Earnest Money Deposit in Oracle

Sourcing
An Oracle White Paper
July, 2009
 Earnest Money Deposit in Oracle Sourcing

Executive Overview.......................................................................................... 3
Introduction ....................................................................................................... 3
Types of EMD................................................................................................... 3
BENEFITS OF EMD Sourcing Solution ..................................................... 4
FUNCTIONAL SOLUTION ........................................................................ 5
High level EMD Process in the Application................................................. 5
EMD Financial PROCESS ............................................................................ 15
EMD Setup ...................................................................................................... 19

Earnest Money Deposit in Oracle Sourcing Page 2

 Earnest Money Deposit in Oracle Sourcing

EXECUTIVE OVERVIEW
Earnest Money Deposit (EMD) is payment that suppliers are required to make to a buying
organization in order to be eligible to participate in a Sourcing negotiation. EMD is often
mandatory in Public Sector companies and Federal / Government organizations. The EMD
EMD (Earnest Money amount is decided by the buying organization and all suppliers (except those who are exempted
Deposit) is the payment from paying the EMD amount based on organization specific business rules) are required to pay
that suppliers are required the EMD amount. The EMD amount is retained by the buying company till the negotiation is
to make in order to be closed. After the negotiation is closed (or awarded), the EMD amount is refunded to all the
eligible for responding to a suppliers. In a case where the supplier has not conformed to the rules of the negotiation, the
negotiation, typically in EMD amount can be forfeited, that is, the buying organization does not return the amount to the
Public Sector and
supplier and keeps it as a penalty charge.
Government tenders
Many Oracle Sourcing users require an integrated EMD solution with their Sourcing application
in order to meet all their business objectives and organizational requirements in a seamless
fashion.

INTRODUCTION
The Earnest Money Deposit functionality in Oracle Sourcing is available for customers who have
an integrated EBS footprint which includes Oracle Financials and also for customers who are
only using Oracle EBS Advanced Procurement or Oracle Sourcing on Demand. In case of the
integrated approach, there is an in-built integration with Oracle Financials modules (Oracle
Receivables and Oracle Payables).

TYPES OF EMD
Currently we are supporting a number of payment methods for EMD. The supported methods
are –
i. Bank Guarantee
ii. Direct Payment
a. Cash
b. Demand Draft
c. Check (Cheque)

Earnest Money Deposit in Oracle Sourcing Page 3

 d. Corporate EMD

Bank Guarantee: In a Bank Guarantee type of EMD, the supplier’s bank creates a bank
guarantee document that is submitted to the buying organization. That is, the bank stands as the
guarantor for the supplier’s ability to pay the EMD amount. However, it is important to note that
the bank guarantee has a limited time period and there is no actual transfer of money until the
Bank Guarantee is invoked by the buying organization.

Corporate EMD: The supplier submits a one-time deposit with the buying organization, which
is usually a large amount. For every negotiation, the EMD amount can be deducted from the
Corporate EMD amount and the Corporate EMD balance will be maintained. After the
negotiation, the EMD amount may be refunded and the Corporate EMD balance will be
increased automatically. The supplier, can at any point in time, add to the Corporate EMD
amount or withdraw from the Corporate EMD (up to the Corporate EMD balance amount)

BENEFITS OF EMD SOURCING SOLUTION

The Earnest Money Deposit solution for Oracle Sourcing has a number of advantages –
i. The requirement of deposit ensures that all the suppliers
participating in the negotiation are very serious about their
participation. This acts as a process of supplier qualification and
filtering and makes sure that there are no suppliers who are not
very keen or interested in the contract
ii. The option of forfeiting the EMD amount compels the suppliers
to completely adhere to the negotiation rules and process and
substantially reduces the occurrences of misleading response
information
iii. Meets the regulatory requirements of Government organizations
iv. The system will have an automatic integration with Oracle
Financials for receiving, refunding and forfeiting the EMD
amount
v. EMD information is captured and stored for future audit and
references purposes

Earnest Money Deposit in Oracle Sourcing Page 4

FUNCTIONAL SOLUTION

Figure 1: EMD Functional Flow in Sourcing

The EMD solution involves, at a very high level, the creation of negotiations with the EMD
details, receipt of EMD from suppliers and the subsequent refund or forfeit of EMD.

EMD Administrator Responsibility

The EMD functionality covers aspects of both the Finance and the Procurement departments in
a organization. Hence, the person responsible for EMD information may be a member of the
organization’s Procurement or Finance departments or both. So, a new responsibility called the
EMD Administrator has been introduced. This responsibility has to be added to the person(s)
who will be responsible for the all EMD related activities. Depending on the organizational
requirements, custom responsibilities can also be created (as an implementation process) with
limited and desired EMD functionalities.

HIGH LEVEL EMD PROCESS IN THE APPLICATION

Enabling / Disabling EMD in the Negotiation Configuration Page

Navigate to the Administration tab and click on the Negotiations Configuration link. You can
select or unselect the Enable Earnest Money Deposit for all RFQs and Auctions checkbox,
depending on whether you want to enable the EMD functionality or not.

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 Figure 2: Negotiation Configuration Page – Enabling EMD

Creating a Negotiation with EMD Enabled

When you create a negotiation (RFQ or Auction), if you have selected the Enable EMD for all
EMD can be enabled RFQs and Auctions checkbox in the Administration tab (Negotiations Configuration link), then
for negotiations as per the Enable EMD checkbox is displayed in the negotiation header.
requirement. The
EMD currency can Select the Enable EMD checkbox if you wish to enable the EMD functionality for this particular
also be specified negotiation. This will display the EMD region in the Negotiation Headers Page.

Figure 3: Creating a Negotiation with EMD enabled

When you select the Select EMD checkbox, a region called EMD Information displays on the
negotiation header page. Enter the following details in the EMD Information region:

EMD Amount – enter the amount (required field) that you expect the
suppliers to pay as a deposit for participating in the negotiation. This
amount is usually decided by the buying organization purchasing
policies.

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 EMD Due Date – enter the date that you would prefer the suppliers
to pay the deposit.
EMD Type – enter Bank Guarantee or EMD as the type in this
required field.
Additional EMD Information – enter any information that you would
like to convey to the supplier or the EMD Administrator.

Figure 4: Creating a Negotiation with EMD information – Buyer view

EMD Currencies: The EMD can be paid in the currencies as determined by the buyer. The
Manage Currency section is used for selecting the EMD currency and the buyer can specify the
exchange rates in the managed currency section for the EMD amount conversion in the different
payment currencies. However, actual receipt / refund of EMD will use the GL’s rate of exchange
for the date when the transaction is carried out

EMD Approval Process

In the collaboration team a new access option has been seeded called ‘EMD Admin’. For all
negotiations with EMD enabled, there must be at least one collaboration team member (with
EMD Responsibility) with EMD Admin access level and also an approver.

The EMD Administrator will receive a notification for EMD Approval as soon as the buyer
submits the Negotiation for approval.

EMD process requires

EMD Administrator to
review and approve the
EMD details prior to
the negotiation being
published

Figure 5: EMD Approval Notification

Earnest Money Deposit in Oracle Sourcing Page 7

The EMD Administrator can view or update the EMD Details using the EMD Update Page link.
The EMD Administrator has to approve the EMD details for the buyer to be able to publish the
negotiation.

Updating the Abstract and Forms Section

New system fields have been seeded in the Abstract and Forms for Oracle Sourcing so that users
can now publish the EMD information from a negotiation as per the business requirements.

Figure 6: EMD System Fields for Abstracts and Forms Section

Supplier Activities for EMD Enabled Negotiation

The supplier can view the Negotiation including the EMD information. The EMD details will
also be available in the PDF prints. The supplier can create the response; however, can only
submit the response when EMD has been paid.

The supplier can pay the EMD online from the Sourcing Supplier responsibility using the
Corporate EMD payment method. However, for other payment methods, as the payment
instrument has to be physically submitted to the buying organization, the EMD receiving has to
be done by the EMD Administrator in the buying organization.

The EMD Administrator Responsibility

The new seeded responsibility, EMD Administrator, enables you to administer the EMD
receipts, payments, refunds, forfeits etc. Search for a particular negotiation and use the EMD
Suppliers Information page to receive a payment, refund a payment, forfeit a payment etc.

Earnest Money Deposit in Oracle Sourcing Page 8

The EMD Administrator Responsibility: EMD Home Page
Use the Quick Search to search for an active or draft negotiation that has EMD enabled

Use the following criteria in Quick Search for searching for Active Negotiations
Created By
EMD Due Date Before
Event
Number
Supplier
Title

Figure 7: EMD Home Page

The EMD Home Page allows the EMD Administrator to review the important Notifications and
the Draft and Published Negotiations. Thus the EMD Administrator can get a very good
summary of all the EMD related activities that require his / her immediate attention.

The EMD Administrator Responsibility: EMD Transactions Page

Earnest Money Deposit in Oracle Sourcing Page 9

 Figure 8: EMD transactions page

The EMD transactions page displays the EMD details of the selected. The EMD Transactions
for Suppliers region displays all the Suppliers EMD-related information. The EMD Status
displays as Not Paid initially if the EMD amount hasn’t been paid. Use the EMD Action Drop
down list to Receive or Exempt the EMD amount. Later, you can also enter the Refund or
Forfeit Activity for each supplier who paid the EMD amount. Use the View EMD Details icon
to see the EMD payment/refund/forfeit activity for each supplier. When the EMD amount has
been received, click the Print Receipt icon to print the receipt, which will be given to the supplier.
You can add a new supplier from the Add New Supplier region is case you receive the EMD for
an uninvited supplier

If you wish to exempt a supplier from paying the EMD amount, select Exempt in the EMD
Action LOV and then click Submit to confirm. The EMD Status displays as Exempted.

Figure 9: Exempt EMD

Select the Receive option in the EMD Action drop down list. The Enter EMD Details page
opens, where you can enter the different payment details required as per the payment method
selected.

Earnest Money Deposit in Oracle Sourcing Page 10

 Figure 10: Receive EMD

Click Submit and then click Yes on the next page to confirm that you would like to proceed with
the transaction. You will return to the EMD Transactions page. The EMD Status displays the
value Received. For the supplier you entered the EMD amount, the EMD Action LOV will not
be visible. However the View EMD icon and Print Receipt icon are enabled. Click Print Receipt
to print a PDF receipt that you can give to suppliers. Click the View EMD icon to open the
report for that supplier. The EMD Summary information and EMD Payment Details are
displayed on the report. The Receivables Transaction Number that is generated is also available

Click Apply to apply the receipt updates for your EMD transaction. In the Applications window,
select the Apply checkbox for that transaction line and then click Save. Close the windows and
return to the EMD Administrator page. On the EMD Administrator page, the EMD Status
should still show as Received, and the AR Receipt Status should display as Confirmed.

Select Refund from the EMD Action LOV if you wish to refund the EMD amount to the
supplier. The EMD Details are displayed when you select Refund, that is, the Show link in the
Details column is expanded to show the EMD payment details. Click Submit to perform the
refund. A concurrent program is run, and the request ID is displayed in the Details region. The
EMD Status changes to Refunding while the concurrent program is running. When the
concurrent program executes successfully, the EMD Status changes to Refunded. Click View
EMD icon to view the EMD Details Report. In addition to the EMD Summary and EMD
Payment Details, the report now displays the EMD Refund Details with the following fields:
Currency, Amount, Payment Date, Receivables Credit Memo No, Payables Invoice No, Payables
Payment No, and Refund ID. Note the Payables Invoice No.

Once you receive an EMD amount from the supplier, you can choose to retain the amount and
not return it to the supplier if the supplier has not conformed to the rules of the negotiation.
This is called forfeiting the EMD amount. You must have received the amount first before you
can forfeit it.

Select Forfeit from the EMD Action LOV. You will be asked for a justification for forfeiting the
EMD amount. Enter a justification and then click Submit.

Earnest Money Deposit in Oracle Sourcing Page 11

 Figure 11: Forfeit EMD

A concurrent program is executed, which will perform the forfeit transaction. The concurrent
request ID is displayed in the Details region. At the successful completion of the concurrent
program, the EMD status shows Forfeited. Click View EMD to view the report which details the
EMD Summary, EMD Payment Details and EMD Forfeit Details. The EMD Forfeit Details
section displays the following information: Currency, Amount, Forfeit Date, Receivables
Transaction No, and Justification.

Figure 12: EMD Transactions

The EMD Administrator Responsibility: EMD Financial Configuration tab

The EMD Financial Configuration tab enables you to specify the various Oracle Financial
entities (transaction types, payment terms etc) for EMD usage.

The header of the Financial Configuration tab displays the EMD details that default when a
buyer creates a negotiation. The Default EMD Amount and Default EMD Currency values
default when a buyer creates a negotiation.

Figure 13: Financial Configuration Page

The Enter Receivables Payment Type Information region enables you to enter a Receipt Method
and Refund Payment Method for the Payment Types you have set up for the EMD functionality.
Please ensure that the Receipt Method values and the Refund Payment Method values are set up

Earnest Money Deposit in Oracle Sourcing Page 12

in Oracle Receivables before you can specify them in this tab. Select the Enabled checkbox to
enable the Payment Type and its associated Receipt Method and Refund Payment Method.

Figure 14: Setups (Receivables Payment Type)

In the Other Financial Setup Information region, enter the values you set up in the Setup Steps
section. The values required are for the following entities:

Receivables Transaction Type

Transaction Batch Source (Type Manual)
Transaction Batch Source (Type Imported)
Payment Term
Memo Line Type (Deposit)
Memo Line Type (Invoice)

Figure 15: Financial Setup Information Section

Corporate EMD: The Corporate EMD tab enables a supplier to pay a large amount for current
and future EMD amount on a one-time basis. The EMD amount for the current negotiation is
deducted from the Corporate EMD amount.

The Corporate EMD is the original amount deposited for the Corporate EMD. The Corporate
EMD Balance is the remaining amount of the Corporate EMD after EMD amounts have been
deducted for individual negotiations. You can edit the Corporate EMD amount if the supplier
adds or withdraws money from the Corporate EMD account. Both the Corporate EMD amount
and the Corporate EMD balance will be updated.

The EMD Administrator Responsibility: EMD Intelligence

The Intelligence tab enables you to generate reports based on your search criteria. You can
search based on a combination of any or all of the following criteria:

From and To Dates

EMD Type
EMD Payment Method
EMD Status
Payment Currency
Buyer

Earnest Money Deposit in Oracle Sourcing Page 13

Click Go to view your search results. Click Export to Spreadsheet to export the results of your
search criteria to a comma delimited spreadsheet.

Figure 16: EMD Intelligence Page

Earnest Money Deposit in Oracle Sourcing Page 14

EMD FINANCIAL PROCESS
The EMD solution can be used by customers who are also using Oracle Financials and
customers who are using only Oracle Advanced Procurement (with Sourcing) or Oracle Sourcing
on Demand.

If there is no Oracle Financials installed, then the EMD receiving, refund and forfeit actions will
work as-is, though there will be no backend financials integration and validation. The system will
allow the users to capture the information regarding the financial transactions which will be
happening outside the procurement system.

For Oracle Financials integration, there will be a direct integration with Oracle Payables and
Oracle Receivables modules and there will be appropriate financial validation.

The financial validations will be available for the Direct Payment processes. For Bank Transfer,
there is no actual monetary transfer, the EMD payment is notional. Amongst the direct payment
processes, Corporate EMD will not require any financial integration. The system will maintain
the Corporate EMD amount and the available balance at any point in time. The EMD Financial
process will be discussed in three separate sections –

a. EMD Receiving process

b. EMD Forfeit process
c. EMD Refund Process

EMD receiving process

Emd Receipt Process

Sourcing
Sourcing AR
AR

Supplier can pay EMD

online if having Corporate
AR Deposit Transactions will
EMD account with Buying
be created in
Org and if not exempted .
RA_CUSTOMER_TRX_ALL,
Else Pays directly to Emd
RA_CUSTOMER_TRX_LIN
Admin using other
ES_ALL
Supplier (Pays payment methods like
EMD) (cash/cheque/
DemandDraft) Review the EMD Deposit
Transaction in AR

EMD Payment
Emd Admin Receives the
Payment from supplier Create Receipt Manually
from not exempted
EMD Admin
Receives the
payment

Create/Approve/Format
Remittances
Check
1.Send Remittance to Bank
Corporate EMD Payment
Method? 2.Bank Sends Statement
Clear Receipts(After
Checks Reconcile)
Corporate EMD
Balance for the
Cash/Check/
Party
It Not Exists If Exists Demand Draft
END
Throws
Error Bank
Update Corporate Guarantee
Emd balance

Validates
AR Integration Setup Info,
Post Payment
END EMD Transaction Info
Details/Update
Receipt Status as
(Received or
Checks Finance
Receiving )
Integration?
No

Yes

Posts Transactions into Validate Setup

pon_emd_transactions Table Info,Transaction Info

Creates Customer/
Customer Site/
site Usage (if not exitst )

Invokes AR APIs to
Create EMD Deposit
Transaction in AR

Figure 17: Receiving EMD Flow

Earnest Money Deposit in Oracle Sourcing Page 15

The EMD receiving process starts with the EMD Administrator entering the EMD information
in the EMD Payment Details page for the particular supplier. For direct payment methods –
Cash, Check and Demand Draft, the submission of the payment details changes the EMD Status
for the supplier to EMD Received and creates a deposit of type invoice in Oracle Receivables.
To create this deposit, a customer account has to be created for the particular supplier and
supplier site combination, if it doesn’t already exist. This process is also created automatically.

The EMD transactions page and the available EMD reports will display the Receivables
Transaction ID. This will allow the supplier to submit a response to the negotiation. However,
this does not confirm the actual receipt of the money.

The EMD Administrator will have to create a receipt for this transaction using the Oracle
Receivables responsibility. A new receipt will be created for this deposit and using the
appropriate receipt method. The Create Remittance Batch program has to be run for this receipt.
Subsequently, the Automatic Clearing for Receipts has to be run to clear the particular receipt. If
there are no issues with the payment, the status of this particular receipt changes to Cleared. This
implies that the money has actually been received by the Buying organization. Now, for this
particular row in the EMD transactions page, two new EMD actions are available – EMD refund
and EMD Forfeit.

EMD Refund and Forfeit Processes

The EMD Refund and Forfeit processes are available for transactions for which the buying
organization has actually received the EMD money. For payment methods, such as, Bank
Transfer and Corporate EMD, the EMD refund or forfeit processes are available immediately
after the receipt, as there is no physical money transfer involved in the process. For direct
payment methods like Cash, Check, Demand Draft, the EMD Refund and Forfeit actions are
available only after the AR Receipt is cleared in the system.

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 EMD Refund Process
Sourcing
Sourcing AR
AR AP
AP
Receives
Notification/
Communication after
Awarding For EMD Refund

Emd Admin
Initiates Refund Process

Checks Receipt Cash/Check/

Corporate EMD Payment Type Demand Draft

Updates
Corporate EMD
Balance
Checks
Finance
Integration
Posts Transactions into Bank Guarantee
pon_emd_transactions Table

No
Posts Refund Details yes

Updates status as Refunding Yes

in the case of finance
integration else Refunded Updates
Refund
Status(Refunding Launches Concurrent
or Refunded)
Request for Refunding

Validate Setup Info,

End Transaction Info Of
Refunding

Unapplies the Emd

Receipt from Deposit
Transaction

Creates a Credit Memo Credit Memo

and Applies on Deposit

Payment Request
Refunds the Receipt

Updates
EMD Status as Review and Pay
Refunded

End
End

Figure 18: EMD Refund Process

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 EMD Forfeit Process

Sourcing
Sourcing AR
AR

Emd Admin AR Auto Invoice

Initiates Concurrent Program
Forfeit Process on a Case
to Case basis
Creates Regular
Invoice for the
Amount Forfeited

Checks Receipt
Corporate EMD
Payment Type Cash/Check/
Posts an Adjustment to
Demand Draft
the Deposit to move emd
Reduces to Actual Revenue
Corporate EMD
by Forfeited
Amount
Checks
Finance
Posts Transactions into Integration
pon_emd_transactions Table
Bank Guarantee
End

No

Post Forfeit Details Yes

Yes
Updates status as Forfeiting
in the case of finance
integration else Forfeited Updates
EMD Status as
Forfeiting or Launches Concurrent
Forfeited Request for Forfeiting

Validate Setup Info,

End Transaction Info Of
Forfeiting

Launches
AR Auto Invoice
Concurrent Request
to Create Regular
Invoice & waits for
Process to complete

Updates
EMD Status as
Forfeited

End

Figure 19: EMD Forfeit Process

The EMD Refund action triggers a concurrent program which creates a Receivables Credit
Memo and Payables Invoice. The refund details can be viewed from the Invoices Menu available
in the Oracle Payables responsibility by searching using the generated invoice number.

For the forfeit process, a justification is mandatory. The EMD Administrator is prompted to
enter the justification text for the supplier when the forfeit action is chosen. The concurrent
program will perform the Forfeit action.

Earnest Money Deposit in Oracle Sourcing Page 18

 EMD SETUP

Using the System Administrator responsibility, set the value of the profile option AR: Deposit
Offset Account Source as Transaction Type at the site and responsibility level

Flexfield Segments for EMD Transactions

Using the Receivables, Vision Operations (USA) responsibility, navigate to (N) Setup >Financials
> Flexfields > Descriptive > Segments. Click the Find icon to search for and display the
Receivables Line Transaction Flexfield. The Context Field Values region will display EMD
Transactions in the Code column.

Figure 20: Flexfield Segments for EMD

Unselect the Freeze Flexfield Definition checkbox. A Caution popup appears: Unfreezing this
flexfield and making changes to the segment definitions could affect the validity of the data
already existing for this flexfield. Click Ok to continue.
Click Segments and you can enter the segments for the EMD Transactions. Enter the following
in the Segments window:

Name Window Column Value Set Displayed Enabled

Prompt checkbox checkbo
x
Negotiation Negotiation INTERFACE_LINE_ATTRIBUTE1 120 Checked Checked
Number Number characters
Vendor Vendor INTERFACE_LINE_ATTRIBUTE2 120 Checked Checked
Party Id Party Id characters
Vendor Vendor INTERFACE_LINE_ATTRIBUTE3 120 Checked Checked
Party Site Id Party Site Id characters
Party Party INTERFACE_LINE_ATTRIBUTE4 120 Checked Checked
Contact Id Contact Id characters
Bill Number Bill Number INTERFACE_LINE_ATTRIBUTE5 120 Checked Checked
characters

Earnest Money Deposit in Oracle Sourcing Page 19

Name Window Column Value Set Displayed Enabled
Prompt checkbox checkbo
x
Bill Info Bill Info INTERFACE_LINE_ATTRIBUTE6 120 Checked Checked
characters
Emd Trx Emd Trx INTERFACE_LINE_ATTRIBUTE7 120 Checked Checked
Group id Group id characters
Emd Trx id Emd Trx id INTERFACE_LINE_ATTRIBUTE8 120 Checked Checked
characters

Figure 21: Line Transaction Flexfields

Transaction Type

Using the responsibility Receivables, Vision Operations (USA), navigate to Receivables > Setup
> Transactions > Transaction Types.

Enter information to setup the following transaction types: EMD Deposit, EMD Credit Memo
and EMD Invoice

In the Transaction Types window, the Names should be entered as EMD Deposit, EMD Credit
Memo and EMD Invoice with the Class as Deposit, Credit Memo and Invoice respectively. Also
enter the information for the following fields - Transaction Status, Start Date, Description,
Creation Sign, and Printing Option.

Select the following checkboxes:

o Open Receivable
o Post to GL
o Natural Application Only
Click the Accounts tab (and Deposits Tab for EMD Deposit) and enter the following account
information - Receivable Account & Revenue Account.

Auto-Accounting
Navigate to Receivables > Setup > Transactions > AutoAccounting and select the operating
unit. Search for the Type with a value of Revenue. In the Segment column, the Accounts row
should have a value in the Table Name column.

Earnest Money Deposit in Oracle Sourcing Page 20

 Figure 22: Auto-Accounting

Assigning Sequential Numbering to EMD Entities

Using the System Administrator responsibility, navigate to Application > Sequential Numbering
> Assign > (T) Document.

Application Category Ledger Method

Receivables EMD Credit Memo Vision Operations (USA) Automatic
Receivables EMD Deposit Vision Operations (USA) Automatic
Receivables EMD Invoice Vision Operations (USA) Automatic
Receivables EMD-Cash Vision Operations (USA) Automatic
Receivables EMD-Check Vision Operations (USA) Automatic
Receivables EMD-Credit Vision Operations (USA) Automatic
Receivables EMD-Demand Draft Vision Operations (USA) Automatic

Click the Assignment tab to enter document sequences for each of the EMD categories.

Enter the EMD_Invoice sequence for the following categories:

o EMD Credit Memo
o EMD Deposit
o EMD Invoice

Enter the EMD_Receipt sequence for the following categories:

o EMD-Cash
o EMD-Check
o EMD-Demand Draft

Earnest Money Deposit in Oracle Sourcing Page 21

Batch Source

Using the Receivables, Vision Operations (USA) responsibility, navigate to Setup > Transactions
> Sources > (T) Batch Source to set up a batch source.

Operating Unit: Enter your operating unit

Name: EMD Transaction Source
Type: Manual
Description: EMD transaction sources for transactions from Oracle Sourcing

Select the following checkboxes:

o Active
o Automatic Batch Numbering
o Automatic Transaction Numbering

Enter the remaining information in the Batch Source tab:

Last Number: 999
Reference Field Default Value: interface_header_attribute1
Standard Transaction Type: EMD Deposit
Credit Memo Batch Source: EMD Transaction Source

Similarly, enter the Batch Source for EMD Import Invoice Batch Source (Type: Imported
Description: EMD Import Invoice Batch Source)

Create Memo Lines

Using the same responsibility, create memo lines by navigating to: (N) Receivables > Setup >
Transactions > Memo Lines

Name: EMD Memo Line (Invoice)

Description: EMD Memo Line (Invoice)
Type: Line

Enter Revenue Account, Account Description & Active Dates

Figure 23: Memo Lines

Earnest Money Deposit in Oracle Sourcing Page 22

Payment Terms

Using the same responsibility, enter / confirm the Payment Terms. Navigate to (N) Receivables
> Setup > Transactions > Payment Terms. Enter the following information for creating a new
payment term:

Name: IMMEDIATE
Description: Term for chargeback or debit memo
Base Amount: 100
Discount Basis: Invoice Amount
Effective Dates: 01-JAN-1966
Installment Options: Include tax and freight in first installment

In the Payment Schedule region, enter the following:

Seq: 1
Relative Amount: 100
Due Days: 0

Figure 24: Payment Terms

Receipt Class
Using the Receivables, Vision Operations (USA) responsibility, enter the Receipt Class. Navigate
to (N) Receivables > Receipts > Receipts Classes.

Earnest Money Deposit in Oracle Sourcing Page 23

 Figure 25: Receipt Class

Enter the EMD-Cash Receipt Class information as follows:

Name: EMD Manual

Creation Method: Manual
Remittance Method: Standard
Clearance Method: By Automatic Clearing

In the Receipt Method region, enter the following:

Name: EMD-Cash
Printed Name: EMD-Cash
Effective Dates: 01-NOV-2008

Click (B) Bank Accounts to enter the Remittance Bank information and information in the GL
Accounts Tab.

Bank Account Information required - Operating Unit, Bank Name, Branch Name, Currency,
Account Name, Minimum Receipt Amount, Effective Dates, Select the Primary checkbox

GL Accounts information required – Cash, Receipt Confirmation, Remittance, Bank Charges,

Unapplied Receipts, Unidentified Receipts, On Account Receipts, Unearned Discount, Earned
Discounts, Claim Investigations

Enter the EMD-Check Receipt Class information as follows:

Enter the Receipt Class details in the Receipt Class region:

Name: EMD Manual
Creation Method: Manual
Remittance Method: Standard

Earnest Money Deposit in Oracle Sourcing Page 24

Clearance Method: By Automatic Clearing

Enter the following in the Receipt Method region:

Name: EMD-Check
Printed Name: EMD-Check
Effective Dates: 01-NOV-2008

Click (B) Bank Accounts to enter the Remittance Bank information and information in the GL
Accounts Tab.

Enter the EMD-Demand Draft Receipt Class:

In the Receipt Class region, enter:
Name: EMD Manual
Creation Method: Manual
Remittance Method: Standard
Clearance Method: By Automatic Clearing

In the Receipt Method region, enter the following:

Name: EMD-Demand Draft
Printed Name: EMD-Demand Draft
Effective Dates: 01-NOV-2008

Click (B) Bank Accounts to enter the Remittance Bank information and information in the GL
Accounts Tab.

Receivables Activity

Using the Receivables, Vision Operations (USA) responsibility, navigate to (N) Receivables >
Setup > Receipts > Receivable Activities. Enter the Receivable Activity information as below.

Name: Refunds
Description: Refunds
Type: Refund

Select the Active checkbox

In the Accounting region, enter the following:

GL Account Source: Activity GL Account
Tax Rate Code Source: None
Activity GL Account: 01-000-1223-0000-000
GL Account Description: Operations – No Department – AR/AP Clearing – No sub Account

Earnest Money Deposit in Oracle Sourcing Page 25

 Figure 26: Refunds

Using the Receivables, Vision Operations (USA) responsibility, enter the Receipt Sources.
Navigate to (N) Receivables > Setup > Receipts > Receipt Sources and enter the following
information:

Operating Unit
Name: EMD Receipt Source
Description: EMD Receipt Source

In the Receipt Source Type region, select the Manual radio button
Receipt Class: EMD Manual
In the Batch Numbering region, select the Automatic radio button
Last Number: 102
Enter the Effective Dates

Earnest Money Deposit in Oracle Sourcing Page 26

 Figure 27: Receipt Classes

Navigate to (N) Receivables > Setup >System > System Options. Enter the following
Receivables System Options

In the Accounting tab enter:

Operating Unit
Name
Realized Gains Account
Realized Losses Account
Tax Account
Cross Currency Rate Type: Corporate
Cross Currency Rounding Account
Header Rounding Account

Check(Checkbox)Automatic Journal Import

Check(Checkbox)Header Level Rounding

Days per Posting Cycle

For Customers not using Oracle Financial

If you are not integrating with Financials, then all you need to do is navigate to the
Administration page and specify an operating unit that will not be used with Financials. Also
please ensure that the Enable Integration with Oracle Financials checkbox is un-checked.
However you need to enter the Receivables Payment Type region.

Figure 28: EMD without Oracle Financials

Earnest Money Deposit in Oracle Sourcing Page 27

Ernest Money Deposit
Revision: 1
July, 2009
Authors: Pratima Mahtani, Kanishka Ghosh
Contributing Authors: Mahesh Bharadwaj, Nirajita Mitra

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