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7/6/2018 Document 745996.

Copyright (c) 2018, Oracle. All rights reserved.

Automatic Receipts and Remittance: A Complete Guide for R12 Oracle Receivables Users (Doc ID
745996.1)
Modified: 15-May-2018 Type: BULLETIN

In this Document

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

APPLIES TO:

Oracle Receivables - Version 12.0.0 and later


Information in this document applies to any platform.

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ConcurrentProgram:ARZCAR_RECEIPT - Automatic Receipts Creation Program


ConcurrentProgram:ARZCAR_REMIT - Automatic Remittances Creation Program

PURPOSE

Oracle Receivables (AR): Receipts Workbench Information Center > Note 745996.1

This document discusses setup, simulation, running, reports and other information relevant for Oracle Receivables Automatic
Receipts and Remittance feature in Oracle E-Business Suite Release 12.

SCOPE

For R12 Oracle Receivables users.

DETAILS

1. Overview of Automatic Receipts and Remittance

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

via the Receipts or Quickcash forms


via Automatic Receipts
via Lockbox
via the Receipt APIs

The Automatic Receipts feature allows you to automatically generate receipts for customers with whom you have predefined
agreements. These agreements let you collect payments on time by transferring funds from the customer's bank account to
yours on the receipt maturity date. You can also manage your cash flow by deciding when, where, and how much you should
remit to your bank.

For example:
A Mobile Service Provider Company can make an agreement with its retail customers for permission to directly debit funds on
a predefined date every month based on the invoice amount.

Automatic Receipts also lets you manage your customer risk and reconcile bank statements. You can decide how you wish to
process the receipts from creation to remittance and risk elimination. The Automatic Receipts feature satisfies the many
variations of bank remittance processing, such as direct debits.

Note: You cannot create cross currency receipt applications using Automatic Receipts.

Once the receipts are created, they can be applied in the same way as manual receipts. You can now remit these receipts to
the bank via the Remittance process which will transfer money from your customer's account to yours.

2. Automatic Receipts and Remittance Process

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

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1. A transactions is flagged for Automatic Receipts creation by assigning a receipt method with an associated receipt class
that has an Automatic creation method.
2. When you run the Automatic Receipts program, Receivables creates receipts to close out all completed transactions
that meet the selection criteria. Receivables also lets you update, delete and approve the receipts that were selected.
You can also optionally format your Automatic receipts onto paper to send to your customer for confirmation or
notification before remitting them to your bank on either paper or magnetic media.
3. If required, the next step involves getting confirmation from your customers to indicate that they reviewed each receipt
and agreed that the payment information is correct.

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4. After confirmation, you create remittance batches to select receipts for remittance to your bank to initiate the transfer
of funds from your customer's account to your account as payment for the transactions that were previously closed by
these receipts. You can create unapproved, approved, or approved and formatted remittance batches, which you then
send to your bank.
5. When you receive your bank statement, you can then reconcile your receipts. You can optionally submit the Automatic
Clearing program to automatically clear remitted receipts and clear or risk eliminate factored receipts in Receivables.

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

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

Step Description

Step a Define Receipt Class

Step b Define Receipt Method

Step c Assigning Remittance Banks

Step d Setting Up Document Sequences

Step e Define Print programs for your Automatic Receipts

Step f Oracle Payments Setup For Funds Capture Processing


Step g Define Remittance Print Programs
Step h Define System Options, Profile Options and Currency Rates

a. Define Receipt Class

Note: Receipt Classes are not Operating Unit specific. This means you define it once and it can be used
across all Operating Units.

Responsibility: Receivables Super User


Navigation: Setup > Receipts > Receipt Classes

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


2. The creation method should be Automatic.

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3. Choose a Remittance Method. The remittance method determines the accounts that Receivables uses for
Automatic receipts that you create using the receipt method assigned to this receipt class. Choose one of
the following:

Standard: This remittance method is a straightforward remittance, where you request for X
amount as payment, and X amount is withdrawn from your customer's account and transferred to
your account. When the remittance method is Standard, GL distributions for the receipt will use
the GL account defined for Remittance in the Bank Accounts form (see Assign Remittance Banks
below).
Factoring: In this remittance method, you sell to the bank your receipts in exchange for cash. GL
distributions for receipts using this remittance method will use the Factoring GL account defined
for Factoring in the Bank Accounts form (see Assign Remittance Banks below). Note that the GL
account for Factoring will not be enabled, unless the Remittance method is Factoring or Standard
and Factoring.
Standard and Factoring: Choose this method when the receipts using this method can be
remitted either as Standard or factored.
No Remittance: Choose this method if you do not require receipts assigned to this receipt class
to be remitted

Notes:

If the Creation Method = Automatic, you cannot select Remittance Method = No


Remittance
For Credit Card payments, Remittance Method = Standard

4. To require Automatic receipts assigned to this receipt class to be confirmed before they can be remitted,
check the Require Confirmation box. Check this box to confirm Automatic receipts using this receipt
class in the Confirm Automatic Receipts window.

If you check this box, then:

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

b. Define Receipt Method

Receivables uses receipt methods to account for your receipt entries and applications. Receipt methods also
determine a customer's remittance bank information.

Notes:

1. You define receipt methods in the Receipt Classes window as mentioned in step above.
2. The Receipt Method will be available in all Operating Units and it is not specific to a single
organization.

You can assign multiple remittance banks to each receipt method, but only one bank account can be the primary
account for each currency. For each remittance bank branch account assigned to a receipt method, you must
define all of your receipt accounts.

Responsibility: Receivables Manager


Navigation: Setup > Receipts > Receipt Classes

1. Query or enter the receipt class to assign to this receipt method.(As done in step a. above)
2. Enter a unique Name for your receipt method, and then enter how you want this receipt method to be
printed on your statements in the Printed Name field. The default Printed Name is the receipt method
name.
3. Enter the range of Effective Dates for this receipt method.
4. To assign the same transaction number to the debit memo generated when you create a debit memo
reversal, check the Debit Memo Inherit Receipt Numbers box. Do not check this box if you want
Receivables to generate unique debit memo numbers automatically.
5. To ensure that the receipt number is always the same as the transaction number to which it is applied,
check the Receipts Inherit Transaction Numbers box. This option helps you track Automatic
Receipts. Do not check this box if you want Receivables to generate document numbers for Automatic
Receipts assigned to this receipt class and receipt method.

Note: This setting only takes effect, if the Number of Receipts Rule (next step), is set to One per
Invoice. If the Rule is set to create a receipt from multiple invoices, the logic will not pick one of the
invoice numbers to use as the receipt number, and will instead revert to deriving a document number.

6. When defining receipt methods for a receipt class with an Automatic creation method, you can choose
from the following Number of Receipts Rules:
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.
For an explanation of how Maturity Date of an Automatic Receipt is derived, please review Note 271194.1
8. Enter the Automatic Print Program for transmissions using this receipt method.
Receivables provides one standard receipt print program to format the output of your payment selection
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and creation programs when you physically create the receipt document. If you need a different receipt
print program format, you must copy this standard receipt print program, and modify it accordingly.
9. Specify a number of Lead Days. Lead days indicate the number of days before the invoice due date that
an invoice can be selected for application by the Automatic Receipts program using this receipt method.
10. Select a funds capture payment method. A funds capture payment method is a payment medium by
which your customer chooses to remit payment to you. Oracle Payments predefines funds capture
payment methods, but you can define your own.
Select Credit Card for transactions to be paid by credit card.
Select Bank Account Transfer for transactions to be paid by ACH (Automated Clearing House) transfer.
For transactions to be paid by direct debit, create a new receipt method or use an existing receipt
method, and assign or define a new EFT-specific payment method.
11. Select Funds Transfer Error Handling to enable the Automatic correction of funds transfer errors.

When defined correctly, Automatic receipt methods can also enable the automatic correction of
funds transfer errors. This means that Receivables can automatically correct errors encountered
during the credit card authorization or payment capture stage, or during a bank account transfer.

Enable this feature by navigating to the Funds Transfer Error Handling window from the Receipt
Classes window. For each receipt method assigned to an Automatic receipt class, map the error
codes (obtained from your third party credit card processor or financial institution) to potential
corrective actions in Receivables:

Change Instrument: Enables the selection of a new payment instrument and expiration
date. If the transaction's receipt method has a bank account transfer payment method,
then the expiration date is not available for update.
Clear Payment Information: Removes payment information from the transaction. Also
enters a default note on the transaction and raises a business event.
Retry: Transactions with funds transfer errors are not included in Automatic Receipts or
Remittances batches. This option removes the error code from the transaction, which
makes the transaction eligible for inclusion in the next Automatic Receipts or Remittances
batch.
Reverse Receipt: Reverses the receipt, reopens the original transaction, and removes
payment information from the transaction. Also enters a default note on the receipt and
related transaction, and raises a business event.

Map each error code to a corresponding action for each category: Invoice, Receipt, or Refund.
Different actions are available for each category, as illustrated in this table:

Category Available Actions

Invoice, Debit Memo, Change Instrument, Clear


Credit Memo Payment Information, Retry

Receipt Change Instrument, Retry,


Reverse Receipt

Refund Retry, Reverse Receipt

For Example, for the Invoice category you can map a credit card processor's error code of GW-
0062 to an action such as Retry.

If credit card authorization later fails and the credit card processor returns the error code of GW-
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.

You can optionally enter a subsequent action, and indicate how many days should pass before
attempting the next action. For example, you might want to remove the credit card information
after attempting reauthorization for two days. If no subsequent action is specified, then the
number of days indicates how many days should pass before failed transactions appear on the
Correct Funds Transfer Errors page for manual correction.

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Notes:

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

c. Assigning Remittance Banks

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

To assign a remittance bank to a receipt method:

Responsibility: Receivables Manager


Navigation: Setup > Receipts > Receipt Classes

1. Query the receipt class or receipt method to which you want to assign this remittance bank. (as done in
step b. above)
2. Click Bank Accounts.

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3. Select your Operating Unit.


Once you choose an Operating unit, the Receipt Method will be available for Transactions created under
that Operating Unit.
4. Enter general Remittance Bank information, such as Bank, Branch, Account Name, and range of Effective
Dates. You can only select active banks and bank branches.
5. Enter a Minimum Receipt Amount. This is the minimum amount in this currency that must be specified
when you create Automatic receipts with this receipt method.

Note:
You can also define a minimum receipt amount at the customer profile level. Receivables uses the
larger of the two minimum receipt amounts when creating Automatic receipts.

6. If the remittance method for this receipt class is either Factoring or Standard and Factoring, specify the
number of Risk Elimination Days for receipts created with this receipt class (optional). When you factor
receipts, Receivables creates a short term debt to account for your risk in case of customer default. When
you run the Automatic Clearing program to clear or risk eliminate these receipts, the debt is cleared y
days after each receipt's maturity date, where y is the number of risk elimination days that you enter
here.
7. Enter the number of Clearing Days for receipts created with this receipt class (optional). Remitted receipts
are cleared x days after their maturity date, where x is the number of clearing days that you enter here.
Factored receipts are cleared immediately on the remittance date.
8. To be able to override this bank during the remittance process, check the Override Bank box.
9. Primary check box: You can only assign one primary remittance account per currency to your receipt
method. Receivables ensures that at least one remittance account per currency is primary.
10. In the GL Accounts tabbed region, enter GL Account information for this remittance bank.
In the Unearned Discounts and Earned Discounts fields, select an unearned discount activity type and an
earned discount activity type from the lists of values.
If using Oracle Trade Management, then in the Claim Investigations field, select a claim investigation
activity type.

Note:
Once you have saved a Remittance bank associated to a Receipt method, you can no longer make
any changes to the GL accounts. If you have to update a GL account, you will have to end-date the
current Remittance Bank and create a similar one with the necessary GL account corrections.

11. Open the Formatting Programs tabbed region, then enter formatting program information.To run a
printing program when you format remittance batches for receipts remitted to you using this receipt
method, enter a Remittance Print program. When you factor your remittances, Receivables notifies your
print program so that it functions accordingly. You can use this program to create and send remittance
advice to customers to whom you assign this receipt method.
To run a factoring print program when you format your batches of remitted receipts for this receipt
method, enter a Factoring Print program. When you factor your remittances, Receivables notifies your
factoring print program so that it behaves accordingly. You cannot enter a factoring transmission program
for this receipt method if your bank branch account's factoring creation medium is magnetic medium.

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d. Setting Up Document Sequences

Receivables automatically creates categories for each receipt method that you have defined.
Refer to Document Sequences chapter in the Oracle Applications System Administrator's Guide - Configuration
for more detailed information on using and defining document sequences and an explanation of the feature.
You can also review Note 1086565.1, How To Setup Document Sequences In Receivables

Following are the steps to setup the document sequence:

To assign the document sequence:

1. Verify that you already have a document Sequence that you want to use for the Automatic Receipts.

Responsibility: System Administrator


Navigation: Application > Sequential Numbering > Define

2. Review the Document Category created for the Receipt Method


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

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3. Assign a document sequence to the document category


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

Enable Sequential Numbering Profile Option

To implement document sequences, you must first enable the Sequential Numbering profile option. This can be
set at the site and/or application level. To view the current setting of this option, navigate to the Personal Profile
Values window and query the 'Sequential Numbering' profile option.

Valid profile option values are:

Not Used: You can always enter a transaction. The cursor will skip the Document Number field when you
enter transactions. If you set this profile option to this value, you cannot use the Automatic Receipts
feature.
Always Used: You cannot enter a transaction if no sequence exists for it. This value requires that you
enter a document number when entering transactions.
Partially Used; You can enter a transaction even if no sequence exists for it. However, you will be
warned. Use this value, for example, if you want to use sequential numbering for Automatic receipts, but
for nothing else.

Note: The Receivables Automatic Receipts feature uses document sequences when creating receipts.
Consequently, if you are using this feature you must set this profile option to either 'Partially Used'
or 'Always Used'.

e. Define Print programs for your Automatic Receipts.

Use the Format Programs window to define additional receipt or remittance programs that you use to create
receipt documents such as checks or you can define as many receipt programs as you want. Receivables
provides receipt programs that you can use to create and format receipt and remittance documents. If you need
a different Automatic receipt program, you should standard program and modify it. If you create a custom
receipt program, your payment program cannot exceed eight characters.
The default Automatic Receipt print program is called Print Created Receipts (ARXAPFRC.rdf) and is located in
the $AR_TOP/reports directory.
You specify whether each program is used for the creation, printing, or transmission of Automatic receipts or
remittances and provide a short, descriptive name for your receipt programs and the program name that you or
Receivables defines in Oracle Application Object Library. You choose a receipt or remittance program by the
short name when you define your programs for printing and transmitting your receipts and remittances.
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To define an Automatic receipt or remittance program:

Responsibility: Receivables Manager


Navigation: Setup > Receipts > Format Programs

1. Enter the Name for this Automatic receipt or remittance program.


Tip: Since you can use both a format receipts and a transmit receipts program with a single receipt
format, you should give both the same name. You can use the same name even if the program type is
different.
2. Enter the Type of program you are defining. Receivables recognizes the following types of receipt and
remittance programs:

Print Created Receipts: A program you use to create a batch of Automatic receipts.
Transmit Created Receipts: A program you use to format the output of Automatic receipts that you have
created on to a magnetic medium.
Print Bank Remittance: A program you use to print a batch of your remittances.
Transmit Bank Remittance: A program you use to format the output of bank remittance batches that
you have created on to a magnetic medium.
Print Transaction: A program you use to print bills receivable transactions.
3. Enter the Registered Name of this receipt program. This is the name that your System Administrator used
to register the program. If you create a custom receipt program, the name of your payment program
cannot exceed eight characters.

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

f. Oracle Payments Setup For Funds Capture Processing

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

Oracle Payments captures funds for these types of Receivables transactions:

Bank account transfers


Credit card transactions
Bills receivable remittances

For a description of the overall Payments process flow, please review: Funds Capture Flow Overview, Oracle
Payments Implementation Guide.

Setting Up Funds Capture by Oracle Payments

To enable the proper processing of electronic payments, complete the general Payments setup steps. See:
Oracle Payments Implementation Guide.
In addition, be sure to complete the following additional funds capture setup steps in Oracle Payments:

1. Define funds capture payment methods, Oracle Payments Implementation Guide.


The payment method is the payment medium, which your customers use to remit payments.
2. Define funds capture process profiles, Oracle Payments Implementation Guide.
The funds capture process profile include processing rules for funds capture.
3. Set up first party payees, Oracle Payments Implementation Guide.
The first party payee is the company who is deploying Oracle Applications.
4. Set up credit card brands, Oracle Payments Implementation Guide.
Enable the credit card brands that the deploying company, or its organizations, accept for payment.

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You must also complete the following setup steps in Oracle Receivables:

1. Define Automatic receipt methods, and assign a funds capture payment method.
2. Assign default payment details at the customer account or site level.
Navigation: Customers > Standard > Payment Details Tab
When you enter payment details, you create payment instruments (credit cards and customer bank
accounts) for a customer account or site. This customer payment information that you create is actually
stored in Payments for use during funds capture processing.

Note: The payment details you enter at the customer account or site level default to that customer's
transactions. You can also overwrite payment details at the transaction level

Please refer to following Notes for complete setup steps (please review the appropriate article based on your
funds capture payment method):
Note 553614.1 Funds Capture Payments Setup For Credit Card Processing
Note 471418.1 Oracle Payments Setup For Funds Capture Processing

g. Define Remittance Print Programs (optional)

If you skip this step, Oracle Receivables will use the seeded Print program 'Print Created Receipts'
(ARXAPFRC.rdf) during the Format process for Remittance.

Responsibility: Receivables Manager


Navigation: Setup > Receipts > Format Programs

1. Enter the Name for this automatic receipt or remittance program.

Tip: Since you can use both a format receipts and a transmit receipts program with a single receipt
format, you should give both the same name. You can use the same name even if the program type is
different.
2. Enter the Type of program you are defining. Receivables recognizes the following types of receipt and
remittance programs:

Print Created Receipts: A program you use to create a batch of automatic receipts.
Transmit Created Receipts: A program you use to format the output of automatic
receipts that you have created on to a magnetic medium.
Print Bank Remittance: A program you use to print a batch of your remittances.
Transmit Bank Remittance: A program you use to format the output of bank
remittance batches that you have created on to a magnetic medium.
Print Transaction: A program you use to print bills receivable transactions.
3. Enter the Registered Name of this receipt program. This is the name that your System Administrator used
to register the program. If you create a custom receipt program, the name of your payment program
cannot exceed eight characters.

h. Define System Options, Profile Options and Currency Rates

Responsibility: Receivables Manager


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

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If you are going to remit foreign currency transactions, then you need to set the profile option

Responsibility: System Administrator


Navigation: Profile > System

Check that the value for profile option = AR: Default Exchange Rate Type, at the Responsibility level is not User

Also ensure that you have exchange rates set up for the dates you are creating foreign exchange receipts.

Responsibility: Receivables Manager


Navigation: Setup > Financials > Accounting > Currencies > Rates > Daily

4. Simulation of Automatic Receipts Feature

Creating Automatic receipts involves three major steps:

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


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

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

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

Navigation: Customers > Customers

Query up a customer and navigate to the Payment Details tab

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Receipt Methods
You can attach Receipt Methods at Customer and Customer Site level. The Site level will take precedence. You
can assign multiple receipt methods to a customer account as long as the start and end dates of the methods do
not overlap. Only one method can be identified as Primary.

During transaction entry, Oracle Receivables uses the primary receipt method as the default. However, you can
override the receipt method, along with the payment method and payment instrument, at the transaction or
receipt level.
By default when you create Transactions, the receipt method attached at Site level will be defaulted. You can
always override this Receipt Method.

Payment Instruments
This customer payment information that you create is actually stored in Oracle Payments for use during funds
capture processing.

Credit Cards
Bank Account Transfer

Assign bank accounts to customer accounts to allow funds to be automatically transferred from these accounts
to your remittance bank account when using Automatic receipts. Receivables allows multiple customer bank
accounts in different currencies and lets you assign bank accounts to customer addresses.
The primary bank account for a particular currency is used as the default account when you use Automatic
receipts. You can define multiple, non-primary accounts in the same currency, even if the date ranges overlap.

b. Flagging Transactions for Automatic Receipts

Flag the transactions you want to be picked up by the Automatic receipt creation program. To flag a transaction
for Automatic receipt, enter paying customer information and specify a receipt method with an Automatic
Creation Method.

Navigation: Transactions > Transactions

Enter or query the transaction.

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In the Paying Customer region, enter the Name or Number, and the Location.
Enter a receipt method with an associated receipt class that has an Automatic creation method, or select from
the list of values.

Note: The list of values displays only receipt methods assigned to the paying customer.
The selected receipt method automatically defaults the payment method. You need to specify the instrument
number.

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

c. Create Automatic Receipts Batch

Select invoices to include in your Automatic receipt batch by entering a receipt class with an Automatic creation
method and specifying other selection criteria such as transactions numbers, currency, due dates and range of
customer names. The create Automatic receipts program picks up all complete transactions that meet this
criteria and creates receipts to close out these transactions.

In addition to the criteria you specify, Receivables checks the customer's profile to determine whether a
transaction should be included in an Automatic receipt batch. The profile defines whether it should include
invoices that are in dispute. Receivables uses the number of Lead Days that you enter for your receipt method to
determine when an invoice is eligible for the creation of Automatic receipts. The lead days is the number of days
before the invoice due date that this invoice can be selected for Automatic receipt. A batch of Automatic receipts
can only have one receipt method, thus one lead days value. Receivables compares the invoice due date and
lead days with the batch date.

Navigation Receipts > Batches

1. Choose a Batch Type of Automatic.


2. Enter the Currency for this batch. If you enter a foreign currency, enter exchange rate information for this
batch.
3. Enter the Batch date (default is the current date)

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4. If the Receipt Class you entered does not require confirmation as a separate step, enter the GL Date for
this batch. The default GL date is the batch date. The GL date must fall within an open or future
accounting period.
5. Enter a Receipt Class and Receipt Method for this batch, or select from the list of values. Receivables lets
you select active Receipt Classes with a Creation Method of Automatic.
When you use the list of values to select a Receipt Method, Receivables displays the Receipt Class to
which each Receipt Method is assigned and indicates whether receipts using this Receipt Class require
confirmation. When you enter selection criteria for this batch in step 9 (below), Receivables requires that
each transaction selected for payment has the Receipt Method you specify here.
6. In the Media Reference field, enter the tape or floppy disk on to which you are going to create your batch
of Automatic receipts (optional).
7. Choose Create (refer to screenshot below)

8. Enter selection criteria to create Automatic Receipts for specific transactions or customers (optional). For
example, enter the low and high values of the transaction Due Dates, Transaction and Document
Numbers, Customer Names, or Customer Numbers to create Automatic Receipts for those transactions.
Leave a field blank if you do not need to filter on that value.

Note: Enter a range of credit card numbers in the Bank Accounts to create Automatic Receipts for
transactions marked for payment by credit card.

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9. Choose OK. Receivables generates a Batch Name by using the next number after the value in the Last
Number field of the receipt source 'AUTOMATIC RECEIPTS.'
10. Depending upon the function security options set up by your system administrator, you might be able to
create, format, and approve Automatic receipt batches in one step.

Automatic Receipt Batch Statuses


Automatic Receipts Batches have a status to indicate where the batch is in the process flow. Valid statuses are:

Started Creation
Creation Completed
Started Approval
Approval Completed
Started Format
Format Completed.

The process can be divided into 3 parts, which can be performed individually or in one step:

Creation - will Lock the Transactions, which are flagged


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

d. Review the Concurrent Program Output

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

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e. Approving Automatic Receipts

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

Receivables lets you update transactions within a batch before you approve the batch. However, you can only
select a new customer bank or bank account for a transaction in your batch that you have assigned to either this
customer or the primary customers of this customer. In addition, this bank must have a bank account, which is
in the same currency as your batch.

Receivables uses various criteria to determine how to create the approved receipts. The Number of Receipts
Rule on the receipt method associated with the Automatic receipt batch determines the number of receipts to
create from the transactions contained in the batch.

When you remit a batch of Automatic receipts, your remittance bank uses the maturity date that you specify to
determine when to transfer the funds for this receipt from your customer's bank to one of your remittance bank
accounts. To determine the maturity date on the approved receipt, Receivables uses the Receipt Maturity Date
Rule on the receipt method. Options are to use the earliest or the latest due date of all the transactions, which
will be applied, to the receipt.
To approve a batch, its status must be Creation Completed or Started Approval.

Navigation: Receipts > Batches

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1. Query the batch of Automatic receipts to approve.


2. Select the batch. If you are ready to approve the batch, go to step 6.
3. Update receipt batch information as necessary. You can only update the GL date of this batch if the batch
status is Completed Creation and you are creating Confirmed receipts. If no GL date is displayed for this
batch, the receipts within this batch are not confirmed.
4. You cannot add new transactions to this batch, but if you want to deselect or update transactions within
the batch, choose Maintain.
If the batch status is Creation Completed, you can exclude a transaction from this batch by deselecting it.
5. Update transaction information as necessary. For example, Paying Customer, bank Name, and Account
Number.
6. Choose Approve. Receivables displays the Request ID of your concurrent request for approving this batch
of Automatic receipts and assigns a Process Status of Started Approval. Receivables also creates the
Automatic Receipt and Remittances Execution report. This report lists the number and amount of
Automatic receipts approved in this batch.

Note:

In release 12, a new feature was developed that allows you to Resubmit the Approval of a Receipt
batch in case it fails.

For more information, please review Note 1080448.1, NEW FEATURE : Resubmit Approval in
Automatic Receipts Batch

f. Review the Receipt Created

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

Navigation Receipts > Batches

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

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Navigation: Receipts > Receipts

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

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

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g. Formatting Automatic Receipts (Optional)

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

To format a batch of Automatic receipts:

Navigation: Receipts > Batches

1. Query the batch you want to format.


2. Select the batch, then choose Format. Receivables displays the Request ID of your concurrent request
and assigns a Process Status of Started Format.
You can review the results of your formatting request in the Concurrent Requests Summary window.

h. Confirming Automatic Receipts

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

To confirm a batch of Automatic receipts:


Navigation: Receipts > Batches

1. Query the batch to confirm. To confirm a receipt batch, it must have a status of Approved.
2. Choose Confirm. After processing all receipts in the batch, Receivables displays a message indicating how
many receipts were successfully confirmed.

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To confirm Automatic receipts individually:


Navigation: Receipts > Receipts or Receipts Summary

1. Query the receipts to confirm.


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

5. Simulation of Remittance

The following provides a summary of the Remittance process, for more detailed information, please review the About
Remittances in the Oracle Receivables User's Guide.

After the receipts are successfully created as shown above, you can invoke the remittance process. Creating a Remittance
batch is very similar to creating receipts, and involves three steps, which you can run individually or as one step.

Create: Select receipts to include in the Batch.


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

Remittance of receipts is only necessary for receipts whose receipt method is associated to a receipt class that was defined
with the following values for Remittance Method:
Standard: Remit automatic receipts to your bank so that funds can be transferred from you customer's account to yours
on the receipt's maturity date.
Factoring: Remit autoamtic receipts to your bank as collateral for a loan from the bank that is released to you prior to
the maturity date of the receipts. You are borrowing money from the bank in exchange for your receipts.
Standard and Factoring: A combination of the 2 methods above.

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

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

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

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

a. Create, Approve and Format the Remittance Batch

Navigation: Receipts > Remittances

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

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5. To create the remittance batch automatically, using the criteria you provided, choose Auto Create
You can optionally enter additional criteria to further limit the receipts to be picked up for remittance by
this batch.
6. To create the remittance batch manually, choose Manual Create
You are then presented with the Maintain Remittance Receipt Batch form.
At the top right you can enter Selection Criteria
to filter receipts to process. You can enter a range of
Receipt Methods and Maturity Dates, or you can choose from the following options:
Query Batch Only: If you check this box, Receivables will only display receipts that are
associated with this batch. If this is a new batch, this box is not checked by default.
Ignore Override: Check this box to display all receipts matching the selection criteria, regardless
of whether the receipt's remittance bank matches the batch remittance bank. If you only want to
process receipts that have the same remittance bank as specified in the batch, leave this
unchecked.
Select All: Check this box to automatically mark all receipts that the criteria includes in this
remittance batch
Once you've entered your selection criteria, run a query (CTRL-F11, or position the cursor on the field
Receipt Method and invoke menu View > Query by Example > Enter, then Run)
A list of receipts will be presented, if you want to include that receipt in the batch, check the box on the
left.

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

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(When you choose Format, ensure that in the Assigning Remittance Banks section above, you defined
Print programs in the Formatting tabbed region)

IMPORTANT:

In Release 12, the formatting of a Remittance batch is handled within Oracle payments. This requires
additional setup within Oracle Payments. Please make sure to review Note 821660.1, R12:
Troubleshooting Issues with European EFT Create Settlement Batches.

8. Once you click on Ok, a concurrent request will be submitted.

b. Review the Concurrent processes spawned

Navigation: View > Requests


Click on Find

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

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Automatic Receipts/Remittances Execution Report

and Print Remittances

c. Query the Remittance Batch

Navigation: Receipts > Remittances

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

Remittance batches, can have the following statuses:

Started Creation
Creation Completed
Started Approval
Approval Completed
Started Format
Format Completed

6. Scheduling Automatic Receipts and Remittances

You can schedule running the Automatic receipts and remittance process using

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Responsibility: Receivables Manager


Navigation: Receipts > Schedule Automatic Receipts and Remittances

When you invoke this menu option, you are taken to the Standard Request Submission form, as if you were to run a report.
There are 2 options available:

1. Automatic Receipts Creation Program (API)


2. Automatic Remittances Creation Program (API)

Each option presents a list of parameters which you fill in to provide information on the criteria you would like the process to
run on. When you click Ok, a concurrent process will be spawned and will run in the background.

You can check for the status of the request by using the View > Requests menu.

7. Accounting for Automatic Receipts

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

Action Accounting Entries

Create Invoices DR Accounts Receivables


CR Revenue

Approve Automatic Receipts DR Confirmation


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

Approve Automatic Receipts Accounting Entries won't be created unless you


(For Automatic receipts requiring Confirm
Confirmation.)

Confirm Automatic Receipts DR Confirmation


(For Automatic receipts requiring CR Accounts Receivables
Confirmation)

8. Important Reports

Automatic Receipts and Remittances Execution report


Use this report to review the number and amount of Automatic receipts and remittances you have created, approved, or
formatted. Receivables automatically generates this report when you submit a batch of Automatic receipts or remittances to be
created, approved, or formatted.
For Automatic receipts, the report prints the number of receipts processed and their amounts for each customer. This report
also prints a summary by currency at the end of the report.

For remittances, this report prints the number and amount of remittances for each remittance bank account and a summary
by remittance bank (by currency) at the end of the report.
Receivables also prints any exceptions that occurred while processing Automatic receipts. Typical exceptions might be that
minimum receipt amounts have not been satisfied at the customer or bank level, or that the primary site has not been defined
for that customer and your system option requires one.

Transactions Awaiting Consolidation


Use this report to review a list of transactions (debit memos, credit memos, on-account credits, invoices) that have been
designated for Automatic receipt application (i.e., that have been assigned an Automatic receipt method). You can also review
transactions that have been designated to be exchanged for bills receivable (i.e., that have been assigned a bill receivable
receipt method). You can review all transactions that are in different stages of the creation process. These stages include
creating, approving, and formatting. Receivables does not display transactions that have been confirmed, or approved for
Automatic receipt with a receipt class of Require Confirmation set to No, in this report.
Receivables will also display transactions that started but did not complete, the creation, approval, or formatting process in
this report.
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Automatic Receipts Awaiting Confirmation Report


Use this report to review all Automatic receipts awaiting confirmation. Before a receipt can be included in this report it must be
formatted and have been assigned a receipt method with a receipt class of Require Confirmation set to Yes. Receipts that have
been confirmed, or do not require confirmation, or have been approved but not formatted will not be displayed in this report.

Receipts Awaiting Remittance Report


Use this report to review a list of Automatic receipts that are awaiting remittance to your bank. Before an Automatic receipt
can be included in this report, it must be confirmed or created as confirmed, and the receipt class assigned to it must have
Require Remittance set to Yes. Before a manual receipt can be included in this report, the receipt class assigned to it must
have Require Remittance set to Yes. You can review all receipts waiting to be sent to your remittance bank or receipts that are
in different stages of the remittance process.
Once a receipt has been approved for remittance it will no longer be displayed in this report.
Receipts that have started, but not yet completed, the creation or approval process also appear in this report.

Automatic Receipt Batch Management Report


Use this report to review the status of your Automatic Receipt Batches. Receivables sorts the batches by currency and by
status within each currency. This report also provides you with a total for each status within each currency and a total of all
statuses for each currency.
Receivables does not display Automatic Receipt Batches that have been formatted or approved for Automatic receipt with a
receipt class of Require Confirmation set to No in this report.
On occasion, you will start an Automatic receipt creation, approval, or formatting process and it will not complete. This could
be, for example, because your system went down while the process was running. To help you manage such batches,
Receivables will also display Automatic Receipt Batches, which have started the creation, approval, or formatting process in
this report.

9. Troubleshooting and Known Issues

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

10. Facts and FAQs

This section covers some basic details about using Automatic Receipts:

How can I verify which Transactions will be picked by the Automatic Receipts batch?
Run the Transactions Awaiting Consolidation report to review which invoices will be picked up by the Automatic Receipt
program

What should be value of lead days in Receipts Class for Automatic receipts?
Set the lead days to a high value for Automatic receipts that require confirmation. This will allow the Automatic Receipts
process to pick up the transaction to create a receipt, long before the receipt maturity date, giving you the additional time
required to send the receipts to your customer and for the customer to confirm them. Receipts that will be factored should
also have the lead days set to a high number as they are often remitted long before their maturity date.

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

What is relevance of Receipts per Commit and Invoices per Commit System Options?
Invoices per Commit is the number of invoices processed by Automatic Receipt program before saving and Receipts per
Commit is number of receipts processed by Automatic Receipt program.

Set the Receipts per Commit and Invoices per Commit system options to a large number to avoid intermediate saves in the
program. You should use numbers that are large enough to handle your largest Automatic receipt and remittance batches. To
help determine the numbers to use, look at the end of the log file for your largest Automatic Receipt Creation Batch; this will
give you the number of receipts marked for this batch. Assign this number to Auto Receipts Invoices per Commit. Look at the
log file for your largest Remittance Creation batch to derive the Auto Receipts Receipts per Commit number. You should only
reduce these numbers if you run out of rollback segments

Why is GL Date not enterable in Automatic Receipts new batch?


Receivables does not let you enter a GL date for a new batch if the receipt class requires confirmation as a separate step. This
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is because Receivables does not create accounting entries until the receipts are confirmed.

Why is Automatic Receipts program not creating Receipts?


Receivables validates that the receipt amount is more than or equal to the Minimum Receipt Amount that you specified for
your remittance bank and customer profile class. You can assign minimum receipt amounts for your remittance bank accounts
in the Receipt Classes window and for your Customers in the Customer Profile Classes window or Customer set of pages. If the
total of the transactions does not match the larger of the two minimum receipt amounts, no receipts will be created. These
transactions will appear in the Exception section of the Create Automatic Receipt Execution report.

How does Automatic Receipts calculate minimum Receipt Amount?


Oracle Receivables does not generate Automatic receipts for a currency that is less than the specified minimum amount. You
can define a minimum receipt amount for a receipt method, and at Customers in the Customer Profile Classes window (either
at Customer Account, or Site Level). Receivables will use the larger of the two minimum receipt amounts when creating
Automatic receipts.

Will Automatic Receipts select Transactions, which are disputed?


You need to check the AutoReceipts Include Disputed Items check box to include debit items that have been placed in dispute
when you create Automatic receipts for customers, in the Customer Profile Classes window (either at Customer Account, or
Site Level).

Can we delete a batch of Automatic Receipts?


You can delete a batch of Automatic Receipts only if the batch status is Started Creation or Creation Completed. When you
delete a batch, all transactions within the batch become available for selection the next time you submit the Automatic Receipt
creation program.
To delete a batch of Automatic receipts:

1. Navigation: Receipts > Batches or Batches Summary.


2. Query the batch to delete. To delete a batch of Automatic receipts, the batch status must be either Started Creation or
Creation Completed.
3. Choose Delete Record from the Edit menu, then choose OK to acknowledge the message.

Can I enter Automatic Receipts manually?


Yes, If your customer remits a manual document for a transaction that was to be paid for by Automatic receipt, you can
manually enter it in the Receipts window.
Receivables will treat this receipt like any other Automatic receipt. When you remit the receipt to the bank, the funds will be
transferred from the customer's bank account to your bank account.
To manually enter Automatic receipts:

1. Navigation: Receipts > Receipts


2. Choose a Receipt Method assigned to a receipt class that has a Creation Method of Automatic and a Remittance Method
of Standard, Factoring, or Standard and Factoring.
3. Specify the receipt maturity date. The default is the receipt deposit date, but you can change it.
4. Choose a Receipt Type of Standard.
5. Enter receipt information.
6. In the Payment Details region, select a payment instrument.
7. Once you manually create the receipt that was originally to be created automatically, you can apply it to the invoice is
was meant to pay.

Can I create cross currency receipt applications using Automatic Receipts?


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

What is significance of profile option AR: Default Exchange Rate Type in Automatic Receipts?
'AR: Default Exchange Rate Type' Profile Option determines the default exchange rate to use when converting foreign
currency transactions to your functional currency. If using the Automatic Receipts and Remittances Creation programs to pay
foreign currency transactions, then set this profile option to a value other than User, and ensure that you have defined
Exchange Rates for the Currency and Dates Automatic Receipts will require.

Can I schedule the Automatic Receipts program?


Yes, you can use Automatic Receipts Creation program to schedule the Automatic Receipts program to run at predetermined
times.
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What are important sysadmin functions, which can be used to control user behavior?
The following functions described in the table below can be excluded in the Receipts Workbench.

Function Name Restriction(s)


Automatic Receipts: View View Automatic receipts
Automatic Receipts: Approve Approve Automatic receipts
Automatic Receipts: Confirm Confirm Automatic receipts
Automatic Receipts: Create Create Automatic receipts
Automatic Receipts: Format Format Automatic receipts
Automatic Receipts: Maintain Maintain Automatic receipts

How is the Miscellaneous Receivables system option Minimum Refund Amount related to Automatic Receipts?
Receivables system option Minimum Refund Amount field is used for automated receipt handling only. Receivables provides
you with an automated refunds process for your Transactions, from the initial creation of a credit memo to the refund
disbursement, without any user intervention required. AutoInvoice will automatically create refunds for credit memos that are
imported against paid invoices, if the credit request amounts are equal to or greater than the minimum specified here.
AutoInvoice will place on account any credit amount that is less than the specified minimum.

Can I reverse an Automatic receipt?


You can reverse an Automatic receipt only if its status is Approved.

Important point to remember when using both AutoLockbox and Automatic Receipts
If you are using the Automatic receipts feature, AutoLockbox ignores all transactions that are earmarked for Automatic receipt
(i.e. transactions assigned to a receipt class with an Automatic Creation Method).

Discounts and Automatic Receipts


Generally, you would not use discounts with Automatic receipts. This is because the maturity date for the receipt would be
predetermined between you and the customer. The money would be automatically taken from the customers account on that
date, and generally, not before.

However, Receivables will calculate earned discounts for Automatic receipts that do not require confirmation if you set up your
payment terms such that the due date of the transaction would be the same as the discount date. For example, if the payment
schedule for your payment terms specifies that your transaction is due 30 days after the transaction date, then enter a percent
discount for 30 days after the transaction date for that payment schedule line. This lets Receivables always take the percent
discount you specify.

Receivables does not allow discounts to be calculated for Automatic receipts that require confirmation. However, you could
define a receivables activity type of 'Discount' and create an adjustment in the Applications window to adjust the balance
down on the invoice. Then, charge the adjusted amount to the discount account defined for the discount receivables type.

Start and End Date Ranges


Many of the components that are used in Automatic receipts have start and end date ranges, such as receipt methods,
remittance bank accounts, and customer bank accounts. When you set up your Receivables to handle Automatic receipts, you
must be careful when assigning date ranges. Receivables uses date ranges to determine which values will display in your list
of values. For example, if you assign a receipt method with a date range of 01-SEP-08 to 30-SEP-08 to one of your customers,
you will not be able to choose this receipt method if you enter an invoice for this customer on 01-OCT-08.

Remittance Bank Information


Receivables will generally use the primary remittance bank account associated with the receipt method and currency of your
invoice when determining the remittance bank account for an Automatic receipt. However, if it finds that a non-primary
account for the same currency is the same as the customer bank account, Receivables will use this account. This lets you
avoid bank charges and allows funds to be transferred more quickly.
You can update remittance bank information for an Automatic receipt if the receipt status is Confirmed and the bank's
Unapplied and On Account GL accounts are the same. To modify bank information, query the receipt in the Receipts window.

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Associating Billing Sites with Automatic Receipts


The system option Require Billing Location for Receipt determines whether Receivables creates an Automatic receipt for a
customer who has no primary bill-to site. If the system option is set to No and your customer does not have a primary bill-to
site defined, Receivables will create your Automatic receipt without assigning a bill-to site. However, if the system option is set
to Yes and your customer does not have a primary bill-to site, Receivables will not create your Automatic receipt. The invoices
associated with the receipts will display in the Exceptions section of the Automatic Receipt Execution report

Paying Related Invoices


When Receivables selects invoices for Automatic receipt, it searches for invoices on which the paying customer matches the
customer you have specified in your selection criteria, rather than the customer who is billed for the invoice. The paying
customer is the customer associated with the customer bank account assigned to your invoice. This could be different from the
billing customer if, for example, you wanted a primary customer to pay for related invoices.
If you want one customer to be able to pay for an invoice billed to another customer, you must either have the system option
Allow Payment of Unrelated Invoices set to Yes, or define a relationship between the two customers. Then, when entering an
invoice, you must enter the bill-to customer's name and location and the paying customer's bank information.

Numbering Automatic Receipts


To help you track receipts that the Automatic Receipts program creates, you can ensure that the Automatic receipt's
transaction number is the same as the number of the transaction to which it is applied. To do this, set the Receipt Inherit
Invoice Number option to Yes when defining the receipt class for your Automatic receipt.
If the Receipt Inherit Invoice Number option is set to No, the Automatic Receipts program automatically generates a unique
Automatic receipt number. The Receipt Inherit Invoice Number option affects only receipts created by the Automatic Receipts
program. When creating a manual Automatic receipt in the Receipts window, you must enter a receipt number.

When defining a Receipt Class with Remittance Method = 'No Remittance', why is the Remittance GL account
still required when defining the banks associated to the Receipt Methods using this Receipt Class?
This is standard functionality: The remittance account is required if the Clearance Method <> "Directly". The remittance
account is used to prepare the clearing of the receipt used to materialize the factor payment. It is supposed to store the GL
account called Cash Pending for Reconciliation when the clearance method is not "Directly".

REFERENCES

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