R12 – Payments – IBY

Back to R12 – Upgrade Overview

This is a completely new module to provide a central payment capture and disbursement facility.

Overview

  • New Concepts: Payment Processing Profile, Payment Request and Payment Instruction
  • Payment disbursement functionality for Payables
  • Credit card functionality for Advanced Collections and Receivables
  • Bank account transfer functionality for Cash Management
  • Secure storage and encryption of payment data including credit cards
  • Payment document formatting uses XML Publisher
  • Electronic transfer functionality built-in
  • Obsoletes iPayments

New Concepts

A number of new concepts has been introduced but the main ones are:

  • Payment Process Profile – governs how a payments for documents payable having a specific payment method is processed
  • Payment Request – one or more documents payable in a subledger requested to be paid
  • Payment Instruction – payments for one or more documents payable having same Payment Process Profile ready to be printed or transferred to a bank

In 11i – Payables would make all payments however in R12 this task is now split between the subledger and Payments:

11i R12
Payables: Select Document Payable Payables: Select Document Payable
  Payables: Create Payment Request and Validate
Payables: Build/Modify Payments Payments: Create/Modify Payments
  Payments: Create Payment Instructions
Payables: Format Payments Payments: Extract or Format Payment Document
Payables: Print Payments: Transmit or Print
Payables: Confirm Payments: Confirm Printed Cheques

The subledger – in this case Payables – select documents payable and create a Payment Request for Payments. After this point Payments takes over and perform the remaining tasks.

New steps are the Payment Request and the Payment Instruction creation.

Payment Process Profile is assigned during Create Payment Request.

Payment Request acts as an interface between the subledger and Payments. So the Payment Requests are a ledger of Payments needed.

Payment Instruction acts as a internal representation of a physical payment or cheque print file. So the Payment Instruction is the ledger of Payments made.

Confirm is changed so now only pre-numbered cheques needs to be confirmed. For other types of payments they will automatically be confirmed in accordance to the Payment Profile which is default at Format Payment time.

Payment Disbursements

All payment disbursements are now performed by the Payments module. This means that the Payables module like any other subledger sends a payment request to the Payments module. Payments will then create payment instructions based on the payment request.

Payment Workbench:

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As payment instructions can now be combined across organisations the concept of a payment batch has changed – now there is payment requests and payment instructions:

  • Payment Request: One or more documents selected to be paid
  • Payment Instruction: One or more payment requests having same payment profile

Payment Request form:

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In 11i – one payment batch was one collection of invoices to be paid by one payment method in one file however in R12 the 1:1 relationship has gone and one payment request can be split into multiple payment instructions and multiple payment requests can be combined into one payment instruction if using same payment profile. One payment instruction would then result in one payment file or transfer.

11i logical data model:

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R12 logical data model:

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The R12 payment profile can be defaulted on the payment request however Oracle Payments will have the final say of which payment profile is being used. The payment process does not always have to be a two step process however in that case the payment profile must be specified at time of payment request.

The ability of combining multiple payment requests into a single payment instruction will significantly reduce number of bank transfers and therefore reduce payment costs especially in larger organisations.

Credit Cards

Mostly used for small business and retail – so parked for now.

Bank Account Transfers

WIP

Security

WIP

Payment Document Formatting

WIP

Electronic Transfer

WIP