Automatic Receipts Reversal

ERP CLOUD
Processing

Fusion Receivables

Table of Contents

1. Purpose of the document ............................................................................................................................................... 2

2. Assumptions and Prerequisites....................................................................................................................................... 2
3. Feature Specific Setup..................................................................................................................................................... 2
Receivables Lookups ........................................................................................................................................................... 2
Reversal Reason to Category Mappings ............................................................................................................................. 4
4. Flow diagram................................................................................................................................................................... 5
5. Reversal Status Report .................................................................................................................................................... 5
6. Automatic Receipts Reversal .......................................................................................................................................... 6
7. Relevant fields in the Customer Payment Status Report (pain 002.001.03 message) ................................................... 7
8. An example scenario ....................................................................................................................................................... 8
Transaction entry ................................................................................................................................................................ 9
Automatic Receipts Creation ............................................................................................................................................ 10
Remittance Batch Creation ............................................................................................................................................... 10
Settlement Batch Creation................................................................................................................................................ 11
Acknowledgement file upload .......................................................................................................................................... 12
Acknowledgement message processing ........................................................................................................................... 12
Automatic Receipts Reversal ............................................................................................................................................ 13

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1. Purpose of the document

This document explains the implementation and usage guidelines for the Automatic Receipts Reversal processing for ISO
20022 Direct Debits. Oracle Fusion Payments supports processing of the ISO 20022 Customer Payment Status Report
(pain 002.001.03 message) for ISO 20022 Direct Debits. The Retrieve Funds Capture Acknowledgements process
processes the ISO 20022 Customer Payment Status Report (pain 002.001.03 message) which contains information on
rejected settlements, if any. Automatic Receipts Reversal processing provides the ability to automatically reverse the
receipts for rejected settlements. It covers the following:

Automatic Receipts Reversal process Run the Automatic Receipts Reversal process to reverse receipts, not reversed by
the Retrieve Funds Capture Acknowledgements process.

Reversal Status Report - The Reversal Status Report shows receipts that are automatically reversed and receipts that are
not reversed either when the Payments Retrieve Funds Capture Acknowledgements process or the Automatic Receipts
Reversal process runs. The Payments Retrieve Funds Capture Acknowledgements process or the Automatic Receipts
Reversal process automatically submits the Reversal Status Report. It also supports manual submission.

2. Assumptions and Prerequisites

In this document, the following entities are assumed to have already been set up :

Data Security
Geographies
Enterprise Structure
Customers
Procurement Business Function
Common Options for Receivables
Document Sequencing
Receipt Classes and Methods
Bank accounts
ISO 20022 Direct Debits setup

It is recommended that the Implementation Project is complete for your organization before commencing the Feature
Specific Setup outlined below. If you require further details, refer to the Appendix.

3. Feature Specific Setup

Receivables Lookups

Task name: Manage Receivables Lookups

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Navigation : Navigator > Setup and Maintenance -> Manage Receivables Lookups

Set up the ISO rejection codes in the pain message as Reversal Reason lookup codes. The following table shows
examples of ISO rejection codes. Map the lookup codes to Reversal Categories. Automatic Receipts Reversal derives the
Reversal Reason and Reversal Category which are mandatory for reversing a receipt, from this mapping.

Code Name Definition

1 AC01 IncorrectAccountNumber Account number is invalid or missing.
Formerly: Format of the account
number specified is not correct.

2 AC04 ClosedAccountNumber Account number specified has been

closed on the bank of account's books.
3 AC06 BlockedAccount Account specified is blocked, prohibiting
posting of transactions against it.

Search for the Lookup Type CKAJST_REASON in the Manage Receivables Lookups page. Create new lookup codes for
the ISO rejection codes. Once set up as a lookup code, map it to a Reversal Category as shown in the next section. This
information is mandatory for reversing a receipt.

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Reversal Reason to Category Mappings

Task name: Manage Receivables Reversal Reason to Category Mappings

Navigation : Navigator > Setup and Maintenance -> Manage Reversal Reason to Category Mappings

The pain 002.001.03 message contains the ISO rejection codes for rejected settlements. Map the ISO rejection code set
up as a Reversal Reason to a Reversal Category using the Manage Reversal Reason to Category Mappings page. During
automatic receipt reversal, the mapping supplies the Reversal Reason derived from the ISO rejection code from the pain
002.001.03 message and Reversal Category which is mandatory to reverse a receipt. Disable the mapping if you want to
disable automatic receipt reversal for a particular rejection code.

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4. Flow diagram

5. Reversal Status Report

Use the Reversal Status Report to view information on receipts that are reversed and on receipts that are not reversed
when the Payments Retrieve Funds Capture Acknowledgements process or the Automatic Receipts Reversal process is
run. The Payments Retrieve Funds Capture Acknowledgements process or the Automatic Receipts Reversal process

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automatically submits the Reversal Status Report. It also supports manual submission. You can run the report using the
Scheduled Processes page for a Settlement Batch Reference or Settlement Batch Creation Date range.

6. Automatic Receipts Reversal

The Payments Retrieve Funds Capture Acknowledgements process is run only once for the pain 002.001.03 message.
The process sets the receipt status to Confirmed for rejected settlements if the setup is incomplete or if the Reversal
Reason to Category Mapping is disabled. Use the Automatic Receipts Reversal process to reverse such receipts
automatically. Complete the missing setup prior to running the process.

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7. Relevant fields in the Customer Payment Status Report (pain 002.001.03
message)

Rejected settlements have status as RJCT in the <TxSts> tag of the Customer Payment Status Report (pain 002.001.03
message). The <Cd> tag has the rejection code. It is this rejection code that that is set up as a Reversal Reason and
mapped to a Reversal Category in the Manage Reversal Reason to Category Mappings page. The <AddtlInf> tag has
more information on the rejection reason.

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8. An example scenario

The example scenario is as follows:

1. Create two Receivables transactions.

2. Create automatic receipts for the two transactions.
3. Create a remittance batch and include the two receipts. Approve the remittance batch.
4. Create a settlement batch.
5. Prepare and upload the acknowledgement message file. Both the settlements are rejected with rejection codes
AC01 and AC04. The example assumes that the rejection code AC01 is set up as a Reversal Reason and
mapped to a Reversal Category. The rejection code AC04 is not setup as a Reversal Reason.
6. Run the Retrieve Funds Capture Acknowledgements process for the settlement batch. Verify the receipt for the
rejected settlement with code AC01 is reversed and the status of the receipt for the rejected settlement with
code AC04 is set to Confirmed.
7. Complete the missing setup for code AC04 and run the Automatic Receipts Reversal process. Verify the receipt
for the rejected settlement with code AC04 is now reversed. Check the Reversal Status Report output to see the
receipt status.

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Transaction entry

Task name: Create Transaction

Navigation : Navigator > Receivables Billing -> Create Transaction

Create Receivables transactions. Select the appropriate automatic receipt method on the transactions for ISO 20022
Direct Debits. Create two Receivables transactions trx_1 and trx_2 as shown. Choose the appropriate receipt
method.

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Automatic Receipts Creation

Task name: Create Automatic Receipts

Navigation : Navigator > Receivables Balances -> Create Automatic Receipts

Run the Create Automatic Receipts process with suitable selection criteria to select the transactions created in the
previous step. Create Automatic Receipts for the two transactions.

Remittance Batch Creation

Task name: Create Receipt Remittance Batch

Navigation : Navigator > Receivables Balances -> Create Receipt Remittance Batch

Run the Create Receipt Remittance Batch process for the automatic receipts created in the previous step. Create a
remittance batch and include both the receipts. Approve the remittance batch.

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Settlement Batch Creation

Task name: Create Settlement Batches

Navigation : Navigator > Funds Capture -> Create Settlement Batches

Run the Create Settlement Batches process to create a settlement batch for the receipts

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Acknowledgement file upload

Task name: File Import and Export

Navigation : Navigator > Tools -> File Import and Export

Upload the acknowledgement file. For details on the acknowledgement file, refer the section on Relevant fields in the
Customer Payment Status Report (pain 002.001.03 message)

Prepare the acknowledgement message. Both the settlements are rejected with codes AC01 and AC04. The
example assumes the code AC01 is already set up as a Reversal Reason and mapped to a Reversal Category.
Refer to the attached sample acknowledgement message.

10893_1_test.xml

Upload the acknowledgement message.

Acknowledgement message processing

Task name: Retrieve Funds Capture Acknowledgements

Navigation : Navigator > Funds Capture -> Manage Settlement Batches

Run the Payments Retrieve Funds Capture Acknowledgements process for the settlement batch. Verify the receipt for
the rejected settlement with code AC01 is reversed and the status of the receipt for the rejected settlement with code
AC04 is set to Confirmed.

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Automatic Receipts Reversal

Navigation : Navigator > Tools -> Scheduled Processes

Run the Automatic Receipts Reversal process to reverse receipts that are not reversed by the Retrieve Funds Capture
Acknowledgements process. Complete the missing setup for code AC04 and run the Automatic Receipts Reversal
process. Verify the receipt for the rejected settlement with code AC04 is now reversed. Check the Reversal Status
Report output to see the receipt status.

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