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R11i: XTR: Earnest Money Deposit In Oracle Sourcing (Doc ID 980912.1)

Last updated on JANUARY 30, 2022

Applies to:

Oracle Treasury - Version and later
Oracle Risk Management - Version and later
Oracle Sourcing - Version and later
Information in this document applies to any platform.


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 amount is decided by the buying organization and all suppliers (except those who are exempted from paying the EMD amount based on organization specific business rules) are required to pay the EMD amount. The EMD amount is retained by the buying company till the negotiation is closed. After the negotiation is closed (or awarded), the EMD amount is refunded to all the suppliers. In a case where the supplier has not conformed to the rules of the negotiation, the EMD amount can be forfeited, that is, the buying organization does not return the amount to the supplier and keeps it as a penalty charge.
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.


NOTE: In the images below and/or the attached document, user details / company name / address / email / telephone number represent a fictitious sample
(based upon made up data used in the Oracle Demo Vision instance). Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.



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).


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