Process Pay Cycle (30.4.1)

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:

• Increase the spendable cash balance, i.e.  perform a disinvestment transaction using the investment activity page, post  verified/approved deposits, or perform an expenditure move.
• Close AP Voucher transaction; or
• Request Override (extraordinary instances).

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 and Cash Check Errors Reports are 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.

AP03

Payment Issuance

Debit: Accounts Payable (U)

Credit: Agency Fund Cash (S)

Decreases spendable cash balance

Debit: Accounts Payable

Credit: Agency Fund Cash

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 Interest Paid  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

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

N/A

N/A

12/01/2023

Original Version

Added End User roles: 

• 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 

Added language in Steps 2 & 3 

Updated APR025 description

Removed APR049; APR052; APR053; APR098