
O verview of Auto matic Receipts:...........................................................3
A uto matic Receipts and Re mittance Process ...............................................4
Setting Up Auto matic Receipts..............................................................6
Step 1: Define Receipt Class .............................................................7
Step 2: Define Receipt M ethod ...........................................................9
Enabling Auto matic Funds Transfer Error Corrections ............................. 10
Step 3: Assigning Re mittance Banks ................................................... 12
Step 4: Setting Up Docum ent Sequences............................................... 14
Enable Sequential Nu mbering Profile Option ....................................... 14
Step 5: Define Print programs for your Auto matic Receipts........................... 15
Step 6 Oracle Pay ments Setup For Funds Capture Processing ........................ 16
Setting Up Funds Capture by Oracle Pay ments ..................................... 16
Si mulation of Auto matic Receipts Feature:............................................... 17
Step 1 Assign default pay ment details at the custom er account or site level.......... 17
Step 2 Flagging Transactions for Auto matic Receipts ................................. 19
Step 3 Create Auto matic Receipts Batch ............................................... 20
Sub mitting the Auto matic receipt creation process.................................. 20
Step 4 Approving Auto m atic Receipts ................................................. 23
Step 5 For matting Autom atic Receipts (Optional)..................................... 24
Step 6 Confirming Autom atic Receipts ................................................ 25
Accounting for Auto matic Receipts....................................................... 27
Important Reports.......................................................................... 28
A uto matic Receipts and Re mittances Execution report................................ 28
Transactions A waiting Consolidation .................................................. 28
A uto matic Receipts A waiting Confirmation Report................................... 28
Receipts A waiting Re mittance Report ................................................. 28
A uto matic Receipt Batch Manage ment Report ........................................ 29
So me Facts and Questions:................................................................ 30

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Overview of Automatic Receipts:
Oracle Receivables allows you to create Automatic Receipts along with Manually entering
receipts, and Receipts created through Lockbox. The Receivables Automatic receipts feature can
be used to automatically generate receipts for custo mers with who m you have predefined
agreements. These agreements let you collect pay ments 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 Co mpany can make agreement with its retail customers
to allow directly debitfunds on a predefined date every month based on the invoice amount.
Auto matic 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.
Once created, Automatic receipts can be reapplied in the same way as manual receipts.
You cannot create cross currency receipt applications using Automatic Receipts.

This white-paper willtalk about setup, simulation, and other important relevant topics related to
Oracle Receivables’s Automatic Receipts feature in Oracle E-Business Suite Release 12.

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Automatic Receipts and Remittance Process

The following graphic provides an overview of the Automatic Receipts and Re mittance
processes:

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Text Description of the Automatic Receipts Graphic
This illustration provides an overview of the Automatic Receipts and Remittance processes.

1. First, you flag the transactions that you want the Automatic Receipts process to pay by
assigning a receipt method with an associated receipt class that has an Auto matic creation
method.
2. When you run the Auto matic 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 Auto matic
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. The next step in the processinvolves confirming your Automatic receipt batches,ifrequired, to
indicate that your customer has reviewed each receipt and agrees thatthe pay mentinformation is
correct.
4. After confirmation, you create remittance batches to select Automatic receipts for remittance to
your bank to initiate the transfer of funds from your customer's account to your account as
pay ment 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 sub mit the Auto matic Clearing program to automatically clear remitted receipts and
clear or risk eliminate factored receipts in Receivables.

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Setting Up Automatic Receipts
The following table provides a sum mary of the steps you must follow to set up Auto matic
Receipts in your applications:

Description

Step 1 Define Receipt Class

Step 2 Define Receipt Method

Step 3 Assigning Remittance Banks

Step 4 Setting Up Docu ment Sequences

Step 5 Define Print programs for your Automatic Receipts

Step 6 Oracle Pay ments Setup For Funds Capture Processing

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Step 1: Define Receipt Class
Go to Receivables Responsibility:
Setup
Receipts
Receipt Classes
Enter a Receipt Class by assigning a unique name.
The creation method should be Automatic.
Note: The Receipt Class will be available in all Operating Units and it is not specific to a single
organization.

Choose a Re mittance Method. The remittance method determines the accounts that Receivables
uses for Automatic receiptsthat you create using the receipt method assigned to this receipt class.
Choose one of the following methods:
• Standard: Use the remittance account for Automatic receipts assigned to a receipt method with
this receipt class.
• Factoring: Use the factoring account for Automatic receipts assigned to a receipt method with
this receipt class.
• Standard and Factoring: Choose this method if you want Receivables to select receipts
assigned to this receipt class for remittance regardless of the batch remittance method. In this
case, you can specify either of these remittance methods when creating your remittance batches.
See: Creating Remittance Batches, Oracle Receivables User Guide.
• No Re mittance: Choose this method if you do not require receipts assigned to this receipt class
to be remitted.

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Note: If the creation method is Automatic, then you cannot select No Remittance as the
Re mittance Method.

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:
• The Create Automatic 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 refund credit card receipts that were created using a
receipt method with this receipt class.

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Step 2: 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.
Note: You define receipt methods in the Receipt Classes window as mentioned in step above.
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.

1. Navigate to the Receipt Classes window.

Setup
Receipts
Receipt Classes
Query or enter the receipt class to assign to this receipt method.
2. Enter a unique Na me for your receipt method, and then enter how you want this receipt
method to be printed on your statements in the Printed Na me field. The default Printed Na me is
the receipt method name.
Note: The Receipt Method will be available in all Operating Units and itis not specificto a single
organization.
3. Enter the range of Effective Dates for this receipt method.
4. To assign the same transaction nu mber to the debit me mo generated when you create a debit
me mo reversal,check the Debit Me mo Inherit Receipt Nu mbers box. Do not check this box if you
want Receivables to generate unique debit me mo nu m bers automatically.
5. To ensure that the receipt nu mber is always the same as the transaction nu m ber to which itis
applied, check the Receipts Inherit Transaction Num bers box. This option helps you track
Auto matic Receipts. Do not check this box if you want Receivables to generate docu ment
nu mbers for Automatic Receipts assigned to this receipt class and receipt method.
6. When defining receipt methods for a receipt class with an Automatic creation method, you can
choose from the following N u m ber of Receipts Rules:

One per Customer Create one pay ment for each customer.
One per Customer Due Date Create one pay ment 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 pay ment for each invoice.
One per Site Create one pay ment for each site.
One per Site Due Date Create one pay ment 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:
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.
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 pay ment
selection and creation programs when you physically create the receipt docu ment.If you need a

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different receipt print program format, you must copy this standard receipt print program, and
m odify it accordingly.
9. Specify a nu mber of Lead Days. Lead days indicate the nu mber 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 pay ment method. A funds capture pay ment method is a pay ment
mediu m by which your customer chooses to remit pay ment to you. Oracle Payments predefines
funds capture payment methods, but you can define your own.
Select Credit Card for transactions to be paid by creditcard.
Select Bank Account Transfer for transactions to be paid by AC H (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.

Enabling Automatic Funds Transfer Error Corrections

W hen 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 pay ment instrument and expiration date. If the transaction's
receipt method has a bank account transfer pay ment method, then the expiration date is not
available for update.
Clear Pay ment Information
Re moves pay ment 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 Re mittances batch.
Reverse Receipt
Reverses the receipt, reopens the original transaction, and removes pay ment information from
the transaction. Also enters a default note on the receipt and related transaction, and raises a
business event.
M ap each error code to a corresponding action for each category, such as invoice, receipt, or
refund. Different actions are available for each category, as illustrated in this table:

Category Available Actions

Invoice, Debit Me mo, Credit Me mo Change Instrument, Clear Pay ment Information, Retry
Receipt Change Instrument, Retry,Reverse Receipt
Refund Retry, Reverse Receipt

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For example,for the Invoice category, map a credit card processor's error code of G W-0062 to an
action such as Retry. If credit card authorization later fails and the credit card processor returns
the error code of G W-0062 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 allfailed transactions eligible for inclusion in the next Automatic Receipts batch.
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 nu mber of days indicates how many days should
pass before failed transactions appear on the Correct Funds Transfer Errors page for manual
correction.
Note: Transactions that stillfailthe automatic funds transfer correction process are displayed on
the Correct Funds Transfer Errors page. Navigate to this page to manually correct funds transfer
errors. Optionally enter notes for automatic inclusion on the transaction that recorded the funds
transfer error.

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Step 3: 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:

1. Navigate to the Receipt Classes window.
Setup
Receipts
Receipt Classes
Query the receipt class or receipt method to which you want to assign this remittance bank.
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 Minimu m Receipt A mount. This is the minim u m a mount in this currency that must be
specified when you create Auto matic receipts with this receipt method.
Note: You can also define a minimu m receipt amount at the customer profile level.
Receivables uses the larger of the two minimu m receipt amounts when creating Auto matic
receipts.
6. If the remittance method for this receipt class is either Factoring or Standard and Factoring,
specify the nu mber of Risk Elimination Days for receipts created with this receipt class (optional).
W hen 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 debtis cleared y days after each receipt'smaturity date, where y isthe nu mber of risk
elimination days that you enter here.
7. Enter the nu mber of Clearing Days for receipts created with this receipt class (optional).
Re mitted receipts are cleared x days after their maturity date, where x is the num ber of clearing
days that you enter here. Factored receipts are cleared im mediately 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 atleast one remittance account per currency is primary.
10 .In the GL Accounts tabbed region, enter GL Accountinformation 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 M anagement, then in the Claim Investigations field, select a claim
investigation activity type.
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 who m 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 thatit behaves accordingly. You cannot enter a factoring

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transmission program for this receipt method if your bank branch account's factoring creation
mediu m is magnetic medium.

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Step 4: Setting Up Document Sequences

Receivables automatically creates categories for each receipt method that you have defined.
Refer to Docu ment Sequences chapter in the Oracle Applications System Administrator's Guide -
Configuration for more detailed information on using and defining docu ment sequences and an
explanation of the feature.
Broadly the steps would be:
i) Defining a Docu ment Sequence – Create a new Sequence with Application ‘Receivables’
ii) Defining Docu ment Categories -- This will be auto-created by system when you create Receipt
M ethod. The table name is A R_C AS H_RECEIPTS_ALL and Application =Receivables
iii) Assigning a Docu ment Sequence – You need to assign Sequence to a Category for a given
Ledger and Method NULL or Automatic.

Enable Sequential Numbering Profile Option

To implement docu ment sequences, you must first enable the Sequential Num bering 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 Nu mbering'
profile option.
Valid profile option values are:
• Not Used
You can always enter a transaction. The cursor will skip the Docu ment Nu mber field when you
enter transactions. If you set this profile option to this value, you cannot use the Auto matic
Receipts feature.
• Always Used
You cannot enter a transaction if no sequence exists for it. This value requires that you enter a
docu ment nu mber 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 nu mbering for Automatic receipts, but for
nothing else.
Important: The Receivables Automatic Receipts feature uses docu ment sequences when creating
receipts. Consequently,if you are using this feature you must set this profile option to either
'Partially Used' or'Always Used.'

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Step 5: 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 docu ments. If you need a different Automatic receipt program, you should
standard program and modify it.If you create a custom receipt program, your pay ment program
cannot exceed eight characters.
The default Automatic Receipt print program is called Print Created Receipts (A RX APFRC.rdf)
and is located in the $AR_TOP/reports directory.
You specify whether each program is used for the creation, printing, or transmission of
Auto matic receipts or remittances and provide a short, descriptive name for your receipt
programs and the program na me 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:

1. Navigate Setup
Receipts
Format Programs
2. Enter the Na me for this Auto matic 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 na me. You can use the same name even if the
program type is different.
3. 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 Re mittance: A program you use to print a batch of your remittances.
Transmit Bank Re mittance: 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.
4. Enter the Registered Name of this receipt program. This is the name that your System
Ad ministrator used to register the program. If you create a custom receipt program, the na me of
your pay ment program cannot exceed eight characters.

Also refer to Metalink Note 550146.1 How To Generate Remittance Format Report In Release 12

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Step 6 Oracle Payments Setup For Funds Capture Processing
Funds capture refers to the automated funds capture process that enables the retrieval of
customer pay ments (receipts) through electronic pay ment methods. To accomplish this funds
capture process, Oracle Receivables integrates with Oracle Pay ments, the Oracle Applications
pay ment engine.
With this integration, Payments provides a central repository for your customers' pay ment
information and uses that information when interacting directly with third party pay ment
systems and financialinstitutions. Pay ments handles allfunds capture processing for Receivables
transactions that have Automatic receipt methods.
Oracle Pay ments captures funds for these types of Receivables transactions:
• Bank account transfers
• Credit card transactions
• Bills receivable remittances
For a description of the overall Pay ments process flow, see: Funds Capture Flow Overview,
Oracle Payments Implementation Guide.

Setting Up Funds Capture by Oracle Payments

To enable the proper processing of electronic pay ments, complete the general Pay ments setup
steps. See: Oracle Payments Implementation Guide.
In addition, be sure to complete these additional funds capture setup steps in Oracle Pay ments:
1. Define funds capture payment methods, Oracle Payments Implementation Guide.
The pay ment method is the payment medium, which your customers use to remit pay ments.
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
pay ment.

You must also complete these setup steps in Oracle Receivables:

1. Define Automatic receipt methods, and assign a funds capture pay ment method.
2. Assign default payment details atthe customer account or site level.
Customers
Standard
Pay ment Details Team
W hen you enter pay ment details, you create pay ment instruments (credit cards and customer
bank accounts)for a customer account or site. This customer pay ment information that you create
is actually stored in Pay ments for use during funds capture processing.
Note: The pay ment details you enter at the customer account or site level default to that
customer's transactions. You can also overwrite pay ment details atthe transaction level.

Please refer to following Metalink Articles for co mplete setup steps (please review the
appropriate article based on your funds capture pay m ent method):
Note 553614.1 Funds Capture Payments Setup For Credit Card Processing
Note 471418.1 Oracle Payments Setup For Funds Capture Processing

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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 Auto matic 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 assu ming that you have defined remittance bank accounts in either the currency of
the transaction or with the M ultiple Currencies Allowed check box selected.
Please refer: Bank Account Model Overview, Oracle Cash Management User Guide.

Step 1 Assign default payment details at the customer account or site level
Navigation: Customers
Customers
Payment Details tab

Receipt Methods
You can attach Receipt Methods at Customer and Custo mer Site level.
The Site level willtake 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.

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During transaction entry, Oracle Receivables uses the primary receipt method that you defined
for your customer accounts as the default. However, you can override the receipt method, along
with the payment method and pay ment instrument, atthe transaction or receipt level.
By default when you create Transactions, the receipt method attached at Customer level (step1)
will be defaulted. You can always override this Receipt Method.

Pay ment Instruments

This customer pay ment information that you create is actually stored in Oracle Pay ments 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 accounts 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
Auto matic receipts. You can define multiple, non-primary accounts in the same currency, even if
the date ranges overlap.

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Step 2 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.

To flag manually entered transactions to be paid by Automatic Receipt

Navigate to the Transactions window, Transactions
Transactions
Enter or query the transaction.
In the Paying Customer region, enter the Na me or Num ber, 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 custo mer.
The selected receipt method automatically defaults the pay ment method. You need to use ‘Select
Instument’ to choose instrument nu mber.

Receipt Method of type

A uto matic is defined,
so this Transaction is
flagged

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

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Step 3 Create Automatic Receipts Batch
Select invoices to include in your Automatic receipt batch by entering a receipt class with an
Auto matic creation method and specifying other selection criteria such as Transactions nu mbers ,
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
w hether a transaction should be included in an Auto matic receipt batch.
Receivables checks the custo mer's profileto determine w hetheritshould include invoices that are
in dispute. Receivables uses the nu mber 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
nu mber of days before the invoice due date that this invoice can be selected for Auto matic
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.

Submitting the Automatic receipt creation process

1. Navigate to the Receipt Batches window.
Navigation Receipts
Batches
2. Choose a Batch Type of Auto matic.
3. Enter the Currency for this batch. If you enter a foreign currency, enter exchange rate
information for this batch.
4. Enter the Batch date (defaultisthe current date)
5. Ifthe Receipt Class you entered does not require confirmation as a separate step, enter the GL
Date for this batch. The default GL dateisthe batch date. The GL date must fall within an open or
future accounting period.
6. Enter a Receipt Class and Receipt Method for this batch, or select from the list of values.
Receivables lets you selectactive Receipt Classes with a Creation Method of Automatic.
W hen 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. W hen you enter selection criteria for this batch in step 9 (below),
Receivables requires that each transaction selected for pay ment has the Receipt Method you
specify here.
7.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).

8. Choose Create (refer to screenshot below)

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9. 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 Docu ment Nu mbers, Customer Na mes, or Customer Nu mbers to create Automatic Receipts
for those transactions. Leave a field blank if you do not want to limit your query.
Note: Enter a range of creditcard nu mbers in the Bank Accounts to create Automatic Receipts for
transactions marked for pay ment by credit card.

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10. Choose OK. Receivables generates a Batch Na me by using the next nu mber after the value in
the Last Nu mber field of the receipt source 'AUT O M A TIC RECEIPTS.'
Depending upon the function security options set up by your system ad ministrator, you might be
able to create,format, and approve Automatic receipt batches in one step.

Auto matic Receipt Batch Statuses

Auto matic Receipts Batches have a status that indicates whether they are complete.
Valid statuses are:
Started Creation,
Creation Co mpleted,
Started Approval,
Approval Co mpleted,
Started Format, and
Format Co mpleted.

The process can be divided into 3 parts as

Creation, Approval, and Formatting (optional)
Creation will Lock the Transactions, which are flagged, Approval will create Automatic Receipts
and Formatting will print the Receiptsinto prescribed format. Allthese 3 steps can be performed
in a single shot or can be done separately.

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Step 4 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 na me, 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 sub mit the Auto matic 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. Ho wever,
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 isin the same currency as your batch.
Receivables uses various criteria to determine how to create the approved receipts. The Nu mber
of Receipts Rule on the receipt method associated with the Automatic receipt batch determines
the nu mber of receiptsto create from the transactions contained in the batch. Options are One per
Customer, One per Customer and Due Date, One per Invoice, One per Site, and One per Site and
Due Date.
W hen you remit a batch of Automatic receipts, your remittance bank uses the maturity date that
you specify to determine when to transfer the funds forthis 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 allthe transactions, which will be applied, to the receipt.
To approve a batch,its status must be Creation Co mpleted or Started Approval.

To approve Automatic receipts:

1. Navigate to the Receipt Batches window.
Navigation Receipts
Batches
2. Query the batch of Automatic receipts to approve.
3. Select the batch. If you are ready to approve the batch, go to step 7.
4. Update receipt batch information as necessary. You can only update the GL date ofthis batch if
the batch status is Co mpleted Creation and you are creating Confirmed receipts.If no GL date is
displayed for this batch, the receipts within this batch are not confirmed.
5. 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 Co mpleted, you can exclude a transaction from this batch by
deselecting it.
6. Update transaction information as necessary. For example, Paying Customer, bank Na me, and
Account Nu mber.
7. 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 Re mittances Execution report. This report
lists the nu mber and amount of Automatic receipts approved in this batch.

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Step 5 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 docu ments 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.
W hen 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 Co mpleted

To format a batch of Automatic receipts:

1. Navigate to the Receipt Batches window.
Navigation Receipts
Batches
2. Query the batch you wantto format.
3. 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 Su m mary
window.

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Step 6 Confirming Automatic Receipts
Confirm Automatic receipt batches to indicate that your customer has reviewed each receipt and
agrees that the pay ment information is correct. Depending on the agreement you have with your
customer, certain types of Auto matic 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 receiptsin 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 setto 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 Auto matic 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 ifthe receiptis 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. Ho wever,
transactions that have a remaining balance due can be included in a subsequent Auto matic
receipt batch.
To confirm a batch of Auto matic receipts:
1. Navigate to the Receipt Batches window.
Navigation Receipts
Batches
2. Query the batch to confirm. To confirm a receipt batch,it must have a status of Approved.
3. Choose Confirm. After processing all receipts in the batch, Receivables displays a message
indicating how many receipts were successfully confirmed.

To confirm Auto matic receipts individually:

1. Navigate to the Receipts or Receipts Sum mary window.
2. Query the receipts to confirm.
Tip: If you are using the Receipt Su m mary window , you can query all of the receipts in an
Auto matic Receipt batch, and then select and confirm only specific receipts.
3. 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
nu mber for each receipt. Enter this nu mber in the Customer Reference field. This nu mber is
passed to your remittance bank, which can then forward itto the customer bank. This will enable
your customer to reconcile their accounts.
4. To update transactions applied to this Automatic receipt, choose Apply. You can update the
Applied A mount depending on the transaction type associated with the transaction. If Allow
Overapplication is Yes for thistransaction type, you can enter an amount that exceeds the balance

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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.
5. If you updated transaction information save your work.
6. 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.
7. Choose Confirm.

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Accounting for Automatic Receipts

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

Action Accounting Entries

Create Invoices D R Accounts Receivables
CR Revenue

Approve Automatic Receipts D R Confirmation

(For Automatic receipts not requiring Confirmation.) CR Accounts Receivables

Approve Automatic Receipts Accounting Entries won’t be

(For Automatic receipts requiring Confirmation.) created unless you Confirm

Confirm Automatic Receipts D R Confirmation

(For Automatic receipts requiring Confirmation) CR Accounts Receivables

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Important Reports

Automatic Receipts and Remittances Execution report

Use this report to review the nu mber and amount of Automatic receipts and remittances you
have created, approved, or formatted. Receivables auto matically generates this report when you
sub mit a batch of Automatic receipts or remittances to be created, approved, or formatted.
For Automatic receipts,the report prints the nu mber of receipts processed and their amounts for
each customer. This report also prints a sum mary by currency at the end of the report.
For remittances, this report prints the nu mber and am ount of remittances for each remittance
bank account and a sum mary 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 minimu m 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 me mos, credit me mos, 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 m ust be formatted and have been assigned a receipt method with a
receipt class of Require Confirmation set to Yes. Receipts that have been confirmed, 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
Re mittance 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.

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Automatic Receipt Batch Management Report
Use this report to review the status of your Autom atic Receipt Batches. Receivables sorts the
batches by currency and by status within each currency. This report also provides you with a
totalfor each status within each currency and a total of allstatuses 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.

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Some Facts and Questions:
This section covers some basic details about using Auto matic Receipts:

Ho w to know which Transactions will be picked by the Automatic Receipts batch?

Run the Transactions A waiting Consolidation report to review which invoices will be picked up
by the Automatic Receipt program

W hat should be value of lead days in Receipts Class for Auto matic receipts?
Set the lead days to a high value for Automatic receipts that require confirmation. This will give
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 nu mber
as they are often remitted long before their maturity date.

Ho w does Automatic Receipt Program set the Maturity Date (= Due Date) for a receipt?
Please refer to Metalink Note 271194.1 How Is The DUE_DATE / Maturity_date For An Automatic
Receipt Derived?

W hat is relevance of Receipts per Co m mit and Invoices per Co m mit System Options?
Invoices per Co m mit is nu mber of invoices processed by Automatic Receipt program before
saving and Receipts per Com mit is number of receipts processed by Automatic Receipt program.
Setthe Receipts per Co m m it and Invoices per Co m mit system options to a large nu mber to avoid
intermediate saves in the program. You should use num bers that arelarge enough to handle your
largest Automatic receipt and remittance batches. To help determine the nu mbers to use,look at
the end of the log file for your largest Automatic Receipt Creation Batch; this will give you the
nu mber of receipts marked for this batch. Assign this nu mber to Auto Receipts Invoices per
Co m mit. Look at the log file for your largest Remittance Creation batch to derive the Auto
Receipts Receipts per Co m mit nu mber. You should only reduce these nu mbers if you run out of
rollback segments

W hen GL Date is 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
w hen you approve receipts, but do not confirm them.

W hen Auto matic Receipts program won’t create Receipts?

Receivables validates that the receipt amount is more than or equal to the Minimu m Receipt
A mount that you specified for your remittance bank and customer profile class. You can assign
minimu m receipt amounts for your remittance bank accounts in the Receipt Classes windo w and
for your Customers in the Customer Profile Classes window or Customer set of pages.Ifthe total
of the transactions does not match the larger of the two minimu m receipt amounts, no receipts
will be created. These transactions will appear in the Exception section of the Create Auto matic
Receipt Execution report.

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Ho w Auto matic Receipts calculate minimu m Receipt Amount?
Oracle Receivables does not generate Automatic receipts for a currency that are less than a
specified minimu m a mount. You can define a minimu m 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 minimu m receipt amounts when creating
Auto matic receipts.

Will Automatic Receipts select Transactions, which are disputed?

You need to check the AutoReceipts Include Disputed Items check box to include debititems 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 Auto matic Receipts only if the batch has not yet been approved and its
status is Creation Co mpleted. When you delete a batch, alltransactions within the batch beco me
available for selection the next time you sub mit the Automatic Receipt creation program.
To delete a batch of Automatic receipts:
1. Navigate to the Receipt Batches or the Receipt Batches Sum mary window.
2. Query the batch to delete. To delete a batch of Automatic receipts, the batch status must be
either Started Creation or Creation Co mpleted.
3. Choose Delete Record from the Edit menu, then choose OK to acknowledge the message.

Can we enter Automatic Receipts manually?

Yes, we can. If your customer remits a manual docu ment for a transaction that was to be paid for
by Automatic receipt, you can manually enter itin the Receipts window.
Receivables willtreatthis receiptlike 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. Navigate to the Receipts window (Receipts
Receipts)
2. Choose a Receipt Method assigned to a receipt class that has a Creation Method of Auto matic
and a Remittance Method of Standard, Factoring, or Standard and Factoring.
3. Specify the receipt maturity date. The defaultisthe 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 pay ment instru ment.

Can we create cross currency receipt applications using Automatic Receipts?

No, we cannot create cross currency receipt applications using Automatic Receipts.

W hat is significance of profile option AR: Default Exchange Rate Type in Automatic Receipts?
Profile AR: Default Exchange Rate Type determines the default exchange rate to use when
converting foreign currency transactions to your functional currency. If using the Auto matic
Receipts and Re mittances Creation programs to pay foreign currency transactions, then set this
profile option to a value other than User.

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Can we schedule the Automatic Receipts program?
Yes, we can use Automatic Receipts Creation program to schedule the Auto matic Receipts
program to run at predetermined times.

W hat 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
W orkbench.
Function Na me Restriction(s)
Auto matic Receipts: View View Automatic receipts
Auto matic Receipts: Approve Approve Automatic receipts
Auto matic Receipts: Confirm Confirm Automatic receipts
Auto matic Receipts: Create Create Automatic receipts
Auto matic Receipts: Format Format Automatic receipts
Auto matic Receipts: Maintain M aintain Automatic receipts

Ho w Miscellaneous Receivables system option Minim u m Refund A mount is related to

Auto matic Receipts?
Receivables system option Minimu m Refund A m ount 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 me m o to the refund disbursement, without any
user intervention required. AutoInvoice will automatically create refunds for credit me mos that
are imported against paid invoices,ifthe credit request amounts are equal to or greater than the
minimu m specified here. AutoInvoice will place on account any credit amount that is less than
the specified minimu m.

Can we reverse an Automatic receipt?

You can reverse an Automatic receipt only ifits status is Approved.

Important point to reme m ber when using both AutoLockbox and Automatic Receipts
If you are using the Automatic receipts feature, AutoLockbox ignores all transactions that are
selected for Automatic receipt (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.
Ho wever, Receivables will calculate earned discounts for Automatic receipts that do not require
confirmation if you set up your pay ment terms such that the due date ofthe transaction would be

32
the same as the discount date. For example, if the pay ment schedule for your pay ment 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 pay ment 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. Ho wever, 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

M any 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 m ust 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.

Re mittance 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
Auto matic receipt. Ho wever,ifit 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 receiptin 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.Ifthe system option is set to
No and your customer does not have a primary bill-to site defined, Receivables will create your
Auto matic receipt without assigning a bill-to site. However,ifthe 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
Auto matic Receipt Execution report

Paying Related Invoices

W hen 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.

33
If you want one customer to be able to pay for an invoice billed to another custo mer, you must
either have the system option Allow Pay ment 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.

N u m bering Automatic Receipts

To help you track receipts that the Automatic Receipts program creates, you can ensure that the
Auto matic receipt'stransaction nu mber isthe same as the nu mber of the transaction to which itis
applied. To do this, set the Receipt Inherit Invoice N u mber option to Yes when defining the
receipt class for your Automatic receipt.
If the Receipt Inherit Invoice Nu mber option is set to No, the Automatic Receipts program
automatically generates a unique Automatic receipt num ber. The Receipt InheritInvoice Nu mber
option affects only receipts created by the Automatic Receipts program. When creating a manual
Auto matic receipt in the Receipts window, you must enter a receipt nu mber.

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White Paper Title Automatic Receipts [Release 12], A Complete Guide for Oracle Receivables Users
[October] 2008
Author: Bharat Rajani, GCS.
Contributing Authors:
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
www.oracle.com
Copyright © 2008 Oracle. All rights reserved. Oracle is a registered trademark of Oracle. Various product and service names referenced herein may be
trademarks of Oracle. All other product and service names mentioned may be trademarks of their respective owners.

Disclaimer: This document is provided for information purposes only and the contents hereof are subject to change without notice. Oracle does not
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implied warranties and conditions of merchantability or fitness for a particular purpose. Oracle specifically disclaims any liability with respect to this
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transmitted in any form or by any means, electronic or mechanical, for any purpose, without the prior written permission of Oracle.

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