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Efficiently handling Applications of Customer Receipts in Oracle Receivables


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Efficiently handling Applications of Customer Receipts in Oracle Receivables

Efficiently handling Applications of Customer Receipts in Oracle Receivables

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  • 1. Efficiently Handling Applications ofCustomer Receipts In Oracle Receivables GIRISH K PALEKAR PRINCIPAL SOLUTION ARCHITECT KPIT CUMMINS INFOSYSTEMS LTD SESSION ID - 8985
  • 2. About The Speaker • Girish Palekar is Principal Solution Architect at KPIT Cummins Infosystems, India and currently leads a team of Oracle Apps Subject Matter Experts (SME). • Girish is a fellow Chartered Accountant (CPA equivalent) and he is into Oracle Apps for last 10 years. • Finance and Supply Chain is his area of special interest and he has been instrumental in designing a number of Oracle Apps utilities and RICE components in the Finance and SCM area. 3
  • 3. Agenda What is AR Receipt Application (RA) Different Methods of RA Using RA Function In Abnormal Situations Common Errors In RA Important Reports Useful In RA Tips And Tricks of RA Question & Answers 4
  • 4. What is AR Receipt Application (RA)Receipt Application is a featurein Oracle Receivables where youenter and apply CustomerReceipts to transactions in eitheropen or future accountingperiods.There are 2 types of receipts inReceivables: Unidentified Standard (Cash) Receipts Different Types of Unapplied Miscellaneous Receipts Receipt Statuses On Account Applied 5
  • 5. Different Methods of Receipt Application (RA)via Manually, using the Receipts Workbench- Manually apply receipts to invoices through Receipt Workbench.via Auto Lockbox- Auto Lockbox eliminates manual data entry by automaticallyprocessing receipts that are sent directly to your bank.via the Receipt APIs- Creation and application of receipts using PL/SQL function. 6
  • 6. Manual Application of Receipts Use the Receipt Workbench window to applyyour receipts or on-account credits. Specify the transactions to which you want toapply the receipt by entering Transaction selectioncriteria. Specify how to order selected transactions byentering Sort Criteria. (eg: mark transactions byBalance Due, Due Date, Invoice Date, or InvoiceNumber) Specify which types of transactions to include inyour query by checking or unchecking theappropriate check boxes. (eg: Invoices, Credit andDebit Memos, Deposits etc..) 7
  • 7. Manual Application of Receipts Cont…… 8
  • 8. Receipt Application Through Auto Lockbox Auto Lockbox is a service that commercial banks offercorporate customers to enable them to outsource their accountsreceivable payment processing. Auto Lockbox eliminates manual data entry by automaticallyprocessing receipts that are sent directly to your bank. You can also use Auto Lockbox for historical data conversion. - For example, you can use Auto Lockbox to transfer receipts from your previous accounting system into Receivables. 9
  • 9. Receipt Application Through Auto Lockbox Cont…… Auto Lockbox is a three step process: 1.Import 2.Validation 3.Post Quick Cash 10
  • 10. AutoCash Rule SetsAutoCash Rule Sets- AutoCash Rule, Sets to determine the sequence of rules that PostQuickCash uses through Auto Lockbox to update Customers accountbalancesDifferent Auto Cash Rules 1.Apply to the Oldest Invoice First 2.Clear the Account 3.Clear Past Due Invoices 4.Clear Past Due Invoices Grouped by Payment Term 5.Match Payment with Invoice 11
  • 11. AutoCash Rule Sets Cont…. 12
  • 12. Receipt Application Through Receipt APIsHow do APIs work? The Receipt APIs allow users to process receipts using simple calls toPL/SQL functions. Receipt APIs are not intended to replace the existing Receipts workbenchor Lockbox. It merely provides users with a programmatic option to createreceiptsFeatures of APIs Flexibility Modular Approach Error Handling Robust Validation Debug Messages Integration with Oracle Payments 13
  • 13. Using RA Function In Abnormal Situations Over Application- Over application occurs when you apply a $500 receipt, forexample, to a $400 invoice. This application over applies the invoiceand reverses the invoices sign (from positive to negative). Cross Currency Receipts- Handling of application of open Invoices in one currency toreceipts created in another currency. Zero Amount Receipts- Application of outstanding Invoices/Debit Memos to open CreditMemos by creating a zero amount receipt. 14
  • 14. Common Errors In Receipt Generation and Application Issue Cause / ResolutionWhen attempting to apply receipt on the Setup issue. You are entering a value to a 4invoice with a currency precision - e.g.4 decimal place precision, but the system isdecimal places setup to expect only 2 decimal places precision (System Options)When attempting to enter a manual receipt Setup issue. Document Sequence setup is- Document Sequence setup is incorrect or incorrect or incompleteincompleteLockbox Validation Program ends in Error - Lockbox errors out when Lockbox number isLockbox failing to create receipts provided through data file with fill symbols.Submit Lockbox (Import and Validation), BUG 7212124 AUTOLOCK BOX IS ASSIGNINGReceipt fails validation - ERROR MICR MICR NUMBER TO MULTIPLE CUSTOMERSnumber refers to more than one customer. 15
  • 15. Common Errors In Receipt Generation and Application Issue Cause / ResolutionError Occurred while creating the Receipt : Incorrect Usage or Setup (This error mostInvalid transaction number likely occurred because you allow duplicate transaction numbers in your system)Receipt method identifier is invalid. Validate that the receipt method you are using is valid for the dates you are providing as parameters.Receipt date earlier than transaction date Receipt creation should be after thehence transaction not available for receipt transaction dateapplicationReceipt Method not available for receipt Receipt Method created prior to receiptcreation since receipt date earlier than date or receipt method could have an endreceipt method creation date or Receipt dateMethod could have an end Date 16
  • 16. Important Reports Useful In RAApplied Receipts Register - Use this report to review all receipt applications that affect your customer balances.Actual Receipt Report -Use the Actual Receipt report to help you reconcile receipts as well as determine how to apply and reapply receipts to multiple invoices.Deposited Cash Reports - Applied Detail and Open Detail - The Applied Detail report lists all applied amounts, unapplied amounts, and miscellaneous cash.Miscellaneous Receipts Register - Miscellaneous receipts in the Receipts window to record non-invoice related payments such as investment income, interest income, refunds, and revenue from stock sales.Reversed Receipts Report - This report can be used to review receipt reversals for a date range or specific customers. 17
  • 17. Important Reports Useful In RAPast Due Invoice Report - Use this report to view information about your customers past due invoices, debit memos, credit memos, deposits, chargebacks, and guarantees.Receipt Analysis - Days Late Report - Use this report to review your customer receipts. You can easily see which customers are constantly past due with their receipts.Receipt Register - Use this report to review a list of receipts for the range of dates, receipt numbers, or document numbers that you specify.Receipts Awaiting Remittance Report - Use this report to review a list of manual and automatic receipts that are awaiting remittance to your bank.Unapplied and Unresolved Receipts Register -This report can be used to review detailed information about your customers on-account and unapplied payments for the date range that you specify. 18
  • 18. Tips And Tricks - Receipts To the extend possible keep the receipt date & GL date same In case of manual entries, entering receipt & receipt application should be simultaneouslyconducted Receipt reversals should have same GL period to the extend possible While entering receipts through batches keep the batch count limited to 100 (distributeyour receipt volume in multiple batches than having all in one batch) It is advisable not to duplicate the receipt numbers While designing the Auto Cash Rule Sets keep the ‘Remaining Remittance Amount’Option to ‘Unapplied’ Do not keep receipts in an Unidentified Status Do not enter back-dated receipts Set profile option ‘AR: Default Exchange Rate Type’ to account for cross currency receipts 19
  • 19. Tips And Tricks – Receipt Application ProcessReceipt should not be kept in ‘On-account’ status unless you specifically want it that way While applying the receipt follow logical path i.e. line, tax & freight (Use ApplicationRule set to define the rules)Ensure that your receipt batch totals do not show any differences in Count &AmountAlways use Auto Cash Rule Set functionality of receipt applicationIn case of Lockbox receipts, purge the lockbox transmission data at regular intervalsSchedule the Applied Receipt Register Report to run every dayUse feature ‘Select All Lines’ when applying Invoice having multiple Invoice lines 20
  • 20. Thanks For Attending The Session !!! Please write to Girish K Palekar for any queries or questions that you may have Email : Phone Easy Reach Desk Phone: +91 20 6652 5127 Cell Phone: +91 9850572160 21