Automatic Clearing for Receipts
Submit the Automatic Clearing program to automatically clear remitted receipts and clear or risk eliminate factored receipts in Receivables. Clearing remitted receipts credits your cash account and debits your remittance or factoring account. Clearing factored receipts creates a short term debt to account for your risk in case of customer default. The debt will be cleared by the Automatic Clearing program y days after each receipt's maturity date, where y is the number of risk elimination days defined for the payment method/bank account combination assigned to the receipt.
Remitted receipts are cleared x days after their maturity date, where x is the number of clearing days defined for the payment method/bank account combination on each receipt. Factored receipts are cleared immediately on the remittance date. To eliminate risk created by clearing factored receipts, set the Eliminate Bank Risk parameter to Yes when you run the Automatic Clearing program. See: Factoring Remittances.
If you do not want to recognize the cash until it is deposited into your bank account, you can reconcile the bank statement with your accounts receivable system. This step is optional for both automatic and manual receipts.
For receipts to be cleared by the Automatic Clearing program, they must belong to a receipt class whose Require Clearance Method is set to Automatic.
Suggestion: You can also use Oracle Cash Management to clear receipts. See: Using Oracle Cash Management to Clear Receipts.
Prerequisites
To run the automatic clearing program:
1. Navigate to either the Submit Requests or the Clear/Risk Eliminate window.
2. Enter a request Name of Automatic Clearing for Receipts.
3. Enter parameters for submitting the Automatic Clearing program. To clear receipts whose remittance method is Standard, enter Yes in the Clear Remitted Receipts field. To clear receipts whose remittance method is Factored, enter Yes in the Clear Discounted Receipts field. To eliminate risk for cleared and factored receipts, enter Yes in the Eliminate Bank Risk field.
4. Enter parameters to select receipts to be cleared or risk eliminated. For example, enter a Payment Method, Remittance Bank Account or Remittance Batch Name, or enter a range of Receipt Numbers and Customer Names to select only those receipts for automatic clearing. Leave a field blank if you do not want to limit the search to receipts matching that criteria.
6. To run Automatic Clearing more than once, enter Run Options. Enter the time and date To Start and to End Resubmission of the program.
7. To save the output of the Automatic Clearing program to a file, check the Save Output check box.
See Also
Automatic Receipts and Remittances
About Remittances
Automatic Receipts
Using Oracle Cash Management to Clear Receipts
Bank Risk Report
Define receipt classes with Require Clearance Method set to Automatic