Electronic payments

[kommineni7]

Hi,

In Eletronic payment method

pls. clarify the following...

1) What is the functionality of posite pay file. is it applied to only electronic type of payment method?

2) what is remittance adice functionality in electronic payment method? is it a file generated by system to transfer to bank?

3) is there reconciliation for eletronic payments b/w payables and cash management?

4) payment batch with electronic payment method - after confirmation what are the next steps until actual payment?

pls. attach any documents relating to electronic payment method..

Thanks in advance,
Venkatesh

[oteixeira]

Hello.
1)Yes. It is the file that you send to your bank with the bank accounts and amounts to be transferred to your suppliers.
2)Yes, you can set up the remmitance advice to be sent to your suppliers via e-mail, for example.
3)Yes
4)After confirmation the system should create the positive file.

Octavio

[kommineni7]

Thanks for your reply Octavio

can u explain bit clear on the Remittance adivce functinality.. is there any program to generate the remittance advice..

in the same way to posite pay file - which program has to be run to generate this file.. how can we transfer to bank..

[oteixeira]

Hello.
Navigate to Setup/Payment/Formats and choose your payment format. In the Remittance area you can choose when to generate it.
About your question of transfer to bank, I believe you are talking about the positive file, because the purpose of the remittance is to inform the supplier about the payment details.

Octavio

[mpotdar]

Venkatesh

here are replies to your questions.

1) What is the functionality of posite pay file. is it applied to only electronic type of payment method?

POSITIVE PAY is ONLY applicable to PRINTED CHECKs and i guess BANKING SERVICE available ONLY in US.

IT IS NOT APPLIABLE TO ELECTRONIC PAYMENTS / WIRE PAYMENTS

To avoid check frauds, organization can send complete Check details to Bank (check Number, Payee details, Amount, Date, etc). Bank before clearing checks received from Vendors validates Physical check information with POS PAY file. If matched Positively Pays to Vendor.

2) what is remittance adice functionality in electronic payment method? is it a file generated by system to transfer to bank?

Depending on Payment format you select or your Custom file format, Oracle generates Payment file + Remittance information in one EFT file and sends it to bank. In US this information is exchanges between Check Issuing bank and Check receiving bank and ulitimately provided to receiving party as part of LOCKBOX so that receiving entity can automatically create a receipt in any ERP or Acctg system and apply it against open Invoices in their AR system.

3) is there reconciliation for eletronic payments b/w payables and cash management?

Yes, it depends on what kind of details bank statement provides.
In US generally Bank statements shows a Consolidated DEBIT unless an Organizations subscribes to a paid service of receiving detailed bank statements.

If your organization has not subscribed to this service, reconciliation of EFT payments with Bank Statement line is manual.

Otherwise automatic reconciliation is possible with auto reconciliation functionality.

4) payment batch with electronic payment method - after confirmation what are the next steps until actual payment?

If any Oracle out of box Payment formats are used, EFT file is generated in a specific folder in AP_TOP (Refer AP User guide). For custom payment formats, it will be controlled by your custom program.

You would need to send this file to your bank (depending upon Bank's accepted File transfer mechanism)

Regards
Mrunal

[kommineni7]

Thanks Q Very much Mrunal