Understanding Automatic Receipt Processing

Immediate recognition of cash in the general ledger is an essential part of the accounts receivable process. To ensure early cash recognition, you can process receipts automatically to quickly apply payments from customers to their invoices.

This method of processing receipts enables you to:

• Immediately recognize cash in the general ledger regardless of whether the receipt is matched to invoices.

• Store instructions for invoice matching at the customer and company level.

• Define flexible selection criteria and sequencing specifications to reduce the number of invoices that are candidates to be reviewed.

• Process unapplied receipts that were entered manually.

• Reprocess receipts that were not successfully processed the first time.

Automatic receipts processing consists of these sequential tasks:

1. Upload customer payment information.

   You use a custom program or an EDI lockbox program to transfer receipt information from a customer's bank media to the Electronic Receipts Input table (F03B13Z1) for processing.

2. Create receipt records automatically.

   You run a batch program that extracts receipt information from the electronic receipt record and creates either unapplied or logged receipt records in the Receipts Header (F03B13) and Receipts Detail (F03B14) tables. You can set a processing option to automatically apply receipts to invoices after running this program.

3. Apply receipts to invoices automatically.

   You run a batch program to automatically apply the receipts to the open invoices using algorithms that you defined in a setup procedure. The system creates records in the F03B14 table when receipts are successfully matched to invoices.

4. Review, revise, and add electronic receipts.

   You can review and revise the receipts that the system was unable to process successfully so that you can reprocess them successfully later. If necessary, you can also add electronic receipts.

5. Purge electronic receipts.

   You can purge the electronic receipts from the F03B13Z1 table after processing the receipts. This batch process improves processing time by removing unnecessary records.

Additionally, you can manually apply receipts to invoices and run reports to review deposits and transactions.