md50 r51 81 spanish eft
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DELIVER ORACLE
Reports Functional Specification Spanish EFT
Oracle R12 Implementation
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DOCUMENT CONTROLDocument Origin
AUTHOR OPERATION UNIT
Sagar NA TS Oracle SL
Change History
VERSION DATE CHANGES
1.0 November 11, 2011 Initial Version
Review and Approval
COMPANY NAME DATE SIGNATURE
Distribution
COMPANY NAME LOCATION ACTION INFO
© Copyright 2008 by Capgemini
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................... 4
Purpose.......................................................................................................................................... 4Scope and Application......................................................................................................................4Related Documents..........................................................................................................................4
FUNCTIONAL DESCRIPTION................................................................................................................5
Process Description..........................................................................................................................5Business Rules................................................................................................................................6Assumptions.................................................................................................................................... 7Constraints...................................................................................................................................... 7Setup Conditions..............................................................................................................................7Data Migration Method....................................................................................................................16Migration Dependencies..................................................................................................................16Data Extraction..............................................................................................................................16Selection Criteria............................................................................................................................16Error Handling...............................................................................................................................16User Procedure..............................................................................................................................17Submit Single Payment Process Request:.......................................................................................................18Submit the request.........................................................................................................................20Data Validation..............................................................................................................................24Data Field and Mapping..................................................................................................................24Functional Verification Report..........................................................................................................24Acceptance Criteria........................................................................................................................25Test Scenarios...............................................................................................................................25
OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE........................................................................26
Open Issues..................................................................................................................................26Closed Issues................................................................................................................................26
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INTRODUCTION
Purpose
R12 Implementation Project has a requirement for Electronic Fund Transfers for payments to Suppliers. EFT involves sending payment instructions to the specified bank that in turn will transfer the amounts to Supplier’s Bank based on the payment file. The payment file required is different for each Bank and is both Bank and Country specific
The purpose of this document is to process Electronic Fund Transfers (EFT) for making supplier payments in MAD-BANKINTER Bank in Spain this document describes the functional design for generating Electronic Funds Transfer in CORRIENTE/BANKINTER Account in Spain.
Scope and Application
Payments to many of the Suppliers in Spain are made through Electronic Fund Transfers. This is a form of payment where the amounts due to the suppliers are directly credited to their Bank Accounts. A payment file containing all details like Supplier name, Invoice No, Date of Invoice, Amount, currency, Supplier Bank A/c Name, Supplier Bank A/c number etc. are sent to the Bank in a format specified by the Bank. The data file transfer is also through an electronic transfer. Based on the payment file received, the Bank transfers payments to the respective Bank Accounts. A confirmation is then sent by the Bank on the transfers made.
Separate Remittance Advice is sent by Mckinsey to its Suppliers based on the payment instructions sent to the Bank.
Related Documents
The information relating to Bank Formats ,mapping, EFT Process and error handling is based on existing process in McKinsey 11.0.3 Production environment
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FUNCTIONAL DESCRIPTION
Process Description
Oracle Payment provides Oracle XML Publisher tool to format payment instructions according to formatting requirements of any bank. Formatting results in the placement of data in a data file by using a template that contains prescribed formatting attributes, such as location, font, and font size. Each Bank/ country has specific electronic format requirements that payers must adhere to before sending an electronic payment instruction.
The finance team will use standard Oracle Payment programs to process and pay supplier invoices. The payment information is then extracted and a flat file is generated using the XML Template Format and sent to the bank. The Bank then based on the file received, credits the supplier’s bank account.
The standard Oracle Payments Extract and Format Operation will extract and generate an output file in a specified format providing all the data required by the Bank to make payments.
Supplier Bank Accounts are created and assigned to the Suppliers with a default payment method as Electronic either at Supplier or at the Supplier site level. The standard Oracle payment process requests when submitted will check for the payment process profile setups and accordingly generates payment file in the specified format. This file is then placed at a specified location in the server through FTP process for onward transmission to the bank.
The diagram below shows the steps performed by the Extract and Format Operation Flow to format a payment instruction.
Extract and Format Operation Flow
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2. Pass Extract XML Message to XML Publisher
3. Apply Format Template
4. Format payments and store output
5. Update Payment Instruction and Payment Status
1. Create Extract XML Message
Start
End
Payment Instruction -Formatted
Payment Status -Formatted
The table below describes the steps performed in the Extract and Format Operation Flow. It may be noted that the steps indicated below are part of the Payment process and requires no user intervention
Action Description
Create Extract XML Message Oracle Payments extracts payment instruction data from the database into an XML message.
Pass Extract XML Message to Oracle XML Publisher
The extract XML message is sent to Oracle XML Publisher for formatting.
Apply Format Template Oracle XML Publisher uses templates to format the Extract XML message into a form specified for processing electronic payments. Oracle Payments tells Oracle XML Publisher which format template to apply to the message based on the setups.
Format Payments and Store Output
Oracle XML Publisher formats the payments in the payments instruction and stores the output in the Server
Update Payment Instruction and Payment Status
The status of the payment instruction is updated to Formatted and the status of all payments built into the payment instruction is also updated to Formatted
Payment Register Once a payment instruction has been formatted, payments within that payment instruction can be reviewed in report format.
Business Rules
The following business rules must be met by the Spanish EFT:
The sum of payments on the EFT file must equal to the total payment amount of the Payment Batch
An EFT format file must be created in the specified format as is illustrated in the following sections.
The payment program must be run in the standard Submit Single Payment Process Request or through Schedule Payment Request of Oracle Payments.
Payment processing Templates may be created, so that users will not have to enter the same parameters for each payment batch.
Payment Process Request name (Mandatory): A suitable naming convention as decided by Business needs to be followed
Assumptions
1. The Bank Format for MAD-BANKINTER is same as existing in 11.0.3
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2. Bank, Bank Branches and Bank Accounts are setup properly
3. Suppliers who have opted for EFT payments must have payment method set up as “Electronic Payments”
4. All suppliers who have a payment method of ‘Electronic Payments’ must have a Bank Account associated
5. Employees who are to be paid electronically for expense reimbursement must have their bank details setup in Oracle
Constraints
Not Applicable
Setup Conditions
Note: - Please refer BR100 Document for detail setups information.
The following setup must be completed before we run the Payment Process Request:
1. Suppliers who have opted for EFT payments must have payment method set up as “Electronic”
This is a sample screen shot only
2. All suppliers who have a payment method of ‘Electronic’ must have a Bank Account associated
3. Employees who are to be paid electronically for expense reimbursement must have their bank details setup in Oracle
4. Create Data definition- This will register the source data that will be merged with the template layout to create a published report
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Name Enter a suitable name for the template based on naming conventions
Code If Oracle Applications concurrent manager will be used to generate the report, the data definition Code must match the concurrent program short name of the report program This enables the concurrent manager to locate the templates available for the report concurrent program when the request is submitted.
Application Select ‘Payments’ as application.
Start Date Enter the date from which the data definition will be active
End Date
Select Apply to create the Data Definition
5. XML Publisher Format Templates: Payables Manager > Setup > Payment > Payment Administrator > Formats > XML Publisher Format Templates
Create XML Publisher Format templates for XXMCK_ESP_EFT_en.rtf file.
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After the template definition is created, the following fields are not updateable: Application, Code, and Type
Name Enter a suitable name for the template based on naming conventions
Code Enter a suitable code for the template Application Select ‘Payments’ as application. Data Definition Select the data definition created aboveType Select the file type of the template as eText - OutboundStart Date Enter the date from which the template will be active. End Date
File Use the Browse button to upload the template layout file.Language Select the template languageTerritory Select the language territory
6. Register the Template created above and assign it to the data definition that already exists in the Template Manager
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7. Create Payment Formats and assign the XML Template
Payables Manager > Setup > Payment > Payment Administrator > Formats > Formats
Click on Complete
8. Define Bank, Bank Branches , Bank Account:
Payables Manager > Setup > Payment > Bank & Bank Branch Accounts
OU's Name Bank Name Branch Name Account Name
Account Number
SPAINMAD-BANKINTER MADRID CORRIENTE/BANKINTER 100939662
SPAINMCKINSEY-AMEX
MCKINSEY-AMEX ESP AMEX PCARD 9999998
Note: Please note that these are sample screen shots only for a Bank setup for ES in FINDEV1 environment
a. Create Bank
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b. Create BranchPayables Manager > Setup > Payment > Bank & Bank Branch
c. Create AccountPayables Manager > Setup > Payment > Bank Accounts
Assign the appropriate Legal Entity as Bank account Owner
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Enter Bank account detail as below
Bank account access: Assigned correct Operating Unit
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Click Apply
9. Create Payment Documents
a. Select the Bank Account and click on Manage Payment Documents. Click on Create
b. Enter detail as below to Create Payment Document:
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11. Create Payment Process Profiles:Payables Manager > Setup > Payment > Payment Administrator > Payment Process Profiles
Assign Payment method, Payment Formats, Transmission options, Usage rules (assign OU and Internal Banks) etc to a payment profile
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12. Define Payment Process Request Templates and assign the Payment Process Profile defined above. Other attributes like payment selection criteria, Disbursement Bank, Payment Documents, pay groups are also attached to the template.
Navigation: - Payables Manager > Payment Manager > Define Payment Process Request Template
Note: - These are the sample screen shot taken from FINDEV1 Instance.
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Data Migration Method
Not Applicable
Migration Dependencies
Not Applicable
Data Extraction
Not Applicable
Selection Criteria
Payment process program should select only Approved/Validated invoices.
Stop Process for Review After Scheduled Payment Selection. This step will stop after building the payments so that you can review the payments selected, and cancel any of them, if necessary
Stop Process for Review After Creation of Proposed Payments
Error Handling
1. In case of any errors encountered during the standard Payment process request, we will follow the standard process of cancelling the payment batch and submitting a new batch
2. In case of any errors after the EFT file is sent to the bank and the payment batch confirmed in the system, the payments with errors (based on report from Bank) will be voided in the system and the voided payments becomes available for payment again
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User Procedure
The following diagram shows the entire process flow including system activities and user’s manual activities for making an electronic payment. The yellow box and white box respectively stand for automated activity and manual activity.
BANK EFT PROCESS DIAGRAM
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1. Enter Invoices
2. Invoices validated and approved
3. Account profile Assignment
4. Submit Payment Request Process
5. Invoices selected
6. Review /Modify selected invoices
Payment modified?
7. Extract and Format process – (Ref Extract & Format Process Flow flow)
8. Transmission process – Concurrent Request to place Output file to a specified location on
9. Upload payment file to the Bank
Start
Yes
No
End
12. Confirm payment batch
10. Receive Confirmation from Bank
Confirmation Received?
No
11. Cancel payment batch
Yes
Action Description1. Enter Invoices This is a pre-defined activity. Invoices need to be created in the system
2. Invoices Approved This is a pre-defined activity. Invoices need to be approved in the system to be available for payment
3. Account/Profile Assignment
This is a pre-defined process. This flow assigns Payment method, Payment Formats, Transmission options, Usage rules (assign OU and Internal Banks) etc to a payment profile
4. Payment Process Request Submit the Payment Process Request with the selection criteria for processing the payments.When submitting a Payment Process Request, assign the Payment process Request template as applicable
5. Invoice Validation and selection
Oracle Payments validates the invoices selected for payment as part of the Payment Process Request to ensure that they have all the information needed for payment processing, and that the information is valid. If any information is missing or there are any validation failures, payment process requests ends in error or warning
6. Review/Modify Invoices The Payment process request selects and invoices proposed for payments. These invoices can be reviewed and choose not to make some payments, before allowing the payment process to proceed. If modifications are made, the process returns to Payment Creation to be revalidated.
7. Payment Extract and Format process
The payment information is then extracted and a flat file is generated using the XML Template Format.
8. Transmission Process The payment file generated is placed at a specified location in the Server
9. Upload Payment file to Bank
The Payment file needs to be sent to Bank which is an online activity
10. Receive Confirmation from Bank
Receive confirmation from Bank for payment file received
11. If file not received by Bank If Bank does not confirm receipt of file cancel Payment Batch
12. If file received by Bank Once confirmation is received from Bank, the payment batch can be confirmed in the system
Submit Single Payment Process Request:
Payables Manager > Payment Manager > Payment Process Request > Submit Single Payment Process Request
Note:-Please note that these are sample screen shots only for a payment process in ES in FINDEV1 environment
Following parameters are minimum required. Other parameters can be entered as required:
Payment Process Request name
Pay through Date
Payment Date
Payment Exchange Rate type
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b. Processing:
c. Validation Failure Results:
Click on “Submit” Button.
Submit the request
Check Status
Status is ‘Invoices Pending Review’. Click on Start ActionSelect invoices not required and click ‘Remove from request’
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Now select the invoice to be paid and click on Submit
Refresh Status – Status changes to “Pending Proposed Payment Review” click on Start Action then Click on “GO”
Refresh Status –Status changes to Formatting
Click on Payment process Request
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This is the stage when Electronic Payment instructions are generatedOnce the Electronic Instructions are generated the user will be asked to confirm the Payment Process
On confirming the payment, the status changes to ‘Confirmed Payment’
Data Validation
File Level Validation:
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Generated EFT format file type should be .csv Users validate the data to make sure that only payment created in the last run of the payment batch are
selected in the flat file and that the payments picked are only the one’s linked to a Electronic payment method.
Make sure that the transactions created earlier and sent to the bank are not part of the newly created flat file.
A sample file generated from existing 11.0.3 system is attached herewith for reference
Font Level Validation:
Font Style and Font Size would be taken care while define the XML Template and generated Spanish EFT Format file data should be on “Arial” style with the Size of “10”
Data Field and Mapping
Please refer Mapping File for Spanish EFT Format along-with the 11.0.3 report layout.
Functional Verification Report
Oracle R12 System output of Spanish EFT Format should exactly match with attached Spanish EFT Format file which has extracted from McKinsey 11.0.3 system
Acceptance Criteria
Refer the section Functional Verification Report to match the R12 (New system) generated EFT Format with 11.0.3 (existing System) EFT Format.
Refer the section Data Validation Requirement for validating the file, report and fonts of generated EFT format file.
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Test Scenarios
Please refer attached Test Scenarios excel sheet.
Scenario Id
Scenario Tester Date Notes
1 Submit a Payment process request and select 2 supplier invoices for payment. Verify the output file after formatting
The Output file should match with the sample Bank output file
2 Submit a payment process with previous date. Check that the invoices already paid should not be selected again for payment
The invoices already paid should not be selected again for payment
3 Create a credit memo. Create the payment batch. Negative amount invoices should not be selected for payment
Negative amount invoices should not be selected for payment
4 Submit a Payment process request and select 2 employee Expense reimbursements for payment. Verify the output file after formatting
The Output file should match with the sample Bank output file
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OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE
Open Issues
ID Issue Resolution Responsibility
Target Date
Impact Date
1 Frequency of sending the file to the bank
2 Way to transmitting the payment Instruction file to the bank (FTP)
3 Error handling after sending the file to the bank
4 Do we have only one bank for EFT payment to vendors in Spain? Please clarify
5The location where the Payment file will be placed in the Server is not specified
6 Address encryption of payment data while transferring to Banks
7 Address manual interventions and emailing of Bank payment files that is involved in their current EFT process
Closed Issues
ID Issue Resolution Responsibility Target Date
Impact Date
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