Submit the Automatic Clearing program to automatically clear remitted receipts and clear or risk eliminate factored receipts in Receivables. Clearing remitted receipts debits your cash account and credits your remittance or factoring account. Clearing factored receipts debits your cash account and credits a short term debt account that is created to account for your risk in case of customer default. The Automatic Clearing program will debit the short term debt account and credit your factoring account y days after each receipt's maturity date, where y is the number of risk elimination days defined for the receipt method/bank account combination assigned to the receipt.
Remitted receipts are cleared x days after their maturity date, where x is the number of clearing days defined for the receipt method/bank account combination on each receipt. Factored receipts are cleared immediately on the remittance date. To eliminate risk created by clearing factored receipts, set the Eliminate Bank Risk parameter to Yes when you run the Automatic Clearing program. See: Factoring Remittances.
If you do not want to recognize the cash until it is deposited into your bank account, you can reconcile the bank statement with your accounts receivable system. This step is optional for both automatic and manual receipts.
For receipts to be cleared by the Automatic Clearing program, they must belong to a receipt class with an Automatic Clearance Method.
Suggestion: You can also use Oracle Cash Management to clear receipts. See: Using Oracle Cash Management to Clear Receipts.
Prerequisites
Navigate to either the Submit Requests or the Clear/Risk Eliminate window.
Enter a request Name of Automatic Clearing for Receipts.
Enter parameters for submitting the Automatic Clearing program. To clear receipts with a Standard remittance method, enter Yes in the Clear Remitted Receipts field. To clear receipts with a Factored remittance method, enter Yes in the Clear Discounted Receipts field. To eliminate risk for cleared and factored receipts, enter Yes in the Eliminate Bank Risk field.
Enter parameters to select receipts to be cleared or risk eliminated.
For example, enter a Receipt Method or Remittance Bank Account, or enter a range of Receipt Numbers and Customer Names to select only those receipts for automatic clearing.
Leave a field blank if you do not want to limit the search to receipts matching that criteria.
Select the No of Instances parameter to be more than 1. The Automatic Clearing for Receipts program in turn creates the Automatic Clearing for Receipts in Parallel program based on the input given for No. of Instances parameter.
Note: For effective utilization of the workers used, make sure that the following condition holds good.
(Estimated Number of receipts / Number of Instances used) >= 5000
Choose OK.
To run Automatic Clearing more than once, enter Run Options. Enter the time and date To Start and to End Resubmission of the program.
To save the output of the Automatic Clearing program to a file, check the Save Output box.
Choose Submit. Receivables displays the Request ID of your concurrent request and creates the Automatic Clearing for Receipts Execution report. See: Automatic Clearing for Receipts Execution Report.