A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

  1. Check
  2. Electronic
  3. wire
  4. Clearing

You can pay with a manual payment, a Quick payment, or in a payment batch.

Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.

Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

Navigation: Payable Manager –> Setup –> Payment –> Payment Administrator.

Click on Go To Task.

 Click on Create button.

Enter the Payment Method name and code and then click on Next.

 Select the respective responsibilities which we want shown this payment method in these responsibilities.

Click on Next, Next, Finish.

Many of you might have known it earlier, but people who don’t know, setup of Banks are moved into the Cash Management Module. The short name for Cash Management is CE.  In this Article, we will discuss how to Create Banks / Bank Branches , step by step.
Responsibility – Cash Management Super User
Navigation – Setup – Banks – Banks
Clicking on this opens an OAF page
Click on Create – opens the following.
Enter the necessary details required and click Save and Next.
Update the Bank Addresses by clicking on Create
Enter the information and click on Finish
Click on Save and Next
Click on Create Contact .
Enter the necessary information required.
Click Apply once the details are entered.
Click on Finish.  The bank details are here in this screen.
Bank is Created Successfully. Now we will see how to create a Branch underneath the Bank which we just Created.
Click on Create Branch icon
Click on Continue from the below screen
In the below screen enter the Branch Details as shown
Click Save and Next.
Click on Create button in the above screen to add the Branch’s address
Enter the address and then click Apply.
Click Save and Next
Click on Create Contact button to add the Contact Details
Click on Apply
Click on Finish.
To Create Account – click on the Icon below…
Click on Create button from the below screen
Enter the details in the screen below
Click on Continue
Enter the necessary details in the screen above
Click on Next
Click on Save and Next
Retainage refers to a portion of the payment that is withheld until the completion of a project. In that case the client doesn’t pay the contractor/party the retainage until all work on the project is complete. Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project.  There is no limit for Retainage.
Steps Involved in Retainage
1. Create a document style in Oracle Purchasing
2. Create Retainage Account through Payables
Let’s discuss the steps below …
1. Create a document style in Oracle Purchasing.
Responsibility: Purchasing
Navigation:  Setup –  Purchasing – Document Styles  – Create
Click – Create
Click Apply
2. Create a retainage account in Financials Options setup.
Responsibility: Payables
Navigation:  Setup – Options – Financials Options
Enter the retainage account to use during accounting.
Enter the Retainage Account –
  1. Create a procurement purchase order in Oracle Purchasing.
    Responsibility: Purchasing
    Navigation: / Buyer Work Center / Orders
    Select the complex PO document style in the Create drop down box or select ‘More’ to find the complex PO document style if it is not listed in the LOV.
  2.  Create –Choose  Complex PO
Click Go
Enter the Details here
Enter the Header info and click on Lines.
Enter the line information
Click on Update icon to enter the Financing  Options.
Enter the Distributions details
Click Save