Financial Sanctions Validation and Transaction Processing

When you enable financial sanctions validation, the system validates supplier names (names, payment alternate names, and withholding alternate names) and addresses (addresses and country), and if there is a potential match to the financial sanctions list, it updates the Financial Sanctions Status field on the Financial Sanctions Status collapsible region on the Identifying Information page. You determine if the match is accurate and then manually set the supplier's financial sanctions status to Blocked. The system does not allow payments to suppliers with a financial sanctions status of Blocked or Review.

This section discusses how the system updates the supplier's financial sanctions status and the action it takes during supplier entry and transaction processing for financial sanctions enabled at the installation level and at the bank level.

Financial Sanctions Validation Enabled at the Installation Level

How the system validates your suppliers is dependant upon how you set up financial sanctions validation options. For this table, the system validates:

• On the Supplier Information component at save if financial sanctions is enabled at the installation level, and the SDN Validation at save check box is selected on the Supplier Set Control page.

• On the Supplier Information component on an ad hoc basis by clicking the Financial Sanctions edit button if financial sanctions is enabled at the installation level, and the SDN Validation at save check box is not selected on the Supplier Set Control page.

• During the pay cycle selection process if the Financial Sanctions list edit field is selected on the Payment Selection Criteria - Preferences page.

• As otherwise noted in the table.

Note:

For this table, the assumption is that if the supplier's initial financial sanctions status is Cleared, the days before the next validation have expired and the Skip future validation field is not selected on the Financial Sanctions Status collapsible region on the Identifying Information page.

Source	System Validation	Financial Sanctions Status After Validation	Action
Supplier Information	At save. On an ad hoc basis.	Valid	The system saves supplier.
Supplier Information	At save. On an ad hoc basis.	Review	The system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the supplier.
Supplier Information	When the days before next validation have expired: At save. On an ad hoc basis. If skip future validation: none.	Cleared	The system saves the supplier with no warning message, because you manually set this status. Note: If the supplier has an initial financial sanctions status of Cleared, and the system performs financial sanctions validation, the system automatically changes the supplier's financial sanctions status to Valid if there is not a match, or to Review if there is a potential match.
Supplier Information	None.	Blocked	The system saves the supplier with no warning message, because you manually set this status.
Regular Entry Vouchers - all voucher styles, except single payment voucher. Supplier's initial financial sanctions status is Valid or Cleared.	At save.	Valid or Review	For Valid status, the system saves the voucher. For Review status, the system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Regular Entry Vouchers - all voucher styles, except single payment voucher. Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Regular Entry Vouchers - single payment voucher. There is no initial financial sanctions status since you are using a single payment supplier.	At save.	Valid or Review Note: The system does not update the single payment supplier's financial sanctions status on the Supplier Information component, because it is only a template for single payment suppliers.	For Valid status, the system saves the single payment voucher. For Review status, the system displays a warning message that the supplier is under review or blocked for financial sanctions. You can save the single payment voucher and put the payment on hold, save the single payment voucher and not put the payment on hold, or not save the single payment voucher.
Quick Invoice and Summary Invoice Entry Supplier's initial financial sanctions status is Valid or Cleared.	At save.	Valid or Review	For Valid status, the system saves the voucher. For Review status, the system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Quick Invoice and Summary Invoice Entry Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Recording a manual payment using the Voucher component. Supplier's initial financial sanctions status is Valid or Cleared.	At save.	Valid or Review	For Valid status, the system saves the voucher. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to select Record as the payment action.
Recording a manual payment using the Voucher component. Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to select Record as the payment action.
Manual Payment and Manual Draft Worksheet Supplier's initial financial sanctions status is Valid or Cleared.	Upon building the worksheet.	Valid or Review	For Valid status, the system builds the manual payment worksheet and allows you to save the worksheet. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to use the supplier for a manual payment worksheet.
Manual Payment and Manual Draft Worksheet Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to use the supplier for a manual payment worksheet.
Express Payment Supplier's initial financial sanctions status is Valid or Cleared.	Upon creating the express payment.	Valid or Review	For Valid status, the system creates the express payment. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not create the express payment. Note: The Express Payment link is not available on the Voucher component if the supplier's financial sanctions status is Review or Blocked.
Express Payment Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not create the express payment. Note: The Express Payment link is not available on the Voucher component if the supplier's financial sanctions status is Review or Blocked.
Pay Cycle Supplier's initial financial sanctions status is Valid or Cleared.	During the selection process.	Valid or Review	For Valid status, the system selects the supplier's vouchers for payment. For Review status, the system creates a payment validation error that you can view on the Pay Cycle Financial Sanction Warnings page.
Pay Cycle Supplier's initial financial sanctions status is Review or Blocked.	None.	Review or Blocked	The system does not select the supplier's vouchers for payment.

Note:

You can routinely validate your suppliers using the Financial Sanctions Validation process.

See Financial Sanctions Validation Page.

Financial Sanctions Validation Enabled at the Bank Level

How the system validates your suppliers is dependant upon how you set up financial sanctions validation options. For this table, the system validates:

• During the pay cycle selection process if the Financial Sanctions list edit field is selected on the Payment Selection Criteria - Preferences page.

• As otherwise noted in the table.

Note:

For this table, the assumption is that if the supplier's initial financial sanctions status is Cleared, the days before the next validation have expired and the Skip future validation field is not selected on the Financial Sanctions Status collapsible region on the Identifying Information page.

Source	System Validation	Financial Sanctions Status After Validation	Action
Supplier Information	None	Valid, Cleared, Review, or Blocked	The system saves the supplier. Note: When you create a new supplier, the system initially sets the financial sanctions status to Valid.
Regular Entry Vouchers - all voucher styles, except single payment voucher. Supplier's initial financial sanctions status is Valid or Cleared.	At save only if you specify a bank for the remit supplier and the bank requires financial sanctions validation.	Valid or Review	For Valid status, the system saves the voucher. For Review status, the system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Regular Entry Vouchers - all voucher styles, except single payment voucher. Supplier's initial financial sanctions status is Review or Blocked.	None	Review or Blocked	The system displays a warning message that the supplier is under review or blocked for financial sanctions. The system saves the voucher.
Regular Entry Vouchers - single payment voucher. There is no initial financial sanctions status since you are using a single payment supplier.	At save only if you specify a bank for the remit supplier and the bank requires financial sanctions validation.	Valid or Review Note: The system does not update the single payment supplier's financial sanctions status on the Supplier Information component, because it is only a template for single payment suppliers.	For Valid status, the system saves the single payment voucher. For Review status, the system displays a warning message that the supplier is under review or blocked for financial sanctions. You can save the single payment voucher and put the payment on hold, save the single payment voucher and not put the payment on hold, or not save the single payment voucher.
Quick Invoice and Summary Invoice Entry Supplier's initial financial sanctions status is Valid, Cleared, Review, or Blocked	None	Valid, Cleared, Review, or Blocked	The system saves the voucher.
Recording a manual payment using the Voucher component. Supplier's initial financial sanctions status is Valid or Cleared.	At save only if you specify a bank for the remit supplier and the bank requires financial sanctions validation.	Valid or Review	For Valid status, the system saves the voucher. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to select Record as the payment action.
Recording a manual payment using the Voucher component. Supplier's initial financial sanctions status is Review or Blocked.	None	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to select Record as the payment action.
Manual Payment and Manual Draft Worksheet Supplier's initial financial sanctions status is Valid or Cleared.	Upon building a worksheet only if the remit supplier's bank requires financial sanctions validation.	Valid or Review	For Valid status, the system builds the manual payment worksheet and allows you to save the worksheet. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to use the supplier for a manual payment worksheet.
Manual Payment and Manual Draft Worksheet Supplier's initial financial sanctions status is Review or Blocked.	None	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not allow you to use the supplier for a manual payment worksheet.
Express Payments Supplier's initial financial sanctions status is Valid or Cleared.	Upon creating the express payment only if the remit supplier's bank requires financial sanctions validation.	Valid or Review	For Valid status, the system creates the express payment. For Review status, the system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not create the express payment. Note: The Express Payment link is not available on the Voucher component if the supplier's financial sanctions status is Review or Blocked.
Express Payments Supplier's initial financial sanctions status is Review or Blocked.	None	Review or Blocked	The system displays an error message that the supplier is under review or blocked for financial sanctions. The system does not create the express payment. Note: The Express Payment link is not available on the Voucher component if the supplier's financial sanctions status is Review or Blocked.
Pay Cycle Supplier's initial financial sanctions status is Valid or Cleared.	During the selection process for remit suppliers whose banks require financial sanctions validation.	Valid or Review	For Valid status, the system selects the supplier's vouchers for payment. For Review status, the system creates a payment validation error that you can view on the Pay Cycle Financial Sanction Warnings page.
Pay Cycle Supplier's initial financial sanctions status is Review or Blocked.	None	Review or Blocked	The system does not select the supplier's vouchers for payment.

Note:

You can routinely validate your suppliers using the Financial Sanctions Validation process.

See Financial Sanctions Validation Page.