What is EMD ?
EMD Stands for Earnest Money Deposit.
Earnest Money Deposit (EMD) indicates to the buying organization that the supplier is ready to enter a bid/quote for the negotiation and is serious about participating in the negotiation.
What are Types of EMD ?
1.Direct payment -- This is an EMD amount that can be paid using the following payment types: Cash, Check, Demand Draft.
2.Corporate EMD -- In this Type Supplier Deposits a One Time Large Sum of Money . For Every Negotiation, the Supplier Participates, the EMD will be Deducted from the Corporate EMD and Balance Remains as Corporate EMD.
3.Bank Guarantee -- The Supplier's Bank Will create a Document to inform the buying organization that supplier can make EMD payment if required. The bank stands as guarantor for supplier and document is made with effective expiration date usually a few days after negotiation close date.
How to enable EMD in oracle Sourcing Documents.
Navigation Oracle Sourcing -->Administration--> Negotiation Configuration
Check the Enable Earnest Money Deposit
Even After This Setup, Each Document Can be Created With or Without EMD.
On the Create Document , Header if Enable EMD Flag is Checked, EMD Details Tabs Will be Visible.
If the Enable EMD Flag is Unchecked, EMD Details Tabs Will not be Visible.