Fusion Financials White Paper Manage Payments Business Process Prepare and Record Payments

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1 Fusion Financials White Paper Manage Payments Business Process Prepare and Record Payments An Overview of Payments Process Author: Vijaya Gudipati Version: 1.0 Created: 14th June

2 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 Reissue Payables Payment Stop Payables Payment. 15 Submit Cash Requirement REPORT.. 17 Void Payables Payment Setup Options.22 2

3 2. Introduction 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 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 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 3

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. 4

5 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. 5

6 Single Payment A Single Payment is a one-time, non recurring 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: 6 As the payment amount is negative, automatic withholding taxes do not apply to refunds. Interest payment is not calculated for refunds.

7 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 7

8 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. 8

9 On Submit Payment process request, status change for Pending proposal payment review. Review the installments and resubmit the process to complete the payment process. 9

10 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. 10

11 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 11

12 Manage PPR 12

13 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. 13

14 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. 14

15 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 15

16 Stop Initiated Cancel Stop returns Payment to Negotiable status 16

17 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. 17

18 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. 18

19 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. 19

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21 4. Setup Options Login with Admin Privileges. Setup > Payables Options: Payment Payments > FD Payer setup Payments > Payment Methods Defaulting rules Setup Options 21

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