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Understanding AR Receipt, Point of sale, API’s & Intergration with Oracle Application

Posted on January 11th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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Implementing a POS system in Healthcare sector is not easy task in Oracle application. In healthcare there is always a need to integrate with a POS solution for front desk user, which is exposed directly to end customer. The typical requirement for such kind of segments in term of 'point of sales' are:

  • Transaction entry
  • Receipt creation
  • Receipt printing
  • Recognizing the payment from Remittance bank.
  • Reconciliation in General ledger

So what is POS Software?

POS stands for Point Of Sale. This is a rather broad definition that can include merchandising aids, displays and the methods used to enable transactions. A PC point-of-sale system designed around a standard personal computer.

Customers can add various peripherals to the system to meet their own particular needs. Basically a POS system consists of a receipt printer, a reader (check reader, magnetic stripe reader), keyboard, barcode scanner, applications, software, etc. The main goal of a POS system is to complete the whole transaction in an acceptable amount of time.

POS systems now are days can automate several other areas of company business and are not limited to simple cash register functions which was once a time. With new technological development these can be automate accounting functions like payroll, accounts receivable and payable, they can track inventory, control and automate price updates and much, much more.

How does the point of sale receipting function work?
Once Customer is agreed to pay, front end office need to be initiated the acceptance of payment of transaction which is already been booked .Once customer makes their payment, front end needs to issue a receipt back to the customer.

Very often , these are question in mind if such kind of requirement came to your implementation phase..

  • Do we have seeded functionality to accommodate POS system?
  • Is there any module in 11i/R12 , which can be used to some other application or can we handle it in AR by any work around?
  • Does anyone know if Oracle has a P.O.S. module of any sort that can handle cash receipting?

The one and only answer is not yet in oracle have capability, which can directly plug with any POS system for receipting.

Then, what are the options for a point-of-sale system that will integrate in with Oracle?

Three options can be best deal with this case:

  1. Customize Oracle: This mean customize AR Transaction form (arxtwmai.fmb), use zoom feature in of custom.pll and add few screen to capture some details from POS feeder system, and printing receipt.
  2. Buy a 3rd Party system and have batch mode interface for receipt creation.
  3. Third Party POS system and use of Middleware to interface with Oracle in real time.

As we know, one of the great functionality of EBS is nut and bolt, by mean of Third part application or integrating via API's. Oracle offers a middleware piece to communicate with the database, with the use of products like MQSeries ,allows you to communicate directly to the Oracle database by using APIs.The flow should like:
POS -> MIDDLEWARE -> API -> Oracle

Let take a dive for other part of the game:

The difference in handling both kind of receipt:

As it well known oracle allows two types of receipt Cash and Miscellaneous.
Cash receipts are those that apply to a customer account and can be applied to a customer and/or their transactions.

A miscellaneous receipt is a receipt such as bank interest that is income but which does not apply to an outstanding debt.

Then 'Reversing' means..

Reversing a receipt is usually necessary when cheques are returned as unpaid -when the customer has insufficient funds or for example. In these cases Oracle allows the reversal of a previously recorded receipt thereby showing the invoice balance as unpaid.

The only pre-requisite for this is to be informed that a check has bounced or there are insufficient funds to pay a receipt.

…Applying the Receipt

Once a receipt has been recorded it needs to be applied to a customer invoice so that the customer balance is updated and they are not chased for the outstanding amount.

Business scenarios for managing receipt

1. Receipts against multiple customer transactions
In these instances your customer will pay invoices on behalf of another customer, in addition to their own. You can apply a receipt to more than one customer.

2. Receipts against multiple invoices
In some instances a customer will send one payment that must be applied to numerous outstanding invoices. You can apply a receipt to more than one customer Invoice.

3. Apply Receipts on Account
In some instances a customer will send a payment without having any outstanding transactions to apply it to. These might be duplicate payments or payments for invoices

Unapplied Receipt

This receipt is not applied to an existing invoice when it is entered. When the customer does not want to apply the entered receipt they can leave it as unapplied and apply the amount on a later date.

On-Account

In case of an On-Account receipt, there is no identified invoice against the receipt. Advance money is received from the customer and the invoice for the same can be raised at a later date.

The World of API's

To integrate with Oracle apps there are 10 API's, such as:

a) Creating a cash receipt
b) Applying it to a debit item
c) Creating a cash receipt and applying it to a debit item in one pass
d) On-account application
e) Unapplying the On-Account application
f) Unapplying the receipt application to a particular transaction
g) Reversing the receipt
h) Create a Miscellaneous receipt
i) Create a cash receipt activity application
j) Unapplies a cash receipt activity application

The 10 Receipt API's:

1 AR_RECEIPT_API_PUB.CREATE_CASH : This is for creating a single cash receipt, as in case of manually created cash receipts.

2 AR_RECEIPT_API_PUB.APPLY : Applies a cash receipt if used in (1) to a particular installment
of a debit item. The application can also be a cross currency application.

3 AR_RECEIPT_API_PUB.CREATE_AND_APPLY : This API's can be used in place of 2 sepearte call as in (1) & (2) above. This will Creates a cash receipt and applies it to a specified installment of a debit item in one pass.

4 AR_RECEIPT_API_PUB.APPLY_ON_ACCOUNT : Does an On Account application for a cash receipt.

5 AR_RECEIPT_API_PUB.UNAPPLY_ON_ACCOUNT : Unapplies the On-account application on the specified receipt.

6 AR_RECEIPT_API_PUB.UNAPPLY : This unapplies the application of a particular installment of a debit item against the specified cash receipt.

7 AR_RECEIPT_API_PUB.REVERSE : This is used to reverses the specified receipt.

8 AR_RECEIPT_API_PUB.CREATE_MISC : This is used to creates a Miscellaneous receipt

9 AR_RECEIPT_API_PUB.ACTIVITY_APPLICATION : This is used to creates an activity application on a cash receipt

10 AR_RECEIPT_API_PUB.ACTIVITY_UNAPPLICATION : This API used to unapplies a particular activity application on a cash receipt.

The solution can be best understood as figure:

receipt

Next we will see how Remitance Bank and receipting will be integrated. Will discuss with the case how to dubug API's errors.

Related Posts

Posted in Oracle Receivable | 21 Comments »Email This Post Email This Post | Print This Post Print This Post

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21 Responses
  1. Military Blog Updates » Understanding AR Receipt, Point of sale, API’s & Intergration with … Says:

    […] Read the rest of this great post here […]

  2. Ming Chung Says:

    Thanks for Nice article….this was i looking for…

    Can you share some more inforamtion POS vendors…

    good work

    MChung

  3. Sunil Says:

    A very nice article anand, thanks for the information. will be great if you can continue with such informative
    articles.

    Good work

  4. Receipt & Cash Managment Says:

    […] Understanding AR Receipt, Point of sale, API’s & Intergration with Oracle Application […]

  5. Anshul Says:

    Excellent!! Outstanding!! Very good article for a technical consultant to enhance the understanding of AR functionality.

    Can you post some document which provide step by step details with screenshots for creating receipts and all other things.

    Keep good work up.
    Thanks,
    Anshul

  6. Kumar Says:

    Dear friend,

    I have a doubt regarding Applying a Receipt to a customer who is having accounts in two different operating units. colud you please suggest me in this regard….

    Thanks
    kumar

  7. Sanjit Anand Says:

    hey kumar,

    You cann’t apply to a customer who is having account with respective OU.

    The reason being
    1)Customer Bill_to or ship_to belong to one OU if working in 11i.
    2)Making a payment, your payment method is having a stamp of OU , which internally driving the bank details.

    There fore you cann’t apply a invoice which belong to a customer which belong to other OU.

    I hope this makes a clear.
    Incase any doubt, let me know

  8. Omkar Says:

    Hi Anand,
    Very nice article and good for Techonos. I have a doubt, while creating receipt against invoice, how we can differentiate whether such invoice is applied or not for receipt. any flags are there or some other value is different.
    Please can u guide me on this.

    Regards
    Omkar

  9. AR Adjustments : API - Sample code Says:

    […] is sample code that you can use for creating adjustment.This is tested while integrating with POS -Oracle […]

  10. yogesh Says:

    Hi Sanjit,

    We have a req. that the AR statements need to be sent through email/Fax/print depending on the customer preference. At prsent we have decided to capture customer preference/communication detail in a flexfield(Oracle standard fields are not useful) and then customize the ARXSGPO.rdf to create 3 concurrent porgs each of will cater to either print/fax/email facility. Do we have any other option apart from this? Normally when such is a requirement how this is implemented?

  11. Reem Says:

    Hi,
    where should bounced check be handled. Both functionality appears in cash management and Account receivable.

    Note Bounced check will be integrated with POS in order for end user to have access of customers with bounced checks and request paymend.

  12. naseer Says:

    can you tell me please that how can I use API for cash receipt in AR?? As I have inserted Invoice data through Interface table, but it seems difficult task to insert Receipt data through Interface table.
    thanks.

  13. Step by Step :Using Receipt API ->Create Cash Receipt (Scenario 1) | OracleApps Epicenter Says:

    […] time back , I had a post discussing AR Receipting , API’s avaiability and integration with POS based system. This post is sort of tutorial outlines the specifications and the […]

  14. Batch Control is not showing Decimal place (Rounding issue) | OracleApps Epicenter Says:

    […] Understanding AR Receipt, Point of sale, API’s & Intergration with Oracle Application […]

  15. Point of Sale Software Says:

    Hello, this post regarding ‘Understanding AR Receipt, Point of sale, API’s & Integration with Oracle Application’ is very useful.

    This post gives us useful insight about some facts of POS Software.

    Thanks

  16. TSW POS Says:

    What a great article regarding ‘Understanding AR Receipt, Point of sale, API’s & Intergration with Oracle Application’. This post gives us a clear understanding regarding some point of sale ( POS ) software facts.

  17. grad Says:

    Hi, regarding a simple point-of-sale transaction (e.g. purchasing an item from a store where the customer is just a walk-in cust), what process needs to be followed to move the transaction to Oracle 11i R12? What interfaces are needed and what is the most expedient way to achieve complete integration (order entry, invoicing, inventory, gl)? Thanks and would appreciate a response :)

  18. hi ganesh Says:

    i like so much this documents

  19. Mustafa Says:

    Hi,
    Thanks for the interesting post. I have one question please. Does this API supports creating a receipt and applying it to multiple invoices? or does it have to be a single invoice?. Another related question, is it possible to create the receipts through API and at a later time Apply it against one or more invoices all automated through APIs?

    Thanks in Advance

  20. Chandan Kansal Says:

    1. Receipts against multiple customer transactions.

    We have a test case: one customer is paying on the behalf of the other customer. There are two invoices for different customers.

    Can you explain how we can apply a receipt to more than one customer.

    Thanks

  21. Naveen Says:

    Very useful article. I have question when using AR_RECEIPT_API_PUB.CREATE_MISC can we create receipt with batch. I did not find that option or parameter to create MISC with batch.

    Thanks,
    Naveen

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