Cash Study on Automatic Receipt in R12

Product: Oracle Receivables EBusiness Suite Product: 12.0.6

Author : TG SaravananCompany : Hexaware TechnologiesDate : 18-Jan-2009

Case Study AbstractThis case study describes the setups and transactions for automatic receipts in R12. In this casestudy, we have shared our experience in configuring the clients requirements in creating theautomatic receipts. Unlike R11, we need to perform the dummy funds capture setups for theautomatic 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 DirectDebit. These sales are captured in a web portal and the details should be transferred toreceivables. For each branch and for each receipt method (cash, local cheque, etc), onereceivable 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 excelfile. Pay-in slip number is unique for branch and receipt method combination. Receipttransaction 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/cashin the bank. The remittance challan contains the pay-in slip number. As soon as all the chequesare cleared, the bank captures the pay-in slip number with the total cleared amount. Hence itbecomes easier to reconcile the receipts.

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

Setup

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

The steps followed is given below.

Sr No Step1 Create Payment System2 Create a Payee3 Create a Funds Process Profile4 Attach Payment system and Funds Process Profile in Payee5 Create a Automatic Receipt Method6 Create a Document Sequence and Attach with Receipt Method7 Attach Receipt Method and Customer Bank Account to Customer8 Create an Invoice with Automatic Receipt Method9 Create a Receipt

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

1. Create Payment System

We created a dummy payment system as described below.

We created the payment system with the following values.

Code à XYZName à XYZ Payment SystemProcessing Model à ProcessorBank Account Transfer à checkbox is checked in Funds Capture Tab.

Formats Name à Electronic Bank Remittance FormatPayment System Code à XYZ DummyName à XYZ Dummy Payment SystemData Type à NumberBank Account Lead Days à 0

After creating the payment system, we have done the account creation by clicking “Save andAdd Accounts” button.

We have created one dummy account called “XYZ Dummy Account”. With this, we completedthe Payment System Setup.

2. Create Payee

We created a payee with the following details.

Code à ABCName à ABC DUMMY CUSTOMERPayment 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 (XYZPayment System).

We created the funds capture process profile with the following values.

Code à XYZ Funds Process ProfileName à XYZ Funds Process ProfileProcessing Type à Bank AccountOutbound Format à Electronic Bank Remittance Format

Settlement Grouping

First Party Organization à Checkbox is uncheckedFirst Party Legal Entity à Checkbox is checkedInternal Bank Account à Checkbox is checkedSettlement Currency à Checkbox is checkedSettlement 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 captureprocess 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 fundscapture process profile.

We created a routing rule as given below.

Rule Name à One Rule for AllCriterion à AmountOperator à Greater than or Equal toValue à 1

5. Create Automatic Receipt Method

We created a receipt with the creation method as ‘Automatic’. As we require the receipt numberto be same as that of invoice number, ‘Receipts Inherit Transaction Numbers’ checkbox ischecked. 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 theprevious 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 isreceived. Hence the payment term is always ‘immediate’ for these kinds of sale and due date issame 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 theAPI IBY_FNDCPT_TRXN_PUB.Create_Transaction_Extension.

Mandatory forAutomatic 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 receiptprogram will select the invoices for the current date.

Batch GL Date à Current DateApprove à YesFormat à YesCurrency 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 moreimportant for the invoices to get selected in the automatic receipt. Basically, Batch Date pluslead days should be less than or equal to the due date of the invoice. Also we found that paymentmethod 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 andformatted.

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 thereceipt 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 createdwith receipt number same as that of the invoice number.

References

R12 - Oracle Receivables Implementation GuideMetalink Note ID 471418.1 - Oracle Payments Setup For Funds Capture ProcessingMetalink Note ID 560573.1 - Autoinvoice: The Customer_Bank_Account_ID is ObsoleteMetalink Note ID 749032.1 - R12: Automatic Receipts Progam Does Not Assign InvoiceNumber As Receipt Number