This document provides an overview of efficiently handling applications of customer receipts in Oracle Receivables. It discusses the different methods of applying receipt applications, including manually through the receipts workbench, via auto lockbox, and through receipt APIs. It also covers using receipt applications in abnormal situations, common errors, important reports, and tips and tricks.

1. Efficiently Handling Applications of
Customer Receipts In Oracle Receivables
GIRISH K PALEKAR
PRINCIPAL SOLUTION ARCHITECT
KPIT CUMMINS INFOSYSTEMS LTD
girish.palekar@kpitcummins.com
SESSION ID - 8985

3. 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.
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4. 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
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5. What is AR Receipt Application (RA)
Receipt Application is a feature
in Oracle Receivables where you
enter and apply Customer
Receipts to transactions in either
open or future accounting
periods.
There are 2 types of receipts in
Receivables:
Unidentified
Standard (Cash) Receipts Different Types of Unapplied
Miscellaneous Receipts Receipt Statuses On Account
Applied
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6. 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 automatically
processing receipts that are sent directly to your bank.
via the Receipt APIs
- Creation and application of receipts using PL/SQL function.
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7. Manual Application of Receipts
Use the Receipt Workbench window to apply
your receipts or on-account credits.
Specify the transactions to which you want to
apply the receipt by entering Transaction selection
criteria.
Specify how to order selected transactions by
entering Sort Criteria. (eg: mark transactions by
Balance Due, Due Date, Invoice Date, or Invoice
Number)
Specify which types of transactions to include in
your query by checking or unchecking the
appropriate check boxes. (eg: Invoices, Credit and
Debit Memos, Deposits etc..)
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8. Manual Application of Receipts Cont……
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9. Receipt Application Through Auto Lockbox
Auto Lockbox is a service that commercial banks offer
corporate customers to enable them to outsource their accounts
receivable payment processing.
Auto Lockbox eliminates manual data entry by automatically
processing 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.
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10. Receipt Application Through Auto Lockbox Cont……
Auto Lockbox is a three
step process:
1.Import
2.Validation
3.Post Quick Cash
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11. AutoCash Rule Sets
AutoCash Rule Sets
- AutoCash Rule, Sets to determine the sequence of rules that Post
QuickCash uses through Auto Lockbox to update Customers account
balances
Different 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
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12. AutoCash Rule Sets Cont….
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13. Receipt Application Through Receipt APIs
How do APIs work?
The Receipt APIs allow users to process receipts using simple calls to
PL/SQL functions.
Receipt APIs are not intended to replace the existing Receipts workbench
or Lockbox. It merely provides users with a programmatic option to create
receipts
Features of APIs
Flexibility
Modular Approach
Error Handling
Robust Validation
Debug Messages
Integration with Oracle Payments
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14. Using RA Function In Abnormal Situations
Over Application
- Over application occurs when you apply a $500 receipt, for
example, to a $400 invoice. This application over applies the invoice
and reverses the invoice's sign (from positive to negative).
Cross Currency Receipts
- Handling of application of open Invoices in one currency to
receipts created in another currency.
Zero Amount Receipts
- Application of outstanding Invoices/Debit Memos to open Credit
Memos by creating a zero amount receipt.
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15. Common Errors In Receipt Generation and Application
Issue Cause / Resolution
When attempting to apply receipt on the Setup issue. You are entering a value to a 4
invoice with a currency precision - e.g.4 decimal place precision, but the system is
decimal 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 incomplete
incomplete
Lockbox Validation Program ends in Error - Lockbox errors out when Lockbox number is
Lockbox failing to create receipts provided through data file with fill symbols.
Submit Lockbox (Import and Validation), BUG 7212124 AUTOLOCK BOX IS ASSIGNING
Receipt fails validation - ERROR MICR MICR NUMBER TO MULTIPLE CUSTOMERS
number refers to more than one customer.
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16. Common Errors In Receipt Generation and Application
Issue Cause / Resolution
Error Occurred while creating the Receipt : Incorrect Usage or Setup (This error most
Invalid 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 the
hence transaction not available for receipt transaction date
application
Receipt Method not available for receipt Receipt Method created prior to receipt
creation since receipt date earlier than date or receipt method could have an end
receipt method creation date or Receipt date
Method could have an end Date
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17. Important Reports Useful In RA
Applied 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.
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18. Important Reports Useful In RA
Past Due Invoice Report
- Use this report to view information about your customer's 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.
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19. 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 simultaneously
conducted
Receipt reversals should have same GL period to the extend possible
While entering receipts through batches keep the batch count limited to 100 (distribute
your 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
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20. Tips And Tricks – Receipt Application Process
Receipt 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 Application
Rule set to define the rules)
Ensure that your receipt batch totals do not show any differences in Count &Amount
Always use Auto Cash Rule Set functionality of receipt application
In case of Lockbox receipts, purge the lockbox transmission data at regular intervals
Schedule the Applied Receipt Register Report to run every day
Use feature ‘Select All Lines’ when applying Invoice having multiple Invoice lines
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21. Thanks For Attending The Session !!!
Please write to Girish K Palekar for any
queries or questions that you may have
Email : girish.palekar@kpitcummins.com
Phone Easy Reach
Desk Phone: +91 20 6652 5127
Cell Phone: +91 9850572160
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