Receivables uses receipt methods to account for your receipt entries and applications. Receipt methods also determine a customer's remittance bank information.
Note: You define receipt methods in the Receipt Classes window.
You can assign multiple remittance banks to each receipt method, but only one bank account can be the primary account for each currency. For each remittance bank branch account assigned to a receipt method, you must define all of your receipt accounts. You can then assign your receipt methods to your receipt sources to use with your AutoLockbox and manually entered receipts.
If you remit receipts in several currencies for a single receipt method, then you must enter at least one remittance bank per currency. At least one of these remittance banks must be primary.
The receipt class you assign to each of your receipt methods determines the processing steps that Receivables requires for receipts that you create using this receipt method. These steps include whether to require confirmation, remittance, and bank clearance for receipts that you create with a specific receipt class. See: Receipt Classes.
Receivables requires that you specify a receipt method when you create your automatic receipts through the Receipt Batches window. You also assign receipt methods to invoices when you manually enter them in the Transactions window. If an invoice will be automatically paid by credit card, direct debit, or bills receivable, then you must assign an automatic receipt method to the invoice.
Note: Enable automatic correction of funds transfer errors by mapping error codes to corrective actions, for each automatic receipt method. See: Enabling Automatic Funds Transfer Error Corrections.
You can assign all receipt methods to transactions in the Transactions window, except for bills receivable remittance receipt methods. You enter bills receivable remittance receipt methods in the Remittances window.
For bills receivable, define two types of receipt methods: creation receipt methods, which determine how Receivables automatically creates bills receivable from transactions, and remittance receipt methods, which designate the remittance banks and accounting for bills receivable remittances.
Prerequisites
Define internal remittance banks. See: Bank Account Model Overview, Oracle Cash Management User Guide.
When defining receipt methods for a receipt class with an Automatic creation method, you can choose from the following receipts rules:
One per Customer: Create one payment for each customer.
One per Customer Due Date: Create one payment for each customer and due date. This option creates several payments for a customer if a customer's invoices have several due dates.
One per Invoice: Create one payment for each invoice.
One per Site: Create one payment for each site.
One per Site Due Date: Create one payment for each customer site and due date.
Note: To define a bills receivable creation receipt method, see: Defining a Bills Receivable Creation Receipt Method. To define a bills receivable remittance receipt method, see: Defining a Bills Receivable Remittance Receipt Method.
Navigate to the Receipt Classes window.
Query or enter the receipt class to assign to this receipt method. See: Receipt Classes.
Enter a unique Name for your receipt method, then enter how you want this receipt method to be printed on your statements in the Printed Name field. The default Printed Name is the receipt method name.
Note: Oracle Receivables lets you create a receipt method only if there is no transaction type, adjustment, or receivable activity with the same name.
Enter the range of Effective Dates for this receipt method. The default start date is the current date, but you can change it. If you do not enter an end date, this receipt method will be active indefinitely.
To assign the same transaction number to the debit memo generated when you create a debit memo reversal, check the Debit Memo Inherit Receipt Numbers box. Do not check this box if you want Receivables to generate unique debit memo numbers automatically. See: Reversing Receipts.
If the receipt class associated with this receipt method has a Manual or AP/AR Netting creation method, then skip to the last step.
To ensure that the receipt number is always the same as the transaction number to which it is applied, check the Receipts Inherit Transaction Numbers box. This option helps you track Automatic Receipts. Do not check this box if you want Receivables to generate document numbers for Automatic Receipts assigned to this receipt class and receipt method.
If the receipt class associated with this receipt method has an Automatic creation method, enter a Number of Receipts Rule (see Number of Receipts Rules above).
Enter a Receipt Maturity Date Rule. Receivables uses this rule to pay invoices that have different due dates with a single receipt using this receipt method. Enter Earliest if you want the receipt maturity date to be the earliest due date of all of the invoices that your receipt covers. Enter Latest if you want the maturity date to be the latest due date of all of the invoices that your receipt covers.
Enter the Automatic Print Program for transmissions using this receipt method. Receivables provides one standard receipt print program to format the output of your payment selection and creation programs when you physically create the receipt document. If you need a different receipt print program format, you must copy this standard receipt print program, and modify it accordingly.
Specify a number of Lead Days. Lead days indicate the number of days before the invoice due date that an invoice can be selected for application by the Automatic Receipts program using this receipt method.
Select a funds capture payment method. A funds capture payment method is a payment medium by which your customer chooses to remit payment to you. Oracle Payments predefines funds capture payment methods, but you can define your own. See: Setting Up Funds Capture Payment Methods.
Select Credit Card for transactions to be paid by credit card.
Select Bank Account Transfer for transactions to be paid by ACH (Automated Clearing House) transfer.
For transactions to be paid by direct debit, create a new receipt method or use an existing receipt method, and assign or define a new EFT-specific payment method.
Select Funds Transfer Error Handling to enable the automatic correction of funds transfer errors. See: Enabling Automatic Funds Transfer Error Corrections.
Save your work. To assign a remittance bank to this receipt method, see: Assigning Remittance Banks.
When defined correctly, automatic receipt methods can also enable the automatic correction of funds transfer errors. This means that Receivables can automatically correct errors encountered during the credit card authorization or payment capture stage, or during a bank account transfer.
Enable this feature by navigating to the Funds Transfer Error Handling window from the Receipt Classes window. For each receipt method assigned to an automatic receipt class, map the error codes (obtained from your third party credit card processor or financial institution) to potential corrective actions in Receivables:
Change Instrument
Enables the selection of a new payment instrument and expiration date. If the transaction's receipt method has a bank account transfer payment method, then the expiration date is not available for update.
Clear Payment Information
Removes payment information from the transaction. Also enters a default note on the transaction and raises a business event.
Retry
Transactions with funds transfer errors are not included in Automatic Receipts or Remittances batches. This option removes the error code from the transaction, which makes the transaction eligible for inclusion in the next Automatic Receipts or Remittances batch.
Reverse Receipt
Reverses the receipt, reopens the original transaction, and removes payment information from the transaction. Also enters a default note on the receipt and related transaction, and raises a business event.
Map each error code to a corresponding action for each category, such as invoice, receipt, or refund. Different actions are available for each category, as illustrated in this table:
| Category | Available Actions |
|---|---|
| Invoice, Debit Memo, Credit Memo | Change Instrument, Clear Payment Information, Retry |
| Receipt | Change Instrument, Retry, Reverse Receipt |
| Refund | Retry, Reverse Receipt |
For example, for the Invoice category, map a credit card processor's error code of GW-0062 to an action such as Retry. If credit card authorization later fails and the credit card processor returns the error code of GW-0062 for multiple transactions, then Receivables will delete the error on all failed transactions in the Invoice category that have this error code. This error code removal makes all failed transactions eligible for inclusion in the next Automatic Receipts batch.
Optionally enter a subsequent action, and indicate how many days should pass before attempting the next action. For example, you might want to remove the credit card information after attempting reauthorization for two days.
If no subsequent action is specified, then the number of days indicates how many days should pass before failed transactions appear on the Correct Funds Transfer Errors page for manual correction.
Note: Transactions that still fail the automatic funds transfer correction process are displayed on the Correct Funds Transfer Errors page. Navigate to this page to manually correct funds transfer errors. See: Correcting Funds Transfer Errors.
Optionally enter notes for automatic inclusion on the transaction that recorded the funds transfer error.