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Payment Processing with Oracle Payments: Whats 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
What is Oracle Payments? Disbursements
Key Disbursement Enhancements The Integrated Disbursement Process
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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 Receivables Direct Debits Bills Receivable Remittances

Oracle Payables Check Printing EFT Payments

Oracle iPayment Credit Card Payments Direct Debits Bills Receivable Remittances

Oracle Global Financials Check Printing Direct Debits EFT Payments

Bills Receivable Remittances

Payment Processing in Release 12

Order-to-Cash Products
Receivables, iStore, Order Management, Collections, Contracts

Procure-to-Pay Products
Payables, Federal Payables, Global Financials, Loans

One payment processing solution leveraged by multiple products

Oracle Payments
Credit Card Payments Direct Debits Bills Receivable Remittances Check Printing EFT 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 Entry Invoice Selection Payment Build File Creation Formatting Transmission

Key Disbursement Enhancements

Configurable Validation Rules and Processes Configurable Validations Validate upstream Object or downstream Validation Rules Timing
Invoice Configurable validations Pre-Defined Library Invoice Entry Invoice Selection Payment Payment Build File Creation Formatting Invoice Entry Transmission

Batch

UserDefined Validations

Payment Build

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

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 Request

Validations

Aggregation

Formatting

Transmission

Sophisticated Detailed validations can defaulting of be configured to payment be performed methods on to upstream or documents downstream payable

Rule-based aggregation of payment instruction

XML based formatting framework

Rich out-ofthe-box content and extensible framework

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 User Payment Payment Build

File

Select Invoices

Release 12 Disbursement Process

Oracle Payments
End product is minimum number of files needed for unique processing needs
Payables User 1 Selection Batch 1 Payment Build Payment Instruction Transmit Payments

Pool of Built Select Invoices Payables User 1 Selection Batch 1 Payment Build Payments

Payment Instruction Creation

Payment Instruction

Print 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 Check Currency USD Check US Standard Cheque EUR Laser

Check

EUR

Electronic

USD

SWIFT MT103 FTP

EUR

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

Transaction Attributes: Operating Unit Payment Method Routing Rule Conditions

Funds Capture Process Profile

(via Payees Routing Rules)

Process Attributes: Authorization Format Settlement Format Acknowledgement Format Settlement Grouping 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

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

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

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

First Data (North Platform)

Credit Card Purchase Card Level 2

CyberSource
Credit Card Purchase Card Level 2

Wells Fargo
Credit Card Purchase Card Level 2 US ACH

VeriSign
Credit Card Purchase Card Level 2

For More Information

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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 Oracles products remains at the sole discretion of Oracle.