Cash Study on Automatic Receipt in R12

Product: Oracle Receivables EBusiness Suite Author Company Date : TG Saravanan : Hexaware Technologies : 18-Jan-2009 Product: 12.0.6

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 1 2 3 4 5 6 7 8 9 Step Create Payment System Create a Payee Create a Funds Process Profile Attach Payment system and Funds Process Profile in Payee Create a Automatic Receipt Method Create a Document Sequence and Attach with Receipt Method Attach Receipt Method and Customer Bank Account to Customer Create an Invoice with Automatic Receipt Method 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 Name Processing Model Bank Account Transfer XYZ XYZ Payment System Processor checkbox is checked in Funds Capture Tab.

Formats Name Payment System Code Name Data Type Bank Account Lead Days

Electronic Bank Remittance Format XYZ Dummy XYZ Dummy Payment System Number 0

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 Name Payment System Payment System Account Supported Processing Types ABC ABC DUMMY CUSTOMER XYZ Payment System (created in the previous step) XYZ Dummy Account (created in the previous step) 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 Name Processing Type Outbound Format XYZ Funds Process Profile XYZ Funds Process Profile Bank Account Electronic Bank Remittance Format

Settlement Grouping First Party Organization First Party Legal Entity Internal Bank Account Settlement Currency Settlement Date Checkbox is unchecked Checkbox is checked Checkbox is checked Checkbox is checked 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 Criterion Operator Value One Rule for All Amount Greater than or Equal to 1

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