Host to Host Fund Capture Process in Oracle R12
This slide provides a before-and-after comparison of payment processing between Oracle 11i and
Oracle R12, highlighting why organizations move to Host-to-Host (H2H) integration, what changes in
the new process, and the resulting business benefits.
Cause of Concern: -
In the earlier Oracle 11i environment, organizations relied heavily on manual or semi-manual
payment file transfers.
Key Issues:
Manual Payment File Transfers:
Every payment batch generated a file that had to be manually moved to the bank’s server.
This made the process slow, errors and heavily dependent on individuals.
Sensitive Data Exposure:
Since files were stored, emailed, or transferred manually, bank account numbers and payment
data were at risk of being exposed. This was a major security concern, especially for
organizations handling thousands of transactions.
Compliance Pressure (PCI DSS, GDPR):
With evolving global compliance standards, file-based processes no longer met security
expectations.
Auditors highlighted gaps such as:
o lack of encryption controls
o insufficient traceability
o weak audit logs
PCI DSS (Payment Card Industry Data Security Standard
GDPR (General Data Protection Regulation)
Overall : The 11i approach lacked security, compliance, speed, and transparency.
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What Change – How Oracle R12 Solves These Issues
Oracle R12 introduces Host-to-Host Integration, which is a modern and secure way to send payment
instructions directly from Oracle to banks.
Key Enhancements:
🔹 Automated Secure Transmission
Payment files are no longer handled manually.
Oracle Payments sends instructions directly to the bank through a secure channel—removing human
intervention and ensuring real-time delivery.
🔹 Advanced Encryption APIs
R12 uses the latest encryption standards and tokenization to secure sensitive financial data.
This ensures compliance with global regulations and eliminates risk during data transmission.
🔹 Audit and Monitoring Enhancements
With Oracle workflows and logs:
each transaction is automatically tracked.
errors are flagged immediately.
audit trails are available end-to-end.
Overall R12 transforms payment processing into a secure, touchless, well-monitored process.
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Impact and Benefit – What the Business Gains
Stronger Data Security
R12 ensures that all payment data is encrypted and transferred securely, satisfying requirements of:
PCI DSS - (Payment Card Industry Data Security Standard)
GDPR – (General Data Protection Regulation)
internal data governance standards
Banks also trust automated channels far more than file uploads.
Full Automation = Faster Processes
No manual steps → fewer delays → fewer errors.
This increases throughput and shortens payment cycles significantly.
Audit Readiness
Since every transaction is:
logged
traceable
fully auditable
organizations can respond quickly during internal or external audits, reducing compliance risk.
Trusted Payments
Secure and predictable processing strengthens:
supplier trust (payments on time, no errors)
bank trust (secure and compliant integration)
Business Impact – lets’say
A manufacturing company processing thousands of payments monthly can now ensure that every
payment is handled securely .
With R12’s host-to-host setup, payment data never leaves the secure channel, reducing audit issues
and ensuring continuous business operations.
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The slide compares the two key host-to-host processes in Oracle R12:
1. Payments Outbound – Oracle sends payment instructions to the bank to pay vendors/parties.
2. Bank Statements Inbound – Oracle receives bank account activity from the bank to update
cash position and perform auto-reconciliation.
Each process uses different Oracle modules, different bank file formats, and a secure SFTP protocol
for transmission.
This table highlights how host-to-host integration works in both directions between Oracle and the
bank.
Payments Outbound
Managed by Oracle Payments and Payables.
Uses formats like ISO 20022 or ACH to send payment instructions.
Purpose is to tell the bank who to pay and how much.
Transmission happens through secure SFTP, using encryption keys.
The process flow is:
PPR → Payment Instruction → File Transmission to Bank.
Bank Statements Inbound
Managed by Oracle Cash Management.
Banks send formats like BAI2, MT940, or CAMT.053.
Purpose is to bring actual bank transactions into Oracle for cash visibility and reconciliation.
Transmission is again through secure SFTP.
The process flow is:
Retrieve File → Load Statement → Auto-Reconciliation.
This comparison shows how Oracle R12 automates both outbound payments and inbound bank
statement processing using standardized formats and secure H2H connections—providing faster
payments, stronger security, and real-time cash visibility.
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Oracle ECC (Enterprise Command Center) – Overview
Oracle ECC provides real-time, role-based dashboards that sit on top of Oracle E-Business Suite
(EBS).
They allow users to search, filter, and drill down into operational data without running reports or
concurrent programs.
ECC comes with pre-built dashboards across modules such as AP, AR, PO, Inventory, Order
Management, Projects, Assets, and more.
📊 Key Features of Oracle ECC Dashboards
1. Real-Time Operational Insights
Data is refreshed instantly through ECC data loaders, ensuring business users always see the latest
transactions.
2. Pre-Built Dashboards for Multiple Modules
Examples include:
Payables Command Center – invoice aging, holds, supplier risk, payment performance
Receivables Command Center – collections, disputed invoices,
Procurement Command Center – PO cycle times, vendor performance
Inventory Command Center – stock visibility, shortages, aging inventory
Order Management Command Center – order fulfilment, bottlenecks
3. Powerful Search & Drill-Down
Users can:
search like Google
click and filter visually.
drill directly into EBS transactions (forms)
4. Highly Interactive Visualizations
Charts, heat maps, KPIs, scorecards, trend graphs, pivot-style filters, etc.
5. No Licensing Cost (Included with EBS)
ECC is provided free for EBS customers (no additional license required).
Co 🏁 Simple Summary for Presentation
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nti It provides prebuilt dashboards that help organizations identify issues faster, improve operations, and
al- make data-driven decisions.
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