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Managing receipts for credit card or ACH transactions – Part II

Posted on January 2nd, 2008 by Sanjit Anand ||Email This Post Email This Post

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Read this: Managing receipts for credit card or ACH transactions

Very similar to prepayment functionality in Oracle AR, the alternate options can be use of Receivables Automatic Receipts feature to automatically generate receipts for customers who use a credit card to remit payments for open debit items. By providing a credit card number as payment, your customer expects that the credit card issuer will transfer funds to your bank account as payment for their open debit items. The Automatic Receipts program lets you collect payments according to a predefined agreement with your customer. The Automatic Remittances program transfers funds from the customer’s bank account to yours on the receipt maturity date.

The Following Steps are Required to Process Credit Card Payments In Receivables:

  • First things is to assign a credit card payment method and credit card bank account to the transactions that you want to pay by credit card in your oracle side. This assignment “flags” transactions for credit card payment.
  • Next is to run the Automatic Receipts program and this will select the transactions that are flagged for credit card payment. The Automatic Receipts program creates a batch of receipts (payments) for the selected transactions.
  • Then , approve the batch of automatic receipts to reserve the payment amount from your card holder’s account and close the selected transactions. When the approval process is complete, automatic receipts that do not require confirmation close the invoices that they are paying. Receipts that require confirmation close invoices when you manually confirm the receipts in the Receipts window.

As per Technical Reference manual(TRM) ,from the Oracle side , when you approve a batch of automatic receipts, Receivables checks the Payment Server Order Number (PSON ) field for each receipt in the batch. If the Approve Automatic Receipts program encounters a null value, then it generates a PSON and sends the receipt batch to Oracle iPayment for credit card authorization. iPayment integrates with third party payment processors to authorize your customer’s credit card account number and assign an approval code to the transaction. If authorization is successful, then iPayment assigns the approval code and the receipt is approved. If authorization is not successful, then the receipt is rejected from the batch. If the PSON exists, then Receivables will not attempt to authorize, but will create and approve the receipts. We will take ipayment architecture in greater details in some other post.

  • Then, have to create and approve a remittance batch to request transfer of funds from the credit card issuer to your bank. For automatic receipts, you remit receipts to your bank so the bank can transfer funds from the customer’s account to your account on the receipt maturity date. For manual receipts, the bank credits your account when the customer’s check clears. The remittance process initiates the transfer of payment for transactions that are paid by credit card or electronic funds transfer . The remittance process is very similar to the automatic receipt creation process. You must Create, Approve, and Format your remittances. You can combine these operations into a single step or perform each separately. You can either create one remittance batch per remittance bank account or choose a clearing institution. If you choose a clearing institution, Receivables will select all the receipts belonging to remittance banks that have this clearing institution assigned to them.

Following Step are The Key Set Up Considerations for Credit Card Set Up in Receivable

  1. Step-1 Define Remittance (Internal) Bank Account
    Define Remittance Bank
  2. Step-2 Define Receipt Class
    Define Receipt Class
    Setup->Receipts->Receipt Class
  3. Step-3 Create And Assign Document Sequence For Automatic Receipts
  4. Step-4 Verify That The Ipayment Server URL Is Defined
    In Sysadmin
    Check Site Level
    Query Profile: ICX: Payment Server URL
  5. Step-5 Create Invoice And Flag For Credit Card Processing
  6. Step-6 Run Automatic Receipts For Approval
    N->Receipt -> Batches
    Provide Appropriate Values For Automatic Receipts,Payment Method,Receipt Class and approve in the last.
  7. Step-7 Run Automatic Remittances For Capture
    Choose The Batch That You Created And Run Automatic Remittances. This Program Captures (Settles) The Funds Via The Ipayment Server.

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Posted in Oracle Application, Oracle Receivable | 3 Comments »Email This Post Email This Post |

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3 Responses
  1. Sachin Agrawal Says:

    I need help/support for implementing R12 iReceivables and “Oracle Payments” for Crdeit Cards and ACH. If anyone has a BR100 or any other good document please email me at Also if anyone good in these modules and willing to help/support me can email me at

  2. Sanjit Anand Says:


    There is hardly any change in Irec of r12. there is one white paper in metalink, which describe for Credit Card Integration with irec.

    Let me know, which Payment gateway you are using for credit card.

    If you have any intent to use HSBC servics let me know, i will share some information.

    Where is your client located. if in US i donot think HSBC one is going to help.

    Configration would not be difficult if you follow the steps that is mention in metalink white paper.

  3. Anand J Says:

    Hi Sanjit,
    I need help in understanding payment processing in Advance collections IEXRCALL form for credit card.

    The scenario:
    1.Query up the customer
    2.Select two invoices to process
    3.Since the card has per transaction limit one of the invoices get approved and the bank sends the authorization and a decline for the second invoice.
    4.Receipt is not getting created for the authorized payment.

    Is this something normal or we are missing any setup.

    Thanks for your time and assistance on this.


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