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Earnest Money Deposit in Oracle Sourcing

Sirisha Padmala Senior Principal support engineer

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Objectives

To understand the concepts of EMD

To understand how to enable and use EMD in Oracle Sourcing

To understand how various EMD processes integrates with Oracle financial modules like AR/AP

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AGENDA

• Introduction • Setup Steps • Demonstration • Trouble Shooting • Q & A

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INTRODUCTION Earnest Money Deposit (EMD) is a payment/deposit that suppliers are required to make to a buying organization in order to be eligible to participate in a Sourcing negotiation.

EMD is common in Public Sector companies and Federal / Government organizations.

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INTRODUCTION The EMD amount is decided by the buying organization and all suppliers (except those who are exempted based on organization specific business rules) are required to pay the EMD amount in order to participate in the negotiation process (RFQ, Auction).

The EMD amount is retained by the buying company until the negotiation is closed.

After the negotiation is closed (or awarded), the EMD amount is refunded to the suppliers

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INTRODUCTION Types Of 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.

Direct Payment »Cash »Demand Draft »Cheque »Corporate EMD

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INTRODUCTION 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.

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SETUP STEPS

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Live Demo

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SETUP STEPS

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SETUP STEPS

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SETUP STEPS

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TROUBLE SHOOTING

Review the error details shown in View Errors link in EMD Transaction screen.

To debug further, enable fnd logging and review fnd_log_messages for identifying the cause of the error.

Follow this to enable fnd logging

How to enable and retrieve FND debug log messages [ID 433199.1]

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Summary

Setup steps required to enable EMD in oracle sourcing Creation of a negotiation with EMD

enabled Payment of EMD through various

modes Integration of EMD receipt process,

refund process and Forfeit process with Oracle financial modules like AR and AP

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Top Articles

Earnest Money Deposit in Oracle Sourcing [ID 980912.1]

FAQ - EMD - Earnest Money Deposit in

Oracle Sourcing [ID 1071867.1]

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Questions & Answers

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THANK YOU

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