Oracle R12 Payments: An In-depth Technical Setup Configuration for R12 Upgrade Session ID 12102

Vinod Dua Bechtel Corporation

Bechtel Corporation
Bechtel is among the most respected engineering, procurement, and construction companies in the world Customers have placed their confidence in Bechtels ability to manage large projects in which they have substantial investments for 115 years Legacy of more than 22,000 successful projects in 140 countries 1 TB Database size / 25 SOB / 24 OU / 2 Successful upgrades More than 400 Customizations in AP (50 EDI, 15 Manual, and 500+ Clearing Payment Configurations)

Topics for Today

R12 Payments High-level Process Flow R12 Payments Benefits Functional Benefits Technical Benefits R12 Payment Changes Functional Changes Technical Configuration Changes How to Speed Up R12 Technical Payment Configuration and Customizations

Topics for Today

11i vs. R12 Payments Table Level Comparison Lessons Learned Summary / Key Takeaways Questions/Comments

R12 Payments High-level Process Flow

Technical Functional
Create Formats

Configure Bank Accounts Confirm Payment Batch

Create Checks / EDI File

Create XML Templates

Create Payment Batch/ Templates

Create Payment Process Profile

Create Check Stocks

R12 Payments - Benefits

Functional Benefits:
Improved efficiencies by consolidation and integration Efficient Tracking using Payments Dashboard

R12 Payments - Benefits

Functional Benefits:
Streamlined Payment Processing using Templates

R12 Payments - Benefits

Functional Benefits:
Better Controls using Payment Process Profile

R12 Payments - Benefits

Functional Benefits:
Shared Service Architecture MOAC Fewer responsibilities, fewer payment runs

New Preliminary Payment Register An XML Report (Scheduled Payment Selection Report)
New Final Payment Register An XML Report (Payment Process Request Status Report) Consolidated Payment Runs

R12 Payments - Benefits

Technical Benefits:
Banks and bank accounts part of TCA Effective Management of Master Data Fewer configuration steps Shared Service Architecture MOAC Fewer responsibilities Standard XML Tags, eText, and RTF templates

R12 Payments - Benefits

Technical Benefits:
Ease of Customization using Oracle Standard Extensions

Payment Systems Transmission Configurations / FTP Protocols

Encryption of Payment Files

R12 Payment Changes

Functional Changes:
Manual Checks How to use Payment Process Profile Payment Batches - How to use / customize Payment Dashboard How to create Payment Templates and Schedule How to effectively consolidate Payment Runs

R12 Payment Changes

Technical Changes:
Payment Setup Configuration Changes Banks and Bank Branches Bank Accounts Payment Administrator Security Options XML Templates Formats Payment Systems Payment Process Profile

R12 Payment Changes

Technical Changes:
Reconfigure DFF for Banks / Bank Accounts / Suppliers Reconfigure Folders and Personalization

Redesign new roles and responsibilities using MOAC

Customize XML Tags using Client Extensions

Customize RTF Templates for Manual Check Stocks

R12 Payment Changes

Technical Changes:
Customize RTF Templates for Manual Check Stocks Review Bank Account Numbers Max display size is 11 characters

New LCT Files for migrating Payment Configuration

How to Speed Up R12 Technical Payment Configuration and Customizations

Clearing / Quick Payments Manual Payments EDI Payments Third Party Payments

Clearing / Quick Payments

Evaluate

Implement

Configure

Clearing / Quick Payments

Evaluate

Find out Bank Accounts/Check stock combinations for last 18 months Find out the Program Short Name Query the Program short Name in IBY_FORMATS_B.reference_format_code

Clearing / Quick Payments

Configure
Create a Custom Format

Field Name
Code
Name Type

Field Value
CUSTOM_FORMAT_CODE

Custom Format Code Name Disbursement Payment Instruction Oracle Payments Funds Disbursement Payment Format Instruction Extract, Version 1.0 Standard Check Format None

Data Extract XML Publisher Template Attachments

Clearing / Quick Payments

Configure
Create a Custom Payment Process Profile

Clearing / Quick Payments

Configure
Create a Custom Payment Process Profile
Field Name
Code

Field Value
CUSTOM_CHECK_PROFILE

Comments

Name
Processing Type Electronic Processing Channel Payment Completion Point Allow Manual Setting of payment Completion Payment Instruction Format

Custom Check Profile Electronic Oracle Payments When the Payment Instruction is Formatted No Custom Format Code Name This is under "Payment Instruction Format" Tab

Clearing / Quick Payments

Configure
Mass Update the Custom Check Format in: CE_PAYMENT_DOCUMENTS
UPDATE: ce_payment_documents SET : format_code = CUSTOM_FORMAT_CODE WHERE: format_code = 'IBY_PAY_CHK_STANDARD_1'

Clearing / Quick Payments

Implement

Create a Payment Batch

Use the Newly created Custom Profile

Select Invoices, Format, and Confirm the Payment Batch

Manual Payments

Evaluate

Implement

Customize

Configure

Manual Payments
Evaluate

Find out Bank Accounts/Check stock combinations for last 18 months Find out the Program Short Name Query the Program short Name in IBY_FORMATS_B.reference_format_code

Query the R12 Format Code and get the RTF Template

Manual Payments
Customize

Download the template from Payment Administrator Delete unwanted tags from the Standard Check Format Template Align the fields according to 11i Check Format

Manual Payments
Configure
Create a Custom Format

Field Name
Code
Name Type

Field Value
CUSTOM_FORMAT_CODE

Custom Format Code Name Disbursement Payment Instruction Oracle Payments Funds Disbursement Payment Format Instruction Extract, Version 1.0 Standard Check Format None

Data Extract XML Publisher Template Attachments

Manual Payments
Configure
Create a Custom Payment Process Profile

Manual Payments
Configure
Create a Custom Payment Process Profile
Field Name
Code

Field Value
CUSTOM_CHECK_PROFILE

Comments

Name
Processing Type Electronic Processing Channel Payment Completion Point Allow Manual Setting of payment Completion Payment Instruction Format

Custom Check Profile Electronic Oracle Payments When the Payment Instruction is Formatted No Custom Format Code Name This is under "Payment Instruction Format" Tab

Manual Payments
Evaluate
Query the Bank Account

Create a new Document Name

Attach the newly created Custom Check Format

Assign Start and End to Check Series

Manual Payments
Implement

Create a Payment Batch

Use the Newly created Custom Profile

Select Invoices, Format, and Confirm the Payment Batch

Verify to see if the Invoices are marked as Paid

EDI Payments

Evaluate

Implement

Configure

Customize

EDI Payments
Evaluate

Find out Bank Accounts/Check stock combinations for last 18 months that used EDI Find out customizations and special logic used for deriving certain fields Document the changes

EDI Payments
Configure
Convert Custom PL/SQL Payment Programs to XML Tag Use Payment Administrator to create a new Custom Format

Field Name Code Name Type Data Extract XML Publisher Template Attachments

Field Value
CUSTOM_FORMAT_CODE_FOR_XML

Custom Format Code Name for XML Disbursement Payment Instruction Oracle Payments Funds Disbursement Payment Format Instruction Extract, Version 1.0 Extract Identity None

EDI Payments
Configure
Create a Custom Payment Process Profile

Field Name
Code Name Processing Type Electronic Processing Channel

Field Value
CUSTOM_CHECK_PROFILE_XML

Payment Completion Point Allow Manual Setting of payment Completion Payment Instruction Format

Custom Check Profile for XML Electronic Oracle Payments When the Payment Instruction is Formatted

No Custom Format Code Name for XML

EDI Payments
Customize
Run a Payment Batch using Payment Dashboard and newly created Payment Process profile and Payment Format Output of Format Payment Instructions is the Standard Oracle XML Tag <?xml version=1.0 encoding=UTF-8 ?> - <OutboundPaymentInstruction> + <PaymentInstructionInfo> Batch Information + <PaymentProcessProfile> Payment Process Profile Name + <PaymentFormat> Payment Format Code + <CheckFormatInfo> Document Name + <InstructionTotals> Total Checks + <InstructionGrouping> Payer, Bank Accounts and Details + <OutboundPayment> Organization Details </OutboundPaymentInstruction> The Standard Oracle Package creates the XML Tag

EDI Payments
Customize
The extension / custom hook to Standard Oracle Package for XML Tag IBY_FD_EXTRACT_EXT_PUB The Custom tags can be created only at specific levels
XML File Level IBY_FD_EXTRACT_EXT_PUB Function To Modify

Example of Parameter Usage SELECT * FROM iby_pay_instructions_all WHERE payment_instruction_id = p_payment_instruction_id; SELECT * FROM iby_payments_all ipa WHERE ipa.payment_id = p_payment_id; SELECT * FROM iby_docs_payable_all dp WHERE dp.document_payable_id = P_document_payable_id;

OutboundPaymentIn Get_Ins_Ext_Agg(p_payment_instructi struction on_id IN NUMBER)

OutboundPayment

Get_Pmt_Ext_Agg(p_payment_id IN NUMBER)

DocumentPayable

Get_Doc_Ext_Agg(p_document_paya ble_id IN NUMBER)

Get_Docline_Ext_Agg(p_document_pa yable_id IN NUMBER, p_line_number IN NUMBER)

DocumentPayableLi ne

PaymentProcessPro Get_Ppr_Ext_Agg(p_payment_service file _request_id IN NUMBER)

SELECT * FROM iby_pay_service_requests WHERE payment_service_request_id = p_payment_service_request_id;

EDI Payments
Customize
Top Level: Outbound Payment Instruction:
This is the top level of the XML File and there is one Outbound Payment Instruction per Payment process request.

Level 2: Outbound Payment:

This is the Payment Level, i.e. an individual check or BACS payment amount to a supplier. There can be multiple Outbound Payments per Outbound Payment Instruction.

Level 3: Document Payable:

Details the documents (i.e. invoices) being paid. There can be multiple Document Payable tags per Outbound Payment.

Level 4: Document Payable Line:

This level details the invoice line. There can be multiple Document Payable Line tags per Document Payable

EDI Payments
Implement

Create a Payment Batch

Use the Newly created Custom Profile

Select Invoices, Format and Confirm the Payment Batch

Verify to see if the Invoices are marked as Paid

Third-Party Payments

Evaluate

Implement

Customize

Configure

Third-Party Payments
Third-Party Payment Formats (Non-Standard) Use this only when eText or XML Tag is not working Create a new Payment Method Third-Party Configure a Custom Payment Process Profile to use the Payment Method

Create a new Payment Template to use the Payment Method

Third-Party Payments
Make sure the Payment Batch stops for Review after Formatting

Change the Custom Format Program to pickup data for Formatting

Run the Custom Format Program to create the ThirdParty Payment File Create a Custom Program to FTP the Third-Party Payment File Update the Payment Batch Status to Transmitted

11i vs. R12 Payments: Table Level Comparison

Banks and Bank Branches Internal Bank Accounts External Bank Accounts Check Formats Check Stocks

11i vs. R12 Payments: Table Level Comparison

Payment Programs Manual/Quick Payment Batch Payment Interim Payment Tables

11i vs. R12 Payments: Table Level Comparison

S.No Process/Setup Oracle 11i Tables

Change (Yes/No) R12 Tables

Setups
1 Supplier Workbench PO_VENDORS Yes AP_SUPPLIERS, HZ_PARTIES AP_SUPPLIER_SITES_ALL, HZ_RELATIONSHIPS, HZ_RELATIONSHIP_TYPES, HZ_ORG_CONTACTS, HZ_ORG_CONTACT_ROLES, HZ_CONTACT_POINTS, HZ_PARTY_SITES, HZ_ORGANIZATION_PROFILES, HZ_LOCATIONS HZ_PARTIES, HZ_ORGANIZATION_PROFILES, HZ_RELATIONSHIPS, CE_BANK_ACCOUNTS, CE_GL_ACCOUNTS_CCID, CE_BANKS_V,CE_BANK_BRANCH ES_V

Supplier Sites

PO_VENOR_SITES_ALL

Yes

Banks and Branches AP_BANK_BRANCHES

Yes

Internal Bank Accounts

AP_BANK_ACCOUNTS_ALL Yes

11i vs. R12 Payments: Table Level Comparison

S.No Process/Setup Oracle 11i Tables

Change (Yes/No) R12 Tables

Setups
Supplier Bank Accounts Check Stocks Check Formats Payment Methods

7 8 9
10

AP_BANK_ACCOUNTS_ALL, AP_BANK_ACCOUNT_USES _ALL Yes

AP_CHECK_STOCKS_ALL AP_CHECK_FORMATS LOOKUP TABLE Yes Yes Yes

IBY_EXTERNAL_PAYEES_ALL, IBY_EXT_BANK_ACCOUNTS, IBY_PMT_INSTR_USES_ALL, CE_BANK_ACCOUNT_USES_ALL CE_PAYMENT_DOCUMENTS, IBY_DOCUMENTS_B IBY_FORMATS_B, IBY_FORMATS_TL IBY_PAYMENT_METHODS_TL

11i vs. R12 Payments Table Level Comparison

S.No Process/Setup Oracle 11i Change Oracle R12 (What is the (Yes/No) change)

Payments
1 Quick /Manual Check AP_INV_SELECTION_CRITE RIA_ALL, AP_CHECKS_ALL, AP_PAYMENT_SCHEDULES _ALL Yes AP_INV_SELECTION_CRITE RIA_ALL, AP_CHECKS_ALL, AP_PAYMENT_SCHEDULES _ALL, AP_SELECTED_INVOICES_ ALL, AP_SELECTED_CHECKS_A LL Yes IBY_DOCS_PAYABLE_ALL

Payment Batch

IBY_DOCS_PAYABLE_ALL,IBY_PA YMENTS_ALL, IBY_PAY_SERVICE_REQUESTS, IBY_PAY_INSTRUCTIONS_ALL

Lessons Learned
Cancel / Confirm Payment batches before upgrade Update NULL Country Codes for Banks in 11i Verify Banks and Bank Accounts after Upgrade TCA brings manychanges Bank and Bank Branch Number field size Unmask Bank Account Numbers

Lessons Learned
Oracle Standard XML Tag Check Number vs. Payment Instruction ID XML Tag Extensions - Cannot overwrite DFF values, try to use standard fields Payment Process Profile plays important role in Clearing / Check Payment Methods Pay Group Plays no role after Payment Batch is created; not stored in any Payment tables

Lessons Learned
Update Tolerances for Bank Accounts:
UPDATE: ce_bank_account SET: AP_AMOUNT_TOLERANCE = 0, AR_AMOUNT_TOLERANCE = 0, AP_PERCENT_TOLERANCE = 0, AR_PERCENT_TOLERANCE = 0, CE_AMOUNT_TOLERANCE = 0, CE_PERCENT_TOLERANCE = 0, RECON_OI_AMOUNT_TOLERANCE = 0, RECON_OI_PERCENT_TOLERANCE = 0 WHERE: account_classification = INTERNAL

Create Custom Payment Process Profile to simplify user selection

Summary / Key Takeaways

Start early analysis of Payment Processes Know your EDI Custom Code. Analyze and Cleanup Bank Information in 11i Make sure you test check stocks by Printing Dont underestimate EDI Payments Testing; test it end-to-end (from AP to Bank and Bank to AP)

Questions? Comments?

THANK YOU
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