How does Supply Chain Finance integration work?

When suppliers are enrolled in the program, any approved supplier invoice in Oracle Fusion is automatically transmitted to the bank through the secure embedded banking connection.

The bank then makes those invoices available so suppliers can choose early payment and provides them with the discount amount, based on the number of days until the due date. The closer the due date, the lower the discount. Suppliers can get paid early on every invoice as soon as it's available, or log into the bank’s system and select individual invoices for early payment based on specific cash flow needs. You pay the bank at invoice maturity, just as you do today when paying the supplier.

Here’s the process:

1. Buyer consents to spend file transmission during the Supply Chain Finance program evaluation and signs an agreement with the bank.
2. Suppliers agree to extended payment terms, sign an agreement, and register with the bank.
3. Procurement updates Oracle Cloud ERP for participating suppliers.
4. Supplier remits invoices to the buyer for approval.
5. Oracle Fusion transmits approved supplier invoices to the bank for payment.
6. The bank funds the supplier early at the supplier's request or at maturity.
7. Buyer pays the bank upon maturity through automated payment settlement.