6Define Funds Capture

This chapter contains the following:

A funds capture process profile is a key setup entity that contains all the rules necessary for processing funds capture transactions. It tells Oracle Fusion Payments how to communicate with a specific payment system, and includes the payment system accounts to be used for processing transactions. During processing, the funds capture process profile is derived from transaction routing rules, which are created during the setup of internal payees.

Note: Credit card services are currently not available in Oracle Cloud implementations.

A funds capture process profile contains rules that control each of the following steps of the funds capture process:

  • Formatting messages

  • Building settlements into a settlement batch

  • Transmitting messages to the payment system

Formatting Messages

When the processing type is Bank Account, a Verification section is displayed on the Create Funds Capture Process Profile page. When the processing type is Credit Card, an Authorization section is displayed instead of the Verification section. In either case, you select the format in which your payment system expects to receive the online message. This outbound format instructs Oracle Fusion BI Publisher how the message should look. You also select the format in which you expect to receive an inbound response from the payment system.

The Settlement section on the Create Funds Capture Process Profile page enables you to select a settlement message format that your payment system accepts. The settlement is online for a gateway-type payment system and in a batch for a processor-type payment system. Online settlement transactions are typically transmitted in a group, although they're processed as individual transactions. You also select the format in which you expect to receive an inbound response from the payment system.

You can select formats for contacting your payment system to retrieve an acknowledgment. You can also select other formats for receiving responses from the payment system that specifies whether a transaction succeeded or failed. Acknowledgments can be pushed by the payment system to your company, or your company can retrieve acknowledgments from the payment system.

In the Notification to Payer section on the Create Funds Capture Process Profile page, you select a notification format and delivery method to the payer. A payer notification is a message sent to each payer after the settlement or settlement batch is transmitted. The message notifies each payer of a funds capture transaction that charges their credit card or bank account.

Building Settlements into a Settlement Batch

In the Creation Rules tab on the Create Funds Capture Process Profile page, you select settlement grouping attributes. When a specific grouping attribute is enabled, Payments ensures that settlements within one settlement batch all share the same value. Settlements with disparate attribute values trigger the creation of as many settlement batches as there are unique value combinations. For example, if you select Business Unit as a grouping rule, then only settlements with the same business unit are grouped in a settlement batch.

You can also limit the size of the settlement batch by amount or number of settlements.

Transmitting Messages to the Payment System

A funds capture process profile is specific to one payment system and its payment system accounts. In the Accounts tab on the Create Funds Capture Process Profile page, you specify payment system accounts for use with the funds capture process profile. For each payment system account you enable, you select up to three transmission configurations, one each for authorizations or verifications, settlements, and acknowledgments. The payment system account identifies Payments to the payment system, and the transmission configurations tell Payments how to transmit transactions to the payment system.

Settlement grouping is configured by selecting one or more check boxes in the Settlement Grouping Rules section on the Create Funds Capture Process Profile page. Selection of settlement grouping attributes specifies that settlements with the same attribute are included in a unique settlement batch when that profile is used. The following scenarios illustrate how settlement grouping rule options are used to group settlements into settlement batches using a specific funds capture process profile.

Funds Capture Process Profile 1

In this example, Funds Capture Process Profile 1 has the following settlement grouping options selected:

  • Business unit

  • First-party legal entity

  • Settlement date

Create Settlement Batches

During funds capture transaction processing, the Create Settlement Batches program selects the settlements listed in the following table.

Settlement Amount External Payer Business Unit that Owns the Transaction First-Party Legal Entity that Owns the Transaction Settlement Date

A

1000 USD

Customer 1

California

North America

February 1, 2012

B

250 USD

Customer 2

California

North America

February 1, 2012

C

500 USD

Customer 3

Oregon

North America

February 1, 2012

D

750 USD

Customer 4

California

North America

March 1, 2012

The Create Settlement Batches program then groups the settlements into the following settlement batches:

Settlement Batch 1

Settlement Batch 1 contains Settlements A and B because both settlements have the same settlement grouping attributes as follows:

  • Business unit = California

  • First-Party legal entity = North America

  • Settlement date = February 1, 2012

Settlement Batch 2

Settlement Batch 2 contains Settlement C because it has the following settlement grouping attributes:

  • Business Unit = Oregon

  • First-Party legal entity = North America

  • Settlement date = February 1, 2012

Settlement Batch 3

Settlement Batch 3 contains Settlement D because it has the following settlement grouping attributes:

  • Business Unit = California

  • First-Party legal entity = North America

  • Settlement date = March 1, 2012

Routing rules route a funds capture transaction to the correct payment system account. Based on attributes of the transaction, the routing rules determine which funds capture process profile to use. For example, Oracle Fusion Payments compares attributes of a transaction, such as payment method, business unit, amount, and currency against the conditions in a routing rule. When all conditions are met, the specified payment system account and funds capture process profile are used for the transaction. The funds capture process profile is used to define how the transaction is processed.

You assign routing rules to internal payees during the setup of internal payees. Each payee can have prioritized routing rules. The routing rule with the highest priority is evaluated by Payments first. If the values in the requested funds capture transaction match the conditions in the routing rule, that transaction is routed to the applicable payment system account for processing.

In the Setup and Maintenance work area, use the following to create a routing rule:

  • Offering: Financials

  • Functional Area: Customer Payments

  • Task: Manage Internal Payees

On the Manage Internal Payees page in the Payee field, enter a payee and click Search. Select an internal payee ion the Search Results section and click Manage Routing Rules. The Manage Routing Rules page appears. In the Routing Rules section, from the Payment Method choice list, select a payment method and click Create. The Create Routing Rule page appears.

If the attributes in the requested funds capture transaction do not match the conditions in the routing rule, the routing rule is disregarded and Payments evaluates the next routing rule. If all routing rules are evaluated and none apply, Payments looks for a payment system account and funds capture process profile specific to the payment method type entered for the payee in the Default Routing section on the Set Rules page.

The payment system account and funds capture process profile that are used for an authorization are automatically used for additional actions, including settlement and any subsequent refunds.

Each format in Oracle Fusion Payments corresponds to one Business Intelligence Publisher Enterprise (BI Publisher Enterprise) template. Payments uses BI Publisher Enterprise templates to format funds capture and funds disbursement transactions according to the formatting requirements of financial institutions and payment systems. Each template contains prescribed formatting attributes, such as data location. Banks, payment systems, and countries have specific electronic formatting requirements for payment files and settlement batches.

You can use existing BI Publisher Enterprise templates or modify them with minimal effort by using a standard text editor, such as Microsoft Word. For example, when a payment system requires a change to its payment file format, you can quickly make the change by modifying the appropriate template.

Whether you modify an existing template or create a new one, determines whether you also create a new format and a new payment process profile. Each payment process profile is associated with a format. The following table lists two template scenarios and indicates the resulting action you take.

Actions Scenario 1 Scenario 2

Create a new template or modify an existing template.

Create a new template.

Modify an existing template.

Name the template.

Rename the template.

Keep the same name.

Where to save the new or modified template.

Payments folder by the Custom folder or Payments folder by the Financials folder.

Payments folder by the Custom folder.

Create a new format.

Yes

No

Create a new payment process profile.

Yes

No

To modify a template, you can:

  • Download a copy of the applicable template.

  • Upload a copy of the modified template.

Download a Copy of the Applicable Template

To download a copy of a predefined template, perform the following steps:

  1. Sign in to Oracle BI Publisher Enterprise.

  2. On the Home tab, click the Catalog Folders link. The Catalog tab appears with a hierarchy of folders.

  3. Expand the Financials folder.

  4. Expand the Payments folder.

  5. Locate the predefined template type that you want to modify and click the More link.

  6. From the menu, select Customize. All the templates that are associated with the predefined template type that you want to modify are copied to a folder by the Custom folder.

  7. You can now download the files from the Custom folder and modify them or you can continue with step 8.

    Note: Do not modify predefined templates. When you apply a new patch or a new release, it overrides any changes you made to the predefined template. You can, however, copy a predefined template and then modify it.
  8. On the Data Model tab, to copy a predefined template and save it to your local drive as a RTF file, click the Edit link of the applicable template. Then click the Save button.

  9. Navigate to the location where you want to save the copy of the template and click the Save button.

  10. Navigate to the saved RTF file and open it.

Upload a Copy of the Modified Template

To upload a copy of a modified template, perform the following steps:

  1. Using a text editor, modify the RTF file on your local drive.

  2. Save as Other Formats, change the file name, click the Save button, and close the file.

  3. To upload a copy of your modified template to Oracle BI Publisher Enterprise, navigate to the applicable tab, and click the Add New Layout link.

  4. Click the Upload icon. The Upload Template File dialog box appears.

  5. In the Layout Name field, enter a name for the template you modified.

  6. In the Template File field, browse to the location of the modified template on your local drive and click the Open button.

  7. From the Type choice list, select RTF Template.

  8. From the Locale choice list, select the language for the modified template.

  9. Click the Upload button. The modified template appears on the Data Model tab of the applicable tab.

    Note: The modified template is also copied to the Payments folder that is within the Custom folder.
  10. To open the modified template, click the Edit link.

  11. To confirm that the modified template is saved, click the Catalog link. The Catalog tab appears with a hierarchy of folders.

  12. Navigate as follows: Custom folder > Financials folder > Payments folder.

  13. Select the Payments folder.

  14. For the applicable template, click the Edit link. Your modified template appears.

FAQs for Define Funds Capture

Oracle Fusion Payments enables you to specify payment codes that are required by financial institutions. Payment codes can provide details to banks or payments systems about transaction handling, bank charges, or payment reasons for regulatory reporting purposes.

Payment code types include:

  • Bank instruction codes

  • Delivery channel codes

  • Payment reason codes

Bank instruction codes are values that contain instructions that must be passed to a bank or financial institution at the payment file level. Up to two bank instructions can be entered on a payment process profile. When that payment process profile is used during the creation of a payment file, the bank instruction values are copied directly to it. The values are made available to the formatting process by the extract. If the payment format specifies the use of bank instructions, the values are passed to the bank in the header level of the payment file.

Oracle Fusion Payments provides many predefined bank instruction codes.

Delivery channels are instructions that tell the bank how to make the payment to the payee. A default delivery channel value can be set on the supplier, supplier address, or supplier site. A value automatically populates from the lowest of these levels to the invoice in Oracle Fusion Payables. On the invoice, it's displayed with the installments and can be manually overridden there.

When an installment is paid, the delivery channel is copied from the document payable to the payment when payment documents have the same delivery channel. If you select delivery channel as a grouping rule on the profile, all documents that share the same delivery channel are grouped into a payment.

Oracle Fusion Payments provides many predefined delivery channel codes.

Payment reason codes are generally country-specific identifiers provided by a country's government or central bank. These codes provide the payment system or bank with additional details about the reason for the payment for regulatory reporting purposes. The purpose of entering payment reason codes required by a country's payment system or central bank is to specify the reason for the payment.

Oracle Fusion Payments provides many predefined payment reason codes.

Before capturing funds from a payer's bank account, you can send an online message to the payment system requesting that it contact the bank and verify that the payer's bank account is valid. This process does not put a hold on any funds in the account, which is done with a credit card authorization.

You enable online verification in a funds capture process profile by selecting an outbound format and an inbound response format for verification.

Note: Online payer verification is an optional feature and is not offered by all payment systems.