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
Oracle Payments: New in Release 12

Single point of integration, excluding Payroll
Transmit to Financial Institutions Oracle Payables
Oracle Payments
Other applications
Print Payments Oracle Receivables
2008 Oracle Corporation Proprietary and Confidential
Common Practices
Decentralized Payables and Payments
Invoice Entry
Invoice Selection
Payment Processing
Operating Unit Vision Spain
Operating Unit Vision Italy
Implement Global Best Practices

Decentralized Payables and Centralized Payments
Invoice Entry
Invoice Selection
Payment Processing
Operating Unit Vision Spain Shared Service Center
Implement Global Best Practices

Centralized Payables and Payments
Invoice Entry
Invoice Selection
Payment Processing
Shared Service Center Invoice Invoice Spain Italy Shared Service Center Shared Service Center
Disbursements
Disbursement Process Before Release 12

For each unique combination of payment method, currency, and operating unit, there has to be a complete process and a separate resulting batch
Oracle Payables User Payment Payment Build File
Select Invoices
Disbursement Process in Release 12

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
Oracle Payables User
Payment Build Pool of Built Payments Payment File
Select Invoices
Fewer files to transmit or print
Disbursement Process
Multiple Processes Behind the Scenes Selecting invoices to be paid
Still occurs in Payables selection based on business reasons for payment like due date, discounts available, etc.
Building invoices into payments

Payments groups invoices within selection batches into payments according to configurable attributes like due date, or payment reason
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
Formatting the file

Automatically kicked off at the completion of the payment instruction creation process
Printing or transmission
Payment Process Request (PPR)

New Payment Run Submission Template
Use Template
Payment Method
Legal Entities Payment Currencies 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 Options

Enhanced 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

Payment Method Extensibility Example
Payment Method Code Payment Method Name Usage Rule Validations ELEC_US Electronic US OU only 1) Must have supplier bank account ELEC_FR Electronic French OU only 1) Must have supplier bank account 2) Must have payment reason code
US and France users each see Electronic payment method but validations are different

Understanding validations
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

Payment Process Profile (PPP)
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
Deriving the Payment Process Profile

Every Payment Needs a 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.

Tying it all together PM and PPP in the process Payment method (PM) drives upstream validations and which payment process profile is used Payment process profile (PPP) gives system direction throughout the payment process
PM defaults or is entered
PPP defaults or is entered
Validations from format
Validations from format
Format
Printer
Positive Pay
Separate remittance advices
Invoice entered and validated
Invoices selected for payment
Invoices built into payments
Payments built into payment file(s)
Payment file formatted
File transmitted or printed
Auxiliary reporting
Validations
Payment creation rules
Bank instructions
Bank (payment system)
Transmission details
Central bank reporting
Payment file creation rules
Payment Instruction Register
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
Request
Authorization
Settlement
Acknowledgement
Routing rules drive Upstream how the products call transaction will be Payments to processed and authorize which third party transaction with payment system third party payment system will be used
Payments calls payment system in individual or batch mode to request settlement
Payments automatically queries payment system for acknowledgement of transaction success
Funds Capture Configuration Options

Funds Capture Process Profile
Controls transaction lifecycle in funds capture process flow Rules manage various processes
Authorization and validation Aggregation of settlements into batches Format and transmission

Validations
Upstream Product
Oracle Payments
Shopping Cart Checkout Order Booking Receipt Remittance
Upstream Validation
Downstream Validation
Authorization
Settlement

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

Routing 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

Accounts Payable Manager Manage individual payment batches Payments Administrator Payables Payment Funds Disbursement Manage payment Dashboard Process Home process across Dashboards selection batches
Funds Captures Process Home
Payments Administrator Monitor settlement batch status
Dashboard Example
Tab structure enables detailed research
<Enter Processes that slide note> require user intervention
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 Masked values ************124
Applications Applications Applications
Advanced Formatting Framework

XML Publisher offers significant benefits for formatting
Data Sources
XML Disbursements Credit Card Payments Direct Debits Remittances
XML Publisher
Publishing Engine
Output Formats
PDF RTF HTML XML EDI
Destination
Email Printer Fax FTP AS/2
Remittance Advice EFT Payments Payment Reports
Templates
Checks Fund Transfers Credit Card Auths
Business User
Advanced Formatting Framework

eText 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 implementationspecific 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 Uptake

All 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 12

Resources
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)
2008 Oracle Corporation Proprietary and Confidential 43
Single European Payments Area
SEPA Impact and Benefits

After SEPA Common standards and procedures Removal of disparities in cross border payments Minimum execution time Higher processing/ execution time
Before SEPA National and local solutions with different schemes, formats Different country implementations
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

Customer Credit Transfer Initiation (pain.001.001.02) Customer Direct Debit Initiation (pain.008.001.01)
(Planned)
Releases
EBS 11.5.10
September, 2008
(Released)
Calendar year 2009
EBS 12
(from RUP 4)
November, 2008
(Released)
Calendar year 2009
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
Summary
Disbursements 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
Summary
Funds 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 Implementers

Dont 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 Recommendations
Steps 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 You

Accelerate your evaluation and planning
Oracle.com
http://www.oracle.com/ For collateral, webcasts, podcasts, partner network, solutions catalog, and more
MetaLink: E-Business Suite R12 Information Center and Upgrade Resources

Alerts, Announcements, Documentation, Online Training (TOIs), Installation and Upgrade
http://search.oracle.com
Oracle University
Instructor-led Training Starting May 2007
MetaLink: Advisor Webcast Program

50+ Live Webcasts on Release 12 MetaLink / Knowledge / Tools and Training / Training (Web Seminars)
QUESTIONS ANSWERS

R12 Oracle Payments

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R12 Oracle Payments

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<Insert Picture Here>

Oracle Payments: New in Release 12

Print Payments Oracle Receivables

2008 Oracle Corporation Proprietary and Confidential

Operating Unit Vision Spain

Operating Unit Vision Spain

Operating Unit Vision Spain

Operating Unit Vision Italy

Operating Unit Vision Italy

Operating Unit Vision Italy

2008 Oracle Corporation Proprietary and Confidential

Implement Global Best Practices

Operating Unit Vision Spain

Operating Unit Vision Spain Shared Service Center

Operating Unit Vision Italy

Operating Unit Vision Italy

2008 Oracle Corporation Proprietary and Confidential

Implement Global Best Practices

2008 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

2008 Oracle Corporation Proprietary and Confidential

Disbursement Process Before Release 12

2008 Oracle Corporation Proprietary and Confidential

Disbursement Process in Release 12

Oracle Payables User

Payment Build Pool of Built Payments Payment File

Fewer files to transmit or print

2008 Oracle Corporation Proprietary and Confidential

Building invoices into payments

Building payments into payment instructions (files)

Formatting the file

Payment Process Request (PPR)

Legal Entities Payment Currencies Operating Units

2008 Oracle Corporation Proprietary and Confidential

Enhanced Check Printing Process

2008 Oracle Corporation Proprietary and Confidential

Disbursement Configuration Options

Configurable usage rules

Configurable defaulting rules

2008 Oracle Corporation Proprietary and Confidential

Disbursement Configuration Options

Disbursement Configuration Options

Where are the validations?

2008 Oracle Corporation Proprietary and Confidential

Disbursement Configuration Options

Payment process profiles control processing

2008 Oracle Corporation Proprietary and Confidential

Deriving the Payment Process Profile

2008 Oracle Corporation Proprietary and Confidential

Disbursement Configuration Options

Validations from format

Validations from format

Separate remittance advices

Invoice entered and validated

Invoices selected for payment

Invoices built into payments

Payments built into payment file(s)

Payment file formatted

File transmitted or printed

Payment creation rules

Bank (payment system)

Central bank reporting

Payment file creation rules