In 11i, we used Payment Batches to pay multiple invoices same time. In R12, PPR is the replacement for 11i Payment Batches. Release 12 payment setup enables a Payment Administrator to select multiple invoices for payment by selection criteria and he can pause the invoice selection and payment build process . During the invoice selection review, payment manager can review the selected invoices, the invoices that met the criteria but were either not validated or were not approved and hence did not get included in the payment process request. He can adjust the invoice selection by adding or removing the invoices and can also review the cash requirements. While reviewing the payments, payment manager can dismiss individual documents or payments if necessary, and restart the payment build process.
Frequently Used Terms..
Oracle Payments is an e-Business Suite module Payables will leverage to group invoices into payments, create instructions, and print or communicate with the bank. Payment Manager(OA page) is the function you can access it from Payables respondibilty.
Navigation Path: Payables->Payments:Entry->Payment Manager
A business action to select multiple invoices on a regular basis to be processed for payment. This may also be referred to as creating and processing payment batches and, in this release, managing a payment process request through completion
Payment Process Request
The payment process request is the selection of invoices into a group for payment processing.
Information compiled from one or more payment process requests that is formatted and either transmitted to a financial institution for payment or used in-house to print check documents..
Templates provide a way to store section criteria, payment attributes, and processing rules that can be reused for single pay runs or scheduled pay runs.
Payment Manger Page
There are five tabs under payment manger.
The Home tab on Payment Manager Dashboard presents the useful information for a Payment Manager to:
- Monitor the progress of the recent pay run processes
- Highlight any payment processes that require attention and automatically prompt to take appropriate actions.
- Shortcuts and Tabs for initiating, reviewing and adjusting proposed funds disbursements
Using Payment Manager dashboard, a Payment Manager can perform all the tasks associated with pay run process. In the Template tab he can click the “Create” button to create new templates. He can also query a template and then use it to submit or schedule the payment process requests and run cash requirements before a pay run.
3.Payment Process Requests(PPR)
Payment Process Requests tab can be used to submit a single payment process request or schedule the repeating payment process requests. The pending action on the payment process request can be performed using “Start Action” icon and the payment request can be cancelled using “Cancel” icon. Clicking on the Payment Process request name, payment manager can drill down to the details.
Process Automation tab in PPR
The pay run process itself provides for processing steps that you can pause for review based on your needs. In Process Automation tab, the payment manager can specify up front whether the pay run process should pause for review or if the payment process will be fully automated. Of course, if issues arise during processing that require user input, the process will pause regardless of these options.
Processing options in Process Automation tab
- Maximize Credits: If Maximize Credits checkbox is enabled then during invoice selection, if there is any credit for a payee, after interest and payment withholding calculations the system will group all scheduled payments for the payee site together to be paid on one payment, and if the sum is negative, the system will reduce the credit amount so the sum is zero.
- Stop Process for Review After Scheduled Payment Selection
- Calculate Payment Withholding and Interest During Scheduled Payment Selection
- Stop Process for Review After Creation of Proposed Payments
- Create Payment Instructions option
If the user wants immediate payment instructions creation, the user can set this option to start the payment instruction program immediately when the payment process request has a Completed status. This option has an additional function: It ensures that payments from this payment process request will not be combined with payments from other payment process requests when the system builds the payment instructions.
the user can set the option to wait until the Payment Instruction Program is submitted, typically, in this case an enterprise would schedule the Payment Instruction Program to run periodically. An enterprise would choose this option to take all built payments from multiple payment process requests and build fewer payment instructions.
Payment Manager can use the Payment Instructions tab to review the status of the payment instructions and if required, can perform any subsequent actions. He can also drill down into the details of the payment instruction and can void all the payments in the instruction.
Payment Manager can use the Payments tab to review the status of the payments created by his payment process requests. He can also can drill down into the details of the payments to stop or void the payments.
Steps in Pay Run Process
Managing a Pay Run involves 3 main processes:
1)Selection of the invoices for payment
2)Grouping the invoices into payments
3)Building the payment instruction files to either print checks or send instructions to the bank.
Follow red mark numbers in the picture to get the sequence of process steps in Pay Run Process
1. Invoice Selection
After user submits PPR, the Payment Process request completes with the status “Invoices Pending Review” if it has been configured to pause after the invoice selection. Clicking on “Start Action” icon navigates the user to the “Selected Scheduled Payments” page.
On the “Selected Scheduled Payments” page, Payment Manager can review the total count of selected scheduled payments. Amount remaining , discounts, payment amount, and interest due can also be reviewed for each currency in the payment process request.
The page also lists all the invoices along with their details. Payment Manager can add or remove the scheduled payments or modify the Discounts and payment amounts.
Clicking on the “View Unselected” takes the Payment Manager to a “Unselected Scheduled Payments” page that gives the following information:
Counts for invoices that were never validated and that failed validations
Counts for invoices that require approval and where approval is rejected
Counts of invoices on Scheduled Payment Hold and Supplier Site hold
Counts where Payee total is zero or less and where Discount rate is too low
Count of Unselected Payment Schedules, Total Amount, and Discount per currency
List of Invoices with invoice information and reason for not getting selected
Payment Manager can add more Scheduled Payments by clicking on the “Add Scheduled Payments”, and choosing the search criteria for the documents payables from the list of values.
Once the Payment Manager is done reviewing the payment process request, he can click on the “Submit” button to initiate the Payment creation process. This action also generates the Scheduled Payment Selection
The Payment Process will complete with the status “Information Required – Pending Action” if certain information required for the payment creation was missing on scheduled payments. Clicking on “Start Action” icon navigates the user to the “Complete Document Assignments” page.
2.Grouping into Payments
The Payment Process request completes with the status “Pending Proposed Payment Review” if it has been configured to pause after the creation of proposed payments. The payment process request also displays the count for documents that were rejected during payment creation. Clicking on “Start Action” icon navigates the user to the “Review Proposed Payments” page.
In the Review Proposed Payments page, payment manager can review the payment information for the selected scheduled payments.
After reviewing, payment manager can then specify the action “Run Payment Process” to submit the Payment build process. After this action, the payment process request has the status of “Assembled Payments”.
Payment Manager can drill down to view payment details by clicking on the Payment Process request link. He can view the number of payments, documents, and Total Payment Amount per currency. Individual payments are also listed along with more information. By selecting the radio button of a payment, payment manager can view the scheduled payments that got included in that payment.
Clicking on “Rejected and Removed Items”, Payment manager can navigate to see the details for scheduled payments that got rejected/removed.
Rejected and Removed Items page lists the rejected document payables, and clicking on the reference number link you can view the details of the document and the reason it got rejected.
3.Building Payment Instructions
For creating Printed payment instructions, Payment Manager can specify the criteria for selecting payments and printing information. The criteria can include the Payment Process profile, Currency, Internal Bank Account, Payment Document, Payment Process Request, etc.