Configurations defined in Oracle Fusion Financials to establish the Payment Connection with certain Banks

 

How will you define the configurations in Oracle Fusion Financials to establish the Payment Connection with certain Banks? 

Navigate to:

Settings and Actions

Choose-->Setup and Maintainance-->Setup:Financials 

Under FSM(Functional Setup Manager), used following tasks for the setups.

1.Manage Formats

2.Manage Bank Accounts

3.Manage Payment Methods

ACH - ACH_XX_BANKNAME_CountryName

WIRE - WIRE_XX_BankNAME_CountryName

4. Create a new payment document one each for ACH and WIRE in Manage Bank Accounts

5.Manage Payment Process Profiles 

Q:Can you explain how ACH and Wire payments differ in Oracle Fusion Accounts Payable(AP)?

In Oracle Fusion Accounts Payable(AP), 

   ACH and Wire are "Electronic Payment Methods" used to pay suppliers. 

   ACH is a "Batch-Processed domestic transfer" for low cost, takes 1 to 3 days, and uses NACHA formats. 

   

   Wire is an immediate, high-value transfer for same-day settlement, higher fees, and often used for international payments. 

   

   Both are configured under "Manage Payment Methods" and linked to Payment Process Profiles to generate the correct bank file formats.

Q:Walk me through the ACH payment process — what happens after you run the Payment Process Request?

After running the Payment Process Request (PPR), Oracle Fusion generates a NACHA-formatted file. This file is securely transmitted to the bank, which processes payments in batches. The bank settles transactions within 1–3 business days, and reconciliation happens automatically through bank statements.

NACHA-National Automated Clearing House Association.

ACH-Automated Clearing House.

CCD-Cash Concentration or Disbursement.

PPD- Prearranged Payment and Deposit.

SWIFT-Society for Worldwide Interbank Financial Telecommunication

Fedwire - Federal Reserve Wire Network.

RTGS - Real‑Time Gross Settlement.

IMPS - Immediate Payment Service.

NEFT - National Electronic Funds Transfer.

Q:How does a Wire payment work in Oracle Fusion, and when would you use it?

In Oracle Fusion AP, a Wire payment works by generating a SWIFT/Fedwire file through a Payment Process Request(PPR) or by recording a manual wire after initiating it in the bank portal. 

It’s used for urgent, high-value, or international supplier payments because it settles same-day, carries higher fees, and is irreversible once cleared.

Q: Where do you configure ACH and Wire payment methods, and how are they linked to Payment Process Profiles?  

Configured under "Manage Payment Methods" in Oracle Payments and can be linked to Payment Process Profiles (PPP) to generate the correct bank file formats.

Q: What file formats are generated for ACH and Wire payments?  

ACH → NACHA CCD/PPD; 

Wire → SWIFT MT103/Fedwire/ISO20022 XML.

Fedwire is a U.S. real-time gross settlement (RTGS) system operated by the Federal Reserve.

ISO 20022 = International standard for electronic financial messaging.

Q:Which payment method would you recommend for domestic vendors versus international suppliers?  

ACH for routine domestic payments. 

Wire for urgent, high-value, or international payments.

                                                                          -----------Documented Venkat-------------