Cloud Payments

Overview and Features

Becky Alvarez
Director Product Strategy
Cloud Financials Development
January 22, 2020
Payments Overview
Invoice Selection Building Payments Formatting Payments PriAnting / Transmission

Funds Disbursements

Fusion Payments: Central Engine to Disburse and Capture Payments

Request Authorization Settlement Acknowledgement

Funds Capture

Global Payment Messaging Security & Compliance Transmission Features Integration

100+ Formats, Easy Configuration Encryption, Masking, Tokenization CyberSource
HTTPS, SFTP, PGP Encryption

Global Banking Model Visibility & Control Straight Through Processing Reporting Capabilities
Bank/Branch/Account Logic Payment Approval, Usability Remittance Advice, Positive Pay
Extensive Selection, Validation Model

2 Copyright © 2020, Oracle and/or its affiliates

Payment Message Configurability

3 Copyright © 2020, Oracle and/or its affiliates

 Quick Example
ExistingTemplate
Existing Example
Payment Message

Attribute
Attribute to be
To Be Added
Added from
From Extract
Extract

ModifiedTemplate
Modified Template

4 Copyright © 2020, Oracle and/or its affiliates

Security: Data at Rest & Data in Motion
Channel Security Payload Security

• Secured • PGP Encryption

protocols - • PGP Digital
SFTP, HTTPS Signature
POST, UCM
• Two Factor
Authentication

• Master Encryption Key: Automatically generated using
AES algorithm and stored in Oracle Platform Security
Services
• Chain Key Approach: Master Encryption Key encrypts
Subkey and Subkey encrypts payment instrument data
• Encryption: Payment instrument data and other sensitive
payment data
• SFTP: Using HTTPS proxy that allows transmission
without requiring approval of port
• Two Factor Authentication: Allows SSL public key import
• UCM: Oracle Universal Content Management for
outbound and inbound integrations. ERP Cloud
Integration Services can be used to automate the file
transfer.

• Masking: Payment instrument data and supplemental • PGP Encryption and Digital Signature: Allows payment
data masking with last four digits unmasked file security for both outbound and inbound payment files.
Keys can be generated or imported.
• Tokenization: Credit card data tokenization with
CyberSource
5 Copyright © 2020, Oracle and/or its affiliates
Edit Transmission Configuration SFTP-IBY-BVT

SFTP authentication
key can be generated
or imported

User can either

generate or import
PGP Digital Signature
key

6 Copyright © 2020, Oracle and/or its affiliates

 Efficient Installments Selection

Which Currency?
Which BU?
Which Payment Method?

User

Invoice
Selection

Selects invoices
based on
due/discount dates

Benefits
 Improve payment processing
 Simplify user procedures
 Lower cost of payment processing

7 Copyright © 2020, Oracle and/or its affiliates

Submit Payment Process Request

Select invoices based

on due date or
discount date

Select invoices across currencies,

business units, legal entities etc..

8 Copyright © 2020, Oracle and/or its affiliates

Submit Payment Process Request

Group multiple
payment batches into
single payment file

9 Copyright © 2020, Oracle and/or its affiliates

 Efficient Installments Selection

Payment File 1
Payment Batch 1
Which Currency? USD, EUR
Which BU? USD, EUR Electronic
Which Payment Method?
Electronic BU1, BU2, BU3
Pool of Built
BU1, BU2 Payment File 2
User Payments
Payment
Payment Batch
Batch 22 USD, EUR
Printed
Invoice USD, EUR BU1, BU2, BU3
Selection Printed
BU1, BU2 Format Payments

Selects invoices Payment Batch 3 Transmit Electronic File

based on
USD, EUR
due/discount dates USD, EUR Electronic
Electronic BU1, BU2, BU3
Benefits BU3
Print Check Run
 Improve payment processing
USD, EUR
 Simplify user procedures Printed
 Lower cost of payment processing BU1, BU2, BU3

10 Copyright © 2020, Oracle and/or its affiliates

Business Process Modeling
Decentralized
Invoice Invoice Payment BU A
BU A BU A
Entry Selection Processing
BU B
BU B BU B

Shared Service Center

Centralized Centralized Centralized
BU A Payment
Invoice Invoice
Entry Selection Processing BU A & B
BU A & B
BU B BU A & B

Payment Factory
Invoice Invoice Centralized
BU A Selection BU A Payment
Entry
Processing
BU A & B
BU B BU B BU A & B

11 Copyright © 2020, Oracle and/or its affiliates

 Validation Model
Installments
Validations Performed At Different Levels Payment
Payment File
Upstream Validations Downstream Validations

Invoice Invoice Payment File Creation Formatting Transmission

Entry Selection Build

12 Copyright © 2020, Oracle and/or its affiliates

Straight Through Processing
Payment Method Payment Process Profile

• Attribute on an invoice • Controls processing behavior

• Name given by user • Controls usage rules
• Doesn’t control the actual processing • Captures payment and payment file creation rules
• Captures usage rules • Controls transmission behavior
• Captures validations • Controls auxiliary reporting

PM defaults or is PPP defaults or

entered is entered Validations from Validations from Format from Separate
Printer Positive Pay
PM / Format format PPP remittance
advices

Invoice entered Invoices selected Invoices built Payments built into Payment file File transmitted Auxiliary
and validated for payment into payments payment file(s) formatted or printed reporting

Bank Central bank

Validations on Payment creation Transmission
instructions Bank reporting
PM rules from PPP details
from payee or (payment system) from
PPP PPP
Payment file Payment
creation rules from Instruction
PPP Register

13 Copyright © 2020, Oracle and/or its affiliates

Payment Process Profile Setup

Payments grouping in payment file

Processing setup
Reporting setup
Usage rules

Transmission details

14 Documents grouping in payments

Copyright © 2020, Oracle and/or its affiliates
Payment Method Setup

Payment method
usage rules

Pre-defined or user defined

validations can be attached with
payment method

15 Copyright © 2020, Oracle and/or its affiliates

 Key Features of Payments

16 Copyright © 2020, Oracle and/or its affiliates

Centralized Payments

 Shared Services model –

Improves flexibility and
responsiveness.
 Better control over suppliers
and their payments.
 Improved supplier relation
management
 Reduced transaction and
administration costs for
payments

17 Copyright © 2020, Oracle and/or its affiliates

Cross Currency Payments

Normal Payment Effectively manage cross-

border transactions

Invoice in USD Payment in USD

Allows customers to make
Cross Currency Payment payments in most stable
currency

Invoice in USD Payment in non

USD
Comply with legal
“Cross Currency Payment is a payment to the regulation which
supplier in a currency different from the invoice prescribes payment in a
currency” specific currency

18 Copyright © 2020, Oracle and/or its affiliates

 Payment Approval
Invoice Entry Invoice Payment Build Payment Formatting File Creation
Selection Approval

Notifications

Rejected Approved

PPR gets terminated

 Enforce approval process for payment process requests

 Enable management to review and prioritize payments for best use of available
funds
 Approve or reject payment process requests
19 Copyright © 2020, Oracle and/or its affiliates
Additional Information

• Working with Fusion Payments Formats MOS Note 1413989.1

• Troubleshooting guide on Formatting and the Payment Process MOS Note 1388385.1
• PGP Encryption and Digital Signature for Payment Files MOS Note 2134791.1
• Oracle Financials Cloud Using Payables Invoice to Pay
• Oracle Financials Cloud Implementing Payables Invoice to Pay

20 Copyright © 2020, Oracle and/or its affiliates

Thank you
21 Copyright © 2020, Oracle and/or its affiliates