Process Pay Cycle (30.4.1)
  • 01 Feb 2024
  • 10 Minutes to read
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Process Pay Cycle (30.4.1)

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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
  • 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. 


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 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. Transactions with errors stop at the Cash Checking stage and do not proceed until the error is corrected, adjusted, or cancelled.


6

Manage Cash Checking Errors

The Agency AP Processor can update the amount and/or ChartField strings, cancel the transaction to resolve the error, or contact the Agency KK Cash Maintainer for guidance.


Please see 20.2.2 Manage Cash Checking and 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 until they are resolved.


7

Proceed with Valid Transaction

When the transaction passes Cash Check with no exceptions, the transaction will proceed with its lifecycle.


Spendable cash balance is reduced by the amount of the transaction upon passing Cash Check.


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). 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 ACH/EFT CTX (CMI002)

The outbound interface files are generated in Florida PALM and sent to the bank by Financial Gateway. This file contains detailed ACH/EFT information, including prenote validation records in the CTX format.


13

Outbound ACH/EFT CCD+ (CMI016)

The outbound interface files are generated in Florida PALM and sent to the bank by Financial Gateway. This file contains detailed ACH/EFT information, including prenote validation records, in the CCD+ format.


14

Process ACH/EFT 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.

Figure 1: Payments Tab on Voucher

Payments Tab on Voucher

Figure 2: Payment Inquiry on Voucher

Payment Inquiry on Voucher

Figure 3: Sample Remittance Advice

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 Moduleaccounting 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)

Reduces 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 custom report that lists transactions 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

APR034

Payment Discounts and Discounts Lost Report – a listing of discounts received for payments made in compliance with supplier payment terms and payments made that were not in accordance with supplier payment terms.

Data Warehouse

Periodic, Daily, Monthly

Agency, DFS

R9

APR049

Project and Contract Expense Summary Report – project and contract payment information by month, quarter, fiscal and calendar year, inception date, or time period

Data Warehouse

Periodic, Daily, Monthly

Agency, DFS

R10

APR052

Unencumbered Disbursements Report – a listing of payments made that are not associated with an encumbrance

Data Warehouse

Periodic, Daily, Monthly

Agency, DFS

R11

APR053

Encumbered Disbursements Report – a listing of payments made that are associated with an encumbrance

Data Warehouse

Periodic, Daily, Monthly

Agency, DFS

R12

APR098

Post Audit Sampling Report – a listing of payments subject to post audit sampling

Data Warehouse

Periodic, Daily

Agency, DFS

Note: A complete list of reports may be found in the Reports Catalog.

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 ACH/EFT CTX – outbound interface containing detailed ACH/EFT information sent to the bank in the CTX format

Periodic, Daily

Florida PALM

JPM Chase

CMI016

Outbound ACH/EFT CCD+ - outbound interface containing detailed ACH/EFT information sent to the bank in the CCD+ format

Periodic, Daily

Florida PALM

JPM Chase

Note: A complete list of interfaces may be found in the Interface Catalog.

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

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