Overview

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 to validate or process the distribution of payments.

Use the Organization Payment Methods page to view and edit.

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.

The payment types that Canada supports are:

Cash
Cheque
Direct Deposit

Payment Sources

If you're using Oracle Fusion Global Payroll for Canada for payroll processing, you must define at least one payment source for each organization payment method. Each payment source must be associated with an active bank account in Oracle Fusion Cash Management.

You can use the same bank account in different payment sources in more than one organization payment method, as illustrated in this table.

Payment Method	Payment Source	Bank Account
Cheque	Cheque	National Bank of Canada Account 6132549
Direct Deposit	Direct Deposit	National Bank of Canada Account 6132549

Note: If you're costing your payments, enter cost account information on the Manage 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 CA National Bank of Canada Account 6132549	None	Yes
Payroll Direct Deposit Ontario Bank of the West 1238900	TRU1	No
Payroll Direct Deposit Source Quebec Commercial Bank 8765999	TRU2	No

Payment Source

Tax Reporting Unit

Default Payment Source

Payroll Direct Deposit Source CA

National Bank of Canada Account 6132549

None

Yes

Payroll Direct Deposit Ontario

Bank of the West 1238900

TRU1

Payroll Direct Deposit Source Quebec

Commercial Bank 8765999

TRU2

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	Example
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.