Thursday, 24 January 2013

Automatic Receipts and Remittance In R12

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.

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

2. Automatic Receipts and Remittance Process.

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


  1.  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 p
  2. A transactions is flagged for Automatic Receipts creation by assigning a receipt method with an associated receipt class that has an Automatic creation method.
  3. aper or magnetic media.
  4. 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.
  5. 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.
  6. 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:
StepDescription
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


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.

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



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

If you check this box, then:

·         The Create 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.

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.
  1. 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.
  2. 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.

  3. Enter the Automatic Print Program for transmissions using this receipt method.
    Receivables provides one standard receipt print program to format the output of your payment selection and creation programs when you physically create the receipt document. If you need a different receipt print program format, you must copy this standard receipt print program, and modify it accordingly.
  4. 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.
  5. 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.
  6. Select Funds Transfer Error Handling to enable the Automatic correction of funds transfer errors.
When defined correctly, Automatic receipt methods can also enable the automatic correction of funds transfer errors. This means that Receivables can automatically correct errors encountered during the credit card authorization or payment capture stage, or during a bank account transfer.
Enable this feature by navigating to the Funds Transfer Error Handling window from the Receipt Classes window. For each receipt method assigned to an Automatic receipt class, map the error codes (obtained from your third party credit card processor or financial institution) to potential corrective actions in Receivables:
  • Change Instrument: Enables the selection of a new payment instrument and expiration date. If the transaction's receipt method has a bank account transfer payment method, then the expiration date is not available for update.
  • Clear Payment Information: Removes payment information from the transaction. Also enters a default note on the transaction and raises a business event.
  • Retry: Transactions with funds transfer errors are not included in Automatic Receipts or Remittances batches. This option removes the error code from the transaction, which makes the transaction eligible for inclusion in the next Automatic Receipts or Remittances batch.
  • Reverse Receipt: Reverses the receipt, reopens the original transaction, and removes payment information from the transaction. Also enters a default note on the receipt and related transaction, and raises a business event.
Map each error code to a corresponding action for each category: Invoice, Receipt, or Refund. Different actions are available for each category, as illustrated in this table:
Category Available Actions
Invoice, Debit Memo, Credit Memo Change Instrument, Clear Payment Information, Retry
Receipt Change Instrument, Retry, Reverse Receipt
Refund Retry, Reverse Receipt
For Example, for the Invoice category you can map a credit card processor's error code of 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.



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.

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




  •   Query the receipt class or receipt method to which you want to assign this remittance bank. (as done in step b. above)
  •  Click Bank Accounts.
  •  Select your Operating Unit.
    Once you choose an Operating unit, the Receipt Method will be available for Transactions created under that Operating Unit.
  •  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.
  •  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.
  •  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.
  •  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.  
  •  To be able to override this bank during the remittance process, check the Override Bank box. 
  •  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
  • 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.
  • 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.


 


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.

Following are the steps to setup the document sequence:

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

    Responsibility: System Administrator
    Navigation: Application > Sequential Numbering > Define 
  2. Review the Document Category created for the Receipt Method
    Responsibility: System Administrator
    Navigation: Application > Sequential Numbering > Categories

  3. Assign a document sequence to the document category
    Responsibility: System Administrator
    Navigation: Application > Sequential Numbering > Assign

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

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



e.Define Print programs for your Automatic Receipts.


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

To define an Automatic receipt or remittance program:

Responsibility: Receivables Manager
Navigation: Setup > Receipts > Format Programs

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

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

f.Oracle Payments Setup For Funds Capture Processing

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

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

 


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

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

Responsibility: System Administrator
Navigation: Profile > System

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

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

Responsibility: Receivables Manager
Navigation: Setup > Financials > Accounting > Currencies > Rates > Daily

 

4.Simulation of Automatic Receipts Feature

Creating Automatic receipts involves three major steps:
  • Create: Select the invoices to include in your Automatic receipts.
  • Approve: Update, delete, and approve the receipts that you have selected.
  • Format: Format your Automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. This step is optional, as it depends upon the type of Automatic receipt you create.
You can perform these steps at the same time or separately.

Here we are assuming that you have defined remittance bank accounts in either the currency of the transaction or with the Multiple Currencies Allowed check box selected.

Please refer: Bank Account Model Overview, Oracle Cash Management User Guide.

   a. Assign default payment details at the customer account or site level

Navigation: Customers > Customers

Query up a customer and navigate to the Payment Details tab


 

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

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

Payment Instruments
This customer payment information that you create is actually stored in Oracle Payments for use during funds capture processing.
  • Credit Cards
  • Bank Account Transfer
Assign bank accounts to customer accounts to allow funds to be automatically transferred from these accounts to your remittance bank account when using Automatic receipts. Receivables allows multiple customer bank accounts in different currencies and lets you assign bank accounts to customer addresses.
The primary bank account for a particular currency is used as the default account when you use Automatic receipts. You can define multiple, non-primary accounts in the same currency, even if the date ranges overlap.

   b. Flagging Transactions for Automatic Receipts

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

Navigation: Transactions > Transactions

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



 


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

   c. Create Automatic Receipts Batch

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

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

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

 

 

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

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

 

 


9.      Choose OK. Receivables generates a Batch Name by using the next number after the value in the Last Number field of the receipt source 'AUTOMATIC RECEIPTS.'
10.  Depending upon the function security options set up by your system administrator, you might be able to create, format, and approve Automatic receipt batches in one step.
Automatic Receipt Batch Statuses
Automatic Receipts Batches have a status to indicate where the batch is in the process flow. Valid statuses are:
  • Started Creation
  • Creation Completed
  • Started Approval
  • Approval Completed
  • Started Format
  • Format Completed.
The process can be divided into 3 parts, which can be performed individually or in one step:
  • Creation - will Lock the Transactions, which are flagged
  • Approval - will create Automatic Receipts
  • Formatting (optional) - will print the Receipts into prescribed format

   d. Review the Concurrent Program Output

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

e.Approving Automatic Receipts

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

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

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

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

Navigation: Receipts > Batches

 

1.      Query the batch of Automatic receipts to approve.
2.      Select the batch. If you are ready to approve the batch, go to step 6.
3.      Update receipt batch information as necessary. You can only update the GL date of this batch if the batch status is Completed Creation and you are creating Confirmed receipts. If no GL date is displayed for this batch, the receipts within this batch are not confirmed.
4.      You cannot add new transactions to this batch, but if you want to deselect or update transactions within the batch, choose Maintain.
If the batch status is Creation Completed, you can exclude a transaction from this batch by deselecting it.
5.      Update transaction information as necessary. For example, Paying Customer, bank Name, and Account Number. 


6.  Choose Approve. Receivables displays the Request ID of your concurrent request for approving this batch of Automatic receipts and assigns a Process Status of Started Approval. Receivables also creates the Automatic Receipt and Remittances Execution report. This report lists the number and amount of Automatic receipts approved in this batch.










 





 

 


3 comments:

  1. Hi Raju,
    Through automatic receipt/remittance creation process, is there any way that we could clear all receipts by eliminating Remittance process? In R12, I am not able to set up the Receipt Class with remittance method as 'No Remittance' and Clearance Method as 'Direclty' when Creation Method as 'Automatic'. Please suggest.

    Thank You
    Jittu

    ReplyDelete
  2. A complete information provided here. Its a good Remittance process in which Automatic Receipts feature allows you to automatically generate receipts for customers with whom you have predefined agreements.
    automated-batch-eligibility-processing

    ReplyDelete
  3. is there an option to stop the system from processing errored transactions? meaning if an automatic receipt errors out can we stop it from retrying to create the receipt?

    ReplyDelete