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Receipts: Setup and Usage of New Automatic Cash Application Functionality (Doc ID 1906907.1) To Bottom

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Abstract
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History
Details
Document Details
1. Introduction
2. Automatic Matching Rule
Type:
WHITE PAPER
3. Automatic Matching Rule Set Status:
PUBLISHED
Last Major
4. Assign default Automatic Matching Rule Sets in System Options for each Operating Unit Mar 17, 2016
Update:
Aug 24, 2016
5. Assign default Automatic Matching Rule Sets in Customer Profile Classes and Customer Account/Site Profile Forms Last Update:

6. Remittance Lines Form

7. Changes in Lockbox Related Products
8. Changes in Quick Cash Process Oracle Receivables
9. Changes in Receipts Form
10. Automatic Cash Application Concurrent Program Information Centers

11. Menus and Function Security Options Information Center: Overview

of the Receipts Workbench in
12. Other Seed Data Oracle Receivables (AR) 11.5
and later [1362278.2]
References
Information Center: Month End
Processing in Oracle
APPLIES TO: Receivables (AR) [1370198.2]

Information Center: Overview

Oracle Receivables - Version 12.1.3 and later of AutoInvoice in Oracle
Receivables (AR) 11.5 and later
Information in this document applies to any platform.
[1137414.2]

ABSTRACT Information Center: Overview

of the Transactions Workbench
in Oracle Receivables (AR) 11.5
Note that Dev will provide the password for enabling the feature based on the following conditions. and later [1320546.2]

Information Center: R12

1. There is no documentation available for this feature. Dev will share the FDD. Critical, Rollup and
2. Customer need to try out this feature, and should agree to share their experience of using this feature with development. Recommended Patches for
Oracle Receivables (AR)
[1433375.2]
This is the general policy Dev will follow, if any other customer want to use this feature. Dev would like to understand the
customer business use case first (or) need for this feature to release this patch to this customer.Customer needs to provide the Show More
details, Dev will provide the password accordingly.
Document References
We request you to provide the above details so that we can obtain the password.
Oracle E-Business Suite
Account Receivables Cash
HISTORY Application Work Queue White
Paper [1206984.1]
Created date: JUL-2014 Customer Form Issue:
Automatic Matching Rule Set
Defaults Value AutoRuleSet-1
DETAILS [1622745.1]

1. Introduction
Recently Viewed
The process described in this document provide an automated method to apply any fully or partially unapplied receipt, regardless
Receipts: Setup and Usage of
of the source of origin, to outstanding receivables transactions at the header level, partially or in full. The automated process New Automatic Cash
works based on the user-defined matching rules. Application Functionality
[1906907.1]
Automatic cash application process affects any fully or partially unapplied receipts (manual, automatic, lockbox, quick cash, R12: AP: Master GDF
prepayment and deposits) and all outstanding AR transactions (invoices, debit memos, chargebacks and deposits). Diagnostic (MGD) Analyzer to
Validate Data Related to
The application process occurs at the transaction header level, partially or in full and the receipt that is applied can be either Invoices, Payments,
manually entered in the system or uploaded automatically by any supported method. Accounting, Suppliers and
EBTax [VIDEO] [1360390.1]
The receipt can be applied on any invoice created for customer entered on receipt header (across customer sites within customer SRDC - Data Collection for
account) or any 3rd party payer (across a group of associated customers). AP Period Close [1666547.1]
SRDC - Data Collection for
AP Create Accounting
[1666546.1]

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AR to GL Reconciliation
Report (ARGLRECR)
Completes in Error -
2. Automatic Matching Rule ORA-06502: PL/SQL:
Numeric or Value Error:
New form Automatic Matching Setup allow users to maintain matching rules and matching rule sets and can be accessed using Character String Buffer Too
the following navigator path: Setup>Receipts>Automatic Matching Setup. Small -
APPS.ARP_RECON_REP
Automatic Matching Rules page has 2 tabs: [1594300.1]
Show More
Automatic Matching Rules that allow users to create, update and view matching rules
Automatic Matching Rule Sets that allow users to create, update and view matching rule sets

Create Matching rule:

Click the Create button on the Automatic Matching Rules page in order to create new matching rule:

Using the Automatic Matching Rules, users can instruct Receivables how to find customer debit items for applying the receipts.
The matching rule comprises of following two sections:

1. Matching Criteria

2. Matching Attribute Transformation

Matching Criteria:

User can use the attributes of the rules to build the matching criteria. The key attributes are as follows:

Match Receipts By

Customers use various business document numbers as references while remitting money to their suppliers. Receivables provides
the following list of business documents which can be used to match with the reference numbers provided in the receipt
remittance lines:

Transaction Number (AR Invoice, Debit Memos, Deposits, etc.)

Sales Order Number
Reference Number
Purchase Order Number
Way Bill Number
Balance Forward Billing Number
Service Contract Number
Interface Header Attribute1 to Interface Header Attribute15

Match on Transaction Amount

In addition to using the business document numbers for matching, transaction amount can also be used to refine the search and
improve the accuracy of the match. Receivables provides following two options for matching on corresponding amount:

For Duplicates Only: Users can choose this option to match on corresponding amount only when the document number
provided as reference cannot provide unique receivables transaction to apply the receipt. For example if the Sales Order
number is used as Match Receipt By reference number and if multiple invoice numbers refer to same sales order number
then system will select the invoice whose amount exactly matches the remittance line amount.
Always: When the user chooses this option, Receivables will always select the transaction only when its amount matches
the remittance line amount, irrespective of whether or not match by reference number results in multiple transaction
matches.

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For any business document reference number selected for Match Receipt By attribute, Receivables will first select the receivables
transactions, which refer the business document number, and then matches the amount of the receivables transaction with the
remittance line amount.

When attempting to match the remittance line amount with the transaction amount, Receivables will also take into consideration
earned discount, if any applicable. Receivables will deduct the applicable earned discount from the transaction amount and then
attempt to match with the remittance line amount.

In the case of matching with Balance Forward Bill number, system will match with Balance Forward Bill amount not with the
amount of individual transactions included in the Balance Forward Bill.

Match on Corresponding Date

In addition to using the business document numbers and amounts for matching, transaction dates can also be used to refine the
search and improve the accuracy of the match. Receivables provides following two options for matching on corresponding
amount:

For Duplicates Only: Users can choose this option to match on corresponding date only when the document number
provided as reference cannot provide unique receivables transaction to apply the receipt. For example if the Sales Order
number is used as Match Receipt By reference number and if multiple invoice numbers refer to same sales order number
then system will select the transaction matches after matching the dates as per the option selected for Match Date By
attribute.
Always: When the user chooses this option, Receivables will always select the transaction only when the relevant date,
based on the option selected for Match Date By attribute matches the date reference on the remittance line, irrespective
of whether or not match by reference number results in multiple transaction matches.

For any business document reference number selected for Match Receipt By attribute, Receivables will first select the receivables
transactions, which refer the business document number, and then matches the relevant date of the receivables transaction with
the date reference on the remittance line.

Match Thresholds

Match Thresholds can be used to allow certain amount of tolerance when remittance and transaction attributes are matched.
Receivables provide both automatic match tolerance and suggested match tolerance. Receivables will automatically match the
transactions only when the match score is greater than the automatic match tolerance. If the match score is less than the
automatic match tolerance but greater than suggested match tolerance then those matches will be made available to user as
suggested matches. User can manually review the suggested matches and apply them, if appropriate.

Matching String Transformation

This region allows the user to define how a remittance reference number and document numbers should be transformed for the
purpose of matching. The region allows users to define string functions to be applied to the remittance reference and document
number before system attempts to find a match for the receipt.

String transformation can be performed on both the remittance line reference number and document numbers in the system.
User can add multiple transformation rows for each of the numbers. Multiple rows will be interpreted as having AND Boolean
operator. Each transformation row will be executed in the order of sequence number. When multiple transformation rows are
defined the result from the prior transformation row is passed to the next transformation row and so on for performing string
transformations.

Defining matching string transformation rules is optional. User can create an automatic matching rule without creating any rules
for transforming remittance reference and document numbers.

String transformation is performed as follows:

If the String Value is Space then all spaces will be removed from either front or end of the string based on the value
given for String Location field.
If the String Value is Zero then all zeros will be removed from either front or end of the string based on the value given
for String Location field.
If the String Value is Any then system will remove specific number characters from either front or end of the string based
on the values given for String Location field and No. of Characters fields.
If the String Location is Floating the system will remove all occurrences of the character(s) specified in the String Value
field.

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To change a rule: search for the rule and press Update button:

3. Automatic Matching Rule Set

The page allows users to:

1. Search for existing automatic matching rule sets;

2. Initiate creation of the new rule sets;
3. Initiate update of the rule sets;

This form allows user to group automatic matching rules into a set. User can also assign a priority to the each rule in the group.
Priority determines the order in which system will evaluate each rule for matching the attributes.

Click the Create button on the Automatic Matching Rule Sets page in order to create new matching rule set:

Enter: rule name, description, effective from, assign matching rules and assign a priority for each rule then save.

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In Exception Reason field can be selected a value user defined exception reasons from the lookup AR Cash Application Exception
Reason.

4. Assign default Automatic Matching Rule Sets in System Options for each Operating Unit

Setup>System>System Options

Search for Operating Unit, select Miscellaneous tab and enter a Automatic Matching Rule Sets and save:

The automatic matching rule set defined in the System Options form acts as default rule set at the operating unit level.

5. Assign default Automatic Matching Rule Sets in Customer Profile Classes and Customer Account/Site Profile Forms

The automatic matching rule set defined for the customer profile class will default to customer account profile.

Customers>Profile Classes

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Customers>Customers

The automatic matching rule set defined for the customer profile class will default to customer site profile.

By default, the Automatic Matching Rule Set field is hidden at customer and customer profile level.
Please use Product Personalization to enable the Automatic Matching Rule Set Field.

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6. Remittance Lines Form

A new Remittance Lines form was introduced to display remittance lines for a receipt. User can view, modify, delete and enter
new remittance lines. The form can be accessed from the QuickCash form by clicking the Remittance Lines button.

For the Quickcash batch created through lockbox process, the Remittance Lines region will show the remittance lines imported
through lockbox file. In the case of manual Quickcash batch, the form will not contain any lines. In both cases the form allows
users to view and update existing remittance lines, as well as create new remittance lines.

Form validates that total amount of all remittance lines does not exceed the receipt amount.

Example for a manual Quickcash batch:

Post Quick Cash program was enhanced to launch the new Automatic Application concurrent program: Automatic Cash
Application Master Program

The Post QuickCash program will first process all the receipts in the quick cash batch. If the user selects the application type as
Automatic Matching Rule then the Post Quick Cash program will not apply the receipt. When the Post Quick Cash program has
completed its processing it will launch the Automatic Application program to match and apply the receipts having application type
as Automatic Matching Rule.

7. Changes in Lockbox

The Lockboxes setup form was enhanced to store processing options for automatic receipt matching.

Setup>Receipts>Lockboxes>Lockboxes

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The lockbox import and validation programs will be enhanced to support the new automatic receipt matching process.

The receipt matching section of the Lockboxes form has three new setup fields to define the processing options for automatic
receipt matching. The new fields are:

1. A new checkbox Use Automatic Matching Rules to specify that receipts processed through lockbox will be applied using
automatic matching rules.
2. A new field Automatic Matching Rule Set to store the automatic matching rule set, which would be one of the sources for
populating the automatic matching rule set on the receipts processed through lockbox.
3. A new checkbox Use Autocash Rules when no lines found to specify that receipt should be processed using Autocash
rules when no remittance lines are available for automatic matching.

If the user has selected to use automatic matching process then the lockbox processing will work as follows:

1. The Process Lockboxes program will not validate the transaction reference information like reference numbers (Invoice1 to
Invoice8 columns) and reference dates (Matching Date1 to Matching Date8 columns), etc.
2. The Process Lockboxes will not match receipt remittance lines with customer debit items.
3. The Process Lockboxes will not populate the receipt application information in the interim receipt tables.
4. The Process Lockboxes will populate the transaction reference information in a new remittance lines table. The mapping
between lockbox transmission format attributes and remittance lines table is as follows:
a. Invoice1 to Invoice8 attributes will be mapped to Reference Number column.
b. Matching Date1 to Matching Date8 attributes will be mapped to Matching Date column.
c. Amount Applied1 to Amount Applied8 attributes will be mapped to Amount column.
d. Amount Applied From1 to Amount Applied From8 attributes will be mapped to Amount Applied From column.
e. Invoice Currency Code1 to Invoice Currency Code8 attributes will be mapped to Currency column.
f. Customer Reference1 to Customer Reference8 attributes will be mapped to Customer Reference column.
g. Trans to Receipt Rate1 to Trans to Receipt Rate8 attributes will be mapped to exchange rate column.
h. Installment1 to Installment8 attributes will be mapped to Installment Number column.
5. Process Lockboxes program will populate application type as Automatic Matching Rule in the interim receipts table.
However, if the receipt does not have any remittance lines and the user has selected the option Use Auto Cash Rules
when no lines found then the lockbox program will populate application type as Auto Cash Rule.
6. Process Lockboxes program will derive the automatic matching rule set and populate in the interim receipt table. Rule set
will be derived using the following hierarchy:

a. If the customer is identified for the receipt then:

i. From the customer site profile
ii. If rule set is not attached to site profile then from the customer account profile
b. If the customer is not identified or no rule set is defined for the customer site or account then the automatic
matching rule set assigned to the lockbox.

8. Changes in Quick Cash Process

The Post Quick Cash program was enhanced to launch the new Automatic Application concurrent program.

The Post Quick Cash program will first process all the receipts in the quick cash batch. If the user selects the application type as
Automatic Matching Rule then the Post Quick Cash program will not apply the receipt.

When the Post Quick Cash program has completed its processing it will launch the Automatic Application program to match and

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apply the receipts having application type as Automatic Matching Rule.

9. Changes in Receipts Form

The Receipts form was enhanced to provide new attributes for automatic matching.

Two new attributes were added in tab More on Receipts form:

1. Use Automatic Matching Rules checkbox to indicate whether receipt is eligible to automatic application using auto match
rules.
2. Automatic Matching Rule Set field to store the automatic matching rule set to be used for automatic application.

In Tools menu of the receipt workbench was added a new menu item Remittance Lines.

Selecting this action will open the Remittance Lines and Suggested Matches form.

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The form Remittance Lines and Suggested Matches displays the remittance lines imported through lockbox process as well as
manually entered by the user.

The form will also display the suggested matches generated by the Automatic Application program.

Each remittance line has a status of either:

Auto applied when the Auto Applied checkbox is selected

Manually applied when the Manually Applied checkbox is selected
Not applied when neither Auto Applied or Manually Applied checkboxes are selected

The form allows user to update the remittance lines when they are not yet applied. Once either auto applied or manually applied,
users cannot update the remittance lines.

If the remittance line is not applied then user can select one of the suggested matches for the line and apply the same by clicking
the Apply button. The Apply button will navigate the user to Application form and populate the application information.

For current record in Remittance Lines region, the Suggestion Matches region will show one or more suggested matches for the
remittance line.

For an unapplied remittance line, user can select one or more suggested matches to apply, by click on the Select checkbox in
the Suggested Matches region. If the user selects more than one suggested match the system will prorate the remittance line
amount in the ratio of remaining balance for the selected suggested matches. For applied remittance lines, user cannot select any
suggestion match for application.

Rules for selecting the suggested matches for application are as follows:

If the customer is already identified for the receipt then user can select suggested matches belonging to the customer on
the receipt as well as the customers with whom that customer has paying relationship. If the Allow Payment of Unrelated
Transactions option is selected in the System Options then transactions belonging to any customer can be selected for
application.
If the customer is not already identified for the receipt then all suggested matches selected should belong to same Bill To
Customer.

Note: In this case, system will associate the receipt with the customer whose transactions are selected from suggested matches.

In Actions menu was added a new menu item Auto Apply which will launch the Automatic Cash Application concurrent to
automatically apply the receipt.

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10. Automatic Cash Application Concurrent Program

The purpose of the Automatic Cash Application Master Program concurrent program is to match an unapplied receipt in the
system with an outstanding AR transaction using the user-defined matching rules.

In cases when the matching score equals to or exceeds the threshold for automatic match, the credit will be automatically
applied.

In cases when the matching score equals to or exceeds the threshold for suggested match but does not reach the threshold for
automatic match, the remittance line will not be automatically applied. Instead, it will be tagged with suggested matches and the
presented to the user and the user can choose which transactions this receipt should apply to.

Parameter Required

Operating Unit Yes

Receipt Number Low No

Receipt Number High No

Receipt Batch Name Low No

Receipt Batch Name High No

Minimum Unapplied Amount No

Receipt Date From No

Receipt Date To No

Receipt Method Low No

Receipt Method High No

Customer Name Low No

Customer Name High No

Customer Number Low No

Customer Number High No

No. of Instances (value from 1 to 100) Yes

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The Automatic Cash Application Master Program will select a batch of receipts based on the criteria provided by the user in the
program parameters. The program will then apply the automatic matching rule sets assigned to the receipt to either find a match
to apply the receipt or generate a list of suggested matches. In addition to the selection criteria specified in the program
parameters, the program will select a receipt for auto application only if the receipt:

Has the Use Automatic Matching Rules check box selected;

Has unidentified or unapplied amount available for application;
Has unapplied remittance lines available for application.

Once the program selects a receipt for automatic application the program will loop through all unapplied remittance lines and
attempt to automatically apply the remittance line using automatic matching rules.

The program will use the automatic matching rule set assigned to the receipt to perform matching.

If a rule is successful in providing automatic match then rest of the rules will not be evaluated. However, if the rule is successful
in only providing a suggested match or does not provide any match then the program will use the rule with next highest priority.

Once the program finds matches and calculates match scores, it will use the match score thresholds defined for the automatic
matching rules to determine whether the match is eligible for automatic match or suggested match.

If the program finds multiple matches which exceed the automatic matching threshold then program will use the match with
highest score to apply the remittance line.

Following conditions must be satisfied for the system to automatically apply the remittance line:

If the customer is already identified for the receipt then the select matches must belong to the customer on the receipt or
the customers with whom that customer has paying relationship. If the Allow Payment of Unrelated Transactions option
is selected in the System Options then transactions can belong to any customer.
If the customer is not already identified for the receipt then all selected matches should belong to same Bill To Customer.

Note: In this case, system will associate the receipt with the customer and Bill To location, whose transactions are selected for
automatic application.

Apart from the threshold for automatic match, the selected match should also satisfy the Match on Corresponding Date
and Match on Corresponding Amount conditions of the Automatic Matching rule.

If the program is successful in finding a match then the program will apply the receipt. This will ensure that all the existing
validations will be applied for receipt application.

After a match is successfully applied, system will:

1. Update the Auto Applied flag of the remittance line to selected state.
2. If the receipt has customer location assigned then updated the customer site profile to store the auto match rule, the one
that was successful in the finding the match. If the customer location is not assigned to the receipt then update the
customer account profile to store the auto match rule.

Application to Balance Forward Bills:

In the case of applying a remittance line to a Balance Forward Bill, system will:

First select all open transactions of the bill;

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Sort them by transaction date;

And then apply the remittance line amount in the sort order till the application amount is exhausted.

Suggested Matches:

If the program fails to find automatic match but finds match with a score, which exceeds the suggested match threshold then the
program will populate the new table introduced to store the suggested matches. For generating suggested match, the program
will not apply the Match on Corresponding Date and Match on Corresponding Amount conditions of the Automatic Matching rule.

The program also assign the exception reason from the automatic matching rule set to the receipt, if the receipt has at least one
unapplied remittance line which the program could not automatically apply.

The program provides an execution report as output, which will list the matching outcome for the each remittance line processed
by the report.

The program is capable for parallel processing to improve the performance. Based on the value specified for the No. of
Instances parameter, the program will launch the child requests which will process the data in parallel.

11. Menus and Function Security Options

A new menu entry Automatic Matching Setup was introduced to provide access to automatic matching setup UI pages. This
menu entry will navigate user to the Maintain Automatic Matching Rule Sets page. This menu entry was added to the existing
seeded menu AR_SETUP_RECEIPTS_GUI.

New security functions were introduced to control creation and updating of automatic matching rules. The new functions are as
follows:

Create Automatic Matching Rule To control access to Create Automatic Matching Rules page.
Update Automatic Matching Rule - To control access to Update Automatic Matching Rules page.
Create Automatic Matching Rule Set To control access to Create Automatic Matching Rules Set page.
Update Automatic Matching Rule Set - To control access to Update Automatic Matching Rules Set page.

The above new functions are added to the seeded menu AR_SETUP_RECEIPTS_GUI.

12. Other Seed Data

Automatic Cash Application Exception Reasons will be maintained through lookup codes.

The following lookup will be seeded:

Automatic Cash Application Exception Reason

Table: FND_LOOKUPS

Lookup Type: AR_AUTO_CASH_APP_EXCEPTION_REASONS

Meaning: Automatic Cash Application Exception Reasons

Application: Receivables

Description: Automatic Cash Application Exception Reasons

Access Level: Extensible

Download the white paper in pdf format from here.

REFERENCES

NOTE:1206984.1 - Oracle E-Business Suite Account Receivables Cash Application Work Queue White Paper
NOTE:1622745.1 - Customer Form Issue: Automatic Matching Rule Set Defaults Value AutoRuleSet-1
Didn't find what you are looking for? Ask in Community...

Attachments
The white paper in df format for download (1.14 MB)

Related
Products
Oracle E-Business Suite > Financial Management > Credit to Cash > Oracle Receivables > Receipts Related > Automatic Receipts

Keywords

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AUTOMATIC; MATCH RECEIPT; MATCH RULES; MATCHING; RECEIPT; UNAPPLIED RECEIPTS; WHITE PAPER

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