In the previous blog, we covered the concept of Third-Party Payments in Oracle Fusion Payables. In this section, we will focus on the detailed configuration and practical execution of the same. We will explore how to set up third-party relationships, capture relevant details on invoices, and process payments accurately to handle real-world scenarios with better control and efficiency. 

Setup of Third-Party Relationship 

The first step is to establish a relationship between the supplier and the third party to whom the payment will be remitted. To do this, navigate to: Procurement > Suppliers > Manage Suppliers. 

Within the supplier setup, a section titled Third-Party Payment Relationships is available, allowing you to create and manage these relationships. It is important to note that third-party relationships are defined at the supplier site level. 

This section allows you to create, modify, and review third-party payment relationships. As shown in the screenshot above, a default relationship is already defined for the invoicing supplier. This default relationship is used to automatically populate third-party supplier details on invoice and payment pages. 

Let’s note the following details, which will be used as examples throughout this section: 

• The Invoicing Supplier is ABC Corporation  
• The Invoicing Supplier Site is HQ Site  
• The Third-Party Supplier is XYZ Corporation  
• The Third-Party Site is HQ Address 

Third-Party Details on Invoices 

Let’s understand how third-party information is captured during invoice creation.
Navigate to: Payables > Invoices > Create Invoices > Manage Installments. 

After entering details such as the supplier, supplier site, invoice date, amount, and other required information, proceed to the Manage Installments section. If a third-party relationship is defined for the invoice, two additional fields—Remit-to Supplier and Address Name—will be available. 

When a default third-party relationship exists, these fields are automatically populated with the relevant details. The Remit-to Supplier field displays all active third-party suppliers that have an established relationship with the selected invoicing supplier and site, based on the invoice date. 

Similarly, the Address Name field lists the addresses associated with the selected remit-to supplier, where an active relationship exists as of the invoice date. In addition, payment method and bank account details are populated based on the third-party supplier, rather than the invoicing supplier. 

Take your expertise to the next level with our
Oracle Cloud Financials Training

Creating Third-Party Payments in Oracle Fusion Payables

Follow the steps below to create a third-party payment

Step 1
Navigate to Payables > Payments > Create Payment. 

Step 2: 
On the Create Payment page, enter the required payment details such as payment date, payment process profile, and other relevant information. 

Step 3
Select invoices for payment. The invoices are selected based on the invoicing supplier’s details, while the payment is issued to the designated third-party supplier. 

Step 4
Locate the fields Payee and Payee Site, which are used for processing third-party payments. 

Step 5
If a valid third-party relationship exists, the system will automatically populate the Payee and Payee Site fields based on the payment date entered. 

Step 6
Verify the defaulted values. The payment method and remit-to bank account details will be derived from the third-party supplier, similar to the behavior during invoice creation. 

Step 7
Review all details and proceed with the payment processing as required. 

Example
Referring to the earlier setup, an invoice is created for ABC Corporation, with XYZ Corporation defined as the third-party supplier. During payment processing, the payment will be made to XYZ Corporation, unless the payment clerk chooses to override the third-party details on the payment. 

Viewing Third-Party Details in Payments 

Follow the steps below to view third-party payment details: 

1. Navigate through Payables > Payments and open Manage Payments. 
2. On the Manage Payments page, search for the relevant payment using details such as payment number, supplier, or date.  
3. From the search results, select the required payment record to open the payment details.  
4. Review the Payee and Payee Site fields to identify the third-party supplier to whom the payment has been issued.  
5. You can also verify additional details such as payment method, bank account information, and remit-to details, which are populated based on the third-party supplier. 

Conclusion

Third-Party Payments in Oracle Fusion Payables provides a clear view of how to configure and manage third-party payment processes effectively. By following the setup, invoice handling, and payment steps outlined above, organisations can ensure accurate payment routing while maintaining transparency and control within their payables operations.