Payment Sources in Organization Payment Methods Setup Examples

You set up payment sources when you create organization payment methods (OPM) for payroll processing. Use the Organization Payment Methods task.

Derive Payment Source Based on TRU

You pay your workers by electronic funds transfer (EFT) payments. To comply with tax reporting unit (TRU) regulations for out-of-TRU payments, payment rules are created based on TRU to pay from two different banks. This table helps you understand your key decisions for this scenario:

Decisions to Consider	In This Example
How many OPMs do you need?	One.
How many payment sources do you need?	Three. One default payment source for the TRU1, one source for payments in TRU2, and one source for payments in TRU3.
How many bank accounts do you need?	Three. One for each payment source.
What payment method rules do you need?	Rules for bank accounts used as payment sources based on each TRU.

Prerequisites

Verify you have completed these before you continue:

1. Primary ledger is set up in Oracle Cloud General Ledger.

2. Banks, branches, and account info to use as the payment sources are set up in Oracle Cloud Cash Management.

3. Legal entity associated with the legislative data group is assigned to a general ledger.

4. TRUs are set up.

Create the OPM with Basic Details

Add new OPM in the Organization Payment Methods page with this info:

1. Click the Organization Payment Methods task.

2. In the Search Results section, click Create.

3. Select your legislative data group. This example is InFusion LDG.

4. Select the date this payment method is to be available for use.

   Tip: Select a date that's on or before the effective date this payment method will be used by the payroll definition or other objects.

5. Click Continue.

6. In the Basic Details section, complete the fields with this info:

   Field	Value
   Name	Payroll Direct Deposit
   Payment Type	Direct Deposit Note: The available payment types for OPMs can vary by legislation.
   Currency	Payment currency

7. Click Save.

Add EFT File Info

When you select the EFT payment type, you have the option enter EFT info at these levels:

Note: EFT file info entered at the payment source level takes priority over info entered at the organization payment method level.

1. Payment source level

2. Organization payment method level

3. Both levels

Create Payment Sources

Perform these steps three times to create each payment source.

1. In the Payment Sources section under Payment Source Information, click Create.

2. On the Create Payment Source page, complete the fields in order, as shown in this table:

   Field	Source 1	Source 2	Source 3
   Name	Payroll EFT Source 1	Payroll EFT Source 2	Payroll EFT Source 3
   Bank Account Name	Bank A	Bank B	Bank C
   Bank Reference	123456789	234567890	345678901
   Company Reference	456789012	567890123	678901234

   Tip: Keep your payment source names unique and specific as possible for each scenario. This naming convention helps you manage complicated combinations of OPMs and payment rules.

3. Click Continue.

Create Payment Rules

Perform these steps three times to create each payment source.

1. In the Payment Method Rules section, for Payroll EFT Source US, ensure that the default setting is Yes.

2. In the same section, click Create and select the values shown in this table to create two payment rules that map a payment source to a TRU.

   Field	Source 2	Source 3
   Default	No	No
   Tax Reporting Unit	TRU2	TRU3
   Payment Source	Payroll EFT Source 2	Payroll EFT Source 3

3. Click Submit.

Create Same Payment Source for Pay Workers and Third Parties

Your organization pays all workers and third-party payees from the same source bank account. In this scenario, no special payment method rules are required. Perform these steps for this scenario:

1. Ensure the payment source is set as the default.

2. Leave the Third-Party Payment, Tax Reporting Unit, and Payment Criteria fields blank.

3. Click Continue.

Create Separate Payment Source for Pay Workers and Third Parties in a Specified TRU

Your enterprise is based in one tax reporting unit (TRU1), but you have some workers in another tax reporting unit (TRU2). To comply with TRU1 regulations for out-of-TRU payments, you specify a payment source for the TRU2. In this scenario, your payment source for TRU1 is already set as the default payment source, so no change is needed for TRU1. Perform these steps for the TRU2 employees:

1. Add a payment method rule.

2. Select the TRU2.

3. Select the TRU2 payment source.

4. Click Continue.

Create Separate Payment Sources for Pay Workers and Third Parties in the Same TRU

You currently pay everyone in your TRU using Payment Source A. Your company recently employed a private consultant, Jon Moore, from a third-party auditing company. A new company requirement states that payments must come from a new payment source, Payment Source B. For this scenario:

1. Create John as a third-party person payee.

2. Leave the Third-Party Payment, Tax Reporting Unit, and Payment Criteria fields blank.

3. Click Continue.

Create Separate Payment Source for Pay Workers in a Specified Department

Note: This scenario has these prerequisites:

You use different payment sources to pay employees in the Sales and Development departments. Perform these steps for this scenario:

1. Create a payment method rule for each department.

2. Enter the department name in the Payment Criteria field.

3. Select the TRU and payment source.

4. Click Continue.