2Process Customer Payments

This chapter contains the following:

Apply Customer Payments

You can apply all or part of a receipt or on-account credit memo to a single debit item or to several debit items.

For example, a customer may send a single check to pay all of one invoice and part of another invoice. The customer may also have an on-account credit memo to use with the check to close an open debit item.

Review these guidelines for applying receipts and on-account credit memos to transactions:

  • Credit Memo Search

  • Transaction Balance for Applications Always Used Profile Option

  • Receipt Application on Cross-Customer Transactions

  • Foreign Currency Receipts

  • On-Account Credit Memos

  • Balance Forward Bills

Credit Memo Search

You can only search for and display complete credit memos.

Transaction Balance for Applications Always Used Profile Option

The Transaction Balance for Applications Always Used profile option determines the default amount applied value to use for receipt applications. If you set this profile option to Yes, then the default amount applied is the remaining transaction amount.

If you set this profile option to No, or if a null value exists, then the defaulting rule is:

  • If the unapplied receipt amount is greater than or equal to the transaction, then the default amount applied is the remaining transaction amount.

  • If the unapplied receipt amount is less than the remaining transaction amount, then the default amount applied is the unapplied receipt amount.

Receipt Application on Cross-Customer Transactions

You can apply a receipt to the open debit items of unrelated customers if the Allow Payment of Unrelated Transactions system option is set to Yes.

If a customer paying relationship assignment exists, then customers can pay for transactions of related customers in the same hierarchy according to the paying relationship. The paying relationships are:

  • Pay Any: Any customer within the relationship can pay for the accounts of any other customer within the relationship.

  • Pay Below: Each customer can pay for its own transactions, and the transactions of all customers that are lower in the hierarchy (children, grandchildren, and so on).

Foreign Currency Receipts

If you apply receipts in the same foreign currency as the transactions, enter foreign currency conversion rate information using predefined conversion rates, or enter your own rate. If, when you post a foreign currency receipt application to general ledger, the rate changes, Receivables records a realized gain or loss amount.

On-Account Credit Memos

You can apply on-account credit memos to transactions and refunds only. Receivables doesn't calculate discounts for on-account credit memo applications.

You can't use cross currency applications with on-account credit memos. The currency of the on-account credit memo and the currency of the transaction must be the same.

Balance Forward Bills

You can use the balance forward billing number as the document type reference in the Match Receipts By rule. Receivables applies receipts to transactions identified by the balance forward billing number.

During payment processing, Receivables matches the remittance reference information on your receipts to open transactions, and presents recommendations for which transactions to use for a given receipt application. This recommendation process operates for manual receipts, lockbox receipts, and receipts uploaded using a spreadsheet.

In general, Receivables generates recommendations rather than applying receipts automatically when there is a data entry error, such as an incorrect invoice number, or when no transaction meets the minimum requirements for automatic receipt application, as defined by your implementation.

Settings That Affect Recommendations for Receipt Application

These settings affect recommendations for receipt application:

  • Match Receipts By rule: The Match Receipts By rule identifies the document type reference to use to match receipts to transactions during lockbox and manual receipt processing. There are six document types available to match to receipts:

    • Transaction number

    • Balance forward billing number

    • Contract number

    • Purchase order number

    • Sales order number

    • Shipping reference, such as a waybill number or packing slip

    You can set Match Receipts By rules for document type references at the customer site, customer account, lockbox, and Receivables system option level. Receivables searches these settings until it finds an exact match or an approximate match.

  • Document Type Automatic Update: Enable the Automatically update receipt match by option at the customer site or customer account level to automatically maintain the optimum Match Receipts By rule. If AutoMatch and AutoApply successfully match and apply a receipt for a customer or customer site based on a document type different from the default setting (or if there was no default setting), this new document type becomes the primary Match Receipts By rule for that customer or site.

  • AutoApply: Set the Use AutoApply option for a lockbox or at the Receivables system option level for manual receipts. If you set this option, AutoApply automatically applies receipts and presents transaction recommendations based on the AutoMatch rule set, and handles exceptions based on the application exception rule set.

  • AutoMatch Rule Set: The active AutoMatch rule set determines how receipts are applied automatically and transactions recommended for manual application. You can assign an AutoMatch rule set at the customer site, customer account, lockbox, and Receivables system option level.

    An AutoMatch rule set defines the minimum qualifying percentage score, based on assigned thresholds, necessary to recommend transactions for receipt application. The rule set also provides string handling assistance to search for transaction matches against reference strings, such as an invoice number.

  • Application Exception Rule Set: The active application exception rule set manages the handling of over and under payments after receipt application.

How Recommendations for Receipt Application Are Calculated

Receivables matches the remittance reference on the receipt to transactions, based on the active Match Receipts By rule. Receivables searches for a Match Receipts By rule to use for comparison in the order customer site, customer account, lockbox (for lockbox processing), and Receivables system options.

For example, you enter an invoice number as the reference number, and the Match Receipts By rule for a customer site is Transaction Number. Receivables looks for and displays the transactions that most closely match the number you enter. If there is an exact match, and if the AutoMatch threshold settings allow, Receivables applies the receipt to the transaction automatically. If there is not an exact match, Receivables displays a list of recommended transactions according to the AutoMatch thresholds.

If AutoApply is enabled, Receivables presents transaction recommendations in the order of their reference score, as calculated by the active AutoMatch rule set, such that the closest matches appear first in the list. Each recommendation is accompanied by a reason code explaining why the receipt wasn't applied to the transaction automatically. For example, if a recommendation has the reason Below transaction threshold, this indicates that the receipt wasn't automatically applied because the transaction reference score didn't meet the minimum threshold required for automatic application.

When you submit a lockbox, the lockbox process can in many cases match receipts to transactions and apply the receipts automatically. In cases where receipts are not applied automatically, lockbox generates a list of recommended transactions for you to complete the receipt application process manually.

When you manually create a standard receipt, use the Submit and AutoApply Now button to automatically apply the receipt. Receivables displays either the applications it has made or any recommendations for receipt application. For proposed recommendations, you can then select the transactions that you want and manually apply the receipt.

After the receipt is applied to the transaction, Receivables updates the receipt and transaction amounts, and displays any over or under payments for processing according to the details of the application exception rule set.

Receipts Applied without a Reference

Receivables will apply a receipt to a transaction or generate transaction recommendations without a remittance reference under these conditions:

  • Customer information on the receipt matches that of the transaction.

  • Receipt amount is equal to or greater than the transaction amount.

  • For lockbox processing, the AutoCash rule is unable to apply the receipt.

You can apply an open receipt against another open receipt.

You apply a receipt against another open receipt in order to move funds between receipts. Open receipts include receipts that have either unapplied cash or on-account cash. You can then apply the resulting unapplied receipt balance to a transaction.

To use receipt-to-receipt applications, you must set up a clearing account under the Receivables activity Payment Netting to manage the offset of the one receipt against the other.

Both receipts in a receipt-to-receipt application must be in the same currency. If both receipts are in a foreign currency, the result of the receipt application may be an exchange gain or loss. The exchange gain or loss is realized on the target receipt at the time of receipt application. If you later adjust the conversion rate on either receipt, the accounting is rederived using the adjusted conversion rate.

You can unapply a receipt that was applied to another open receipt, provided that neither receipt is drawn negative by unapplying it.

A write-off is a receipt activity that cancels an open debit item and assigns it to a write-off account. You can write off both overpayment and underpayment amounts.

You write off an overpayment when, after applying a receipt to debit items, a small unapplied amount remains. You write off an underpayment when a receipt underpays an invoice by a small amount and the write-off is preferable to billing the customer for the difference.

Considerations for write-offs include:

  • Write-off Setup

  • Recommendations for Write-offs

  • Automatic Write-offs

  • Foreign Currency Write-offs

Write-off Setup

You can set up Receivables both to write off receipt amounts automatically and to present write-off amounts as recommendations for review and manual update.

These setups are related to receipt write-offs:

  • Receivables activity: Set up accounts under the Receivables activity Receipt Write-off to credit receipt write-off amounts.

  • Application exception rule set: Define an application exception rule set and assign the rule to Receivables System Options: Cash Processing tab. The application exception rule set defines how to manage overpayments and underpayments.

  • Receivables system options: Define the write-off limit range per receipt. You cannot write off receipt balances that are less than or greater than this range.

  • Approval limits: Define user approval limits per currency for write-offs.

Recommendations for Write-offs

During automatic payment processing, Receivables identifies underpayments and overpayments after receipts are applied to transactions. Depending on the details of your setup, Receivables can write off certain payments automatically and present other payments to you for review.

If you decide after review to write off a given overpayment or underpayment, you can manually enter a write-off up to the total amount assigned to both your receipt write-off approval limits and the system-level write-off approval limits.

Automatic Write-offs

Use the Create Automatic Receipt Write-offs program to automatically write off receipts. You can only use this program to write off overpayment amounts.

The Create Automatic Receipt Write-offs program writes off selected receipts for the designated unapplied amount or percentage, and closes the receipts. The program checks that the unapplied amount or percentage is within your approval limits.

You can use the Create Automatic Receipt Write-offs program to:

  • Schedule periodic write-offs as receipt adjustments for small remaining balances.

  • Limit write-offs by a percentage of the original receipt amount and by the policy of your enterprise.

  • Create write-offs for specific currencies and customers.

You can also print and review write-offs generated by the program before applying them.

The account assigned to the Receivables activity that you select for the program run is the account credited for all write-off amounts.

Foreign Currency Write-offs

When you write off a foreign currency receipt, Receivables uses the conversion rate information from the original receipt for the write-off record.

If you adjust the conversion rate of a foreign currency receipt, Receivables reverses the write-off with the original conversion rate and then applies the new conversion rate to the write-off. Receivables reverses the write-off only if the converted amount does not exceed the system level write-off limit. If the converted amount exceeds the system level write-off limit, Receivables leaves the write-off amount as unapplied.

Use cross-currency receipt applications to process payments that customers make in a currency that is different from the currency of the open debit item. You can apply cross-currency receipts to invoices, debit memos, and chargebacks.

When you apply a cross-currency receipt, Receivables calculates both the open balance on the transaction (if any) and the foreign exchange gain or loss for the application.

You can apply receipts to transactions using any currency defined in General Ledger.

Settings That Affect Cross-Currency Receipts

These settings affect cross-currency receipt applications:

  • Realized Gains and Realized Losses Accounts: Define a realized gains account and a realized losses account at the Receivables system option level to account for the conversion rate gain or loss in the ledger currency resulting from a cross-currency receipt application.

  • Cross Currency Rate Type: Enter the default conversion rate type at the Receivables system option level to use when the receipt and transaction currency are different and the two currencies don't have a fixed-rate relationship. If the receipt and transaction have a fixed-rate relationship, then Receivables uses the conversion rate defined between these currencies.

    Receivables uses this rate type to calculate the allocated receipt amount when you enter the amount applied, and vice versa. If this Receivables system option is not defined, then you must manually enter both values.

    Lockbox also uses this rate type to apply cross-currency receipts if the program can't calculate the rate to use.

  • Cross Currency Rounding Account: Define a cross-currency rounding account at the Receivables system options level to record any rounding error amounts created during a cross-currency receipt application for currencies that have a fixed-rate relationship.

  • Suspense Account: Define a suspense account in general ledger for journal entries created by cross-currency receipt applications. For each cross-currency receipt application, general ledger creates one entry in the suspense account so that each journal entry will balance in the entered currency.

How Cross-Currency Receipts Are Calculated

When applying cross-currency receipts, your customer needs to provide the following remittance information:

  • Which transactions to apply the receipt to.

  • If the receipt is a partial payment, how much of each transaction is to be settled.

  • If applicable, conversion rate information, which is either:

    • Conversion rate to use to convert to the ledger currency.

    • If you are manually entering allocated receipt amounts, how much of the receipt to allocate to a transaction.

In the Create Receipt or Manage Receipt page:

  • Enter the amount to apply to a transaction in the Applied Amount field. If a conversion rate exists between the receipt currency and the transaction currency, Receivables populates the Cross Currency Rate field and calculates the allocated receipt amount.

  • If a conversion rate doesn't exist between the receipt currency and the transaction currency, then either enter the rate to use to convert the transaction amount to the receipt amount in the Cross Currency Rate field, or enter the amount of the receipt to allocate to the transaction in the Allocated Receipt Amount field.

Receivables performs these calculations:

  • Converts the amount applied to the ledger currency and displays the result in the Amount Applied Base field.

  • Updates the balance due in both the transaction currency (Balance Due field) and the ledger currency (Balance Due Base field).

  • Calculates the cross currency conversion:

    • If necessary, Receivables uses the receipt date as the conversion date and the Receivables system option cross-currency rate type to calculate the rate.

    • If you enter a conversion rate in the Cross Currency Rate field, Receivables calculates the allocated receipt amount.

    • If you enter the allocated receipt amount, Receivables calculates the cross-currency rate.

  • If applicable, calculates the discounts in the transaction currency. If there are transactions in multiple currencies, Receivables can't display the total discount in a single currency. You can only view the discount for each application separately.

  • If the currencies have a fixed-rate relationship, calculates the rounding error amount created by the cross-currency receipt application.

  • Calculates the foreign currency exchange gain or loss:

    • Receivables determines the transaction amount and the receipt amount in the ledger currency.

    • Receivables calculates the foreign currency exchange gain or loss in the ledger currency using this formula:

      Receipt Amount (as of the receipt date) - Transaction Amount (as of the transaction date) = Foreign Exchange Gain or Loss

      This formula can be also expressed as:

      Allocated Receipt Amount Base - Amount Applied Base = Foreign Exchange Gain or Loss
    • If a discount has a gain or loss amount, the amount is included in the realized gain and loss calculation for the item.

Receivables creates multi-currency journal entries each time you apply a receipt in one currency to a transaction in a different currency. When you post these multi-currency journal entries, General Ledger:

  • Separates the entries by currency before balancing them.

  • Creates an entry in the suspense account to balance each journal entry.

Examples of Cross-Currency Receipt Applications

The following examples illustrate the calculations and journal entries when you apply cross-currency receipts.

In the first example, you apply a receipt in one currency to an invoice in a different currency. Both the invoice currency and the receipt currency are different from your ledger currency.

In the second example, you apply a receipt in one currency to three separate invoices, each in a different currency.

Apply a Receipt to One Invoice

On JAN-01 you create Invoice 101 for 100 Canadian dollars (CAD). The corporate conversion rate on JAN-01 is 1 USD = 1.5 CAD. Receivables uses this rate to calculate the amount of the invoice in your ledger currency as 66.67 USD (100 / 1.5 = 66.67).

Receivables creates corresponding journal entries for this amount in both the invoice currency and your ledger currency, as illustrated in this table:

Account Debit Credit

Accounts Receivable

100 CAD [66.67 USD]

None

Sales

None

100 CAD [66.67 USD]

On JAN-31, you receive a payment of 64 EUR for Invoice 101. Your customer informs you that the entire amount (64 EUR) is a partial payment of 90 CAD for Invoice 101. The corporate conversion rate on JAN-31 is 1 USD = 1.13 EUR. When you enter the receipt information, Receivables uses this rate to calculate a receipt amount in your ledger currency of 56.64 USD (64 / 1.13 = 56.64).

When you apply the receipt to Invoice 101, Receivables displays the balance due in your ledger currency (Balance Due Base) and in the invoice currency (Balance Due), as follows:

Invoice Number Balance Due Base Balance Due Amount Applied Amount Applied Base Cross-Currency Rate Allocated Receipt Amount Allocated Receipt Amount Base Exchange Gain/Loss

101

66.67

100.00

NA

NA

NA

NA

NA

NA

Following your customer remittance information, you enter a new value of 90 in the Amount Applied field. Receivables calculates the amount applied in your ledger currency (Amount Applied Base) and updates the balance due in your ledger currency (Balance Due Base) and the invoice currency (Balance Due), as follows:

Invoice Number Balance Due Base Balance Due Amount Applied Amount Applied Base Cross-Currency Rate Allocated Receipt Amount Allocated Receipt Amount Base Exchange Gain/Loss

101

6.67

10.00

90.00

60.00

NA

NA

NA

NA

The calculations used to arrive at these amounts are:

  • Balance Due = 100 - 90 = 10 (CAD)

  • Balance Due Base = 10 / 1.5 = 6.67 (USD)

  • Amount Applied Base = 90 / 1.5 = 60 (USD)

You then enter the amount of the receipt to apply to this invoice (64 EUR) in the Allocated Receipt Amount field. Receivables uses this amount to determine the Cross-Currency Rate of 0.7111111 (64/90). Receivables then determines the Allocated Receipt Amount Base (in your ledger currency) of 56.64 USD, using the conversion rate as of the receipt date. Finally, Receivables calculates an Exchange Loss of 3.36 USD.

This is represented as follows:

Invoice Number Balance Due Base Balance Due Amount Applied Amount Applied Base Cross-Currency Rate Allocated Receipt Amount Allocated Receipt Amount Base Exchange Gain/Loss

101

6.67

10.00

90.00

60.00

0.7111111

64.00

56.64

<3.36>

The calculations used to arrive at these amounts are:

  • Cross-Currency Rate = 64 (EUR) / 90 (CAD) = 0.7111111

  • Allocated Receipt Amount = 64 (EUR) / 1.13 = 56.64 (USD)

  • Exchange Gain/Loss = 56.64 (USD) - 60 (USD) = <3.36> (USD)

Receivables creates the accounting entries as illustrated in this table:

Account Debit Credit

Cash

64 EUR [56.64 USD]

None

Foreign Exchange Loss

3.36 USD

None

Accounts Receivable

None

90 CAD [60 USD]

Apply a Receipt to Three Invoices

Your customer remits Receipt 1234 for 300 EUR and wants this receipt applied to three outstanding invoices:

  • Invoice 101 for 100 Canadian dollars (CAD)

  • Invoice 102 for 100 US dollars (USD)

  • Invoice 103 for 8000 Japanese yen (JPY)

Your customer provides remittance information, including rate information, as described in this table:

Invoice Number Date Invoice Balance Paid Amount Rate to EUR EUR Remitted

101

1-JAN

100 CAD

90 CAD

.725298

65.28

102

2-JAN

100 USD

100 USD

1.15989

115.99

103

4-JAN

8000 JPY

8000 JPY

.0086927

69.54

Activity totals:

  • Total Remitted Amount: 250.78 EUR

  • On Account: 49.22

  • Total Remittance: 300.00 EUR

After you enter and apply the receipt according to the customer remittance information, this is represented as follows:

Invoice Number Balance Due Base Balance Due Amount Applied Amount Applied Base Cross-Currency Rate Allocated Receipt Amount Allocated Receipt Amount Base Exchange Gain/Loss

101

6.67

10.00

90.00

60.00

.725298

65.28

57.14

<2.86>

102

0.00

0.00

100.00

100.00

1.15989

115.99

99.12

<0.88>

103

0.00

0.00

500.00

96.15

.0086927

69.54

94.61

1.54

On Account

NA

NA

NA

NA

NA

49.22

6.27

NA

A customer may request a refund for all or part of a previously remitted credit card receipt directly with the credit card issuer.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

Under this procedure, the credit card issuer credits the customer account for the disputed amount, deducts the amount from your merchant bank account, and notifies you that a credit card chargeback took place.

You record the credit card chargeback as a negative miscellaneous receipt. Because the customer has already received the refund directly from the credit card issuer, this negative miscellaneous receipt is used only to ensure accurate accounting and reconciliation.

To record a credit card chargeback:

  1. Ensure that you have defined a receivables activity of type Credit Card Chargeback.

  2. In the Manage Receipts page, open the credit card receipt with the chargeback request.

  3. Unapply the credit card receipt:

    • If you are unapplying the full amount, use the Unapply Application button to unapply the credit card receipt application from the transaction.

    • If you are only unapplying a partial amount, enter the new amount to apply to the transaction in the related Applied Amount field.

  4. Create the credit card chargeback. Select Create Credit Card Chargeback from the Actions menu to open the Create Credit Card Chargeback window:

    1. Enter the Credit Card Chargeback activity in the Receivables Activity field.

    2. Enter the amount of the chargeback request in the Amount field.

    3. Enter the date to use for this transaction in the Application Date field.

    4. Optionally enter details of this transaction in the Reason field.

The credit card chargeback application and corresponding negative miscellaneous receipt record the event and correct the accounting. Because there are no funds to transfer, you don't have to remit the negative miscellaneous receipt.

Note: If you later discover that the chargeback request was invalid, you unapply the credit card chargeback activity from the receipt and reapply the receipt for the full amount. This automatically reverses the negative miscellaneous receipt that was originally created when you first recorded the credit card chargeback.

Enter miscellaneous receipts to record cash received that is not related to receivables. This includes non-invoiced items, such as investments, interest, refunds, and stock sales.

Considerations for miscellaneous receipts include:

  • Distributions

  • References

  • Tax

Distributions

The receivables activity that you assign to the miscellaneous receipt determines the default distribution set and accounting. The distribution set creates the default account distributions for the entered receipt amount.

References

Use the optional Reference section to identify the miscellaneous receipt as a payment, receipt, or remittance.

This table indicates the reference type and corresponding reference number that you can use to identify the miscellaneous receipt:

Reference Type Reference Number

Payment

Check numbers recorded in Payables written from the same bank account as the remittance account entered for this receipt.

Payment Batch

Batch numbers of payment batches created in Payables that have the same bank account as this receipt.

Receipt

Receipt numbers that have the same bank account as this receipt.

Remittance

Remittance batch numbers that have the same bank account as this receipt.

Tax

If applicable, the receivables activity assigns a tax rate code to the receipt. The tax rate code is used to account for tax on miscellaneous receipts and designates the tax account to use for the tax amount.

You can update the tax rate code with another Sales or VAT tax rate code. You can update the tax rate and tax amount if the tax rate code allows changes to the tax rate.

Initiate claim investigations in Channel Revenue Management from Receivables for non-invoice related underpayments and overpayments against transactions.

Non-invoice related underpayments and overpayments can include, for example, changes in payment due to pricing errors, transportation related issues, or contractual failures.

You use the Create Claim Investigation window in the Edit Receipt page to create a claim investigation for the underpayment or overpayment recorded against the receipt that was applied to the transaction.

Settings That Affect Claim Investigations

These settings affect Channel Revenue Management claim investigations in Receivables:

  • Ensure that the corresponding setups in Channel Revenue Management are completed:

    • Manage channel settings.

    • Manage user statuses.

    • Create claim types and map them to Receivables invoices and credit memos.

    • Create claim reasons and map them to Receivables credit memo reasons.

    • Define claim sources for the Receivables settlement methods of Deduction and Overpayment.

  • Receivables System Options: Cash Processing tabbed region: Select the Enable channel revenue management integration option for the applicable business unit.

  • Claim Investigation Receivables activity type: Edit the predefined Claim Investigation Receivables activity type:

    • Enter the applicable business unit.

    • In the GL Account Source field, select Activity GL Account and enter the GL account code combination to allocate the expense or revenue for claim investigations.

  • Transaction types: Define transaction types to assign to invoices applied to the receipts that have claim investigations against them. You must enable the Allow Overapplication option on these transaction types.

  • Predefined Channel Revenue Management transaction source: This transaction source is assigned to Receivables credit memos and invoices created by the Settle Customer Claims process when a claim is settled.

    Note: Do not copy or update this transaction source.
  • Predefined Subledger Journal Entry Rule for the Event Class of Receipt and Accounting Class of Claim Investigation.

  • Application Reference Reason (APPLICATION_REF_REASON): If you want to define custom accounting rules based on the application reference reason, run the Create and Assign Subledger Sources process to make APPLICATION_REF_REASON available as a subledger application source.

How a Claim Investigation Is Initiated and Processed

When you receive payment from a customer that involves a short pay or overpayment, you create and apply a receipt to the transaction and then initiate the claim investigation.

Note: You can initiate more than one non-invoice related claim investigation on the same receipt, provided the sum of all claim investigation application amounts equals the receipt amount.

To initiate a claim investigation:

  1. In the Create Receipt page, create a standard receipt for the full transaction amount (for a short pay) or the full customer payment amount (for an overpayment).

  2. In the Edit Receipt page, apply the receipt to the transaction.

    The Unapplied Amount field displays either a negative amount for a short pay or a positive amount for an overpayment.

  3. In the Application section of the Edit Receipt page, click the Actions menu and select Create Claim Investigation.

  4. Complete the fields in the Create Claim Investigation window:

    • In the Receivables Activity field, select a Claim Investigation receivables activity defined for the business unit of the receipt.

    • The Claim Amount field is populated with the unapplied receipt amount. If necessary, modify the amount to reflect the current user underpayment or overpayment.

    • In the Application Reference Reason field, select the applicable reference reason for this claim.

      Application reference reasons are defined in Channel Revenue Management.

    • In the Customer Reason field, enter the customer reason for the claim.

    • In the Customer Reference field, enter any additional reference information related to the claim.

  5. Click OK.

  6. Click Save to save the receipt.

When you save the receipt, this initiates the claim investigation:

  • Channel Revenue Management creates a deduction or overpayment claim and assigns a claim number to the receipt.

  • You can review the claim number and claim details in the Activity section of the Edit Receipt page. The claim investigation activity is an open or unresolved credit pending investigation.

  • The claim investigation activity application is accounted using the account code combination defined in the Claim Investigation receivables activity.

Note: If you want to cancel an active claim investigation, you can either unapply the claim investigation activity or reverse the receipt. You can't cancel an active claim investigation if it is in one of these Channel Revenue Management statuses: Approval Pending, Settlement Pending, Netting in Progress, or Settled.

When a claim investigation is resolved, the claim is settled in Channel Revenue Management by running the Settle Customer Claims process for the applicable business unit.

The Settle Customer Claims process performs these steps:

  1. Creates the related Receivables transaction according to the Channel Revenue Management settlement method:

    • For a short pay:

      • Creates an on-account credit memo for the settlement amount; or

      • Applies an existing on-account credit memo or previous overpayment, or a combination of the two, belonging to the customer to the receipt to close the settlement amount.

    • For an overpayment:

      • Creates an invoice against the claim; or

      • Applies existing deductions belonging to the customer to the overpayment amount.

  2. During credit memo or invoice creation, Receivables calculates taxes according to the Oracle Tax setup on the amount passed from Channel Revenue Management as the settlement amount of the claim.

  3. Unapplies the claim investigation application on the receipt to the extent of the amount settled.

  4. Applies the transaction created by the settlement process to the receipt.

  5. If this is only a partial settlement, a child claim is created for the open claim amount and applied to the receipt. The claim investigation continues in Channel Revenue Management.

Reports for Apply Customer Payments

This topic contains summary information about the Applied Receipts Register.

Overview

The Applied Receipts Register provides information about all receipt applications that affect your customer balances.

This image shows output from the Applied Receipts
Register.
Key Insights

Review receipt applications by customer and receipt batch. The report displays all receipt applications within the specified date range regardless of check date.

Frequently Asked Questions

The following table lists frequently asked questions about the Applied Receipts Register.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Period Close

Who uses this report?

Financial Manager during period close processing.

When do I use this report?

When you need a listing of your customer applied receipts or to assist the receivables reconciliation process.

What can I do with this report?

Schedule to run as needed.

What type of report is this?

Oracle Transactional Business Intelligence

Related Subject Areas

This report uses the Receivables - Standard Receipt Application Details Real Time subject area.

Use the Applied Receipts Register to review all receipt applications that affect your customer balances.

The report includes both customer receipts and discount information. You can use this report to review receipt applications for a specific customer, receipt batch, or applied transaction number. You cannot use this report to review miscellaneous receipts.

Review how customer receipts were applied to transactions. Optionally analyze receipts requiring manual application (Application Exception Reason) to improve automated receipt applications. Use for reconciling to the general ledger when a standalone report is needed.

Selected Report Parameters

You can select receipt applications by customer and receipt batch. Specify a receipt application accounting date range to review specific information for the period. The report displays all receipt applications within the date range regardless of check date.

Application Accounting Date

The application accounting date range.

Receipt Batch Number

Select receipts by batch to review specific batches, such as lockbox batches.

Application Exception Reason

The application exception reasons indicate why a receipt application was not made automatically. If you select this parameter, the report provides a subtotal by application exception reason.

Applied Transaction Number

The transaction number that allows selection of all receipts applied to a transaction.

Report Output

The report provides customer receipt application information by business unit and application accounting date for the specified period:

  • The report displays receipt-to-receipt applications as one receipt with a positive application and the other receipt with a negative application.

  • The report displays debit memo reversal receipts as applied receipts, because the transaction is closed by the debit memo reversal receipt and a new debit memo is created for the amount of the receipt. All other receipt reversals appear on the Unapplied Receipts Register.

This table describes important columns in the output of the Applied Receipts Register.

Column Heading Description

Application Accounting Date

The accounting date of the receipt application or application reversal.

Entered Applied Amount

The receipt amount applied in the entered currency.

Earned Discount

The earned discount amount in the ledger currency.

Unearned Discount

The unearned discount amount in the ledger currency.

Accounted Applied Amount

The total amount applied in the ledger currency.

Application Exception Reason

The reason that the receipt could not be applied automatically.

This table describes important rows in the output of the Applied Receipts Register.

Row Heading Description

[Application Exception Reason] Total

The subtotal accounted applied amount by each application exception reason.

[Business Unit] Total

The subtotal accounted applied amount by business unit.

Grand Total

The total of all accounted applied amounts for the report.

Overview of the Receipts Days Late Analysis Report

This topic contains summary information about the Receipts Days Late Analysis Report.

Overview

The Receipts Days Late Analysis Report helps you review the timeliness of your customer payments.

This image shows output from the Receipts Days
Late Analysis Report.
Key Insights

The report provides details of receipt applications against customer transactions for the period you specify.

Frequently Asked Questions

The following table lists frequently asked questions about the Receipts Days Late Analysis Report.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Receivables Balances

Who uses this report?

Financial Manager when analyzing late payments.

When do I use this report?

To review the timeliness of your customer payments, including weighted days late calculation, which indicates the cost to you of overdue payments.

What can I do with this report?

Schedule as needed.

What type of report is this?

Oracle Business Intelligence Publisher

Receipts Days Late Analysis Report

Use the Receipts Days Late Analysis Report to review the timeliness of your customer payments. The report provides details of receipt applications against customer transactions for the period you specify.

The report includes, for each customer payment, both transaction details and receipt application details. Receipt information includes the number of days late, if any, that payment was received based on the due date, and the calculated cost to you of a late payment.

Run this report according to your customer account review business process.

Report Output

The output provides a separate section for each customer account, and a subsection for each transaction entered currency within the customer account. Payment information within each subsection is sorted by transaction number and includes the amount of the application, the receipt number, and the days late (payments made in advance are displayed as a negative number).

The report provides totals for each entered currency per customer account. The totals include a count of average days late that payment was received and a calculation of the cost to you of past due items. The report does not include any grand totals, as it does not report in the ledger currency.

Row Headings
Average Days Late

The average number of days late for receipts by customer and currency.

Average Days Late = Sum of Days Late / Total Number of Receipts
Currency:

The transaction entered currencies used by each customer account.

Weighted Average Days Late

The weighted average days late for receipts within the date range by customer and currency. Use the weighted average days late to see the average amount that past due debit items cost you.

Weighted Average Days Late = Sum of Weighted Days Late / Total Amount Paid

Overview of the Unapplied Receipts Register

This topic contains summary information about the Unapplied Receipts Register.

Overview

The Unapplied Receipts Register lets you review detailed information about customer unidentified, on-account and unapplied payments. This information more accurately indicates how much a customer actually owes you.

This image shows output from the Unapplied Receipts
Register.
Key Insights

The report groups receipts by receipt batch and customer, and provides separate totals by business unit for on-account, unapplied, and unidentified receipts in the ledger currency, and a grand total for the report.

Frequently Asked Questions

The following table lists frequently asked questions about the Unapplied Receipts Register.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Period Close

Who uses this report?

Financial Manager during period close processing.

When do I use this report?

  • When you need a listing of your customer unapplied receipts.

  • To assist the receivables reconciliation process.

What can I do with this report?

Schedule as needed.

What type of report is this?

Oracle Transactional Business Intelligence

Related Subject Areas

This report uses the Receivables - Standard Receipt Application Details Real Time subject area.

Unapplied Receipts Register

Use the Unapplied Receipts Register to review detailed information about customer unidentified, on-account and unapplied payments by business unit and accounting period. Information about customer on-account and unapplied payments more accurately indicates how much a customer actually owes you.

The Unapplied Receipts Register excludes receipts applied to activities that do not affect the customer balance, such as receipt write-offs, short-term debt, and credit card refunds. For example, when you create a credit card refund, it is the credit memo associated with the refund that affects the customer balance (this is reported in the Transaction Register). The report also excludes miscellaneous receipts.

Run the Unapplied Receipts Register according to your customer account review requirements. You can also use this report to assist with reconciliation to the general ledger when a standalone report is needed.

Selected Report Parameters
Accounting Date

The accounting date range to include in the report.

Receipt Currency

Confine the report to one receipt currency.

Receipt Batch Number

Confine the report to a specific receipt batch, such as a lockbox batch.

Application Status

Confine the report to Unapplied, On-account or Unidentified receipts.

Report Output

The report groups receipts by receipt batch and customer, and provides separate totals by business unit for on-account, unapplied, and unidentified receipts in the ledger currency, and a grand total for the report.

This table describes the report headings in the Unapplied Receipts Register.

Report Heading Description

Receipt Entered Amount

The amount of the receipt in the receipt currency.

Transaction Currency

The currency of the receipt.

Transaction Accounted Amount

The accounted amount of the receipt in the ledger currency.

[Business Unit] Total

Separate total accounted amounts for on-account, unapplied, and unidentified receipts.

Grand Total

Total for the report.

Use the Write-off Unapplied Receipt Balances Report to review a run of the Create Automatic Receipt Write-offs program. You can also generate the report without creating actual write-off entries to review the results of a proposed program run.

Both the manual and automatic write-off processes initiate the Create Automatic Receipt Write-offs program to process the writing off of unapplied receipt amounts. The program validates both the data that you enter and your write-off approval limit, selects the records to write off, then creates the accounting entries and updates the receipt balances.

If the value that you enter in the Unapplied Amount or Unapplied Amount Percentage parameter exceeds your write-off approval limit, then the program run ends with no data found.

The report provides separate receipt and write-off totals for each customer and customer account, and final totals for the program run.

Use the Write-off Unapplied Receipt Balances Report as part of your customer account review process.

Selected Report Parameters
Receipt Currency

The currency of the receipts that you want to write off. Only receipts with the currency you enter are eligible for write-off.

Unapplied Amount

The maximum amount that you can write off. The program selects receipts with unapplied amounts less than or equal to this value that meet the other selection criteria.

Unapplied Amount Percentage

The percentage of unapplied amount against the original receipt amount that you can write off. For example, if you want to write off receipts with an unapplied balance of 5% or less of the original receipt amount, then enter 5.

Receipt Method

Enter a receipt method to limit the selection of receipts to this receipt method only.

Receipt Number

The number of a specific unapplied receipt that you want to write off. If you specified a receipt method, a customer name, or a customer account number, then you can only select a receipt number belonging to this customer or receipt method.

Create Write-offs
  • Generate Report Only: Generate a report without performing the write-off to review the receipts to be processed using your selection criteria.

  • Create Write-off: Submit the Create Automatic Receipt Write-offs program to write off receipts according to your selection criteria, and generate the Write-off Unapplied Receipt Balances Report.

Write-off Receivables Activity

The receivables activity that determines the general ledger account to use to credit the write-offs.

This parameter is required if you set the Create Write-offs parameter to Create Write-off.

Application Date

The application date of the write-off to apply to all of the selected receipts.

Accounting Date

The accounting date of the write-off to apply to all of the selected receipts. The date is validated during the program run to ensure that it is in an Open or Future Open period.

FAQs for Apply Customer Payments

The transaction type of the debit item to which you are applying the receipt is used to validate the application amount. If the transaction type allows overapplication, then you can apply a receipt to a closed debit item.

If the transaction type allows natural application only, then you can't enter an amount that would reverse the sign of the debit item. In this case, you can only enter an amount that brings the balance due closer to zero.

Can I apply payments from a customer site to transactions of the same site?

Yes, you can search for transactions by bill-to site to apply to receipts. In the Edit Receipt page, click the Add Open Receivables button to open the Search and Select window. Use the Bill-to Site field to filter customer transactions by bill-to site.

Because transaction adjustments created after receipt application no longer apply when you change the receipt.

For example, you apply a $99 receipt to a $100 invoice, then you adjust the remaining $1 to close the transaction. If you later change the receipt application, either by unapplying the receipt, reversing the receipt, or changing the applied amount on the receipt, this reverses the adjustment on the transaction.

If necessary, you can retain the original adjustment record by creating a new adjustment in the transaction or in receipt details.

Can I credit receipts against the transactions of other business units?

No, Receivables only considers on-account and unapplied receipts as credit against open balances for business units that are set up to process both transactions and receipts.

The application rule set assigned to the transaction type of the debit item determines how to reduce the open line, tax, freight, and late charge amounts for both receipt and on-account credit memo applications. If there is no application rule set assigned to the transaction type, the application process uses the application rule set assigned to Receivables system options.

An application rule set uses these application rules:

  • Line First - Tax After: Apply the receipt to the open line item amount first. Apply any remaining receipt amount in the following order: tax, freight, late charges.

  • Line and Tax Prorate: Apply a proportionate amount of the receipt to the open line item amount and the open tax amount for each line. Apply any remaining receipt amount to freight first and then to late charges.

  • Prorate All: Apply a proportionate amount of the receipt equally to the line, tax, freight, and late charges.

Use transaction recommendations with lockbox receipts and manual receipts. Receivables recommends one or more transactions for receipt application, with what it considers the closest match displayed first. You can select any of the recommended transactions that you want to apply to the receipt up to the receipt amount.

Use customer recommendations with lockbox receipts that contain invalid customer information. Receivables provides a list of customers for you to select one for the receipt.

If you apply a receipt that doesn't contain customer information to a transaction, Receivables updates the receipt with the customer information on the transaction.

Exception trends monitor manual receipt applications. In many cases, Receivables matches receipts to transactions automatically and successfully applies the receipts.

When customer payments are not fully applied to open debit items, you must review the unapplied amounts and apply receipts manually to complete the payment process. You can add an exception reason that explains why a manual receipt application was necessary, for example, an invalid invoice number was used. You use the Exception Reason lookup type to define lookup codes for your exception reasons.

The Exception Trends table in the contextual pane tracks for each customer the exception reasons that were used to mark manual receipts and the number of occurrences of each exception.

First unapply the original receipt applications, and then apply the receipt to the new transactions that you want. You can reapply both automatic and manually entered receipts before or after posting to general ledger.

Unapplying a receipt reopens each transaction or transaction line that was previously closed by the receipt. Receivables enters a reversal accounting date for each transaction or transaction line reopened. The reversal accounting date, which is the date to post this reapplication to general ledger, is the same as either the accounting date of the original application or, if the original application accounting date is in a closed period, the system date. If the system date is not in an open period, the default is the last date of the most recent open period.

You can't unapply a receipt that has adjustments associated with it unless you first readjust the transaction to its original amount. In addition, you can't unapply a receipt if there is a chargeback against the transaction and this chargeback has activity against it, for example, another receipt or credit memo.

You can unapply a receipt that was applied to another open receipt, provided that neither receipt is drawn negative by unapplying it.

Use chargebacks to create a new debit item for your customers when closing an existing debit item. You can also create a chargeback against a credit memo or on-account credit with a positive balance.

For example, a customer sends a payment of $75 for a $100 invoice. You apply the receipt to the invoice, and create a chargeback for the balance due. If the transaction types assigned to the transaction and to the chargeback allow overapplication, you can enter a chargeback amount greater than the original balance due.

You can edit a chargeback transaction like any other transaction on the Edit Transaction page.

A chargeback closes an existing debit item and creates a new debit item for a customer. A chargeback is an open receivable applied to a customer balance.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

A credit card chargeback is a negative miscellaneous receipt that records a transaction between a credit card issuer and a cardholder. The credit card issuer credits the customer account for a disputed amount, and deducts the amount from your bank account. The negative miscellaneous receipt, or credit card chargeback, is created to ensure accurate accounting and reconciliation for these transactions.

Manage Automatic Receipts

Use the automatic receipt process to create a batch of receipts from selected customer transactions for payment by credit card or bank account transfer.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

You use automatic receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time for open debit items by transferring funds from the customer bank account or credit card to your bank account on the receipt maturity date. If necessary, the customer can confirm the automatic receipt batch before transferring funds.

After an automatic receipt batch is created, you can reapply and reverse automatic receipts in the same way as manual receipts. To reverse an automatic receipt, it must be approved.

Settings That Affect Automatic Receipts

These Receivables settings pertain to the process of automatic receipts:

  • Receipt Class: Use these settings for the receipt class of the receipt method assigned to each transaction:

    • Creation method of Automatic.

    • Set the Require confirmation option if the automatic receipts must be confirmed by the customer.

  • Receipt Method: Use these settings for the receipt method assigned to each transaction:

    • Receipts inherit transaction numbers option: Enable this option to assign the automatic receipt the number of the transaction to which it is applied. Don't set this option if you want to assign a document number to each automatic receipt.

    • ISO direct debit option: Enable this option if you intend to create automatic receipts that automatically debit a customer bank account according to the standards of ISO 20022 direct debit. You must create a debit authorization agreement with your customer to set up automatic receipts for ISO direct debit.

    • Number of Receipts Rule: Rule that determines the number of receipts to create from the transactions contained in the batch.

    • Receipt Maturity Date Rule: Rule that assigns the maturity date to the automatic receipt. The maturity date is the date to transfer funds from your customer bank or credit card to your remittance bank account.

      The rule uses either the Earliest or the Latest due date of all the selected transactions applied to the receipt as the receipt maturity date.

    • Lead Days: The number of days before the transaction due date that a transaction is eligible for automatic receipt selection. Set the lead days to a high value for:

      • Automatic receipts that require confirmation. This allows for the additional time required to send the receipts to your customer and for the customer to confirm them.

      • Factored receipts. Factored receipts are often remitted long before their maturity date.

    • Customer Payment Method: Enter the payment method that the customer uses to remit payment to you.

  • Document sequences: If you are using document sequences:

    • In the Sequencing section of the Specify Options page of your primary ledger, set the Sequencing By option to Ledger or Legal Entity.

    • Optionally enable the Enforce Document Sequencing option for Receivables.

    • Define an automatic document sequence and assign this sequence to the document category associated to the receipt method you plan to use for automatic receipts. The document category is automatically created when you create a receipt method.

    Note: If the receipt method has the Receipts inherit transaction numbers option enabled, and the Number of Receipts Rule is One per Invoice, then document sequences are not used. Instead, Receivables uses the transaction numbers as the receipt numbers.
  • Transactions to include in the automatic receipt batch:

    • Receipt Method: All transactions must have the same receipt method as the automatic receipt batch.

    • Customer payment information: All transactions must have defined both a paying customer and payment instrument information.

  • Customer account or site to include in the automatic receipt batch:

    • Payment Details: Define payment details, including the payment instruments the customer uses.

    • Primary receipt methods and payment instruments: Depending on the preferred payment method of the customer, designate on the customer or site profile one of the credit card or bank account transfer receipt methods as Primary, and designate a credit card or bank account payment instrument as primary.

    • AutoReceipts include dispute items option: Use this option on the customer or site profile to determine whether to include open items in dispute during transaction selection.

    • Minimum Receipt Amount field: Use this field on the customer or site profile to define an amount in the batch currency below which the program won't generate automatic receipts.

  • Automatic Receipts Receipt Source: Enter a value in the Batch Number Starts After field. Automatic receipt batch numbering begins after the number that you enter, for example, if you enter 1000, the first automatic receipt batch created is numbered 1001.

  • Conversion Rate Type profile option: If you are using automatic receipts to pay foreign currency transactions, then set this profile option to a value other than User to convert to the ledger currency.

  • Remittance Bank Account:

    • Define a remittance bank account for the batch receipt method in the batch currency.

    • Minimum Receipt Amount field: Enter an amount below which the program won't generate automatic receipts.

    Caution: The automatic receipt process compares the remittance bank account and customer profile class minimum receipt amounts and uses the larger of the two when creating automatic receipts. If both amounts are greater than the receipt total, then the program doesn't create an automatic receipt batch.

How Automatic Receipts Are Processed

Complete all of these steps to prepare and process automatic receipts:

  1. Prepare transactions. Ensure that each transaction that you want to include in the batch has paying customer information and is assigned the appropriate receipt method (credit card or bank account transfer) that you want to use for automatic receipts.

  2. Select transactions and create the batch. Considerations for transaction selection include:

    • You can enter a range of credit card numbers in the Customer Bank Account fields to create automatic receipts for transactions marked for payment by credit card.

    • Receivables checks the customer profile to determine whether to include transactions in dispute.

    • Receivables compares the transaction due date to the batch date and batch lead days to determine whether a transaction is eligible for automatic receipts. The difference between the batch date and transaction date must be less than or equal to the number of lead days.

    • The transaction total must be greater than or equal to the larger of the two minimum receipt amounts (in the remittance bank account or customer profile) in order to create an automatic receipt batch.

  3. Submit the batch. Receivables creates receipts, according to the receipt rule on the receipt method, to close out all completed transactions that meet the selection criteria.

  4. Review and approve the batch. You can update, delete, and approve the receipts that were created by the batch.

    If you are processing credit card payments, the approval process sends the receipt batch to Payments for credit card authorization. If authorization is successful, then Payments assigns an approval code to each transaction and the corresponding receipt is approved. If authorization is not successful, then the receipt is rejected from the batch.

    Note: A receipt can fail authorization if, for example, the credit card number is invalid, the payment amount exceeds the cardholder credit limit, or the card has been reported lost.
  5. Confirm the batch. If necessary, send the automatic receipt batch to your customer for confirmation.

  6. Remit receipts. Remit the receipts to your bank:

    • If you are processing credit card payments, then the remittance process requests transfer of funds from the credit card issuer to your bank.

    • If you are processing bank account transfers, then the remittance process requests transfer of funds from the customer bank account to your bank.

You use the automatic receipt process for customers that have agreed to payment collection on a regular basis.

When you create an automatic receipt batch, the process applies receipts to customer transactions and transfers funds from the customer bank account or credit card to your bank account on the receipt maturity date.

This topic provides additional information about the following aspects of the automatic receipt process:

  • Discounts and Automatic Receipts

  • Start and End Date Ranges

  • Remittance Bank Information

  • Document Sequences

  • Bill-to Sites and Automatic Receipts

  • Payment of Related Transactions

  • Automatic Receipts System Options

Discounts and Automatic Receipts

You wouldn't normally use discounts with automatic receipts, because the concept of early payment doesn't apply. You and the customer decide the receipt maturity date in advance, and the automatic receipt process transfers funds from the customer bank account or credit card on that date only.

You can calculate earned discounts on payments for automatic receipts that don't require confirmation, if you set up payment terms with the transaction due date equal to the discount date. For example, if the payment terms specify that a transaction is due 30 days after the transaction date, create a percentage discount for 30 days after the transaction date. This identifies the 30-day period as a discount period.

You can't use discounts with automatic receipts that require confirmation by the customer. Alternatively, you can define an Earned Discount receivables activity and create an adjustment to reduce the balance on transactions by the discount amount. You then charge the adjusted amount to this receivables activity discount account.

Start and End Date Ranges

Many of the setup objects used in automatic receipt processing have start and end date ranges, such as receipt methods, remittance bank accounts, and customer bank accounts. Date ranges determine which objects display in lists of values.

You must ensure that the setup objects used in automatic receipts do not contain inconsistent or overlapping date ranges.

For example, if you assign a receipt method with a date range of 01-SEP-18 to 30-SEP-18 to one of your customers, you can't choose this receipt method if you enter an invoice for this customer on 01-OCT-18.

Remittance Bank Information

The automatic receipt process assigns one of your remittance bank accounts to each receipt created by the payment of a customer open debit item.

Remittance bank account information includes the general ledger accounts used during receipt application.

The automatic receipt process usually assigns to the receipt the primary remittance bank account associated with the receipt method and currency of the transaction. The one exception to this is if a non-primary remittance bank account belonging to the same receipt method uses the same currency as the customer bank account. In this case, the automatic receipt process uses this remittance bank account instead.

This matching of your remittance bank account to a customer bank account in the same currency helps you both to avoid bank charges and to expedite funds transfer.

You can update remittance bank information for an automatic receipt under these conditions:

  • Receipt status is Confirmed.

  • Unapplied and On-Account general ledger accounts of the remittance bank are the same account.

Document Sequences

If you plan to assign a unique document number to each automatic receipt, you must enable document sequencing at the appropriate ledger or legal entity level.

To enable document sequencing:

  • At the ledger level: Set the Sequential Numbering profile option to Always Used or Partially Used.

  • At the legal entity level: In the Sequencing section of the primary ledger options setup, set the Sequencing By option to Legal Entity, and set the enforce options according to your requirements.

To set up document sequencing for automatic receipts:

  • Ensure that a document category is created for each receipt method assigned to transactions selected for automatic receipt application.

  • Assign each applicable document category a document sequence with automatic numbering.

Bill-to Sites and Automatic Receipts

Use the Require billing location for receipts Receivables system option to determine whether Receivables creates an automatic receipt for a customer without a primary bill-to site:

This table indicates the effect of setting or not setting the Require billing location for receipts Receivables system option for automatic receipts:

Option Primary Bill-to Site? Create Automatic Receipt?

No

No

Yes, without a bill-to site

Yes

No

No

  • If the system option is set to No and the customer doesn't have a primary bill-to site defined, Receivables creates the automatic receipt without assigning a bill-to site.

  • If the system option is set to Yes and the customer doesn't have a primary bill-to site defined, Receivables doesn't create the automatic receipt.

Payment of Related Transactions

If you use customer selection criteria for an automatic receipt batch, the process searches for transactions with a matching paying customer, rather than the bill-to customer. The paying customer is the customer associated with the customer bank account assigned to the transaction. This customer may differ from the bill-to customer if, for example, you want a primary customer to pay for related transactions.

If you want one customer to pay for transactions billed to another customer, you must do one of the following tasks:

  • Enable the Allow payment of unrelated transactions Receivables system option.

  • Define a paying relationship between the two customers.

Then, when entering or updating transactions for automatic receipt processing, you must enter the bill-to customer name and site, and the paying customer bank information.

Automatic Receipts System Options

You use the Automatic Receipts section of the Cash Processing tab of Receivables system options to set up automatic receipts for your business unit.

Use the Receipt Confirmation Threshold Amount field to set a value agreed upon with your customers to automatically confirm automatic receipts. An automatic receipt batch with a total amount below the value you enter doesn't require confirmation.

Use the Invoices per Commit and Receipts per Commit fields to enter values large enough to avoid intermediate saves in the program. Enter values that can handle your largest automatic receipt and remittance batches.

To help determine the values to use, refer to the end of the log file of your largest automatic receipt batch and remittance batch to see the number of receipts marked for the batch. You can later reduce these numbers if you run out of rollback segments.

Approve a batch of automatic receipts to verify that the batch contains all of the receipts that you want. You can approve an automatic receipt batch that has a status of Creation Completed or Started Approval.

You can update the automatic receipt batch before you approve it, as long as there are no concurrent processes for creating or approving this batch that are either running or pending.

You can remove transactions from the batch. Transactions that you remove are available for selection the next time you submit the automatic receipt creation program. If applicable, you can also update conversion rate information.

You can delete an automatic receipt batch that has the status Creation Completed without approving it. When you delete a batch, all of the transactions in the batch become available for selection the next time you submit the automatic receipt creation program.

You can update the bank name, bank branch, and customer bank account associated with each of the transactions in the batch. Updates to bank information are limited to selecting a new customer bank or bank account for a transaction that is assigned to either this customer or the primary customers of this customer. In addition, this bank must have a bank account in the same currency as the automatic receipt batch.

Once you approve the batch, Receivables creates the automatic receipts that don't require confirmation according to the Number of Receipts Rule on the receipt method and closes the transactions they are paying.

Note: Receipts that require confirmation close transactions only when they are confirmed by the customer.

When you remit an approved automatic receipt batch, your remittance bank uses the batch maturity date to determine when to transfer the funds from your customer bank account to your remittance bank account. Receivables uses the Receipt Maturity Date Rule on the receipt method to determine the maturity date on the approved receipts.

Confirm automatic receipt batches to indicate that your customer has reviewed each receipt and agrees that the payment information is correct.

Depending on the agreement you have with your customer, certain types of automatic receipts require confirmation from your customer before they can be considered payments and remitted to the bank. Once your customer approves these receipts, you can make any necessary changes, then confirm the receipts.

When a customer confirms the automatic receipt batch, they may provide a confirmation number for each receipt. Enter this number in the available reference or comment field. This number is passed to your remittance bank, which can then forward it to the customer bank. This helps your customers to reconcile their accounts.

If the receipt class of the receipt method assigned to an automatic receipt or automatic receipt batch requires confirmation, you must confirm the receipt or receipt batch once it has been approved by your customer. Receipts that require confirmation automatically close the invoices for which they were created when you confirm them. After confirming the automatic receipt batch, you can create a remittance batch to initiate the transfer of funds for each receipt.

You can make these updates to an automatic receipt batch before you confirm it:

  • Transactions selected to apply to the receipt.

  • Conversion rate information.

  • Receipt maturity date.

  • Your remittance bank.

  • Customer bank account information.

You can only change the approved amounts for your receipt applications if the receipt isn't confirmed. Once confirmed, Receivables automatically applies the receipt and updates the balance of the transactions to which it is applied.

To automatically reverse receipts in a settlement batch, you must map the ISO rejection codes to a reversal category. This mapping is used to derive the reason for reversing a receipt.

Use the Manage Reversal Reason to Category Mappings setup task to map the ISO rejection codes with the corresponding reversal categories.

Configure ISO Rejection Codes as Reversal Reasons

Before you begin, ensure that the ISO codes appear in the Reversal Reason list on the Manage Reversal Reason to Category Mappings page. Define the ISO codes as lookups of the CKAJST_REASON lookup type.

To configure ISO rejection codes as reversal reasons:

  1. Navigate to Setup and Maintenance.

  2. Search for the Manage Receivables Lookups task.

  3. Click the Go to Task icon.

    The Manage Receivables Lookups page appears.

  4. Enter CKAJST_REASON in the Lookup Type box and click the Search button.

  5. Click the Add Row icon that appears on the Financials Generic Lookup Type: CKAJST_REASON table.

  6. Enter the ISO rejection code in the Lookup Code box.

  7. Enter the meaning and description for the rejection code in the Meaning and Description boxes.

  8. Click the Enable box so that the rejection code appears as the reversal reason on the Manage Reversal Reason to Category Mappings page.

  9. Repeat steps 5 through 8 to configure other ISO rejection codes.

  10. Click the Save and Close button when you complete configuring all the ISO rejection codes.

Map Rejection Codes to Reversal Categories

To map the ISO rejection codes to reversal categories:

  1. Navigate to Setup and Maintenance.

  2. Search for the Manage Receivables Reversal Reason to Category Mappings task.

  3. Click the Go to Task icon.

    The Manage Reversal Reason to Category Mappings page appears.

  4. Click the Add Row icon.

  5. Select the ISO rejection code from the Reversal Reason list.

  6. Select the category from the Reversal Category list.

  7. Click the Enabled box to enable the mapping between the reversal reason and reversal category.

  8. Enter the Payment Standard, identifier of the established standard that is associated with the reversal reason.

  9. Repeat steps 4 to 8 to map other ISO rejection codes.

  10. Click the Save and Close button when you complete mapping all the ISO rejection codes.

Use the Automatic Receipts Reversal process to identify the rejected settlements in a settlement batch and reverse the corresponding receipts. The process only reverses automatic receipts, not manual receipts.

Settings That Affect Reversal of Automatic Receipts

Before you can reverse automatic receipts in a settlement batch, you must map the ISO rejection codes to a reversal category. This mapping is used to derive the reversal category for reversing the receipt.

Use the Manage Reversal Reason to Category Mappings setup task to map the ISO rejection codes with corresponding reversal categories.

How Receipts are Reversed

When a bank can't process an automatic remittance of a record, the record is sent back for reversal. The returned record consists of two bank files:

  • Reversal file - pain message 002.001.03. This message provides technical details of the reversals that are needed to reverse a receipt.

  • Bank statement files CAMT-053.

The following steps outline the reversal process:

  1. The Retrieve Funds Capture Acknowledgments process in Payments processes the pain message and sends information on the rejected receipts to Receivables.

  2. The Automatic Receipts Reversal process receives the information on the rejected receipts and looks for the mapping between the rejection code and reversal category.

  3. If a mapping exists for the rejection code, the corresponding receipt is reversed. If a mapping doesn't exist, the status of the corresponding receipt is set to Confirmed.

  4. To reverse receipts that are set to Confirmed, you must define the mapping and run the Automatic Receipts Reversal process to reverse the corresponding receipts.

    Note: Reconciled receipts aren't reversed by the Automatic Receipts Reversal process. You must manually unreconcile the receipts before reversing them.
  5. After the Automatic Receipts Reversal process completes, the Reversal Status Report is generated. Use the report to review the automatic receipt reversals processed in a settlement batch. The report displays details of the:

    • Receipts that are reversed along with the reversal reason

    • Receipts that aren't reversed and the reason they weren't reversed

  6. The report is automatically run after the Automatic Receipts Reversal process. However, you can also run the report manually.

Use the Create Automatic Receipt process to create receipts for tokenized credit card transactions.

Note: Credit card services are currently not available in Oracle Cloud implementations.

You import tokenized credit card transactions using AutoInvoice. Once the transactions are successfully imported into Receivables, you can prepare transactions for receipt creation. Review and if necessary complete these tasks:

  • Create a credit card automatic receipt method.

  • Review imported transactions.

  • Create automatic receipts and remittance.

Create a Credit Card Automatic Receipt Method

Create an automatic receipt method for processing tokenized credit card transactions and enter this receipt method in the AutoInvoice Import template. The receipt method is assigned to tokenized credit card transactions during import.

Important settings include:

  • Receipt Class: Use the Creation Method Automatic. This exposes the Automatic Processing tab when you create the receipt method.

  • Receipt Method: Number of Receipts Rule: If you are importing tokenized credit card transactions with authorization, you can only use the Number of Receipts Rule One per Invoice to group transactions. If you are importing tokenized credit card transactions without authorization, then you can use any rule.

  • Receipt Method: Receipt Maturity Date Rule: Select the Receipt Maturity Date Rule Earliest.

  • Receipt Method: Customer Payment Method: Select the Customer Payment Method Credit Card.

Review Imported Transactions

Use the Review Transaction page to open and review your imported tokenized credit card transactions.

Review these actions:

  • If the imported transaction includes authorization, then you can't update the receipt method or credit card information.

  • If the imported transaction doesn't include authorization, then you can update the receipt method or credit card information.

  • If the credit card security code was required to process the transaction, then you can't update the receipt method or credit card information.

  • Review and, if necessary, update the paying customer assigned to the transaction.

Create Automatic Receipts and Remittance

Use the automatic receipt process and the Create Automatic Receipt Batch page to create receipts for your imported tokenized credit card transactions. Use the Create Receipt Remittance Batch page to remit receipts to the bank.

Considerations for automatic receipts and remittance include:

  • Automatic Receipt Method: Ensure that all transactions are assigned the credit card receipt method that you will use for the automatic receipt batch.

  • Paying Customer: Ensure that all transactions are assigned the same paying customer during automatic receipt processing.

  • Fully Applied Receipts: Ensure that receipts are fully applied before creating the remittance batch.

FAQs for Manage Automatic Receipts

Yes, if the customer remits a manual document for a transaction that was supposed to be paid by automatic receipt, you can manually enter this as a standard receipt. You must select a receipt method assigned to a receipt class that has a creation method of Automatic.

Receivables treats this receipt like any other automatic receipt. When you remit the receipt to the bank, the funds are transferred from the customer bank account to your bank account.

Because the transaction doesn't have the appropriate settings. An automatic receipt batch can only include complete transactions that contain customer payment details and have a receipt method belonging to a receipt class with an Automatic creation method. This applies to both imported and manually entered transactions.

If necessary, update the transactions that you want to include in the automatic receipt batch with customer payment information and the appropriate receipt method.

No, you can't unconfirm an automatic receipt after you confirm it. If you confirm a receipt in error, you need to reverse and then recreate the receipt.

Once you confirm an automatic receipt, the transactions closed by this receipt can no longer be selected for automatic receipt creation. However, transactions with a remaining balance due can be included in a subsequent automatic receipt batch.

An option that creates automatic receipts that debit a customer bank account according to the standards of ISO 20022 direct debit.

You must create a debit authorization agreement with your customers to set up automatic receipts for ISO direct debit.

ISO direct debit is for payment by bank transfer only. The ISO 20022 direct debit process doesn't use the Number of Receipts Rule, but instead creates and applies a receipt against customer open receivables and transfers funds from the customer bank account to the remittance bank account defined on the automatic receipt method.

In accordance with ISO 20022 standards, the Create Automatic Receipt process sends the customer a prenotification message five days in advance with the amount and date of the proposed direct debit. The prenotification message gives the customer time either to ensure the necessary funds are available or to reject the proposed debit.

Reverse Receipts

Reverse a receipt when your customer stops payment on a receipt or if a receipt comes from an account with insufficient funds.

Considerations for reversing receipts include:

  • Receipts Eligible for Reversal

  • Receipt Reversal Process

  • Reversal Categories and Reasons

Receipts Eligible for Reversal

You can reverse these types of receipts:

  • Invoice-related receipts.

  • Miscellaneous receipts.

  • Credit card refund (negative miscellaneous) receipts.

  • Receipts that are part of a batch.

  • Receipts that were applied to open receipts, provided that neither receipt is drawn negative by the reversal.

Receipt Reversal Process

When you reverse a receipt, Receivables automatically creates reversal journal entries in the general ledger and reopens all of the debit and credit items that were closed by the receipt.

You can reverse a receipt that was applied to transactions with adjustments or chargebacks, provided the adjustments and chargebacks haven't posted to general ledger.

Note: If a chargeback posted to general ledger, then you must create a debit memo reversal instead.

Reversal Categories and Reasons

The reversal categories are used to identify the reversal for further processing. For example, use the Credit Card Refund Reversal category for reversing a credit card refund miscellaneous receipt. Use the Reverse Payment category for receipts with incorrect data entry.

The reversal reasons are user-defined reference information that describe why a particular category of reversal took place.

Use debit memo reversals when you need to reverse a receipt, but you want to maintain the link between the billing activity and the payment. When you create a debit memo reversal, Receivables reverses the receipt, but doesn't update any of the receipt activity associated with the original receipt.

Debit Memo Reversal Process

A debit memo reversal is different from a standard reversal because, instead of reopening the debit and credit items that were closed with the original receipt, Receivables creates one new receivable in the amount of the net of the closed debit and credit transactions. As a result, the reversed receipt shows the transaction as still applied.

You must create a debit memo reversal under each of these circumstances:

  • You are reversing a receipt from which you have created a chargeback, and this chargeback has had activity against it, such as another receipt, a credit memo, or an adjustment.

  • You are reversing a receipt with a remitted credit card refund application.

  • You are reversing a receipt (Receipt A) that was applied to another receipt (Receipt B), if the reversal would draw the balance of Receipt B negative.

Note: You can't create a debit memo reversal for a miscellaneous receipt.

Debit Memo Transaction Type for Debit Memo Reversals

To create a debit memo reversal, you enter a debit memo transaction type. The debit memo transaction type provides the default receivable account distribution for the new debit item.

If the receipt that you are reversing uses a receipt method with the Debit Memos Inherit Receipt Number option enabled, you can control whether the debit memo has the same transaction number as the original receipt. If the Debit Memos Inherit Receipt Number option is not enabled, Receivables uses the predefined Debit Memo Reversal transaction source to determine the numbering for the debit memo reversal.

If you are using manual document numbering, enter a unique document number for this reversal. If you are using automatic numbering, Receivables assigns a unique document number to the new debit memo.

When you create a debit memo reversal, Receivables generates the line item from the predefined memo line. Receivables creates this line on the debit memo:

Debit memo for reversal of payment {PAYMENT_NUMBER}

where {PAYMENT_NUMBER} represents the original receipt number.

Accounting Entries for Debit Memo Reversals

When you create a debit memo reversal, Receivables creates the accounting entries on the new debit memo transaction rather than on the original receipt. This ensures that you don't make duplicate entries, and eliminates the need for a clearing account.

With regular debit memos, AutoAccounting creates both the receivable and revenue account distributions. With debit memo reversals, the debit memo transaction type provides the receivable account distribution, and the cash account on the receipt is used as the revenue account distribution.

The cash account used depends on the status of the receipt at the time of the creation of the debit memo reversal. For example, if the receipt was remitted, then the cash account is the same as the remitted account assigned to the receipt method of the receipt.

When you create a debit memo reversal, Receivables creates these two entries:

  1. The first entry decreases the cash account.

    Receivables already recognized revenue on the original transaction. To avoid overstating the cash and revenue accounts, Receivables doesn't create an additional entry to revenue but instead assigns the cash account to the revenue line on the debit memo.

  2. The second entry creates the new receivable.

    When the original receipt was applied, Receivables closed the transactions and their associated receivables. You must therefore establish a new receivable to track the new debit item.

Reports for Reverse Receipts

Overview of the Reversed Receipts Report

This topic contains summary information about the Reversed Receipts Report.

Overview

The Reversed Receipts Report lets you review receipt reversals by reversal date and remittance bank.

This image shows output from the Reversed Receipts
Report.
Key Insights

The report displays results and total receipts by bank, customer or reversal reason. You can optionally review specific receipts according to the parameters that you specify.

Frequently Asked Questions

The following table lists frequently asked questions about the Reversed Receipts Report.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Receivables Balances

Who uses this report?

Financial Manager when analyzing causes of reversals.

When do I use this report?

To review receipt reversals by reversal date and remittance bank, and categorize by stop payments, insufficient funds, and receipts entered in error.

What can I do with this report?

Schedule as needed.

What type of report is this?

Oracle Transactional Business Intelligence

Related Subject Areas

This report uses these subject areas:

  • Receivables - Standard Receipt Application Details Real Time

  • Receivables - Miscellaneous Receipts Real Time

Use the Reversed Receipts Report to review receipt reversals by reversal date and remittance bank. You reverse receipts when your customer stops payment or when a payment comes from an account with non-sufficient funds.

Display results and total receipts by bank, customer or reversal reason. Optionally review specific receipts by type, bank account, customer account number, reversal category or entered currency.

Use this report in conjunction with your customer payment processes.

Selected Report Parameters
From/To Reversal Date

The range of receipt reversal dates to include in the report.

Reversal Category

Review receipt reversals for this reversal category only.

Reversal Reason

If you selected a reversal category, review receipt reversals for this reversal reason within a reversal category only.

Receipt Type

Standard or Factoring.

Debit Memo Reversal Number

If reviewing debit memo reversals, enter the debit memo reversal number.

Report Output

The column order and subtotals depend on the value of the Subtotal by parameter: Bank, Customer or Reversal Reason.

This table describes the column headings in the Reversed Receipts Report.

Column Heading Description

Paying Customer

The name of the paying customer.

Paying Customer Account

The account number of the paying customer.

Customer Site

The identifier of the customer site.

Remittance Bank

The name of the remittance bank.

Remittance Bank Account

The number of the remittance bank account.

Receipt Number

The number of the receipt that was reversed.

Receipt Date

The date that the receipt was created.

Reversal Date

The date that the receipt was reversed.

Receipt Type

Standard or Factoring.

Reversal Category

The category of reasons why a receipt was reversed.

Reversal Reason

The specific reason within a category why a receipt was reversed.

Debit Memo Reversal Number

The number of the debit memo that records a debit memo reversal for the receipt.

Receipt Entered Amount

The amount of the receipt in the entered currency.

Receipt Currency

The entered currency of the receipt.

Receipt Accounted Amount

The amount of the receipt in the ledger currency.

This table describes the row headings in the Reversed Receipts Report.

Row Heading Description

[Remittance Bank Name] Total

Total of all reversed receipts for a remittance bank in the ledger currency.

[Reversal Reason] Total:

Total of all reversed receipts for a reversal reason in the ledger currency.

[Customer Name] Total

Total of all reversed receipts for a paying customer in the ledger currency.

Total Receipt Accounted Amount

Grand total of all reversed receipts in the ledger currency.

FAQs for Reverse Receipts

You reverse a receipt when no payment was received from the customer for the receipt amount. Reversing the receipt creates reversal journal entries in the general ledger and reopens all of the debit and credit items that were closed by the original receipt.

You unapply a paid receipt either to return payment to the customer or to reapply a receipt applied in error to the correct transaction. If you unapply a receipt to return payment to the customer, either with a refund or an on-account credit, you must create a credit memo against the original transaction that was closed by the receipt application.

You can delete manual receipts that were created but not yet applied to transactions. You can delete automatic receipts belonging to an automatic receipt batch that hasn't yet been approved. When you delete a receipt from a batch, the transactions closed by the receipt become available for automatic receipt selection.

There are certain conditions that prevent you from reversing a receipt or initiating a debit memo reversal.

You can't reverse a receipt if any of the following are true:

  • The receipt is already reconciled in Cash Management.

  • A chargeback was created against the receipt, and a receipt, adjustment, or credit memo was created against the chargeback.

  • A chargeback was created against the receipt and the chargeback posted.

  • A credit card refund was issued for the receipt and the corresponding negative miscellaneous receipt was already remitted.

  • The receipt is applied to another receipt and the reversal would cause a negative balance on the other receipt.

  • The receipt is assigned descriptive flexfields, and one or more segments of the descriptive flexfield were either disabled or removed by another user.

You can't initiate a debit memo reversal if any of the following are true:

  • The receipt is already reconciled in Cash Management.

  • The receipt is a miscellaneous receipt.

  • The receipt is unidentified (no customer name or account number).

Manage Lockbox

Use the lockbox standard receipt import both to create receipts in Receivables from data supplied by your remittance bank and to apply the receipts to customer transactions.

The lockbox process has three steps:

  • Import Data: Lockbox reads and formats the data from your bank file into the interface table from the data uploaded using the FBDI template.

  • Validate Data: Lockbox validates the data in the interface table for compatibility, then transfers the data to the receipts tables.

  • Post Receipts: Lockbox applies the receipts to transactions and updates the customer balances.

You can submit these steps individually or at the same time. After you post lockbox receipts, Receivables treats these receipts like any other receipts: you can reverse and reapply them, and apply any unapplied, unidentified, or on-account amounts.

This figure illustrates the lockbox process:

This figure illustrates how receipts are processed using
lockbox. It shows the receipts being imported into the AR_PAYMENTS_INTERFACE
table; the receipts being validated and passed to the AR_INTERIM_CASH_RECEIPTS
and AR_INTERIM_LINES tables; then the validated receipts being posted
to the applicable Receivables tables.

Import

You use the Process Receipts Through Lockbox Import process to read and format data from the bank file into the AR_PAYMENTS_INTERFACE_ALL table using the data uploaded from the FBDI template.

Lockbox uses the transmission format that you specify in the Process Receipts Through Lockbox Import process submission to ensure that data is correctly transferred from the bank file into the AR_PAYMENTS_INTERFACE_ALL table. The transmission format contains information such as the customer account number, bank account number, the amount of each receipt to apply, and transaction numbers to which to apply each receipt.

Validate

The validation process includes these checks:

  • No duplicate entries exist.

  • Customer and receipt information is valid.

  • Amounts to apply do not exceed the receipt amount.

  • Columns in the AR_PAYMENTS_INTERFACE_ALL table reference the correct values and columns in Receivables.

  • If the receipt and transaction currencies are different, Lockbox also requires specific application information to determine the conversion rate between the two currencies.

The Process Receipts Through Lockbox Import process transfers the receipts that pass validation to the AR_INTERIM_CASH_RECEIPTS_ALL and AR_INTERIM_CASH_RCPT_LINES_ALL interface tables. At this point, you can optionally review receipts and change how they are to be applied before posting.

Use the Process Receipts Through Lockbox Execution Report to review all pass and fail validations for a lockbox transmission. Records that fail validation remain in the AR_PAYMENTS_INTERFACE_ALL table until you manually correct the import errors or purge unwanted records by reviewing the corresponding FBDI template in the Manage Lockbox Transmission page.

Post

Use the Post Receipt Batch process to post lockbox receipt batches that have passed import and validation.

When you process a lockbox receipt batch, Receivables matches receipts to transactions and applies the receipts automatically. In cases where receipts are not applied automatically, Receivables generates a list of recommended transactions for receipt application to complete the process manually.

You can use lockbox to import and apply receipts when the currencies of the receipt and the transaction are different.

Conversion Rate Information

Lockbox uses these field types in the bank transmission file to apply cross currency receipts between currencies that don't have a fixed rate relationship:

  • Transaction Amount Applied (amount_applied): The amount of the receipt to apply in the transaction currency.

  • Receipt Amount Applied (amount_applied_from): The amount of the receipt to apply in the receipt currency.

  • Conversion Rate (trans_to_receipt_rate): The conversion rate between the two currencies.

When all three values are present in the transmission file, lockbox ensures that the amounts are consistent before importing the receipt, by verifying that these calculations are true:

amount_applied * trans_to_receipt_rate = amount_applied_from
amount_applied_from / trans_to_receipt_rate = amount_applied

The formula lockbox uses to apply a cross currency receipt is:

Transaction Amount Applied * Conversion Rate = Receipt Amount Applied

If the receipt and transaction currencies have a fixed rate relationship, the lockbox transmission file only requires either the Transaction Amount Applied or the Receipt Amount Applied to apply the receipt.

If the receipt and transaction currencies don't have a fixed rate relationship, the lockbox transmission file must either contain the conversion rate or be able to determine the conversion rate in order to apply the receipt.

If both the conversion rate and either the Transaction Amount Applied or the Receipt Amount Applied are missing, lockbox uses the setting of the Cross Currency Rate Type system option to either derive the rate and the other missing value or reject the receipt.

This table shows how lockbox processes conversion rates and receipt application based on different combinations of information provided in the bank transmission file:

Information Provided in Transmission File Action Result
  • Conversion Rate

  • Transaction Amount Applied

  • Receipt Amount Applied

Validate that all values are correct.

  • If all values are correct, apply the receipt.

  • If one or more values are incorrect, reject the receipt.

  • Transaction Amount Applied

  • Receipt Amount Applied

Calculate the conversion rate to use or derive the rate from general ledger.

Apply the receipt.

Fixed rate relationship:

  • One or two of Conversion Rate, Transaction Amount Applied, Receipt Amount Applied

Calculate the missing value or values.

Apply the receipt.

Floating rate relationship:

  • Conversion Rate

  • Transaction Amount Applied or Receipt Amount Applied

Calculate the missing value.

Apply the receipt.

Fixed rate relationship:

  • Transaction Amount Applied or Receipt Amount Applied

Derive the fixed conversion rate and calculate the missing value.

Apply the receipt.

Floating rate relationship:

  • Transaction Amount Applied or Receipt Amount Applied

Refer to the Cross Currency Rate Type system option.

  • If the rate is defined, use it to derive the missing value and apply the receipt.

  • If the rate is not defined, reject the receipt.

Rounding Remittance Amounts

The method your customer uses to sum payment amounts in the bank transmission file can affect whether lockbox fully applies a cross currency receipt.

Discrepancies in Rounding Amounts

Your customer has three invoices, each for 1000 EUR. The customer adds the invoice amounts and then converts the total to USD. The conversion rate used is: 1 EUR = .860956 USD.

The result of adding the invoice amounts and converting the total is:

Transaction * Rate = Amount (in receipt currency)
3000.00 EUR * .860956 = 2,582.87 USD (rounded)

Although this method is mathematically correct, lockbox uses a different procedure to calculate remittance amounts. This procedure is as follows:

  1. Convert each transaction to the receipt currency.

  2. Add the amounts in the receipt currency.

  3. Remit the sum as the Receipt Amount Applied (amount_applied_from).

Using the same invoices and conversion rate, the result of this procedure is as follows:

Transaction * Rate = Amount (in receipt currency)
1,000.00 EUR * .860956 = 860.96 USD (rounded)
1,000.00 EUR * .860956 = 860.96 USD (rounded)
1,000.00 EUR * .860956 = 860.96 USD (rounded)

The total is 2,582.88 USD.

The Receipt Amount Applied (amount_applied_from) as entered in the bank transmission file is 2582.87, but lockbox calculates the Receipt Amount Applied as 2582.88. As a result of this discrepancy, lockbox leaves .01 unapplied and one of the invoices remains open.

To avoid these potential discrepancies, it is recommended that you establish business procedures with your customers to ensure that remittance amounts are calculated using the same method as lockbox.

Use the Process Receipts Through Lockbox Execution Report to review the results of a lockbox transmission.

Use this report in conjunction with your lockbox receipt processing.

Selected Process Parameters

New Transmission
  • Yes: To import a new bank file.

  • No: To resubmit an existing lockbox transmission.

Transmission Name
  • If you set the New Transmission parameter to Yes, enter a new transmission name.

  • If you set the New Transmission parameter to No, enter the name of the lockbox transmission that you are resubmitting.

Submit Import
  • Yes: To import a new bank file. You must also enter the data file, control file, and transmission format information for the new bank file.

  • No: To resubmit an existing lockbox transmission.

Data File

The bank file to import. You must include the file extension. For example: /home/ar/lockbox/bofa9101.dat.

Submit Validation
  • Yes: To validate a new bank file or to revalidate a previously imported bank file.

  • No: To skip the validation process.

Lockbox

The number of the lockbox to validate. If you set the Submit Validation parameter to Yes and the lockbox number is not specified in your bank file, then you must enter a lockbox number.

Accounting Date

Enter the accounting date to use to post the receipt and batch records in this lockbox transmission to the general ledger. If you set the Submit Validation parameter to Yes, then you must enter an accounting date.

  • If you defined the accounting date in the lockbox as Constant Date, enter an accounting date.

  • If you defined the accounting date in the lockbox as Deposit Date or Import Date, then the process uses either of these dates as the accounting date.

Report Format
  • All: Include all records processed in the Validation section of the report.

  • Rejects Only: Include only the records that failed validation.

Complete Batches Only
  • Yes: Only transfer the receipts in a lockbox batch if all records pass the validation step.

  • No: Transfer any receipts within a batch that pass validation, even if others are rejected.

Allow Payment of Unrelated Invoices
  • Yes: Apply receipts to the debit items of unrelated customers.

  • No: Apply receipts only to the debit items of customer accounts with whom you have an account relationship.

Post Receipt with Invalid Transaction Reference as Unapplied
  • Yes: Allow the import of a receipt that is applied to more than one transaction, even if one or more of the transactions are invalid. The unapplied portion of the receipt is transferred as an unapplied amount.

    You can later manually apply any unapplied amounts to transactions.

  • No: Only allow the import of a receipt that is applied to more than one transaction when all of the transactions are valid.

Submit Post Receipts
  • Yes: Apply receipts in the lockbox transmission and update the customer balance.

  • No: Process receipts without applying them to transactions. Select this option if you want to review and edit receipts before applying them to customer open debit items.

Number of Instances to Process AutoApply

Enter the number of AutoMatch workers submitted from lockbox, if there are any unresolved references from the lockbox validation.

Report Output

The report is divided into two sections:

  • Import: Displays the total number of records that were imported into the interface tables successfully.

  • Validation: Provides details for each record and the total amount and number of receipts in each lockbox transmission.

The Import section of the report is generated when you submit the lockbox import step. The report prints a line at the end of the Import section informing you of any rejected records.

The Validation section of the report is generated if you set the Submit Validation parameter to Yes. Use this section of the report to see the number of records that pass or fail validation. You can also see the total amount and number of receipts in each lockbox transmission.

Note: Use the Manage Lockbox Transmission page to review the records that failed validation in the corresponding FBDI template:
  • Correct the records you want and click the Upload button to resubmit the spreadsheet.

  • Purge records by clicking the Mark for Deletion column in the corresponding rows. Click the Upload button to resubmit the spreadsheet and purge the records marked for deletion.

Column Detail
Record Count Summary

The number of records for this transmission and their corresponding statuses.

Transmission

The deposit date, bank origination number, deposit time, destination account, and the following transmission information:

  • Transmission Record Count

  • Records Transferred to Date

  • Records Transferred This Run

  • Transmission Amount

  • Amount Transferred to Date

  • Amount Transferred This Run

Lockbox Records

The lockbox record information for each record processed. The lockbox information includes the number of receipts in the lockbox that met the criteria for each category.

Batch Records

The receipt batch information for each batch in the bank file, if you include batches as part of your transmission format. Lockboxes may contain several receipt batches. Receipt batch information includes the receipt batch name, the total number of receipts in the batch, the total receipt amount, currency, and the deposit date and accounting date for the receipt batch.

Record Details

The details of each record and the status of that record.

Note: If you run the Validation report for Rejects Only, the report includes only records in error and their corresponding error statuses.

FAQs for Manage Lockbox

Yes, if you have set up a relationship between these customers, or if the Allow payment of unrelated transactions system option is enabled for this lockbox submission. The paying customer should be identified by a customer or MICR number on the receipt record. Otherwise, if you are using AutoMatch when applying a receipt from Customer A to a transaction from Customer B, the receipt is designated as paid by Customer B. Additionally, all transactions listed to be paid by one receipt must belong to the same customer, otherwise lockbox imports the receipts as Unapplied.

If the Allow payment of unrelated transactions system option is not enabled, you must set up a relationship between the customers before you can make applications in this way.

Transactions numbers are only required to be unique within a transaction source. A customer can have duplicate transaction numbers as long as they belong to different transaction sources. However, lockbox can't automatically apply a payment to these transactions.

If a customer has more than one transaction with the same number within a lockbox transmission, then lockbox can't determine to which transaction to apply the payment. The receipt is left in one of these statuses:

  • Unapplied: If the customer account number or MICR number is provided.

  • Unidentified: If the customer account number or MICR number is not provided, and there are not successful matching recommendations.

You must apply receipts to these transactions manually.

Yes, if you set the Overapplication in Lockbox Allowed profile option to Yes. If the transaction type of the debit item allows overapplication, then lockbox applies the receipt and, if the payment exceeds the balance due, changes the sign of the debit item.

If the transaction type does not allow overapplication, then lockbox leaves the remaining amount unapplied.

Process Refunds

You can issue manual refunds for both credit card and non-credit card transactions. Depending on your implementation, you can also issue refunds for overpayments on transactions.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

Considerations for manual refunds include:

  • Rules for Issuing Refunds

  • Non-Credit Card Refunds

  • Credit Card Refunds

  • Refunds for Overpayments

Rules for Issuing Refunds

Before you can issue a refund you must unapply the receipt amount. You can either unapply the amount of the refund from one or more application lines on the receipt, or you can apply an on-account credit memo in the amount of the refund to the original receipt.

These rules apply to issuing refunds:

  • You can't refund more than either the original receipt amount or the remaining unapplied amount.

  • You can only refund original receipts that were either remitted or cleared.

  • You can't issue a credit card refund unless the customer payment was made by credit card.

Non-Credit Card Refunds

You can issue refunds for receipts or on-account credit memos.

To issue a non-credit card refund:

  1. Unapply the amount to refund from the receipt or credit memo.

  2. Issue the manual refund, and enter the values required by Payables. This refunds the amount to the original receipt customer.

    If the refund is by bank account transfer, you must enter the customer bank account.

  3. Save the refund and receipt.

Receivables sends a refund request to Payables, which in turn validates the refund information and sends a payment request to Payments.

Credit Card Refunds

You can issue credit card refunds for receipts only. Credit card refunds update credit card transactions that didn't complete, for example, the customer returned the product that was originally charged to the credit card number; or a charge was mistakenly applied to an incorrect credit card number.

To issue a credit card refund:

  1. Unapply the credit card amount to refund from the receipt.

  2. Issue a manual credit card refund to create a negative miscellaneous receipt for the amount.

  3. Run the Create Automatic Remittances program to remit the negative miscellaneous receipt and initiate the refund.

Receivables submits a refund request directly to Payments to create the disbursement. Payments applies the refund to the same credit card used on the original transaction.

If you are correcting a payment to an incorrect credit card number, then after you issue the credit card refund, assign the correct credit card number to the transaction as the payment instrument and run the Create Automatic Receipts program to create a payment for the transaction.

Refunds for Overpayments

During lockbox processing, Receivables identifies overpayments after receipts are applied to transactions. Depending on the details of your setup, Receivables can suggest for your review overpayment amounts as refunds to your customers.

If you decide after review to refund an overpayment, you can manually issue a refund up to the total amount assigned to your refund approval limits.

You can refund all or part of a previously remitted credit card receipt to your customer credit card accounts.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

You issue a credit card refund against the unapplied receipt amount to generate a negative miscellaneous receipt. You then run the Create Automatic Remittances program to process this negative receipt to transfer the funds from your account back to the credit card of your customer.

Settings That Affect Manual Credit Card Refunds

These settings affect manual credit card refunds:

  • Complete the funds capture setups in Oracle Payments:

    • Define formats

    • Define payment systems

    • Define system security options

    • Integrate external payment systems

    • Define credit card brands

    • Define funds capture payment methods

    • Define funds capture process profiles

    • Define internal payees

  • Credit Card Refund Receivables Activity: Define a Credit Card Refund Receivables activity. This activity identifies the general ledger clearing account to use to clear credit card refunds.

  • Credit Card Refund Reversal Reason Lookups: Define lookup values to indicate the reasons for credit card refunds.

  • Credit Card Transaction Receipt Class: On the original credit card transactions, use a receipt class with a creation method of Automatic.

  • Credit Card Transaction Remittance Method: On the original credit card transactions, use a receipt class with a remittance method of Standard. When you refund these payments, the credit card refund (negative miscellaneous receipt) inherits the remittance method from the original receipt.

How Manual Credit Card Refunds Are Processed

The Create Automatic Remittances program passes the negative miscellaneous receipt information to Payments. The Create Automatic Remittances program uses Payments to transfer funds back and forth between the credit card issuer and your bank.

Payments initiates a refund even if the credit card has expired, because expired credit cards are usually reissued with a new expiration date. If a credit card has expired and was not reissued, then the credit card issuer declines the transaction and Payments reverses the refund.

Note: Unlike the credit card payment process, the refund process doesn't require authorization to transfer funds back to the customer credit card. If you want to approve credit card refunds before processing, define refund approvals as part of your business process.

If you make a mistake while initiating a credit card refund, you can correct the error in one of two ways, depending on whether the negative miscellaneous receipt was approved and remitted.

If the negative miscellaneous receipt was not approved and remitted, perform either of these steps:

  • Unapply the credit card refund application line from the receipt. Receivables reverses the negative miscellaneous receipt and creates the necessary journal entries.

  • Change the amount that you want to apply to the credit card refund application. Receivables reverses the original negative miscellaneous receipt and creates a new negative miscellaneous receipt for the correct amount.

If the negative miscellaneous receipt was approved and remitted, perform either of these steps:

  • If the funds were transferred to the customer account, create a debit memo to bill to your customer for the balance due.

  • If the funds were not transferred to the customer account, reverse the negative miscellaneous receipt. This action unapplies the refund from the original payment. If necessary, you can apply a new refund application to the original payment.

Reverse Receipts with Credit Card Refunds

You can reverse a receipt with a credit card refund application either before or after the negative miscellaneous receipt was remitted.

If the negative miscellaneous receipt was not approved and remitted, reversing the receipt unapplies the credit card refund lines on the receipt and reverses the associated negative miscellaneous receipt.

If the negative miscellaneous receipt was approved and remitted, reversing the receipt doesn't automatically unapply the credit card refund application because Receivables assumes that the receipt was already refunded. In this case, when you reverse the original receipt, you must create a debit memo reversal.

If neither the original payment nor the refund settled, then you can reverse the actual credit card refund (the negative miscellaneous receipt) and the payment in order to reconcile with your bank. Reversing a negative miscellaneous receipt automatically unapplies the refund from the original receipt. You can then reverse the original receipt, which reopens the transaction.

Use automated receipt handling to manage imported credit memos using AutoInvoice against paid transactions. You can set up Receivables to either refund the credited amount or place the credited amount on account.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

You can only use automated receipt handling for credits with approved credit memos. You must ensure that you set up your feeder systems with business processes that support this assumption.

Settings That Affect Automated Receipt Handling for Credits

These settings affect automated receipt handling for credits:

  • Transaction Source: Define an imported transaction source and enable the Receipt Handling for Credits option to indicate your enterprise policy. Assign this transaction source to the applicable imported credit memos.

  • Minimum Refund Amount Receivables system option: If you plan to process refunds, specify in the Minimum Refund Amount field in Receivables system options the minimum amount necessary for AutoInvoice to create a refund.

  • Receivables Activity: If you plan to process refunds, define a Credit Card Refund receivables activity for credit card refunds and a Refund receivables activity for non-credit card refunds. The receivables activity identifies the general ledger clearing account to use to clear the refund amounts.

  • Credit Card Transaction Remittance Method: On the original credit card transactions, use a receipt class with a remittance method of Standard.

  • Transaction Type: The transaction type assigned to the debit items must be set to Natural application only. If the transaction type of a debit item is set to Allow overapplication, then you must process the credit manually.

How Automated Receipt Handling Processes Credits

During AutoInvoice import, the process flow for automated receipt handling for credits is as follows:

  1. AutoInvoice verifies that the transaction source assigned to the credit memo has automated receipt handling enabled.

  2. AutoInvoice evaluates each credit memo and its associated transaction to determine eligibility for automatic receipt handling. To be eligible:

    • The transaction type of the paid transaction must be set to allow natural application only.

    • The transaction must not be in doubt.

  3. If eligible, then AutoInvoice unapplies the paid transaction from the receipt to be credited.

  4. AutoInvoice creates the credit memo in the amount of the requested credit, and applies the credit to the transaction.

  5. If your policy is to automatically refund your customers, then AutoInvoice evaluates the receipt for refund eligibility. To be eligible, the receipt must not be in doubt.

  6. If eligible for refund, AutoInvoice creates the refund for all credit request amounts that are greater than or equal to the value entered in the Minimum Refund Amount field in Receivables system options.

    AutoInvoice places on account any credit amount that is less than the specified minimum.

  7. AutoInvoice applies the appropriate receivable activity to the receipt, as determined by the transaction source.

Transactions and Receipts in Doubt

AutoInvoice rejects a credit memo from automated receipt handling if one of the following conditions exists on the transaction to be credited:

  • The transaction type of the transaction is set to allow overapplication.

  • An on-account credit memo was previously applied against the transaction.

  • A regular or chargeback adjustment already exists against the transaction.

  • The credit memo is imported against a transaction with a negative creation sign.

If the credit memo is ineligible due to one of these conditions, AutoInvoice processes the credit memo using standard validation. This way you can evaluate the appropriateness of the credit request before taking action.

For refund requests, AutoInvoice automatically places on account the amount of a refund request if one of the following conditions exits:

  • The receipt to be refunded hasn't been remitted.

  • Receipts with different payment types (ACH, cash, credit card) were used to pay the same transaction to be credited.

  • Installments exist on the transaction and are not fully paid.

  • The receipt has an on-account credit memo against it.

FAQs for Process Refunds

What happens if I apply a credit card refund to a receipt in a different currency?

If you apply a credit card refund to a receipt that is not in the ledger currency, then you must account for the exchange gain or loss between the time of the original transaction and the time of the refund.

Note: Credit card services are currently not available in Oracle Financials Cloud implementations.

When you enter a foreign currency credit card refund, Receivables creates a negative miscellaneous receipt in the foreign currency using the same rate as the original receipt. During reconciliation, when you know the conversion rate that the bank used at the time of the refund, you can adjust the conversion rate on the negative miscellaneous receipt to reflect the information on the bank statement.

Receivables automatically creates the necessary journal entries to account for the exchange gain or loss. You can view the exchange gain or loss accounting entries on the original credit card payment.

Process Bank Deposits

Remit receipts to your bank to initiate the transfer of payments from your customer bank accounts. You remit receipts after your own internal approval, or approval and customer confirmation, if confirmation is required.

Considerations for managing remittances include:

  • Standard Remittances

  • Factored Remittances

  • Settings for Remittance Batches

Standard Remittances

A standard remittance refers to the common practice of remitting receipts. You remit automatic receipts to your bank so that the bank can transfer funds from customer bank accounts to your bank account on the receipt maturity date. You remit manual receipts so that the bank credits your bank account when the customer check clears.

The remittance process initiates the transfer of payment for transactions that are paid by credit card or Electronic Funds Transfer (EFT) for both direct debit and Automated Clearing House (ACH) bank account transfer.

Factored Remittances

A factored remittance is a sale of accounts receivable to your bank in exchange for cash. You remit receipts to your bank so that the bank can lend you money against the receipts either before the maturity date for automatic receipts or before clearing for manual receipts.

To factor receipts, you must identify the remittance method of the remittance batch as Factored. In addition, you can only factor receipts assigned a receipt class with a remittance method of Factoring or Standard and Factoring.

After clearing factored receipts, Receivables creates a short term debt for the borrowed amount to track your liability in case of customer default.

You can track your risk of customer default when you factor a receipt with your bank. In this case, Receivables creates a short term debt for the risk when the receipt is cleared. Run the Clear Receipts Automatically program to eliminate your risk on or after the maturity date of your automatic receipts.

This table shows the accounting entries that Receivables creates when you factor receipts with a receipt class that requires confirmation, remittance, and clearance:

Action Accounting Entries

Confirm Receipts

DR Confirmation CR Accounts Receivable

Factor Remittances

DR Factoring CR Confirmation

Clear Receipts

DR Cash DR Bank Charges CR Short Term Debt

Eliminate Risk

DR Short Term Debt CR Factoring

Remittance Batch Settings

You can create one remittance batch per remittance bank account or clearing institution.

You can deposit receipts into remittance bank accounts that are either in the currency of the receipt or your ledger currency, provided the bank account allows multiple currencies. If you are remitting receipts in foreign currencies, set the Conversion Rate Type profile option to a value other than User, because you can't specify a user-defined conversion rate when remitting receipts.

To manage automatic remittance batches, set the Receipts per Commit Receivables system option to a large number to avoid intermediate saves in the program. You must use numbers that are large enough to handle your largest automatic remittance batches. To help determine the number to enter, review the log file for your largest automatic remittance creation batch. Reduce this number only if you run out of rollback segments.

You can resolve funds transfer errors resulting from exceptions returned by Oracle Payments using the available corrective actions.

The available corrective actions are:

  • Change Instrument

  • Clear Payment Information

  • Retry

  • Reverse Receipt

Change Instrument

You can change the payment instrument and corresponding expiration date on a transaction or a receipt.

Note: If the receipt method assigned to a transaction uses bank account transfer as the payment method, then you can't change the expiration date.

Clear Payment Information

You can remove the payment information from a transaction. This action raises a business event and clears the receipt method from the transaction so that it is not eligible for selection during the next run of automatic receipts.

To include the transaction in future runs of automatic receipts, you can reassign the transaction payment information and an automatic receipt method.

Retry

You can retry receipt or remittance processing for transactions, receipts, and refunds. This action removes the error code and makes the transaction, receipt, or refund available for inclusion in the next automatic receipts or remittance batch.

Reverse Receipt

You can use this action to reverse receipts or refunds. This action raises a business event, reverses the receipt, reopens the original transaction, and removes payment.

Use the Clear Receipts Automatically process to automatically clear remitted receipts, and clear or eliminate risk on factored receipts.

The Clear Receipts Automatically process manages the clearing process for both remitted and factored receipts. The receipts that you intend to clear with the Clear Receipts Automatically process must belong to a receipt class with a clearance method of Automatic.

If you don't want to recognize the cash until it is deposited into your bank account, you can reconcile the bank statement within your accounts receivable. This step is optional for both automatic and manual receipts.

Remitted Receipts

Clearing remitted receipts credits your cash account and debits your remittance or factoring account.

Remitted receipts are cleared X days after their maturity date, where X is the number of clearing days defined for the receipt method/bank account combination on each receipt.

Factored Receipts

Clearing factored receipts creates a short term debt to account for your risk in case of customer default. The debt is cleared by the Clear Receipts Automatically process Y days after each receipt maturity date, where Y is the number of risk elimination days defined for the receipt method/bank account combination assigned to the receipt.

Factored receipts are cleared immediately on the remittance date. To eliminate risk created by clearing factored receipts, set the Eliminate Bank Risk parameter to Yes when you run the Clear Receipts Automatically process.

Reports for Process Bank Deposits

Bank Risk Report

Use the Bank Risk Report to see the receipts that are currently at risk with your remittance bank. A receipt is deemed to be at risk if you have factored it with a bank or a clearing house, but are still liable for the amount on the receipt until its maturity date (for example, receipts that have been factored but not risk eliminated).

When you run the Bank Risk Report, you must enter the remittance bank branch and bank account for which you want to print remittances.

Report Output

This table describes the two important row headings in the Bank Risk Report.

Row Heading Description

Total for Remittance

The total amount in the ledger currency of all receipts in each remittance batch.

Total Report

The total amount of all remittances.

Use the Clear Receipts Automatically Execution Report to review a run of the Clear Receipts Automatically process.

The Clear Receipts Automatically process clears remitted receipts and either clears or eliminates risk on factored receipts. Receipts eligible for clearance by this program must have a receipt class with a clearance method of Automatic Clearing.

Review this report each time you clear receipts using the Clear Receipts Automatically process.

Report Parameters
Clear Remitted Receipts

Indicate whether to clear remitted receipts.

Clear Discounted Receipts

Indicate whether to clear factored receipts.

Eliminate Bank Risk:

Indicate whether to eliminate risk on cleared and factored receipts.

Clear Date

Specify the date to use as the clearance date for remitted receipts. This is also the date that is used to make conversion rate adjustments. The default is the system date.

Accounting Date

Enter the accounting date to use for the clearance record for each receipt.

Conversion Rate Type

Enter the conversion rate type to use to determine the conversion rate. Conversion rate adjustments are made for receipts that are in a currency different from the bank account currency.

Report Output

The report sorts results by status and receipt number, and provides subtotals by status and bank name and a grand total in the ledger currency.

This table describes important column headings in the Clear Receipts Automatically Execution Report.

Column Heading Description

Status

The status of the receipt.

Receipt Number

The number of the receipt.

Maturity Date

The maturity date of the receipt.

Payment Method

The receipt method for the receipt.

Currency

The currency of the receipt.

Amount

The amount of the receipt in the entered currency.

Ledger Amount

The amount of the receipt in the ledger currency.

This table describes important rows in the Clear Receipts Automatically Execution Report.

Row Heading Description

Total for Status

The amount of all receipts cleared for the given bank and status in the ledger currency.

Number of Records Processed for Status

The number of receipts processed for the given bank and status.

Total for Bank

The amount of all receipts cleared for the given bank in the ledger currency.

Number of Records Processed for Bank

The number of receipts processed for the given bank.

Grand Total for Status

The total amount of all receipts cleared for all banks in the given status in the ledger currency.

Number of Records Processed for Status

The total number of receipts processed for all banks in the given status.

Overview of the Receipts Awaiting Bank Clearance Report

This topic contains summary information about the Receipts Awaiting Bank Clearance Report.

Overview

The Receipts Awaiting Bank Clearance Report lets you review receipts waiting to be cleared by your remittance bank.

This image shows output from the Receipts Awaiting
Bank Clearance Report.
Key Insights

The report provides a separate section for each currency included in the output, and sorts information within each currency section by remittance bank account and remittance batch date.

Frequently Asked Questions

The following table lists frequently asked questions about the Receipts Awaiting Bank Clearance Report.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Receivables Balances

Who uses this report?

Financial Manager to analyze risk.

When do I use this report?

To review all receipts waiting to be cleared by your remittance bank.

What can I do with this report?

Schedule as needed.

What type of report is this?

Oracle Business Intelligence Publisher

Receipts Awaiting Bank Clearance Report

Use the Receipts Awaiting Bank Clearance Report to review receipts waiting to be cleared by your remittance bank. The report includes both automatic and manual receipts that have been remitted but not cleared, or that have been confirmed and require bank clearance but do not require remittance.

Run this report in accordance with your regular customer payment business process.

Selected Report Parameters
Bank Account Name

Report for this bank account only, if specified.

Currency

Report for this currency only, if specified.

Order By
  • Maturity Date

  • Receipt Number

  • Remittance Bank (the default, if no value selected)

Report Output

The report provides a separate section for each currency included in the output. The report does not convert receipt currencies to the ledger currency nor provide a grand total in the ledger currency.

By default the report sorts information within each currency section by remittance bank account and remittance batch date, and provides subtotals by remittance bank account and remittance batch date and a grand total for the currency.

  • If you set the Order By parameter to Maturity Date, the report sorts receipts by maturity date and provides subtotals by remittance bank account and maturity date.

  • If you set the Order By parameter to Receipt Number, the report sorts receipts by receipt number but does not provide any subtotals.

This table describes important column headings in the Receipts Awaiting Bank Clearance Report.

Column Heading Description

Remittance Bank Account Name

The name of the remittance bank account for the applicable receipts.

Remittance Batch Date

The date the remittance batch was created for the applicable receipts.

Maturity Date:

The maturity date of the receipt.

Remittance Method

The remittance method for the applicable receipts.

Receipt Method

The receipt method for the applicable receipts.

Receipt Number

The number of the receipt.

Amount

The amount of the receipt.

This table describes important row headings in the Receipts Awaiting Bank Clearance Report.

Row Heading Description

Currency

The section title for a particular receipt currency.

Total for Remittance Batch Date

The total amount of all receipts for the given batch date.

Total for Remittance Bank Account

The total amount of all receipts for the given remittance bank account.

Total for Maturity Date

The total amount of all receipts for the given maturity date.

Total for Currency

The total amount of all receipts in the receipt currency.

Overview of the Receipts Awaiting Remittance Report

This topic contains summary information about the Receipts Awaiting Remittance Report.

Overview

The Receipts Awaiting Remittance Report lets you review receipts awaiting remittance to your bank.

This image shows output from the Receipts Awaiting
Remittance Report.
Key Insights

The report runs on both automatic and manual receipts. Once a receipt is approved for remittance it will no longer appear on the report.

Frequently Asked Questions

The following table lists frequently asked questions about the Receipts Awaiting Remittance Report.

FAQ Answer

How do I find this report?

Reports and Analytics pane - Shared Folders - Financials - Receivables - Receivables Balances

Who uses this report?

Financial Manager to analyze the overall remittance status.

When do I use this report?

To review all receipts requiring remittance to your bank.

What can I do with this report?

Schedule as needed.

What type of report is this?

Oracle Business Intelligence Publisher

Receipts Awaiting Remittance Report

Use the Receipts Awaiting Remittance Report to review receipts awaiting remittance to your bank. You can either review all receipts or receipts that are in a certain stage of the remittance process. By default the report includes receipts that have started but not yet completed the creation or approval process.

The report runs on both automatic and manual receipts that require remittance. Automatic receipts can only appear on the report if they do not require confirmation or if they require confirmation and are confirmed.

Once a receipt is approved for remittance it will no longer appear on the report.

Run this report in accordance with your regular customer payment business process.

Selected Report Parameters
Order By
  • Maturity Date

  • Receipt Number

  • Remittance Bank (the default, if no value selected)

Status

Select the status of the transactions to include in the report:

  • Available for Remittance: Include all receipts available for remittance.

  • Creation Completed: Include receipts that have been selected for remittance but have not been approved.

  • Deletion Completed: Include receipts that have been deleted.

  • Started Creation: Include receipts that have started, but not completed, the remittance creation process.

  • Started Approval: Include receipts that have started, but not completed, the remittance approval process.

  • Started Deletion: Include receipts that have started, but not completed, the deletion process.

Report Output

The report provides a separate section for each currency included in the output. The report does not convert receipt currencies to the ledger currency nor provide a grand total in the ledger currency.

If the report includes all receipts available for remittance, there is a separate section for each remittance status within each currency.

By default the report sorts the receipts within each currency section by remittance bank account, and provides subtotals by receipt method, remittance method, remittance bank account and remittance status, and a grand total for the currency.

  • If you set the Order By parameter to Maturity Date, the report sorts receipts by maturity date and provides subtotals by maturity date.

  • If you set the Order By parameter to Receipt Number, the report sorts receipts by receipt number and provides all of the default subtotals.

This table describes important column headings in the Receipts Awaiting Remittance Report.

Column Heading Description

Remittance Bank Account Name

The name of the remittance bank account for the applicable receipts.

Customer Bank

The name of the bank associated with the customer.

Maturity Date

The maturity date of the receipt.

Remittance Method

The remittance method for the applicable receipts.

Receipt Method

The receipt method for the applicable receipts.

Receipt Number

The number of the receipt.

Amount

The amount of the receipt.

This table describes important row headings in the Receipts Awaiting Remittance Report.

Row Heading Description

Currency

The section title for a particular receipt currency.

Status

The section title for a specific remittance status within a currency section.

Total for Receipt Method

The total amount of all receipts with a given receipt method.

Total for Remittance Method

The total amount of all receipts with a given remittance method.

Total for Remittance Account

The total amount of all receipts for a given remittance bank account.

Total for Status

The total amount of all receipts with a given remittance status for a receipt currency.

Total for Maturity Date

The total amount of all receipts for a given maturity date.

Total for Currency

The total amount of all receipts in the receipt currency.

FAQs for Process Bank Deposits

For one of these reasons:

  • Automatic receipts weren't fully applied. Because automatic receipts are created against specific transactions, you can't remit receipts until they are fully applied.

  • Incorrect receipt class. You can only include receipts in a remittance batch with receipt methods that have a receipt class that requires remittance. A receipt class requires remittance if the remittance method is Standard, Factoring, or Standard and Factoring.

Because the primary ledger is set to enable document sequencing at the legal entity level.

The receipt was assigned the legal entity of the remittance bank account belonging to the receipt method, and a document number was generated for the receipt for that legal entity. Changing the remittance bank would change the legal entity assignment and invalidate the document number.

Three settings control the override of a receipt remittance bank account with the remittance batch bank account.

These settings are:

  • Ignore override option on the remittance batch.

  • Allow override option on the receipt.

  • Override bank option on the receipt remittance bank.

If you enable the Ignore override option on the remittance batch, Receivables replaces the remittance bank information on the receipt with the remittance batch bank information and includes the receipt in the remittance batch, without reviewing either the receipt Allow override option setting or the remittance bank Override bank option setting.

If you don't enable the Ignore override option on the remittance batch, Receivables still replaces the remittance bank information on the receipt with the remittance batch bank information and includes the receipt in the remittance batch under these conditions:

  • Allow override option on the receipt is enabled.

    Note: If the Allow override option on the receipt is not enabled, Receivables includes the receipt in the remittance batch only if the receipt remittance bank is the same as the remittance batch bank.
  • Override bank option on the receipt remittance bank is enabled.

In both cases, Receivables verifies that both the receipt and the batch remittance banks have the same general ledger accounts defined for remittances, and for unapplied, unidentified, and on-account receipts.