Demystifying the World of Oracle Session ID:

Payments in R12 10123

How to Handle Credit & Debit
Card Captures Prepared by:
Lori Cirella, IT Consultant
In this session, attendees with learn how the funds capture process of Edson Morales, IT Consultant
Oracle Payments works. Attendees with also learn how Office Depot Office Depot, Inc.
was able to customize the Payments Funds Capture Flow to automate
an end to end process for Authorization through Settlement and
Acknowledgement using a Third Party Payment Processor. Attendees
will gain knowledge and insight of how to implement Oracle Payments April 24, 2018 11:00 AM
Fund Capture Flow.

Remember to complete your evaluation for this session within the app!
Agenda
Agenda

• Presenter Information
• Office Depot Fact Sheet
• Office Depot EBS Business Modules Overview and Roadmap
• Oracle R12 Payments Introduction
• Oracle Funds Capture Process Flow
• A Success Story: Implementing Oracle R12 Payments - Funds Capture at
Office Depot
• Office Depot Funds Capture Configuration
• Office Depot Credit Card / Debit Card Processing
• Office Depot Encryption
• Q&A
Introduction
About the Presenters
Lori Cirella
• Oracle E-Business Suite (EBS) Financial IT
Consultant / Solution Architect
• Over 16 years of experience implementing, upgrading
and enhancing EBS Financials Order to Cash
@lori_cirella
Edson Morales
• 19 years of experience in the IT industry
• 14 years of experience developing and supporting
Oracle E-Business Suite solutions
• 14 years of experience performing Oracle database
modeling
Who We Are – Office Depot’s Story

Office Depot, Inc. is a leading provider of business

services and supplies, products and technology
solutions through its fully integrated omni-channel
platform of approximately 1,400 stores, online
presence, and dedicated sales professionals and
technicians to small, medium and enterprise
businesses.

Through its banner brands Office Depot®,

OfficeMax®, CompuCom® and Grand&Toy®, the
company offers its customers the tools and resources
they need to focus on their passion of starting,
growing and running their business.
Office Depot EBS Business Modules Overview
Technology Portfolio - Finance: Major Technology Overview
Customer to Invoice Credit Card & Cash Management

Sales Audit /
Order Import / Invoice Use Tax Credit Cash
Signature
Customer Mgmt. (Taxware ) Authorization Management
Capture

Billing / Bill Accounts

Management / eBill Central Receivable / Credit
iReceivables Cash Application Settlement

Analytics &
Reporting

Accounts Payable & Payroll Accounting & Financial Controls

Accounts General Project

Trade Payables Fixed Assets
Payable / TDM Accounting Accounting
iExpense (Integral)

Financial Vendor
Legacy Finance Inventory
Invoice Use Tax Consolidation Programs
Payroll (Datalink, PAID, Accounting
(Taxware ) and Reporting Management
XOMS)

Active project to modernize to Oracle platform 8

Technology Portfolio Finance: Major Technology Overview
Tax Treasury

Treasury
Use Tax Management
Vertex
(Taxware )

Cash Flow Analysis

Analytics &
Reporting

Financial Planning & Analysis

ePlanIT G&A
Management Account
Expense Planning
Reporting Reconciliation
and Budgeting

CorpPlan EJM
Capital Planning
Capital Projects

Active project to migrate to Oracle platform

A Step Forward in our Transformation Journey
Oracle R12 Payments
Introduction
Oracle R12 Payments Introduction
Oracle R12 Payments module is a centralized engine that is designed to work with multiple
Oracle E-Business Suite products. Products that integrate with Oracle Payments are;
Oracle Advanced Collections, Oracle Cash Management, Oracle Order Management,
Oracle Payables, Oracle Receivables, Oracle iReceivables and Oracle iStore.
Oracle R12 Payments Primary Functions

Oracle Payments has two primary functions

Funds Capture Funds Disbursement

Funds Capture refers to the electronic Paying of Funds owed to
retrieval of funds from payers, such as creditors, such as suppliers
customers, who owe debts to a company.

Think “Accounts Receivable (AR)” Think “ Accounts Payable (AP)”

Oracle R12 Payments Key Features

Key Features
Oracle R12 Payments General Features
Oracle R12 Payments – Understanding Servlets
Oracle Payments consists of the following servlets:
• ECServlet
The ECServlet provides an interface to the Oracle Payments engine to process
payment-related funds capture operations such as authorization. This servlet is
primarily used for the PL/SQL APIs provided by Oracle Payments.

• Payment system servlets

Payment system servlets take payment files, as formatted by Oracle Payments, and
transmit them to payment systems according to transmission configurations set up in
Oracle Payments. Oracle Payments bundles payment system servlets developed by
Oracle and/or interfaces with servlets developed by its payment system partners. The
payment systems communicate with the payment acquirers or banks to process
payment transactions. Oracle Payments includes payment system servlets for
Paymentech, First Data (North), and Concord EFSnet.
Oracle R12 Payments – Security Features
• Encryption
– Credit Card Encryption is an advanced security feature within Oracle Payments that
enables Oracle Applications to encrypt credit card data.
– Use of the Credit Card Encryption feature assists with your compliance with the
cardholder data protection requirements of the Payment Card Industry (PCI) Data
Security Standard.
– When the feature is enabled, credit card and bank account numbers for external third
parties, such as customers, suppliers, or students are encrypted.

• Oracle Payments Engine to Oracle Payments Servlet Communication

– Oracle Payments architecture lets you install the payment system servlet in a machine
outside the firewall.
– Use of Oracle Wallet to store certificates and credential information to support
authentication of the engine.
– Oracle Payments retrieves the certificates from the Oracle Wallet and sends the
certificates to the server for authentication
Oracle R12 Payments Payment Methods
Supported Payment Methods

Oracle Payments supports the following electronic payment methods for funds
capture payments:
• Credit Cards
• Purchase Cards
• PINless Cebit Cards
• Bank Account Transfers

Oracle Payments supports several payment methods for funds disbursement

payments, including:
• Checks
• Wires
• Electronic Funds Transfers (EFT)
Funds Capture
Process Flow
Funds Capture Process Flow

Funds Capture Flow Overview

Create Transaction in Source Product Flow

This Diagram shows the steps performed in

the Create Transaction in Source Product
Flow (F1)
Authorize Transaction from Source Product Flow

This diagram shows the steps

performed in the Authorize
Transaction from Source Product
Flow (F2)
Settle Transaction from Oracle Receivables Flow

This diagram shows the steps performed

in the Settle Transaction from Oracle
Receivables Flow (F3).
 A Success Story:
Implementing Oracle R12
Payments - Funds Capture at
Office Depot
Office Depot Case Study

This section of the presentation will explain how Office Depot has
implemented funds capture by integrating Oracle Payments R12
with AJB’s payment gateway for authorization and settlement of
funds.

The scope of this section is limited to the functionality within

Oracle Applications and will delve into details of Funds Capture
Configuration (including servlet and encryption), iReceivables
authorization and settlement.
Office Depot Business Case

Office Depot required functionality that would integrate with a 3rd party payment
system that would process Authorizations, Settlements for Credit Card,
Purchasing Cards, and Pinless Debit Cards for sales and returns through it’s
various sales channels.

Office Depot Required functionality that would allow of our customers to access a
portal where they could view all the invoices, credit memos, debit memo.
Customer’s also had to be able to pay for the outstanding invoices, debit memos
and deposits by using their credit card. Oracle iReceivables provides the
functionality which fulfills these requirements.
Office Depot Funds
Capture Configuration
Funds Capture Implementation Steps

Things to Consider

• What are your Security Needs?

• Funds Capture or Funds Disbursement?
• Which Payment System do you Use?
• What Source Products are you using?
• What Format do you need?
Configure Funds Capture for Office Depot
Funds Capture Setup - Dashboard

Payment processing for both funds capture and funds disbursement can be setup
through one form, the Payments Setup Form.
Configure Step 1– User Setup
Configure Step 2 – System Security Options

• System security options enable you to set security options for payment instrument
encryption, masking, and credit card control.

• Before you can set up security options, you must set up a wallet. The wallet is a file,
which stores the system key

• The wallet has two functions:

– Perform HTTP client authentication of your middle-tier server for payment systems that
require this level of security
– Store the system (master) security key used to encrypt sensitive data

• The purpose of setting up the wallet in the Wallet Setup page is to:
– specify the location of the wallet file
– define the password for the wallet file
– specify whether to generate the system key yourself or let the system do it
Configure Funds Capture – Wallet Setup
System Security Options are Under the Payments Setup  Share Setup  System Security
Configure Steps 3 - 5
Step 3 – Setting Up XML Templates
The purpose of setting up Oracle XML Publisher's templates is to create and register templates in Oracle
XML Publisher. These templates are required by Oracle Payments to format payment instructions.

Step 4 – Setting up Formats

Financial institutions, payment systems, and/or countries have specific formatting requirements for funds
capture transactions, funds disbursement transactions, payment documents, and payment-related reporting.
Formats are created within Oracle Payments to represent these requirements. Each format in Oracle
Payments corresponds to one Oracle XML Publisher template.

Step 5 – Setting up Validations

Validations ensure that funds capture and funds disbursement transactions are valid, in addition to being
correctly formatted before they are printed or submitted to payment systems.

Office Depot “Bypassed” these setup steps in order to create a custom Servlet. The Office
Depot custom servlet calls the Payment System (AJB) for Authorization for Oracle
iReceivables Transactions.
Configure Step 6 – Transmission Configurations
The purpose of setting up transmission configurations in the Create Transmission
Configuration setup page is to enable electronic connectivity with payment
systems by specifying parameter values.

Payments Setups  Shared Setup  Payment Systems  Transmission Configurations

Configure Step 7 – Configure Tunneling

The purpose of tunneling is to allow connectivity between Oracle Payments and

external payment systems without compromising network security.

Oracle Payments uses a customized tunneling protocol called the Oracle

Payments Tunneling Protocol (code= IBY_DELIVERY_ENVELOPE). This protocol
uses HTTP POST as its underlying transmission mechanism and sends within the
body of the request an XML message header identifying the tunneled or
encapsulated protocol, as well as the host name, user name, and password for
FTP.
Configure Step 8 – Set up Payment Systems

A payment system is an organization that provides financial settlement services.

The purpose of setting up payment systems is to:

• define the external organizations that Oracle Payments collaborates with to
process your funds capture and funds disbursement transactions
• define the deploying Office Depot relationships with its payment system, AJB.
 Setup Payment Systems
Payments Setup  Shared Setup  Payment Systems  Payment Systems
Setup Payment System Accounts

Payments Setup  Shared Setup  Payment Systems  Payment Systems  Update Accounts

When you define payment system accounts, you provide the actual payment
system-provided values for these parameters.
Setup Payment System Payee
The purpose of setting payees is to tie the payment processing rules of the funds
capture process profile to the business entities that need to use them.

Oracle Payments Setup  Funds Capture Setup  Payees

Configure Step 9 – Payments Servlet
Using the Funds Capture Setup Administrator responsibility, under the Oracle Payments Setup
> Payment Systems page, Oracle Payments provides the ability to register a servlet that
communicates with your payment gateway.

The Office Depot servlet handles:

– Voice Authorizations
• Returns SUCCESS
• No longer used

– Authorizations
• Transforms Oracle Payment request to AJB authorization request format
• Sends AJB request, response
• Transforms AJB response to Oracle Payments format
• Used for iReceivables

– Returns/Funds Capture
• Parses Oracle Payment request.
• Calls custom package to record response in custom settlement staging table
Configure 10 – Setting up SSL for Servlet

• To set up a payment system servlet with secured sockets layer, enable HTTPS
on the middle-tier server where the servlet resides.
• If there are no funds capture profiles defined yet for the payment system,
change the BASE URL parameter of the payment system to use the https:
protocol. Otherwise, change the URLs on any transmission configurations set
up to be used with that payment system to contain https:.
Office Depot Payment Servlet Lessons Learned

– Oracle provides a sample servlet. Use it to test your Oracle Payments

Implementation without having to register a real payment system.

– The sample servlet will return success unless the transaction value matches pre-set
values which simulate specific error scenarios.

– Use the sample servlet as a template when creating a new payment servlet.

– Servlet alias, parameters must be configured in the orion-web.xml file.

– After modifying the orion-web.xml file bounce apache and oacore.

– Use the Transmission Testing pages to test the servlets.

Office Depot Credit
Card / Debit Card
Processing
Office Depot Credit Card Flow
Office Depot Credit Card Flow Performance

– During the R12 upgrade initiative, performance testing revealed that Submit Offline
Transaction was a bottleneck.

– Oracle changed the way the encryption/decryption worked.

– Office Depot worked with Oracle development to multi-thread Submit Offline

Transaction. Due to the project timeline, an alternative solution was pursued.

– Since credit card authorizations were being done outside of EBS (except for
iReceivables), and the fact that credit card settlement information was staged in
custom tables, the decision was made to bypass Oracle Payments for Oracle POS
and AOPS orders.

– iReceivables would continue to use Oracle Payments for credit card processing
Office Depot Credit Card Flow (Bypass)
Auto Remittance and Submit Offline

• The Submit Offline Transactions concurrent program is used to submit offline

non-batch transactions to the intended gateway payment system.
– In this case iReceivable Transactions are considered “Non-Batch” since they need
to auth immediately.
Credit Card Creation and Settlement
OTC – Credit Card Creation & Settlement Staging

Sales Channels
(POS, WWW, Etc)
Customer
Oracle
Reads Files iReceivables

HVOP &
Order Import Initiate Credit Card Payment for Open Invoices

Process CC Receipts, Refunds, & Deposits OD Custom Servlet AJB

Credit Card Auth
Gateway
Successful Auth
1. Decrypts CC using Key Label1
2. Encrypts CC with AJB Key
Createor Update Credit Card Account

Insert Interface (interim) tables

IBY Tables

Custom OM Tenders Interface

oe_payments_iface_all
Create cash receipt in AR Credit Card
Providers
(Vantiv)
Import/Create Credit Card Payments
Create Standard AR
into Transactional Tables)
Cash Receipt

Custom OM Tables
oe_payments
Credit Card is Stored with 2 Encrypted Values
Automatic Remittance 1. Oracle EBS Standard Encryption
2. Custom Encryption using AJB Key (DFF)
Create Custom Receipt

Create
OD: IBY Stage Credit Custom Receipt Table
Custom
Card Settlement –
Receipt
Master

Stage Settlement for POS

Stage Settlement Stage Settlement

for Non-POS Custom IBY tables iRec Stage
Settlement
Credit Card Sources
Bypass (Remittance/Staging)
Encrypted Credit Card
Settlement File Transmission and Close Batch
Office Depot has a requirement to transmit the file from the client system to the
AJB system (3rd Party Payment Processor)

Approach
The Close Batch process is used to settle the payment with the issuing bank and
causes the funds to transfer to the acquiring bank.
Office Depot
Encryption
Office Depot 11i Encryption/Decryption Processing – Credit Cards
11i Encryption/Decryption Processing – Credit Cards
iReceivables – Credit Card Processing
Import SAS Files (Pmts) Into Interface Tables
Encrypt Insert Encrypted
Decrypt Value (11i Oracle Key)
SAS Using R11 Bank
With iReceivable
Files Standard Account &
SAS Key Credit Card AP_BANK_ACCOUNTS_ALL
11i Oracle Key Receipt Creation
Receipts
API

Insert
Encrypted Value Completed
(11i Oracle Key)

OE_PAYMENTS_IFACE_ALL
Custom Return Tenders IFACE
Stage Settlement – AR & iRec Credit Card Receipts
Custom Deposits Table
Table
(Interim Tables) Automatic
Scheduled Concurrent Program
Remittance
(AR/iRec
Receipt already
Receipts)
Exists in order
HVOP - Credit Card Processing Insert receipt detail
Encrypted YES NO
iRec
Value Receipt?
HVOP (11i Oracle Key)
Prepayment Insert
&
API Encrypted
Order Import Custom Receipts Table
Value
(11i Oracle Key)
Executes
Encrypted AP_BANK_ACCOUNTS_ALL
Value is passed
OE_PAYMENTS
Custom Returns Tender Table
Settlement Package

Decrypt
NON-POS POS Using
Type Insert 11i Oracle
Encrypted Key
Value
(11i Oracle Key)
Stage Settlement – POS Credit Card Receipts
R11 Bank
Account & Encrypt
Receipt Using
Custom Receipts Table
Creation API AJB Key
Executes
Insert Insert
Encrypted Insert Encrypted
Value Encrypted Value
(11i Oracle Key) Value (AJB Key)
(11i Oracle Key)

Custom Receipts IBY History Tables

AP_BANK_ACCOUNTS_ALL Completed Table
R12.1.3 Encryption/Decryption Processing – Credit Cards
Office Depot Encryption
Office Depot Encryption
Appendix
MOS Notes
Configuration and Setup

• Setup and steps required to test the transaction flow from Oracle Receivable(AR) to Payments(IBY ) using
Dummy Payment system for Funds Capture Processing (Bank Transfers). (Doc ID 2234824.1)
• Note:471418.1 Oracle Payments Setup For Funds Capture Processing (Bank Transfers)
• Automatic Receipts and Remittance: A Complete Guide for R12 Oracle Receivables Users (Doc ID 745996.1)
• R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is, and What It Does (Doc ID
1391460.1)
• Information Center: Oracle Payments for Receivables (FC) & Payables (FD), Releases 11i and 12 (Doc ID
1275310.2)
• How To Enable Oracle Payments Data Encryption Functionality (Doc ID 1301337.1)

Troubleshooting

• R12: Oracle Payments (IBY) Funds Capture Analyzer Diagnostic Script (Doc ID 1602845.1)
References

• Oracle® Payments Implementation Guide Release 12 Part No. B28872-01

• Oracle E-Business Suite Release 12 Payments, The Centralization of Payment
Processing, Alyssa Johnson, Solution Beacon, LLC
• Oracle Payments User's Guide Release 12.1
• Oracle Payments Data Sheet
• R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is,
and What It Does (Doc ID 1391460.1)
• How To Enable Oracle Payments Data Encryption Functionality (Doc ID
1301337.1)
Disclaimer

• These slides represent the work and opinions of the presenter and do not
constitute official positions of Oracle or any other organization.
• This material should not be reproduced without the written permission of Office
Depot, Inc.
• Office Depot’s participation in this presentation does not infer endorsement of
any product or services of Oracle Corporation.
 [email protected]
[email protected]
Session ID:

10123

Remember to complete your evaluation for this session within the app!