Payment Methods

A disbursement payment method is a method of payment that your company uses to pay a supplier, customer, or employee. The payment method can be electronic, such as EFT, bill payable, or wire, or printed, such as a check.

You can use a payment method to pay one or multiple third-party payees.

The purpose of creating disbursement payment methods is to:

• Define the disbursement payment methods you want to use to make payments

• Define usage rules to limit the use of disbursement payment methods to specific business units, legal entities, and other attributes.

• Assign validations to disbursement payment methods for running on documents payable, payments, and payment files

The level of granularity that you need for your disbursement payment methods is a factor to consider before you define them. You must decide whether to set up more or less granular disbursement payment methods. The least granular payment methods are those that are predefined in Oracle Fusion Payments, such as Check or Electronic. With this setup, you can associate each payment method with many payment process profiles and payment formats. This approach requires less knowledge from source product users, such as invoice entry clerks, but may involve more work later in the payment process.

Alternately, you can define more granular payment methods. When you do this, you can benefit from adding validations to the payment method, which are very targeted for specific transactions. An example of a very granular payment method is Italian EFT to which you might add a validation that's specific to Italy. With this kind of setup, validations are run as early as during invoice entry and thus, errors can be fixed more quickly.

Since creating very granular payment methods lead to more payment methods, it's important to also set up payment method defaulting rules. Payment method defaulting rules eliminate the burden during invoice entry of manually selecting one appropriate payment method from the many available. You can also use supplier-specific defaults, an option which is enabled on the Payment Method Default Basis section on the Manage Disbursement System Options page.

Creating a disbursement payment method in Payments is composed of the following major tasks:

• Creating usage rules

• Creating or assigning validations

Creating Usage Rules

Usage rules specify when a disbursement payment method is available for use by source products for documents payable. By creating usage rules, you enable or disable payment methods for each source product integrated with Oracle Fusion Payments. You can provide different usage rules for different source products and change whether and when the payment method is available.

In the Usage Rules tab on the Create Payment Method page, you decide whether to assign the payment method to one of the following:

• All payees

• Specific business units, legal entities, and payment process transaction types for Oracle Fusion Payables

• Specific business units, legal entities, and payment process transaction types for Oracle Fusion Receivables

• Specific payment process transaction types for Oracle Fusion Cash Management

Creating or Assigning Validations

In the Validations tab on the Create Payment Method page, you can assign predefined validations to this payment method or create user-defined validations. Validations are rules that check the validity of documents payable, payments, or payment files.