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R12: PPRs: How To Set Settlement Date on NACHA Payments (Doc ID 1325084.1)

Last updated on DECEMBER 04, 2019

Applies to:

Oracle Payables - Version 12.0.0 and later
Information in this document applies to any platform.

Goal

When doing a payment batch in R12 (aka, "Payment Process Requests" or "PPRs") how can one generate a Settlement Date in a NACHA file?
1. Record type: 5
2. Location: 70-75

It currently generates a NULL value and users have to manually put the next working date (business day) into this field. The users know they need to modify the IBYDE_N1US_en.rtf template, but wonder if the XML generates the next working date (business day) after the payment date. Their bank doesn't process the payment the same day, and they don't take the file if the settlement day falls on holidays.

In other words, the users cannot use InstructionGrouping/PaymentDate. So what is the standard functionality for entering settlement dates on ACH payment?

Oracle Support sent the following issue clarification to Oracle Development:

"I agree with you that the transaction will not affect the TOTAL of the Assets and Liabilities [on the Balance Sheet], but ....the timing of the transaction will certainly have an affect on the individual account balances -- including the Cash Account (asset) and the Accounts Payable balance (liability). Those are critical account balances for internal cash flow reports, and outside reporting to the SEC, banks, venture capital firms, stockholders, etc. -- especially if the period-end is also the year-end.

The customer's update....indicates that they are using "Trade Date Accounting" instead of "Settlement Date Accounting", so in that case, the GL Date should match the Payment Date....[T]heir initial Problem Statement indicates that although they would prefer to use the Payment Date exclusively, their bank will not process their payments on the Payment Date, nor will they process the payments if the day(s) after the Payment Date falls on a weekend or holiday.  So they are forced into using Settlement Dates to meet their bank's [requirements]. [Is] there no option (within current functionality) to have the GL Date set to match the stated Payment Date, and the Settlement Date be calculated out by the system based on the premise "Payment Date +1 (or 2 or 3, based on calendar weekends and/or holidays)?"

Solution

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