Cash Study on Automatic Receipt in R12

Product: Oracle Receivables EBusiness Suite Product: 12.0.6

Author : TG Saravanan
Company : Hexaware Technologies
Date : 18-Jan-2009

Case Study Abstract

This case study describes the setups and transactions for automatic receipts in R12. In this case
study, we have shared our experience in configuring the clients requirements in creating the
automatic receipts. Unlike R11, we need to perform the dummy funds capture setups for the
automatic receipts in R12.

Client Requirement

One of our client is having more than 30 branches and sale is done from all these branches.
Money is received in terms of Cash, Local Cheque, Outstation Cheque, Credit Card and Direct
Debit. These sales are captured in a web portal and the details should be transferred to
receivables. For each branch and for each receipt method (cash, local cheque, etc), one
receivable invoice should be created automatically with invoice number as “Pay-in” slip number
(which is the reference number from the Potal) from the data received from the portal in an excel
file. Pay-in slip number is unique for branch and receipt method combination. Receipt
transaction should also be created along with the invoice as money is received during the sale.
The receipt number should be same as that of the invoice number (Pay-in slip number)

The accountant at the branch will create the remittance transaction and deposit the cheques/cash
in the bank. The remittance challan contains the pay-in slip number. As soon as all the cheques
are cleared, the bank captures the pay-in slip number with the total cleared amount. Hence it
becomes easier to reconcile the receipts.

We will explain how we have accomplished the invoice with automatic recipt in R12 satisfying
the clients requirements. Remittance and reconciliation transactions are not covered in this
document.

Setup

The service for the customer is rendered only after receiving the money. There are different
receipt methods such as Cash, Check and Credit Card. Hence we need to create both invoice and
receipt automatically for all the receipt methods. The scope is not to integrate the oracle system
with the customer payment system. Hence we have done a dummy funds capture setup.
The steps followed is given below.

Sr No Step
1 Create Payment System
2 Create a Payee
3 Create a Funds Process Profile
4 Attach Payment system and Funds Process Profile in Payee
5 Create a Automatic Receipt Method
6 Create a Document Sequence and Attach with Receipt Method
7 Attach Receipt Method and Customer Bank Account to Customer
8 Create an Invoice with Automatic Receipt Method
9 Create a Receipt

We created a Role called “Funds Capture Admin Setup” using sysadmin and attached with the
user. The details of creation of role and attaching the role to the user is not covered in this
document.

1. Create Payment System

We created a dummy payment system as described below.

We created the payment system with the following values.

Code à XYZ
Name à XYZ Payment System
Processing Model à Processor
Bank Account Transfer à checkbox is checked in Funds Capture Tab.

Formats Name à Electronic Bank Remittance Format

Payment System Code à XYZ Dummy
Name à XYZ Dummy Payment System
Data Type à Number
Bank Account Lead Days à0

After creating the payment system, we have done the account creation by clicking “Save and
Add Accounts” button.
We have created one dummy account called “XYZ Dummy Account”. With this, we completed
the Payment System Setup.
2. Create Payee

We created a payee with the following details.

Code à ABC
Name à ABC DUMMY CUSTOMER
Payment System à XYZ Payment System (created in the previous step)
Payment System Account à XYZ Dummy Account (created in the previous step)
Supported Processing Types à Bank Account Transfer checkbox is checked.
3. Create Funds Process Profile

We created the funds capture process profile for the payment system created in step 1 (XYZ
Payment System).
We created the funds capture process profile with the following values.

Code à XYZ Funds Process Profile

Name à XYZ Funds Process Profile
Processing Type à Bank Account
Outbound Format à Electronic Bank Remittance Format

Settlement Grouping

First Party Organization à Checkbox is unchecked

First Party Legal Entity à Checkbox is checked
Internal Bank Account à Checkbox is checked
Settlement Currency à Checkbox is checked
Settlement Date à Checkbox is unchecked
In the Payment System Account, enabled checkbox is checked.
4. Attach Payment system and Funds Process Profile in Payee

In this step, we attached the payment system account (created in step 1) and Funds capture
process profile (created in step 3) with the Payee created in step 2.

The Payee created in step 2 was queried and updated with payment system account and funds
capture process profile.
We created a routing rule as given below.

Rule Name à One Rule for All

Criterion à Amount
Operator à Greater than or Equal to
Value à1
5. Create Automatic Receipt Method

We created a receipt with the creation method as ‘Automatic’. As we require the receipt number
to be same as that of invoice number, ‘Receipts Inherit Transaction Numbers’ checkbox is
checked. In the funds processing section, we have selected ‘Bank Account Transfer’.
6. Create a Document Sequence

We created a sequence name and attached it with the automatic receipt method created in the
previous step. We have set profile Option “Sequence Numbering” at the responsibility level to
“Partially Used”.
7. Attach Receipt Method and Customer Bank Account to Customer

We created customers and attached the receipt method and customer bank account.

With this, we have completed all the setups.

Transactions

8. Create Invoice

AR invoice is created with automatic payment details. The sale is made only after the payment is
received. Hence the payment term is always ‘immediate’ for these kinds of sale and due date is
same as that of the invoice date. When we create this invoice through Autoinvoice program,
PAYMENT_TRXN_EXTENSION_ID was populated in the AR_INTERFACE_LINES table using the
API IBY_FNDCPT_TRXN_PUB.Create_Transaction_Extension.

Mandatory for
Automatic Receipts
9. Run ‘Automatic Receipts Creation Program (API)’ concurrent program.

We run this program (scheduled) with the following parameter values

Batch Date à Current Date. As due date is the invoice date, the automatic receipt
program will select the invoices for the current date.
Batch GL Date à Current Date
Approve à Yes
Format à Yes
Currency à Currency was different for different schedule programs (INR, USD,
AED, etc)
Receipt Class à Automatic Receipt (Created in step 5)
Receipt Method à The receipt method selected in the invoice was selected here.

The batch date given in the parameter and the lead days given in the receipt method are more
important for the invoices to get selected in the automatic receipt. Basically, Batch Date plus
lead days should be less than or equal to the due date of the invoice. Also we found that payment
method parameter is mandatory in the “Automatic Receipts Creation Program (API)” SRS.
When Approval and Format parameters are given as ‘Yes’, the receipt batch is approved and
formatted.
Automatic receipt batch is created with the status of “Completed Format”.

If ‘Receipts Inherit Invoice Number’ is not enabled in the receipt method, then we found that the
receipt number is created in the following format.

Receipt Number Format: <Receipt Method ID>-<Sequence Number>.

If ‘Receipts Inherit Invoice Number’ is enabled in the receipt method, then receipt was created
with receipt number same as that of the invoice number.
References

R12 - Oracle Receivables Implementation Guide

Metalink Note ID 471418.1 - Oracle Payments Setup For Funds Capture Processing
Metalink Note ID 560573.1 - Autoinvoice: The Customer_Bank_Account_ID is Obsolete
Metalink Note ID 749032.1 - R12: Automatic Receipts Progam Does Not Assign Invoice
Number As Receipt Number