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 ‘VPDPYMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can specify the following details:

Payment For

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.

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.

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.

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

The system displays 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.

Vendor Payable GL

The system displays the vendor payable GL.

12.2.1.1 Query by Vendor Id

Click ‘Populate’ 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.

Contract Details

Financing Account Reference

Specify the financing account reference number. Alternatively, you can select financing account reference number from the option list. The list displays all valid financing account reference number maintained in the system.

Vendor 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.

 

12.2.2 Payment By Contract Tab

Click ‘Payment by Contract’ tab in ‘Vendor Payment Detailed’ screen..

The following details are captured:

Settle

Check this box to make the payment to one vendor at a time.

Payment Mode

Select mode of payment from the drop-down list. The list displays the following values:

Suspense GL

Specify the suspense GL. Alternatively, you can select suspense GL from the option list. The list displays all valid suspense GL maintained in the system.

Vendor Account

Specify the vendor account number. Alternatively, you can select vendor account number from the option list. The list displays all valid vendor account number maintained in the system.

Account Branch

The system displays the branch code.

Account Description

The system displays the account description.

Account Currency

The system displays the currency code.

Transaction Code

Specify the transaction code to be used for making the payment. Alternatively, you can select transaction code from the option list. The list displays all transaction code maintained in the system.

Instrument Type

Select the type of instrument from the drop-down list. The list displays the following values:

Payable Bank

Specify the payable bank code, Alternatively, you can select payable bank code from the option list. The list displays all open and authorized clearing bank code maintained in the system.

Payable Branch

Specify the payable branch code. Alternatively, you can select payable branch code from the option list. The list displays all branches for the bank code chosen.

Instrument Number

The system displays the instrument number.

The Instrument number will be displayed only after Authorization of vendor payment.

Instrument Transaction Reference

The system displays instrument transaction reference number.

The Instrument Transaction Reference will be displayed only after Authorization of vendor payment.

12.2.3 Payment by Vendor Tab

When the settlement is done through Vendor option, if there are multiple contracts, the system will make the payment through a single instrument. If you want to have multiple instruments for multiple contracts, then the system will book different Vendor Payment contracts.

Click ’Payment by Vendor’ tab in ‘Vendor Payment Detailed’ screen to specify the vendor details.

You can specify the following details:

Single Vendor Settlement Details

Payment Mode

Select mode of payment for vendor from the drop-down list. The list displays the following values:

If you have selected ‘Payment Mode’ field as ‘Instrument’, then ‘Instrument Type’ field is mandatory.

If you have selected ‘Payment Mode’ field as ‘Account Transfer’, then the fields under Vendor Account Details section will be mandatory and the fields under Instrument Details section will not be applicable.

If you have selected ‘Payment Mode’ field as ‘Onward Remittance’, then only ‘Suspense GL’ field is applicable. The fields under Vendor Account Details and Instrument Details section will not be applicable.

Suspense GL

Specify the suspense GL for vendor. Alternatively, you can select suspense GL from the option list. The list displays all valid suspense GL maintained in the system.

Vendor Account Details

Vendor Account Number

Specify the vendor account number. Alternatively, you can select vendor account number from the option list. The list displays all valid account number maintained in the system.

Account Branch

The system displays the branch code.

Account Description

The system displays the account description.

Account Currency

The system displays the currency code.

Instrument Type

Select the type of instrument from the drop-down list. The list displays the following values:

If you have selected ‘Instrument Type’ field as ‘Demand Draft’, then ‘Payable Bank’ and ‘Payable Branch’ fields will be mandatory.

Payable Bank

Specify the payable bank code, Alternatively, you can select payable bank code from the option list. The list displays all open and authorized clearing bank code maintained in the system.

Payable Branch

Specify the payable branch code. Alternatively, you can select payable branch code from the option list. The list displays all branches for the bank code chosen.

Instrument Number

The system displays the instrument number allocated at the time of vendor payment authorization

Instrument Transaction Reference

The system displays instrument transaction reference number.

Payment Details

Vendor Code

The system displays the vendor code.

Contract Reference

The system displays the contract reference number.

Asset Code

The system displays the asset code.

Amount Due

The system displays the amount due.

Amount Paid

Specify the amount paid.

Settle

Check this box to make the payment to one vendor at a time.

12.2.3.1 Processing Changes on Vendor Payment

If you have selected ‘Payment Mode’ as ‘Instrument’, then you need to specify ‘Instrument Type’, ‘Instrument Number’, ‘Payable Bank’, ‘Payable Branch’ fields.

While saving the Vendor payment transaction with payment mode as instrument, the system will generate the following Accounting entries for the VPAY event for payment mode Instrument:

Dr/Cr

Accounting GL

Amount

Transaction reference

Dr

Vendor Paya­ble GL

Vendor Payment Amount

Vendor Payment Reference

Cr

Suspense GL

Vendor Payment Amount

Vendor Payment Reference

On authorization of the vendor payment transaction by Instrument.

The system will trigger ‘BC Issue against GL’ screen (8302) if payment is to be made by Banker’s Cheque.

If Demand Draft option is chosen, the system will trigger ‘DD Issue against GL’ screen (8306) for the DD Instrument internally.

If payment is for a single contract involving multiple vendors, payment can be done by issuing multiple Instruments, if required.

Note

The validations of the instrument details and the passing of accounting entries will be same for normal instrument transaction.

The system will pick fields/GLs required for the teller transaction as follows:

Field /GL Details for teller transaction

Teller Instrument Transaction Type

Banker’s Cheque against GL(8302)

Teller Instrument Transaction Type

Demand Draft against GL(8306)

Beneficiary name

Vendor Name

Vendor Name

Beneficiary Address

Vendor Address

Vendor Address

Payable Bank

N.A

Payable Bank entered in vendor payable screen

Payable Branch

Transaction Branch

Payable Branch entered in vendor payable screen

Transaction GL

Suspense GL

Suspense GL

Offset GL

As maintained for BCG/BCI in Instrument Product Mainte­nance (DDDPRMNT)

As maintained for DDG/DDI in Instrument Product Main­tenance (DDDPRMNT)

Narrative field

Vendor Payment Reference

Vendor Payment Reference

The system will pass the following accounting entries for the Instrument transaction as follows:

Dr/Cr

Accounting GL

Amount

Transaction reference

Dr

Suspense GL

Vendor Payment Amount

Teller reference

Cr

Offset GL

Vendor Payment Amount

Teller reference

The system will waive the charges applicable to instrument transaction.

When the transaction is authorized the system will automatically populate the instrument number with the lowest unused instrument number from the inventory or from the instrument maintenance.

The system will display the related teller transaction number on authorization of vendor payment.

If any of the instruments issued is in active or paid status, the system will not allow reversal of vendor payment. This validation is done based on the Instrument transaction reference number stored.

If the instruments issued are in cancelled or refund status, the system will reverse vendor payment.

If Hamish Jiddayah amount is not paid in full, the system will display an override message. This can be configured as an error, if required.

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.

12.2.4 Advices Button

Click on Advices’ button to invoke ‘Advice Details’ screen.

The system displays the following details:

12.2.5 Events Button

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.

You can specify the following details:

Reference Number

Specify the reference number.

The system displays the following events:

12.2.6 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

12.2.7 Viewing Vendor Payment Details

You can view vendor payment details using ‘Vendor Payment Summary’ screen. You can invoke the ‘Account Summary’ screen by typing ‘VPSPYMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can query a record using the following options:

Click ‘Search’ button. The system identifies all records satisfying the specified criteria and displays the following details for each one of them: