Payment Methods in AP

A funds disbursement payment method is a medium by which the first party payer, 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:

In Oracle Financials, there are 4 payment methods.

1. Check
2. Electronic (EFT)
3. Wire
4. Clearing

When you are going to create invoice, you have the following payment options through you can
make payment.

Check:

It is the payment through the regular bank check. You can pay with a manual payment, a Quick
payment, or in a payment batch.

Electronic:

System will create one instruction file with all the Details of invoice and payment. This file will send to
bank for payment.

Wire:

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

Clearing:

In this process you will not make Payment physically. This is used as adjustment for intercompany
transfers and transfer between the branches.