Oracle Payments

"To present a simplified overview of the Oracle Payments payment process:

1. The process begins when a source product, such as Oracle Payables, needs to pay "documents
payable", such as invoices [and memos].

2. Oracle Payables groups the documents payable into a "payment process request" [a batch for payment]
and submits it to [the] Oracle Payments [module].

3. Within Oracle Payments, the Build Payments program groups [the] documents payable into groups
known as ["proposed] payments", which represent individual checks or electronic [payments].

4. The Create Payment Instructions program groups [the proposed] payments into "payment instructions".
Payment instructions are then printed or submitted electronically to payment systems or banks."

"Oracle Payments [IBY] is a product [a module] in the Oracle E-Business Suite of applications, which
serves as a funds capture and funds disbursement engine for other Oracle applications. As the central
payment engine, Oracle Payments processes transactions, such as invoice payments from Oracle
Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and
bank accounts from Oracle Receivables. Oracle Payments provides the infrastructure needed to connect
these applications and others with third party payment systems and financial institutions.....

Funds capture refers to the electronic retrieval of funds....from payers, such as customers, who owe debts
to the deploying company [managed primarily by Oracle Receivables].

Funds disbursement, on the other hand, is the process of paying funds owed to creditors, such as suppliers
[managed by Oracle Payables]."

FORMAT

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. Oracle Payments uses Oracle XML
Publisher templates to format funds capture and funds disbursement transactions according to the
formatting requirements of specific financial institutions or payment documents.

In the Create Format setup page, formats are associated with specific Oracle XML Publisher templates
and can also be assigned validation sets to validate transactions that use that format. Multiple formats can
be used for a single payment system. One format is provided out of the box for each of the [seeded]
payment-related templates in Oracle XML Publisher.

Prerequisites
Before you can set up formats, you must perform the following setup step:

* Oracle XML Publisher templates"

VALIDATIONS

"Understanding Validations

Overview

In payment processing, it is critical to ensure that payment files sent to payment systems and financial
institutions are valid, in addition to being correctly formatted. If this is not done, the payment process is
slowed, which results in additional time and cost due to problem resolution. To help achieve straight-
through processing, Oracle Payments enables you to ensure that payment-related validations are present.

Oracle Payments provides seeded validations that are associated with the supported payment formats by
default. Validations are implemented using a flexible framework that enables you to assign new
validation rules. You can choose between using the seeded library of validations, using your newly added
validations, or using some combination of these rules.

Additionally, you have choices with respect to the timing of validation rule execution. Validations can be
assigned toward the beginning or toward the end of the payment process. A combination of rule
assignments can also be used. You can adapt validation rule assignment to support your business model.
For example, assigning and executing validations toward the beginning of the payment process may be
best for a decentralized payment environment, whereas assigning and executing validations toward the
end of the payment process may be better in a shared service environment, where payment specialists can
resolve validation failures.

Seeded validations can be assigned in one the following places:

User-defined Validations

Country-Specific Validations

A country-specific validation is a validation related to a specific country. It is comprised of a code and

multiple sub-validations that are required for the specific country, a validation point, and additional
specifications regarding the payment formats and/or payment methods to which the validations are
applicable. Country-specific validations are seeded by Oracle Payments and cannot be modified. For a
listing of Oracle Payments seeded, country-specific validations
 XML PUBLISHER

"Oracle XML Publisher is a template-based publishing solution delivered with the Oracle

E-Business Suite. It provides a new approach to report design and publishing by integrating familiar
desktop word processing tools with existing E-Business Suite data reporting. XML Publisher leverages
standard, well-known technologies and tools, so you can rapidly develop and maintain custom report
formats.

The flexibility of XML Publisher is a result of the separation of the presentation of the
report from its data structure. The collection of the data is still handled by the E-Business Suite, but now
you can design and control how the report outputs will be presented in separate template files. At runtime,
XML Publisher merges your designed template files with the report data to create a variety of outputs to
meet a variety of business needs, including:

Customer-ready PDF documents, such as financial statements, marketing materials, contracts, invoices,
and purchase orders utilizing colors, images, font styles, headers and footers, and many other formatting
and design options.

 HTML output for optimum online viewing.

 Excel output to create a spreadsheet of your report data.
 "Filled-out" third-party provided PDF documents. You can download a PDF document, such as a
government form, to use as a template for your report. At runtime, the data and template produce
a "filled-out" form.
 Flat text files to exchange with business partners for EDI and EFT transmission."