R12 Payment Process Request – Functional and Technical Information
Payment Process Requests
Under Funds disbursement page, users can submit Payment Process Requests (PPR) to generate payments. There is an option to submit a single Payment Process Request or schedule Payment Process Requests.
There are four steps in the processing of a PPR.
a) Document selection
b) Build Payments
c) Format Payments
d) Confirm Payments
Document selection and Confirm Payments are handled by Payables (AP) code while Build Payments and Format payments are handled by Payments (IBY) code.
Submitting a Single Payment Process Request
Mandatory Fields – Payment process request name, pay through date.
Under Payment Attributes tab – Payment Date, Payment Exchange rate type.
Payment Process Profile and Disbursement bank account are optional fields.
Under Processing tab, options are available to stop the process after document selection / payment and also how to create Payment Instruction.
Under Validation Failure Results tab, choose option that best suits the business needs regarding how to handle validation failure on document(s) or payment(s).
Click on Submit to submit the Payment process request.
Document Selection – Payables
When a Payment Process request is submitted, a record is created in AP_INV_SELECTION_CRITERIA_ALL with a checkrun_name which is the same as the payment process request name.
Payment Profile and Internal Bank Account from which payments have to be made do not have to be specified during invoice selection. User who submits the PPR does not need know this information. These values can be provided by at a later stage by a Payments Manager or Administrator.
Invoices are then selected based on due date, discount date, paygroup and other criteria provided by the user while submitting the PPR. The selection process is handled by the calling product
The table AP_SELECTED_INVOICES_ALL is populated with selected invoices.
AP_UNSELECTED_INVOICES_ALL is populated with unselected invoices.
After selecting the documents, the invoices are locked to prevent other check runs from selecting the same invoices.AP_PAYMENT_SCHEDULES_ALL.Checkrun_id is populated on the selected documents.
If the Payment Process Request has been setup to ‘Stop Process for Review After Scheduled Payment Selection’, the process stops for user review. The status of the PPR is set to Invoices Pending Review.
If the ‘Stop Process for Review After Scheduled Payment Selection’ was not enabled, at the end of invoice selection, build program is submitted automatically.
If no invoices met the selection criteria and no payment schedules selected for payment, the PPR is cancelled automatically and the status of the PPR is set to “Cancelled – No Invoices Selected”
If user review required, after the user reviews the selected payment schedules and clicks on Submit, AP calls the IBYBUILD program.
Valid Status and Actions.
At the end of this step, the valid statuses are
a) Invoices Pending Review or
b) Cancelled – No Invoices Selected or
c) Other statuses from missing information such as Missing Exchange rates
If PPR status is Cancelled-No Invoices Selected, there are no valid actions available.
For others, the actions available are
a) Terminate the PPR or
b) Modify / proceed to submit the PPR and start the build process.
Build Payments – Payments
Build Payments creates record in IBY_PAY_SERVICE_REQUESTS with call_app_pay_service_req_code = checkrun_name.
Primary Key: PAYMENT_SEVICE_REQUEST_ID
CALL_AP_PAY_SERVICE_REQ_CODE -> PPR name
The displayed status of the PPR is generated by ibyvutlb.pls
There is a get_psr_status function that derives the display sttaus of the PPR on the dashboard.
Some of the values for PAYMENT_SERVICE_REQUEST_STATUS in the table are
The build program populates the IBY_DOCS_PAYABLE_ALL table with the payments. Link to the payment service request table is through PAYMENT_SERVICE_REQUEST_ID.
Calling_app_doc_ref_number -> invoice_number
Calling_app_doc_unique_ref2 -> invoice_id
Calling_app_doc_unique_ref3 -> payment number
a) Internal Bank Account/Payment Process Profile Assignment:
If the payment process request has the internal bank account and payment profile assigned to it, the same is assigned to all the documents in the PPR.
If a default internal bank account and PPP were not provided when submitting the PPR, Oracle Payments attempts to default the values. If it cannot find a default value for all the documents, the PPR is set to INFORMATION REQUIRED status. The display status of the PPR is “Information Required – Pending Action” .User should complete the missing information and Run Payment Process to continue.
b) Document Validation
During this step, Oracle Payments validates all the documents using Payment Method based validations and then payment format based validations..
1 – If all the documents pass validation, all the documents are set to a status of VALIDATED and the request status is set to ‘Documents Validated’.
2 – If there are any validation failures, Oracle Payments uses the system option used while submitting the PPR to determine the next action.
The DOCUMENT_REJECTION_LEVEL_CODE of the PPR can have the following values which determine how the document processing will continue when there is a validation failure.
REQUEST – Reject all documents in this PPR
DOCUMENT – Reject only the document in error
PAYEE – Reject all the documents related to the supplier
NONE – Stop the request for review
The status of the payment process request is updated to ‘Failed Document Validation’. Oracle Payments calls the calling application and AP releases the rejected documents so they can be paid through another Payment process request.
Oracle Payments rejects all documents that failed validation. Oracle Payments then calls the calling application and AP releases the rejected documents so they can be paid through another Payment process request. The rest of the documents are set to VALIDATED status and the ppr is set to ‘Documents Validated’ status.
Oracle Payments rejects all documents for the supplier that had one or more documents that failed validation. Oracle Payments calls the calling application and AP releases the rejected documents so they can be paid through another Payment process request. The rest of the documents are set to VALIDATED status and the ppr is set to ‘Documents Validated’ status.
c) Create Payments
The validated documents are then grouped into proposed payments based on the grouping rules, both user defined and hard coded.
If exclusive_payment_flag = Y on a document, its paid on a separate payment. It then numbers the payments (internal identifier not the check numbering) and validates the created payments.
Records are inserted into IBY_PAYMENTS_ALL that holds the payment information for the selected documents.
The build program then updates the IBY_DOCS_PAYABLE_ALL table with the payment_id and formatting_payment_id values that corresponding to the payment that pays the document.
IBY_PAYMENTS_ALL links through payment_service_request_id.
The PAYMENT_REJECTION_LEVEL_CODE can have the following values which determine how the payment processing will continue when there is a validation failure
REQUEST – Reject all payments in the request
PAYMENT – Reject only those payments in error
NONE – Stop the request for review
Request – Entire PPR is rejected. Oracle Payments raises a business event that calls AP to release the documents.
The status of the payment process request and proposed payments is updated to ‘REJECTED’.
Payment – Payments that failed validation are rejected and AP releases the documents that belong to the payment that failed validation. The other payments are accepted. The accepted payments get a status of ‘CREATED’.
None – Payments that failed Validation are set to ‘Failed Validation’ and allows for user intervention. Status of the PPR is set to ‘PENDING REVIEW’
If in the PPR setup, ‘Stop Process for Review After Creation of Proposed Payments’ is enabled, the PPR status is set to ‘Pending Proposed Payment Review’. This status prevents further processing until user takes action. If this option to stop for review is not enabled, the status of the PPR is set to ‘Payments Created’. In this status, payment instruction can be created for the PPR.
Format Payments – Payments
Code: IBY_PAYINTSR_PUB, IBY_CHECKNUMBER_PUB
When a PPR is submitted, there are two options
The CREATE_PMT_INSTRUCTIONS_FLAG can be a Y or N.
Y – Payment Instruction will be automatically created after payments are created.
N – Application waits for standard request submission for Payment Instruction.
IBY_PAYMENT_INSTRUCTIONS_ALL stores the payment instruction information.
If the PPR is setup to automatically submit instruction, the payment_service_request_id will be populated in iby_payment_instructions_all because the instruction will be specific to the PPR In this case, the instruction can be linked to the PPR using PAYMENT_SERVICE_REQUEST_ID
If the PPR processing is setup for the user to submit the instruction as a standard request, then when the instruction is submitted, then the instruction is linked to the PPR through the payments selected by the instruction.
The link in this case will be through iby_payments_all.payment_instruction_id
Key Columns in IBY_PAYMENT_INSTRUCTIONS_ALL
The following processing occurs during the format step.
a) Number the payments – Check Numbering
b) Create XML Extract message
c) Pass the extract to XML publisher
d) Oracle XML Publisher (BI publisher) applies the format template
e) BI publisher formats and stores the output
f) Oracle Payments then updates the status of the Payment Instruction and the Payments. If successful, the status of Payments and Instruction is ‘Formatted’.
a) Users can load stationery into the printer and print checks at this stage.
b) Determine if the checks printed ok. If not reprint
Confirm Payments – Payables
Record Print Status of the checks to confirm the payments. Oracle Payments calls ap_pmt_callout_pkg.payment_completed to confirm the payments.
This does the following:
b) Creates data in AP_CHECKS_ALL with appropriate data from IBY tables.
Checkrun_name = ppr name and checkrun_id = checkrun_id from IBY table.
c) Data inserted into AP_INVOICE_PAYMENTS_ALL for the corresponding checks.
d) AP_PAYMENT_SCHEDULES_ALL for the invoices are updated to indicate the payment details and status.
e) The documents paid in this PPR are released by setting the checkrun_id on the payment schedules to null.
f) AP_INVOICES_ALL is udpated to show payment status
g) Data is deleted from the AP_SELECTED_INVOICES_ALL
h) Data is deleted from AP_UNSELECTED_INVOICES_ALL
Navigate to =>
Oracle Payable —–> Setup—–> Payment —–> Payment Administrator
a) Assigns sequence/values – Document sequencing.
Put the values for defined fields:
1. Code: XX_EFT_FORMAT
2. Name: XX EFT Payment Format
3. Data Extract: Oracle Payment Fund Disbursement payment instruction Extract version 1.0
4. XML Publisher Template: US NACHA Generic Format
5. Type: Disbursement Payment Instruction
Then click Apply
Then go to Payment Methods—Payment Methods.
Click on GO TO TASK
Name: XX Payment method
Click on next
A Assign payment method to all payees Click on next
Select validation name: US NACHA Validation
Click on next
It is only a review page.Then Click on finish
Now Payment method: XX Payment method is created.
Click on apply
Select Code—-Payment Process Profiles
Click on GO TO TASK
In Payment Process Profile
1. Code: XX_EFT_PMT_PROF
2. Name: XX Payment Format Profile
3. Payment instruction format: XX EFT Payment Format
4. Processing Type: Electronic
5. Electronic Processing Channel: Oracle Payments
Then Click save and add detail
Usage Rules Tab
Payment Methods: Values: ALL
Internal Bank Account: Value: ALL
First Party Organization: Values: ALL
Currencies: Values: ALL
Payment Instruction Format Tab:
Payment Instruction Format—XX EFT payment format (created earlier)
Once EFT payment method is set then
Go to Supplier Bank Detail
Bank name: XX
Branch name: XX Bandra
A/C No.: 25643211
Then create an invoice for supplier with EFT payment Method
Payment method: XX Payment Method
Now go to Payment
Make a payment with
Payment process profile— Payment profile for EFT Payment
No need to select payment document.
Remit -To-Account will populate automatically
Then click on Enter/Adjust Invoice
Now you will get only those invoices which are created for EFT payments
Then select Invoice for payment
Then go to
Click on find
Request: Format payment Instructions