Payment Processing

The payment processing included in PeopleSoft Payables enables you to create disbursements for transactions that flow through PeopleSoft Payables.

PeopleSoft Payables supports a number of payment formats: system check, automated clearing house (ACH), electronic funds transfers (EFTs), wire transfers, giros, drafts, direct debits, and letters of credit. The system is delivered with several, ready-to-use EFT formats particular to local needs.

The PeopleSoft Payables Payment Interface also supplies a means for processing payments for transactions outside the PeopleSoft Payables system. This interface is used by PeopleSoft Treasury to make settlement payments and by PeopleSoft Expenses to make expense payments. The interface integrates with the PeopleSoft Financial Gateway functionality, enabling another means of electronic payment processing for EFT, ACH, and wire transfers. You can also use the interface to process payments for other in-house systems.

As part of the voucher entry process, the system schedules vouchers to be paid based on the pay terms and holiday options. If pay terms include discounts, the system also calculates a discount due date. You create pay cycles to group types of vouchers to be paid in a single payment run. For example, you might want to have one payment cycle for regular suppliers and another for employee reimbursements or check requests.

Each pay cycle that you create is essentially a reusable payment selection template that specifies the selection criteria the system uses to determine which approved vouchers should be paid. For example, you can select payments based on business unit, bank and bank account, supplier pay group, pay through date, and payment method, among others.

Note:

During payment processing the system validates your suppliers against financial sanctions lists if financial sanctions validation is required. The system does not allow payments to suppliers who are potential matches to the financial sanctions lists.

Payment Posting

The creation of accounting entries for payments occurs during payment posting. As you post payments, the system generates corresponding accounting entries to relieve the liability, account for discounts earned (or lost), and generate an offset either to the designated cash account or to a PeopleSoft Payables clearing account if so designated at the bank account level. Like the Voucher Posting process, the Payment Posting Application Engine process (AP_PSTPYMNT) is a batch process that runs in the background.