Payment Processing with Oracle Payments: What’s New in Oracle E-Business Suite Release 12

1. Payment Processing with Oracle Payments: What’s New in Oracle E-Business Suite Release 12 Victoria Anderson Manager, Payment Product Mangement

2. Purpose:This document provides an overview of features and enhancements included in Release 12.  It is intended solely to help you assess the business benefits of upgrading to Release 12. • 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, which has been executed and 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 prior written consent of Oracle.  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 for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described.  It 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 described in this document remains at the sole discretion of Oracle.

3. Agenda <Insert Picture Here> • What is Oracle Payments? • Disbursements • Key Disbursement Enhancements • The Integrated Disbursement Process • Oracle Payments Demo • Funds Capture • Key Funds Capture Enhancements • The Integrated Funds Capture Process • Q&A

4. Question for Audience What release are you on? Release 12 • Thinking about it • Implementing it • Already there Of those not live on R12 • Release 11.5.9 or earlier • Release 11.5.10 • Something else

5. <Insert Picture Here> What is Oracle Payments?

6. DirectDebits CheckPrinting CheckPrinting Bills ReceivableRemittances EFTPayments DirectDebits DirectDebits Bills ReceivableRemittances EFTPayments Bills ReceivableRemittances Payment Processing in Release 11i Oracle Receivables OraclePayables OracleiPayment Oracle Global Financials Credit Card Payments

7. Payment Processing in Release 12 Order-to-Cash Products Receivables, iStore, Order Management, Collections, Contracts… Procure-to-Pay Products Payables, Federal Payables, Global Financials, Loans… One payment processing solution leveraged by multiple products Oracle Payments Credit Card Payments DirectDebits Bills ReceivableRemittances CheckPrinting EFTPayments

8. Release 12 Oracle Payments: Oracle Payments is a central engine to disburse and capture payments. For electronic payments, it connects Oracle EBS products like Receivables and Payables to financial institutions like banks and credit card processors.

9. <Insert Picture Here> Disbursements

10. Key Disbursement Enhancements Payment Formats • Out-of-the-box Content • Rich library of seeded electronic formats • Intuitive Toolset for Making Changes • Integration with XML Publisher makes it easy for business user to create or modify formats in any word editor • Special capabilities of XML Publisher eText allows user-intuitive manipulation of electronic formats 110000002222061004LEVERANTÖRSBETALNINGAR 12IBY SE INVOICE INFORMATION TEST FOR UPGRADE 061005 000000000 00000000000 7 0000 13FAKTURANR VERNR EFT Format 26000002220 ADVANCED NETWORK DEVICES 27000002220 STORGATAN 5 39128KALMAR 14000002220 1000 EFT Format

11. Key Disbursement Enhancements Payment Formats Key formats supported out of the box include: • SWIFT MT 103 • ANSI X12 820 • EDIFACT PAYMUL • NACHA • NACHA CTX • NACHA CCD • NACHA CCDP • NACHA PPD

12. Key Disbursement Enhancements Payment Formats (eText)

13. Key Disbursement Enhancements Configurable Validation Rules and Processes • Rich library of country- and format-specific validations usable out of the box • Highly configurable framework • WHAT: Define new validations rules • WHEN: Set timing of validations • HOW: Set how errors should be handled

14. Key Disbursement Enhancements Configurable Validation Rules and Processes • Validate upstream or downstream

15. Configurable Validations Object Validation Rules Timing Invoice Pre-Defined Library Invoice Entry Payment User-Defined Validations Payment Build Batch Key Disbursement Enhancements Configurable Validation Rules and Processes • Validate upstream or downstream

16. Protocols supported out of the box • FTP • Secure FTP • HTTP • HTTPs • AS/2 Key Disbursement Enhancements Electronic Transmission • Set up configurations based on standard protocols • Manually or automatically initiate the transmission of the payment file

17. Key Disbursement Enhancements Enhanced Process • Separate out user needs – During selection of invoices to be paid, Payables user wants to focus on financial benefit such as cash flow and discounts, not payment method • Invoice selection is now agnostic of payment method • Oracle Payments groups invoices into payments within the group selected invoices, and then groups payments into payment files based on hard-coded and user rules (without being confined to the selection group).

18. Key Disbursement Enhancements Enhanced Process

19. Key Disbursement Enhancements Process Visibility Though New Dashboard Supports different business models : • Centralized AP and Payments • Decentralized AP and centralized Payments • Decentralized AP and decentralized Payments Guides the user with smart Take Action icon

20. Key Disbursement Enhancements Process Visibility Though New Dashboard

21. The Integrated Disbursement Solution Flexible and Powerful • End-to-end process from entry of the document payable to printing or electronic transmission can be automated • Configurable validations and exception handling can be tailored to any business process or country requirement PaymentRequest Validations Aggregation Formatting Transmission • Detailed validations canbe configured tobe performed upstream or downstream • Sophisticated defaulting of payment methods on to documents payable • XML based formattingframework • Rich out-of-the-box content andextensible framework • Rule-basedaggregationof paymentinstruction

22. Payment Build Oracle Payables User Select Invoices Release 11i Disbursement Process Oracle Payables Payment file contains exactly the payments that were selected, so selection has to be done based on payment method, currency, and operating unit Payment File

23. SelectionBatch 1 SelectionBatch 1 PayablesUser 1 PayablesUser 1 PaymentInstruction PaymentInstruction PaymentInstructionCreation PaymentBuild PaymentBuild Pool of Built Payments Select Invoices Select Invoices Release 12 Disbursement Process Oracle Payments End product is minimum number of files needed for unique processing needs TransmitPayments PrintPayments

24. Release 12 Disbursement Process Impacted Applications Significant impact • Oracle Payables • Global Financials Minor impact • Oracle Cash Management (new Bank Transfer feature) • Oracle Receivables (new Customer Refund feature) • Oracle Loans (new payment method setup) Any product that pushes disbursements through Oracle Payables is taking advantage of the richness of Oracle Payments functionality Oracle Payroll is the exception to the central disbursement engine

25. <Insert Picture Here> Oracle Payments Demo Straight-Through Processing

26. System Settings Payment Method Currency Check USD Check US Standard Cheque EUR Laser Check EUR Electronic USD SWIFT MT103 FTP EUR

27. Oracle Payments Demo

28. Oracle Payments Demo • First Level Bullet

29. Oracle Payments Demo • First Level Bullet

30. Oracle Payments Demo • First Level Bullet

31. Oracle Payments Demo • First Level Bullet

32. Oracle Payments Demo • First Level Bullet

33. Oracle Payments Demo • First Level Bullet

34. Oracle Payments Demo • First Level Bullet

35. Oracle Payments Demo • First Level Bullet

36. Oracle Payments Demo • First Level Bullet

37. Oracle Payments Demo • First Level Bullet

38. Oracle Payments Demo • First Level Bullet

39. Oracle Payments Demo

40. <Insert Picture Here> Funds Capture

41. Key Funds Capture Enhancements Configurability • Funds Capture Process Profile is the focal point of configurability Process Attributes: Authorization Format Settlement Format Acknowledgement Format Settlement Grouping Settlement Batch Limits Transmission Configuration External Reporting Transaction Attributes: Operating Unit Payment Method Routing Rule Conditions Funds Capture Process Profile (via Payee’s Routing Rules)

42. Key Funds Capture Enhancements Process Visibility Though New Dashboard Significant impact • Oracle Payables

43. The Integrated Funds Capture Solution Flexible and Streamlined • End-to-end process from authorization through settlement and acknowledgement can be automated • Handles credit and debit card captures and electronic bank transfers from multiple calling products in EBS Request Authorization Settlement Acknowledgement • Routing rules drive how the transaction will be processed and which third party payment system will be used • Payments automatically queries payment system for acknowledgement of transaction success • Upstream products call Payments to authorize transaction with third party payment system • Payments calls payment system in individual or batch mode to request settlement

44. R12 Funds Capture Process Supporting Straight Through Processing • Configurability to support diverse business models and regional needs without customization; enables global processes • Automation to streamline process and save costs through electronic straight through processing • Integration with XML Publisher to shift implementation and maintenance of payment formats from technical to business user • Single repository of external-party payment instruments (bank account and credit/debit card numbers) with masking and encryption aids deploying company in security and compliance issues

45. R12 Funds Capture Process Payment Systems • There are adaptors available for the following payment systems but adaptors can be created for and by any company. Concord EFSnet • Credit Card • Purchase Card Level 3 • PINless Debit Card • US ACH, including Online Account Validation Paymentech • Credit Card • Purchase Card Level 3 • PINless Debit Card • US ACH, including Online Account Validation CyberSource • Credit Card • Purchase Card Level 2 First Data (North Platform) • Credit Card • Purchase Card Level 2 Wells Fargo • Credit Card • Purchase Card Level 2 • US ACH VeriSign • Credit Card • Purchase Card Level 2

46. Q & A

47. For More Information http://search.oracle.com Financials or http://www.oracle.com/

48. The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It 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 described for Oracle’s products remains at the sole discretion of Oracle.