Oracle Sourcing EMD

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.