Payables Management is an optional module of Interact SSAS used in the Accounts Payable Process to standardize and enhance the internal controls over payments of Benefit Claims to Beneficiaries and Contribution Refunds to Employers. Payables Management is seamlessly integrated with relevant other Interact SSAS modules such as Benefit Claims Filing & Payment, Contribution Filing & Payment, GL Interface and e-Services.
Once a Benefit Claim is approved, the system will raise a Payable Voucher that is used to Pay the Benefit Claim to the Claimant (Payee).
A Contribution Refund Claim Form can also be raised when an Employer Requests a Refund and used to pay the Employer for the requested Refund. The Payable Voucher is not required to process a payment for Benefit Claims or Refunds. However, if an organization desires to have extra control over the payments, it can deploy the Payment Management process, so that before issuing any payment, a Payable Voucher needs to be issued and approved first.
The unpaid Payable Vouchers provide the detail for the total amount reported as Payable Vouchers in the Accounts Payable module. As a voucher’s payment date comes near, the voucher is forwarded to an authorized person for payment. After making payment, a copy of the check is attached and the voucher is stamped “Paid.” It is then filed in the paid voucher file in order to prevent a duplicate payment.
The voucher is then recorded in the Voucher Register. In case of Social Security Administration, there are two types of Payable Vouchers:
- Benefits Payable Voucher – Used to pay for benefits against a Benefit Claim. This is paid to a beneficiary
- Refund Payable Voucher – Used to pay for refunds against a Refund Request. This is paid to an employer or self-employed
A Payee defined in a Payable Voucher can be:
- An Individual to whom the Social Security Administration owes money as a result of a Benefit Claim, or
- an Employer who filed a Refund Request with the Social Security, and the Social Security Administration owes a Refund Payment to the Employer.
A Payable Voucher is used to record an IOU by the Social Security Administration to an individual or employer for a commitment to be paid to the Individual or an Employer. For an individual, the Payable Voucher is for payment commitment against a Benefit Claim, while for employers, the Payable Voucher is the result of a Refund Request by the Employer. A Payable Voucher can be issued ahead of time and paid at a later time, thus each Payable Voucher has a Due Date, the date the payment must be issued to the Payee.
A Payable Item defines the purpose of the Payable Voucher and includes:
- Benefit, as defined under Interact SSAS Benefit Policies
- Refund, as defined under Interact SSAS Refund Policies
The Payables Management Frame is based on a Payment Voucher for a Payee for a specific Payment. A Payee can be an individual or an employer.
Figure-1: Payables Management Framework
A Payable Voucher is not required to make payments to Individuals or Employers. The Payable Voucher is an added level of control. If an Orgnization elects to use the Payable Voucher, no payment can be made unless a Payable Voucher is issued and approved. The Payable Voucher is created automatically on approval of a Benefit Claim or Refund Request.
The Payable Voucher workflow starts from:
- Benefit Claim raised by an Individual
- Refund Request raised by an Employer or Self-Employee
Any of the above transactions will generate a Payable Voucher if the Payable Voucher is linked to the Benefit Claim or to the Refund Request. If no links, then no Payment Vouched will be created/generated.
Figure-2: Payable Voucher Workflow
- Payable Voucher is not required to make a Benefit Claim Payment or Refund Request Payment
- Payable Voucher is only required if selected in the General Setup
- Payable Voucher is used as an added level of Control to avoid fraud
- Payable Voucher can be Rejected after review
- Payable Vouched can be Cancelled after approval, if it is not paid or partially paid