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Collaborate 13 Outtakes: Upgrading Payment Formats to R12

Collaborate 13 Outtakes: Upgrading Payment Formats to R12
On Wednesday 10th at Collaborate 13, Anne Ristau reviewed an enhancement in Oracle R12 Financials that has answered long-standing prayers of Accounts Receivable and Accounts Payable departments everywhere.

That enhancement was R12’s new “AP/AR Netting” and the name of Anne’s presentation is “Setup and Use the R12 AP/AR Netting Feature” which you can attend at 9:30 in room 502.
Now, obviously AR/AP Netting is a completely different functionality from R12 Payment formats, but the topic is nonetheless of interest to fellow Oracle Financials end-users and developers, and we’re happy to share insights into upgrading your Oracle 11i Payment formats into an Oracle R12 environment as part of our Collaborate 13 blog series . The post was prepared by the Buenos Aires Development Services office, which services as part of our Nearshore Development Services team .
Payment Formats as Implemented in Oracle 11i

Payment formats are implemented in 11i environments as customized concurrent programs that were written following bank specifications for the input accepted as payment instructions, or matching printed check formats.
  • The programs are mostly written in PL/SQL or Oracle Reports and built based on a standard template provided by the application.
XML Publish Upgrade to Payment Formats in Oracle Financials R12
R12 provides a new feature where the previous process is replaced by the use of XML Publisher templates that simplify the development of the customized formats.
The Payment process starts by grouping the documents payable into a payment process request and then submitting it to Oracle Payments. Within Oracle Payments , the Build Payments program takes the submitted documents payable, validates them and groups them into payments. Next, the Create Payment Instructions program groups the payments into payment instructions, and then validates the payment instructions. Each payment represents a check that will be printed or a single electronic funds transfer transaction.
Each payment instruction results in one payment file that contains pertinent information on one or more payments.
Working with R12, the payment process is different from 11i in that 11i allows you to create a payment program that is associated to the bank account. This payment program is a simple concurrent program written in any language (most frequently it is PL/SQL or Reports). R12 does not allow selecting a payment program, since the program that creates the payment is standard. This program is called “Format Payment Instructions” and it creates a standard XML output. The output generated is made of a single file for each payment batch and it is used to print the custom format using an XML template that you can customize.

From Oracle 11i to Oracle R12 – Changes to Payment Formats

So the challenges you will have to face when upgrading Payment Formats from 11i to R12 are:
  • The R12 process cannot generate more than one format per payment batch. You can use the Payment Group feature to achieve this same result.
  • In case you’re insert data into a custom table from the Payment Format program, and using that event to fire an Oracle Alerts to send a notification a payment was made, you will need to use a user hook as the payment program is standard in R12 and inserting data on custom tables is not possible.
  • If you’re moving payment files to directories from where they’re picked and sent to your bank, ftp server or payment engine, as in R12 the files generated are standard concurrent outputs, the names are different and you will have to include logic in your process to make the appropriate name that’s based on concurrent programs output standards.

Still Haven’t Had Enough? Here’s MORE on Oracle R12 Financials

If you’re interested in more information on Oracle R12 Financials then you’re in luck. At Collaborate 13 IT Convergence’s team delivered two presentations on Oracle R12 Financials:

“Setup and Use the R12 AP/AR Netting Feature” (mentioned above) and
“Accounting Methods Builder (AMB) – Beyond the Basics” – click here for “Oracle AMB ‘Outtakes’”

You can download your PDF versions of the power points and white papers supporting these presentations at our Collaborate 13 Resources page .

Also make sure you check into our Oracle R12 Financials workshops and our Oracle R12 Strategy and Planning workshops in addition to our Oracle R12 Upgrade and Oracle R12 Reimplementation services.’
Follow Collaborate 13 as it happens. Click here to access the full stream of this blog’s Collaborate 13 conversation.