Configure Payment Program RAG Documents

Payments Agent uses Retrieval-Augmented Generation (RAG) documents to provide financing program information to the Payment Options Assistant.

These documents contain program specific parameters, such as interest rates, rebate rates, and financing terms, which are used to evaluate payment opportunities and calculate projected benefits. Without these documents, Payments Agent uses default program values to perform financing analysis. This section explains how to create RAG documents, upload them to AI Agent Studio, and publish them for use by Payments Agent.

Payment program details can be provided through published RAG documents for simulation and benefit analysis. This enables the Payment Options Assistant to evaluate the potential benefits of a payment program before the customer decides whether to configure and use the program in Oracle Fusion Cloud Financials.

Payment programs provided through RAG documents for simulation can't be used to create supplier offers or execute payment activities until the corresponding program is configured in Oracle Fusion Cloud Financials.

Create RAG Documents

Create RAG documents that contain the financing program information used by the Payment Options Assistant for opportunity evaluation and benefit analysis.

Create a Dynamic Discounting Program Document

The Dynamic Discounting program document provides the market short-term investment rate, which represents the opportunity cost of paying early. This rate is used as the Short Term Investment (STI)% variable in the Return on Investment (ROI) formula.

1. Create a text document.
2. Enter the Dynamic Discounting program information.
3. Include the market short-term investment rate used by your organization.
   Dynamic Discount Program Information

   • Market short term investment rate (%): 3.2
4. Save the document.

ROI Formula:

Net DD ROI = (Amount × DA/360 × APR%) − (Amount × DA/360 × STI%)

Where DA = Days Accelerated, APR = supplier's offered discount rate, STI = 3.2% (from this RAG document).

For example:

Term	Meaning	Example
Amount	Invoice installment amount	$100,000
Days Accelerated (DA)	Original due date minus proposed payment date	20 days
Annual Percentage Rate (APR)	Supplier's offered annualized discount rate. The APR rate is derived from the Default APR% configured in the Dynamic Discounting program setup.	25%
Short Term Investment Rate (STI)	Your market rate for short-term investment - opportunity cost of paying early	3.2% (from RAG)
Discount Earned	Amount × (DA/360) × APR	$1,388.89
Opportunity Interest Cost	Amount × (DA/360) × STI	$177.78
Net DD ROI	Discount Earned - Opportunity Interest Cost	$1,211.11

Create a Virtual Card Program Document

The Virtual Card program document provides the market borrowing rate and per-RCN rebate rates. Payments Agent uses currency specific Real Card Number (RCN) aliases to calculate rebate income for USD payments.

1. Create a text document.
2. Enter the Virtual Card program information.
3. Include the following information:
   • Program name
   • Program code
   • Market borrowing interest rate
   • RCN alias name
   • Rebate rate

   For example:

   Virtual Card Program information

   • Program name: VC financing program
   • Program code: VC_FIN_PROGRAM
     • Market borrowing interest rate (%): 4.5
   RCN (Real Card Number) or Payment Group for JPM Configuration Details

   • RCN-1 Alias Name: CORP-VC-USD
   • Rebate Rate (%): 1.5
4. Save the document.

ROI Formula:

Total VC ROI = (Amount × Rebate%) + (Amount × WAFD/360 × MBR%)

Where WAFD = Weighted Average Float Days, Market Borrowing Interest Rate (MBR) = 4.5% (from this RAG document). Rebate =1.5%

For example:

Term	Meaning	Example
Amount	Invoice installment amount	$100,000
Rebate Rate	Card program rebate percentage on spend	1.5% (from RAG, CORP-VC-USD)
Weighted Average Float Days (WAFD)	Weighted average days between payment date and card statement due date. Represents your working capital extension. The card statement due date is derived from the Virtual Card payment instrument configuration.	26 days
Market Borrowing Interest Rate (MBR)	Your cost of borrowing - the value of extended float	4.5% (from RAG)
Rebate Income	Amount × Rebate Rate	$1,500
Float Interest Benefit	Amount × (WAFD/360) × MBR	$325.00
Total VC ROI	Rebate Income + Float Interest Benefit	$1,825.00

Review the information in each document before uploading it to AI Agent Studio.

Upload RAG Documents to AI Agent Studio

Upload the financing program RAG documents to AI Agent Studio.

1. Go to Navigator > Tools > AI Agent Studio.
2. Go to the Tools tab and search for Financing Programs RAG (ORA_FIN_AP_FINANCINGPROGRAMSRAG).
3. Select Edit.
4. In the Documents section, select Add.
5. Enter the document name and description.
6. In the Status field, select Ready to Publish.
7. Drop the Dynamic Discounting program document you want to upload.
8. Select Save.
9. In the Documents section, select Add.
10. Enter the document name and description.
11. In the Status field, select Ready to Publish.
12. Drop the Virtual Card program document you want to upload.
13. Select Save.
14. Verify that all uploaded documents appear in the Documents section.
15. Save the tool configuration.

The uploaded documents are ready to be processed and published.

Publish RAG Documents Using an ESS Job

Publish the uploaded RAG documents so that they are available to Payments Agent.

1. Go to Navigator > Tools > Scheduled Processes > Schedule New Process.
2. Select Schedule New Process and search for Process Agent Documents.
3. Accept the default parameters.
4. Select Submit.
5. Wait for the process to complete successfully.
6. Go toNavigator > Tools > AI Agent Studio.
7. Go to Tools tab and search for Financing Programs RAG (ORA_FIN_AP_FINANCINGPROGRAMSRAG).
8. Open the tool.
9. Verify that all uploaded documents have a status of Published.

After the documents are published, Payments Agent can use the financing program information to evaluate payment opportunities and calculate projected benefits.