Process Pay Cycle (30.4.1)
  • 03 Jul 2024
  • 11 Minutes to read
  • Dark
    Light
  • PDF

Process Pay Cycle (30.4.1)

  • Dark
    Light
  • PDF

Article summary

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 Process Diagram for 30.4.1 Process Pay Cycle

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 Processoragency 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:

  • 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 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
Ledger(s) Impact

Source Module
 Accounting Entry

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 listing of payment details and statuses for all payments, electronic and warrant.

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 ACH - 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: 

  • 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

Attachments

Was this article helpful?

Changing your password will log you out immediately. Use the new password to log back in.
First name must have atleast 2 characters. Numbers and special characters are not allowed.
Last name must have atleast 1 characters. Numbers and special characters are not allowed.
Enter a valid email
Enter a valid password
Your profile has been successfully updated.