R12 Payment Process
Creation of Bank Account:
In Release 12 Banks are owned by Cash Management.
We can define and maintain all bank account information in a central place and
provides ownership of bank accounts by legal entities with the option to grant
account use to operating unit.
In Release 12 Oracle Financials can provide a mechanism to secure internal in
the new bank account model so that unauthorized users do not have access to
this information.
Bank Account Maintenance security secures the creation and update of bank
accounts, whereas Bank Account Access security secures the use of bank
accounts.
Setup Bank Account Maintenance Security and Account Access Security.
Bank Account Maintenance Security:
Bank Account Maintenance Security, which secures the creation and update of
bank accounts, grants user the access to one or more legal entities. Users can
create and update the bank accounts whose owner legal entity is registered in
the Bank Account Maintenance Security.
Users can create Bank accounts for which the list of legal entities in Bank
Account Owner LOV will be restricted by this security. Users can query and
update only those bank accounts whose owner is registered in this security.
Account Access Security:
Bank Account Access security rule is composed of 2 parts :
The combination of Bank Account Access Setup :
1. Bank Account Access Setup => Bank Account Access setup defines
organizations that can use existing bank account
2. Cash Management Security Profiles => Cash Management Security Profiles
provide a list of organizations where an user has access to.
The user can access the list of bank accounts based on the combination of two
components above.
Login to by using Username as: sysadmin and Password as: sysadmin
Click select User Management Responsibility and Navigate to
RegistrationRoles and Role Inheritance
Select Type as Roles and Responsibilities and category as Security
Administration.
Click on Create Role.
Define Role Code, Display name and Description and select the Application as
Cash Management.
Click on Save and click on Security Wizards.
Click at Run Wizard CE UMX Security wizard.
Click at Add Legal Entities.
Select the Legal Entity.
Bank Account Use security grants user the access to one or more legal entities.
User can view and use only the bank accounts whose owner legal entity is
registered in this security. User doesn‟t need to setup this security if any of the
other three securities below provides access to the wanted bank accounts.
The bank Account Use security is implemented using UMX data security model.
A setup wizard called “Bank Account Security Management” will be provided to
facilitate the user setup procedure. Using Bank Account Security Management
wizard, administrator can grant a role legal entity accesses to define following
three securities.
· Bank Account Maintenance security – control bank account creation and update
· Bank Account Use security – control bank account access
· Bank Account Fund Transfers security – control bank account transfers
Enable Use, Bank Account Grants Maintenance and Bank accounts transfers to
get access.
Click on Apply.
Again click at Security Wizards.
Click at Run Wizard User Management: Security Administration Setup.
Click at Organization Administration tab.
Click at Assign Organization Privileges tab to assign Organization privileges.
Enable View All Organizations.
Click on Select.
Click on Apply.
Click on Apply button.
Query the Role Name and Give Grants to Operating Unit and Responsibility to
Create Bank and its Accounts
Switch on to Cash Management Responsibility to create Bank Account.
Navigate to SetupBanksBanks
Click on Create.
Select Create new bank and country.
Give bank name, which is mandatory and all other fields, which are optional.
Click on Save and Next.
Click on Create to create Bank Addresses.
Give the details of Bank address.
Click on Save and Next to further proceed.
Click on Finish.
We can see the confirmation message as “The Bank has been created”.
Click on Create Branch to create Bank Branch for this Bank.
Click on Continue.
Give the details of Bank Branch.
Click on Save and Next.
Click on save and Next.
Give the Bank Branch address details.
Click on Apply.
Click on Save and Next.
Click on Finish.
Click on Create Account.
Click on Continue.
Select Bank Account owner.
Select legal Entity as Bank account owner.
Enable Payables and receivables to use the same bank account for both
payables and receivables.
Click on Next.
Give Bank Account name and Account Number, which are mandatory and also
give other details, which are optional.
Click on Save and Next.
Give Cash Account details that are mandatory and also other accounts, which
are optional.
Click on Save and Next.
Click at Add Organization Access.
Enable payables and receivables to use the same bank account for both
payables and receivables.
Select Organization and click on continue.
Click on Apply.
Click on Save and Next.
Click on Finish.
Select the Bank account and click on Manage Payment Document.
Click on Create.
Give the details of document name, Paper stock Type, Number of Documents,
format, First Available Document number and Last Available Document Number.
Click on Apply.
We can see the Confirmation Message as “Check was created”.
Switch on to Payables responsibility.
Navigate to SetupPaymentPayment Administrator.
Click on Payment Process Profile.
Click on Create.
Give the details of Code, Name, and Description of Payment Process Profile.
Select Processing type as Electronic.
Select Electronic Processing channel as Oracle Payments.
Select Payment Completion point as when the payment instruction is formatted.
Give the details of Usage rules.
Give the details of Payment Instruction Creation Rules.
Click on Save and Add Details.
Click on Apply.
We can see the confirmation message as “Payment Process Profile was
updated”.
Navigate to PaymentsEntryPayments Manager.
At Templates tab click on Create to create a new template.
Give the details of the new template name and Description.
In Scheduled payment Selection Criteria based on the requirement we can select
the criteria as Supplier type, payee and payment method.
At Payment Attributes tab give the details of Disbursement Bank Account,
Payment document, Payment Process Profile and Payment Exchange Rate
Type.
At Process Automation tab at Create Payment instruction select “Initiate when
payment process request is complete”.
We can Enable Stop Process for review after payment selection when we want to
review the payment process. After submitting the payment Process Request it
will select all the invoices based on the payment criteria and then it will ask for
review. If we want to make any modifications to the payment batch we can make
changes at this stage. After Reviewing we can again submit the payment
request.
Enable Calculate payment withholding and Interest during scheduled payment
selection if we want to calculate any withholding and Interest amounts on
invoices during scheduled payment selection.
Enable stop process for review after creation of proposed payments if we want to
review the proposed payments. Once we review the proposed payment again we
can submit the payment process request.
At Validation failure Results tab select Document as “Reject all documents for
payee when any Document fails” which means failure in any check document will
result in rejection of all the documents.
At payment select „Reject only payments with errors‟ so that only payments,
which are in error, can be rejected.
Click on Apply.
We can see the confirmation message as “payment process Request Template
has been created”.
Enter an Invoice batch, validate and Create Accounting.
At Payment Process Requests tab click at Submit Single Request.
Give the name of the Payment Process Request and Query the Template which
we have defined earlier.
At Scheduled Payment Selection Criteria you can give the Invoice Batch name,
Payment method, Payee or Supplier Type depending on the requirement, which
means we are giving the selection criteria for the payment batch.
We can as well give the selection criteria for pay groups, Legal Entities, Payment
currencies and operating Units.
At Payment attributes tab give the payment date, Disbursement Bank account,
Payment Process Profile and Payment Exchange Rate Type.
Details of User rates, Processing, Validation failure Results and additional
Information will be defaulted from Payment Process Request Template which we
had assigned in this Payment Process Request.
Click at Submit to submit the Payment Process Request.
We can see the confirmation message with Request name with which we can
Query the status of the request.
Query the Payment Process Request.
First we can see the status as „New‟.
Click on Refresh Status.
When we click on Refresh Status we can see that the status is changed to
Assembling Payments.
Click on Refresh Status.
Here we can see the status as Formatting.
Click on Refresh Status.
We can see that the status is changed to Confirmed Payment.
We can Query the Invoice and see the status of the invoice as paid.
Go to payment overview window to see the payment details.
