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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