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Automatic Receipts [Release 12]

A Complete Guide for Oracle

Receivables Users

An Oracle White paper

October 2008

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Contents Overview of Automatic Receipts:...........................................................3

Automatic Receipts and Re mittance Process ...............................................4

Setting Up Automatic Receipts..............................................................6

Step 1: Define Receipt Class .............................................................7

Step 2: Define Receipt Method...........................................................9

Enabling Automatic Funds Transfer Error Corrections ............................. 10

Step 3: Assigning Remittance Banks................................................... 12

Step 4: Setting Up Document Sequences............................................... 14

Enable Sequential Numbering Profile Option ....................................... 14

Step 5: Define Print programs for your Automatic Receipts........................... 15

Step 6 Oracle Payments Setup For Funds Capture Processing ........................ 16

Setting Up Funds Capture by Oracle Payments ..................................... 16

Simulation of Automatic Receipts Feature:............................................... 17

Step 1 Assign default payment details at the customer account or site level.......... 17

Step 2 Flagging Transactions for Automatic Receipts................................. 19

Step 3 Create Automatic Receipts Batch............................................... 20

Submitting the Automatic receipt creation process.................................. 20

Step 4 Approving Automatic Receipts................................................. 23

Step 5 Formatting Automatic Receipts (Optional)..................................... 24

Step 6 Confirming Automatic Receipts ................................................ 25

Accounting for Automatic Receipts....................................................... 27

Important Reports.......................................................................... 28

Automatic Receipts and Re mittances Execution report................................ 28

Transactions Awaiting Consolidation .................................................. 28

Automatic Receipts Awaiting Confirmation Report................................... 28

Receipts Awaiting Remittance Report ................................................. 28

Automatic Receipt Batch Management 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 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 agreement with its retail customers

to allow 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.

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 will talk 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 Remittance 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 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. The next step in the process involves confirming your Automatic receipt batches, if required, to

indicate that your customer has reviewed each receipt and agrees that the payment information 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

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.

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Setting Up Automatic Receipts The following table provides a sum mary of the steps you must follow to set up Automatic

Receipts in your applications:

Description

Step 1 Define Receipt Class

Step 2 Define Receipt Method

Step 3 Assigning Remittance Banks

Step 4 Setting Up Document Sequences

Step 5 Define Print programs for your Automatic Receipts

Step 6 Oracle Payments 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 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 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 Remittance: 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

Remittance 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 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.

Note: The Receipt Method will be available in all Operating Units and it is not specific to a single

organization.

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

me mo 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.

6. When defining receipt methods for a receipt class with an Automatic creation method, you can

choose from the following Nu mber of Receipts Rules:

One per Customer Create one payment for each customer.

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:

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 payment

selection and creation programs when you physically create the receipt document. If you need a

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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.

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 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, such as 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

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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 all failed 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 number 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 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. 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 Minimum Receipt Amount. This is the minimu m 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).

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 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.

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

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transmission program for this receipt method if your bank branch account's factoring creation

medium 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 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.

Broadly the steps would be:

i) Defining a Document Sequence – Create a new Sequence with Application ‘Receivables’

ii) Defining Document Categories -- This will be auto-created by system when you create Receipt

Method. The table name is AR_CASH_RECEIPTS_ALL and Application =Receivables

iii) Assigning a Document 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 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.

Important: 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.'

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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 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:

1. Navigate Setup�Receipts� Format Programs

2. 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.

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 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.

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 name of

your payment 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 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, 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. 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, see: 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 these 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 these 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.

Customers � Standard � Payment Details Team

W hen 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 Metalink Articles 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

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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 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.

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 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.

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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 payment instrument, at the 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.

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 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

Automatic 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 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 use ‘Select

Instument’ to choose 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.

Receipt Method of type

Automatic is defined,

so this Transaction is

flagged

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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

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.

Receivables checks the customer's profile to determine 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.

Submitting the Automatic receipt creation process 1. Navigate to the Receipt Batches window.

Navigation Receipts � Batches

2. Choose a Batch Type of Automatic.

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 (default is the current date)

5. 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.

6. 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.

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. 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.

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 Document Numbers, Customer Names, or Customer Numbers 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 credit card numbers in the Bank Accounts to create Automatic Receipts for

transactions marked for payment by credit card.

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10. Choose OK. Receivables generates a Batch Name by using the next number after the value in

the Last Number field of the receipt source 'AUTO M A TIC RECEIPTS.'

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 that indicates whether they are complete.

Valid statuses are:

Started Creation,

Creation Completed,

Started Approval,

Approval Completed,

Started Format, and

Format Completed.

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 Receipts into prescribed format. All these 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 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. 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 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.

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 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.

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 Completed, you can exclude a transaction from this batch by

deselecting it.

6. Update transaction information as necessary. For example, Paying Customer, bank Name, and

Account Number.

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 Remittances Execution report. This report

lists the number 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 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.

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 Completed

To format a batch of Automatic receipts:

1. Navigate to the Receipt Batches window.

Navigation Receipts � Batches

2. Query the batch you want to 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 Sum 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 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:

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 Automatic 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 Sum mary window, you can query all of the receipts in an

Automatic 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

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.

4. 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

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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 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

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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 sum mary 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 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 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 me mos, 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, 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.

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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.

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

How to know 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

W hat 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 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 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 Metalink Note 271194.1 How Is The DUE_DATE / Maturity_date For An Automatic

Receipt Derived?

W hat is relevance of Receipts per Com mit and Invoices per Com mit System Options?

Invoices per Com mit is number of invoices processed by Automatic Receipt program before

saving and Receipts per Com mit is number of receipts processed by Automatic Receipt program.

Set the Receipts per Com m it and Invoices per Com mit 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

Com mit. 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

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

when you approve receipts, but do not confirm them.

W hen Automatic Receipts program won’t create Receipts?

Receivables validates that the receipt amount is more than or equal to the Minimum Receipt

A mount 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.

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How Automatic Receipts calculate minimum Receipt Amount?

Oracle Receivables does not generate Automatic receipts for a currency that are less than a

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 has not yet been approved and its

status is 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. 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 Completed.

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 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. Navigate to the Receipts window (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.

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 Automatic

Receipts and Remittances 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 Automatic 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

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 Miscellaneous Receivables system option Minimu m Refund Amount is 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 we 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

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.

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

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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

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.

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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.

Nu mbering 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 Nu mber 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.

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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 warrant that this document is error-free, nor does it provide any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. Oracle specifically disclaims any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the prior written permission of Oracle.