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Payment Processing with Oracle Payments:

What’s New in Oracle E-Business Suite Release 12
Victoria Anderson
Manager, Payment Product Mangement
• Purpose:
This document provides an overview of features and enhancements included in
Release 12.  It is intended solely to help you assess the business benefits of
upgrading to Release 12.
•
Disclaimer:
This document in any form, software or printed matter, contains proprietary
information that is the exclusive property of Oracle.  Your access to and use of
this confidential material is subject to the terms and conditions of your Oracle
Software License and Service Agreement, which has been executed and with
which you agree to comply.  This document and information contained herein
may not be disclosed, copied, reproduced or distributed to anyone outside
Oracle without prior written consent of Oracle.  This document is not part of
your license agreement nor can it be incorporated into any contractual
agreement with Oracle or its subsidiaries or affiliates.   This document is for
informational purposes only and is intended solely to assist you in planning for
the implementation and upgrade of the product features described.  It is not a
commitment to deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions.  The development, release, and
timing of any features or functionality described in this document remains at
the sole discretion of Oracle.  
Agenda

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• What is Oracle Payments?
• Disbursements
• Key Disbursement Enhancements
• The Integrated Disbursement Process
• Oracle Payments Demo
• Funds Capture
• Key Funds Capture Enhancements
• The Integrated Funds Capture Process
• Q&A
 Question for Audience
What release are you on?

Release 12
• Thinking about it
• Implementing it
• Already there
Of those not live on R12
• Release 11.5.9 or earlier
• Release 11.5.10
• Something else
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What is Oracle Payments?

 Payment Processing in Release 11i

Oracle Oracle Oracle Oracle Global

Receivables Payables iPayment Financials
Direct Check Credit Card Check
Debits Printing Payments Printing
Bills Receivable EFT Direct Direct
Remittances Payments Debits Debits
Bills Receivable EFT
Remittances Payments
Bills Receivable
Remittances
 Payment Processing in Release 12

Order-to-Cash Products Procure-to-Pay Products

Receivables, iStore, Order Management, Payables, Federal Payables, Global
Collections, Contracts… Financials, Loans…

One payment processing solution leveraged by multiple products

Oracle Payments
Credit Card Direct Bills Receivable Check EFT
Payments Debits Remittances Printing Payments
Release 12

Oracle Payments:
Oracle Payments is a central engine to
disburse and capture payments. For
electronic payments, it connects Oracle
EBS products like Receivables and
Payables to financial institutions like banks
and credit card processors.
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Disbursements
 Key Disbursement Enhancements
Payment Formats
• Out-of-the-box Content
- Rich library of seeded electronic formats

• Intuitive Toolset for Making Changes

- Integration with XML Publisher makes it easy for business
user to create or modify formats in
any word editor
- Special capabilities of
XML Publisher eText allows
user-intuitive manipulation
of electronic formats
 Key Disbursement Enhancements
Payment Formats

Key formats supported out of the box include:

• SWIFT MT 103
• ANSI X12 820
• EDIFACT PAYMUL
• NACHA
• NACHA CTX
• NACHA CCD
• NACHA CCDP
• NACHA PPD
Key Disbursement Enhancements
Payment Formats (eText)
 Key Disbursement Enhancements
Configurable Validation Rules and Processes

• Rich library of country- and format-specific validations

usable out of the box

• Highly configurable framework

• WHAT: Define new validations rules
• WHEN: Set timing of validations
• HOW: Set how errors should be handled
 Key Disbursement Enhancements
Configurable Validation Rules and Processes

• Validate upstream or downstream

Configurable validations

Invoice Invoice Payment File Creation Formatting Transmission

Entry Selection Build
 Key Disbursement Enhancements
Configurable Validation Rules and Processes
Configurable Validations
• Validate upstream Object
or downstream
Validation Rules Timing

Configurable
Invoice validations
Invoice
Pre-Defined
Entry
Library
Invoice Invoice Payment File Creation Formatting Transmission
Entry Selection Payment
Build

User- Payment
Defined Build
Batch Validations
 Key Disbursement Enhancements
Electronic Transmission

• Set up configurations based on standard protocols

• Manually or automatically initiate the transmission of
the payment file

• Protocols supported
out of the box
• FTP
• Secure FTP
• HTTP
• HTTPs
• AS/2
 Key Disbursement Enhancements
Enhanced Process

• Separate out user needs – During selection of invoices to be paid,

Payables user wants to focus on financial benefit such as cash flow and
discounts, not payment method
• Invoice selection is now agnostic of payment method
• Oracle Payments groups invoices into payments within the group
selected invoices, and then groups payments into payment files based
on hard-coded and user rules (without being confined to the selection
group).
 Key Disbursement Enhancements
Enhanced Process

Docs payable selected by source Documents payable Payments grouped into payment
product and sent to Oracle within a payment process instructions per user-defined and
Payments in a request built into payments per hard-coded rules
payment process request user-defined and hard-coded rules

Payment Process Payment Process Payment Instruction 1

Request A Request A

Pay to $

Pay to
$

Payment 101

Payment Instruction Creation Program

Pool of documents payable Payment 101
Source Product Selection Process

Pay to $

in source product Invoice 1

Payment Instruction 2

Payment Build Program

Invoice 4 Payment 102

Pay to $

Payment Process Payment Process Pay to $

Invoice 1 Request B Request B Payment 102
Invoice 2 Invoice 4
Invoice 3 Payment 103
Invoice 5
Invoice 6 Pay to $

Payment Instruction 3

Invoice 2 Pay to Payment 103 $

Invoice 3 Invoice 5 Pay to $

Invoice 6 Payment 104

Payment 104
 Key Disbursement Enhancements
Process Visibility Though New Dashboard

Supports different business models :

• Centralized AP and Payments
• Decentralized AP and centralized Payments
• Decentralized AP and decentralized Payments

Guides the user with smart Take Action icon

Key Disbursement Enhancements
Process Visibility Though New Dashboard
 The Integrated Disbursement Solution
Flexible and Powerful

• End-to-end process from entry of the document payable to

printing or electronic transmission can be automated
• Configurable validations and exception handling can be tailored
to any business process or country requirement

Payment Validations Aggregation Formatting Transmission

Request

• Sophisticated • Detailed • Rule-based • XML based • Rich out-of-

defaulting of validations can aggregation formatting the-box
payment be configured to of payment framework content and
methods on to be performed instruction extensible
documents upstream or framework
payable downstream
 Release 11i Disbursement Process
Oracle Payables

Payment file contains exactly the payments that were

selected, so selection has to be done based on payment
method, currency, and operating unit

Oracle Payables Payment

Payment Build
User File

Select Invoices
 Release 12 Disbursement Process
Oracle Payments

End product is minimum number of files needed for unique

processing needs

Payables Selection Payment Payment Transmit

User 1 Batch 1 Build Instruction Payments

Payment
Instruction
Pool of Built Creation
Select Invoices Payments

Payables Selection Payment Payment Print

User 1 Batch 1 Build Instruction Payments

Select Invoices
 Release 12 Disbursement Process
Impacted Applications

Significant impact
• Oracle Payables
• Global Financials
Minor impact
• Oracle Cash Management (new Bank Transfer feature)
• Oracle Receivables (new Customer Refund feature)
• Oracle Loans (new payment method setup)

Any product that pushes disbursements through Oracle Payables is

taking advantage of the richness of Oracle Payments functionality

Oracle Payroll is the exception to the central disbursement engine

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Oracle Payments Demo

Straight-Through Processing
System Settings
Payment
Method Currency

Check USD Check US

Standard

Check EUR Cheque EUR

Laser

Electronic USD SWIFT MT103

EUR FTP
Oracle Payments Demo
 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

 Oracle Payments Demo

• First Level Bullet

Oracle Payments Demo
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Funds Capture
Key Funds Capture Enhancements
Configurability

• Funds Capture Process Profile is the focal point of configurability

Process Attributes:
Authorization Format
Transaction Attributes: Funds Capture Settlement Format
Operating Unit Process Profile Acknowledgement Format
(via Payee’s Routing Rules)
Payment Method Settlement Grouping
Routing Rule Conditions Settlement Batch Limits
Transmission Configuration
External Reporting
 Key Funds Capture Enhancements
Process Visibility Though New Dashboard

Significant impact
• Oracle Payables
 The Integrated Funds Capture Solution

Flexible and Streamlined

• End-to-end process from authorization through settlement and
acknowledgement can be automated
• Handles credit and debit card captures and electronic bank
transfers from multiple calling products in EBS

Request Authorization Settlement Acknowledgement

• Upstream • Routing rules drive • Payments calls • Payments

products call how the payment system in automatically
Payments to transaction will be individual or batch queries payment
authorize processed and mode to request system for
transaction with which third party settlement acknowledgement
third party payment system of transaction
payment system will be used success
 R12 Funds Capture Process
Supporting Straight Through Processing

• Configurability to support diverse business models and

regional needs without customization; enables global
processes
• Automation to streamline process and save costs through
electronic straight through processing
• Integration with XML Publisher to shift implementation and
maintenance of payment formats from technical to business
user
• Single repository of external-party payment instruments (bank
account and credit/debit card numbers) with masking and
encryption aids deploying company in security and
compliance issues
R12 Funds Capture Process
Payment Systems
• There are adaptors available for the following payment systems
but adaptors can be created for and by any company.

Paymentech Concord EFSnet

– Credit Card
– Purchase Card Level 3
– PINless Debit Card
– US ACH, including Online
Account Validation
– Credit Card
– Purchase Card Level 3
– PINless Debit Card
– US ACH, including Online
Account Validation

First Data (North Platform) CyberSource

– Credit Card – Credit Card
– Purchase Card Level 2 – Purchase Card Level 2

Wells Fargo VeriSign

– Credit Card – Credit Card
– Purchase Card Level 2 – Purchase Card Level 2
– US ACH
Q&
A
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The preceding is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.