🔹 What Are Customer Payments in Oracle Fusion?
Customer Payments refer to the process of managing money received from customers for goods or services. This is a key part of the Accounts Receivable (AR) cycle in Oracle Fusion Cloud Financials.
🔹 Key Components of Customer Payments Process
1. Receipt Creation
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Receipts are created when payments are received from customers.
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Can be manual (entered by a user) or automatic (via bank statement imports or lockbox files).
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Supported payment methods include:
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Checks
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Bank Transfers
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Credit Cards
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ACH / Electronic Payments
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Cash
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2. Receipt Application
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Applying receipts means matching the payment to the correct open invoice(s) or transactions.
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Types:
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Manual application: User chooses which invoices to apply.
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Auto-apply: System matches based on rules or invoice numbers.
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Partial Application: Payment is applied partially to an invoice.
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Overapplication / On-account: Excess amount is held on account.
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3. Remittance Process
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Once receipts are applied, they may be remitted to the bank (especially for checks).
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Tracks the settlement and clearance of funds.
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Supports direct debit and electronic remittance advice.
4. Reconciliation
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Ensures the payment reflected in Oracle matches with the bank statements.
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Part of the Cash Management module.
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Reconciles receipts to actual bank deposits.
🔹 Modules Involved
✅ Receivables (AR) Module
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Primary module for managing:
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Customer invoices
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Payment receipts
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Credit memos and adjustments
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Payment application and refunds
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✅ Advanced Collections
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Helps follow up on overdue payments and delinquent customers.
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Tracks payment promises, dunning letters, and collection strategies.
✅ Cash Management
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Manages bank statement reconciliation.
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Helps in identifying unapplied/unidentified receipts.
🔹 Key Scenarios in Oracle Fusion Customer Payments
| Scenario | Example | Fusion Features |
|---|---|---|
| Full Payment | Customer pays full invoice amount | Auto-apply by invoice # |
| Partial Payment | Customer pays $800 for $1000 invoice | Remaining balance tracked |
| Overpayment | Customer pays $1200 for $1000 invoice | $200 moved to on-account |
| Unidentified Payment | Payment received without customer info | Parked as unidentified, pending research |
| Refunds | Customer paid twice | Credit Memo + Refund processing |
🔹 Automation Options
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Lockbox Integration: Auto-import customer payments from banks.
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AutoMatch Rules: For automatic application of receipts.
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Bank Reconciliation Rules: Match receipts with bank statements.
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Collector Work Queue (Collections): Prioritize follow-ups on unpaid invoices.
🔹 Benefits of Managing Customer Payments in Oracle Fusion
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Real-time tracking of customer balances.
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Reduction in Days Sales Outstanding (DSO).
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Automation of routine processes like application and reconciliation.
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Enhanced cash forecasting and reporting.
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Better collection and dispute resolution management.
