Oracle Automatic Receipts and Remittance In R12.docx

8/18/2019 Oracle Automatic Receipts and Remittance In R12.docx

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AUTOMATIC RECEIPTS AND

REMITTANCE IN R12Posted by Raju ERP1. Overview of Automatic Receipts and Remittance.

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

• via the Receipts or Quickcash forms

• via utomatic Receipts

•

via !ockbo"• via the Receipt P#s

$he utomatic Receipts feature allows you to automatically generate receipts for customers with

whom you have predefined agreements. $hese agreements let you collect payments on time by

transferring funds from the customer%s bank account to yours on the receipt maturity date. &ou

can also manage your cash flow by deciding when' where' and how much you should remit to

your bank.

(or e"ample:

)obile *ervice Provider +ompany can make an agreement with its retail customers for

permission to directly debit funds on a predefined date every month based on the invoice

amount.

utomatic Receipts also lets you manage your customer risk and reconcile bank statements. &ou

can decide how you wish to process the receipts from creation to remittance and risk elimination.

$he utomatic Receipts feature satisfies the many variations of bank remittance processing' suchas direct debits.

Once the receipts are created' they can be applied in the same way as manual receipts. &ou can

now remit these receipts to the bank via the Remittance process which will transfer money from

your customer%s account to yours.


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2. Automatic Receipts and Remittance Process.

$he following graphic provides an overview of the utomatic Receipts and Remittance flow:


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,. -hen you run the utomatic 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. &ou can also optionally format your

utomatic receipts onto paper to send to your customer for confirmation or notification

before remitting them to your bank on either p. transactions is flagged for utomatic Receipts creation by assigning a receipt method

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

/. aper or magnetic media.

0. #f re1uired' the ne"t step involves getting confirmation from your customers to indicate

that they reviewed each receipt and agreed that the payment information is correct.

2. fter confirmation' you create remittance batches to select receipts for remittance to your

bank to initiate the transfer of funds from your customer%s account to your account as

payment for the transactions that were previously closed by these receipts. &ou can createunapproved' approved' or approved and formatted remittance batches' which you then send

to your bank.

3. -hen you receive your bank statement' you can then reconcile your receipts. &ou can

optionally submit the utomatic +learing program to automatically clear remitted receipts

and clear or risk eliminate factored receipts in Receivables.


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3. Setting Up to use the Automatic Receipts and Remittance Feature.

$he following table summari4es the steps you must follow to set up utomatic Receipts in your

applications:

Step Description

*tep a 5efine Receipt +lass

*tep b 5efine Receipt )ethod

*tep c ssigning Remittance 6anks

*tep d *etting 7p 5ocument *e1uences

*tep e 5efine Print programs for your utomatic Receipts

*tep f Oracle Payments *etup (or (unds +apture Processing

*tep g 5efine Remittance Print Programs*tep h 5efine *ystem Options' Profile Options and +urrency Rates

a. Define Receipt Class

Responsii!it": Receivables *uper 7ser #avigation: *etup 8 Receipts 8 Receipt +lasses

,. Enter a Receipt +lass by assigning a uni1ue name.

. $he creation method should be utomatic.


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+hoose a Remittance )ethod. $he remittance method determines the accounts that Receivables

uses for utomatic receipts that you create using the receipt method assigned to this receipt class.

+hoose one of the following:

• Standard: $his remittance method is a straightforward remittance' where you re1uest

for 9 amount as payment' and 9 amount is withdrawn from your customer%s account and

transferred to your account. -hen the remittance method is *tandard' ! distributions for the

receipt will use the ! account defined for Remittance in the 6ank ccounts form ;see

ssign Remittance 6anks below


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below


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0. $o assign the same transaction number to the debit memo generated when you create a

debit memo reversal' check the 5ebit )emo #nherit Receipt =umbers bo". 5o not check

this bo" if you want Receivables to generate uni1ue debit memo numbers automatically.

2. $o ensure that the receipt number is always the same as the transaction number to which

it is applied' check the Receipts $nherit %ransaction #umers bo". $his option helps you

track utomatic Receipts. 5o not check this bo" if you want Receivables to generate

document numbers for utomatic Receipts assigned to this receipt class and receipt

method.

, -hen defining receipt methods for a receipt class with an utomatic creation method' you

can choose from the following =umber of Receipts Rules:

o One per &ustomer: +reate one payment for each customer.

o One per &ustomer Due Date: +reate one payment for each customer and due

date. $his option creates several payments for a customer if a customer%s invoices

have several due dates.

o One per $nvoice: +reate one payment for each invoice.

o One per Site: +reate one payment for each site.

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

,. Enter a Receipt )aturity 5ate Rule. Receivables uses this rule to pay invoices that have

different due dates with a single receipt using this receipt method.

+hoose from one of the Rules:o 'ar!iest( if you want the receipt maturity date to be the earliest due date of all of

the invoices that your receipt covers.

o )atest( if you want the maturity date to be the latest due date of all of the invoices

that your receipt covers.

. Enter the utomatic 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.

#f you need a different receipt print program format' you must copy this standard receipt

print program' and modify it accordingly.

/. *pecify a number of !ead 5ays. !ead days indicate the number of days before the invoice

due date that an invoice can be selected for application by the utomatic Receipts program

using this receipt method.


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0. *elect a funds capture payment method. 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.

*elect +redit +ard for transactions to be paid by credit card.

*elect 6ank ccount $ransfer for transactions to be paid by +? ;utomated +learing

?ouse< transfer.

(or transactions to be paid by direct debit' create a new receipt method or use an e"isting

receipt method' and assign or define a new E($@specific payment method.

2. *elect (unds $ransfer Error ?andling to enable the utomatic correction of funds transfer

errors.

-hen defined correctly' utomatic receipt methods can also enable the automatic correction of

funds transfer errors. $his means that Receivables can automatically correct errors encountered

during the credit card authori4ation or payment capture stage' or during a bank account transfer.

Enable this feature by navigating to the (unds $ransfer Error ?andling window from the Receipt

+lasses window. (or each receipt method assigned to an utomatic receipt class' map the error

codes ;obtained from your third party credit card processor or financial institution< to potential

corrective actions in Receivables:

• &hange $nstrument: Enables the selection of a new payment instrument and e"piration

date. #f the transaction%s receipt method has a bank account transfer payment method' then

the e"piration date is not available for update.

• &!ear Pa"ment $nformation( Removes payment information from the transaction. lso

enters a default note on the transaction and raises a business event.

• Retr": $ransactions with funds transfer errors are not included in utomatic Receipts or

Remittances batches. $his option removes the error code from the transaction' which makes

the transaction eligible for inclusion in the ne"t utomatic Receipts or Remittances batch.

• Reverse Receipt( Reverses the receipt' reopens the original transaction' and removes

payment information from the transaction. lso enters a default note on the receipt and

related transaction' and raises a business event.

)ap each error code to a corresponding action for each category: #nvoice' Receipt' or Refund.

5ifferent actions are available for each category' as illustrated in this table:

&ategor" Avai!a!e Actions

#nvoice' 5ebit )emo'+redit )emo

+hange #nstrument' +learPayment #nformation' Retry


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Receipt+hange #nstrument' Retry'Reverse Receipt

Refund Retry' Reverse Receipt

(or E"ample' for the #nvoice category you can map a credit card processor%s error code of -@

AA3 to an action such as Retry.

#f credit card authori4ation later fails and the credit card processor returns the error code of -@

AA3 for multiple transactions' then Receivables will delete the error on all failed transactions in

the #nvoice category that have this error code. $his error code removal makes all failed

transactions eligible for inclusion in the ne"t utomatic Receipts batch.

&ou can optionally enter a subse1uent action' and indicate how many days should pass before

attempting the ne"t action. (or e"ample' you might want to remove the credit card information

after attempting reauthori4ation for two days. #f no subse1uent action is specified' then the

number of days indicates how many days should pass before failed transactions appear on the

+orrect (unds $ransfer Errors page for manual correction.

+. ssigning Remittance 6anks

ssign remittance banks to your receipt methods to facilitate data entry and specify the eneral!edger accounts that Receivables will use when you enter or apply receipts.&ou can assign multiple bank accounts to a receipt method' but you can only have one primaryaccount for each currency defined for that receipt method.

ssigning Remittance 6anks

ssign remittance banks to your receipt methods to facilitate data entry and specify the eneral

!edger accounts that Receivables will use when you enter or apply receipts.

&ou 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.

$o assign a remittance bank to a receipt method:

Responsii!it": Receivables )anager

#avigation: *etup 8 Receipts 8 Receipt +lasses


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• Query the receipt class or receipt method to which you want to assign this remittance

bank. ;as done in step b. above<

• +lick 6ank ccounts.

• *elect your Operating 7nit.

Once you choose an Operating unit' the Receipt )ethod will be available for $ransactions

created under that Operating 7nit.

• Enter general Remittance 6ank information' such as 6ank' 6ranch' ccount =ame' and

range of Effective 5ates. &ou can only select active banks and bank branches.


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• Enter a )inimum Receipt mount. $his is the minimum amount in this currency that

must be specified when you create utomatic receipts with this receipt method.

• #f the remittance method for this receipt class is either (actoring or *tandard and

(actoring' specify the number of Risk Elimination 5ays for receipts created with this receipt

class ;optional


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*etting 7p 5ocument *e1uences

Receivables automatically creates categories for each receipt method that you have defined.

Refer to 5ocument *e1uences chapter in the Oracle pplications *ystem dministrator%s uide @

+onfiguration for more detailed information on using and defining document se1uences and an

e"planation of the feature.

(ollowing are the steps to setup the document se1uence:

$o assign the document se1uence:


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,. Berify that you already have a document *e1uence that you want to use for the utomaticReceipts.

Responsii!it": *ystem dministrator #avigation: pplication 8 *e1uential =umbering 8 5efine

. Review the 5ocument +ategory created for the Receipt )ethodResponsii!it": *ystem dministrator #avigation: pplication 8 *e1uential =umbering 8 +ategories

/. ssign a document se1uence to the document categoryResponsii!it": *ystem dministrator #avigation: pplication 8 *e1uential =umbering 8 ssign

'na!e Se*uentia! #umering Profi!e Option

$o implement document se1uences' you must first enable the *e1uential =umbering profile

option. $his can be set at the site andCor application level. $o view the current setting of thisoption' navigate to the Personal Profile Balues window and 1uery the %*e1uential

=umbering% profile option.

Balid profile option values are:

#ot Used( &ou can always enter a transaction. $he cursor will skip the 5ocument =umber field

when you enter transactions. #f you set this profile option to this value' you cannot use the

utomatic Receipts feature.

A!wa"s Used( &ou cannot enter a transaction if no se1uence e"ists for it. $his value re1uires that

you enter a document number when entering transactions.

Partia!!" Used+ &ou can enter a transaction even if no se1uence e"ists for it. ?owever' you will

be warned. 7se this value' for e"ample' if you want to use se1uential numbering for utomatic

receipts' but for nothing else.

e.Define Print programs for "our Automatic Receipts.

7se the (ormat 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. #f you need a different utomatic receipt program' you should


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standard program and modify it. #f you create a custom receipt program' your payment program

cannot e"ceed eight characters.

$he default utomatic Receipt print program is called Print +reated Receipts ;R9P(R+.rdf<

and is located in the DR$OPCreports directory.

&ou specify whether each program is used for the creation' printing' or transmission of

utomatic receipts or remittances and provide a short' descriptive name for your receipt

programs and the program name that you or Receivables defines in Oracle pplication Object

!ibrary. &ou choose a receipt or remittance program by the short name when you define your

programs for printing and transmitting your receipts and remittances.

$o define an utomatic receipt or remittance program:

Responsibility: Receivables )anager

=avigation: *etup 8 Receipts 8 (ormat Programs

1. Enter the =ame for this utomatic receipt or remittance program.$ip: *ince you can use both a format receipts and a transmit receipts program with a singlereceipt format' you should give both the same name. &ou can use the same name even if the program type is different.

2. Enter the $ype of program you are defining. Receivables recogni4es the following typesof receipt and remittance programs:

Print +reated Receipts: program you use to create a batch of utomatic receipts.$ransmit +reated Receipts: program you use to format the output of utomatic receiptsthat you have created on to a magnetic medium.Print 6ank Remittance: program you use to print a batch of your remittances.$ransmit 6ank Remittance: program you use to format the output of bank remittance batches that you have created on to a magnetic medium.Print $ransaction: program you use to print bills receivable transactions.

3. Enter the Registered =ame of this receipt program. $his is the name that your *ystemdministrator used to register the program. #f you create a custom receipt program' thename of your payment program cannot e"ceed eight characters.

f.Oracle Payments *etup (or (unds +apture Processing

utomated funds capture process enables the retrieval of customer payments ;receipts< through

electronic payment methods. $o accomplish this funds capture process' Oracle Receivables

integrates with Oracle Payments' the Oracle pplications payment engine.

-ith this integration' Oracle Payments provides a central repository for your customers% payment


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Responsii!it": Receivables )anager #avigation: *etup 8 Receipts 8 (ormat Programs

,. Enter the =ame for this automatic receipt or remittance program.

$ip: *ince you can use both a format receipts and a transmit receipts program with a single

receipt format' you should give both the same name. &ou can use the same name even if the program type is different.

. Enter the $ype of program you are defining. Receivables recogni4es the following typesof receipt and remittance programs:

o Print +reated Receipts: program you use to create a batch of automatic receipts.

o $ransmit +reated Receipts: program you use to format the output of automatic

o receipts that you have created on to a magnetic medium.

o Print 6ank Remittance: program you use to print a batch of your remittances.

o $ransmit 6ank Remittance: program you use to format the output of bank

o

remittance batches that you have created on to a magnetic medium.o Print $ransaction: program you use to print bills receivable transactions.

/. Enter the Registered =ame of this receipt program. $his is the name that your *ystemdministrator used to register the program. #f you create a custom receipt program' thename of your payment program cannot e"ceed eight characters.

h.5efine *ystem Options' Profile Options and +urrency Rates

Responsii!it": Receivables )anager #avigation: *etup 8 *ystem 8 *ystem Options#n the )iscellaneous tab' enter a value for Receipts per Commit

#f you are going to remit foreign currency transactions' then you need to set the profile option


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Responsibility: *ystem dministrator Naviation: Profile 8 *ystem

+heck that the value for profile option F AR: Default Exchange Rate ype' at the Responsibilitylevel is not 7ser

lso ensure that you have e"change rates set up for the dates you are creating foreign e"changereceipts.

Responsibility: Receivables )anager Naviation: *etup 8 (inancials 8 ccounting 8 +urrencies 8 Rates 8 5aily

0.*imulation of utomatic Receipts (eature

+reating utomatic receipts involves three major steps:

• +reate: *elect the invoices to include in your utomatic receipts.

• pprove: 7pdate' delete' and approve the receipts that you have selected.

• (ormat: (ormat your utomatic receipts onto paper to send to your customer for

confirmation or notification before remitting them to your bank on either paper or magneticmedia. $his step is optional' as it depends upon the type of utomatic receipt you create.

&ou can perform these steps at the same time or separately.

?ere we are assuming that you have defined remittance bank accounts in either the currency ofthe transaction or with the )ultiple +urrencies llowed check bo" selected.Please refer: 6ank ccount )odel Overview' Oracle +ash )anagement 7ser uide. a. ssign default payment details at the customer account or site level

=avigation: +ustomers 8 +ustomers

Query up a customer and navigate to the Payment 5etails tab

http://download.oracle.com/docs/cd/B34956_01/current/acrobat/120ceug.pdfhttp://download.oracle.com/docs/cd/B34956_01/current/acrobat/120ceug.pdf


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Receipt ,ethods

&ou can attach Receipt )ethods at +ustomer and +ustomer *ite level. $he *ite level will take precedence. &ou can assign multiple receipt methods to a customer account as long as the startand end dates of the methods do not overlap. Only one method can be identified as Primary.

5uring transaction entry' Oracle Receivables uses the primary receipt method as the default.?owever' you can override the receipt method' along with the payment method and paymentinstrument' at the transaction or receipt level.

6y default when you create $ransactions' the receipt method attached at *ite level will bedefaulted. &ou can always override this Receipt )ethod.

Pa"ment $nstruments

$his customer payment information that you create is actually stored in Oracle Payments for useduring funds capture processing.

• &redit &ards

• -an Account %ransfer

ssign bank accounts to customer accounts to allow funds to be automatically transferred fromthese accounts to your remittance bank account when using utomatic receipts. Receivablesallows multiple customer bank accounts in different currencies and lets you assign bank accountsto customer addresses.$he primary bank account for a particular currency is used as the default account when you useutomatic receipts. &ou can define multiple' non@primary accounts in the same currency' even ifthe date ranges overlap. b. (lagging $ransactions for utomatic Receipts


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(lag the transactions you want to be picked up by the utomatic receipt creation program. $oflag a transaction for utomatic receipt' enter paying customer information and specify a receiptmethod with an utomatic +reation )ethod.

#avigation: $ransactions 8 $ransactions

Enter or 1uery the transaction.#n the Paying +ustomer region' enter the =ame or =umber' and the !ocation.Enter a receipt method with an associated receipt class that has an utomatic creation method' or select from the list of values.

$o flag imported transactions to be paid by utomatic Receipt' ensure that each transaction toimport has payment details defined and is assigned to a receipt method with an associated receiptclass that has an utomatic +reation )ethod.

c. +reate utomatic Receipts 6atch*elect invoices to include in your utomatic receipt batch by entering a receipt class with anutomatic creation method and specifying other selection criteria such as transactions numbers'currency' due dates and range of customer names. $he create utomatic receipts program picksup all complete transactions that meet this criteria and creates receipts to close out thesetransactions.

#n addition to the criteria you specify' Receivables checks the customer%s profile to determine


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whether a transaction should be included in an utomatic receipt batch. $he profile defineswhether it should include invoices that are in dispute. Receivables uses the number of !ead 5aysthat you enter for your receipt method to determine when an invoice is eligible for the creation of utomatic receipts. $he lead days is the number of days before the invoice due date that thisinvoice can be selected for utomatic receipt. batch of utomatic receipts can only have one

receipt method' thus one lead days value. Receivables compares the invoice due date and leaddays with the batch date.

#avigation Receipts 8 6atches,. +hoose a 6atch $ype of utomatic.. Enter the +urrency for this batch. #f you enter a foreign currency' enter e"change rate

information for this batch./. Enter the 6atch date ;default is the current date<0. #f the Receipt +lass you entered does not re1uire confirmation as a separate step' enter

the ! 5ate for this batch. $he default ! date is the batch date. $he ! date must fallwithin an open or future accounting period.

2. Enter a Receipt +lass and Receipt )ethod for this batch' or select from the list of values.Receivables lets you select active Receipt +lasses with a +reation )ethod of utomatic.-hen you use the list of values to select a Receipt )ethod' Receivables displays theReceipt +lass to which each Receipt )ethod is assigned and indicates whether receiptsusing this Receipt +lass re1uire confirmation. -hen you enter selection criteria for this batch in step G ;below


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I.Enter selection criteria to create utomatic Receipts for specific transactions or customers;optional


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• *tarted +reation

• +reation +ompleted

• *tarted pproval

• pproval +ompleted

• *tarted (ormat

• (ormat +ompleted.

$he process can be divided into / parts' which can be performed individually or in one step:

• +reation @ will !ock the $ransactions' which are flagged

• pproval @ will create utomatic Receipts

• (ormatting ;optional< @ will print the Receipts into prescribed format

d. Review the +oncurrent Program Output

Once the concurrent program completes' you can review the output of the utomatic

ReceiptsCRemittances E"ecution Report' which will show details of the Receipts created.

e.pproving utomatic Receipts

pprove a batch of utomatic receipts to verify that only the receipts you want will be included

in the batch. &ou can update your utomatic receipt batch before you approve it as long as thereare no concurrent processes for creating or approving this batch that are either running or

pending. &ou can update the bank name' bank branch' and customer bank account associated

with each of the transactions in your batch. &ou can also update e"change rate information and

e"clude transactions from the batch by deselecting them. Once deselected' these transactions will

be available for selection the ne"t time you submit the utomatic receipt creation program. 7pon

approval' utomatic Receipts that do not re1uire confirmation close the invoices they are paying.

Receipts that re1uire confirmation close invoices when they are confirmed.

Receivables lets you update transactions within a batch before you approve the batch. ?owever'

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. #n addition' this

bank must have a bank account' which is in the same currency as your batch.


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Receivables uses various criteria to determine how to create the approved receipts. $he =umber

of Receipts Rule on the receipt method associated with the utomatic receipt batch determines

the number of receipts to create from the transactions contained in the batch.

-hen you remit a batch of utomatic 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. $o determine the maturity date on the approved receipt'

Receivables uses the Receipt )aturity 5ate 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.

$o approve a batch' its status must be +reation +ompleted or *tarted pproval.

#avigation: Receipts 8 6atches

,. Query the batch of utomatic receipts to approve.. *elect the batch. #f you are ready to approve the batch' go to step 3.

/. 7pdate receipt batch information as necessary. &ou can only update the ! date of this batch if

the batch status is +ompleted +reation and you are creating +onfirmed receipts. #f no ! date is

displayed for this batch' the receipts within this batch are not confirmed.


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0. &ou cannot add new transactions to this batch' but if you want to deselect or update transactions

within the batch' choose )aintain.

#f the batch status is +reation +ompleted' you can e"clude a transaction from this batch by

deselecting it.

2. 7pdate transaction information as necessary. (or e"ample' Paying +ustomer' bank =ame' and

ccount =umber.

/. +hoose pprove. Receivables displays the Re1uest #5 of your concurrent re1uest for approvingthis batch of utomatic receipts and assigns a Process *tatus of *tarted pproval. Receivablesalso creates the utomatic Receipt and Remittances E"ecution report. $his report lists thenumber and amount of utomatic receipts approved in this batch.

Documents

Oracle Automatic Receipts and Remittance In R12.docx