Escheatment in Oracle Payables

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When checks issued for payments to suppliers, haven’t been presented for clearing during a specific time period, you should escheat them and transfer the amount to the appropriate local authority.

Setups Required

Unclaimed fund account at Common Options for Payables and Procurement

When you escheat an unclaimed check, its payable amount must be stored in an account before it’s transferred to the escheatment authority

Minimum days to escheat payment at Manage Payment Options

Before you escheat a payment, you must define a minimum time duration for the validity of a check. Till this time has passed, a check can stay in the Negotiable state. Beyond this duration, Payables identifies this check as valid for escheatment.

Escheatment Process

  • Select the Payment and Initiate Escheatment: 
  • Send stop payment instructions to the corresponding banks for all payments in the Escheatment Initiated status
  • After performing due diligence on all stale dated payments, go to the Manage Payments page and search for the payments with status as Escheatment Initiated: click Actions > Escheat
  • After escheatment is completed, the payment status changes to Escheated
  • Run accounting process for the escheated payments to transfer the amount from Cash or Cash clearing account, to an Unclaimed Fund account
  • Create a Payables invoice for transferring the payment to the escheatment authority




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