How Settlement Batches Are Processed

Oracle Fusion Receivables starts the settlement process, and Oracle Fusion Payments settles the transactions. Settlements received by Payments from Receivables are stored and later built into settlement batches for transmission to your processor or payment system. During the settlement process, captured funds are

Note: If you use a gateway payment system, individual settlements, rather than settlement batches, are submitted directly to your payment system.

Settings That Affect Settlement Batches

The following table lists the options that affect settlement batch processing.

Pages	Tab	Section	User Interface Element
Create or Edit Funds Capture Process Profiles	Formats	Settlement	Outbound Format choice list Inbound Response Format choice list
Create or Edit Funds Capture Process Profiles	Formats	Settlement Response Processing	Outbound Format choice list Acknowledgment Parser choice list
Create or Edit Funds Capture Process Profiles	Creation Rules	Settlement Grouping Rules	All check boxes
Create or Edit Funds Capture Process Profiles	Creation Rules	Settlement Limit	Amount choice list Conversion Rate Type choice list Number of Settlements field
Create or Edit Funds Capture Process Profiles	Accounts	Settlement Transmission	Configuration choice list Acknowledgment Transmission Configuration choice list

How Settlement Batches are Processed

Part 1 of the settlement process flow, as illustrated in the figure, includes the creation of a settlement transaction during the Receivables remittance process. This assumes that authorization was already performed.

Part 2, as illustrated in the figure, includes the grouping of individual settlements into batches and their submission to the payment system. Part 2 is separate from Part 1 and begins when the Create Settlement Batches process is manually run or scheduled.

Part 3, as illustrated in the figure, includes the receipt of the settlement batch acknowledgment. Part 3 is separate from Part 2 and begins when the Retrieve Settlement Batch process is manually run or scheduled.

The settlement process for processor payment systems includes the steps described in the following table.

Step	Description
Remit receipts.	During receipt remittance, specifically during the approval of a remittance batch, Receivables submits corresponding settlements requests as a funds capture process request to Payments.
Receive funds capture process requests.	Funds capture process requests received by Payments include: Information identifying the request One or more settlements or credits The funds capture process request contains settlements that need funds captured electronically.
Read funds capture process profile and payment system for each settlement.	For each settlement, Payments reads the funds capture process profile and the payment system information, as determined during the routing of the initial authorization transaction. Payments uses this information in subsequent processing.
Validate settlements.	Payments validates all the settlements sent as part of the funds capture process request to ensure it has all the information required for payment processing. Payments stores the settlements in the database. The initial status of the settlement validation and storage is returned to Receivables.
Group individual settlements into batches.	A settlement batch is settlement information from one or more funds capture process requests that's formatted and transmitted to a payment system for settlement. Payments processes settlements from all submitted funds capture process requests and groups them by payment systems and other grouping rules to create settlement batches. Optional grouping rules are set in the funds capture process profile.
Extract and format settlement batch data.	Payments extracts settlement batch data into an XML message. It integrates with Oracle Business Intelligence Publisher (Oracle BI Publisher) to format the XML message into a payment system format, as specified in the profile.
Transmit settlement batch to payment system.	After the settlement batch is formatted, it's transmitted to the payment system for processing and capture of funds as specified in the profile
Retrieve acknowledgments.	The payment system may create an acknowledgment that the batch was received or processed. Payments retrieves the acknowledgment file. This step and the subsequent step are optional and depend on the level of service that's provided by your payment system.
Process status and update settlements.	Payments reads the acknowledgment file and updates the statuses of the applicable settlements. Receivables doesn't update receipt status based on this information, but restricts follow-on transactions, such as refunds.