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:

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.
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.

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:
o 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).
o 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.
o Standard and Factoring: Choose this method when
the receipts using this method can be remitted either as
Standard or factored.
o 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:
o The Create Remittances window does not let you create
remittances for unconfirmed receipts that were created
using a receipt method with this receipt class.
o 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:
o One per Customer: Create one payment for each
customer.
o 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.
o One per Invoice: Create one payment for each invoice.
o One per Site: Create one payment for each site.
o 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:

o Earliest: if you want the receipt maturity date to be the
earliest due date of all of the invoices that your receipt
covers.
o 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 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, 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.
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.
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.

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

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.
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.
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:
o Print Created Receipts: A program you use to create a
batch of automatic receipts.
o Transmit Created Receipts: A program you use to format
the output of automatic
o receipts that you have created on to a magnetic
medium.
o Print Bank Remittance: A program you use to print a
batch of your remittances.
o Transmit Bank Remittance: A program you use to format
the output of bank
o remittance batches that you have created on to a
magnetic medium.
o 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, nonprimary 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.
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)
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.

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

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.

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.
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)

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.
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:
o 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.
o 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.

o 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

(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:

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
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

(For Automatic receipts not requiring Confirmation.)

DR Confirmation
CR Accounts Receivables

Approve Automatic Receipts

(For Automatic receipts requiring Confirmation.)

Accounting Entries won't be cre

Confirm Automatic Receipts

(For Automatic receipts requiring Confirmation)

DR Confirmation
CR Accounts Receivables

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.
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 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.
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.
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