Payables & Cash Management

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    Virginia Baez-Ponce
    How can we process Purchase Orders for Credit Card...Answered
    Topic posted August 30, 2017 by Virginia Baez-PonceBronze Medal: 1,250+ Points, last edited January 30, 2019, tagged Financials, General Ledger, Payables 
    676 Views, 5 Comments
    Title:
    How can we process Purchase Orders for Credit Card Transactions processed as invoice in Payable Module
    Content:

    We currently have American Express set-up in Oracle as a supplier. As part of our Month-End Close Process, we accrue the credit card statement in the current month. Once the new month is opened, we process the Credit Card Statement in the Payables module against accruals.

    Going forward, we would like to start creating Purchase Orders for all Amex Credit Card transactions so that any project related items can be better tracked and included in our project reporting. Can you please advise best practices. How can we process a Purchase Order issued to x vendor and processed against a different vendor (in this case American Express) for payment.

    Best Comment

    Becky Alvarez

    Have you looked at setting up 3rd Party Payments.  This way you can Set up a Purchase Order for Vendor X and match the invoice against Vendor X and set up American Express as the 3rd Party and so American Express Gets Paid.

    Setting Up Third-Party Payments: Procedure

    A third-party payment is a payment that you make to a supplier on behalf of another supplier. Setting up third-party payments includes the following tasks:

     

    https://fusionhelp.oracle.com:443/helpPortal/faces/AtkHelpPortalMain?TopicId=F262E208A16408DEE040D30A68815984

     

    Comment

     

    • Becky Alvarez

      Have you looked at setting up 3rd Party Payments.  This way you can Set up a Purchase Order for Vendor X and match the invoice against Vendor X and set up American Express as the 3rd Party and so American Express Gets Paid.

      Setting Up Third-Party Payments: Procedure

      A third-party payment is a payment that you make to a supplier on behalf of another supplier. Setting up third-party payments includes the following tasks:

       

      https://fusionhelp.oracle.com:443/helpPortal/faces/AtkHelpPortalMain?TopicId=F262E208A16408DEE040D30A68815984

       

    • Alyssa Wang

      Hi --- I wonder if the third-party payment method actually worked for credit card payments made to vendors.  Has anyone implemented this?  Is there any detailed guidance that illustrate how accounting works as well with this method?  From when payment is made via credit card (third party) to when credit card issuer (third party) is paid?

      Thanks much!

    • Becky Alvarez

      Currently we are not PCI compliant and are under PCI audit.  Until we pass the audit, we don't support reconciliation and payment of 3rd party payments via Credit Cards to vendors using credit cards.  We are asking our customers to use employee base credit cards and run them through expenses until we become PCI compliant.  At that time we will work to provide a means to store, reconcile and pay credit card transactions.

      • Alyssa Wang

        Thanks for the response!  We are not looking to actually integrate with credit card issuer to make payment automatically...that would be a fancy/desirable next step.  So no PCI compliance concern I suppose.

        Since we expect to do a manual process, I wanted to know whether setting credit card issuer (such as American Express) as a third party vendor and going through the third-party payment process would provide any advantage over setting it up as a regular vendor as in the case in the original post.  And I wanted to understand the accounting flow associated with it.  

         

    • Becky Alvarez

      The accounting is going to be like any other vendor as the system is going to consider the 3rd party as the payee.  It will credit cash and debit the liability unless you set up SLA to handle differently.  You can read more about it in the AP User Guide.