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:
EFT (Electronic Funds Transfer)
WIRE (is more expensive but faster the EFT)
CHECK
CLEARING
Check: You can pay with a manual payment, a Quick payment, or in a payment batch.
EFT (Electronic Funds Transfer) :
An electronic funds transfer to the bank of a supplier.
You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank.
For both methods, Payables creates a file during payment batch creation.
If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.
WIRE:
Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a supplier.
A payment method where you pay invoices outside of Payable by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds.
You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction.
Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.
You can use a payment method to pay one or more suppliers.
Oracle Payments supports several payment methods for funds disbursement, including the following:
EFT (Electronic Funds Transfer)
WIRE (is more expensive but faster the EFT)
CHECK
CLEARING
Check: You can pay with a manual payment, a Quick payment, or in a payment batch.
EFT (Electronic Funds Transfer) :
An electronic funds transfer to the bank of a supplier.
You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank.
For both methods, Payables creates a file during payment batch creation.
If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.
WIRE:
Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a supplier.
A payment method where you pay invoices outside of Payable by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds.
You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction.
Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.
Clearing:
Clearing Payment for invoices transferred from another entity within the company without creating a payment document.
Payment method you use to account for inter company expenses when you do not actually disburse funds through banks.
You do not generate a payment document with the Clearing payment method.
When you enter the invoice, you enter Clearing for the payment method.
You can record a Clearing payment using a Manual type payment only.
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