Create remittance batches to select automatic receipts for remittance to your customer's bank to initiate the transfer of funds as payment for transactions previously closed by these receipts. You can create unapproved, approved, or approved and formatted remittance batches.
You can control the total remittance amount by specifying values for the Remittance Total range. If there are not enough receipts to meet the minimum amount, Receivables will not create the remittance batch. To ensure that the maximum amount is not exceeded, receipts that meet your search criteria are identified and then ordered by maturity date, followed by amount. The program picks up receipts starting with the oldest eligible receipt and continues until it reaches the maximum of the remittance total range. When creating remittance batches, Receivables only includes receipts with receipt methods whose receipt class requires remittance.
Note: A receipt class requires remittance if its remittance method is Standard, Factoring, or Standard and Factoring.
You can either create one remittance batch per remittance bank account or choose a clearing institution. If you choose a clearing institution, Receivables will select all the receipts belonging to remittance banks that have this clearing institution assigned to them.
Receivables lets you make cross-currency deposits. You can deposit receipts into remittance bank accounts that are either in the currency of the receipt or are in your functional currency but have the Multiple Currencies Allowed check box selected.
If you choose to approve and format your batch when you create it, Receivables initiates an additional process which creates the formatted batch information.
Depending upon the function security options set up by your system administrator, you may be able to create, format, and approve remittance batches in one step. See: Function Security in Receivables.
You can schedule the remittance process to automatically run at predetermined times. See: Scheduling the Automatic Remittances Creation Program.
You can delete a remittance batch only if its status is either Started Creation or Completed Creation. When you delete a remittance batch, all receipts within the batch become available for selection the next time you create a remittance batch.
At remittance time, Receivables lets you override a receipt's remittance bank account with the remittance batch bank account. Three options control system behavior:
The Override option on the receipt
See: Entering Receipts.
The Override Bank option on the receipt's remittance bank
The Ignore Override option on the remittance batch
If the Ignore Override option is selected when creating a remittance batch, Receivables will override a receipt's remittance bank information and include the receipt in this remittance batch, regardless of how you set the receipt's Override option.
If the Ignore Override option is not selected, Receivables will override bank accounts for receipts and include them in this remittance batch, only if:
The receipt's Override option is Allow
The receipt's remittance bank's Override Bank option is selected
Both the receipt and batch remittance banks have the same GL accounts defined for remittances, and for unapplied, unidentified, and on-account receipts.
If the receipt's Override option is Don't Allow, Receivables will include the receipt in this remittance batch only if the receipt's remittance bank is the same as the remittance batch bank.
Note: If the receipt status is Confirmed, you can manually update an automatic receipt's remittance bank information in the Receipts window.
Prerequisites
Define receipt classes and set the remittance method to:
Standard, for credit card payments
Standard, Factoring, or Standard and Factoring, for all other automatic receipts
Define print programs for your remittances
Define the number of Auto Receipts Receipts per Commit in the System Options window
Suggestion: Set the Auto Receipts Receipts per Commit parameter to a large number to avoid intermediate saves in the program. You should use numbers that are large enough to handle your largest automatic remittance batches. To help determine the Auto Receipts Receipts per Commit number, look at the log file for your largest Automatic Remittance Creation batch. You should only reduce this number if you run out of rollback segments.
If using Automatic Remittances to pay foreign currency transactions, then set the AR: Default Exchange Rate Type profile option to a value other than User.
See: Overview of Receivables User Profile Options.
Also, define daily exchange rates. See: Entering Daily Rates.
Navigate to the Remittances window.
Enter the Currency for this batch. The default is your functional currency, but you can change it.
Enter the Batch and GL Date. The default Batch Date is the current date, but you can change it. The GL date must be in an open accounting period. Receivables uses the GL Date to determine when to post this remittance batch to your general ledger.
Choose a Remittance Method. Choose Standard to remit this batch of receipts on the maturity date. Choose Factoring to borrow money against the receipts before the maturity date. Receivables only selects receipts using the remittance method you specify here when creating this remittance batch. Receivables selects all receipts that have a remittance method of Standard and Factoring. See: About Remittances.
Enter the Receipt Class, Receipt Method, and Remittance Bank information for this batch, or select from the list of values. You can select both inactive and active receipt methods for your remittance batches. You must select a remittance bank that has accounts assigned to the receipt method you entered.
Note: The default remittance bank is generally the primary remittance bank account associated with the receipt method and currency of your invoice. However, if it finds that a non-primary account for the same currency is the same as the customer account, Receivables uses this account. This avoids bank charges and allows funds to transfer more quickly.
To create this remittance batch automatically, choose Auto Create. Receivables saves your batch information. To create this remittance batch manually, see: Manually Creating a Remittance Batch.
Enter selection criteria for creating this remittance batch (optional). For example, enter the low and high values of the Maturity and Receipt Dates, Receipt and Document Numbers, and Customer Names or Numbers to select only those receipts for this batch. Leave a field blank if you do not want to limit the search to transactions matching that criteria. You can use both active and inactive customers as criteria for your remittance batches.
Receivables selects all confirmed automatic receipts and manual receipts that match the criteria you specify and have a receipt class with a remittance method of Standard, Factoring, or Standard and Factoring.
Note: If you remit Miscellaneous Receipts and you enter a range of Maturity Dates as selection criteria, Receivables looks at the transaction Deposit Date when determining whether it should be added to this remittance batch. (Miscellaneous Receipts do not have a maturity date.)
Note: Receivables keeps a running total of the total count and amount of the remittance batch, so you can ensure that it does not exceed a certain value. This is particularly useful if you intend to factor a remittance batch and you do not want to exceed the bank's short term loan limit.
To approve and format this remittance batch, check the Approve and Format boxes.
Choose OK, then choose Yes to acknowledge the message. Receivables assigns a unique Request ID number for your concurrent request. Receivables also assigns a batch name using the next batch number of the Automatic Receipts source. Use the Request ID to check the status of your remittance process in the View Concurrent Requests window.
Receivables creates the Automatic Receipts and Remittances Execution report when you submit your request. This report lists the number and amount of remittances in this batch. See: Automatic Receipts and Remittances Execution report.
Choose Manual Create.
Specify which receipts to include in this batch by selecting and deselecting transactions. You can control which transactions Receivables displays by modifying Selection Criteria. Enter a range of Receipt Methods and Maturity Dates to display only those receipts, or choose from the following:
Query Batch Only: If you check this box, Receivables will only display receipts that are associated with this batch. If this is a new batch, this box is not checked by default.
Ignore Override: Check this box to display all receipts matching the selection criteria, regardless of the batch remittance bank and the receipt's Override option.
Leave this box unchecked to display all confirmed automatic receipts and manual receipts that have the same remittance bank as the batch and a receipt class with a remittance method of Standard, Factoring, or Standard and Factoring.
Select All: Check this box to automatically mark all transactions that Receivables displays for inclusion in this remittance batch.
Note: If you remit Miscellaneous Receipts and you enter a range of Maturity Dates as selection criteria, Receivables looks at the transaction Deposit Date when determining whether it should be added to this remittance batch. (Miscellaneous Receipts do not have a maturity date.)
Note: Receivables keeps a running total of the count and amount of the remittance batch, so you can ensure that it does not exceed a certain value. This is useful if you intend to factor a remittance batch and do not want to exceed the bank's short term loan limit.
Query the receipts.
Check the box next to each receipt to add to this batch. Uncheck the box next to transactions you do not want to include in this batch.
To create the batch, save your work. To create and approve the batch in one step, choose Approve. To create, approve, and format the batch in one step, choose Format. Receivables assigns a unique Request ID number for your concurrent request. Receivables also assigns a batch name using the next batch number of the Automatic Receipts source. Use the Request ID to check the status of your remittance process in the View Concurrent Requests window.
Receivables creates the Automatic Receipts and Remittances Execution report when you submit your request. This report lists the number and amount of remittances in this batch. See: Automatic Receipts and Remittances Execution report.
Use the Automatic Remittances Creation program to schedule the remittance process to run at predetermined times.
For example, if your enterprise processes a high volume of credit card receipts, then you might want to schedule the remittance process to run once every few hours.
You can initiate the Automatic Remittances Creation program using Standard Request Submission from the Receipts menu.
See: Submitting a Request
Batch Date: Enter the batch date that you want to run the process for.
Batch GL Date: Enter the batch date for General Ledger that you want to run the process for.
Approve: Indicate if you want the Automatic Remittances Creation program to automatically approve this remittance batch.
Format: Indicate if you want the Automatic Remittances Creation program to automatically format this remittance batch.
Remittance Total Range: Enter the total remittance range that you want to run the process for.
This program improves the performance of the Remittance process by having multiple workers running in parallel.
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
Use AR: Use Parallel Hints profile option to specify whether to use parallel hints while running Remittance. See: Overview of Receivables User Profile Options