Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction's line, tax, freight, and late charges.
Receivables provides the following application rules:
Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then late charges.
Line and Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to late charges.
Prorate All: Apply a proportionate amount to the line, tax, freight, and late charges.
Note: In an application rule set, each line type (line, freight, and tax) must appear once and only once.
For more information, see: Receivables Application Rule Sets, Oracle Receivables User Guide.
Enter a Name and Description for this rule set.
Enter the Sequence number for this application rule. Receivables applies payments in this sequence, beginning with the lowest sequence number.
Note: You cannot enter a sequence number for the Overapplication rule. By default, this rule is last in the sequence for each application rule set.
Enter an application Rule. Each rule will correspond to a line type (for example, lines, freight, or charges), so you should give your rule a descriptive name. Each rule set must have at least one application rule.
Important: Receivables automatically assigns the Overapplication rule to each application rule set. You cannot delete this rule. The Overapplication rule applies any remaining amount after the balance due for each item has been reduced to zero. If the transaction type of the debit item allows overapplication, this rule prorates the remaining amount between each line and its associated tax amount, making these amounts negative. If the transaction type does not allow overapplication, you can either place the remaining amount on-account or leave it 'Unapplied'.
Enter Rule Details for this application rule. This section indicates the type of charges and the tax handling for this rule. Choose a Type of Line, Freight, or Charges. You need to enter at least one type for your rule set.
If you chose a Type of 'Line', choose a Tax Treatment. Choose one of the following:
Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated tax.
Note: The default Tax Treatment for your Freight and Charges types is None. This option ignores tax, since you cannot tax freight and charges in Receivables. You cannot choose None for your Line type.
To automatically adjust this line type to account for any rounding corrections within this rule set, check the Rounding Correction box. When an amount is prorated among several line types, Receivables must use one of the line types to account for the rounding adjustment. Each application rule set must have one and only one rounding correction line type.
Tip: Assign the Rounding Correction to the line type that is usually the largest portion of your invoices. By doing this, the rounding correction will have the least effect on the overall remaining and applied amounts for this line type.
Repeat the previous steps for each rule you want to add to this rule set.
When you are satisfied with this rule set definition, check the Freeze box. Receivables verifies that your application rule set is defined properly and that it does not violate any basic application guidelines. If this rule set fails validation, Receivables displays an error message. In this case, modify your rule set definition, then check the Freeze box again to revalidate it.
Important: A rule set must be 'frozen' before you can assign it to a transaction type or use it as your default rule it in the System Options window. Additionally, after you freeze an application rule set, you cannot update or delete it.
Related Topics
Receivables Application Rule Sets, Oracle Receivables User Guide
Defining Receivables System Options
Define AutoCash Rule Sets to determine the sequence of AutoCash Rules that Post QuickCash uses to update your customer's account balances. You specify the sequence and the AutoCash Rules for each AutoCash Rule Set. The AutoCash Rule Sets you define display as list of values choices in the Customers, Customer Addresses, Customer Profile Classes, and the System Options windows. Post QuickCash first checks the customer site, then the customer profile class, and finally at the system options level to determine the AutoCash Rule Set to use.
Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customer's credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customer's credit profile to apply the receipt. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules apply, Receivables places the remaining amount Unapplied or On-Account, depending on how you set the Remaining Remittance Amount option for the rule set.
If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except 'Apply to the Oldest Invoice First'). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence. For more information, see: Matching Using Bank Charges and Tolerance Limit., Oracle Receivables User Guide
You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.
Prerequisites
Enter the Name of this AutoCash rule set.
Enter a description for this AutoCash rule set (optional).
Enter the type of Discount you want to automatically give to your customer for this AutoCash Rule Set. Choose one of the following Discount options:
Earned Only: Your customer can take earned discounts according to the receipt terms of sale. You negotiate earned discount percentages when you define specific receipt terms. You can enter this option if Allow Unearned Discounts is set to Yes in the System Options window. In this case, Receivables only allows earned discounts for this AutoCash Rule Set.
Earned and Unearned: Your customer can take both earned and unearned discounts. An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No.
None: Your customer cannot take discounts (this is the default).
To include transactions in dispute when calculating your customer's open balance, check the Items in Dispute check box.
To include late charges when calculating your customer's open balance, check the Finance Charges check box.
Define the Automatic Matching Rule for this AutoCash Rule set.
If this rule set will include the Apply to the Oldest Invoice First rule, choose how you want to apply any Remaining Remittance Amount. Receivables uses this value to determine how to enter the remaining amount of the receipt if none of the AutoCash Rules within this rule set apply. Choose 'Unapplied' to mark remaining receipt amounts as Unapplied. Choose 'On-Account' to place remaining receipt amounts On-Account.
To automatically apply partial receipts when using the Apply to the Oldest Invoice First rule, check the Apply Partial Receipts check box. A partial receipt is one in which the receipt minus the applicable discount does not close the debit item to which this receipt is applied.
The applicable discount that Receivables uses for this rule depends upon the value you entered in the Discounts field for this AutoCash Rule Set. If you exclude late charges (by setting Finance Charges to No) and the amount of your receipt is equal to the amount of the debit item to which you are applying this receipt minus the late charges, Receivables defines this receipt as a partial receipt. In this case, Receivables does not close the debit item because the late charges for this debit item are still outstanding.
If Apply Partial Receipts is set to No, this AutoCash Rule Set will not apply partial receipts and will either mark the remaining receipt amount 'Unapplied' or place it on-account, depending on the value you entered in the Remaining Remittance Amount field (see step 8).
Enter a Sequence number to specify the order of each rule in this AutoCash Rule Set (optional). Receivables uses the rule assigned to sequence 1, then sequence 2, and so on when applying receipts using this AutoCash Rule Set.
Enter one or more AutoCash Rules for this AutoCash rule set. Choose from the following AutoCash rules:
Apply to the Oldest Invoice First: This rule matches receipts to debit and credit items starting with the oldest item first. This rule uses the transaction due date when determining which transaction to apply to first. This rule uses the values you specified for this AutoCash Rule Set's open balance calculation to determine your customer's oldest outstanding debit item.
Post QuickCash uses the next rule in the set if any of the following are true:
all of your debit and credit items are closed
the entire receipt amount is applied
it encounters a partial receipt application and Allow Partial Receipts is set to No for this AutoCash Rule Set
the next oldest debit item includes late charges and Finance Charges is set to No for this AutoCash Rule Set
This rule marks any remaining receipt amount 'Unapplied' or places it on-account, depending on the value you entered in the Remaining Remittance Amount field for this AutoCash Rule set (see step 8).
Clear the Account: Post QuickCash uses this rule only if your customer's account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer's account balance, Post QuickCash uses the next rule in the set. This rule calculates your customer's account balance by using the values you specified for this AutoCash Rule Set's open balance calculation and the number of Discount Grace Days in this customer's profile class. This rule also includes all of this customer's debit and credit items when calculating their account balance. This rule ignores the value of the Apply Partial Receipts option.
This AutoCash Rule uses the following equation to calculate the open balance for each debit item:
Open Balance = Original Balance + Late Charges - Discount
Receivables then adds the balance for each debit item to determine the customer's total account balance. The 'Clear the Account' rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an Unapplied or On-Account receipt to a debit item.
Note: The discount amount for each item depends upon the payment terms of the item and the value of the Discounts field for this AutoCash Rule Set. The number of Discount Grace Days in this customer's credit profile, along with the payment terms assigned to their outstanding invoices, determine the actual due dates of each debit item.
Clear Past Due Invoices: This rule is similar to the 'Clear the Account' rule because it applies the receipt to your customer's debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due. A debit item is considered past due if its due date is earlier than the receipt deposit date. This rule considers credit items (i.e. any pre-existing, unapplied receipt or credit memo) to be past due if the deposit date of the receipt is either the same as or later than the deposit date of this pre-existing receipt or credit memo. In this case, this rule uses a pre-existing receipt or credit memo before the current receipt for your AutoCash receipt applications.
If this AutoCash Rule Set's open balance calculation does not include late charges or disputed items, and this customer has past due items that are in dispute or items with balances that include late charges, this rule will not close these items. This rule ignores the value of the Apply Partial Receipts option.
Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the 'Clear Past Due Invoices' rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date. When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer's credit memos and past due invoices.
A debit item is considered past due if the invoice due date is earlier than the deposit date of the receipt you are applying. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer's account balance. For example, if you are applying a receipt with a receipt date of 10-JAN-93, credit memos that have a transaction date (credit memo date) on or earlier than 10-JAN-93 will be included. Credit memos do not have payment terms, so they are included in each group.
Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or chargeback that has a remaining amount due exactly equal to the receipt amount. This rule uses the values that you enter for this AutoCash Rule Set's open balance calculation to determine the remaining amount due of this customer's debit items. For example, if Finance Charges is No for this rule set and the amount of this receipt is equal to the amount due for a debit item minus its late charges, this rule applies the receipt to that debit item. If this rule cannot find a debit item that matches the receipt amount, Post QuickCash looks at the next rule in the set. This rule ignores the value of the Apply Partial Receipts option.
Related Topics
AutoCash, Oracle Receivables User Guide
Post QuickCash, Oracle Receivables User Guide
Assigning Profile Classes to Customers
Discounts, Oracle Receivables User Guide
Placing an Item in Dispute, Oracle Receivables User Guide
Calculating Late Charges, Oracle Receivables User Guide
AutoCash Rules Report, Oracle Receivables User Guide
Use the Format Programs window to define additional receipt or remittance format programs that you use to create receipt documents such as checks or bills receivable. You can define as many receipt programs as you want. Receivables provides sample receipt programs that you can use to create and format receipt and remittance documents. If you need a different automatic receipt program, you should copy the standard program and modify it. If you create a custom receipt program, the name of 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.
Note: If you have installed European localizations, the Format Programs window displays any country-specific receipt and remittance format programs for your country in addition to the standard Oracle Receivables programs. For more information about the country-specific programs, please refer to the Oracle Financials user's guide for your country.
Prerequisites
Create a receipt program using Oracle Reports
Register your program with Receivables
Note: Only your System Administrator can register a program. For more information, please refer to Oracle Applications System Administrator's Guide - Configuration.
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.
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.
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.
Related Topics
Automatic Receipts, Oracle Receivables User Guide
Automatic Receipts Awaiting Confirmation Report, Oracle Receivables User Guide
Automatic Receipt Batch Management Report, Oracle Receivables User Guide
Oracle Receivables integrates with Oracle Cash Management, which stores all remittance bank details.
Oracle Cash Management’s bank account model allows users to define and keep track of all bank accounts in one place and explicitly grant account access to multiple operating units/functions and users. See: Bank Account Model Overview, Oracle Cash Management User Guide.
Use the Cash Management bank setup pages to enter and maintain your remittance bank account information.
Complete these internal bank setup steps in Oracle Cash Management:
Define banks and bank branches.
Use the Manage Banks and Branches page to access pages to specify general information and define addresses and contacts for banks and bank branches. See: Create Banks, Oracle Cash Management User’s Guide and Define Bank Branches, Oracle Cash Management User’s Guide.
Define bank accounts.
Use the Manage Bank Accounts page to access pages to create account owners and use, controls, access, and contacts. Also specify general information for your bank accounts. See: Bank and Account Administration: Define Bank Accounts, Oracle Cash Management User’s Guide.
Define distribution sets to account for your non-invoice related receipts. These receipts can include refunds, revenue from the sale of stock, as well as interest and investment income. Receipts that are not related to an invoice are known as miscellaneous receipts in Receivables.
Distribution sets are predefined groups of general ledger accounting codes that determine the credit accounts for positive miscellaneous receipt amounts and the debit accounts for negative receipt amounts. Distribution sets also let you speed your receivables accounting by reducing time spent on data entry. You can also use distribution sets to apply percentages of other receipts to different accounts.
You can create an unlimited number of distribution set lines for each distribution set. The total distribution lines must equal 100% before you can save your distribution set.
Receivables displays active distribution sets as list of values choices in the Transactions and Receivables Activities windows.
You can make a distribution set inactive by unchecking the Active check box, and then saving your work.
Prerequisites
Define accounts, Oracle General Ledger Implementation Guide
Select an operating unit.
Enter the Name for this distribution set.
Enter a Description of this distribution set (optional).
Enter the receipt percentage to allocate to this distribution set account.
Enter the Account segments for each distribution set account you create for your distribution set. Receivables generates general ledger distributions using the account information you assign here.
Enter a Description for this distribution set account (optional).
Related Topics
Entering Miscellaneous Receipts, Oracle Receivables User Guide
Miscellaneous Receipts Register, Oracle Receivables User Guide
Define lockboxes to use the Receivables AutoLockbox program. AutoLockbox automatically creates receipts in Receivables using electronic information that your bank provides. Receivables lets you specify the receipt method for each Lockbox you define. Receipt methods provide the default accounting information for receipts you create through AutoLockbox.
Receivables displays active Lockboxes as list of values choices in the Submit Lockbox Processing window.
You can disable a Lockbox by unchecking the Active box, and then saving your work.
Prerequisites
Define banks
Select an operating unit.
Enter the lockbox Number provided by your bank.
Enter the receipt Batch Source for this lockbox. You must enter a batch source that uses automatic numbering. Receivables enters the bank name and account, address, contact person, and accounting flexfield information associated with this batch source.
Enter the Bank Origination Number provided by your bank. This number uniquely identifies the bank branch that sends you lockbox information.
Open the Receipts tabbed region, then enter the Batch Size you want the Lockbox Validation program to assign to each receipt batch. For example, if you have 991 receipts, and you set Batch Size to 10, Receivables will create 99 batches with 10 receipts and 1 batch with 1 receipt. If you do not want Receivables to separate your lockbox batch into multiple receipt batches, enter a number that is larger than the number of receipts in your lockbox transmission for this lockbox, then check the Complete Batches Only box in the Submit Lockbox Processing window when you submit your lockbox transmission. See: Running AutoLockbox, Oracle Receivables User Guide.
Enter your GL Date Source. This source determines the general ledger date for your receipts in this lockbox. Choose from the following sources:
Constant Date: Receivables uses the date you enter in the GL Date field of the Submit Lockbox Processing window. If you do not enter a date when you choose Constant Date, Receivables does not validate your data.
Deposit Date: Receivables uses the date that your bank deposits your receipts. If you choose this source and the lockbox transmission's deposit date is not defined, Receivables displays an error message indicating that you must define a deposit date to submit the lockbox.
Import Date: Receivables uses the date on which you import your receipts.
If you are using this lockbox to transfer foreign currency receipts and you did not specify exchange rate type in the bank file, enter an Exchange Rate Type.
Enter the Receipt Method to assign to this lockbox. The default is the receipt method associated with the receipt batch source you entered.
If you want AutoLockbox to be able to transfer receipts without billing locations into Receivables, uncheck the Require Billing Location box. If this box is checked, AutoLockbox will only validate the receipt if the billing location is provided; otherwise, Lockbox will import and validate these receipts successfully.
Important: If the system option Require Billing Location for receipts is set to Yes, this option should also be set to Yes for your Lockbox. If the system option is set to Yes but it is set to No for your Lockbox, Receivables displays an error message when you submit AutoLockbox. The setting at the system options level determines whether Post QuickCash can process receipts without billing locations.
Choose a Match Receipts By method. Lockbox uses this value to determine what type of matching numbers will be used in this transmission. Choose one of the following methods:
Transaction Number: Match receipts with transaction numbers.
Balance Forward Billing Number: Match receipts with balance forward billing numbers. To use this method, the customer must be enabled for balance forward billing. See: Setting Up Balance Forward Billing.
Lockbox uses the balance forward billing number to identify the customer. Post QuickCash then uses this customer's AutoCash Rule Set to determine how to apply the receipt to each invoice. For more information, refer to the 'Clear Past Due Invoices Grouped by Payment Term' rule in: AutoCash Rules, Oracle Receivables User Guide.
Sales Order: Match receipts with sales order numbers. Lockbox uses this number to determine the corresponding invoice number.
Note: Receivables allows more than one sales order number per invoice because different invoice lines can be generated from different sales orders. Therefore, this method is valid even if other lines on the same invoice reference different sales orders.
Purchase Order: Match receipts with purchase order numbers. Lockbox uses this number to determine the corresponding invoice number.
Note: Receivables allows more than one invoice per sales order or purchase order. If you choose a Match Receipt By method of Sales Order or Purchase Order, Lockbox will match with the first invoice that it finds.
Hook: Match receipts to any other type of matching number that is passed with this transmission. This is a custom matching method that you define. Lockbox uses this number to determine the corresponding invoice number.
For more information, see: How AutoLockbox Applies Receipts, Oracle Receivables User Guide.
Choose whether to Match on Corresponding Date for transactions in this Lockbox transmission. The matching date will correspond to either the transaction, sales order, purchase order, or balance forward bill date, depending on the Match Receipts By method you choose. Choose one of the following:
Always: Always verify that the date for the transaction or other matched item is the same as the date specified in this transmission.
Duplicates Only: Only verify that the matching date and the specified date are the same if duplicate matching numbers were found and Lockbox needs to determine which is correct.
Never: Ignore the specified date. This is the default value.
Tip: If you have customers that match receipts using different methods and either Allow Payment of Unrelated Invoices is Yes for this Lockbox submission or AutoAssociate is Yes for this Lockbox, set Match on Corresponding Date to either Always or For Duplicates only. Because different customers can have transactions with the same number, setting the Match on Corresponding Date option to one of these values ensures that Lockbox will check both the transaction number and the date before matching it with a receipt.
If you do not want the Lockbox Validation program to use the debit item number to determine a customer, open the Transactions tabbed region, uncheck the Auto Associate box. By default, the Lockbox Validation program uses an invoice or debit memo number to determine the customer with which the receipt should be associated (if there is no customer information or MICR number in your Lockbox transmission). For more information, see: AutoAssociate, Oracle Receivables User Guide.
If using Oracle Trade Management, then select the Evaluate for Claim Eligibility check box if you want Lockbox to automatically create claims for eligible remittance lines.
A remittance line's eligibility for claim creation depends on your system options setup. See: Claims System Options.
If you select this box but the remittance line is not eligible for claim creation, then Lockbox handles receipts according to the selection that you make in the next step.
Choose how this Lockbox will handle receipts that were identified by the customer or MICR number but could not be fully applied because of invalid transaction numbers. For example, your receipt record indicates that Lockbox should apply the receipt to several invoices, but one of the invoices is invalid. Choose one of the following options:
Post Partial Amount as Unapplied: Apply the receipt to the valid transactions, then transfer the receipt to the interim table with the remaining receipt amount Unapplied. You can then manually apply the receipt to the invalid transaction using the Applications window.
Reject Entire Receipt: Do not import the receipt (it will remain in the AR_PAYMENTS_INTERFACE table). You need to edit the invalid record in the Lockbox Transmission Data window, then resubmit the Validation step for the receipt before Lockbox can import it into the Receivables interim table.
Select the appropriate line level cash application option:
None: Receivables does not perform line level cash application for the Lockbox run. None is the default line level cash application option for new setups and migrated data.
Oracle Lease Management: Receivables calls Oracle Lease Management to resolve the matching numbers and populate the invoice, invoice lines, and actual amounts to be applied to the invoice lines.
Custom: Receivables calls a seeded custom program to resolve the matching numbers and populate the invoice, invoice lines, and the actual amounts to be applied to the invoice lines.
Related Topics
Using AutoLockbox, Oracle Receivables User Guide
Running AutoLockbox, Oracle Receivables User Guide
Maintaining Lockbox Transmission Data, Oracle Receivables User Guide
Receivables uses receipt methods to account for your receipt entries and applications. Receipt methods also determine a customer's remittance bank information.
Note: You define receipt methods in the Receipt Classes window.
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. You can then assign your receipt methods to your receipt sources to use with your AutoLockbox and manually entered receipts.
If you remit receipts in several currencies for a single receipt method, then you must enter at least one remittance bank per currency. At least one of these remittance banks must be primary.
The receipt class you assign to each of your receipt methods determines the processing steps that Receivables requires for receipts that you create using this receipt method. These steps include whether to require confirmation, remittance, and bank clearance for receipts that you create with a specific receipt class. See: Receipt Classes.
Receivables requires that you specify a receipt method when you create your automatic receipts through the Receipt Batches window. You also assign receipt methods to invoices when you manually enter them in the Transactions window. If an invoice will be automatically paid by credit card, direct debit, or bills receivable, then you must assign an automatic receipt method to the invoice.
Note: Enable automatic correction of funds transfer errors by mapping error codes to corrective actions, for each automatic receipt method. See: Enabling Automatic Funds Transfer Error Corrections.
You can assign all receipt methods to transactions in the Transactions window, except for bills receivable remittance receipt methods. You enter bills receivable remittance receipt methods in the Remittances window.
For bills receivable, define two types of receipt methods: creation receipt methods, which determine how Receivables automatically creates bills receivable from transactions, and remittance receipt methods, which designate the remittance banks and accounting for bills receivable remittances.
Prerequisites
Define internal remittance banks. See: Bank Account Model Overview, Oracle Cash Management User Guide.
When defining receipt methods for a receipt class with an Automatic creation method, you can choose from the following 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.
Note: To define a bills receivable creation receipt method, see: Defining a Bills Receivable Creation Receipt Method. To define a bills receivable remittance receipt method, see: Defining a Bills Receivable Remittance Receipt Method.
Query or enter the receipt class to assign to this receipt method. See: Receipt Classes.
Enter a unique Name for your receipt method, 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.
Note: Oracle Receivables lets you create a receipt method only if there is no transaction type, adjustment, or receivable activity with the same name.
Enter the range of Effective Dates for this receipt method. The default start date is the current date, but you can change it. If you do not enter an end date, this receipt method will be active indefinitely.
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. See: Reversing Receipts, Oracle Receivables User Guide.
If the receipt class associated with this receipt method has a Manual or AP/AR Netting creation method, then skip to the last step.
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.
If the receipt class associated with this receipt method has an Automatic creation method, enter a Number of Receipts Rule (see Number of Receipts Rules above).
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. Enter Earliest if you want the receipt maturity date to be the earliest due date of all of the invoices that your receipt covers. Enter Latest if you want the maturity date to be the latest due date of all of the invoices that your receipt covers.
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.
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.
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. See: Setting Up Funds Capture Payment Methods, Oracle Payments Implementation Guide.
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.
Select Funds Transfer Error Handling to enable the automatic correction of funds transfer errors. See: Enabling Automatic Funds Transfer Error Corrections.
Save your work. To assign a remittance bank to this receipt method, see: Assigning Remittance Banks.
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, such as 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, 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.
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.
Note: 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. See: Correcting Funds Transfer Errors, Oracle Receivables User Guide.
Optionally enter notes for automatic inclusion on the transaction that recorded the funds transfer error.
Assign remittance banks to your receipt methods to facilitate data entry and specify the General Ledger accounts 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.
Prerequisites
Define internal remittance banks. See: Bank Account Model Overview, Oracle Cash Management User Guide.
Define accounts, Oracle General Ledger Implementation Guide
Query the receipt class or receipt method to which you want to assign this remittance bank.
Choose Bank Accounts.
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.
If the creation method of the receipt class is Automatic, 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.
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.
If the remittance method is not No Remittance, 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.
If you do not want this to be the primary remittance bank account in this currency for this receipt method, uncheck the 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.
If the creation method of the associated receipt class is Automatic, 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.
Otherwise, save your work.
Define bills receivable creation receipt methods when you want to create bills receivable automatically using the Bills Receivable Transaction Batches window, the Bills Receivable Batch Creation concurrent program, or the Exchange action in the Transactions window. The receipt method designates the transaction type, maturity date, bill number, and minimum and maximum bill amounts, and determines how transactions are grouped into bills receivable.
You assign the creation method of Bills Receivable to receipt classes that you define for bills receivable creation receipt methods. This activates the Bills Receivable tabbed region for entering information specific to bills receivable creation receipt methods.
After you define bills receivable creation receipt methods, you must assign to transactions that you want to exchange for bills receivable a paying customer defined as drawee with a bills receivable creation receipt method. See: Flagging Transactions for Automatic or Direct Exchange into Bills Receivable, Oracle Receivables User Guide.
Enter the grouping rule that the bills receivable creation receipt method uses to automatically group transactions into bills receivable.
Choose one of these grouping rules for the receipt method:
One per Customer: Group all transactions for a single customer into one bill receivable.
One per Customer Due Date: Group all transactions for a single customer that have the same payment schedule due date into one bill receivable. Transactions with a payment term of Immediate are included in the first available bill receivable that can accommodate their amount, irrespective of due date. This creates an effective grouping rule of One per Customer.
One per Invoice: Group all payment schedules for a single transaction into one bill receivable.
One per Payment Schedule: Create a separate bill receivable for each transaction payment schedule (no grouping). Transactions with a payment term of Immediate are included in the first available bill receivable that can accommodate their amount, irrespective of due date. This creates an effective grouping rule of One per Site.
One per Site: Group all transactions for a single customer address into one bill receivable.
One per Site Due Date: Group all transactions for a single customer address that have the same payment schedule due date into one bill receivable. Transactions with a payment term of Immediate are included in the first available bill receivable that can accommodate their amount, irrespective of due date. This creates an effective grouping rule of One per Site.
Enter a unique Receipt Class Name for this bills receivable receipt class.
Select Bills Receivable in the Creation Method field.
Enter a unique Name for this bills receivable creation receipt method. You might want to use a name that indicates the grouping rule used for this receipt method, or, if you are using multiple organizations, use part of the organization name.
Enter the Printed Name and Effective Dates for this receipt method.
Open the Bills Receivable tabbed region.
Check the Inherit Transaction Number box to use the transaction number as the bill number.
Note: This applies whenever there is a one-to-one relationship between the exchanged transaction and the bill receivable. If the bill receivable contains more than one transaction, then Receivables assigns the bill number according to the settings in the bills receivable transaction batch source.
Enter the Grouping Rule to use for this receipt method.
Enter Earliest or Latest in the Derive Maturity Date field to indicate whether to derive the maturity date for a bill receivable from the earliest or latest due date of all transactions grouped into the bill.
Enter the bills receivable Transaction Type for this receipt method.
The payment method defaults to Bills Receivable and you cannot change it.
In the Lead Days field, enter the number of days before the invoice due date that a transaction payment schedule can be exchanged for a bill receivable.
Enter the Minimum Amount in the functional currency for a bill receivable for this receipt method. If you enter a minimum amount, then a bill receivable is not created for the designated transactions unless their sum is greater than this amount.
Enter the Maximum Amount in the functional currency for a bill receivable with this receipt method.
If you enter a maximum amount, then a partial invoice amount that exceeds the maximum can remain unassigned. For example, an invoice of $1000 assigned to a bill receivable with a maximum amount of $900 leaves an open amount of $100.
Define bills receivable remittance receipt classes and receipt methods to use with bills receivable remittances. The receipt class determines the remittance method and clearance method to use for bills receivable receipts. The receipt methods link the remittance banks to the receipt class and determine if debit memos created as a result of a debit memo reversal will inherit the receipt number. Remittance banks contain the specific remittance bank account information and the formatting programs to use for remittances. A remittance bank assigned to a receipt method determines the accounting for remitted bills receivable and the subsequent receipt.
You assign the creation method Bills Receivable Remittance to receipt classes that you define for bills receivable remittance receipt methods. This activates the Bills Receivable Remittance tabbed region.
Enter a unique Receipt Class Name for this bills receivable receipt class.
Enter Bills Receivable Remittance in the Creation Method field.
Enter a Remittance Method. Choose Standard for standard bills receivable and Factoring for factored bills receivable with or without recourse.
Enter a Clearance Method. If you plan to clear bills receivable receipts automatically using the Automatic Clearing program, choose By Automatic Clearing. If you plan to clear receipts by cash management reconciliation, choose By Matching.
Enter a unique Name for this bills receivable remittance receipt method.
Enter the Printed Name and Effective Dates for this receipt method.
Check the Debit Memos Inherit Receipt Numbers box, if you want debit memo reversals of receipts applied to a bill receivable remitted with this receipt method to inherit the receipt number.
Check the Receipts Inherit Transaction Numbers box, if you want receipts created for bills receivable remitted with this receipt method to inherit the bill number.
Receivables displays One per Invoice in the Number of Receipts Rule field to create one receipt per transaction to close the bill receivable. You cannot change this value.
Choose Bank Accounts.
Enter the remittance bank and bank account.
If this receipt method is for bills receivable factored with recourse, enter the number of Risk Elimination Days for this type of bill.
In the Clearing Days field:
If this receipt method is for standard remitted bills receivable, enter the number of days it will take for the bank to clear the drawee receipt.
If this receipt method is for bills receivable factored with recourse, enter the number of days it will take for the bank to clear the cash advance (short term debt) receipt.
Check the Primary box if this is the primary bank account for this receipt method.
Open the GL Accounts tabbed region.
Enter the Bills Receivable Short Term Debt account to use for this receipt method.
Note: The Factoring field is not used for bills receivable. Bills receivable receipts are not factored, but rather created as remitted.
Open the Bills Receivable tabbed region.
If this receipt method is for standard remitted bills receivable, enter in the Collection Days field the minimum number of days that the remittance bank uses to collect on a bill that is remitted after the maturity date.
Enter the Remitted Bills Receivable and Factored Bills Receivable accounts used by AutoAccounting.
Open the Formatting Programs tabbed region.
Select the Remittance Print program, according to the Remittance Method for this receipt method.
Related Topics
Entering Receipts, Oracle Receivables User Guide
About Remittances, Oracle Receivables User Guide
Automatic Clearing for Receipts, Oracle Receivables User Guide
Bills Receivable Creation, Oracle Receivables User Guide
Bills Receivable Remittance, Oracle Receivables User Guide
Define receipt classes to determine the required processing steps for receipts to which you assign receipt methods with this class. These steps include confirmation, remittance, and reconciliation. You can specify any combination of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared.
Receivables uses the receipt method you assign to a receipt class to determine how to account for receipts you create using this receipt class.
For each receipt class, you can specify a creation method, remittance method, and whether to require bank clearance for receipts that you assign to this class. If you are defining a receipt class whose creation method is Bills Receivable, then Require Confirmation, Remittance Method, and Clearance Method are disabled. If you are defining a receipt class whose creation method is Automatic, then the Remittance Method cannot be No Remittance.
Receivables lets your customers pay their invoices via credit cards and electronic funds transfer (both non-Automatic Clearing House direct debit and ACH bank account transfers).
To accept payment via credit cards or non-ACH direct debit, use your existing Receivables setup, or optionally define a new receipt class and receipt method to be used with these transactions.
To accept payment via ACH bank account transfer, define a new receipt class and receipt method to be used with these transactions. See: Receipt Methods.
Enter a unique Name for your Receipt Class.
If you are creating a Notes Receivable receipt class, check the Notes Receivable box. You cannot change this attribute after you assign a receipt method and then save this receipt class. See: Notes Receivable, Oracle Receivables User Guide.
Choose a Creation Method.
If you choose Automatic, you can create receipts with this receipt class using the Automatic Receipt program.
See: Creating Automatic Receipts, Oracle Receivables User Guide.
In addition, for these receipts, Oracle Payments is responsible for the funds capture process. See: Enabling the Funds Capture Process.
If you choose Manual, receipts using this receipt class must either be entered manually in the Receipts or QuickCash window, or imported into Receivables using AutoLockbox.
See: Entering Receipts, Oracle Receivables User Guide.
If you choose Bills Receivable or Bills Receivable Remittance, Receivables enables the Bills Receivable or Bills Receivable Remittance tab.
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 Automatic Remittances window does not let you create remittances for unconfirmed receipts that were created using a receipt method with this receipt class. See: Confirming Automatic Receipts, Oracle Receivables User Guide.
Receivables will not let you create refund credit card receipts that were created using a receipt method with this receipt class. See: Setting Up Receivables for Credit Card Transactions and Payments, Oracle Receivables User Guide.
If you are defining a receipt class for use with ACH bank account transfers, then you should not check this box.
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 methods:
Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a receipt method with this receipt class.
Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a receipt method with this receipt class.
Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches. See: Creating Remittance Batches, Oracle Receivables User Guide.
No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted.
Note: If the creation method is Automatic, then you cannot select No Remittance as the Remittance Method.
To require receipts created using a receipt method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods:
Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. See: Automatic Clearing for Receipts, Oracle Receivables User Guide. (Receipts using this method can also be cleared in Oracle Cash Management.)
By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.
Enter the receipt method to assign to this receipt class. See: Receipt Methods.
Related Topics
Using Oracle Cash Management to Clear Receipts, Oracle Receivables User Guide
Define receipt batch sources to provide default values for the receipt class, receipt method, and remittance bank account fields for receipts you add to a receipt batch. You can accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.
You can specify a default receipt batch source when defining the profile option AR: Receipt Batch Source. If you specify a default receipt batch source, Receivables displays this source in the Receipt Batches window when you create your receipt batches.
When you select a receipt batch source to enter receipts, Receivables automatically uses the Cash, Receipt Confirmation, Remittance, Factoring, Short Term Debt, Bank Charges, Unapplied Receipts, Unidentified Receipts, On-Account Receipts, Earned and Unearned Discounts, and Bills Receivable account information you assigned to the receipt method for this batch source. The receipt method accounts for the receipt entries and applications you make using this receipt batch source. See: Receipt Methods.
Note: If a user has access to multiple organizations, Receivables does not default the receipt batch source in Receipt Batches and Receipt Batches Summary windows.
Receivables will issue a warning if you enter a receipt source that includes a receipt method that has activities allocated to more than one company. Allocating activities to more than one company will cause some reconciliation reports to distribute data of previously entered transactions across multiple companies. Therefore, information regarding a particular receipt may be distributed across multiple company reports. For example, the Applied and Earned Discount amounts in the Applied Receipt Register would be shown across multiple company reports if you allocated them to different companies.
Receivables provides the automatic receipt source 'Automatic Receipts.' You cannot update this predefined receipt source except for the Last Number field. All of the receipt batch sources you define are created with a Receipt Source Type of Manual.
Prerequisites
Define banks
Define receipt classes (optional)
Define receipt methods (optional)
Select an operating unit.
Enter a unique Name and Description for this source.
Enter a Receipt Class. The receipt class determines the required processing steps for receipts you create using this batch source (for example, confirmation, remittance, and bank clearance). See: Receipt Classes.
If you entered a Receipt Class, enter a receipt method (optional). The receipt method determines the accounting for your automatic and manual receipts.
To associate a remittance bank with this receipt batch source, enter a Bank Account. A remittance bank account is the bank to which you will remit receipts created using this receipt batch source.
To manually enter batch numbers for receipt batches you create using this source, choose Manual Batch Numbering.
To have Receivables automatically assign sequential batch numbers to receipt batches you create using this source, choose Automatic Batch Numbering.
If you chose Automatic Batch Numbering, enter the Last Number you want Receivables to use when numbering your receipt batches. For example, to number receipt batches using this source starting with 1000, enter a last number of 999.
Enter the range of dates that this receipt batch source will be active. The default Start Date is the current date, but you can change it. If you do not specify an End Date, this source will be active indefinitely.
Related Topics
Batching Receipts for Easy Entry and Retrieval, Oracle Receivables User Guide
QuickCash, Oracle Receivables User Guide
Define receivables activities to default accounting information for certain activities, such as miscellaneous cash, discounts, late charges, adjustments, and receipt write-off applications. See: Activity Types for a complete list of activities.
Activities that you define appear as list of values choices in various Receivables windows. You can define as many activities as you need.
The Tax Rate Code Source you specify determines whether Receivables calculates and accounts for tax on adjustments, discounts, and miscellaneous receipts assigned to this activity. If you specify a Tax Rate Code Source of Invoice, then Receivables uses the tax accounting information defined for the invoice tax rate code(s) to automatically account for the tax. If the Receivables Activity type is Miscellaneous Cash, then you can allocate tax to the Asset or Liability tax accounts that you define for this Receivables Activity.
Receivables uses Late Charges activity's accounting information when you record late charges as adjustments to overdue transactions. See: Setting Up Late Charges.
Query the Chargeback Adjustment activity that Receivables provides and specify GL accounts for this activity before creating chargebacks in Receivables.
Query the Credit Card Chargeback activity that Receivables provides and specify a GL clearing account for this activity, before recording credit card chargebacks in Receivables.
You can make an activity inactive by unchecking the Active check box and then saving your work.
Important: Once you define an activity, you cannot change its type. However, you can update an existing activity's GL account, even if you have already assigned this activity to a transaction.
Prerequisites
Define GL accounts, Oracle General Ledger Implementation Guide
If you use Receivables with an installed version of Oracle General Ledger, your Accounting Flexfields are already set up. If you are using Receivables as an Oracle Financials standalone product, you must define the Accounting Flexfield and the GL accounts for each receivables activity that you plan to use to reflect your current accounting structure.
An activity's type determines whether it uses a distribution set or GL account and in which window your activity appears in the list of values. You can choose from the following types:
Adjustment: You use activities of this type in the Adjustments window. You must create at least one activity of this type.
Note: In the Adjustments window, you cannot select the Adjustment Reversal, Chargeback Adjustment, Chargeback Reversal, and Commitment Adjustment activities to manually adjust transactions. These four activities are reserved for internal use only, and should not be end dated.
When you reverse a receipt, if an adjustment or chargeback exists, Receivables automatically generates off-setting adjustments using the Adjustment Reversal and Chargeback Reversal activities. When your customers invoice against their commitments, Receivables automatically adjusts the commitment balance and generates an off-setting adjustment against the invoice using the Commitment Adjustment activity.
Bank Error: You use activities of this type in the Receipts window when entering miscellaneous receipts. You can use this type of activity to help reconcile bank statements using Oracle Cash Management. See: Setting Up Oracle Receivables for Oracle Cash Management Integration, Oracle Cash Management User Guide.
Claim Investigation: You use activities of this type in the Receipts Applications and QuickCash windows when placing receipt overpayments, short payments, and invalid Lockbox transactions into claim investigation. The receivable activity that you use determines the accounting for these claim investigation applications.
For use only with Oracle Trade Management.
Credit Card Chargeback: Use activities of this type in the Receipts Applications window when recording credit card chargebacks. This activity includes information about the General Ledger clearing account used to clear the chargebacks. Receivables credits the clearing account when you apply a credit card chargeback, and then debits the account after generating the negative miscellaneous receipt. If you later determine the chargeback is invalid, then Receivables debits the clearing account when you unapply the credit card chargeback, and then credits the account after reversing the negative miscellaneous receipt. Only one activity can be active at a time.
Credit Card Refund: You use activities of this type in the Receipts Applications window when processing refunds to customer credit card accounts. This activity includes information about the General Ledger clearing account used to clear credit card refunds. You must create at least one activity of this type to process credit card refunds.
Earned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received within the discount period (determined by the transaction's payment terms).
Endorsements: The endorsement account is an offsetting account that records the endorsement of a bill receivable. This is typically defined with an Oracle Payables clearing account.
Late Charges: You use activities of this type in the System Options window when you define a late charge policy. You must define a late charge activity if you record late charges as adjustments against overdue transactions. If you assess penalties in addition to late charges, then define a separate activity for penalties.
Miscellaneous Cash: You use activities of this type in the Receipts window when entering miscellaneous receipts. You must create at least one activity of this type.
Payment Netting: You use activities of this type in the Applications window and in the QuickCash Multiple Application window when applying a receipt against other open receipts.
The GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the clearing account used when offsetting one receipt against another receipt. The Tax Rate Code Source field defaults to None.
You can define multiple receivables activities of this type, but only one Payment Netting activity can be active at any given time.
Prepayments: Receivables uses activities of this type in the Applications window when creating prepayment receipts. When the Prepayment activity type is selected, the GL Account Source field defaults to Activity GL Account and you must enter a GL account in the Activity GL Account field. The GL account that you specify will be the default account for prepayment receipts that use this receivables activity. The Tax Rate Code Source field defaults to None. You can define multiple receivables activities of this type, but only one prepayment activity can be active at any given time.
Receipt Write-off: You use activities of this type in the Receipts Applications and the Create Receipt Write-off windows. The receivable activity that you use determines which GL account is credited when you write off an unapplied amount or an underpayment on a receipt.
Refund: Use activities of this type in the Applications window to process automated non-credit card refunds. This activity includes information about the General Ledger clearing account used to clear refunds. Create at least one activity of this type. Only one activity can be active at a time.
Short Term Debt: You use activities of this type in the GL Account tabbed region of the Remittance Banks window. The short-term debt account records advances made to creditors by the bank when bills receivable are factored with recourse. Receivables assigns short-term debt receivables activities to bills receivable remittance receipt methods.
Unearned Discount: You use activities of this type in the Adjustments and the Remittance Banks windows. Use this type of activity to adjust a transaction if payment is received after the discount period (determined by the transaction's payment terms).
Select an operating unit for this activity.
Enter a Name and Description for this activity. The activity name should not exceed 30 characters.
Choose the Type of activity you are defining (see Activity Types). The GL Account Source defaults to Activity GL Account and the Tax Rate Code Source defaults to None.
Note: You cannot implement tax accounting for activities with a type of Bank Error because there is no business need to calculate tax on these activities. However, you can still create Receivables Activities of this type and assign a GL Account Source of Activity GL Account.
Indicate how Receivables should derive the accounts for the expense or revenue generated by this activity by specifying a GL Account Source. Choose one of the following:
Activity GL Account: Allocate the expense or revenue to the general ledger account that you specify for this Receivables Activity (see Step 7). If the activity type is Bank Error, Claim Investigation, Endorsement, Late Charges, Prepayment, Receipt Write-off, or Short Term Debt, you can only choose this GL account source.
Distribution Set: Allocate the expense or revenue to the distribution set that you specify for this Receivables Activity (see Step 8). A distribution set is a predefined group of general ledger accounting codes that determine the accounts for miscellaneous receipts and payments. You can choose this option only if the activity type is Miscellaneous Cash.
Revenue on Invoice: Allocate the expense or revenue net of any tax to the revenue account(s) specified on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.
If the revenue on the specified invoice is unearned, then Receivables calls the Revenue Adjustment API, which uses AutoAccounting to derive the anticipated revenue accounting distribution accounts and amounts. The accounting engine then uses this information to allocate the adjustment or discount amount to these derived revenue account(s).
Tax Rate Code on Invoice: Allocate the net portion using the Expense/Revenue accounts specified by the tax rate code on the invoice. If Tax Rate Code Source is set to None, allocate the gross amount to these accounts. You can only choose this option if the activity type is Adjustment, Earned Discount, or Unearned Discount.
In the event of an adjustment to an invoice with zero amount revenue distributions, the adjustment activity's GL Account Source must not be set to Revenue on Invoice or Tax Rate Code on Invoice.
Specify a Tax Rate Code Source to indicate where Receivables derives the tax rate code for this activity. Choose one of the following:
None: Allocates the entire tax amount according to the GL Account Source you specified. Choose this option if you do not want to separately account for tax.
Activity: Allocate the tax amount to the Asset or Liability tax accounts specified by the Receivables Activity.
Invoice: Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You cannot choose this option if the activity Type is Miscellaneous Cash or Late Charges.
In the event of a tax adjustment to an invoice with zero amount tax distributions, the adjustment activity's Tax Rate Code Source must not be set to Invoice.
If the Tax Rate Code Source is Activity or Invoice, Receivables displays the Recoverable and Non-Recoverable options. Indicate whether tax for this activity can be taken as a deduction. If the tax is deductible, choose the Tax Recoverable option; otherwise, choose Non-Recoverable.
If your Tax Rate Code Source is Invoice, Recoverable is the default but you can change it. If your Tax Rate Code Source is Activity or None, Non-Recoverable is the default and you cannot change it.
Note: If your activity type is Miscellaneous Cash or Bank Error, the Recoverable and Non-Recoverable options do not appear.
Enter an Activity GL Account, or select from the list of values.
If the activity type is Credit Card Refund or Refund, enter a clearing account.
If the activity type is Miscellaneous Cash and the GL Account Source is Distribution Set, then skip to the next step. You cannot enter both an Activity GL Account and a Distribution Set.
If your activity type is Miscellaneous Cash, enter a Distribution Set, or select from the list of values. You use distribution sets to automatically distribute miscellaneous cash across various accounts.
Tip: Specify a distribution set for your Miscellaneous Cash activities to properly distinguish them from your invoice-related activities.
If the activity type is Miscellaneous Cash and you specified a Tax Rate Code Source of Activity, then select Asset and Liability tax rate codes.
If the selected operating unit has multiple legal entities, then select tax rate codes for each legal entity.
The Asset tax rate code is your collected tax account (tax received); use this tax rate code to account for tax on miscellaneous receipts.
The Liability tax rate code is your deductible account (tax paid); use this tax rate code to account for tax on miscellaneous payments.
If the activity type is Endorsements, enter the number of Risk Elimination Days.
Note: When you endorse a bill receivable with recourse, Receivables uses the risk elimination days to determine when the endorsement closes the bill.
Related Topics
Entering Receipts, Oracle Receivables User Guide
About Adjustments, Oracle Receivables User Guide
Credit Card Chargebacks, Oracle Receivables User Guide
Use the Transmission Formats window to define the transmission formats that AutoLockbox uses when importing data into Receivables. Transmission formats specify how data in your lockbox bank file is organized so it can be successfully imported into the Receivables interface tables. You can define as many transmission formats as you want.
Receivables provides the following transmission formats:
Example (arxmpl.ctl): A format that contains an example of lockbox header information, several receipt records, and overflow receipt records.
Default (ardeft.ctl): A standard BAI (Bank Administration Institute) format used by most banks.
Convert (arconv.ctl): A standard format used for transferring payment information from other systems.
Cross Currency (arxcurr.ctl): A default format used for importing cross currency receipts.
Zengin (arzeng.ctl): A format used to import bank files in the Japanese Zengin format. See: Alternate Names Receipt Matching Window, Oracle Receivables User Guide.
These files are located in the $AR_TOP/bin directory and are compatible with corresponding standard SQL*Loader control files.
You use an SQL*Loader control file to import data from bank files to Receivables. If you define a different transmission format or edit the existing Default or Convert formats, you must edit the SQL*Loader control file before you can import data into Receivables. The transmission format is used by the validation program to ensure that data is correctly transferred from the bank file into Receivables.
Active transmission formats appear in the list of values of the Submit Lockbox Processing window. You can make a transmission format obsolete by changing its status to Inactive, and then saving your work.
When defining your transmission fields, you can choose from the following field types:
Account: Your customer's bank account. The bank account number and the transit routing number make up your customer's MICR number.
Alternate Name: The alternate name for this customer.
Amount Applied 1 to 8: The amount applied to each invoice, debit memo, or chargeback. Each payment or overflow payment record can accommodate up to eight debit item numbers. For cross currency applications, this is the amount to apply in the transaction currency and corresponds to the Amount Applied field in the Applications window.
Amount Applied From 1 to 8: Used for cross currency receipt applications, this is the amount applied to each transaction in the receipt currency. Each payment or overflow payment record can accommodate up to eight debit item numbers. This field corresponds to the Allocated Receipt Amount field in the Applications window.
Attribute 1 to 15: Use attributes to enter Descriptive Flexfield segments. Attributes can only be assigned to Payment records, and they become the Descriptive Flexfield data in the QuickCash, Receipts, and Applications windows.
Bank Transaction Code: A code defined for each account that is used by your bank to uniquely identify the kind of transaction in a bank statement (for example, debit, credit, void). This is also used by Oracle Cash Management to determine a receipt's effective date.
Batch Amount: The total receipt batch amount for a specific bank batch.
Batch Name: The name of the batch for a specific bank batch.
Batch Record Count: The total number of payment records in a specific bank batch. The total number of all batch record counts equals the Lockbox Record Count. This does not include overflow payments, headers, or trailers.
Billing Location: Your bank will be able to transmit the billing location of the payment. You must only specify the field name and the field positions that the billing location occupies in the transmitted data file.
Comment: Any comments you want to associate with this transmission.
Currency Code: The currency of the payment. For cross currency payments, you can also enter the Invoice Currency Code (see below). If you do not enter a value in this field, AutoLockbox derives the currency code from the information that is provided in the Amount Applied and Amount Applied From fields.
Customer Bank Branch Name: The name of your customer's bank branch.
Customer Bank Name: The name of your customer's bank.
Customer Number: The identification number of the customer who submitted a payment.
Customer Reason 1 to 8: The customer's reason why their payment shows a disrepancy (used by Oracle Trade Management).
Customer Reference 1 to 8: Customer comments about this payment.
Deposit Date: The date the bank receives and deposits your customer's payment.
Deposit Time: The time at which the bank receives and deposits your customer's payment.
Destination Account: Your business's bank account. Your business may have more than one bank account.
Effective Date: The date on which the bank determines a customer's balance to apply interest (used by Oracle Cash Management's Cash Forecasting feature).
Exchange Rate: The exchange rate associated with this payment if you are using AutoLockbox to import foreign currency receipts.
Exchange Rate Type: The exchange rate type used to convert a foreign currency receipt to your functional currency. Values include Corporate, Spot, or User. For more information, see: Foreign Currency Transactions, Oracle Receivables User Guide.
Invoice 1 to 8: The invoices, debit memos, and chargebacks to which you apply your payment. Each payment or overflow payment record can accommodate up to eight debit item numbers.
Invoice 1 to 8 Installment: The installment number for this invoice.
Invoice Currency Code 1 to 8: The currency of the transaction. This field is used for cross currency receipt applications. This field is optional.
Item Number: A sequence number that your bank assigns to a specific payment. This number associates an invoice with a receipt.
Lockbox Amount: The total payment amount in a specific lockbox.
Lockbox Batch Count: The total number of bank batches in a specific lockbox.
Lockbox Number: The identification number for a specific lockbox.
Lockbox Record Count: The number of payment records in a specific lockbox (this does not include overflow payments, headers, or trailers).
Matching Date 1-8: The dates to use to match receipts with transactions if you are using the Match on Corresponding Date option for this Lockbox.
Origination: The bank origination number provided by your bank. This number uniquely identifies the bank branch that sends you lockbox information.
Overflow Indicator: This type indicates whether there are any additional overflow records for this payment.
Overflow Sequence: A sequence number that your bank assigns to each overflow payment.
Receipt Method: The receipt method associated to this lockbox.
Payment Number: The identification number of a payment. For example, a check number.
Receipt Date: The date your customer made a payment.
Record Identifier: A number that identifies the kind of transmission record. You specify this number in the Identifier field in the Transmission Formats window.
Remittance Amount: The amount of a payment.
Remittance Bank Branch Name: The name of the bank branch from which this payment originated.
Remittance Bank Name: The name of the bank from which this payment originated.
Status: The status of this payment.
Total Record Count: The total number of transmission records in a bank file. This includes headers, trailers, payments, and overflow records.
Trans to Receipt Rate 1 to 8: The exchange rate used to convert the receipt amount from the receipt currency to the transaction currency. This field is used for cross currency receipt applications when the receipt and transaction currencies do not have a fixed exchange rate (the euro and all NCUs have fixed exchange rates with each other). If the currencies have a fixed rate, this field is optional (AutoLockbox derives the rate to use in this case).
Transit Routing Number: The number that uniquely identifies your customer's bank. The transit routing number and the customer bank account number make up your customer's MICR number.
Transmission Amount: The total amount of payments for a bank file.
Enter a Name for this transmission format.
Enter a Description of this transmission format (optional).
If you want to import bank files in the Japanese Zengin format into Receivables using AutoLockbox, specify the character set that you will use in the Zengin Character Set field. Choose from one of the following Japanese character sets:
EBCDIC
SJIS
Enter an Identifier that uniquely identifies each record type in a transmission format. Your bank defines this value and uniquely identifies each type of record in the bank file.
Enter the Record Type associated with this identifier. Following are valid record types:
Batch Header: A Batch Header marks the beginning of a specific batch. Batch Headers usually contain information such as batch number, deposit date, and lockbox number.
Batch Trailer: A Batch Trailer marks the end of a specific batch. Batch Trailers usually contain information such as batch number, lockbox number, batch record count, and batch amount.
Lockbox Header: A Lockbox Header marks the beginning of a specific lockbox. Lockbox Headers usually contain information such as destination account and origination number.
Lockbox Trailer: A Lockbox Trailer marks the end of a specific lockbox. Lockbox Trailers usually contain information such as lockbox number, deposit date, lockbox amount, and lockbox record count.
Overflow Receipt: An Overflow Payment usually contains invoice information for a specific payment such as batch number, item number, sequence number, overflow indicator, invoice number, debit memo number, or chargeback number, and debit item amounts. Receivables combines the overflow and payment records to create a logical record to submit payment applications.
Receipt: A Payment usually contains information such as MICR number, batch number, item number, check number, and remittance amount.
Service Header: Service Header records contain general information about your transmission.
Transmission Header: A Transmission Header marks the beginning of a specific data file. Transmission Headers usually contain information such as destination account, origination number, deposit date, and deposit time.
Transmission Trailer: A Transmission Trailer marks the end of a specific data file. Transmission Trailers usually contain information such as total record count.
Note: Your bank file might not contain all of these record types. You should define your transmission format to only include the record types you actually use.
Choose Transmission Fields. Identify the characteristics of your transmission format records. You specify the size, order, and format of each transmission record. Receivables lockbox transmission program only validates fields that you define in your transmission format. The transmission format must be fully compatible with how you organize data in your lockbox file.
Enter Start and End Position numbers for this record type. These positions determine how Receivables identifies the starting and ending position of your field type when you import data from your bank file.
Enter the Field Type to assign to the start and end positions (see Valid Field Types above).
Enter either Left or Right in the Justify field to indicate from which side Receivables will start reading data in the transmission field. For example, if you enter 'Left,' Receivables starts reading data from left to right. The default is Left.
Enter the type of character that your bank places in the extra spaces for this field type in the Fill Symbol field. Valid values are 'Blank' or 'Zero.'
If the field type is related to a date, enter the Date format your bank uses, or select from the list of values. This field is required when Field Type is either Deposit Date or Receipt Date.
If the field type is related to time, enter the Time format your bank uses. This field is required when your Field Type is Deposit Time.
Enter either Yes or No in the Format Amount field to indicate whether you want Receivables to reformat the amount transmitted (optional). If you enter Yes, Receivables will round the amount to the same degree of precision and the same number of decimal places as your functional currency format. For example, if your functional currency is USD (precision = 2) and you set this option to Yes, a value of '50000' in the bank's data file will be formatted as '500.00;' otherwise, this value will not be formatted and will appear as '50000.'
This field is required when your Field Type is Amount Applied 1-8, Batch Amount, Lockbox Amount, Remittance Amount, or Transmission Amount.
Enter a value that indicates that there are additional overflow records for your transmission record (optional). For example, in the Default format the overflow indicator is 0.
Enter a Description for the field type you are defining (optional). Use field descriptions to help you recognize what information is contained in a particular field type.
Related Topics
Using AutoLockbox, Oracle Receivables User Guide
Running AutoLockbox, Oracle Receivables User Guide
Viewing Transmission History, Oracle Receivables User Guide
Oracle Financials Common Modules owns a Rule Engine, which can do the assignment based on defined rules and conditions. This rule engine is already in use for Oracle Credit Management for Credit Analysts Assignment and Oracle Revenue Management for Contingency Events.
The functionality provided by the rules engine meets the requirements related to assignment of cash application owner to receipts. So, the engine has been integrated with Receivables for the purpose of assigning unapplied and unidentified receipts to cash application owners.
The rule engine takes a set of attributes, evaluates rules and returns rule result when conditions for the rule are satisfied. The rules engine allows the end user to set up rules to determine how those input values are evaluated to determine the output value. The rules engine will not change the state of the database, or take any action of any kind. It simply returns rule result value and leaves it up to the products uptaking it to interpret the meaning of the returned result.
For the purpose of this rule engine, rules can be setup for desired result based on various parameters. The parameters can be defined based on conditions and values can be associated to parameters. Both parameters and conditions are seeded in the system. One rule can have multiple parameters. Rules can be prioritized and executed by the engine based on priority.
The UI pages provided by Rules Engine are re-usable components which Receivables will uptake for cash application owner assignment. To uptake these UI pages, Receivables populates the metadata tables belonging to these pages.
The metadata attributes that are seeded are:
Rule Object
Parameters
Conditions
Result
A new Rule Object for cash application owner assignment has been seeded to which values for Parameters, Conditions, and Result are also seeded.
The seed values for rule object are given in the following table:
| Rule Object Name | Rule Object Type |
|---|---|
| Determine Cash Application Owner | Value Set |
Navigate to Setup: Receipts > Cash Application Owner Assignment.
On the Rules Object page, navigate to Rules List tab.
Select the default user name, if required.
Click Create Rule.
In the Create Rule page, enter the name of the rule.
The existing parameters and their criteria will be displayed for a rule.
To add a new criteria to a new parameter, select the parameter from the list and click Add Criteria.
The following table lists the parameters:
| Parameter Name | Conditions |
|---|---|
| Bill To Customer | In, Not In |
| Bill To Site | In, Not In |
| Customer Profile Class | In, Not In |
| Country | In, Not In |
| Operating Unit | In, Not In |
| Currency | In, Not In |
Click Add Values for each selected parameter. You can enter different values for the parameter.
Once completed, click Add Criteria to finish the parameter selection. Click Cancel to stop adding parameter values.
Values can be selected only from LOV. You cannot manually enter the values.
Multiple values can be added with a condition.
After adding all the parameters and their criteria, click Apply to set the rule. Click Cancel to stop the process.
On the Rules Object page, navigate to Test Cases tab.
Click Create Test
Enter the name of the test.
Select or enter the parameters you want to test.
Click Add Values to enter the expected results manually or click Get Results to automatically evaluate the given parameters for the rule.
After adding all the parameters and their criteria, click Apply to test the parameters. Click Cancel to stop the process.
Related Topics
Cash Application Work Queue, Oracle Receivables Implementation Guide