6.1 Payment Options, Payment Methods, Defaulting Rules and Payment Terms

Oracle Fusion Cloud Financials Payables and Expenses 2026 Implementation Professional Exam

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1 Chapter 1: Exam Overview, Enterprise Structures & Security

1.1 Exam Facts, Hands-On Format & How to Use This Guide 1.2 Enterprise and Financial Reporting Structures & the Data Security Model 1.3 Business Units and Reference Data Sets

2 Chapter 2: Master Data, Taxes & Cash Management Setup

2.1 Supplier Master Data: Profile, Addresses, Sites and Site Assignments 2.2 Supplier Controls: Registration, Income Tax Details, Site Holds and Third-Party Payments 2.3 Bank Account Master Data: Banks, Branches, Internal Accounts and Security 2.4 Transaction Tax Setup for Procure-to-Pay 2.5 Configuring Cash Management for Payables: Statements, Reconciliation Rules and Clearing

3 Chapter 3: Supplier Invoices — Options, Entry & Matching

3.1 Invoice Options and Common Options for Payables and Procurement 3.2 Supplier Invoice Processing: Invoice Types, Components and Distribution Sets 3.3 Matching Invoices to Purchase Orders, Receipts and Consumption Advice

4 Chapter 4: Supplier Invoices — Tolerances, Holds & Approvals

4.1 Invoice Validation, Invoice Tolerances, Holds and Releases 4.2 Invoice Approval Rules: Workflow, Spreadsheet Rules and Approval Actions 4.3 Prepayments, Recurring Invoices, Credit and Debit Memos

5 Chapter 5: Invoice Automation, AI & Subledger Accounting

5.1 AI in the Supplier Invoices Process: IDR, Document IO, the Payables Agent and Intelligent Defaulting 5.2 Importing Invoices: File-Based Data Import, Import Payables Invoices and Corrections 5.3 Setting Up Subledger Accounting for Payables

6 Chapter 6: Payments — Configuration

6.1 Payment Options, Payment Methods, Defaulting Rules and Payment Terms 6.2 Payment Process Profiles, Formats, Payment Systems and Transmission 6.3 Disbursement System Options, Payment Security and Payment Approval Rules

7 Chapter 7: Payments — Processing, Withholding, Accounting & AI

7.1 The Payment Process and Payment Process Request Templates 7.2 Completing Payments: Printing, Electronic Confirmation, Bank Acknowledgments, Single Payments, Stops and Voids 7.3 Withholding Tax Setup and US 1099 Reporting 7.4 Payment Accounting: Issue and Clearing, Gains and Losses, Discounts, Cross-Currency Payments and Bills Payable 7.5 AI in the Payments Process: the Payments Agent, Discount Intelligence, Virtual Cards and Fraud Controls

8 Chapter 8: Accounts Payable Balances & Period Close

8.1 Payables Calendars and Payables Accounting Period Statuses 8.2 Payables to General Ledger Reconciliation 8.3 The Payables Period Close Process: Unaccounted Transactions, Sweep and Close Exceptions 8.4 Balancing, Accruals and Year-End Activities in Payables 8.5 Accounts Payable Analysis and Reporting: Landing Pages, Dashboards, Aging Periods and Key Reports

9 Chapter 9: Expenses — Processing, Setup & Policies

9.1 Expenses Processing: From Expense Entry to Reimbursement 9.2 Expenses System Options, Expense Report Templates and Expense Types 9.3 Managing Expense Policies: Categories, Rate Determinants and Enforcement 9.4 Mileage and Per Diem Policies, Oracle Maps and Cumulative Mileage 9.5 Conversion Rate Policies, Receipt Requirements and Payment Hold Rules

10 Chapter 10: Expenses — Approvals, Cards, Advances, Audit & Travel

10.1 Configuring Expense Approval Rules in the BPM Worklist 10.2 Configuring Corporate Card Programs: Payment Options, Transaction Files and Accounting 10.3 Managing Cash Advances: Policies, Approval, Accounting and Application 10.4 Managing Audit Rules, the Expense Audit and Reimbursement 10.5 Configuring Travel Integration: Travel Partners, Itineraries and Trip Expense Reports

11 Chapter 11: AI, Mobile, Automation & Redwood

11.1 AI, Mobile and Automation in Expenses: Expense Assistant, Email Receipts and Touchless Expenses 11.2 Enabling Redwood Capabilities and Their Impact on Existing Configurations

6.1 Payment Options, Payment Methods, Defaulting Rules and Payment Terms

Key Takeaways Explain This Topic AI

Manage Payment Options is set for the payment business unit; it holds the payment accounting option, escheatment days, third-party payee override and payment currency conversion settings.

The payment accounting option (at issue, at clearing, or at issue and clearing) shouldn't be changed after go-live; Oracle suggests a new business unit instead.

Usage rules limit where a payment method can be used (source product, business unit, legal entity, transaction type, domestic or foreign), and validations check documents, payments and files.

Payment method defaulting rules are applied in priority order; with Override defaulting rules when default method set for payee, a supplier site, address or supplier default wins.

With a day-of-month term, a terms date on or after the cutoff day moves the due date to a later month; with Months Ahead 0, a cutoff of 11 and day 15, a 12 January terms date is due 15 February.

Last updated: October 2026

The published payment objectives include Manage Payment Options and Manage Payment Methods . Payment terms belong to the common configurations, but they drive which installments a payment run selects, so they are covered here.

Manage Payment Options

Payment options are set for the payment business unit , the one with the Payables Payment function. Oracle's centralized-processing table assigns Manage Payment Options to the payment business unit. Common Options, Invoice Options and the Tax Reporting and Withholding Tax Options belong to the invoice business unit.

Area Option Notes

Payment accounting When payment accounting entries are created: At payment issue , At payment clearing , or At payment issue and clearing Oracle cautions that you shouldn't update this setting after the first implementation , because accounting can get stuck. Create a new business unit with the new setting instead. Section 7.4 has the journal entries.

Currency conversion Conversion settings for payments The Common Options settings apply to invoices and these apply to payments. The conversion rate type is shared by both.

Third-party payments Allow payee override for third-party payments Lets users override the payee on the payment

Escheatment Minimum days to initiate escheatment How long a check can stay negotiable before it can be escheated. Uncleared funds go to the Unclaimed Fund distribution in Common Options.

Document sequencing Document category override for payments Applies when ledger options require sequencing
Centralized payment processing

Any business unit with Payables Payment can serve business units with Payables Invoicing . Oracle describes three models:

Dedicated: the payment BU only serves other BUs.

Self-service: a BU pays its own invoices.

Dedicated and self-service: both.

The payment BU groups standard invoices, prepayments and credit memos for the same supplier and site from every invoice BU it serves into a single payment , while still honoring each invoice BU's options . In Oracle's example, US Headquarters pays invoices from US West, where the discount allocation is Single distribution , and US East, where it is All invoice lines . The four invoices go into one payment, but each discount is allocated by its own business unit's method.

Disbursement payment methods

A payment method is how a payee is paid. It can be electronic , such as EFT, bills payable or wire, or printed , such as a check. Oracle predefines general methods such as Check and Electronic. Creating a method has two parts:

Usage rules decide where the method is available:

for all payees , or only for specific business units, legal entities and payment process transaction types for Payables;

for specific business units, legal entities and transaction types for Receivables;
for specific transaction types for Cash Management;

by domestic or foreign currency or payee location.

Oracle Expenses has fixed usage rules for its supported methods.

Validations check documents payable, payments or payment files. You can assign predefined validations or create your own.

How granular should methods be?

Oracle compares two approaches:

Few general methods (Check, Electronic) are easy for invoice clerks but push validation errors later in the process.

Granular methods , for example Italian EFT with an Italy-specific validation, catch errors at invoice entry .

Granular methods mean more choices, so Oracle advises pairing them with payment method defaulting rules .

Payment method defaulting

A defaulting rule sets the payment method on an invoice or customer refund when its conditions match. Conditions can include:

source product;
business unit;
first-party legal entity;
transaction type;

domestic or foreign currency or payee location.

Payments evaluates the rules in the priority order you set and stops at the first match.

The payment method default basis option on Manage Disbursement System Options decides how rules and payee defaults interact:

Based only on payment method defaulting rules setup: the rules decide.

Override defaulting rules when default method set for payee: a default on the supplier site, address or supplier wins over the rules.

Oracle notes that a default method is set at the supplier level and marked inactive during payment method setup, and you can change it.

Example. The site is blank, the supplier header says Electronic , and the first matching rule says Check . With Override defaulting rules when default method set for payee , the invoice gets Electronic . Under Based only on rules , it gets Check .

Payment terms

A payment term has one or more lines, and each line creates one installment . Lines use percentages or fixed amounts. Each line can have up to three discounts , each with its own discount date. Terms are shared across business units through reference data sets (section 1.3).

Due and discount dates use one of four methods:

Method How it works
Fixed Date A specific day, month and year
Days A number of days added to the terms date (for example, Net 30)

Calendar Uses a Payables calendar period that contains the terms date, for example to avoid weekends. Only due dates, not discount dates, can use a calendar.

Day of Month Day of Month + Cutoff Day + Months Ahead
Day of month: Oracle's example

The term has Cutoff Day 11 , Day of Month 15 and Months Ahead 0 .

Terms date 10 January (before the cutoff): due 15 January .

Terms date 12 January (after the cutoff): due 15 February .

With Months Ahead set to 1 , a 12 January terms date is due 15 March .

Oracle adds: if Months Ahead is 0 and the terms date is the same as or later than the cutoff day, the installment is due the following month. Enter Day of Month 31 to mean the last day of every month, including shorter months.

Which terms an invoice gets

An Identifying PO on the invoice supplies the terms.

If there isn't one, the supplier site terms are used.

If the site has none, the terms in Manage Invoice Options are used.

You can override them on the invoice. If you change the terms on an invoice, its installments are recalculated, and you must reenter any manual adjustments.

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