R12 Oracle Payments
Transcript of R12 Oracle Payments
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R12 Payments
Annette Dall, Principal Product Strategy Manager
Agenda
• New Module in R12
• Disbursements
• Funds Capture
• Cross-function
• Upgrade
• SEPA payment format
• Summary
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Other applications
Oracle Payables
Oracle Receivables
Oracle Payments
Transmit to Financial Institutions
Print Payments
• Single point of integration, excluding Payroll
Oracle Payments: New in Release 12
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Common Practices Decentralized Payables and Payments
Invoice Selection
Operating Unit
Vision Spain
Invoice Entry Payment Processing
Operating Unit
Vision Spain
Operating Unit
Vision Spain
Operating Unit
Vision Italy
Operating Unit
Vision Italy
Operating Unit
Vision Italy
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Invoice Selection
Operating Unit
Vision Spain
Invoice Entry Payment Processing
Operating Unit
Vision Spain
Operating Unit
Vision Italy
Operating Unit
Vision Italy
Shared Service Center
Implement Global Best Practices Decentralized Payables and Centralized Payments
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Invoice SelectionInvoice Entry Payment Processing
Shared Service Center
Implement Global Best Practices Centralized Payables and Payments
Shared Service Center
Invoice
Italy
Invoice
Spain
Shared Service Center
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Disbursements
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Payment
File
• For each unique combination of payment method, currency, and
operating unit, there has to be a complete process and a
separate resulting batch
Payment Build
Select Invoices
Oracle Payables
User
Disbursement Process Before Release 12
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Payment Build
Pool of Built
Payments
Payment
File
Select Invoices
Oracle Payables
User
• Payment file is taken from an intermediary pool of built payments
so selection criteria no longer has to include payment method,
currency, and operating unit.
Payment
File
• Fewer files to transmit or print
Disbursement Process in Release 12
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Disbursement ProcessMultiple Processes Behind the Scenes
• Building payments into payment instructions (files)• Takes payments from the pool of built payments (regardless of which
Payment Process Request they came from) and aggregates them into
payment instructions
• Printing or transmission
• Building invoices into payments• Payments groups invoices within selection batches into payments according to configurable attributes – like due date, or payment reason
• Selecting invoices to be paid• Still occurs in Payables – selection based on business reasons for payment like due date, discounts available, etc.
• Formatting the file• Automatically kicked off at the completion of the payment instruction creation process
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Payment Process Request (PPR)New Payment Run Submission Template
Use Template
Payment Method
Payment Currencies
Legal Entities
Operating Units
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Enhanced Check Printing Process
• Check printing process changes
• Error recovery improved (reprinting from UI)
• Recording print results
• Enhanced check stock setup in Oracle Cash
Management aids printing in Oracle Payments
• Support for both preprinted and blank stock (laser checks)
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Disbursement Configuration OptionsEnhanced Payment Method
• User-extensible• Combination of validations and usage rules enables
exception-based straight-through processing
• Configurable usage rules• Based on operating unit, first party legal entity, transaction
type, and cross-border attributes (foreign or domestic currency
or payee)
• Configurable defaulting rules• Expanded options from 11i
• Create efficient end-user experience
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Disbursement Configuration OptionsPayment Method Extensibility Example
1) Must have supplier
bank account
2) Must have payment
reason code
1) Must have
supplier bank
account
Validations
French OU onlyUS OU onlyUsage Rule
ElectronicElectronicPayment
Method Name
ELEC_FRELEC_USPayment
Method Code
• US and France users each see Electronic
payment method but validations are different
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• What is validated?• Invoices
• Payments
• Payment Instructions
• When is it validated?• Upstream: during invoice validation so Payables Clerk sees it
• Downstream: during payment build and/or payment instruction
creation, as appropriate
• Where are the validations?
• Set up on payment method or format
Disbursement Configuration OptionsUnderstanding validations
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• Payment process profiles control processing
• Tie other setup together (payment method,
format, payment system, etc.)
• Control creation of payments and payment
instructions
• Specify formatting, printing, and transmission
behavior
• Control usage
• Automate report generation
Disbursement Configuration OptionsPayment Process Profile (PPP)
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• For each invoice that is passed to Payments to be paid, the system will determine which PPP is appropriate:
1. From the originating PPR (entered by a Payables user or defaulted from a template).
2. Derived from invoice attributes: payment method, disbursement bank account, OU, currency (must be exactly one meeting the conditions).
3. Custom code (Payments provides a hook)
4. Manually entered by user.
Deriving the Payment Process ProfileEvery Payment Needs a PPP
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• Payment method (PM) drives upstream validations and
which payment process profile is used
Disbursement Configuration OptionsTying it all together – PM and PPP in the process
• Payment process profile (PPP) gives system direction throughout the payment process
Auxiliary
reporting
Central bank
reportingTransmission
details
Payment
Instruction
Register
Positive Pay Separate
remittance
advices
File transmitted
or printed
Bank
(payment system)
Printer
Payment file
formatted
Format
Payments built into
payment file(s)
Payment file creation
rules
Bank instructions
Validations from
format
Invoices built into
payments
Payment creation
rules
Validations from
format
Invoices selected
for payment
PPP defaults or is
entered
Invoice entered
and validated
PM defaults or is
entered
Validations
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Oracle Payments Disbursements
Benefits
� Configurable setup improve efficiency
� Simplify user procedures
� Improve straight-through processing
� Lower cost of payment processing
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Funds Capture
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Funds Capture Process
RequestRequest SettlementSettlement AcknowledgementAcknowledgement
• Upstream
products call
Payments to
authorize
transaction with
third party
payment system
• Routing rules drive
how the
transaction will be
processed and
which third party
payment system
will be used
• Payments
automatically
queries payment
system for
acknowledgement
of transaction
success
Authorization
• Payments calls
payment system in
individual or batch
mode to request
settlement
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• Controls transaction lifecycle in funds capture
process flow
• Rules manage various processes
• Authorization and validation
• Aggregation of settlements into batches
• Format and transmission
Funds Capture Configuration OptionsFunds Capture Process Profile
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Funds Capture Configuration Options Validations
Oracle Payments
Upstream
Validation
Downstream
Validation
Settlement
Order
Booking
Upstream Product
Authorization
Shopping
Cart Checkout
Receipt
Remittance
…
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Funds Capture Configuration OptionsPayee (Merchant)
Change from 11i: Selection of Payee used to be in calling products
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Funds Capture Configuration OptionsRouting Rules
Change from 11i: Routing rules used to determine only Payment System Account
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Oracle Payments Funds Capture
Benefits
� All setup done via setup screens
� Easier implementation and maintenance
� Consistent and seamless processing
� Lower cost of payment
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Cross-Function
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Oracle Payments Dashboards
Funds Captures
Process Home
Payables Payment
Dashboard
Funds Disbursement
Process Home
• Accounts Payable
Manager
• Manage individual
payment batches
• Payments
Administrator
• Manage payment
process across
selection batches
• Payments Administrator
• Monitor settlement batch status
Dashboards
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Dashboard Example
<Enter
slide note>Processes that
require user
intervention
Tab structure
enables detailed
research
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Bank Account Structure and Setup Changes
• Internal bank accounts are centralized in Cash
Management• Legal entities own bank accounts – think Taxpayer ID Number
• External bank accounts (supplier and customer)
are centralized in Payments• Centralization gives a single point of control for encryption and
masking
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Secure Payment Data Repository
Oracle Applications
Payment Data Repository in Oracle Payments
• Encrypted Customer Bank Accounts, Credit Cards, Debit Cards
• Encrypted Supplier Bank Accounts
ApplicationsApplicationsApplications
Masked values
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XML Publisher offers significant benefits for formatting
Templates
XML Publisher
Disbursements
Credit Card
Payments
Direct Debits
Remittances
Output FormatsData Sources
RTF
Business
User
PublishingEngine
XML
• Printer
• Fax
• FTP
• AS/2
HTML
XML
Checks
FundTransfers
EFT Payments
Remittance Advice
Credit CardAuths
PaymentReports
Destination
EDI
Advanced Formatting Framework
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Advanced Formatting FrameworkeText for Electronic Formats
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Electronic Transmission Capability
• Seamless electronic processing from invoice
entry to transmission to bank
• Transmission protocol defines transmission
parameters:• Out of the box: FTP, secure FTP, HTTP, HTTPs, AS2
• Transmission configurations give implementation-
specific values to the parameters in the protocol
• Transmission configurations are associated with
the Payment System Account (the entity
representing the relationship with the bank or
payment processor)
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Multi-Org Access Control UptakeAll UI respects Security Profile
• For Disbursements
• Multi-OU Payments = NO
• Multi-OU PPRs = YES
• Multi-OU Payment Files = YES
• For Funds Capture
• Multi-OU Settlement Batch = YES
• Multi-OU Authorization/Settlement = NO
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What About Subledger Accounting?
• Payment transactions pushed back to
Payables and Receivables
• Payables and Receivables do the
accounting
• Payments SLA uptake = NO (because
there is no accounting in Payments)
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Oracle Payments Cross-Function
Benefits
� Visibility and control
� Sensitive information secured
� Easy creation or update of payment formats
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Upgrade
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Prior to the upgrade
• Review the Best Practices (Metalink Note 580299.1)
• Review the R12 Upgrade: Functional Upgrade Impacts
Document for Oracle Payments (FINANCIALS) (Metalink
Note 734012.1 )
• Schedule time for training end users
• Set all check stocks to point to Oracle supplied formats
• Have somebody versed in BI Publisher
• Plan time to evaluate all custom check and electronic
payment formats
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Configuration
• Setup and defaulting
• EFT process changed
• Do not use stocks
• No supplied formats for signature printer cartridges
• Remittance advice delivery
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What if there are problems?
• Stay up to date on critical patches
(Metalink Note 557869.1)
• The Oracle eBusiness Suite Diagnostics
(Metalink Note 167000.1)
• Profile options: ‘FND: Diagnostics’ & ‘FND: Debug’
• About this page -> Bug Report
• Tracing
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Oracle E-Business Suite Release 12Resources
• Release 12 documentation via Oracle MetaLink (Note 394692.1)
• Upgrade process and tools required
• Number and types of tasks involved
• How your system and products will look in Release 12
• Best Practices for Adopting Oracle E-Business Suite, Release 12(Note 580299.1)
• Release Update Packs 12.0.6 for Financials Available (Note 742890.1)
• Five Key Resources for Upgrading to E-Business Suite Release 12
• Oracle E-Business Suite Upgrade Resources Roadmap (Note 461705.1)
• Oracle Applications Upgrade Guide: Release 11i to Release 12
• Oracle Maintenance Wizard (Note 215527.1)
• Release 12 Install/Upgrade (OTN - Oracle Technology Network) Forum
• Best Practices for Securing E-Business Suite Release 12(Note 403537.1)
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Single European Payments
Area
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SEPA Impact and Benefits
Before SEPA
• National and local solutions with different schemes, formats
• Different country implementations
• Higher processing/ execution time
After SEPA
• Common standards and procedures
• Removal of disparities in cross border payments
• Minimum execution time
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SEPA Scope
• The single currency - Euro
• A single set of Euro payment instruments • Credit Transfers
• Direct Debits
• Credit and Debit card payments
• Common standards and business practices
• Efficient processing infrastructure for Euro payments
• One harmonized legal basis
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SEPA Release dates for 11.5.10 and 12
Calendar year 2009November, 2008
(Released)
EBS 12
(from RUP 4)
Calendar year 2009September, 2008
(Released)
EBS 11.5.10
Customer Direct
Debit Initiation
(pain.008.001.01)
(Planned)
Customer Credit
Transfer Initiation
(pain.001.001.02)Releases
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SEPA Release Information 12.0.4 and beyond
• Please apply patch no. 7552541
• Transfer Of Information session for SEPA release 12
• Note 403349.1
• Chose the following path after login to Oracle University
• E-Business Suite > Financials > Oracle Financials > Payments
• Documentation
• Oracle Payments Note 748434.1
• Oracle Cash Management Note 564995.1
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Summary
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SummaryDisbursements Implementation
• Know thy payment method
• Know thy payment process profile
• Know thy payment formats and validations
…and you will be rewarded with seamless
straight-through processing
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SummaryFunds Capture Implementation
• Know thy payees, including routing rules
• Know thy funds capture payment process
…and you will be rewarded with bountiful
revenue in the organization
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R12 Must Read for ImplementersDon’t Wait for the Movie!
Payments Technical TOI• 100% of Disbursements code is a change
from 11i
…and YOU will be rewarded with a
successful project!
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Upgrade RecommendationsSteps to Remember
• Prepare for the upgrade
• Impact of the new features
• Train the users
• Test payment format internally and externally
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Oracle Payments
• Flexibility and versatility
• Better operational efficiencies
• Improved streamlined processing
More Information Available to YouAccelerate your evaluation and planning
MetaLink: E-Business Suite R12 Information
Center and Upgrade Resources
Alerts, Announcements, Documentation, Online
Training (TOIs), Installation and Upgrade
MetaLink: Advisor Webcast Program 50+ Live Webcasts on Release 12
MetaLink / Knowledge / Tools and Training / Training
(Web Seminars)
Oracle University
Instructor-led Training Starting May 2007
Oracle.com
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