Issue with receipt reversal: APP-AR-999967187: The receipt is in the process of funds capture settlement

We see few cases where receipt could be in the remitted status and when we try to reverse this receipt, it gives below error:

APP-AR-999967187: The receipt is in the process of funds capture settlement. Receipt reversal is allowed only after settlement is processed in Payments module

So, we have below options:
1. wait till the receipt goes into cleared status and then reverse the receipt
2. review the setups and ensure receipt doesn't go to the remitted status and goes directly to cleared status (can be done if we are not using cash management and statement reconciliation)
3. Use below queries to update the data and proceed with the reversal:

update apps.IBY_TRXN_SUMMARIES_ALL set status = 0, object_version_number = 55
where initiator_extension_id in (
select payment_trxn_extension_id from apps.ar_cash_receipts_all where cash_receipt_id = &cash_receipt_id) and trxntypeid = 100;


Depending on the way receipts are reconciled, accounted and reported, you need to setup your receipt class and receipt method. Remittance method and clearance method play a vital role here.

Setup navigation:
Receivables Manager -> Setups -> Receipts -> Receipt class

Below is the description about these two values and how it impacts the receipt statuses (From Oracle documentation):

To require receipts created using a payment method assigned to this receipt class to be reconciled before posting them to your cash account in the general ledger, choose one of the following Clearance Methods:

·         Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing.

·         By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. (Receipts using this method can also be cleared in Oracle Cash Management.)

·         By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.

If you checked the Require Confirmation box, choose a Remittance Method. The remittance method determines the accounts that Receivables uses for automatic receipts that you create using payment methods to which you assign this receipt class. Choose one of the following methods:

·         Standard: Use the remittance account for automatic receipts or for standard bills receivable assigned to a payment method with this receipt class.

·         Factoring: Use the factoring account for automatic receipts or for factored bills receivable assigned to a payment method with this receipt class.

·         Standard and Factoring: Choose this method if you want Receivables to select receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.

·         No Remittance: Choose this method if you do not require receipts assigned to this receipt class to be remitted