Oracle Fusion Payments

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  • The payment process profile defines how Oracle Fusion Payments should manage the document payable, payment, and payment file throughout these payment process steps:
    Payment Creation
    Payment File Creation
    Formatting
    Transmission
    Printing
    Reporting
    The document payable is a transaction that is selected for payment. Most commonly, these are represented by Oracle Fusion Payables invoice payment installments. Similar documents payable are grouped together into payments during the payment process.
    The payment process request is a grouping of documents payable selected for payment processing. This grouping is originated by the invoice selection process. The payment process request contains one or more documents payable to be paid and optional payment processing instructions.
    The payment is a transfer of funds to a supplier, customer (for refunds), or employee (for expense reimbursements).
    The payment file is a grouping of payments to be paid the same way, along with aggregate payment information. Ultimately, the payment file is transmitted to a bank for further processing and payment, or printed as a check run.
  • The funds capture process profile defines how Oracle Payments should manage the funds capture transactions and settlement batches throughout these funds capture process steps:
    Formatting
    Transmission
    Acknowledgement Processing
    Settlement Batch Creation
    Reporting
    Unlike Payment Process Profile, the Funds Capture Process Profile is derived from routing rules
    A settlement batch is a grouping of settlements (and sometimes credits), along with aggregate settlement information. It is ultimately formatted and transmitted to a payment system for further processing and settlement.
    An internal payee is a group of business units and supported capabilities. An internal payee’s Routing Rules drive which payment system will handle the transaction and what process definition (funds capture payment profile) will be used.

Transcript

  • 1. Disclaimer Oracle Online Training Materials – Usage Agreement Use of the information, documents and online training courses (collectively, “Materials”) found on this area of the Site constitutes agreement with the following terms and conditions (as well as those set forth in the Purpose and Disclaimer sections below): 1. Oracle is pleased to allow its business partner (“Partner”) to download and copy the Materials found on this area of the Site. The Materials are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express, implied or statutory, including without limitation the implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, accuracy, timeliness and non-infringement of third-party rights. The information contained herein is subject to change without notice. 4. Under no circumstances shall Oracle be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of these Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials. 1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 2. Disclaimer Purpose: This document provides an overview of features and enhancements included in Oracle Fusion Applications 11gR1 Release 11.1.1.5.0 and applicable updates. It is intended solely to help you assess the business benefits of upgrading your existing Oracle Products to this release, or implementing completely new Oracle developed products, and planning your I.T. Projects. 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 or other applicable contract with Oracle, 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 Oracle’s prior written consent. 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 intended to outline our general product direction. It is intended for informational purposes only and solely to assist you in planning for the implementation and upgrade of the product features described. Release information contained in this document is not a firm development plan. Release information published here should not be used as the basis for customer delivery commitments, as part of marketing efforts, or during contract negotiations. This 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, and inclusion or not thereof in the commercially available version of the Software, if any, is subject to change at any time and is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code. 2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 3. <Insert Picture Here> Oracle Fusion Payments Implementation and Configuration Considerations
  • 4. Agenda 1. Key Feature: Disbursements • • • • • Prerequisites Feature Summary Deltas with EBS Key Decisions and Best Practices Relevant Setup Tasks 1. Key Feature: Funds Capture • • • • • 4 Prerequisites Feature Summary Deltas with EBS Key Decisions and Best Practices Relevant Setup Tasks Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 5. Disbursements 5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 6. Prerequisites • The concepts covered in the following Fusion Version 1 TOIs are prerequisites for understanding this implementation document: • Manage Payments L3: Prepare and Record Payments • Manage Payments L3: Process Payment Files • Set Up Procurement L3: Define Disbursements and Configure Payment System Connectivity 6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 7. Feature Summary Key Terminology Payment Process Profile Payables User 1 Payment Process Request 1 Payment File Payment Build Pool of Built Payments Select Documents Transmit Payments Payment File Print Payments Payment File Creation Payable Payables User 2 Payment Process Request 2 Payment Build Select Documents Payable Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 8. Deltas with EBS • Terminology Change: Payment Instruction changed to Payment File • New setup entity Payment Code combines three EBS setup entities: • Delivery Channel Code • Bank Instruction Code • Payment Reason Code 8 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 9. Key Decisions and Best Practices • What is your business process? • Decide how much to automate • What is your organizational structure? • Support for decentralized, centralized, payment factory models • What are your processing goals? • Targeted invoice selection or least effort • What payment methods do you need? • Broad, or granular with validations 9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 10. Key Decisions and Best Practices • What validations do you need? • Payment method or format • User defined or predefined • Document payable, payment, or payment file • What formats can you use? • Configuring or customizing for your needs • Security (Encryption and Masking) 10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 11. Key Decisions and Best Practices What is your business process? • Straight Through Processing • Advantages: • Fewer touch points means less effort • Exceptions handled outside the payment process, good payments not held up by the few exceptions • Tight Manual Control • Advantages: • Allows manual review and confirmation of payments in process • Allows step to be initiated manually to fit specific timing needs Note: Any combination of manual and automated steps can be used. It is not necessary to be completely automated or completely manual. The best practice is to automate everything except manual review of either selected invoices or proposed payments. See following slides for further options and best practices. 11 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 12. Key Decisions and Best Practices What is your business process? • The following settings control automation of steps throughout the payment process: Page Details Manage Disbursement System Options •Validation error handling •PPR Status report submission Validation error handling setting defaults to payment process request (PPR) templates or directly to Submit PPRs page if no template is used Create Payment Process Profile •Printing •Transmission •Reporting Set for automatic initiation or manual initiation. Reporting includes payment file register, positive pay, and separate remittance advice Submit Payment Process Request 12 Options •Validation error handling Choose to automatically remove any documents or payments with errors and progress valid items, or stop the process and review errors Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 13. Key Decisions and Best Practices What is your business process? • Optional stopping points for review during the payment process: Page Details Manage Disbursement System Options •Review proposed payments Setting defaults to payment process request (PPR) templates or directly to Submit PPRs page if no template is used Submit Payment Process Request 13 Options •Review selected installments •Review proposed payments Best practice: While you can stop at both points, it is recommended to stop for review at most once. The stopping points offer different values, so pick the one that suits your needs best Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 14. Key Decisions and Best Practices What is your business process? • Best practices for process submission Object Best Practice Payment Process Create one template for each unique combination of submission Requests attributes. Ensure your templates cover all normal cases – avoid off-cycle payments and the associated costs. Do not enable Create Payment Files Immediately, as this will limit payment file creation to within a single PPR. Create a scheduled process for each template to create PPRs automatically. This should be run frequently enough to meet due dates, as well as to take advantage of early payment discounts. 14 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 15. Key Decisions and Best Practices What is your business process? • Best practices for process submission Object Best Practice Payment Files Create one or more scheduled processes that will run after all PPR processes complete. The payment file will pick up any waiting payments with the proper attributes, regardless of which PPR they originated in, allowing for the fewest number of payment files possible. Fewer payment files result in lower transaction processing costs. 15 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 16. Key Decisions and Best Practices What is your organizational structure? Decentralized Invoice Entry BU A Invoice Selection BU A Payment Processing BU B BU B BU A BU B Centralized Centralized Invoice Entry BU A Centralized Invoice Selection Centralized Payment Processing BU A & B BU B BU A & B BU A & B Payment Factory Invoice Entry BU A BU B 16 Invoice Selection BU A Centralized Payment Processing BU A & B BU B Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential. BU A & B
  • 17. Key Decisions and Best Practices What is your organizational structure? • Decentralized Processing • Enable each BU to create its own payment process • Enable each BU to decide who and when to pay • Centralized Processing • Reduce manpower costs by centralizing payment process decisions and exception handling • Reduce payment processing costs by pooling payments together into fewer payment files • Efficiencies of scale allow some users to specialize in payment processing • Payment Factory • Enable each BU to decide who and when to pay • Reduce payment processing costs by pooling payments together into fewer payment files 17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 18. Key Decisions and Best Practices What are your processing goals? • Select invoices to be paid with a broad selection criteria, thus creating as few payment process requests as possible • Recommended for a Centralized Processing model • Payment process templates can be more generic, and fewer of them • Best practice for supporting broad selection is to ensure that only one payment process profile (PPP) is active per unique set of transactional attributes (business unit, payment method, disbursement bank account, and currency) • System can derive PPP automatically per payment, instead of forcing all payments in a payment process request to have the same PPP 18 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 19. Key Decisions and Best Practices What are your processing goals? • Select invoices to be paid with targeted selection criteria, thus allowing precise control over time • Recommended for Decentralized or Payment Factory models • Allows different types of payments to be managed in separate processes, for example expense reports Monday, domestic supplier payments Tuesday, and so on • Best practice to support targeted selection is to create specific payment process templates for each type, using pay groups, payment priorities, or other targeted selection criteria 19 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 20. Key Decisions and Best Practices What payment methods do you need? • Choose broad payment methods like the seeded Check and Electronic, or choose to create your own more granular payment methods, optionally with targeted validations • Use laser printed checks rather than numbered checks when possible. • For a detailed discussion of the costs and benefits of more granular payment methods, see topic ‘Payment Methods: Explained’ in the ‘Define Disbursements’ chapter of the Implementation Guide 20 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 21. Key Decisions and Best Practices What formats can you use? • Favor standards-based formats that can be used with multiple banks • EDIFACT formats (PAYMUL, MT100, MT103, etc) • NACHA formats (Generic, CCD, PPD, etc) • Find out what your processing bank supports • Modify seeded formats using BI Publisher • An XML extract provides Payments data • Use RTF templates to create or modify human-readable layouts, for checks and reports • Use ETEXT files to create fixed-position layouts, for transmission and automated payment processing • For a more detailed discussion of tailoring formats to your needs, see the white paper ‘Format Customization In Oracle Payments’ at support.oracle.com 21 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 22. Key Decisions and Best Practices What validations do you need? • You can use prepackaged validations designed to match specific formats • You can create your own validations for almost all transaction attributes • Layer them on top of prepackaged validations when formats or regulations change • Or use them to create entirely new validations for your own formats 22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 23. Key Decisions and Best Practices What validations do you need? • Validations can be associated with payment methods or formats • Validations can be performed at the following levels: • Document payable • Payment • Payment File • Documents payable are validated during invoice entry if the validation is associated with a payment method… • Immediate feedback • Fastest way to resolve errors and make payments • Requires knowledgeable invoice entry personnel and a larger number of payment methods with different validations associated 23 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 24. Key Decisions and Best Practices What validations do you need? • … Or after payment process request submission if the validation is associated with a format • Allows a specialized payment process manager to queue up and resolve errors • Allows fewer payment methods and requires less knowledge for invoice entry personnel • For a detailed discussion of the costs and benefits of validations, see topic ‘Validations: Critical Choices’ in the ‘Configure Payment System Connectivity’ chapter of the Implementation Guide 24 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 25. Key Decisions and Best Practices Security • Use the Positive Pay File to reduce fraud • Encrypt and mask supplier bank account numbers before importing or entering any data in the system • Use Oracle Wallet Manager to create a wallet • Store wallet in a very secure, limited access file system location • Obtain encryption keys externally, or have Payments generate them • Rotate encryption keys periodically • See System Security Options: Critical Choices in the Implementation Guide 25 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 26. Relevant Setup Tasks • • • • • • 26 Payment Methods Payment Process Profiles Validations Formats Transmission Configurations System Security Options Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 27. Funds Capture 27 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 28. Prerequisites • The concepts covered in the following Fusion Version 1 TOIs are prerequisites for understanding this implementation document: • Process Customer Payments L3: Manage Funds Capture • Set Up Order Fulfillment L3: Define Funds Capture and Configure Payment System Connectivity 28 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 29. Feature Summary Key Terminology Receivables User Internal Payee Routing Authorization Payment System Funds Capture Process Profile Receipt Creation Receivables User Settlement Settlement Batch Creation Payment System Remittance Payment System Settlement Batch Acknowledgment Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential. Receivables
  • 30. Deltas with EBS • Improved Transaction Exception handling, through Accounts Receivable 30 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 31. Key Decisions and Best Practices • • • • • • 31 What Payment Methods to Accept What Payment Systems to Use What Formats to Use What Transmission Protocols to Use Security Setup: Encryption and Masking Tying It All Together: Internal Payee Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 32. Key Decisions and Best Practices What payment methods to accept • Credit Cards • Implement additional features to reduce processing fees • Company card support • Address verification • Card verification code • Bank Account Transfers • Payer-initiated payment methods (such as checks and cash) are recorded directly in Oracle Fusion Receivables 32 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 33. Key Decisions and Best Practices What payment systems to use • Leverage existing banking or processing relationship • Your bank may process transactions, or have a partnership with a processor • Leverage processors with existing integrations with Oracle Payments EBS • Chase Paymentech (Certification Pending) • First Data Global Gateway (formerly Concord EFSnet) (Certification Pending) • PayPal PayFlow Pro (Certification Pending) • Other existing integrations have been built by gateways or consulting firms 33 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 34. Key Decisions and Best Practices What formats to use • Find out what your processing partner supports • For a detailed discussion of tailoring formats to your needs, see the white paper ‘Format Customization for In Oracle Payments’ at support.oracle.com 34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 35. Key Decisions and Best Practices What formats can you use? • Modify seeded formats using BI Publisher • An XML extract provides Payments data • Use RTF templates to create or modify human-readable layouts, for checks and reports • Use ETEXT files to create fixed-position layouts, for transmission and automated payment processing • For a more detailed discussion of tailoring formats to your needs, see the white paper ‘Format Customization In Oracle Payments’ at support.oracle.com 35 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 36. Key Decisions and Best Practices What transmission protocols to use • Find out what your processing bank supports • Favor transmission protocols seeded in Oracle Fusion Payments • Use Funds Capture Process Profile for greater configurability in transmission and formatting • Avoid name-value pair approach 36 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 37. Deployment Architecture External Connectivity End Users Router over Leased Line DMZ Public Zone OR HTTP Load Balancing Payments Transmission Servlet Internet DMZ Secure Zone Payment System Application Tier Intranet Database Tier 37 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 38. Key Decisions and Best Practices Security • Comply with PA-DSS Security Standards • Hard requirement for accepting credit card payments • Minimize risk of exposing sensitive customer data • Work with an PA-DSS auditor to ensure compliance and avoid potential violations • Encrypt and mask customer credit card and bank account numbers before importing or entering data into the system 38 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 39. Key Decisions and Best Practices Security • Use Oracle Wallet Manager to create a wallet • Store wallet in a very secure, limited access file system location • Obtain encryption keys externally, or have Payments generate them • Rotate encryption keys periodically • See System Security Options: Critical Choices in the Implementation Guide 39 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 40. Key Decisions and Best Practices Security Gotchas • Bank account numbers are not encrypted immediately upon entry • Configure the Encrypt Bank Account Data program to run frequently • Credit Card Numbers that are entered through PLSQL (via migration or import) are not encrypted immediately • Run the Encrypt Credit Card Data program after imports 40 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 41. Key Decisions and Best Practices Tying It All Together: Internal Payee • Transactions are identified by Business Unit, but are processed by Internal Payee • If all Business Units require identical processing, create one internal payee to serve them all • If Business Units require different processing, create one internal payee per business unit • In a mixed model, use Routing Rules to determine how to process each transaction 41 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 42. Relevant Setup Tasks • • • • • • 42 Payment Methods Funds Capture Process Profiles Internal Payees Formats Transmission Configurations System Security Options Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.
  • 43. <Insert Picture Here> Oracle Fusion Payments Implementation and Configuration Considerations