Note: If you intend to use funds capture functionality, you must complete Steps 13 to 18 as described below. If you do not intend to use funds capture functionality, you do not need to perform Steps 13 to 18.
A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:
Checks
Electronic Funds Transfer (EFT)
Bills Payable
Wire
The purpose of creating funds disbursement payment methods is to:
define the payment methods you want to use to make payments
define rules to default payment methods onto documents payable
assign validations to be run on documents payable, payments, and payment instructions
Creating a funds disbursement payment method in Oracle Payments is comprised of the following tasks:
entering general information
creating usage rules
assigning validations
If, after completing the Create Payment Method: General page, you click the Review button, the system navigates to the Create Payment Method: Review page and skips the remaining tasks in creating a payment method. The system inserts, however, default values for usage rules and payment field validations. No validations are assigned for this payment method. The Create Payment Method: Review page reflects the default information when you navigate to it by clicking the Review button.
In the Code field of the Create Payment Method: General page, enter a user-defined code, which represents a shortname for the payment method.
Note: For some formats, the payment method field or equivalent must be populated from a list of possible values, defined by the payment system or country. Those lists may not correspond, one-to-one, with payment methods that are seeded in Oracle Payments, or with new payment methods that you create.
To correctly populate the payment method or equivalent field in the format, enter the value of a newly created payment method, as it should appear in the payment file, in the Format Value Mapping field of the Create Payment Method: General page or the Update Payment Method page.
For example, if a formatting template uses a format value of WIRE, but you want to create several new wire payment methods that each have different validations, you can enter WIRE in the format mapping value for each, and that is the value that will appear in the payment file for all payment instructions that have those payment methods.
In the Anticipated Disbursement Float field, enter a value that represents the number of days after submission of the payment instruction until the funds leave the first party payer's account.
Bills payable is a payment method involving the transfer of funds between bank accounts, where one party promises to pay another a specified amount on a specified date. If you wish to create a payment method that is used only for bills payable, you must enter a value in the Maturity Date Calculation field. This value represents the number of days to add to today's date to determine the bills payable due date.
Usage rules specify when a payment method is available for use by source products for documents payable. When you create usage rules, you enable or disable payment methods for each product integrated with Oracle Payments. By defining or not defining conditions for each product with an enabled or disabled payment method, you can effectively provide different usage rules for different source products and change whether and when the payment method is available.
The Availability column on the Create Payment Method: Usage Rules page defaults an availability of Always, which means that the payment method for the applicable product is always available and it also implies that no conditions have been set. The value in the Availability column is read-only and reflects whether conditions have been defined for the applicable product on the Usage Rules: Update Conditions for <product name> page.
The payment method that the source product user sees in the source product, depends on the usage rules specified in the Create Payment Method: Usage Rules page.
The following table shows the relationship between the definition of payment method conditions and the availability of payment methods for source products on the Create Payment Method: Usage Rules page.
Relationship Between the Definition of Payment Method Conditions and the Availability of Payment Methods for Source Products
| Availability Column Displays... | Conditions for the Payment Method | Enabled Check box |
|---|---|---|
| Always | No Conditions Set | Selected |
| Conditional | Conditions Exist | Selected |
| Never | No Conditions Set | Selected Enabled Check Box is Deselected |
In the Usage Rules: Update Conditions for <Product Name> page, the First Party Organization subregion uses access control security so that when you click the Add button, you only see the first party organizations to which you have access. That is, you can only add first party organizations to which you have access.
If, after completing the Create Payment Method: Usage Rules page, you click the Review button, the system navigates to the Create Payment Method: Review page and skips the remaining tasks in creating a payment method. The system inserts, however, default values for payment field validations. No validations are assigned for this payment method. The Create Payment Method: Review page reflects the default information when you navigate to it by clicking the Review button.
When the source product user is entering an invoice in Oracle Payables, for example, the source product user enters data for all the variables indicated on the Usage Rules: Update Conditions for <product name> page. This data includes the organization and the legal entity to which the invoice belongs, as well as the payment processing transaction types available for use on the payment method, such as customer refunds, loan funding, payables documents, employee expense reports, bank account transfers, and adhoc payments. All of the data you specify on the Usage Rules: Update Conditions for <product name> page is entered on the invoice in Oracle Payables before the Oracle Payables user selects the payment method.
Assign the validations you want performed for each document, payment, or payment instruction that uses this payment method. For detailed information on validations, see Document Validation Flow (F5) or Payment Instruction Validation Failure Handling Flow (F9).
To update payment methods, you can:
update usage rules by removing or adding conditions
assign or remove validations
To duplicate a payment method, click the applicable Duplicate icon in the Payment Methods page. This action copies the entire original payment method. You can then make changes to the duplicate and save it as a new funds disbursement payment method.