Use the clearing payment method to account for intercompany expenses when you do not actually disburse funds through banks. For example, your Facilities group pays the telephone company for your telephone usage. You use a clearing payment to reimburse the Facilities group for your group's telephone expense. You can process invoices with clearing method in payment batches. Document is available in the Payment Batch list of values. You can also confirm and autoconfirm clearing payment batches.

Payables accounts for the invoice and payment transactions in the same way it does for all invoice and payments. See Accounting Methods.

Creating Clearing Payments

The information below describes prerequisites and the procedure for creating clearing payments.

Prerequisites

• Define a bank account with at least one payment document that uses a format defined with the Clearing Payment Method. See: Bank Account Model Overview, Oracle Cash Management User Guide.

• Enter an invoice for the transaction, and enter Clearing as the payment method.

To create clearing payments:

1. In the Payments window select Manual in the Type field. Enter the Bank Account.

   Enter a Payment Document name that uses the Clearing payment method. Enter the payment Document Number.

   If you selected a multi-currency payment document, optionally change the Payment Currency.

2. Enter either the Supplier Name or Number, and enter the Supplier Site.

   Enter the Payment Amount.

3. If necessary, enter or adjust other information:

   • If you are generating a payment document and you need to change the address, and your Allow Address Change option is enabled in the Payables Option page, Payment tab, adjust the address.

   • If you record voucher numbers either manually or using Sequential Numbering, enter or review voucher information.

   • If the payment currency is different from your functional currency, enter exchange rate information. For more information, see Foreign Currency Transactions.

4. Choose Enter/Adjust Invoices to navigate to the Select Invoices window. Select the invoices you want to pay. The sum of the invoices must equal the payment Amount you entered.

5. Optionally choose Invoice Overview to see detailed information about an invoice.

6. Save your work.

   Oracle Payables records your payment and updates the invoices as paid.

Other Sources

• Selecting Multiple Records, Oracle E-Business Suite User Guide