Payables & Cash Management

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    Logan Wacker
    Can we issue direct debit as a supplier payment method?
    Topic posted November 6, 2018 by Logan WackerSilver Trophy: 7,500+ Points, last edited January 30, 2019, tagged Financials, Payables 
    201 Views, 4 Comments
    Can we issue direct debit as a supplier payment method?

    In  Peoplesoft we could code payment files in a way where the bank would know direct debit was how a supplier had been paid. This file would still transmit to the bank like any other but effectively no funds would move. Is this possible in Oracle Cloud? Would this be possible thru funds capture?



    • Becky Alvarez


      No I have never heard of doing that.  You may be able to try it but the point of a payment file is to send the payment instructions.  Have you looked at maybe the positive pay file?  That is the closest thing since it is telling the bank what was paid only out of the box it is listing checks instead of direct debits but maybe you can modify it to show direct debit instead of checks.

    • Logan Wacker

      Hi Becky:

      Thanks for the feedback. The scenario is we want to setup a supplier (such as a utilities provider) as DD payment method for a variable amount, when I see a DD post I want to create an invoice in AP to record the liability and close the invoice out as paid. Is it possible to do this in an automated way since the amount is variable and not fixed? Or could I create a payment document and somehow apply a 'manual payment' to an invoice to close it as paid? 




    • Becky Alvarez


      I can't think of anything out of the box that would automatically create the invoice but we have REST APIs, FBDI and SOAP WEB services that will create invoices and the new REST APIs can update invoice installments so maybe you can do a recurring invoice and update the installment or create a some solution that generates the invoice using one of these tools.  Once the invoice in in the system then it can be picked up and paid in a payment process that you can customize to just pick up that supplier and pay or manually pay.

      Maybe someone else has a better solution.

    • Manish Jhunjhunwala

      Hi Logan,

      We had similar situation and below is what we did:

      1. Define Payment method Direct debit. Associate it with payment process profile wherein file will not be transmitted to bank.

      2.Define utility vendor in Oracle and assign the direct debit payment method

      3.Once you see the direct debit in your bank than you can create the Invoice in Payables and run a payment batch selecting the correct bank.

      4.The above payment will be available for Bank reconciliation in Oracle.