Upload Lockbox Payment and Remittance Advices

Oracle Revenue Management and Billing enables you to upload lockbox payment and remittance advices received in the Electronic Data Exchange (EDI) 820 format. Under this feature, the payments made by customers are directed to a special post office box instead of going to the company directly. The bank goes to this post office box, retrieves the payments, processes them and deposits the funds directly into the company's bank account.

An EDI 820 payment order or remittance advice is an electronic document that can be used to initiate payments and send remittance information. EDI 820 sends information to vendor furnishing details of payment for his supplies. A remittance advice is a note sent from a customer to their supplier, informing the supplier that they have paid their invoice. The advice may contain elements such as a text note, the invoice number and the invoice amount, among others. Remittance advice is not required, but they are seen as a courtesy since they make it easier for the supplier to match invoices with payments.

To enable this feature, lockbox payment files are required to be uploaded on ORMB and these files have to be allocated to the appropriate accounts. To support multiple lines of business, the lockbox upload needs to:

  • Consider the primary identifier when looking for a source customer number match. For customers having multiple source system identifiers, the lockbox process only matches against the one identified as primary customer.

  • Incorporate the payment allocation logic in the system on the basis of which the lockbox uploads the payments for the identified customer.

To support remittances which can split a tender across multiple customers:

  • Allow source customer number or tax id to be provided as remittance (RMR) values. In case of multiple source customer number or tax id, remittance values are provided for a single tender, the account associated with the first remittance value is set as the payor account. If there is at least one remittance value where a single customer account cannot be determined, the entire tender is placed into general suspense.

  • A new payment upload batch C1-PUPSG is developed to read lockbox payment files from the bank and load the payment details into the ORMB payment upload staging tables for processing.

  • Once the text file is uploaded, the deposit control staging, tender control staging, and payment upload staging records are created in the respective tables. You can then execute the Payment Upload (PUPL) batch to create the deposit control, tender controls, payment events, tenders, payments, and payment segments using payment records in the staging area.

Note: For more information about the batches, refer to the Oracle Revenue Management and Billing Batch Guide.
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Related Topics

For more information on... See...
Prerequisites Prerequisites
EDI 820 Flat File Description EDI 820 Flat File Description
Sample EDI 820 Flat File Sample EDI 820 Flat File
Upload EDI 820 Files in ORMB Upload EDI 820 Files in ORMB

Parent Topic: Oracle Revenue Management and Billing Insurance Business Processes