Session ID:

Prepared by:

Remember to complete your evaluation for this session within the app!

10123

Demystifying the World of Oracle Payments in R12

How to Handle Credit & Debit Card Captures

In this session, attendees with learn how the funds capture process of

Oracle Payments works. Attendees with also learn how Office Depot

was able to customize the Payments Funds Capture Flow to automate

an end to end process for Authorization through Settlement and

Acknowledgement using a Third Party Payment Processor. Attendees

will gain knowledge and insight of how to implement Oracle Payments

Fund Capture Flow.

April 24, 2018 11:00 AM

Lori Cirella, IT Consultant

Edson Morales, IT Consultant

Office Depot, Inc.

Agenda

Agenda

• Presenter Information

• Office Depot Fact Sheet

• Office Depot EBS Business Modules Overview and Roadmap

• Oracle R12 Payments Introduction

• Oracle Funds Capture Process Flow

• A Success Story: Implementing Oracle R12 Payments - Funds Capture at

Office Depot

• Office Depot Funds Capture Configuration

• Office Depot Credit Card / Debit Card Processing

• Office Depot Encryption

• Q&A

Introduction

About the Presenters

Edson Morales• 19 years of experience in the IT industry

• 14 years of experience developing and supporting

Oracle E-Business Suite solutions

• 14 years of experience performing Oracle database

modeling

Lori Cirella• Oracle E-Business Suite (EBS) Financial IT

Consultant / Solution Architect

• Over 16 years of experience implementing, upgrading

and enhancing EBS Financials Order to Cash

@lori_cirella

Who We Are – Office Depot’s Story

Office Depot, Inc. is a leading provider of business services and supplies, products and technology solutions through its fully integrated omni-channel platform of approximately 1,400 stores, online presence, and dedicated sales professionals and technicians to small, medium and enterprise businesses.

Through its banner brands Office Depot®, OfficeMax®, CompuCom® and Grand&Toy®, the company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business.

Office Depot EBS Business Modules Overview

Technology Portfolio - Finance: Major Technology Overview

Customer to Invoice Credit Card & Cash Management

Accounting & Financial ControlsAccounts Payable & Payroll

8

Order Import /

Customer Mgmt.

Sales Audit /

Signature

Capture

Accounts

Receivable /

Cash Application

Billing / Bill

Management /

iReceivables

Credit

AuthorizationCash

Management

General

AccountingFixed Assets

Project

AccountingAccounts

Payable /

iExpense

Payroll

Analytics &

Reporting

Invoice Use Tax

(Taxware )

Invoice Use Tax

(Taxware )

Credit

Settlement

Trade Payables

(Integral)

eBill Central

Financial

Consolidation

and Reporting

Vendor

Programs

Management

Inventory

Accounting

TDM

Active project to modernize to Oracle platform

Legacy Finance

(Datalink, PAID,

XOMS)

Treasury

Financial Planning & Analysis

Technology Portfolio Finance: Major Technology Overview

Analytics & Reporting

Treasury Management

Management Reporting

ePlanIT G&A Expense Planning

and Budgeting

Tax

Use Tax (Taxware )

Vertex

Cash Flow Analysis

Account Reconciliation

Capital Planning

Active project to migrate to Oracle platform

EJMCapital Projects

CorpPlan

A Step Forward in our Transformation Journey

Oracle R12 Payments

Introduction

Oracle R12 Payments Introduction

Oracle R12 Payments module is a centralized engine that is designed to work with multiple

Oracle E-Business Suite products. Products that integrate with Oracle Payments are;

Oracle Advanced Collections, Oracle Cash Management, Oracle Order Management,

Oracle Payables, Oracle Receivables, Oracle iReceivables and Oracle iStore.

Oracle R12 Payments Primary Functions

Oracle Payments has two primary functions

Funds CaptureFunds Capture refers to the electronic retrieval of funds from payers, such as

customers, who owe debts to a company.

Think “Accounts Receivable (AR)”

Funds DisbursementPaying of Funds owed to

creditors, such as suppliers

Think “ Accounts Payable (AP)”

Oracle R12 Payments Key Features

Key Features

Oracle R12 Payments General Features

Oracle R12 Payments – Understanding Servlets

Oracle Payments consists of the following servlets:

• ECServlet

The ECServlet provides an interface to the Oracle Payments engine to process

payment-related funds capture operations such as authorization. This servlet is

primarily used for the PL/SQL APIs provided by Oracle Payments.

• Payment system servlets

Payment system servlets take payment files, as formatted by Oracle Payments, and

transmit them to payment systems according to transmission configurations set up in

Oracle Payments. Oracle Payments bundles payment system servlets developed by

Oracle and/or interfaces with servlets developed by its payment system partners. The

payment systems communicate with the payment acquirers or banks to process

payment transactions. Oracle Payments includes payment system servlets for

Paymentech, First Data (North), and Concord EFSnet.

Oracle R12 Payments – Security Features

• Encryption

– Credit Card Encryption is an advanced security feature within Oracle Payments that enables Oracle Applications to encrypt credit card data.

– Use of the Credit Card Encryption feature assists with your compliance with the cardholder data protection requirements of the Payment Card Industry (PCI) Data Security Standard.

– When the feature is enabled, credit card and bank account numbers for external third parties, such as customers, suppliers, or students are encrypted.

• Oracle Payments Engine to Oracle Payments Servlet Communication

– Oracle Payments architecture lets you install the payment system servlet in a machine outside the firewall.

– Use of Oracle Wallet to store certificates and credential information to support authentication of the engine.

– Oracle Payments retrieves the certificates from the Oracle Wallet and sends the certificates to the server for authentication

Oracle R12 Payments Payment Methods

Supported Payment Methods

Oracle Payments supports the following electronic payment methods for funds capture payments:

• Credit Cards

• Purchase Cards

• PINless Cebit Cards

• Bank Account Transfers

Oracle Payments supports several payment methods for funds disbursement

payments, including:• Checks

• Wires

• Electronic Funds Transfers (EFT)

Funds Capture

Process Flow

Funds Capture Process Flow

Funds Capture Flow Overview

Create Transaction in Source Product Flow

This Diagram shows the steps performed in

the Create Transaction in Source Product

Flow (F1)

Authorize Transaction from Source Product Flow

This diagram shows the steps

performed in the Authorize

Transaction from Source Product

Flow (F2)

Settle Transaction from Oracle Receivables Flow

This diagram shows the steps performed

in the Settle Transaction from Oracle

Receivables Flow (F3).

A Success Story:

Implementing Oracle R12

Payments - Funds Capture at

Office Depot

Office Depot Case Study

This section of the presentation will explain how Office Depot has implemented funds capture by integrating Oracle Payments R12 with AJB’s payment gateway for authorization and settlement of funds.

The scope of this section is limited to the functionality within Oracle Applications and will delve into details of Funds Capture Configuration (including servlet and encryption), iReceivables authorization and settlement.

Office Depot Business Case

Office Depot required functionality that would integrate with a 3rd party payment

system that would process Authorizations, Settlements for Credit Card,

Purchasing Cards, and Pinless Debit Cards for sales and returns through it’s

various sales channels.

Office Depot Required functionality that would allow of our customers to access a

portal where they could view all the invoices, credit memos, debit memo.

Customer’s also had to be able to pay for the outstanding invoices, debit memos

and deposits by using their credit card. Oracle iReceivables provides the

functionality which fulfills these requirements.

Office Depot Funds

Capture Configuration

Funds Capture Implementation Steps

Things to Consider

• What are your Security Needs?

• Funds Capture or Funds Disbursement?

• Which Payment System do you Use?

• What Source Products are you using?

• What Format do you need?

Configure Funds Capture for Office Depot

Funds Capture Setup - Dashboard

Payment processing for both funds capture and funds disbursement can be setup

through one form, the Payments Setup Form.

Configure Step 1– User Setup

Configure Step 2 – System Security Options

• System security options enable you to set security options for payment instrument encryption, masking, and credit card control.

• Before you can set up security options, you must set up a wallet. The wallet is a file, which stores the system key

• The wallet has two functions:

– Perform HTTP client authentication of your middle-tier server for payment systems that require this level of security

– Store the system (master) security key used to encrypt sensitive data

• The purpose of setting up the wallet in the Wallet Setup page is to:

– specify the location of the wallet file

– define the password for the wallet file

– specify whether to generate the system key yourself or let the system do it

Configure Funds Capture – Wallet Setup

System Security Options are Under the Payments Setup Share Setup System Security

Configure Steps 3 - 5

Step 3 – Setting Up XML Templates

The purpose of setting up Oracle XML Publisher's templates is to create and register templates in Oracle

XML Publisher. These templates are required by Oracle Payments to format payment instructions.

Step 4 – Setting up Formats

Financial institutions, payment systems, and/or countries have specific formatting requirements for funds

capture transactions, funds disbursement transactions, payment documents, and payment-related reporting.

Formats are created within Oracle Payments to represent these requirements. Each format in Oracle

Payments corresponds to one Oracle XML Publisher template.

Step 5 – Setting up Validations

Validations ensure that funds capture and funds disbursement transactions are valid, in addition to being

correctly formatted before they are printed or submitted to payment systems.

Office Depot “Bypassed” these setup steps in order to create a custom Servlet. The Office

Depot custom servlet calls the Payment System (AJB) for Authorization for Oracle

iReceivables Transactions.

Configure Step 6 – Transmission Configurations

The purpose of setting up transmission configurations in the Create Transmission

Configuration setup page is to enable electronic connectivity with payment

systems by specifying parameter values.

Payments Setups Shared Setup Payment Systems Transmission Configurations

Configure Step 7 – Configure Tunneling

The purpose of tunneling is to allow connectivity between Oracle Payments and

external payment systems without compromising network security.

Oracle Payments uses a customized tunneling protocol called the Oracle

Payments Tunneling Protocol (code= IBY_DELIVERY_ENVELOPE). This protocol

uses HTTP POST as its underlying transmission mechanism and sends within the

body of the request an XML message header identifying the tunneled or

encapsulated protocol, as well as the host name, user name, and password for

FTP.

Configure Step 8 – Set up Payment Systems

A payment system is an organization that provides financial settlement services.

The purpose of setting up payment systems is to:

• define the external organizations that Oracle Payments collaborates with to

process your funds capture and funds disbursement transactions

• define the deploying Office Depot relationships with its payment system, AJB.

Setup Payment Systems

Payments Setup Shared Setup Payment Systems Payment Systems

Setup Payment System Accounts

Payments Setup Shared Setup Payment Systems Payment Systems Update Accounts

When you define payment system accounts, you provide the actual payment

system-provided values for these parameters.

Setup Payment System Payee

The purpose of setting payees is to tie the payment processing rules of the funds

capture process profile to the business entities that need to use them.

Oracle Payments Setup Funds Capture Setup Payees

Configure Step 9 – Payments Servlet

Using the Funds Capture Setup Administrator responsibility, under the Oracle Payments Setup > Payment Systems page, Oracle Payments provides the ability to register a servlet that communicates with your payment gateway.

The Office Depot servlet handles:

– Voice Authorizations• Returns SUCCESS

• No longer used

– Authorizations• Transforms Oracle Payment request to AJB authorization request format

• Sends AJB request, response

• Transforms AJB response to Oracle Payments format

• Used for iReceivables

– Returns/Funds Capture• Parses Oracle Payment request.

• Calls custom package to record response in custom settlement staging table

Configure 10 – Setting up SSL for Servlet

• To set up a payment system servlet with secured sockets layer, enable HTTPS

on the middle-tier server where the servlet resides.

• If there are no funds capture profiles defined yet for the payment system,

change the BASE URL parameter of the payment system to use the https:

protocol. Otherwise, change the URLs on any transmission configurations set

up to be used with that payment system to contain https:.

Office Depot Payment Servlet Lessons Learned

– Oracle provides a sample servlet. Use it to test your Oracle Payments

Implementation without having to register a real payment system.

– The sample servlet will return success unless the transaction value matches pre-set

values which simulate specific error scenarios.

– Use the sample servlet as a template when creating a new payment servlet.

– Servlet alias, parameters must be configured in the orion-web.xml file.

– After modifying the orion-web.xml file bounce apache and oacore.

– Use the Transmission Testing pages to test the servlets.

Office Depot Credit

Card / Debit Card

Processing

Office Depot Credit Card Flow

Office Depot Credit Card Flow Performance

– During the R12 upgrade initiative, performance testing revealed that Submit Offline

Transaction was a bottleneck.

– Oracle changed the way the encryption/decryption worked.

– Office Depot worked with Oracle development to multi-thread Submit Offline

Transaction. Due to the project timeline, an alternative solution was pursued.

– Since credit card authorizations were being done outside of EBS (except for

iReceivables), and the fact that credit card settlement information was staged in

custom tables, the decision was made to bypass Oracle Payments for Oracle POS

and AOPS orders.

– iReceivables would continue to use Oracle Payments for credit card processing

Office Depot Credit Card Flow (Bypass)

Auto Remittance and Submit Offline

• The Submit Offline Transactions concurrent program is used to submit offline

non-batch transactions to the intended gateway payment system.

– In this case iReceivable Transactions are considered “Non-Batch” since they need

to auth immediately.

Credit Card Creation and Settlement

Bypass (Remittance/Staging)

HVOP &Order Import

IBY Tables

Create Custom Receipt

Custom Receipt Table

Custom IBY tables

Reads Files

OD: IBY Stage Credit Card Settlement –

Master

OracleiReceivables

Initiate Credit Card Payment for Open Invoices

Credit Card AuthOD Custom Servlet

Createor Update Credit Card Account

Custom OM Tablesoe_payments

Insert Interface (interim) tables

Create cash receipt in AR Credit Card Providers(Vantiv)

Sales Channels(POS, WWW, Etc)

Create Standard AR Cash Receipt

Successful Auth

Customer

Credit Card Sources

Encrypted Credit Card

Stage Settlement for POS

Stage Settlementfor Non-POS

Custom OM Tenders Interfaceoe_payments_iface_all

Import/Create Credit Card Payments into Transactional Tables)

AJBGateway

OTC – Credit Card Creation & Settlement Staging

1. Decrypts CC using Key Label12. Encrypts CC with AJB Key

Process CC Receipts, Refunds, & Deposits

Automatic Remittance

CreateCustom Receipt

Stage Settlement

Credit Card is Stored with 2 Encrypted Values1. Oracle EBS Standard Encryption2. Custom Encryption using AJB Key (DFF)

Stage Settlement iRec

Settlement File Transmission and Close Batch

Office Depot has a requirement to transmit the file from the client system to the

AJB system (3rd Party Payment Processor)

Approach

The Close Batch process is used to settle the payment with the issuing bank and

causes the funds to transfer to the acquiring bank.

Office Depot

Encryption

Office Depot 11i Encryption/Decryption Processing – Credit Cards

HVOP - Credit Card Processing

iReceivables – Credit Card Processing

Settlement Package

Import SAS Files (Pmts) Into Interface Tables

Custom Deposits Table

Decrypt Using

11i OracleKey

EncryptUsing

AJB Key

IBY History Tables

SASFiles

iReceivable Credit Card

Receipts

AP_BANK_ACCOUNTS_ALL

R11 Bank Account &

Receipt Creation API

OE_PAYMENTS_IFACE_ALLCustom Return Tenders IFACE

Table(Interim Tables)

DecryptWith

SAS Key

EncryptUsing

Standard11i Oracle Key

Executes

Insert Encrypted Value(11i Oracle Key)

Stage Settlement – POS Credit Card Receipts

Insert Encrypted

Value(AJB Key)

Insert Encrypted Value (11i Oracle Key)

OE_PAYMENTSCustom Returns Tender Table

Prepayment API

Custom Receipts Table

NON-POS POS

HVOP&

Order Import

Type Insert Encrypted

Value(11i Oracle Key)

Insert Encrypted

Value(11i Oracle Key)

Custom Receipts Table

Insert Encrypted

Value(11i Oracle Key)

R11 Bank Account &

Receipt Creation API

AP_BANK_ACCOUNTS_ALL

Insert Encrypted

Value(11i Oracle Key)

Completed

Completed

11i Encryption/Decryption Processing – Credit Cards

Stage Settlement – AR & iRec Credit Card Receipts

AP_BANK_ACCOUNTS_ALL

Executes

iRecReceipt?

Custom Receipts Table

YES NO

Automatic Remittance

(AR/iRec Receipts)

Scheduled Concurrent Program

Insert Encrypted

Value(11i Oracle Key)

Encrypted

Value is passed

Receipt alreadyExists in order receipt detail

R12.1.3 Encryption/Decryption Processing – Credit Cards

Office Depot Encryption

Office Depot Encryption

Appendix

MOS Notes

Configuration and Setup

• Setup and steps required to test the transaction flow from Oracle Receivable(AR) to Payments(IBY ) using Dummy Payment system for Funds Capture Processing (Bank Transfers). (Doc ID 2234824.1)

• Note:471418.1 Oracle Payments Setup For Funds Capture Processing (Bank Transfers)• Automatic Receipts and Remittance: A Complete Guide for R12 Oracle Receivables Users (Doc ID 745996.1)• R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is, and What It Does (Doc ID

1391460.1)• Information Center: Oracle Payments for Receivables (FC) & Payables (FD), Releases 11i and 12 (Doc ID

1275310.2)• How To Enable Oracle Payments Data Encryption Functionality (Doc ID 1301337.1)

Troubleshooting

• R12: Oracle Payments (IBY) Funds Capture Analyzer Diagnostic Script (Doc ID 1602845.1)

References

• Oracle® Payments Implementation Guide Release 12 Part No. B28872-01

• Oracle E-Business Suite Release 12 Payments, The Centralization of Payment

Processing, Alyssa Johnson, Solution Beacon, LLC

• Oracle Payments User's Guide Release 12.1

• Oracle Payments Data Sheet

• R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is,

and What It Does (Doc ID 1391460.1)

• How To Enable Oracle Payments Data Encryption Functionality (Doc ID

1301337.1)

Disclaimer

• These slides represent the work and opinions of the presenter and do not

constitute official positions of Oracle or any other organization.

• This material should not be reproduced without the written permission of Office

Depot, Inc.

• Office Depot’s participation in this presentation does not infer endorsement of

any product or services of Oracle Corporation.

Session ID:

Remember to complete your evaluation for this session within the app!

10123

Lori.Cirella@officedepot.com

Edson.Morales@officedepot.com