You can make payments from your disbursement bank accounts in multiple ways: printed checks, wire, or a variety

of electronic payments including electronic funds transfer (EFT), electronic data interchange (EDI), and XML. Electronic and Wire Methods The Electronic method enforces the existence of a supplier bank account and the Wire method does not. Therefore, you use the Electronic payment method to generate instructions to your bank to make payment to a supplier bank account. You use the Wire payment method to record payment when you have used a process outside of your Oracle Payables system to instruct your bank to pay a supplier. Electronic You use the Electronic payment method when Payables will create instructions for your bank to make payment to a supplier bank account. Typically, this communication is an electronic file that instructs your disbursement bank to pay your suppliers, and is in the specific format that your bank requires. However, you should use the Electronic payment method whenever you need to generate a document that requires a supplier bank account. For example, use it if your Payables system is set up to print letters that you send to your bank to request that the bank make an electronic funds transfer directly into the supplier's bank account. Payables ensures that you have recorded supplier bank account information when you use the Electronic payment method. Typically, to pay invoices with the Electronic payment method, users use a payment document with a Computer Generated disbursement type and use a payment batch or Quick payment to create a payment instruction file. The payment instruction file is saved in the ap.out directory for delivery to the bank, unless one of the following features is used to automatically transmit the instruction file to the bank: eCommerce Gateway (for EDI payments), Automatic Bank Transmission, XML Payment Processing. However, you can use localizations, or custom payment methods and payment formats to create any type of communication with your bank when you use the Electronic payment method.
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.

e-Commerce Gateway - If you will be transmitting an EDI formatted file to the bank, you will attach a format program to the payment document you define that creates a flat file based on an e-Commerce Gateway map. You will take this flat file and translate it to an EDI file format using an EDI translator. The EDI formatted file is sent to the bank. EFT - If you will be sending electronic funds transfer (EFT) instructions to your bank, you will attach a format program to the payment document you define that creates an EFT formatted flat file.

Note: If you are making electronic payments with e-Commerce Gateway, during formatting, the Remittance Advice Outbound Extract Program from the e-Commerce Gateway application automatically formats the payment batch and creates a flat file in your e-Commerce Gateway output directory. If you are making electronic payments without the e-Commerce Gateway, you can deliver the output file to your bank for processing. The output file is stored in the Payables output directory. Its name is created by appending a period and the concurrent manager request number to your login userid (for example, SYSA DMIN.12345) If the payment method is Electronic, you must wait for confirmation from the bank before you can confirm your payment batch Overview of Electronic Payment Options

Creating Electronic Payments without Oracle eCommerce Gateway Follow nearly the same steps as for payment batch. However instead of printing the checks, file of formatted payments is sent to your bank for disbursement to supplier bank account Oracle Payables > Payments >Electronic Payments > EFT Payments without eCommerce Gateway Pre-Requisites for processing electronic payments When you define payment formats select the appropriate electronic payment method. Define remittance bank accounts & payment documents that you will use to create

electronic funds transfer (EFT) payments. Setup supplier & supplier sites with bank accounts that receive electronic payments. When you enter the invoices that you want to pay, enter electronic as the payment method. Oracle Payables > Payments > Electronic Payments

Oracle Payables > Payments >Electronic Payments > Electronic Payments with e-Commerce Gateway

Prerequisites for using oracle eCommerce gateway Define a payment document that uses the EDI outbound program format. Define trading partners in e-Commerce gateway. Enable the outbound payment transaction order for the bank branch. Define any code conversions for transactions. Using Oracle e-Commerce gateway 1 Setup suppliers for EDI transactions & assign electronic as method of payment & EDI as the payment format. 2 Setup supplier bank accounts 3 Define a unique pay group 4 Create disbursements bank account for EDI payments 5 Create a payment document with the payment format of EDI outbound EDI outbound payment file 1 Use EDI translator to transit the formatted payment data to your bank for disbursement. 2 You can then define a payment document that uses the EDI outbound program payment format and assign this document to the bank account from which you will disburse payment. Creating EDI payment batches

You can initiate a payment batch using a payment document associated with the EDI outbound program payment format. When you format the payment, Oracle eCommerce gateway automatically formats the batch and creates a flat file in your eCommerce gateway output directory. Oracle e-Commerce gateway sends the file to your EDI translator & then to your bank.

1) Need to capture Bank Details for each Supplier Site 2) EDI (Electronic Data Interchange) Payment Method This indicates how this electronic payment will be made 3) EDI Payment Format If you selected Automated clearing House (ACH) as the EDI Payment Method, you must also specific EDI Payment Format. This format indicates type of information to be transmitted with the funds 4) EDI Remittance Method The EDI remittance method indicates which party is responsible for sending the remittance advice to payee 5) EDI Location is used by e-Commerce Gateway for electronic transmission of information. After you set up your supplier sites, you link them to trading partners you define in e-Commerce Gateway. The EDI ID Number field is used only by Energy. 6) Payment Method - Electronic - You generate an electronic payment file that you deliver to your bank to create payments. Use Electronic if the invoice will be paid using EFT or EDI 7) XML Payments - Automatic Confirmation Enable this option if you use the XML Payments feature and want the system to automatically confirm payment batches that generate Process Payment Request XML messages. If you enable this option, then when your system receives a Confirm Business Object Document XML message from your bank that indicates that the XML payment transmission was successful, the system automatically confirms the payment batch that generated the payment XML message. When the system automatically confirms a payment batch, the user who formatted the payment batch receives a workflow notification that the payment batch was confirmed. http://www.oracle.com/us/media1/057267.pdf

Difference between the Electronic and Wire payment methods

In short, the Electronic method enforces the existence of a supplier bank account and the Wire method does not. Therefore, use the Electronic payment method to generate instructions to your bank to make payment to a supplier bank account. Use the Wire payment method to record payment when you have used a process outside of your Oracle Payables system to instruct your bank to pay a supplier.

Electronic Use the Electronic payment method when Payables will create instructions for your bank to make payment to a supplier bank account. Typically, this communication is an electronic file that instructs your disbursement bank to pay your suppliers, and is in the specific format that your bank requires. However, you should use the Electronic payment method whenever you need to generate a document that requires a supplier bank account. For example, use it if your Payables system is set up to print letters that you send to your bank to request that the bank make an electronic funds transfer directly into the supplier's bank account. Payables ensures that you have recorded supplier bank account information when you use the Electronic payment method. Typically, to pay invoices with the Electronic payment method, users use a payment document with a Computer Generated disbursement type and use a payment batch or Quick payment to create a payment instruction file. The payment instruction file is saved in the ap.out directory for delivery to the bank, unless one of the following features is used to automatically transmit the instruction file to the bank: e-Commerce Gateway (for EDI payments), Automatic Bank Transmission, XML Payment Processing. However, you can use localizations, or custom payment methods and payment formats to create any type of communication with your bank when you use the Electronic payment method. Wire Use the Wire payment method to manually record payment when you have used a process outside of your Oracle Payables system to instruct your disbursement bank to pay a supplier. Oracle Payables does not require supplier bank account information when you use the Wire payment method. When you define payment documents for these payments, we recommend you use the Recorded disbursement type because you are simply recording a payment made outside of the system. Further we commend that you record the transaction with a manual payment. (However, the system will allow you to use any disbursement type. For example, some users who regularly record Wire payments for multiple suppliers use payment documents with the Computer Generated disbursement type, create an electronic payment batch, and then delete the resulting electronic file.) http://alloracletech.blogspot.in/2008/08/integration-with-oracle-payments-for.html http://egeapp.egeseramik.com:8000/pls/prod/fndgfm/fnd_help.get/US/ec/@t_ecepay