Creating Zero Amount Payments in Oracle Fusion Payables

Introduction/ Issue: 

In Oracle Fusion Payables, there are scenarios where invoices get fully adjusted through credit memos, prepayments, or rounding adjustments. Although the invoice balance becomes zero, the invoice may still remain in an unpaid or partially paid status, which leads to issues during reconciliation and period close.

In my support experience, this situation caused confusion during month-end activities, as invoices appeared open even though there was no actual payment liability. To address this, Zero Amount Payments are required to formally close such invoices without impacting bank balances.

Why we need to do / Cause of the issue:

By default, Oracle Fusion does not allow zero amount payments unless it is explicitly enabled in Cash Management bank account controls. If the “Allow Zero Payments” option is not enabled:

  • Zero balance invoices cannot be paid
  • Invoice status remains unpaid even after full adjustment
  • Payables aging shows incorrect open balances
  • Month-end and audit activities are impacted

This issue typically occurs when:

  • Invoice amount is fully offset by a credit memo
  • Adjustments result in a net zero payable
  • Business requires closing the invoice without actual cash movement

To resolve this, system configuration and proper payment creation steps are required

How do we solve:

Step 1: Enable Zero Payments at Bank Account Level

  1. Navigate to Setup and Maintenance
  1. Go to Cash Management
  2. Open Manage Bank Accounts
  3. Search for the required Bank Account
  4. Click on Edit
  5. Navigate to the Controls section
  6. Enable the option Allow Zero Payments
  7. Save and close

This setup allows the system to process payments with zero amount.

Step 2: Create a Zero Payment

  1. Navigate to Payables
  2. Click on Payments
  3. From the Task List, select Create Payment
  4. Select:
    • The Invoice
    • The related Credit Memo
  5. Ensure the net payment amount is 0.00
  6. Submit the payment

Once submitted, the system creates a zero amount payment and updates the invoice status to Paid.

1-> Go to Setup and Maintenance

2-> From Cash Management Click on “Manage Bank Accounts”

3-> Select for Specific Bank

 

4-> Click on Edit

5-> Click on Controls, then enable the “Allow Zero payments”

 

Now create the Zero payment

From task list click on the “Create Payment”

In this way we can make the “Zero Payments”

Conclusion:

By enabling the “Allow Zero Payments” option at the bank account level and following the standard payment creation process, zero balance invoices were successfully closed without impacting bank or cash balances.

 

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