Overview of Organization Payment Methods for Mexico

You must create one organization payment method for each combination of legislative data group, payment type, and currency that you use to disburse wages and other compensation. You can also create rules for validating or processing the distribution of payments. Use the Organization Payment

Payment Types

When creating an organization payment method, you select a payment type. You can create more than one organization payment method with the same payment type.

Mexico supports these payment types:

• Cash

• Direct Deposit

• Electronic Funds Transfer (EFT)

Payment Sources

If you're using Oracle Global HCM Cloud Payroll for Mexico for payroll processing, you must define at least one payment source for each organization payment method. Oracle recommends one organization payment method, per payment type, per currency. Each payment source must be associated with an active bank account in Oracle Cloud Cash Management. If you define additional details at the payment source level, then to use those details when processing payments, you must enter the payment source name when submitting the payment process.

Note: If you're costing your payments, enter cost account information on the Costing of Payment Sources page in the Accounting Distribution work area.

Payment Rules and Default Payment sources

If you define multiple payment sources, you can use payment rules to determine the appropriate payment source based on tax reporting unit (TRU).

This example shows one organization payment method with three different payment sources for different TRUs.

Payment Source	Tax Reporting Unit	Default Payment Source
Payroll Direct Deposit Source MX National Bank of Mexico	Mexico TRU	Yes
Payroll Direct Deposit Source SO Sonora Bank	Sonora TRU	No
Payroll Direct Deposit Source CH Bank of Chihuahua	Chihuahua TRU	No

The first payment source that you add is the default payment source, but you can select another payment source as the default, or not have a default payment source.

To understand the effect of having a default payment source, consider these examples that describe what happens when a TRU changes, causing a payment rule to be invalid.

Approach	Use Case
With a default payment source, the payment process pays employees using the default payment source.	This approach might suit a company with multiple independent franchises, each with its own TRU. If a franchise holder sells the franchise, payments don't fail.
Without a default payment source, the payments process issues error notifications to ensure that you use the appropriate payment source to fund the payment.	This approach might suit a company with strict policies about payment rule compliance.