Payment Process Profiles in Oracle Apps R12 : How to create Payment process profile

Payment Process Profiles in Oracle Apps R12 : How to create Payment process profile

A payment process profile, helps to make payment in oracle application. This contains payment processing information which decides how the payment will be process in oracle payables. This helps to make the payment processing steps. In other words we can say, payment process profile contain payment information which helps to determine the payment processing steps in the application beside this it also contains information’s about payment formatting and transmission information’s.

Payment Process Profile ties together all the necessary objects for processing payments in R12. It defines how the documents are created, formatted and processed.  

 Processing Type in Payment Process Profiles: -

There are three Processing types available

1.       Electronic: - Electronics means , if you want to make the payments electronically by transferring payment information’s to the bank though payment instructions.

2.       Payment Card

3.       Printed: - Printed means, if you want to make the payment through checks by generating checks from the system.

 if you select Electronic from the Processing Type drop-down box in the Create Payment Process Profile page, the following fields display in the header that are pertinent to electronic payment processing:

·         Payment Completion Point drop-down box. This option indicates when a payment is marked complete. Payments can automatically be marked complete anytime from the time the payment instruction is formatted in Oracle Payments to when the payment is transmitted to the payment system.

Select manual settings if you don’t want to complete this payment automatically and it should be complete manually so by this options payment batch will be complete manual through ‘Funds Disbursement’ responsibility.

 

 

If you select Printed from the Processing Type drop-down box, the following fields display in the header that are pertinent to printed payment processing:

·         Default Payment Document list of values

The list of values displayed for the Default Payment Document field are based on the value selected from the Payment Instruction Format list of values. If you do not make a selection from the Payment Instruction Format list of values, the list of values in the Default Payment Document field is blank.

·         Send to File radio button

·         Send to Printer radio button

·         Automatically Print after Formatting check box

If selected, the Default Printer field is populated with the default printer assigned in Oracle Applications.

 

Usage Rule :- This helps to specify the Payment Process Profile processing parameters.

 

Payment Method:- We can select the specific payment method for which this payment process profile will work. So if we will run the payment batch with this payment process profile then this will select only those invoices which matches with the payment method mentioned in the payment process profile.

 

Currency:- We can select the specific currency or currencies for which this payment process profile will work. So if we will run the payment batch with this payment process profile then this will select only those invoices which matches with the currencies mentioned in the payment process profile.

 

 

 

Payment Instruction Creation Rules:- When you are creating Payment process profile with processing type ‘Electronic’ it means it will create payment instructions formation file which will be transmitted to bank for supplier payments. With this Payment Instruction Creation Rules , we can control the payment instruction creation file settings. Like we can limit the total amount of payments for this payment process profile. We can create sorting also in the payment instruction file.

 

 

You can add many other information’s in the payment process profile once you will save the payment process profile and then open it again.

 

Find the saved Payment process profile again and Click on the update icon.

Payment Instruction format is the file which is generated by the payment engine which have all the information about Payments and the Documents which is going to be paid by these payments.

For electronics payment, this create the xml file which can be send to the bank to do payment for the suppliers.

For Printed Payments like checks, here we attach the Check Templates/ Payment Remittance information template which will be generate for all the payments for the payment batch.

Outbound Payment file Prefix:- Here we can give the name of the file like when the payment instruction file will be create by the system , then system will give the give the file name mentioned in the Outbound Payment file Prefix.

Outbound Payment file Extension :- here we can mentioned the file extension.

Outbound Payment File directory :- Here we can mentioned the server path where this will file will be saved.

 

Under Reporting Tab, we have payment Instruction register, Positive Pay File Setups and Remittance advice setup.

 

I will share further post on this to how to create, Positive Pay File and Remittance advice setups in Payment Process Profiles.