Overview

Once you have calculated payroll, you're ready to pay your employees and third parties. Use the Generate Payments for Employees and Third Parties flow to generate check/cheque payments.

This process selects employees and third parties processed in the prepayments process within the payroll run and have a payment method of check/cheque.

Before you generate the check/cheque payments, consider these scenarios:

• You may have multiple employee deductions made to the same third-party payee, such as multiple child support orders. Rather than make individual payments for each individual employee deduction, use the Run Third-Party Payment Rollup process to combine individual employee deductions and make a single payment to the payee.

• You may have both employees and third parties to pay. Use the Run Generate Payments for Employees and Third Parties to generate your checks/cheques for employees and then again to generate checks/cheques for your third parties. Use the Payee Type field to designate which will be included in the process.

• You may have specific third parties to exclude from the Run Third-Party Payment Rollup process to produce an individual check/cheque per payment. Select the Exclude from Third-Party Payment Rollup Process check box on the Third-Party Organization Payment Methods page to exclude a third-party payee from the Run Third-Party Payment Rollup process.

• You may have a third-party payee that requires payments on a date that's different from the employee payment date. For example, your employee payroll payments are on the last day of the month but you may want to make third-party payments 5 days later. Use the Time Definitions task to create a time definition defining a time span of 5 days. Select this new time definition in the Time Definition field on the Third-Party Person or Organization Payment Methods UI. Enter the relevant process dates and run the prepayments process, for example, with a process date of 30, June. This stamps the effective employee payments date as 30-June and the third-party payments date as 05-July. The Generate Payments for Employees and Third Parties process is run twice:

  • Once for the employees with a last day of the month process end date, such as 30-June

  • Once for the third parties with a process end date of plus 5, such as 05-July, and an overriding payment date of 05-July

• You may have different banks with different check/cheque templates. To accommodate, you must create a report category for each separate bank and check/cheque template and then attach it to the payment source:

  • Define report categories for each unique bank and check/cheque template combination to create a report category for each separate bank and check/cheque template. Use the Organization Payment Methods page to associate the report category for third-party payee and report category for worker to the payment source.

  • Select the new report category for the requisite bank's payment source so that the process uses the correct check/cheque template when generating its check/cheque payments. Use the Organization Payment Methods task to define the payment source for third-party payments. Attach the correct report category for that payment source. Use the Report Category for Third-Party Payee or Report Category for Worker field in the Payee Information section of the Create Payment Source page.

• Define report categories for each unique bank and check/cheque template combination if you want to create a report category for each separate bank and check/cheque template. The report category for third-party payee and report category for worker are associated to the payment source in the Organization Payment Methods page.