- 27 Aug 2024
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Process Pay Cycle (30.4.1)
- Updated on 27 Aug 2024
- 11 Minutes to read
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Business Process Overview
The Process Payments business process consists of business subprocesses that include selecting Voucher scheduled for payment, creating electronic and warrant payments, verifying sufficient cash is available for creating the payments, transmitting payment files to the bank via Financial Gateway, and creating payment registers, Remittance Advices, and information required for transparency sites.
Business Process Diagram
Business Roles
The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess.
- Agency AP Processor: agency role responsible for entering invoices, voucher corrections and issuing and maintaining disbursements in Florida PALM
- AP Reporter: (role not shown as a swimlane on flow diagram) role assigned to view AP reports in Florida PALM
- Confidential AP Viewer: (role not shown as a swimlane on flow diagram) role to view confidential data in AP reports in Florida PALM
- Florida PALM: system used to process and manage payments for the State of Florida (Not a Florida PALM End User Role)
- Financial Gateway: a component of the Cash Management module leveraged by other modules for payment processing functionality (Not a Florida PALM End User Role)
Business Process Flows Details
The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.
Process Step ID | Process Step Title | Description of Process |
---|---|---|
1 | Eligible Vouchers Ready for Payments | All approved disbursements (Voucher) are loaded for payment scheduling based on the payment terms defaulted on the voucher from the Supplier record or updated on the voucher. |
2 | Suppliers Ready for Prenote Validation | Supplier records where the Automated Clearing House/Electronic Funds Transfer (ACH/EFT) Payment Method was added, or their Payment Method was updated to ACH/EFT are scheduled for prenote validation. Supplier banking information is secure data, only users with appropriate access can view this information within Florida PALM. Below Figure 1 provides an example of the Payment Tab on the voucher page where payment-related information, such as Payment Method, Payment Reference and the Payment Inquiry link is displayed. |
3 | Schedule Payment | Florida PALM selects Vouchers for payment based on the payment terms and the criteria for the Pay Cycle, such as: Scheduled Payment Date and Payment Method (ACH/EFT, System Check (warrant), or Wire). Different Pay Cycles are configured to handle different payments. ACH/EFT, System Check (warrant), Wire, FRS, may have separate Pay Cycles. The Scheduled Payment Date is the date Cash Checking is performed and cash is consumed, not the date the payment is issued. Warrants are issued the day after the Scheduled Payment Date and ACH payments are issued two days after the Scheduled Payment Date as long as the transaction clears Cash Checking. The Scheduled Payments Report identifies vouchers that are scheduled for payment. |
4 | Run Pay Cycle Payment Selection | This step initiates the Pay Cycle, determines the vouchers for payment based on the Payment Selection Criteria, and processes all scheduled vouchers for payment creation. All vouchers with a Payment Method set to Wire are sent through Voucher Audit Workflow for approval within the Enter and Process Vouchers business process. Suppliers must be approved by DFS Treasury to be eligible to receive wire payments. |
5 | Run Cash Check | The Cash Check process will run at the designated interval. Cash Check validates transactions to spendable cash and confirms use of valid ChartField strings. Spendable cash represents the remaining available fund cash balance reflected in the Cash Ledger. If the transaction exceeds the spendable cash balance, the transaction will fail. AP transactions that fail cash checking will render cash exceptions causing the transaction to be in error status. The Commitment Control Cash Checking Exceptions page will allow a user with the appropriate role to review and take action to resolve cash check exceptions. These errors are cash exceptions that have failed Cash Check because they do not conform to the rules established. Once Cash Check errors occur, the options available to resolve errors in the source modules are:
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6 | Manage Cash Checking Exceptions | The Agency AP Processor can close the voucher to resolve the error, or contact the Agency KK Cash Maintainer for guidance. Please see 20.2.2 Manage Cash Checking and D66 - Chart of Account Design for more information regarding spendable cash balances. Transactions that fail cash check do not consume spendable cash. Cash Check errors continue to be systematically checked by Commitment Control until the cash check errors have been resolved. The Budget and Cash Checking Exceptions/Warnings Report is available for review. |
7 | Proceed with Valid Transaction | Once Cash Check errors are resolved the source modules transaction lifecycle proceeds and the Spendable Cash ledger is updated. |
8 | Run Payment Creation Process | Supplier payments are generated in accordance with the prescribed payment format based on the Payment Method (ACH/EFT, System Check (Warrant), or Wire), Supplier, Business Unit, and Payment Handling Code. Once payments are created, the Payment Reference is populated on the payment, which is viewable on the Payments tab of the voucher. The Payment Reference is a system generated number used to identify a specific payment in Florida PALM. Supplier payments are consolidated by Business Unit (BU) within a Pay Cycle, unless the Separate Payment Flag is selected on the supplier record or on the voucher. The Payment Method and Payment Reference can be found on the Payments tab of the voucher online in Florida PALM. The Payment Status, Reconciliation Status and Reconciliation Date can be found by clicking on the Payment Inquiry link on the Payments tab. Payment Status values are Paid and Void. Reconciliation Status values are Reconciled and Unreconciled which indicate if payment has been paid by the bank. After payments are created, the remaining steps happen within Florida PALM simultaneously. If the Payment Method is System Check, then the Positive Pay File and Warrant Print Extract are created within 30.4.2 Process Warrant Payments Business Subprocess. Below Figure 2 provides an example of the Payment Inquiry page where the Payment Status, The Reconciliation Status and the Reconcile Date are displayed. |
9 | Remittance Advice Email | Suppliers that have a valid email address in their supplier record receive an emailed Remittance Advice. The Remittance Advice for each Pay Cycle can also be accessed within the Report Manager for a limited period of time, which can then be printed and mailed to the supplier, as needed. The Remittance Advice for each Pay Cycle will also be placed on the file server for access by each agency, as needed. Below Figure 3 provides an example of the Remittance Advice that is generated during Pay Cycle. |
10 | Payment Post | Payment Post creates accounting entries from payment-related transactions, such as Manual payments, System Checks (warrants), ACH/EFT payments, Wire payments, and cancelled payments. These accounting entries are stored in the General Ledger. Multiple payment-related reports are available within Florida PALM to assist users in managing the payment process. The Journal Generator (JGEN) process runs following Payment Post to process posted accounting entry data from the Florida PALM source modules, summarizes the data, and creates journals in the General Ledger. The Journal Generator process will edit, budget check and post the journal entries created during the process. Please see 10.2 Enter and Process Journals for more information on source module journal entries. Following Payment Post, automatic bank reconciliation is initiated within the 70.2 Manage and Reconcile Bank Statements Business Process. |
11 | Outbound Voucher and Payment Extract (API031) | The Outbound Voucher and Payment Extract interface is a flat file that provides voucher and payment detail information to FFMIS and agency business systems, as well as internally and externally managed transparency websites and source data systems, including State of Florida Transparency Portal, and Vendor Payment History. |
12 | Outbound Voucher and Payment Extract (API031) | The Outbound Voucher and Payment Extract interface is a flat file that provides voucher and payment detail information to FFMIS and agency business systems, as well as internally and externally managed transparency websites and source data systems, including State of Florida Transparency Portal, and Vendor Payment History. |
13 | Outbound AP Retiree ACH File (CMI016) | The outbound interface files are generated in Florida PALM and sent to the bank by Financial Gateway. This file contains detailed ACH payment information, including prenote validation records, in the Pre-arranged Payment or Deposit (PPD) format. |
14 | Process ACH Files | The bank receives the ACH/EFT files, processes them, and sends an acknowledgment and return payment file to Florida PALM using the Financial Gateway within the 30.5 Manage Payments Business Process. |
Payments Tab on Voucher
Payment Inquiry on Voucher
Sample Remittance Advice
Accounting Events
Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General Ledger (Actuals).
- Source Module accounting entries require user input (I) of the primary line (i.e., expenditure, revenues) with an automated (A) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
- The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
- After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.
The table below provides the most common accounting events applicable to this business process.
Acct Event ID | Accounting Event | Commitment Control | Source Module | General Ledger (Actuals) Entry | |
---|---|---|---|---|---|
AP03 | Payment Issuance | Debit: Accounts Payable (U) Credit: Agency Fund Cash (S) | Decreases spendable cash balance | Debit: Accounts Payable Credit: Agency Fund Cash |
Reports
Key Reports are displayed as icons with the Report Number on the Business Process Flow Diagrams. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.
Report Number | Report RICEFW ID | Report Description | Report Source | Report Frequency | Audience |
---|---|---|---|---|---|
R1 | APR007 | Scheduled Payments Report – a listing of vouchers scheduled for payment | PeopleSoft | Periodic, Daily, Monthly | Agency, DFS |
R2 | KKR058 | Budget and Cash Checking Exceptions/Warnings Report – a listing of budget and cash check exceptions and warnings along with transaction amounts, to include the type of exception and where an override was applied | PeopleSoft | Periodic | Agency, DFS |
R3 | APR001 | Prompt Payment Compliance Report – a report that measure the time elapsed between the receipt of invoice, receipt of goods and services, approval of goods and services and payment date, by Business Unit. | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
R4 | APR006 | Supplier Payments Report – a report that summarizes payments by supplier and other key data elements | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
R5 | APR021 | Payment Register Report – a listing of electronic, warrant or manual (recorded) payments made as part of thePay Cycle | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
R6 | APR027 | Payment Summary – a report used to compute the number and dollar amount of payments made by warrant and/or ACH run by day, per month, or other user-defined time-period | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
R7 | APR032 | Payment Detail Report – a report that lists warrant and electronic payment detail and status for payments. | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
R8 | APR025 | Travel Expense Report – a report that lists travel cost of air carriers, car rentals, and hotels (by supplier) regardless of how they are paid (i.e., via P-Card, reimbursement to employee or direct payment). | Data Warehouse | Periodic, Daily, Monthly | Agency, DFS |
Interfaces
The table below provides the Interface IDs for each interface identified on the Business Process Flow Diagrams.
Interface Number | Interface Description | Interface Frequency | Source | Target |
---|---|---|---|---|
API031 | Outbound Voucher and Payment Extract – outbound interface containing voucher accounting and payment information to source systems, transparency sites and Vendor Payment History | Periodic, Daily | Florida PALM | Agency Business Systems, Transparency Sites, Vendor History |
CMI002 | Outbound AP ACH – outbound interface containing detailed ACH payment information sent to the bank in the CTX format | Daily | Florida PALM | JPM Chase |
CMI016 | Outbound AP Retiree ACH File - outbound interface containing detailed AP retiree ACH payment information sent to the bank in the PPD format | Monthly, Weekly | Florida PALM | JPM Chase |
Forms
The table below provides the Form Numbers for any forms identified on the Business Process Flow Diagrams.
Form Number | Form Description | Audience |
---|---|---|
N/A |
Workflows
The table below provides the Workflow Numbers for any workflows identified on the Business Process Flow Diagrams.
Workflow Number | Workflow Description | Audience |
---|---|---|
N/A |
Version History
Date | Revision Description |
---|---|
12/01/2023 | Original Version |
07/03/2024 | Added End User roles:
Added language in Steps 2 & 3 Updated APR025 description Removed APR049; APR052; APR053; APR098 |