To define a payment method:Use the Organizational Payment Method window to define payment methods for your enterprise.
From this window, you:
Supply the name and starting date of your payment method.
Enter the details of the source bank account from which your enterprise makes the payment.
Specify the General Ledger (GL) accounts that hold reconciliation and error details for the payment method.
Handle costing for the payment method. For example, you can specify whether to transfer the costs to GL and whether costing applies to cleared payments only, uncleared payments only, or a combination of cleared and uncleared payments.
Confirm that your source bank account in Oracle Payroll is the same bank account that Oracle Cash Management uses to clear your payments. This confirmation assures you that you are operating with a single consistent bank account rather than with duplicate accounts that introduce accounting errors.
To define a payment method:Supply a name and start date for your payment method
Set your effective date so that it reflects the date when you want to begin using this payment method.
Enter a name for the payment method, and select the payment method type.
For a third-party payment method, always select the type Check/Cheque. The default currency for your business group appears automatically.
If an alternative currency exists for your payment method, select it.
If your payment method controls payments to a third party such as a benefits carrier or garnishment receiver, check the Third Party Payment box.
Enter the source bank details for your payment method
Navigate to the Source Bank tab. The Country for your source bank account appears automatically.
Enter the Bank Details field to open the Bank Details window. Enter information about the account from which your enterprise intends to make payments.
If you are using Cash Management, include the following information:
Account Name
Account Type
Account Number
Bank Name: If this already exists, enter the name exactly as it appears in Accounts Payable.
Bank Branch: If this already exists, enter the name exactly as it appears in Accounts Payable.
Italy Users: You can enter the Bank Name, Bank Location, Account Number, and Account Name. The IBAN Account displays by default.
Ensure that you enter any additional bank details that are specific to your enterprise. For example, bank details for U.S. payment methods always require a transit code. The transit code, or transit routing number is the nine-digit number that identifies the financial institution. If the transit code is incorrect, the funds will not be posted to the account.
South Africa Users: Enter the account holder's name and indicate whether the account holder relationship is joint, own, or third party.
Belgium, Denmark, Finland, France, Germany, Hungary, Ireland, the Netherlands, Norway, Poland, Russia, Spain, and Sweden users: Enter the Bank Identifier Code (BIC) and International Bank Account Number (IBAN) in the Bank Identifier Code and the IBAN Number fields, respectively. Note that you must enter at least one of the account numbers, that is, either the International Bank Account Number (IBAN) or the Account Number. If you enter the Account Number, then the Bank Code and Branch Code fields are mandatory.
Warning: Always review the account setup for Oracle Accounts Payable before you define the account in Oracle Payroll. The details for your Payroll account must exactly match the account details in Accounts Payable. Otherwise, Accounts Payable creates an extra account with marginally different details. This duplicate account introduces errors when you reconcile payments between Payroll and Accounts Payable.
Specify what type of payments to cost for this payment method
Navigate to the Costing tab. Each check box indicates a particular type of payment. Check the boxes for each type of payment that you want to cost. When you subsequently run the Costing of Payment process, it costs each type of payment as you have indicated. The entries that you make for an individual check box can imply automatic checking of related boxes. Your choices are:
Cost Payment: Check this box to specify that you want to cost only uncleared payments for this payment method.
Cost Cleared Payment: Check this box to specify that you want to cost only cleared payments for this payment method. If you check this box, the Cost Payment box is also checked by default.
Cost Cleared Voided Payment only: Check this box to specify that you want to cost any voided payments that have also been cleared by Oracle Cash Management. If you check this box, the Cost Payment and Cost Cleared Payment boxes are also checked by default.
Exclude External/Manual Payment: Check this box to exclude any external/manual payments from costing. This exclusion is useful if you are using this payment method as a dummy payment method to cancel a previous payment, or if you are making a payment by cash. If you check this box, the Cost Payment box is also checked by default.
Transfer to GL: Check this box to specify that costed payments should transfer to General Ledger. If you check this box, the Cost Payment box is also checked by default.
Specify the GL accounts for this payment method
Navigate to the General Ledger tab.
Select Ledger to indicate the ledger to use if you intend to reconcile payments using Oracle Cash Management.
Select the GL Control Account.
Select GL Cash Account to indicate which cash account to use for the reconciliation of payments.
The entry for Description appears automatically by default, depending on what you enter in the GL Cash Account details.
Select the Cash Clearing Account.
Select the Error Account.
When you first specify the GL accounts for a bank account, these then become the default GL accounts for any other payment methods that use the same bank account. The defaults apply for all new payment methods using the bank account. They also apply retrospectively for any existing payment methods that were already using the same account. However, you can override these defaults by entering your preferred GL accounts on the General Ledger tab.
At this point, check that your Payroll setup and Cash Management setup are fully integrated.
Confirm that you can reconcile payments in Cash Management
Navigate to the Cash Management tab. You cannot change the information on this tab, but you can confirm that your GL accounts are correct.
To confirm that Oracle Cash Management is operating with the same source bank account that you are using in Oracle Payroll, view the check box. If the box is checked, then Oracle Cash Management holds the bank account for this payment method, and you can reconcile payments knowing that you are using an identical account in Payroll, and in Cash Management.
However, if the box is not checked, this indicates that Oracle Cash Management does not hold the details for your Payroll account. This may indicate that duplicate accounts exist and you should exercise caution when you reconcile your payments.
Enter further information for the payment method
Enter further information to determine how to process this payment method. Click in the Further Information field to see the range of further information for your enterprise.
For Japan users only: Enter the company code and company name. Select the delimiter type for the Direct Deposit file.