Automatic Receipts in AR R12

Hi Experts,

I am a little confused about how automatic receipts are processed in R12. So I am listing the steps that I have done and I would appreciate it if you could tell me if I have missed something or I can do something differently.

1. Create a transaction with Automatic Receipt payment method

2. Create a batch for that transaction

3. Review the batch and then submit it for approval

--Now this is where my confusion lies. In 11i, we were able to clear the receipts created above after the 3rd step from Cash Management, but in R12 I am getting an error saying that the receipts are in the process of settlement in Oracle Payments.