Demystifying the World of Oracle Session ID:

Payments in R12 10123

How to Handle Credit & Debit
Card Captures Prepared by:
Lori Cirella, IT Consultant
In this session, attendees will gain knowledge and insight of how to Edson Morales, IT Consultant
implement Oracle Payments Fund Capture Flow. Attendees with also Office Depot, Inc.
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
Gateway April 24, 2018 11:00 AM

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

• Introductions
• Office Depot Overview
• A Success Story: Implementing R12 Payments - Funds Capture at Office Depot
• R12 Payments Introduction
• Office Depot Funds Capture Configuration
• Office Depot Credit Card / Debit Card Processing
• Office Depot Encryption
• Q&A
Introduction
About the Presenters
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
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
Office Depot Overview

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

Business Area Business Functions

Customer to Cash Accounts Receivable, Bill Management, eBill, Credit Management, Credit
Settlement, Collections Integration, Cash Application, Order Management,
Payments, Cash Management, Sales Margin, EBTax, Tax Content, Customer
Data Hub, TOPS

Procure to Pay Accounts Payable, Vendor Management, Check Printing, iExpense

iProcurement, Purchasing, Inventory, Shared HR, iSupplier

General Accounting General Ledger, Fixed Assets, Project Accounting, Reporting/FSGs, COGS,

Customer Service Case Management, iSupport

3rd Party Upgrades Informatica (ILM), Taxware, Teradata Decision Experts
A Step Forward in our Transformation Journey
 A Success Story:
Implementing Oracle R12
Payments - Funds Capture at
Office Depot
Office Depot Success Story

Office Depot implemented funds capture by integrating Oracle Payments R12 with a third party payment
gateway (AJB) for authorization and settlement of funds.

Implementation of funds Capture Configuration (including servlet and encryption), iReceivables

authorization and settlement.

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.

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.
Oracle R12 Payments
Introduction
Oracle R12 Payments Introduction
Oracle R12 Payments module is a centralized engine that is designed to work with multiple E-
Business Suite products. Products that integrate with Oracle Payments are; Advanced Collections,
Cash Management, Order Management, Payables, Receivables, iReceivables and iStore.
Oracle R12 Payments Primary Functions

Two primary functions

Funds Capture Funds Disbursement

Funds Capture refers to the electronic Paying of Funds owed to creditors,
retrieval of funds from payers, such as such as suppliers
customers, who owe debts to a company.

Think “Accounts Receivable (AR)” 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 and transmits them to payment systems according to
transmission configurations set up in Oracle Payments. 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
Configuration
Funds Capture Implementation Steps

Things to Consider

• Funds Capture or Funds Disbursement?

• Which Payment System do you Use?
• What Source Products are you using?
• What Format do you need?
• What are your Security Needs?
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

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

Setting up Routing Rules

Insert Receipt
Method
Office Depot Credit
Card / Debit Card
Processing
Office Depot Payments Challenges
Sales Orders / Payments Volume
– Approx. 500K Sales orders imported every day Into Oracle Order Management.
– AR Transactions – 88 Mil, Avg per Month 2.4Mil
– AR Transaction Lines – 878 Mil, Avg per Month 29.6Mil
– AR Payment Schedules – 140Mil, Avg per Month 4.1Mil
– AR Open Payment Schedules – 1.7Mil
– AR Cash Receipts – 52 Mil, Avg per Month 1.6Mil

Authorization is captured at ordering system

– POS (Store) register
– WWW / Online Sales Channels

Remittance Performance Issues

– Automatic Remittance split into 2 steps
• Automatic Remittances Creation Program (API) is used to change the receipt to REMITTED status in ar_cash_receipts_all.
• Submit Offline Transactions is used to settle the receipt. This program calls the standard servlet which calls the custom servert which finally calls
settlement_pkg.
– Submit Offline Transactions not multi threaded

Encryption changes.
– Had to migrate 11i system security key to R12 wallet
– Oracle no longer provided Decryption functionality.

Receipt Summarization
– Summarize POS (Store) receipts by store, date, tender in AR.
Office Depot Solutions – “Bypass”
The decision was made to bypass Oracle Payments for credit card auth/settlement except for iReceivables.

What does this mean?

Authorization Before:
– Create credit card bank account, credit card assignment.
– Create receipt
– Perform voice authorization request
– Voice authorization would call payment system servlet (ODAJBservlet).
– ODAJBservlet would return success.
Authorization After
– Create receipt
Capture Before:
– Run automatic remittance
– Run Submit Offline Transaction (New to R12)
– Submit Offline Transaction would call the configured payment system servlet (ODAJBservlet)
– ODAJBservlet would call custom settlement_pkg.pre_capture_ccreturn.
– Custom settlement_pkg.pre_capture_ccreturn would call custom settlement_pkg. custom_stg_receipt_for_settlement.
– Information recorded in custom IBY Batch TRXNS and custom IBY Batch DET Tables
Capture After:
– Receipts stored in custom receipts detail table.
– Run OD: IBY Stage Credit Card Settlement – Master
– OD: IBY Stage Credit Card Settlement – Master calls custom settlement_pkg. custom_receipt_for_settlement.
– Information recorded in custom IBY Batch TRXNS and custom IBY Batch DET Tables
Receivables Setup for “Bypass” vs iReceivables
Office Depot Credit Card Flow (Bypass)
iReceivables Authorization and Settlement
iReceivables Authorization & Settlement

Customer
Oracle
iReceivables

Initiate Credit Card Payment for Open Invoices

OD Custom Servlet AJB

Credit Card Auth
Gateway
Successful Auth

Createor Update Credit Card Account

IBY Tables

Create cash receipt in AR Credit Card

Providers
(Vantiv)

Create Standard AR
Cash Receipt

Credit Card is Stored with 2 Encrypted Values

Automatic Remittance 1. Oracle EBS Standard Encryption
2. Custom Encryption using AJB Key (DFF)

AJB
Gateway Create
Custom Receipt Table
Custom
Receipt

Stage Settlement
OD Custom Servlet Submit Offline Custom IBY tables iRec Stage
Transactions Settlement
Credit Card Sources

Encrypted Credit Card

Office Depot Payments Servlet
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
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.

To set up a payment system servlet with secured sockets layer, enable HTTPS on the
middle-tier server where the servlet resides
Submit Offline Transactions Performance
During the R12 upgrade initiative, performance testing revealed that Submit Offline Transaction
was a bottleneck.

Bug 17583741 : NEED ABILITY TO RUN SUBMIT OFFLINE TRNXS MORE THAN ONE AT
A TIME MULTI THREADED

Installed patch p18046882_R12.IBY.B_R12_LINUX.zip.

Results
Without multi-threading
Transaction Count: 5568
SOT Processing Time: 20 min 53 secs

Multi-threading 3 workers
Transaction Count: 4607
Elapse Time: 6 min 23 secs
Office Depot
Encryption
Credit Card Encryption

• No longer able to place encrypted credit card values in the

oe_payments_iface_all.credit_card_number. Oracle wants it unencrypted, and
it will encrypt it while importing.
• Populate the oe_payments_iface_all table but appending ‘-BYPASS’ to the
original_sys_document_ref field to avoid having standard HVOP/Order Import
fail because the credit card number field is not provided/or custom encrypted
• Custom Encrypted Data (Encrypted Credit Card and Key used to
encrypt/decrypt credit card field).
Office Depot 11i Encryption/Decryption Processing – Credit Cards
11i Encryption/Decryption Processing – Credit Cards
iReceivables – Credit Card Processing
Import SAS Files (Pmts) Into Interface Tables
Encrypt Insert Encrypted
Decrypt Value (11i Oracle Key)
SAS Using R11 Bank
With iReceivable
Files Standard Account &
SAS Key Credit Card AP_BANK_ACCOUNTS_ALL
11i Oracle Key Receipt Creation
Receipts
API

Insert
Encrypted Value Completed
(11i Oracle Key)

OE_PAYMENTS_IFACE_ALL
Custom Return Tenders IFACE
Stage Settlement – AR & iRec Credit Card Receipts
Custom Deposits Table
Table
(Interim Tables) Automatic
Scheduled Concurrent Program
Remittance
(AR/iRec
Receipt already
Receipts)
Exists in order
HVOP - Credit Card Processing Insert receipt detail
Encrypted YES NO
iRec
Value Receipt?
HVOP (11i Oracle Key)
Prepayment Insert
&
API Encrypted
Order Import Custom Receipts Table
Value
(11i Oracle Key)
Executes
Encrypted AP_BANK_ACCOUNTS_ALL
Value is passed
OE_PAYMENTS
Custom Returns Tender Table
Settlement Package

Decrypt
NON-POS POS Using
Type Insert 11i Oracle
Encrypted Key
Value
(11i Oracle Key)
Stage Settlement – POS Credit Card Receipts
R11 Bank
Account & Encrypt
Receipt Using
Custom Receipts Table
Creation API AJB Key
Executes
Insert Insert
Encrypted Insert Encrypted
Value Encrypted Value
(11i Oracle Key) Value (AJB Key)
(11i Oracle Key)

Custom Receipts IBY History Tables

AP_BANK_ACCOUNTS_ALL Completed Table
R12.1.3 Encryption/Decryption Processing – Credit Cards
iReceivables – Credit Card Receipt Processing
Import SAS Files Into Payment Interface Tables Insert
Encrypted
R12 API YES – Store
Encrypt iReceivable Encrypt Using Value
Decrypt Credit Card Receipt Receipt Info
SAS
With
Using Credit Card Custom Key
& Receipt Created?
(Custom Key)
Files Custom Receipts (for iRec Staging)
SAS Key Creation
Key

Insert Encrypted Value Insert Encrypted

R12 IBY Credit Card
(Custom Key) Value Account Table
IREC STAGING
(Interim Table)
(R12 Oracle Key)

OE_PAYMENTS_IFACE_ALL
Custom Deposits Table Custom Return Tenders IFACE
(Interim Tables) Stage Settlement – AR & iRec Credit Card Receipts
Automatic
Scheduled Concurrent Program
Remittance
(AR/iRec
HVOP - Credit Card Processing Receipts)

Insert YES NO
HVOP Encrypted iRec
Prepayment Receipt?
& Value Receipt already
API
Order Import (Custom Retrieve Exists in order
Key) iRec Encrypted receipt detail
Value Executes
Encrypted OE_PAYMENTS (Custom Key)
Custom Return Tenders IFACE
Value is passed Insert
Encrypted Settlement Package
NON-POS POS Value Decrypt
Type
(Custom Key) Using
IREC STAGING
Insert (Interim Table)
Custom Receipts Table Custom
Decrypt Key
Encrypted
Using
Custom Value
Key (Custom
Key) Stage Settlement – POS Credit Cards
( POS Internal Store Customer Only) Encrypt
R12 API Using
Credit Card Custom Receipts Table AJB Key
& Receipt Directly Executes
Creation
Insert Insert Insert
Encrypted Encrypted Encrypted
Value Value Value
(R12 Key) (Custom Key) (AJB Key)
Update
R12 IBY Credit Card OE_PAYMENTS Custom Receipts
Account Table with extension Table Settlement History
OD
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)
• Automatic Receipts & Automatic Remittance: Listing of Log File Errors Generated by Credit Card
Processing (Doc ID 285227.1)
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.
 Lori.Cirella@officedepot.com
Edson.Morales@officedepot.com
Session ID:

10123

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