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 Earnest Money Deposit in
Oracle Sourcing

Sirisha Padmala
Senior Principal support engineer
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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