Oracle R12 Account Payables-Understanding Oracle Payments

Oracle R12 Account Payables-Understanding Oracle Payments

Oracle Account Payables business process flow is set up, suppliers, invoices and payments, reporting and inquiry, and period-end processing. Its business flow is set up, provider entry, invoice entry, payments or disbursements generation, inquiry and reporting and period-end process. Every organization should outline its specific operational surroundings. Payment Terms area unit outlined to mechanically produce payment schedule lines for an invoice. The maturity for each invoice shall be determined by the Payment Term related to it. Multiple scheduled lines and multiple levels of discount are often outlined in payment terms. There’s no limit to the range of Payment Terms which will be outlined for a company.

Oracle Payments is a module in the Oracle E-Business Suite of applications, which serves as a funds disbursement engine for other Oracle applications and funds capture. As the central payment engine, Oracle Payments processes transactions include as invoice payments from Oracle Account Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. Oracle Payments offers the infrastructure required to connect these applications and others with financial institutions and third-party payment systems.

The centralization of payment processing in Oracle Payments provides many benefits to distributing companies which can efficiently centralize the payment process across various organizations, currencies, and regions. Better working capital management can be gained by offering cash manager’s visibility into cash inflows and cash outflows. Additionally, an entire audit trail and control is supported through one point of payment administration.

Oracle Payments is integrated with financial institutions and payment systems for receipt and payment processing, known as funds disbursement and funds capture, respectively. Funds capture refers to the electronic retrieval of funds, typically by a payment system on behalf of the deploying company, from payers, such as customers, who have debts to the deploying company. The payer, in this case, provides Oracle Payments with pertinent payment information, such as a debit card, credit card, or bank account number. On the other hand, Funds disbursement is the process of paying funds owed to creditors, such as suppliers.

Oracle Payments supports purchase cards, credit cards, PINless debit cards, and bank account transfers these types of electronic payments for funds capture payments. It also supports different payment methods for funds disbursement payments which include wires, checks, and electronic fund transfers.