AMEX Payment Process

DOYEN SYSTEMS PRIVATE LIMITED

AMEX PAYMENT PROCESS

CONFIG AND TESTING DOC

Doyen

11/20/2014

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Contents

UNDERSTANDING

PROPOSED SOLUTION

ASSUMPTIONS

CONFIGURATION IN SPORT INSTANCE

TESTING OUTCOME 

UNDERSTANDING

There is a plan to  make payment  to Suppliers through AMEX Card so that instead of paying through checks or EFT going forward suppliers who opt for AMEX Card Payment Method can get their payments through corporate card details provided by Saxon. For this an understanding has been reached between AMEX , Saxon and the willing suppliers to avail of the card facility. The following is the procedure proposed to be followed once the AMEX Card facility is made available to the Suppliers

• Supplier sends their invoices as is being normally done
• Invoice entered in Oracle System at Saxon and  selected for payment based on the payment process run
• In the payment process run instead of EFT or bank account of the supplier the payment would be routed through the card
• Once the payment run is over the details of the payment to be mailed to AMEX who will then proceed to make payment to the Supplier
• Once payment made AMEX will forward the statement of such payments to Saxon who will review, reconcile and then make a payment to AMEX

Based on the above understanding  the following processess need to be mapped and configured in Oracle to make the system operational and made available online in Oracle

CURRENT CONFIGURATION FOR SUPPLIER

• Some of the suppliers are paid through check, EFT and wire
• The suppliers  are accordingly linked to the respective PAY GROUPs
• These payments are currently processed through the HSBC/Chase Banks defined internally.
• Remittance Advise being sent on payment proccessing.
• The reconciliation/clearance for such payments are done through the Cash Management on a monthly basis before the period close based on the statement received from the respective banks

PROPOSED SOLUTION

Since going forward some of the payment to the supplier would opt for the AMEX Card process the following are the new configuration /changes to the existing processes is as detailed below

• Creation of a new PAY GROUP  (AMEX) and associating the suppliers to the new PAY GROUP at their site level.
• Creating  two new account codes in the ACCOUNTS segment of the Accounting Flexfield
• one for the AMEX Cash Clearing Account  AND
• AMEX  Clearing Account (to be in this account till such time the payment is made to AMEX ) both the accounts will be Asset Account Type Classification.
• Creation of a New Internal Bank by the name AMEX alongwith Branch and Account Details to be used for payment processing for PAY GROUP AMEX suppliers
• Creation of a Payment Process Profile for processing the AMEX supplier payment
• Creation of a Payment Template that can be used for processing  AMEX supplier payment (OPTIONAL)
• Creation of AMEX as a supplier for making payment to AMEX on receipt of statement from AMEX towards payment to supplier

ASSUMPTIONS

• Payments to AMEX will be routed through Payables and not through Manual entry in GL
• The card provided by AMEX is a USD Denominated card and there will be no forex payments happening
• The AMEX bank charges/fees will be tracked and paid separately as is being is currently handled for other internal banks.

CONFIGURATION IN SPORT INSTANCE

Step 1: Creation of the PAYGROUP

Navigation :>Oracle Payables Resp>Setup>Lookups>Purchasing

Step2 :Create Account Codes in the Accounting Flexfield

Navigation : General Ledger Responsibility>Setup>Financials>Flexfields>Key Flexfields>Values

Step 3.1: Creation of an internal bank- AMEX Card Services

Navigation Oracle Payables>Setup>Payments>Banks

Step 3.2 Creation of a Branch

Navigation Oracle Payables>Setup>Payments>Bank Branch

Step 3.3 Creation of a Bank Account

a. Defining the Bank Account and the Account Number

b. Defining the Clearing and the Cash Account

c. Defining the access options and contact

d. Defining the Options

Step 4: Creation of a Payment Process Profile

Navigation Oracle Payables>Setup>Payments>Payment Adminsitrator

Step 4.1 Defining the Usage Rules

Step 4.2 : Defining Payment

Step 4.3 Defining Reporting

Step 5. Creation of a Payment Template

Navigation: Oracle Payables>Payments>Payment Manager

Step 6: Creation of AMEX as a supplier

Navigation : Oracle Payables>Supplier>Entry-Address Book Link

Step 6.1. Creation of the Address and site

Step 6.2 Definition of the Terms and Conditions- Accounting Link

Step 6.3 Defining the Invoice Management Details Link

Step 7.1 :Create a Distribution Set and attach it to the supplier site as detailed below

Navigation : Oracle Payables>Setup>Invoice>Distribution Set

Step 7.2 Associate the above distribution set to the Supplier AMEX so that the account defaults during the invoice creation as shown in the screenshot below.

Navigation : Oracle Payables>Supplier>Entry-Accounting Link

ACCOUNTING IMPACT:

Once the above process is under taken the following is the accounting Entries that will take place

SUPPLIER INVOICING AND PAYMENT	AMEX PAYMENT
1.On receipt of Invoice and creation in System Charge/Asset Account (Non PO) Dr AP Accrual Account (PO matched )Dr      To Supplier Liability  Cr	1.On receipt of Statement from AMEX AMEX Clearing (10175) A/c Dr   To Supplier Liability A/c
2.On payment Processing in Oracle for onward dispatch to AMEX Supplier Liability A/c Dr   To Cash Clearing A/c Cr	2. On Payment Processing Supplier Liability A/c Dr    To Cash Clearing A/c Cr
3.On payment to Supplier by AMEX-Clear transaction in Cash Management AMEX Clearing (10175) A/c  Dr    To Cash Clearing A/c Cr	3. On payment to AMEX Cash A/c Dr     To Cash Clearing A/c Cr

TESTING OUTCOME

Testing Steps

1.Create an Invoice from a supplier using AMEX facility

2.Create a payment and make a payment

3.Create an Invoice on AMEX on receipt of statement from AMEX

4.Clear the payment from Cash Management for payments made to supplier by AMEX using the statement sent by AMEX

5.Make a payment to AMEX

6.Clear the payment to AMEX from Cash Management

7.Run Create Accounting from Payables

8 Run the Account Analysis Report from Payables and verify and reconcile the accounts 10175 (AMEX Clearing Account)

STEP 1: Create an Invoice of a supplier who will receive payment from AMEX

The following is the accounting entry

STEP 2: Create a Payment to the Supplier using the Payment Process Request (AMEX)

Add caption

Once the concurrent run verify the next process to be followed by clicking on the Monitor Request Link on the Payment Dashboard

Verify the output of the Payment Select Report as shown by arrow above which will display the information in the following screenshot.

Verify the status of the payment

The payment is confirmed./

STEP 3:Run the Create Accounting for the payment which will generate the following entries

STEP 4:Send the Remittance Advise to the Supplier

STEP 5:On receipt of the statement from AMEX carry out the Clearing from the Cash Management

The following are the accounting entries on clearance of the payment

STEP 6:Create an invoice on AMEX

The following is the accounting entry for the invoice.

STEP 7:Make a payment to AMEX and account it

On accounting the following entries are created

STEP 8:Clear the transaction for payment to AMEX in Cash management

STEP 9:Run the create accounting and the following entries are created

STEP 10:Run the Account Analysis Report from Payables to reconcile the accounts 10175 and 10180