How Payments Are Escheated

When checks issued for payments to suppliers, or to employees for expense payments, haven’t been presented for clearing during a specific time period, you should escheat them and transfer the amount to the appropriate local authority.

Oracle Payables lets you identify and escheat unclaimed checks and transfer their value to the appropriate escheatment authority. You can also generate a report with a list of payments that are escheated or initiated for escheatment.

Only payments done using a payment process profile configured with the processing type Printed are eligible for escheatment. You can’t escheat the following types of payments.

• Cross-business unit payments
• Manual payments
• Refunds
• Prepayments
• Netting payments

How You Escheat a Payment

Identify payments that have gone stale and escheat them. Here’s how you do it.

1. Go to Navigator > Payables > Payments.
2. In the Tasks panel tab, click Manage Payments.
3. Use the Payment Date criteria to identify checks that haven’t been cleared for more than or equal to the minimum number of days defined in the payment options.
   Note:

   You can only escheat payments that are in ledger currency with the status as Negotiable.

4. Select the payments and then click Initiate Escheat in the Actions menu.
   Note:

   You can begin escheatment for one payment at a time or multiple payments simultaneously.

5. Send stop payment instructions to the corresponding banks for all payments in the Escheatment Initiated status.
6. After performing due diligence on all stale dated payments, go to the Manage Payments page and search for the payments with status as Escheatment Initiated.
7. Select the payments and then click Actions > Escheat.

The payment status changes to Escheated. As a next step, create a remittance invoice to transfer the escheated funds to the escheatment authority.