Process Accounts

Receivable

Sector/Department Shared Services Centre

Previous Process [Link] Establish AR policies
Following Process [Link] Receive/Deposit customer payments
Following Process [Link] Apply cash remittances
Sub Processes
Forms
Related Documents
Table of Contents

1. Definition of Terms.............................................................................................................................3
2. Purpose..............................................................................................................................................4
3. Scope.................................................................................................................................................4
4. Flow Diagram.....................................................................................................................................5
5. Procedures.........................................................................................................................................6
6. KPI & KPI RACI Matrix.......................................................................................................................8
7. Approvals...........................................................................................................................................9
8. Revision History...............................................................................................................................10
9. Appendix..........................................................................................................................................11
9.1 Appendix: Related documents.......................................................................................................11
1. Definition of Terms

Terms Definition
KPI Key Performance Indicator
RACI Responsible: The Responsible function is performing and completing the
task. The Responsible function is responsible for action/implementation.
Responsibility can be shared with other functions as indicated in the RACI
Matrix. The degree of responsibility is indicated by the function with “A”.

Accountable: The Accountable function is the function that is ultimately

accountable for the activity decision and performance. This includes “YES”
or “NO” authority and veto power. The accountability cannot be shared with
other functions for each activity or process.

Consulted: The Consulted role is the function (typically subject matter

experts) to be consulted prior to final decision or action. This implies a
predetermined need for a two–way communication. Input from the
designated position is required before a decision is made by the
Accountable function.

Informed: This is the individual who needs to be informed before or after the
decision or action is taken. They may be required to take action as a result
of the outcome. It is a one–way communication.
UoM Unit of Measure
Lead Time The time between the initiation and completion of the process activity
Processing Time The actual time it takes to execute an activity
BPM Business Process Management
2. Purpose

APQC

3. Scope

APQC
 Process name Process Accounts Receivables
Process Number
9.2.3
(APQC Hierarchy ID)
Version 1.0

4. Flow Diagram

Title Author Process Customer Invoice XXXXXX

Initial

Page 5 of 113
 5. Procedures

Process Summary
Input XXXXX
Process Name Process Accounts Receivable
Output XXXXX
Total process lead time XXXXX

Credit Control

RACI XXXXX

RACI XXXXX
Process APQC APQC

Department
SLAs
Activity PCF Hierarchy Process Activity Task Description (Lead
No. ID ID time)

10794 [Link] Establish AR policies

Oracle Receivables provides integrated
functionality to perform day-to-day accounts
receivable operations. Receivables functionality is
managed from these Overview work areas: Billing,
Receivables Balances, Revenue Management, and
Credit Management.

All work areas provide access to general ledger

account activities, including creating accounting,
creating manual journal entries, and reviewing
journal entries.
 Credit Control

RACI XXXXX

RACI XXXXX
Process APQC APQC

Department
SLAs
Activity PCF Hierarchy Process Activity Task Description (Lead
No. ID ID time)

10795 [Link] Receive/Deposit

As a collector, you can use Advanced Collections
customer payments to easily record and process customer payments.
You can process these payments with credit cards
or bank electronic funds transfers.

Here's what you can do to process payments:

1. Process payments in a foreign currency.

2. Pay both delinquent and current open
receivables.
3. Make partial payments.
4. Validate payments in the real time.
5. Make secure credit payments by
configuring the level of security in Oracle
Fusion Payment setups.
6. Add bank account and credit card details.
 Credit Control

RACI XXXXX

RACI XXXXX
Process APQC APQC

Department
SLAs
Activity PCF Hierarchy Process Activity Task Description (Lead
No. ID ID time)

Remit bills receivable to your remittance bank or

other financial institution to initiate the collection
process from your customers. Before remitting to a
bank, you must create, review, and approve the
10796 [Link] bills receivable in a remittance batch.
Apply cash
You can create these types of bills receivable
remittances remittances:

 Standard remittances: You remit bills

receivable to your bank, and the bank
manages the collection process. On the bill
receivable maturity date, the bank collects
payment in full from your customers and
transfers the funds directly to your bank
account, less any fees or other charges.
With standard remittances, you bear the
financial risk of customer default.
 Factored remittances: You remit bills
receivable as collateral in return for cash
advances or loans from your bank.
Receivables creates a receipt for the bill
receivable upon remittance. If the bill
receivable is factored with recourse, you
bear the financial risk of customer default,
and Receivables records a short-term debt
 Credit Control

RACI XXXXX

RACI XXXXX
Process APQC APQC

Department
SLAs
Activity PCF Hierarchy Process Activity Task Description (Lead
No. ID ID time)

for the default risk. If the bill receivable is

factored without recourse, the bank
assumes the risk of customer default, and
Receivables closes the bill upon creation of
the remittance.

6. Approvals

Approvers Name Date Signature

Author
 7. Revision History

Version Date Purpose of new version Involved process activity

1.0 Initial Version All
8. Appendix

9.1 Appendix: Related documents

Flowchart Symbols:

Symbol Name Function

Start/End An oval represents a start or
endpoint

Arrow A line is a connector that shows

relationships between the
representative shapes.
Process Activity A rectangle represents a
processing activity.

Decision A diamond indicates a decision

and shows which process activity
you have to go as per your
decision.
Subroutine / Predefined A rectangle with a vertical line on
Process / Sub process both right and lift sides represents
a subroutine, predefined process,
or sub-process to refer to or get
from
Document A rectangle with a wavy base
shows a document as an input or
output for any processing activity.
Overview
 [Link] Establish AR policies

Overview:

Overview of accounts receivable

Oracle Receivables provides integrated functionality to perform day-to-day accounts receivable operations. Receivables functionality
is managed from these Overview work areas: Billing, Receivables Balances, Revenue Management, and Credit Management.
All work areas provide access to general ledger account activities, including creating accounting, creating manual journal entries, and
reviewing journal entries.

Billing Work Area

Use the Billing work area to perform tasks related to customer billing activities. Monitor and review incomplete transactions, and
approve and research pending adjustments. Use AutoInvoice to import transactions from other systems and generate invoices and
credit memos automatically according to your requirements. You can review and correct AutoInvoice import errors and resubmit
AutoInvoice. Create new invoices, debit memos, credit memos, and on-account credit memos. Perform related activities to manage
your transactions: update, duplicate, credit, adjust, dispute, and preview a transaction. You can also create a new customer record
and manage existing customers from the Billing work area.

Receivables Balances Work Area

Use the Receivables Balances work area to perform tasks related to customer payment activities and the management of accounts
receivable balances. Review actionable items, including open receipts and receipt batches, unapplied and on-account receipts and
credit memos, receipt remittance batches, and funds transfer errors. Create receipts manually, import receipts using lockbox or
spreadsheet, or create automatic receipts. Perform related activities to manage your receipts: apply, unapply, reverse, delete; create
invoice adjustments or chargebacks during receipt application; and remit, clear, or risk eliminate factored receipts. You can manage
receipt remittances: create, modify, and approve receipt remittance batches. You can also perform tasks related to managing
accounts receivables balances, including reconciling receivables to the general ledger and managing receivables accounting period
statuses.
Revenue Management Work Area

Use the Revenue Management work area to perform tasks related to revenue recognition and revenue adjustments. Run the
Recognize Revenue program to generate revenue distribution records for invoices and credit memos that use invoicing and revenue
scheduling rules. Perform revenue adjustments on one or more transactions, including scheduling and unscheduling revenue;
reviewing, adding, and expiring revenue contingencies; and transferring sales credits. You can also manage revenue policies, revenue
contingencies, and rules that assign revenue contingencies to transactions automatically.

Credit Management Work Area

Use the Credit Management work area to create credit profiles for your customers. The credit profile contains key information for
establishing the creditworthiness of each of your customers, including credit classifications, credit limits, and credit review cycles.
Review and evaluate specific credit authorization requests; run periodic reviews of the creditworthiness of your existing customers;
review customer credit scores, and provide recommendations for customer credit. Build scoring models that calculate a credit score
based on credit data specific to a customer; maintain detailed information about customer financial and accounting history; and
create templates for different types of credit reviews that are automatically assigned to specific credit scenarios.

Customer Information

From either the Billing or Receivables Balances work area, you have access to manage both customer information and customer
account activities, in summary and in detail. You can review customer account information by a single business unit, bill-to site, or
across all business units and bill-to sites. For each customer account, you can review transactions and receipts, dispute and adjust
transactions, and drill down to current or historical customer account activity.
 [Link].1 Simple Configuration to Operate Receivables:

Simple Configuration to Operate Receivables

You can create an operational Receivables environment with seven configurations. The remaining configurations are either
optional or have predefined values.

If applicable, your Receivables configuration must include a plan to migrate your customer information from your legacy
system.

Receivables Configuration Tasks

There are seven configuration tasks necessary to create an operational Receivables environment. Before you perform these tasks,
you must ensure that you have completed all of the required implementation tasks for Oracle Financials.

Perform these seven tasks in the order indicated:

1. Set Receivables System Options

Set Receivables system options to define your Receivables environment. During Receivables setup, you specify your
accounts, customer and invoice parameters, and how the AutoInvoice and Automatic Receipts programs operate.
2. Define Receivables Activities
Define receivables activities to create default accounting for all activities other than transactions and receipts, including, for
example, miscellaneous cash, discounts, late charges, adjustments, and write-offs.
3. Define Auto Accounting Rules
Defining auto Accounting is a required configuration task for processing customer billing.
 Define auto accounting to specify how you want Receivables to determine the default general ledger accounts for
transactions. Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled
receivables, late charges, and Auto Invoice clearing (suspense) accounts using your auto Accounting setup.
4. Define Receipt Classes and Methods
Defining receipt classes and receipt methods is a required configuration task for processing customer payments.
Receipt classes determine the required processing steps for receipts to which you assign receipt methods with this class.
These steps include confirmation, remittance, and clearance. Receipt methods specify accounting for receipt entries and
applications, determine customer remittance bank account information, and configure automatic receipt processing and fund
transfer error handling.
5. Define Remit-to Addresses
Define remit-to addresses to let your customers know where to send payment for open receivables. Receivables uses the
addresses to provide default remit-to information when you enter transactions.
You must provide a remit-to address to complete a transaction.
If you use Auto Invoice, but you have not defined a remit-to address for a particular customer site, Auto Invoice rejects all
transactions for which it could not determine a remit-to address.
6. Define Approval Limits
Define approval limits to determine whether a Receivables user can approve adjustments or credit memo requests. You
define approval limits by document type, amount, and currency.
7. Define Statement Cycles
 Define statement cycles to control when you create customer statements. You assign statement cycles to customer profiles .

[Link].2 Predefined Receivables Data in Sub ledger Accounting:

Oracle Receivables provides predefined data for Oracle Sub ledger accounting that you can use to integrate the two
applications.

When you run Create Receivables Accounting, the program accepts the default accounting information from auto
accounting without change and uses the predefined data to create accounting in the sub ledger. Sub ledger accounting
transfers the final accounting to General Ledger.

Note: You can optionally define your own sub ledger accounting rules to overwrite the default accounts from the
accounting events.

Receivables predefines one application in Sub ledger Accounting named Receivables. Most of the data that Receivables
predefines for Sub ledger Accounting is associated with the Receivables application.

This table shows the attribute values that Receivables predefines for the Receivables application:
 [Link].3 Guidelines for Receivables System Option Settings
Certain Receivables system option settings have critical implications for the way Receivables functions for a given business unit. You
may need to do some advance planning before deciding how to set certain Receivables system options.

Considerations for Receivables system option settings include:

 Salespersons
 Header Level Rounding
 Allow Change to Printed Transactions
 Discounts

Salespersons

If you intend to use revenue accounting, you must enable the require salesperson Receivables system option. Revenue accounting
requires that you assign sales credits to all transactions that can be adjusted for either revenue or sales credits.

If you enable the require salesperson Receivables system option, use the Sales Credit Percent Limit field to limit the percentage of
revenue plus non-revenue sales credit that a salesperson can have on any transaction line.

If you do not enter a value in the Sales Credit Percent Limit field, then no sales credit limit validation is performed during revenue
accounting.
Header Level Rounding

Depending on the legal requirements of your home country, you may need to round amounts at the transaction header level for the
receivable account, and then account for and post the difference in a separate account between this rounded amount and the sum of
the rounded line amounts for the respective revenue accounts. To do this, enable the Use header level rounding option and define
a Header Rounding Account.

The rounding difference between the header level and line level rounding is assigned to the Header Rounding Account.

If you enable the Use header level rounding option, then Receivables displays a rounding distribution line for all transactions,
regardless of currency. If the transaction is in the ledger currency, then the amount of this line is zero.

If you do not enable the Use header level rounding option, Receivables rounds amounts at the line level and posts any rounding
difference to the receivable account.

Caution: Once you enable Header Level Rounding and save the Receivables system options record, you cannot disable the feature
for the applicable business unit.

Allow Change to Printed Transactions

To allow updates to transactions that have been printed, enable the Allow change to printed transactions option. This option also
determines whether you can update a customer address when printed, posted, or applied transactions are assigned to that address.

Note: You can't update a transaction if it has activity against it, regardless of how you set this option. Examples of activity include
payments, credit memos, adjustments, accounting, and assigning the transaction to a balance forward bill.
Discounts

To allow Receivables to accept unearned discounts, enable the Allow unearned discounts option. Unearned discounts are
discounts a customer takes after the discount period passes. The Receivables system options record is the only place that determines
whether you can accept unearned discounts for the given business unit.

To allow discounts to be taken for partial payments against open debit items, enable the Discount on partial payment option. A
partial payment is any payment less than the remaining amount due. If this option is enabled, you can still decide to disallow
discounts on partial payments at the transaction level when defining payment terms.

If you never allow discounts on partial payments, then do not enable the Discount on partial payment option.

[Link].4 Guidelines for Defining Revenue Policies:

Use the Manage Revenue Policies page to define revenue policies for each applicable business unit. Receivables uses the revenue
policy definition to make automatic revenue recognition decisions for manually entered and imported transactions.

Receivables compares each transaction against the revenue policy, and assigns revenue contingencies to the transaction or
transaction lines that deviate from the policy definitions.

Credit Classification

Use credit classifications to identify your high risk, noncredit worthy customers. You can assign up to three levels of risk. Receivables
compares these risk levels to the credit classification assigned to the customer profile.
When you enter or import a transaction for a customer with a credit classification that matches one of the credit classifications in the
revenue policy, Receivables:

 Assigns the Customer Creditworthiness contingency to the transaction.

 Defers revenue on the entire transaction.
 Recognizes revenue on the transaction only to the extent of payments received.

Refund Policy Threshold

Use the Refund Policy Threshold column to enter the standard refund period in days that you typically offer to your customers.

When you enter or import a transaction with a line associated with a contract, Receivables analyzes the contract details. If the
contract offers a refund period that exceeds the refund policy, Receivables:

 Assigns the Refund contingency to the transaction line.

 Defers revenue on the transaction line.
 Recognizes revenue on the transaction line only after the refund period on the transaction line expires.

Payment Terms Threshold

Use the Payment Terms Threshold column to enter the maximum time in days before payment terms become extended.

When you enter or import a transaction with payment terms or an installment schedule that exceeds the payment terms policy,
Receivables:
  Assigns the Extended Payment Terms contingency to the transaction.
 Defers revenue on the entire transaction.
 Recognizes revenue on the transaction only to the extent of payments received.

For example, you enter a payment terms threshold of 180 days on your revenue policy, and you later enter or import an invoice with
payment terms that have four installments:

 Net 60
 Net 90
 Net 120
 Net 200

Receivables defers the entire revenue amount on the invoice because the last installment exceeds the 180-day threshold by 20 days.

Related Topics

 What is a revenue contingency?

 Guidelines for Defining Payment Terms
 How You Recognize Revenue on Transactions
[Link] Receive/Deposit customer payments:
Overview:

During payment processing, Receivables matches remittance reference information on receipts to open transactions, and
presents recommendations for which transactions to apply a given receipt. This recommendation process operates for
manual receipts, lockbox receipts, and receipts uploaded using a spreadsheet.

In general, Receivables generates recommendations rather than applying receipts automatically when there is a data entry
error, such as an incorrect invoice number, or when no transaction meets the minimum requirements for automatic receipt
application, as defined by your implementation.
 [Link].1 PAYMENT TERMS MAINTENANCE:

The process used to add new Payment Term, edit or inactivate existing Payment Terms that
can be used for selection during invoice entry to schedule the receipt date
 [Link].2 PROCESSING RECEIPTS STANDARD
Overview:
The process used to enter payments received from your customers in order to recognize
your current cash position.
 PROCESS FLOW DIAGRAMS FOR PROCESSING STANDARD RECEIPTS

[Link].3 PROCESS MISCELLANEOUS RECEIPTS

Your Account Receivables Specialist can apply all or part of a receipt or on-account
credit memo to a single debit item or to several debit items. For example, a customer
may send a single check to pay all of one invoice and part of another invoice. The
customer may also have an on-account credit memo to use with the check to close an
open debit item.
PROCESS FLOW DIAGRAMS FOR MISCELLANEOUS RECEIPTS:
[Link].4 PROCESS MISCELLANEOUS RECEIPTS
Your Accounts Receivables Specialist can issue manual refunds for both credit card and non-
credit card transactions. Depending on your implementation, you can also issue refunds for
overpayments on transactions. Accounts Specialist must ensure that before applying for refund
it must unapplied the receipt amount. While processing the refund user must ensure for the
following rules:
• It is not possible to refund more than either the original receipt amount or the remaining
unapplied amount.
• It is possible to only refund original receipts that were either remitted or cleared.
• It is not possible to issue a credit card refund unless the customer payment was made by
credit card.
Accounts Receivables Specialist submit the refund request, Accounts Payables generates a
payment
request to be paid to the customer back.
PROCESS FLOW DIAGRAMS FOR REFUND
 [Link] Apply Cash Remittance

Overview: Remittance Methods and Clearance Methods

Define a remittance method and clearance method for each receipt class. These settings determine the remittance and clearing
behavior for receipts with a given receipt class.
Remittance Methods

Use the remittance method to determine the accounts to use for receipts that you create using the receipt method assigned to this
receipt class.

Standard

Use the remittance account for automatic receipts assigned to a receipt method with this receipt class.

Factoring

Use the factoring account for automatic receipts assigned to a receipt method with this receipt class.

Standard and Factoring

Receivables selects receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you
can specify either of these remittance methods when creating your remittance batches.

No Remittance

For Manual receipts only. Remittance is not required for manual receipts assigned to this receipt class.

Clearance Methods

Use the clearance method to require receipts created using a receipt method assigned to this receipt class to be reconciled before
posting them to the general ledger cash account.

Directly
This method is for receipts that you do not expect to be remitted to the bank and subsequently cleared.

It is assumed that these receipts are cleared at the time of receipt entry and require no further processing.

By Automatic Clearing

Use this method to clear receipts using the Clear Receipts Automatically program.

Note: You can also clear receipts using this method in Cash Management.

By Matching

Use this method to clear receipts manually in Cash Management.

[Link].1 Considerations for Remitting Receipts

Remit receipts to your bank to initiate the transfer of payments from your customer bank accounts. You remit receipts
after your own internal approval, or approval and customer confirmation, if confirmation is required.

Considerations for managing remittances include:

 Standard Remittances
 Factored Remittances
 Settings for Remittance Batches
Standard Remittances

A standard remittance refers to the common practice of remitting receipts. You remit automatic receipts to your bank so that the
bank can transfer funds from customer bank accounts to your bank account on the receipt maturity date. You remit manual receipts
so that the bank credits your bank account when the customer check clears.

The remittance process initiates the transfer of payment for transactions that are paid by credit card or Electronic Funds Transfer
(EFT) for both direct debit and Automated Clearing House (ACH) bank account transfer.

Factored Remittances

A factored remittance is a sale of accounts receivable to your bank in exchange for cash. You remit receipts to your bank so that the
bank can lend you money against the receipts either before the maturity date for automatic receipts or before clearing for manual
receipts.

To factor receipts, you must identify the remittance method of the remittance batch as Factored. In addition, you can only factor
receipts assigned a receipt class with a remittance method of Factoring or Standard and Factoring.

After clearing factored receipts, Receivables creates a short term debt for the borrowed amount to track your liability in case of
customer default.

You can track your risk of customer default when you factor a receipt with your bank. In this case, Receivables creates a short-term
debt for the risk when the receipt is cleared. Run the Clear Receipts Automatically program to eliminate your risk on or after the
maturity date of your automatic receipts.
[Link].2 Remittance Bank Accounts on Receipt Methods
Define remittance bank account information for each receipt method assigned to a receipt class. Remittance bank account
information includes the general ledger accounts to use when you enter or apply receipts.

Remittance Bank Accounts and Receipt Currencies

If you remit receipts in one currency only, you can enter more than one remittance bank account for a receipt method, but you must
mark one account as the primary bank account for the receipt method.

If you remit receipts in more than one currency for a receipt method, then you must enter at least one remittance bank account per
currency and mark one account per currency as primary.

During receipt entry and processing, Receivables uses the primary bank account as the default remittance bank account for the
receipt. You can accept this value or enter any other bank account defined for the receipt method in the same currency as the receipt.

[Link].2.1 Remittance Considerations when you create Accounts

Banks, branches and accounts fit together on the premise of the Bank Account model. The Bank Account model
enables you to define and keep track of all bank accounts in one place.
The Bank Account Model can explicitly grant account access to multiple business units, functions, and users. Consider
the following when you set up bank accounts:
 Assign a unique general ledger cash account to each account, and use it to record all cash transactions for the
account. This facilitates book to bank reconciliation.
  Grant bank account security. Bank account security consists of bank account use security, bank account access
security, and user and role security.

Account Use

Account Use refers to accounts created for:

 Oracle Fusion Payables
 Oracle Fusion Receivables
 Oracle Fusion Payroll
Select the appropriate use or uses when creating an account in one or more of these applications.

Account Access
Payables and Receivables account access is secured by business unit. Before the bank account is ready for use by
Payables or Receivables, you must:
1. Select the appropriate use for the application.
2. Grant access to one or more business units.
Note: You can only assign access to the business units that use the same ledger as the bank accounts owning the legal
entity,
User and Role Security
You can further secure the bank account so that it can only be used by certain users and roles. The default value for
secure bank account by users and roles is No. For Payables and Receivables, you must have the proper business unit
assigned to access a bank account even if the secure bank account by users and roles is No. If the secure bank account
by users and roles is set to Yes, you must be named or carry a role assigned to the bank account to use it.
 You must assign the security duty role Cash Management Administration to the Cash Manager job role to
provide access for setting up banks, branches, and accounts. You must have the assigned Manage Bank Account
Security privilege to modify the User and Role Security.
 If you want to restrict the access to the Security tab, you must create a customized role and remove the privilege
Manage Bank Account Security. For example, you would copy the Cash Management Administration duty role,
rename it, and remove the privilege.

GL Cash Account Segments

Consider selecting the option to enable multiple cash account combinations for reconciliation if you want to reconcile
journal lines of multiple cash account combinations matching the same natural account and other specified segment
values.
For example, if you set up 01-000-1110-0000-000 as your cash account, and select Account and Sub-Account as GL
Cash Account Segments, you're able to manually or automatically reconcile journal lines entered on different account
code combinations matching the same natural account '1110' and sub-account '0000'.

[Link].3 Receipt Remittance and Accounting

Step- 1 Setup Receipt Classes

Navigate to Manage Receipt Classes TASK

2- Click on go to Task
3- click + to create a new one
4-

Enter the name, select creation method it can be manual or automatic,

Clearance Methods

Use the clearance method to require receipts created using a receipt method assigned to this receipt class to be reconciled
before posting them to the general ledger cash account.

Directly

This method is for receipts that you don't expect to be remitted to the bank and subsequently cleared.

It’s assumed that these receipts are cleared at the time of receipt entry and require no further processing.

By Automatic Clearing
Use this method to clear receipts using the Clear Receipts Automatically program.

Note: You can also clear receipts using this method in Cash Management.

By Matching

Use this method to clear receipts manually in Cash Management .

Select remittance method (it can be Standard, Factoring, Standard and Factoring and No remittance):

Standard

Use the remittance account for automatic receipts assigned to a receipt method with this receipt class.

Factoring

Use the factoring account for automatic receipts assigned to a receipt method with this receipt class.

Standard and Factoring

Receivables selects receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this
case, you can specify either of these remittance methods when creating your remittance batches.

No Remittance

For Manual receipts only. Remittance isn’t required for manual receipts assigned to this receipt class.

[Link].3.1 Receipt Remittance Create Unidentified Receipt

Unidentified receipt means that you create an receipt and don’t specify A customer Name
1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receit Number
 receipt and accounting date (it must be the same)

3- Don’t a speceify customer name

4- Submit and apply manually

5- Action post to ledger

 6- View Accounting

As you see unidentified cash because you don’t sepecify a customer name

[Link].3.2 Create Unapplied Receipt

Unapplied receipt means that you create an receipt and specify A customer Name but don’t apply it to any AR Transaction
1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number
 receipt and accounting date (it must be the same)

3- speceify customer name

4- Don’t Applied it to any Transaction

5- Submit and apply manually

6- Action post to ledger

7- View Accounting

As you see unapplied cash because you don’t apply it to a customer transaction
 [Link].3.3 Create Applied Receipt

Unapplied receipt means that you create a receipt and specify A customer Name but you will apply it to any AR Transaction

1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number
 receipt and accounting date (it must be the same)

3- speceify customer name

4- Submit and apply manually

5- Scroll done and go to Application > press on Add Applications

6- Select the invoice to apply it

7- Click save
8- Action post to ledger

9- View Accounting
 [Link].3.3 Create On Account Receipt

Unapplied receipt means that you create a receipt and specify A customer Name but you will apply it to on Account until you make
the transaction then reapply this receipt again to it

1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number

receipt and accounting date (it must be the same)

3- speceify customer name

4- scroll down and click on Actions > more > Create on Account Application
5- press OK

6- save Receipt

7- Chosse Action > post to ledger

8- View Accounting
9- Select the invoice to apply it

10- Click save

11- Action post to ledger
 12- View Accounting

[Link].4 Cash Accounting

Which is the debit part of the receipt accounting, the debit account is depend on the clearence method and remittance method
specified on the receipt
[Link].4.1 Scenario-1 Direct Clearance
Overview:
the state of the receipt in this scenario will be cleard as soon as the receipt is entered in direct clearance

We will use in this first scenario reiept method with no remittance and directly as a clearance method
1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number

receipt and accounting date (it must be the same)

 Choose AMD Check as a receipt method

3- speceify customer name

4- Submit and apply manually

5- press Save
6- from Action choose post to ledger

7- save Receipt
8- Chosse Action > post to ledger

9- View Accounting
directly the deit account is debited to cash account as there is no any steps to clearnce and remittance
[Link].4.2 Scenario-2 Clearance by Matching
Overview:
the state of the receipt in this scenario is considerd as cleared when it’s a reconcile with a bank statement or manuly cleared

We will use in this second scenario reiept method with no remittance and clearance method is By matching
1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number

receipt and accounting date (it must be the same)

Choose AMD Check2 as a receipt method (No remiitance and clearance by matching)
3- speceify customer name
4- Submit and apply manually

5- Action post to legder

6- View accounting : see that remitted cash is debited , this account is assigned to the receipt method

7- From Navigator > go to Bank Statmnet and Reconcilation

to clear this AR Reecipt
8- Cretae bank statement :
we will create a bank statement and receoncile the Receipt
9- Enetr statement details like bank account, date, statement ID

10- Go to statement Lines press on +

11- Enter the line details like amount , date, reconcilation reference (in this case is the receipt number ), transaction code,
flow idicator (credit or debit depends on the transaction type like Payamne or receipt
12- Then Click ok > save and close
13- From the right side meanu > choose manual reconcilation

14- entered bank account and date then click on search

15- select bank statement line and the Receipt to reocniled it > then click on reconcile
16- click done
17- go back to receipt > accounts receivable
search back the receipt again > Manage Receipt
18- enter receit number and click search
19- notice that the status of the receipt is NOW Cleared

20- open the Receipt and from action >post to ledger

21- View Accounting
See that the cash accountis debited as the money is cleraed and the remitted cash is creadited
[Link].4.2 Scenario-3 Remittance & Clearance
Overview:
the state of the receipt in this scenario is considerd as cleared when it’s a reconcile with a bank statement or manuly cleared

We will use in this third scenario reiept method with Standard remittance method and clearance method is By matching
1- Navigate to Account Receivable > Create Receipt

2- Enter receipt type, Currency, entered amount , receipt method, Receipt Number

receipt and accounting date (it must be the same)

Choose AMD Check STD as a receipt method (No remiitance and clearance by matching)
3- Scroll down > speceify customer name
4- Submit and apply manually

5- From Action > post to legder

6- View accounting : see that confirmed cash is debited , this account is assigned to the receipt method > then click
DONE

7- Create receit Remittance batch from the right side menu

8- We need to create a rmittance as a receipt class standard for the receipt method
9- Scroll down and on the receipt click on + button

10- Search for the receipt that we enterd before

11- Select the receipt and click apply & done

12- See that the receipt is chosen

13- Save and close the remittance Batch

14- Go to manage receit remittance batch on the right side menu

15- Search for the remittance batch

16- See the status is a Completed creation > the press approve (this approve can be taken by the manager or the
Receivabls supervisor)
17- You can navigate to the schedule procee to check the status of this process

18- Open the rightside meanu and click manage receipts

19- Search the receipt
20- the status of the receipt changed to Remitted
21- open the Receipt and from action >post to ledger

22- view accounting: see that the remitted cash is debited and confirmed cash is Credited
23- From Navigator > go to Bank Statmnet and Reconcilation
to clear this AR Reecipt
24- Cretae bank statement :
you can create a new a bank statement and receoncile the Receipt

or you can open the existing Bank statement and eidt it to add a new statement Line

Open exisiting bank statement for the same bank accound and click on pencil to edit it

25- Go to statement lines and click + to add more lines

26- Entred the line details like : amount, date, receoncilation reference and type
Here we enterd the same amount of our receiept the press > OK
27- The sttus is UNRECONCILLED > Save and close

28- From the right side meanu > choose manual reconcilation
29- entered bank account and date then click on search
30- select bank statement line and the Receipt to reocniled it > then click on reconcile
31- click done
32- go back to receipt > accounts receivable
search back the receipt again > Manage Receipt

33- enter receit number and click search

34- notice that the status of the receipt is NOW Cleared

35- open the receipt and from action >post to ledger

36- View Accounting
See that the cash accountis debited as the cleareance done and the remitted cash is creadited