How Automatic Receipts Are Processed

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

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 applied transaction. 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.

    When you submit the Create Automatic Receipt process for ISO 20022 direct debit receipts, Oracle Payments manages the process of creating a settlement batch and generating an automatic receipt format, using either the ISO 20022 SEPA or CGI settlement format.

  • 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're 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 aren't 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're 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're 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 isn't 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're processing credit card payments, then the remittance process requests transfer of funds from the credit card issuer to your bank.

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