Payables & Cash Management

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Topic

    Julio Lois
    Payment Integration with BanksAnswered
    Topic posted July 2, 2019 by Julio LoisBlue Ribbon: 750+ Points, tagged Configuration, Expenses, Financials, Payables 
    282 Views, 11 Comments
    Title:
    Payment Integration with Banks
    Summary:
    How are existing customers transacting with banks in terms of Payments?
    Content:

    Hello everyone,

    We are currently on Oracle EBS and send payments and receive acks from various banks (ach, positive pay and edi). We utilize middleware to communicate with banks and exchange files, namely Connect Direct and Biztalk.

    We are moving to ERP Cloud and are wondering what are clients out there using to perform this capability with their partner banking institutions? Are you using third party Middleware solutions (if so, why?), are you using standard functionality in ERP Cloud to fulfill these needs? If so, please describe what exactly are you using and any observed limitations and pain points.

    Thanks for your inputs!

    Best Comment

    Glen Ryen

    Hi Julio,

    Late reply, but Doc ID 1901745.1 is the best resource to start with for setting up SFTP of payment files (if you haven't seen that already).  The integrations are file-based, but we've connected ERP Cloud to quite a few different banks that way.  To Logan's point, you can do just about all of it now without an SR for opening a port or loading SSH/PGP keys.

    You can transfer the files to some middleware, but I really recommend trying to go directly to your bank.  One extra hop is one more potential point of failure.  I've used intermediaries before, but only when I’ve had a specific reason to – like low-level SSH and PGP issues which I’ve encountered.

    And acknowledgements are something you can bring in through PaaS and API calls, like Logan's doing.  But here I'd ask exactly how often do you get failed payments (and why?).  There are a lot of seeded validations on bank details and you should have a good set of user-defined validations in place on your Payment Methods and/or Payment Formats.  If you do that, things get put on hold even before the payment goes out the door - so PROD rejections really should be a very infrequent occurrence.  Fix the data issues up front and I don't find ACKs necessary for most clients.

    Does that help?

    Glen

    Comment

     

    • Karthikeyan Sukumar

      Hi Julio

      We have used the same existing previous layout for payments sending from Oracle Cloud to the Banks  through the MFT.This is File transfer tool which is used to handled the connectivity between the internal & external systems

      In you case yes still you can use the MW (Connect Direct and Biztalk) where you have the connectivity already established with bank,The only now you need to establish the connectivity between the MW(Connect Direct and Biztalk) and Oracle Cloud

      Thanks!

      Karthik

      • Julio Lois

        Hello, thanks for your reply.

        Where you using Oracle EBS prior to moving to the Cloud? (We are). We cant reuse much of what we have, did you continue to use your middleware because of limitations with the out of the box bank connectivity features provided by Oracle Fusion?

    • Lori Culp

      We use direct connection between our various banks and it works great.   Just allow enough time to get this set up between Oracle and the banks.

       

      • Logan Wacker

        If you direct connect from Oracle to the bank you no longer have to open an SR to open ports etc. Define your transmission configuration and you'll connect out of the box.

        Just a clarification, but you said you received positive pay form banks, you should be producing a positive pay file from cloud to transmit to the bank to manage check processing.

        • Logan Wacker

          Cloud also cannot import payment acknowledgements. Its been mentioned to be on the roadmap but no definitive date has been communicated. We've figured out how to managed ack's thru PaaS, but it was difficult.

          • Julio Lois

            Logan, thanks for the feedback, you are right, the positive pay parenthesis was meant for the send side not the receive side.

            When we say cloud cannot import acks, is that because it doesnt have the capability to pool a location to grab the files and drop them somewhere to process them, or there is no concurrent job in ERP cloud to process/import ack files even if i can get the files from the share once the bank sends them? Also, are we referring only to SFTP transmissions? Does ERP cloud provide webservice integrations with banks for these purposes or everything is file based?

            Can you point me to some good documentation around the transmission configurations you mentioned? You talked about not needing to open ports any longer, are the steps such as that one described somewhere?

            Thanks a bunch for your inputs.

            • Glen Ryen

              Hi Julio,

              Late reply, but Doc ID 1901745.1 is the best resource to start with for setting up SFTP of payment files (if you haven't seen that already).  The integrations are file-based, but we've connected ERP Cloud to quite a few different banks that way.  To Logan's point, you can do just about all of it now without an SR for opening a port or loading SSH/PGP keys.

              You can transfer the files to some middleware, but I really recommend trying to go directly to your bank.  One extra hop is one more potential point of failure.  I've used intermediaries before, but only when I’ve had a specific reason to – like low-level SSH and PGP issues which I’ve encountered.

              And acknowledgements are something you can bring in through PaaS and API calls, like Logan's doing.  But here I'd ask exactly how often do you get failed payments (and why?).  There are a lot of seeded validations on bank details and you should have a good set of user-defined validations in place on your Payment Methods and/or Payment Formats.  If you do that, things get put on hold even before the payment goes out the door - so PROD rejections really should be a very infrequent occurrence.  Fix the data issues up front and I don't find ACKs necessary for most clients.

              Does that help?

              Glen

      • Julio Lois

        Lori, thanks for your reply. Did you run into any issues when setting it up? Do you do EDI and ACH and Positive Pay? When you say direct connection is it file based? (SFTP) or are you leveraging any web services and APIs? Are you receiving acks from the banks and if so did you run into the issue Logan described where ERP cloud cannot process them and he had to use a PaaS solution for that piece?

    • Kamrul Alom

      There is a Payment Process Profile feature which can generate payment files for banks. They use seeded files from within Fusion and can be customized as per the need of different banks.

      • Julio Lois

        Thanks, I'm interested in sending and receiving the payment files with banks, rather than how they are generated.