DELIVER ORACLE

Reports
Functional Specification
Spanish EFT
Oracle R12 Implementation

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DOCUMENT CONTROL
Document 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

NAME

LOCATION

ACTION

Distribution
COMPANY

Copyright 2008 by Capgemini

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INFO

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................... 4
Purpose......................................................................................................................................... 4
Scope and Application...................................................................................................................... 4
Related Documents.......................................................................................................................... 4
FUNCTIONAL DESCRIPTION................................................................................................................. 5
Process Description......................................................................................................................... 5
Business Rules................................................................................................................................ 6
Assumptions................................................................................................................................... 7
Constraints..................................................................................................................................... 7
Setup Conditions............................................................................................................................. 7
Data Migration Method................................................................................................................... 16
Migration Dependencies................................................................................................................. 16
Data Extraction.............................................................................................................................. 16
Selection Criteria........................................................................................................................... 16
Error Handling............................................................................................................................... 16
User Procedure............................................................................................................................. 17
Submit Single Payment Process Request:...................................................................................................... 18
Submit the request......................................................................................................................... 20
Data Validation.............................................................................................................................. 24
Data Field and Mapping.................................................................................................................. 24
Functional Verification Report.......................................................................................................... 24
Acceptance Criteria........................................................................................................................ 25
Test Scenarios............................................................................................................................... 25
OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE........................................................................26
Open Issues.................................................................................................................................. 26
Closed 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 Suppliers 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 suppliers 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

Star
t

1. Create
Extract XML
Message
2. Pass Extract
XML Message to
XML Publisher

3. Apply Format
Template

5. Update
Payment
Instruction and
Payment Status

4. Format
payments and
store output

Payment
Instruction
-Formatted

Payment Status
-Formatted

En
d
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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 The status of the payment instruction is updated to Formatted and the status
Payment 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.
Select Payments as application.

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
Code
Application
Data Definition
Type
Start Date
End Date
File
Language
Territory

Enter a suitable name for the template based on naming

conventions
Enter a suitable code for the template
Select Payments as application.
Select the data definition created above
Select the file type of the template as eText - Outbound
Enter the date from which the template will be active.
Use the Browse button to upload the template layout file.
Select the template language
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
SPAIN
SPAIN

Bank Name
MADBANKINTER
MCKINSEYAMEX

Branch
Name
MADRID
MCKINSEYAMEX

Account Name
CORRIENTE/BANKI
NTER
ESP AMEX PCARD

Account
Number
100939662
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 Branch
Payables Manager > Setup > Payment > Bank & Bank Branch

c.

Create Account
Payables 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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10. Define Payment Methods

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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 users 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
1. Enter
Invoices

Star
t

2. Invoices
validated and
approved

3. Account
profile
Assignment

6. Review
/Modify selected
invoices

5. Invoices
selected

Payment
modified?

No

4. Submit
Payment
Request Process

Yes

8. Transmission
process Concurrent
Request to place
Output file to a
specified location on
Server

7. Extract and
Format process
(Ref Extract &
Format Process
Flow flow)

9. Upload
payment file to
the Bank

10. Receive
Confirmatio
n from Bank

No

11. Cancel
payment batch

Confirmati
on
Received?

12. Confirm
payment
batch

Yes

End

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Action

Description

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1. Enter Invoices

This is a pre-defined activity. Invoices need to be created in the system

2. Invoices Approved

7. Payment Extract and

Format process

This is a pre-defined activity. Invoices need to be approved in the system to

be available for payment
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
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
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
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.
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

3. Account/Profile
Assignment
4. Payment Process Request

5. Invoice Validation and

selection

6. Review/Modify Invoices

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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a. Payment Attributes:

b. Processing:
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c.

Validation Failure Results:

Click on Submit Button.

Submit the request

Check Status

Status is Invoices Pending Review. Click on Start Action

Select 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 generated

Once 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 ones 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

R51-81 Spanish EFT

Output.txt

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.

R51-81 Spanish EFT

Mapping.xls

Spanish_EFT_Layout
.pdf

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.

R51-81 Spanish EFT

Test Scenarios.xls

Scenar
io Id
1

Scenario

Submit a Payment process request

and select 2 supplier invoices for
payment. Verify the output file after
formatting
Submit a payment process with
previous date. Check that the
invoices already paid should not be
selected again for payment
Create a credit memo. Create the
payment batch. Negative amount
invoices should not be selected for
payment
Submit a Payment process request
and select 2 employee Expense
reimbursements for payment. Verify
the output file after formatting

Tester

Date

Notes

The Output file should match with the

sample Bank output file
The invoices already paid should not
be selected again for payment
Negative amount invoices should not
be selected for payment
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

Frequency of sending the file to the

bank
Way to transmitting the payment
Instruction file to the bank (FTP)
Error handling after sending the file to
the bank
Do we have only one bank for EFT
payment to vendors in Spain? Please
clarify
The location where the Payment file
will be placed in the Server is not
specified
Address encryption of payment data
while transferring to Banks
Address manual interventions and
emailing of Bank payment files that is
involved in their current EFT process

2
3
4

5
6
7

Resolution

Responsibi Target
lity
Date

Impact Date

Closed Issues
ID

Issue

Resolution

Responsibility

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Target
Date

Impact Date