12. Processing Vendor Payments

This chapter explains process of making supplier/vendor payments using direct transfer or issuing Managers Check (MCK) or by onward remittance payment modes. This is done using the ‘Vendor Payment Detailed’ screen. This chapter also explains about independent vendor payment triggered before sale (account initiation). The chapter also discussed how to query on the outstanding vendor payments with respect to an account.

This chapter contains the following sections:

12.1 Vendor Maintenance

This section contains the following topic:

12.1.1 Maintaining Vendor Account Details

You can maintain the details of all the vendors with whom you deal in the ‘Vendor Maintenance’ screen. You can invoke this screen by typing ‘XPDVNMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

In addition to other details, you can capture the following details for a vendor:

Vendor Code

If the vendor is a customer then you can select the vendor code by clicking on the option list. For vendors who are customers of the bank the option list will display the list of CIF values. For vendors who are not customers of the bank you can enter the vendor code in this field.

12.1.1.1 Capturing Vendor Account Details

Credit Account

Select the credit account or GL for the payments to be made by clicking on the option list. This list will display the list of account and GLs. For vendors who are not customers of the bank, any account or GL can be chosen. There will be no validation done against this selection.

Branch Code

The branch, in which the chosen account resides, is displayed here.

Payment Mode

Select the mode of payment from the drop-down list. The options for selection are:

Note

By default, the value will be ‘None’.

For details about the other fields in this screen, refer the section ‘Maintaining Vendor’ in the chapter ‘Maintaining Documents and Vendors’ in the Expense Processing User Manual.

12.2 Vendor Payment Details

This section contains the following topics:

12.2.1 Maintaining Vendor Payment Details

Vendor payment for an account can be made before initiation. You can do this in Oracle FLEXCUBE through the ‘Vendor Payment Detailed’ screen. You can invoke this screen by typing ‘VPDLIQON’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

The following details needs to be maintained:

Payment By

Indicate whether the payment should be made for a single vendor across multiple contracts or for multiple vendors linked to a single contract by choosing the appropriate option:

Payment Reference Number

Here the payment reference number automatically gets defaulted for the current payment.

Product Code

You can select the product code of the payment from the option list. All the contracts displayed under the ‘Payment Details’ will be of same product code.

Fund Identification

You can select the fund id of the payment from the option list. All the contracts displayed in the ‘Payment Details’ will be of Fund Id. If the fund Id is not associated with the payment then fund Id should not be entered.

Transaction Code

You can select the transaction code for the payment from the option list.

Payment Currency

You can select the currency of the payment from the option list. All the contracts displayed under the ‘Payment Details’ will be of same currency.

Value Date

You can specify the value date of the payment.

Account Number

If you have indicated that payment should be made for a single contract, you will have to specify the account number of the contract for which vendor payment has to be made. The adjoining option list displays all valid Islamic Financing accounts maintained in the system for the given product code and currency combination. You can select the appropriate one.

12.2.1.1 Query by Vendor Id

Click ‘Q’ button to query records based on the ‘Payment By’ criterion. If you have opted for making a payment to a single vendor linked to multiple contracts, the system will fetch all contracts along with the asset details for the given ‘Vendor Id’, ‘Product Code’ and ‘Payment Currency’ combination. It will display the result in the ‘Payment Details’ section.

12.2.1.2 Query by Contract

If you have opted for making a payment for a single contract having multiple vendors linked to it, the system will fetch all vendor details along with the asset details for the given ‘Account Number’, ‘Product Code’ and ‘Payment Currency’. It will display the result in the ‘Payment Details’ section.

Total Amount Paid

The total amount paid to the vendor will get defaulted here only after saving the record.

12.2.1.3 Single Vendor Settlement Details

Specify the following details if you have opted to make payment for a single vendor across multiple contracts.

Vendor Code

Specify the vendor Id for the payment. The adjoining option list displays all valid vendor IDs maintained in the system. You can select the appropriate one.

Vendor Name

Once you specify the Vendor Code, the corresponding vendor name is displayed here.

Onward Remittance/ Account Transfer

You can select the payment mode from the options given below:

Refer the section ‘Vendor Credit Advice’ for more information.

Suspense GL

You need to specify the suspense GL from the option list, provided the ‘Payment Mode’ chosen to make the payment is ‘Onward Remittance’.

Vendor Payable GL

Here the system defaults the vendor payable GL for the ‘Product Code’ chosen in the ‘Account Details’ screen.

Vendor Account

You can specify the vendor account from the option list.

Transaction Code

Specify the transaction code to be used for making the payment.

12.2.1.4 Payment Details

You can check ‘Settle’ box to do the payment to one vendor at a time and to query the outstanding vendor payments with respect to a contract.

System captures the ‘Asset Code’, ‘Asset Cost’, ‘Amount Due’ and ‘Amount Payable’ for the particular Asset. However the ‘Asset Cost’, ‘Amount Due’ and ‘Amount Payable’ displayed will be of contract currency, along with details of account numbers. Additionally, the system allows you to capture the payment mode, suspense GL, vendor account and transaction code for the payment in case of multiple vendors.

You can view the event details by clicking ‘Event’ button in the ’Vendor Payment detailed’ screen. The event VPAY is triggered for vendor payment and in case of vendor payment reversal the event VPRV is triggered. By clicking ’Advices’ button Vendor payment credit advice gets attached and the advice will be generated as part of the VPAY event.

The following accounting entries are passed for the different modes of payment are given below:

For Account Transfer mode of payment:

Payment Option Account Dr/Cr
Direct Transfer Vendor Payable Dr
Direct Transfer Vendor Settlement account Cr

 

For Onward Remittance mode of payment:

Payment Option Account Dr/Cr
Remittances Vendor Payable Dr
Remittances Suspense GL Cr

 

For ‘Purchase’ event:

For ‘Vendor Payment’ event:

In case of multiple vendors across a single contract, the system settles the payment against a single payment reference number. If a single vendor has supplied multiple assets for a single contract, then a netted payout entry will be posted to the individual vendor account based on the payment mode selected.

12.2.2 Capturing Vendor Payments Details for Accounts

You can view the vendor payment details at the contract level by clicking ‘VP’ button in the ‘Account Details - Main’ screen to invoke ‘Vendor Payment Details’ screen. You cannot modify it.

This screen will display the details of the vendor payments made with respect to that contract irrespective of the payment status viz. Active, Unauthorized, Reversed and Deleted.

The following details are captured:

12.2.3 Vendor Credit Advice

The Vendor credit advice (VPCRADV) is attached using the ’Advices’ button. A sample advice format is shown below:

ACCOUNT : CL1102012

USER REFERENCE NO : 000ZVPY0119401HB

CONTRACT CURRENCY : AED

CONTRACT VALUE DATE : 13-JUL-2001

WE HAVE EXECUTED THE FOLLOWING TRANSACTION ON YOUR BEHALF:

CUSTOMER NAME : BOEING CORP -------------------------------------------------

VALUE DATE CCY AMOUNT

-------------------------------------------------

13-JUL-2001 AED 750