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

© 2008 Oracle Corporation – Proprietary and Confidential

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


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


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


Invoice SelectionInvoice Entry Payment Processing


Implement Global Best Practices Centralized Payables and Payments


Invoice

Italy

Invoice

Spain




Disbursements


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


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


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


Payment Process Request (PPR)New Payment Run Submission Template

Use Template

Payment Method

Payment Currencies

Legal Entities

Operating Units


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)


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


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


• 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


• 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)


• 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


• 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


Oracle Payments Disbursements

Benefits

� Configurable setup improve efficiency

� Simplify user procedures

� Improve straight-through processing

� Lower cost of payment processing



Funds Capture


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


• 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


Funds Capture Configuration Options Validations

Oracle Payments

Upstream

Validation

Downstream

Validation

Settlement

Order

Booking

Upstream Product

Authorization

Shopping

Cart Checkout

Receipt

Remittance

…


Funds Capture Configuration OptionsPayee (Merchant)

Change from 11i: Selection of Payee used to be in calling products


Funds Capture Configuration OptionsRouting Rules

Change from 11i: Routing rules used to determine only Payment System Account


Oracle Payments Funds Capture

Benefits

� All setup done via setup screens

� Easier implementation and maintenance

� Consistent and seamless processing

� Lower cost of payment



Cross-Function


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


Dashboard Example

<Enter

slide note>Processes that

require user

intervention

Tab structure

enables detailed

research


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


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

************124


XML Publisher offers significant benefits for formatting

Templates

XML Publisher

Disbursements

Credit Card

Payments

Direct Debits

Remittances

Output FormatsData Sources

PDF

RTF

Business

User

PublishingEngine

XML

• Email

• Printer

• Fax

• FTP

• AS/2

HTML

XML

Checks

FundTransfers

EFT Payments

Remittance Advice

Credit CardAuths

PaymentReports

Destination

EDI

Advanced Formatting Framework


Advanced Formatting FrameworkeText for Electronic Formats


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)


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


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)


Oracle Payments Cross-Function

Benefits

� Visibility and control

� Sensitive information secured

� Easy creation or update of payment formats



Upgrade


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


Configuration

• Setup and defaulting

• EFT process changed

• Do not use stocks

• No supplied formats for signature printer cartridges

• Remittance advice delivery


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


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)

43



Single European Payments

Area


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


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


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


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



Summary


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


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


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!


Upgrade RecommendationsSteps to Remember

• Prepare for the upgrade

• Impact of the new features

• Train the users

• Test payment format internally and externally


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

http://search.oracle.com

http://www.oracle.com/

For collateral, webcasts, podcasts,

partner network, solutions catalog, and more

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