R12 Payments

Oracle R12 Payments: An In-depth Technical Setup Configuration for
R12 Upgrade
Vinod Dua
Bechtel Corporation
Editors Note: The purpose of this paper is to describe the high-level technical configuration for
Release 12 Payment process. Since the setup configuration of payment process has drastically changed
in Release 12, this paper has attempted to highlight all the changes in comparison with 11i payment
configuration. Additionally, some valuable tips have been addressed to speed up the customizations
development.
Overview
Bechtel is among the most respected engineering, procurement, and construction companies in the
world. We stand apart for our ability to get the job done right no matter how big, how complex, or how
remote the project. For 115 years, customers have placed their confidence in Bechtels ability to manage
large projects in which they have substantial investments. Our legacy of more than 22,000 successful
projects in 140 countries reflects a longstanding commitment to quality. Its a commitment we are proud of
and one thats been substantiated by independent audits and customer loyalty.
Bechtel implemented Oracle Financials (Release 9.4) in the early 1990s. Since then it has been
upgraded multiple times and software patches have also been regularly applied to stay current with the
technology. In 1999, all financial instances were upgraded to 10.7 to meet Y2K requirements. In 2003, a
major initiative was undertaken and all 10.7 financial instances were consolidated into One Single Global
Instance (Oracle 11i). This effort took almost three years. Following this consolidation, Oracle 11i has
been upgraded to Release 11.5.10 and Oracle patches have been regularly applied.
In 2007, Oracle released Oracle R12. The premier support for Release 11i ended in 2010 and the
extended support ends in 2013. Due to this, a business decision was made to upgrade Oracle Release
11i to Oracle Release 12.1.3, which is the latest release.
The upgrade to Release 12 requires database versions to be 11g. As a result, all the financial instances
st
are being upgraded to 11g in preparation for the upgrade to R12, occurring in the 1 PMC Oracle cycle.
Release 12 also includes many architectural changes in technology and processes, therefore an
extensive study and analysis is being conducted to capture all the improvements and key changes.
Bechtel has three 11i financial instances, and many other custom application 11i instances. The R12
upgrade has been successfully done on the two smaller financial instances, and several custom
application instances. The complex financial instance with 1TB database, 25 sets of books, and 24
operating units is under development and unit testing.
R12 Payments Benefits

In Oracle Release 12, the Centralized Payment Processing engine combines both Funds Disbursement
and Funds Capture into one payment system. Organizations can now leverage the centralized processing
engine across multiple operating units, currencies, payment methods, and pay groups to increase the
real-time visibility of cash inflows and outflows.
COLLABORATE 13 OAUG Forum

Copyright 2013 Bechtel Corporation
Page 1 of 35
In Oracle Release 12, Payments have a new concept of Payment Process Request similar to Release
11i Payment Batch. This feature has better controls, more visibility and flexibility, and thus has
enhanced the overall performance of Payment process.
Oracle has also streamlined all the customizations by introducing standard payment XML tags. Custom
objects typically include check formats and PL/SQL Packages to create Electronic Data Interface (EDI)
files to be sent to the trading partners. To speed up the customizations, custom hooks to standard
packages have also been provided. Overall, the configuration/customizations changed in R12 were
designed to help organizations improve their payment processes.
The new release of Oracle R12 has brought in many enhancements to the Payment Process. Some of
the key benefits are:
Offers Centralized Payment Processing to consolidate Payment runs

Gives Payables transparency by using Payment Process Manager Dashboard
Provides Payment Process Controls and enhanced accurate Payment Information using Payment
Process Profile
Eliminates redundant Payment Processes using Payment Templates
Uses MOAC to help the Shared Service Centers drive cost savings and increase the quality of
information they provide
Includes Banks and Branches as part of the TCA architecture
Increases effectiveness of Master Data Fewer Configuration Steps
Reduces Customization by using Standard Oracle-provided XML Tags and RTF Templates
Allows for easy customization through the use of Standard Extensions or hooks to XML Tags
Things to Consider
During an upgrade from Release 11i to Release12, Oracle recommends the following:
Confirm is cancel the status of all open Payment batches Update the NULL Bank Branches
Country Code to either USA, or the respective country code
Closely analyze and document all customizations
Use standard custom naming conventions; it is advisable to use the Custom Objects names the
same as one would use Oracle Standard Objects
Reduce downtime by using SQL to validate the configuration
R12 Payments Process Changes

The R12 Payments has many process changes. Key changes include:
To create Quick Checks / Manual Checks, Payment Process Profile is used, which is new to R12
The use of Templates to run/schedule payment batches
The use of Payment Dashboard to forecast cash balances and monitor payment batches

Page 2 of 35
R12 Payment Setup Technical Configuration Changes

In the upgrade from Oracle 11i to Oracle Release 12, many changes have been made to Payment
Configuration.
Banks, Branches and Bank Accounts

This section will explain the details of Banks, Branches, Bank Accounts, and the Payment Process. In
each section, the 11i and R12 tables and changes will be described. Lets take an existing bank account
from 11i instance and see the corresponding changes in R12.
Table 1.1 Details
S No
Form Name
Field Name
Value
Banks
Bank Name
XXX Bank Name
Bank Branch Name
XXX Bank Branch Name
Institution
Bank
Description
XXX Bank Name
Country
France
Address Line1
X1 Address 1
Address Line 2
X2 Address 2
City
PARIS
Postal Code
92974
Operating Unit
XXX Operating Unit
Bank Account Name
XXX Bank Account Name
Bank Account Number
X123456
Account Type
Internal
Currency
EUR
Cash Account
Cash Account
Multiple Currency Payments
Yes
Allow Zero Payments
Yes
Address
Bank Accounts
Banks
The Banks in Release 12 are treated as PARTIES, as they are shared with AR, CM, and Payables. They
are part of TCA architecture. Note that when we upgrade from 11i to R12, the AP_BANK_BRANCHS
table still exists but it has no role in R12. The Banks from this table are converted to HZ_PARTIES and
this table is now obsolete. When you create a new Bank, the data gets inserted into HZ_PARTIES.

Page 3 of 35
Table 1.1.1 Banks

Oracle 11i
Table Name
AP_BANK_BRANCHES
Oracle R12
Column Name
Table Name
Column Name
BANK_NAME
HZ_PARTIES
PARTY_NAME
The following columns in HZ_PARTIES are important.

Table 1.1.2 Table Details
Table Name
Column Name
Comments
PARTY_ID
This will be used in

CE_BANK_BRANCHES_V as
BANK_PARTY_ID
PARTY_NUMBER
System Generated
PARTY_NAME
Bank Name
PARTY_TYPE
Defaults to ORGANIZATION
ORIG_SYSTEM_REFERENCE
AP BANK:1000 Points to 11i

Bank_Branch_Id
AP BRANCH:1000 Points to 11i

Bank_Branch_Id
HZ_PARTIES
From the Payables Super User Responsibility, navigate to the below screen
This screen shows all the Banks, Branches and Bank Accounts. This screen is same from any AP Super
user responsibility. The + sign under each country indicates that there are many banks and branches
defined in the country. As we drill down, the Total Accounts column indicates the number of Bank
Accounts associated with each branch.
Bank Branch
The Banks Branches in Release 12 are also part of TCA architecture. The Bank Branch is created as
another record in HZ_PARTIES. The Bank and Bank Branches are linked together by

Page 4 of 35
HZ_RELATIONSHIPS. The Oracle 11i AP_BANK_BRANCHES table is replaced by

AP_BANK_BRANCHES_V. This view has the base tables from HZ _PARTIES. Note that when we
upgrade from 11i to R12, the AP_BANK_BRANCHS table still exists but it has no role in R12.
Table 1.2.1 Tables
Oracle 11i
Table Name
Oracle R12
Column Name
Table Name
Column Name
AP_BANK_BRANCH
ES
BANK_BRANCH_NA
ME
HZ_PARTIES
PARTY_NAME
AP_BANK_BRANCH
ES
BANK_NUM
HZ_ORGANIZATION_PROFIL
ES
BANK_OR_BRANCH_NUMB
ER
The following Release 12 tables are very important.

Table Name
Column Name
Comments
PARTY_ID

CE_BANK_BRANCHES_V as
BANK_PARTY_ID
PARTY_NUMBER
System Generated
PARTY_NAME
Bank Branch Name
PARTY_TYPE
Defaults to ORGANIZATION
AP BRANCH:1000 Points to 11i

Bank_Branch_Id
SUBJECT_ID
This is the PARTY_ID from HZ_PARTIES.

This can be for a Bank or a Branch
SUBJECT_TABLE_NAME
Always HZ_PARTIES
OBJECT_ID
Very Important field. For a Bank, this field

will have the PARTY_ID of the Bank
Branch.
OBJECT_TABLE_NAME
Always HZ_PARTIES
RELATIONSHIP_CODE
For a Bank, it is HAS_BRANCH and for a

Bank Branch it has BRANCH_OF
RELATIONSHIP_TYPE
BANK_AND_BRANCH
PARTY_ID
PARTY_ID of the Bank Branch from

HZ_PARTIES
BANK_OR_BRANCH_NUMBER
Bank Branch Number
BRANCH_CODE
Bank Branch Number
HZ_PARTIES
HZ_RELATIONSHIPS
HZ_ORGANIZATION_PROFILES

Page 5 of 35
The Banks Branches is now a View in Release 12.

Table 1.2.3 View Details
View Name
Tables Used in the View
CE_BANK_BRANCHES_V
Comments
HZ_CODE_ASSIGNMENTS
HZ_PARTIES
HZ_RELATIONSHIPS
HZ_CONTACT_POINTS
Bank Accounts
The Banks Accounts in Release 12 are also part of TCA architecture. The Bank Account is created as
another record in HZ_PARTIES. Note that when we upgrade from 11i to R12, the
AP_BANK_ACCOUNTS_ALL table still exists but it has no role in R12.
From the Payables Super User Responsibility, navigate to the below screen.
A simple search region is displayed when the Bank Accounts is opened. To find an existing 11i
Converted bank account, type the bank account name with a % sign. Some of the 11i bank account
names have been changed in Release 12. They have been appended by the 11i Operating Unit as shown
in the next screen.

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In Release 12 the INTERNAL Bank Accounts have been separated from EXTERNAL Bank Accounts in
two different tables.
Table 1.3.1 Tables

Oracle 11i
Table Name
AP_BANK_ACCOUNTS_A
LL
Oracle R12
Column Name
BANK_ACCOUNT_NA
ME
Table Name
Column Name
CE_BANK_ACCOUNT
S
BANK_ACCOUNT_NAME
BANK_ACCOUNT_NU
M
BANK_ACCOUNT_NUM
BANK_BRANCH_ID
BANK_BRANCH_ID. This is
the PARTY_ID of the Bank
Branch from HZ_PARTIES
BANK_ID. This is the
PARTY_ID of the Bank from
HZ_PARTIES
SET_OF_BOOKS_ID
ACCOUNT_OWNER_PARTY_
ID
CURRENCY_CODE
CURRENCY_CODE
ORG_ID
ACCOUNT_OWNER_ORG_ID
HZ_PARTIES

Page 7 of 35
When a new INTERNAL Bank Account is created in Release 12, a record is inserted in HZ_PARTIES as
well. For an upgrade from 11i to Release 12, HZ_PARTIES does not have the Bank Account.
Table Name
Column Name
Comments
PARTY_ID

CE_BANK_ACCOUNTSBRANCHES_V as
BANK_PARTY_ID
PARTY_NUMBER
System Generated
PARTY_NAME
Bank Account Name
PARTY_TYPE
Defaults to PARTY_RELATIONSHIP
NULL
HZ_PARTIES
Check Formats
The Check Formats in Release 12 are XML Templates. The table AP_CHECK_FORMATS is now
obsolete. All the Standard Check Formats have been converted to XML Template. The names of these
templates can be found in IBY_FORMATS_B. The AP_CHECK_FORMATS table still exists but it has no
role in R12. The 11i Check Format executable name can be easily queried in this table using the
REFERENCE_FORMAT_CODE. The R12 Format Code, Format Type Code, and Format Template Code
can then be derived for each Oracle Standard Check Format.
Table 1.4.1 Tables
Oracle 11i
Table Name
AP_CHECK_FORMATS
Oracle R12
Column Name
Table Name
NAME
Column Name
IBY_FORMATS_TL
FORMAT_NAME
IBY_FORMATS_B
FORMAT_CODE
FORMAT_TYPE_CODE
FORMAT_TEMPLATE_CODE
Therefore, in Release 12, ALL THE CUSTOM FORMATS have to be converted to XML Template.

Page 8 of 35
The Administration of Formats is an OA Framework Form.
The Setup of Formats involves the following steps:

a. Create a RTF Template for the Check/EFT Format
b. Register the Template
c. Define Format, link them to XML Template and assign other validations
For an existing XML Format, the Formats Task Name opens up with the below screen.

Page 9 of 35
To create a new Format, click the Create Button.
All the 11i Formats have been converted into XML Template. The next few screen shots will show how to
create a Custom Check Formats which does not upgrade.
A Default Code is SAMPLE_FORMAT_CODE. This needs to be changed to Custom Format Code
which will be used in the Template.

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The other information for Data Extract has the following options.
Choose Oracle Payments Funds Disbursement Payment Instruction Extract, Version 1.0
a. XML Publisher Template and Name is the Registered Template and Name.
b. Type . Choose Disbursement Payment Instruction.
Check Stocks
The Check Stocks in Release 12 are associated with Bank Account Setup. This is the same as 11i. The
table AP_CHECK_STOCKS_ALL still exists but it has no role in R12.
Table 1.5.1 Tables
Oracle 11i
Table Name
AP_CHECK_STOCKS_ALL
Oracle R12
Column Name
Table Name
Column Name
NAME

Page 11 of 35
Perform a Simple Search on the Bank Account Name. The 11i Bank Account Name is appended with
Operating Unit.
The results of the Simple Search is as shown:
Select the Bank Account Name using the Radio Button. Click on Manage Payment Documents.

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Once the Bank Account has been queried and selected, the existing Payment Documents will show up:

Page 13 of 35
For new Check Stocks, use the Create button and enter the required information as in 11i.

Page 14 of 35
Valuable Tips prior to the R12 Upgrade

Before the Upgrade is completed, make sure the following is done:
1. Make sure all Payment Batches are either Canceled or Confirmed. There should not be any
payment batch in any other stat.
2. Update the NULL Bank Country Code to the required country. If this is not done, R12 defaults the
NULL country code to United States.
3. Cleanup banks, branches, and bank accounts before the upgrade.
Valuable Tips after the R12 Upgrade

The Oracle Release 12 has some new features in every module which has helped the organizations to
secure data and control access. It has also enhanced the usability of some modules, especially in
payments.
After the Upgrade is done, use the following SQLs to speed up your configuration.
1. By default Masking is setup on Internal and External Bank Accounts. If the same bank account
is used in multiple operating units, the upgrade process appends the ORG_ID after the bank
account name. Also if the first four characters of Bank Account Numbers are same, then
unmasking helps.
Click Payment Administrator. Go to Task System Security Options

Page 15 of 35
Set up Number of Digits to display for External Bank Accounts
2. Bank Accounts Tolerances fields for Internal Bank Accounts are now mandatory in the Bank
Accounts OA Form. If you are editing any internal bank account, you will have to use a tolerance
amount and percentage. Use the following SQL to update them:
UPDATE ce_bank_accounts
SET ap_amount_tolerance = 0,
ar_amount_tolerance = 0,
ap_percent_tolerance = 0,
ar_percent_tolerance = 0,
ce_amount_tolerance = 0,
ce_percent_tolerance = 0,
recon_oi_amount_tolerance = 0,
recon_oi_perence_tolerance = 0
WHERE account_classification = 'INTERNAL'
3. Bank Accounts Descriptive Flex Fields (DFF) are the same but in R12.1.3 they are hosted in
CE_BANK_ACCOUNTS table. In 11i, if a Bank Account Number has a dash -, the dash will be
removed in R12. The 11i bank account number with dashes has been upgraded to
CE_BANK_ACCOUNTS. MASKED_ACCOUNT_NUM.
4. The Bank Account number length is restricted to 11 characters in the Bank Accounts OAF Form.
5. The Documents for each bank account has been moved to a different table:
IBY_DOCUMENTS_B.

Page 16 of 35
6. The Bank Account Numbers are masked in R12. The masking can be done either in the
beginning of the bank account number or at the end of the bank account number. After masking,
only the first four or last four characters will show in the screen.
7. The Bank Account Number cannot have special characters such as hyphens, dashes, colons, or
other special characters.
8. After the upgrade, check to see if the Bank Account Number is enabled for Payables and Cash
Management

Page 17 of 35
How to Speed Up Payment Configuration and Customizations

E-Business Suite Customizations are the key to every upgrade process. Customization costs can inflate
the lifecycle effort cost by at least 75%. As a result, the challenge every organization faces today is
determining what customizations have been made, and then deciding what to do about them. Since every
organization has specific customizations, Oracle has attempted to document many examples and
recommend the best practice to bring those customizations into R12. Oracle has more than 15 different
types of customizations, modifications, and extensions. Here are some of the important customizations
which are affected by the R12 upgrade:
Folders If you have created custom folders, you will have to re-create them again after the
upgrade.
Form Personalization - Some of the Form Personalization will work but there are significant
changes in Invoice Workbench and Supplier Workbench. Additionally, Payments Administration is
a new module and all personalization will have to be created again.
Custom Check Formats will have to be re-done using XML/eText.
Any EDI Payment Program written in PL/SQL Package will have to be rewritten using Standard
Oracle XML Template.
If you have used Descriptive Flex Fields (DFF) from AP_BANK_ACCOUNTS_ALL table for any
reports, then those reports will need to be changed to point to CE_BANK_ACCOUNTS.
Types of Payments
In Release 11i, many organizations have four major categories of payments:
a.
b.
c.
d.
Clearing or Quick Check Payments Mainly used for Clearing or recording purposes
Manual Checks Printing on a custom check stock
EDI Payments - Batch Processing for Electronic Data Exchange (EDI)
Third Party Payments with specific file format
To speed up customizations for the above payment types, do a quick analysis of the existing bank, bank
branches, bank accounts, and check formats in 11i using the following SQL. You can either hard-code the
Operating Unit in the SQL or use the bank accounts which have been used to pay in the last 18-24
months depending on your needs.
SELECT hou.name,
abaa.org_id,
aipa.set_of_books_id sob,
abb.bank_name,
abb.bank_branch_name,
abb.bank_num,
abaa.bank_branch_id,
aca.currency_code,
gcc.concatenated_segments cash_account,
abaa.asset_code_combination_id cash_account_id,
abaa.bank_account_name,
abaa.bank_account_num,
abaa.bank_account_id,
aia.pay_group_lookup_code,
aca.payment_method_lookup_code,
acsa.name document_name,

Page 18 of 35
max(aca.check_date ) last_used_date,
acsa.check_stock_id,
acf.name payment_format_name
FROM ap.ap_checks_all aca,
ap.ap_invoice_payments_all aipa,
ap.ap_invoices_all aia,
ap.ap_check_stocks_all acsa,
ap.ap_bank_accounts_all abaa,
ap.ap_bank_branches abb,
apps.gl_code_combinations_kfv gcc,
ap.ap_check_formats acf ,
hr_operating_units hou
WHERE aca.check_id = aipa.check_id
AND aipa.invoice_id = aia.invoice_id
AND aca.check_stock_id = acsa.check_stock_id
AND aca.bank_account_id = abaa.bank_account_id
AND abb.bank_branch_id = abaa.bank_branch_id
AND gcc.code_combination_id = abaa.asset_code_combination_id
AND acsa.check_format_id = acf.check_format_id
AND aca.check_date >= '01-JAN-12'
AND aca.org_id = hou.organization_id
GROUP BY aca.bank_account_name,
aia.pay_group_lookup_code,
aca.payment_method_lookup_code,
acsa.name,
acsa.check_stock_id,
abaa.org_id,
aipa.set_of_books_id,
abaa.bank_account_id,
abb.bank_name,
abb.bank_num,
abb.bank_branch_name,
abaa.bank_branch_id,
abaa.bank_account_name,
abaa.bank_account_num,
abaa.asset_code_combination_id,
gcc.concatenated_segments,
acf.name,
acf.check_format_id,
aca.currency_code,
hou.name
ORDER BY 2,max(aca.check_date );
Download the output of this SQL into an Excel File.
System
OrgId SOB
XXX_Clearing
XXX_Quick Check
XXX_Manual_Check_Stock
XXX_EDI
5001
5006
5166
5366
1002
1009
11009
22009
Bank
Account
Id
Bank Branch
Bank
Branch
Id
10002
10020
10282
15642
10000
10006
20008
210008
XXX Bank Branch

XXX Bank Branch
XX_Bank_BR1
XX_Bank_BR2

Page 19 of 35
ZZ17_Third_Party
5426
Bank Branch Name
25009
16028
XX_Bank_BR3
Currency Cash
Bank Account
Bank Number Code
Account Name
EUR
XX

XXX Bank Branch
Name1
XXX Bank Branch
Name2
XXX Bank Branch
Name3
CNY
XX1
03030
USD
XX2
2333
AUD
XX3
3300
PEN
XX4
Bank
Account
Number
X12344555
223008
Check
Stock
Id
Document
Name
XX Bank Account
Name 1
XX Bank Account
Name 2
XX Bank Account
Name 3
XX Bank Account
Name 4
XX Bank Account
Name 5
Payment Format Name
10003
X12344555A
X12344555B
X12344555C
CLEARING-EURO
QUICK-CHECKCNY
USD_CHECK
EDI-EFT-AUD
10013
10273
10773
Clearing Payment-EUR
Evergreen Long CHK Format
CNY
BEC-PRAIRE-QCHK
BAP-EDI-AUD-EFT
X12344555D
PAYLINK-PEN
11353
Bechtel Paylink Format - PEN
Check
Format
Id
Payment
Method
Format Payment Program
Program Short Name
Oracle Standard Format Payments

Evergreen Format Payments Program
BECHTEL CUSTOM QUICKCHECK
Bechtel EDI Format Program
APXPBFOR
APXPBFEG
BAPCKFEG1
BAP_EDI_FORMAT
10001
10004
10224
10504
CLEARING
CHECK
CHECK
EFT
Bechtel Paylink Format Program
BAP_PAYLINK_FORMAT
10984
PAYLINK
R12 - IBY Format Code

IBY_PAY_CHK_STANDARD_1
IBY_PAY_CHK_STANDARD_2
R12 - IBY
Format
Name
Custom R12 Payment Process

Profile Code
Custom R12 Payment

Process Profile
Standard
Check Format
External
Check Format
BAP_PAYMENT_CLEAR
ING
Bechtel - Clearing
Payment
Bechtel - Check
Payment
BAP_PAYMENT_CHECK

Page 20 of 35
There are three important fields, Payment Format Name, Format Payment Program, and
Program Short Name. Sort the data by these fields.
Query the program short name from 11i using the below query to find out the corresponding R12
IBY Format Name.
SELECT ifb.format_code r12_format_code,
ifb.format_template_code r12_format_template_code,
ift.format_name r12_format_name
FROM ifb_formats_b ifb,
ifb_formats_tl ift
WHERE ifb.format_code = ift.format_code
AND ift.langugae = US
AND ifb.reference_format_code = program_short_name;
Update the Excel with IBY Format Code and IBY Format Name.
Clearing / Quick Check Payment

To minimize customization and configuration, follow these steps:
Create a custom check format for recording/clearing using the standard R12 format code.
Navigation Path: Setups/Payments/Payment Administrator
Create new Format.
Enter the following details

Field Name
Field Value
Code
CUSTOM_FORMAT_CODE
Name
Custom Format Code Name

Disbursement Payment Instruction
Type

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Data Extract
XML Publisher Template
Attachments
Oracle Payments Funds Disbursement Payment

Format Instruction Extract, Version 1.0
Standard Check Format
None
Create a Custom Payment Process Profile.

Field Name
Field Value
Code
Name
Processing Type
Electronic Processing Channel
CUSTOM_CHECK_PROFILE
Payment Completion Point

Allow Manual Setting of
payment Completion
Payment Instruction Format
Comments
Custom Check Profile

Electronic
Oracle Payments
When the Payment
Instruction is Formatted
No

This is under
"Payment
Instruction
Format" Tab
Page 22 of 35
Now the R12 Check Stock table is ready to be updated with this new Format. This will
automatically connect the newly created custom Payment process profile. This can be done for all
bank accounts possessing this check Format in 11i.
UPDATE ce_payment_documents
SET object_version_number = 2,
format_code = 'CUSTOM_FORMAT_CODE'
WHERE internal_bank_account_id IN (SELECT bank_account_id FROM ap_bank_accounts_all)
Note: The 11i Bank accounts table gets moved as is after the upgrade, but it is no longer used.
This step helps you when making manual/quick payments for clearing. The Payment Process
Profile then defaults for each document name for the bank account. If this is not done, then you
have multiple payment process profile to choose which is confusing, cumbersome, and error
prone.
Care must be taken as the above SQL updates all the check stocks to Clearing/Quick Check.
Manual Check
Manual checks printed on a check stock stationary must be customized in R12. The 11i check stock is not
upgraded to R12. To customize the check stocks, follow the steps:
In 11i, generally the custom check stock is copied from the Standard Oracle check format, such
as Evergreen Format. Find the concurrent program short name for the standard check format.
Query the Program Short Name in IBY_FORMATS_B.REFERENCE_FORMAT_CODE.
Find out the Format Code and Format Template Code from the table.
This is the starting point for the Customization.
The setup of Custom Formats involves the following steps:
Create a RTF Template for the Check/EFT Format

Register the Template
Define Format, link them to XML Template and assign other validations
To create a new Format, use the Create Button
A Default Code is SAMPLE_FORMAT_CODE> This needs to be changed to Custom Format

Code which has been created as a Template.

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The other information, such as, Data Extract, has the following options
Choose Oracle Payments Funds Disbursement Payment Instruction Extract, Version 1.0
XML Publisher Template and Name is the Registered Template and Name
Type.. Choose Disbursement Payment Instruction

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Field Name
Field Value
Code
Name
Processing Type
CUSTOM_CHECK_PROFILE

payment Completion
Payment Instruction Format
Comments
Custom Check Profile

Electronic
Oracle Payments
When the Payment
Instruction is Formatted
No
This is under
"Payment
Instruction
Format" Tab
Once the Custom Check Stock is configured, attach it to the Bank Account as a new Payment
Document. The Custom Payment Process Profile automatically gets associated.
Create a Payment Batch using the Bank Account and Custom Payment Document.
The output of the Payment Batch is an RTF Template.
Delete the xml fields which are not required and re-format the RTF Template to look similar to the
11i Check Format.
EDI Payments
Every organization has customized check stocks for printing checks. When we complete the upgrade
from 11i to R12, none of the custom check formats will be converted. The custom check stocks will
have to be converted to the RTF template using the standard payment XML Tag.
Payment Batches are normally created when the organization is either printing a check on a preprinted check stock or creating an EDI file to be sent to the bank.
In both circumstances, Oracle R12 provides a standard mechanism to create an XML tag. This
XML tag can then be used to create an RTF template for Check printing, or it can be used as
input for an EDI file.
One standard XML tag can be created for all custom check formats and EDI files.
To create an standard payment XML tag, it is necessary to create a new Format and a Payment
Process Profile as shown below:

Page 25 of 35
Create new Format.
Enter the following details.
Field
Name
Field Value
Code
CUSTOM_FORMAT_CODE_FOR_XML
Name
Custom Format Code Name for XML

Type
Data Extract
XML Publisher Template
Attachments
Oracle Payments Funds Disbursement Payment

Format Instruction Extract, Version 1.0
Extract Identity
None

Page 26 of 35
Field Name
Field Value
Code
Name
Processing Type
Electronic Processing
Channel
CUSTOM_CHECK_PROFILE_XML

payment Completion
Comments
Custom Check Profile for XML

Electronic
Oracle Payments
When the Payment Instruction is
Formatted
No
Create Payment System Transmissions
Field Name
Field Value
Comments
Select Protocol
Local File System Delivery
Click "Create Configuration"
Name
Bechtel File System Delivery
Enter Name and leave the rest

as default

Page 27 of 35
Create Payment Systems
Field Name
Field Value
Code
BAP_EDI
Name
Bechtel EDI Payment Systems

Processor
Processing Model
Bank Account
Transfer
Name
Type
Name
Yes
Bechtel EDI Format Code
Local File System Delivery
Comments
This is under "Funds Capture"

This is under " Formats"
Add a new row under "Settings
Required by Payment Systems"
Code
Name
Data Type
TEST
TEST
Date

Page 28 of 35
Update the Payment Process Profile for Payment System Tab
Search for BAP_EDI_PAYMENT_PROFILE
Click Update
Navigate to Payment System Tab and enter the details as shown below
Also update the following:
Field Name
Field Value
Oracle Payments
When the Payment Instruction is Transmitted
Now run a Payment batch using this new Payment Process Profile. You can either create a new
Template or enter the selection criteria for the batch manually. Make sure under the Process
Automation tab, Stop Process for Review After Scheduled Payment Selection is checked. This
prompts the payment batch to stop after the creation.
Select / De-select invoices for this payment batch.
Submit the Payment batch for completion.
Once the batch has been Formatted the XML tag can be found in the output of the Concurrent
Program Format Payment Instructions.

Page 29 of 35
Output of Format Payment Instructions is the Standard Oracle XML Tag

<?xml version=1.0 encoding=UTF-8 ?>
- <OutboundPaymentInstruction>
+ <PaymentInstructionInfo>
Batch Information
+ <PaymentProcessProfile>
Payment Process Profile Name
+ <PaymentFormat>
Payment Format Code
+ <CheckFormatInfo>
Document Name
+ <InstructionTotals>
Total Checks
+ <InstructionGrouping>
Payer, Bank Accounts and Details
+ <OutboundPayment>
Organization Details
</OutboundPaymentInstruction>
For creating an extension or a custom hook to the standard Payment XML tag, Oracle has
provided a package IBY_FD_EXTRACT_PUB.
This package can be used to create custom tags as needed:
XML File Level
IBY_FD_EXTRACT_EXT
_PUB Function To
Modify
Example of Parameter Usage
OutboundPaymentInstr
uction
Get_Ins_Ext_Agg(p_pay
ment_instruction_id IN
NUMBER)
SELECT * FROM
iby_pay_instructions_all WHERE
payment_instruction_id =
p_payment_instruction_id;
OutboundPayment
Get_Pmt_Ext_Agg(p_pa
yment_id IN NUMBER)
SELECT * FROM iby_payments_all

ipa WHERE ipa.payment_id =
p_payment_id;
DocumentPayable
Get_Doc_Ext_Agg(p_do
cument_payable_id IN
NUMBER)
SELECT * FROM
iby_docs_payable_all dp WHERE
dp.document_payable_id =
P_document_payable_id;
DocumentPayableLine
Get_Docline_Ext_Agg(p
_document_payable_id
IN NUMBER,
p_line_number IN
NUMBER)

Page 30 of 35
PaymentProcessProfile
Get_Ppr_Ext_Agg(p_pa
yment_service_request_
id IN NUMBER)
SELECT * FROM
iby_pay_service_requests WHERE
payment_service_request_id =
p_payment_service_request_id;
Top Level: Outbound Payment Instruction:

This is the top level of the XML File and there is one Outbound Payment Instruction per
Payment process request.
Level 2: Outbound Payment:

This is the Payment Level, i.e. an individual check or BACS payment amount to a
supplier. There can be multiple Outbound Payments per Outbound Payment Instruction.
Level 3: Document Payable:

Details the documents (i.e. invoices) being paid. There can be multiple Document
Payable tags per Outbound Payment.
Level 4: Document Payable Line:
This level details the invoice line. There can be multiple Document Payable Line tags per
Document Payable.
Third-Party Payments
Every organization has sometimes a very unique requirement when making payments. This is due to
legacy system or the third-party company which is being used for making payments. The file format for
these kinds of payments is very specific and unique which cannot be easily customized using RTF
Template or eText. The R12 Payment configuration and Customization for these kinds of file formats is
not recommended by Oracle, but still can be done. The assumption is that a Concurrent Program already
exists which is either a SQL or a PL/SQL package which creates this file format.
Follow the steps to accomplish exactly the same file format:
Create a new Custom Payment Method Third-Party Payment Method
Create a new Custom Format Third-Party Format; use the Oracle Standard XML Template
used for Clearing Payments or Check Payment
Create a new Custom Payment Process Profile using the Third-Party Payment Method and
specify any currency if applicable
Add the Organization Names to the Custom Payment Process Profile to make it very specific to
the Third-party payment

Page 31 of 35
Create a Custom Payment Document (Check Stock) for the Internal Bank Account using the
Custom Third Party Format
Create a Payment Template with all the required Payment Attributes; Disbursement Bank
Account, Payment Document Name, Payment Process Profile, and Payment Exchange Rate
Make sure under Process Automation Tab, the check box labeled Stop Process for Review
After Scheduled Payment Selection is checked
Create a Payment Batch using this new Template
Select/De-Select invoices and Submit the Payment batch
The Payment Batch completes normally and stops at the status Formatting
Change the Custom 11i SQL or PL/SQL Package code to reflect the R12 Payment tables
11i Tables
Comments
R12 Tables
AP_INV_SELECTION_CRITERIA_ALL
PO_VENDORS
PO_VENDOR_SITES
AP_SELECTED_INVOICE_CHECKS
AP_SELECTED_INVOICES_ALL
No Change
Changed
Changed
Obsolete
No Change
AP_INV_SELECTION_CRITERIA_ALL
AP_SUPPLIERS
AP_SUPPLIER_SITES_ALL
IBY_DOCS_PAYABLE_ALL
AP_SELECTED_INVOICES_ALL
IBY_PAY_SERVICE_REQUESTS
IBY_PAYMENTS_ALL
Change the program to pick up all the selected invoices with Payment Batch Status =
Formatting
Run the Custom program to format the file as required

Page 32 of 35
If the formatted file needs to be FTP to the Third-Party software, create a small shell script to FTP
the file
Update the status of the Payment batch to Formatted after the file has been successfully FTP to
the Third-Party system
Confirm the Payment Batch
Note: This is a Non-Standard way of creating a Payment File.
Lessons Learned
During the R12 upgrade process, and in particular for the Payments, the following points could speed up
configuration and save an organization lost productivity caused by rework, while limiting the need for
additional patches.
First and foremost, make sure to cancel all payment batches in 11i before upgrading to R12. The
Payment batch status of all the batches should be either Confirmed or Canceled.
Cleanup Bank, Branches, and Bank Accounts in 11i prior to the upgrade. Make sure the NULL
country codes for Banks are updated with a Country code. If this step is not done, during the R12
upgrade the Banks country code will default to United States.
The Location Code used in 11i for Legal Entity MUST have a valid Location Address, in particular
Country. The R12 Upgrade is dependent on this. The Bank Accounts and other default
configuration will be incomplete if this step is missed. The only way to repair this is to apply
additional patches.
In R12, because the Banks, Branches and Bank Accounts are now Parties, the upgrade process
makes some of the banks redundant if it is setup by currency in 11i.
It is advised to unmask the Bank Account Numbers for initial configuration and setups.
When a Payment Batch is created in R12 using the XML tag, the Check Number tag does not
contain the Check Number. It contains a unique sequence Payment Instruction ID. Thus, care
must be taken to find the Check Number from the Payment Instruction ID and update the
corresponding table when the EDI acknowledgement file is received from the bank.
The Oracle Standard XML Tag is very detailed and exhaustive. Oracle has incorporated almost
every minute detail of Payer, Payee, Bank, and other invoice information. Do not try to over-write
the Standard tag information using the Extension. Instead, try to configure correctly so that the
tags information gets populated during Payment Batch creation.
In 11i, Pay Group plays a very important role in Payment Batch process. In R12, the role of Pay
Group is very limited; it is only used to select invoices. The Pay Group is NOT saved in any
R12 payment table. Therefore, any customization in terms of reporting using the Pay Group is
difficult to achieve.
Do not underestimate EDI Payments using XML tags. Since this is relatively new in R12, end-toend testing is essential.
Make sure to print the XML RTF template for Check Stocks.

Page 33 of 35
11i vs. R12 Payments: Table Level Comparison

We have also noted that many of the 11i Payment tables have changed in R12. Below is a summary of
some of the key configuration tables for 11i and R12.
S.No Process/Setup
Oracle 11i Tables
Change
(Yes/No) R12 Tables
Setups
1
Supplier Workbench
PO_VENDORS
Yes
Supplier Sites
PO_VENOR_SITES_ALL
Yes
Banks and Branches
AP_BANK_BRANCHES
Yes
Internal Bank Accounts
AP_BANK_ACCOUNTS_ALL
Yes
Supplier Bank Accounts
AP_BANK_ACCOUNTS_ALL,
AP_BANK_ACCOUNT_USES_ALL
Yes
8
9
Check Stocks
Check Formats
Payment Methods
AP_CHECK_STOCKS_ALL
AP_CHECK_FORMATS
LOOKUP TABLE
Yes
Yes
Yes
Oracle 11i
Change Oracle R12 (What is the

(Yes/No) change)
10
S.No Process/Setup
AP_SUPPLIERS, HZ_PARTIES
AP_SUPPLIER_SITES_ALL,
HZ_RELATIONSHIPS,
HZ_RELATIONSHIP_TYPES,
HZ_ORG_CONTACTS,
HZ_ORG_CONTACT_ROLES,
HZ_CONTACT_POINTS, HZ_PARTY_SITES,
HZ_ORGANIZATION_PROFILES,
HZ_LOCATIONS
HZ_PARTIES,
HZ_ORGANIZATION_PROFILES,
HZ_RELATIONSHIPS,
CE_BANK_ACCOUNTS,
CE_GL_ACCOUNTS_CCID,
CE_BANKS_V,CE_BANK_BRANCHES_V
IBY_EXTERNAL_PAYEES_ALL,
IBY_EXT_BANK_ACCOUNTS,
IBY_PMT_INSTR_USES_ALL,
CE_BANK_ACCOUNT_USES_ALL
CE_PAYMENT_DOCUMENTS,
IBY_DOCUMENTS_B
IBY_FORMATS_B, IBY_FORMATS_TL
IBY_PAYMENT_METHODS_TL
Payments
1
Quick /Manual Check
Payment Batch
AP_INV_SELECTION_CRITERIA_ALL,
AP_CHECKS_ALL,
AP_PAYMENT_SCHEDULES_ALL
Yes
AP_INV_SELECTION_CRITERIA_ALL,
AP_CHECKS_ALL,
AP_PAYMENT_SCHEDULES_ALL,
AP_SELECTED_INVOICES_ALL,
AP_SELECTED_CHECKS_ALL
Yes
IBY_DOCS_PAYABLE_ALL
IBY_DOCS_PAYABLE_ALL,IBY_PAYMENTS_
ALL, IBY_PAY_SERVICE_REQUESTS,
IBY_PAY_INSTRUCTIONS_ALL

Page 34 of 35
Conclusion
We have observed that Oracle Release 12 Payments has many benefits in terms of consolidation and
integration. The configuration has changed drastically, with added features for better control and
efficiency. That being said, it is not easy to navigate customization changes, even though Oracle has
standardized the XML Tags and RTF templates. The use of Extensions to achieve further customization
has enriched the development experience altogether. It would be in the best interest of any organization
to spend once some quality time in the development of these customizations/templates and protect them
against future patch applications, migrations, and upgrades.
Overall, the experience of Oracle Payments in Release 12 with regards to configuration and Payment
processing is very promising and is in the right direction of growth.

Page 35 of 35

R12 Payments

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Oracle R12 Payments: An In-depth Technical Setup Configuration for

R12 Payments Benefits

COLLABORATE 13 OAUG Forum

Offers Centralized Payment Processing to consolidate Payment runs

R12 Payments Process Changes

COLLABORATE 13 OAUG Forum

R12 Payment Setup Technical Configuration Changes

Banks, Branches and Bank Accounts

XXX Bank Name

Bank Branch Name

XXX Bank Branch Name

XXX Bank Name

XXX Operating Unit

Bank Account Name

XXX Bank Account Name

Bank Account Number

Multiple Currency Payments

Allow Zero Payments

COLLABORATE 13 OAUG Forum

Table 1.1.1 Banks

The following columns in HZ_PARTIES are important.

This will be used in

AP BANK:1000 Points to 11i

AP BRANCH:1000 Points to 11i

COLLABORATE 13 OAUG Forum

HZ_RELATIONSHIPS. The Oracle 11i AP_BANK_BRANCHES table is replaced by

The following Release 12 tables are very important.

This will be used in

Bank Branch Name

AP BRANCH:1000 Points to 11i

This is the PARTY_ID from HZ_PARTIES.

Very Important field. For a Bank, this field

For a Bank, it is HAS_BRANCH and for a

PARTY_ID of the Bank Branch from

Bank Branch Number

Bank Branch Number

COLLABORATE 13 OAUG Forum

The Banks Branches is now a View in Release 12.

Tables Used in the View

COLLABORATE 13 OAUG Forum

Table 1.3.1 Tables

COLLABORATE 13 OAUG Forum

This will be used in

Bank Account Name

COLLABORATE 13 OAUG Forum

The Administration of Formats is an OA Framework Form.

The Setup of Formats involves the following steps:

COLLABORATE 13 OAUG Forum

To create a new Format, click the Create Button.

COLLABORATE 13 OAUG Forum

COLLABORATE 13 OAUG Forum

The results of the Simple Search is as shown:

COLLABORATE 13 OAUG Forum

COLLABORATE 13 OAUG Forum

COLLABORATE 13 OAUG Forum

Valuable Tips prior to the R12 Upgrade

Valuable Tips after the R12 Upgrade

Click Payment Administrator. Go to Task System Security Options

COLLABORATE 13 OAUG Forum

Set up Number of Digits to display for External Bank Accounts

COLLABORATE 13 OAUG Forum

COLLABORATE 13 OAUG Forum

How to Speed Up Payment Configuration and Customizations