Oracle R12 the batch payment process has changed considerably. A new module named Payments is created in R12 to make payment in batches (short name IBY).

In this article I have demonstrated how an Electronic payment is made in Oracle R12.

Step 0: Create invoice

Responsibility: Payables responsibility

Navigation: Invoices > Entry > Invoices

We shall create an invoice that we plan to pay using the batch payment process. Enter invoice header

Invoice Num is TESTINV12,

Trading Partner/Supplier is CEPAC DONCASTER

Invoice Amount is GBP 140. The amount includes tax amount as well. Scroll right on the header

Note that the fields,

Match Action is set to NULL

Terms is NET 30

Pay Group is NON INVENTORY

Payment Method is Electronic (This is set by default based on supplier setup)

Enter invoice line

Enter line distribution by clicking on Distributions button

Save and close this canvas. Click on Calculate Tax button to generate the tax lines on the Invoice form.

Now click on Actions and check Validate.

Select OK to validate the invoice. Note the Status on the invoice form after validation.

It shows Needs Revalidation. There can a hold on the invoice. Click on Holds tab.

We see that there is a hold on it. Let us check the reason for the hold. Click on Hold Reason field and click on Ctrl + E.

It mentions that the invoice is on hold because the invoice is not matched to any PO. We are not going to match this invoice to a PO and that is why on the invoice header we had set Match Action to NULL.

Click on Release button and the release window will appear

Enter the Release Name and Release Reason.

Press OK to release the hold

Now the invoice has been released. Click on General tab.

Notice that the invoice status shows that it is Validated. Let us check the invoice due date. Click on Scheduled Payments tab.

Oracle has calculated the Due Date of the invoice as 01-Apr-2014. The due date is calculated as per the payment terms, i.e. NET 30(selected in invoice header). The batch payment process will pick up the invoice for payment based on due date.

The invoice is now ready to be picked up by the Payment Process Requests.

Step 1: Create Payment Process

Responsibility: Payables responsibility

Navigation: Payments > Entry > Payments Manager

Click on Payment Process Requests

Click on Submit Single Request button to create a single request. If we need to create a recurring request with similar parameters we need to click on Schedule Repeating Request button. This is especially useful to have a recurring batch running at fixed intervals, E.g. every day, week, etc.

Enter the details

Payment Process Request Name: CEPAC Electronic Payment 12

Pay From Date: 31-Mar-14

Pay Through Date: 02-Apr-14 (setting dates to include invoice due date as we have seen in Step 0)

Pay Groups: NON INVENTORY (same as invoice pay group)

Payment Currencies: GBP (same as invoice currency)

Click on Payment Attributes tab

Enter Disbursement Bank Account and Payment Exchange Rate Type

Now click on User Rates tab

As both the ledger currency and invoice currency are GBP we do not need to specify a conversion rate. Click on Processing tab

Check the box for Stop Process for Review After Scheduled Payment Selection. This will ensure that the payment process stops after the invoices are selected and we can then review those invoices.

Now click on Validation Failure Results tab

We do not need to make any change on this page. Click on Additional Information tab

This page displays the DFF attributes enabled for payments. There are no DFF attributes enabled.

Note: Instead of manually entering all the parameters we could have entered a template to set all the preset values on the template.

Let us set a template to this payment named, UK Bankline Payments in GBP.

If we check the parameters now,

Note that the values we had set earlier have been overridden with the values set in the template. If you would like to see the template setup go to Templates tab on the top menu.

Click on Templates

Enter the Template Name, UK Bankline Payments in GBP and click on Go button.

Click on Update icon () on the right to open the template

Now you can see the values set to the template.

Let us restore the payment process request values and submit the request.

A confirmation message is shown. Now click on Home tab on the top menu.

If we search for requests on the SRS form

You will see Scheduled Payment Selection Report request running.

Step 2: Review selected invoices

After the Scheduled Payment Selection Report request completes we go back to Payment Process Requests page and search for the payment request we created i.e., CEPAC Electronic Payment 12.

The Payment Process Request status is now Invoices Pending Review and 2 invoices have been selected for payment.

Click on the link, CEPAC Electronic Payment 12. (shown below)

The screen opens up and displays the payment details and the invoices

We have the option of adjusting the payment amount, discount, updating exchange rates, etc. The invoice details are,

We will update both payment amounts to GBP 100.

Now click on Submit

We get another confirmation request. The payment status now changes to Calculating Special Amounts.

Check for requests on the SRS form

5 concurrent requests are executed.

Step 3: Confirm Payment

After the previous requests have completed we go back to Payment Process Requests page and search for the payment request we created i.e., CEPAC Electronic Payment 12.

Now the status of the payment is Information Required – Pending Action.

Click on Start Action icon

Notice there are no Payment Process Profile set for the invoices (see below).

We shall enter the Payment Process Profile, UK Bankline Payments in GBP, for the invoices

Now select Action to Run Payment Process  and click on Go button

The screen goes back to the Payment Process and the status changes to Assembling Payments.

If you check the SRS form you will see 2 requests executed

Check the output of Format Payment request

The payment is now formatted and the output is now ready to be sent to the bank for making the electronic payment

Step 4: Review payment

After the previous requests have completed we go back to Payment Process Requests page and search for the payment request we created i.e., CEPAC Electronic Payment 12.

Note that the status of payment is Confirmed Payment.

Click on the payment link () to view the details

Clicking on the link of the payment () we will get

The details of the payment, including bank, beneficiary details are shown. This is the payment that will be made to the supplier bank.

Step 5: Verify payment on invoice

Open the invoice

Note that the amount paid, GBP 100, is displayed on the invoice.

Click on View Payments tab

Payment details can now be viewed on the Invoice form.

Step 6: Cancelling payment (Optional)

If the need arises this payment can be cancelled as well

On the Payment Manager page click on Payments tab on the main menu

Now enter the Payee as CEPAC DONCASTER (this is the supplier to whom the payment was made) and Payment Date as 05-Mar-14 (this is the date the payment was made even though the Due Date was 01-Apr-14) and click on Go button.

Click on Void icon () so that the payment is cancelled

On the next screen provide a reason

Click on Apply

On the Warning screen click on Yes

The control goes back to the Payments screen and the payment status becomes Void.

Now let us check the invoice on the Invoice form

Now the Amount Paid is shown as 0. Click on View Payments tab

We see that the payment has been voided by offsetting the amount. Now the invoice is available for full payment. The same cycle can be followed to make the payment or we can make a quick payment as shown in the previous article.

Important: We had set the Payment Process Profile for confirming the payment. The Payment Process Profile name was UK Bankline Payments in GBP.

To check the setup you need to go to

Responsibility: Payments Setup Administrator

Navigation: Oracle Payments Setup

Locate Payment Process Profile

Click on () to open

Enter Name as UK Bankline Payments in GBP

Click on Go button

Click on Update icon

The payment process profile is defined here. You can modify as you feel fit.