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Manage Payments Business Process
Prepare and Record Payments
An Overview of Payments Process

Author:
Version:
Created:

Vijaya Gudipati
1.0
14th June 2011

Manage Payments - Prepare and Record Payments

1.

Table of Contents

INTRODUCTION
Objectives ..3
Purpose and Scope ....3
Glossary Terms ..4
PREPARE AND RECORD PAYMENTS
Create/Edit Payables Payment ..5
Manage/View Payments .9
Manage Payment Process Request Templates ...13
Reissue Payables Payment ....14
Stop Payables Payment .15
Submit Cash Requirement REPORT ..17
Void Payables Payment ....19
Setup Options .22

Manage Payments - Prepare and Record Payments

2.

Introduction

2.1.1

Objectives: Manage Payments

Manage Process and Account Payments to suppliers and employees which will enable and
confirm the system that they are paid and accounted accurately.
Once invoices are approved (if workflow enabled) and validated then Prepare and record
payment explains about the different scenarios to pay an invoice(s) and account.
2.1.2

Purpose

The purpose of this document is to provide a brief functional design of the Business Process
Manage Payments for Prepare and Record Payments.
This document will describe the existing functionality with the new interface for Single/Batch
Payments and payment related windows.
2.1.3

Features in Scope:

Payment creation

Create a Quick Payment

Create a New Payment: Improved Invoice Search
Record Manual Payment
Batch Payment: Payment Process Request Template, Submit PPR
Post payment creation
Search for Payments
Reissue Payment
Initiate Stop/Cancel Stop on Payment

Manage Payments - Prepare and Record Payments

2.1.4

Void Payment, optionally take Action on Invoice

Terminate PPR

Glossary of Terms

Payment Process Profile (PPP)

A payment attribute assigned to documents payable, payments and payment instructions by
Oracle Payments that includes several types of instructions including specifications for payment
instruction formatting and transmission.
Payment Process Request (PPR)
A Payment Process Request is a request created by a source product for Oracle Payments
payment services. The payment process request originates in the source product during the
documents payable selection process and contains:

One or more documents payable to be paid,

Information that allows Oracle Payments and the source product to identify the request
and
The source product may submit payment process requests to Oracle Payments via user
action or concurrent program.

Payment Method
A payment attribute on a document payable. The payment method indicates the medium by
which a first party payer makes a payment to a third party payee. Payment methods also include
other information used during the early stages of payment processing, such as validations and
rules that determine how payment methods can be assigned to documents payable.

Manage Payments - Prepare and Record Payments

3.

Prepare and Record Payments

3.1

Create/Edit Payables Payment

Pay Invoice through Pay in Full

To make Online Payment from Invoice Actions, select Pay in Full from Invoice Actions after
invoice is validated.

Enter the Payment Document details and submit.

On Submit, Payment is done and invoice summary show status as Paid.

Manage Payments - Prepare and Record Payments

 Single Payment
A Single Payment is a one-time, nonrecurring payment done in real time by user.
There are three types of Single Payments in Fusion payables:

Quick Payment where a payment is created and recorded automatically.

Manual Payment where the recording of the payment is created outside the App.
Refunds: where a negative payment is recorded.
Quick Payment
This feature is needed for paying documents payable (invoices, expense reports,
prepayments, debit/credit memos and Payment Requests) outside a Payment Process
Request.

Documents can be selected regardless of the payment terms, payment method, or due
date. For example, you can create a Quick payment for an invoice that is not yet due.
The payment can be made either electronically or by check (printed).
User pays an invoice with a single payment instead of a Payment Process Request.
If the Print Now box is checked at payment creation time, the payment will be printed
immediately to a printer that the user chooses from a list of values.
If the Create Accounting box is checked at payment creation time the accounting will be
created immediately. User has a choice to decide whether the accounting should be draft
or final.
Manual Payment
When you create a payment outside of the system, you can record the payment and
update the invoices that you paid.
A Manual payment is the typical way to record a wire transfer.
As a manual payment is only recorded in Payables, and not actually sent out, the user
can override some payment controls. For example, a single payment can be recorded for
multiple Pay Alone invoices. A single payment can also be recorded for supplier invoices
that have the Hold All Payments supplier option enabled.
Refund Payment
A refund closes out an outstanding credit balance with a Third-Party. (A third-party may
be a customer or a supplier)
Note:

As the payment amount is negative, automatic withholding taxes do not apply to

refunds.
Interest payment is not calculated for refunds.

Manage Payments - Prepare and Record Payments

The option to apply available discounts is provided in refunds.

The user pays a debit or credit memo. A refund is a payment in a negative amount. The
user is required to enter a paper check number to facilitate automatic reconciliation in
cash management. In event the supplier only sends a credit memo and no check, the
credit memo will be netted out with future invoice payments and no refund would be
recorded.

Login with SUPERVISIOR role to make a Single Payment

Select Payments > Create Payment from right navigation pane:

Enter all Payment details with mandatory fields Business Unit, Payee, Payment Date,
Disbursement Bank Account, PPP, Payment Method and upon all selecting Payment Type as
Quick/Manual/Refund.
Advanced Tab is to the advanced Options like Account and Post to GL, Print Now. Bills Payable
and Conversion options like Currency rate, Conversion type and Conversion date.
Click Actions > Select and Add: Invoices to Pay

Manage Payments - Prepare and Record Payments

Batch Payment: Payment Process Request

A Payment Process Request (PPR) is a request created by a source product for Oracle
Payments payment services. The payment process request originates in the source product
during the documents payable selection process and contains:
(1) One or more documents payable to be paid,
(2) Information that allows Oracle Payments and the source product to identify the request and
(3) Optional payment processing instructions. The source product may submit payment process
requests to Oracle Payments via user action or concurrent program.

Manage Payments - Prepare and Record Payments

On Submit Payment process request, status change for Pending proposal payment review.
Review the installments and resubmit the process to complete the payment process.

Manage Payments - Prepare and Record Payments

On completion of the process, status changes to Payment completed. Payment file is now
transmitted.

3.2

Manage/View Payments

Manage Payables Payments

View Payables Payment
Manage Payment Process Requests
View Payment Process Request

There are four steps in the processing of a PPR.

a) Document selection
b) Build Payments
c) Format Payments
d) Confirm Payments
Document selection and Confirm Payments are handled by Payables (AP) code while Build
Payments and Format payments are handled by Payments (IBY) code.
Manage Payments

View Payment
Enter Payment number to search
Click on Payment Number to view the details of Payment made.

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Manage Payments - Prepare and Record Payments

View Payment Process Request

To view batch payment that are completed, Click the Manage Payment Process Request from
right navigation pane.
Or Payment workbench Overview page shows the summary of:

Payment Process Request with Requiring Attention, Request Completed, Request

Terminated
Payment files Requiring Attention
Stop Payment Requests
Supplier Sites on Payment Hold
Schedule Requests or processes

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Manage Payments - Prepare and Record Payments

Manage PPR

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Manage Payments - Prepare and Record Payments

3.3

Manage Payment Process Request Template

A payment process request template predefines invoice selection criteria, payment attributes,
processing instructions, and specifies how validation failures should be handled.
Payment process request templates enable you to:
Minimize data entry by saving you from re-keying frequently used values, which simplifies and
expedites pay runs.
Retrieve cash requirements for the invoices that will be selected for payment by running the
Schedule Cash Requirements Report.
Schedule payment process requests to run on a repeating basis.

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Manage Payments - Prepare and Record Payments

 Submit specific payment process requests by specifying a template that is used as a parameter
and which contains all the information needed for submitting the particular payment process
request.
Use a template as a starting point for submitting pay runs.

3.4

Reissue Payables Payment

A payment can be reissued when the original was damaged or otherwise could not reach the
payee. For example, when a paper check is damaged during printing or a check is returned due
to an incorrect address.
Reissuing a payment means that the original payment is automatically voided and the new
payment is issued using the information provided by the user (new check number, new payment
date, new exchange rate (applicable to foreign currency payments), and voucher number (if
sequencing is used)).
A payment may be reissued only if:
1. Select the Allow Void and Reissue check box in the Payment tab of the Payables Options
page.
2. The payment is not a bills payable.
3. The payment Status is negotiable.
4. The payment is not a refund
5. The payment is not a manual payment.
6. The payment was not created via PPR
7. The payment processing type should be printed
Note: Reissuing a payment on a prepayment that has been applied to an invoice is allowed.
Though you cannot void such a payment.

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Manage Payments - Prepare and Record Payments

3.5

Stop Payables Payment

When you void a payment, or confirm a stop payment, Payables automatically reverses the
payment status and accounting records for the invoices that you paid. Payables automatically
reverses and voids interest invoices associated with a void payment or stop payment.
Related Features:- Initiate/Cancel Stop on payment.
Setup Prerequisites:- Status of Payment is negotiable (quick payments) or issued(bills
payable).
Initiate Stop

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Manage Payments - Prepare and Record Payments

 Stop Initiated

Cancel Stop returns Payment to Negotiable status

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Manage Payments - Prepare and Record Payments

3.6

Submit Cash Requirement Report

Use the Cash Requirement Report to forecast your immediate cash needs for invoice payments.
You can submit this report before every payment batch to determine your cash requirements for
the batch. You can also submit this report for the next two or three payment batches to forecast
your cash requirements for the future and improve your cash management.
This report lists unpaid or partially paid invoices that match parameters you enter. The report
does not include cancelled or fully paid invoices.
If you submit the Cash Requirement Report with No for the Summary Option parameter, the
report lists all unpaid or partially paid invoices for a currency, by payment date and supplier
name, starting with those invoices with the earliest due or discount date. Payables subtotals the
amount due for each supplier and then for each payment date.
If you submit the Cash Requirement Report with Yes for the Summary Option parameter, the
report lists the cash requirements by supplier for each currency and each payment date without
displaying each invoice.

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Manage Payments - Prepare and Record Payments

Click Monitor and Submit Jobs to view the status of the job process.
Click Report name to view the output of the report and log details to download.

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Manage Payments - Prepare and Record Payments

3.7

Void Payables Payment

The user can void a payment by providing a Void date and a GL date for the void.
A payment can only be voided if the status of Payment is negotiable, stop initiated (or issued in
the case of a Bills Payable). If the payment being voided has been made for any prepayment
invoice AND if that prepayment has been applied to a standard invoice then payment cannot be
voided.
Void allowed on all kinds of payments with few restrictions:

You cannot void a payment for a prepayment that is applied. You must first unapply the
prepayment, and then you can void it.
You cannot initiate a stop payment for a prepayment that is applied.
You cannot reissue a payment for documents with bills payable or electronic payment
method.

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Manage Payments - Prepare and Record Payments

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Manage Payments - Prepare and Record Payments

4.

Setup Options
Login with Admin Privileges.
Setup > Payables Options: Payment

Payments > FD Payer setup

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Payments > Payment Methods Defaulting rules Setup Options

Manage Payments - Prepare and Record Payments

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Manage Payments - Prepare and Record Payments